Serpentinites in Southern Quebec

Exploration Program 2008

Golden Hope Mines Limited

May 2008

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Introduction......................................................................................................................... 3

Geological Considerations .................................................................................................. 3

Serpentinite Geology: ......................................................................................................... 5

Description of Some Serpentinite-Related Gold Deposits.................................................. 6

Bou Azzer, Morocco:.......................................................................................................... 6

Introduction................................................................................................................. 6
Bleïda Far West Gold mine: ....................................................................................... 7
Structures and mineralization ..................................................................................... 8

Platinum group minerals ..................................................................................................... 9

Regional Geological review of Serpentinites in Southern Quebec................................... 10

Association of Gold with Serpentinites in the Bellechasse – Chaudière area. ......... 10

Eastern Metals................................................................................................................... 10

GNH Claims and Known Exploration Data...................................................................... 10

Existing exploration data: Chute du Bras, Rivière des Plantes................................. 11

“Chute du Bras” ........................................................................................................ 11
Introduction............................................................................................................... 11
Exploration Program 2008................................................................................................ 13
References:........................................................................................................................ 14

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Introduction
Altered ultrabasic rocks associated with continental collision during Palaeozoic Time are
found in the Appalachian Mountains of North America. This orogenic belt extends from
Newfoundland to Georgia. Golden Hope Mines Limited holds approximately 1200
mineral claims along some 110 kilometers of the belt on the south shore of the St
Lawrence River paralleling the border with the State of Maine.

Geological Considerations

Ultrabasic rocks are generally enriched in copper, nickel, cobalt, gold, silver, and
platinum group metals. Under favourable conditions, alteration of ultrabasic rocks to
serpentinites is accompanied by release of water, silica, and carbonates that can collect,
transport, and re-deposit these metals.

Our experience with mineralization associated with serpentinites led the Company to
investigate several in the Bellechasse – Beauceville area. Early results indicate that the
geochemical processes that have resulted in development of cobalt and nickel deposits,

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for example, those at Bou Azzer, Morocco, were active in south-eastern Quebec, as
indicated by the Eastern Metals copper and nickel bodies.

The association of gold with serpentinites rocks was observed at Bou Azzer in extensive,
but not particularly obvious, silicification of both the wall rocks and, to a lesser extent, of
the ultrabasic bodies themselves.

In addition to the obvious concentrations of cobalt and nickel minerals for which Bou
Azzer is renowned, less evident gold and platinum group mineralization is increasingly
recognized. Gold is associated with both the cobalt (and nickel) diarsenides that are the
primary cobalt ores, and with silicification and carbonate alteration.

Carbonate bodies (calcite and dolomite) develop at the contact of altered ultrabasic rocks
with the intruded hosts. These bodies can be quite extensive particularly if the current
level of erosion has not exposed the serpentinite. In simplified terms these carbonate
alteration zones develop over the altered rock and can extend down the ultrabasic/host
rock contact for several hundred metres.

Carbonate and silica can move upward several hundred metres into the host rock along
faults and often serve to indicate presence of alteration at depth.

Silicification is less obvious when pervasive and may extend ten to thirty metres
horizontally from the vertical contacts, particularly near the ‘top’ of a serpentinite. Silica
is also present in the carbonate alteration zones to a greater or lesser extent, and may be
preserved at surface as a sharp silicate ‘sponge’ where the carbonates have been
weathered away.

The process of serpentinization includes not only chemical changes but also significant
increase in volume. Structural deformation related to this aspect of alteration can
complicate the model by dissecting earlier mineralization, movement of competent
blocks, and injection of serpentine into pre-existing faults, and brecciation. The process
may be further complicated by several phases of alteration, fluid movement, and
mechanical readjustment.

Fault-controlled ‘vein’-type gold-bearing bodies that appear to relate to movement of

fluids expelled during serpentinization of the original ultrabasic rocks (either emplaced
mechanically or intruded) are observed up to several thousand metres from the outcrop of
serpentinites. These ‘related’ deposits are secondary, but still important, exploration
targets.

Mineralization seems to be localized at the intersection of secondary faults with the main
body of the ultrabasic although this may be more a function of preservation, since the
back of the serpentine may be displaced significantly on these dislocations.

