SAGE GOLD INC. MINERAL BENEFICIATION ON CANE GOLD ORE. RPC Reference No.: PET-J1557. Prepared for:

Transcription

1 SAGE GOLD INC. MINERAL BENEFICIATION ON CANE GOLD ORE Prepared for: Mr. Bill Love Sage Gold Inc. 365 Bay Street, Suite 500 Toronto, Ontario Canada, M5H 2V1 Prepared by: Ross Gilders Section Head, Process Engineering Leo Cheung, P.Eng. Senior Process Engineer Process & Environmental Technology September 13, 2006

2 Page 1 SUMMARY Sage Gold Inc. supplied a bulk sample to RPC of Cane Gold for mineral beneficiation test work including mineralogy, heavy liquid gravity separation (TBE), Wilfley tabling and preliminary scoping flotation tests. The ore mineralogy consists mainly of pyrite, sphalerite, and galena, with minerals of lesser abundance include freibergite, gudmundite, arsenopyrite, chalcopyrite, pyrrhotite, and pyrargyrite ranging in size from 1 µm to 500 µm, but typically <100 µm. Gravity separation was relatively poor; however the rougher flotation tests at P 80 of 63 micron achieved 97/96/90%, Pb/Ag/Au recovery, grading 43%/1896 ppm/21.4 ppm, respectively (Table 1). Actual grades and recoveries of Pb, Au, Ag and Zn were determined in the cleaning test results. Final rougher and cleaner recoveries for Pb/Ag/Au were 93.7/93.9/81.6%, respectively with a Pb grade of 66.3%. The Pb concentrate also carries most of the Ag assaying 4402 ppm and Au assaying 23.8 ppm. Final rougher and cleaner combined Zn recovery with a 1 stage cleaning was 91.8% at a grade of 56.2%. The recoveries and grades reported are based on batch tests with no recycle. A locked cycle test is necessary to confirm and establish the Pb/Ag/Au and Zn grades and recoveries. A continuous pilot run is also recommended to validate the findings as part of a pre-feasibility study. Table 1 Mineral Beneficiation Results Summary Mass Dist. Wt. % Distribution % Description (%) Fe Cu Pb Zn Ag Au Fe Cu Pb Zn Au Au Head Assay TBE Results Sink Pan Float Wilfley Table Results (-0.5mm) Con Tail Scoping Rougher Float Results (P 80 = 63 micron) Pb Rougher Zn Rougher Tail Pb Rougher (P 80 = 63 micron)/cleaner (P 80 = 35 micron) Float Results Pb Rougher Pb Cleaner Overall Pb Recovery Zn Rougher (P 80 = 63 micron)/cleaner (P 80 = 35 micron) Float Results Zn Rougher Zn Cleaner Overall Zn Recovery Tail

3 INTRODUCTION & SAMPLE CHARACTERIZATION Sage Gold Inc. - Mineral Beneficiation on Cane Gold Ore Page 2 Sage Gold Inc. supplied bulk samples of Cane Gold and Cane Cu from the Beardmore- Onaman Pb-Zn-Ag-Au mineralization in Beardmore, Ontario, to RPC for the mineral beneficiation work. The samples were crushed to -1, homogenized and split into sub samples for head assay, mineralogy, heavy liquid gravity separation (TBE) and preliminary scoping flotation tests. Multi-element ICP, Au fire assay and whole rock assay were carried out on one of the sub-samples. The assay results of the Cane Cu were lower than expected and no further beneficiation work was carried out on the sample. Whole rock, fire assay and ICP assay results are presented in Table 2 and 3. Table 2 Whole Rock Assay Results Client Tag Cane Gold Cane Cu Cane Cu Dup. Al2O3 % CaO % Fe2O3 % K2O % MgO % MnO % Na2O % P2O5 % SiO2 % TiO2 % LOI % TOTAL %

4 Element Sage Gold Inc. - Mineral Beneficiation on Cane Gold Ore Page 3 Table 3 ICP and Fire Assay Results ICP/Gold Fire Assays AA Gold Fire Assay/AA/Calculated Heads from testing Cane Cane Cane Cane Cane Cane Cane Cane Cane Gold Copper Copper Gold Gold Gold Gold Gold Gold Assay Duplicate only Table Table Sink/Float Flotation Flotation Au ppm Ag ppm Al % As ppm B ppm Ba ppm Be ppm Ca % Cd ppm Co ppm Cr ppm Cu ppm Fe % K % Li ppm Mg % Mn ppm Mo ppm Na % Ni ppm P ppm Pb ppm Sb ppm Se ppm < Si % Sn ppm 14 <10 <10 Sr ppm Ti ppm Tl ppm V ppm W ppm 292 <10 <10 Y ppm Zn ppm

