Conway Resources Inc CWNYF

Belleterre Vein systems - WARNING MANY

[denj681]

WARNING HEAVY READING from the N 43-101

9.1 Transversal veins

9.1.1 Vein No. 12

This vein contained most of the gold mineralization until now and was the source of more than 95% of the ore extracted by Belleterre Quebec Mines Ltd. between 1936 and 1959 (2.18 million metric tons at 10.73 g/t Au and 1.37 g/t Ag). It consists of bluish or smoked out, usually massive quartz containing several wall-rock enclaves. Small quantities of pyrite, pyrrhotine, sphalerite, chalcopyrite and local native gold are found associated with the vein particularly near the contacts with the host rock (Figures 6, 7 & 9). The vein consists of a tabular lens, of very irregular form (pinch and swells) and surfaces at the western and nearby No.1 Shaft. The vein roughly strikes N247° and dips approximately 57° SE as compared to the host rocks that dip steeply to sub vertically towards the SE. It is almost entirely confined in an intermediate to mafic lava flow with felsic tuffs to the top by unit No 16 and felsic tuffs for unit No 14 at the base. These tuff units are stratigraphic reference markers and were well identified by a great number of underground workings and bore holes. The vein was recognized over more than 900 meters in length, was developed and mined down to 450 meters deep. Its width varies from few centimetres to more than 3 meters locally. Secondary fractures and veinlets ramify from the principal vein at its western end and branches off from level 125 (38 meters) to the surface.

9.1.2 Veins No. 12W and 26

These veins are localized west of Shaft No. 3 and would correspond to the western extension of Vein No. 12, which is folded at that location. Vein No. 12W was developed below underground levels during the Fifties until the closing of the mine. In 1960, it was estimated that this vein contained historical resources of approximately 317,600 metric tons at 3.43 g/t Au (Internal report by McIntyre Mines). The vein was mined very partly due to its weak dip of 25-30° towards the West and its lower grade content. Vein No. 26 which seems to be the prolongation of Vein No. 12W towards the East and was partly worked in the past. Approximately 74 000 tons of ore was extracted between 1955 and 1957 with an average grade of 0.29 oz/t Au. These two veins show a possible extension under level 1275 (390 meters) where mining was completed. An average of approximately 4 meters of overburden covers the No.12W and No. 26 Veins except locally where it appears at the surface on a few meters. Surface geological mapping and sampling was completed on these 2 veins during 2006-2007 field seasons. Recently, Vein 12W revealed some significant gold bearing values such as 2,02 g/t Au over 0,5 meters; 2,06 g/t Au over 0,5 meters and 4,05 g/t Au over 0,5 meters (Figures 9 & 10). 9.1.3 Vein No. 2 At the Eastern end and above Vein No. 12, i.e. above tuff unit No. 16, there is another crosscutting vein which behaves in a way similar to that of Vein No. 12. Vein No. 2 was observed on five levels in the mine and over lengths varying between 90 and 150 meters. The vein extends from surface near Shaft No. 1 down to 180 meters deep and general orientation N290° E. Its dip is abrupt

towards SE and the width varies between a few centimetres and 2 meters. Sampling by Riverton Resources made it possible to define a content varying between 0.05 and 0.69 oz/t Au over 5 meters over 30 meters of sampling. As mentioned previously, this vein is exposed over approximately 100 meters in length and 20 meters in width, close to Shaft No. 1 and could be the subject of a bulk sampling of a few tens of thousands of tons at a grade between 3 and 6 g/t Au (Figure 9).

9.1.4 Vein No. 20

The discovery of this vein was made in the last years of exploitation of the mine. It is located at the south and below the Eastern end of Vein No. 12, within intermediate to mafic flows. Whereas Vein No. 12 pinches at depth, perhaps Vein No. 20 seems to become a little longer and represents an extending system of fractures at the lower levels. Vein No. 20 strikes E-W and dips 85° towards the north. Underground observations, on level 1500 (450 meters), show that it occupies a shear zone hosted in lava, diorite and porphyry. This zone of shearing has a width from 3 to 5 meters and the vein consists of quartz lenses, which overlap other zones “en echelon” along the structure and with 23

repetitions of lenses (boudinage). The vein contains significant quantities of sulphides especially of pyrite, accompanied by pyrrhotite, chalcopyrite and sphalerite. Very few developments was done on this vein between its discovery in 1953 and the closing of the mine in 1958. Future diamond drilling will permit to check the extensions and the potential of this vein.

