Properties: Deep River

Deep River contains gold-copper-molybdenum mineralization that is associated with altered porphyry intrusions and associated volcanic rocks and sediments. This high-level porphyry gold style mineralization in the Carolina Slate Belt is considered to have the potential for significant tonnage and economic value. The highly anomalous soil gold values found at Deep River are analogous to those encountered during the initial geochemical surveys at the two-million ounce Ridgeway gold mine.

The alteration associated with this porphyry system forms an elliptical shape elongated in a northwesterly direction and covers an area of approximately 8 km by 5 km. Within this system, the known soil gold anomaly (+ 50 ppb) has dimensions of approximately 3 km by 1 km with gold values up to 3.5 g/t. The broad alteration pattern may indicate the sub-surface existence of a much larger intrusive system that has not been drill tested.

Results from rock sampling of the limited outcrop in the prospect area range up to 3.1 g/t gold, 0.2% copper, 0.13% molybdenum and 0.74% lead. Rock samples taken outside of the original soil grid reported 2.5 g/t and 0.6 g/t gold, indicating good potential to expand the overall dimensions of the mineralized zone. The overall zone of mineralization is poorly exposed due to deep weathering and vegetation. An airborne magnetic, radiometric and EM geophysical survey show that the presently known area of alteration and mineralization is situated on the northwest flank of a large magnetic low, indicating that the system may be significantly larger than exposed.

LOCATION / INFRASTRUCTURE
The Deep River Gold Project is located in central North Carolina, approximately 100 kilometers southwest of the capital city of Raleigh, in a rural area consisting primarily of farms and timberland. Infrastructure is excellent with good road access and readily available power and water, as well as a skilled labor force.

Mining in North Carolina is not subject to federal mining law but is regulated by State agencies. The present state government is considered by the company to be pro-business and environmental permitting is expected to proceed without significant difficulties. All land, including the minerals rights in the prospect area is privately owned.