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RESEARCH REPORT September 10, 2006 Could Rice Lake be the Next Red Lake Gold Mining District? Figure: Goldcorp Inc. Stock Chart “Cash rich with no debt, Goldcorp is one of the most profitable mining companies in the world.” The Red Lake mine is currently one of Canada’s largest gold mines, producing more than 600,000 ounces per year. It is also one of the world’s richest gold mines and lowest cost producers. Investors may be surprised to learn, however, that merely 80 km to the west of the Red Lake mining district lies another Greenstone Belt that shares many geologic similarities with the Red Lake Belt. In fact, this belt lies in the same geological terrain, on the same major crustal break, and contains practically the same rock as the Red Lake Gold Camp. Moreover, just like the Red Lake Camp there has been gold exploration in this region since the early 1900s. The region is called “The Rice Lake Gold Belt” and it is located in mining friendly Manitoba, 150 km northeast of Winnipeg. The belt has already produced more than 200 gold showings and about 2 million ounces of gold. Over 80% of this production, however, has been produced by the San Antonio Mine (now the Rice Lake Mine), which was recently re-opened and has almost 1 million ounces of gold in reserves. Page 2 of 28 Introduction Prepared By Photo: The Rice Lake Mill – Bissett Manitoba “Merely 80 km to the west of the Red Lake mining district lies another Greenstone Belt that shares many geologic similarities with the Red Lake belt.” Despite its geologic similarities to the Red Lake mining district the Rice Lake district has produced only about 10% of the gold that the Red Lake Belt has. Moreover, most of the gold already discovered in the belt was uncovered in the World War II era before the advent of modern exploration techniques and geological theories. The reality is that the Rice Lake Belt resembles the Red Lake Belt geologically, but the exploration money simply hasn’t been spent. It has been estimated that over the last five years, fifty to sixty juniors were active in Red Lake and less than a dozen in Rice Lake. Moreover, the level of expenditure at Red Lake is estimated to be something in the order of more than one-hundred times that spent in the similar and geologically promising Rice Lake Belt. The important geological similarities between the Rice Lake Belt and the Red Lake Belt make Rice Lake an ideal location for finding large, high grade gold deposits. Only recently has a group of innovative and enterprising mining juniors descended upon the region armed with modern exploration techniques and geological theories. Will the Rice Lake Belt become the next Red Lake? The companies exploring the region are committed to making this become a reality. Geology Knows No Boundaries: Any geologist will tell you “geology knows no boundaries.” Often political boundaries are arbitrarily drawn on the landscape and cut right through prospective geological belts. This is the case with the boarders between Chile and Peru, Peru and Ecuador, and most importantly Ontario and Manitoba. The Rice Lake Belt is located just 80 km west of the Red Lake Mining District. Although separated by the Manitoba-Ontario border both of these districts are located within the Uchi Sub-province, have the same rock types, and are cut by the same crustal fault. “The important geological similarities between the Rice Lake Belt and the Red Lake Belt make Rice Lake an ideal location for finding large, high grade gold deposits.” “Geology knows no boundaries. Often political boundaries are arbitrarily drawn on the landscape and cut right through prospective geological belts.” Prepared By Page 3 of 28 Geology Knows no Boundaries A Brief History of Red Lake: Located in northwestern Ontario, Red Lake is currently one of the hottest gold mining regions in the world. Exploration and mining in the region began during the last great Canadian gold rush of the 1930s. Since that time the region has produced over 20 million ounces of gold. Figure: Location of the Red Lake District “Red Lake is currently one of the hottest gold mining regions in the world.” Prepared By Page 4 of 28 A Brief History of Red Lake Major Gold Producers in the Red Lake District: Mine Years of Production Ore Milled (Short Tons) Gold Produced (Troy