Meliadine West Property

The Meliadine West property is located in Nunavut Territory, approximately 28 kilometers northwest of Rankin Inlet. The goal of exploration on the property is to find an economic mesothermal lode gold deposit. In excess of $90 million Cdn. has been spent on exploration of the property since 1995 (mostly by WMC). The property is owned 78% by Comaplex Minerals Corp. who can acquire an additional 2% at any time for $2 million (80%).

           
                                                           Portal brow and first full face blast

Title

In October of 2003, Comaplex concluded a transaction with WMC Resources Ltd. (WMC) whereby WMC’s wholly owned subsidiary, WMC International Limited (WIL) was merged with Comaplex. Among other things, this resulted in Comaplex acquiring WMC’s 56% interest and operatorship in the Meliadine West property. In return, WMC received $6,750,000 US cash and 5,200,000 shares of CMF.

On December 30, 2004, Gold Fields Limited, through its subsidiary, Orogen Holdings Limited, purchased 14.4% of the issued and common shares of Comaplex through the facilities of the Toronto Stock Exchange. On March 2, 2005, Comaplex entered into a subscription agreement with Orogen Holdings Limited, an indirect wholly owned subsidiary of Gold Fields Limited, whereby Orogen purchased 2,428,571 shares at a price of $3.50 Cdn. for aggregate gross proceeds to Comaplex of $8.5 million Cdn. Orogen (Gold Fields) then owned a total of 7,628,571 shares of Comaplex, representing a total of 19.8% of issued and outstanding shares in the Company.

In late October 2006, partner Cumberland Resources Ltd. of Vancouver sold its Meliadine gold property interests to Resource Capital Fund III L.P. (RCF) for Cdn $23 million. As part of the transaction, RCF assumed Cumberland’s contingent non-recourse loan obligation to Comaplex. RCF is a group of resource-focused private equity funds based in Denver, Colorado and Perth, Australia. RCF now holds a 22% interest in the Meliadine West property and a 50% interest in the Meliadine East property (operator of Mel East). RCF holds its Meliadine interests in a wholly owned private company called Meliadine Resources Ltd.

In late December 2006, Troy Resources NL (Troy) announced that it purchased a 19.5% equity stake in Comaplex from Gold Fields Limited for A$27 million. The deal involved 7,628,571 Comaplex shares for a cash payment of Cdn $16,274,285 and the issue of 3,250,000 shares Troy shares to Gold Fields. As of April 2008, Troy’s equity position in Comaplex is 16%.

Permitting, Access, Environmental

The core of the Meliadine property is situated on grandfathered Federal claims and the outlying ground peripheral to these claims are NTI sub-surface concessions. Surface access to the entire package is administered by the Kivalliq Inuit Association (KIA). For Comaplex to complete its exploration on the Meliadine West property, a commercial lease over the Meliadine West camp and the Tiriganiaq deposit, plus a number of land use permits are required. These permits are upgraded and renewed on a yearly basis.

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A baseline environmental data base has been developed for the Meliadine West property. Additional environmental work is planned for 2008.  No rare or endangered plant species are known to occupy the area, nor has any critical habitat for any local wildlife species been identified. The direct environmental effects on populations of subsistence fish, caribou, carnivore and herbivore populations are predicted to be minor, local, and of medium duration. 

Geology

The largest mineral resource on the Meliadine West property is the Tiriganiaq deposit where gold mineralization is associated with sheared and sulphidized (pyrrhotite and arsenopyrite) iron formations, clastic sedimentary, and mafic volcanic rocks. The mineralization is directly associated with quartz veins and an alteration assemblage of ankerite, sericite, and lesser chlorite. Similar gold mineralization is present in four small satellite gold deposits, the Pump, F, Wolf Main, and Wolf North Zones, all located within 5 kilometers of the Tiriganiaq Zone.
(If you wish to print a larger version of this map, click on the image below)

High-grade gold concentrations over substantial widths in Tiriganiaq are predominantly found in two parallel gold-bearing zones: the Lower Fault Zone or 1000 Lode, consisting of mineralized quartz veins hosted principally in fine grained sediments, and the 1100 Lode, consisting of quartz veined and sulphidized iron formation. Geology, grade, strength of structure, alteration and mineralization of the two lodes, as seen in 20 to 100 meter spaced drill holes, is moderately consistent, suggesting predictability along strike and down plunge. Both lodes have a strike length exceeding 800 meters and extend down a moderate east plunge along the Tiriganiaq shear zone for more than 500 meters. Sub-horizontal control to the higher grade areas of mineralization within the lodes is apparent. The deposit is open to depth.

