EX-99.66 67 dex9966.htm EXHIBIT 99.66 Exhibit 99.66

Exhibit 99.66

INTER-CITIC MINERALS INC.

60 Columbia Way, Suite 501

Markham, Ontario, L3R OC9

Telephone: +1 (905) 479-5072

Facsimile: +1 (905) 479-6397

www.inter-citic.com

Annual Information Form

For the year ended November 30, 2007

February 22, 2008

CAUTION REGARDING FORWARD LOOKING STATEMENTS

This Annual Information Form (“AIF”) contains or incorporates by reference “forward looking information” which means disclosure regarding possible events, conditions, acquisitions, or results of operations that is based on assumptions about future conditions and courses of action based upon management’s good faith expectations and beliefs concerning future developments and their potential effect on the Company. These may include statements with respect to the future financial and operating performance of Inter-Citic Minerals Inc. (“Inter-Citic” or the “Company”), its current and proposed subsidiaries, its current mineral projects, the estimation of mineral resources, working capital requirements, capital and exploration expenditures, costs and timing of future exploration, requirements for additional capital, government regulation of mining operations, environmental risks, title disputes or claims and limitations of insurance coverage. In some cases forward looking statements can be identified by the use of such words as “plans”,“proposes”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, “believes” or variations of such words and phrases. Forward looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to differ materially from the performance or achievements expressed or implied by the forward looking statements. There can be no assurance that future developments will be in accordance with such expectations or that the effect of future developments on the Company will be those anticipated by management. Such factors include, among others, general business, economic, competitive, political and social uncertainties; the actual results of exploration activities; future mineral prices; accidents, labour disputes and other risks of the mining industry; political instability; insurrection or war; arbitrary changes in law; delays in obtaining governmental approvals or financing or in the completion of the company’s exploration programs. As a result, actual actions, events or results may differ materially from those described in forward looking statements. Forward looking statements are made as of the date of this AIF and the Company disclaims any obligation to update any forward looking statements, whether as a result of new information, future events or otherwise. There can be no assurance that forward looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward looking statements.

CAUTIONARY NOTE TO UNITED STATES READERS – DIFFERENCES REGARDING MINING TERMS IN THE UNITED STATES AND CANADA

While the terms “mineral resource,” “measured mineral resource,” “indicated mineral resource,” and “inferred mineral resource” are recognized and required by Canadian regulations, they are not defined terms under standards in the United States. As such, information contained in this report concerning descriptions of mineralization and resources under Canadian standards may not be comparable to similar information made public by United States companies subject to the reporting and disclosure requirements of the United States Securities and Exchange Commission. “Indicated mineral resource” and “inferred mineral resource” have a great amount of uncertainty as to their existence and a great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an “indicated mineral resource” or “inferred mineral resource” will ever be upgraded to a higher category. Readers are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into reserves.

This document may also contain information about adjacent properties on which we have no right to explore or mine. Readers are cautioned that mineral deposits on adjacent properties are not indicative of mineral deposits on our properties.

In addition, Canadian generally accepted accounting principles vary in certain significant respects from the principles and practices generally accepted in the United States. Readers are urged to refer to Note 13 of the Company’s Notes to Consolidated Financial Statements for the year ended November 30, 2007 for information regarding significant differences from United States accounting principles.

 

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ITEM 1: Preliminary Notes

Incorporated by reference into this AIF are the audited financial statements of Inter-Citic for the years ended November 30, 2007, 2006 and 2005 together with the auditors’ report thereon and related Management’s Discussion and Analysis. These documents are available from the Company’s website (www.inter-citic.com) or from SEDAR at www.sedar.com.

All financial information in this AIF is prepared in accordance with Canadian generally accepted accounting principles.

All dollar amounts referred to in this AIF are in Canadian dollars unless otherwise indicated. The Company’s accounts are maintained in Canadian dollars, however since the Company’s primary business activities occur in the People’s Republic of China (“China”), transactions are often conducted in United States, Chinese and Canadian currencies. Canadian dollar amounts in this AIF have been calculated based on exchange rates as follows. Monetary assets and liabilities are translated at the exchange rates in effect at the balance sheet dates; non-monetary assets and liabilities are translated at rates prevailing at the respective transaction dates. Expenses are translated at average rates prevailing during the year, except for depreciation and amortization related to assets, which are translated at historical exchange rates. Translation gains and losses are reflected in the consolidated statements of operations, comprehensive loss and deficit.

Disclosure of a technical nature in this AIF has been reviewed by Mr. B. Terrence Hennessey, P.Geo., of Micon International Limited, the Company’s independent qualified person as that term is defined under National Instrument 43-101 (“N.I. 43-101”) with respect to the Company’s mineral properties.

All information in this AIF, unless otherwise indicated, is as at November 30, 2007.

 

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ITEM 2: Table of Contents

 

Item 3:       Corporate Structure

    5
  3.1   Name, Address and Incorporation    5
  3.2   Inter-Corporate Relationships    5
  3.3   Project Agreements    5
    3.3.1   Dachang Gold Project    5
    3.3.2   Zalantun Gold Project    6

Item 4:       General Development of the Business

    7
  4.1   Three-Year History    7

Item 5:       Narrative Description of the Business and Risks Factors

    8
  5.1   Summary    8
  5.2   Nature of Operations and Basis of Presentation    8
  5.3   Operations in China    9
  5.4   The Dachang Gold Project    10
    5.4.1   Property Description and Location    10
    5.4.2   Accessibility, Climate, Local Resources, Infrastructure and Physiography    10
    5.4.3   History    11
    5.4.4   Geological Setting    11
    5.4.5   Exploration    12
      5.4.5.1   Geological Mapping    13
      5.4.5.2   Total Field Magnetometer Survey    14
      5.4.5.3   Time Domain Electromagnetic (“TEM”) Survey    14
      5.4.5.4   Soil Geochemistry Survey    14
      5.4.5.5   Trenching    16
      5.4.5.6   Diamond Drilling    30
    5.4.6   Mineralization    50
    5.4.7   Sampling and Analysis    50
    5.4.8   Security of Samples    52
    5.4.9   Mineral Resources and Mineral Reserve Estimates    52
    5.4.10   Exploration and Development    53
  5.5   Zalantun Gold Project    53
  5.6   Specialized Skill and Knowledge    53
  5.7   Competition    53
  5.8   Environmental Protection    54

 

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  5.9   Resale of Shares    54
  5.10   Canadian Corporate Governance Requirements and Securities Laws    54

Item 6:       Dividends

    54

Item 7:       Description of Capital Structure

    54

Item 8:       Market for Securities of the Company

    55
  8.1   Trading Price and Volume    55
  8.2   Prior Sales    56

Item 9:       Escrowed Securities

    56

Item 10:    Directors and Officers, Corporate Governance and Board Committees

    56

Item 11:    Promoters

    58

Item 12:    Legal proceedings

    58

Item 13:    Interests of Management and Others in Material Transactions

    58

Item 14:    Transfer Agents and Registrars

    58

Item 15:    Material Contracts

    58

Item 16:    Interests of Experts

    58

Item 17:    Additional Information

    59

Item 18:    Glossary of Technical Terms

    60

 

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ITEM 3: Corporate Structure

3.1 Name, Address and Incorporation

Inter-Citic Minerals Inc. was incorporated under the Company Act (British Columbia) on February 12, 1985 under the name Bentall Hotels B.C. Ltd. As the Company’s business evolved over the years, the name of the Company was changed to better reflect the nature of the Company’s business at the time. As a result, the name of the Company was changed to Penn-Lube Holdings Incorporated on May 14, 1986, and then to Goldways Resources Inc. on May 6, 1987, and then to Inter-Citic Envirotec Inc. on October 1, 1993, and then to Inter-Citic Mineral Technologies Inc. on September 28, 1999 and lastly to Inter-Citic Minerals Inc. on December 18, 2003.

On July 7, 2004, the Company filed Articles of Continuance with Industry Canada. The Director appointed under the Canada Business Corporations Act issued a Certificate of Continuance continuing the Company under the Canada Business Corporations Act on July 7, 2004.

The Company’s Registered and Records Office is located at Suite 5800, 40 King Street West, P.O. Box 1011, Toronto, Ontario M5H 3S1.

The Company’s Corporate Head Office and principal place of business is located at Suite 501, 60 Columbia Way, Markham, Ontario, L3R 0C9.

3.2 Inter-Corporate Relationships

The Company’s subsidiaries are as follows:

 

  1) Inter-Citic Holdings Ltd. (100% owned), a company incorporated in the Cayman Islands

 

  2) Techmat Inc. (100% owned), a company incorporated in the Republic of Mauritius

 

  3) TechMat (USA) Corporation (100% owned), a company incorporated in Nevada, USA, dissolved on June 1, 2007

 

  4) United Worldwide Ltd. (100% owned), a company incorporated in the British Virgin Islands, dissolved on November 14, 2006

 

  5) Bay Roberts Resources Ltd. (98% owned), a company incorporated in British Columbia

 

  6) Yangzhong Zhonghai Techmat Co., Ltd. (80% owned), a company incorporated in the People’s Republic of China, of which the Company disposed its interest during 2007

 

  7) Honor Link (HK) Ltd. (51% owned), a company incorporated in Hong Kong, dissolved on August 26, 2006

3.3 Project Agreements

The Company’s business is to acquire, explore and develop mineral exploration properties. To date, the Company has entered into two earn-in agreements relating to exploration properties in China: the Zalantun Gold Project (“Zalantun”) on October 30, 2003, and the Dachang Gold Project (“Dachang”) on November 14, 2003. During 2007, the Company wrote-off its investment in Zalantun in the face of excessive administrative delays in organizing the project and a decision by the Company to focus its resources exclusively on Dachang.

3.3.1 Dachang Gold Project

The Company entered into an earn-in agreement for the Dachang Gold Project with the Qinghai Geological Survey Institute (“QGSI”) on November 14, 2003, and as amended on March 22, 2005 and September 17, 2007. The Dachang Gold Project is located in the Province of Qinghai (“Qinghai”), China.

The business of the project is conducted through a Chinese “Co-operative Joint Venture”, the “Qinghai Geological Survey Institute International Joint Venture Company”, whose purpose is to conduct exploration, development and mining of the Dachang Gold Project, in accordance with the Law of the

 

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People’s Republic of China on Sino-Foreign Co-operative Joint Venture Enterprises and associated policies, rules and regulations, whereby the relationship between the partners are established by way of an agreement, which sets out respective capital contributions (“Registered Capital”), terms for division of profits, issues of management and control, and other material terms of the relationship. Such agreements must be approved by relevant government authorities, and a business license must be obtained in order to operate within the scope permitted.

The Dachang Project received approval from the Chinese Commission for Foreign Trade and Economic Co-operation (“COFTEC”) on December 25, 2003 and was issued a business license from the State Administration of Industry and Commerce (“SAIC”) the next day, December 26, 2003.

Pre-existing exploration licenses, as well as new exploration licenses for other areas, were formally transferred and/or granted on November 25, 2004 and have been renewed as a matter of course as and when required ever since. The business license for the project is valid until 2033.

Under the terms of the agreement and related amendments the Company has agreed to fund 100% of the costs associated with exploration and development of the Dachang Gold Project in exchange for 83% of any profits earned. Initial capital contribution on the part of Inter-Citic is defined as monetary contribution as to the equivalent of approximately $6,866,000 (Renminbi 45,000,000). The entire amount of this contribution has been made as at November 30, 2007. The Chinese partner (QGSI) contributed its initial capital to the project by transferring existing exploration licenses held by QGSI.

In addition, the Company is required to complete a pre-feasibility study within one year of the completion of all exploration work at Dachang, and pay to QGSI the equivalent of approximately $1,343,000 (Renminbi 10,000,000) upon the grant of all necessary permits, including related mining licenses, required to bring the project into production. QGSI has agreed to provide the Company with an option to increase its interest in the project from 83% to 90% in exchange for payment equal to the pro rata value of the increased interest in the project based on the valuation of any potential mining project contained in the pre-feasibility study. Inter-Citic also has a right of first refusal on any mineral exploration project for which QGSI seeks foreign investment.

Under the terms of the agreement for Dachang, certain matters require unanimous approval of the partners, including transfer of all or a portion of either partner’s interest in the project, changes to Registered Capital and/or profit distribution, or matters relating to financing, dissolution, liquidation or extension of the term of the project.

3.3.2 Zalantun Gold Project

On October 30, 2003, the Company entered into an earn-in agreement with the Beijing Institute of Geology for Mineral Resources (“BIGM”) regarding the Zalantun Gold Project in the Autonomous Region of Inner Mongolia, China. Under the terms of this agreement, the Company can earn an 85% interest in the project by contributing the equivalent of approximately $2,014,000 (Renminbi 15,002,500) over three years. Minimum contributions are staged as to the equivalent of approximately $537,000 (Renminbi 4,000,000) within 30 days of the organization of the project; the equivalent of approximately $537,000 (Renminbi 4,000,000) within seven to twelve months of the date of the first contribution; the equivalent of approximately $537,000 (Renminbi 4,000,000) within thirteen to eighteen months of the date of the first contribution; and the equivalent of approximately $403,000 (Renminbi 3,002,500) within nineteen to twenty-four months of the date of the first contribution. To date, the Company has not made any capital contributions, pending the organization of the project. The Company also has the ability to acquire an additional 5% interest in the project for the equivalent of approximately $237,000 (Renminbi 1,765,000), for a total interest of 90%.

BIGM is to retain a carried interest in the project. As part of this agreement, the Company also has a right of first refusal on any mineral exploration project for which BIGM seeks foreign investment. To date, the Company has not made any financial contributions relating to this agreement.

 

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During the year ended November 30, 2007, the Company wrote-off $91,825 in costs associated with the Zalantun Gold Project in the face of ongoing delays in organization of the project, and the Company’s decision to focus substantially all of its resources in the exploration of Dachang. The Company does not anticipate any further investment in this project.

ITEM 4: General Development of the Business

4.1 Three-Year History

On July 30, 2003, the Company announced that it had signed preliminary agreements with QGSI and BIGM with respect to the Dachang and Zalantun Gold Project, respectively. The parties entered into earn-in agreements for the projects later that same year, on October 30 (Zalantun) and November 30, 2003 (Dachang).

The Company completed exploration programs in 2004, 2005, 2006 and 2007 at Dachang, including geophysical, geochemical, trenching, diamond drilling and other work (described in detail in Section 5.4), and intends to continue to explore and develop this property. Since the Company acquired its interest in the Dachang Gold Project, essentially all of the Company’s resources have been committed to advancing that project. Inter-Citic has spent approximately $16.8 million on the property to date ($6.8 million in 2007, $4.8 million in 2006, $2.4 million in 2005, $2.6 million in 2004 and $0.2 million in 2003) and has purchased approximately $2.4 million of drilling and other exploration equipment to conduct exploration work on the project. Work on the property began in earnest in September of 2004. The decrease in overall expenditure in 2005 compared to 2004 is related to the Company realizing cost-savings as a result of improved efficiency at Dachang after the first year of operation, while the increase from $2.4 million in 2005 to $4.8 million in 2006 to $6.8 million in 2007 reflects a significant expansion of the nature and extent of exploration, including a significant increase in diamond drilling (the Company drilled approximately 30,000 meters of drilling in 2007, compared to approximately 15,000 meters in 2006 and approximately 2,500 meters in 2005).

The Company has obtained funding for the Dachang Gold Project primarily from private placements and through the exercise of share-purchase warrants and stock options between 2003 and 2007. The Company raised approximately $32.2 million during this period ($9.5 million in 2007, $10.6 million on 2006, $3.0 million in 2005, $7.3 million in 2004 and $1.8 million in 2003), and announced the completion of private placement financing for proceeds of approximately $16 million subsequent to the end of the year, as described in the Company’s press release of February 5, 2008 (see below).

The Company has not performed any fieldwork at Zalantun, nor are there plans to do so in the immediate future.

Technical reports for both projects, prepared in accordance with N.I. 43-101, may be found at the Company’s website (www.inter-citic.com) or from SEDAR at www.sedar.com.

During 2003 the Company suspended operations at its 80%-owned rare earth processing facility and wrote-down related land, buildings and equipment to $1, as net realizable value of these assets could not be reasonably estimated or assured. The rare earth operation has remained inactive since that time. Towards the end of 2005 the Company liquidated most of its previously written-down rare earth processing equipment for net proceeds of approximately $429,000. The proceeds of this sale were used to repay outstanding bank advances from the Bank of China, also related to the rare earth operation. The Company continued to hold a long-term land lease and associated buildings in China through its 80%-owned subsidiary, Yangzhong Zhonghai Techmat Company, Ltd. until 2007, at which time the Company disposed of interest in the joint venture for gross proceeds of the equivalent of approximately $582,250 (Renminbi 4,000,000).

