Venus Zone

Geology
The geology of the property is characterized by mafic volcanics and felsic fragmental which are part of the Kinojevis Group, a litho-stratigraphic unit comprising mafic and felsic volcanics along with fragmental rocks; felsic porphyry dykes also intrude these geological formations.

Alteration
The mafic volcanics are usually chloritized and the fragmentals are sericitized.  Carbonate and chloritic alteration intensifies close to mineralized zones within mafic volcanics whereas halos of sericite and silica alteration are present around mineralized veins within felsic fragmental.

Structure
Three main shears have been defined by the work of ARBOR Resources & KANGELD Resources; the “Footwall shear”, the “Central Shear” and the “Hanging Wall shear” which are fairly parallel to the local stratigraphy. These shears vary from 10.0 m to 60.0 m in width.

Mineralization
Two parallel and mineralized structures (Veins 8 & 10) are defined on the property; Vein # 10 is located south of the railroad and Vein #8 north of the railroad.   These veins are oriented roughly 120° with an average dip of 50° to 60° to the NE.  The gold mineralization is directly associated to these quartz – carbonate +/- tourmaline veins hosted within corridors of highly sheared mafic volcanics.

The sulphide present within the veins is largely pyrite (locally large cubes) with minor chalcopyrite. Free gold is locally noticeable on the pyrite faces as a thin sheet. Minor disseminated pyrite (up to 5%) is also present within wall rock.

Based on previous surface drilling, Vein # 10, to the south of the railroad, was judged to be the most promising, as it carries the most gold intersections.  Vein #10 structure is located between the “Footwall” and “Central” shears. From underground exploration, further detailed information has been collected on the Vein #10; the host rock consists of a 22 m thick sequence of mafic flows and tuffs with minor felsic fragmental layers.  So far the gold mineralization of economic interest is present within fifteen (15) FLAT to slightly dipping (NE) quartz-tourmaline-carbonate-pyrite veins and their associated silicified and sericitized alteration halos (Davis, 1987).  An additional ten (10) sub-economic gold-bearing veins have also been located within a 165 meter long corridor plunging to the east (E) within the Vein #10 structure.

The #10 vein structure has been defined to a depth of 175 m. Numerous quartz – tourmaline-chlorite-carbonate veins were intersected in drilling.  These veins are irregular, discontinuous and appear to occupy tension fractures within the #10 vein structure.  The gold mineralization is always present within the veins or immediately adjacent to the veins.  Better gold grade (and visible gold) is directly associated to greater (> 3%) pyrite content.

A fairly typical section of the # 10 vein structure is well described within Davis’s 1987 report.

“Chip samples along the 70m drift were completed.  The locations and results of the sampling are contained in Appendix D.  The gold mineralization was found to be sporadically distributed throughout the 70m drift. The north wall contained a 24 m long mineralized flat to slightly north dipping quartz vein grading 10.19 g/t Au over an average width of 0.64 m, and a 4.20m long section grading 17.91 g/t Au over an average thickness of 0.41 m.  The south wall contained a 9.50m long mineralized quartz vein (correspond to the north wall 24m long vein) grading 16.21 g/t Au over an average width of 0.54 m.  Combining the north and south wall intersections, the major gold bearing quartz vein averages 16.75m long and grades 12.94 g/t Au across an average width of 0.59m.  This mineralized flat vein would appear to have a strike length of 16.75m, a thickness of 0.59m with a lateral extent of approximately 20m.  This gold bearing vein is representative of the type of mineralization within the No 10 Vein structure.

A 2,083 tonnes (2296.11 tons) bulk sample from the 70m drift was processed in 1986. Preliminary sampling in the 70m drift suggested that the sample would assay approximately 5.14 g/t Au (0.15 opt Au).  The assay at the crusher was 2.08 g/t Au and the calculated assay after the milling were 1.99 g/t Au.  The reason for the decrease in grade was the amount of dilution included within the bulk sample.  A recovery of only 74% was achieved but is not indicative of the recovery on the Barexor ore.

The Vein #8 structure, located to the north of the railroad, is located between the Central and Hanging wall shears.  It consists of a 30 to 45 m wide sequence of mafic flows and tuffs along with minor felsic layers (flows and fragmental).  No significant gold intersections were returned from surface drilling.