For over 110 years the property has been worked but not properly identified as to deposit type. The writer has looked at dozens of “similar” deposit systems over the past year to determine which classic model may fit this Mine but not enough data is currently available to make that final statement. At this point, only the facts of known geological structure can be detailed and the deposit nomenclature will follow over time.

The Mine property is known to be located on the main near vertical Silver King shear trend but has an irregular series of vertical and flat crossing faults. The vertical faults are at roughly 30 degrees to normal. The flat faults display a shallow dip to the west that undulates between 5 and 40 degrees. The faults generally contain one foot thick layers of mafic lamprophyre dyke materials but they have been seen in the older drifts in the order of 1.5 metre (5 feet) thick.

The faults and dykes cross and offset the originally emplaced sub parallel main vein systems. Most offsets are minor but some areas display 13.2 metre (50 foot) vertical and 91.4 metre (300 foot) horizontal movement. This results in a complex vein/fault/dyke network that is only now being understood. The proposed 2009-2010 underground and surface diamond drill programs are designed to assist in developing a better understanding for that complex structure. In addition, new 3D modeling is currently being developed to articulate that development process. The surface contours and the 257 Level have been laser surveyed and this will become the basic foundation for the new development work.

The exploration by the Company of the 257 Level was limited to chip and channel sample programs mirrored with mapping programs and a great deal of historical research into the old mine records. An extensive diamond drill program both underground and on surface is planned for the end of the year.  The geophysical program, including the magnetometer survey for 2008 was similar to the 2007 in locating several anomalies on the property. The entire geophysical program is still under assessment and review.

The results of the assay work and historical grade evaluations can be seen in Appendices A and B of the NI-43-101 report. The examination of the vein systems along with the re-drafting of many of the old cross sectional views had resulted in the determination of additional zones of interest at depth and branching out from all known veins in all directions.  There are no apparent points where highly mineralized areas have been mined to extinction. Indeed, all veins should be expanded where possible to drift for true average grade values. The numerous historical grade values and averages from the old production records show an average grade that is much higher than the calculated value obtained from the current evaluation methods.  The historical grade values have been used for calculating the inferred resource values in this report.

The Mine should be further explored with drilling to obtain structural data only. High or low grades found on vein and stringer intersections are so random that little value can be placed in the drill core assays. Drifting on the exposed veins will provide the real grades of an area once the bulk tonnage assays are known. The variability of the vein thicknesses and noted pinch point areas all lead to a skewing of the grade evaluations by drill core methods.

There are possible extensions of the drift located at survey point KP-50 in the 257 Level.  One is a simple extension of the current heading which is expected to intersect the Eagle Vein system roughly 425 metres to the west. A second pathway for the drift veers to the north and shortens the distance to 375 metres. While this would intersect the vein system in a shorter distance, using the original drift orientation would result in a more square intersection and better grid system for future exploration and possible development activities.

Further surface exposures are required to define and trace the orientations of the surface veins. As noted earlier in this report the Venango veins to the west were not discovered until 1936 using the original 1880’s sluicing methods. Current trenching methods with an excavator will be a more efficient process in locating and defining these surface elements.

The four new “Eagle Veins” found by the Company’s diamond drilling in 2008 are in the area of and on strike with these Venango veins.  The Eagle Veins appear to be parallel or sub-parallel to the main 6 historical vein package located on the east side of Eagle Creek.  The vein orientations were determined by hole plotting and logging efforts.  The strike of the veins is at least 700 metres and at this time felt to be open in all directions.