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Serpentinite Geology:
The Appalachian orogen is a belt of deformed terranes stretching southwest from
Newfoundland to Alabama, and terranes of the Ouachitan Orogeny are exposed
discontinuously west of Alabama in Arkansas, Oklahoma, and Texas (Fig. 1). Some
terranes of these orogens were thrust over the Grenville Province of the North American
continent and many others were attached to the continent during the Paleozoic Era. The
serpentinites or ultramafic rocks of eastern North America are in these accreted terranes
that were added to the continent more than one-quarter of a billion years (Ga) ago.

Most of the ultramafic rocks originated in oceanic environments and have gone through
multiple stages of deformation and alteration. Ophiolites are clearly identifiable only in
Newfoundland, Quebec, and western Maine. Many small bodies of ultramafic rocks
occur in fragments of oceanic crust in the northern Appalachian and from the Blue Ridge
Mountains of the southern Appalachian eastward across the Piedmont.

Although the ultramafic rocks in ophiolites, which are fragments of ocean crust, are
presumed to be the predominant ones in the Appalachians, some are in differentiated
magma chambers and sills.

Ultramafic rocks of the northern Appalachians are most concentrated in small bodies
along, or near, faults that represent the western margin of the Dunnage Domain. These
faults are concentrated along the Baie Verte-Brompton and Taconian Lines (Williams
and St-Juliens 1982, Hatch 1982, Fig. 4) from Newfoundland through southeastern
Quebec, Vermont, and western Massachusetts and Connecticut. The outer margin of the
Humber Zone is along these lines. Some oceanic and volcanic arc rocks were thrust over
those of the Humber Zone when the Dunnage Domain impinged upon Laurentia during
the Taconic Orogeny. Arrival of the Gander Domain during the early Acadian (or
Salinian) caused more deformation of the Dunnage Domain, and the Avalon Domains
arrived during the late Acadian Orogeny

Ophiolite is readily discernable where the Bay of Islands complex has been obducted
westward from the Baie Verte-Brompton line in Newfoundland and Quebec, but
deformation and alteration make ophiolites more difficult to identify south of the
Thetford Mines, Asbestos, and Mount Oxford ophiolites in Quebec. The general sizes of
ultramafic bodies diminish southward along the Baie Verte-Brompton-Taconic Line and
in western New England the rocks are characteristically almost completely serpentinized
with some talc schist and talc-magnesite or magnesite aureoles.

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Description of Some Serpentinite-Related Gold Deposits

Bou Azzer, Morocco:

James Tilsley (Golden Hope’s chief Geologist) worked for Thayer Lindsley from 1961 to
1963 in Morocco including one year at the Bou Azzer cobalt mine of Omnium Nord
Africaine. While there, he learned that certain drill holes onto the wall rock of the
serpentinite had returned up to 7gr/t Au over widths of 10 to 30 meters. While
uneconomic at the time, that knowledge led to the investigation, staking, and current
exploration program on a series of serpentinites in the Appalachian terrain of southern
Quebec, Canada.

Geological Summary of the Bou Azzer Mine Environment.

Introduction

Magmatic processes have long been considered the main geological factors responsible
for concentration of platinum-group elements (PGE), whereas most gold deposits, except
placers, are ascribed to hydrothermal processes, suggesting that PGE and gold have very
distinct geochemical behaviour. However, in recent years compelling evidence has shown
that hydrothermal fluids may also play an effective role in the mobilization and
concentration of PGE (Stumpfl, 1986; Mountain and Wood, 1988).

Hydrothermal fluids responsible for the serpentinization and carbonatization of

ultramafic rocks are important factors for the mobilization, and then the deposition of
gold in carbonatized ultramafic rocks, where gold is generally associated with sulphides
or/and arsenides (Buisson and Leblanc, 1986). The Bou Azzer, Morocco cobalt arsenide
ore bodies are hosted in carbonate lenses along the borders of serpentinite massifs in an
Upper Proterozoic ophiolitic complex (Leblancand Billaud, 1982) and are a good
example of this type of gold-bearing mineralization.