In the medium to long term, the Company intends to evaluate strategies for producing precious metals in China, with an immediate primary focus at Dachang. To date, the Company has not found any proven or probable mineral reserves or engaged in any production on any of its properties.

 

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Private Placement Financing Subsequent to Year-end

Subsequent to year end, on February 5, 2008, the Company announced the completion of a brokered private placement of 8 million common shares at a price of $2.00 per common share, for total gross proceeds of $16 million. In connection with this private placement, the Company paid cash commission of $960,000 and issued 480,000 share-purchase warrants to the Underwriters. Each share-purchase warrant entitles the holder to purchase one common share of the Company at a price of $2.00 per common share until February 5, 2009. Proceeds from this financing will be used by the Company to advance the Dachang Gold Project and for general working capital purposes.

ITEM 5: Narrative Description of the Business and Risk Factors

5.1 Summary

The Company’s business is to acquire, explore and develop mineral exploration properties. In the medium to long term, the Company intends to continue to explore the Dachang Gold Project with a view to proving gold reserves in order to evaluate strategies for becoming a gold producer in China.

Readers and investors are cautioned that the market price of the Company’s shares could decline and investors could lose all or part of their investment should any of the risk factor events described herein occur, as this could have a material impact on the Company’s business, financial condition and operations.

5.2 Nature of Operations and Basis of Presentation

The Company is engaged in mineral exploration and development. To date the Company has not found any proven or probable mineral reserves or engaged in any production on any of its properties, and there is no guarantee that this will occur in the future. The Company has no history of earnings, nor has it previously engaged in the mining and production of gold. Mineral resource exploration and development is extremely risky and speculative by nature, as there is no guarantee that mineral deposits will be found, and even if they are, that they can be mined economically. The mining industry is also subject to market pressures from unpredictable commodity and metal prices, which may have a significant impact on the economic viability of a known deposit. A significant commitment of time and money is required for high cost exploration activity, such as diamond-bore drilling, in order to establish mineral reserves, develop a feasibility study and then to implement construction of a mine and commence production. At any time during this process there are numerous factors that alone or in combination may impede or interfere with intended plans, and the impact of these variables cannot be predicted or determined with certainty. Such factors include, but are not limited to, market (including currency) fluctuations, location of the Company’s projects, political stability, government regulations, environmental protection, the nature of the deposit, competition, and availability of ongoing financial and personnel resources, both in sufficient quantity and within required timeframes. Many of these risk factors are discussed in other areas of this section, below, but all can be related directly to the nature of the business of the Company.

Note that mineral reserves and resources are estimated in accordance with N.I. 43-101, as required by Canadian Securities regulatory authorities. For United States reporting purposes, Industry Guide 7 under the Securities Exchange Act of 1934, as interpreted by the staff of the United States Securities and Exchange Commission (“SEC”), applies different standards to classify mineralization as a reserve.

Readers are advised that the terms “mineral resource,” “measured mineral resource,” “indicated mineral resource” and “inferred mineral resource” are not defined terms under standards in the United States and normally are not permitted to be used in reports and registration statements filed with the SEC. As such, information contained in this report concerning descriptions of mineralization and resources required under Canadian standards may not be comparable to similar information made public by US companies in SEC filings. Readers are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted into reserves.

 

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In addition, the Company’s exploration activities and specifically the nature and location of those activities have associated with them certain operating risks that cannot be predicted but may be significant. Although the Company maintains health and safety standards onsite (including emergency evacuation protocols) to mitigate the risk of injury to individuals working on its exploration projects, there is no guarantee that a serious injury will not occur, nor can the impact of such an event be measured. The Company maintains property, third party liability and personal injury insurance, including an emergency medical evacuation program for certain employees, and the Company performs ongoing review of its health and safety practices, however there may be risks for which insurance may not be sufficient or for which coverage may not be extended.

Although to date the Company has been successful in sourcing funds necessary to continue its business activities, the Company is in the development stage and is subject to the risks and challenges similar to other companies in a comparable stage of development. To date the Company has not found any proven reserves or engaged in any production on any of its properties, and there is no guarantee that this will occur in the future. Mineral resource exploration and development is extremely risky and speculative by nature, as there is no guarantee that mineral deposits will be found, and even if they are, that they can be mined economically. In the event that exploration on the properties, confirmation of the Company’s interest in the underlying mineral claims, the Company’s ability to obtain appropriate financing to put these properties into production, and profitability of future production, especially with respect to the Dachang Gold Project, is not successful, assets may not be realized or liabilities discharged at their carrying amounts, and these differences could be material.

5.3 Operations in China

The Company’s current business focus and as a result essentially all of the Company’s physical assets are in China, including the Company’s interests in Dachang and Zalantun.

As in any jurisdiction, the Company is subject to social, political and economic developments and trends that are beyond its control. The Company’s business is in China and the Company is therefore subject to a variety of laws and regulations at state, provincial and municipal or local levels that include laws and regulations concerning the form and manner in which foreign companies may invest and operate in China. Although China has recently and continually introduced reforms to encourage foreign investment and develop a more market-based economy, there is no guarantee that this trend will continue, and the government of China continues to exert significant influence through laws, regulations and policies.

The mining industry in China is regulated through the Mineral Resources Law of China (adopted in 1986 and amended 1997) and associated policies, rules and regulations at State and local levels. The Ministry of Land and Resources in China is responsible for administration of exploration and mining claims. Exploration claims (other than those for oil and gas) are issued for a maximum term of three years and are renewable provided minimum expenditure thresholds have been met. Holders of exploration rights have a legal priority to subsequent mining rights, which are issued based on the nature of the deposit. However there is no guarantee that exploration and mining rights will continue to be granted or renewed, or that any conditions imposed as part of the issuance of these rights can be satisfied, or that the perceived quality of these legal rights will be sufficient to enable the Company to attract the funding required to implement business plans based on these rights. Holders of mining rights must submit environmental impact studies for approval. Mining rights also have specific timeframes within which mining must occur. Specifically, for gold mining, foreign companies must also receive approval from, among others, the Chinese National Development and Reform Commission, a department of the Chinese central government, the State Council, a government body which has a mandate to develop national economic strategies, annual and long term economic plans, and to report on the national economy and social development.

A stated objective of the Company is to ultimately become a gold producer in China. The value of the Company’s projects is ultimately tied to the Company’s ability to realize on the sale of gold production. Since late 2002, with the establishment of the Shanghai Gold Exchange and relaxation of restrictive rules governing the sale of gold, mining companies in China are able to sell gold production at market prices. Foreign gold mining companies are currently able to repatriate profits in foreign currencies. However, the

 

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nature and impact to the interests of the Company of possible further changes or reforms to these rules and policies in the future cannot be predicted.

China became a member of the World Trade Organization in December of 2001 and has committed to ensure transparency in its legal system. While China’s general relaxation of restrictions on foreign trade and investment and developments in its mining industry since that time has improved the operating parameters for foreign exploration and mining companies, the continued progress of these reforms depends on political, economic and international influences beyond the Company’s control.

China’s control over its currency and hence the Company’s ability to advance funds to China (for capital investment or operations) is subject to changes in the valuation of the Renminbi as well as rules and regulations of the State Administration of Foreign Exchange. Fluctuations in the value of the Renminbi may have an adverse affect on the operations and operating costs of the Company.

China continues to exert a great deal of control and influence on its society and economy through laws, policies and regulations. The impact of changes to these laws, policies and regulations on the Company’s operations in China, including relative impact on the Company’s ability to operate in China through changes to foreign enterprise rules (including repatriation of profits), possible restrictions on the production and sale of gold or other mining products, the maintenance of business, exploration and/or mining licenses, environmental laws, taxation, or in other matters having an impact on the Company’s business and operations, cannot be accurately predicted.

5.4 The Dachang Gold Project

5.4.1 Property Description and Location

The Dachang Gold Project is located in the Province of Qinghai, situated in west-central China. The property is approximately 165 km southeast of the city of Golmud in the south-western part of the province, and is situated between longitudes 96º 00’ and 97º 30’ and latitudes 35º 00’ and 35º 30’.

Collectively, Dachang consists of five exploration licenses covering an area of approximately 279 km2 (the “Main Parcel”).

5.4.2 Accessibility, Climate, Local Resources, Infrastructure and Physiography

The property is readily accessible by four wheel drive vehicle along paved, gravel and dirt roads along several routes from Golmud. Previously the Company travelled south from Golmud along the Qinghai – Tibet highway to the Xu Gin reservoir gravel road, which is then followed easterly to the reservoir at which point a dirt road is followed south-easterly to the property (total distance of approximately 250 km). In 2007 the Company improved an existing road that runs south from the principal paved highway that connects Golmud and Xining. This new route in from the north along gravel and dirt roads was in use in 2007 and was found to significantly reduce travel time to the property.

Golmud is a modern city having a population of approximately 250,000 and is the regional road, rail and air center for western Qinghai. It is also the infrastructure center for the construction of a railway from Golmud to Lhasa (capital of the Tibet Autonomous Region of China).

The property is located on the Qinghai-Tibetan plateau at an elevation of approximately 4,500 m and exhibits an alpine climate and vegetation. The average annual temperature is approximately 0 degrees. Precipitation ranges from 180 mm to 440 mm, mostly as rain, and primarily from June to August. Winter lasts from October to April and is characterized by cold, wind and dust with very little snow.

The nearest power line terminates at the Xu Gin reservoir, approximately 100 km from the property.

 

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5.4.3 History

QGSI reports that for over 200 years this region has been a traditional area for local placer miners to recover gold. The first regional geological maps were completed in 1966. Over the next three decades various governmental agencies completed regional stream sediment and soil geochemical surveys, trenching and diamond drilling. According to QGSI a limited open pit test mining and heap leach operation was carried out during 1999, however, the results of this work are not known. All of the historic exploration activity in the region focused on the initial discovery area in the southern portion of the Main Parcel.

Prior to entering into the agreement with Inter-Citic, QGSI focused its exploration efforts on an approximately 25 km2 area, situated in the south-eastern portion of the Main Parcel, immediately adjacent to historic gold placer workings. This work commenced in 2000, and over the ensuing 3 years QGSI completed a 1:50,000 regional geochemical survey, a 1:10,000 soil-sampling program, 27,104 m3 of trenching, excavated a number of shallow exploration shafts (1.0 m x 1.2 m) for a total depth of 113.9 m, performed limited IP and electromagnetic test surveys, drilled 3,249 m of NQ core and sampled 28 sections across what is currently referred to as the Dachang East Resource (described below).

QGSI continued to focus on delineating the Dachang East Resource and other selected gold zones in the area during 2003. This work consisted of excavating 39 trenches (2,522 m), sinking 11 shallow exploration shafts (159 m) and drilling 25 diamond drill holes (2,911.6 m).

The Company and QGSI entered into an earn-in agreement for Dachang on November 14, 2003. Details of this agreement can be found above, in item 3.3.1.

In March 2004, Dr. George Cargill, P.Eng. (“Dr. Cargill”), an independent qualified person as that term is defined in N.I. 43-101, prepared a N.I. 43-101-compliant independent technical report on the Dachang Property. As part of his report Dr. Cargill reviewed the QGSI defined inferred mineral resource estimate and subsequently reported a N.I 43-101-compliant inferred mineral resource estimate of 5.7 million tonnes grading 7.0 gpt gold (“Au”) (approximately 1.3 million oz Au contained) as described in the Company’s press releases of December 3, 2003 and March 12, 2004 (the “Dachang East Resource”, subsequently referred to as the “Dachang Main Zone”, or the “DMZ”). A copy of Dr. Cargill’s technical report is available from the Company’s website (www.inter-citic.com) or from SEDAR at www.sedar.com.

5.4.4 Geological Setting

Regionally, Dachang is in the Sichuan-Yunnan-Qinghai-Xizang domain in the Songpan-Ganze continental margin mobile belt, a part of the South China Plate. This block is underlain by Mesozoic back-arc sediments on a Palaeozoic to Precambrian basement and has been intruded by various cretaceous intermediate to acid intrusions.

Dachang sediments strike northwesterly and locally dip steeply both to the north and south. Fold structures are usually small scale and are associated with the Indosinian (Triassic) deformation. Faults trend west northwesterly and northeasterly. The west-north-westerly faults are the earliest and best developed. Exposed faults are mapped as reverse (thrust) faults. The Kulun fault zone, located 30 kilometres north of Dachang, is the largest of the west-north-westerly faults and has been traced along strike for 1,000 km.

The Gaudo-Maduo fault is one of several regional thrust faults in the area. This fault strikes northwesterly and dips 20-50º NE. It is up to 200 m wide and is characterized by a zone of calcareous rocks, and siltstones that are typically highly brecciated. Silicification, carbonatization, sericitization and hematitization are common as is locally intense quartz and carbonate stockwork veining. Arsenopyrite, pyrite and stibnite are locally present as disseminations and variably narrow massive concentrations. Gold mineralization is associated with quartz, arsenopyrite and pyrite.

 

- 11 -

The many faults zones that cross the project area host a complex sequence of sulphide-gold replacement mineralization. See 5.4.5.1 – Geological Mapping, below, for additional information concerning local geology.

5.4.5 Exploration

All exploration at Dachang since the involvement of the Company was completed on the Main Parcel under the direction of the Company. Cyr Drilling International Ltd., of Canada, performed all diamond drilling, while the Company’s Chinese partner, QGSI, performed all other exploration work.

Maps of all areas discussed herein are available from the Company’s website at www.inter-citic.com.

From September to December of 2004 the Company executed its initial exploration program at Dachang, including:

 

 

1.

Soil geochemical survey over approximately 107 km2 (23,088 conventional B-horizon soil samples collected and tested for gold, arsenic and antimony);

 

 

2.

Total field magnetometer survey covering approximately 107 km2 (23,100 readings);

 

  3. Time domain electromagnetic (“TEM”) Survey along selected grid lines;

 

  4. Excavation and sampling of 7 trenches totalling 467 linear meters; and,

 

  5. 15 NQ core diamond drill holes totalling 3,623 metres.

Based on the results of this work the Company delineated several large regional gold geochemical anomalies on the Main Parcel. For convenience in identifying the location of anomalies and exploration results, the Main Parcel was divided into several areas and named as follows:

 

  1. “Dachang East”

 

  2. “Dachang North”

 

  3. “Central Dachang”

 

  4. “Western Quarter”

 

  5. “North River”

 

  6. “Southwest Dachang”

The Company followed up exploration from 2004 the following year, between August and November of 2005, including:

 

 

1.

1:25,000 scale geological mapping over 200 km2;

 

 

2.

Soil geochemical survey over new areas of approximately 54 km2 (11,220 conventional B-horizon soil samples collected and tested for gold, arsenic and antimony);

 

  3. Excavation and sampling of 101 trenches totalling 23,710 linear meters; and

 

  4. 22 NQ core diamond drill holes totalling 2,487 metres.

During 2006 (from May to November) the Company completed the following additional exploration work at Dachang:

 

- 12 -

 

1.

Soil geochemical survey over new areas of approximately 53 km2 (12,545 conventional B-horizon soil samples collected and tested for gold, arsenic and antimony);

 

  2. Excavation and sampling of 175 trenches totalling 14,332 linear meters; and

 

  3. 101 NQ core diamond drill holes totalling 15,304 metres.

During 2007, from May to December, the company completed the most extensive program under taken thus far on the property, including:

 

  1. 27,926 meters of HQ core from 197 holes, from which 19,259 samples were extracted from an estimated 2,391.8 metres of intercepted mineralization.

 

  2. A limited soil geochemical survey was completed between the Dachang Main Zone (DMZ), located in the East Dachang area of the property and hosting the primary NI 43-101 resource, and its eastern extension (the “DMZ-X”). Samples collected were tested for gold, arsenic and antimony

 

  3. An extensive trenching program utilizing 3 backhoes aimed at testing new geochemical anomalies discovered from the previous year’s work. Within this program a total of 17,022 meters of soil geochemical anomalies were trenched, for a total of 146 trenches and from this 6,271 samples were extracted for analysis.

5.4.5.1 Geological Mapping

During the 2005 exploration program, QGSI completed a 1:25,000 scale geological survey covering an area of approximately 200 km2 over the North River, Western Quarter, Central Dachang, Dachang North, and Dachang East districts of the Main Parcel.

