Geology

The Fenelon Property is located within the Archean aged Harricana-Turgeon greenstone belt, part of the famed Abitibi Sub-Province of the Canadian Shield. The property covers approximately 10 kilometres of the Sunday/Detour Lake Deformation Zone ("SLDZ") with the high-grade Discovery Zone located along a northwest trending splay roughly two kilometres north of the east-west trending DLDZ. The former producing Detour Lake gold mine located 65 kilometres to the west, in Ontario, and the Fenelon deposit share similar structural and host rock relationships and are both located proximal to the SLDZ.

The SLDZ is one of four principal, east-west trending "breaks" which are the loci of over 125 million ounces of historic gold production from the Abitibi -- making it the second largest gold-bearing domain in the world. The breaks several as the principal conduits for gold-bearing fluids throughout the Abitibi. Gold deposits in the Abitibi typically exhibit high grades -- on average just under 8 g/t gold -- and tremendous vertical continuity with the Detour Lake deposit and others in the Abitibi mined to depths exceeding 2,000 metres.

The high-grade gold mineralization within the Discovery Zone on the Fenelon property occurs in silicified, sub-parallel, east-southeast-trending, near-vertical shear zones which range in thickness from tens of centimeters to more than ten metres. In the high-grade zones discovered to date, gold occurs dominantly as free grains associated with pyrrhotite, chalcopyrite and pyrite. The majority of the gold mineralization identified to date is hosted within an ultramafic intrusion which cuts sedimentary and felsic intrusive rocks in proximity to the larger Jeremie pluton. The host rocks throughout the Fenelon property have undergone greenschist facies metamorphism with local amphibolites grade facies being exhibited in proximity to the Jeremie batholiths.

The most recent drill program on the property (2006-07) led to the discovery on a inter-layered sequence of komatiitic ultramafic and felsic rocks on the northeastern portion of the property. Drilling has identified broad areas of anomalous nickel and platinum group metal mineralization within the ultramafic flows and anomalous zinc-copper mineralization of possible volcanic-hosted massive sulphide affinity with the felsic volcanic rocks.

There are no natural rock outcrops in the area of the Discovery Zone and few known throughout the property. Geological interpretation relies on the interpretation of geophysical studies, drilling, bedrock exposures created during open pit sampling and underground development work. In the Discovery Zone area glacial tills are 4 to 8 metres thick. In general, the thickness of overburden increases from south to north on the property.