Fostung Tungsten Project, Ontario, Canada

Target

Tungsten Skarn Deposit

Introduction

The Fostung property consists of two contiguous mining leases covering 485ha and is located in Foster Township, Ontario, approximately 8 km southeast of the town of Espanola and 70 km west-southwest of Sudbury.

The Fostung property has a current NI43-101 compliant Inferred Mineral Resource of 12.4 million tonnes at 0.213% WO3 using a 0.125% cut-off (Stryhas and More, 2007 - SRK Consulting).

EMC Metals has the option to earn a 100% interest in the property from Breakwater Resources Ltd.

NI43-101 Technical Report Completed on Fostung Property 

Geology

The Fostung property hosts tungsten skarn mineralization within calcareous Huronian metasedimentary rocks unconformably overlying Precambrian basement shield rocks. The property is situated within a northeast trending belt of Early Precambrian volcanic and felsic plutonic rocks that separate the Superior Archean greenstone-gneiss Province on the northwest from the Mesoproterozoic to Neoproterozoic metasediments and felsic plutons of the Grenville Province on the southeast.

Scheelite mineralization extends along strike of the Calcareous Siltstone Member of the Espanola Formation for approximately 2 km. The primary controls on mineralization are the proximity of chemically favourable carbonate-bearing strata to structural permeability zones of faults and fracture zones. Conceptually the faults have provided the channel pathways for hydrothermal fluids derived from an unknown, presumably deep buried felsic pluton which is uncommon in the local area.

Zones of tungsten mineralization are associated with packages of dark red garnet ± pyroxene beds intercalated with light green diopside rich beds. Grades of ~ 1% WO3 over 1m have been intersected in the former, but more commonly average 0.15% to 0.30% in the latter assemblages. In the dark green skarns containing 50% pyrrhotite, scheelite grades of up to 2.75% WO3 over 1.5m have been discovered. High-grade scheelite zones are commonly flanked by lower grade scheelite-pyrrhotite-chalcopyrite ± pyrite and sphalerite.

Historical Work

The Fostung property was originally staked covering a one-foot wide quartz vein with minor chalcopyrite and molybdenite.

Texas Gulf completed geological mapping and geophysics on the property, and drilled 6 diamond drillholes in 1966 and 1967, and dropped the property shortly after. In 1972, VanGulf Exploraiton drilled two more holes before the property was acquired by St. Joseph Exploration, who drilled 6 more holes before dropping the property in 1973.

In 1978, Union Carbide Corporation and St Joseph Exploration formed a joint venture and drilled 29 diamond drillholes between 1978 and 1986, and completed a preliminary resource estimate, economic cost analysis and preliminary bulk metallurgical test work on composite core rejects. The property became inactive at the end of 1986 with a worldwide drop in metal prices and remained inactive until 2007 when Golden Predator (EMC successor) signed a deal to acquire 100% interest in the project.

In 2007, EMC Metals commissioned SRK Consulting to prepare a 43-101technical Report and complete a current 43-101 compliant resources for the Fostung Property. Stryhas and More (2007) of SRK Consulting Engineers and Scientists calculated an Inferred Mineral Resource using a 0.125% WO3 cutoff grade of 12.4 M tonnes grading 0.213% WO3 for 58 million contained pounds of WO3.

Fostung Project Resource Estimation Stryhas and More (2007) of SRK Consulting
Resource Category	Cut-off WO3 %	Total Tonnes (kt)	Grade WO3 %	Contained WO3 (Mlbs)
Inferred	0.125	12,400	0.213	58

Notes: This resource estimation was prepared in compliance with the "Best Practices and Reporting Guidelines" set out by CIM and National Instruments 43-10. It was prepared by SRK Consulting for Golden Predator Mines Inc. (the predecessor of EMC Metals Ltd.) and was signed off by Bart Stryhas (Ph.D., C.P.G.) and Syver W. More (R.G., C.P.G.). The resource calculation is based on a total of 9,185m of drilling in 43 holes with the maximum depth of 947m and an average depth of 214m. The resource estimation was made using an Ordinary Kriging algorithm using a minimum of three and maximum of nine, 2.5 m downhole composites. A specific gravity of 2.96 g/cm3 was used for all mineralized material for this resource estimation.

Current Program

EMC Metals acquired Fostung to enhance their North American tungsten portfolio and intends to maintain its option until such time as tungsten price recovery is in effect and the recommended infill drilling can be initiated.


Maps

Fostung Property Geology click on image to view enlarged		Fostung Regional Geology click on image to view enlarged
Fostung Regional Geology click on image to view enlarged		Ontario - North America Map click on image to view enlarged

Photos

Albitized intrusive breccia(?) exposed at west end of Fostung property click on image to view enlarged