Ounces) Average Grade of Production (oz/ton) Campbell 1949-Present 18,373,351 10,528,398 0.573 Goldcorp (Dickenson) 1948-Present 8,858,490 4,262,634 0.481 Madsen 1938-1976, 1997-1999 8,678,143 2,452,388 0.283 Cochenour- Willans 1939-1971 2,311,165 1,244,279 0.538 McKenzie Red Lake 1935-1966 2,353,833 651,156 0.277 Howey Gold Mines 1930-1941, 1957 4,630,779 421,592 0.091 Hasaga 1938-1952 1,515,282 218,213 0.144 Source: Ontario Geological Survey (2002) The Red Lake gold camp is situated in the Red Lake Greenstone Belt of Ontario. The belt is located 535 km north-west of Thunder Bay, Ontario and comprises a portion of the Uchi Sub-province of the Superior Province of the Canadian Shield. The Canadian Shield is home to some of the most prolific gold mining districts in Canada including: Hemlo, Timmins, and Kirkland Lake. The Uchi Sub-province is also home to other gold belts including the Rice Lake and Pickle Lake gold districts. The Red Lake region is best known for the Campbell and Red Lake mines. Together, these two world class, highly profitable, high-grade gold mines have produced more than 14 million troy ounces of gold since going into production in 1948. Altogether, the two mines currently produce around 700,000 ounces of gold per year. Photo: The Red Lake Mine
For more than fifty years the Red Lake region has proven its potential to host some of the richest gold deposits in the world. The region has attracted both the major mining firms and junior exploration companies. Goldcorp, AngloGold, Teck- Cominco, Kinross, and dozens of junior companies all have stakes in the region. Although gold has been produced in the region since the 1930s, the most significant discovery in the Red Lake region was made merely ten years ago. A Brief History of Red Lake Prepared By “The Red Lake region is best known for the Campbell and Red Lake mines. Together, these two world class, highly profitable, highgrade gold mines have produced more than 14 million troy ounces of gold.” Page 5 of 28 “The best place to look for a new ore body is near an old mine.” - Robert McEwan, former chairman of Goldcorp The Discovery of High Grade Gold at Red Lake: In 1989, Goldcorp Inc. took over Dickenson Mines Ltd, a company that had been operating one of the major mines in the Red Lake district, Arthur White mine, since 1948. When Goldcorp took over the mine it was struggling to survive. The mine had been starved of capital and its performance had always been overshadowed by its “wealthy neighbor” to the west – the Campbell Mine. For the first few years that Goldcorp operated the mine it lost money or barely broke even. Many onlookers believed that the mine was finished. Photo: High Grade Gold from the Campbell Gold Mine – Red Lake, Ontario
The Goldcorp geological team, however, saw great potential in the region surrounding the old mine. Moreover, Robert McEwan, former chairman of Goldcorp, felt that "the best place to look for a new ore body is near an old mine." As it turned out, McEwan couldn’t have been more correct. In 1995 Goldcorp initiated a massive $7 million dollar exploration program around the old Dickerson mine. Soon after the company began their exploration program they announced that drilling had discovered a spectacular high-grade body of gold mineralization. The mineralization had been discovered at a depth and location that was previously thought to have no potential. Page 6 of 28 The Discovery of High Grade Gold Prepared By Page 7 of 28 The Discovery of High Grade Gold Prepared By The discovery was amazing – the Company announced nine drill holes averaging 9.08 ounces of gold over 7.5 feet. Goldcorp’s persistence had been rewarded with one of the highest grade gold discoveries in the world. Discoveries of this magnitude only come along every several decades or so. Photo: Gold Sample from the Red Lake Mine
