The 140 hectare Mount Jamie Property is located in Todd Township at the western end of the Red Lake Greenstone Belt approximately 25 km west-northwest of Red Lake, Ontario. Rocks in the vicinity of the property form part of the Ball assemblage and the property is underlain by a series of Archeanvolcanosediments that host several gold-bearing quartz veins. The property was explored underground by two shafts, with one on each of two known veins.

Shaft No. 1 (Main Zone) reached a depth of 772 feet (235 m) with 3,200 feet (975 m) of lateral development and 630 feet (192 m) of raising on three levels.

Shaft No. 2 (North Zone) was sunk to a depth of 559 feet (170 m) with some limited lateral development on the first level. Historical surface and underground exploration work, carried out mainly between 1936 and 1989, outlined an inferred resource of 44,535 tons of ore grading 0.438 oz of gold per ton (15.0 g/t gold) in the Main Zone. Historical resource figures are non-NI 43-101 compliant. Additional zones and shoots of gold mineralization have also been identified elsewhere on the property.


Description and location: The Mount Jamie Property is situated in Todd Township, Red Lake Mining Division, District of Kenora (Patricia Portion), Northwestern Ontario. The Red Lake area is located 250 km northeast of Winnipeg, Manitoba, 150 km north-north-west of Dryden, Ontario and 430 km northwest of Thunder Bay, Ontario. The property is part of the historic Red Lake Gold Camp and hosts the past producing Mount Jamie Mine.After a series of transactions with Jamie Frontier Resources Inc. (JFRI), West Red Lake Gold acquired 100% interest in the property, subject to a 3% Net Smelter Royalty payable to JFRI.

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The property is roughly 370 metres above sea level. Its topography is mostly small rolling hills with about seven areas of higher outcrop ridges, the high points of which are approximately 45 metres above their surroundings. The South East part of the Property is covered by relatively flat sand plain, which to the east is forested by jackpines. The area to the West of Shaft #I is covered by mixed vegetation. Access to the property can be gained by road from the Town of Red Lake. From Red Lake one would take the highway to Balmertown and Cochenour, and then turn onto Nungessor Road (a short distance west of Balmertown). Roughly 17 km along Nungessor Road, one would turn West on Pine Ridge Road for about 22 km and then South onto Devlin Timber/Jamie Bush Road. The property is approximately 25 km down this road. Both Nungessor and Pine Ridge Roads are gravel, and built to penetrating road standards. However, the Devlin Timber/Jamie Bush Road was used in past decades by mining companies working on the Jamie and adjacent Rowan and later on the Rubicon properties. It has been improved somewhat by Rubicon Resources during the past few years, and is passable by 4x4 pickup trucks during the summer months. The property can also be approached via water by traveling on Red Lake and landing at the North end of Golden Arm Bay, or the East end of Pipestone Bay. Traveling this route using a 25-30 hp motor and a 14-16 foot boat takes approximately 1.5 hours. Float-equipped aircraft are available for charter in Red Lake. The Red Lake Airport is serviced by regular scheduled flights from Winnipeg and Dryden. Most supplies and services can be sourced from Red Lake or delivered there via the Trans-Canada Highway, and Highway 105.

Geological mapping and sampling can usually be performed during the six warmest months of the year, while geophysical surveys can be carried out nearly year-round (with brief pauses for break-up and freeze-up). January and February can bring some extreme temperatures to the area, down to —50° C, far too cold for the outdoor use of electronic instrumentation or to efficiently conduct a diamond drilling program. These extreme cold spells can take anywhere from a few days to a few weeks to pass. Consequently most activities can be maintained for 10 to 11 months of the year, provided good ground transport is available. Water/ice transport can be utilized about nine months of the year; however storms on the lake can sometimes bring such transport to a complete halt.

All claims are patents, and include surface rights as well. There are no operational power lines near the property. The old power line to the adjacent Rowan deposit fell over decades ago. Therefore, all electrical energy required for work or lodging needs to be generated on site. Water is available in industrial quantities from Rowan Lake, which is the closest body of water (about 1 to 2 km to the South East). For larger quantities, Pipestone Bay is about 2 to 3 km West of Shaft 1. Tailings storage areas and waste disposal areas were assigned North of the shaft, and a safe distance from all bodies of water. The same applies to the processing plant. Red Lake and the surrounding settlements can provide a small but well trained labour force for start-up operation.

