So, this makes 2 economical host rock areas on the property found from early sampling.

Zona Sur area, 27m of 1.74 g/t;

2 other trenches were dug in this area with an average grade of .27 g/t .

A-7 area, 7.5m of 0.92 g/t

There has also been some host rock sampling on the C-1 areas with some economical grades, but there was insufficient data to impress an area.

The northern half of the S2 swarm is hosted in propylitically altered sheared and

brecciated diorite. Thirty-three trench samples were taken from this alteration zone,

but most samples returned less than 50 ppb gold. However, several trench

samples collected immediately adjacent to veins returned anomalous gold. For

example, at the northernmost end of the swarm, sample 253401 assayed 39.6 ppm

gold across 1.1 meters. Immediately east of this, sample 253402 gave 1.02 ppm

gold across 3.4 meters. Further to the south-southeast, trench sample 253403

assayed 2.26 ppm gold across 0.9 meters. About 150 meters to the southsoutheast

of this, sample 562669, taken of altered diorite between veins, assayed

7.48 ppm gold across 2.0 meters. In view of these results, additional sampling of

wallrocks immediately adjacent to and in between veins of the S2 swarm is

warranted.

The northernmost part of the S1 vein is exposed in a small window of diorite poking

through surrounding volcanics. Within this window, an unusual style of quartz

veining was observed in what was initially interpreted as subcrop. Veining occurs

as knotty “blowouts” and micro stockworks of milky quartz in muscovite-bearing

diorite. Grabs of this material across 27m assayed 1.75 ppm gold in sample

253259. This assay was confirmed by a check sample of the rejects. However, the

outcrop source of this material was not encountered in the three deep trenches that

were excavated at the site of sample 253259. It can only be concluded that the

interpreted “subcrop” is actually transported colluvium, and that the source outcrop

may be buried beneath the volcanics.

I am guessing that the ongoing trenching is partially trying to expand these areas and/or find new areas in proximity. This work of assaying the diorite/granodiorite has now become very important because .2 g/t is now economical to mine in some instances. I beleive it can/will be added into an estimated resource at this time because this disseminated gold in the host rock, CONTAINS the high grade veins also, in some cases. These 2 above finds would have been almost considered as waste material back when they found them and that is why not much work has been done on them, until maybe now. I expect more great finds like those above as a result of our recent trenching because of the Quantec, s identification of new mineralization.

It is my opinion that the 1 g/t used in estimating the possible amount of gold in the Giant anomaly is very conservative due to the findings above.If you have the host rock in areas above the anomalies that contain between 0.92 -1.75 g/t gold, then you are allowing nothing for the high grade gold veins. I will go further to say that maybe we should be throwing 1 g/t at the next smaller anomaly, whereas the info about the S-1 area above, is above that smaller anomaly.

On another note;

During my digging, I was pleased to come across two early samples taken from the C-1 workings of 6.59 OZ/T and 6.85 OZ/T gold. I had previously beleived the highest samples ever taken from there to be around 5.75 OZ/T.

IMO