The impact of the discovery on the Red Lake district was dramatic. The discovery set off an exploration rush in the region the size of which hadn’t been seen since gold was first discovered in the 1930s. Millions of dollars surged into the region as exploration companies hoped to duplicate the success of Goldcorp. It became almost impossible to find an available drill contractor and local hotels were full. The exploration rush in the Red Lake region is still underway today. Currently four major gold mining companies and dozens of junior companies have stakes in the region. Today, the high grade gold zone that was discovered in 1995 contains more than 4.4 million ounces of gold reserves with costs of production at about $100 per ounce. The Red Lake Mine is now one of the richest, deepest, and most profitable gold mines in the world. Cash rich with no debt, Goldcorp is now one of the most profitable mining companies in the world. Figure: Production at the Red Lake Mine 2002 2003 2004 2005 2006 [Projected] 2007 [Projected] Ore Milled [Tonnes (000's)] 217 220 224 235 247 277 Milled Grade Au [g/t] 79 75 77 82 78 72 Total Recovery Au [%] 97 97 97 97 97 97 Total Production Au [oz] 525,900 532,000 551,900 616,000 600,000 625,000 Total Cash Cost [US$/oz] 65 80 92 94 100 98 CAPEX [US$ M] 19.1 65.6 49.7 57.9 64 30 “Goldcorp’s persistence had been rewarded with one of the highest grade gold discoveries in the world. Discoveries of this magnitude only come along every several decades or so.” Could the Rice Lake Belt be the next Red Lake Gold District? The discovery of the high-grade gold zone at Red Lake sent the region into the resource investment community’s spotlight. Many investors are now familiar with the Red Lake Greenstone Belt and the Red Lake Mine. The region is regarded as one of the most favorable places in the world to discover gold deposits. The Rice Lake Belt, located just 80 km west of Red Lake is another promising Greenstone Belt that shares geological similarities with the region yet has received far less exploration. Like the Red Lake Greenstone belt, Rice Lake is part of the Superior Province and Uchi Subprovince. Figure: Gold Production from the Rice Lake Belt Mine Dates Activity Production San Antonio (Rice Lake) 1932-68; 1982-83; Recently Re-Opened 1.4 million oz Central Manitoba 1928-1938 137,817 oz Gunnar 1936-1941 99,697 oz Ogama- Rockland 1942 and 1948-51 45,332 oz Jeep 1947-1950 13,824 oz Diana 1928-32; 1934-36; 1937-38; 1940-41 7,587 oz Solo-Ore Grande 1932-34; 1938-40 5,167 oz Lotus 1982 1,077 oz Poundmaker 1923-24; 1980-82-83 643 oz Cryderman 1931-32 373 oz Elora 1922 103 oz Onondaga 1933-34 32 oz Grand Central 1933 30 oz Total Historical Production: 1.7 million oz The Rice Lake region has seen intermittent gold exploration since the early 1900s. Already the region has produced more than 1.7 million ounces of gold from several past producing mines. Moreover, just weeks ago one of the regions largest past producing mines, the San Antonio, celebrated its grand reopening as two gold bars were poured in front of more than five hundred employees, community leaders, government officials, and shareholders. Page 8 of 28 The Next Red Lake Gold District? Prepared By “The Rice Lake Belt, located just 80 km west of Red Lake is another promising Greenstone Belt that shares geological similarities with the region yet has received far less exploration.” “Already the region has produced more than 1.7 million ounces of gold from several past producing mines.” Photo: The Rice Lake Mine (formerly the San Antonio Mine)
Rice Lake shares geologic similarities with the prolific Red Lake Greenstone Belt, has proven its potential through past production, and has available mining infrastructure nearby. Only recently has the region begun to be explored with modern geological theories and techniques. Like Red Lake, its well known neighbor to the east, the Rice Lake Belt has the potential to host world-class, high-grade gold deposits. Photo: High Grade Gold from the Rice Lake Mine “Rice Lake shares geologic similarities with the prolific Red Lake Greenstone Belt, has proven its potential through past production, and has available mining infrastructure nearby.” Prepared By Page 9 of 28 The Next Red Lake Gold District? . Manitoba – A World Mining Leader Prepared By Manitoba – A World Mining Leader: The Rice Lake Greenstone Belt is located about 150 km northeast of Winnipeg in Manitoba, Canada. People don’t normally associate Manitoba with mining; however, the province is a world leader in mining policies and is home to major mining companies such as Inco and HudBay Minerals. Figure: Stock Chart - Inco Ltd. Figure: Stock Chart - HudBay Minerals Inc. Page 10 of 28 “People don’t normally associate Manitoba with mining; however, the province is a world leader in mining policies and is home to major mining companies