Download - Technical Report on the Former Ruttan Mine, …...Technical Report on the Former Ruttan Mine 1.41% zinc. The reserve estimates are not supported by an NI 43-101 pre-feasibility study

0787190100-REP-R0001-00

Report to:

TREVALI MINING CORP.

Technical Report on theFormer Ruttan Mine,Northern Manitoba, Canada

Document No. 0787190100-REP-R0001-00

0787190100-REP-R0001-00

Report to:


TECHNICAL REPORT ON THE

FORMER RUTTAN MINE,NORTHERN MANITOBA, CANADA

EFFECTIVE DATE: FEBRUARY 18, 2009FILING DATE: AUGUST 19, 2011

Prepared by Tim Maunula, P.Geo.Christopher Moreton, Ph.D., P.Geo.

MM/vc

Suite 900, 330 Bay Street, Toronto, Ontario M5H 2S8Phone: 416-368-9080 Fax: 416-368-1963

0787190100-REP-R0001-00

Report to:


TECHNICAL REPORT ON THE

FORMER RUTTAN MINE,NORTHERN MANITOBA, CANADA

EFFECTIVE DATE: FEBRUARY 18, 2009FILING DATE: AUGUST 19, 2011

Prepared by “Original document signed byTim Maunula, P.Geo.”

Date August 19, 2011

Tim Maunula, P.Geo.

Reviewed by “Original document signed byMike McLaughlin, P.Geo.”


Mike McLaughlin, P.Eng.

Authorized by “Original document signed byTim Maunula, P.Geo.”


MM/vc

Tim Maunula, P.Geo.

330 Bay Street, Suite 900, Toronto, Ontario M5H 2S8Phone: 416-368-9080 Fax: 416-368-1963

0787190100-REP-L0001-04

R E V I S I O N H I S T O R Y

REV.NO

ISSUE DATE PREPARED BYAND DATE

REVIEWED BYAND DATE

APPROVED BYAND DATE

DESCRIPTION OF REVISION

00 2011/08/19 Tim Maunula Mike McLaughlin Tim MaunulaOriginal technical report readdressed to TrevaliMining Corp.

i 0787190100-REP-R0001-00

T A B L E O F C O N T E N T S

1.0 SUMMARY .......................................................................................................................... 1

1.1 RESOURCE STATEMENT ........................................................................................................3

2.0 INTRODUCTION AND TERMS OF REFERENCE.............................................................. 4

2.1 TERMS OF REFERENCE .........................................................................................................6

3.0 RELIANCE ON OTHER EXPERTS..................................................................................... 8

4.0 PROPERTY DESCRIPTION AND LOCATION ................................................................... 9

5.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE ANDPHYSIOGRAPHY.............................................................................................................. 14

6.0 HISTORY........................................................................................................................... 16

6.1 COPPER CLAIMS .................................................................................................................16

7.0 GEOLOGICAL SETTING.................................................................................................. 20

7.1 REGIONAL GEOLOGY...........................................................................................................20

7.2 PROPERTY GEOLOGY..........................................................................................................207.2.1 RUTTAN MINE (COPPER CLAIMS)........................................................................20

8.0 DEPOSIT TYPE................................................................................................................. 26

9.0 MINERALIZATION............................................................................................................ 27

10.0 EXPLORATION................................................................................................................. 28

10.1 DRILLING 2007 ...................................................................................................................28

10.2 DRILLING, 2007-2008 .........................................................................................................30

10.3 DRILLING, 2008 ..................................................................................................................32

10.4 GEOPHYSICS, 2008 ............................................................................................................33

10.5 EXPLORATION EXPENDITURES, 2007-2008..........................................................................33

11.0 DRILLING.......................................................................................................................... 35

12.0 SAMPLING METHOD AND APPROACH ......................................................................... 36

13.0 SAMPLE PREPARATION, ANALYSES, AND SECURITY............................................... 38

14.0 DATA VERIFICATION ...................................................................................................... 40

15.0 ADJACENT PROPERTIES ............................................................................................... 42

16.0 MINERAL PROCESSING AND METALLURGICAL TESTING......................................... 43

ii 0787190100-REP-R0001-00

17.0 MINERAL RESOURCE AND MINERAL RESERVE ESTIMATES.................................... 44

17.1 INTRODUCTION ...................................................................................................................4417.1.1 DATABASE .........................................................................................................4417.1.2 SPECIFIC GRAVITY .............................................................................................45

17.2 EXPLORATORY DATA ANALYSIS ...........................................................................................4517.2.1 RAW ASSAYS.....................................................................................................4617.2.2 CAPPING ...........................................................................................................4617.2.3 COMPOSITES .....................................................................................................49

17.3 GEOLOGICAL INTERPRETATION ............................................................................................53

17.4 SPATIAL ANALYSIS ..............................................................................................................54

17.5 BLOCK MODEL ....................................................................................................................5417.5.1 BLOCK MODEL SIZE ...........................................................................................5417.5.2 INTERPOLATION PLAN ........................................................................................5717.5.3 METAL EQUIVALENCY FORMULAE .......................................................................5817.5.4 MINERAL RESOURCE CLASSIFICATION ................................................................5917.5.5 MINERAL RESOURCE TABULATION ......................................................................6017.5.6 VALIDATION .......................................................................................................62

18.0 OTHER RELEVANT DATA AND INFORMATION ............................................................ 64

19.0 INTERPRETATION AND CONCLUSIONS ....................................................................... 65

20.0 RECOMMENDATIONS ..................................................................................................... 66

21.0 REFERENCES .................................................................................................................. 67

22.0 CERTIFICATE OF QUALIFIED PERSONS ...................................................................... 69

22.1 CERTIFICATE FOR PAUL DAIGLE, P.GEO. ............................ ERROR! BOOKMARK NOT DEFINED.

22.2 CERTIFICATE FOR CHRISTOPHER MORETON, PH.D., P.GEO. ................................................70

22.3 CERTIFICATE FOR TIMOTHY MAUNULA, P.GEO. ....................................................................69

L I S T O F T A B L E S

Table 1.1 Inferred Resources for the Ruttan Project at 1% CuEQ Cut-off Base Case ........ 3Table 4.1 List of Claims....................................................................................................... 12Table 5.1 Location and Access (from Harron, 2007) .......................................................... 15Table 6.1 History of the Copper Claims .............................................................................. 16Table 10.1 Kria 2007 Drill Hole Coordinates (Local Grid)..................................................... 29Table 10.2 Significant Values from the 2007 West Anomaly Drilling.................................... 29Table 10.3 Significant Values from the 2007 Hanging Wall Zinc Zone Drilling .................... 29Table 10.4 Drill Hole Coordinates form the 2007-2008 Winter Drilling Program.................. 31Table 10.5 Significant Results of the 2007/08 Winter Drill Program..................................... 32Table 10.6 Kria 2008 Summer Drill Hole Coordinates.......................................................... 32Table 10.7 Kria 2007 and 2008 Exploration Expenditures ................................................... 33

iii 0787190100-REP-R0001-00

Table 14.1 Check Sample Results from the 2007 Drilling Program ..................................... 41Table 17.1 Block Centroid Coordinates for the Ruttan Project............................................. 44Table 17.2 Summary of the Drilling Data Records................................................................ 45Table 17.3 HBM&S Specific Gravity Formula ....................................................................... 45Table 17.4 Raw Assay Statistics for the Complete Dataset (Excluding Regional Holes) .... 46Table 17.5 Capping Levels for the Complete Dataset (Excluding Regional Holes) ............. 46Table 17.6 Raw Assay Sample Length Statistics (Excluding Regional Holes) .................... 49Table 17.7 Composite Capped Samples .............................................................................. 50Table 17.8 Statistical Summary of all Composites (Values>0)............................................. 50Table 17.9 Solids Names and Explanation ........................................................................... 53Table 17.10 GEMS Block Model Limits (Edge to Edge) ......................................................... 54Table 17.11 Block Sizes.......................................................................................................... 54Table 17.12 Interpolation Parameters for Passes 1 and 2 ..................................................... 58Table 17.13 Distance to Nearest Composite Statistics........................................................... 60Table 17.14 Inferred Mineral Resources at Ruttan (Estimate by Wardrop, 2008) ................. 61Table 17.15 Global Grade Comparisons................................................................................. 62

L I S T O F F I G U R E S

Figure 4.1 General Location Map (From Harron, 2007)....................................................... 10Figure 4.2 Property Map (from Harron, 2007)...................................................................... 11Figure 6.1 General Location of the Mineralization (form Harron, 2007) .............................. 17Figure 6.2 Simplified Longitudinal Section (from Harron, 2007) .......................................... 18Figure 7.1 Regional Geology – Rusty Lake Belt (from Harron, 2007) ................................. 21Figure 7.2 Geology – Ruttan Mine Area (from Harron, 2007).............................................. 22Figure 10.1 Drill Hole Location Map, Kria Drill Programs 2007-2008 .................................... 34Figure 17.1 Copper Assays (%) for the Complete Dataset (Excluding Regional Holes)....... 47Figure 17.2 Zinc Assays (%) for the Complete Dataset (Excluding Regional Holes)............ 48Figure 17.3 Decile-Percentile Data for Zinc within the Complete Dataset (Excluding Regional

Holes) .................................................................................................................. 49Figure 17.4 Histogram and Cumulative Probability Plot for Copper ...................................... 51Figure 17.5 Histogram and Cumulative Probability Plot for Zinc ........................................... 52Figure 17.6 Three-Dimensional View of the Solids Used for the Resource Model................ 55Figure 17.7 Search Ellipse Parameters.................................................................................. 56Figure 17.8 Block Model Set-Up in GEMS............................................................................. 57Figure 17.9 Solid Extrusion Issues (Blocks Shown by Red Lines) ........................................ 60Figure 17.10 Composites-Block Model Grade Comparisons (1) ............................................. 62Figure 17.11 Composites-Block Model Grade Comparisons (2) ............................................. 63

Trevali Mining Corp. 1 0787190100-REP-R0001-00Technical Report on the Former Ruttan Mine

1 . 0 S U M M A R Y

Beartooth Platinum Corporation (Beartooth) is a Canadian registered mining

company and publicly listed on the TSX – Venture Exchange.

Kria Resources Limited (Kria) is a private Canadian registered base metal

exploration and development company focused on high quality base metal assets

including lead, zinc, copper and nickel in Manitoba and New Brunswick, Canada.

On October 23, 2008, Beartooth and Kria signed an agreement whereby Beartooth

will acquire all of the outstanding common shares of Kria in exchange for common

shares of Beartooth and effect a merger of the two companies under the name of

Kria Resources Incorporated.

The following report is a revision of the “Technical Report on the Former Ruttan

Mine, Northern Manitoba, Canada” authored by Christopher Moreton, Ph.D., P.Geo.,

former Senior Geologist with Wardrop Engineering Inc. (Wardrop) on August 1, 2008.

The revision includes an update of exploration activities conducted by Kria during

2007 and 2008. These activities are included in this revised report to complete the

description of all exploration activities conducted on the former Ruttan Mine. The

results of these exploration activities do not materially change the resulting resource

estimate presented in this report.

Wardrop has prepared a National Instrument (NI) 43-101 compliant report and

resource estimate for the mineralization remaining within the former Ruttan Mine.

The estimate includes the areas known as the West Anomaly Mine and Main Mine as

well as the recently discovered lens known as the Hanging Wall Zinc Zone.

The Ruttan Mine property is located approximately 21 kilometres (km) east of the

Village of Leaf Rapids, which in turn is approximately 750 kilometres north-northwest

of Winnipeg, Manitoba. Vehicle access to the mine site is via Provincial Highway

391 to Leaf Rapids and then the all-weather Southern Indian Lake road.

The Ruttan property consists of the contiguous un-surveyed Copper 1 to 4 and

Copper 8 to 11 mining claims as well as a single claim (Copper 12) staked by Kria on

January 26th 2007. All of these claims are located in National Topographic System

(NTS) quadrangle 64/B/05 within The Pas Mining Division, Manitoba. The nine

Copper claims cover a nominal area of 1,994 hectares and contain the former Ruttan

Mine, tailings ponds, waste rock disposal areas and lands previously occupied by the

mine-mill complex.