Extensive drilling from 2004 to 2007 indicates that fault and fold repetition of the dominant iron formation (1100 Lode) has occurred. At least two sheared fold closures of this type (termed the 1150 and 1250 families of Lodes) are clearly represented and plunge from surface (on the east end of the deposit) to the west at a shallow 12-15º angle. The Lodes are mineralized and have been drilled over 2.5 kilometers of strike length and are open down plunge. Modeling of mineralization within these lodes suggests strong shear control parallel to the Lower Fault Zone (1000 Lode). In effect, the Lower Fault surface acts as the basal shear with listric faults emanating off of it offsetting and repeating the stratigraphy.

Exploration History

 

YEAR	MELIADINE WEST JOINT VENTURE EXPLORATION
1987	Asamera Minerals Inc. investigates the gold occurrence at Tonic Lake reported by the Rankin Nickel Syndicate in 1972 and obtains a sample of quartz vein carrying arsenopyrite that yields 5.0 g/t gold.
1989	Asamera and Comaplex follow-up the 5.0 g/t Au sample collected in 1987 by prospecting along the strike of the iron formation and finding the Discovery deposit with chip samples of up to 4.4 g/t gold over 4.0 m. Asamera and Comaplex acquire 1.0 million acres in claims and permits under a 50-50 joint venture.
1990	Asamera and Comaplex complete 14 drill holes (1,115 m) to evaluate the gold potential in the Discovery deposit area.  Airborne geophysical surveys are flown over the entire eastern portion of the property (Meliadine East).
1991	Rio Algom Inc. signs a joint venture agreement to earn 60% of western portion of the property (Meliadine West). Rio Algom Inc. drills six (6) holes totaling 728 m on Meliadine West. Detailed airborne survey over the present Meliadine West property and extensive boulder sampling is carried out. The Wesmeg boulder field is discovered. 710 boulders are sampled of which 75 have assays greater than 34 g/t gold. Asamera and Comaplex conduct regional and detailed mapping, trenching, airborne and ground geophysics and 4,957 m of diamond drilling on the Meliadine East property. Snow Goose showing is discovered.
1992	Asamera and Comaplex complete 5,148 m of diamond drilling on the Meliadine East Joint Venture. Rio Algom Inc. relinquishes option on Meliadine West, which reverts back to 50 - 50 joint venture between Comaplex and Asamera.
1993/1994	Comaplex drills 85 short holes (6,869 m) on Meliadine West. DDH 93-38 drilled on the as yet undiscovered Tiriganiaq deposit intersects 17.2 g/t gold over 1.1 m in mineralized Upper Oxide Iron Formation.  F and Pump deposits are discovered. Asamera sells their interests in the Meliadine Property to Cumberland Resources Ltd. All of Meliadine Property converts to a 50 - 50 joint venture between Comaplex and Cumberland.
1995	WMC options the Meliadine West property and drills 7,171 m in 33 holes including Tiriganiaq Gold deposit. Comaplex and Cumberland conduct prospecting and sampling on the Meliadine East claims NAT 51, NAT 53-56.  44 samples are collected with 8 samples having values greater than 0.5 g/t gold with a high of 29.0 g/t gold.
1996	WMC drills 18,196 m in 77 holes on the Meliadine West property. WMC performs geochemical and geophysical exploration on the NAT 16-19 and NAT 40 claims.
1997	WMC conducts mapping geochemical exploration and geophysical exploration over the entire Meliadine West property. WMC drills 33,000 m in 123 holes. A Bombardier mounted ground magnetic survey and an IP survey is performed over claims NAT 9, 10, 11, 12, 32, 33 and 34 in Meliadine West.
1998	WMC drills 36,268 m in 147 holes. A Bombardier-mounted ground magnetic survey is completed over NAT 8, 13, 14, 15, 31, 34, 35 and 41. WMC drills 4,417 m in 20 holes in the Peter Lake to Meliadine Lake portion of the Meliadine West property.
1999	WMC drills 21,000 m in 128 holes at Tiriganiaq deposit (123) and at F deposit (5).
2000	WMC drills a total of 10 753 m in 49 holes with 6 360 m in 31 holes completed on the Tiriganiaq deposit and 4,393 m in 18 widely spaced holes on exploration targets.
2001	WMC completes an aeromagnetic survey over concessions held on Inuit Owned and Federal lands in both the Meliadine West and East properties.  The survey identifies several prospective gold areas and identifies a number of small magnetic anomalies thought to be potential kimberlites.
2002	Additional electro-magnetic airborne geophysical surveys are completed to help define possible gold and base-metal bearing targets.
2003	Comaplex-WMC completes a program of diamond drilling (17 DDH for 4,650 m) on the Tiriganiaq deposit.  In a deal finalized in October of 2003, Comaplex agrees to buy the WMC 56% interest in the Meliadine West property.
2004	Comaplex completes 21 holes totaling 9,297 m in Meliadine West.  Results as high as 166 g/t Au over 16.1 m are reported from the western parts of the Tiriganiaq Gold deposit.  Regional assessment work is completed on outlying concessions.
2005	Comaplex completes 48 holes totaling 15,851 m on the property.  Surface assessment work on the outlying claims/concessions returns high grade gold values (>30 gmt) in the east half of the CWM claims
2006	Comaplex completes 75 holes totalling 18,043 m on the property.  Of this amount, 16,124 meters in 62 holes were completed on the Tiriganiaq deposit, with the remaining meterage completed on the reconnaissance Aklak and Aqpik targets on the CWM claim block.  A total of 249 till samples and tightly spaced magnetic geophysical surveys for diamond exploration were taken on the eastern end of the CWM claims.
2007	Comaplex completes 102 holes totalling 21,758 m on the property. Of this amount, 17 holes were for geotechnical purposes for site infrastructure. All of the core holes were completed on the Tiriganiaq deposit. Surface exploration to locate the source of G10d garnet diamond indicators on the eastern end of the CWM claims on the Meliadine property was limited to prospecting and mapping. An underground exploration and bulk sampling program commenced on the Tiriganiaq deposit in early August 2007. The portal was completed in early October and the underground exploration program is expected to continue until the spring of 2008.

