Xiaonanshan Mine, China - Resource Expansion and Geologic Studies

Clyde and David Smith provided comprehensive geologic services to the Xiaonanshan iron mine in eastern China in 2009-10. Our program resulted in upgrading a historical 1970s-era resource estimate of 71 million tonnes to a JORC-compliant total resource of 208 million tonnes at 18.5% TFe-almost tripling the project's resource. Our geologic services included data review, geologic mapping of the entire deposit, geochemical sampling, petrography, ore characterization, drill program design and management, resource modeling management, reporting, and evaluation of other nearby acquisition targets. We also provided project management services, including joint-venture partner negotiations, support of fundraising, staffing, and consultant selection. We designed and managed all aspects of the six-rig core drilling program, supervising SRK Consultants and local drillers, and managed both SRK and Wardrop Engineering in performing a JORC-compliant resource calculation. The deposit is a complex, layered hydrothermal iron deposit consisting of magnetite-matrix breccia bodies and vein-hosted and disseminated magnetite in andesite and diorite host rocks. Xiaonanshan is one of the first fully foreign-owned iron ore mines in China, producing up to 360,000 tons per year magnetite concentrate and shipping directly to nearby steelmaking facilities.

El Capitan, New Mexico - Drilling and Resource Modeling Management

Clyde and David Smith provided complete geological consulting services on this gold-bearing magnetite skarn project in south-central New Mexico. We conducted a program of geologic mapping and bedrock sampling, a 37-hole drill program, core and drill-cutting logging, sample chain of custody, evaluation of assay and metallurgical procedures and results, and a resource calculation by a recognized independent consulting firm. The program resulted in a resource of 2.8 million ounces gold grading 0.02 opt Au. Our consulting recommendation was that the client seek independent third-party laboratory verifications of assay and metallurgical results.

Havasu, Arizona - Drill Sample Chain of Custody

David Smith provided onsite drilling observation and sample chain-of-custody services to the Australian exploration company Moreton Gold in 2009 on its Havasu project in west-central Arizona. Moreton was investigating the potential of apparent alluvial gold mineralization by performing a large-diameter (18-inch) auger drilling program to maximize sample volumes, with samples placed into and transported in 1.5-ton super sacks. David observed and reported on all onsite drilling and sampling, sealed and photographed sample sacks, observed sample transport, and verified intact sample chain of custody to the lab.