The former Ruttan Mine closed in 2002 due to low metal prices. Production from the

mine in the period 1973-2002 was 55,175,754 tonnes grading 1.23% copper and


1.41% zinc. The reserve estimates are not supported by an NI 43-101 pre-feasibility

study and should not be relied upon. Wardrop has prepared a new resource

estimate for the remaining mineralization at the former Ruttan Mine (this report).

Both the open pit and the underground infrastructure on the Ruttan property are

flooded. The near-pit surface run-off is currently channelled into the pit. Buildings

related to the operation of the former mine have been demolished and some aspects

of surface reclamation have been started by the Government of Manitoba.

Newdene Gold Inc. (Newdene) entered into an option agreement with W. S. Ferreira

Ltd, dated July 31, 2006, for the purpose of acquiring a 100% interest in the Copper

1-4 mining claims. The Copper 8-11 claims were subsequently added and form part

of the option agreement. On January 25, 2007 Newdene Gold Inc. sold its interest to

Kria for $250,000 cash and retained a 2% net smelter royalty. At the time of writing

the Copper claims (1 to 4 and 8 to 12) are in Kria’s name.

The Copper claims are located in the west central portion of the Paleoproterozoic

Rusty Lake greenstone belt in the Lynn Lake-Leaf Rapids Domain on the northern

flank of the Trans-Hudson Orogen. The supracrustal rocks in the immediate area of

the Ruttan Mine on the Copper claims are divided into the Mill Pond unit (MPU), the

Mine Sequence unit (MSU), and the Powder Magazine unit (PMU) from north to

south respectively. All units have been subjected to sub-greenschist to amphibolite

facies metamorphism.

The northern section of the MSU consists of a homogeneous sequence of layered,

heterolithic, intermediate volcaniclastic rocks that ranges from 200 to 300 metres in

thickness. These are referred to as the “footwall volcaniclastic rocks”. The middle

section is approximately 75 metres thick and consists of variably altered

volcaniclastic fragmental rocks of dacitic to rhyolitic composition with local exhalite

layers. This section hosts several large lenses of massive sulphide mineralization

which collectively make up the Ruttan deposit. The southern section of the MSU is

up to 100 metres thick and is composed of a distinctive package of light grey to

white, quartz-phyric, rhyolitic volcaniclastic rocks that have a uranium/lead (U/Pb)

age of 1883+/- 2 million years (Ma). Three, or possibly four, periods of deformation

have folded the ore bodies into steeply southeast plunging lenses separated by east-

northeast trending shear zones.

The Ruttan mine is classified as a bimodal-siliciclastic type of volcanogenic massive

sulphide deposit (VMS), similar to those found in the Iberian Pyrite Belt of Portugal

and Spain and in the Bathurst district of New Brunswick, Canada. Deposits of this

type can be located with electromagnetic geophysical surveys and whole rock

geochemical surveys. Wardrop considers that the exploration potential within the

Ruttan claims is above average.

Two near surface zinc- and/or copper-rich opportunities are identified in the historical

database. One opportunity is the upper portion of the West Anomaly Mine which

was developed and partially prepared for mining at the time of closure in 2002.


The second opportunity, known as the north hanging wall zinc zone, is located east-

northeast of the mine. Currently it has no underground access. Drill hole UD5803

returned a weighted average Zn value of 26.18% over 3.86 metres.

In mid-2008, Kria completed an exploration drilling program to evaluate the potential

of these (and other) opportunities. A total of 35 drill holes were completed for a total

of 11,114 metres. An updated resource estimate was developed based these and

historical drill holes.

The Ruttan Project contains areas of historical near-surface unmined resources;

recent drilling by Kria has confirmed the presence of this mineralization. The

exploration potential on the property is considered to be excellent, particularly the

down-plunge extension of the Hanging Wall Zinc Zone.

1 . 1 R E S O U R C E S T A T E M E N T

Table 1.1 shows the resource estimate for the Ruttan project. The highlighted line is

the suggested base case for a deposit in northern Manitoba.

Table 1.1 Inferred Resources for the Ruttan Project at 1% CuEQ Cut-off Base

Case

Solid Names GradesVolume of

Solids (m3)*

Density

(t/m3)

Tonnage

(t)*

Cu

(%)

Zn

(%)

CuEQ07*

(%)

Combined Main

and West

Anomaly Mine

Areas (includes

the HW Zinc

Zone)

>2.0 894,870 3.672 3,285,659 1.90 3.13 2.59

>1.5 2,265,640 3.642 8,252,155 1.50 2.30 2.06

>1.0 4,742,140 3.616 17,148,138 1.23 1.60 1.64

*m3

– cubic metres t – tonnes CuEq – copper equivalent


2 . 0 I N T R O D U C T I O N A N D T E R M S O FR E F E R E N C E

Beartooth is a Canadian registered mining company and publicly listed on the TSX –

Venture Exchange.

Kria is a private Canadian registered base metal exploration and development

company focused on high quality base metal assets including lead, zinc, copper and

nickel in New Brunswick and Manitoba, Canada.

On October 23, 2008, Beartooth and Kria signed an agreement whereby Beartooth

will acquire all of the outstanding common shares of Kria in exchange for common

shares of Beartooth. In effect this is a reverse takeover of Beartooth by Kria where

the merged companies shall be registered under the name of Kria Resources

Incorporated1. It was proposed in the agreement that Beartooth common shares will

be consolidated on the basis of one new common share for every 20 old common

shares.

Beartooth has agreed to issue one post-consolidation common share for each Kria

common share. Each outstanding Kria convertible security will be exercisable for

Beartooth common shares based on the exchange ratio. Upon completion of the

merger Kria shareholders will hold approximately 82.5% of the issued and

outstanding common shares of the combined company. Following completion of the

merger, the Kria board of directors and management team will become the board

and management team of the new combined company (Press Release, Oct 2008).

The Ruttan property is located in northern Manitoba approximately 21 km east of the

Village of Leaf Rapids and about 750 km north-northwest of Winnipeg, Manitoba. All

nine claims are held in good standing by Kria:

Copper 1 to 3 (inclusive) expires on March 18, 2012.

Copper 4 expires on March 19, 2009

Copper 8 to 11 (inclusive) expires on October 22, 2012.

Copper 12 expires on April 10, 2009.

Numerous lenses of base metal massive sulphide mineralization are present on the

property and some of these have been exploited by two previous operators of the

Ruttan mine (Sherritt Gordon and HBM&S). Two areas close to the mining

1For purposes of simplicity, the ownership of the Ruttan Project, except where stated, shall be referred to as

“Kria”.


infrastructure have been drilled by Kria in 2007/2008 to investigate the base metal

potential – these areas were not mined by either of the previous two operators.

Base metal mineralization was discovered by drilling following an airborne

electromagnetic (EM) survey in 1968. Subsequent ground EM and magnetic surveys

were followed-up by diamond drilling in 1968/1969. A drill-indicated resource was

defined in 1969 and the mine-site infrastructure was constructed between 1970 and

1972. Open pit production ran from 1973 to 1980 while underground production ran

from 1979 to 1987. HBM&S purchased the mine from SGM in 1987 and went on to

discover the West Mine in 1988. The mine closed in 2002 due to low base metal

prices.

Wardrop conducted a site visit between August 6 and 8, 2007 to examine the

location, access and physical condition of the Ruttan property. A review of the

available drill core and drill set-ups for the 2007 program was also conducted. In

addition, on-site discussions of practices and procedures were held with the

geologist in charge of the drill program, the in-coming Vice-President of Exploration

and the Vice-President of Operations for Kria.

In 2007, Kria began an exploration program to evaluate the potential of the upper

portions of the West Anomaly and the Hanging Wall Zinc Zone. At the time of writing

Kria has drilled 35 holes for a total of 11,114 metres. Complete assay results for

these holes are scheduled for release in May 2008. A Versatile Time Domain

Electromagnetic (VTEM) survey was flown in April 2008 and borehole EM will be

used to optimise additional drill targets. Various press releases are presented on the

Kria website: (www.kiriaresources.com).

The following list shows the meaning of the abbreviations for technical terms used

throughout the text of this report.

Abbreviation Meaning

AEM Airborne electromagnetic survey

AMAG Airborne magnetic survey

Ag Silver

As Arsenic

Au Gold

cm Centimetre

Cu Copper

ddh Diamond drill hole

EM Electromagnetic survey

g Gram

g/t Grams per tonne

ha Hectare(s)

HBM&S Hudson Bay Mining and Smelting

HLEM Horizontal loop electromagnetic (survey)

IP/RES Induced polarization/resistivity (survey)

km Kilometre(s)


Abbreviation Meaning

L Level

m Metre(s)

Ma Million years

MAG Magnetic survey

mm Millimetre(s)

NI National Instrument

PEM Pulse electromagnetic survey

Pb Lead

ppm Parts per million

PUBCO Public company

SGM Sherritt-Gordon Mines

U/Pb Uranium/lead (age date)

VLF-EM Very low frequency electromagnetic (survey)

VTEM Versatile time-domain electromagnetic (survey)

Zn Zinc

2 . 1 T E R M S O F R E F E R E N C E

Kria has retained Wardrop to prepare a NI 43-101 compliant Technical Report and

Resource Estimate for the former Ruttan property in northern Manitoba.

The address of the corporation is Suite 810, 65 Queen St. W., Toronto, Ont. M5H

2M5. Kria is a private company incorporated under the laws of Ontario and the

Ruttan Mine property is material to the corporation. This report may be used by Kria

to support an application for listing on the Toronto Stock Exchange.

This report is prepared in compliance with the Canadian Securities and

Administrators NI 43-101 under the direct supervision of:

Christopher Moreton, PhD, P.Geo, was formerly a Senior Geologist with Wardrop

Engineering Inc. He directed the review of the data as well as the estimation of the

resources for the Ruttan property. He also visited the property between the dates of

August 6 and 8, 2007 to review the drill sites, drill core and general property layout.

No limitations were put on the author by Kria during the preparation of this report.

Pierre Desautels, P.Geo, was formerly a Senior Geologist with Wardrop

Engineering Inc. He provided technical support as well as critical peer review of the

methods and procedures for this report.

Tim Maunula, P.Geo, is the General Manager for Wardrop Engineering’s Toronto

Mining Office and provided on-going technical support and peer review of the final NI

43-101 compliant report.


Noris Del Bel Belluz, P.Geol. is the Manager of Technical Services for Wardrop

Engineering Inc. He provided on-going geological support and peer review of the

final NI 43-101 compliant report.

In February 2009, this report was revised by:

Paul Daigle, P.Geo., a Senior Geologist with Wardrop and has over 19 years of

progressive experience in evaluating and developing mineral exploration and mining

projects worldwide.


3 . 0 R E L I A N C E O N O T H E R E X P E R T S

In the preparation of this report Wardrop has not relied upon any sources of

information where the author is a non-qualified person with the exception of legal

title.

Land tenure information has been obtained from the Manitoba Industry, Economic

Development and Mines (MIEDM), Mineral Resources Division web site, which

contains a disclaimer as to the veracity of the data. In addition, the existence and

validity of any un-registered agreements between parties are not reflected in the

Manitoba land management system.

Wardrop has relied on two principal sources of information for the data contained in

this report as follows: digital and hardcopy information provided by Kria and a

hardcopy technical report prepared by Harron (2007). Wardrop believes this

information to be accurate.


4 . 0 P R O P E R T Y D E S C R I P T I O N A N DL O C A T I O N

Wardrop has not conducted a title search nor has it verified the legal description of

the property.

The Ruttan project is located approximately 21 kilometres east of the Village of Leaf

Rapids, which in turn is approximately 750 kilometres north-northwest of Winnipeg,

Manitoba (Figure 4.1). The Ruttan property consists of the contiguous un-surveyed

Copper 1 to 4 and 8 to 11 (Figure 4.2) mining claims. All of these claims are located

in NTS quadrangle 64/B/05 within The Pas Mining Division, Manitoba. The nine

claims cover a nominal area of 1,994 hectares and contain the former Ruttan Mine,

tailings ponds, waste rock disposal areas and lands previously occupied by the mine-

mill complex.

