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Enhanced Exploration Targeting at Hope Brook, Newfoundland:

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Presentation on theme: "Enhanced Exploration Targeting at Hope Brook, Newfoundland:"— Presentation transcript:

1 Enhanced Exploration Targeting at Hope Brook, Newfoundland:
Growing Projects in Canada Enhanced Exploration Targeting at Hope Brook, Newfoundland: Application of Multi-Disciplinary Industry Academic Investigations November 21, 2013

2 Forward Looking Statements and Technical Disclosures
The information presented contains “forward-looking statements”, within the meaning of the United States Private Securities Litigation Reform Act of 1995, and “forward-looking information” under similar Canadian legislation, concerning the business, operations and financial performance and condition of the Company. Forward-looking statements and forward-looking information include, but are not limited to, statements with respect to the estimation of mineral reserves and mineral resources; the realization of mineral reserve estimates; the timing and amount of estimated future production; costs of production; capital expenditures; success of exploration activities; permitting time lines and permitting, mining or processing issues; government regulation of mining operations; environmental risks; unanticipated reclamation expenses; title disputes or claims; litigation liabilities; and limitations on insurance coverage. Generally, forward-looking statements and forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking statements and forward-looking information are based on the opinions and estimates of management as of the date such statements are made, and they are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements or forward-looking information. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. The Company does not undertake to update any forward-looking statements or forward-looking information that are incorporated by reference herein, except in accordance with applicable securities laws. Dr. Bill Pearson, P.Geo. who is a Qualified Person as defined by NI and reviewed and approved the scientific and technical information contained in this presentation. Cautionary Note to U.S. Investors Concerning Estimates of Measured, Indicated or Inferred Resources. The information presented uses the terms “measured”, “indicated” and “inferred” mineral resources. United States investors are advised that while such terms are recognized and required by Canadian regulations, the United States Securities and Exchange Commission does not recognize these terms. “Inferred mineral resources” have a great amount of uncertainty as to their existence, and as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or other economic studies. United States investors are cautioned not to assume that all or any part of measured or indicated mineral resources will ever be converted into mineral reserves. United States investors are also cautioned not to assume that all or any part of an inferred mineral resource exists, or is economically or legally mineable.

3 Using Science to Advance Exploration
Coastal Gold Exploration Team Bill Pearson, Ph.D., P.Geo., President & CEO Dave Copeland, M.Sc., P. Geo., Chief Geologist Blake Hylands, Staff Geologist Jeff Burke, Staff Geologist Noah Rowsell, Project Manager Chris Hale, Ph.D., P.Geo., Chief Geophysicist John Gilliatt, P.Geo., Consulting Geophysicist University Research Partners Western University Dr. Neil Banerjee, Assistant Professor Erika Cayer, Geology Student Memorial University Dr. Steve Piercey, Associate Professor Need title for Ground Geophysics Quantec Titan 24 COD IP Team

4 Overview of Presentation
Geological Setting of Hope Brook Use of Geophysics to outline Mineralized Zones Application of 3-D Inversion Models Nature & Distribution of Mineralization Isotopic Composition of Mineralization; what it tells us about fluid source and origin Lithogeochemistry and Alteration; tie-in to Geophysics and how to vector to higher grade areas Working Exploration Model for Hope Brook

5 Hope Brook Gold: The Flagship Project
100% ownership in 1,005 claims covering 25,125 ha Historical production (1987 – 1997) of 752,163 ounces gold plus copper concentrate from Current Mineral Resource Indicated: 12.3 million tonnes @ 1.48 g Au/t for 590,000 oz Inferred: 8.3 million g Au/t for 548,000 oz Deposit hosted in SW part of Late Proterozoic Avalon Zone Bill to rewrite text

