Gold, Silver PM's Rich Mines, Utah

[NYBob]

The most upper holes RC-1 through RC-7 were placed well above the elevation of the known workings of the No. 2 Tunnel and slightly south of the northwesterly trending ore channel. Significant mineralization was intercepted in holes RC-1 and RC-2, which were drilled in the area closest to the main ore channel.

Drill holes RC-5, 6, 8, 9, 13 and 14 were all drilled well south of the historically delineated mineralization, and on the southern most up-side of a post mineral fault. It can be concluded that mineralization intercepted in these holes is not directly related to the mineralization of the main Upper Deer Trail ore channel.

Interval Gold Silver
Hole from - to (ft) (grams/troy oz.) (grams/troy oz.) Lead (%) Zinc (%)

RC-1 190 - 230 40 0.207 10.98 0.355 0.205

RC-2 40 - 45 5 0.364 95.36 3.61 0.390

Includes 175 - 180 5 0.369 45.71 2.87 1.41

RC-10 65 - 95 30 0.363 16.48 0.086 0.022

RC-11 60 - 70 10 1.36 52.25 0.758 0.191

Includes 65 - 70 5 2.26 32.69 0.961 0.289

RC-12 85 - 90 5 0.460 137.14 3.94 1.00

RC-17 55 - 65 10 0.799 13.02 0.033 0.012

RC-18 45 - 50 5 1.54 40.77 0.154 0.018

RC-19 0 - 140 140 0.527 14.65 0.116 0.107

Includes 35 - 45 10 2.64 14.11 0.840 1.26

Includes 35 - 40 5 4.66 21.15 1.30 2.14

Includes 75 - 120 45 0.930 34.86 0.135 0.021

Includes 95 - 105 10 3.17 88.63 0.303 0.019

Includes 100 - 105 5 4.78 151.02 0.682 0.008

RC-20 95 - 100 5 1.92 62.02 0.218 0.030

RC-21 95 - 110 15 0.899 74.29 0.145 0.014

RC-22 110 - 120 10 1.77 18.14 0.074 0.024

Includes 115 - 120 5 3.25 27.52 0.079 0.014


In early 2005, Deer Trail Mining Company contracted with Connors Drilling to commence an underground diamond core drill program. This 2nd phase of exploratory drilling inside the PTH Tunnel of the Deer Trail Mine has been completed. The Phase II underground diamond core drilling program was primarily designed to target known horizons of mineralization and identify new mineralized horizons throughout the main ore channel of the Deer Trail Mine. The Company completed 7,235 feet of diamond core drilling and finished 13 underground drill holes. According to preliminary reports by the Company's geologist, all of the holes drilled were reported to intersect mineralization within their designated targets. That report states that a total of approximately 514 feet of mineralization was intersected and consisted mostly of sulfide minerals (e.g. tetrahedrite, galena, pyrite, chalcopyrite and sphalerite). Other intercepts were encountered through oxidized mineral not reported in this total, as well as zones of subtly altered rock that may contain high mineral values and offer significant potential. The Company is now working on final independent core logging and splitting verification, and plans to ship its core samples to an independent lab for analysis.

In March 2006, Deer Trail Mining Company, LLC entered into an agreement with Behre Dolbear and Company (USA), Inc. to conduct geological services and consulting at Unico's Deer Trail Mine in Marysvale, Utah. The focus of Behre Dolbear's work is related to the underground diamond core drilling program undertaken at the Deer Trail Mine in 2005.

Behre Dolbear is currently performing the geological core logging and spitting verification on the samples and overseeing the shipment of those samples to ALS Chemex for analysis. Behre Dolbear has also been contracted to report on the mineralization and provide additional technical advice on the project as desired by Deer Trail Mining Company, LLC.

Behre Dolbear and Company (USA) has issued the following information from the Interim Summary Report on their work completed thus far. The report from Behre Dolbear states:

"Unico, Incorporated drilled 7,235 feet of BQ diameter core at various inclinations and azimuths from four drill stations in the Patrick Thomas Henry (PTH) adit at the Deer Trail Mine from December 2004 to April 2005. At that time, the core was not logged in detail and no analyses were done. Table 1 summarizes the drilling statistics. The station locations are defined based on the approximate footage from the PTH adit portal.

Table 1

Unico Phase II Drill Holes



UDDH Drill Station Inclination Azimuth Total Length
Hole # Location (in degrees) (Feet)
1* 4400 -45 102 740
2 4400 -40 102 648
3* 4400 -42 92 782
4* 4400 -42 150 554
5* 4400 -55 102 664
6 4400 -45 21 409
7 4400 -58 298 733
8 4400 -75 300 565
9* 4700 -45 116 460
10 4900 -75 0 460
11* 3400 +45 258 454
12* 3400 +45 162 355
13* 3400 -65 125 420
Total Footage 7,235


*Logged by Behre Dolbear

Behre Dolbear & Company (USA), Inc. (Behre Dolbear) contracted with Unico in March 2006 to geologically log the core, select intervals for analyses and assays, supervise the sawing of the selected intervals, submit those samples to a laboratory for analyses, opine on the mineralization observed, and provide technical advice to Unico. Between March 23, 2006 and October 6, 2006, Behre Dolbear logged in detail 4,429 feet of core from the eight holes indicated in Table1. A total of 550 samples totaling 611 feet of core containing trace to significant mineralization from six of the holes (UDDH 1, 5, 9, 11, 12, and 13) has been selected, sawed, submitted for analyses and assays, and the results received and evaluated. Analyses are pending from 228 samples from 385 feet of core in UDDH 3. UDDH 4 has been logged, but sample intervals have not been selected.