9.1.5 Vein No. 11

This vein could correspond to the western projection of Vein No. 1. It consists of

white quartz sometimes smoky grey with a very small quantity of sulphides. It is located in an andesitic flow that shows the same correlations with the tuff units hosting other known transverse veins (Figure 9). This vein was explored in the various drifts between levels 125 and 500 over a length of 500 feet. Underground, it consists of a network of veinlets, but locally can reach a width of 3 meters. At surface, previous work completed by Riverton Resources updated this vein and a preliminary sampling revealed values varying between 0,15 oz/t Au over 8 feet up to 1,07 oz/t Au over 2 feet with an average grade of 0,36 oz/t Au over 4,2 feet, along 110 feet of sampling on the vein. A bulk sample of a few thousand tons at 3 to 5 g/t Au is required.

9.2.1 Vein No. 14

This vein is localized approximately 210 meters north of Vein No. 12 and was recognized on level 500 (150 meters). It is oriented N50°E with a dip of 70° towards southeast. The wallrock consists of brownish sediment accompanied by lenses of solidified tuff. The vein has a width of approximately 1,2 meters with an average grade of 0.29 oz/t of gold and 0.75 oz/t Ag. Vein No. 14 was developed from level 500 up to level 2250 starting from Shaft No. 1. Little ore was extracted from this vein, which was mainly mined between 1950 and 1951. In 1983, Dufresnoy drilled this vein with 12 short holes for a total of 3140 feet. Ten of these holes crossed the vein and 3 turned over significant values: 0.23 oz/t Au over 2 feet, 0.38 oz/t Au over 4.2 feet and 0.30 oz/t Au over 1.1 feet. The vein goes up to surface where a layer of 1 to 1,5 meters of overburden covers this Vein. An historical resources calculation realized by Riverton Resources in 1988 estimated at Geologica Groupe-Conseil Inc.401,800 tons at a grade of 0.12 oz/Au (364,600 metric tons at 4.11 g/t Au of unpublished company file source of ore remaining between surface and 715 meters using average thickness of 1,5 meters. In 1981, L.G. Hobbs estimated Vein No. 14 to contain approximately 60,000 tons at 0.19 oz/t Au (54,450 metric tons at 6.42 g/t Au) between surface and 250 foot level. . Future definition drilling will permit a revaluation of Vein No. 14 (Figure 9).

9.2.2 Vein No. 16

This vein was recognized in Shaft No. 1 to strike N45°E and dip steeply towards

the SE. This vein was followed from surface down to level 2250 (680 meters). The host is a silicified lithic tuff witch is identified as flow No. 12 in local mining terminology. On the surface, it consists of a series of veins with grey to white quartz veinlets with local visible gold shear silicified parts with average widths of 2,5 metres (Figure 9).

9.2.3 Vein No. 18

This vein was development at level 500 for a distance of approximately 75 meters. It consists of quartz in a silicified tuff recognized for 300 meters south of Vein No. 16. The width of the vein varies between a few centimetres and more than 1,5 meters. Diamond drilling permitted that the vein extends to surface

9.2.4 Veins No. 1 and 7

Vein No. 1 follows a tuff unit, which extends to the east from Shaft No. 2 along the northern side of the Mill Creek fault. It outcrops in trenches over a distance of 450 meters within the tuff. Its width varies between a few centimetres to approximately 6 meters. It consists of smoky quartz and contains a certain quantity of sulphides. Visible gold was observed in the vein during former work (Figure 9).

Vein No. 7 is perpendicular to Vein No. 1 and could be of the transverse type. This vein was the object of some underground developments at the time of the exploitation by Belleterre Gold Mines. The vein was recognized on more than 80 feet with an average content of 0.53 oz/t Au over 1.8 feet.

.

9.2.5 Veins No. 6, 8 and 18

These veins are transverse and were the subject of very little work until now. They are localized close to Shaft No. 1 and No. 4. The veins are characterized by smoky quartz or a cherty tuff with widths varying between a few centimetres to approximately 1 meter locally. All these veins were recognized by drilling or on the surface (Figure 9).

9.3 Other veins

9.3.1 Veins No. 15 and 30 These veins were recognized approximately 700 meters southwest of the Shaft No. 2. A trench followed with a 2.4 meters deep bulk sample on Vein No. 30 and made it possible to define its potential. Three boreholes were carried out in 1986 by Exploration Brosnor including one too short, a second "down-dip" and a third which intersected the vein over a core length of 3 meters with an average grade of 0.25 oz/t Au (Figure 9).

9.3.2 Veins No. 19 and 23 These veins are located approximately 1 km southwest of Shaft No. 2 and have revealed significant gold values over more than 600 meters along an East-West axis dipping towards the south (Figure 9). The work completed in 2001 and recently by Mine Belleterre on Vein No. 19 is significant on the continuity of the host structure. The gold bearing potential remains to define since the assay results are still pending. 9.3.3 Veins No. 5, 28 and 29

All these veins were recognized on the property by surface and underground drilling at the time of the development of the mine or on surface outcrops at the time of the prospection. These veins are concordant or transverse with stratigraphy. However the current work level does not enable us to confirm. All these veins were little explored and show gold values varying from some ppb to more than 1,0 oz/t Au (Figure 9). The work completed in 2001 and recently by Mine Belleterre on Vein No. 5 demonstrates the continuity and the width of the carrying structure. The gold bearing potential remains to be defined. The cartography of summer 2006 significantly demonstrates the potential of veins 28 and 29 with values of more than 7,6 g/t Au as well as a potential for base metals.

