Updated PEA, 2008

In the updated PEA, April 10, 2008 before a production decision was taken, and before the DFO got involved by declaring the Mallard Tailings Impoundment Area a fish habitat, the following technical report was issued.

Updated Technical Report, Bingo deposit pg. 115

The total area being mined is somewhat bigger than depicted here, though at the 1300 level(300EL), you can measure for yourself that the mineable portions have a strike length of ~300m. This is in an overall mineralized structure of 900m, with satellite deposits, and a possible en echelon duplication.

The mineable portions don't necessarily stop where the lines stop below the stopes. The stopes are variable in grade, so the grades in the mine will not always be the same. Drilling has not proceeded to extend the mine life just yet beyond this plan. Note that the plan calls for a total of 8 years mine life, including deposits no longer considered for mining.

Drilling and development have not expanded this resource beyond this plan. The open pit at the top of the mine is not included, and further development below 1300m ASL is only called for this construction season.

You can also see that the game plan has changed substantially since that time. But the mining plan gives you the schedule for removal of stopes and the grades associated with the mine. You can also see that this economic assessment calls for an average grade of 15g/t.

Cash costs of the PEA, April 2008 were said to be ~"$427 U.S./oz."at an average gold production price of ~$680/oz. U.S. The big change since that time is that the gold price is more than double. In Canadian dollar terms, this is very important.

Its very typical of this company to allow information to become obsolete. The key is to finding information that the company has obviously attempted to divert attention away from.

supersize

This portion of the project may seem small, but its the same size as the Seabee mine, without any of the en echelon portions in consideration. By the time they get to the 1200 ASL(200EL) level, the mine should be expanding and grades found consistent.

One notable move the company made some time ago was to stop a drill hole just before reaching the vicinity of the 1200 ASL depth.

Mines with this type of geology can go to 1000m + in depth.

-F6