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Drilling was done to test the zones around the Cinderella discovery, with 5,833.87 m drilled in twelve holes and one wedge cut during the first half of the year. The wedge cut was drilled from drill hole 09-CI-519 that cut 74.67 g/t Au over 10.35 metres in the footwall zone plus 10.1 g/t Au over five metres in the Piché Group. This wedge cut was designed to test the lateral continuity of the gold mineralization, and achieved a separation of about 16 metres from the bonanza footwall zone in hole 519. Abundant quartz veining and disseminated arsenopyrite with traces of visible gold were found to occur in rocks of the Piché Group and in the footwall zone. Assay results are shown below.

Drill Hole1 From (m) To (m) Core
Length (m)		 Approx.
True Width (m)		 Au g/t Host
Rock Unit
519A 431.0 432.0 1.0 0.7 3.60 Piché Group
519A 537.85 541.1 3.25 2.3 5.02 FWZ2
incl. 537.85 538.85 1.0 0.7 11.9 FWZ
519A 546.5 547.5 1.0 0.7 3.41 FWZ

1: all holes have prefix 10-CI-
2: FWZ = footwall zone

The best assay results from drill holes 533 and 534 in the Cinderella area are shown in the following table.

Drill Hole1 From (m) To (m) Core
Length (m)3		 Au g/t Host
Rock Unit
533 442.0 443.0 1.0 4.93 Piché Group
  554.12 554.75 0.63 21.3 FWZ2
534 453.0 454.0 1.0 7.66 Piché Group
  463.0 464.0 1.0 3.39 Piché Group

1: prefix 10-CI-
2: FWZ = footwall zone
3: the true width is expected to be approximately 70% of core width but may vary where unrecognized structural complications occur

Drill hole 10-CI-535 cut an impressive 33 m (core length) of mineralized rock that averages 3.35 g/t gold including an interval of 7.0 m with a grade of 9.59 g/t gold. 

Assay results for hole 10-CI-535 are shown below:

Drill Hole1 From (m) To (m) Core Length (m)3 Au g/t Host Rock Unit
535 481.0 514.0 33.0 3.35 HWZ2 and Piché Group
incl. 507.0 514.0 7.0 9.59 Piché Group
incl. 511.0 514.0 3.0 16.70 Piché Group

1: prefix 10-CI-
2: HWZ = hangingwall zone
3: the true width is expected to be approximately 70% of core width but may vary where unrecognized structural complications occur

In addition to the drilling, the Company’s geologists initiated during the second half of the year a comprehensive re-evaluation of the historical data on the Augmitto deposit.  Re-logging of drill core clarified and simplified the previous geologic interpretation of the deposit, as illustrated in the before-and-after cross sections along Augmitto Section 5200E.  More albitite dikes were identified which, as mentioned above, are associated with gold mineralization at the Kerr Addison mine. This section demonstrates that the geology and structure of the Augmitto deposit is less complicated and more predictable than originally believed. Also, re-logging identified sections of drill core that should have been sampled for assay by the original loggers, but were not. Assaying of these intervals has identified portions of the core to be potentially of ore grade, a result that indicates that gold mineralization at Augmitto may not be as intermittent in certain areas as originally believed. 

The information gained from the data re-compilation has allowed the Company’s geologists to identify exploration parameters, mainly mineralogy of the gold zones as well as factors such as the ratio of silicified to non-silicified Piché rock, that have focused the Company’s attention on certain high-priority drill targets. The re-compilation also demonstrates that four main gold zones occur at Augmitto, which are called the Hangingwall, Upper Piché, Lower Piché, and Footwall zones. These zones have been correlated to the four zones that host the Astoria gold mineralization.

These results can be seen by clicking on the link Augmitto-Astoria longitudinal section that identifies the high-priority drill targets that will be drill tested during 2011, which will focus on drilling the Augmitto, Cinderella and Lake Gamble deposits to a drill spacing that will allow calculation of 43-101 compliant resources. The figure Augmitto-Astoria stratigraphic comparison demonstrates the newly-defined gold zones at both deposits.

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