Golden Hope Mines

Gold concentration estimators generated from sampling of diamond drill core and the much larger bulk samples indicates apparently significant differences.

The data available suggest the primary distribution of gold in the mineralized zones is difficult to establish using the relatively small samples possible with diamond drilling. There appears to be some improvement in estimator reliability for samples of about 50kg/metre such as can be obtained using down-the-hole drills equipped with 6-inch (152mm) bits. But the improvement is not sufficient to justify sampling the Bellechasse-Timmins mineralized zones with the largestcommonly-available diamond drill cores (e.g. PQ - 83mm diameter).

The difference in reliability of estimators is not established for this deposit, but there seems to be a tendency to rather seriously under-estimate gold grades from diamond drill data as compared to bulk sampling of what appears to be the same sort of mineralization.

These differences are illustrated by Figure 9 and Figure 10.

In general terms, diamond drilling of the T1 mineralization suggests a gold content in the order of 2 grams per tonne as compared to the results of bulk sampling at surface which suggests a grade estimator of approximately 3 grams per tonne.

This is an issue which must be addressed and may require bulk sampling underground.

Gold occurs on the Bellechasse Property in quartz-filled breccias in albite diorite and in quartz-filled structures in volcanoclastic rocks into which the diorites are intrusive. Within the diorites these breccia zones show no obvious relationship to faulting or shearing but appear to be caused by natural hydraulic fracturing. Both brecciation and mineralization seem related to fluid injection that is likely a result of collision between the African and North American continental plates during the development of the Appalachian fold belt.

Quartz-filled structures in the volcanoclastic host rocks have been traced down-dip to breccia zones within the intrusives, and are considered the expression of the brecciation and mineralization process in those less competent rocks.

The primary distribution of gold in both the diorite-hosted breccias and in their expressions in the intruded volcanics is erratic. This chaotic distribution of gold creates sampling requirements that can be met satisfactorily only through some sort of bulk sample. While NQ diamond drilling gives cores that provide excellent geological information, the primary sample of approximately 5kg/metre is inadequate, and further weakened by the practice of sawing cores in half for archiving. The effective sample for assaying from NQ core usually weighs less than 2 kilograms per metre.

Although it is common practice to assay cores recovered by diamond drilling, experience with the mineralization in the Bellechasse Property shows quite clearly that assays of NQ cores from this primary gold distribution serve only to confirm the presence of gold but cannot provide properly reliable estimators of grade.

Sampling using down-the-hole hammer equipment (nominal 6" or 153mm diameter) that gave chips at the rate of about 50kg/metre returned slightly more regular assay results, but not enough improvement to justify using HQ (8.8kg/m) or PQ (15.8kg/m) core for routine exploration.

Bulk sampling of the surface exposure of the T1 Zone suggests an average gold concentration of about 3g/t. Comparisons with both diamond drill and down-the-hole hammer sampling results with those from bulk sampling of these trenches support the argument that definition of the volume of mineralized breccia can be accurately based on geological information from drill cores, but that determination of grade requires other means of sampling, sample treatment, and rather extensive analyses of sub-samples.

Mineralized zones that might be located beneath favourable overburden may be bulk sampled, as was done with the T1 Zone. Sampling at depth will require underground development.

Such underground development may be justified when the volume of apparently mineralized zones is better defined by additional diamond drilling. This definition of mineralized volume is the principal objective of the current diamond drilling program.

Data available suggest the style of mineralization observed at the Bellechasse-Timmins Deposit occurs elsewhere within the claims. Exploration for other deposits of similar nature at present consists of geological mapping, some detailed magnetic and electromagnetic geophysical surveying, and soil gas hydrocarbon geochemical surveying.

Prospects have been located approximately 5km and 9km to the northeast of the Bellechasse-Timmins Deposit at Sugar Bush and Laval's Mountain, and about 6 kilometres southwest of the T1 Zone at the Beland 2009 Anomaly. The latter geochemical anomaly was tested by three diamond drill holes, two of which intersected Ascot-type veining. One of these three intersection showed visible gold. Assays are still pending.

Geological and geochemical evidence supports the concept of a mineralized belt extending some 17 to 20 kilometres through the Bellechasse Property and perhaps beyond. Continued general exploration is warranted on these mineral claims.

The exploration routine of geological mapping and prospecting assisted by magnetic and electromagnetic surveys to select areas for soil gas hydrocarbon sampling appears effective and should continue, and be followed by testing of anomalies and prospects by trenching where possible and by diamond drilling as necessary.

The author recommends that Golden Hope Mines Limited undertake an orientation biogeochemical survey. If successful, such surveying should be implemented to supplement the soil gas hydrocarbon and geophysical surveys to define exploration drill targets.

Based on the information available it is recommended that the current program of definition diamond drilling be continued with the objective of establishing the volume of mineralized quartzfilled breccias within the Bellechasse-Timmins Deposit, and to trace known breccias to the northeast and to the southwest, and to explore for other similar zones.

The data should be compiled on an ongoing basis and the program progress and objectives reviewed regularly.

The current phase of the evaluation program is expected to require in the order of 8,000 metres of diamond drilling and require eight to ten months to complete.

The all-in cost of this work is estimated at $200 per metre for holes less than 250 metres in length.

With an allowance for deeper holes that may be required, the cost of this drilling is estimated to be $2,000,000.

Stripping along the surface projection of mineralized zones recently indicated by diamond drilling is recommended. An allowance of $300,000 is suggested.

An allowance of $500,000 for bulk sampling where stripping is successful is recommended.

The author also recommends that Golden Hope Mines Limited undertakes an orientation biogeochemical survey. If successful, such surveying should be implemented to supplement the soil gas hydrocarbon and geophysical surveys to define exploration drill targets.

General exploration within the Bellechasse Property should continue and allow for 1500 metres of diamond drilling to test existing anomalies and provide a reserve for testing new discoveries.

The estimated cost of the additional prospecting drilling is $300,000 and general prospecting, geological mapping, geophysical surveys, and geochemical surveys is estimated at an additional $250,000.

The estimated cost of the recommended work is $3,350,000.