| MOUNT SKINNER GOLD PROJECT SUMMARY |
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| Located in central British Columbia 225 km west of Williams Lake by road, the 36 cell (721 ha) Mount Skinner property hosts a one mile long system of en-echelon intrusive-hosted shear-controlled gold-quartz veins and lenses. To date, less than 10% of the system strike length has been investigated by drilling, trenching or underground development. The property was discovered in 1990 during a regional geochemical survey conducted by Ottarasko Mines Ltd, the current owner. Work to date consists of prospecting, geological mapping, geochemical and geophysical surveys, hand and mechanical trenching, diamond drilling (15 holes totalling 939 metres), and underground development and bulk sampling (773 tons of ore averaging 1.674 oz/ton Au) |
| Cumulative exploration expenditures of approximately $800,000 between 1990 and 1996 were essentially all made on the Victoria Vein, situated at the extreme western part of the gold system. During the current phase of the project the near-surface drill-indicated resources of the Victoria Vein will be mined and shipped to either a custom mill for processing by cyanidation, and/or to a smelter as direct feed. (Both techniques were tested in 1995-1996 with very satisfactory results). It is expected that in this first phase 3700 ounces of gold will be recovered from approximately 2300 tons of ore. At current prices for gold, expected total income from this phase will be at least $ 6M, and total expenses (including the cost of processing at a custom mill or smelter) will be between $2.5M and $3M, for net returns of more than 3 million dollars. |
| The Victoria Vein is open at depth, and the entire one mile long gold system has only been tested by drilling/trenching over 10% of its length, so that the exploration potential of the property is very good. Extensive additional drilling along the system strike length and at depth, financed partly or entirely by the net returns from bulk sampling, will give the full scope of this project. |