Majestic Gold Corp. ("Majestic" or the Company"), has taken all reasonable care in producing and publishing information contained on this web site, and will endeavor to do so regularly. Material on this site may still contain technical or other inaccuracies, omissions, or typographical errors, for which Majestic assumes no responsibility. The Company does not warrant or make any representations regarding the use, validity, accuracy, completeness or reliability of any claims, statements or information on this website. Under no circumstances, including, but not limited to, negligence, shall Majestic be liable for any direct, indirect, special, incidental, consequential, or other damages, including but not limited to, loss of data, loss of programs, loss of use of computer of other systems, or loss of profits, whether or not advised of the possibility of damage, arising from the use, or inability to use, the material on this site. The information is not a substitute for independent professional advice before making any investment decisions. Furthermore, you may not modify or reproduce in any form, electronic or otherwise, any information on this site, except for personal use unless you have obtained management's express permission.
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Forward Looking Statements
The information on this web site includes certain "Forward-Looking Statements" within the meaning of securities exchange regulation. All statements regarding potential mineralization and reserves, exploration results, and future plans and objectives of Majestic Gold Corp. are Forward-Looking Statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Majestic Gold Corp. expectations are disclosed under the heading "Risk Factors" and elsewhere in Majestic Gold Corp. documents filed from time to time with the securities regulatory authorities.
Third Party Links
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NI 43-101 Disclosure
Unless otherwise noted, all of Majestic's exploration programs and the related disclosure of information of technical or scientific nature are prepared by, or prepared under the direct supervision of Mike Hibbits, P.Geo, Majestic's Vice President Exploration and Development, and Rod Husband, P.Geo, President and CEO who are Qualified Person as defined in NI 43-101.
This website and several associated documents refer to a preliminary economic assessment ("PEA") prepared by Wardrop Engineering Ltd., and dated February 25, 2011. Wardrop Engineering Ltd. are consultants, all of whom are independent of Majestic and are Qualified Persons as defined by section 1.4 of National Instrument 43-101.
The Company's production decision was not based on a feasibility study of mineral reserves demonstrating economic and technical viability. The Company's production decision was made based on the open pit optimization resource model set out in the Preliminary Economic Assessment ("PEA"), which takes into account the relatively low mining costs negotiated by the Company. The pit optimization that was conducted in the preliminary assessment generated a production schedule summary at grade cut-off of 0.30 gram per tonne Au.
The PEA includes the inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that the preliminary assessment will ever be realized. mineral resources that are not mineral reserves do not have demonstrated economic viability.
Open pit optimization was carried out using Whittle 4.3 which uses a series of Lerchs Grossman (LG) pit shells at different prices of gold to optimize the size of the pit while maximizing net present value (NVP) of the deposit. The resulting LG shells generated the highest discounted cash flow from the ore body at varying prices of gold. The LG shell used for optimization does not apply practical mining considerations and constraints.
The strategic planning using the generated LG pit resulted in Wardrop identifying the "potentially minable" resources within the proposed preliminary production schedule.
The optimization was based on a gold price of $973 per ounce and an exchange rate of $1.000 (U.S.) to $1.087 (Canadian).
The Song Jiagou resource estimate was carried out using industry-standard procedures and a geological interpretation of the deposit that, to the extent possible, reflected observations of grade distributions. Modeling of the deposit is uncertain, however, because it is difficult to establish with a high level of confidence the area of influence of higher-grade gold values. The risk remains, therefore, that the geological model may overstate the distribution of high-grade gold values. If future mining demonstrates that this is in fact the case, then the model may overstate anticipated gold grades. Because the probability of this outcome is unknown, the level of uncertainty must also be unknown.