During the geological survey rock outcroppings were located by GPS and geological observations were noted at each outcrop. The geological observations included, but were not restricted to, dimensions of the outcrop, rock type, strike, dip, alteration if any, and nature and type of any mineralization present. Structural information such as the presence of faults (type), shears and jointing patterns were also noted. Selected representative rock samples were taken for geochemical analysis and thin section studies. The data was compiled, interpreted and presented on a single map at a scale of 1:25,000 covering the areas of the Main Parcel as noted above.

Results of geological mapping confirmed and further defined the regional 1:200,000 scale geological setting mapped by the Qinghai Geological and Mineral Bureau Region #1 Investigating Team in 1976.

Dachang is underlain by a sequence of Permian and Triassic sediments consisting of slate, calcareous shale, siltstone, and sandstone. This sequence strikes northwesterly and dips steeply to the north or south. Alluvial material in the recent riverbeds is the host for the placer gold mined on the Main Parcel.

Numerous faults have been mapped on the Main Parcel. The northwesterly trending faults are the earliest and the best developed and consist of reverse (thrust) faults and normal (shear zone) faults. The dominant thrust fault, locally termed the “CBx Thrust Fault”, is a portion of the regional Guado-Maude fault (see 5.4.4 – Geological Setting, above). This thrust trends northwesterly across the central portion of the Main Parcel and appears to be spatially related to the regional gold geochemistry. Where observed in outcrop and intersected in drilling, the CBx Thrust Fault is up to 250 m wide, exhibits a shallow dip (20 to 45 degrees N) and is characterized by calcareous rocks, tectonic breccias and post tectonic quartz-carbonate veins. Silicification, carbonatization, sericitization and hematitization are common and locally intense. Based on limited drill testing of this thrust in 2004 the CBx Thrust Fault is highly altered and contains significant secondary concentrations of arsenopyrite, pyrite and stibnite. These sulphides are locally present as disseminations and narrow massive sulphide vein sets and are most abundant in the highly altered sections of the thrust fault.

 

- 13 -

A separate set of near vertical shear zones and faults have also been mapped and appear to be the main conduits for the gold mineralization. These vertical shear zones are 3 to 15 m in width and can typically be traced along strike for several kilometres. This major fault system is defined by a 2-3 km wide package of calcareous shales and siltstones hosting up to 12 near parallel shear zones that also appear to closely follow the gold soil geochemistry. These faults are oxidized near surface and shallow trenches typically uncover gossanous bedrock within these shear structures. These faults exhibit secondary sulphide replacement (pyrite, arsenopyrite, and stibnite) silicification and quartz carbonate veining. Gold mineralization appears to be related to specific zones of sulphide replacement within these faults. Further work will be required to determine the specific controls on gold deposition.

5.4.5.2 Total Field Magnetometer Survey

During the 2004 exploration program, a magnetometer survey was completed over North River, Western Quarter, Central Dachang,

Dachang North and Southwest Dachang. The survey was carried out using a GSM-19T proton magnetometer supported by a continuous recording magnetic base station. The total magnetic field data was recorded at 20 m intervals along all lines of the establish grids, covering a total of approximately 107 km2. The results of the magnetic survey illustrated very little difference in the magnetic susceptibility across the various lithologies of the Dachang sedimentary sequence due to the complexity of the lithography and similarity of magnetic characteristics.

5.4.5.3 TEM Survey

TEM test profiles were completed across the Dachang East mineralization, and as expected, this system identified electromagnetic anomalies over this gold bearing sulphide zone. Following the completion of this baseline work, Western Quarter was selected for TEM testing and the six profiles completed over this target detected multiple strong TEM anomalies.

5.4.5.4 Soil Geochemical Survey

Soil geochemistry has been a valuable exploration tool at Dachang because of the near-surface nature of the mineralization. In 2004, 2005 and 2006 the Company’s completed a conventional “B” horizon soil-sampling program over previously identified stream sediment anomalies on the Main Parcel. While results are still pending for the 2006 survey (53 km2 in the southernmost portion of Dachang East), the 2004 and 2005 surveys discovered 24 new gold-in-soil anomalies (21 anomalies in 2004 and 3 anomalies in 2005, in addition to the previously discovered anomaly on Dachang East, for a total of 25 anomalies) located in the Dachang East, Dachang North, Central Dachang, Western Quarter, North River and Southwest Dachang districts. These anomalies appear to be broadly strata-bound and can be seen to define three discrete geological “corridors” (“Northern”, “Central” and “Southern”) comprised of a series of lenticular anomalies between 2 to 2.5 kilometres across and generally follow the 110º strike of the host sediments.

The explored portion of the Northern corridor is approximately 7 km long, includes all the North River anomalies and is open along strike in both directions; the Central corridor includes the Western Quarter, Central Dachang and Dachang North anomalies, is approximately 7 km long and appears to continue off the Main Parcel in both directions; and the Southern corridor is approximately 5 km in length, includes the Dachang East anomalies and proceeds southeast off the Main Parcel.

All gold soil anomalies are distinctly linear, follow the stratigraphy of the host sediments and show a highly variable enrichment in arsenic (“As”) and or antimony (“Sb”). Separate non-gold bearing As and Sb soil anomalies have also been detected.

For Central Dachang, Western Quarter, North River and Southwest Dachang, gold values in soils grade from 1 to in excess of 300 ppb – the upper detection limit for this survey’s analysis method.

 

- 14 -

Background levels for the soils in these districts are less than 5 ppb. Threshold values were between 5 and 20 ppb with anomalous values typically grading greater than 50 to 100 with some values at the upper limit of the testing method’s range.

Soil samples collected from Dachang North were analyzed using a higher maximum gold detection limit because of extremely high isolated gold-in-soil results. This resulted in gold-in-soil values on this grid being detected at levels of up to 4,001 ppb. Background gold levels for the soils in this district range from 1 to 5 ppb. The survey returned a mean gold value of 17 ppb Au with a threshold of 31 ppb Au defined as highly anomalous, representing results at the 95th percentile.

Results are as follows.

Dachang North - four anomalies, as follows:

 

  •  

“DN-1”: 3,000 m long by 40-180 m wide (associated with 13,582 ppm As)

 

  •  

“DN-2”: 2,000 m long by 40-120 m wide (open along strike to the southeast)

 

  •  

“DN-3”: 1,200 m long by 60-300 m wide (open along strike to the northwest)

 

  •  

“DN-4”: 2,000 m long by 60-160 m wide (open along strike to the southeast)

The DN-4 Extension (discovered in 2005) is a continuation of DN-4 (discovered in 2004), extending DN-4 a further 600 m along strike to the southeast and is characterized by gold values of up to 125 ppb Au, with isolated single station values of greater than 300 ppb Au. As a result of the 2005 survey, DN-4 now has a total strike length of approximately 2 km and is open along strike off the property to the southeast.

Central Dachang - eight anomalies, as follows:

 

  •  

“CD-1”: 1,000 m long by 20-120 m wide

 

  •  

“CD-2”: 1,200 m long by 20-140 m wide

 

  •  

“CD-3”: 1,000 m long by 60-200 m wide

 

  •  

“CD-4”: 4,600 m long by 20-180 m wide (open along strike to the southeast)

 

  •  

“CD-5”: 4,000 m long by 20-260 m wide (open along strike to the northwest)

 

  •  

“CD-6”: 1,600 m long by 20-140 m wide

 

  •  

“CD-7”: 1,600 m long by 20-400 m wide

 

  •  

“CD-8”: 400 m long by 20-200 m wide (potentially up to 1,600 m long)

Central Dachang anomalies illustrate continuity of soil anomalies between Western Quarter and Dachang North. These anomalies generally follow the 110-degree strike of the host sediments and form a series of densely packed, ribbon-shaped features. CD-8, discovered in 2005 and located southwest of CD-7, returned gold values of greater than 300 ppb Au, occurs in an area of intense faulting and may represent dislocated sections of one anomaly up to 1.6 km long. This anomaly is open along strike off the property to the northwest. It is possible that this anomaly is the western extension of the Dachang East Resource.

Western Quarter - six anomalies, as follows:

 

  •  

“WQ-1”: 1,000 m long by 60-450 m wide (>100 ppb Au over 300 m width)

 

  •  

“WQ-2”: 2,600 m long by 40-200 m wide (eastern extension of WQ-1 trend)

 

  •  

“WQ-3”: 1,100 m long by 60-200 m wide (eastern extension of WQ-1 trend)

 

  •  

“WQ-4”: 2,400 m long by 60-200 m wide

 

  •  

“WQ-5”: 2,600 m long by 20-100 m wide

 

  •  

“WQ-6”: 2,200 m long by 20-100 m wide

The six anomalies discovered in Western Quarter are below the CBx Thrust Fault and form a series of parallel gold-bearing zones detected across a stratigraphic width of 1,800 to 2,000 m immediately below the fault. A second distinct gold-bearing geological domain was delineated above the CBx Thrust Fault where soil geochemistry detected high concentrations of arsenic in soils above altered sedimentary rocks within the fault structure. Gold enrichment was detected on the eastern extension of this unit.

 

- 15 -

North River - five anomalies, as follows:

 

  •  

“NR-1”: 2,300 m long by 120-220 m wide (open along strike to the northwest)

 

  •  

“NR-2”: 1,000 m long by 20-180 m wide

 

  •  

“NR-3”: 1,300 m long by 20-120 m wide

 

  •  

“NR-4”: 1,000 m long by 20-40 m wide

 

  •  

“NR-5”: 2,000 m long by 20-60 m wide (open along strike to the northwest)

NR-4, discovered in 2005, is located approximately 1 km southeast along strike of NR-3. The anomaly consists of three parallel ribbon like zones exhibiting gold values up to 186 ppb Au with one sample returning a value of greater than 300 ppb Au. NR-5, also discovered in 2005, is located in the northwestern portion of North River and is parallel to and approximately 1 km southwest of NR-1. NR-5 is open along strike off the property to the northwest and may be open to the southeast; however, thick alluvial sediments mask any geochemical response. It is possible that this anomaly represents the northwestern extension of NR-2 on which Inter-Citic’s inferred mineral resource of 1.28 million tonnes grading 5.81 gpt Au (238,000 oz of Au contained), as detailed in the Company’s press release of December 12, 2005 (the “North River Inferred Mineral Resource”), is located.

Southwest Dachang - one anomaly, as follows:

 

  •  

“SW-1”: 800 m long by approximately 40 m wide

5.4.5.5 Trenching

Trenching has proven to be a valuable exploration tool at Dachang due to shallow soil development, typically less than a metre, and at or near surface gold mineralization. Trenching exposed the bedrock source of the gold soil anomaly over the Dachang East Resource and has been equally successful in exposing bedrock gold zones associated with gold soil anomalies in other districts on the Main Parcel.

2004 Trenching Program

During the 2004 exploration program, the Company completed reconnaissance trenching at North River and Dachang North. This work was completed to investigate the large regional gold geochemical anomalies identified at North River and Dachang North. Trenches were typically sampled at intervals of one metre and delivered to the Rock & Minerals Test Application Research Laboratory of Qinghai in the city of Xining, an independent lab, for gold analysis. A sample interval of one metre was selected, as it was the optimum interval used by QGSI in their work to define the Dachang East Resource and given the physical dimensions of known gold zones.

At North River four trenches, totalling 370.9 m were excavated at various locations on the regional anomaly. All of the trenches exposed portions of the Dachang sedimentary sequence. Two of the trenches, NR-TC-2 and NR-TC-4, are located on the southern flank of the NR-2 Anomaly and returned 11.8 gpt Au over 3 m and 4.62 gpt Au over 6m respectively. Subsequent sampling of NR-TC-2 returned 1.03 gpt Au over 26 m. Trenches NR-TC-1 and NR-TC-2 are located on other parts of the regional anomaly and returned no significant gold values.

At Dachang North four trenches, totalling 95.8 m were excavated on the regional Dachang North gold anomaly. All of the trenches exposed altered carbonate rocks. Trench ND-TC-1 returned 1.3 gpt Au over 9.3 m, trench ND-TC-2 returned 1.21 gpt Au over 8 m and ND-TC-3 returned 0.53 gpt Au over 5 m.

2005 Trenching Program

During the 2005 exploration program, the Company made extensive use of trenching to evaluate the gold-in-soil anomalies identified during the 2004 soil geochemical survey. A total of 101 trenches (23,710 m) were typically established at 100 m and 200 m intervals on the North River anomalies, and at 200 and 400 m intervals on the Western Quarter, Central Dachang anomalies. Limited trenching was carried out at

 

- 16 -

Dachang North and no testing was done at Southwest Dachang. As in 2004, samples were typically taken at one-metre intervals along prospective section of the various trenches. Geochemically anomalous gold values of >250ppb Au were encountered over numerous intervals in almost all of the trenches.

Compilation of Results

The following is a summary of gold assays reported for significant gold zones exposed by trenching during the 2005 exploration program:

Trench Assay Summary - 2005 Exploration Program

(assay cut-off: 0.5 gpt Au and 5 gram - metre)

 

Trench Number

    From
(m)		    To
(m)		    Interval
(m)		    Grade
(gpt Au)

A. North River

            

(48 trenches as follows: 28 on NR-1, 13 on NR-2 and 7 on NR-3)

            
1.   NR-1            
 

A1TC35501

    73.4    81.4    8.0    4.47
     183.0    191.0    8.0    4.07
 

A1TC3601

    113.0    126.8    13.8    2.38
     226.5    228.5    2.0    5.52
 

A1TC36501

    64.0    67.0    3.0    2.74
     150.0    152.5    2.5    3.04
 

A1TC37501

    195.0    198.0    3.0    1.90
 

A1TC3801

    7.0    19.4    12.4    2.00
 

A1TC38501

    8.0    20.0    12.0    4.49
 

A1TC3901

    27.3    32.0    4.7    1.14
 

A1TC39501

    39.5    45.5    6.0    2.84
 

A1TC39502

    29.0    40.4    11.4    1.57
 

A1TC4001

    23.0    27.0    4.0    2.70
 

A1TC40501

    28.5    33.0    4.5    3.35
 

A1TC40502

    21.5    22.6    1.1    4.62
     88.0    89.8    1.8    4.26
 

A1TC4101

    78.2    80.7    2.5    3.74
 

A1TC41502

    15.0    19.0    4.0    3.65
     53.5    56.5    3.0    3.96
     86.0    93.0    7.0    4.43
     108.0    110.5    2.5    2.23
 

A1TC4202

    97.0    99.0    2.0    3.94
 

A1TC4203

    35.0    39.0    4.0    1.63
 

A1TC42501

    32.0    40.0    8.0    0.82
     61.5    67.0    5.5    1.92
 

A1TC43501

    190.0    196.0    6.0    1.14
2.   NR-2            
 

A1TC5101

    25.0    29.0    4.0    20.65
     195.0    198.0    3.0    2.03
 

A1TC51501

    89.2    92.0    2.8    5.01
 

A1TC5201

    118.0    136.0    18.0    2.09

 

- 17 -

     217.0    220.0    3.0    14.54
 

A1TC5301

    261.0    266.0    5.0    1.42
 

A1TC53501

    13.0    18.0    5.0    1.65
 

A1TC5401

    97.0    101.0    4.0    7.25
 

A1TC5501

    56.0    58.0    2.0    2.67
     174.4    178.4    4.0    5.14
3.   NR-3            
 

A1TC6601

    13.0    16.0    3.0    3.61
 

A1TC6701

    13.0    14.0    1.0    6.29
     50.0    53.0    3.0    3.57
B. Western Quarter            

(11 trenches on WQ-2 to 6)

            
1.   WQ-2            
 

A2TC3802

    328.0    330.0    2.0    3.37
2.   WQ-5            
 

A2TC4301

    252.5    257.5    5.0    3.15
3.   WQ-6            
 

A2TC3801

    81.5    88.0    6.5    2.40
4.   Both WQ-2 and WQ-6            
 

A2TC4001

    292.5    294.5    2.0    3.64
     712.0    713.0    1.0    9.98
C. Central Dachang            
(38 trenches as follows: 3 on CD-1, 2 on CD-2, 1 on CD-3, 9 on CD-4, 11 on CD-5, 1 on CD-6, 5 on CD-7 and 6 in other areas of interest)
1.   CD-1            
 

A2TC6302

    232.0    236.0    4.0    2.00
2.   CD-4            
 

A2TC5401

    26.0    32.0    6.0    1.41
 

A2TC6002

    135.0    138.0    3.0    2.23
 

A2TC6401

    31.0    35.0    4.0    3.94
 

A2TC6901

    89.0    91.0    2.0    2.51
     137.0    139.0    2.0    2.80
2.   CD-5            
 

A2TC5402

    55.0    64.0    9.0    6.09
 

A2TC5601

    40.5    55.5    15.0    0.73
     62.5    73.5    11.0    1.30
 

A2TC6501

    118.0    122.0    4.0    1.43
     126.0    131.5    5.5    7.26
 

A2TC6601

    52.0    68.5    16.5    4.89
 

A2TC6701

    283.6    284.6    1.0    12.10
 

A2TC6702

    12.5    21.5    9.0    1.88
 

A2TC7001

    174.0    186.5    12.5    2.25

 

- 18 -

In addition to the above, 4 trenches were excavated at selected locations on DN-1 and DN-3 with no significant results.

