TO THE DISCOVERY PROCESS*

(as of March 24, 2006)

Lookout Mountain, Nevada, USA – Barrick Gold Corp, August 1992; Staccato Gold Resources LTD., early 2005 to Present

•  Kinematic analysis of existing geologic map data supplemented by kinematic indicator structural information obtained during a field visit in the summer of 1992 accompanied by a metal dispersion study of multi-element data for Barrick Gold Corp. resulted in the identification of at least 14 exploration targets. The highest priority targets for high-grade refractory gold ore in this MCA12 Carlin-type Magma-Metal Series model were judged to be beneath and southeast of the Lookout Mountain pit.
•  Barrick dropped the property in 1993, without testing the high-priority target.
•  Echo Bay operated the property in 1993 to 1995, in other largely non-delimited MagmaChem targets and did not test the Lookout Mountain target.
•  Century Gold LLC acquired the Lookout Mountain/Ratto Ridge gold play in 2003 and leased the play to Staccato Gold Resources in early 2005 who initiated a diamond drill program for high-grade sulfide–type gold ore in November 2005 in the immediate vicinity of the 1992 defined MagmaChem target.
•  The diamond drill program has discovered significant high grade gold resources in the MagmaChem target (for example, 80 feet at .21 OPT gold in hole BH-05-03; see press release dated December 19, 2005; 65 feet at .334 in hole BH-05-01; see press release dated January 4, 2006; 37 feet at .284 in hole BH-06-01; see press release dated March 15, 2006).

Jewett Mine (Crown Zone), Oregon, USA – Cope/Dutch Mining, November 1999 to Present

•  Kinematic analysis and a metal dispersion study of this MC6J Juneau-Ashanti type mesothermal gold vein model indicated a mineable “mom and pop” size body of high-grade gold that might range up to 2,000 tons.
•  Subsequent work by Michael Cope has discovered a larger vein downdip from the smaller body examined in 1979 that might contain several thousand more tons. High-grade quartz vein ores at about 2 ounce per ton and lower grade diorite hosted pyritic ores have been stockpiled at the site, and have been scheduled to be shipped to the newly constructed Rendata gold mill facility owned by Dutch Mining at Merlin, Oregon as of March 2006.
•  Additional potential for high-grade gold might be established by drilling down the dip of the newly uncovered gold vein structure.

Rio Figueroa Region III, Chile – Metallica Resources, Inc, April 2005 to Present

•  Analysis of petrochemical information for spatially associated plutonic samples and element chemistry of metallized samples indicates the presence of a probable MCA14 Baguio type vein/breccia Cu-Au porphyry system. Grade tonnage data for analog deposits indicate that Rio Figueroa could be a large size porphyry Cu-Au system hosted in contact breccias.
•  Preliminary pluton vectoring, metal dispersion study, kinematic analysis of field checked/improved geologic map data indicates a presence of a Cu-Au contact breccia target associated with trans-tensional dilation in the vicinity of Cerro Matta (target memo of May-June 2005).
•  The first two drill holes into the target have yielded discovery quality grades and thicknesses (70 meters grading 0.59% copper and 0.31 g/t gold in one hole and 30 meters grading 0.36% copper and 0.17 g/t gold in the second hole; see Metallica press release data August 16, 2005). Further drilling is planned during the coming field season.
•  During the fourth quarter of 2005 Metallica significantly expanded the resource area with additional drillholes (for example, 158 meters averaging .36% copper and .37 g/t gold in drillhole MRC-15; see press release dated February 22, 2006).

Big Springs (Crusher and 701 Zones), Northern Independence Range, Nevada, USA – Moydow Mining, Mid-2000; Gateway Gold Corp., July 2003 to Present

•  Magma-Metal Series Modeling of petrochemical and metallogenic information for the existing gold deposits at Big Springs indicates they belong to the economically favorable Carlin-type ( MCA12 Magma-Metal Series model).
•  Detailed Geologic Mapping and preliminary Kinematic Analysis of exposures in the existing open-pit gold mines at Big Springs indicate that two ages of economically favorable Carlin-type ( MCA12 Magma-Metal Series model) gold deposits are present. An early event of high grade, Carlin-type, gold introduction is associated with emplacement of 140 Ma (based on 40 Ar/ 39 Ar incremental release, radiometric age dating), east-northeast-striking, diorite-gabbro system intrusions intruded during west-northwest – east-southeast shortening of proven Mesozoic age. A later, lower grade, Miocene age, Carlin-type gold introduction is associated with the emplacement of northwest-striking gabbroic dikes dated at 16.1 Ma.
•  Preliminary Kinematic and Fluid Flow Path Structural Analysis of the detailed geologic mapping indicate that additional, near-surface, unmined targets are present at Big Springs, in addition to down-dip structural targets for gold deposits beneath the North and South Sammy Creek mines (specifically the north zone/ crusher target at North Sammy and the 701 target at South Sammy).
•  Preliminary Kinematic and Fluid Flow Path Structural Analysis indicate that potential deeper high grade targets may be associated with the older Mesozoic-age gold mineralization event in favorable Hanson Creek lithologies preliminarily identified by the detailed geologic mapping to the east of the Big Springs gold deposits.
•  Analysis of core data versus RC drilling data identified a grade:thickness contrast, which indicated that the high grade, RC-delineated resources in the down dip portions of the North Sammy deposit may have been considerably underestimated.
•  Very detailed pit geologic mapping (1:1200) during June-August 2004 of the North Sammy deposit identified a very detailed mine stratigraphy that in part controls the high grade mineralization. In particular, a grit unit seems to be closely associated with high grade gold mineralization.
•  Kinematic analysis of the detailed structural mapping identified east-west, Riedel-tensile structures as a significant control for high-grade gold mineralization, especially where these structures occur in or adjacent to east-west dikes, which have now been radiometrically dated as latest Jurassic (circa 140 Ma).
•  Pluton vectoring of the dikes indicates that they are related to the gold mineralization.
•  High grade targets defined by the above work have been partially drilled and have yielded very encouraging results (see numerous Gateway press releases from July to December 2004). The main target identified by this work indicated that the high grade North Zone gold resource might extend down-dip towards the old crusher processing site to the north.
•  In an August 11, 2005 press release Gateway Gold Corporation announced that high grade gold mineralization has been intersected in the initial reverse circulation drilling of the Crusher target on the Big Springs property in northeastern Nevada. Hole GW05-166 intersected 135 feet grading 0.122 ounces per ton (“opt”) gold, or 4.18 g/t, including 20 feet grading 0.525 opt gold (18.00 g/t) and hole GW05-172 intersected 25 feet grading 0.818 opt gold (28.05 g/t). Additional holes have expanded the Crusher target resource (for example, GW05-184 with 35 feet of .069 including 15 feet of .126 opt gold; see press release dated October 18, 2005).
•  In a press release dated November 8, 2005, Gateway Gold Corp announced discovery quality drillholes in the 701 target area now referred to as the 701/601 zones (for example, GW05-197 with 30 feet of .149 opt gold including 15 feet of .247 opt gold and GW05-198 with 50 feet of .101 opt gold including 20 feet of .174 opt gold).

