Kenville Gold Project - Summary

The Kenville Mine property was originally acquired by an Anglo Swiss subsidiary in 1992. After a corporation re-organization in 1997, its ownership was transferred to Anglo Swiss. It consists of 15 Crown granted (446.99 acres) and 10 staked mineral claims (617.8 acres) and 91.78 acres of deeded fee simple surface property. It is located just west of Nelson, British Columbia at an elevation of between 600 and 1,200 metres. It is easily accessed by the Kenville Mine Road, which connects directly to Provincial Highway 3A. Present facilities at the minesite include a 250 tonne per day ore crusher, extensive underground mining equipment, compressor, maintenance shop, assay lab, engineering office, core storage and mine manager’s residence. The City of Nelson supplies electrical power and water is obtained from Eagle Creek.

The property has a long history. The Granite Poorman deposit (later renamed Kenville), staked in 1888, was one of the first vein deposits discovered in the Nelson area. From 1890 to 1954 it produced 2,024 kilograms (2 metric tonnes) of gold and 861 kilograms of silver from 183,138 tonnes of ore. Although copper lead, zinc and tungsten were known to be present, no record of significant production of these metals is found. Although the property had not been in production for years, figures released in 1990 ranked the property as the 26th largest gold producer in British Columbia history.

The vein system of the Kenville Mine forms a northwest trending system of quartz veins within mafic to ultramafic intrusive rocks of the Eagle Creek plutonic complex, parallel to the northwest trend of the Silver King shear to the southwest. The veins comprise milky to glassy quartz with pyrite, chalcopyrite and minor amounts of galena, scheelite, spalerite and some visible gold. Gold production was derived from 5 main veins occurring across an east-west distance of 518 metres. Individual vein widths vary between less than a centimeter up to 2 metres, for an approximate average width of 0.6 metres.

Veins display strong continuity both along strike and down-dip. In 1995 and 1996, Anglo Swiss and Teck Corporation, with Teck as operator, conducted prospecting, magnetometer, VLF-EM and induced polarization surveys over a western portion of the property, that had undergone limited exploration in the past. Teck explored the Kenville property for a potential copper-gold porphyry target.

Teck drilled 12 drill holes totaling 2,460 metres, mainly focused on I.P. chargeability high zones. The Teck diamond-drilling program located numerous zones of copper-gold-silver mineralization, with widespread silica-potassic-related concentrations of molybdenum.

The 1995 drill program discovered a new quartz vein on the west side of Eagle Creek, which intersected a 0.26 metre quartz vein carrying semi-massive coarse pyrite with visible gold, assaying 82.15 grams per tonne gold and 34.1 grams per tonne silver. Despite promising results, Teck returned the property to Anglo Swiss in 1997. This was due to a combination of the adverse political climate at the time and the decline in metal prices. In 1997, Anglo Swiss carried out a soil geochemical survey, in the same area as the Teck geophysical grid.

The survey consisted of 300 soil samples with results defining a strong copper-gold-silver-molybdenum anomaly of approximately 250 metres wide and 1,000 metres long. The anomalous zone appears supportive of a zone of bulk-tonnage copper (gold)-silver-molybdenum potential for this part of the Kenville property. The soil survey was also successful in delineating the surface expression of the Eagle gold vein.

2007 Geophysical and Diamond Drilling Program

Anglo Swiss Resources Inc. is initiating a geophysical and 1500 meter diamond drilling program on its Kenville mine property, starting August of 2007. The 2007 exploration program is designed to test the strong geochemical anomaly on the west side of Eagle Creek, previously explored by Teck Exploration Ltd. in 1995 and 1996. The present exploration program will test mineral zones along an indicated one-kilometre-long zone, containing strongly anomalous values in gold, silver, copper and molybdenum. Some highlights of the Teck drilling program included:

• 1.03 per cent copper, 8.18 grams per tonne silver and 439 parts per million Mo across 8.7 metres in drill hole TK-95-03;
• 82.15 g/t gold and 34.1 g/t silver across 0.25 metre in drill hole TK-95-05;
• 2,289 ppm copper and 365 parts per billion gold across 7.6 metres in drill hole TK-96-05.

Generally strong alteration is present throughout the majority of the Teck drill holes with locally strong concentrations of gold, copper, silver and molybdenum. The company believes that the past drilling, geochemical and geophysical programs are indicative of a potential porphyry system of significant extent and grade.

The mineral system was only partially evaluated by past drilling programs, with the strongest part of the anomalous zone yet to be evaluated. Exploration of the Kenville property will consist of geophysical surveys over the presently established geochemical grid and will consist of magnetometer and VLF-EM surveys on 100-metre line spacings throughout the one-kilometre extent of the geochemically indicated mineral zone. Results of the geophysical work, in combination with past geochemical surveys, will be used to design a diamond drilling program to test the mineral zone throughout its indicated extent.

At present, it is proposed that at least seven drill holes will be carried out along the strike of the anomalous zone, totalling approximately 1,500 metres of drilling. The preceding excerpts from the 1995 and 1996 Teck reports on the work programs on the Kenville property predate the NI 43-101 standards and are historical in nature. The Teck program consisted of 12 drill holes totalling 2,427 metres with a large percentage of the drill core assayed. The assays were numerous and ranged from no significant values up to what was considered even at that time to be of significant values.

Recommended Program

It is the intent of the present operators to carry out an extensive exploration program on the Kenville property. Exploration should continue the Teck exploration work on the west side of Eagle Creek, for potential economic grades of bulk-tonnage porphyry style copper-gold-silver-molybdenum mineralization. This work would entail excavator trenching and diamond drilling on recognized geophysical and geochemical targets. The Kenville Mine requires investigation to determine further ore reserve potential both along the southerly down-plunge strike extent of known veins as well as the down-dip or depth potential of existing veins.