The following excerpt is taken from Harron (2007). It explains the issuer’s rights and

obligations for the Ruttan property:

Newdene Gold Inc. entered into an option agreement with W. S. Ferreira Ltd

dated July 31, 2006, for the purpose of acquiring a 100% interest in the Copper

1-4 and the Bill 5025* mining claims. The Copper 8-11 claims were

subsequently added and form part of the option agreement. Terms of the

agreement include aggregate cash payments of $100,000, the issuance of

300,000 common shares of PUBCO, and, at the election of the optionor, either

an additional $750,000 cash or 750,000 common shares of PUBCO. A work

commitment of $1,000,000 before the second anniversary of the agreement, the

granting of a 2% Net Smelter Return Royalty, and the opportunity to acquire 1%

of the Net Smelter Return Royalty for $1,500,000 are additional terms included

in the agreement.

As of January 25, 2007, Newdene sold its rights and obligations in the properties

to Kria. Terms of the transaction include $ 250,000 cash and a 2% Net Smelter

Return Royalty in favour of Newdene. Kria has the right to purchase the entire

Net Smelter Return (NSR) Royalty for $ 2,000,000 cash or common stock at any

time.

To the writer’s knowledge there are no current or pending challenges to the

ownership or title of the lands, as revealed by examining claim abstracts

maintained by the MIEDM, Mineral Resources Division, Winnipeg office.


Figure 4.1 General Location Map (From Harron, 2007)


Figure 4.2 Property Map (from Harron, 2007)


Newdene and W. S. Ferreira Ltd. (claim holders) warrant that the corporation

has not received from any government authority any notice of, or communication

relating to, any actual or alleged breach of any environmental laws, regulations,

policies or permits.

Table 4.1 List of Claims

Name Number Area (ha)Record Date

(yy.mm.dd)

Expiry Date

(yy.mm.dd)Registered Owner

Copper 1 MB6509 214 06.01.18 12.03.18 Kria

Copper 2 MB6510 224 06.01.18 12.03.18 Kria

Copper 3 MB6511 224 06.01.18 12.03.18 Kria

Copper 4 MB6512 256 06.01.18 09.03.19 Kria

Copper 8 MB6908 140 06.08.23 12.10.22 Kria

Copper 9 MB6909 200 06.08.23 12.10.22 Kria

Copper 10 MB6910 256 06.08.23 12.10.22 Kria

Copper 11 MB6911 224 06.08.23 12.10.22 Kria

Copper 12 MB7016 256 07.02.09 09.04.10 Kria

Totals 9 1,994

Source: Government of Manitoba, Department of Science and Technology, Energy and Mines(website)

The following excerpt is also from Harron (2007):

In Manitoba a claim is good for two years after it has been recorded. To

maintain tenure beyond two years the holder is required to perform and report

exploration work. The work requirements are $12.50 per hectare for each year

from year two to year ten, and $25.00 per hectare for year 11 and beyond.

An exploration expenditure of $11,475 is required to be expended on the Copper

1-4 and $10,250 on the Copper 8-11 claims by March 18, 2008 and August 10,

2008 respectively in order to maintain tenure.

In order to produce minerals from a claim, the claim must be converted to a

surveyed mining lease. A claim can be converted to a mineral lease if a

minimum of $625 per hectare of exploration expenditures has been reported

over the life of the claim. The term of a mineral lease is twenty-one years with

an annual rental of $10.50 per hectare. Additional twenty-one year renewals of

mineral leases are available.

A mineral lessee must submit a report on exploration work carried out under the

lease. The report must contain the information required in the regulations and a

certified statement of expenditures incurred in performing exploration work for

each of the following periods:

A. the first five years of the lease;

B. the second five years of the lease;


C. the third five years of the lease;

D. the last six years of the lease.

In respect of surface exploration on the Copper 1-4 and 8-12 claims (Ruttan

Mine site) special conditions and waivers, with regard to safety issues and

provincial government liability, may be imposed.

Underground exploration will require the filing of a closure plan along with a

security deposit. This regulation applies for all advanced stage exploration

projects and mining operations. Closure plans must meet provincial and federal

environmental and workplace health and safety requirements.


5 . 0 A C C E S S I B I L I T Y , C L I M A T E , L O C A LR E S O U R C E S , I N F R A S T R U C T U R E A N DP H Y S I O G R A P H Y

The following information is modified from Harron (2007).

The Ruttan Mine is located approximately 21 kilometres east of the town of Leaf

Rapids in north-western Manitoba. An all-weather gravel road connecting the site to

Leaf Rapids provides easy vehicle access in all seasons (Figure 5.1).

Climatic conditions are typical of the northern boreal forest, with moderately cold

winter conditions from November through March including an average of 0.6 metres

to 2 metres of snowfall. Summer conditions include a moderate amount of

precipitation and warm temperatures in the upper 20 degree Celsius (°C) and low

30°C range persisting for several months. Experience indicates that most

preliminary exploration activities can be executed year round, except geological and

geochemical surveys, which are best executed in the summer months.

Elevations on the properties range from approximately 286 metres to 328 metres

giving a relief of approximately 41 metres. In general, the relief is dominated by

rounded glacially sculpted hills.

Drainage is poorly organized in this area which is typical of the Canadian Shield.

Outcrops are scarce on the claims and the bedrock geology is known mostly from

drill cores, geophysical interpretations and geological surveys.

The property has the sufficient surface rights for future exploration or mining

operations including potential tailings storage areas, potential waste disposal areas,

heap leach pads areas and potential processing plant sites. The closure plan filed by

HBM&S in 2002 has progressed to the point of rehabilitating the roads on the

property. At the time of the 2007 site visit the mine buildings had already been

demolished although the headframe winding house was purchased intact by Kria.

Numerous waste stock piles as well as dried tailings ponds were also observed

during the 2007 site visit.

The numerous lakes in the vicinity of the two properties provide an ample source of

process and potable water. Hydro-electrical power is also available in the area.

Power line towers and wires still extend to the Ruttan Mine site and could be

rehabilitated if required.

The Village of Leaf Rapids is a mining town that supplied labour and services to

support the Ruttan Mine and it maintains an inventory of vacant real estate. The


town is connected by provincially maintained highways to Thompson (220

kilometres), Lynn Lake (100 kilometres) and to the highway network in the southern

part of the province providing access to bulk fuel and general freight. Mining

personnel and supplies can be sourced from either Thompson, the largest mining

town in northern Manitoba, or possibly from Leaf Rapids.

Table 5.1 Location and Access (from Harron, 2007)


6 . 0 H I S T O R Y

6 . 1 C O P P E R C L A I M S

The following is modified from Harron (2007).

The Copper 1 to 4 and 8 to 12 claims cover the location of the historical Ruttan Mine.

The history of exploration, development and ownership is briefly listed in Table 6.1.

Table 6.1 History of the Copper Claims

SGM 1968Hunting-type AEM &

AMAG

Stopped short of Ruttan Mine conductors, AF

91664

MMNR 1968 Questor AEM & AMAGDetected conductors at future Ruttan Mine, AF

91988

SGM 1968 Ground EM & MAGDelineation of Ruttan Mine conductors and a few

DDHs

SGM 196921,030 m diamond

drilling

Discovery, estimated reserve: 46.3 MM tonnes,

1.5% Cu, 1.6% Zn to 600m level (Not NI 43-101

Compliant)

SGM 1970-7261,570m diamond

drilling, bulk sampling

Construction of mine/mill and town of Leaf

Rapids

SGM 1973-80 Open pit production 9,000 tonnes per day

SGM 1979-87 Underground production 5,500 tonnes per day

HBM&S 1987 Purchase of Ruttan Mine

HBM&S 1988 Questor AEM & AMAG Covered whole area

HBM&S 1988Discovery of “West

Mine”Estimated at 8.2 MM tonnes

HBM&S 1994 Spectrem ® Survey Deep AEM over all claims AF 94918

HBM&S 1995-97Ground PEM, HLEM,

MAG, diamond drilling

Follow up of Spectrem anomalies with

geophysics and diamond drilling AF 94917

HBM&S 2002 Closure in July Low metal prices

Note: SGM is Sherritt Gordon Mines Ltd. HBM&S is Hudson Bay Mining and Smelting Ltd. andMMNR is the Manitoba Ministry of Natural Resources.

The Ruttan ore bodies are steeply dipping lenses of massive sulphide mineralization

separated by faults of various orientations. The sulphides outcrop over a distance of

1.5 kilometres and have been tested to a known depth of 1.1 kilometres. The

distribution of the main groups of lenses is presented in Figure 6.1 and a simplified

longitudinal section shown in Figure 6.2.


Figure 6.1 General Location of the Mineralization (form Harron, 2007)


Figure 6.2 Simplified Longitudinal Section (from Harron, 2007)


Underground workings are present in the West Anomaly Mine and Main Mine areas.

In addition, there is an open pit located more or less halfway between the two mine

areas. Both the underground workings and the open pit are flooded. A shaft is

located in the Main Mine area, although ancillary equipment is no longer present.

The Ruttan Mine was operated continually until closure in 2002. HBM&S records

indicate that the total production prior to closure from the Ruttan Mine was

55,175,754 tonnes grading 1.23% copper and 1.41% zinc. This number has not

been validated by Wardrop.

In March 2002 an inventory of reserves was undertaken by HBM&S staff to assist

with forward production planning. This study considered three different categories of

sulphide ore: (a) stopes associated with a positive NSR, (b) stopes associated with a

positive NSR, but deemed to be of high risk such that normal mining costs would

probably not apply, and (c) stopes associated with a negative NSR.

Historical diamond drill hole intersections have returned significant intercept widths

and zinc grades in the hanging wall zinc zone. The zone has been traced from the

175 metre level to the 600 metre level and remains open to depth. According to

Harron (2007), a lack of drill stations in this part of the mine prevented further

delineation of the zone.

On April 7, 2011, Trevali Mining Corp. completed a plan of arrangement with Kria

Resources Ltd. and changed its name to “Trevali Mining Corporation”. Pursuant to

the plan of arrangement, the Company acquired all of the issued and outstanding

common shares of Kria in consideration of 0.2 of Common Share for each common

share of Kria. The acquisition was approved by shareholders on March 30, 2011,

received final court approval on April 6, 2011, and closed effective April 7, 2011.

Following closing, 87,663,745 Common Shares were issued and outstanding, of

which 20,992,250 Common Shares were issued to Kria shareholders (representing

23.95% of the issued and outstanding Common Shares). On June 8, 2011, the

Company filed a business acquisition report, a copy of which is available at

www.SEDAR.com.


7 . 0 G E O L O G I C A L S E T T I N G

The following description of the geological setting is adapted from Harron (2007).

7 . 1 R E G I O N A L G E O L O G Y

The Ruttan deposit is located in the west-central portion of the Paleoproterozoic

Rusty Lake Greenstone Belt (RLGB) within the Lynn Lake-Leaf Rapids Domain on

the northern flank of the Trans-Hudson Orogen (Figure 7.1). The RLGB is 65

kilometres long and up to 35 kilometres wide and lies southeast of the Lynn Lake

Greenstone Belt. The RLGB contains metamorphosed mafic and felsic volcanic

rocks, volcanic-derived sedimentary rocks, and small mafic and felsic sub-volcanic

plutons. All supracrustal rocks have been folded, faulted and subsequently intruded

by larger mafic and felsic plutons. The Baldock Batholith, an assemblage of

paragneiss, orthogneiss and plutonic rocks, completely surrounds the greenstone

belt. The age of the RLGB, as determined by uranium/lead zircon age dating, is

1878 +/- 3 million years (Baldwin et al, 1987).

Contrasts in rock types and apparent stratigraphic discontinuities prompted Baldwin

(1980, 1988) to subdivide the volcanic and sedimentary rocks of the RLGB into four

fault-bounded blocks. The Ruttan deposit on the Copper claims is located in the

northwest portion of the Ruttan Block, which consists mainly of submarine mafic

volcanic and sedimentary rocks.