Chuquicamata Deep, Chile – CODELCO, May 2001 to 2004

•  Preliminary pluton vectoring and kinematic analysis of on-site CODELCO data during a visit to Chuquicamata in May 2001 led to identification of a deep extension of the open pit resource in association with the specific Stage 3 pluton beneath the current open pit copper mine in the northeast part of the Chuquicamata super pit. Chuquicamata is the type deposit for the economically favorable Magma-Metal Series MCA14C Morenci/Chuquicamata type porphyry copper-molybdenum model.
•  The target concept was orally presented to CODELCO staff at a MagmaChem short course outlining the magma-metal series approach as applied to porphyry copper deposits. The Chuquicamata data was used as an excellent, ‘real-time', application of the Magma-Metal Series approach.
•  The target concept was subsequently used by certain CODELCO staff to plan drill targets for sub-pit, deep, porphyry copper mineralization.
•  As of early 2004, CODELCO was driving an underground decline to bulk sample and further test porphyry copper mineralization in the vicinity of the target predicted by the pluton vectoring and kinematic analysis of on-site CODELCO data.

Ren, Carlin Trend, Nevada, USA – Uranerz/Cameco, 1996-March 2005

•  Preliminary mapping and data analysis in the summer of 1995 indicated the possibility of a Purple vein-type target at Ren. A strong recommendation was made to Uranerz personnel to acquire the property. A stategic component of the recommendation was that Ren is an economically favorable MCA12 Carlin-type Magma-Metal Series model.
•  Significant intersections of >0.2 opt Au were discovered in a Purple Vein (Meikle)-type gold deposit using targets developed by three-dimensional Pluton Vectoring (1998) , a Metal Dispersion Study (1996) , Detailed Geologic Mapping (1995-1996) and Kinematic and Fluid Path Structural Analysis (1998) .
•  The first offset of an existing moderately mineralized drill hole into the MagmaChem target made the discovery.
•  Deep drilling in the fall of 2000 discovered about 1 ounce of gold over a thickness of 100 feet at a depth of 2900 feet in ‘Popovich' stratigraphy a few hundred feet from the first ‘discovery' (strongly rumored as of 12/4/00). Intense drill documentation of this Meikle type gold deposit continues.
•  In March 2003, a detailed press release by Cameco describes many of the high grade intercepts within the North Ren deposit. Intense drill evaluation by Cameco is continuing throughout the summer 2003.
•  An initial mineral resource estimate for the JB Zone has been compiled for Centerra by Resource Modeling Inc. and includes all drill holes completed through July 2003. At a gold cut-off grade of 8.5 grams per tonne, the inferred resource estimate was 1.9 million tones grading 14.8 grams per tonne (900,000 ounces) after cutting all assays above 50 grams per tonne to that level (see CenterraGold.com website).
•  A more recent block model estimate indicates that 1.3 million ounces of indicated and inferred ounces occur largely within the JB Zone as of March 2005 (see Spalding and others talk given at GSN Elko on March 17, 2005).

Lightning Dock KGRA, New Mexico, USA – Lightning Dock Geothermal, Inc./DOE, September, 2002

•  Application of the Element/Metal Dispersion Tool and Fluid Path Structural and Kinematic Analysis to the Lightning Dock thermal anomaly in southwestern New Mexico established for the first time (to the author's knowledge) that the applications of multi-element soil geochemical tools to a geothermal resource, not only sees the resource, but also provides additional internal geochemical texture that identifies the thermally hottest conduits and potential additional drill targets within the known KGRA (Known Geothermal Resource Area). Lightning Dock is classified as the economically favorable, Coso-type, MAC34C Magma-Metal Series model , with possible certainty.
•  Subsequent drilling by Lightning Dock Geothermal of various geophysical targets as well as the MagmaChem target discovered the hottest water in the highest priority MagmaChem target area (Earl Abbott, personal communication - August, 2005).

Storm-Dee-Forty Niner—FMC Gold 1993 - Barrick Gold Corp., 1999-2003

•  Detailed Geologic Mapping and Kinematic and Fluid Path Structural Analysis in this economically favorable MCA12 Carlin-type Magma-Metal Series model led to recognition of possible down-dip and southward continuation of storm resource into deep Dee orebody. Several deep targets in the east footwall of the Queen fault.
•  Follow-up drilling by FMC Gold in 1993 confirmed the Storm-Dee connection but failed to adequately test the deeper down-dip target.
•  An exploration decline driven by Barrick in 1999 has encountered economically interesting gold mineralization within the target outlines projected from the surface mapping. One of these includes the Forty-Niner zone.
•  The lower plate ore deposit footprint as shown publicly in talks given by Barrick personnel (2001) registers nicely with the wedges and fluid path structural analysis indicated from above-mentioned detailed geologic mapping of the upper plate.
•  Follow-up drilling by long-hole drilling out of underground platforms in the decline by Barrick in the summer of 2003 has encountered significant intercepts of >1 opt gold within the above targets.

