Howe concludes, based on well-founded historical estimation practices at the Bissett
Mine, that the mine has measured resources of 539,000 tons at a grade of 0.24 ounces
gold per ton and indicated resources of 728,100 tons at a grade of 0.27 ounces gold per
ton for a total of 1,267,100 tons grading 0.26 ounces gold per ton. Inferred resources total
734,700 tons grading 0.31 ounces of gold per ton. All of the above mentioned resources
are situated above the 4630 Level (5,370 feet below the collar of A-Shaft) of the mine in
the D and C-Shaft areas.
Within the measured and indicated resources, Howe concludes that the Bissett Mine
currently has proven reserves of 351,700 tons at a grade of 0.26 ounces gold per ton and
probable reserves of 550,000 tons at a grade of 0.28 ounces gold per ton for a total of
901,800 tons with an average grade of 0.27 ounces gold per ton. In determining this
reserve base Howe has used dilution, cutting and cut-off practices based on over 38 years
of mining on the property. All of these reserves have development drifts on the vein and
all are accessible on levels within the C and D Shaft areas of the mine.
The proven and probable reserve base is sufficient for the first 4.5 years of operation.
Howe believes that it is likely that much of the existing resource base above the lowest
level of the mine can be upgraded to a reserve category, extending the life of the mine to
eight years.