It is reported that the discovery of gold on the property in the area of Shaft 1 dates back to 1920. Eleven claims were patented in 1928. The completion of any substantial work on the Property would have required those claims to be filed with the Ontario Bureau of Mines, however any information regarding ownership or work history of the claims prior to 1934 has not been found. In 1934, Frontier Red Lake Gold Mines Ltd. acquired the claims. This company completed a program of trenching on the No. 1 Vein that reportedly assayed 0.42 oz Au/ton over a width of 50 inches, for a length of 120 feet. This prompted the owners to undertake a diamond drilling program of 24 holes for a total of 6,545 feet. Based on the results of that operation, the company decided to sink a shaft on the vein. In 1936 a two-compartment shaft was completed to a depth of 244 feet. It had stations at 130 and 230 feet, with about 155 feet of drifting at the top level and 50 feet of drifting at the 230-foot level.

The above operations were halted in December of 1936. That month, A. H. Honsberger visited and examined the property. He submitted his report in January of the following year. The report details his examination of the surface geology of the vein targeted by Shaft No. 1. In it he describes a showing about 35 feet West of the vein, which consists of narrow quartz veinlets with massive sphalerite and pyrite. Honsberger examined and provided the locations for five additional showings of gold mineralization.

In 1939, Gold Frontier Mines Ltd. was incorporated and took over the property. The shaft was de-watered and underground work resumed in 1940. The shaft was later deepened to 500 feet, and increased to three compartments (this work was completed by 1942). The lateral work amounted to 2,881 feet, in addition to 630 feet of raising on 130, 230, 350 and 475 foot levels. Work was then halted in Shaft No. 1, in favour of sinking a second shaft on a vein that had been discovered in 1941 (referred to at that time as the North Vein). The No. 2 Shaft was located about 2,550 feet North West of the first shaft and went to a depth of 559 feet. Some lateral development was completed at the 100 foot elevation. In August of 1942 a government mandate terminated all work in non¬productive gold mines, bringing the activity on the prospect to a halt.

In 1944, Bayview Red Lake Gold Mines Ltd. acquired the property and deepened the No. 1 Shaft to 772 feet. No lateral work was done in the deepened portion of the shaft, except for stations developed at the 625 and 750 foot elevations. At the conclusion of the development program in 1947, the No. 1 Shaft was developed as a two-compartment shaft to the 230 foot level. From that depth it was widened to three compartments all the way to the shaft bottom (772 feet). By this time, the total lateral development in the shaft amounted to 3,225 feet of drifting and crosscutting on the 130, 230, 350 and 475 foot levels. In addition to this work, the company initiated an aggressive surface diamond drilling program totalling 15,000 feet. However, they were later forced to terminate the program due to fundraising difficulties.

Red Poplar Gold Mines Ltd. acquired the property in 1951. It was reported that a third de-watering took place and the underground workings were sampled once again, but none of these results are currently available. It is believed that the property then stood idle until 1961, at which time the company reorganized as Consolidated Red Poplar Mines and considered the possibility of reopening the mine to provide feed for the mill of McKenzie Red Lake Gold Mines. The plan did not come into fruition. McKenzie managed to find additional reserves, bringing an end to the proposed undertaking.

In 1971, Consolidated Red Poplar was once again reorganized and became New Dimension Resources. In 1975, this company optioned a 75% interest in the property to Mount Jamie Mines (Quebec) Ltd. In 1976 the mine was again de-watered and rehabilitated to the 230-foot level. The company developed three slopes and hoisted 1,224 tons of material from these [Stopes B, C-1 and C-2]. These stopes are shown on the longitudinal section of the Main Zone (see Appendix 3). Mount Jamie also constructed an open-air gravity mill, capable of treating 100 tons per day. Remnants of this mill are still on the property. The mill was in operation in 1976, at which time 550 tons of material was treated with a recovery of 78%.

It was used again in 1980 when the successor company, Mount Jamie Mines Ltd., processed 420 tons remaining from the stockpile of 1976 and an additional 300 tons of low-grade material. Only the grade of the 1976 material was known [as 0.5 oz Au/ton]. The concentrates of both were sent to a smelter. The weight of the concentrate shipped was 1.5 tons and it contained 175 oz of gold and 58 oz of silver. In 1981 these same operators completed the metallurgical testing of a tailings sample from the 1980 milling, in addition to surface exploration. None of the reports on the metallurgical testing (done by Lakefield Research) are available.

