EF EnergyFunders Ventures Inc V.EFV.H

Targets Identified

[Unkind]

Mengold Resources Inc. has provided the results of a 178-line-kilometre, helicopter-borne, Dream Catcher VTEM survey recently flown over the Burchell Lake property by Geotech Ltd. Over 13 conductive zones indicative of massive sulphide targets were identified in the survey. The 1,700-hectare Burchell Lake property is located in the Shebandowan area, 110 kilometres west of Thunder Bay, Ont. The VTEM survey is a time domain system used for locating conductive anomalies and mapping earth resistivities. Geotech has also provided Mengold with electromagnetic (EM) anomaly maps, total magnetic and second derivative vertical gradient maps, and digital terrain colour maps derived from the radar altimeter and GPS height. Most of the EM targets identified by the survey are spatially associated with high magnetic features which may represent fault structures found throughout the area. It is along the main Knife Lake fault, also referred to as the Burchell Lake fault, that most of the recent discoveries have been made in the Shebandowan camp, especially by Freewest Resources and the East West Resources-Mega Uranium joint venture. In the Burchell Lake area, disseminated to semi-massive sulphide-hosted volcanogenic massive sulphide (VMS) style and disseminated low-grade gold mineralization appear to be the most prospective targets for exploration. The VTEM survey results indicate that the Knife Lake fault appears to traverse almost the entire property from the southwest to the northeastern boundary. The second derivative magnetic maps imply that a crosscutting fault in the south-central part of the property transects the Knife Lake fault. Most of the previous drilling was conducted in this general area where the two faults crosscut each other. One of the historic holes drilled by Belore Mines in 1976 returned 96 metres of 0.23 per cent copper near the intersection of these faults. Typically, very few samples were assayed for gold, but where sampled, assays returned grades of one to 1.5 grams per tonne gold. The EM signature is not very strong along the Knife Lake fault, however it is significant as it could represent an area of disseminated to semi-massive base metal mineralization with low-grade gold values. The EM anomalies in the central part of the property can be traced for an intermittent length of approximately 5.5 kilometres and may be part of what has been referred to as the Upper Shebandowan Lake shear zone. This shear zone comes to within 400 metres of the Knife Lake fault and this area represents an excellent drilling target. A crew is now being assembled and the exploration program for the coming field season is being planned. A significant portion of the property is overlain with basal tills up to 50 metres thick. Some selective grids will be cut and surveyed using induced polarization (IP) to detect disseminated sulphides. The best target areas will then be tested with a diamond drilling program. Geotech is currently modelling several of the best conductors on Burchell Lake property to determine thickness, depth and dip. This information will assist in planning the diamond drilling program. The qualified person supervising the work being carried out on the Burchell Lake and Goldcreek properties is Joel Scodnick, PGeo, a consultant to Mengold Resources Inc. and the president and chief executive officer of Helm Exploration Ltd.