Properties

Kabba

Drill Results

Phase I Drill Summary:

All four drillholes showed geological indications of proximity to a porphyry copper-molybdenum system such as sericitic or potassic alteration or sulfide mineralization. The drillholes were spread over an area of 1.3 kilometers by 3.3 kilometers, reflecting the large size of the target and the large magnitude of horizontal slip on the Hualapai fault, the principal fault that has decapitated the porphyry Cu-Mo system. The distance between holes K-1 to K-2 was 1.3 kilometers heading east. The distance between holes K-2 to K-4 was 1.8 kilometers, in the same easterly direction.

Drillhole	Depth to Bedrock	Total Depth	Notes
K-1	645 m	914 m	Footwall block - widespread potassic alteration. Sparse chalcopyrite and pyrite. Ended in quartz monzonite porphyry.
K-2	610 m	837 m	Hangingwall block - postmineral basalt capping widespread weak fluorite-pyrite mineralization disseminated in Precambrian granite.
K-3	506 m	826 m	Footwall block - common low grade molybdenite, common intense sericitic alteration, ended in quartz monzonite porphyry. Intersected 90 meters averaging 0.014% Mo.
K-4	101 m	1053 m	Hangingwall block - strong exotic iron oxide staining up to 180 meters below top of bedrock, widespread sericitic alteration with disseminated pyrite, local breccia intervals with strong arsenic, mercury, thallium, zinc, nickel, and lead anomalies, and more than 20 altered porphyritic dikes. Samples submitted to laboratory for Au-Ag fire assay.

Drillholes K-1 and K-3 cut the footwall block of the faulted porphyry system 1.0 and 1.3 kilometers, respectively, east of the outcropping quartz monzonite porphyry. K-3 was sited 1.3 kilometers north of K-1. Both of these holes cut altered and mineralized quartz monzonite porphyry, demonstrating that the outcropping part of the footwall mineralization extends more than 1 kilometer under gravel cover to the east, and that the full width of the quartz monzonite porphyry stock is at least 3 kilometers. Molybdenum assays in K-3 showed up to 90 meters grading 0.014% Mo at depths between 644 m and 734 m hosted by strongly sericitized quartz monzonite porphyry. This intersection is interpreted to be part of the relatively barren root zone of the porphyry system in the footwall block of the Hualapai fault. Drillhole K-1 intersected sparse, blebby copper mineralization as chalcopyrite and pyrite associated with locally intense potassic alteration, also interpreted to be typical of the root zone of the porphyry system. Both holes showed rare-earth enriched fluorapatite, a common accessory mineral in fluorine-rich porphyry systems.

Drillhole K-2 was the first hole in the program to successfully penetrate the hangingwall block of the Hualapai fault, wherein the target is expected to be found. The position of K-2 in the hangingwall block was confirmed by the presence of 24 meters of post-mineral basalt capping the Precambrian granitic bedrock. A single 10-meter-thick porphyry dike was cut in K-2 at a depth of 774 meters. Other than widespread, sparsely disseminated fluorite, hydrothermal alteration was largely absent in this hole, suggesting a distal position from the target. Precambrian granite in the hole was identical to granite seen in the footwall block, but in a position well west of the targeted porphyry system. Consequently, the final hole in the program was sited 1.8 kilometers east of K-2.

Drillhole K-4 intersected hydrothermally altered and weakly mineralized granite at a surprisingly shallow depth beneath only 101 meters of gravel cover. This drillhole is believed to have penetrated the outer barren pyritic shell of a major porphyry Cu-Mo deposit. Strong exotic iron oxides were seen coating fracture surfaces in the bedrock for 180 meters in depth, followed by variably sericitized granite and strongly altered andesitic porphyry dikes throughout the rest of the 1053-meter-deep hole. A swarm of more than 20 altered andesite porphyry dikes was cut in the hole. Sericitized and quartz-veined Precambrian granite carried disseminated pyrite, sparse fluorite mineralization, and locally anomalous lead, zinc, arsenic, copper, and nickel, typical of values seen in the outer pyritic fringes of major porphyry Cu-Mo systems. Visible molybdenite was present in at least one milky quartz vein cut by the drillhole. Veinlets having texturally destructive sericitic envelopes (D-veins) were present in many places throughout the hole. At least two hydrothermal breccia intervals were cut by the hole; both carried highly anomalous arsenic, thallium, and mercury. These intervals were sampled and transmitted to a laboratory for gold-silver fire assays. The maximum gold content in these samples was 0.1 ppm Au, though most of the samples yielded no significant gold or silver.

Drillhole K-4 demonstrates that molybdenum-bearing veins, sericitic alteration, brecciation, and sparse fluorite mineralization are present at a location that was predicted prior to drilling to contain the decapitated top of a known porphyry Mo-Cu system. A geological reconstruction of the porphyry hydrothermal system, using all available information from outcrops and this new drillcore, suggests that the original volume of hydrothermally altered and potentially mineralized rocks exceeded 15 cubic kilometers. Much of this giant system is expected to be preserved beneath the Company's land position, in the vicinity of drillhole K-4.


Phase II Drill Summary(ongoing):

Phase II drilling of the Kabba project began in February 2009 and is ongoing. Eight drill sites located generally east and south of drillhole K-4 have been permitted on federal land. Drilling is being done with diamond drilling, air rotary, and mud rotary equipment to keep costs at a minimum. At the present time, drillhole K-5 has been completed and drillhole K-6 is underway.

Drillhole	Depth to Bedrock	Total Depth	Notes
K-5	218 m	351.3 m	Hangingwall block - sheeted limonite-ankerite veinlets carrying elevated arsenic, manganese and zinc mineralization. Weak supergene copper enrichment with disseminated pyrite at the bottom of the hole.
K-6	-	-	Hangingwall block -- In progress in postmineral basalt.

Drillhole K-5, located 1.2 kilometers east of K-4, cut sheeted limonite-ankerite veinlets carrying elevated arsenic, manganese and zinc mineralization, consistent with mineralization expected at the outer margins of a porphyry system. Weak supergene copper enrichment was present with disseminated pyrite at the bottom of the hole. Based on the relatively weaker, distal alteration in K-5 relative to K-4, the focus of drilling shifted southward. Drillhole K-6 was sited to test a northwesterly trending vein system in the bedrock outcrops to the east, on trend with drillhole K-4. This location is also close to outcropping quartz porphyry plugs carrying elevated Cu, Mo, Se, As, and W.