2006 Trenching Program

Five new areas of gold mineralization were discovered through trenching during the 2006 exploration season at Dachang. Three of the new areas of discovery (Placer Valley Anomaly, DMZ-X and Little Ruby) are near the Dachang Main Zone resource area in Dachang East. All three of these zones are open along strike and together have an aggregate surface zone length of approximately 1.3 kilometres. Most of the newly discovered zones near the Dachang Main Zone have been trenched on 40m intervals along strike.

The Company has not drill tested these zones.

A map showing these new areas is available on the Company’s website at: www.inter-citic.com.

Placer Valley Anomaly (Dachang East)

The new Placer Valley Anomaly is approximately 600 m to the south of the eastern end of the current Dachang Main Zone. Trenching of Placer Valley Anomaly has revealed a mineralized zone approximately 720 m in length and is open in both directions.

Reported trench assay values at Placer Valley Anomaly include T-2101 with 8.0 m of 10.28 Au gpt, T-3503 with 6.0 m of 10.57 Au gpt, T-3703 with 7.5 m of 10.59 Au gpt, T-3704 with 8.0 m of 10.24 Au gpt, and T-4301 with 17.0 m of 4.28 Au gpt

Dachang Main Zone Extension, or DMZ-X (Dachang East)

The DMZ-X continues along strike off the eastern end of the currently defined Dachang Main Zone. Trenching has delineated a 360 m length of surface mineralization, and the zone is open to the East. Reported trench assay values at DMZ-X include T-2502 with 3.0 m of 7.29 Au gpt, T-2702 with 17.0 m of 2.40 Au gpt, and T-2904 with multiple zones including 2.0 m of 13.34 Au gpt and 5.5 m of 7.35 Au gpt.

Little Ruby Anomaly (Dachang East)

Little Ruby is approximately 2000 m to the north of DMZ-X. Trenching of Little Ruby has revealed a mineralized zone approximately 200 m in length and is open to the east. Reported trench assay values at Little Ruby include T-2903 with 22.0 m of 5.11 Au gpt, T-3101 with 4.3 m of 6.80 Au gpt, and T-3302 with 16.6 m of 3.18 Au gpt.

CD-9 (Central Dachang) and DN-5 (Dachang North) Anomalies

Reported trench assay values at CD-9 Anomaly include trench 537501A2 with 4.0 m of 6.02 Au gpt, trench 652501A2 with 12.5 m of 7.91 Au gpt, and trench 657501A2 with 8.0 m of 6.54 Au gpt. DN-5 was defined by five trenches with continuously mineralized lengths of up to 9.5m and grades between 0.56 and 3.82 Au gpt.

Compilation of Results

The following is a summary of gold assays reported for significant gold zones exposed by trenching during the 2006 exploration program:

 

- 19 -

Trench Assay Summary - 2006 Exploration Program

(assay cut-off: 0.5 gpt Au, intervals were determined by geological interpretation of consistent

mineralized zones. Broader intervals may include waste intervals of up to 2m.)

 

Trench Number

    From
(m)		    To
(m)		    Interval
(m)		    Grade
(gpt Au)
A. Dachang East            
1.   Placer Valley            
 

T-11902

    20.70    22.40    1.70    1.97
 

4.1m

    73.40    75.80    2.40    1.88
 

T-1301

    31.50    34.50    3.00    3.06
 

10m

    40.50    46.00    5.50    2.57
     64.50    69.00    4.50    2.47
 

T-1501

    39.50    40.50    1.00    0.61
 

T-1701

    21.00    23.50    2.50    1.43
 

T195001

    26.00    28.50    2.50    2.90
 

5.5m

    72.50    74.50    2.00    1.84
     88.00    89.00    1.00    2.37
 

T-2101

    17.00    22.00    5.00    4.24
 

13m

    33.00    41.00    8.00    10.28
 

T-215001

    5.50    7.50    2.00    4.04
 

14m

    35.00    38.00    3.00    4.98
     62.00    68.00    6.00    1.36
     79.00    82.00    3.00    3.45
 

T-2311

    16.00    26.00    10.00    1.85
 

T-2312

    15.00    16.50    1.50    1.78
 

10.5m

    27.50    28.50    1.00    0.74
     59.00    60.00    1.00    2.57
     64.00    69.00    5.00    1.41
     84.00    86.00    2.00    2.27
 

T-235001

    14.50    17.50    3.00    1.83
 

5m

    21.00    23.00    2.00    1.65
 

T-235002

    15.00    16.50    1.50    2.22
 

13.0m

    31.50    35.50    4.00    2.18
     44.00    46.00    2.00    1.06
     54.00    56.50    2.50    1.45
     70.00    73.00    3.00    7.07
 

T-235003

    76.00    81.00    5.00    2.33
 

T-2503

    12.00    17.00    5.00    1.29
 

T-255001

    41.00    47.00    6.00    2.06
 

9m

    77.00    80.00    3.00    1.55
 

T-275001

    37.00    40.00    3.00    1.84
 

6m

    59.00    62.00    3.00    4.59
 

T-2905

    8.00    10.00    2.00    2.08
 

9m

    16.00    21.00    5.00    1.41

 

- 20 -

     24.00    26.00    2.00    8.82
 

T-3103

    105.00    109.00    4.00    3.14
 

T-3304

    60.00    64.00    4.00    5.34
 

7m

    77.50    80.50    3.00    1.32
 

T-3306

    22.00    23.00    1.00    1.36
 

15m

    28.00    32.00    4.00    1.59
     37.50    40.50    3.00    2.26
     47.00    52.00    5.00    2.15
     55.00    57.00    2.00    1.65
 

T-3503

    6.00    7.00    1.00    1.11
 

8m

    18.00    24.00    6.00    10.57
     40.50    41.50    1.00    2.32
 

T-3703

    7.00    8.50    1.50    1.48
 

12.5m

    27.00    34.50    7.50    10.59
     39.50    43.00    3.50    3.01
 

T-3704

    35.00    42.00    7.00    2.29
 

27m

    46.00    47.00    1.00    0.73
     52.00    54.00    2.00    1.18
     60.00    67.00    7.00    1.99
     78.00    80.00    2.00    4.33
     91.00    99.00    8.00    10.24
     104.00    108.00    4.00    6.20
 

T-4106

    8.50    9.50    1.00    1.08
 

17.8m

    20.50    22.00    1.50    0.99
     33.00    39.00    6.00    2.04
     47.70    57.00    9.30    3.47
 

T-415001

    14.00    24.00    11.00    1.77
 

T-4301

    10.50    17.00    6.50    0.64
 

45.5m

    22.50    28.00    5.50    1.28
     31.00    39.00    8.00    1.58
     43.50    45.00    1.50    1.58
     63.00    80.00    17.00    4.28
     83.50    90.50    7.00    1.89
 

T435002

    11.00    14.00    3.00    7.59
 

7.7m

    40.50    43.00    2.50    1.78
     61.80    64.00    2.20    1.63
 

T-4505

    5.00    8.00    3.00    3.05
 

8m

    28.00    30.00    2.00    6.64
     35.00    37.00    2.00    7.53
     83.00    84.00    1.00    1.30
 

T-4705

    13.00    17.00    4.00    2.57
 

13m

    20.50    22.00    1.50    0.59
     46.50    47.50    1.00    4.54
     52.00    53.50    1.50    0.70

 

- 21 -

     92.00    97.00    5.00    1.11
 

T-5521

    26.00    27.00    1.00    2.30
 

2m

    81.50    82.50    1.00    2.53
2.   DMZ East Offset (DMZ-X)            
 

T-2310

    35.00    38.50    3.50    1.10
 

10.5m

    44.00    48.00    4.00    5.20
     64.50    67.50    3.00    2.85
     130.00    134.50    4.50    2.64
 

T-2502

    5.00    6.50    1.50    3.53
 

18.5m

    9.50    12.00    2.50    4.50
     78.50    81.50    3.00    7.29
     95.50    98.00    2.50    4.63
     104.00    113.00    9.00    4.60
 

T-2702

    22.00    39.00    17.00    2.40
 

31m

    65.00    67.00    2.00    4.12
     78.50    81.50    3.00    2.37
     95.00    97.50    2.50    1.01
     124.00    130.50    6.50    1.78
 

T-2904

    6.00    7.50    1.50    0.54
 

9m

    10.50    12.50    2.00    13.34
     99.00    104.50    5.50    7.35
3.   Little Ruby            
 

T-2701

    23.90    27.90    4.00    2.05
 

T-2903

    14.30    15.80    1.50    7.50
 

23.5m

    26.00    48.00    22.00    5.11
 

T-3101

    18.30    22.60    4.30    6.80
 

6.3m

    25.60    27.60    2.00    2.69
 

T-3302

    6.80    23.40    16.60    4.15
 

T-3502

    7.00    10.00    3.00    2.16
 

T-3907

    10.60    12.20    1.60    1.69
B. Central Dachang            
1.   DC-8 Anomaly            
 

535001A2

    14.00    19.50    5.50    3.39
 

6.5m

    33.00    34.00    1.00    0.64
 

537501A2

    11.00    15.00    4.00    1.38
 

8m

    17.80    21.80    4.00    6.02
 

650201A2

    14.40    16.40    2.00    2.16
 

8m

    20.90    27.10    6.20    1.49
 

652501A2

    19.50    27.00    7.50    1.01
 

20m

    46.00    58.50    12.50    7.91
 

657501A2

    31.60    39.60    8.00    6.54

 

- 22 -

 

662501A2

    21.30    22.80    1.50    5.37
 

665001A2

    22.00    25.00    3.00    1.92
 

667501A2

    10.00    11.50    1.50    1.15
 

2.56m

    20.50    23.50    3.00    1.41
C. Dachang North            
1.   DN-5            
 

8601A3

    99.50    109.00    9.50    0.96
 

8801A3

    92.40    95.40    3.00    1.66
     112.00    115.00    3.00    0.56
     164.00    167.00    3.00    0.58
 

802501A3

    12.50    13.50    1.00    1.76
 

845001A3

    61.00    67.00    6.00    1.35
     70.00    71.40    1.40    1.18
 

855001A3

    55.30    56.40    1.10    3.82

In addition to the above, trench T-12301 at Dachang East returned assay values of 8.11 gpt gold over 9.0 metres.

The Company believes that trenching continues to be one of the most successful and cost-effective methods of gold exploration at Dachang due to the thin soil cover and near-surface mineralization observed throughout the property. A consistent spatial relationship has been observed between the gold in soil anomalies, trench values and underlying strongly altered and mineralized fault zones.

In every case trenching was able to expose the source of the soil geochemical anomaly. Very little if any gold displacement occurs between the soil anomaly and the bedrock gold zone, indicating very little gold migration from the source. Further trenching is planned for many of the additional targets in 2007.

The Company also sampled a number of trenches previously excavated on the property by Inter-Citic’s partner, QGSI. All of the trenches sampled returned good gold values. None of these trenches have been subjected to drill testing below the exposed areas, nor have the trenches been excavated across the full width of the Dachang Fault Zone. All trenches sampled were excavated by backhoe and most reached broken bedrock at depths of 1.5 to 2.0 metres. Samples were collected using 1.0 to 1.5 metre chip samples each weighing approximately 3 to 5 kg.

 

Trench Number

   

Section Number

   

Sample Number

   

Width

(Metres)

   

Assay Grade

(gpt)

TC- 9503

    860 North    C1 to C2*    2.2    3.29

TC- 9502

    860 North    C3 to C5*    3.0    2.67

TC 6301 E

    220 North    C1 to C3    3.1    7.56

TC 6301 W

    220 North    C1 to C2    2.3    6.9

TC- 10501

    1060 North    C1 to C4    9.2    3.06
     

C5 to C6

    2.2    2.27

TC- 10101

    960 North    C1 to C4    4.0    12.35

TC- 11102

    1180 North    C1 to C4    4.0    11.58

TC -11302

    1210 North    C1 to C11    16.7    6.07
      C1 to C9    9.0    8.90
      C10 to C11    2.0    10.35

 

* Trenches TC- 9503 and TC- 9502 are on the same line, approximately 5 metres apart.

 

- 23 -

Exploration Shaft Samples:

Samples were taken from eight 10 to 20 m deep test shafts previously excavated by the Company’s partner QGSI along a 1,340 m section of the DFZ. Samples ranged in size between approximately 3 and 5 kg. In total 12 samples were sent to the lab for fire assay with the best result returning 24.4 gpt gold. Results are as follows:

 

Sample Number

  

Gold Assay Gpt

  

Easting

  

Northing

  

Section Number

G-1   24.40   4250790   3910501   140 South
G-2   1.38   4249557   3911188   1200 North
G-4   3.76   4249940   3911061   850 North
G-5   3.98   4250090   3911017   700 North
G-6   0.18   4250090   3911017   700 North
G-7   5.56   4250247   3910968   540 North
G-8   0.14   4250247   3910968   540 North
G-9   11.00   4250392   3910837   350 North
G-10   0.17   4250392   3910837   350 North
G-11   2.80   4250603   3910607   60 North
G-12   18.70   4250620   3910601   60 North
G-13   6.13   4250691   3910571   25 North

2007 Trenching Program

During the 2007 exploration season extensive trenching was conducted in and around zones highlighted by the contouring of results from the soil geochemical results of the previous seasons work. Included in these areas were the Placer Valley Zone (“PVZ”) which had yielded promising results in 2006, a new anomaly approximately 6 km east of the Main Zone, referred to as the South East anomaly (“SEA”), and other areas to the east of the Main zone and peripheral to previously outlined anomalous areas. Trenches were established generally at 100 m intervals with smaller intervals of 25-50m used where better definition of a zone was needed, especially in the PVZ and the SEA.

Mechanical excavators were used to establish the 146 trenches, totalling 17 km and excavate 38,298 m3 of overburden. As with previous years’ work sampling was carried out for the most part at 1 meter intervals along prospective sections of the various trenches. Geochemically anomalous gold values of >50ppb were encountered regularly over significant intervals in almost all of the trenches.

In Placer Valley, 67 trenches totalling 7,322 linear meters were excavated along the PVZ zone already defined by previous trenching in this area, trenches were also established around the periphery of the PVZ based on gold soil anomalies. Some holes were drilled to test the trench results. Gold mineralization was intersected, but core recovery was a problem.

In South East Anomaly 35 trenches were established totalling 5,982 linear meters. The targets of these trenches were long linear anomalies indicated by the soil geochemical data collected in this area. A number of mineralized fault zones were discovered in the trenches. No drilling has been done to date.

At Central Dachang, 13 trenches were established totalling 1,087 linear meters. This is part of the area of the infill drilling of the Dachang Main Zone (DMZ).

At Eastern Dachang, 31 trenches were established totalling 2631 meters. A well defined near surface mineralized zone was indicated by the high gold values from the trenches. This mineralization has been named the Dachang Main Zone Extension (DMZ-X).

