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During 2010, comprehensive re-interpretation of the Astoria data was done, which revealed that gold mineralization hosted in the Aw and Piché zones continues to depth and appears to become thicker and higher grade.  In addition, the five zones identified previously, the A, Ae, Aw, B and Bw zones, were consolidated into four zones, the Hangingwall, Piché Upper, Piché Lower and Footwall zones to reflect in more realistic terms the geology and structure of the Astoria deposit.  These zones correlate well with the four zones defined at Augmitto.

A report from an independent consulting geologist was received, which provided a comparison of drill data and the actual production from the Astoria mine. Such an exercise will prove extremely valuable in future resource evaluations because it is equivalent to drilling a mineralized zone and then doing a bulk sampling and test mining of the zone.

The highlights of the report are:

  1. Diamond drilling data represent very well what can be mined from a structure like the Astoria A-West zone (footwall zone) in spite of the "nugget effect", less than ideal drill spacing, and other phenomena that can affect a mineralized structure;
  2. The mined vein above Level 7 splays and becomes multiple narrow veins with low grade wall rock between them. Surface holes penetrated 15-20 m true widths averaging 2-3 g/t Au. These zones might be mineable by underground bulk mining, thereby adding ounces to the resource;
  3. The nugget effect is limited in the Aw zone (footwall zone) so that in this gold zone the grade based on drill data will closely reflect what can be expected of the mined grade before mining dilution. This may not be true of mineralized zones within the Piché Group, which have a stronger nugget effect;
  4. Analysis of the grade distribution in the mined area shows that the mined vein becomes wider, higher grade, and more coherent with depth. The average grade on Level 7 is about 6 g/t Au, but at Level 10 it is about 10 g/t. This work clearly demonstrates that the Astoria zone is open at depth and in fact is quite possibly better in width and grade than the mined area.

Four holes totalling 2,286.0 meters were drilled during 2010.  Drill hole 10-AS-524 cut 26.9 m (core length) of metasediments containing grey quartz veins hosting percent levels of brown tourmaline, arsenopyrite, pyrite, pyrrhotite, chlorite, and traces of chalcopyrite, as well as calcite veinlets.  These minerals are important exploration guides to gold-mineralized zones, as identified in the Company’s data compilation and core re-logging programs, and indicate the excellent exploration potential of this 600-metre-wide gap between the Lake Gamble and Astoria deposits.  The hole also cut 5.3 m (core length) of altered Piché Group, namely talc-chlorite schist, carbonate schist and calcite-chlorite schist. 

Drill hole 10-AS-525 cut 48 m of similar mineralization in the footwall metasediments.  The Piché Group in this hole extends over 4.8 m core length of carbonate schist.

Assay results from holes 10-AS-524 & 525 are shown in the following table:

Drill Hole1 From (m) To (m) Core Length (m) Approx. True Width (m) Au g/t
FA		 Host Rock Unit
524 648.0 649.0 1.0 0.7 2.79 FWZ2
  654.9 658.5 3.6 2.5 2.96 FWZ
incl. 654.9 655.9 1.0 0.7 6.1
525 493.0 494.0 1.0 0.7 3.81 FWZ
  495.9 497.3 1.3 0.9 2.47 FWZ
  513.0 513.8 0.8 0.5 1.34 FWZ
  516.0 518.3 2.3 1.6 2.30 FWZ

1: prefix 10-AS-
2: FWZ = footwall zone

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