6 Geology of Avalon Zone Late Neo-Proterozoic ( Ma) assemblage of active plate margin sequences (O’Brien et al. 1998) Sequences accumulated prior to development and closure of the Lower Proterozoic Iapetas Ocean Most significant magmatic activity from Ma Volcanic and plutonic rocks in this period evolved in back-arc or continental arc settings Broad association with terrestrial or marine siliciclastic sequences Related in time to develop of Gold mineralized systems in Avalon Zone of which Hope Brook is a major example Intense post mineral deformation

7 Published Models for Hope Brook
1985 to 1990 – BP-Selco (Colin McKenzie, Alan Yule) – Identification of Pre-shearing, synvolcanic/intrusive Acid Sulphate Hydrothermal Alteration Developed atop the Roti Intrusive Suite. 1992 – Peter Stewart Ph.D. Thesis – Major Descriptive Study of the Hope Brook Deposit and Characterization of Alteration - Postulated Importance of Chetwynd Granite. 1996 to 1998 – Dr. Benoit Dube (GSC) and Dr. Sean O’Brien (NLGS) – Description of Deposit as a High-Sulphidation Epithermal System within the Neoproterozoic Avalon Zone. 2010 – present – Coastal Gold - Further Identification as High-Sulphidation Mesothermal to Epithermal Deposit Developed within a Neoproterozoic Arc System – de-mystification of the Chetwynd Granite. Commonalities with younger world class high sulphidation systems globally.

8 Hope Brook Stratigraphy and Age
After Dube et al., 1998

9 Major Gold Mineralized Structure more than 8 km in Length
This is an extensive mineralized system that is very under- explored

10 Airborne Magnetics Strongly silicified gold mineralized zone in late Proterozoic rocks are marked by a prominent magnetic low (in blue)

11 Property Geology

12 Large Scale Mineralized System
Altered & Mineralized Shear Zone 500+m wide High sulphidation gold deposit formed from a long lived magmatic- hydrothermal system Mineralized zone open along strike and at depth Alteration pattern similar to large scale epithermal systems Considerable upside for outlining additional higher grade mineralization within extensive lower grade mineralization Open Pit (behind hill) Helicopter for scale Neoproterozoic Rocks Cinq Cerf Fault Zone Silurian Rocks

13 Exploration Drill Targets at Hope Brook

14 General Lithostratigraphy
Pyrite Zone – Felsic Fragmental, highly siliceous with 2-15% stringer Pyrite. 30-80 metres thick Silicified Mineralized Zone Massive v. fine grained silica, vuggy, microbrecciated with 2- 4% Py and up to 4% Cp, Bn. Cut by unaltered mafic dykes. 15-80 metres thick Advanced Argillic Zone Variably textured, white to grey, pyrophyllite, alunite, kaolinite; 2-5% diss. Py. Blue Qtz crystals, occasional preserved felsic fragments and quartz porphyry. Up to 300 m thick Cinq Cerf Fault

15 Gold Mineralization at Hope Brook
Gold mineralization hosted in silicified zones within Late Proterozoic Whittle Hill Sandstone – Third Pond Tuff succession Two major gold-bearing stages: Earlier pervasive buff coloured silicification with lower grade mineralization (~0.5 – 1.0 g Au/t) 15-80m thick Later vuggy grey silicification with local siliceous breccia (>2.0 – 5.0+ g Au/t and significant Cu) 5-25m thick

16 Mine Zone Geological Section 11400E
Extensive mineralized system that is very underexplored

17 New Structural Model with Major Folds
240 - Connector Zone Target extends for 1,200m along strike Drilling and geophysics have identified a major fold structure that closes below surface in the Connector Zone. This explains why the silicified horizon doesn’t come to surface southwest of the existing mine where historical drilling failed to intersect the mineralized silicified zone. Section E

18 Hope Brook Gold Resource Model (Being Updated)
590,000 Indicated and 548,000 Inferred ounces of gold are located within this model* Newly Identified Major Near Surface Target Zone Mine Zone open open 240 Zone open open *For full Mineral Resource Estimate, please refer to the table and technical disclosures found on slide 11

19 Developing Improved Vectors for Exploration
Key Questions: How to efficiently trace mineralized zones and outline areas with strongest and most extensive silicification. Are two stages of mineralization the result of different events or evolution of the same hydrothermic system? How to better target areas of higher grade mineralization within the mineralized structure. What is the potential size and scale of the Hope Brook gold mineralized system? How to best integrate new information into an enhanced model to direct further exploration efficiently.

