Gold – Beardmore

1. Northern Empire

In 1996, Roxmark acquired a 100% interest in the Northern Empire property from Pancontinental Mining (Canada) Ltd. and Ateba Mines Inc. The property consists of 72 patented and leased claims covering 2,644 acres in McComber and Summers Townships, and includes a permitted mill complex. The mill currently has a capacity of 200 tons-per-day, but has been designed for expansion to 500 TPD. It has been upgraded and readied to process bulk gold and molybdenum..

Historically, the Northern Empire mine was operated successfully by Newmont Mines, producing 149,053 ounces of gold from 425,866 tons with a recovery of 0.35 oz. in gold per ton. It is serviced with a shaft to 2,460 feet with development above and below a major flat diabase sill. The mine was inactive since 1988.

In 2007, Roxmark carried out a 26-hole, 2,711-metre diamond drilling program at the Mine, described in a 43-101 report, which established that the Contact Zone has gold mineralization potential of 1,450 meters. Despite the fact that only 200 metres of this were drilled in 2007, in a system known to host good gold mineralization to a depth of more than 600 metres, Peter Bevan, Consulting Geologist, identified more than 25,000 oz of gold in this limited area.

For 2008, Roxmark plans a $1.1 million Winter drilling program (98 holes, 6,125-metres) on the Contact Zone, followed by a $900,000, 49-hole Summer program. A $10.3 million program is planned for late 2008 to re-open the mine--dewatering to 2,460 feet, drilling two vein structures from underground, and completing a 5,000-ton underground bulk sample--putting the Company in a position to continue with full-scale mining following completion of a positive feasibility study.

 

2. Sand River Mine Property

In 2000, Roxmark acquired a 100% interest from Rio Fortuna Exploration Corp. in the Sand River Property, 37 contiguous mining leases covering 1,692 acres in Eva Township.

The Sand River-Leitch discovery was made on the Sand River Mine in 1934 and the vein system was extended to the northeast onto the Leitch Mine in 1935. Servicing was by a three-compartment shaft to 2,656' depth. Sand River Resources processed 157,870 tons with a recovery grade of 0.32 oz. of gold per ton yielding 50,065 oz. gold.

3. Leitch Property

In 2003, Roxmark acquired from Teck Cominco Limited an approximate 63% interest in the Leitch property, consisting of 10 patented claims covering 1,276 acres in Eva and Summers Townships. The property is governed by a Joint Venture agreement dated June 30, 1987 between Teck and San Paulo Exploration Inc., now AdvanteXCEL.com Communications Corp., as amended April 30, 1990 and October 30, 1990. The other Joint Venture party holds the balance of approximately 37%. Roxmark is the operator.

The Leitch Mine was serviced by a three-compartment shaft to 3,006', with a winze from the 19th or 2,875' level to the 30th or 4,525' level. It operated continuously from 1937 to 1965, processing 906,395 tons with a recovery of 0.92 oz. of gold per ton yielding 860,648 oz. gold at US$35/oz.

4. East Leitch Property

In 2003, Roxmark acquired from Kinross Mines a 55.25% interest in the East Leitch Property covering 20 claims held under a 21-year lease on 832 acres in Summers Township. The property is governed by a Joint Venture Agreement dated September 1987 between Falconbridge Limited (now Kinross) and Minerals Anodor Inc. (now Afri-Can Marine Mineral Corporation). In January 2005, Roxmark acquired the remaining 29.75% interest from African Marine.

Gold – Geraldton

1. Magnet Mine Property

Acquired in 1980, Roxmark’s 100% interest in the Magnet Mine property (formerly held by Magnet Consolidated Mines Limited) consists of 27 mining claims under a 21-year renewable lease covering 974 acres located in Errington Township. Also included in the 27 mining leases are a total of 19 claims covering 812 acres which includes surface rights to leases on the property.

The Magnet Mine property is equipped with headframe, production hoist, compressors, certain mining equipment, generator, hydro substation, shop, dry, office, etc. The mine was inactive since 1988.

The property produced 152,000 ounces of gold from 360,000 tons for an average grade of 0.42 oz. in gold per ton. The mine is serviced with a shaft and winze to 2,640 feet depth.

Roxmark drilled an exploratory hole from the shaft station at the 11th level south through the Bankfield Tombill Fault. It encountered a high grade intersection averaging 1.32 oz. in gold over 4.4 feet. The intersection will be followed up by drilling from the mine workings west on the 11th level and east of the shaft on the 7th level. This zone will probably surface on the Company-controlled McLellan Joint Venture property. This intersection is not included in the potential resources. The mine was inactive since 1988.

Historical tonnage calculation by J. C. Fagan and associates dated March 1, 1999 estimated 23,055 tons grading 0.49 oz. of gold per ton. This estimate is not in complaint with NI 43-101.

2. McLellan Joint Venture Property

In 1981, Roxmark acquired from Lynx-Canada Explorations Limited a 37½% interest in eight patented mining claims covering 336 acres in Errington Township. The interest was subsequently increased to 50%.

3. Bankfield Mine Property

In 1992, Roxmark acquired from Golden Trio Minerals Ltd. a 100% interest in 18 patented mineral claims covering 844 acres located in Errington and Lindsley Townships.

The property produced 66,000 ounces of gold from 229,000 tons for an average grade of 0.29 oz. gold per ton. The mine was serviced from a shaft and a winze to a depth of 1,275 feet. Based on historical data, Roxmark believes that exploration chances are excellent, including the depth extension.

4. Little Longlac Mine Property

In 1995, Roxmark acquired from Algoma Steel Inc. the Little Longlac Mine Property, which consists of 39 patented mining claims and licensed occupation leases on 1,538 acres in Errington and Ashmore Townships. The property is under a 99-year lease from January 1, 1974 and produced 605,000 ounces of gold from 1.8 million tons at an average recovered grade of 0.34 oz. in gold per ton. Development included a shaft and winze to a depth of 3,950 feet.

5. Algoma Lease

In conjunction with Little Longlac Mine Property, Roxmark acquired from Algoma Steel Inc. 24 mining leases and licences of occupation on 910 acres in Errington Township.

6. Placer Dome-Key Lake Property

Between 1995 and 1997, Roxmark earned from Placer Dome Canada Limited and Key Lake Explorations Limited a 100% interest in 26 patented claims and mining leases (of which 10 claims are freehold with surface rights) on 1,339 acres in Lindsley Township. To earn the interest Roxmark invested $200,000 in exploration expenditures. A total of $1.8 million was spent by the previous owners.

In 1997, Cyprus Canada Inc. completed an exploration program comprising 13 holes and 2,270 metres drilled, with five holes intersecting visible gold. The drilling was part of a Cyprus program to determine the possibility of developing open pit gold mines in the Geraldton area.

Drilling focused on either side of a three-compartment shaft with three underground levels. It confirmed the presence of gold mineralization and added to the extensive drilling previously carried out in the area, including 87 holes by Placer Dome.