The Company's 100%-owned Leckie Project is located approximately
three km north of the town of Temagami in northeastern Ontario and
straddles Highway 11. The property consists of a block of two patented
(surface and mining rights) and 10 unpatented mining claims covering
approximately 192 ha.
Two principal gold zones are present on the property. The No. 1
zone is a steeply dipping fracture system that has been intensely
altered by carbonates and quartz-rich fluids. Minor amounts of zinc,
silver and copper are also present. Grades average approximately
0.20 oz/t gold over 6 feet in this zone.
The No. 2 zone is much less explored and is located west of the
No. 1 zone. This zone joins with the No. 1 zone at depth and is
also intensely altered. The No. 1 zone has been traced down to a
depth of 750 feet. One of the better drill holes encountered a width
of 17.8 feet averaging 0.217 oz/t gold. Prospecting
has uncovered seven additional gold showings.
In 1996 Dr. Robert Morse, an independent technical consultant to the Company, calculated "probable ore" (as defined in former National Policy 2A ("NP 2A") of the Canadian Securities Administrators and equivalent to an "indicated mineral resource" under National Instrument 43-101 ("NI 43-101")) of 348,240 tons grading 0.203 oz/t gold and "possible ore" (as defined in former NP 2A and equivalent to an "inferred mineral resource" under NI 43-101) of 57,237 tons grading 0.173 oz/t gold for the property. These calculations were based on a cut-off grade of 0.10 oz/t gold, a minimum horizontal width of 5 feet and a density of 10.7 cubic feet per ton. The Company believes that these calculations continue to be relevant and reliable. However, insufficient work has been done by a qualified person to classify these historical estimates as current mineral resources under NI 43-101 and the Company is not treating these historical estimates as current mineral resources under NI 43-101.