 

- 24 -

A summary of the 2007 trench results follows:

 

Trench

  

Area

  

From

  

To

  

Length

  

Au g/t

T-1001   DMZ-E   14.00   16.00   2.00   1.82
T-1001     33.00   34.00   1.00   1.71
T-1001     39.00   53.00   14.00   2.77
T-1001     120.00   121.00   1.00   1.32
T-1002   DMZ-E   2.00   3.00   1.00   2.94
T-1002     25.50   28.50   3.00   1.30
T-1002     38.50   39.50   1.00   0.74
T-1002     47.50   51.50   4.00   0.59
T-1002     70.50   73.50   3.00   1.68
T-1002     141.50   143.00   1.50   1.44
T-1002     147.50   150.00   2.50   10.71
T-1102   DMZ-E   18.50   19.50   1.00   2.13
T-1102     39.50   42.00   2.50   0.61
T-1102     53.00   54.00   1.00   0.74
T-1102     88.00   89.00   1.00   1.05
T-1102     91.50   93.50   2.00   0.93
T-1102     96.50   102.50   6.00   2.52
T-1201   DMZ-E   12.00   14.00   2.00   4.65
T-1201     37.00   39.00   2.00   2.29
T-1401   DMZ-E   14.00   45.00   31.00   8.34
T-1401     58.00   59.00   1.00   1.47
T-1401     64.00   65.00   1.00   0.71
T-1401     70.00   71.00   1.00   1.26
T-1401     83.00   87.00   4.00   4.18
T-1502   PVZ   3.00   7.50   4.50   0.84
T-1502     35.50   38.00   2.50   1.62
T-1502     54.50   67.00   12.50   4.59
T-1502     80.00   86.00   6.00   0.97
T-1502     123.50   125.50   2.00   3.64
T-1502     134.50   137.00   2.50   1.78
T-16501   DMZ-E   11.50   27.50   16.00   4.53
T-16501     30.50   35.50   5.00   2.56
T-1702   PVZ   55.50   56.50   1.00   0.66
T-1702     95.00   96.00   1.00   7.00
T-1702     101.00   102.00   1.00   0.82
T-1904   PVZ   4.00   5.00   1.00   2.90
T-1904     8.00   10.00   2.00   0.74
T-1904     13.00   16.50   3.50   2.17
T-2103   PVZ   42.70   43.00   0.30   3.97
T-2103     62.00   63.00   1.00   0.73
T-2103     67.00   70.00   3.00   1.26
T-2103     80.50   81.00   0.50   1.57
T-21503   PVZ   3.00   4.00   1.00   0.73
T-21503     8.00   12.00   4.00   2.51
T-21503     16.00   22.00   6.00   2.10
T-22501   DMZ-E   16.00   17.00   1.00   0.65
T-22501     38.00   42.50   4.50   3.86
T-22501     47.50   48.50   1.00   0.80
T-22501     50.50   51.50   1.00   0.79
T-22501     56.50   59.50   3.00   2.66
T-22501     71.00   86.00   15.00   4.78
T-2313   PVZ   46.20   46.80   0.60   1.72
T-2313     79.20   80.20   1.00   1.35
T-2313     100.00   105.00   5.00   2.64
T-2313     108.00   117.00   9.00   2.44
T-2313     123.00   135.50   12.50   1.84
T-2313     140.00   141.50   1.50   1.45
T-23504   PVZ   49.50   52.50   3.00   0.73
T-2403   DMZ-E   5.00   7.00   2.00   5.26
T-2403     37.00   44.00   7.00   2.03

 

- 25 -

T-2403     48.00   50.00   2.00   0.91
T-24401   SEA   37.50   40.00   2.50   0.57
T-2504   PVZ   18.00   22.00   4.00   1.63
T-2504     25.00   26.00   1.00   2.01
T-2504     44.50   46.50   2.00   1.28
T-2504     49.50   51.50   2.00   0.72
T-2507   PVZ   9.50   15.50   6.00   1.51
T-25401   SEA   66.00   67.00   1.00   1.39
T-25401     78.00   79.00   1.00   1.79
T-25401     101.50   104.00   2.50   4.05
T-25401     124.00   125.50   1.50   3.26
T-25503     13.00   16.00   3.00   1.33
T-26201   SEA   0.00   1.00   1.00   0.87
T-26201     118.00   119.00   1.00   0.93
T-26201     126.00   128.00   2.00   1.24
T-26201     162.00   162.50   0.50   2.03
T-26201     190.00   191.00   1.00   2.20
T-26201     221.00   222.00   1.00   2.70
T-26201     229.00   230.00   1.00   1.24
T-26201     255.00   257.00   2.00   1.21
T-26601   SEA   18.00   18.50   0.50   0.80
T-26601     63.50   66.50   3.00   0.68
T-26601     69.50   71.50   2.00   0.83
T-26601     85.50   89.50   4.00   0.61
T-27001   SEA   31.00   34.00   3.00   3.38
T-27001     40.00   41.00   1.00   1.54
T-27001     80.00   93.00   13.00   1.25
T-27001     96.00   98.00   2.00   1.47
T-27201   SEA   44.00   48.00   4.00   0.53
T-27201     69.00   72.50   3.50   0.75
T-27201     117.00   118.00   1.00   1.34
T-27201     121.00   122.00   1.00   0.87
T-27201     155.00   156.00   1.00   0.79
T-27201     256.00   257.50   1.50   0.55
T-27401   SEA   57.00   60.00   3.00   6.68
T-27401     82.00   83.00   1.00   2.31
T-27402   SEA   46.00   47.00   1.00   0.88
T-27402     61.00   63.00   2.00   0.73
T-27602     15.00   16.00   1.00   1.30
T-27801   SEA   13.00   14.50   1.50   1.52
T-27801     21.50   23.00   1.50   0.70
T-27801     43.00   44.50   1.50   5.04
T-27801     47.50   48.50   1.00   0.52
T-27801     63.00   64.50   1.50   2.10
T-27801     77.00   78.50   1.50   0.60
T-27802   SEA   57.00   77.00   20.00   1.50
T-27803   SEA   50.00   51.00   1.00   1.44
T-27803     74.00   78.00   4.00   0.55
T-27803     80.00   82.00   2.00   0.61
T-28201   SEA   63.00   67.50   4.50   1.78
T-28202   SEA   39.50   40.50   1.00   1.12
T-28202     53.50   60.00   6.50   1.06
T-28202     69.50   71.50   2.00   1.69
T-28202     108.00   110.00   2.00   2.52
T-28202     120.00   121.00   1.00   1.68
T-28202     183.00   186.50   3.50   2.00
T-28202     227.50   233.50   6.00   1.81
T-28202     252.50   253.50   1.00   1.19
T-28203   SEA   38.00   40.00   2.00   0.61
T-28203     51.00   63.00   12.00   1.18
T-28203     67.00   69.00   2.00   0.70
T-28203     72.00   73.00   1.00   1.12
T-28203     82.00   83.00   1.00   1.15
T-28203     106.00   108.00   2.00   1.77
T-28203     113.00   114.00   1.00   0.61
T-28601   SEA   28.00   29.00   1.00   3.07

 

- 26 -

T-28601     47.00   54.00   7.00   1.14
T-28601     71.00   74.00   3.00   0.77
T-28801   SEA   71.00   72.00   1.00   1.16
T-28801     77.50   78.50   1.00   0.64
T-28801     83.50   84.00   0.50   0.92
T-28802   SEA   19.00   20.00   1.00   1.29
T-28802     32.00   34.00   2.00   0.52
T-28802     39.00   40.00   l.00   1.83
T-28802     100.00   104.00   4.00   0.62
T-28802     128.50   131.50   3.00   0.77
T-2906   PVZ   44.00   46.00   2.00   1.27
T-2906     66.00   68.00   2.00   4.76
T-2907   PVZ   4.00   5.00   1.00   0.76
T-2907     13.00   18.50   5.50   2.10
T-29201   SEA   30.00   31.00   1.00   0.65
T-29201     44.50   47.00   2.50   2.65
T-29201     57.00   58.00   1.00   0.91
T-29202   SEA   16.00   20.00   4.00   0.52
T-29202     33.00   39.00   6.00   1.29
T-29202     54.00   55.00   1.00   0.71
T-29202     113.00   114.00   1.00   5.88
T-29401   SEA   62.00   63.00   1.00   0.85
T-29401     65.50   68.50   3.00   1.58
T-29401     77.50   80.00   2.50   2.18
T-29401     106.00   107.00   1.00   0.53
T-29401     168.00   176.50   8.50   1.37
T-29401     183.00   188.00   5.00   1.62
T-29401     205.00   206.00   1.00   2.1l
T-29402     14.00   16.00   2.00   1.42
T-29402   SEA   19.00   20.00   1.00   1.01
T-29402     25.00   35.00   10.00   1.56
T-29402     50.00   54.00   4.00   0.97
T-29402     120.00   127.00   7.00   2.08
T-29402     134.00   135.00   1.00   1.67
T-29402     139.40   141.00   1.60   1.92
T-29601   SEA   21.00   30.00   9.00   2.10
T-29601     53.00   54.00   1.00   1.15
T-29601     80.00   82.00   2.00   1.49
T-29601     86.00   91.00   5.00   1.01
T-30201   SEA   48.00   50.00   2.00   0.89
T-30401   SEA   75.00   77.00   2.00   0.71
T-30401     128.00   129.00   1.00   2.27
T-30401     134.00   135.00   1.00   0.57
T-30401     152.00   155.00   3.00   2.47
T-30401     325.00   326.00   1.00   0.78
T-30401     365.50   366.50   1.00   2.71
T-3104   DMZ-E   18.50   22.50   4.00   3.74
T-3104     26.50   41.50   15.00   6.68
T-3105   PVZ   28.50   30.00   1.50   31.00
T-3106   PVZ   52.50   53.50   1.00   1.78
T-3106     71.00   72.00   1.00   0.51
T-3106     74.50   75.50   1.00   0.93
T-31202   SEA   31.50   32.50   1.00   3.31
T-31202     60.50   61.50   1.00   0.72
T-31501   PVZ   60.50   67.50   7.00   0.75
T-31501     80.00   81.00   1.00   1.34
T-32201   SEA   82.00   94.00   12.00   0.91
T-32201     125.00   126.00   1.00   1.31
T-32201     134.00   137.00   3.00   1.76
T-32201     265.00   268.00   3.00   2.67
T-3307   PVZ   34.00   42.00   8.00   4.31
T-3307     65.50   66.50   1.00   3.97
T-3308   PVZ   90.00   91.50   1.50   2.19
T-3308     97.50   98.00   0.50   3.69
T-3308     118.00   122.00   4.00   2.58
T-3308     143.00   146.50   3.50   2.46

 

- 27 -

T-33401   SEA   37.00   38.00   1.00   3.00
T-33401     56.50   58.00   1.50   1.45
T-33401     92.50   95.50   3.00   0.72
T-33401     117.50   118.50   1.00   30.40
T-33402   SEA   0.00   4.00   4.00   0.78
T-33402     8.00   9.50   1.50   0.52
T-33402     15.50   19.50   4.00   1.10
T-33402     65.00   66.50   1.50   0.74
T-33403   SEA   67.50   69.00   1.50   4.62
T-33501   PVZ   13.50   31.50   18.00   4.50
T-33501     34.50   37.00   2.50   2.21
T-33502   PVZ   7.00   11.50   4.50   9.03
T-3505     30.00   32.00   2.00   1.63
T-3507   PVZ   11.00   12.00   1.00   0.97
T-3507     20.50   21 .50   1.00   1.43
T-3507     32.00   33.00   l.00   0.76
T-3507     52.50   66.00   13.50   5.46
T-3507     72.00   73.00   1.00   1.02
T-3706   PVZ   5.00   7.00   2.00   1.56
T-3706     105.00   106.00   1.00   3.28
T-3706     114.00   117.00   3.00   0.78
T-3706     120.00   121.00   1.00   1.10
T-3706     124.00   126.00   2.00   1.54
T-3910   PVZ   10.50   11.50   l.00   0.93
T-3910     19.50   21.50   2.00   1.66
T-3911   PVZ   2.00   4.00   2.00   3.52
T-3911     76.00   82.00   6.00   2.27
T-401   DMZ-E   33.00   35.00   2.00   7.69
T-41502   PVZ   49.00   50.00   1.00   1.44
T-41504   PVZ   12.50   29.50   17.00   2.56
T-41504     34.50   36.00   1.50   0.64
T-41504     39.00   47.50   8.50   4.40
T-4302   PVZ   8.50   15.00   6.50   1.69
T-4302     18.00   19.50   1.50   0.52
T-4302     25.00   35.50   10.50   2.93
T-4302     45.50   54.50   9.00   9.38
T-4506   PVZ   61.90   62.50   0.60   0.78
T-4506     73.00   76.50   3.50   3.62
T-4507   PVZ   3.00   7.00   4.00   0.95
T-4507     21.00   28.00   7.00   1.27
T-4507     41.00   44.00   3.00   6.89
T-4507     72.00   74.00   2.00   1.92
T-4507     81.00   82.50   1.50   2.12
F-4507     93.00   95.00   2.00   4.03
T-4507     111.00   112.00   1.00   0.83
T-45501   PVZ   193.00   198.00   5.00   1.36
T-45501     204.00   207.00   3.00   2.07
T-4705   PVZ   14.00   15.00   l.00   2.69
T-4705     21.20   22.50   1.30   1.21
T-4705     26.00   31.00   5.00   3.24
T-4705     60.00   67.00   7.00   1.59
T-5302   PVZ   52.00   53.00   1.00   2.99
T-5303   PVZ   46.00   48.00   2.00   2.01
T-5522   PVZ   18.00   20.00   2.00   0.91
T-5522     23.00   24.00   1.00   0.94
T-5522     28.00   32.00   4.00   0.67
T-5522     110.50   111.50   1.00   5.14
T-5522     119.00   122.00   3.00   2.27
T-5522     126.00   127.00   1.00   3.02
T-5522     158.00   160.00   2.00   3.53
T-5522     171.00   172.00   1.00   0.70
T-5.522     180.00   181.00   l.00   0.53
T-5522     186.00   188.00   2.00   3.85
T-5522     200.00   201.00   1.00   1.15
T-5522     208.00   209.00   1.00   2.51
T-5522     251.00   256.00   5.00   1.03

 

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T-601   DMZ-E   5.00   6.00   1.00   1.66
T-601     34.50   47.50   13.00   1.64
T-601     51.50   59.50   8.00   1.82
T-6303   PVZ   53.50   54.50   1.00   4.34
T-6303     58 00   59.00   1 00   1.09
T-6303     62.00   65.00   3.00   1.91
T-6303     71.00   72.00   1.00   0.52
T-6303     78.50   79.50   1.00   2.85
T-6501   DMZ-E   4.50   5.40   0.90   0.69
T-6501     12.50   14.50   2.00   1.44
T-6502   DMZ-E   28.00   29.00   1.00   1.30
T-6502     41.00   45.00   4.00   1.56
T-6503   PVZ   14.00   16.00   2.00   3.57
T-810   DMZ-E   9.00   12.00   3.00   2.07
T-810     46.00   50.00   4.00   3.87
T-810     53.00   54.00   1.00   3.41
T-810     57.00   60.00   3.00   1.22
T-811   DMZ-E   9.50   13.50   4.00   1.28
T-811     17.50   19.50   2.00   2.58
T-8301   PVZ   13.00   15.00   2.00   1.68
T-8501   PVZ   25.00   29.00   4.00   0.86
T-8501     32.00   34.00   2.00   4.18
T-8501     54.00   55.00   1.00   1.40
T-8502   DMZ-E   9 20   10.00   0.80   1.72
T-8502     21.00   23.00   2.00   0.97
T-8502     47.00   48.00   1.00   1.01
T-8502     54.00   55.00   1.00   2.46
T-8502     64.50   67.50   3.00   3.70
T-8502     75.00   76.00   1.00   2.40
T-87501   PVZ   65.00   68.00   3.00   1.80
T-87501     73.00   86 00   13.00   2.73
T-87501     89.00   90.00   1.00   1.07
T-87501     102.50   107.00   4.50   1.99
T-87501     125.50   127.00   1.50   0.60
T-89501   PVZ   10.00   12.00   2.00   10.25
T-89501     24.50   25 00   0.50   1.45
T-89501     30.00   31.00   1.00   0.59
T155001   PVZ   71.60   77.00   5.40   0.79
T155001     81.00   87.50   6.50   3.12
T155001     132.20   135.50   3.30   1.96
T155001     143.00   144.50   1.50   7.76
T155001     158.00   171.50   13.50   2.95
Tl75002   PVZ   61.00   64.00   3.00   1.45
Tl75002     68.00   72.00   4.00   2.38
Tl75002     97.50   100.50   3.00   1.17
Tl902-1   PVZ   6.00   7.40   1.40   2.94
Tl902-1     40.70   45.50   4.80   1.24
Tl902-1     80.50   82.00   1.50   0.53
Tl902-1     86.00   87.00   1.00   2.10
Tl902-1     104.90   110.00   5.10   1.80
Tl95002   PVZ   6.50   9.00   2.50   2.86
Tl95002     53.00   54.00   1.00   5.32
T2313-1   PVZ   37.50   43.00   5.50   1.86
T2313-1   PVZ   48.00   49.00   1.00   2.28
T2313-1     73.00   74.00   1.00   2.15
T2313-1     82.00   84.00   2.00   1.44
T2313-1     104.00   108.00   4.00   3.86
T2313-1     112.00   138.00   26.00   2.56
T2313-1     143.50   144.50   1.00   1.90
T254501     109.50   111.00   1.50   0.83
T295001   PVZ   124.00   133.00   9.00   1.45
T295002   PVZ   45.50   47.00   1.50   1.01
T315003   PVZ   150.00   151.50   1.50   3.40
T315003     175.00   183.00   8.00   1.83
T335002   PVZ   10.50   16.50   6.00   4.99
T335002   PVZ   19.50   20.50   1.00   1.58

