Molybrook

East Coast Porphyry Moly Deposit

Starcore International Mines Ltd. maintains a 100% interest, subject to a 2% Net Smelter Royalty on certain claims, in the Moly Brook Molybdenum Property located on the south coast of Newfoundland. The property, consisting of 149 claims totaling 3725 hectares in size, is centred 2.5 kilometres north of the out port village of Grey River.

Location and Access

The Moly Brook Property is located on the south coast of Newfoundland approximately 2.5 km northwest of the port village of Grey River, 40 km east of Burgeo. Grey River, population less than 100, has daily coastal boat service and bi-weekly car ferry service from Burgeo. Burgeo has paved road connection to the TransCanada Highway. From Grey River the property can be reached from Grey River by boat and footpath. Long Pond, located at the south end of the property is suitable for float planes to land on.

Geology

The southern quarter of the Moly Brook Property is underlain by Pre-Cambrian metamorphosed sedimentary and volcanic rocks with the rest of the property being underlain by variably composed Silurian intrusive rocks. Mapping has identified a 2.5 km long and open, north trend (Moly Book) of sericite and potassic alteration containing three zones of at surface molybdenum + copper mineralization: Moly Brook, Wolf and Chimney Pond. At these zones molybdenite and chalcopyrite occur in sheeted and stockwork quartz veins, along fracture faces and as disseminations in the host rocks. At the Moly Brook Zone sheeted veining is prevalent at the higher elevations while at depth stockwork is more common. At the Wolf and Chimney Pond Zones sheeted veining is dominant.

The Moly Brook Zone is underlain by variably sericite/kspar/chlorite altered intrusive rock. Diamond drilling (43 holes-14,078.9 metres) has outlined a 750 metre long x up to 500 metre wide x up to 300 metre thick deposit of molybdenum and copper mineralization. In 2009, initial resource estimations were completed by Kirkham Geosystems with the results listed below.

MOLY BROOK DEPOSIT RESOURCES (2009)

CATEGORY

CUT-OFF

TONNES

Mo

Cu

Mo Lbs >Cutoff

Cu Lbs >Cutoff

 

Mo (%)

> CUT-OFF

%

%

Millions

Millions

Indicated

0.01

146,797,210

0.050

0.035

161.3

113.6

 

0.02

137,222,801

0.052

0.035

158.0

106.5

 

0.03

113,415,381

0.058

0.035

145.1

87.7

 

0.04

86,781,029

0.065

0.034

124.6

65.8

 

0.05

61,449,819

0.074

0.035

99.7

47.3

 

0.06

42,250,759

0.082

0.036

76.8

33.8

 

0.07

27,742,365

0.092

0.038

56.2

23.2

 

0.08

17,458,367

0.102

0.038

39.4

14.7

 

0.09

11,233,188

0.113

0.037

27.9

9.2

 

0.10

7,150,216

0.123

0.037

19.4

5.8

CATEGORY

CUT-OFF

TONNES

Mo

Cu

Mo Lbs >Cutoff

Cu Lbs >Cutoff

 

Mo (%)

> CUT-OFF

%

%

Millions

Millions

Inferred

0.01

51,983,174

0.046

0.027

52.3

30.6

 

0.02

50,284,730

0.047

0.027

51.7

29.5

 

0.03

42,990,115

0.050

0.027

47.7

25.4

 

0.04

31,263,359

0.056

0.027

38.6

18.8

 

0.05

17,332,754

0.065

0.030

25.0

11.5

 

0.06

8,913,550

0.076

0.033

15.0

6.5

 

0.07

4,779,313

0.087

0.035

9.7

3.7

 

0.08

2,695,434

0.097

0.038

5.7

2.2

 

0.09

1,635,951

0.105

0.043

3.8

1.6

 

0.10

1,035,629

0.111

0.047

2.5

1.1

       

Resource Completed by: Garth Kirkham P. Geo, Kirkham Geosystems

Information Source: “Technical Report, Moly Brook Property”, Susan Scott et Al, June 15, 2009 , Pages 98-99. Tenajon Resources Corp News Release-May 5, 2009 summarizes and includes additional information.

Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. An Inferred Mineral Resource is that part of Mineral Resource for which quantity and grade or quality are estimated on the basis of limited geological evidence and sampling. Geological evidence is sufficient to imply but not verify geological and grade of quality continuity. An Indicated Mineral Resource is that part of a Mineral Resource for which quantity, grade or quality, densities, shape and physical characteristics are estimated with sufficient confidence to allow the application of Modifying Factors in sufficient confidence to allow the application of Modifying Factors in sufficient detail to support mine planning and evaluation of the economic viability of the deposit.

Preliminary studies demonstrate that nearly all of the Moly Brook Zone as defined by the 0.04% molybdenum cut-off, lies within a pit shell with an estimated strip ratio of 2.03:1. Within this shell there are indicated resources of approximately 82.6 million tonnes averaging 0.066% molybdenum (119.8 million pounds of molybdenum) with 0.06% copper and inferred resources of approximately 25.0 million tonnes averaging 0.058% molybdenum (32.1 million pounds of molybdenum) with 0.03% copper. Within this pit there is the potential for a starter pit hosting an indicated resource of approximately 27.1 million tonnes, averaging 0.073% molybdenum (43.4 million pounds of molybdenum) and an inferred resource of 3.3 million tonnes averaging 0.060% molybdenum (4.3 million pounds of molybdenum) with a strip ratio of 1.09:1. Additional engineering studies are required to determine the economic parameters and optimize the pit.

The Wolf Zone is underlain by both granitic rocks and quartz feldspar schists. Overall the zone is up to 200 metres wide x 300 metres long with the zone being open to the north and south and to the east. Within the zone several individual chip samples assayed >0.100% Mo with the best result being a 2.5 metre sample assaying 0.204% Mo. The zone has never been drilled.

The Chimney Pond Zone is underlain by Pre-Cambrian biotite hornblende gneiss. Exploration has defined a zone that is up to 400 metres long x up to 400 metres wide that is open along strike and to the east. Within the zone chip sample results are highly variable with grab samples assaying up to 0.256% Mo with the best chip sample averaging 0.056% Mo over 3 metres. In 1965 Buchan’s Mining and Smelting completed 2 short packsack drill holes into the zone. Both intersected shallow molybdenum mineralization with Hole GR-19 intersecting a 27.44 metre section (the length of the hole), commencing at surface, averaging 0.057% Mo.

The style of mineralization and alteration patterns formed at the Moly Brook Property is similar to that outlined by Sinclair in his 1996 description of Porphyry Molybdenum + Copper Deposits. Prospecting, mapping, geochemical and geophysical surveying, trenching and drilling have been undertaken by Tenajon Resources Corp. in order to determine the potential of the property to host significant molybdenum reserves. Most of the work has been concentrated on the evaluation of the Moly Brook Zone. Exploration at the Moly Brook Zone has shown it to be overlain by large molybdenum and copper in soil anomaly that in turn is coincidental with a magnetic, resistivity and chargeability high as outlined by geophysical surveying. Four backhoe trenches completed over a 300 metre segment of the zone exposed widespread alteration and quartz veining with the northernmost three trenches returning widespread anomalous molybdenum and copper values.

The southern quarter of the Moly Brook Property is underlain by the Neoproterozoic to Early Cambrian Grey River Enclave, an east-west striking assemblage of polydeformed metamorphic sediments and volcanics. The Enclave is bounded to the north by the Late Silurian-Early Devonian Burgeo Granitic Batholith that locally ranges in composition from quartz diorite to muscovite-biotite granite. At depth, the Burgeo Granitic rocks have been intruded by Mid-Devonian Francois Group Alaskite.