TODAY'S DISCOVERY, TOMORROW'S FUTURE

Creating shareholder wealth by advancing gold projects through the exploration and mine development cycle.

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Message: Market Perception

Both the Golden Mile and Sage's Golden Extension are similar to some of the old mining operations and both would probably be actively mined right now if companies operated in the same manner as they did historically. Both vein systems have shallow, high grade sections which was the only requirement to start digging. Pre 1960 there were no NI 43-101 reports, geophysics, geological models etc. If you found a vein with visible gold you started trenching and extracting gold. If you were lucky you made a dollar and if you weren't lucky you went broke. The best summary I've seen so far of the historical production is contained on page 11 of the Ontex Brookbank report:

http://www.ontexresources.com/pdf/Brookbank%20Property%20Description%20Report%2015%20April%2009.pdf

A lot more historical data is contained in the technical resource reports produced by Sage and Kodiak. Of the 14 mines listed for the GB area, half of them produced less than 100,000 oz. If the vein appeared to run out then they would stop and move on. This area clearly has a large number of veins, most of which would not support a mine by themselves. More discoveries are happening( like West Geraldton and Milestone) and eventually we will reach the critical resource level that will support a mill. The NI 43-101 resource estimate is an important event for the Golden Mile which will be followed by bulk sampling and pre-feasibility studies that will demonstrate an economic case for mine development.

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