Exploration Results

The exploration target on the Gordon Lake property is shear hosted en echelon zones of gold mineralization similar to the Yellowknife Mining District.

Gordon Lake Exploration Results:
The Gordon Lake property including Mineral Lease 3123 covering approximately 6,000 acres has been explored on a limited basis for the past 60 years.

The historical estimate for the three veins drilled (based on channel and drill core samples) using a 4.0 g/t cutoff is set out below:

This historical estimation does not conform to CIMM standards as set out in National instrument 43-101 and has not been verified or audited by an independent Qualified Person as that term is defined in National Instrument 43-101 and its companion policies.  There has been insufficient exploration to define a mineral resource on the Property. The historical estimate is relevant but should not be relied upon.

Description and Land Status:
The Property is subject to the following encumbrances:

1. Kelman Technologies Inc. (“Kelman”) has a carried 10% working interest in the Property until a decision is made to place the Property into production, and
2. Kelman has a sliding scale royalty on gold production as follows: <$US260.00 per troy ounce a 1.0% royalty, $US260.00 - $US299.00 per troy ounce a 1.5% royalty, $US300.00 - $US349.00 per troy ounce a 2.0% royalty, $US350.00 - $US 399.00 per troy ounce a 3.0% royalty and >$US400.00 per troy ounce a 4% royalty. 

In addition to the recorded production of 13 million ounces that has been produced from the Giant and Con mines in the Yellowknife district, the recorded gold production for some the other gold deposits in the Yellowknife district are set out below:

The average grade for these gold mines is presented in imperial measure to provide ease of correlation with published data.

Exploration Results:

Two parallel northeast trending shear zones are interpreted to cross the property.   The first shear zone hosts a minimum of 16 zones of gold mineralization.  The second shear zone located  200 metres west of the first shear zone hosts the Syn Zone, a zone of high-grade gold mineralization in quartz veins located approximately 1.4 kilometer southwest of the Union zone.

5.3.1 Introduction:

The 16 zones of gold mineralization located to date in the Ven Shear Zone occur over a strike length of 1.0 kilometer. Gold mineralization occurs in dark-gray quartz veins, quartz stock work and in silicified zones over widths ranging from 1 to 10 metres. The gold grade within these zones is erratic (< 1.0 g/t over 1.0 meter to a maximum of 243 g/t over an interval of 0.7 metres).  Shoots (>15 g/t) of high grade gold mineralization typically occur within a larger zone of lower grade (2 – 5 g/t) gold mineralization within the mineralized zones. 

South Zone:
This zone is located approximately 400 metres south of the Main Zone. Five northeast trending, vertical to steeply dipping, 0.3 to 10 metre thick gold bearing quartz veins and quartz stock work have been located to date.  A brief description of the No. 9 vein, the largest and most explored target in the South zone is set out below. 

No. 9 Vein:
This vein has been traced on surface for a distance of approximately 140 metres.  Channel sampling returned medium to low-grade gold mineralization over narrow intervals (< 1.00 meter) on surface. The stock work at the north end of this vein returned 5.73 g/t gold over an interval of 1.0 metre. The gold mineralization is interpreted to be open along strike to the north and south.  

Drilling intersected two high-grade shoot of gold mineralization that range from 40 to 60 metres in length and has been drill tested to a depth of 205 metres.  The mineralized zone is open below the 205 metre depth. All holes within these high-grade shoots show variable concentrations of visible gold. The weighted average grade of the drill holes is set out below:

Diamond drill hole 88-71 located outside the limits of the high-grade shoot contains visible gold suggesting that the high-grade gold mineralization extends south toward the S vein. Diamond drill hole 88-67 and DDH 88-76 exhibit visible gold in the core suggesting a possible extension to the north. 

Veins No. 5, 6-7 and 8: 
These veins are located approximately from 20 to 40 meters west of the No. 9 vein. The No. 6-7 veins are the most continuous and auriferous of the four veins and have been traced in outcrop for a distance of 40 meters before they disappear under overburden.  Weighted average assays for the diamond drill holes completed are:

The gold mineralization in these veins is open at depth and along strike. The assays for hole 83-31 were generated using the standard sample preparation technique.

Drilling on the No. 5 and No. 8 veins intersected significant gold mineralization over variable widths with the highest intersection being 9.4 g/t gold over a core interval of 4.4 metres. The gold mineralization in these two veins is open along strike and at depth.

Main Zone:
The Main Zone consists of four sub-parallel 0.1 to 7.0 metre thick, steeply east dipping (55 – 65”) gold bearing quartz veins and quartz stock work zones. 

The No. 1 vein has been traced over a distance of 200 metres and drill tested to a vertical depth of 150 metres. The length and thickness of the mineralized zone within this vein has not been established.   The weighted average grades of channel samples collected over a 40 metre interval of this vein where exposed are:

The weighted average grade of the channel samples is 29.31 g/t gold over an average width of 2.21 metres. The two samples of quartz stock work from this vein returned 2.28 g/t over 0.8 metres and 1.81 g/t over an interval of 0.90 metres.

Diamond drilling on the this portion of the No. 1 vein intersected high-grade gold mineralization with a minimum thickness of 2.10 metres, a length of 40 metres and a depth of 35 metres.  Many of the holes completed in 1988 were located to the northeast of the high grade zone, away from the interpreted plunge of the mineralization.  Visible gold occur in DDH 88-47, DDH 88-50 and DDH 88-51 which suggests that the gold mineralization (including high-grade mineralization) is open at depth.

