Red Lake District, Ontario

The Company has two properties (Kwai and SLF) in the Dixie Lake area. The Kwai property is contiguous to the south side of the BTU Minerals property which is adjacent to the new Dixie Lake discovery of Great Bear Resources.

The Subprovince boundary between the Uchi volcanic belt to the north and the English River metasedimentary belt in the south is a deep-seated, regional fault that can be traced for 500 km from overlying Paleozoic cover in Manitoba, to under the Paleozoics of the James Bay lowlands. In the area of the two claim groups, it has bifurcated into the northern Pakwash Lake fault, and the southern Sydney Lake fault. They join up again several kilometres to the east.

At Dixie Lake, approximately 8 kilometers north of the Kwai property, the eastern zone (Dixie Limb Zone) is an historical showing and is associated with narrow quartz veining in/near an argillite and Iron Formation.

The western zone (Dixie Hinge Zone) is the current focus of drilling by Great Bear Resources with some excellent results. The Long section and descriptions indicate most gold is in quartz veins within a broad (40 m) sulphidized and silicified zone. They interpret this zone to follow a NW trending D2 (second order deformation or fold) direction. It has been postulated that the D2 structure continues to the southeast and may be offset.