Mineral Resources – Meliadine West Property

From 1995-2003, WMC International Ltd. completed extensive drilling programs on the Meliadine West property. During this time, a variety of resource and scoping level studies were completed both in-house and through third parties. Details on these studies are available on the SEDAR website. Many of these studies were for internal use by WMC only and did not meet NI43-101 standards for release to the public.

Since the acquisition of WMC in 2003, Comaplex, as operator of the project, has completed four resource studies on the Tiriganiaq deposit. These reports were released as National Instrument (NI) 43-101 level technical reports and are available on the SEDAR website.

Strathcona 2005 Resource Estimate
All previous studies by WMC had focused on large and extensive open-pit development of the Tiriganiaq ore body, with subsequent underground mining. The objective of the 2005 resource estimate was to intentionally maximize the grade of the Tiriganiaq deposit to determine if the deposit had the continuity, grade, and tonnage for a potential underground only operation.  Strathcona Minerals Services Limited (Strathcona) was retained by Comaplex to review the geology and mineralization in the Tiriganiaq Deposit and to produce a new manual resource estimate constructed on cross and longitudinal section and on plan. 

The geological model used for the estimate was tightly constrained, cut-off grades were adjusted to reflect appropriate underground mining methods, the lodes were tied to visual mining markers and dilution added. High outlier gold values were capped at reasonable levels. The Tiriganiaq deposit was divided into two areas, the Tiriganiaq Main Zone and the less well defined Tiriganiaq West Zone. 

