To read the complete National Instrument 43-101 Technical Report for the Woodjam Copper Gold Project Cariboo Mining Division, British Columbia please click here.

Introduction

Woodjam South contains the Southeast Zone, a new porphyry copper-gold-molybdenum discovery with significant size potential. The Southeast Zone still remains open in all directions, including depth. The area of mineralization at the Southeast Zone now extends 1,300 m by 900 m. Drilling is currently underway and an NI 43-101 compliant resource calculation will be produced at the end of 2011.

Geology

The Quesnel-Stikine Terrane, also known as the Quesnel Trough, is a large regional depositional belt extending 2,000 km from the U.S. border in the south to the Stikine River in the north. The region hosts several large tonnage copper-gold ‘porphyry type’ deposits including Imperial Metals’ Mount Polley Mine, Barkerville Gold’s QR Mine, Thompson Creek Metals’ Mt. Milligan deposit (in development) and Northgate’s Kemess Mine. In addition, the prolific Gibraltar Cu-Mo mine lies 50 km to the west of Woodjam, outside the Quesnel Trough. Quesnel Trough alkali-porphyry deposits typically occur in basalts and andesitic flows, fragmental rocks and alkalic intrusive complexes. They are generally gold-copper deposits consisting of chalcopyrite-pyrite and minor bornite sulphide mineralization. Sulphide zones are developed adjacent to concentrically-zoned alkaline plutons that are themselves seldom sulphide bearing.

A sample of molybdenite from the Southeast Zone was submitted to the BC Geological Survey for age dating and has returned a date of approximately 197 million years. This date coincides very closely with age dating from Teck Cominco Limited’s huge Highland Valley Copper mine which returned dates from 191.3 to 198.0 million years. The Southeast Zone has geological characteristics comparable to the Highland Valley Copper mine such as being hosted within a quartz monzonite to monzodiorite and the association of mineralization with quartz stockworks, disseminated and coating fractures. Both deposits are associated with large intrusive complexes or batholiths; Highland Valley Copper with the Guichon Batholith and the Southeast Zone with the Takomkane Batholith.

Breakthrough in 2007

An IP study performed in 2007 gave evidence that a large intrusive/hydrothermal complex measuring approximately five kilometres by six kilometres underlies Woodjam North and Woodjam South properties. This led to the dilling of an anomaly called the Southeast Zone and the subsequent discovery of a large area of copper-gold-molybdenum porphyry mineralization.

The geophysical survey data dramatically expands the area of interest for exploration on the Woodjam North and South properties and suggests a much greater potential for discovery than previously envisioned. Northeasterly trending geologic features have long been considered important in determining the location of large mineralizing systems in the generally northwest trending Quesnel Terrane. This recent data suggests that such a feature is present and is aligned with the known mineralized areas on the property.

Southeast Zone

The Southeast Zone is currently being drilled by Gold Fields. The style and grades of mineralization in the Southeast Zone are comparable or better than significant copper-molybdenum mines in BC such as Teck Cominco’s Highland Valley Copper deposit (2007 reserves of 318.7 Mt grading 0.43% Cu and 0.008% Mo) and Taseko’s Gibraltar deposit (2007 reserves of 383.6 Mt grading 0.31% Cu and 0.009% Mo).

To the end of 2010, a total of 38 diamond drill holes (14,544 m) were completed on the Southeast Zone. All holes are mineralized from the bedrock interface to the bottoms of the holes, with the exception of one reconnaissance hole (SE10-20), drilled approximately 800 m north of the northern-most mineralized hole (SE10-07). The drilling program in 2011 targeted mineralization to depths of 400 m to 450 m and although the deepest hole to date (WJ08-82) is just over 700 m and ended in mineralization. The best hole drilled to date (WJ08-84) averaged 0.69% Cu, 0.26 g/t Au and 0.006% Mo over 359.1 m, including 1.01% Cu, 0.44g/t Au and 0.002% Mo over 200.8 m.

Southeast Zone Select Drill Results from 2008 to 2011
Hole	From (m)	To (m)	Interval (m)	Cu (%)	Mo (%)	Au g/t
08-80	189.9	581.6	391.7	0.219	0.012	0.046
Including	202.6	264.4	242.6	0.419	0.014	-
08-81	172.2	393.2	221.0	0.28	0.018	0.060
Including	172.2	268.5	96.3	0.33	0.024	-
08-82	129.5	700.4	570.9	0.24	0.013	0.038
Including	129.5	231.0	101.5	0.37	0.016	-
Including	129.5	182.2	52.7	0.42	0.024	-
08-83	128.6	530.7	402.1	0.44	0.006	0.079
Including	128.6	365.0	236.4	0.56	0.003	0.106
Including	128.6	200.6	71.9	0.80	0.003	0.123
Including	160.9	200.6	39.63	1.02	0.006	0.221
08-84	125.88	485.0 (eoh)	359.12	0.69	0.006	0.27
Including	125.88	326.64	200.76	1.01	0.002	0.44
Including	260.64	311.64	51.0	1.61	0.004	0.84
08-95	100.98	367.81 (eoh)	267.23	0.25	0.006	0.06
Including	103.0	148.0	45.0	0.37	-	0.11
08-96	173.74	425.81 (eoh)	252.07	0.39	0.008	0.09
Including	245.97	270.35	24.38	0.47	0.006	0.11
Including	317.0	347.0	30.0	0.49	0.005	0.13
08-97	131.06	270.36 (eoh)	139.30	0.13	0.007	0.02

Southeast Zone Digital Core Shack
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The Southeast Zone Resource

On March 2, 2012, Gold Fields released the first ever inferred resource for the Southeast Zone: 146.5 million tonnes at 0.33% copper for 1.06 billion pounds of copper.

This resource is limited to the Southeast Zone and is open pit constrained using the parameters indicated below. The resource is reported only in regards to copper content although accessory gold, molybdenum and silver occur, but are not defined to a level of confidence sufficient to be included in the resource estimation.  The resource also contains a gold grade of 0.06 g/t gold, a portion of which may be recovered as by-product. Copper, gold, silver and molybdenum grade was estimated using a recoverable resource estimation method called multivariate uniform conditioning – an established estimation methodology, which ensures that the theoretical grade-tonnage curve is honored by the estimates.

Parameters used to define the theoretical pit:

1.)    The disclosed mineral resource is reported using a US$7.50/t net smelter return (NSR) cut-off grade within an optimized pit shell assuming processing costs of US$5.10/t, G&A costs of US$1.40/t and sustaining costs of US$1.00/t for a 30,000 t/day mining rate (this equates to a cut-off grade of 0.16% copper).

2.)    Copper price at US$3.90/lb.

3.)    Gold price at US$1,450/oz.

4.)    Recoveries estimated to be 80% for copper and 70% for gold, based on initial metallurgical testing.

5.)    Bulk density of fresh rock is estimated to be 2.65 t/m³.

6.)    Copper-gold concentrate shipping, handling, insurance and all other off site charges estimated to be US$157/wet metric tonne concentrate. Concentrate grade estimated at 30% copper.

7.)    Overall pit slopes estimated to be 27° for till, 42° for broken fresh rock and 47° for unbroken fresh rock.

Status

The Woodjam South Property was optioned to Gold Fields Ltd. in May 2010.

Gold Fields has earned an initial 51% interest in the property by spending US$7 million in exploration over a 2.5-year period. Gold Fields can extend the option a further 19% by completing a feasibility study on the Property and spending US$2 million on the Property for each of the first 4 years of the second option period.

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