103.0 to 264.0 161.0 m 4.7 grams SUMMARY OF LAS TRES PALMAS 2012 DRILLING
Hole ID From To Interval Au Cu Sector(i)
(m) (m) (m) (g/t) (%)
LTP-77 160.0 168.0 8.0 0.72 - Escandalosa
and 198.0 202.0 4.0 0.73 -
LTP-78 No significant values Escandalosa
LTP-79 52.3 68.0 15.7 0.91 - Escandalosa
Including 60.0 68.0 8.0 1.28 -
LTP-80 No significant values Escandalosa
LTP-81 154.0 166.0 12.0 0.89 - Other(i)
and 194.0 198.0 4.0 0.55 -
LTP-82 50.0 54.0 4.0 0.33 - Other(i)
LTP-83 34.0 56.0 22.0 5.99 0.23 Escandalosa
Including 38.0 52.0 14.0 9.07 0.24
LTP-84 264.0 271.9 7.9 2.96 0.52 Escandalosa
and 278.0 282.0 4.0 0.72 -
LTP-85 26.6 36.6 10.0 0.53 - Hondo Valle
LTP-86 136.0 138.0 2.0 0.34 - Other(i)
LTP-87 74.0 78.0 4.0 0.38 - Other(i)
LTP-88 64.0 70.0 6.0 0.44 - Other(i)
LTP-89 130.0 151.4 21.4 0.66 0.34 Hondo Valle
Including 146.0 151.4 5.4 1.69 0.97
and 177.0 205.0 28.0 0.67 0.13
Including 195.0 205.0 10.0 1.27 0.12
LTP-90 33.0 264.0 231.0 2.42 0.44 Romero (ii)
Including 33.0 103.0 70.0 1.36 0.04
and 103.0 264.0 161.0 4.7 0.78
Including 103.7 148.0 44.3 3.53 0.77
180.0 204.0 24 1.14 0.78
and 216.0 258.0 42.0 6.26 1.04
Including 216.0 228.0 12.0 16.95 2.14
LTP-91 186.0 222.0 36.0 1.14 Pending Hondo Valle
Including 192.0 206.0 14.1 2.36 Pending
(i) Other targets along trend
(ii) New discovery
The Romero discovery is different from previous mineralization to the south due to its greater thickness of mineralization, more sulphides toward the north and high gold values associated with high copper values at depth, with individual results up to 57.8 g/t gold and 3.4 per cent copper over a two-metre interval. The previously reported thickest intersection at Las Tres Palmas was at La Escandalosa Sur where LTP 07, containing 63 metres grading 2.1 g/t gold, and the highest gold grade previously reported interval was in LTP 39 where two metres graded 68.5 g/t gold (see releases dated May 30, 2006, and July 6, 2010). Preliminary core logging and interpretation suggest that the mineralization may be related to a copper-gold-bearing hydrothermal source for the mineralizing fluids where the metals are entrapped in the andesite/dacite units.
The potential quantity and grade of the Romero mineralization is not the subject of an NI 43-101-compliant inferred resource, is conceptual in nature, and there has been insufficient exploration to define a mineral resource, and the company is uncertain if further exploration will result in the Romero mineralization being delineated as a mineral resource at this time.
The hole was drilled vertically and was sampled at approximately two-metre intervals. There is not sufficient data to calculate a meaningful top cut-off, especially as all the high-grade gold intervals contained significant copper. The true width of the intersection is unknown, especially as the drill hole bottomed in mineralization. As geologically consistent alteration and mineralization was seen from 30 metres to 261 metres, the reporting of the complete interval in entirety is considered valid. If a top cut of 50 g/t gold was employed (internal sections of less than 0.15 g/t were calculated to be barren of gold), the calculated intersection would have been 231 metres grading 2.3 g/t gold, a loss of an insignificant 0.1 g/t gold, with no accounting for contained copper. Only two internal waste intervals greater than two metres were reported, 12.7 metres and six metres respectively, both containing gold below the 0.15 g/t gold cut-off but considered zero grade for the calculations.
La Escandalosa and Hondo Valle results
The 15-hole drill program also investigated other parts of the Las Tres Palmas trend. No significant mineralization was found south of La Escandalosa Sur or between La Escandalosa Sur and Hondo Valle, which do not appear to be connected. Hole LTP 83 on the northern flank of La Escandalosa returned 22 metres grading six g/t gold, and will be considered in any future resource calculations. At Hondo Valle, holes LTP 85 and 89 had mineralized intervals and LTP 91 returned 14.05 metres grading 2.4 g/t gold. Hondo Valle includes results such as LTP 65 which returned 29 metres grading 2.2 g/t gold from 50 metres to 79 metres (see release dated May 16, 2011) and LTP 02 which returned 42 metres grading 1.7 g/t gold from zero metres to 42 metres depth (see release dated May 2, 2006).
Gold in the Dominican Republic
The complete La Tres Palmas structural corridor, including the Romero discovery, is located in the Upper Cretaceous-aged Upper Tireo formation, in the central Dominican Republic. Unigold is also exploring in the Upper Tireo formation and recently reported drilling results from similar dacite breccias including 70 metres grading 2.1 g/t gold, around 50 kilometres northwest of Las Tres Palmas. Also hosted by dacite breccias, Goldquest's Jengibre discovery, located 28 kilometres southeast of Las Tres Palmas, hole JNG 02 returned 32 metres grading 1.6 g/t gold. Barrick and GoldCorp's Pueblo Viejo mine is located in the Lower Cretaceous-aged Los Ranchos formation, approximately 105 kilometres east of Las Tres Palmas, which contains proven and probable reserves of 314.5 million tonnes grading 2.48 g/t, a high-sulphidation system containing 25.3 million ounces of gold in reserves and further measured and indicated resources of 10.9 million ounces of gold (see Barrick form 40-F, 2011).
In Goldquest's drill programs, composite intervals were chosen using a combination of geological criteria and mineralization, averaging around two metres core length. The drill core is cut in half with one-half of the core sample shipped to ACME Labs by Goldquest technicians. The remaining half of the core is kept at the company core shack for future assay verification or any further investigation. Intervals below a bottom cut-off grade of 0.15 g/t Au were calculated at zero gold. All drill samples were prepared and screened by ACME Labs (Santo Domingo) and metallic fire assay and multielement ICP-MS were assayed by ACME Analytical Laboratories (Chile). Gold values are determined by standard fire assay of a 50-gram charge with an AA finish, or if over 10 g/t Au, were reassayed and completed with a gravimetric finish. Quality assurance/quality control (QA/QC) included the insertion and continual monitoring of numerous standards, blanks and duplicates into the sample stream at random intervals within each batch. Fully comprehensive Goldquest QA/QC protocols can be viewed on the company website.
We seek Safe Harbor.