| ANNUAL - 2000 |
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2000 |
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With the acquisition of the Fountain Lake property in 1999, the Company
now controls a significant land position comprising over 3,000 hectares in the
Shebandowan greenstone belt, located 100 kilometres west of Thunder Bay,
Ontario.
The Moss Lake deposit itself contains indicated resources of 60 million tonnes
grading 1.1 grams of gold per tonne, or 2.1 million in-situ ounces of gold above
a depth of 250 metres. Ramp accessed underground development completed in
the late 1980’s helped define a higher grade measured and indicated resource of
475,000 tonnes grading 6.2 grams of gold per tonne within the larger resource.
Although an important future resource, a declining gold market has forced the
Company to look beyond this deposit and examine the potential of its large land
position.
This work commenced with a comprehensive compilation of historic data in 1999
followed by linecutting, geophysics and mapping of the central portion of the
Fountain Lake property in 2000. In 2001, this work is being extended to cover
the eastern and western portions of the property. This work is recognizing both
gold and base metal potential and prioritizing targets for preliminary drill testing
when more favourable conditions exist. The Fountain Lake property hosts
several gold occurrences and is underlain by the broad felsic volcanic assemblage
which hosts the neighbouring, past producing Coldstream copper-zinc mine. We
are hopeful that encouraging results will generate sufficient interest to finance
further work.
Although the last few years have been very difficult for the gold mining industry
in general and the exploration community in particular, we persist in our belief
that the worst may be behind us.
The Board of Directors continues to examine potential mechanisms to increase
shareholder value via acquisitions or new business combinations. The Company
owns substantial gold resources and believes that stronger future gold prices and
astute exploration will bear fruit over time.
On behalf of the Board of Directors,
George N. Mannard
President
May 1, 2001
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