Luxor Project

Luxor Project Description, Location and Access

The Sheba, Ophir and Hav properties make up the Company’s Luxor Project and are located within areas of localized active placer mining south of the Indian River in west-central Yukon Territory. The terrain on all three properties is moderate. In most areas outcrop is fairly scarce, confined mainly to stream valleys and ridgelines. The climate is continental subarctic, with short warm summers and long, cold winters. The field season extends from late May to mid-September, depending on elevation, although exploration can extend into late autumn.

The Luxor Project lies within the Dawson Range Gold Belt where known gold and porphyry copper deposits show a wide range of styles, geological settings and geochemical associations. Mineralization in the Dawson Range Gold Belt is gold, silver, copper and molybdenum porphyry deposits (Casino), mineralized breccia deposits (Coffee) and lode and stock-work veins (Golden Saddle). All three styles of mineralization have been identified near the Ophir, Sheba and Hav properties.

Sheba Property

The Sheba property consists of 160 mining claims covering 3,360 hectares (8,299 acres) at the confluence of two forks of Wounded Moose Creek east of Eureka Dome. Elevations range from just under 600 metres along Eureka Creek to 1,000 metres in the western area of the property. There is no road access, although the confluence is located 7.1 kms from the Indian River Bridge of the Eureka Dome Road, which extends to active placer operations along Maisy May, Black Hills and Henderson creeks.

The Sheba property is directly east of the Eureka prospect, which consists of three mineralized showings, the Allen, the Wealth and the Childs showings. Grab samples from the Allen showing, located along the upper reaches of Eureka Creek consisted of milled, clay-rich brecciated quartzite and quartz-muscovite and returned values to 15 g/t gold. Continuous chip sampling across this zone returned a value of 0.44 g/t gold across 4 metres. At the Wealth showing, chip sampling returned a value of 0.33 g/t gold across 6.5 metres. Check assaying returned a value of 0.41 g/t gold. Reverse-circulation drilling returned a value of 0.66 g/t gold across 8 metres. At the Childs showing, grab sampling returned values to 3.97 g/t gold with 3.2 g/t silver. All showings are associated with sizable gold anomalies identified by soil geochemical sampling.

Ophir Property

The Ophir property consists of 130 mining claims covering 2,730 hectares (6,743 acres) about 3.9 kms west of the Eureka Dome Road. Elevations range from 600 metres at Montana Creek to roughly 900 metres in eastern area of the property. The northwest area of the property covers Montana Creek where active placer operations exist downstream of the Ophir property.

The eastern boundary of the Ophir property is about 3 kms west of the Eureka prospect. No significant metal values were returned from RGS stream sediment geochemical analysis of sites within property boundaries; although a sample taken downstream to the north along Steele Creek returned 12 ppb gold and a sample taken south of the property along Montana Creek returned 17 ppb gold.

Hav Property

The Hav property consists of 70 mining claims covering 1,470 hectares (3,631 acres) 4.1 km southeast of Maisy May Creek. Elevations range from 650 metres along the eastern valley floor to about 1,000 metres along the central ridgeline. The entire extent of Maisy May Creek is covered by placer claims in good standing. Active and past placer workings occur along the extent of Maisy May Creek, accessed by a seasonal road extending south from the Henderson Creek Road. No roads extend directly onto the property, although the northeast corner is within 2 km of the Maisy May Road.