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Enid-Massey Project

Geological map showing the mafic intrusive complexes associated with the Enid-Massey and Montcalm Nickel Mine

1,117 line kilometres Airborne MAG Survey completed over the Enid Massey Project

Drill core from the Santrap Grid

Drilling December 2006 on the Santrap area

Regional Resident Geologist Brian Atkinson of the Ministry of Northern Development and Mines, Timmins Region, and Leslie Tihor, company geologist and director, review the geology at the Baktrian East grid

West Baktrian Ni-Cu grid

Airborne MAG Survey map and I.P. survey over the Santrap area

Massive to near massive pyrite and pyrrhotite were found in 7 locations

John Gilliatt, Geophysicist (JVX) and Les Tihor examining the Talaos trenches

Background

The Enid-Massey Property is located in Enid, Massey, Cote and Fortune Townships, in the Porcupine Mining Division, about 40 km west of Timmins.

The Corporation holds a 100% interest in a total of 589 mining claim units (55 mining claims) covering 9,542 acres.

The claims are known to host a series of untested airborne electromagnetic anomalies within or proximal to the favourable CEMMI (Cote, Enid, Massey Mafic Intrusive Complex)within the Kamiskotia Gabbroic Complex, which anomalies were defined by previous regional airborne surveys and geochemical surveys completed by the Ontario Geological Survey (G.S.C. Open File 3675).

During Q2-2006, the Corporation commissioned AeroQuest Limited of Milton, Ontario, to conduct a 1,117-line kilometre survey utilizing its AeroTEM II system. Within these survey blocks, 200 anomalies of interest were reported for Ni-Cu-PGM's or gold exploration on the Enid-Massey Property.

Subsequent to the airborne survey, fieldwork located several of the priority conductors, some of which were proximal to outcrops. Geochemical analyses of rock samples collected from these outcrops returned elevated values in gold, copper, nickel, zinc and PGE's, warranting the requirement of ground geophysical survey execution.

In addition to the airborne surveys, Laurion completed a detailed compilation of all of the historical work on the CEMMI, which information was used to evaluate and prioritize the conductors identified in the AeroTEM survey. Of the anomalies identified, 64 priority conductor anomalies were selected for ground follow-up evaluation based on, among other things, their geophysical responses and proximity to geological settings.

The Santrap Occurrence

A Max/Min II EM survey and Spectral I.P. survey has been completed over the Santrap area. The geophysical surveys have highlighted a number of drill targets over conductors with an aggregate strike length of at least 300 metres. Follow-up diamond drilling in Phases 1 and 2 identified several distinct exhalative horizons with strong Au, Ag, Cu and Zn values. The iron sulphides and base metals show distinct stratigraphic zonation, typical of Kidd Creek type VMS environments, with sulphides hosted by the footwall rhyolites tending to be rich in Cu, whereas sulphides in the hanging wall basalts are rich in Zn. Review of the core and a comparison of the sulphides in holes 1, 2 and 4, indicate that there appears to be an increase in thickness and base metal grade of sulphides with depth and towards the west.

Over the northwest parts of this target, other weaker conductors, possibly representing massive sulphides at depth, will be tested in the forthcoming exploration program.

As a result of the drilling program the Corporation has staked an additional 82 claim units to accommodate the potential strike length of the Santrap mineralization.

Summary of Drill Results for Santrap Grid:

• 0.95% Zn over 78.5-81.3m (2.8m) in Santrap hole SA-06-02.
• 0.23% Zn over 96.4-104.5m (8.1m) in Santrap hole SA-06-04.
• Strong Cu values of approximately 0.2% over much of hole SA-06-05.
• Hole SA-06-04 and SA-06-05 have interesting Au values up to 804 ppb.

The Fortune-Tyche Zones

The claims in the northern portion of the Enid--Massey Property are known to host a series of untested airborne electromagnetic anomalies within or proximal to the favourable prospective mafic intrusive complex; the anomalies were defined by previous regional airborne surveys completed by the Ontario Geological Survey.

Exploration Outlook

The Corporation will continue to focus on the relatively unexplored Cote-Enid-Massey Mafic Intrusive Complex ("CEMMI"). This area contains untested airborne conductors showing potential for VMS, Cu-Ni-PGM, and, possibly Au mineralization. The Corporation plans to continue systematically exploring this potential with state-of-the-art methods.

The CEMMI and known mineralization on the Enid-Massey Property represents an environment distinctly similar to that found at Falconbridge's Montcalm nickel mine located approximately 20km to the northwest.

According to publicly available information, the Xstrata's Montcalm Project has an estimated resource of 7 million tonnes of nickel copper sulphide, of which an estimated 5.1 million tonnes grading 1.46% nickel and 0.7% copper are in the measured and indicated category and are expected to support a mine life of 8.5 years.

Xstrata's Montcalm project reached its designed production capacity of 750,000 tonnes annually during the fourth quarter of 2004 and is currently evaluating the possibility of increasing the annual mining rate from 875,000 tonnes to one million tonnes per year.

Two concentrates are produced at such mine: a copper concentrate, which is treated at the Kidd Metallurgical complex, and a nickel concentrate, which is transported to the Sudbury smelter for processing into, nickel matte. The Montcalm Project is expected to contribute up to 9,000 tonnes annually to refined nickel output. (Source Xstrata).

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This page was created on Fri Sep 10, 2010 at 1:41:25 PM Pacific Time.