such as Inco and HudBay Minerals.” Page 11 of 28 Manitoba - A World Mining Leader Prepared By In 2004, Manitoba produced 20.1% of Canada’s nickel, 20.1% of its cobalt, 13.6% of its zinc, 7.3% of the country’s copper, and 3.4% of its gold and all of Canada’s tantalum and cesium. Figure: Operating Mines in Manitoba Company Mine Date Opened Metals Mined Inco Ltd. Thompson mines T1 & T3 1958 nickel, copper Inco Ltd. Birchtree Mine 1968 nickel, copper HudBay Minerals Inc. Trout Lake Mine 1982 copper, zinc HudBay Minerals Inc. 777 Mine 2000 copper, zinc HudBay Minerals Inc. Chisel North Mine 1998 copper, zinc San Gold Corporation Rice Lake Gold Mine 2006 gold San Gold Corporation San Gold #1 Mine 2006 gold Tantalum Mining Corporation of Canada, Ltd. Tanco Mine 1969 spodumene, tantalum, pollucite The Manitoban government has recognized the critical role mining and exploration play in the provincial economy. As a result, the government supports the industry through direct assistance to exploration companies through the Mineral Exploration Assistance Program (MEAP). MEAP was designed to increase exploration and stimulate activities that could lead to the development of new mines in Manitoba. The program provides exploration companies operating in the Rice Lake region with assistance up to 35% of approved eligible expenditures to a maximum of $400,000 per recipient per fiscal year. The Manitoban government has also offset the basic provincial mining tax rate with a variety of tax credits and allowances that provides on average an effective mining tax rate in Manitoba of 9%. In addition, new mines are eligible for a tax holiday and the provincial corporate income tax rate was recently reduced from 17% to 15%. The advantageous investment climate created by the Manitoban government has bolstered exploration throughout the province. In 2005, over C$43 million dollars was spent on exploration in the province. The total area of mining claims and mineral exploration licenses as of November 1, 2005 was 5,531,781 hectares compared to 3,298,445 in 2004. Surface exploration diamond drilling in 2005 was 85,000m, up from 61,766m in 2004. Over the last hundred years, Manitoba’s mining industry has spawned over 70 mines. Moreover, in the last decade alone, over 30 mines have operated in Manitoba. The long history of mining in the province has resulted in a welldeveloped infrastructure that continues to support the industry today. Manitoba has a well developed transportation system, the lowest published hydroelectric power rates in North America, a skilled labour pool, and an extensive service sector available to meet the needs of mining and exploration companies. The province also has a stable and secure land tenure system and provides easily accessible geoscience databases. “The Manitoba government continues to demonstrate the leadership necessary to attract and keep exploration in the province” – Richard Murphy, president and CEO of Independent Nickel Corporation Manitoba - A World Mining Leader Prepared By Page 12 of 28 It should be no surprise, therefore, that the province consistently rates as a Canadian and world leader in mining policies. According to a 2005 survey by an independent public policy organization, the Fraser Institute, mining and exploration companies rank Manitoba first in Canada and third in the world for its mineral policies. Buoyed by today’s record high metals prices, mining companies are coming to mining friendly Manitoba in droves in search of the next mine. Whereas some countries or provinces repel mining companies with their policies, Manitoba welcomes them with open arms. Figure: Deposits in Manitoba “According to a 2005 survey by an independent public policy organization, the Fraser Institute, mining and exploration companies rank Manitoba first in Canada and third in the world for its mineral policies.” “Whereas some countries or provinces repel mining companies with their policies, Manitoba welcomes them with open arms.” Prepared By Page 13 of 28 The Rice Lake Gold District: The Rice Lake Belt is Manitoba’s most significant gold district. The first small-scale gold production in the Rice Lake region occurred in 1916 and the first gold brick was poured in 1923 from the Poundmaker Mine. Photo: As early as 1919 the Rice Lake Region was featured in National Newspapers. The