ALS Chemex (Chemex) did the analyses and assays at its laboratory in North Vancouver, British Columbia. Sample preparation, analyses, and assays were done as requested by Behre Dolbear using Chemex's standard protocols. Gold was determined by fire assay with an atomic absorption spectrometry (AAS) finish. All samples were also analyzed for a 34-element suite of major and potentially significant trace elements using an aqua regia digestion and an emission spectrographic scan. Chemex's quality control-quality assurance system complies with the requirements of the international standards ISO 90001:2000 and ISO17025:1999.

The Pennsylvanian Callville Limestone is the host of the mineralization in the holes logged by Behre Dolbear at the Deer Trail Mine. Behre Dolbear has logged over 4,400 feet of core that traverses the various lithologies of the upper +700 feet of that formation. This detailed logging has resulted in the recognition of ten previously unrecognized informal members and/or other subdivisions that will enable future work to place the mineralized horizons in the vicinity of the mine into stratigraphic perspective.

The mineralization in the Callville Limestone typically consists of stratabound narrow conformable bands of semi-massive to massive sulfides separated by relatively long intervals of weakly mineralized to barren rock. Ore minerals include sphalerite, galena, chalcopyrite, and tetrahedrite-tennantite. Where the significantly mineralized zones are thicker, the mineralized bands are closer together.

Based on the analytical results received to date, Behre Dolbear combined 33 continuous assay intervals from six holes into gross assay intervals ranging from 2.3 feet to 95 feet in length, uncorrected to true stratigraphic width.
Intervals within the gross intervals were combined into 113 detailed intervals based on their grades.

The best intervals based on thickness and grades in multiple metals in the six holes from which analyses have been received are listed in Table 2.

Table 2 shows that significant mineralization in most of the holes is confined to relatively narrow intervals ranging from 1.0 feet to 10.6 feet. The thickest intercept with significant mineralization is in UDDH 12 at 55.2 feet. The intervals are uncorrected for the true widths of the intercepts and will all be thinner than stated, some possibly as much as fifty percent thinner. Overall, silver contributes the most value of the metals in Table 2 with zinc second and gold, copper, and lead contributing subordinate values. In some of the intervals, the silver and gold are high but the base metals are low. Copper contributes more value than zinc in some of these intervals. Only one of the intervals (UDDH 11 at 105.0 to 110.6 feet) has high values in all of the metals.
The highest gold and silver values are in UDDH 1 (5.273 ppm Au=0.167oz/t Au; 366.9 ppm Ag= 10.71 oz/t Ag), and UDDH 11 (4.564 ppm Au= 0.133 oz/t Au; 585.1 ppm Ag= 17.08oz/t Ag).

Table 2

Best Interval from Each Analyzed Hole


Analyzed Analyzed Interval Au Ag Cu Pb Zn
UDDH From To (Feet) (ppm) (ppm) (%) (%) (%)
1 365.5 370.4 4.9 5.723 366.9 0.01 0.16 0.42
406.6 417.2 10.6 1.062 177.6 0.11 0.58 1.58
456.0 462.5 6.5 0.350 156.4 0.24 1.38 2.08

5 322.0 327.0 5.0 0.870 164.1 0.25 2.09 1.27
419.0 419.9 0.9 1.510 116.0 0.27 0.35 0.18

9 293.7 300.1 6.4 0.372 46.8 0.15 1.28 1.78
434.6 435.6 1.0 0.310 102.0 0.39 5.20 6.59

11 7.7 13.4 5.7 4.564 585.1 0.45 0.71 0.83
105.0 110.6 5.6 1.600 550.6 0.96 2.0 2.43

12 5.8 61.0 55.2 0.608 183.1 0.44 0.40 0.67
220.0 221.9 1.9 2.170 128.0 0.01 0.01 3.32

13 77.9 78.9 1.0 0.380 188.0 0.60 3.10 3.89


There is potential for an economic deposit at the Deer Trail Mine if the metals occur together in significant grades and in widths (generally greater than 10 feet) that are adequate for mining. Additional work is required to determine if those conditions exist. Before additional drilling is done, the results of the logging, analyses, and observations by Behre Dolbear should be combined with the data and results from previous work to develop a three-dimensional model of the deposit. Development of that model will require data from surface and underground mapping, previous mining, and drilling from this and previous campaigns. All of this data on lithologies, structures, mineralization, and alteration must be put together on maps and cross sections to build the model.
Based on that model, the geometry (true widths and lateral extents) and grades of the mineralization as currently known will be indicated and decisions can be made if additional drilling has the potential to define economically mineable mineralization. It has not been determined if there is adequate data available from previous work to construct a good model."

In November 2006, Deer Trail Mining Company modified and expanded the agreement with Behre Dolbear and Company (USA), Inc. for geological services at Unico's Deer Trail Mine. The new agreement and work order adds several new areas of consulting that will fall under Behre Dolbear's scope of services on the Deer Trail project. Under these new revisions Behre Dolbear will assemble all the available data relating to the locations, volumes, and grades of the tailings that Deer Trail intends to process through the Project's mill. Based on the . . .

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