The No. 2 vein has been tested over a distance of 100 metres and to a vertical depth of 80 metres. The best intersection to date on this vein is 3.0 g/t gold over an interval of 2.0 metres.

Union Zone:
The Union Zone located 400 metres south of the No. 9 vein consists of two quartz veins.

The North vein is exposed for a distance of approximately 40 metres and ranges in thickness from 2 to 8 metres which includes a thick footwall quartz stock work that has not been sampled.  The weighted average grade of the channel samples from the North Vein is 10.91 g/t gold. The maximum gold grade is 35.50 g/t over a 1.00 metre interval.  A 3.0 metre channel sample of quartz stock work in the central portion of this vein averaged 17.65 g/t gold. 

The length and width of the gold mineralization in the North vein have not been defined due to insufficient sampling across the width of this vein and overburden cover.  The weighted average grade of the channel samples and comments is shown below:

The East vein of the Union Zone consists of a thick east - west trending dark-gray to black quartz vein. Channel sampling of this vein returned low-grade gold mineralization with a maximum of 3.0 g/t over 1.0 metre.

The North vein has been drilled to a depth of 50 metres with the best intersection being 4.50 g/t gold over a 5.0 metre core interval.  The weighted average gold grade of the drill holes in the North vein of the Union zone is set out below:

Other Mineralized Areas:
Six other areas of quartz veining and quartz stock work have been located. These zones are exposed intermittently due to overburden.  Exploration consisted of limited mapping and several wide spaced channel or grab samples.  A brief description follows:

S2 Vein:  
This vein where exposed is approximately 25 metres long, up to 3 metres wide and is located 75 metres south of the No. 9 vein. A grab sample of this vein returned 55.4 g/t gold.  One drill hole completed into this vein failed to intersect the quartz vein at depth. No additional work has been completed.

Syn Vein:
This zone of quartz veining is 1,400 metres southwest of the Union zone and is interpreted to occur on a different shear zone.  This zone is exposed intermittently over a distance of 400 metres and individual quartz veins exhibit strike lengths of 100 metres and range in thickness from 0.3 to 3.5 metres.  A chip sample of a 40 metre section of one of these veins returned 13 g/t gold over an interval of 1.5 metres.  This zone has not been explored.  

Navel Vein:
This vein system is poorly defined and occurs between the Road Vein and South zone.  Thin quartz veins and quartz stock work have traced for a distance of 70 metres (due to overburden cover).  Grab samples from a 0.20 metre wide vein returned gold values of 4.7 g/t and 13.4 g/t. This zone has not been explored.

BLT Zone:
This zone of quartz veining and quartz stock work occurs within a deformation zone that has been traced for a minimum distance of 350 metres on surface. Some of the quartz veins within this zone are up to 4 metres wide.  The few grab samples that were collected from this zone returned background gold values.

Camp Vein:
This vein has been traced over a distance of 100 metres and is up to 3 metres thick. The vein is located 150 metres east of the Main Zone. Three grab samples over a distance of 50 metres assayed 38.9 g/t, 22.5 g/t and 17.5 g/t gold. Three channel samples assayed 14.50 g/t over 0.80 meters, 28.40 g/t over 0.20 metres and 7.60 g/t gold over 0.60 metres. The weighted average grade of all the samples taken from this vein is 23.14 g/t gold.   This vein has not been explored.

Road Veins: 
This series of poorly exposed quartz veins have been traced from the No. 2 vein on the Main Zone to the No. 9 vein on the South Zone. Individual veins where exposed are up to six metres thick and 75 metres long.  Limited chip sampling yielded a maximum value of 5.4 g/t gold over an interval of 2.0 meters. No systematic exploration has been conducted on these veins. 

Mineralogical Studies:
Gold occurs as irregular flakes and aggregates in quartz veins and discrete specks filling micro fractures along grain boundaries.  The gold grains range in size from 200 to 2000 (generally < 500) microns.

The composition of the quartz vein material ranges from 50 - 95% quartz, up to 30% plagioclase, up to 9% combined sericite-chlorite and up to 10% combined sulphide (arsenopyrite, galena, sphalerite, pyrite, chalcopyrite, pyrrhotite and marcasite) minerals. The dominant sulphide minerals are pyrite, pyrrhotite and arsenopyrite that make up from 1% to 5% of the vein material. Trace amounts of of ilmenite and rutile occur within the quartz vein material and wall rock.  Trace amounts of tetrahedrite occur in the vein material.

The alteration, vein composition and mineralogy are similar to that which hosts the gold deposits in the Yellowknife Mining District.

HISTORICAL ESTIMATION:

The historical estimate was calculated using the longitudinal sections of the mineralized veins and a polygonal block method.  Polygons included all material to the midpoint between adjacent holes.  The historical estimation was completed using a 15 metre search radius, a 2.70 tonnes/cubic meter density, and a 4.0 g/t cutoff over a minimum distance of 1.5 metres.  The historical estimate is set out below.  This historical estimation do not conform to CIMM standards as set out in National instrument 43-101 and has not been verified or audited by an independent Qualified Person as that term is defined in National Instrument 43-101 and its companion policies.  There has been insufficient exploration to define a mineral resource on the Property. The historical estimate is relevant but should not be relied upon.