Overview

D’Arianne Resources Inc. (TSXV:DAN) is an active Quebec-based mining exploration company with gold, base metals and industrial mineral projects in Quebec (Canada) and Mexico. The phosphorus and titanium deposits of Lac à Paul, Quebec constitute the leading project of the company and are among the biggest of this type in the country.

D’Arianne owns or has an option to acquire various properties located mainly in Quebec but also in Mexico via its subsidiary company, Minera Ariana Inc.

Investment Highlights

• In Canada, only the Kapuskasing mine (Agrium Inc.) produces phosphorus. The Lac à Paul project is a very interesting alternative to meet anticipated phosphorus needs.
• Arianne Resources Inc. has been exploring the James Bay territory since 2005 and has three properties at different stages of exploration.

Chief Properties

Lac à Paul

D’Arianne Resources Inc. has 100% interest in the Lac à Paul Project, developed under the subsidiary company Canada Phosphate Inc. The company is currently conducting metallurgical tests to evaluate the titanium’s economic impact on the Lac à Paul deposit and says they expect their mine will start up in 2014. At the moment, the only Canadian phosphate mine in operation is based in Kapuskasing and operated by Agrium. The mine is expected to gradually lower production until complete shutdown around 2015.

Located approximately 200 km north of the town of Saguenay in the Saguenay-Lac-St-Jean region, Quebec, Canada, the Lac à Paul property includes 271 map-designated claims. The property covers an area of more than 150 km².
The property is easily accessible via the Chute des Passes road from the village of St-Ludger de Milot. It is a gravel road used to transport outsize loads of timber by various logging companies. The road also provides access to Rio Tinto Alcan and Hydro-Québec power stations. An established rail network (Dolbeau-Mistassini) and the deep-water port of Grande-Anse in Saguenay lie within a radius of 235 km of the property. Several lakes and rivers can provide the water necessary to supply the ore processing mill.

A scoping study was conducted by IOS Services Géoscientifiques inc. in 2010, covering only part of the resources of the Lac à Paul deposits – the Paul Zone. For economical reasons Canada Phosphate expects operations to start initially on the Paul Deposit (high grade) moving to the other deposits in later stages. The study predicts 1.92 million tons of phosphate concentrate (apatite) from the deposit per year, with CAN$721 million total net revenue over 13 years mining life with actual resources including ramping up (3 years). Titanium resources were not considered in the scoping study even though they could have added 20-40% in revenue.

Opinaca Property

The Opinaca property is 100% owned by D’Arianne Resources, located just south of the Opinaca reservoir in Quebec, Canada. The property is contiguous to the Company’s Lac H property. Since 2006, 84 holes have been drilled primarily on the Contact Zone, Chino, Isabelle, Bull and Aïeul showings. These showings are located near a volcano sedimentary contact. The first four showings are located on either side of the Acotago Fault. The mineralization occurs in the form of gold-bearing quartz veins and quartz-carbonate stockwork. In 2009, a new showing with 28.3 g/t Au was discovered along the Acotago Fault, 1.5 km south of previously identified mineralized zones.

Lac H Property

The Lac H property is jointly owned by D’Arianne (50%) and SOQUEM (50%). The property is located 380 km north of Matagami, James Bay, Quebec, along the extension of the gold-bearing corridor of the Opinaca Property (wholly owned by D’Arianne Resources Inc.) where a sample grading 1.8 g/t Au and 0.28% Cu was taken on the property near this contact.

It also hosts the Lac H Volcanic Complex (LHVC). Two years of exploration and 14 mechanical stripping sites within the LHVC brought to light a hydrothermal system highly prospective for the discovery of volcanogenic massive sulphides. At several locations, pyrrhotite-pyrite-bearing massive sulphide horizons have been discovered, as have major volcaniclastic units with numerous massive sulphide clasts. Zones of intense hydrothermal alteration have also been identified and a pillow breccia with a pyrrhotite-pyrite-chalcopyrite matrix was revealed by stripping. Many InfiniTEM anomalies remain unexplored.

El Rey property

In 2007, Arianne Resources Inc. optioned the El Rey mining property located in the state of Sinaloa in Mexico—the world’s largest silver producing country. In 2008, Arianne enlarged the property by surrounding it with new claims. A diamond drilling program totaled 1,114 m in 9 holes and was held during March of 2010. This campaign was designed to test the potential of a known gold-silver structure and to better define the geological context of the property and explains several geophysical anomalies.