Mining Speculator “Predicts Great Rush to Manitoba in Search of Gold.” Between 1920 and the start of World War Two over ten small mines operated in the Rice Lake Gold Belt. Surface exploration at this time resulted in the discovery of almost all of the current known deposits in the belt. Most of the mines went down to about 500 ft, with a couple going down to as much as 1000 ft. In contrast, the recently discovered high-grade zone discovered at the Red Lake mine goes down to as much as 7000 ft. Thus, based on depth alone, the Rice Lake Belt remains vastly under-explored. Photo: ION Mines, 1919 “Between 1920 and the start of World War Two over ten small mines operated in the Rice Lake Gold Belt.” “The Rice Lake Belt is Manitoba’s most significant gold district.” The Rice Lake Gold District The Rice Lake Belt covers the western extent of the Uchi geologic terrain. In fact, the Rice Lake greenstone belt, in Manitoba, together with the Red Lake, Bee Lake, and Pickle Lake greenstone belts, in Ontario, form the Uchi subprovince. Figure: Rice Lake is located on the Same Geologic Terrain as Red Lake and Pickle
Lake. The Uchi terrain consists mainly of volcanic rocks that formed in an ancient ocean as well as intrusive and sedimentary rocks. These rocks are home to the important Balmer formation, which is the host to the world class gold deposits discovered at Red Lake 80 km to the east and further east at the Pickle Lake Gold Camp. The Red Lake belt has produced over 20 million ounces of gold; while the Pickle Lake Belt has produced 2.5 million ounces of gold. Rocks in the Rice Lake Gold Belt are similar in age to those at Red Lake. Gold mineralization is present in both older rocks in the northern part of the Belt and younger rocks in the southern part of the belt. The San Antonio mine, which has contributed over 80% of the gold production from the belt to date, is hosted in the younger southern package of rocks. Limited production has been obtained from deposits in the northern part of the Belt. Nonetheless, the older rocks of the northern portion of the belt are considered highly prospective as they are regarded as equivalent to the Balmer series of rocks that host the world class gold mineralization at Red Lake. Sections of the Rice Lake Belt are also cut by the Wanipigow Fault. This is a regional shear fault that cuts through the Rice Lake Belt and extends eastwards to the Red Lake and Pickle Lake gold camps. Crustal breaks such as the Wanipigow Fault are often associated with the major gold camps throughout the Canadian Shield such as the Timmins gold camp. Since 1910, the Timmins area has produced nearly 70 million ounces of gold, making it one of the two of most productive gold camps in North America. “Only recently has the Rice Lake region begun to be systematically explored by innovative companies using modern exploration techniques and geological theories.” “Within historically safe countries such as Canada there are still highly prospective mining districts that remain to be fully explored.” Page 14 of 28 The Rice Lake Gold District Prepared By Only recently has the Rice Lake region begun to be systematically explored by innovative companies using modern exploration techniques and geological theories. The important geological similarities between the Rice Lake Belt and the Red Lake Belt, however, make the Rice Lake region an ideal location for finding large, high grade gold deposits. Mining infrastructure is already present in the town of Bissett, which is home to the Rice Lake mine and mill. Moreover, the region has already proven its potential, as it already contains more than 200 showings of gold and has produced almost 2 million ounces of gold. These gold discoveries were made using outdated exploration technologies and geological theories. Armed with new techniques and theories, within the last decade junior exploration companies have only begun to scratch the surface of the belt. Could the Rice Lake region be the next Red Lake? The exploration companies operating in the region are clearly committed to making this statement a reality. Conclusion: As a result of the high metal prices we are experiencing today exploration companies are going to the far reaches of the world in search of the next mine. Some of the countries such as Venezuela and Mongolio, have geopolitical climates that make investors and companies shy away. What many people don’t know, however, is that within historically safe countries such as Canada there are still highly prospective mining districts that remain to be explored using modern exploration techniques and geological theories. The Rice Lake Belt, located 80 km west of Red Lake is one such region. It is a vastly under-explored greenstone belt with the potential to host high-grade gold deposits on par with the major gold districts of North America. Page 15 of 28 Conclusion Prepared By RESEARCH REPORT Analyst: John Lee, CFA
