Risk to Reward – Exploration and Development of theGiant Fruta del Norte Epithermal Au/Ag DepositGiant Fruta del Norte Epithermal Au/Ag Deposit

Cordillera del CóndorEcuadorEcuador

Karl Roa – Exploration Geologist

PRESENTED AT AMEBC ROUNDUPPRESENTED AT AMEBC-ROUNDUPVancouver, CanadaJanuary 21st 2010

…..back in the Jurassic

Laminated sinterStromatolite texture

Champagne Pool, Wai-o-Tapu, Taupo Volcanic Zone, New Zealand

FDN CORE

ECUADOR – THE UNDISCOVERED COUNTRYECUADOR – THE UNDISCOVERED COUNTRY

JUNINJUNIN

QUIMSACOCHA

CORRIENTE COPPER BELT

RIO BLANCO

FDNZARUMA

YANACOCHACOPPER

GOLD

PIERINA

ALTO-CHICAMA

ANTAMINA

TOROMOCHO

DEPOSIT PHYSIOGRAPHY AND CURRENT EXTENT OF FDN

PLAN SOLIDS

FDN4

PLAN - SOLIDS

NNLas Peñas Fault Zone

FDN3

CP-08-2192008 DEEPDRILLING

FDN3

1.3

km

ULT

ZO

NE

FDN1CP-06-51DISCOVERYHOLE 2006

EAST

FA

U

N

FDN2

HOLE 2006

FAU

LT

FDN2

WES

T FA

B-LP

FRUTA DEL NORTE – BLIND TARGET – PATH-FINDER GEOCHEMISTRY

Peñas Fault

SuarezFormation

Peñas FaultZone

Misahuallí Formation

FDNFDN Juxtaposed

Silicified - As, Sb, Hg, marcasite, BM

Project timeline - FDN

1996-1998 Climax Mining Bonza-Las Peñas/Ubewdy – IP/drilling

Project timeline FDN1993-1996 Artisanal miners (alluvial, limited hard rock activity south of FDN)

Feb 2006 FDN blind target predicted and discovered (Steve Leary + Ecuador team)

Nov 2007 Inferred Resource Estimate –13.7 m oz 7.23 g/t Au (2.3 g/t Au cap)

Jan-Apr 2008 50, 25 m infill drilling on central, high grade zone (3300N-3600N)

March 2008 FDN exploration team wins the international discovery award PDAC

Jan-Apr 2008 Exploratory basin drilling, Regional geochem, Aeromag, Met, Geotech etc

April 2008 MINING MANDATEMINING MANDATEApril 2008 MINING MANDATEMINING MANDATE

Sept 2008 Kinross Gold Corp take over

Insert footnote hereInsert footnote here

p p

Nov 2009 Drilling at FDN recommences – Pre-feasibility Stage (Q1 2010)

• Gamble on property acquisitions in the unexplored post-war Cordillera del Condor - Aurelian

Measuring Success Risk in Ecuador

• Gamble on property acquisitions in the unexplored, post-war Cordillera del Condor - Aurelian

• No modern mining – government cautious of modern mineral development

• Oil sector–Damaging legacy / multi-billion dollar lawsuits (multi-nationals) / revocation of blocks

E i t /S i l NGO ti Ill l i i ll ti Bi di it i th C dill

• Aurelian 2006 equity – Junior TSX-listed explorer needed a discovery to remain solvent

Reward

• Environment /Social – NGO scrutiny, Illegal mining pollution – Bio diversity in the Cordillera

Reward• Ambitious recon program over 95,000 ha – generated multiple Au and Cu anomalies

• Exploration Philosophy (The Leary Model) – Revised timing of Pull Apart Basin Development

• Discovery of a mineralized district trending along the Peñas Fault Zone

• Discovery hole (CP-06-51) 237.25 m @ 4.14 g/t Au (section 3300N) in central high grade zone

• FDN – a coherent orebody, drill to thrill – superb geology

y g g

• No budget constraints (working capital $75 m)

• No micro management (8 rigs, a lot of targets, excellent applied science + results)

• Take over always on the horizonTake over always on the horizon

• Stellar stock market performer – Aurelian Market Cap > US$1b

• A future for modern mining in Ecuador – an inevitable step forward (question of time)

DEVELOPMENT OF FDN

UPGRADE RESOURCE CATEGORY:-

G S GFDN 64%

20,000 m INFILL DRILLING + MET TESTING

PROJECT PARAMETERSUNDER CONSIDERATION

• LOW ENVIRONMENTAL FOOTPRINT

• 2000-4000 TPD U/G OPERATION(INITIAL)

• GRAVITY/POX/CIL

DEEP EXPLORATORY DRILLINGFDN – FUTURE INITIATIVES

OBJECTIVES• Testing for the displaced

other half of FDN.(Potential multi-million

ounce extension)

• DEEP DRILLING 2008

CP-08-200 (abandoned)

CP-08-219 (1434 m)

• ALTERNATE STRATEGIES

1: Within FDN block

• Exploration of the footwall• Footwall veins

2: From underground

Infill drilling typically Explored into footwall of FDN 500-800 m ?

e.g. 53 g/t Au - 3000 g/t Ag(CP-07-151)

• Exploration East of FDN Insert footnote hereInsert footnote here

1434 m?• Porphyry Copper targets Insert footnote here

• Sandia 1.2% Cu grabsPapaya – 6% Cu outcrop

Tranca Loma 73 m @ 0.3% Cu

?Camp – 116 m @ 0.35 % Cu

FUTURE INITIATIVES - PEÑAS FAULT ZONE/MISAHUALLÍ FM.

Insert footnote hereInsert footnote here

More on the Fruta del Norte epithermal gold/silver deposit

2010 SIMEXMIN Ouro Preto Brazil• 2010 – SIMEXMIN, Ouro Preto, Brazil• 2014 – SEG, Keystone CO.

www.fdngold.com2016 E i G l• 2016 – Economic Geology

A tradition of prospectingA tradition of prospecting –The Big Panning Man, Zamora, Ecuador

Roundup J 21st 2010January 21st 2010