Strong chargeability and resistivity anomalies have been defined semi-continuously along a northeast trend for over six kilometers. The anomalies are over one kilometer wide in places and are consistent with the reflection of multiple porphyry copper-gold cells at depth. The IP appears to define four separate porphyry centers at Kay Tanda, Ahit / Balibago, Marita and Bootin (see map "Archangel Project -- Gold Resources and Prospects" as below)


Archangel Project -- Gold Resources and Prospects

Detailed geological mapping along the Archangel copper-gold trend, as well as detailed independent petrological studies and PIMA clay analyses, confirm alteration types. Geological, geophysical and geochemical data have been integrated to define the following principal porphyry copper-gold drill targets along the six kilometer trend.


Project Geologist Egay Fetiza, sampling at Archangel

Kay Tanda

The extent and intensity of alteration and mineralization noted at Kay Tanda itself, strongly suggest porphyry copper-gold mineralization below, or nearby. Deep drilling suggests at least two superimposing porphyry systems related to the emplacement of the San Juan Diorite probably in the Early Miocene and a younger Pliocene magmatism related to the emplacement of Dacite Porphyry. Widespread phyllic, SCC alteration is overprinted by advanced argillic and argillic alteration with high temperature clays. In hole KTDH-10, for example, porphyry signatures are obvious and include: increase in chalcopyrite: sphalerite/galena ratio; occurrence of chalcopyrite-bornitemolybdenite plus hydrothermal magnetite near end of hole; and pervasive anhydrite as gangue mineral. In other holes, grey quartz veinlets with chalcopyrite and some bornite mineralization have also been encountered in places at depth. Deeper drilling may intersect potassic zones of the porphyry system. Information from the current shallow resource delineation drilling of Kay Tanda is being compiled and interpreted and will lead to deeper drill testing of porphyry copper-gold targets at a later date.

Ahit-Balibago

At the southwestern end of Archangel, Ahit-Balibago is an 800 meter by 600 meter, high-chargeability anomaly with a coincident resistivity anomaly. Ahit Hill exhibits intense argillic and advanced argillic alteration, probably telescoped into the top of a porphyry system. PIMA clay analyses revealed prominent high-temperature potassic white mica (high-temperature illite). Extensive and strong copper-in-soil anomalies are associated with the alteration. Further southwest of Ahit, a magnetic low anomaly is located in an area associated with young, highly magnetic agglomerates and basaltic andesite. The magnetic-low anomaly is a possible porphyry target due to the positive correlation between magnetic-lows and mineralization in the Lobo-Taysan district; e. g., in the Taysan and Old Lobo Mine areas.

In 2006, two reconnaissance diamond drill holes, 500 meters apart, were drilled to test the strong chargeability anomaly coincident with copper-oxide showings and quartz veining. They intersected dacite porphyry, diorite, and quartz diorite stocks intruding andesite and dacite volcanics with porphyry-related alteration. Weak to moderate sulphides were intersected, including pyrite and minor chalcopyrite, covellite and bornite associated with galena and sphalerite. The holes bottomed at 500 meters depth in the anhydrite-gypsum zone of the porphyry system, which is normally adjacent to the potassic mineralized core. The information will be used to target later drilling with a larger drill rig to vector into the mineralized porphyry center.

Marita

The Marita prospect is located northeast of Kay Tanda, and is a one kilometer by 700 meter, high-chargeability zone with a coincident high-resistivity anomaly. The area is underlain by volcanics intruded by dioritic to dacitic intrusives, capped and masked by young volcanic cover to the northwest. Alteration is phyllic, overprinted by intense argillic alteration. Detailed mapping, including analysis of fracture pattern, and trenching activities revealed strongly oxidized quartz-sulphide stockworks, in places with associated copper mineralization. A highly silicified and stockworked boulder contains disseminated chalcopyrite and assayed 9.92 g/t gold (surface-enriched).

Independent consultant, Dr. Bruce Rohrlach, using PIMA data, summarized his findings, "The Marita area is associated with a very distinctive circular zone of sericite alteration that is approximately one kilometer in diameter. Within this illite alteration lies an arcuate zone where illite occurs in association with jarosite. Jarosite is a common weathering product of pyrite and is seen in a number of porphyry systems that have extensive jarosite development in their leached caps. The arcuate jarosite zone defined by PIMA is broadly similar in shape and position to the arcuate core of the IP anomaly (>40 msec at n=3). Hence it is reasonable to suspect that the sulfides that define the core of the IP anomaly are also responsible for the jarosite development where they are oxidized at surface."

Bootin

Bootin is located about 1.5 kilometers north of Marita and is associated with high-chargeability and high-resistivity anomalies. The area is largely covered by young, volcanics with windows of phyllic-altered andesite, andesite porphyry and diorite. A hydrothermal breccia pipe with a matrix of fine pyrite and clay occurs on the northwest side of the prospect. Zones of argillic to advanced argillic alteration have been mapped and localized copper showings found. A grab sample from a north-northeast trending gougy fault assayed 27.61 g/t gold.

• Kay Tanda
• Ahit-Balibago
• Marita
• Bootin