Ntotoroso, Ghana, West Africa – Moydow Mines International, 1999-2000, now a Mine Complex called Ahafo being operated by Newmont Mining

•  Inspection of geologic data at the March 1999 Toronto PDAC and initial drill results led to the recognition of a potential resource of at least several million ounces of gold in an economically favorable, reduced, Timmins/Grass Valley-type ( MC7 Magma-Metal Series model ), gold porphyry, plutonic hosted setting (E. Zone).
•  Pluton Vectoring and Metal Dispersion work was done..
•  As of January 2000 about 2,000,000 ounces of gold at ~3.2 g/t ‘reserve' has been drill defined in a 1 km by 60 m wide by 140m deep rectangular polygon within Zone E.
•  The potential deposit at Zone E is at least 200 m deep, 2 km long, and 60 m wide.
•  Resource defined ounces in the greater Ntotoroso area held by Normandy/Moydow now stand at approximately 8,000,000 ounces.
•  In early February 2000 shallow reverse circulation RAB holes drilled into a sub-laterite gold target near Kenyase (now referred to as Zone M) intersected 1.16 g/t over 8m which is open to depth in a new E zone type setting within the immediate footwall of Ntotoroso intrusive sequence. This MagmaChem target was delineated by Pluton Vectoring alone and did not show any significant surface soil sample gold geochemistry (<2 ppb to 18 ppb and 6 ppb near the intercept described above).
•  In late September-early October 2000, drilling of the deep extension of the Zone E target reported successful results in two ‘deep' drillholes [2.12 g/t Au from 422m to 517m (including 4.75 g/t from 430m to 450m) in drillhole RC-361 and 60m of 4.82 g/t from 311 to 371m in drillhole 352]. This down-structure target was constrained by qualitative Pluton Vectoring, Preliminary Kinematic and Fluid Path Structural Analysis and textural information (occurrence of ‘ bubble rock '). These data defined a differentiation path which coincided with the down-plunge projection of the Zone E orebody which had been defined to 160m. The first drillholes into this down-plunge MagmaChem target discovered the projection of the ‘sweet spot' and now strongly suggest that the mineable resource by open-pit (1.6 million ounces) continues to depth and may approach 5 million ounces (using indicated resource criteria). Zone E continues to be open to the south below depths of 500m.
•  A Metal Dispersion Study of soil and bedrock multi-element data revealed large spectacular metal coronas (eg. thorium) around the Zone E gold deposit. The metal dispersion patterns are especially well displayed in soil samples. These previously undocumented metal dispersion patterns have resulted in the development of a powerful ‘see-thru-laterite' multi-element tool that could seriously facilitate exploration for gold deposits beneath laterite covers (see ‘CZ' zone application below).
•  In October 2000 a Metal Dispersion Study of zone ‘CZ' auriferous soil samples combined with qualitative Pluton Vectoring and Kinematic and Fluid Path Structural Analysis has redefined target aspects of a heretofore widespread gold soil anomaly that has defied conventional exploration approach. The redefined target is at least 900 m long and 100m wide and displays Zone E type metal dispersion characteristics. A follow-up 1200m drillhole program is planned for December 2000/January 2001.
•  An October 2000 geologic reassessment of the Sika Aminaso gold anomaly indicates it may contain 100,000 ounces of mineable gold resource from a 2.2m thick surface laterite zone. In addition, Pluton Vectoring , recognition of a paleoplacer stream channel, interpretation of aeromagnetic data and Kinematic and Fluid Path Structural Analysis indicate that the Sika Aminaso gold anomaly appears to have been transported southwestward from a possible lode target immediately to the northeast. Follow-up work has been strongly recommended for what could be a Zone E type porphyry gold target.
•  In December 2003, Newmont Mining Corporation purchased the Moydow interest in the former Normandy/Moydow joint venture in the Sewfi gold belt. The combined Normandy/Moydow gold resource will now be mined as a ‘core operating district' by Newmont.

SE Ajo, Arizona, USA – Phelps Dodge, 1996-98

•  A potential >100 million ton chalcocite blanket was predicted adjacent to a “mined out” porphyry deposit discovered using integration of Pluton Vectoring, Kinematic and Fluid Path Structural Analysis and modification of pre-existing geologic mapping. Ajo is a member of the economically favorable MCA14B Magma-Metal Series model (El Salvador type).
•  First three holes drilled into the MagmaChem target discovered ore-grade and thickness (>100 feet of >1% Cu) of chalcocite.

Espanola, North-Central Chile – Phelps Dodge, 1996-97

•  The discovery of a giant (350+ million ton), potentially economic, copper-gold (>0.8% Cu, >0.005 opt Au) deposit was made using integration of Pluton Vectoring, Kinematic and Fluid Path Structural Analysis, Detailed Geologic Mapping and Modification of pre-existing geologic mapping, and geophysical data. Espanola is a member of the MQA44J Candelaria type Magma-Metal Series model.
•  The first two drill holes into the MagmaChem target discovered the potentially economic deposit, while a third drill hole outside of MagmaChem target was weakly mineralized.
•  In 1998, the discovery was transferred from the exploration company to the operating company and placed into inventory.
•  From 2004 to the present, the Phelps Dodge operating company at Candeleria has returned to the discovery and is currently conducting reserve delimitation studies.

South Alcaparrosa, North-Central Chile – Phelps Dodge, 1996

•  A several million ton copper-gold (>1% Cu + >0.01 opt Au) deposit was discovered using integration of Pluton Vectoring, Kinematic and Fluid Path Structural Analysis, and Modification of pre-existing geologic mapping, and geophysical data. South Alcaparrosa is a member of the MQA44J Candelaria type Magma-Metal Series model.
•  The first drill holes into the MagmaChem target discovered the orebody.

Pascua, Central Chile – Lac/Barrick Gold Corp., 1993-95

•  A 15 million ounce gold deposit was found using a Metal Dispersion Study, Pluton Vectoring , and client geologic mapping in this Maricunga type MCA10 Magma-Metal Series model .
•  First drill holes into the MagmaChem target made the discovery.
•  As of February 2000 the deposit has been expanded to 26 million ounces of gold (~1.6 g/t) and 689 million ounces of Ag (~75 g/t).

