Deaty Creek

The 79 claim unit Deaty Creek property covers a 5.2km long section of mineralization and brecciated volcanics that extend northeast from the Hamlin property. The claims cover a section of the Knife Lake Fault, which is a prominent regional, deep-seated structure with associated ultramafic rocks. The faults full importance is unknown at this time but is adjacent to extensive breccia zones that carry copper-gold-silver and molybdenum mineralization. Mapping and initial drilling which was completed in January 2006, shows gold associated with pyrite, magnetite, chlorite, epidote, and pink hematite alteration. Copper and molybdenum are associated with the gold mineralization.

An extensive grid has been line cut followed by an induced polarization and magnetic survey and detailed geological mapping in 2005. A large part of the property was re-flown with the time domain helicopter EM survey in 2005 using a larger 26 m diameter loop than was used in 2003 (18 m loop). A number of IP chargeability anomalies and breccia zones were located, indicating disseminated sulphide zones in shears. One breccia zone had been previously identified to contain 0.85 g gold/tonne over 78 feet (23.8 m). Gold assays obtained in the first two drill holes on this zone (DC-06-01 and DC-06-02) ranged from 0.2 – 7.0 g gold/tonne, over an 85m core length. Drilling was carried out from January to April 2006 with the completion of 18 drill holes (DC-06-01 to DC-06-19 with one reserved for a target near line 51E). Trenching and surface sampling was done throughout the winter into June 2006 where several new sulphide zones were exposed and sampled yielding gold values associated with sheared felsic volcanics and magnetite-epidote-pyrite alteration zones. As a general observation, breccia zones with magnetite occur in Deaty as hydrothermal breccias, and differ from the Hamlin roof pendant style. Magnetite appears to be more abundant occurring as veins up to one meter and infilling breccia matrix. Hydrothermal cherty silica zones occur containing patches of magnetite and molybdenite. Large patches of magnetite-epidote-pyrite occur in pink altered rhyolite sometimes carrying important gold values (as intersected in holes DC-06-01 and DC-06-02). These alteration zones appear to be within the volcanics and peripheral to a large feldspar porphyry system. Late stage hematite veinlets cut all rocks and alteration zones as they do in the Hamlin breccias. Deaty mineralization therefore appears to be related to the IOCG Hamlin event. Shear hosted zones (holes DC-06-04) are distinguished be chlorite, fine-grained pyrite, sericite, silica veinlets. These shears are in close proximity to the Knife Lake Fault. All of these geological features are similar to IOCG systems in Brazil that are also Timiskaming in age.

Deaty Creek Surface Samples

Ticket # Grid Line Grid Stn. Ag (g/t) Cu (ppm) Cu (%) Au (g/t)
639129 51E 6+90S 1.5 258 0.03 0.770
639130 51E 6+90S 3.6 158 0.02 3.670
639131 51E 6+90S 0.8 227 0.02 0.280
639142 46E 5+85S 1.6 2400 0.24 0.410
C026902 51E 6+50 S 1.2 1990 0.20 0.145
C026903 51E 6+50 S 0.7 1275 0.13 0.114
C026913 51E 6+50 S 0.5 174 0.02 1.985
C026274 51E 6+75 S 0.6 508 0.05 0.141
C026275 51E 6+75 S 0.5 92 0.01 0.169
C026276 51E 6+75 S 3.5 2780 0.28 1.765
C026281 51E 6+75 S 0.6 436 0.04 0.164
C026282 51E 6+50 S 1.0 1485 0.15 0.152
C026906 50+50E 6+50 S 5.2 42 0.00 2.670
C026907 50+50E 6+75 S 1.4 1465 0.15 0.176
C026917 50E 7+00 S 1.3 840 0.08 0.418
C026918 50E 7+00 S 3.0 839 0.08 0.321
C026919 50E 7+00 S 1.8 477 0.05 0.382
C026958 50+50E 6+75 S 0.2 115 0.01 0.111
C026933 42E 5+50 S 2.1 1630 0.16 0.013
C026960 42E 6+75 S 2.6 5900 0.59 0.066
C026961 42E 6+75 S 4.3 7520 0.75 0.268
C026938 44E 5+50 S 3.8 6880 0.69 0.267
C026249 35/36 E 14+50 S 0.9 2170 0.22 0.018
C026928 35/36 E 14+50 S 1.1 2300 0.23 0.091
C026932 35/36 E 14+50 S 1.1 2920 0.29 0.022
C026941 35/36 E 14+50 S 4.2 4980 0.50 0.555
C026942 35/36 E 14+50 S 0.9 1455 0.15 0.012
C026946 35/36 E 14+50 S 0.7 1630 0.16 0.012
C026947 35/36 E 14+50 S 1.5 6020 0.60 0.018
C026949 35/36 E 14+50 S 0.9 2380 0.24 0.025

Highlights from Drill Hole DC-06-1

Ticket # From (m) To (m) Length (m) Silver
Ag (g/t)
Copper
Cu (ppm)
Gold
Au (g/t)
753605 47.00 48.00 1.00 0.4 90 0.59
753606 48.00 49.00 1.00 0.2 87 0.31
Wtd. Average 0.3 88.5 0.45
 
753609 51.00 52.00 1.00 0.4 166 0.29
753610 52.00 53.00 1.00 0.4 207 0.32
Wtd. Average 0.4 186.5 0.31
 