September 10, 2006 Contents ● Introduction ● San Gold
Corp. ● Harvest Gold
Corp. ● Wildcat
Exploration Ltd. ● Grandview
Gold Inc. ● Marum
Resources Inc. Exploration in the Rice Lake Belt Introduction Enterprising exploration companies have descended upon the Rice Lake Belt in search of high-grade gold deposits. In this section, we outline several of the most promising companies operating in the region. We begin with the regions only current producer, San Gold Corporation. San Gold Corporation: On August 23 , 2006 gold mining returned
to Manitoba and Rice Lake. That day more than five hundred San Gold shareholders, one hundred employees, and dozens of community leaders and government officials gathered in Bisset, Manitoba to witness the grand re-opening of the San Antonio mine and the live pouring of two gold bars. The San Antonio mine, operated by San Gold and now referred to as the Rice Lake Gold Mine, is Canada’s newest and Manitoba’s only gold miner. Photo: Rice Lake Mill in Bissett, Manitoba Symbol SGR.V 52 Week Range C$0.41 - 2.25 Shares Outstanding 97,077,054 Market Cap C$146 M Telephone (204) 794-5818 Fax (807) 543-2435 Website www.sangoldcorp.com Email info@sangoldcorp.com Page 16 of 28 San Gold Corporation Prepared By Beginning in 1932, the San Antonio Mine produced gold for 35 straight years before shutting down in 1968. The mine was briefly re-opened in the 1980s and 1990s, but remained dormant for several years before San Gold acquired it in 2004. Altogether, the mine has produced 1.35 million ounces of gold. Since 1994, more than $120 million has been spent on capital for the mine and mill. Within the Rice Lake Belt, San Gold already has two mines in production and has two other projects pending National Instrument 43-101 classifications for resource estimates. Figure: San Gold #1 Mine (ACA Howe, 2005) Category Zone Tons Grade Contained Ounces Indicated Resources Main 283,178 0.22 62,299 Inferred Resources Main 438,829 0.23 90,860 Hanging Wall Zone 138,426 0.22 30,293 Footwall Zone 117,331 0.19 22,656 Total Inferred Resources 694,586 0.22 152,809 Figure: Rice Lake Mine (ACA Howe, 2004) Category Tons Grade Contained Ounces Measured Resources 539,000 0.24 127,600 Indicated Resources 728,100 0.27 198,680 Total 1,267,100 0.26 326,280 Inferred Resources 734,700 0.31 225,000 Figure: Combined Recoverable Gold, Rice Lake and San Gold #1 Mines (San
Gold Corp, 2006) Category Tons Grade Contained Ounces Measured Resources 539,000 0.24 129,360 Indicated Resources 1,011,278 0.26 262,932 Inferred Resources 1,429,286 0.27 385,907 Total 2,979,564 0.26 774,687 The Rice Lake and San Gold #1 deposits are currently being mined to feed the Rice Lake mill. The mill has a 1,250 ton/day capacity, and was recently operating at 400 tons per day. The goal for this year is to ramp up production to two-thirds of mill capacity or 800 tons per day. “It's been a very exciting time, after working so long and so hard on this project to finally see an end result that's exceptionally good for the area and for the province of Manitoba” – Hugh Wynne CEO of San Gold After Re- Opening the San Antonio Mine Page 17 of 28 San Gold Corporation Prepared By Photo: Ball Mill Area - Bissett Mill
