• Historic production of 57,000 ounces gold from 200,000 tonnes ore at a recovered grade of 9 g/t gold
• Unexploited potential below and adjacent to shallow gold mine workings and in outlying prospects – e.g. 6m @ 13.8g/t gold and 5.7m @ 30g/t gold in past drilling.
• Claims also include potential 10km extension to producing Copper Cliff offset dyke system prospective for nickel-copper-platinum group metals

On 4 May 2010 the Company acquired a three year option acquire a 100% interest in the previously producing Long Lake Gold Mine located 20km south-west of the City of Sudbury, Ontario (Canada). The claims also cover potential extensions to the currently producing Copper Cliff dyke system which lies at the heart of the World’s most productive nickel-copper mining complex.

Long Lake Gold Mine

The Long Lake Gold Mine produced 57,000 ounces of gold from over 200,000 tonnes of ore mined in the periods 1910-1916 and 1932-1939.

The average recovered mill grade was 9 grammes per tonne (g/t) gold and the mine tailings dumps (200,000 tonnes) which remain on site have a reported grade of 2-3 g/t gold indicating an average mine head grade of over 11g/t gold.

Most of the ore mined was extracted from a 50m diameter open glory-hole developed on a plunging pipe-like zone of disseminated gold and strongly sulphide mineralised sedimentary rock down to a depth of just 55m from surface.

Unexploited Potential

Old mine reports highlight that gold ore and waste rock were often visually difficult to distinguish and, today, native gold can be found in material on the mine waste dumps (see photos) A mineralised grab sample collected by the Company from the waste pile assayed 8.8g/t gold.

The horizontal limits of mining were reportedly defined by the economic cut-off grades of the day rather than any identifiable geological boundaries. Consequently the Company believes it likely that further gold mineralisation can be defined outside of the existing pit.

For example - a 1937 angled drill hole located just east of the pit returned 15.7m at 3.4g/t gold from surface. In addition a recent helicopter geophysical programme, which covered the mine and surrounding area, has identified a string of electrical conductors, possibly indicative of gold-bearing metal sulphides, extending from the mine in a north-easterly direction.

During the two periods of historic gold production exploratory mine development extended beneath the glory-hole down to the fourth mine level at 105m vertical depth where, at that time, it was thought the ore-body was displaced by faulting. However, drilling in 1936 encountered high grade ore in several holes in unexploited areas beneath the fault and approximately 25m below the deepest mine workings. The results, which included intersections of 6m @ 13.8g/t gold and 1.5m @ 30.2g/t gold, indicate considerable potential to define further high-grade gold mineralisation below the existing shallow workings, as well as beyond the current pit limits.

Since closure in 1939 the mine has been held privately and the past owners have been under no obligation to file details of past exploration work. However field reconnaissance by the Company and an extensive record search has shown that some exploration has taken place in an area 350m south of the mine where old newspaper reports highlight drilling results of 5.7m grading 30g/t gold in 1973 with follow up results of 4.1m grading 12g/t gold in 1987. Reporting of work in this outlying area on the Property is incomplete and the significance of these high grade drill intersections remains to be evaluated.

Copper Cliffs Offset – Nickel-Copper-PGM Potential

Since 1883 the Sudbury mining field has accounted for over 25% of the world's total nickel production and new discoveries continue to be made. It is the most productive nickel-mining field in the world with over 1.7 billion tonnes of past production, reserves and resources.

Nickel-copper-and platinum group metals (“PGM”) bearing sulphide minerals occur in a 60 km by 27 km elliptical igneous body called the Sudbury Igneous Complex (“SIC”). Mineralisation occurs within the SIC as well as in the neighbouring country rocks in close association with breccias and so-called ‘Offset Dykes’. These are typically quartz-diorite in composition and extend both radially away from and concentric to the SIC . Nearly half of the nickel ore at Sudbury occurs in breccias and Offset Dykes in the footwall rocks of the SIC.

On the south trending Copper Cliff Offset Dyke, north of the Company’s Property, the producing Copper Cliffs South mine and the Copper Cliff North mine have yielded over 200 million tonnes of ore and Vale Inco Limited's Clarabelle Mill, Copper Cliff Smelter and Copper Cliff Nickel Refinery are located in close proximity.

Offset Dykes have become the target of progressively more intense exploration interest in recent years following a number of new discoveries. The latest such discovery on the Copper Cliff Offset dyke was made in 2004 at Kelly Lake, to the south of the existing mines (in the direction of the Company’s Long Lake property), where a resource of over 20 Mt at a grade of 3.5% combined nickel and copper and 5 g/t PGM has been reported.

Prospecting operations by the claim holder within the Property have included sampling, petrological studies and limited mapping. This has identified numerous areas with outcropping offset-type dykes. The Property was optioned during 2008 to Australian company Pegasus Metals Limited. At that time the Long Lake mine was privately held and excluded from the Pegasus option.

In 2008 Pegasus Metals carried out a helicopter-borne airborne electromagnetic survey which, identified potential gold targets near to the Long Lake mine as well as a number of conductive targets for nickel-copper-PGM. Ground examination confirmed that at least one such anomaly is associated with an outcrop of an Offset-type dyke. Whilst some follow up ground geophysics was carried out, Pegasus Metals dropped the option during the recent global financial crisis before drill testing any of the anomalies.

Sudbury is ‘elephant country’ for nickel-copper-PGM deposits and the nickel targets on the claim block are a real bonus. It’s rare to find two such prospective but geologically distinct projects in the one claim block.

OPTION AGREEMENT

The Company may acquire a 100% interest in the Property by making staged payments totalling Can$575,000 over a three year period, by meeting exploration expenditures of Can$500,000 in that period and by issuing up to 5,000,000 five year share warrants The vendor retains a 3% NSR on the property of which 2% may be purchased by the Company at any time for the sum of Can$3 million.

The claim block comprises 23 contiguous claims covering 40.3 square km (“the Property”). It has been assembled over a number of years and was recently expanded to include the Long Lake Gold Mine which was previously not open to staking.

Drill hole locations and IP survey lines;