753614 56.00 57.00 1.00 0.2 83 0.36
753615 57.00 58.00 1.00 0.3 86 0.24
753616 58.00 59.00 1.00 0.2 101 0.39
753617 59.00 60.00 1.00 0.3 96 1.53
753618 60.00 61.00 1.00 0.2 153 1.38
753675 61.00 62.00 1.00 0.2 208 0.78
753676 62.00 63.00 1.00 0.2 34 0.15
753677 63.00 64.00 1.00 0.2 30 0.08
753620 64.00 65.00 1.00 0.5 224 1.86
753621 65.00 66.00 1.00 0.2 126 0.43
753622 66.00 67.00 1.00 0.2 69 0.49
753623 67.00 68.00 1.00 0.2 130 0.96
Wtd. Average 0.2 112 0.72
 
753626 70.00 71.00 1.00 0.3 136 0.37
753627 71.00 72.00 1.00 0.2 146 0.30
Wtd. Average 0.3 141 0.34
 
753631 78.00 79.00 1.00 0.3 277 0.14
 
753632 92.00 92.50 0.50 0.4 175 0.25
753633 92.50 93.00 0.50 0.2 78 0.21
753634 93.00 93.50 0.50 0.3 90 0.08
753635 93.50 94.00 0.50 0.5 905 0.82
753636 94.00 94.50 0.50 0.2 59 0.36
753637 94.50 95.00 0.50 0.2 29 0.46
753638 95.00 95.50 0.50 0.2 103 0.51
Wtd. Average 0.3 206 0.39
 
753653 113.00 113.50 0.50 0.2 28 0.20
753654 113.50 114.00 0.50 0.4 149 0.61
753655 114.00 114.50 0.50 0.7 123 1.22
753656 114.50 115.00 0.50 0.4 178 1.07
753657 115.00 115.50 0.50 0.2 40 0.36
753658 115.50 116.00 0.50 1.4 71 4.12
Wtd. Average 0.6 98 1.26
 
753660 116.50 117.00 0.50 0.8 289 0.85
 
753668 127.00 128.00 1.00 0.2 85 0.26
753669 128.00 129.00 1.00 0.3 216 0.15
753670 129.00 130.00 1.00 0.4 90 0.25
753671 130.00 131.00 1.00 0.3 275 1.14
753672 131.00 132.00 1.00 0.2 57 0.72
Wtd. Average 0.3 145 0.51

Highlights from Drill Hole DC-06-2

Ticket # From (m) To (m) Length (m) Silver
Ag (g/t)
Copper
Cu (ppm)
Gold
Au (g/t)
753712 32.10 33.00 0.90 0.4 277 0.21
753713 33.00 33.50 0.50 1.9 1095 0.35
753714 33.50 34.00 0.50 2.6 887 1.34
753715 34.00 34.50 0.50 2.2 2250 7.18
753716 34.50 35.50 1.00 1.2 597 2.75
753717 35.50 36.50 1.00 1.7 2940 0.56
753718 36.50 37.00 0.50 1.6 2600 0.43
753719 37.00 37.50 0.50 4.1 2860 0.95
753720 37.50 38.00 0.50 1.5 1575 0.45
753721 38.00 38.50 0.50 0.9 1240 0.26
753722 38.50 39.50 1.00 0.4 362 0.14
753723 39.50 39.95 0.45 0.2 296 0.12
Wtd. Average 1.4 1342 1.16
  including 35.50-37.50 4.00 2.0 1959 2.07

DC-06-04

From (m) To (m) Interval Au g/t Ag g/t Cu ppm Mo ppm
79.65 80.40 0.75 0.16 0.7 848 18
80.40 81.00 0.60 0.10 0.3 313 43
81.00 82.05 1.05 0.27 0.6 373 22
82.05 83.00 0.95 0.87 0.5 215 22
83.00 84.00 1.00 1.27 1.0 425 147
84.00 85.00 1.00 5.50 1.1 503 7
85.00 86.00 1.00 1.22 0.7 428 28
86.00 87.00 1.00 2.42 0.6 516 13
Average 7.35 1.59 0.7 448 38

DC-06-09 Gold Zone

From (m) To (m) Interval (m) Au (g/t) Ag (g/t) Cu (ppm) Mo (ppm)
67.90 69.15 1.25 0.19 1.9 3360 265
69.15 70.00 0.85 0.09 0.6 240 21
70.00 71.00 1.00 0.07 0.5 314 17
71.00 72.00 1.00 0.11 0.4 410 30
72.00 73.00 1.00 0.31 1.4 2090 34
73.00 74.00 1.00 0.08 0.6 541 20
74.00 75.00 1.00 0.28 1.9 2180 161
75.00 76.00 1.00 0.26 2.1 2150 126
76.00 77.00 1.00 0.26 0.6 659 28
77.00 78.00 1.00 0.44 0.5 613 38
78.00 79.00 1.00 0.12 0.3 393 6
79.00 80.00 1.00 0.24 0.6 637 7
80.00 81.00 1.00 0.08 0.7 713 16
81.00 82.00 1.00 0.08 0.7 891 10
82.00 83.00 1.00 0.52 1.1 1480 12
83.00 84.00 1.00 5.98 2.0 1360 41
84.00 85.00 1.00 0.39 0.4 308 21
85.00 86.00 1.00 0.85 0.3 176 5
86.00 87.00 1.00 0.17 0.3 165 16