5 Page 4 MINERALOGY Four polished thin sections were produced from selected samples from one of the subsamples (crushed to -¼ ). The sections were examined by optical microscopy and SEM to determine mineralogy liberation and Cu/Au occurrence. The ore mineralogy consists mainly of pyrite, sphalerite, and galena, with widely varied proportions between fragments. Minerals of lesser abundance include freibergite (Agtetrahedrite), gudmundite (FeSbS), arsenopyrite, chalcopyrite, pyrrhotite, and pyrargyrite (Ag 3 SbS 3 ). The gangue consists mainly of quartz and dolomite, with lesser calcite, siderite, feldspar, and chlorite. Sulphide grain sizes cover a very wide range (1 µm to 500 µm), but are typically <100 µm. Galena tends to be finer, and is often included as fine grains (<2 µm) in pyrite. No gold was found in the samples examined. Microphotographs of the Cane gold sample are presented in Figures Figure 1: AP1 Fragment with uncommon assemblage. Arsenopyrite, gudmundite, chalcopyrite (light grey), and galena (white) in quartz matrix (dark grey).

6 Page 5 Figure 2: AP2 Fragment; most commonly observed assemblage. Pyrite (medium grey), sphalerite (light grey), galena (white) in matrix of quartz, albite, K-feldspar (dark grey). Figure 3: AP3 Pyrite (dark grey), sphalerite (medium grey), and galena (white) with quartz, dolomite, and albite (black). This fragment also contains minor freibergite.

7 Page 6 Figure 4: AP3b Higher magnification images of portion of A3. Pyrite (dark grey), sphalerite (medium grey), and galena (white). Figure 5: AP3c Freibergite (centre, light grey) with galena (white) and pyrite (dark grey), adjacent to albite (black).

8 Page 7 Figure 6: AP4 Galena (white), sphalerite (light grey), and pyrite (medium grey) with calcite and quartz (dark grey). Figure 7: BP1 Sphalerite (medium grey), with lesser galena (white), arsenopyrite (light grey), and pyrrhotite (dark grey; included in sphalerite) in chlorite and quartz matrix (dark grey).

9 Page 8 Figure 8: BP2 Pyrite (medium grey) with minor sphalerite (light grey) and galena (white) in matrix of quartz, chlorite, and dolomite (dark grey). Figure 9: BP3 Zoned freibergite (centre, light grey) with sphalerite (medium grey), and galena (white) in carbonate host (dark grey). The freibergite rim (bright) is Ag-enriched relative to the core.

10 Page 9 Figure 10: BP4 Pyrite (dark grey) with galena (white), and sphalerite (light grey) illustrating the wide range of grain sizes. Figure 11: BP5 Granular pyrite (medium grey) and sphalerite (light grey) with galena (white) in host of dolomite, quartz, and siderite (dark grey).

11 Page 10 Figure 12: CP1 Pyrite (dark grey), sphalerite (medium grey), and galena (white) in quartz (very dark grey) with bladed gudmundite (light grey) minor pyrargyrite (light grey; centre). Figure 13: CP1b Pyrargyrite (light grey) with galena (white), sphalerite (medium grey), pyrite (dark grey) and quartz (black).

12 Page 11 Figure 14: CP1c Gudmundite blades (medium grey) with pyrargyrite mantle (light grey), together with sphalerite (medium grey), pyrite (dark grey), galena (white), quartz (black). Figure 15: DP1 Sphalerite (light grey), pyrite (medium grey), and galena (white) with minor chalcopyrite in quartz (dark grey).

13 Page 12 Figure 16: DP2 Sphalerite (medium grey, centre), galena (white), freibergite (light grey, left), arsenopyrite (light grey, top), and pyrite (dark grey) in quartz (very dark grey). Figure 17: 3 Sphalerite (medium grey) and arsenopyrite (light grey) in quartz-rich matrix (very dark grey).

