Lead-Zinc Drilling Results, Toral Project, Spain

Section 1: Sampling Techniques and Data, Diamond Drilling, Toral Project

Criteria

Explanation

Comments

Sampling techniques

Nature and quality of sampling

(e.g. cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc.). These examples should not be taken as limiting the broad meaning of sampling.

Diamond drilling

Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.

Spacing variable due to location of existing access roads and suitable terrain.

Aspects of the determination of

mineralisation that are Material to the Public Report. In cases where

'industry  standard' work has been done this would be relatively simple (e.g. 'reverse circulation drilling

was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay'). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation  types (e.g. submarine nodules) may warrant disclosure of detailed information.

Drill hole locations were set out with high definition GPS, GEOMAX Zenith 35.

Drill core was split in half and 1 metre samples, or shorter due to lithological contacts, were packed and labelled into plastic bags.

Sample preparation was done at ALS Chemex in Spain and assayed for multi-element analysis, ME ICP 41 (35 element). Samples with over 1% of mineralisation were re-assayed using ME OG46.

Drilling

techniques

Drill type (e.g. core, reverse

circulation, open‐hole hammer, rotary air blast, auger, Bangka, sonic, etc.) and details (e.g. core diameter, triple or standard tube, depth of diamond tails, face‐ sampling bit or other type, whether core is oriented and if so, by what method, etc.).

Diamond drilling was conducted using a wireline rig, mounted on a crawler. Drill bit sizes PQ and PQ3 were used and when the hole was expected to intersect

mineralised zone, the core was recovered with a triple core barrel.

Drill sample

recovery

Method of recording and assessing core and chip sample recoveries and results assessed.

Drill core was assembled in the core boxes and the real length of the drill run was measured with measuring tape to be able to calculate the core recovery.

Measures taken to maximize sample recovery and ensure representative nature of the samples.

Use of triple core barrel when intersecting expected mineralised zones.

Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to

preferential loss/gain of fine/coarse material.

Not applicable at this stage

Logging

Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation,

 mining studies and metallurgical studies.

Drill logs digitally entered into the Company´s standard templates.

Logging is of sufficient quality to support Mineral resource estimation, however at this stage (Company´s first six drill holes comprising 1,046m) the lithological/alteration and mineralogical features assisting modelling of the Mineral Resource are yet to be determined.

Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc.) photography

Quantitative logging of colour, grain size, weathering, structural fabric, lithology, alteration type and sulfide mineralisation documented.

The total length and percentage of the relevant intersections logged.

All drill holes are logged using visual inspection. Information captured on paper sheets and entered into company´s logging template.

Sub‐

sampling techniques and sample preparation

If core, whether cut or sawn and whether quarter, half or all core taken.

Mineralised zones of the core are split; one half core is sent for assaying and the second is stored in the core box as a reference.

If non‐core, whether riffled, tube

sampled, rotary split, etc. and whether sampled wet or dry.

Not applicable as entire sample is core.

For all sample types, the nature, quality and appropriateness of the sample preparation technique.

Sample preparation was done at ALS Chemex in Spain, using standard preparation technique suitable for multi-element analysis, ME ICP 41 (35 element). Samples with over 1% of ore grade were re-assayed using ME OG46.

Quality control procedures adopted for all sub‐sampling stages to maximise representivity of samples.

Standard, blanks, field samples and repeats (using also coarse split and pulp reject) were inserted into the sample stream.

Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second‐half sampling.

Field duplicate (quarter core) samples were collected at 2 in 100 samples,

as a rotating blank, standard, field duplicate and repeat sequence.

Whether sample sizes are appropriate to the grain size of the material being sampled.

 Samples are of 1 metre length or smaller (lithological contacts) or a quarter core (field sample). Grain size of all samples are from medium to fine-grained.

Quality of

assay data and laboratory tests

The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.

Assays were carried out by ALS Chemex in Spain, using standard preparation techniques suitable for multi-element analysis, ME ICP 41 (35 element). Samples with over 1% of ore grade were re-assayed using ME OG46.

For geophysical tools, spectrometers, handheld XRF instruments, etc., the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.

Not applicable as no geophysical tools were used in this programme.

Nature of quality control procedures adopted (e.g. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established.

The Company uses certified reference materials (CRM) and field duplicates in its QA/QC procedures. CRMs are sourced from

Labmix24 and 6 standards were inserted every 15 samples. Field Duplicate samples were taken at a nominal frequency of 2 in 100 samples. QA/QC also includes regularly inserted Pulp Blanks, 2 Coarse Blanks, 2 Pulp Repeats and 2 Coarse Repeats in every 100 samples. No samples. No samples sent yet to external laboratory.