In 1982, Oneiro—Alfa Ltd. acquired 52.5% of the property and initiated a surface diamond drilling program consisting of 5,400 feet of drilling. Nineteen holes were drilled. Sixteen of these tested the main zone (Shaft No. 1), while three holes were completed at the site of the second shaft. At the same time, it is reported that some geological mapping was conducted around Shaft No. 1. In a document dated December 13, 1982, the geological consulting firm of Derry Michener, Booth and Wahl produced a set of compilation maps, plans and a record of that work.

In 1983, Keeley Frontier Resources Ltd. took over Oneiro-Alfa's interest in the Property. The undergrounds at Shaft No. 1 were again de-watered, this time to below the 475-foot elevation, for the purpose of implementing some of the recommendations made by Derry Michener Booth and Wahl. Reportedly, the work completed consisted of underground and surface diamond drilling with overburden stripping, sampling and mapping. Mr P. Vamos (who was working at this time on a property adjacent to the subject claims) has knowledge of the surface drilling being conducted by Keeley-Frontier.

This drilling was comprised of twenty-two holes in the vicinity of Shaft No. 1 and two holes near Shaft No. 2 that combined for a total of 8,400 feet of surface diamond drilling. According to a report by John Reddick dated December 1983, twenty-eight holes were drilled on the 130 foot level, nine holes on the 230 foot level, and finally two holes on the 475 foot, level totalling 5,004 feet of drilling. Reddick mentions that the drifts had to be slashed at the drill stations. He also notes that the muck was cleared out of the stations. Though it is stated that there were no cars available to move it, there is no explanation given as to how the muck ended up plugging the entrances to the drifts on either side of the stations, or why the rails had been blasted in several locations.

The total number of veins investigated by all previous operators is three, including the vein of the second shaft that was sunk on as well.
In early 1984, Jamie Frontier Resources Inc. acquired the property, which at that time consisted of eleven patented and four staked claims. The company proceeded to enhance the surface facilities, up quarters. They also constructed a washhouse, and by installing proper facilities (a septic tank field and sewer system), they brought the camp up to accepted standards of the time. To complete the refurbishing of the plant, the company installed diesel operated power generators and backup and constructed an assaying facility on the site. The aim was to further explore and expand the resource serviceable by Shaft No. 1, and to develop the underground for mining. This was to involve a complete overhaul of the mill. The latter was partially completed by winterizing the mill and replacing some of the equipment, while upgrading other facilities. Due to funding difficulties, this work was not completed.

De-watering and refurbishing of the shaft was completed during the winter of 1985. Rehabilitation of the levels was severely delayed for a number of reasons. The condition of the stations, where development muck had been left at the entrances, was terrible. Additionally, 5,000 feet of new rails had to be laid as the old tracks had been blasted in several locations. Furthermore, serious discrepancies in the underground surveying of the mine workings and drill hole locations were discovered and corrected at this time.

Underground Development
1985	Slash	Drift	Raise
Level	[ft]	[ft]	[ft]
130[1st]	220	211	7
230[2nd]	548	213
350[3rd]	63	204	34
475[4th]		210	98
Totals	831	898	139

Surface exploration commenced in 1985. It consisted of the establishment a line grid, geological mapping, geophysical surveying and diamond drilling. Geological mapping and geophysical surveys were completed by the fall of 1986; surface diamond drilling (11,937 feet in 61 drill holes) was completed by the second half of the following year.

Underground diamond drilling started in 1985 and continued until 1988. During this time, 136 underground drill holes were completed for a total footage of 24,180 feet. This information (tabulated below) gives the number of holes and footage for each level on a yearly basis.

Underground Diamond Drilling by Year
Year	Level	Number of Holes	Total Length
1985	1st	31	3,240
130[1st]	2nd	40	3,902
230[2nd]	3rd	20	3,322
350[3rd]	4th	24	6,132
475[4th]	Sutotals	115	16,596
1986	1st	9	1,433
	2nd	6	2,638
	3rd
	4th	4	3,165
	Subtotals	19	7,236
1988	1st
	2nd
	3rd
	4th	2	348
	Subtotals	2	348

In the winter of 1988, Pezgold Resources Corporation of Vancouver initiated a diamond drilling program on the property. They commissioned GML Minerals Consulting Ltd. of Calgary, Alberta to execute and supervise the fieldwork. The program was planned by Pezgold and reviewed by GML, who suggested a few changes. Field activity started in December of 1988, and was completed by April 4, 1989. Recommendations were made by GML to terminate the option. During the four months of operation, thirty-nine drill holes were completed comprising 12,052 feet of NQ drilling at three sites.