14 Page 13 TETRABROMOETHANE LIBERATION (TBE) HEAVY LIQUID GRAVITY TESTS One of the sub-samples was crushed to -2mm and a split sample was sized (-2 mm mm, -0.5 mm mm, mm, mm mm, mm) for TBE heavy liquid separation to assess gravity liberation and mineral portment to the various size fractions. All samples were assayed for Cu, Pb, Zn, Au and Fe. The results are presented in Tables 4 and 5. Table 4 Sieve Size Distribution Wt. Wt. (g) Wt. % Wt. g Wt. % Wt. % Screen % Size (mm) Retained Retained HLS Float Sink Pan < < < < <0.045 (Pan) Total Table 5 TBE Results Wt. % Distribution % Solids Sample Fe Cu Pb Zn Ag Au Fe Cu Pb Zn Ag Au < Float < Float < Float < Float <0.045 (Pan) < Sink < Sink < Sink < Sink Calc. Head Summary Mass % Sink Pan Float Total

15 Page 14 TABLE TESTS Two table tests were carried out to assess gravity concentration of the Cu/Pb/Zn/Au/Ag mineralization. Based on the TBE results a finer size than the 2 mm-0.5 mm may improve the sink fraction (heavy portion) gold recovery with a gravity separation, as approximately 14% is lost in the float portion. In light of this we selected a minus 2 mm and minus 0.5 mm size for two of the table tests. The middlings portion was re-tabled. The concentrate produced from the middlings was combined with the first table concentrate and the tail was combined with the first tail. The results are presented in Table 6. The table tests resulted in relatively poor Au/Ag/Pb concentration at both -2 and -0.5 mm crush sizes. The -0.5 mm crush size gave 87.5% Zn concentration. Good grades were produced; however, recoveries were low. Further testing will be required to improve the tabling performance and to look at the effect of zinc recovery if this technique is pursued. It may also be advantageous to combine tabling and flotation. Table 6 Wilfley Table Results Assays Distribution Test # Size Sample Wt. Fe Cu Pb Zn Ag Au Fe Cu Pb Zn Ag Au (g) (%) (%) (%) (%) (ppm) (ppm) (%) (%) (%) (%) (%) (%) Batch 10-2mm Head Con Tail Calc. Head Batch mm Head Con Tail Calc. Head

16 Page 15 FLOTATION TESTS A bulk sample of the cane gold ore was milled in a rod mill and sampled at regular intervals to establish a grind curve. Based on the grind curve 2 kg batches were milled to P micron for the flotation scoping tests. Figure 18: Grind Curve Based on the mineralogy and the relatively coarse mineralization two sizes (1.5 hr grind or P 80 = 90 micron, 2 hr grind or P 80 = 63 micron) were selected for the initial flotation scoping tests. The flotation conditions and results for both the Pb and Zn rougher tests for 1.5 and 2.0 hr grinds are presented in Tables 7 and 8. The flotation flowsheet tested is illustrated in Figure 19. In locked cycle testing simulating a commercial flowsheet the cleaner tails and scavenger concentrates are recycled within the circuit. Table 7 Rougher Flotation Test Conditions Pb Rougher Conditions 1) Aerate/Condition 1250rpm for 10 ph 9.50 using Na 2 CO 3 2) 500g/t ZnSO 4 -- Condition 2 min. 3) 153g/t 3418A -- Condition 2 min. 4) 50g/t KEX -- Condition 2 min. 5) 25g/t MIBC -- Condition 1 min. Zn Rougher Conditions 1) Repulp/Cond 1250rpm 5 ph using Ca(OH) 2 with fresh H 2 O 2) 300g/t CuSO 4 -- Condition 2 min. 3) 10g/t Condition 2 min. 4) 5g/t MIBC -- Condition 1 min.

17 Page 16 Figure 19: Cane Gold Flotation Flowsheet

18 Sample ID Timed Interval (min) Pb Rougher (P microns) RghrCon RghrCon Sage Gold Inc. - Mineral Beneficiation on Cane Gold Ore Page 17 Table 8 Rougher Flotation Test Results Mass Total Dist. Dry Mass (%) (%) %Cu %Pb %Zn %Fe Dist. Analysis Distribution (%) Ag (ppm) Au (ppm) Cu Pb Zn Fe Ag Au Conc 1& Tail Total 1750 Zn Rougher (P microns)) RghrCon RghrCon Conc 1& Tail Calculated Head Grade Total 1424 Pb Rougher (P microns) RghrCon RghrCon Conc 1& Tail Total 1749 Zn Rougher (P microns) RghrCon RghrCon Conc 1& Tail Calculated Head Grade Total The rougher flotation test results were very good at P 80 = 63 micron (2.0 hr grind). The Pb rougher achieved recoveries of 96.7% of the Pb, 90% of the Au and 96% of the Ag. Approximately 24% of the Zn followed the Pb in the rougher and would likely need a regrind prior to the Pb cleaner to liberate and send it back to the Zn circuit. The Zn circuit will likely not need any regrind to achieve satisfactory recoveries and grade. Rougher grade for both Pb and Zn was 44% and 43% respectively. Zn recovery can not be assessed without running the Pb cleaner first, as the Pb cleaner 1 tails reports to the Zn rougher.