 

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T335002     23.00   24.50   1.50   0.63
T335002     34.00   35.00   1.00   1.12
T335002     72.50   74.50   2.00   1.08
T335002     83.50   85.00   1.50   0.51
T335002     87.50   93.50   6.00   1.24
T335002     103.50   105.00   1.50   1.06
T335002     109.00   114.00   5.00   1.56
T335002     118.50   120.00   1.50   2.29
T335002     124.00   135.50   11.50   5.26
T335002     139.50   141.00   1.50   5.46
T335002     147.00   150.00   3.00   0.65
T335002     156.00   163.50   7.50   0.73
T3706-1   PVZ   10.00   11.50   1.50   1.16
T3706-1     15.80   26.00   10.20   2.62
T3706-1     30.50   37.00   6.50   1.66
T3706-1     97.00   101.30   4.30   1.47
T3706-1     151.50   152.50   1.00   1.53
T415002   PVZ   71.50   75.50   4.00   2.74
T415002     81.00   85.00   4.00   0.91
T435003   PVZ   21.00   22.00   1.00   1.11
T435003     48 00   54.00   6.00   3.18
T435003     64.00   65.50   1.50   0.54
T435003     71.00   73.00   2.00   1.62
T435003     87.00   88.00   1.00   0.65
T435003     96.86   99.00   2.20   1.51

5.4.5.6 Diamond Drilling

The Company has drilled a total of 138 NQ and 196 HQ diamond drill holes (total of 49340 m), on the Dachang Main Parcel during the 2004, 2005, 2006 and 2007 exploration programs. Drilling completed in 2004 was designed to determine the location of major geologically inferred structures in the northwest corner of the Main Parcel and to test the encouraging trench assays at NR-TC-2 and NR-TC-4 previously discussed. The 2005 drilling program was designed to probe encouraging gold mineralization exposed by trenching. During 2006, the Company focused drilling in Dachang East, on the Company’s N.I 43-101-compliant inferred mineral resource estimate of 5.7 million tonnes grading 7.0 gpt Au (approximately 1.3 million oz of Au contained) as described in the Company’s press releases of December 3, 2003 and March 12, 2004. During 2007 the company focused on better defining the eastern and western edges of the Main Zone as outlined in the companies updated resource estimate, included in this was infill drilling along the western part of the Main zone and testing an extension to the eastern side of the Main Zone. Areas in the Ruby Zone and the Placer Valley Zone were also tested.

Drill core was typically sampled at 1 m intervals; however, depending on geology the samples may have been taken at intervals of less than 1.0 m in areas of increased interest or from in 1.5 to 2.0 m intervals in other areas.

2004 Drill Program

15 diamond drill holes (3,623 m) were completed during the 2004 exploration program. Holes CJV-1, 2 and 4 (totalling 460.5 m), tested a northwesterly trending structure parallel to and in the northwest corner of the Western Quarter and parallel and approximately 2 km south of the CBx Thrust Fault. Holes CJV-3, 5, 6, 7, 8, 9, 13 and 14 (totalling 2,390.7 m), were collared to test the CBx Thrust Fault at selected locations along strike. The remaining four holes CJV-10, 11, 12 and 15 were drilled to test the gold mineralization exposed in NR-TC-2 and 4.

The 2004 diamond-drilling program led to the definition of two major structural zones on the Main Parcel. The location of the geophysically inferred CBx Thrust Fault was determined along strike for approximately 2 km and where exposed in outcrop and intersected in drilling, the CBx Thrust Fault is up to 100 m wide, exhibits a shallow dip (20-45 degrees N +/-) and is characterized by calcareous clastic rocks, siltstones, tectonic breccias and quartz-carbonate stockworks. Silicification, carbonatization, sericitization and

 

- 30 -

hematitization are common and locally intense. Arsenopyrite, pyrite and stibnite are locally present as sulphide disseminations (2-5% total sulphide) and narrow, more massive veinlets.

The results of holes CJV-10, 11, 12 and 15 were very encouraging. Hole CJV-15 (200.3 m), intersected 6.4 gpt Au over 8.5 m, approximately 110 m vertically below the gold mineralization exposed in trench NR-TC-2. Holes CJV-10, 11 and 12 were drilled 600 m along strike to the northwest and hole CJV-11 intersected 3.55 gpt Au over 4.5 m. Holes CJV-10 and CJV-11 did not reach this zone and did not encounter any significant gold mineralization.

The above represents intersected widths. The Company is unable to determine the true width of the mineralized zones due to limited drilling to date. The mineralized fault structures, however, are assumed to be near vertical.

2005 Drill Program

During the 2005 drilling program the Company completed 22 NQ diamond drill holes (total of 2,487 m). Drilling was carried out on North River and Central Dachang. Drilling at North River tested gold mineralization exposed in trenching at NR-1 and on the gold zone intersected during the 2004 program in hole CJV-15 at NR-2.

On anomaly NR-1, four widely spaces holes (CJV-25 to CJV-28), totalling (total of 774.2 m) were drilled on two separate fault structures. Limited drill testing of the NR-1 anomaly returned a “best result” of 1.1 gpt Au over 9.0 m, defining the core of the fault zone.

At NR-2, twelve holes (CJV-16 through CJV-24, and CJV-29 through CJV-31 and totalling 1546.7 m) were drilled on the dominant fault structure in the NR-2 anomaly – the “NR-2 Fault Zone”. This drilling was follow-up work on gold mineralization intersected in drill hole CJV-15, which was drilled during the 2004 program and intersected 6.4 gpt Au over 8.5 m.

Core recovery in the drill holes was consistently well in excess of 90%.

The following summarizes the significant gold intersections reported on the NR-2 Fault Zone:

 

Drill Hole

   

Anomaly /Line

   

Intersection

   

Interval

    Assay

CJV-16 [1]                         

    NR-2 / Line 51    74.5 m to 81.5 m    7.0 m    7.59 gpt Au

CJV-17

    NR-2 / Line 51    169.0 m to 186.0 m    17.0 m [3]    2.67 gpt Au

CJV-19

    NR-2 / Line 52    109.0 m to 110.5 m    1.5 m    3.29 gpt Au

CJV-24

    NR-2 / Line 53    108.4 m to 110.6 m    2.2 m    12.64 gpt Au

CJV-29

    NR-2 / Line 52    12.1 m to 18.9 m   

6.8 m

2.0 m

    5.45 gpt Au
6.25 gpt Au

CJV-23 [3]

   NR-2 / Line52    69.5 m to 71.2 m    1.7 m    1.63 gpt Au

Notes:

[1] The gold mineralization intersected in hole CJV-16 was intersected at a vertical depth of 55.0 m and is vertically below the mineralization exposed in trench A1-TC-5101 reporting 10.25 gpt Au over 4.0 m.
[2] The 17.0 m interval reporting 2.67 gpt Au includes 7.08 gpt Au over 4.5 m.
[3] Hole CJV-23 was abandoned at the south edge of the NR-2 Fault Zone; however, the southern contact of this fault returned 1.63 gpt Au over 1.7 m as noted above.

 

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Drilling on NR-1 appears to have intersected a flat-lying zone of low-grade gold mineralization associated with a series of thrust faults. These faults have been tested by only one cross-section. Anomaly NR-1 is defined by trenching and exhibits a strike length of 2 km.

The drilling on NR-2 has defined the NR-2 Fault Zone gold bearing zone and the North River Inferred Mineral Resource of 1.28 million tonnes grading 5.58 gpt Au (238,000 oz of Au contained), as detailed in the Company’s press release of December 12, 2005. The NR-2 Fault Zone is open along strike and to depth. Further drilling is warranted to define the on-strike continuity and depth extent of this significant gold zone.

The remaining six diamond drill holes were drilled on the Central Dachang district of the Main Parcel and were located to test encouraging gold mineralization exposed by trenching on known gold soil geochemical anomalies. The holes were collared to intersect the down dip extension of this mineralization from two directions (referred to as a “scissor effect”). This was done to confirm the dip of the mineralization. Three of the six drill holes encountered significant gold mineralization, including CJV-32 with 3.3 gpt Au over 5.8 m, CJV-35 with 4.5 gpt Au over 2.5 m, and CJV-37 with 3.8 gpt Au over 4.2 m. The remaining three drill holes, which scissored the above holes, were abandoned due to bad ground conditions.

The following table summarizes these results:

 

Drill Hole

   

Anomaly / Line

   

Intersection

   

Interval

    Assay

CJV-32                    

    CD-5 / Line 54    47.1 m to 52.9 m    5.8 m    3.32 gpt Au

CJV-33

    CD-5 / Line 54    Abandoned due to bad ground

CJV-34

    CD-5 / Line 66    Abandoned due to bad ground

CJV-35

    CD-5 / Line 66    32.6 m to 35.1 m    2.5 m    4.5 gpt Au

CJV-36

    Line 67    Abandoned due to bad ground

CJV-37

    Line 67    12.4 m to 16.6 m    4.2 m    3.81 gpt Au

Holes CJV-32 and CJV-33 were drilled on the western end of gold soil geochemical anomaly CD-5 (on line 54). Hole CJV-32 was drilled northerly (024 degrees) at minus 45 degrees to a depth of 80.0 m. This hole intersected 3.32 gpt Au over 5.8 m. Hole CJV-33 was drilled southerly (204 degrees) at minus 45 degrees to a depth of 43.0 m, but was abandoned due to bad ground before intersecting the target gold zone.

Holes CJV-34 and CJV-35 tested gold-in-soil geochemical anomaly CD-5 (line 66) approximately 2.4 km to the east along strike from hole CJV-32 and CJV-33. CJV-34 and CJV-35 were drilled to test the mineralization exposed in trench A2-TC-6601, which returned 7.3 gpt Au over 12.0 m. Hole CJV-34 was drilled to the north (024 degrees) at minus 45 degrees to a depth of 117.0 m, but had to be abandoned due to bad ground and did not intersect the target gold zone. Hole CJV-35 was drilled to the south (204 degrees) at minus 45 degrees to a depth of 67.5 m and intersected 4.50 gpt Au over 2.5 m.

Holes CJV-36 and CJV-37 tested a satellite gold soil geochemical anomaly located parallel to and approximately 900 m north of anomaly CD-5 and were drilled to intersect the encouraging gold mineralization exposed in trench A2-TC-6702, which returned 2.5 gpt Au over 18.0 m including 4.1 gpt Au over 7.0 m. Hole CJV-36 was drilled to the south (024 degrees) at minus 45 degrees to a depth of 79.3 m, but was abandoned due to bad ground before hitting the target gold zone. Hole CJV-37 was drilled to the north (204 degrees) at minus 45 degrees to a depth of 72.3 m and intersected 3.8 gpt Au over 4.2 m.

The above represents intersected widths. The Company is unable to determine the true width of the mineralized zones due to limited drilling to date.

 

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2006 Drill Program

The 2006 drill program of the Company consisted of 101 diamond drill holes (total of 15,304 m). Drilling was carried out primarily on Dachang East. Dachang East hosts a mineralized area with an exposed strike length of over 2 km that is open in both directions. This area was previously exposed in work conducted by Inter-Citic’s partner, the Qinghai Geological Survey Institute. Mineralization is contained within a variably 25 to 100 m-wide fault structure (“The Dachang Fault Zone” or “DFZ”). The DFZ is a complex structure that is steeply dipping at 75 to 90 degrees.

A total of 96 drill holes on Dachang Main Zone (DMZ) have reported gold mineralization. Initial 40-m spaced trenches defined a well-mineralized fault zone along a continuous 2.5 km strike length. The gold mineralization detected in all holes has been related to sulphides (1%-5% pyrite and arsenopyrite). This gold bearing sulphide deposit was then systematically drill tested by 3-to-5 hole, NQ and HQ diamond drill hole fences at 120-m spaced sections along its entire 2.5 km strike length. In addition the Company drilled several closer spaced sections (40m) to further establish mineralization continuity. This work defined a 60 to 70 degree south dipping series of sulphide replacement zones with aggregate widths of between 7 to 23 m across the known strike length of the DMZ, which still remains open to depth and along strike. Given the continuous nature of the surface mineralization along a 2.5 km strike length, the company elected to test only the potentially open-pittable portion of the DMZ, so holes drilled to date have not yet tested the structure below a vertical depth of 200 m. The majority of holes drilled on the Dachang Main Zone have been relatively shallow (typically less than 150m in depth), and are showing continuity of width

Drill core recovery has averaged in excess of 90%, with relatively poorer core recovery in steeply angled holes. The Company believes that poor core recovery evident in steeply dipping holes may be a factor in returning lower gold assay values in some holes. The Company began using HQ drill core in the latter part of 2006, and is pleased with the improved core recovery from the fault zone.

Summary of results:

 

Hole

Number

    Section    Intersection    Core
Interval
(Metres)		    Gold
Assay
gpt		   

Comments

      From
(metres)		    To
(metres)		         
CJV-41    540N    No Significant Results   
CJV-42    540N    No Significant Results   
CJV-43    1260N    139.0    154.0    15.0    2.20   
CJV-44    1260N    No Significant Results   
CJV-45    700N    59.0    78.0    19.0    2.94   
CJV-46    700N    68.0    77.0    9.0    3.20   
CJV-47    700N    8.2    16.0    7.8    2.44   
      29.0    58.0    29.0    2.30   
CJV-48    540N    8.0    15.0    7.0    1.09   
      32.0    40.0    8.0    0.95   
      64.0    66.0    2.0    2.96   
CJV-49    1650N    36.0    38.0    2.0    0.75   
      45.0    49.0    4.0    1.12   
      81.0    83.0    2.0    4.29   
      87.0    98.0    11.0    2.46    Includes 5.25 gpt gold over 4.0 m
CJV-50    1650N    105.0    136.0    31.0    2.69    Includes 5.20 gpt gold over 8.0 m
CJV-51    1260N    76.0    78.0    2.0    1.97   
      82.0    85.0    3.0    1.05   
      89.0    95.0    6.0    6.48    Includes 11.49 gpt gold over 3.0 m
CJV-52    260S    23.0    25.0    2.0    1.83   
      44.0    46.0    2.0    4.76   
      66.0    68.0    2.0    1.73   
      145.0    147.0    2.0    1.38   
CJV-53    260S    46.0    48.0    2.0    0.80   
CJV-54    260S    144.0    146.0    2.0    3.54   
      198.0    204.0    6.0    2.66    Includes 5.87 gpt gold over 2 m

 

- 33 -

CJV-55    125S    68.0    72.0    4.0    6.20   
CJV-56    13500    34.5    39.5    5.0    2.33   
      42.5    48.5    6.0    4.07   
CJV-57    13500    53.0    59.0    6.0    6.44   
      88.0    110.0    22.0    2.54   
CJV-58    8700    20.0    34.0    13.0    3.47   
CJV-59    8700    85.0    88.0    3.0    1.14   
      118.0    132.0    14.0    4.76   
CJV-60    13500    187.0    189.0    2.0    0.78   
      204.0    206.0    2.0    5.68   
CJV-61    14300    15.0    17.0    2.0    2.76   
      22.0    29.0    7.0    4.21   
      64.0    71.0    7.0    7.91   
CJV-62    14300    37.0    39.0    2.0    1.30   
      51.0    53.0    2.0    4.75   
CJV-63    14300    18.0    26.0    8.0    3.55   
      40.0    51.0    11.0    3.07   
CJV-64    14300    54.0    62.0    8.0    1.65   
CJV-65    9300    15.0    38.6.0    23.6    7.90   
CJV-66    13900    30.0    52.0    22.0    3.06   
      30.0    42.0    12.0    4.09   
CJV-67    9300    21.0    26.0    5.0    1.46   
      54.0    63.0    9.0    3.03   
      77.0    84.0    7.0    3.13   
CJV-68    16500    123.0    126.0    3.0    1.32   
      130.0    136.0    6.0    2.66   
CJV-69    9300    113.0    134.0    22.0    5.71   
CJV-70    16500    No Significant Results   
CJV-71    16500    No Significant Results    Drilled south of the DFZ to test for parallel structures - was not expected to test the DMZ.
CJV-72    9300    120.0    141.0    21.0    1.95   
CJV-73    13500    137.0    141.0    4.0    9.00   
      177.0    179.0    2.0    1.34   
CJV-74    11500    8.0    33.0    25.0    6.78   
CJV-75    11500    11.0    23.0    12.0    4.07   
      35.2    37.8    2.6    1.03   
      68.0    70.0    2.0    1.40   
CJV-76    12300    17.0    33.0    16.0    5.80   
CJV-77    12300    24.0    43.0    19.0    1.74   
      64.0    66.0    2.0    2.5   
CJV-78    11500    34.0    43.0    9.0    1.57   
CJV-79    11500    28.2    32.2    4.0    2.91   
      43.0    46.0    3.0    1.30   
CJV-80    12300    24.0    35.0    11.0    2.17   
      50.0    51.0    1.0    5.37   
      64.0    74.0    10.0    2.07   
CJV-81    12300    29.0    38.0    9.0    7.86   
      85.0    87.0    2.0    5.83   
      100.0    110.0    10.0    7.08   
CJV-82    11500    102.0    107.0    5.0    2.35   
CJV-83    12300    123.0    129.0    6.0    2.57   
      142.0    147.0    5.0    0.56   
      165.0    171.0    6.0    3.85   
CJV-84    11500    58.0    60.0    2.0    7.27   
      65.0    69.0    4.0    2.56   
      86.0    90.0    4.0    1.59   
      93.0    95.0    2.0    2.61   
      99.0    108.0    9.0    2.26   
      113.0    126.0    13.0    5.87   
      156.0    162.0    6.0    2.66   
CJV-85    12900    78.0    82.0    4.0    2.12   
CJV-86    8100    9.2    14.1    4.9    5.31   
      34.0    37.0    3.0    5.97   
CJV-87    12900    38.0    45.0    7.0    0.81   
      69.0    72.0    3.0    1.28   