Tyrone, New Mexico – Phelps Dodge, 1994

•  Pluton Vectoring of the Tyrone pluton suggested the presence of an undiscovered deposit about 3 miles west of the operating pit at an existing copper occurrence. Tyrone is a member of the Morenci/Chuquicamata type MCA14C Magma-Metal Series model.
•  A 200 million ton Cu-Mo porphyry deposit discovered by drilling the MagmaChem target.

Alto Plano Region, Mexico – FMC (now Meridian), 1992-93

•  A possible Carlin-type cluster of gold systems was delineated using regional geologic analysis of Crustal Oxidation State and Magma Metal Series Modeling
•  Follow-up grass-roots reconnaissance discovered more than 50 Carlin-type ( MCA12 Magma-Metal Series model ) mineral districts using Expert System Analysis and Magma-Metal Series Modeling of multi-element geochemical data.
•  None of the MagmaChem targets has been drill tested.

South Meikle Deposit, Nevada, USA – Barrick Gold Corp., 1992

•  A 2.0 to 2.5 million ounce ‘blind' gold deposit resource with a 1.0 million ounce drill proven reserve in this Carlin type, MCA12 Magma-Metal Series model was found across a north-trending fault from the original Purple Vein discovery by a Metal Dispersion Study, Detailed Geologic Mapping, and Kinematic and Fluid Path Structural Analysis .
•  The first drill holes into the MagmaChem target made the discovery.

Vinasale Mountain, Southeast Alaska, USA – Central Alaska Resources, 1991; Placer Dome, 1992 – 1995?

•  A Metal Dispersion Study of this PC1B Idaho City type Paraluminous gold-arsenic vein system identified a proximal target associated with what is referred to as the central zone.
•  Drillhole follow-up of the central zone drill target by Placer Dome discovered a 9,334,160 ton resource grading 2.4 grams gold (655,000 ounces) with by-product silver.

Trout Creek (Valmy), Nevada, USA – Hecla, 1987-1988, Newmont Mining, 2002-2004

•  Expert System Analysis of multi-element geochemical data identified a Carlin type, MCA12 Magma-Metal Series model.
•  Subsequent drilling identified a 100,000 ounce resource.
•  A follow-up Metal Dispersion Study identified several new targets and a projection of the known resource onto ground to the north held by Santa Fe.

•  The Trout Creek deposit was ultimately mined by Newmont Mining as the Valmy mine which produced 179,000 ounces at 0.025 opt from 2002 to 2004 in six small pits (see road log entry on pg. 65 of GSN Fieldtrip Guidebook 7 associated with the 2005 GSN Symposium).

UNTESTED OR PARTIALLY TESTED TARGETS
THAT WERE DEFINED BY THE MAGMA-METAL SERIES APPROACH*

Grant Canyon, Railroad Valley, central Nevada, USA – Noble Energy, April 2005 – February 2006; MagmaChem March 2006 – present.

•  Analysis of existing geologic data combined with a multi-element soil metal dispersion study yielded a spectacular element corona effect around existing production and also lead to the identification of at least 3 high-quality petroleum targets.
•  New down-hole multi-element data on existing drill core and chips as well as existing multi-element analysis of oil field brine data from the reservoir confirmed that the multi-element soil chemical anomalies were developed vertically above similar chemistry in the reservoir area.
•  Noble has released the target design to MagmaChem as of March 2006

Pony Creek – Pony Creek Northeast Target, Central Piñon Range, Nevada, USA – Grandview Gold, Inc., Summer 2005 – present.

•  Analysis of the post 1996 operator data combined with reanalysis of the existing Uranerz and Newmont data has led to the identification of a third target in the northeast portion of the traditionally drilled areas (see Pony Creek Pluton Targets entry for more detail about the first two targets). The third target is associated with the footwall environment of a third intrusion that was initially identified during the 1994-1995 mapping. The existence of this intrusive has been reconfirmed by field inspection and drilling (the PC-01 hole) during the new work for the Grandview operator. Hence, three targets are now known. Each of which is associated with the footwall of a separate felsic intrusion.
•  In the current campaign, three drill holes (one for each target) were planned of which two have been drilled in the fall of 2005. Both drillholes have confirmed and identified new gold mineralization associated with favorable permeable host rocks in the footwall of the felsic intrusions. At least three pyritic sills were identified in the PC-01 hole with perspective highly mineralized alteration (as pyrite, silicification, argillization, and dolomitization) in the footwall of each sill.
•  Logging of the PC-01 hole and comparison with chip logs for the PCK-206 holes strongly indicates that the jasperized limestone and unaltered limestone unit in the deep portion of the drillholes can be assigned to the Devil's Gate Limestone. Furthermore, the carbonaceously altered calcareous siltstone unit above the Devil's Gate Limestone probably correlates with the Pilot Shale. As such, the combined drilling appears to have intercepted one of the regionally favorable stratigraphic zones associated with high-grade gold mineralization in this part of Nevada (for example the Rain Mine in the northern Piñon Range). Thus, the potential for high-grade stratigraphically hosted gold targets similar to those at Rain and Meikel is greatly increased.
•  Assay data as of December 22, 2005 has demonstrated a significant grade thickness contrast for the PC-01 vs. PCK-206 holes drilled by the Nevada contact operator. The PC-01 core hole exhibits a grade-thickness character that is over three times that of the close neighbor and twinned PCK-206 and PCK-206A. The grade-thickness comparison offers a preliminary confirmation of the above prediction regarding core versus reverse circulation rotary drilling (see Pony Creek Pluton Targets entry).

Pony Creek-Red Rock Target, Central Piñon Range, Nevada, USA – Grandview Gold, Inc., Summer 2005—present.

•  Analysis of multi-element geochemical data collected from mineralized samples associated with a W-NW striking dike exhibit element assemblages associated with the intermediate and distal element assemblages of a Carlin-type MCA2 Magma-Metal Series model .
•  Preliminary metal dispersion analysis of mineralized samples from the Red Rock target indicate a NW to SE fluid migration pattern. The pattern will be more rigorously defined through the use of a 100m spaced square soil grid that has been collected and submitted for multi-element analysis.
•  Analysis of high resolution aeromagnetic data indicates buried pluton sources for the Carlin-type alteration anomaly to the NW consistent with the element dispersion pattern documented above.
•  Detailed Geological Mapping and Kinematic Analysis indicates that the Carlin-type hydrothermal plume was emplaced during a NE-SW shortening event that produced oblique left-slip and reverse-slip on WNW-NW striking primary conduit features. Favorable footwall stratigraphic traps include permeable conglomerates of presumed early-Mississippian age and possible calcareous siliciclastic units in the regionally favorable Pilot Shale above Devil's Gate Limestone at reasonably shallow drilling depths (less than 2500 feet?).

