PROPOSED SURFACE INFRASTRUCTURE
The proposed mine infrastructure presents similar characteristics for both underground and surface options. Overall, an area of approximately 0.6 km2 of ground will be impacted by the mining activity.
-- Site access road; a distance of 2.25 kilometres will need to be upgrade for the circulation of heavy equipment;-- Parking and guardhouse;-- Temporary modular building for office and garages-- Fuel storage, explosive storage installation in accordance with current regulation-- Polishing pond for pumping water: No waste water management has been evaluated upfront for this study considering a low acid water generation potential indicated by preliminary tests.-- Power consumption: The Fayolle Project is currently not served by an electric power line. Due to the short duration of both options, it was evaluated that only generators would be used to provide electricity.-- ROM stockpile of 26,900 tonnes capacity (temporary) located at the truck charging station for the mill,-- Overburden stockpile and waste rock stockpiles will be required for the two options. These infrastructures will require a footprint of 111,100m2 and 42,107m2 respectively for the surface and the underground option. The excavation of the ramp portal and the glory holes explains the large volume of material generated by the underground option.
MINE CLOSURE AND RECLAMATION
The closure and reclamation costs for the Fayolle Deposit are estimated at CAD$1.7 M for the underground option and CAD$4.4 M for the open pit option. A detailed closure plan will have to be submitted with the feasibility study. Wherever practical, a progressive reclamation approach of the mining site will be done.
CAPITAL COSTS ESTIMATES
This PEA is based on current budgetary prices coming from contractors acting within the Abitibi region. In addition to InnovExplo's technical expertise to evaluate the two potential scenarios, this evaluation is also based on other reliable information. The evaluation of custom milling was provided by Iamgold, Westwood Project. The after-tax cash flow estimation was completed by Samson Belair/Deloitte & Touche.
ADDITIONAL TECHNICAL INFORMATION RELATED TO THE PRELIMINARY ECONOMIC ASSESSMENT
The Fayolle property is composed of 39 claims covering 1,475.15 hectares 100%-owned by Typhoon and subject to an earn-in agreement with Aurizon Mines.
-- The project is located along a prolific geological belt, the Abitibi gold belt and, more specifically, on the LaPause - Manneville faults intersection.-- The drilling density used to build the resources estimate supporting the PEA allowed to reach the indicated level (see TYP press release September 6th, 2012).-- The Fayolle Project is located 1.4 km from the Aiguebelle National Park and is managed under a MOU signed with the town of Rouyn-Noranda. Typhoon Exploration has always maintained strict working protocol in the field, and open communication with the town representatives.-- A pool of experienced manpower is available in Abitibi, where the project is located.
Gold mineralization of the Fayolle Zone is mainly contained in deformed komatiitic rocks and altered intermediate intrusions near the contact with massive basalt and silicified sediments. Shear zones and fault patterns observed are generally oriented west to north-west, corresponding to a major inflexion of the La Pause Fault.