Detailed Geology

Known placer workings in the area include the Cedar Creek Placers, the McKeown Placers, and the historicBullion Pit- one of the largest placer gold mines in the world, measuring 1500 m by 450 m by 125 m (4920' by 1476' by 410'). Spanish Mountain has been proposed as the possible source of these gold-rich gravels (Minfile 093A 043).

The Spanish Mountain area comprises Upper Triassic sediments and volcanic rocks and is part of the Quesnel Terrane near its Eureka Thrust contact with the older Omineca Terrane.

Mineralization is hosted by highly folded and faulted metasedimentary rocks with some interstratified volcanics of the Nicola Group. The metasedimentary rock consists of slaty to phyllitic, dark grey to black shale and siltstone, grey limestone and some banded tuff, volcanic breccia and pillow lavas higher in the stratigraphy.

Spanish Mountain Developments

Work by Spanish Mountain Gold Ltd. (SMGL, formerly Skygold Resources) has been successful in outlining large areas of low-grade gold mineralization close to surface, with bulk mineable potential. Gold-bearing zones are stratigraphically controlled, trend NW-SE, and extendover 1.44 sq.km(over 0.56 sq.mi.),open in all directions. Spanish Mountain was recently interpreted as a Sediment Hosted Vein Deposit (seeSHV Deposits section).

This section is a summary of published findings, including Geochemistry, Drilling, Metallurgy and Geophysics, as contained in the websites and sedar filings of SMGL/Skygold. Please seewww.spanishmountaingold.comfor current information.

Gold mineralization on Spanish Mountain is described as of two types:

1. High grade quartz veins/stockworks with gold, galena, sphalerite, chalcopyrite, tetrahedrite and pyrite.
2. 2. Lower grade, bulk tonnage ore represented by auriferous pyrite in a graphitic silty shale along a contact between argillites and greywackes.

According to SMGL/Skygold, "Drilling within the Main Zone has consistently intersected gold in the Upper Argillite horizon which now forms a sheet of mineralization traced along strike for approximately 800 metres with a width of approximately 500m and up to 135 metres thick" (2007.11.15). Freeport's claims are adjacent to and on strike with the Main Zone.