19 ROUGHER/CLEANER FLOTATION TESTS Sage Gold Inc. - Mineral Beneficiation on Cane Gold Ore Page 18 Following the success of the Pb and Zn rougher tests the conditions were repeated on a second sample to produce rougher feed to carry out a preliminary assessment of the cleaner circuit. The test results are presented in Table 9. Concentrate/Tail Table 9 Rougher/Cleaner Flotation Results Mass Overall Mass Assays Distribution (g) Dist. (%) Fe (%) Pb (%) Zn (%) Ag (ppm) Au (ppm) Fe (%) Pb (%) Zn (%) Pb Circuit Pb Rghr Head PbRghrCon PbRghrTail PbClnrScavCon PbClnrScavTail PbClnr1Con PbClnr1Tail PbClnr2Con PbClnr2Tail PbClnr3Con PbClnr3Tail Check Pb Rougher Grade: Overall Rougher Recovery: Final Con Grade (3 Clnrs): Pb Cleaning Circuit Recovery: Overall Rghr/Clnr Recovery: Zn Circuit Zn Rghr Head ZnRghrCon ZnRghrTail ZnClnrScavCon ZnClnrScavTail ZnClnr1Con ZnClnr1Tail ZnClnr2Con ZnClnr2Tail ZnClnr3Con ZnClnr3Tail Check Zn Rougher Grade: Overall Rougher Recovery: Final Clnr Con Grade (1 cleaner): Zn Cleaning Circuit Recovery: Overall Rghr/Clnr Recovery: Loss to Tails: Ag (%) Au (%)

20 Page 19 The two hour grind condition with a target of 63 micron (actual P 80 = 67 micron) was selected for the rougher and cleaning tests for the Cane Gold ore. A P 95 of 44 micron (P micron) was selected for the Pb rougher con regrind to the Pb cleaner 1. Three Pb cleanings were carried out on the reground Pb rougher concentrate and the Pb cleaner 1 scavenger tails containing mainly Zn were combined with the Pb rougher tails for the Zn rougher. The Zn rougher concentrate was cleaned and scavenged with no regrind Recovery, % Grade, % 66.3 Figure 20: Pb Recovery Curve Recovery, % Grade, % Figure 21: Zn Recovery Curve

21 Page 20 Recovery, % Ag Au Grade, % Figure 22: Au/Ag Recovery Curve vs Pb Con. Grade The rougher recoveries for Pb/Ag/Au were 96.9/97.5/85.9% respectively. Final rougher and cleaner recoveries for Pb/Ag/Au could be up to 93.7/93.9/81.6%, respectively with a Pb grade of 66.3%. The Pb concentrate also carries most of the Ag assaying 4402 ppm and Au assaying 23.8ppm. The rougher recovery for Zn was 91.9% with a grade of 45.2%. Final rougher and cleaner combined Zn recovery could be up to 91.8% at a grade of 56.2%. Based on the encouraging results of the Zn cleaning, a 1 stage cleaning will be required if a 56% Zn concentrate meets the buyer s specifications.

22 Page 21 RECOMMENDATIONS The Cane Gold Ore responds very well to flotation. High recoveries and grades at reasonably coarse grinds can be achieved. It is recommended, however, that further optimization tests be carried out to validate metal recoveries and grades and to optimize the reagents regime, reagents consumption, retention time, primary grindsize, etc. The recoveries and grades reported are projected as they are based on batch tests with no recycle. A locked cycle test is necessary to confirm and establish the Pb/Ag/Au and Zn grades and recoveries presented in this report. The locked cycle tests are operated in a semi-continuous basis with full recycle of cleaner circuit products. A continuous pilot run is also recommended to validate the findings as part of a pre-feasibility study. Ross Gilders Section Head, Process Engineering Process & Environmental Technology Leo Cheung, P.Eng. Senior Process Engineer Process & Environmental Technology

23 Page 22 APPENDIX