            Strathcona 2005 Resource Estimate on the Tiriganiaq Deposit

Zone                  Tonnes             Grade (g/t Gold)     Ounces (gold)              Category
Main                2,467,000                    10.8                 853,000                       Indicated
Main                   417,000                    12.7                 171,000                       Inferred
West                  725,000                    13.4                 311,000                       Inferred

As stated in the 2005 NI43-101 Technical Report, while the 2005 study is considered a resource for underground facilities, it failed to include in the reportable resources additional near-surface mineralization that did not satisfy the high cut-off grades required for underground mining, but that may satisfy a cut-off grade used during open-pit mining. It was determined, at the time, that a resource estimate based on a block model would allow crossover studies that would investigate the most appropriate combination of open pit and underground mining.

Snowden 2006 Resource Estimate

In January of 2006, Comaplex released an updated resource estimate for the Tiriganiaq deposit completed by Snowden Mining Industry Consultants (Snowden) that incorporated both underground and open pit resources. All drilling in the Tiriganiaq deposit to that point in time was incorporated into the resource estimate. 

Preliminary mine planning and cost estimation studies were undertaken by Snowden so that reasonable cut-off criteria could be applied in the estimate. The analysis suggested that open pit mining may be possible to approximately 150 meters below surface. A cut-off grade of 2.5 gmt was applied to resources reported above this level. Below 150 meters from surface, bulk underground mining methods was considered to be possible and a 6.5 gmt cut-off grade was applied for reporting of this part of the resource. It is likely that a small portion of the underground resource may be mined by more selective, narrow vein mining methods.  A gold price of $450 US per ounce was assumed in the mine planning analysis.

                          January 2006 Snowden Tiriganiaq Mineral Resource Estimate

From surface to 150 meters (potential open pit)
                                         

applied    cut-off grade		category		tonnage		grade (gmt)		contained oz Au
2.5 gmt		Indicated		4,200,000		7.5		1,009,000
2.5 gmt		Inferred		3,244,000		4.1		432,000

Below 150 meters (potential underground)
                                     

applied    cut-off grade		category		tonnage		grade (gmt)		contained oz Au
6.5 gmt		Indicated		507,000		11.3		184,000
6.5 gmt		Inferred		3,188,000		10.9		1,120,000

           
                        Total Indicated Ounces Gold             1,193,000
                        Total Inferred Ounces Gold               1,552,000 

Snowden 2007 Resource Estimate

On February 22, 2007, Snowden Mining Industry Consultants Inc. of Vancouver released a new resource estimate on the Tiriganiaq gold deposit.  The updated resource, disclosed in accordance with NI43-101 requirements, incorporated all of the drilling in the deposit, including that completed in the 2006 field season into the Tiriganiaq geological model.  As expected, the new resource estimate shows an increase in the ‘Indicated’ tonnage, at the expense of the ‘Inferred’ tonnage. 

For comparative purposes, the 2007 resource is presented in a format similar to the previous year’s report.   Highlights from the February 2007 resource estimate for the Tiriganiaq deposit are:

From surface to 170 meters below surface  (potential open pit)                                      

applied cut-off grade		category		tonnage		grade (g/t)		contained oz Au
2.5 gmt		Indicated		5,180,300		6.7		1,111,500
2.5 gmt		Inferred		1,910,300		4.1		249,200

 
Below 170 meters from surface  (potential underground)                                           

applied cut-off grade		category		tonnage		grade (g/t)		contained oz Au
6.5 gmt		Indicated		1,145,800		10.6		391,400
6.5 gmt		Inferred		2,884,000		11.4		1,057,400

                        Total Indicated Ounces Gold                  1,502,900

                        Total Inferred Ounces Gold                    1,306,600

The block grades were estimated using a combination of Multiple Indicator (1000 and 1100 lodes) and Ordinary Kriging interpolation techniques (all other lodes).  Top-cuts ranging between 7.6 - 88.6 g/t gold were applied where required.  The lack of significant variation in the grade or tonnage of the resource in the upper 200 meters of the deposit, from one year to the next, infers the geological model is robust. 