The El Rey property is located 60 km north-northeast of Mazatlán, just south of the village of Coyotitan. It is easily accessible via Highway 15 and covers an area of 453 hectares. The rocks observed on the property are mainly volcanics of intermediate to felsic composition of the Tertiary Period. The gold and silver mineralization occurs in veins and stockwork. In addition, a highly silicified and argilitized zone lies west of the old mine. According to the metallogenic model proposed (Low-Sulphidation Epithermal System), this alteration zone could correspond to the silica and clay cap formed above the mineralized zone.

Management

Bernard Lapointe (Director and President) holds a B.A. in Geology from the University of Quebec at Montréal (1980), a Masters degree in structural geology from the University of Quebec at Chicoutimi (1984) and a PhD in mineral resources from the University of Quebec at Chicoutimi (1996). He is currently CEO of Arianne Resources Inc., a public issuer. Previously, he was Director of the Saguenay-Lac-Saint-Jean Mining Fund from 1993 to 1998. From 1988 to 1993, he acted as a geochemist analyst for the Centre for Research in Mineral Resources of the University of Quebec at Chicoutimi. From 1980 to 1987, he was consultant for different mining exploration companies and for the Department of Natural Resources. While working for the Department, he discovered the gold showings West of Schefferville, for which he won an award in 1986. He also did an internship at the Institut National de la Recherche Scientifique (INRS-Géoressources). Mr. Lapointe has also been teaching since 1981 and has been published on numerous occasions.

Marco Gagnon (Director) is a graduate in geology from the University of Québec at Chicoutimi, and is a senior mining exploration professional with 20 years experience, mostly with major mining companies. Mr. Gagnon is President and CEO of Adventure Gold Inc. (TSX-V: AGE), a Montreal-based publicly-traded gold mining exploration company. As well, Mr. Gagnon was one of the founders and former President and CEO of Focus Metals Inc., an Ottawa-based mining exploration company also trading on the TSX venture (FMS). He now acts as technical advisor and still sits on the board of Focus Metals. From 2004 to 2007, Mr. Gagnon was Vice-President Exploration and Acquisitions for Société d’exploration minière Vior Inc., a Quebec-based mining exploration company. He also worked with Inmet Mining Corporation, Barrick Gold, Minnova and Radisson Mining Resources. Mr. Gagnon was President of the Quebec Mining Exploration Association from 2007 to 2009 and still sits on the board of directors.

Jim Cowley (Director) is a Metallurgical Engineer with an MBA in Finance. He has worked in various roles from Mill Metallurgist(uranium) to Financial Manager/Business Development (molybdenum, gold and copper) to VP Sales, Marketing and Distribution (copper, gold, molybdenum, sulfuric acid) for companies such as Exxon, Climax Molybdenum (AMAX), Bond International Gold and Rio Tinto. He is currently a full time consultant and employee of Ocean Partners USA and is based in Utah, USA.

Me Denis Belisle (Director and Secretary) was received at the Quebec Bar in 1984. Since then, he has held various management positions with different organizations. Since 1996, he is the General Manager of the legal department, Human Resources and Secretary-General of Tele-Quebec. He has been an administrator of the company since 2001.

Luc Boivin (Director, C.F.O by interim) studied in administration at the University of Québec in Chicoutimi and is currently vice-president of finances and marketing of Fromagerie Boivin (Boivin Cheesemakers), a regional leader in milk processing. He is also the chairman of the Technologie Biolactis Inc. (Biolactis Technologies Inc.) board of directors, a young business developing whey processing. M. Boivin also serves on different boards of directors including Promotion Saguenay.

Alain Vachon (Director) is a geologist with more than 30 years of experience in the mining industry. He has worked for Exploration Noranda, Barrick and with Rouyn Mining Resources where he was chief geologist of mining operations. During the last 12 years, he worked mainly in Peru with Sulliden, Gold Hawk and Paramount Gold where he acquired a solid experience in low and high sulphidation, skarn and porphyry epithermal deposits and, where he also developed an extensive network of international contacts.