No bias has been observed and accuracy/precision is believed to be acceptable for quoting Exploration Results.

Verification

of sampling and assaying

The verification of significant intersections by either independent or alternative company personnel.

No such verification conducted in respect of this announcement.

The use of twinned holes.

No twinned holes.

Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols

Primary data was collected using the Company´s set of standard digital templates.

Discuss any adjustment to assay data.

No adjustment to assay data has been carried out.

Location of

data points

Accuracy and quality of surveys

used to locate drill holes (collar and down‐hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.

Drill hole locations were set out with high definition GPS, GEOMAX Zenith 35 and down-hole deviation measures were carried out by the drilling contractor using Maxibor equipment.

Specification of the grid system

used.

Co‐ordinates are presented in ETRS89 Zone 29.

Quality and adequacy of topographic control.

Topographic control is based on published 1:5,000 topographic sheets for the region.

Data spacing and

distribution

Data spacing for reporting of

Exploration Results.

 Drill hole spacing varies from 30m to 60m and was selected to use existing access roads and to test continuation of the mineralisation documented in the old adits.

Whether the data spacing and

distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and

The mineralized domains have not yet been explored sufficiently to demonstrate the continuity of the mineralized structures to support a definition of Mineral Resource.

Whether sample compositing has been applied

No compositing has been applied yet to the exploration results.

Orientation

of data in relation to geological structure

Whether the orientation of the samples achieves unbiased sampling of possible structures and extent to which this is known, considering the deposit type,

The orientation of the mineralised structures has not yet been ascertained and drilling has been oriented perpendicular to the interpreted structure of the mineralisation (observations from the old surface workings and adits).

If the relationship between the drilling orientation and the orientation of key mineralized structures is considered to have introduced a sampling bias, this should be assessed and reported if material

 No orientation based sampling bias has been identified in the data at this stage.

Sample Security

The measures taken to ensure sample security.

All samples were logged and checked on return from the field.

All samples were then stored in a secure building before being dispatched to the laboratory via a reputable transport company.

Audits or reviews

The results of any audits or reviews of sampling techniques and data.

No audits or reviews have been carried out at this stage.

Criteria

JORC Code explanation

Commentary

Mineral tenement and land tenure status

● Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.

● The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.

● The Toral zinc-lead permit is located near Ponferrada in the west of the province of León, Autonomous Community of Castile and León, Spain approximately 400 km northwest of Madrid.

● The project is a licence covering 20 km2.

● There are no known impediments to the licence security.

Exploration done by other parties

● Acknowledgment and appraisal of exploration by other parties.

· Between 1975 and 1985, the Adaro/Peñarroya joint venture carried out exploration on the four separate licences which now correspond, approximately, to the Toral permit area. Over a period of nine years, a topographical survey, geological mapping, a hydrogeological study and more than 40,000m of diamond drilling (62 holes and 41 wedges) were carried out.

● Lundin Mining S.L. (Lundin) acquired the Toral investigation permit no. 15.199 in 2007 and commenced exploration in April 2007. Lundin compiled the information collected by the previous licence holders including: o a review of the available geological maps, plans, sections and assays; o surveying old workings, old drill pads, and drill hole locations; and, a study of the existing Peñarroya/Adaro drill holes, description, photography. In addition, samples of drill core were sent to ALS Chemex in Canada in order to validate the reliability of the existing assays and exploration information was digitised. The results of Lundin's preliminary work confirmed the mineral potential of the Toral area. However, it was apparent that the continuity and the thickness of the mineralisation were insufficiently detailed. Consequently, an exploration programme was designed to add information to the data set for a better understanding of the deposit. In 2007 to 2009, seven diamond holes for a total of 4,523.7m were drilled for the purpose of confirming the continuity of the mineralisation in the San Jose area of the Toral permit and also to test the possibility of an extension of the mineralisation at depth. GoldQuest acquired Lundin, including the Toral permit, in January 2010.

● During 2011 and 2012, GoldQuest conducted systematic geological mapping and soil sampling.

Geology

● Deposit type, geological setting and style of mineralisation.