7 . 2 P R O P E R T Y G E O L O G Y

7.2.1 RUTTAN M IN E (COPPER CLAIM S )

The geology and stratigraphy of the Ruttan Mine area is described in detail by

Speakman et al. (1982), Ames (1996) and Ames and Taylor (1996). From north to

south, the supracrustal rocks in the immediate mine area are divided into the Mill

Pond unit (MPU), Mine Sequence unit (MSU), and the Powder Magazine unit (PMU)

(Figure 7.2).

The MPU consists of allochthonous ocean floor mafic volcanic rocks that are

juxtaposed to the south with the MSU across the northeast-trending Mill Pond Shear

Zone.


Figure 7.1 Regional Geology – Rusty Lake Belt (from Harron, 2007)


Figure 7.2 Geology – Ruttan Mine Area (from Harron, 2007)

Trevali Mining Corp. 23 0787190100-REP-L0001-00Technical Report on the Former Ruttan Mine

The MSU is subdivided into three distinct lithological sections. The northern section

consists of a homogeneous sequence of layered, heterolithic, intermediate

volcaniclastic rocks that ranges in thickness from 200 to 300 metres and is referred

to as the “footwall volcaniclastic rocks”. The middle section of the MSU, which is

approximately 75 metres thick, consists of variably altered volcaniclastic and

fragmental volcanic rocks of dacitic and rhyolitic compositions along with associated

exhalites. This section hosts several large lenses of massive sulphide mineralization

which collectively make up the Ruttan deposit. The southern section of the MSU is

up to 100 metres thick and is composed of a distinctive sequence of light grey to

white, quartz-phyric, rhyolitic volcaniclastic rocks that have a uranium/lead age of

1883+/- 2 million years. Studies by Ames (1996) indicate that the MSU is of a

transitional calc-alkaline to tholeiitic petrochemical affinity.

The units south of the MSU are in contact with a sequence of intercalated

greywacke-mudstones and polymictic conglomerates of the PMU. Controversy

exists as to the nature of the PMU lower contact; it has been variously termed

discordant, conformable or tectonic.

To the west and north of the Ruttan deposit the supracrustal rocks are truncated by

the Brehaut Lake pluton (1852.5+/- 1.2 million years), which consists primarily of

homogeneous, light grey, medium-grained biotite granodiorite. Contact intrusion

breccia zones and dykes emanate from the intrusion.

To the south the supracrustal sequence is intruded by the Corner Lake pluton, which

in the immediate mine area, consists predominantly of dark green, fine-grained

hornblende diorite dykes and sills within the mineralization and its host rocks.

Hydrothermal alteration in proximity to sulphide mineralization is pervasive and

locally intense in the central portion of the MSU. It takes the form of interleaved

lenticular zones of silicification, chloritization and sericitization, commonly referred to

as exhalite and/or “ore equivalent horizon”.

Three principal groups of lenses were defined by HBM&S at the Ruttan deposit

based on their spatial distribution and structural settings: the B lenses, the West

lenses, and the East lenses. Art’s Shear Zone (ASZ) separates the B lenses in the

footwall from the West lenses in the hanging wall, whereas the East Shear Zone

(ESZ) separates the West lenses in the footwall from the East lenses in the hanging

wall. The ASZ and the ESZ are sigmoidal structures that dip toward the southeast at

steep to moderate angles and appear to splay off the hanging wall of the North Wall

Shear Zone (NWSZ). The NWSZ is steeply dipping to the south-southeast and

partially envelopes the B lenses in the West Mine. All shear zones are characterized

by laterally continuous zones of strongly foliated chlorite-biotite schist that range up

to 30 metres in thickness. Asymmetric fabrics in the shear zones indicate dextral

shear with a variable component of normal oblique slip.

The Ruttan lenses are elongated and plunge to the southeast at moderate to steep

angles (Figure 6.2). The long axes of the ore bodies are sub-parallel to mineral and


intersection lineations in the host rocks, the hinges of mesoscopic and macroscopic

isoclinal F2 folds and the β–axis of a late network of anatomized D3 shear zones

suggestive of structural control (Anderson et al, 2005).

In the West Mine the B lens has a strike length of between 350 and 400 metres and

typically it is 10 to 15 metres thick. Over short distances, along strike and down dip,

it varies from 5 to 40 metres thick. This lens does not outcrop and extends from 170

to 1,040 metres below surface, with a general plunge of 55° to 65° to the south-

southeast. The B lens in the Main Mine is laterally continuous at surface with a strike

length of approximately 500 metres and a steep dip to the south-southeast. The lens

is typically 10 to 15 metres thick but locally it varies from 5 to 60 metres over shorter

distances. In the down-dip direction the B lens separates into a series of discrete,

regularly spaced copper-rich ore shoots that plunge steeply to the southeast and

exhibit progressively decreasing strike lengths and thicknesses with depth. Within

the ore shoots, zones of zinc-rich mineralization and large diabase boudins trend at a

slight counter-clockwise angle to the strike of the lens. The deepest ore shoot

ultimately pinches out 370 metres below surface.

The West group of lenses (C, D, E, and F) constitutes a complex ore body bounded

by ASZ in the footwall and ESZ in the hanging wall. At surface the West lenses have

a maximum strike length of approximately 350 metres and contain intervals of

massive sulphides that are up to 75 metres thick. The thickest sulphide

accumulations are along the western termination of the West lenses and define a

prominent copper-rich shoot plunging 55° to 65° to the southeast, and terminating

around 770 metres below surface.

The East group of lenses, which consists mainly of the H, J, K, L, JH, JL and JS

lenses, has a strike length of approximately 600 metres and dips steeply to

moderately to the southeast. These lenses extend from surface for more than 1,000

metres with a general plunge of 55° to 60° to the southeast, and remain open to the

east along strike and down plunge to the southeast. Level plans above the 800

metre level indicate that the East lenses are arranged in a tight, roughly U-shaped

pattern analogous to that of the West lenses, which is interpreted as the D3 hinge

line of an isoclinal synform overturned to the north-northwest. In the fold hinge the J

and K lenses merge to form a copper-rich ore shoot plunging 55° to the southeast

along the western termination of the East lenses to an ultimate depth of 1,050

metres.

Sulphide mineralization in the Ruttan deposits is principally composed of pyrite with

highly variable, though generally subordinate, proportions of pyrrhotite, chalcopyrite,

sphalerite, and minor galena. Common gangue minerals include chlorite, biotite,

quartz, anthophyllite, magnetite, talc, anhydrite, gypsum, calcite and gahnite in order

of decreasing abundance.

Three principal types of sulphide mineralization are recognized in the deposits.

Copper-rich massive sulphide, zinc-rich layered sulphide and copper-rich stringer

sulphide. The copper-rich massive and zinc-rich layered sulphides form the most


significant ore bodies in the deposit. Copper-rich stringer sulphide is particularly well

developed in the immediate footwall rhyolite of the B lens in the West Mine.

In the late stages of mining, the hanging wall zinc zone (HWZ) was discovered. This

new style of mineralization was discovered east of the East lenses on the 265 metre

level of the Main Mine. The zone dips steeply to the southeast and has been traced

down plunge from the 150 metre level to the 600 metre level. The mineralization

consists of an irregular body of high-grade zinc mineralization hosted by epidotized

biotite schist of the PMU. The mineralization is composed of approximately 90%

coarse-grained equigranular sphalerite and 10% combined pyrrhotite, galena, pyrite

and chalcopyrite (in order of decreasing relative abundance). Zinc and silver grades

in this mineralization are an order of magnitude higher than in the Ruttan deposit

(Anderson et al., 2005).


8 . 0 D E P O S I T T Y P E

The following description is modified from Harron (2007).

The Ruttan deposit is a bimodal-siliciclastic type of volcanogenic massive sulphide

deposit, similar to those found in the Iberian Pyrite Belt of Portugal and Spain and in

the Bathurst district of New Brunswick (Barrie and Taylor, 2001). In general,

bimodal-siliciclastic deposits have approximately equal proportions of volcanic and

siliciclastic rocks in the host stratigraphy, with felsic volcanic rocks more abundant

than mafic volcanic rocks. The felsic volcanic rocks are generally calc-alkaline,

whereas the mafic volcanic rocks are generally tholeiitic. The depositional

environment is normally a rifted continental arc.

Electromagnetic geophysical surveys are an efficient technique for discovering these

highly conductive deposits. In the case of the Ruttan deposit magnetic pyrrhotite and

magnetite are minor mineral phases which indicate that a modest magnetic signature

is commonly associated with the electromagnetic signal.

Geochemical trace element analyses are also a method of defining favourable host

rocks. Results of 200 whole rock analyses summarized by Speakman et al (1982)

demonstrate that a pervasive alteration zone extends stratigraphically below and

laterally away from the deposit. The footwall volcaniclastic rocks are depleted in

sodium oxide (Na2O), potassium oxide (K2O) and calcium oxide (CaO), and enriched

in iron (II) oxide (FeO) and, to a lesser extent, magnesium oxide (MgO) toward the

deposit. However, within 200 metres of the deposit there is a sharp increase in MgO

and decreases in CaO and Na2O.

Interpretation of rare earth element data suggests that positive europium (Eu)

anomalies are associated with zinc-rich VMS deposits. The observed patterns are

the result of Eu leached by hydrothermal fluids from the footwall rocks (creating

negative Eu anomalies) and deposited together with other constituents in the

associated exhalative rocks, “ore equivalent horizons” and sulphide deposits. These

positive Eu anomalies extend up to one kilometre east of the Ruttan deposits along

the same exhalative horizon. Negative Eu anomalies are common in exhalites at

locations distal to sulphide deposits, which have not been hydrothermally altered

(Gale et al, 2002).


9 . 0 M I N E R A L I Z A T I O N

Multiple mineralized zones are present on the Ruttan property. These zones, which

are dated at about 1,878 Ma, generally occur at the top of a felsic volcanic rock

sequence that overlies dacites, andesites and basaltic units. Mafic to intermediate

epiclastic units overlie the mineralized zones.

Three massive sulphide bodies have been defined and these are known as the Main

Mine, West Lenses and the West Anomaly. In general, each of these sulphide

bodies consists of several lenses of massive to disseminated sulphide mineralization.

Typically, the lenses are upright with dips ranging from 50° to 80° to the south. They

vary in thickness from 4 to 50 metres with a strike length of 2,000 metres and a

down-dip length of about 1,050 metres. Isoclinal folding and associated shear zones

disrupt the original primary layering of the sulphides. Locally, however, the typical

volcanogenic massive sulphide mineral sequence is present: disseminated to

stringer pyrite, pyrrhotite and chalcopyrite within a chloritic host rock is overlain by

massive pyrite with subordinate pyrrhotite, sphalerite, chalcopyrite, magnetite,

quartz, anhydrite and calcite. Chalcopyrite and sphalerite are the ore minerals.


1 0 . 0 E X P L O R A T I O N

1 0 . 1 D R I L L I N G 2 0 0 7

Ten holes (R0701 to R0709 inclusive, including one re-start) were drilled by Kria in

2007 to test the upper portions of the West Anomaly and Main Mine area (Table

10.1). These holes were spotted by Karl Albert (consulting geologist) using

engineering grid coordinates defined by Steve Davies of Kria.

Holes R0701 to R0704 tested the upper portion of the West Anomaly Zone (for a

cumulative meterage of 916 metres) while the remaining six holes (including one re-

start) were drilled in the vicinity of the Hanging Wall Zinc Zone (for a cumulative

meterage of 1,505 metres). The coordinates for each hole were confirmed using a

total station surveying tool after the drill rig had been moved off the collar.

All four holes on the West Anomaly intersected multiple zones of base metal

mineralization. Table 10.2 is a summary of the better values reported in a press

release dated October 30, 2007.

Kria also drilled five holes on the Hanging Wall Zinc Zone. Some of the results are

shown in Table 10.3 (taken from a press release dated January 10, 2008).

Borehole EM surveys were carried out on four of the holes to test for down-plunge

extensions of the Hanging Wall Zinc Zone as well as the up-dip portion of the Main

Zone. To date, no results have been released for these surveys.