Besides increasing production at the mill, San Gold is also focused on quickly identifying more economic mineralization on its landholdings in Rice Lake. Already, the company has spent more than C$7 million dollars on exploration this year. In April of 2006, the company discovered a third deposit, the Cartwright zone, located one kilometer west of the Rice Lake Gold Mine. Continued exploration of the Cartwright Zone has the potential to significantly increase San Gold’s resources at Rice Lake. San Gold is a leader within the Rice Lake Gold Belt. Having just opened two mines and a mill, the company has committed itself to sustaining gold mining in the region. The company expects to have a positive cash flow position by the first quarter of next year. If this is the case, San Gold will single-handedly signal the return of profitable gold mining to the Rice Lake Gold Belt. Photo: San Gold Operations, Bissett, Manitoba “Besides increasing production at the mill, San Gold is also focused on quickly identifying more economic mineralization on its landholdings in Rice Lake.” “Having just opened two mines and a mill, the company has committed itself to sustaining gold mining in the region.” Page 18 of 28 Harvest Gold Corp. Prepared By Harvest Gold Corp. Harvest Gold Corp. is committed to developing the Rice Lake Gold Belt into one of North America’s marquee gold producing regions. The company has several promising properties in the Rice Lake Belt and is currently in the midst of an aggressive 2006 drilling campaign. Properties Owned by Harvest Gold in Rice Lake Within the Rice Lake Belt, Harvest has been focused on its Lesavage North Property (formerly known as the Johnston Property). The property covers 2313 Hectares and is located approximately 25 kilometres east of Bissett, Manitoba. The company is particularly interested in a large prospective gold target discovered in 2005, known as the Red Hill Zone. This zone has geologic features similar to those exhibited by the major gold deposits in the prolific Red Lake Gold Belt. Drilling at the Red Hill Zone began in early 2005 and produced intercepts up to 12.7 g/t gold over 1 meter. Encouraged by the early drill results the company began a follow up field program which identified several highly prospective anomalies along a strike length over 1 km and at depths up to 300m. In June of 2006, the company began drill testing these prospective targets in order to determine the strike extent of the Red Hill Gold Zone. The program consisted of 6 holes totaling 1402 meters. Drilling was recently completed and the company is now awaiting assay results from the lab. Symbol HVG.V 52 Week Range C$0.12 - 0.31 Shares Outstanding 25,236,311 Market Cap C$5.5 M Telephone (604) 986-2020 Fax (604) 986-2021 Website www.harvestgoldcorp.com Email info@harvestgoldcorp.com “The combination of Balmer equivalent rock, extensive alteration and gold occurrences makes for highly prospective real estate and this is the reason Harvest Gold is acquiring a large strategic land position in this belt." - Mr. John A. Roozendaal B.Sc, President and Director of Harvest Gold Corp. Page 19 of 28 Harvest Gold Corp. Prepared By Photo: Mr. John A. Roozendaal, President and Director Overseeing the 2006
Drilling In addition to the current drilling program on August 30 , 2006 Harvest
announced that it optioned two claims immediately east of its Lesavage North property. The claims cover an area of 121 Hectares and extend the company’s property package a further 1.5 kilometers east of the existing property boundary. Photo: Core from the 2006 Drilling Campaign
Alongside the work being done in Rice Lake, Harvest has additional prospective properties in Nevada and northern Manitoba. In Nevada, the company is exploring a large gold property at Garcia Flats in the South Carlin Trend and an advanced property with a gold-silver resource at the Longstreet Mine, in Northern Nye County. In northern Manitoba at Assean Lake the company has claims that cover a prospective high-grade gold target. Harvest Gold’s management team is determined to discover the next major gold deposit in the Rice Lake Belt. Results from the company’s 2006 drilling program at its Lesavage North property are expected to be released in the next few weeks. Early geological work and drilling has indicated that the Red Hill Zone has the potential to hold a significant gold resource. “The company has several promising properties in the Rice Lake Belt and is currently in the midst of an aggressive 2006 drilling campaign.” “The recent opening of two gold mines by San Gold Corporation and the first gold pour in Bissett last week demonstrates the potential of the Rice Lake Gold Belt and supports management’s conviction that this camp presents a tremendous opportunity to make additional discoveries.” - Dr. George Gale, VP Exploration Page 20 of 28 Wildcat Exploration Ltd. Prepared By Wildcat Exploration Ltd: In the past landholdings