· The Toral permit is located in the West Asturian Leonese Zone (WALZ), one of the tectonostratigraphic units in the Variscan (or Hercynian) Orogen of the north-western portion of the Iberian Peninsula. Within the WALZ, the permit area is located in the domain of the Mondoñedo Mantle. The most significant mineralisation is found in the upper carbonate layers of the Vegadeo Formation, at the contact between the Vegadeo Formation and the younger Los Cabos Series. The mineralisation comprises sulphides interbedded in limestones and dolomites, within a silicified facies, and in chloritic breccias. The mineralisation is epigenetic and formed during a metamorphic episode within the Hercynian Orogeny. The sulphide mineral assemblage comprises sphalerite, galena, pyrite and chalcopyrite.

● Drill hole Information

● A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes:

● easting and northing of the drill hole collar

● elevation or RL (Reduced Level - elevation above sea level in metres) of the drill hole collar

● dip and azimuth of the hole

● down hole length and interception depth

● hole length.

● The details of drill holes material to the exploration results are reported in the body of the announcement and also in Appendix B below.

● All drill hole collar locations, easting and northing are given in UTM 21, ETRS89 grid, collar elevations (m), dip (°) and azimuth (UTM), down hole length (m).

● Data aggregation methods

● In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated.

● Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.

● The assumptions used for any reporting of metal equivalent values should be clearly stated.

● The weighted average of the mineralised intervals was calculated by multiplying the assay of each drill sample by the length of each sample and dividing the sum of the product by the down hole length sum of the mineralised interval.

● No metal equivalent values have been reported.

● Continuous anomaly zones reported in Appendix B are at >0.05% of combined Pb+Zn grade.

● Relationship between mineralisation widths and intercept lengths

● These relationships are particularly important in the reporting of Exploration Results.

● If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.

● If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg 'down hole length, true width not known').

● As stated in the announcement, all lengths shown including those in Appendix B are down hole measurements with true widths not known.

● Diagrams

● Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported. These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.

● Please see Appendix B showing the tabulation of the significant assay results.

● Balanced reporting

● Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.

● The selected drill hole results reported here are stated as being those of the highest grades out of this drill programme.

● Other substantive exploration data

● Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples - size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.

● No other substantive data has been omitted in the context of the announcement. Any material observations arising from further data reviews will be reported in due course.

● Further work

● The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling).

● Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.

● Follow-up work is planned to evaluate further the data from this and earlier programmes and will be reported with diagrams in due course.

● The next exploration programme will include further modelling, drilling and metallurgical work.

Hole ID

Hole Type

Depth (m)

Dip

Azimuth

Grid

East

North

RL

EPM

TOR17008

DDR

108.5

-45

211.5

ETRS89

680958.59

4710012.46

468.44

Toral 15.199

TOR17009

DDR

235.3

-45

196.7

ETRS89

680982.73

4710058.36

456.25

Toral 15.199

TOR17010

DDR

120.0

-45

197.5

ETRS89

680936.14

4710048.76

441.60

Toral 15.199

TOR17011

DDR

83.2

-45

208.0

ETRS89

680867.59

4710054.13

416.54

Toral 15.199

TOR17012

DDR

259.0

-50

28.0

ETRS89

680716.93

4709924.96

416.54

Toral 15.199

TOR17013

DDR

240.9

-50

190.2

ETRS89

681038.30

4710093.19

458.07

Toral 15.199

Drillhole

from

to

length (m)

Pb %

Zn %

Pb+Zn %

TOR17009

140.35

141.35

1.0

1.22

9.77

10.99

TOR17009

141.35

142.35

1.0

3.26

1.45

4.71

TOR17009

140.35

142.35

2.0

2.24

5.61

7.85

TOR17009

134.35

144.35

10.0

continuous anomaly zone of Pb+Zn >0.05%

Drillhole

from

to

length (m)

Pb %

Zn %

Pb+Zn %

TOR17012

176.3

177.3

1.0

0.67

16.10

16.77

TOR17012

177.3

178.3

1.0

0.54

1.33

1.87

TOR17012

178.3

179.3

1.0

0.72

1.95

2.66

TOR17012

176.3

179.3

3.0

0.64

6.46

7.10

TOR17012

175.3

185.3

10.0

continuous anomaly zone of Pb+Zn >0.05%

Drillhole

from

to

length (m)

Pb %

Zn %

Pb+Zn %

TOR17013

195.8

196.8

1.0

9.29

9.11

18.40

TOR17013

196.8

197.8

1.0

2.29

0.87

3.16

TOR17013

197.8

198.8

1.0

6.51

6.5

13.01

TOR17013

195.8

198.8

3.0

6.03

5.49

11.52

TOR17013

193.8

199.8

6.0

continuous anomaly zone of Pb+Zn >0.05%