Troy Ranch, Central Dripping Springs Range, Arizona, USA – Big Bar Gold, March 2005 – Present

•  Analysis of in-house historic geologic mapping, pluton petrochemistry, and mineral and metal assemblage data indicate that a Stage 3 MCA14C Morenci/Chuquicamata model is present. Grade-tonnage for analog deposits indicates excellent potential of a giant to supergiant size porphyry copper-silver-molybdenum accumulation.
•  A diabase hosted target analogous to the diabase orebody (1,383,000,000 tonnes at 0.75% copper of which a significant component is hosted in diabase) at the nearby Ray ore deposit has been identified based on detailed geologic mapping (originally done for AMAX in 1972;) and preliminary pluton vectoring.
•  Exploration rights for the property were acquired by Big Bar in November 2005 through a joint venture exploration agreement with Phelps Dodge Corporation.
•  Historical geochemical and geological information were brought into the digital realm in November and December 2005 by Ron Radzieta of GeoLOGIC.
•  A high resolution photographic image was obtained which was subsequently interpreted for fracture orientation and density by Monte M. Swan.
•  A high resolution aeromagnetic survey by an ultralight aircraft was conducted by Pearson, deRidder and Johnson, Inc. in late November 2005 to support the pluton vectoring and metal dispersion study.
•  Whole rock and mineralized samples were collected in January 2006 for pluton vectoring and metal dispersion analysis to define drill targets for a Stage 3 MCA14C Morenci-Chuquicamata type porphyry copper molybdenum silver deposit type.
•  An AMT (audio magneto-telluric) Geophysical Survey was conducted by Durango Geophysical Operations in January 2006 to support the pluton vectoring and the metal dispersion study.
•  Three preliminary targets are emerging from the above work. The largest target (target area 1) is about 2 miles long and ½ mile wide, and is centered on the north and eastern contact of the Troy pluton (see Photos 2 and 3). A smaller target (target area 2) is about 2/3 mile long and 1/3 mile wide, and it occurs in the southwestern portion of the Troy pluton and in the adjacent diabase. A third emerging target of unknown size occurs north of a separate granodiorite exposure in Dripping Springs wash. All three targets coincide with AMT anomalies, magnetic low features and preliminary pluton vectoring and metal dispersion data that indicate the AMT anomalies coincide with Stage 3 geochemistry and a potentially significant tonnage of diabase hosted copper mineralization.
•  The above combined data will be refined into drill target designs. Drilling is expected to commence in June 2006.

Dorsey Creek, Northern Independence Range, Nevada, USA – Gateway Gold Corp., December 2003 – March 2005

•  Detailed geologic mapping identified a possible Goldstrike-size structural target in the footwall of a gabbro sill complex in the footwall of a large east-west-striking fault feature.
•  Magma-Metal Series Modeling and analysis of multi-element geochemical analyses indicates the presence of a Carlin-type MCA12 magma-metal series model with robust metal dispersion characteristics of Carlin-type models.
•  A Pluton vectoring and metal dispersion study of a detailed, multi-element, soil grid, combined with detailed geophysics (IP, resistivity, aeromagnetics, and airborne radiometrics), as well as the above-mentioned detailed geologic mapping have now been completed. Synthesis (including kinematic analysis ) of all of the above information has yielded three high quality drill targets for high grade Carlin-type gold deposits.
•  Gateway Gold has initiated a drilling program to test the above targets as of November 15, 2004. Results are still pending and drilling is still in progress as of January 5, 2005, press release.
•  Drill results were summarized in a Gateway press release dated February 15, 2005, and entitled, “Large Carlin-style gold system discovered at Dorsey Creek'. Large amounts of low grade (<10 ppm) were identified by the drilling. Due to engineering problems, the ‘sweet spot' high-grade drill targets remain to be tested. Drilling of these targets is anticipated to start in May 2005.

Pony Creek-Pony Creek Pluton Target, Central Piñon Range, Nevada, USA – Uranerz, 1996; Barrick Gold Corp, Homestake, Nevada Contact, 1997-2003; Mill City International, 2003; Grandview Gold Inc., 2005

•  Detailed Geologic Mapping , Metal Dispersion Study and Kinematic and Fluid Path Structural Analysis in 1994-1995 for the then Uranerz operator integrated with IP and resistivity surveys identified a second gold target at >1,000' beneath the northern lobe of the Pony Creek pluton complex (in addition to the known Newmont drilled target associated with the footwall of the southern lobe of the Pony Creek pluton complex). Based on metal geochemistry, Pony Creek is classified as a probable example of the economically favorable, Carlin-type, MCA12 Magma-Metal Series model.
•  Drilling programs by Uranerz and more recently by Barrick, Homestake, and Nevada Contact (Agnico Eagle) have failed to test the target. More shallow drilling (<800') encountered several hundred cumulative feet of 0.02-0.04 opt Au (especially the Uranerz drilled 95-08 hole which was placed in the central part of the newly identified anomaly).
•  The property has been recently (July 2003) acquired by Mill City International.
•  As of early 2005 the property was optioned to Grandview Gold who has subsequently retained MagmaChem's services and intends to drill the MagmaChem targets in the main Pony Creek Stock area during the fall of 2005.
•  The presence of strong argillic alteration that hosts gold within the pluton combined with the fact that the resource has been characterized by R.C. drilling indicates that substantial increases in the grade and thickness of the known gold resource may occur when the resource is re-drilled by diamond core type drilling. The new drilling will be by diamond core and will twin two of the better holes within the known resource.
•  In fall of 2005 a drillhole composite sample program was instituted to obtain samples for multi-element analysis. The data will allow a 3-dimensional geochemical modeling of at least three Carlin type hydrothermal gold plume systems that have recently been identified (see below).

