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Overview | Objective | Background | Geology and Mineralization | Mineral Resources 2008-11 Program | 2012 Program and Future | QA/QC Project Overview
Objective The Lebel property which hosts the Bidgood deposit forms part of the Company’s goal to advance five gold properties (Upper Canada, Upper Beaver, McBean, Anoki and Bidgood) towards production employing a central mill complex. This property has the potential for both open pit and underground development, in 2011 the Company released a NI 43-101 compliant report on the resource estimate the Company will continue its definition drilling program throughout 2012. 
The Lebel Property was acquired as part of an overall acquisition of Vault Minerals Inc. in April, 2010 and consists of collection of several individual properties consisting of 31 patents, 19 mining leases, 22 staked claims and 3 Licences of Occupation. The Bidgood mine historically produced 165,000 ounces of gold from 1934-51 at a recovered grade of 9.2 g/t Au. Since the closure of the Bidgood mine, intermittent individual drilling efforts were completed on individual claims and properties. The Moffat Hall area of the property was originally staked in 1917 and 1918 by F.C. Bidgood and subsequently optioned to McIntyre Porcupine Gold Mines (later Moffat Hall Mines Ltd.) in 1928. Moffat Hall sank a 2-compartment shaft to 550 ft. in 1931-32. Approximately 2800 ft. of lateral workings were put in at the 150’, 300’, 425’ and 550 foot levels. The mine closed in 1932. At the adjoining Bidgood Kirkland Gold Mining property, 3 shafts and extensive underground workings were installed. In 1934-35, Bidgood-Kirkland leased the Moffat Hall property and mined ore via a raise from Bidgood-Kirkland's 500 foot level to Moffat Hall's 425 foot level. In 1954 Upper Canada Mines Limited completed additional trenching and drilled 12 holes. In 1967, Consolidated Virginia Mining Corporation carried out linecutting and rejuvenated and re-sampled old trenches, followed by 6 diamond drill holes. The Moffat Hall property was staked by Mr. O'Connor in 1979 and optioned by ENR Partnership which was absorbed by Silver Lake Resources Inc. In 1981, work done by Silver Lake included linecutting, magnetic, VLF-EM, IP surveys and diamond drilling of 43 holes near the Moffat Hall Mine, Blue Vein and Bidgood Break. In the late 1980’s the property was explored by International Platinum. In 2005, after uniting individual properties into what is now the Lebel Property, regional style exploration programs were initiated.
Property geology consists of Timiskaming-aged sediments, volcanic tuffs & trachytes, diorite, feldspar & quartz feldspar porphyry and basic syenite to syenite porphyry intrusives. Mineralization consists of pyrite+gold, free gold, silver, molybdenum and telluride in high strain ductile to brittle fault-shear-fracture systems.  Mineral Resources In 2011 the company released initial NI 43-101 compliant open-pit mineral resource estimate for the Bidgood deposit on the Lebel property (see press release October 17, 2011). The estimate was prepared in accordance with NI 43-101 by P&E Mining Consultants Inc. of Brampton, Ontario. Table 1: Bidgood and Boundary In-Pit and Underground Mineral Resource Estimate
(1) Mineral resources which are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues, although the Company is not aware of any such issues. (2) The quantity and grade of reported Inferred resources in this estimation are uncertain in nature and there has been insufficient exploration to define these Inferred resources as an Indicated or Measured mineral resource and it is uncertain if further exploration will result in upgrading them to an Indicated or Measured mineral resource category. (3) The mineral resources in this press release were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council. (4) Grade capping of 7 g/t was utilized on raw assays for Boundary, 15 g/t for 20 Vein, and 22.5 g/t for the rest of Bidgood. (5) A bulk density of 2.87 t/m³ was used for all tonnage calculations. (6) A gold price of US$1,300/oz and an exchange rate of US$0.98 US=C$1.00 was utilized in the Au cut-off grade calculations of 0.42 g/t for open pit and 2.3 g/t for underground. Open pit mining costs were assumed at C$3.00/t for mineralized material, C$2.50/t for waste rock and C$1.75/t for overburden, while underground mining costs were assumed at C$75/t, with process costs of C$12/t and G&A of C$5/t. Process recovery was assumed at 95%. (7) Values in the table may differ due to rounding. (8) The area of influence of the indicated category is 20m up/down dip, 15m along strike, and 10m across dip from a known sample point (drill holes), with a minimum 2 drill holes and max of 20 samples; other blocks within the hard-wireframe/ constrain are coded as inferred. (9) The open pit resource is reported within a Whittle optimized pit shell