The Bou Azzer ophiolite complex is located in the central part of the Anti-Atlas.
Ultramafic rocks were completely serpentinized during the tectonic emplacement of
ophiolite resulting in a lizardite-chrysotile-magnetite mineral assemblage. Along the
borders of the serpentinite massifs, talc, chlorite and carbonates developed.

In a single cobalt-arsenide orebody, gold and PGE contents decrease away from the
serpentinite wall-rock and follow roughly the decrease in cobalt, suggesting a kind of
genetic relationship with the ultramafic rock. The late sulphide phase found in the cobalt
ores and which comprises mainly chalcopyrite and bornite displays the lowest contents of
noble metals.

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1) The Bou Azzer cobalt-arsenide mineralization is ascribed to hydrothermal processes
related to serpentinization and carbonatization of ophiolite mantle peridotites. It has very
high average gold contents (5-20 ppm) and from 40 to 2000 ppb total PGE. The highest
values are found in cobalt-arsenide (skutterudite) and the lowest in Fe-arsenide
(loellingite). Nevertheless all the arsenide ores of Bou Azzer exhibit similar chondrite
normalized PGE patterns displaying positive Rh and negative Pt anomalies, and a
moderate positive slope (Pd/Ir = 1 to 2). These PGE patterns closely resemble those of
sulphide-bearing komatiites.

2) Serpentinite and chromite of the Bou Azzer ophiolite show PGE patterns typical of
mantle rocks, harzburgite and podiform-chromitite, respectively. During serpentinization
and carbonatization of peridotite, gold and to a lesser extent PGE were mobilized.

3) Horizons of sulphide-bearing serpentinites are a possible source for the noble metals of
the cobalt-arsenide ores; they show similar PGE patterns and have relatively high noble
metals contents. Noble metals were probably mobilized during serpentinization from
primary magmatic sulphide assemblages.

Bleïda Far West Gold mine:

The structurally controlled Au–Pd mineralization at Bleïda Far West occurs in a volcano-
sedimentary rock sequence in altered amphibolites and chlorite schists of the
Neoproterozoic Bou Azzer–El Graara inlier. The Au–Pd mineralization is virtually
sulfide-free; instead, gold is associated with hematite, barite, quartz, and calcite. The gold
grains are silver- and palladium-bearing (up to 19 wt% Ag and 6.3 wt% Pd) and are
intergrown with a distinct suite of mainly Pd-dominated platinum group minerals, namely
mertieite-I/isomertieite, merenskyite, keithconnite, kotulskite, palladseite, and sperrylite,
defining an Au–Pd–As–Sb–Se–Te chemical signature. Stable isotope and fluid inclusion
studies indicate a wide range of fluid compositions with a prominent saline component.
In conjunction with the mineral association, oxidizing fluids are indicated, and
Au and PGE transport and deposition likely took place by chloride complexes in the
epithermal range, at elevated f O2 and/or low pH.

The Bou Azzer–El Graara inlier of the Anti-Atlas in Morocco is well-known for its vein-
type cobalt–arsenide deposits with gold as a by-product, podiform chromitites, and the
mined-out SEDEX-type Bleïda copper deposit (Leblanc and Billaud 1978; Leblanc 1981;
Mouttaqi and Sagon 1999). Recent geochemical prospecting by Reminex Exploration led
to the discovery of significant gold mineralization some 7 km NW of the former Bleïda
copper mine. Managem, a subsidiary of the ONA group, intends to start production at the
site in 2006 at a planned annual output of 30,000 oz of gold.

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Mainly drill core and limited surface samples from the Bleïda Far West gold
mineralization were studied. The present contribution, therefore, focuses on geochemical
and mineralogical aspects of the mineralization with the aim of describing the unusual
features of this type of virtually sulfide-free gold mineralization, which carries significant
palladium contents and associated platinum group minerals.

Figure 1. Location of Bou Azzer and Bleïda Far West Deposits.

Structures and mineralization

At Bleïda Far West (Fig. 2), gold mineralization is present in a 5×3-km wide corridor consisting
of hydrothermally altered amphibolites and chlorite schists. Two structurally controlled,
hydrothermal events are distinguished. (1) Early quartz veining related to B1 structures (N 90°–
120°) is usually un-mineralized, and (2) intense silicification and numerous narrow, variably
deformed, and re-crystallized quartz-dominated, carbonate- and hematite bearing veins and
breccia zones carry the main gold mineralization and are parallel to the penetrative S2 foliation
(N 45°–60°).