Snowden 2008 Mineral Resource Estimate

For comparative purposes, the January 2008 resource is presented in a format similar to the previous year’s report (See Release 06-01, January 18, 2006 and Release 07-01 February 22, 2007).  Highlights from the new resource estimate for the Tiriganiaq deposit are:    

Tiriganiaq Deposit - Mineral Resources above 9900m level (170m below surface)
                                                

cut-off grade (g/t Au)		category		tonnage		grade (g/t Au)		contained oz Au
2.5		Indicated		6,136,000		6.4		1,257,700
2.5		Inferred		1,622,200		4.1		216,300

Tiriganiaq Deposit - Mineral Resources below 9900m level (below 170m from surface)
                                                               

cut-off grade (g/t)		category		tonnage		grade (g/t)		contained oz Au
6.5		Indicated		1,509,500		10.9		530,200
6.5		Inferred		3,260,500		11.1		1,169,100

2008 Total Indicated Resources = 1,787,900 oz gold

2008 Total Inferred Resources = 1,385,400 oz gold

The January 2008 resource estimate showed an increase in both the Indicated and Inferred mineral resources.  The infill drill program of 2007 resulted in the extension of the Indicated mineral resources down to depths of over 400 meters below surface in at least four mineralized lodes.  Gold mineralization now extends continuously between the main deposit and the deep, westerly plunging continuation of the mineral deposit (the Western Deeps portion of the Tiriganiaq deposit) and is open to depth and down plunge. 

The 2007 infill drilling in the central part of the Tiriganiaq deposit (>200 meters depth) indicated that multiple, parallel zones of gold mineralization are present in quantities sufficient for several of these to be assigned mineral resources.  Increases in Inferred mineral resources also resulted from drill holes in the Western Deeps area, where the gold tenor of thick, high gold grade intersections in multiple, parallel gold bearing lodes was confirmed (see holes 695, 700, 714A and 719; Release 7-13, November 13, 2007).   

Block grades were estimated using a combination of Multiple Indicator (1000, 1025 and 1100 lodes) and Ordinary Kriging estimation techniques (all other lodes).  Top-cuts, ranging between 7.6 - 88.6 g/t gold, were applied where required. 

Comaplex is now incorporating the 2008 resource estimate into mine planning optimization studies to determine, among other things, what combination of pit and underground is optimal for the development of the deposit. 

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2007 Exploration Program

The 2007 drill program was very successful technically and financially, with a total of 21,758 meters in 102 holes completed on budget (including 17 geotech holes for site infrastructure work).  This was approximately 25% more drilling than was originally planned.  The object of the infill drill program was to upgrade the resource status and to increase the understanding of the deeper parts of the deposit.  Meterage was also allocated to shallow drill testing of both the western and eastern potential open pit areas of the Tiriganiaq deposit. 

Results from the 2007 drill program were released in Comaplex press releases 07-08, 07-09, 07-11 and 07-13.  See the press releases for figures outlining approximate hole locations.  Some highlights from the 2007 drill-holes include: 

• 44.9 gmt gold over 10.6 meters in hole M07-684 (and 23.5 gmt gold over 2.1 meters and 14.1 gmt gold over 7.6 meters); 
• 13.2 gmt gold over 15.1 meters in hole M07-692 (and 17.5 gmt gold over 4.6 meters and 16.4 gmt gold over 5.9 meters); 
• 24.3 gmt gold over 10.0 meters in hole M07-655; 
• 26.2 gmt gold over 3.5 meters in hole M07-650 (and 19.1 gmt gold over 4.2 meters and 75.0 gmt gold over 2.9 meters); 
• 13.9 gmt gold over 7.6 meters in hole M07-651 (and 27.1 gmt gold over 4.7 meters); 
• 39.3 gmt gold over 4.5 meters in hole M07-661 (and 13.2 gmt gold over 7.5 meters); 
• 51.8 gmt gold over 3.3 meters in hole M07-666A (and 14.9 gmt gold over 3.8 meters).
• 10.6 gmt gold over 17.4 meters in hole M07-695 (and            11.4 gmt gold over 4.5 meters and 16.4 gmt gold over 5.9 meters);
• 13.0 gmt gold over 3.5 meters in hole M07-700 (and 14.3 gmt gold over 10.5 meters and 13.4 gmt gold over 6.0 meters);
• 13.8 gmt gold over 2.6 meters in hole M07-713 (and 18.0 gmt gold over 6.6 meters);
• 15.9 gmt gold over 26.9 meters in hole M07-714A;
• 23.1 gmt gold over 14.8 meters in hole M07-719