in the Rice Lake Belt were small and had a diverse ownership which made exploration difficult. Many claims were staked during the early gold rush the region experienced in the 1920s and 1930s. Often the claims were large enough to contain indications of gold mineralization, but too small to hold an economic deposit. Wildcat Exploration Ltd. has overcome this obstacle and has consolidated one of the largest land holdings (~240 sq. km.) in the belt. The company’s claims from east to west are: Poundmaker, Jeep, Siderock, and Garner. Symbol WEL.V 52 Week Range C$0.25 - 0.54 Shares Outstanding 22,967,059 Market Cap C$8 M Telephone (204) 944-8916 Fax (204) 944-8918 Website www.wildcat.ca Email w.stebbe@wildcat.ca Figure: Wildcat’s Rice Lake Properties
All of Wildcat’s properties are intersected by a major crustal break, the Wanipigow Fault. The fault is similar to the Porcupine-Destor and Larder- Cadillac “breaks” in the prolific Timmins and Kirkland Lake gold camps. Gold mineralization is known to be controlled by these types of faults. Located 7 km west of Bissett, Manitoba, the Poundmaker Property is the largest land package (21 km x 15km) in the Rice Lake Belt. The property is so large, in fact, that four distinct gold exploration targets have already been defined within it. These are: the Rio Gold Zone, Saxton Lake Deformation Zone, Poundmaker Mine, and the Gold Creek Shear Zone. Page 21 of 28 Prepared Wildcat Exploration Ltd. By Photo: Vein at the Poundmaker Mine, Poundmaker Property
The Poundmaker target is home to the past producing Poundmaker Mine. The mine produced about 700 oz of gold in four years of small scale production. In 2006, the Company completed an aggressive summer exploration program on its newly discovered Rio Gold Zone within the Poundmaker Property. The program included geological mapping, prospecting, and geophysical/geochemical surveys. The geological work exposed several additional parallel and cross-cutting features and extended the strike length of the showings from the previous year’s discoveries. The company is currently formulating a large drill program for the property, which is expected to start in a few weeks. The Jeep property is located 12 km east of Bissett. The property consists of 17 contiguous claims covering 2050 hectares. Like the Poundmaker property, the Jeep property is named after a small past producing mine located within its boarders, the Jeep Mine. In 1947-1950 the Jeep Mine produced 13,824 ounces of gold from 16,319 tonnes of ore. Photo: Surface Sample Jeep Mine “Wildcat Exploration Ltd. has consolidated one of the largest land holdings (~240 sq. km.) in the belt.” Page 22 of 28 Wildcat Exploration Ltd. Prepared By In 2005, within the Jeep claim block Wildcat discovered a PGE (Platinum, Palladium, Nickle) occurrence. The best grab sample from the target assayed 0.44% nickel, 0.18% copper, 1.4g/t palladium, 0.39 g/t gold, 65 ppb platinum. The Company is excited about the discovery and intends on conducting an extensive drill program on it in 2006-07. The Siderock property contains the Portage Gold Zone. This zone measures 400m wide by at least 1.8 km long and returned sample results as high as 21 g/t. The zone was expected to be drilled this year; however, due to last year’s mild weather the program was shelved. The gold discovery remains high on the company’s list of drill targets. Finally, the Garner claim block lies at the southeastern end of the Rice Lake belt, just south of the past-producing Gunnar Mine. The Gunnar Mine operated from 1936 to 1942, producing 101,400 ounces of gold at an average grade of 10.6 g/t. The property hosts a number of gold occurrences, however, apart from some basic prospecting most areas of this property are completely untested. Wildcat Exploration Ltd. is a major exploration player in the Rice Lake Gold Belt. The company has consolidated the largest land holdings in the region and has four massive claim blocks. These claims are strategically located on and near past producing deposits and are cut by the Wanipigow Fault. The company is committed to advancing exploration at the Rice Lake Belt and is poised to make new gold discoveries. “The company is committed to advancing exploration at the Rice Lake Belt and is poised to make new gold discoveries.” Page 23
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