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Figure 2. Vertical section of gold mineralization, location zone de brèche (ZB). Note steeply north-
dipping, irregular orebodies; the term “amphibolites” represents dense volcano-sedimentary rocks

Gold is generally interstitial to networks of blades and needles of hematite and is furthermore
associated with barite, calcite, and quartz. The pristine gold–palladium mineralization is virtually
sulfide-free; visible gold grains associated with iron oxides and iron hydroxides, Mn–Fe, and
Mn–Bi–V oxides are frequently present on fractures of surface samples. The presence of large
gold grains (up to 3 mm in diameter) probably indicates redistribution of the noble metal in the
exogenic environment.

Platinum group minerals

The following mineral names and formulae of the PGM are kept in accordance with the proposals
given by Cabri (2002). All grains of PGM observed are either included in gold or inter grown
with gold and characterized by negligible sulfide contents and the association of gold with
predominant hematite and barite.

Calcite and quartz are the main gangue minerals accompanying the mineralization. The
particulate gold is silver and palladium-bearing and shows intergrowths with grains of a number
of PGM, all Pd compounds with metalloids like Sb, As, Te, Bi, and Se. Sperrylite and
merenskyite–moncheite are the only rarely observed platinum-dominated PGM.

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Regional Geological review of Serpentinites in Southern Quebec

Association of Gold with Serpentinites in the Bellechasse –

Chaudière area.

The association of gold with serpentinites within the area of interest is confirmed by
sampling at Eastern Metals and at Chute du Bras. Gold values in these prospects range
from trace to tens of grams per tonne.

There is an interesting apparent relationship between gold placers worked in the

Beauceville area and ultrabasic rocks within the drainage basin of the most productive
ones.

There is little other direct evidence reported in the literature, possibly because the
relationship has not been recognized. Neither is there any evidence that exploration for
gold has been specifically focused on the ultrabasic bodies and their contacts, although
both asbestos and nickel have been sought in the past.

Eastern Metals

Southeast of Québec, North and South zones at the former Eastern Metals mine,
discovered in 1949. Measured mineral resources stand at 354,345 short tons at 0.91% Ni
for the North Zone and 870,020 short tons at 1.52% Cu and 0.15% Ni for the South Zone.
In addition, encouraging Co, Au, Ag, and Cr grades, along with traces of Pt and Pd, were
discovered in altered ultramafic rocks. The best grades obtained from ore stockpiles left
on surface are: 79 g/t Au, 128.4 g/t Ag, 21.4% Cu, 1.8% Ni, 4.9% Zn, 0.59% Pb, 0.3%
Co, 0.13% Cr, 92 ppb Pt, and 182 ppb Pd.

GNH Claims and Known Exploration Data

During the last eight months Golden Hope has staked over 500 claims covering
serpentinite bodies in the Appalache-Chaudiere region. These present ten general targets
to be explored during the 2008 program.

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Existing exploration data: Chute du Bras, Rivière des Plantes.

Excerpts from Report by Daniel Duplessis, géol., M.Sc., March, 2000.

“Chute du Bras”

Introduction

L’indice de la Chute du Bras, situé en Beauce, a longtemps été considéré comme un

indice de nickel. La première mention de cet indice remonte a 1864 (Logan).

Des travaux ont effectués durant les années 1980, avec le but de trouver du platine, ont
démontré un certain potentiel pour le secteur.

Monsieur Richard Beaudoin, prospecteur, a effectué des travaux d’exploration durant la

saison 1998. Il a réussi à mettre à jour des valeurs aurifères spectaculaires, pouvant
atteindre plus de 20 g/t.

La minéralisation aurifère semble se situer en bordure d’un copeau de roches d’origine

ophiolitique, ce qui peut laisser présager un contexte de listwaenitisation pour cette
minéralisation.

