Similkameen Mining Division
26 km SW of Princeton, BC, Canada
15 km SW of the producing COPPER MOUNTAIN MINE

There are 120,000,000 tonnes of mineralization which have been outlined on the Whipsaw Property in two small areas which are still open in all directions, according to the information provided in the geologist’s reports produced in 2006. The average grades indicated there are shown in the table below. In the 120,000,000 tonnes alone, not counting any further tonnage which may be developed, the expected recoverable metals are as follows:

• 636,000,000 lbs of copper (US$ 2,544,000,000 at $4.00 per lb)
• 45,000,000 lbs of molybdenum (US$ 675,000,000 at $15.00 per lb)
• 768,000 oz of gold (US$ 1,398,000,000 at $1820 per oz)
• 7,236,000 oz of silver (US$ 294,500,000 at $40.70 per oz)

At $41.17 per tonne of recovered metals, this is the equivalent of 10.29 lbs of copper per tonne which equals a copper grade of about 0.47% copper/tonne By way of comparison, Mitsubishi paid $28,750,000 for a 25% interest in the Copper Mountain Project after advancing $25,000,000 for drilling and other work on the property. They also arranged for a further $250,000,000 financing for the project. The three other ore deposits in the area near Whipsaw are the Copper Mountain, Ingerbelle and Virginia. Together these show that there is very good potential for the Whipsaw to host additional deposits of equal or greater size due to the excellent geological setting and the amount of mineralization which has already been discovered on various parts of the Whipsaw property. In addition, the mineralization and anomalous areas in the prophyry area are open in all directions and the potential for a larger orebody is excellent. For a cost of under $2,000,000 in additional exploration work, we should be able to have a 43-101 compliant Pre-feasibility Study completed by next year. If this program is as successful as we believe, it will greatly enhance the value of the property and make it very attractive to Major Companies to put into production.

The last major report on the Whipsaw provides an excellent summary of the property and the main mineralized zones.