20 Titan 24 Survey at Hope Brook
How to Efficiently Trace Mineralized Zones and Outline Areas with Strongest and Most Extensive Silicification Titan 24 Survey at Hope Brook Section Former HB Mine Major Target Zone Extensive Resistivity Low Marks Footwall Conductor (Blue)

21 How to Efficiently Trace Mineralized Zones and Outline Areas with Strongest and Most Extensive Silicification (Cont’d) Updated by Chris Resistivity

22 How to Efficiently Trace Mineralized Zones and Outline Areas with Strongest and Most Extensive Silicification (Cont’d) 3D Inversion Model: UBC DCIP3D Conductivity

23 How to Efficiently Trace Mineralized Zones and Outline Areas with Strongest and Most Extensive Silicification (Cont’d) Footwall Pyrite Conductor Resistive Silicified Mineralized Zone Geosoft 3D Voxel Model DC Conductivity

24 Fall 2012 Drill Program Confirmed Major Strike Extent
Completed 5,951 meters of reconnaissance diamond drilling in 21 holes  Drill program identified a major new near surface target zone in the “Connector Zone” just 900m southwest of the former mine Mineralized silicified zones were intersected over a strike length of 3.4km demonstrating continuity of the system and effectiveness of targeting using geophysics Thickness of the Connector Zone alteration is interpreted to be similar to that of the former mine and 240 Zone Drill Results included: Hole HB12-100: 1.51 Au g/t over 14m, 2.03 Au g/t over 8m, and 1.07 g Au/t over 18.1m Hole HB12-101: 1.04 g Au/t over 8.5m, 1.44 g Au/t over 2.9m, and 1.35 g Au/t over 5.6m

25 Collaborative Research Project
Are two stages of mineralization the result of different events or evolution of the same hydrothermal system? How to better target areas of higher grade mineralization within the mineralized structure Collaborative research project in progress with University of Western Ontario and Memorial University Focus is to better understand nature, distribution and origin of higher grade mineralization to aid further exploration Samples selected from a fence of holes covering range of lithologies and mineralization Initial results are very encouraging

26 Hope Brook: Mineralogy of High Grade Au
Scanning Electron Microscope Indicates elements present include Sn, Hg, As, Pb, Fe, Si, Cu, Au 1 2 1 Au cp mw Mineral Liberation Analysis: Epithermal Mineral Assemblage Mawsonite, Cassiterite (Both Sn minerals) Gold Grain Mapping Fine grained 2-3 microns within sulphide grains Typically on margins of chalcopyrite (cp), mawsonite (mw) and bornite (bn) 50 m 0 m 50000 m 2 3 Au 3 bn mw Au cp 0 m 200 m

27 Hope Brook: Mineralizing Fluids
Hole HB included the highest grade returned at Hope Brook g/t Au and 7.98% Cu over 1.5m Core Length Analysis of samples from major silicified zones across deposit; grades from 0.5 g Au/t to 204 g Au/t Wallrock has wide range of O isotopic values typical of volcanic-sedimentary- intrusive rocks ALL the samples with elevated gold are restricted to a very narrow d18O range Gold mineralization at Hope Brook was likely deposited from a single fluid source

28 Primary Lithogeochemistry
Tectonic Discrimination Diagrams Hope Brook Deposit hosted within calc-alkaline to transitional arc volcanic and intrusive suite; Change in tectonism/magmatic chemistry key to mineralization? All rocks (Siliceous, Pyrite and Argillic Alteration Zones, Roti Intrusive Suite) lie along the same fractional crystallization trend and have a common magmatic source => unified stratigraphy Immobile trace element geochemistry similar to world- class high sulphidation and porphyry Au-Cu deposits (e.g. Yanacocha, Peru and Lepanto, Phillippines) Calc-alkaline to Transitional Volcanic Arc (I-type setting) Yanacocha data from Longo et al. (2010) Lepanto data from Hedenquist et al. (1997) Yanacocha Lepanto Siliceous Pyrite Zone Argillic Roti Legend Hope Brook