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Le Mélange ophiolitique de la Rivière des Plantes est une bande de roches principalement
ultramafiques orientée nord-est sud ouest et que l’on peut suivre sur près de 25
kilomètres, entre le secteur de la Chute du Bras et le village de St-Odilon.

Gautier (1989) décrit l’indice de la Chute du Bras comme un amas de substitution dans
les serpentinites, ou listwaenites. Ce phénomène peut être porteur de minéralisation en
or, argent, cuivre, nickel, zinc, arsenic, et mercure. La minéralisation observée par
l’équipe de Gauthier consistait en pyrite, sphalerite, annabergite, chalcopyrite et galène.

Le fait que la minéralisation se trouve en bordure du copeau de roches ultramafiques est

aussi un fait significatif. En effet, cette bordure est caractérisée par une large et intense
zone de cisaillement probablement reliée a mise en place du copeau. Cette zone de
cisaillement a pu servir de “plombières” pour la circulation des fluides hydrothermaux
responsables de la listwaenitisation de la roche ainsi que de la mise en place de la
minéralisation.”

Magnetic Map - Chute du Bras serpentinite

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Exploration Program 2008

Most serpentinites have a distinct magnetic signature from which contacts and
dislocations of the contacts can be determined quite easily. This is useful considering the
general cover of bedrock by deposits of glacial origin in the Bellechasse – Chaudière
area.

Since there may be secondary structural control of alteration/mineralization, attention

must be paid to the detailed structural pattern as can be determined from regional and
local magnetic data, aerial photography, and ground-truth mapping.

The principal control of mineralization is structural. Therefore, close attention to macro

through micro structural features will be essential.

Base and precious metals follow carbonate alteration and silicification. Not all zones of
alteration are sufficiently mineralized to justify economic consideration, but as far as has
been determined, all mineralized zones of significance lie within carbonate altered and/or
silicified zones.

Field work will begin at the known mineral showings with the claims and then extend
along the observed/interpreted contacts, with special attention to areas of structural
disturbance that may provide favourable conditions for mineral accumulation.

Detailed exploration will depend to a large extent on surface conditions. Depending on

nature and depth of overburden, examination of favourable areas may involve stripping,
trenching, and bedrock mapping. If the overburden is too deep for these approaches to be
effective, studies of the glacial deposits followed by geochemical sampling, detailed
magnetic surveying, overburden drilling, or exploratory diamond drilling may be
required.

The justification for the exploration program lies in the gold mineralization observed
along the contacts of the serpentinites covered by the claims recently staked/acquired by
Golden Hope Mines Limited. The Company has an estimated 100+ kilometers of
serpentinite contact to explore.

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 • Serpentinite program will entail initial data collection and interpretation. (in
progress throughout the winter);

• The serpentinized intrusives will be mapped and sampled on a reconnaissance

scale with detailed follow-up on areas with positive results.

Data compilation of historical work programs on the serpentinites has consistently shown
geological setting favorable to Au mineralization. Assay results from these programs,
whether from drill holes or grab samples, show good or high grade gold.

Management has started its 2008 field exploration program with a focus on the
serpentinite targets. Drilling on selected targets should start early summer.

References:

Contr. Mineral. and Petrol. 23, 117--127 (1969)

AKIttO MIYASItII~O, FUMIKO StIIDO, and MAV~CE EWI~G
Lamont-Doherty Geological Observatory of Columbia University, Palisades, New York
Composition and Origin of Serpentinites
from the Mid-Atlantic Ridge near 24 ~ and 30 ~ North Latitude*

Miner Deposita (2006) 41: 549–564

Mustapha El Ghorfi . Thomas Oberthür .
Frank Melcher . Volker Lüders .
Abdelmajid El Boukhari . Lhou Maacha .
Rachid Ziadi . Hssain Baoutoul
Gold–palladium mineralization at Bleïda Far West,
Bou Azzer–El Graara Inlier, Anti-Atlas, Morocco

Serpentine Geoecology of the Appalachian and Ouachitan Orogen

E.B. Alexander (2007)

Rajakaruna et al.—Serpentine Geoecology

Serpentine Geoecology of Eastern North America: A Review
Nishanta Rajakaruna
College of the Atlantic, 105 Eden Street, Bar Harbor, ME 04609

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