The surface exploration contributed to a better understanding of the geology of the deposit and diamond drilling increased the dimensions of the known Deposit.

Area Number of Drill Holes Footage
No.1 Shaft	11	4,584
No.2 Shaft	17	4,324
North Vein	11	3,144
Totals	39	12,052

The drill program did not meet the operator's expectations. This was due in part to the fact that it left no room for deviations from the original plan, even in light of the sudden emergence of a new geological factor which had significant impact on the outcome of the program. Pezgold and GML had hoped that the deeper holes would shed some light on the plunge of the gold-bearing lenses. Rather, it resulted in the discovery of a second body of breccia that could easily have been the main body of explosive breccia which had been exposed in several of the earlier drill holes. The property was acquired by Zenda Capital Corp. and Vedron Gold Inc. jointly and held from 2002 to May 2, 2005. In January 24, 2005 Zenda was taken over by Terex Resources and the new management decided to cancel the option. While the option agreement was in force, Zenda initiated an exploration program that culminated with diamond drilling in 2003. Six drill holes were completed for a total of 736 metres. Five of those holes were drilled in the vicinity of the historical workings referred to as Shaft No. 1 and aimed to intersect various zones of the Main Zone. The sixth tested a magnetic anomaly, returning inconsistent gold grades. The fieldwork and sampling were performed by Chibougamau Diamond Drilling and supervised by Mr. L Kovacs MSc. The aim was to validate the results of previous drill programs. A total of 736 m of NQ core was drilled, and remains on the property.

The core was logged on site and remained on the property. The samples were delivered to Als Chemex Laboratories in Missisauga, Ontario. The samples were analyzed using the fire assay method with AA finish. All samples that had visible gold noted, or ran over 10 g Au/t, were screened for metallics. The patented claims are presently in good standing.

Regional Geology: The Property is located at the western end of the Red Lake greenstone belt, a series of Archean-age supracrustal rocks that form part of the Uchi Subprovince of the Superior Province of the Canadian Shield. The general geology of the belt is presented in Figure 3.

The belt comprises seven volcano-sedimentary assemblages that preserve a 300 Ma period of volcanic history between 2.99 Ga and 2.70 Ga. The Balmer assemblage is the most widespread in the belt. It consists of submarine tholeiitic basalt and komatiites, minor felsic volcanics, iron formation and fine-grained elastic sediments. The Trout Bay assemblage in the southwest part of the greenstone belt was once correlated with the Balmer assemblage but is now recognized as a distinct and younger assemblage.

The Ball assemblage is slightly younger than the Balmer assemblage and consists of a sequence of interlayered massive to pillowed mafic flows and intermediate to felsic flows and pyroclastic rocks laid down in a subaqueous to subaerial environment. Cheri and marble beds, some being stromatolitic, are also present. The volcanic rocks were originally thought to have a calc-alkaline affinity, but are now recognized as being predominantly tholeiitic in nature.

The Slate Bay and Bruce Channel assemblages comprise elastic and volcaniclastic rocks that overlie the Balmer assemblage. An angular unconformity marks the boundary between the Mesoarchean assemblages (Balmer, Ball, Slate Bay, Bruce Channel and Trout Bay) and the overlying Neoarchean assemblages of elastic and volcanic rocks (Huston and Confederation). Syn- to post-tectonic granitic hatholiths surround the greenstone belt. Amphibolite facies grade of metamorphism is recognized in proximity to the margins of many of these intrusives.


As during the last period of exploration work on the property (1988), the thinking in the area was that several major zones of deformation played an important role in controlling the enrichment of gold in the Red Lake Mining Camp. Currently, the leading criterion associated with mineralization is related specifically to a D2 phase of deformation. This relationship has been studied in detail in the vicinity of Goldcorp Inc.'s Red Lake Mine, formerly the Dickenson and A. W. White Mine, and extended to a regional scale. Intense ferro, carbonate alteration is also closely associated with auriferous mineralization. Elements of these aforementioned factors are presented in Figure 3 .

i) General Setting
The geology of Todd Township has been mapped by the Ontario Government. Rocks in the vicinity of the property form part of the Ball assemblage (see Figure 4). ii] Stratigraphy The geology of the property is underlain by:

Ultramafics: These occupy the western third of the property and are seen occasionally on the northern portion. They are generally soft coarse to fine-grained, massive to schistose, from light green to dark (almost black). The lighter variety is chloritic, carbonated and serpentinized. The darker variety has abundant tremolite¬actinolite, as well as talc and chlorite. The darker variety appears to be finer-grained and slightly more siliceous - it may be a mafic volcanic with frequent pillow structures.