Sonora-Baja California Mexico Peraluminous Gold Reconnaissance – Minera Pitalla, February 2004 to Present

•  Analysis of existing MagmaChem and Minera Pitalla data followed by a field reconnaissance has established the presence of a major cluster of peraluminous pluton related gold deposits associated with trench directed thrusting in southern Baja between La Paz and Cabo San Lucas and in Sonora north and west of Caborca.
•  The Baja California cluster has a probable PC1A Mesquite or Muruntau type peraluminous gold (arsenic-thorium) porphyry affinity . Grade-tonne data for analog deposits indicates an excellent potential for giant size open-pittable gold deposits.
•  Minera Pitalla has acquired ground and is continuing follow-up on existing targets within their expanded land position(s).

Lista Blanca, Sonora, Mexico – BHP Minerals, Spring 2004; Mineral Pitalla, February 2004 to Present.

•  Field visits and data examination indicate that Lista Blanca is a possible to probable MCA14B El Salvador-Ajo type copper-gold porphyry system. Grade-ton data for analog deposits indicate the possibility of giant size open-pittable copper-gold accumulations.
•  Field examinations indicate a large undrilled oxide-copper-gold resource (mainly as chrysocolla-malachite) hosted in northwest-striking, near vertical shear zone environment about 30 to 50 meters wide and 1.5 kilometers long.
•  Minera Pitalla is continuing an active exploration program as of this date.

Carlin-Leeville Corridor, Carlin Trend, Nevada, USA – Newmont Mining, Fall 2002 through March 2003

•  Detailed Geologic Mapping and Kinematic Analysis of a six square mile are between Carlin and Leeville was designed to test whether the West Leeville MCA12 Carlin type deposit had a structural expression within the upper plate. Results of the mapping demonstrated that the West Leeville deposit has an excellent upper-plate structural expression.
•  Detailed Geologic Mapping and Kinematic Analysis of a six square mile area between and northeast of Carlin and Leeville has also identified the additional presence of four gold targets. As far as is known, these targets have yet to be tested adequately (as of summer 2005).

Yuma King, Granite Wash Mountains, Arizona, USA – Rubicon Minerals, January 2003 – June 2005; Big Bar Gold – July 2005-Present

•  Magma-Metal Series Modeling and analysis of multi-element geochemical analyses for spatially associated igneous and metallized rocks indicates an economically favorable, Bisbee-type, MQA45 Magma-Metal Series model with metal dispersion characteristics of Bisbee-type porphyry copper/skarn/replacement models at a definite certainty level.
•  Pluton vectoring indicates the presence of two eastward-differentiating MQA45 magma-metal series rock systems. One system (a Stage 3 monzonite porphyry) is associated with copper-gold-silver replacement/skarn mineralization in its footwall; the second system (a Stage 3 quartz syenite aplite-alaskite phase) is associated with quartz-sericite-pyrite-gold mineralization hosted in quartzite within the hanging wall of the copper skarn system.
•  Detailed geologic mapping to the north and east of the underground copper-gold deposit at the Yuma mine indicates that the deposit at the Yuma mine, which is open to its north and east, may extend to the north and east under relatively shallow tectonic cover. At least 20 million tons at about 2% copper, 0.3 oz/ton silver and 0.03 oz/ton gold can be reasonably inferred from the current geologic model. An unknown tonnage of gold-enriched pyritic mineralization hosted in the hanging wall quartzite may add value to open pit development strategies.
•  Using historical information from the Yuma Mine underground workings, a five hundred thousand ton resource grading about 3% combined oxide and sulfide copper was calculated by R.H. Russell and Associates. The known resource is extendible down-dip to the north and along-strike for at least 2,000 feet to the east.
•  High resolution aeromagnetic data obtained by an ultralight aircraft flown by PRJ indicated large deposits of copper bearing magnetite-stable ore associated with strongly magnetic, possibly flat-lying features. Additional groundmagnetic work conducted by Durango Geophysical Operations closed the large magnetic feature associated with the Yuma King magnetite replacement body.
•  Based on the ground magnetic data, Big Bar expanded the Yuma King land position from 52 claims to 157 claims in mid-November 2005. Based on additional ground magnetics, Big Bar expanded the land position from 157 to 181 claims in mid-January 2006 to completely cover the large Yuma King magnetic feature.
•  Additional detailed geologic mapping (at a scale of 1:2500) and kinematic observations are currently being obtained to define specific details of the surface stratigraphy and structure related to the extension of the mineralization exposed in Yuma Mine underground workings.
•  A 2000 meter drilling program will be instituted in April 2006 to test the down-dip and along-strike extension of the copper gold replacement deposits exposed in the Yuma Mine that are associated with what is now termed “the Yuma King magnetic feature”. The Yuma King magnetic feature covers an area of at least 2 square kilometers.

Cerro San Pedro, San Luis Potosi, Mexico – Metallica Ventures, February - May 2004

•  Preliminary detailed data compilation and geologic mapping combined with pluton vectoring, kinematic analysis, and interpretation of high resolution magnetic data and IP-resistivity profiles has identified 5 moderate depth targets for undiscovered, economically interesting, polymetallic, San Martin-type, MAC24D Magma-Metal Series model , Pb-Zn-Ag-Au-Cu deposits sourced in differentiated roof phases of the San Pedro monzodiorite pluton.

Central Arizona Porphyry Copper Reconnaissance, USA – BHP Minerals, Spring 2003 through Spring 2004; Phelps Dodge, Spring 2004 to Present; Big Bar Gold, March 2005 to Present

•  Application of the Magma-Metal Series approach to the MagmaChem file system relating to porphyry copper occurrences in Arizona-New Mexico identified five opportunities for the occurrence of Stage 3 MCA14C Morenci-Chuquicamata type porphyry copper molybdenum silver deposits.
•  One additional Stage 4 copper molybdenum occurrence in an existing mine was also identified.
•  Two of the above opportunities have been acquired by BHP Minerals and are currently under exploration.
•  One of the above opportunities (Troy Ranch) has been acquired by Phelps Dodge who has negotiated a joint venture with Big Bar Gold.
•  Samples were collected in January 2006 for pluton vectoring and metal dispersion analysis to define drill targets for a Stage 3 MCA14C Morenci-Chuquicamata type porphyry copper molybdenum silver deposit type.
•  An AMT (magneto-telluric) Geophysical Survey was conducted to support the pluton vectoring and the metal dispersion study.
•  Two preliminary targets are emerging from the above work.