 

- 34 -

CJV-88    8100    55.0    60.0    5.0    8.15   
CJV-89    11100    42.0    45.0    3.0    3.64   
CJV-90    11100    29.0    56.0    27.0    5.34   
CJV-91    8100    106.0    109.0    3.0    0.84   
CJV-92    11100    53.0    73.0    20.0    3.56   
      76.0    89.0    13.0    5.49   
CJV-93    5100    29.0    31.0    2.0    1.23   
CJV-94    11100    46.0    48.0    2.0    1.56   
      64.0    67.0    3.0    4.40   
      108.0    113.0    5.0    6.44   
      133.0    135.0    2.0    7.60   
CJV-95    5100    37.0    49.0    12.0    3.50   
      62.0    70.0    8.0    3.90   
      88.0    91.0    3.0    3.56   
      174.0    188.0    14.0    2.06   
CJV-96    10700    48.0    56.0    8.0    1.73   
      63.0    74.0    11.0    5.95   
CJV-97    10700    84.0    86.0    2.0    1.12   
      93.0    97.0    4.0    1.90   
      128.0    135.0    7.0    3.35   
      148.0    150.0    2.0    1.18   
CJV-98    10700    64.0    81.0    17.0    3.01   
      89.0    94.0    5.0    5.34   
CJV-99    10000    26.0    29.0    3.0    6.36   
CJV-100    10000    25.0    29.0    4.0    4.00   
      35.0    40.0    5.0    20.41   
CJV-101    10100    55.0    61.0    6.0    3.92   
      63.0    77.0    14.0    2.31   
CJV-102    10100    53.0    57.0    4.0    1.97   
      61.0    65.0    4.0    1.14   
      69.0    75.0    6.0    6.55   
      99.0    108.0    9.0    4.97   
CJV-103    10100    91.0    93.0    2.0    0.74   
      140.0    142.0    2.0    3.11   
CJV-104    6700    No Significant Results   
CJV-105    6700    44.0    46.0    2.0    2.87   
      50.0    54.0    4.0    1.91   
      84.0    86.0    2.0    6.56   
CJV-106    6700    98.0    100.0    2.0    0.77   
      120.0    127.0    7.0    5.03   
CJV-107    9300    69.0    72.0    3.0    2.67    Stopped short of DMZ fault zone
CJV-108    11700    14.0    16.0    2.0    10.05   
      20.0    22.0    2.0    2.06   
      36.0    40.0    4.0    1.93   
CJV-109    11107    36.0    41.0    5.0    3.27   
      44.0    45.0    1.0    1.11   
      53.0    58.0    5.0    2.72   
      61.0    64.0    3.0    2.30   
CJV-110    12100    11.0    13.0    2.0    3.34   
      16.0    28.0    12.0    4.42   
      31.0    37.0    6.0    1.58   
      43.0    47.0    4.0    0.60   
      51.0    60.0    9.0    2.34   
CJV-111    12100    31.0    43.0    12.0    2.14   
      51.0    52.0    1.0    0.98   
      56.0    59.0    3.0    2.63   
      66.0    76.0    10.0    1.66   
      81.0    85.0    4.0    2.81   
CJV-112    12100    41.7    42.7    1.0    1.11   
      59.0    61.0    2.0    0.80   
      81.0    97.0    16.0    1.52   
      103.0    104.0    1.0    0.82   
CJV-113    11700    53.0    66.0    13.0    4.66   
      72.0    82.0    10.0    2.53   
CJV-114    13200    25.0    26.0    1.0    3.38   
      31.0    35.0    4.0    4.40   

 

- 35 -

                 
      40.0    41.0    1.0    0.63   
      46.0    47.0    1.0    0.51   
      52.0    71.0    19.0    1.99   
CJV-115    12100    61.0    62.0    1.0    1.29   
      68.0    69.0    1.0    2.03   
      110.0    116.0    6.0    1.93   
      124.0    126.0    2.0    1.51   
CJV-116    12400    147.0    156.0    9.0    4.57   
      201.0    203.0    2.0    1.02   
      209.0    210.0    1.0    0.60   
CJV-117    11900    90.1    91.1    1.0    3.61   
      115.0    120.0    5.0    3.38   
      128.0    129.0    1.0    0.67   
      133.0    134.0    1.0    1.14   
      139.0    142.0    3.0    4.22   
      148.0    154.0    6.0    2.10   
      161.0    163.0    2.0    1.13   
      167.0    168.0    1.0    5.79   
      177.0    180.0    3.0    3.81   
CJV-118    12700    13.0    14.0    1.0    0.54   
      17.0    22.0    5.0    2.51   
      29.0    31.0    2.0    1.22   
      41.0    47.0    6.0    1.93   
CJV-119    11700    112.0    113.0    1.0    1.76   
      137.0    138.0    1.0    1.12   
      147.0    151.0    4.0    1.84   
      156.0    160.0    4.0    1.10   
      164.0    168.0    4.0    1.74   
CJV-120    10700    71.0    75.0    4.0    15.64   
      78.0    79.0    1.0    1.10   
      101.0    102.0    1.0    0.93   
      105.0    106.0    1.0    0.79   
      114.0    116.0    2.0    4.11   
      137.0    139.0    2.0    2.53   
      178.0    179.0    1.0    1.06   
      204.0    206.0    2.0    2.26   
CJV-121    13900    77.0    78.0    1.0    0.55   
      84.0    89.0    5.0    1.75   
CJV-122    9300    123.0    125.0    2.0    1.51   
      149.0    162.0    13.0    1.99   
      171.0    173.0    2.0    1.93   
      179.0    180.0    1.0    4.52   
      183.0    185.0    2.0    2.57   
CJV-123    10100    84.0    87.0    3.0    1.25   
      113.0    114.0    1.0    0.50   
      164.0    166.0    2.0    5.91   
      169.0    170.0    1.0    8.59   
      185.0    189.0    4.0    0.53   
      228.0    229.0    1.0    4.57   
CJV-124    9300    No Significant Results    Stopped short of DMZ fault zone
CJV-125    10300    54.0    55.0    1.0    0.68   
      77.0    80.0    3.0    1.48   
      84.0    99.0    15.0    2.80   
CJV-126    10100    54.0    55.0    1.0    3.50   
      61.0    69.0    8.0    1.42   
      177.0    180.0    3.0    3.71   
      191.0    192.0    1.0    0.54   
      219.0    220.0    1.0    0.75   
      224.0    225.0    1.0    1.31   
CJV-127    13900    53.0    55.0    2.0    2.30   
      62.0    66.0    4.0    2.88   
      103.0    106.0    3.0    2.06   
      109.0    118.0    9.0    3.71   
      121.0    127.0    6.0    6.14   
CJV-128    13200    52.0    58.0    6.0    1.92   
      84.0    92.0    8.0    1.93   

 

- 36 -

      95.0    96.0    1.0    0.86   
      99.0    101.0    2.0    5.66   
      120.0    122.0    2.0    1.35   
CJV-129    13200    88.0    89.0    1.0    1.29   
      103.0    106.0    3.0    2.22   
      111.0    112.0    1.0    1.31   
      121.0    123.0    2.0    5.59   
      130.0    135.0    5.0    1.10   
      139.0    145.0    6.0    2.28   
CJV-130    7600    23.0    26.0    3.0    5.26   
CJV-131    7600    16.0    17.0    1.0    5.11   
      59.0    61.0    2.0    0.98   
CJV-132    7100    39.0    40.0    1.0    5.38   
      45.0    46.0    1.0    5.17   
      53.0    54.0    1.0    0.68   
CJV-133    7100    22.0    23.0    1.0    0.56   
      101.0    112.0    11.0    2.41   
      119.0    127.0    8.0    2.87   
      130.0    132.0    2.0    1.91   
CJV-134    7100    24.0    25.0    1.0    0.84   
      66.0    72.0    6.0    4.19   
CJV-135    14300    50.0    52.0    2.0    1.65   
      98.0    101.0    3.0    7.37   
      140.0    147.0    7.0    3.87   
      159.0    160.0    1.0    0.81   
      170.0    171.0    1.0    0.92   
CJV-136    14900    58.0    59.0    1.0    0.50   
      76.0    77.0    1.0    2.27   
      81.0    86.0    5.0    1.01   
      139.0    140.0    1.0    0.56   
CJV-137    14900    14.0    15.0    1.0    2.23   
      99.50    100.50    1.0    1.62   
      117.0    123.0    6.0    2.09   
      129.0    130.0    1.0    2.67   
      136.0    137.0    1.0    0.54   
CJV-138    15700    84.0    85.0    1.0    0.83   
      107.0    108.0    1.0    2.06   
      112.0    113.0    1.0    0.53   
      122.0    123.0    1.0    2.77   
      127.0    128.0    1.0    4.44   
      131.0    133.0    2.0    2.41   
CJV-139    15700    88.0    89.0    1.0    0.50   
      142.0    144.0    2.0    1.59   
      152.0    153.0    1.0    1.75   
      195.0    196.0    1.0    1.53   
CJV-140    5500    59.0    61.0    2.0    1.82   
      67.0    68.0    1.0    0.70   
      168.0    181.0    13.0    4.35   
CJV-141    5500    34.0    35.0    1.0    2.39    Stopped short of DMZ fault zone
      80.0    81.0    1.0    1.10   

Note: Assay cut-off for the above table was at 0.5 gpt Au, however, intervals were determined by geological interpretation of consistent mineralized zones. Broader intervals may include waste intervals of up to 2m. There was no evidence of nugget effect and none were topcut. True widths for the intervals above have yet to be determined.

Drill holes CJV-45, 46 and 47 were drilled on line 700N, which is 560 m east of holes 43 and 44 and 160 m west of holes 41 and 42. Holes CJV-43 and 44 were drilled 720 m to the west on section 1260N. Holes CJV-41 and 42 were drilled on section 540N to test the DFZ below a well-mineralized surface test pit. Both holes failed to detect any significant mineralization.

Results from three other drill holes from the North River District at Dachang did not show any significant gold values.

 

- 37 -

2007 Drill Program

The 2007 drill program of the Company consisted of 195 diamond drill holes (total of 27,926 meters). During the 2007 season, four sections of the property were drilled tested. The Dachang Main zone (DMZ) with infill and fence drilling. The Dachang Main Zone Extension (DMZ-X) east of the known main zone mineralization. Drilling was also undertaken on the Placer Valley Zone (PVZ) to the south of the main zone and a limited amount of diamond drilling was undertaken on the Little Ruby Zone (“RZ”) to the north of the main zone.

The infill DMZ drilling extended the known mineralization and provided better control to join zones and geology. The new exploration confirmed the continuity of the mineralization, fault zones and structural control of the ore zone. Additional mineralization associated with splay faults, and vertical shears was also discovered.

The DMZ-X mineralization was discovered 1-1.5 kilometers east of known mineralization. Gold occurs in low angle thrust faults in highly sheared fine grained sediments proximal to thicker sandstone units.

The PVZ drilling was follow-up to well mineralized trench assays. Mineralization in core was associated with blocky broken fault zones in low angle sheared sediments near surface. Core recovery within the zones was poor.

The RZ drilling did not return significant thickness of mineralization. Further drilling is not considered warranted.

A summary of the drill results follows. Mineralization is defined as previous: Au >or= to 0.50 Au g/t, with interval waste up to 2 meters thick. Concurrently the defined zones are being incorporated into an updated block model which will be available in the near future.

 

Hole

Number

  

Section

  

Zone

  

From

  

To

  

Length

  

Au g/t

CJV-142   RZ   RZ   78.00   81.00   3.00   5.54
CJV-142       122.00   123.00   1.00   2.51
CJV-144   5500W   DMZ   139.00   140.00   1.00   1.11
CJV-145   5500W   DMZ   6.00   8.00   2.00   3.27
CJV-145       28.00   33.00   5.00   1.32
CJV-145       36.00   39.00   3.00   2.67
CJV-145       45.00   46.00   1.00   0.50
CJV-146   5100W   DMZ   36.00   42.00   6.00   1.21
CJV-146       61.00   69.00   8.00   2.34
CJV-146       93.00   95.00   2.00   2.37
CJV-146       120.00   123.00   3.00   1.69
CJV-146       171.00   175.00   4.00   0.71
CJV-146       189.00   194.00   5.00   1.85
CJV-146       197.00   198.00   1.00   0.76
CJV-146       201.00   205.00   4.00   2.53
CJV-146       207.20   208.80   1.60   0.64
CJV-146       214.40   216.40   2.00   3.12
CJV-147   5100W   DMZ   126.00   138.00   12.00   1.49
CJV-147       143.00   147.00   4.00   0.55
CJV-147       155.00   157.00   2.00   4.77
CJV-150   5100W   DMZ   13.00   16.00   3.00   9.18
CJV-150       121.00   122.00   1.00   1.07
CJV-150       125.00   128.00   3.00   4.68
CJV-150       143.00   144.00   1.00   0.88
CJV-151   3900W   PVZ   12.50   14.50   2.00   2.33
CJV-151       17.50   18.50   1.00   11.50
CJV-151       51.50   54.50   3.00   1.39
CJV-151       57.50   58.50   1.00   1.43
CJV-152   3900W   PVZ   13.00   29.00   16.00   2.04
CJV-152       60.00   62.00   2.00   2.19

 