Mafic to intermediate rocks: These represent the majority of rocks mapped on the Property, dominating mainly on the central and northern portions of the claims. Medium to dark green, they are aphanitic to fine-grained, occasionally coarse and generally very hard. They are normally represented by massive flows, pillowed flows, flow top breccias or pyroclastics as well as banded or foliated units. Interflow sulphides were found to be in cherty layers.

The banded and foliated intermediate rocks were found between the Main Zone and the North Vein. These rocks were described as massive flows, siliceous and hard with colour banding. Gossans, sulphide-bearing bands were interpreted as interflow sediments and occur often. These were identified in thin sections as metasediments of carbonate origin that are typically associated with minor foliated rocks, often locally gaetiferous.

The above-described rocks have been divided further into two distinct subgroups: a dark green (almost black), intrusive-looking, more mafic type and a medium to dark green intermediate-looking rock. The darker variety was again divided into two subgroups: a finer-grained, aphanitic-looking, hard diabase-like unit and a softer, coarse-grained, gabbroid-like rock. The lighter, intermediate-looking variety is more variable. They were harder, more siliceous fine-grained massive flows, pillowed and pillow brecciated and very hard units. In the vicinity of the gold showings, the shearing was strong and the pillows found to be strongly chloritized and deformed.

Felsic Rocks: These occupy less than 10% of the property, and can be divided into two distinct varieties. The first and most prominent of these are the quartz porphyritic rocks containing small quartz phenocrysts in an aphanitic light gray felsic. The contacts were defined as sharp, at times sheared, and classified as early intrusives. The second felsic variety is similar to the first, without the quartz phenocrysts. Occasionally over 5% mafic minerals, mainly biotite, was observed. A more crystallized and coarser-grained sub-variety of this rock has been noted in an outcrop just North of the North Vein Sediments: These, except for the boundedintermediatr rocks of questionable origin, occur mostly on the northern portion of the property. Four types of sediments were described.

• Conglomerate: Polymictic sub-angular to rounded fragments in sizes of up to a foot, loosely packed and making up about 60% of the rock volume. The matrix is very fine to fine-grained and gray to reddish-brown in colour.
• Sandstone: Where identified as such, it is usually also reddish-brown to gray-brown. It is fine- to medium-grained and friable, usually found in association with the conglomerates and the cherty iron formation.
• Iron Formations: These are generally cherty argillaceous finely banded sediments, white to black in colour. They contain magnetite and/or sulphides (up to 10%), either as disseminated material or finely banded. Iron formations were identified as oxide or sulphide facies. They appear to express rapid changes along strike.
• Dolomitic Sediments: These are carbonate-rich, light to medium gray rocks observed in only a few locations.

Intrusives: Intrusives, or rocks defined as such, are normally coarse to very coarse and range between granitic to gabbroic in composition (except for the numerous narrow aphanitic to fine-grained strata bound or discordant diabase dykes or sills). Dark green coarse-grained gabbroic intrusives were found to be located at the northern and central parts of the property. There are also two large intrusions near the shafts, which were identified as quartz diorites.

Breccia: Representing a distinctive unit, it occurs at two locations on the property. It was first mapped on the surface, crosscutting the Main Zone, as well as in the East drifts, underground on all four levels. It was intersected by some of the drill holes sunk by Pezgold Resources early in the winter of 1988-89, a short distance West of Shaft No. 1. The breccia could be sub-cropping just west of the service buildings, but it occupies a lower topography and a low-lying marshy area with no outcrop. This is likely the reason that it was not noticed earlier. The extent of the occurrence to the West (and its Western contact) is not known at this time, nor is the size of the breccia outcropping South of the shaft. Its Western contact with the Main Vein is no longer visible, since one of the previous owners had spread crushed rock over a large area to create a yard around the shaft.