In late January 2008, Vault commenced an eight-hole drill program on its Gordon-Lebel section of the Lebel property in an area situated along the northeastern strike extent of several gold-bearing structures, including projected structures from the former-producing Bidgood #2 gold mine. The initial 1,500 m program tested the Boundary Zone, where prospecting identified several strongly-altered, mineralized shear zones. Also in 2008 pursuant to the terms of a 2006 option agreement, Goldcorp Canada Ltd. ("Goldcorp") began a 4,500 m diamond drill program on the Lebel property. Existing high-grade drill intersections and surface channel samples that returned: 95.1 g/t over 2.7 m, 124.8 g/t over 0.2 m, 14.1 g/t over 1.0 m, and 30.6 g/t over 1.3 m, while those representing open-pit potential include: 1.0 g/t over 36.5 m, 3.3 g/t over 10.2 m, and 1.4 g/t over 21.3 m. Drill holes LB08-35, -36, -38 and -42 discovered a fault horizon on the Lebel property interpreted to be the eastern extension of the prolific Kirkland Lake Main Break that produced over 24 million ounces of gold. The fault is, for the most part, located proximal to the northern edge of a large porphyry mass and is characterized by breccia-gouge texture, silica-hematite-sericite-chlorite alteration, fracture-filled quartz and occasional pyrite-chalcopyrite mineralization. The former-producing Bidgood Mine (165,000 oz Au), which is located in the northeast extent of the property, is now interpreted to be situated on splays of this structure. This interpretation provides a significant primary target horizon, extending 4 km through the property requiring considerable exploration follow-up. Drill hole LB08-35 intercepted two broad zones of up to 80% quartz flooding in a porphyry host and that returned 0.52 g/t Au over 17.8 m (456.2 to 474 m) and 0.83 g/t Au over 11.5 m (530 to 541.5 m). Sections of malachite and occurrences of chalcopyrite in fractures were observed. This strong hydrothermal system is very analogous to outboard quartz flooding observed in drill hole LB07-22 peripheral to the former-producing Bidgood Mine. Drill hole LB08-36, located 100 m to the northeast of LB08-35, intercepted a shear zone returning 1.47 g/t Au over 3.0 m and may represent a related structural horizon. Drill hole LB08-40, located 700 m to the southwest of LB08-35, intersected an 8.7 m breccia zone from 154.5 to 163.2 m having up to 25% pyrite mineralization and returning 0.48 g/t Au over 4.5 m. In November 2009 the option agreement with Goldcorp expired and Vault retained 100% of the Lebel Property. In early 2010 exploration efforts concentrated on resource definition drilling at the Bidgood South and Boundary Zones. The Bidgood South Zone mineralization has the potential for both an open pit and narrow grade mining methods. The Bidgood Mine itself contains multiple mineralized splay structures associated with the Bidgood Main and North Breaks. During recent drill campaigns, other new zones have been discovered beyond and between the Bidgood Main and North Breaks. Outside of the Bidgood Mine, at least fifteen existing additional gold target horizons remain to be tested including; Blue Vein Zone:
The South Zone veins that were previously developed with limited mining from the 46 m to 91 m levels have been drilled at 10-20 m centres. The new drilling has been successful in extending the #1 and #2 Veins to the northeast. The South Zones display excellent continuity with dimensions of 230 metres horizontal (formerly 100 metres) by 150 metres vertical with mineralization remaining open along strike and to depth. With a view for testing the potential for an additional open pit target, the #20 Vein, located 30 m north of the South Zones was the focus of seven holes. Six holes were completed targeting the South Zone to depth. The first five holes were drilled west of the east-plunging mineralization. This new zone remains open along strike and to depth. Drilling also targeted the North Zone on 20 m centres in the vicinity of previously-released hole BG10-52 that had intersected 5.26 g/t Au over 6.75 m, including 15.94 g/t Au over 1.5 m. Also in the North Zone further sampling of previous hole BG10-03 revealed an interval assaying 0.80 g/t au over 15.19 m where deeper in this hole a previous high-grade interval of 19.51 g/t Au over 5.20 m was reported. The North Zone remains open to the northeast and to depth. Nine drill holes targeted the Boundary Zone, located 1,000 metres east of the Bidgood Mine. These were intended to extend the 200 metre strike length of the known mineralization above and below previous drilling. The Boundary Zone comprises two sub‐zone vein systems; the upper Perreault and lower Robert. The Perreault vein outcrops on surface and ranges from 6.7 to 25.1 m thick comprised of 3‐20% coarse disseminated pyrite in silicified and altered porphyry and sediments. The Robert vein system is sub‐parallel, approximately 20 m below the Perreault zone and is discontinuous. The Robert zone is generally narrower, reporting widths of less than 1 m containing previously-released high grades. The Boundary Zone remains open to the west and to depth. Thirteen holes were completed in the vicinity of Mud Lake located approximately 1,000 m west of the North and South Zones. This drilling focussed on testing both historic mineralization and a broad quartz-stockwork zone located east along the structural corridor that hosts the Bidgood mine sequence. Previous drilling from this area in 2008 discovered the King Quartz Stockwork Zone that has been traced over 1,600 m and up to 114 m wide containing anomalous gold and copper values.
In 2012 the Company’s budget for the Bidgood property is approximately $2.8 M. It will focus on further exploration to both expand the existing limits of the deposit as well as test new targets that display similar Bidgood geological and geophysical signatures. The 2012 work plan includes the base line studies and permitting activities.
The design of the Queenston’s drilling programs, Quality Assurance/Quality Control and interpretation of results is under the control of Queenston’s geological staff including qualified persons employing a QA/QC program consistent with NI 43-101 and industry best practices. The Lebel (Bidgood) project is supervised by Queenston Senior Geologist, Dan McCormack, P.Geo. A detailed review of Queenston’s QA/QC procedures is filed in the 2011 Annual Information Form on SEDAR.
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