Island Mountain, North Central Nevada, USA – Gateway Gold Corp., December 2003

•  Magma-Metal Series Modeling and preliminary metal dispersion analysis of multi-element geochemical data integrated with existing geologic mapping and detailed magnetics data indicates the presence of several proximal zones of the economically favorable, Carlin-type, MCA12 Magma-Metal Series model, to the west of the main gold district, which is a less economic MCA14 Baguio-type vein model. Drilling is in progress as of summer 2004.

Tipperary claims, Northern Independence Range, Nevada, USA – Concord Minerals, January 2003

•  Following an initial Magma-Metal Series Modeling (assisted by Expert System Analysis of multi-element geochemical data), a land position north of the former Big Springs mill was obtained by Concord Minerals. Tipperary is classified as an economically favorable, Carlin-type, MCA12 Magma-Metal Series model.
•  Pluton Vectoring (see memo date January 2003) combined with a preliminary Metal Dispersion Study has identified a possible target in the lower plate of the Roberts Mountains thrust, which may lie beneath a leakage anomaly represented by an auriferous, proximal assemblage -bearing jasperoid.
•  Detailed Geologic Mapping as of November 2003, combined with a resistivity geophysical survey by Dick Fox and integrated with the above studies, indicates a large, possible gold-related, north-northeast-striking, structurally controlled, resistive body in probable lower plate, favorable Hanson Creek rocks at shallow drilling depths. The above target coincides with a broad arsenic anomaly developed in surface soil samples.

Axelgold, central British Columbia, Canada - Rubicon, summer 1997 – Sept. 2002

•  Detailed Geologic Mapping, Pluton Vectoring, Magma-Metal Series Modeling, and Fluid Path Structural Analysis of the Axelgold porphyry gold system has revealed:
•  1) The overall system appears to be a Central City type alkaline porphyry gold system ( MNA46A Magma-Metal Series model ).
•  2) Based on Pluton Vectoring, Analysis of conventional soil geochemistry, and Kinematic and Fluid Path Structural Analysis , a 200 m-wide, 1 km-long, east-west zone containing anomalous gold and other Central City type pathfinder elements was identified.
•  Recent drill testing of this zone has yielded long strings of >100 ppb gold, interesting hydrothermal texture and strong sulfide mineralization.

Glodes Corner, New York, USA - NYSERDA, September, 2002

•  Hydrocarbon Analysis and Multi-element ICP analysis of soil samples, combined with an element/metal dispersion study and fluid path structural analysis, has defined the gas-charge-related conduit architecture of the Glodes Corner hydrothermal dolomite-hosted (HTD) gas field. In terms of the emerging hydrothermal oil models, the Steuben County, deep, Ordovician-hosted, hydrocarbon resources may be derived from magnesian series peridotite sources of the Trenton-Black River-type MM5P Magma-Metal Series model.
•  Preliminary Element/Metal Dispersion and Kinematic and Fluid Path Structural Analysis integrated with a regional geologic assessment of the Steuben County, Trenton-Black River HTD-hosted deep gas play indicates the presence of additional gas charge related to a newly identified, southerly conduit, which is largely undrilled.
•  Regional Application of the Glodes Corner detailed field model to the Steuben County Trenton-Black River HTD deep gas play indicates at least 21 targets with potential gas resources remain to be tested.

Dunnage Zone, Central Newfoundland, Canada - Rubicon Minerals, June, 2002

•  Regional Geological Analysis of Crustal Oxidation State, Magma-Metal Series Affinity of Pluton Petrochemistry and Mineralogy and Magma-Metal Series Modeling of regional metallogenic occurrence data identified 24 prospective mineral system-scale areas of possible to probable model status that contained 87 occurrences of economically favorable, Carlin-type (MCA12 Magma-Metal Series model), Muruntau type (PC1A model), or Bousquet type (MCA12L model) .
•  Follow up reconnaissance of these recommended mineral system targets is currently being conducted by Rubicon.
•  Drilling in the prospective mineral system scale targets is currently nonexistent or minimal.

Goldstrike South, Nevada, USA – Barrick Gold Corp., 2000

•  Preliminary Pluton Vectoring and Kinematic and Fluid Path Structural Analysis integrated with Detailed Geologic mapping of the Goldstrike Pit by Barrick geologic staff indicates the presence of a major gold target in the footwall of the Goldstrike gabbro-diorite stock to the south of the existing gold deposit in a Reidel deformation zone similar to the Dillon deformation zone. Goldstrike is the type locality for the very economically favorable, Goldstrike-type, MCA12E (associated with diorite system fluid releases) and Porgera-type, MCA12F (associated with gabbro system fluid releases) Magma-Metal Series models.
•  The size of this gold resource could exceed 20 million ounces.
•  As of January 2005, Barrick had drilled pilot holes into the top of the target and will presumably test the target shortly.

Baxter, Carlin Trend, Nevada, USA – AngloGold, 1999-2002; Newmont, 2002-2003

•  Detailed Geologic Mapping , Kinematic and Fluid Path Structural Analysis, and Pluton Vectoring integrated with interpretation of aeromagnetic data led to the identification of a deep Purple Vein (Meikle) Goldstrike-type gold targets.
•  A Metal Dispersion Study was initiated in 2000, but not completed.
•  A deep drillhole planned to a two kilometer depth is testing the MagmaChem target as of January 2000. If completed to 2 km, the drillhole will set the depth record for deep testing of Carlin-type models.
•  A subsequent gold geochem soil survey has confirmed the surface projection of the deep MagmaChem targets.
•  Based on rumors ‘heard on the street' in March 2000, the deep drillhole terminated in upper plate rocks around the 5500 foot level about 1500 to 2000 feet above the favorable lower plate rocks. Subsequent examination of the drill logs by S. Keith in early 2003 that is now in the possession of Newmont, the new operator, confirms that the drill hole terminated about 1000 to 1500 feet above favorable lower plate rocks.
•  A deep drill hole on the northeast side of the Hollister open pit gold mine administered by Great Basin Exploration on ground immediately to the west of Baxter in 2001 encountered significant thicknesses of >1 ppm Au in lower plate Popovich at around the 6400 foot level. Lateral extrapolation on to the Baxter ground indicates that these favorable lower plate rocks could lie between 6200 and 6700 feet (that is, about 800 to 1300 feet below the TD of the Anglo drill hole.
•  Based on the above, the deep, possibly Goldstrike-sized, drill target beneath Big Hill remains to be tested.

