Princess Louise Project MLN's823 -832, 858-863, 940 and MCN's46-47, 49-50, 624-625, 898-899, 4428, 4430, 4432 and 4434 Report on exploration for the period ending 30 September 2000

Abstract

Work completed includes RC drilling and the first pass resource evaluation. A vacuum drilling program was attempted, but abandoned due to poor ground conditions. RC drilling was completed in two phases. The 1 phase of RC drilling verified mineralisation at North Point and Princess Louise. The best intersections from the 2 phase of RC drilling include 7m at 29.26 g-t Au from 42m (YCRC0020), 4m at 23.21 g-t Au from 6m (YCR0021), 4 m at 17.03 g-t Au from 6m (YCRC0001), 7m at 9.58 g-t Au from 1m (PLRC0107). However the mineralisation occurs in relatively narrow lodes, which when bulked mining would reduce significantly the grade. This precludes development of the resources at current market conditions. The global resources (indicated and inferred) were estimated for North Point (368,000t at 1.88 g-t Au for 22,243 Oz) and Princess Louise (423,000 T at 1.52 g-t Au for 20,672 Oz). Gold mineralisation occurs in association with east dipping quartz veins and west to steeply east dipping shears within two greywacke units. While significant intersections have been returned from the Central Zone, no coherent ore body could be defined. The lower greywacke requires further work to determine the nature and orientation of the mineralisation. Several geochemical anomalies require further investigations.