Mont-Royal, Quebec

Mont-Royal

Anticipated Pit Scope

Location

The Mount-Royal gold project is located in the heart of the major metropolitan centre of Montreal. Though situated in a sensitive area, the prospect indicates a world-class property. Claiming and permitting will begin in the spring quarter of 2009 to assure the projects development. RoyalOr anticipates that our state of the art mitigation and environmental impact strategies coupled with the project’s tremendous potential for regional development will garner the support of municipal and provincial authorities. Quebec consistently ranks high on the Fraser Institute’s annual survey of mining friendly jurisdictions. Its mining code permits staking the claim for the property and RoyalOr is confident that the necessary derogations will be obtained following the Province’s standard public hearing procedures (BAPE).

The deposit is found within the Mount Royal intrusion, one of a chain of alkaline intrusions that are collectively known as the Monteregian hills. The Monteregian intrusions are series of hornblende gabbro to syenite plutons generally thought to have been emplaced above a fixed mantle plume during the late Mesozoic.

The Monteregian intrusions are the source of considerable mineral and industrial resources. The Oka Carbonatite complex yields economic concentrations of pyrochlore. The minimum resource consists of > 110 million tons of Nb₂O₅ and 24 Mt of 0.2-0.5% REO. Mt. Ste. Hilaire is considered one of the most important mineral localities in the world, for the abundance, variety and the rarity of the mineral species found there and is also extensively quarried for specialized concrete applications. Lamprophyre and kimberlite bodies are also associated with the Monteregian intrusions.

Beyond industrial minerals and rare earths, the discovery of significant gold and PGE mineralization in the Mount Royal intrusive complex indicates significant and heretofore underappreciated potential of the Monteregian intrusions as a possibly world class precious metal geological province.

Geology and Mineralization

The Mount Royal intrusion is subdivided into three major igneous units: a nepheline bearing syenite, a leucogabbro and the gabbro-pyroxenite complex, which comprises most of the exposed igneous rocks. Both the leucogabbro and the pyroxene rich zones of the gabbro-pyroxenite complex yield significant and economic mineralization. Pyroxenite and gabbro locally contains up to 3 per cent finely disseminated pyrrhotite and pyrite. Previous work is extremely promising and suggests significant potential. From limited grab samples, trenching and drilling, very consistent gold grades were found to range from 0.6 to 1.3 grams per tonne. Quartz veins are not common in the more mafic rocks, and are instead found predominantly in the leucogabbroic rocks. The leucogabbro is characterized by consistent and ubiquitous sulphide mineralization (pyrite+pyrrhotite +/- chalcopyrite) yielding grades from 0.7 to 2.4 grams per tonne. Brecciated zones bearing quartz veins represent areas of enriched mineralization. The occasional vein contains visible gold with grades up to 8.24 grams per tonne.

Additional mineralization is associated with the contact between the intrusive rocks and the hydrothermaly altered and metamorphosed country rocks. Gold-silver mineralization is associated with quartz +/- carbonate- pyrrhotite-pyrite, +/- molybdenite, +/- arsenopyrite veins. These veins pass into the sedimentary country rock but the amount of gold and strength of veining generally decreases substantially and finally dies out within a short distance of the host igneous rocks. The mineralized zone containing the veins weakens laterally outward, is relatively flat lying and controlled by low angle veining similar. Gold-silver grades range up to 23 grams per tonne and 57 grams per tonne respectively, across a 1 metre drill intersection.

Exploration and Development Plan

All existing assays come from samples taken near the surface. The downward extent of mineralization remains open. Total tonnage of mineralized rock could therefore be quite high. The immediate exploration priority is to delineate the downward extent of mineralization by drilling. The north and northwestern sides of the intrusion are mostly covered with overburden, which will be selectively removed for trenching of the underlying rocks. Trenching will be conducted with extreme sensitivity to the existing use of this part of the intrusion (a graveyard).

The disseminated and consistent nature of the mineralization suggests a considerable potential for a high tonnage low grade gold deposit. Ore would be extracted from an open pit, with nearby treatment and processing of extracted rock. Preliminary assessment of ore characteristics suggest that the ores are highly amenable to heap-leach cyanide extraction of gold.