Drilling results to date are consistent with expectations for the deposit.   Coalescing of several of the lodes at depth is apparent in some areas of the deposit (e.g. holes 07-684, 07-692) where multiple high grade gold intersections are present over considerable distances. 

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Underground Exploration Program

In early August, Comaplex received approval from the last of the regulatory agencies for its proposed underground exploration and bulk sampling program on the Tiriganiaq deposit.  Portal excavation by the surface contractor, Nuna Logistics Ltd. began in early August and was completed on October 5.  The underground mining contractor, J.S. Redpath Limited, mobilized its underground mining equipment to site from Rankin by heavy lift helicopter over a one week period starting September 14.  Construction of site infrastructure at the box-cut was completed by Redpath and the first full-face round of the underground exploration program took place on October 7, 2007.  The underground portion of the program is expected to continue for approximately eleven months. 

The decline and development will access both the 1000 and 1100 gold lodes and a bulk sample (round by round test through a sample tower) will be extracted.  The 1100 lode was accessed in late March (70 meters below surface).  The 1000 lode mineralization is expected to be intersected at the -120 meter (vertical) level in June, 2008.  The underground program has two important objectives:

1. to map the rock formations containing gold to assess its continuity, consistency,  mine-ability, and related mining properties.

1. to collect a representative sample of mineralized rock (ore) for testing how much gold is present (for comparison to the drill hole results) and to determine if the gold can be recovered by standard methods in a future mill (metallurgical test work).

The underground exploration and bulk sample program is the next logical step in moving the Meliadine West project forward into the feasibility stage of development.  Variations on the scope and scale of an underground exploration program have been examined and Comaplex has designed the proposed underground program so that if the bulk sample results and a future feasibility study are positive, the decline could be used for production purposes.

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Diamond Exploration

A diamond indicator till sampling program (249 samples) was completed in 2006 on the east end of the CWM claim block on the Meliadine West property (in the area of the Aklak and Aqpik gold showings).  Heavy mineral processing of the till samples was undertaken by Vancouver Indicator Processing of Vancouver and the resulting concentrates were sorted for potential kimberlite indicator minerals by Mineral Services Canada Inc. (MSC) of Vancouver.  Of the 249 samples, a total of 192 samples returned potential diamond indicator results, with 6 samples returning in excess of 20 kimberlite garnets.  Microprobe analysis of the recovered garnets was conducted by MSC.  Significantly, the garnet dataset of 258 analyses included 76 sub-calcic G10 varieties, of which 14 are classified as diamond associated (G10D) types.   The G10D garnets were found in 9 different samples, including several which had concurrent high garnet counts. This area is immediately up-ice from the recent discovery of diamonds in multiple bedrock sources (narrow dikes) by an unrelated third party.    

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Surface exploration in 2007 to locate the source of the G10d garnet diamond indicators was limited to prospecting and mapping.  No surface exposures of kimberlitic rock were found.  With the extensive ongoing drilling and underground programs for gold on the property, this is, at the present time, not a high priority target for the company.  Comaplex continues to monitor the diamond exploration results and activities of unrelated third parties who hold ground around our claim block.  

The proximity of the Tiriganiaq deposit to Rankin Inlet is a tremendous logistical and strategic advantage in the development of a potential mine on the property. Discussions with local businesses and various governmental agencies are on-going to develop synergies and cost saving strategies that will have positive benefits on future capital expenditures for the project. The Company continues to assess its options in advancing this project and will provide updated information on a timely basis in the future. 

Doug Dumka, P. Geo. is the Qualified Person for the Meliadine West project for Comaplex for work completed post 2003. Mr. Dumka is the Chief Geologist for Comaplex Minerals Corp.

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