Jerritt Canyon, Nevada, USA – AngloGold, 1999, bought by Queenstake, as of 2002

•  Pluton Vectoring integrated with aeromagnetic interpretation, re-interpretation of client geologic mapping and re-interpretation of client gold-arsenic geochemistry led to the identification of previously unrecognized gold targets beneath the Roberts Mountains Thrust in a mature gold district. Jerritt Canyon is an example of an economically favorable cluster of Carlin-type, MCA12 Magma-Metal Series models.
•  At least 8 specific targets have been identified that could contain a cumulative 10 million ounces of gold resource.
•  Detailed Geologic Mapping and a Metal Dispersion Study are planned.

Las Lajas, Sonora, Mexico – Phelps Dodge, 1998-99; King Midas 2000-2002; Big Bar Gold, 2004-2005

•  Regional Geologic Analysis and Magma Metal Series Modeling using the Expert System Advisor led to the recognition of an economically favorable, Muruntau-type ( PC1a ) Magma-Metal Series model gold system.
•  Follow-up geologic mapping, geochemistry, and geophysics have continued to upgrade this prospect.

Golden April, Carlin Trend, Nevada, USA—Barrick Gold Corp., 1992-1998

•  Detailed geologic mapping of upper plate rocks in this economically favorable, Carlin-type, MCA12 Magma-Metal Series model , indicated the structural possibility of a concealed gold deposit in lower plate rocks.
•  By late 1998 cumulative drilling by Newmont and Barrick encountered at least 150,000 ounces of gold resource.

El Indio, Central Chile – Black Minerals, 1994; Barrick Gold Corp., 1997

•  A Pluton Vectoring study of this MCA10 Maracunga type and MCA11 El Indio type hypothermal and enargite gold related differentiation sequence identified at least two priority 1 type exploration targets associated with the northeast part of the El Tranque and the southern part of the Inca de Solitario intrusive.
•  To our knowledge, both targets have yet to be drilled, as of March 2006. Barrick Gold Corp. stopped mining the district in the early 2000's. The district is in remission. One of the targets (the El Tranque target) was in part covered by the old mill plant.

Coastal Batholith, Northern Chile – Phelps Dodge, Autumn 1997

•  Regional Geological Analysis of Crustal Oxidation State, Magma-Metal Series Affinity of Pluton Petrochemistry and Mineralogy and Magma-Metal Series Modeling of regional metallogenic occurrence data identified 17 prospective mineral system-scale areas of possible to probable model status for Chuquicamata type ( MCA14C Magma-Metal Series model) or El Salvador type ( MCA14B Magma-Metal Series model).
•  Follow up reconnaissance of these recommended mineral system targets is currently being conducted by Phelps Dodge in 1998.

Chapi, Peru – Phelps Dodge, 1996-97

•  A program of Pluton Vectoring and Detailed of Geologic Mapping integrated with existing drill hole information led to the initial recognition of a possibly economic 485,000,000 ton oxide copper (>0.36% Cu) deposit. Chapi is a member of the economically favorable, Morenci/Chuquicamata-type, MCA14C Magma-Metal Series model.
•  An additional potential of up to 1 billion tons of oxide copper (0.35%-0.50% Cu) in pluton-centered target areas remains to be tested.

Rodeo Creek, Carlin Trend, Nevada, USA—Minorca-Trio Gold 1996-1997; Trio 1998-2004

•  Detailed Geologic Mapping, Metal Dispersion Studies, and Kinematic and Fluid Path Structural Analysis in surface and drillhole samples have led to the identification of two deep Meikle type targets in this economically favorable, Carlin-type, MCA12 Magma-Metal Series model.
•  Up-structure economically interesting gold mineralization has been encountered but principal gold targets to the north remain to be tested. Drilling by Trio Gold in 2004 in areas not recommended by MagmaChem failed to encounter economic quantities of gold.

Red Hill, Nevada, USA – Uranerz 1995

•  Kinematic analysis of existing geologic mapping and a metal dispersion study and analysis of high-resolution magnetic data indicates the presence of a number of undrilled targets in favorable Devonian age host rocks beneath Miocene-age basaltic andesites.
•  Subsequent drilling by Uranerz incompletely tested one of several drill targets.
•  The status of the drill target design as of March 2006 is unknown.

Mercur, Utah, USA – Barrick Gold Corp., April 1992

•  Analysis of existing mapping at this Carlin-type, MCA12 Magma-Metal Series model c ombined with a Metal Dispersion study led to the identification of nine exploration targets, four of which were considered high priority.
•  Barrick closed the mine operation in 1993. The mine is currently undergoing the reclamation process. To our knowledge none of the targets identified in the metal dispersion study have been adequately tested.

Slaven Canyon, Nevada, USA – Hecla/American Copper and Nickel, 1987-89; Uranerz, 1990-93?

•  A program of regional geologic analysis of Crustal Oxidation State and Magma Metal Series Modeling identified an area of potential, economically favorable, Carlin-type (MCA12 Magma-Metal Series model) mineralization.
•  Follow-up reconnaissance mapping and sampling using the Expert System Advisor resulted in the discovery and acquisition by staking of a Roberts Mountains Allochthon gold deposit.
•  Drilling by Uranerz drilling in 1992-93 discovered an approximately 50,000 ounce gold resource hosted by Valmi Formation quartzites at a shallow depth. The deep potential remains untested.

* Note: Text in italics and bold identifies specific tools that are unique to the magma-metal series approach (with the exception to the detailed geologic mapping) and that were used to develop the target concepts summarized in each text entry.