| An historic 6,000 meter, 49-hole drill program performed for Power Explorations Inc. outlined an extensive zone of potentially-economic gold mineralization (Higginson, R., 1988). Review of the Higginson Report indicated the drilling was carried out by Midwest Drilling of Winnepeg. The logging and assaying seemed to have been carried out in a professional manner under the supervision of Geocanex. Ltd. Core samples were analyzed by two certified laboratories, Bell-White Analytical Laboratories of Haileybury and Accurassay Ltd. of Kirkland Lake.
Power Explorations(TSE) said preliminary calculations for its Kasagiminnis Lake Property in the Pickle Lake area of northwestern Ontario indicated 2,866,000 tons of mineral reserves grading 0.14 opt gold-per-ton to a depth of 1,000 ft. Included in those calculations were 1,100,000 tons grading 0.19 oz. While it was too early to determine the economic feasibility of the property, Power President Harry Hodge P. Eng. said, "There is a strong structure with persistent mineralization over a 40-ft width." (Northern Miner, April 16,1988). The figure of 2.9 million t @ 5.8 g/t Au was also reported in the Ministry of Northern Development and Mines (MNDM), Resident Geologist Program, 2005. Geophysical surveys performed on the property in 2004 indicate four new gold targets outside of the Main Zone. Only 3,500 meters of the potential 8,000 meter strike length have been tested by diamond drilling.
The Kasagiminnis Lake property is situated 65 kilometers east of Dragon's Dorothy Lake gold property (257,640 tonnes grading 5.1 g/t Au, The Northern Miner, Monday, August 27, 1990) and Dobie Lake gold property (301,000 tonnes averaging 5.5 grams per tonne Au, OGS Open File Report 5869, MNDM). The Dorothy Lake property has a 3,500 meter strikelength containing drill-ready IP targets and the Dobie Lake gold zone is open down-plunge.
All of the exploration results disclosed herein are historic in nature and do not presently conform to National Instrument NI-43-101 Standards of Disclosure for Mineral Projects. They have been reviewed, but not verified by Robert S. Middleton, P. Eng., who is our designated Qualified Person and responsible for the verification and quality assurance of our exploration data and analytical results. In the opinion of our Qualified Person, based on the information available, the mineralization at Kasagimminis, Dorothy and Dobie Lakes, would be classified as an Inferred Mineral Resource, based on the definition of the CIMM, since it will be required to do further infill drilling to establish grades. Therefore the historic figures should not be relied on.
Consideration for acquisition of the property consists of option payments totaling $150,000 cash in stages over a four-year period. A 2 percent net smelter return is retained by the optionor, of which 1 per cent may be purchased by the company at any time for $1-million with the remaining 1 per cent being subject to a right of first refusal. Sufficient exploration expenditures must be incurred to maintain the property in good standing.
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