29 Primary Lithogeochemistry
Primitive Mantle Normalized Trace Element Plots Expanded trace element geochemistry very similar to other world-class high- sulphidation and porphyry Au-Cu deposits (e.g. Yanacocha, Peru; Lepanto, Phillippines) Flat HREE (right side of plot) indicative of melting at shallow crustal levels = HIGH HEAT FLOW The right tectonic environment, same chemistry and formation conditions for causative intrusions = LARGE SYSTEM!! Roti Intrusive Suite, Hope Brook Data from Longo et al. (2010) Intrusive Rocks Yanacocha, Peru

30 Primary Lithogeochemistry
Primitive Mantle Normalized Trace Element Plots Pyrite Zone and Siliceous Mineralized Zone show alteration but same REE plot as Roti Intrusive. Shows that the Silicified and Pyrite Zones Developed from a similar parent magma to the Roti Intrusive Suite. Provides a linkage between conductive Pyrite Zone and Mineralized Silicified Zone. i.e. conductors act as a good proxy for mineralized zones. Pyrite Zone, Hope Brook Silicified Zone, Hope Brook

31 Lithogeochemistry and Alteration
Intense alteration zone outlined between the Main Zone and 240 Zone. Alteration typified by Na- depletion and elevated major element alteration indices (e.g. CCPI – Chlorite-Carbonate-Pyrite Index). Alteration zone tracks SW towards the 240 Zone and its up dip extension. Large untested, near- surface Exploration Target. Near-surface Target Zone <0.5% Na surface marking zone of Na- depletion Gold Resource 0.5 g Au/t cut-off Near-surface Target Zone CCPI>80 marking zone of Au proximal Alteration Gold Resource 0.5 g Au/t cut-off Models in Target-ARCGIS

32 Key Points Lithogeochemistry and alteration support and enhance the geophysical interpretation Lithogeochemistry confirms linkage between mineralized silicified zone and conductive pyrite zone  Validates use as geophysical marker REE patterns, clay mineralogy and isotopic data indicate a dynamic mesothermal to epithermal environment Comparable REE and alteration patterns to world class high sulphidation systems in similar tectonic environments  Potential size and scale of the Hope Brook mineralized system is much greater than previously recognized

33 Hope Brook Deposit Model
Chris to fix After Dube et al., 1998 High-Sulphidation Mesothermal to Epithermal

34 Hope Brook Origin – Working Hypothesis
Fluids responsible for all gold mineralization had a similar geochemical composition and are likely the result of a single large system Overall low d18O values suggests the possibility of hotter fluids than might be expected at the top of the system i.e. mesothermal – epithermal level Mineralogy is epithermal in character but textures and isotopes indicate deeper level in system

35 Implications for Hope Brook Exploration
Mineralization likely formed by major magmatic- hydrothermal system Mineralizing system likely initially mesothermal then became emergent to more epithermal but not shallow Age of mineralization possibly correlative with Roti Intrusion – 563+/-4 Ma (Dunning et al., 1988) Pyrite zone confirmed as effective geophysical marker Lithogeochemistry appears to provide best vector to areas of potential higher grade mineralization

36 Conclusions Geological, geophysical, geochemical and isotopic data have better characterized overall mineralizing system Collaborative research project enhanced knowledge of mineralogy, alteration and likely fluid source Hope Brook is a far bigger system than previously believed Exploration has just scratched the surface – vectors have been developed for more efficient targeting 3-D technology for geophysics, geology and alteration are valuable tools to aid interpretation and develop predictive models for exploration Use of Science and 3D Technology has Greatly Enhanced Exploration Efficiency

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