HANDCAMP Phase 2 via 8-K Form 10/27/10
The objectives of the next phase of exploration are: to test for further extension of mineralization related to the Handcamp mineralized zone; to drill test other targets already identified in the area; and potentially identify new ones as a result of geophysical, geological and geochemical surveys to be carried out on extensions of the existing grid. As part of Phase 2, a program has already been initiated to include 73km of line-cutting (completed), to be followed up by soil sampling, geological mapping, prospecting, IP surveys and diamond drilling (See “Figure 4”). Soil sampling is to be completed on the extended grid in an effort to locate exploration targets for follow-up exploration. An IP survey will be completed as a priority along with follow-up prospecting and geological mapping on targets identified by the geophysical and geochemical surveys. Further trenching may be required in local areas to facilitate mapping. An enhanced drilling program (3,000m) is also planned that will include testing mineralization to the south where it appears to improve, as well as other targets identified from results of the geophysical and geochemical surveys already completed. It will also include holes to the north and west contingent on additional targets that may be identified by the induced polarization and soil geochemical surveys.
Further exploration beyond Phase II is contingent upon positive results from that phase. If warranted, a multi-phase exploration program will be carried out with the initiation of each new phase contingent on positive results from the previous phase. Continued positive results from the multi-phase exploration program would lead ultimately to a third party pre-feasibility study and production decision.
A total expenditure of $10M is anticipated to be required to implement all of the phases, with approximately $6.5M required in order to implement the next two phases of delineation drilling contingent on the success of Phase II exploration. Should any of the exploration phases prove unsuccessful at the Property, any financing raised for the execution of the work could be redirected to other projects under the direction of the Company.