The breccia exposed by the Eastern drifts is about 300 feet wide on the first, second and fourth levels. The third level intersects it, but being the shortest drift on the East side it does not extend to the contact. The breccia consists of angular and rectangular fragments of a felsic rock, bearing white quartz eyes in a matrix of a dark fine-grained homogenous rock.

Several theories regarding its origin can be read in various reports. Some believe it to be an intrusive breccia, while others argue for its tectonic origin. Mr. P. Vamos disagrees with both opinions, and suggests that the material originates from an underwater explosion in a volcanic conduit. A shotgun-like explosion may have propelled the rock fragments upward, unlike a sub aerial explosion where the fragments are scattered in all directions. Later the fragments settled back into the open channel, with the finer material settling in later and forming much of the matrix. This would explain the angular nature of the fragments and the fact that the unit cuts the stratigraphy, as well as the uniformity of the fragmental material.

iii) Structure
The Mount Jamie property lies on the northern limb of a large antiform. The mine was developed on quartz veins in east-striking shear zones in altered metavolcanic rocks. These rocks have been affected by the Pipestone-Bay - St. Paul Bay deformation zone and show strong foliation due to regional compression.

Most of the gold deposits at Red Lake are similar to quartz vein deposits associated with deformation and folding in metamorphosed volcanic, sedimentary and granitoid rocks. The deposits may represent shallow-level Archean lode-gold deposits and are upper crustal equivalents to deeper "mesothermal" deposits.

iv) Alteration
Within the deformation zone, chloride, sericite, iron carbonate and garnet alteration minerals have been developed. Alteration at Jamie Frontier Pipestone deposit is upper greenstone schist facies and lies approximately 500 metres south of the lower amphibolite facies zone, separated by a transitional zone and some 1000 metres north of the lower green schist facies. Regional petrographic work in the Eastern Goldfields, Western Australia and in the Timmins area, Abitibi greenstone belt indicates that major gold mines occur on or near the boundary between upper and lower green schist facies. In both terranes, the boundary corresponds to the biotite isograd as defined in quartzofeldspathic rocks.

Deposit Types
According to the few available records, gold was discovered on these claims in more than one location. The first shaft on the Main Zone made it possible to assess the dimensions of the discovery vein. A second parallel vein is known only from diamond drilling, while a third en echelon vein was discovered during the last underground work program (between 1986 and 1988). This last vein, the North "C" vein, was discovered through underground diamond drilling, was drifted on and partially mined. The second shaft was sunk in the early forties, but unlike the Main Zone the underground workings here were never rehabilitated.

Mineralization Most of the descriptions of the mineralized bodies are the result of several experts defining two occurrences, which historically provided exposures at the Main Zone and the No. 2 Shaft Zone (though the latter became unavailable at some point in time, possibly during the fifties). The main zone strikes N6OW and has a dip ranging from 45 to 85 degrees to the South (surface observation). The vein splits and branches, but in general, is confined to a width of four feet and that the vein occupies a fracture zone in altered greenstone close to and along tongues of quartz porphyry.

The North Zone is not a simple vein structure but a larger linear structure controlling a system of quartz veins and lenses. It extends between the area of the No. 2 Shaft and the southeast, and also through the gold occurrences on the north shore of Rowan. The width of this structure is several tens of feet to hundreds of feet. The individual veins are ranging between 2 and 3 feet. The underground work by Jamie Frontier confirmed this.

The mineralogical description gives the composition as "traces of pyrite, pyrrhotite, sphalerite, chalcopyrite and galena". Visible gold was noted as rare. Certain quantitative relationships between gold and other minerals exist. A relationship was found between the enrichment in gold and the amounts of chalcopyrite, and that the same relationship was found to exist between gold and galena. Should this be valid, this could be an important factor in designing a working hypothesis and logistics for exploration. Mr. P. Vamos agrees with the general consensus of the earlier researchers, however, he adds that the above descriptions are valid - but representative of only one of the types of gold mineralization observed on the property. A second very different and important type of gold mineralization was observed in the underground diamond drill core, and later by a crosscut, sub drift and several lifts on the same horizon. Characteristics of this second deposit, the North ``C`vein, are as follows:

• Massive, almost homogeneous smoky quartz vein.
• Very fine-grain size, almost glassy.
• Vertical to steeply north.
• Highly stressed, mechanically unstable rock.
• Virtually no sulphides.
• Very fine-grained free gold content, resulting in fairly significant assays.
• Requires special sampling and assaying efforts.