Table 10.1 Kria 2007 Drill Hole Coordinates (Local Grid)

Engineering Grid Geology Grid Bearing Dip Depth

Hole ID Northing Easting Elevation Lat (mN) Dep (ft) Elevation (° Az) ( ° ) (m)

RO701 2900.825 14594.029 1540.041 -204.3 00+0.2E 1540.041 339 -73.5 295.0

RO702 2912.098 14638.258 1544.281 -208.9 1+50E 1544.281 339 -60.0 239.9

RO703 2871.585 14700.343 1545.364 -268.3 2+95E 1545.364 339 -50.0 279.9

RO704 2962.059 14717.230 1540.002 -188.9 4+49.2E 1540.002 339 -59.7 209.4

RO705 3168.289 16150.439 1534.804 -485.2 51+00E 1534.804 346.1 -54.4 312.4

RO706 3176.105 16164.296 1535.079 -482.6 51+50E 1535.079 345.6 -50.0 300.5

RO707 3175.573 16164.126 1535.185 -483.1 51+50E 1535.185 338.4 -60.4 -

RO707A 3175.620 16164.431 1535.158 -483.1 51+50E 1535.185 338.4 -60.4 327.7

RO708 3176.182 16180.473 1535.018 -488.2 52+00E 1535.018 343.7 -50.4 269.8

RO709 3220.021 16180.662 1534.489 -446.9 52+50E 1534.489 338.4 -64.5 294.7

2,529.3

Table 10.2 Significant Values from the 2007 West Anomaly Drilling

Hole Number Area Core Length (m) Copper (%) Zinc (%)

R0701 West Anomaly 10.16 0.64 5.04

R0702 West Anomaly 4.08 0.43 7.07

R0703 West Anomaly 27.40 0.53 4.24

R0704 West Anomaly 9.05 1.01 4.63

Table 10.3 Significant Values from the 2007 Hanging Wall Zinc Zone Drilling


R0707A Hanging Wall Zinc 11.25 0.18 7.43

Including 3.3 0.24 15.85

R0707A Hanging Wall Zinc 3.02 0.05 6.00

R0709 Hanging Wall Zinc 0.98 0.05 1.04


1 0 . 2 D R I L L I N G , 2 0 0 7 - 2 0 0 8

The Winter 2007/08 Program consisted of 21 drill holes and the deepening of two

previously drilled holes (R0708 and R0709) for a total of 7.146.7 metres. Eighteen

drill holes targeted the West Anomaly, while the remaining three drill holes and the

two deepened holes targeted the Hanging Wall Zinc Zone.

Drill hole locations were spotted using a total station surveying tool, then upon

completion of the drilling, the coordinates for each hole were confirmed using the

total station surveying tool.

Drill holes R0710 to R0727 as well as R0805 and R0806 tested the upper portion of

the West Anomaly Zone (a total of 4,754 metres) while the remaining three holes and

two deepened holes were drilled in the vicinity of the Hanging Wall Zinc Zone (for a

total of 1,828 m). The coordinates for each hole were confirmed using a total station

surveying tool after the drill rig had been moved off the collar.

After completion of the drill program, a down hole EM geophysical survey was

carried out in six holes, three each on the Hanging Wall Zinc Zone and the West

Anomaly. Results have not been released. Table 10.4 lists the drill holes and collar

locations.

Significant assay results from selected drill holes are listed in Table 10.5.


Table 10.4 Drill Hole Coordinates form the 2007-2008 Winter Drilling Program

Hole ID

UTM (Nad 27) Geology Grid Bearing Dip Depth

Northing EastingElevation

(m)Lat (mN) Dep (ft)

Elevation

(m)(° Az) (°) (m)

R0710 6258767.5 460087.5 303.9 -169.5 0+50E 1542.8 340 -60 301.2

R0711 6258679.1 460091.4 308.0 -252.0 0+51W 1546.9 340 -60 303.9

R0712 6258836.6 460140.7 301.1 -126.4 2+99E 1540.0 340 -60 125.0

R0713 6258787.9 460108.3 303.2 -158.8 1+39E 1542.1 340 -55 200.0

R0714 6258858.9 460007.7 291.7 -54.3 0+75W 1530.6 340 -55 199.9

R0715 6258665.3 460047.9 306.7 -248.3 2+00W 1545.6 340 -55 299.5

R0716 6258420.7 460053.0 305.5 -475.6 4+97W 1544.4 340 -65 550.5

R0717 6258373.6 459940.3 304.2 -475.1 8+97W 1543.1 340 -65 550.5

R0718 6258811.4 460056.1 298.4 -116.7 0+11E 1537.3 340 -55 197.5

R0719 6258726.9 460035.5 302.3 -153.6 1+11W 1541.2 340 -55 200.6

R0721 6258721.5 460041.8 301.3 -194.0 1+56W 1540.2 340 -55 221.9

R0722 6258735.0 460007.6 300.5 -168.5 2+32W 1539.4 340 -55 221.9

R0723 6258680.0 460028.4 307.8 -227.2 2+40W 1546.7 340 -55 228.0

R0724 6258681.4 460047.0 309.9 -233.1 1+82W 1548.8 340 -65 230.4

R0725 6258651.9 460038.7 306.7 -257.1 2+45W 1545.6 340 -65 350.5

R0727 6258813.7 460125.4 302.0 -141.7 2+23E 1540.9 340 -45 199.5

R0708D 6259084.3 461657.8 296.1 -488.2 52+00E 1535.0 343.7 -50.4 *474.3

R0709D 6259128.1 461655.8 295.6 -446.9 52+50E 1534.5 338.4 -64.5 *425.5

R0801A 6259036.7 461639.5 296.2 -524.0 50+81E 1535.1 340 -55 500.2

R0802 6259032.5 461668.5 297.1 -540.0 51+62E 1534.8 340 -55 502.3

R0803 6259042.8 461718.1 296.7 -549.8 53+25E 1534.2 340 -53 490.1

R0805 6258834.3 460175.6 301.0 -142.2 4+1E 1539.9 335 -63 173.1

R0806 6258828.6 460208.3 300.5 -160.3 4+93E 1539.4 335 -63 200.6

7146.7

*Deepened holes (see Table 10.1).


Table 10.5 Significant Results of the 2007/08 Winter Drill Program


R0708D HW Zinc 9.31 0.04 1.12

R0710 West Anomaly1.47

2.00

0.20

0.38

4.21

2.44


6.65

0.35

0.73

2.58

5.71

R0712 West Anomaly 19.10 0.41 6.16


2.00

1.09

0.34

4.96

6.98


0.50

0.63

0.33

2.56

3.39

R0724 West Anomaly 7.70 0.13 2.81

R0727 West Anomaly 16.00 0.36 5.60

R0801A HW Zinc9.90

3.90

0.17

0.12

3.39

5.81

R0806 West Anomaly

3.00

7.00

4.70

0.64

1.40

0.29

5.28

2.62

2.77

1 0 . 3 D R I L L I N G , 2 0 0 8

The drill program conducted during the summer of 2008 consisted of five holes, one

of which was a re-start, for a total of 1,437.7 metres. Targets were VTEM anomalies

in close proximity to the historic Ruttan Mine. All holes failed to intersect significant

mineralization and the anomalies are thought to be caused by cultural affects.

Collars were spotted and located after completion of drilling with a hand held GPS

device (Garmin 60 CSx). The drill hole coordinates are listed in Table 10.6.

Table 10.6 Kria 2008 Summer Drill Hole Coordinates

Hole IDUTM (Nad 83 Zone 14N)

Bearing (°Az) Dip (°) Depth (m)Easting Northing Elevation (m)

R0807 460088 6259793 300.9 347.9 -58.1 102.7

R0808 460108 6259667 302.2 347.8 -60.0 102.7

R0809 460153 6259565 301.7 338.7 -47.5 401.4

R0812 461255 6258350 311.5 344.6 -45.5 503.8

R0812A 461255 6258350 311.5 344.8 -44.5 327.1

1,437.7

The drill hole location map for all Kria’s drill programs may be found in Figure 10.1.


1 0 . 4 G E O P H Y S I C S , 2 0 0 8

In April 2008, Geotech Inc. was contracted to fly Versatile Time Domain

Electromagnetic (VTEM) Geophysical Survey over the Property. A total 0f 1,723 line

km flown along flight lines oriented at N160°E and at 100 metre spacings. Tie lines

were flown every 1,000 m in a N070°E direction. At the time of writing this report,

processing and interpretation of the geophysical data was ongoing.

1 0 . 5 E X P L O R A T I O N E X P E N D I T U R E S , 2 0 0 7 - 2 0 0 8

To date, Kria has completed over $4,330,000 of exploration expenditures on the

former Ruttan Mine. A detailed list of the exploration expenditures in 2007 and 2008

are listed in Table 10.7 below.

Table 10.7 Kria 2007 and 2008 Exploration Expenditures

Year2007

($Cdn)

2008

($Cdn)

Total

($Cdn)

Acquisition and property costs 329,237 303,763 633,000

Exploration Expenditures

Field equipment 11,855 49,111 60,966

Drilling 1,137,243 1,201,884 2,339,127

Wages and salaries 383,738 532,295 916,033

Geological surveys 48,239 403,449 451,688

Travel, transportation and freight 27,409 41,608 69,017

Field consumables 179,595 259,293 438,888

Field office support 27,224 29,537 56,761

Total Exploration Expenditures 1,815,303 2,517,177 4,332,480

TOTAL DEFERRED COSTS $2,144,540 $2,820,940 $4,965,480

$Cdn – Canadian Dollars

Source: Kria Resources Inc.


Figure 10.1 Drill Hole Location Map, Kria Drill Programs 2007-2008


1 1 . 0 D R I L L I N G

Historically, diamond drill holes were sited on the hanging wall side of

electromagnetic conductors and drilled a few metres past the conductor. Lateral

spacing between drill holes varied according to field conditions, but generally the

plan was to intersect the conductors at 200-foot (60 metre) intervals. Diamond

drilling in the late 1960s and 1970s was mainly BQ and AX core size. HBM&S

continued the practice of using BQ size core on surface and AX size underground.

Records indicate that surface and underground core was logged by company

employees in a formal core handling facility located at the mine site. Upon receipt of

the core from the drill contractor, the footage markers were checked for proper

location and were also used to estimate core loss (if any). After logging the core, the

geologist marked the sample intervals on the core and provided appropriate sample

tags and documentation for each interval to be sampled (from the same side of a

splitting line). Sample intervals generally ranged from 0.3 metres to 1.5 metres and

accommodated changes in lithologies and the length of the mineralized sections.

Diamond drill logs were principally recorded on paper media when SGM ran the mine

while digital logs were generated by HBM&S. In both cases the logs contained

detailed descriptions of the lithologies, alteration assemblages, structural data, and

mineralization as well as borehole trajectory surveys. However, in either case the

hard copy drill hole data was not available for review by Wardrop.

The sulphide-rich lenses are upright with dips ranging from 50° to 80° to the south.

They vary in thickness from 4 to 50 metres with a strike length of 2000m and a down-

dip length of about 1,050 metres. The mineralization is intersected at different

altitudes because of the use of fan drilling underground and surface drilling with

varying head azimuths and dips. Consequently, true widths for the mineralization

have to be calculated on a hole by hole basis. Drilling was conducted on a regular

grid down to 15 metre drill hole spacing and several core samples were collected

where the drill hole intersected the mineralized zones.


1 2 . 0 S A M P L I N G M E T H O D A N D A P P R O A C H

Kria collected samples from the 35 holes drilled in 2007 and 2008. The following

description (based upon a document supplied by Kria) documents the method of

sampling.

The geologist logs the core and prepares it for sampling - the core is marked in

red grease pencil with a sample number, a core cutting line along the core axis

and a sample interval denoted by red arrows at both ends of the sample interval.

The geologist keeps sample books and a sample summary sheet for each drill

hole.

Nominal sample lengths are one metre.

The sample intervals and related information are provided to Kria in the form of a

summary list for each hole, the latter providing the sample numbers, from, to,

width (metres) and a description.

Similar sample information is also recorded in the sample books provided by TSL

Laboratories/ALS Laboratories Group. In particular, the information consists of

the date, drill hole number, sample description, from, to, remarks and the

geologist’s name.

