HispanicBusiness

The Manfo Property database contains 178 surface diamond boreholes. The drillhole data includes collar location, down-hole survey, rock codes and 36,606 sample intervals assayed for gold. The mineral resource statement utilizes a total of 135 boreholes with 27,897 metres of drilling. Data used for mineral resource estimation purposes was verified by SRK.

The mineral resources reported herein have been estimated using a geostatistical block modelling approach derived from borehole data. All zones were estimated using a traditional wireframe interpretation constructed from a sectional interpretation of the drilling data. The block model was set on a grid of 5 by 5 by 5 metres, rotated by 30 degrees clockwise such that the block model is oriented subparallel to the general strike of the mineralization. Gold grades were estimated by ordinary kriging and compared with an inverse distance algorithm (power of two) as a secondary estimator using the same estimation parameters.

Two block models were created to cover the Pokukrom and Nfante zones of gold mineralization at the Manfo Property. Two estimation passes were used to populate the block model with gold grades within the alteration zones and third estimation pass was considered for the gold grades constrained by mineralization wireframes. The first, second and third estimation passes considered full, twice and three times variogram ranges.

SRK is satisfied that the geological modelling honours the current geological information and knowledge. The location of the samples and the assay data are sufficiently reliable to support resource evaluation and do not present a risk to resource classification. The mineral resource model is largely based on geological knowledge derived from boreholes drilled on sections spaced at 50 metres apart. The geological information is sufficiently dense to allow modelling with reasonable confidence the boundaries of the gold mineralization for the Pokukrom zones, while for the Nfante West Zone, the geological continuity can only be inferred at the current drill spacing within the meaning of the CIM Definition Standards for Mineral Resources and Mineral Reserves (November 2011).

SRK considers that modeled gold mineralization exhibiting good reporting grade continuity informed by adequately spaced, reliable sampling data and estimated during the first estimation pass within a conceptual pit shell can be classified in the Indicated category within the meaning of the CIM Definition Standards for Mineral Resources and Mineral Reserves (November 2011). For those blocks, SRK considers that the level of confidence is sufficient to allow appropriate application of technical and economic parameters to support mine planning and to allow evaluation of the economic viability of the deposit. Those blocks located in the Pokukrom zones can be appropriately classified as Indicated. Conversely, blocks estimated during the second pass and all those blocks located in domains where the geological and gold mineralization continuity can only be inferred should be classified in the Inferred category because the confidence in the estimates is insufficient to allow for the meaningful application of technical and economic parameters or to enable an evaluation of economic viability. SRK considers that portions of the Manfo gold mineralization are amenable for open pit extraction, with "reasonable prospects" for economic extraction by an open pit assessed using a pit optimizer. The Manfo project is at a relatively early stage of exploration. The gold mineralization delineated by drilling is not completely closed off by drilling. For this reason, SRK considers that the gold mineralization located outside a conceptual pit shell but above the bottom of the pit shell may eventually be shown to be amenable for open pit extraction. Accordingly all blocks located outside the conceptual pit shell were reclassified as Inferred. Open Pit Mineral Resources reported at cut-offs of 0.40 gpt for oxide material and at 0.50 gpt for transitional and fresh material.