To date, drilling in Zone 1 has intersected copper mineralization in an area approximately
700 metres by 100 metres in dimension and to a depth of 300 metres. The Company has
completed seven additional drill holes on the property and results are pending.
David Blann, President and CEO of the Company states “Zone 1 contains copper
mineralization from surface and drilling continues to intersect grades that are positive at
depth and remain open in extent. We have also drilled approximately 400 to 500 metres
further south of Zone 1 and intersected copper mineralization that clearly expands the
potential for this area. Drilling started in April, and will soon be finished for the year. The
progress this year has been very positive. Our experience with the exploration success in
finding two new copper zones and the on-going surface work indicate there is excellent
potential to develop several copper deposits and for more discoveries here”.
The Company has also received positive results from additional prospecting and stream
sediment sampling in areas of the property that remain untested by drilling.
Approximately 500 metres northeast of the Company’s 2010 drilling in Zone 2, four outcrop
grab samples in an area of approximately 200 by 300 metres in dimension have returned
0.05%, 0.08%, 0.41%, and 3.21% copper. These samples are from mineralized structures
believed to originate and form part of Zone 2. Drilling in Zone 2 has intersected positive
copper and molybdenum and locally rhenium, gold and silver values in an area
approximately one kilometre by 600 metres in dimension. (Refer to News Release dated
September 8, 2010).
Approximately 1.5 kilometres to the southwest of Zone 1, samples of quartz vein material
have returned values of 3.34%, 1.74% and 1.04% copper and up to 0.021% molybdenum,
and 5.78 g/t silver. Eight stream sediment samples in this area have confirmed previous
positive results of 887 ppm (parts per million) to 1625 ppm copper and expanded the area
of interest. New sampling has returned 190 ppm to 776 ppm copper including 414ppm and
592 ppm copper and 1.74 to 29.4 ppm molybdenum from several stream tributaries. This
area is underlain by favorable Bethsaida phase intrusive rock and an induced polarization
geophysical anomaly approximately 800 by 600 metres in dimension that is thought to
represent a very prospective untested target.
In the southern portion of the Rateria property, the Sho claim covers an area
approximately two by three kilometers in dimension and is within an important regional
magnetic low believed to map out the younger and more productive phases of the Guichon
batholith. This prospective area also occurs near the intersection of the east-west trending
Skuhun Creek and north-south trending “Corridor” fault. The regional magnetic and
structural setting is similar to that occurring near the major mines in production to the
north. The Company has not conducted a significant amount of work in this area to date.
The main Sho prospect is part of a larger mineralized structure that has been previously
trenched by the Company. Here, systematic chip sampling covering approximately 15
metres by 4 metres in dimension averaged 1.49% copper and 8.4 g/t silver. In 2010, the
Company continued prospecting approximately 400 metres to the south of the trench.
Rock sampling has outlined a northwest trending mineralized zone for over 250 metres in
length and 50 to100 metres in width that remains open in length and width. Twelve grab
samples of mineralization within this zone returned from 0.20 to 2.84% copper and up to
12.8 g/t silver. Seven samples contain from 0.05 to 0.11 g/t gold. Seventeen (17) widely
spaced stream sediment samples on this claim have returned values from 33.7 to 427 ppm
copper, with nine sample greater than 250 ppm copper and four samples greater than 400
ppm copper. One silt sample located 200 metres downstream of the Sho trench returned
33,900 ppm (3.4%) copper, 68.9 ppm molybdenum and 4.09 g/t silver. Historical silt
sampling results include values of 452ppm, 496ppm, 524ppm, 575ppm and 951ppm
copper. Together, these stream sediment and rock sample results are thought to be very
positive for porphyry copper exploration, and this large area has not had systematic
modern induced polarization (IP) geophysical surveys completed. The Company is very
encouraged with the results from this under explored portion of the Rateria property and
further exploration is planned.
To date, the Company has discovered two significant new copper zones and continues to
identify several new, large scale targets within a mining district that has generated
Canada’s largest copper producer for over 25 years.