A check is made to ensure that all the data from the sample books matches the

sample summary sheets.

After this has been done the sample interval is checked against the core in each

box and then checked for sample number, drill hole number, from, to and width.

Next, one of the three tear-off sample interval tags is placed into a plastic bag.

The core is then broken to begin the sample interval (if it is not already broken).

For drill holes R0701 to R0709, each core box with samples was boxed shut and

transported to Snow Lake, MB by Stephen Davies. A core-cutting facility is

available in this mining town.

For the 2007/2008 winter drill program, Kria purchased a core saw which was set

up in Leaf Rapids core logging facility and operated by local trained personnel.

The core is then sawn into two halves along the red line using a diamond core

blade. Each sub-section of core is approximately six inches in length.

After the core is sawn in half it is placed in the sample bag with a sample tag. A

check is made to confirm that the sample is being placed into the correct sample

bag. The other half of the core is placed back into the core box and aligned in

the original orientation as laid out in the core box.


The entire sample interval is cut and continually checked to ensure the correct

sample is placed into the correct sample bag.

Once the complete sample is cut the sample bag is sealed and placed into rice

bags for shipping by Gardwine North.

At all times the samples are under the direct care and supervision of Stephen

Davies, P.Eng. or M. Dayle Rusk, P Geo. up to, and including, placing the

samples on the truck. Stephen Davies P.Eng. is an officer of Kria with the title VP

Operations and Chief Operating Officer. M. Dayle Rusk P.Geo is VP Exploration

for Kria.

Wardrop observed some of this sampling protocol during the site visit. In addition, it

was observed by Wardrop that the sample intervals were tied to lithological contacts

wherever practicable. Within the mineralized zones there did not appear to be any

recovery issues. Wardrop recommends that a sample tag is stapled into the core

box at the appropriate location as a record of the sampling program.

The bulk of the information in the database is derived from samples collected by staff

members of different mining companies. There is no current documentation of their

sampling.


1 3 . 0 S A M P L E P R E P A R A T I O N , A N A L Y S E S ,A N D S E C U R I T Y

There is no available documentation on the preparation, analysis and security of

samples collected at the mine site prior to the involvement of Kria. However,

discussions with former employees of the Ruttan Mine, as well as a review of

summary reports, indicate that a protocol was followed. A summary of this protocol

is given below (modified from Harron, 2007).

Sample preparation was completed by company employees at the mine site. During

the production period of the mine the sample preparation area and separate assay

laboratory were located within a fenced off area.

Split core samples were prepared and analyzed either by SGM personnel (pre-1987)

or HBM&S personnel (post-1987). After the samples were logged, the split drill core

was crushed in its entirety at the on-site laboratory to 70% passing two millimetres.

From these coarse rejects a sub-sample of 200 to 250 grams was split and

pulverized to 80% passing 75 microns. From each pulp a 100 gram sub-sample was

split for assay. The remainder of the pulp (nominally 100 to 150 grams) and the

rejects were archived on site for future reference. There is no record of these coarse

rejects/pulps and their current location is unknown.

The base metals of interest (copper and zinc), plus silver, lead, iron and gold, were

determined using a 0.25 gram aliquot that was subjected to an aqua-regia digestion

followed by analysis using atomic absorption spectrometry.

The upper limit for the base metals determined by this method is one percent.

Samples showing higher values were re-assayed using a 0.4 gram aliquot and a

finish by atomic absorption spectroscopy. The upper limit for the precious metals is

one part per million for each of silver and gold.

The quality assurance/quality control (QA/QC) program of Kria (2007/2008 drilling)

inserted both blanks and certified reference materials in the sample stream. No

sample duplicates were taken. Blank samples were inserted every 40th sample while

commercially available reference materials were inserted every 20th sample. The

latter were chosen to represent a range of grade values appropriate for the

mineralization being sampled.

During the summer 2007 drill program (R0701 to R0709) Kria submitted all

exploration samples to TSL Laboratories in Saskatoon, Saskatchewan (an ISO/IEC

17025 accredited laboratory). All of the samples were crushed, pulverized and

analysed by TSL. A multi-acid digestion was used followed by either Inductively


Coupled Plasma Atomic Emission Spectrometry (ICP/AES) or Atomic Absorption

Spectrometry (AAS).

During the winter 2007-2008 drill program, samples were submitted to the ALS

Laboratory Group preparation laboratory in Thunder Bay, Ontario where the samples

were dried, crushed, and pulverized. Pulps were then couriered to the ALS North

Vancouver laboratory (an ISO/IEC 17025 accredited laboratory) for analysis. Gold

was analysed by fire assay, with either an AAS or AES (atomic emission

spectroscopy) finish. Other metals were determined by HF-HNO3-HCI04 acid

digestion, hydrochloric acid (HCl) leach and ICP-AES finish.


1 4 . 0 D A T A V E R I F I C A T I O N

During mine operation, standard samples were inserted into the sample stream at

approximately 1 in 20 samples and batches exceeding a two standard deviation limit

were re-analyzed. It is not known how many samples were submitted to an

independent laboratory for check assaying. Wardrop was unable to verify any of this

information.

For the 2007/2008 drilling program Kria inserted blank samples every 40th sample

and commercially available reference materials every 20th sample; this technique

monitors contamination and accuracy. No duplicate samples were used to assess

precision issues.

Hard copy versions of the Ruttan Mine (pre-Kria) database records were not

available for examination. According to Harron (2007), HBM&S collected digital data

while most of the records collected by SGM were on paper only.

Check samples from Kria’s drilling were collected by Wardrop in August 2007 and

submitted to Activation Laboratories in Ancaster, Ontario (an ISO/IEC 17025

accredited laboratory). The Wardrop samples were analysed using a sodium

peroxide fusion followed by acid dissolution and ICP/OES.

Table 14.1 displays the results for these samples along with the equivalent results

from TSL Laboratories, Saskatoon, Saskatchewan for the same core.

The values in Table 14.1 indicate that base metal mineralization is present in the

selected samples. Sample variability between the two batches may be due to

heterogeneity in the mineralization or differences between the two analytical

techniques (amongst other things). Nevertheless, Wardrop is satisfied that there are

significant grades of base metal mineralization within the Kria West Anomaly portion

of the Ruttan property (from where the samples were taken).


Table 14.1 Check Sample Results from the 2007 Drilling Program

Wardrop Check SamplesActivation Labs, Ancaster, Ontario

Au Ag Cu Fe Pb Zn

Unit Symbol g/tonne g/tonne % % % %

Detection Limit 0.03 3 0.005 0.05 0.01 0.01

Analysis Method FA-GRA FA-GRA FUS-Na2O2 FUS-Na2O2 FUS-Na2O2 FUS-Na2O2

W121135 < 0.03 11 0.125 7.02 0.32 0.06

W121136 < 0.03 < 3 0.199 36.5 0.01 7.88

W121137 < 0.03 < 3 0.109 36.4 0.01 7.49

Original Kria DataTSL Laboratories, Saskatoon, Saskatchewan

Au Ag Cu Fe Pb Zn

121135 0.0714 6 0.145 5.4 0.12496 0.3012

121136 0.0467 2.2 0.132 35.33 0.00764 7.39

121137 0.0243 2.2 0.102 39.93 0.00971 5.14


1 5 . 0 A D J A C E N T P R O P E R T I E S

There are no adjacent properties in this part of Manitoba. However, Barrie and

Taylor (2001) provide commentary on worldwide analogs, suggesting that this is a

normal VMS deposit similar to those in the Iberian Pyrite Belt.


1 6 . 0 M I N E R A L P R O C E S S I N G A N DM E T A L L U R G I C A L T E S T I N G

Kria has not completed any metallurgical testing of samples taken from either of the

exploration targets drilled in 2007/2008.


1 7 . 0 M I N E R A L R E S O U R C E A N D M I N E R A LR E S E R V E E S T I M A T E S

1 7 . 1 I N T R O D U C T I O N

This section was previously prepared for Kria and is included in document

# 0787190100-REP-L0001-03.

Wardrop has estimated an NI 43-101 compliant resource for the Ruttan deposit. The

bounding coordinates for the project are shown in Table 17.1. These coordinates

correspond to the block centroids (of the mine grid) provided by Kria.

Table 17.1 Block Centroid Coordinates for the Ruttan Project

Minimum Maximum

Easting -155.0 2005.0

Northing -802.5 102.5

Elevation 195.0 1555.0

17.1.1 DAT ABASE

Kria supplied all of the digital data for the resource estimate. This data is metric and

comes from the final HBM&S MineSite database at the time of mine closure (2002).

The data was imported into Gemcom GEMS 6.04 Resource Evaluation Edition

software package.

The drill hole dataset included the header files, survey files and assay files for all

underground and surface holes at Ruttan. No lithology files were supplied. Wardrop

created a table for composited intervals (called the COMP_FINAL table) as well as a

table to capture the length of mineralization within each solid (the SOLIDCOMBO

table). Table 17.2 summarises the drilling data records supplied to Wardrop. This

table also shows the holes used by Wardrop for the resource estimate. There were

24 regional exploration holes that were not used in the resource estimate as these

drill holes do not form part of the mineralized deposit.

Manual checks on the database were made to remove any obvious errors prior to

statistical treatments (such as negative values). However, some other issues, such

as unusual sample lengths, could not be validated since the hard copy data was

unavailable.


The data supplied covers all of the lenses of mineralization within the Ruttan mine.

Recent drill holes from the 2007/2008 drill program (32 holes) are also included in

the dataset.

Table 17.2 Summary of the Drilling Data Records

Deposit Drill HolesCollar

Readings

Survey

Readings

Assay

Entries

All Holes in Dataset 5,866 5,866 54,899 296,681

Holes used for Estimate 5,842 5,842 54,431 295,154

Regional Holes not Used 24 Holes lie outside the block centroid coordinates

Assay Readings used by Wardrop (greater than zero)

Cu Zn Fe Pb

215,999 207,316 218,974 2,003

17.1.2 SPEC IF IC GR AVITY

When HBM&S operated the Ruttan Mine the specific gravity was calculated, rather

than interpolated, from assay values (Maunula, 1997). The formula used is given in

Table 17.3.

Table 17.3 HBM&S Specific Gravity Formula

SG = 1/Tonnage Factor

Tonnage Factor (m3

/tonne) = 0.3623 – (0.0031*(CU/5+ZN/2+FE))

The formula is derived from a linear regression curve fitted to experimental data (in-

house specific gravity and assay values) collected for 175 lower mine drilling

samples (Lantz, 1985). Specifically, the area of the mine studied is the east ore lens

at the 800 metre level. In this formula, the Cu, Zn and Fe attributes (in %) are known

as the Total Sulphide components and the denominators are derived from

‘mineralogical data and basic assumptions at the Ruttan Mine’ (Lantz, 1985).

For this report and the resource estimate Wardrop has interpolated the specific

gravity for each block in the block model based on the above formula.

1 7 . 2 E X P L O R A T O R Y D A T A A N A L Y S I S

Exploratory Data Analysis is the application of various statistical tools to elucidate the

characteristics of the data set. In this case, the objective is to understand the

population distribution of the grade elements through the use of such tools as

histograms, descriptive statistics and probability plots. The following discussion

applies to copper and zinc only since these are the key elements at Ruttan.


17.2.1 RAW ASSAYS

Raw assay statistics are shown in Table 17.4. Only those values greater than zero

were used in the statistical analysis.

Table 17.4 Raw Assay Statistics for the Complete Dataset (Excluding Regional

Holes)

Minimum Maximum Average Standard Deviation Variance Count

Cu (%) 0.001 26.30 0.68 1.22 1.49 215,999

Zn (%) 0.001 47.85 0.70 2.39 5.69 207,316

Fe (%) 0.1 74.00 16.76 14.12 199.3 218,974

Pb (%) 0.01 28.40 0.13 0.80 0.65 2,003

Frequency and cumulative probability plots for both Cu (%) and Zn (%) are shown in

Figures 17.1 and 17.2.

17.2.2 CAPPIN G

Two methods are used to assess the need for capping:

Cumulative frequency plots.