 

2008 Drill Results

From December 2008 to January 2009, a total of 4,949 metres in 18 holes were drilled on Veins 14 and 16 and associated subsidiary conjugate auriferous structures. These drill holes have also led to the identification of other networks and small vein and stringer zones between Veins 14 and 16.

Vein 14

This gold structure is located 210 metres north of Shaft No.1. The vein has been traced over more than 300 metres on strike and down to 400 metres. This structure is open at depth below the deepest known level, the 2250 level (685 metres), and remains open East and West along strike. The most significant assay results for Vein 14 were 9.67 g/t Au over 0.64 metres; 8.33 g/t Au over 2.06 metres; 4.39 g/t Au over 2.0 metres; 2.42 g/t Au over 2.27 metres and 2.41 g/t Au over 2.01 metres.

Vein 16

Vein 16 is located on and near Shaft No.1. The vein was identified as far down as level 1800 (550 metres) when McIntyre was operating the mine. The drilling program has demonstrated that Vein 16 is subparallel and concordant to Vein 14. It extends laterally over a distance of 240 metres, and is open laterally to the East and West and at depth. The most significant Vein 16 intersections returned 26.35 g/t Au over 2.61 metres; 7.08 g/t Au over 1.0 metre; 1.84 g/t Au over 0.87 metres and 1.16 g/t Au over 1.42 metres.

Other Identified Veins

Veins

Description

12
900 metres long, developed and mined down to 450 metres. Source of more than 95% of the ore extracted.

12W 26

These two veins show a possible extension under level 1275 (390 metres), where mining was completed.

Vein 12W hosts historical resources of approximately 317,600 tonnes at 3.43 g/t Au (internal report by

McIntyre Mines). Vein 12W returned some significant gold bearing values from a 2006-07 sampling

program, including 2.02 g/t Au over 0.5 metres; 2.06 g/t Au over 0.5 metres and 4.05 g/t Au over 0.5 metres. Approximately 74,000 tonnes of ore were mined from Vein 26 at an average grade of 9.02 g/t Au.

2

Vein 2 was identified on five levels in the mine, over distances of 90 to 150 metres. Sampling by Riverton

Resources made it possible to define a content of from 1.56 to 21.46 g/t Au over 5 metres over 30 metres of sampling.

20

This vein was discovered in the final years of mining. It is located to the south of and below the eastern end of Vein 12.

11

This vein was explored in the various drifts between levels 125 and 500 over a distance of 152 metres. On

surface, preliminary sampling by Riverton Resources returned values ranging from 4.67 g/t Au over 2.4

metres to up to 33.28 g/t Au over 0.61 metres, with an average grade of 11.20 g/t Au over 1.28 metres, over 33 metres of sampling on the vein.

18

This vein was developed at level 500 over a distance of approximately 75 metres. Diamond drilling

confirmed that the vein extends to the surface.

1

Vein 1 extends eastward from Shaft No. 2 along the northern side of the Mill Creek fault. It outcrops in

trenches over a distance of 450 metres. Visible gold was observed in the vein during previous work.

7

Vein 7 is perpendicular to Vein 1 and could be transverse-type. Some underground development work was

done on this vein during mining. The vein was identified over more than 24 metres with an average grade of 16.48 g/t Au over 0.55 metres.

6 8 18

Very little work was done on these transverse-type veins. They are located close to Shaft No.1 and No.4. All these veins were identified by drilling or on surface.

15 30

These veins were identified approximately 700 metres southwest of Shaft No.2. The potential of Vein 30 was tested by trenching followed by a 2.4-metre deep bulk sample. Three holes drilled in 1986 by Exploration Brosnor intersected the vein over a length of 3 metres at an average grade of 7.78 g/t Au.

19 23

These east-west striking veins are located approximately 1 km southwest of Shaft No.2 and have returned

significant gold values over more than 600 metres. The work done on Vein 19 in 2001 and later by Belleterre Mining demonstrated the continuity of the host structure.

5 28 29

These little-explored veins have returned gold values ranging from a few ppb to more than 31.1 g/t Au. The work done in 2001 and later by Belleterre Mining on Vein 5 demonstrated the continuity and width of the host structure. Mapping in the summer of 2006 demonstrated the significant potential of Veins 28 and 29, which returned values of over 7.6 g/t Au.