Continued Exploration

Active exploration for both new extensions of the Back Forty massive sulfide and additional regional targets continues. In the Back Forty area, the limit of strong quartz-sericite-pyrite alteration in rhyolites has not been identified in either drilling or surface exploration. Outcrops over half a kilometer to the southwest are altered and mineralized. Step out drill holes have shown that strongly altered host-rocks with anomalous zinc and gold mineralization continue for at least 500 meters east of the known massive sulfide.

Drilling in late 2010 intersected deep, high grade gold and zinc mineralization between 100 and 300 meters west-southwest of previously modeled mineralization, indicating that mineralization continues at depth.

Strong gravity trends that coincide with the strike of massive sulfide remain to be tested. Downhole pulse EM studies continue to identify deep targets. Drill testing of deep targets is scheduled for 2011.

Interpretation of a regional VTEM airborne study has identified targets to the east of the Back Forty mineralization and work continues on identifying targets farther afield. Surface geophysics and drill testing of anomalies is planned for the first half of 2011.