Properties

Uchi Lake Gold Property at Red Lake, Ontario

On November 22, 2006, the Company entered into an option agreement to earn a 100% interest in the Uchi Lake gold property east of the town of Red Lake, Ontario. To exercise this option, the Company is required to make cash payments of $200,000 by September 22, 2009, issue 2,000,000 common shares and incur $500,000 exploration expenditures over a three-year period ending November 22, 2009. The property is subject to a 2% net smelter return royalty where the Company can buy down to a 1% NSR at a cost of $1,000,000. As of December 31, 2008, the Company had made the payments totaling $100,000 in cash and issued 2,000,000 common shares to the vendor.

The Uchi Lake property consists of 20 mining claims with a total area of approximately 800 acres (~325 hectares), within the Burch-Uchi-Confederation Lakes greenstone belt, 90 kilometres east of Red Lake. The property has been explored for gold at various times since 1937, with the bulk of the drilling activity taking place in 1993 and 1994.

The Company plans to conduct an exploration program on the property, including prospecting, power stripping and diamond drilling, both on the Woco Vein and other areas of gold potential. These include the Uchi Lake deformation zone, which lies in the southeastern part of the property and has seen very little prior exploration, and the north-south shear structure that hosts the Uchi Gold Mine. The Uchi Mine, which lies 1.2 kilometres north of the property, produced 114,000 ounces of gold between 1937 and 1942. Its host structure, which crosses the property, is not exposed; it was drilled in 1937 but results are no longer available. Preliminary consulting work has started.

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