Decile analysis.

Examples of the cumulative frequency plots for the raw uncapped data are given in

Figures 17.1 and 17.2. With large datasets the cumulative frequency plots do not

always produce clear-cut values for capping levels. Instead, decile analysis can be

used to assist with setting capping levels. Table 17.5 shows the capping levels and

the number of capped samples for the complete dataset. A decile-percentile plot for

zinc within the complete dataset is shown in Figure 17.3.

Table 17.5 Capping Levels for the Complete Dataset (Excluding Regional

Holes)

Element Capping Level Values Capped Values Uncapped (>0%) Percent Capped

Cu (%) 5.9 2162 214,256 1.02

Zn (%) 11.75 2189 205,574 1.07

HBM&S did not cap any of the assay data used in their resource estimates (Maunula,

1997) even though capping appears to be appropriate.


Figure 17.1 Copper Assays (%) for the Complete Dataset (Excluding Regional

Holes)


Figure 17.2 Zinc Assays (%) for the Complete Dataset (Excluding Regional

Holes)


Figure 17.3 Decile-Percentile Data for Zinc within the Complete Dataset

(Excluding Regional Holes)

17.2.3 COMPOSIT ES

Table 17.6 shows the statistics for the copper assay sample lengths for the Kria

dataset (excluding the regional holes).

Table 17.6 Raw Assay Sample Length Statistics (Excluding Regional Holes)

Minimum Maximum AverageStandard

DeviationVariance Count

Length (m) 0.01 107.87 1.63 0.84 0.70 216,418

The average length for copper (and zinc) sample assays is 1.63 metres; this value

more or less corresponds to the length used by HBM&S (1.75 metres). A composite

interval of 1.75 metres has been used for the Ruttan dataset to remain consistent

with the HBM&S method.

The number of copper and zinc composite samples (capped) within the solids is

given in Table 17.7 while a statistical summary is given in Table 17.8. The minimum

remnant composite length used is 0.2 metres; this is the same as that used by

HBM&S when the Ruttan Mine was in operation. An analysis of the 1,060 remnant

samples shows that there are 267 samples (0.41% of the total) with Cu > 1% and

190 samples (0.29% of the total) with Zn >1%. When these samples are weighted

against their lengths there are only 18 Cu (0.03% of the total) and 63 Zn (0.10%)

samples with values greater than 0.5%. When these remnants are plotted with the


solids in 3-D space they appear to be scattered rather than concentrated at a

particular contact. Leaving out these remnants will not bias the resource estimate

and will ensure that smaller, less representative samples will not be included in the

interpolation.

Table 17.7 Composite Capped Samples

Cu % Zn %

Number of samples 64,742 64,742

Number of composite samples less than 0.2 m 1,060 1,060

Samples used for block modelling 63,682 63,682

Table 17.8 Statistical Summary of all Composites (Values>0)

Copper Capped

Minimum Maximum Average Mode Median Std Dev Variance Count

0.00047 5.9 1.22 5.9 0.93 1.14 1.30 63,428

Zinc Capped

Minimum Maximum Average Mode Median Std Dev Variance Count

0.00003 11.75 1.12 0.01 0.11 2.16 4.65 62,998

Histogram and cumulative probability plots for both Cu and Zn (no zeros) are shown

in Figures 17.4 and 17.5. Note that both graphs flatten out at the capping level.

Within the database there are samples that have no entries for certain elements

(77,213 Cu, 77,223 Zn, 77,204 Fe and 294,567 Pb). These are treated as zero

entries and have not been included in the statistical reports. Composites with zero

grade were used for interpolation. There are no samples with ‘below detection limit’

entries although there were some entries with negative values. These have been

transformed into zeroes and are treated the same as the no entry values.


Figure 17.4 Histogram and Cumulative Probability Plot for Copper


Figure 17.5 Histogram and Cumulative Probability Plot for Zinc


1 7 . 3 G E O L O G I C A L I N T E R P R E T A T I O N

Kria supplied the 3-D rings for the geological interpretation. These rings were

divided into the following three groups:

3-D rings for the base metal mineralization.

3-D rings for internal waste-rock areas.

3-D rings for the mined-out stopes.

Kria supplied the 3-D rings as a series of 10 metre plan-views in DXF format and

Wardrop imported them into Gemcom and validated. The base metal mineralization

rings used a 1% CuEQ cut-off value (as created by HBM&S at the time of mine

closure in 2002).

Twelve geological solids (Table 17.9) were created by extruding the 3-D rings 4.99

metres on either side of the plan section line. This distance was chosen to minimise

the solid validation errors. Two solids (WA1 and MM7) contained minor edge count

and triangulation errors which were deemed insignificant. The mined-out stopes and

internal waste solids were created in the same way and checked for errors. No

significant errors were present.

Table 17.9 Solids Names and Explanation

Rock Code Solid Names Legend

10 WASTE Internal waste

99 EXT_WAS External waste

110 WA110 West Anomaly




210 MM210 Main Mine

220 MM220 Main Mine

230 MM230 Main Mine

240 MM240 Main Mine

250 MM250 Main Mine

260 MM260 Main Mine

270 MM270 Main Mine

280 MM280 Main Mine

Creating a solid by extruding on either side of the plane creates multiple consecutive

intervals as each drill hole passes through different (but adjacent) solids. These

multiple intervals were combined to create one interval for each hole intersecting a

solid (copied to a GEMS table called SOLIDCOMBO). Composite intervals were

created for these intervals within each of the 12 geology solids.


Figure 17.6 is a perspective view of the multiple solids used for the resource estimate

looking towards the northeast. The solid in dark blue (closest to the viewer) is

WA110, the purple solid is MM280 (middle area) while the burgundy solid is MM270

(furthest away from the viewer). Two other solids were also created (WA_ALL and

MM_ALL).

1 7 . 4 S P A T I A L A N A L Y S I S

HBM&S ran 3-D variography (within MedSystems) on all datasets when the Ruttan

Mine was in operation. In total, 35 variograms were run for different portions of the

mine and independent checks were made to confirm the variography results

(Maunula, 1997). Wardrop believes that the process followed by HBM&S was

thorough and did not need to be repeated. Consequently, the HBM&S parameters

were used by Wardrop to create the current resource estimate.

The search ellipse parameters used for this resource estimate are shown in Figure

17.7.

1 7 . 5 B L O C K M O D E L

A single block model was created to encompass all of the deposits at the former

Ruttan Mine. Table 17.10 shows the GEMS coordinates for this block model. This is

because the Kria coordinates are block centroids and the GEMS coordinates use

block vertices.

Table 17.10 GEMS Block Model Limits (Edge to Edge)

Minimum Maximum

Easting -160 2005.0

Northing -805 102.5

Elevation 1560 1555.0

17.5.1 BLOCK MOD EL S IZ E

The block size used for this report mimics the size used by HBM&S when the mine

was in operation. Table 17.11 shows the block dimensions while Figure 17.8 displays

a screen capture of the block model folders used in GEMS for this project.

Table 17.11 Block Sizes

Easting Northing Elevation

Block Sizes (m) 10 5 10


Figure 17.6 Three-Dimensional View of the Solids Used for the Resource Model


Figure 17.7 Search Ellipse Parameters


Figure 17.8 Block Model Set-Up in GEMS

17.5.2 INTER POLATION PLAN

Inverse Distance Squared (ID2) and Nearest Neighbour (NN) models were estimated

for the Kria dataset. Both models used two passes for uncapped and capped data.

Table 17.12 displays the Pass 1 and Pass 2 criteria for the ID2 interpolation using

capped values.


Table 17.12 Interpolation Parameters for Passes 1 and 2

Ellipsoid Dimensions Number of samples used

X Y Z Min Max Max per hole

PASS 1 25 7.5 25 6 15 5

PASS 2 50 15 25 3 45 5

Additional special models were created to facilitate the resource estimation and

classification:

Two models to capture the number of points used in the ID2 Pass 1 and 2

estimates of the uncapped data (N_SAM_P1 and N_SAM_P2).

A model for the actual distance to the closest point for the NN estimates

using uncapped data (DIST).

A script routine was used to determine the pass number for the blocks

(PASS_NMB). This number was used (with another script) to create a

category number (CAT model).

Copper equivalent models were created for capped and uncapped data

using two formulae, one using 2002 economic criteria and the other using

2007 criteria. These formulae are discussed in section 17.5.3.

A model for the interpolated specific gravity values.

17.5.3 MET AL EQUIVALENC Y FORMULAE

HBM&S used a 1% copper equivalency (CuEQ) formula to define the boundaries of

the mineralized solids. The formula is:

CuEQ 2002: Cu + Zn/4

Wardrop used this formula (with capped and uncapped data) to populate the

Cu_EQ_02 model with interpolated values. A copper equivalency formula

incorporating expected metal recoveries was also used with the same point data to

populate the Cu_EQ_07 models. The latter formula uses more relevant variables;

having both models enables visual comparisons of the grade distribution. The 2007

formula is:

CuEQ_C 2007: (((Cu Price * Cu Recovery * Cu Grade Capped * 22.04622) + (Zn

Price * Zn Recovery * Zn Grade Capped * 22.04622)) / (Cu Price)) / 22.04622

For the 2007 formula the following values were used:


Variable Value

Cu Price $2.50

Cu Recovery 93.80%

Zn Price $1.14

Zn Recovery 77.31%

Pounds per tonne 2204.622

The Cu values are capped at 5.9% while the Zn values are capped at 11.75%. The

mill recovery values are derived from the five-year estimates (1985 to 1989) shown in

a report by Tenney (1985) while the metal prices are three-year moving averages

(September 2004 to October 2007) from a database maintained by Wardrop.

Modified values were used for the updated resource estimate (Appendix A).

17.5.4 M IN ER AL RESOU RCE CLASSIF ICAT ION

The resource estimate for the Ruttan project is classified as Inferred for the following

three reasons:

There are no hard copy drill logs or assay certificates to validate the

database.

When a solid is generated by extrusion it may create a variance between the

start (or end) of the extruded solid and the location of the composite assays.

Figure 17.9 highlights this issue.

The mineralized solids were created using the 2002 CuEQ formula whereas

the block model interpolation uses the 2007 CuEQ formula.

In Figure 17.9 the blue bars represent the drill hole/solid intercepts while the red bars

represent all values greater than 1% CuEQ_02. The mismatch between the two

items highlights the imprecision of extruding solids and lowers the confidence level

for the resource estimate to Inferred.

Both ID2 and NN methods were used to estimate the resource; the NN method is

used as a cross-check for the ID2 method. Table 17.13 gives the summary statistics

for the Distance model – the average distance to the nearest composite is about 9m

while the maximum is closer to 50 m.


Figure 17.9 Solid Extrusion Issues (Blocks Shown by Red Lines)

Table 17.13 Distance to Nearest Composite Statistics

Minimum Maximum Average Std Dev Variance Count

0 49.05 9.08 5.66 31.99 77275

17.5.5 M IN ER AL RESOU RCE TABULAT ION

To estimate the resources correctly it was necessary to set a precedence value for

the three types of solids (mineralization, stopes and internal waste). Table 17.14

shows the results of the resource estimation. The base case of 1% CuEQ cut-off is

highlighted in yellow.


Table 17.14 Inferred Mineral Resources at Ruttan (Estimate by Wardrop, 2008)

Solid Names Grades Volume of Solids (m3) Density (t/m

3) Tonnage (t) Cu (%) Zn (%) CUEQ_C07 (%)

Combined Main

and West Anomaly

Areas (includes the

HW Zinc Zone)

>2.0 894,870 3.672 3,285,659 1.90 3.13 2.59

>1.5 2,265,640 3.642 8,252,155 1.50 2.30 2.06

>1.0 4,742,140 3.616 17,148,138 1.23 1.60 1.64


17.5.6 VALIDAT ION

Global and visual methods were used to validate the model. The global methods are

shown in Table 17.15 while examples of the visual methods are shown in Figures

17.10 and 17.11.

Table 17.15 Global Grade Comparisons

Raw Assays Composites Block Model ID2

Cu % 1.28 1.24 1.07

Zn % 1.30 1.24 1.28

The visual comparisons of block model grades with composite grades show a

reasonable correlation between the values. No significant discrepancies were

apparent from the sections reviewed.