The North C Zone was a distinct unit en echelon, about 100 feet north of the Main Zone. Because it was so different from the usual targets, it created difficulties in drill core evaluation and showed clear evidence of being mechanically unstable rock. This duality of mineralization will have to be taken into account during the planning of activities for any upcoming exploration programs. In conclusion, the gold deposits on the property are hosted by a shear-controlled linear feature striking about 30° North of West. The mineralized zones appear to fall into two distinct groups:

• Veins and lenses of gold bearing quartz in association with a variety of sulphide minerals including pyrite, chalcopyrite, pyrrhotite, sphalerite, galena and the odd flake of native gold.
• Smoky quartz veins, massive with stress lines and random distribution of fine flakes of gold.

Drilling by West Red Lake Gold
In 2007 West Red Lake Gold undertook a diamond drilling program and drilled 39 holes totaling 7,843 metres. This was completed as part of an option agreement with Jamie Frontier Resources whereby West Red Lake Gold could earn a 75% working interest in the Pipestone Property. West Red Lake Gold now has 100% interest in the property (see under "Claims").



Infill sampling is required around some of the above intersections. The writer did not have time to plot these values on vertical cross-sections and longitudinal sections while estimating the current resources. Further work on this has been suggested.

Adjacent properties
Goldcorp Inc. (Formerly known as Lake Rowan Prospect) Located a short distance to the East of the subject property, this prospect displays similar geological characteristics. The discovery of this deposit paralleled that of the Pipestone Bay Prospect. So did the general history: a shaft was sunk during the 1930's to a depth of 433 feet. Gold here is associated with sulphides bearing quartz veins. Salvage type production from the top level between 1986 and 1988 resulted in the recovery of 1,298 ounces of gold from 13,023 tons. The property was drilled recently by Anglo Ashanti Gold Corp. The location and number of holes as well as their results are not in the public domain.

Red Crest Mine
Located East of the Lake Rowan deposit, it is of very similar vintage geologically and historically. Gold was described as occurring in a shear related quartz vein. A shaft was sunk to a depth of 600 feet in the 1930's. A short production history (1935-36) resulted in the recovery of 277 oz of gold from 591 tons milled.

The current owners of the property have conducted a Real Section IP Survey covering parts of their claims about 1.5 km South East of the South East corner of the Hy Lake Gold subject property. According to the standards of the provider (Quantec Ltd.), a field report is provided to the company while an optional interpretation report requires an additional fee. It appears that the field report was the only document submitted to the MNDM - the interpretation is not available for the publ.

A rock sampling and assaying program along the shoreline of Golden Arm Bay was found to lack significant results. No sample locations were found, though several anomalous assays were listed.

Rubicon Resources
Formerly known as the Rivard prospect, this property is adjacent (South) to the subject property. It was held over several decades by Mr. O'Brian Rivard, an area prospector who is now deceased and whose family has inherited the patents. Over several years, Mr. Rivard prospected his property. He dug and sampled several trenches, and drilled a number of short holes. He had several samples assayed, some revealing significantly anomalous gold values.

The following information is based on the files of the Ministry of Northern Development and Mines. Vancouver-based Rubicon Resources has conducted most of the work on this property over the past few years. The most significant of this exploration activity was the drilling program conducted between the winter of 2002 and fall of 2003. Fifteen holes were drilled, ranging in depth between 155 m and 630 m. Most were drilled to a depth of 300 —400 m. Almost all were drilled due South, at a dip of 45 degrees, and sampled thoroughly.

It is interesting to note that all holes intersected anomalous to commercial grade gold values. There were several intersections of lower anomalous values (approximately 100+ PPB) that extended over significant core lengths. Values of over 10,000 PPB were noted from six holes, all of these had flakes of visible gold. These intersections were all logged as quartz veins within mafic and ultramafic volcanics. Swarms of quartz veins were also found to be hosted by felsic volcanics, with moderate to lower gold values. In one instance, a quartz vein containing a gold flake was found in a felsic intrusive.

Mr. P. Vamos did not find any material within the file that provided geological interpretation of the results, nor did he locate a record of any attempt to correlate between the various gold occurrences. Files do indicate that Rubicon Resources terminated its option on this property, returning the title to Mr. Rivard., Red Star Resources This company was involved in a drilling project south of the West Red Lake Gold prospect. No details are available.


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