Figure 17.10 Composites-Block Model Grade Comparisons (1)


Figure 17.11 Composites-Block Model Grade Comparisons (2)


1 8 . 0 O T H E R R E L E V A N T D A T A A N DI N F O R M A T I O N

The Ruttan property was a producing mine until 2002 when low metals prices forced

the mine to close. Initial mining was done by open pit. The dimensions of the open

pit are 2600 m long x 1400 m wide x 350 m deep (all approximate measures). The

mine evolved into an underground operation completed to the 1050 m level below

surface, with a shaft utilized for bringing ore to surface.

During the Wardrop site visit, it was confirmed that the mill was removed and no

surface infrastructure remains standing. The site visit confirmed the presence of

small dried tailings ponds on site and a larger active pond. As well, several waste

and low grade rock stockpiles exist on the property. The site surface water is

collected and drained and/or channeled to the open pit, which subsequently drains

into the underground mine. Also noteworthy is the existence of a power line to

property that could be re-habilitated.


1 9 . 0 I N T E R P R E T A T I O N A N D C O N C L U S I O N S

Multiple lenses of base metal massive sulphide mineralization are present at Ruttan,

with copper and zinc as the elements of interest. All of the digital data used for this

estimate was supplied by the current owner of the project (Kria Resources). This

data includes drill hole and assay information as well as various 3-D rings for the

mineralization, mined stopes and waste rock lenses. The supplied data came from

the HBM&S database at the time of mine closure (2002) and is believed to be

accurate although a lack of supporting hard copy data made it difficult to validate the

digital data. Wardrop visited the site, reviewed some of the historical drill core and

interviewed the project staff.

The various 3-D rings were extruded for 4.99 metres on either side of the plan centre

line. All of the solids were validated and solid-intercept intersections were calculated.

One of the issues with vertically extruding the 3-D rings to create solids is a potential

mismatch between the solid boundaries and the actual location of the mineralization.

This shortcoming is one reason for defining the category of mineralization as

Inferred. Wardrop recommends that the tie-line approach to solid creation be used

for any future studies.

The density for the tonnage estimation is interpolated from the values supplied by

Kria. Both ID2 and NN interpolation methods were used with capped and uncapped

values. An ID2 Inferred Resource of 17.15 million tonnes at 1.64% CuEQ_C is

present at Ruttan (using a 1% CuEQ_C cut-off). Both the internal waste and the

mined out stopes have been subtracted from the global resource estimate to arrive at

this number. No reserves are present at Ruttan.

The CUEQ_C 2007 formula incorporates values for both mill recoveries and metal

prices. Weighting the copper and zinc assays with these values creates a more

realistic grade distribution in the final block model. This formula is believed to be

more representative of today’s market conditions and will therefore generate a more

relevant resource estimate. This equivalency formula should be compared to the

simpler formula used by HBM&S

(Cu + Zn/4).


2 0 . 0 R E C O M M E N D A T I O N S

Recommended work for the Ruttan property consists of grade and tonnage

reconciliation to establish a base case of near term mineable tons from surface to

approximately 600 m deep. This reconciliation will then lead into a desktop study

analyzing the mineable tons from both an underground and an open pit perspective.

Included in the study will be integration of the present ongoing long term closure plan

for the mine and the case for reopening the mine and re-establishing the surface

infrastructure needed to process the reconciled Ruttan deposit. This study will be

conducted internally with outside consultants providing assistance and overview on

an as needed basis. The study will require a 5 month period starting in the 2nd

quarter of 2009. The expected budget for the recommended work is $200,000.

Kria’s diamond drill programs of 2007/2008 established the West Anomaly

mineralization extends to within 50 m of the surface. Wardrop recommends targeting

near surface diamond drill holes at a tight spacing to upgrade resources from the

Inferred to the Indicated category. It is envisioned that approximately 1500 m of

drilling will be required for an estimated cost of $300,000.

To upgrade the resource category from Inferred to Indicated Wardrop recommends

the creation of a wireframe using tie-lines and 3-D rings. This required step will be

time consuming and labour-intensive but is essential for accurate volume creation.

At the same time the database should be cleaned by cross-checking the digital data

with any hard copy data. Estimated cost is $65,000.


2 1 . 0 R E F E R E N C E S

Anderson, S.D., Beaumont-Smith, C.J. and Bohm, C.O., 2005: Structure and

geometry of the Paleoproterozoic Ruttan VMS deposit, southwest Rusty Lake belt

(NTS 64B5), Manitoba; Manitoba Industry, Economic Development and Mines,

Manitoba Geological Survey, Geoscientific Report GR 2005-1, 35p.

Ames, D.E., 1996: Stratigraphic and tectonic setting of the Paleoproterozoic Ruttan

Cu-Zn VHMS deposit, Rusty Lake belt, Trans-Hudson Oroge; In EXTECH 1: A

Multidisciplinary Approach to Massive Sulphide Research in the Rusty Lake-Snow

Lake Greenstone Belts, Manitoba, (ed.) G.F. Bonham-Carter, A.G. Galley and

G.E.M. Hall; Geol. Survey. Can., Bulletin 426, p. 15-43

Ames, D.E. and Taylor, C., 1996: Geology of the West Anomaly orebody, Ruttan

volcanic-hosted massive sulphide deposit, Proterozoic Rusty Lake belt; In EXTECH

1: A Multidisciplinary Approach to Massive Sulphide Research in the Rusty Lake-

Snow Lake Greenstone Belts Manitoba, (ed.) G.F. Bonham-Carter, A.G. Galley and

G.E.M. Hall; Geol. Survey. Can., Bulletin 426, p. 45-76

Baldwin, D.A., 1980: Ruttan Lake, Karsakuwigamak Lake, Eagle Lake project; In

Manitoba Energy and Mines, Mineral Resources Division, Report of Field Activities,

p. 14-18.

Baldwin, D.A., 1988: Geology of the southern part of the Rusty Lake volcanic belt;

Manitoba Energy and Mines, Minerals Division, Geological Report GR86-1, 90p.

Baldwin, D.A., Syme, E.C., Zwanzig, H.V., Gordon, T.M., Hunt, P.A. and Stevens,

R.D., 1987: U-Pb zircon ages from the Lynn Lake and Rusty Lake metavolcanic

belts, Manitoba: two ages of Proterozoic magmatism; Can Jour. Earth Sci., V. 24, p.

1053-1063.

Barrie, C.T. and Taylor, C., 2001: Geology, alteration mineralogy, geochemistry and

volcanogenic massive sulphide potential of the Ruttan Mine area and the southern

Rusty Lake volcanic belt (NTS 64B); Manitoba Industry, Trade and Mines, Manitoba

Geological Survey, O.F. Report OF2001-9, 25p.

Gale, G.H., McClenaghan, S.H. and Yaworski, R., 2002: Geology and geochemistry

of the Ruttan and Darrol Lake deposits (NTS 63B5), Manitoba; In Report of Activities

2002, Manitoba Industry, Trade and Mines, Manitoba Geological Survey, p. 198-204.

Government of Manitoba, Department of Science and Technology, Energy and

Mines, Mineral Resources Division; Mineral Disposition Map (online GIS viewer and

database) http://geoapp2.gov.mb.ca/website/claim_map/viewer.htm


Harron, G.A., 2007: Technical Report on Ruttan Mine Property and Claim 5025, The

Pas Mining District, Manitoba; For Kria Resources Inc.

Lantz, B., 1985: Re-evaluation of the tonnage factor estimate for Ruttan Mine

between 430 and 800 metric levels; Sherritt Gordon Mines Limited, internal report.

Maunula, T.L., 1997: Geological Resource Calculation Procedures; HBM&S, internal

report.

Speakman, D.S., Chornoby, P.J., Haystead, B.C.W. and Holmes, G.F., 1982:

Geology of the Ruttan deposit, northern Manitoba; Geol. Assoc. Can., Special Paper

25, p. 525-555.

Tenney, D., 1985: Ore reserves and break-even grades; Sherritt Gordon Mines

Limited, internal report.

PR ESS RELE ASE S :

Kria Press Release, Oct 2008. Beartooth Platinum and Kria Resources Agree to

Business Combination. 23 October 2008.

WEB SITE S :

Government of Manitoba, Department of Science and Technology, Energy and

Mines. Mineral Resources Division:

Mineral Disposition Map and Database:

http://geoapp2.gov.mb.ca/website/claim_map/viewer.htm


2 2 . 0 C E R T I F I C A T E O F Q U A L I F I E D P E R S O N S

2 2 . 1 C E R T I F I C A T E F O R T I M M A U N U L A , P . G E O .

I, Tim Maunula, P.Geo., of Oakville, Ontario, do hereby certify:

I am a Chief Geostatistician with Wardrop Engineering Inc. with a business

address at 900-330 Bay Street, Toronto, ON M5H 2S8.

This certificate applies to the technical report entitled Technical Report on the

Former Ruttan Mine, Northern Manitoba, Canada, with an effective date of

February 18, 2009 (the “Technical Report”).

I am a graduate of Lakehead University, (B.Sc. Honours, 1979). I am a member

in good standing of the Association of Professional Geoscientists of Ontario

(License #1115). My relevant experience with respect to geology includes over

30 years of exploration, operations and consulting experience including

considerable experience at base metal properties in Manitoba. I am a “Qualified

Person” for purposes of National Instrument 43-101 (the “Instrument”).

I have not completed a personal inspection of the Property that is the subject of

this Technical Report.

I am responsible for all Sections of the Technical Report.

I am independent of Trevali Mining Corp. as defined by Section 1.5 of the

Instrument.

I have prior involvement with the Property that is the subject of the Technical

Report. I was the Senior Geologist for the Hudson Bay Mining & Smelting Co.

Ltd. From 1995 to 1997 at the Ruttan Mine.

I have read the Instrument and the Technical Report has been prepared in

compliance with the Instrument.

As of the date of this certificate, to the best of my knowledge, information and

belief, the technical report contains all scientific and technical information that is

required to be disclosed to make the Technical Report not misleading.

Signed and dated this 19th day of August, 2011 at Oakville, Ontario.

“Original document, signed andsealed by Tim Maunula, P.Geo.”

Tim Maunula, P.Geo.


2 2 . 2 C E R T I F I C A T E F O R C H R I S T O P H E R M O R E T O N , P H . D . , P . G E O .

I, Christopher Moreton, Ph.D., P.Geo., of Oakville, Ontario, do hereby certify:

At the effective date of this report I was a Senior Geologist with Wardrop

Engineering Inc. with a business address at 900-330 Bay Street, Toronto, ON,

M5H 2S8.

This certificate applies to the site visit portion of the technical report entitled

Technical Report on the Former Ruttan Mine, Northern Manitoba, Canada, with

an effective date of February 18, 2009 (the “Technical Report”).

I am a graduate of the University of New Brunswick, (Ph.D., 1994), Memorial

University of Newfoundland (1984) and the University of Southampton (1981). I

am a member in good standing of the Association of Professional Engineers and

Geoscientists of New Brunswick (License # M5484) and the Association of

Professional Geoscientists of Ontario (License # 1229). My relevant experience

with respect to these deposits includes more than 20 years researching and

exploring for similar deposit types for both senior and junior companies. I am a

“Qualified Person” for purposes of National Instrument 43-101 (the “Instrument”).

My most recent personal inspection of the Property was August 6, 2007 for 2

days.

I am not responsible for any Sections of the Technical Report.

I am independent of Trevali Mining Corp. as defined by Section 1.5 of the

Instrument.

I have no prior involvement with the Property that is the subject of the Technical

Report.

I have read the Instrument and the Technical Report has been prepared in

compliance with the Instrument.

As of the date of this certificate, to the best of my knowledge, information and

belief, the technical report contains all scientific and technical information that is

required to be disclosed to make the Technical Report not misleading.

Signed and dated this 19th day of August, 2011 at Oakville, Ontario.

“Original document signed andsealed by Christopher Moreton,

Ph.D., P.Geo.”

Christopher Moreton, Ph.D., P.Geo.