- 38 -

CJV-152       119.00   120.00   1.00   0.60
CJV-153   3900W   PVZ   32.50   41.50   9.00   4.92
CJV-153       79.00   81.00   2.00   0.77
CJV-154   3900W   PVZ   32.00   33.00   1.00   2.50
CJV-154       36.00   37.00   1.00   3.14
CJV-155   5100W   DMZ   11.00   14.00   3.00   2.60
CJV-155       123.00   124.00   1.00   1.02
CJV-155       132.00   140.00   8.00   1.67
CJV-155       143.00   145.00   2.00   2.71
CJV-155       158.00   162.00   4.00   2.64
CJV-156   5100W   DMZ   64.00   65.00   1.00   2.20
CJV-156       83.00   87.00   4.00   2.26
CJV-156       97.00   98.00   1.00   6.35
CJV-158   4700W   DMZ   14.00   16.00   2.00   2.78
CJV-158       65.00   69.00   4.00   1.53
CJV-158       175.00   177.00   2.00   2.77
CJV-159   4700W   DMZ   11.00   12.00   1.00   5.39
CJV-159       21.00   24.00   3.00   2.33
CJV-159       55.00   56.00   1.00   1.57
CJV-159       98.00   100.00   2.00   3.01
CJV-159       106.00   107.00   1.00   0.56
CJV-159       178.00   181.50   3.50   1.76
CJV-160   4700W   DMZ   33.00   37.00   4.00   5.03
CJV-160       46.00   104.00   58.00   5.20
CJV-160       110.00   123.00   13.00   1.96
CJV-161   4700W   DMZ   21.00   22.00   1.00   0.62
CJV-161       26.00   27.00   1.00   4.40
CJV-161       32.00   34.00   2.00   6.15
CJV-161       110.00   111.00   1.00   1.55
CJV-162   4300W   DMZ   53.50   55.00   1.50   0.63
CJV-162       63.00   66.00   3.00   2.27
CJV-162       84.00   89.00   5.00   6.53
CJV-162       162.00   167.00   5.00   1.23
CJV-162       184.00   193.00   9.00   4.53
CJV-163   4700W   DMZ   78.00   81.00   3.00   3.52
CJV-164   4700W   DMZ   132.00   141.00   9.00   0.96
CJV-165   4300W   DMZ   55.50   57.00   1.50   1.93
CJV-165       65.00   77.00   12.00   3.34
CJV-165       83.00   84.50   1.50   1.30
CJV-165       104.00   105.00   1.00   0.50
CJV-165       165.00   166.00   1.00   1.12
CJV-166   4300W   DMZ   112.00   122.00   10.00   5.75
CJV-167   3500W   PVZ   5.00   6.00   1.00   1.13
CJV-167       9.00   17.00   8.00   2.16
CJV-167       25.00   26.00   1.00   1.44
CJV-168   4300W   DMZ   43.50   45.50   2.00   2.03
CJV-168       75.50   79.50   4.00   5.58
CJV-168       121.00   124.50   3.50   3.83
CJV-168       133.50   134.50   1.00   1.66
CJV-168       137.50   141.50   4.00   2.03
CJV-168       144.50   145.50   1.00   7.54
CJV-169   3500W   PVZ   12.00   15.00   3.00   4.20
CJV-169       22.00   24.00   2.00   4.47
CJV-170   4300W   DMZ   22.00   23.00   1.00   8.00
CJV-170       78.00   80.00   2.00   1.60
CJV-170       97.50   103.50   6.00   2.15
CJV-171   3500W   PVZ   17.00   18.00   1.00   1.05
CJV-171       58.00   59.50   1.50   2.15
CJV-171       106.00   107.00   1.00   2.80
CJV-172   4300W   DMZ   59.00   60.00   1.00   8.00
CJV-173   3500W   PVZ   11.00   17.00   6.00   1.21
CJV-173       73.00   77.00   4.00   1.77
CJV-174   3900W   DMZ   69.00   70.00   1.00   1.22
CJV-174       79.00   83.00   4.00   2.34
CJV-174       93.50   94.50   1.00   0.65
CJV-174       105.50   106.50   1.00   1.34

 

- 39 -

CJV-174       114.00   115.00   1.00   6.00
CJV-175   2900W   PVZ   20.00   21.00   1.00   2.05
CJV-175       40.00   41.00   1.00   1.46
CJV-175       80.00   81.00   1.00   1.40
CJV-176   3900W   DMZ   81.50   84.50   3.00   4.59
CJV-176       128.00   144.00   16.00   4.28
CJV-176       154.50   156.50   2.00   1.28
CJV-177   2900W   PVZ   9.00   10.00   1.00   0.97
CJV-177       18.50   22.50   4.00   10.36
CJV-177       49.00   52.00   3.00   1.66
CJV-177       87.00   88.00   1.00   0.58
CJV-178   2500W   DMZ   18.00   19.00   1.00   0.87
CJV-178       26.00   27.00   1.00   3.76
CJV-178       43.00   54.50   11.50   0.99
CJV-178       59.00   66.00   7.00   1.42
CJV-178       70.00   71.00   1.00   5.70
CJV-178       79.00   80.50   1.50   0.88
CJV-179   2100E   PVZ   7.00   8.00   1.00   0.70
CJV-179       59.00   60.00   1.00   1.26
CJV-179       65.00   66.00   1.00   0.50
CJV-179       97.00   100.00   3.00   4.53
CJV-180   3900W   DMZ   37.00   39.00   2.00   3.92
CJV-180       45.00   46.00   1.00   1.61
CJV-180       98.00   99.00   1.00   1.19
CJV-180       122.00   124.00   2.00   2.28
CJV-180       143.50   147.50   4.00   3.42
CJV-180       168.50   169.50   1.00   0.96
CJV-180       179.00   181.00   2.00   2.46
CJV-181   2100E   PVZ   48.00   49.00   1.00   0.68
CJV-181       59.00   60.00   1.00   1.07
CJV-181       68.00   69.00   1.00   1.46
CJV-182   2500E   DMZ   26.50   31.50   5.00   1.82
CJV-182       53.00   55.00   2.00   2.23
CJV-182       68.50   70.00   1.50   1.31
CJV-182       80.00   81.00   1.00   0.75
CJV-182       89.00   90.00   1.00   0.57
CJV-182       106.00   115.00   9.00   1.17
CJV-182       119.00   120.00   1.00   1.07
CJV-183   2500E   DMZ   31.00   36.00   5.00   1.35
CJV-183       46.00   49.00   3.00   1.63
CJV-183       56.00   58.00   2.00   1.39
CJV-183       62.00   79.00   17.00   3.57
CJV-183       85.00   88.00   3.00   2.88
CJV-183       104.00   105.00   1.00   0.50
CJV-183       145.00   148.00   3.00   1.22
CJV-183       152.00   153.00   1.00   0.78
CJV-183       158.00   162.00   4.00   1.27
CJV184A   3100RZ   RZ   27.00   30.00   3.00   0.90
CJV184A       113.00   115.00   2.00   1.34
CJV184A       180.00   181.00   1.00   1.28
CJV-186       21.40   27.50   6.10   1.43
CJV-186       34.50   38.50   4.00   0.71
CJV-186       59.00   60.00   1.00   3.21
CJV-186       73.00   75.00   2.00   7.31
CJV-186       81.50   83.50   2.00   1.07
CJV-186       101.50   102.50   1.00   2.40
CJV-186       113.50   118.00   4.50   2.33
CJV-186       177.50   186.50   9.00   1.71
CJV-186       221.00   223.00   2.00   2.31
CJV-186       228.00   229.00   1.00   0.60
CJV-186       232.00   233.00   1.00   0.94
CJV-187       46.00   51.00   5.00   6.95
CJV-187       80.00   83.00   3.00   0.78
CJV-187       92.00   98.00   6.00   3.22
CJV-187       133.00   134.00   1.00   3.87
CJV-187       186.00   191.00   5.00   1.08

 

- 40 -

CJV-187       201.00   202.00   1.00   0.57
CJV-188   3100RZ   RZ   61.00   63.00   2.00   1.85
CJV-189       58.50   60.50   2.00   4.83
CJV-189       69.50   71.00   1.50   0.51
CJV-189       80.00   80.80   0.80   1.07
CJV-189       219.50   220.50   1.00   0.96
CJV-190       60.00   62.00   2.00   4.79
CJV-190       71.00   72.00   1.00   0.98
CJV-190       80.00   81.00   1.00   1.99
CJV-190       109.00   110.00   1.00   0.79
CJV-191       8.00   10.00   2.00   1.96
CJV-191       40.30   44.90   4.60   1.15
CJV-191       139.00   140.50   1.50   4.26
CJV-191       148.00   149.00   1.00   0.77
CJV-191       151.00   152.00   1.00   0.65
CJV-192   3100RZ   RZ   16.00   18.00   2.00   4.74
CJV-192       28.00   32.00   4.00   0.88
CJV-194   2100W   DMZ   45.50   46.50   1.00   0.82
CJV-194       67.00   77.00   10.00   0.81
CJV-194       83.00   85.00   2.00   1.60
CJV-194       101.50   104.50   3.00   0.62
CJV-194       108.50   110.50   2.00   0.82
CJV-194       113.50   127.00   13.50   2.14
CJV-194       134.00   138.50   4.50   1.37
CJV-194       166.10   167.10   1.00   3.02
CJV-194       177.60   178.00   0.40   1.61
CJV-194       219.00   220.00   1.00   2.30
CJV-194       228.00   229.00   1.00   0.56
CJV-195   2100W   DMZ   117.00   118.00   1.00   2.42
CJV-195       132.00   133.00   1.00   0.75
CJV-195       144.00   145.00   1.00   1.41
CJV-195       148.00   150.00   2.00   4.47
CJV-195       155.00   156.00   1.00   0.50
CJV-195       159.00   160.00   1.00   1.13
CJV-195       187.00   189.00   2.00   1.25
CJV-196   3100RZ   RZ   20.00   23.00   3.00   3.84
CJV-196       31.00   40.00   9.00   0.73
CJV-197   2100W   DMZ   84.00   89.00   5.00   1.12
CJV-197       121.50   123.00   1.50   2.06
CJV-197       138.00   140.00   2.00   1.61
CJV-198   3900W   DMZ   46.00   50.00   4.00   1.97
CJV-198       57.00   58.00   1.00   0.62
CJV199   RZ   RZ   61.00   67.00   6.00   1.48
CJV-200   2100W   DMZ   99.00   104.00   5.00   1.01
CJV-200       117.00   125.00   8.00   0.89
CJV-200       138.00   142.00   4.00   2.71
CJV-201   4700W   DMZ   26.00   27.00   1.00   2.51
CJV-201       36.00   43.00   7.00   4.97
CJV-201       48.00   49.00   1.00   3.06
CJV-202   3500W   DMZ   37.00   38.00   1.00   0.61
CJV-202       54.00   56.00   2.00   3.47
CJV-202       130.00   131.00   1.00   0.94
CJV-203   3900W   DMZ   32.00   33.00   1.00   0.64
CJV-203       35.00   36.00   1.00   0.78
CJV-203       52.00   60.00   8.00   2.41
CJV-203       65.00   66.00   1.00   1.49
CJV-204   3500W   DMZ   93.00   97.00   4.00   2.40
CJV-204       101.00   102.00   1.00   0.70
CJV-204       113.50   114.50   1.00   1.49
CJV-204       117.00   118.50   1.50   4.56
CJV-204       146.50   147.50   1.00   0.50
CJV-205   4700W   DMZ   54.00   75.00   21.00   6.54
CJV-206   4100W   DMZ   38.50   41.50   3.00   3.06
CJV207A   3500W   DMZ   24.00   71.00   47.00   6.64
CJV207A       76.00   77.00   1.00   0.65
CJV-208   4700W   DMZ   43.00   44.00   1.00   0.74

 

- 41 -

CJV-208       91.00   102.00   11.00   7.22
CJV-208       109.00   110.00   1.00   1.29
CJV-208       118.00   122.00   4.00   0.53
CJV-209   4100W   DMZ   107.00   109.00   2.00   0.78
CJV-209       161.00   162.00   1.00   1.27
CJV-210   4700W   DMZ   69.00   72.00   3.00   1.80
CJV-211   4900W   DMZ   24.00   27.00   3.00   1.08
CJV-211       38.90   40.50   1.60   7.79
CJV-213   9700W   DMZ   20.00   23.00   3.00   3.31
CJV-214   9700W   DMZ   52.00   63.00   11.00   6.04
CJV-214       70.00   71.00   1.00   1.42
CJV-215   5100W   DMZ   12.00   15.00   3.00   6.53
CJV-215       82.00   83.50   1.50   0.64
CJV-215       88.00   102.00   14.00   2.29
CJV-215       106.00   107.00   1.00   0.95
CJV-215       110.00   111.00   1.00   1.00
CJV-216   4100W   PVZ   19.50   21.00   1.50   1.31
CJV-216       82.00   84.50   2.50   8.78
CJV-217   3500W   DMZ   23.50   24.50   1.00   0.71
CJV-217       61 70   62.80   1 10   1 98
CJV-218   9700W   DMZ   63.00   67.00   4.00   2.13
CJV-218       73.00   101.00   28.00   6.77
CJV-219   9700W   DMZ   100.00   104.00   4.00   2.07
CJV-219       134.50   135.50   1.00   0.72
CJV-219       150.50   157.50   7.00   1.15
CJV-220   4100W   PVZ   5.00   6.00   1.00   2.20
CJV-220       23.70   26.70   3.00   3.34
CJV-220       91.40   92.40   1 00   2.25
CJV-221   3500W   PVZ   41.00   49.00   8.00   3.93
CJV-221       90.00   92.00   2.00   1.73
CJV-221       116.50   121.00   4.50   3.88
CJV-222   3900W   PVZ   15.50   18.70   3.20   1.40
CJV-222       45.50   47.50   2.00   4.17
CJV-222       56.00   57.00   1.00   2.15
CJV-222       103.00   104.00   1.00   1.27
CJV-223   9700W   DMZ   106.00   107.00   1.00   0.56
CJV-223       150.00   154.00   4.00   1.77
CJV-223       161.00   162.00   1.00   1.47
CJV-223       168.00   169.00   1.00   2.32
CJV-223       174.00   176.00   2.00   1.51
CJV-223       187.00   195.00   8.00   1.48
CJV-224   2900W   DMZ   13.50   15.50   2.00   2.00
CJV-224       19.50   30.00   10.50   4.79
CJV-224       34.00   44.50   10.50   2.28
CJV-224       49.00   51.00   2.00   0.54
CJV-224       57.00   58.00   1.00   0.55
CJV-225   9500W   DMZ   49.00   52.00   3.00   1.91
CJV-225       58.00   84.00   26.00   3.03
CJV-225       89.00   91.00   2.00   1.63
CJV-226   3900W   PVZ   22.30   23.30   1.00   0.67
CJV-226       37.00   38.00   1 00   1.14
CJV-226       42.00   44.00   2.00   2.28
CJV-226       52.00   53.00   1.00   1.43
CJV-226       105.00   108.00   3.00   1.05
CJV-227   3500W   DMZ   26.50   47.00   20.50   3.91
CJV-227       64.50   66.00   1.50   0.60
CJV-228   9500W   DMZ   26.00   27.00   1.00   0.82
CJV-228       57.00   58.00   1.00   2.01
CJV-228       70.00   71.00   1.00   2.74
CJV-228       78.00   86.00   8.00   1.46
CJV-228       107.50   114.00   6.50   4.58
CJV-228       118.00   121.00   3.00   2.43
CJV-228       133.00   135.00   2.00   7.25
CJV-229   4300W   PVZ   8.00   12.00   4.00   0.89
CJV-229       87.50   88.50   1.00   0.84
CJV-229       93.30   96.30   3.00   1.57

 

- 42 -

CJV-230   9500W   DMZ   152.00   159.00   7.00   4.24
CJV-230       164.00   165.00   1.00   0.52
CJV-230       169.00   171.00   2.00   0.78
CJV-230       174.00   176.00   2.00   2.70
CJV-231   4300W   PVZ   8.50   10.50   2.00   1.18
CJV-231       68.50   69.50   1.00   1.32
CJV-231       77.80   78.80   1.00   0.57
CJV-232   2100W   DMZ   11.50   13.50   2.00   2.92
CJV-232       22.50   25.50   3.00   2.82
CJV-232       29.50   34.50   5.00   2.69
CJV-233   10300W   DMZ   21.00   22.00   1.00   0.52
CJV-233       27.00   28.00   1.00   0.74
CJV-233       38.50   39.50   1.00   0.61
CJV-233       46.50   48.50   2.00   4.79
CJV-234   2900W   DMZ   28.50   32.00   3.50   4.45
CJV-234       43.00   44.00   1.00   2.63
CJV-234       54.50   55.50   1.00   0.53
CJV-234       106.50   108.50   2.00   2.12
CJV-235   10300W   DMZ   83.00   84.00   1.00   0.85
CJV-235       101.50   104.50   3.00   2.19
CJV-235       133.00   134.00   1.00   2.98
CJV-235       144.00   145.00   1.00   3.09
CJV-235       152.00   153.00   1.00   1.24
CJV-235       163.00   163.70   0.70   8.25
CJV-235       167.70   168.70   1.00   1.07
CJV-235       180.00   181.00   1.00   0.87
CJV-236   11100W   DMZ   17.00   31.00   14.00   2.56
CJV-236       39.00   40.00   1.00   0.62
CJV-237   3500W   PVZ   11.00   12.00   1.00   1.29
CJV-237       28.00   29.00   1.00   0.59
CJV-237       40.00   41.00   1.00   0.74
CJV-238   11300W   DMZ   10.00   11.00   1.00   1.05
CJV-238       17.00   22.00   5.00   0.89
CJV-238       31.00   38.00   7.00   1.56
CJV-238       47.00   48.00   1.00   1.37
CJV-239   3400W   PVZ   11.00   14.00   3.00   9.04
CJV-239       20.00   21.00   1.00   0.58
CJV-239       24.00   25.00   1.00   1.60
CJV-239       70.00   71.00   1.00   0.86
CJV-239       79.00   81.00   2.00   1.14
CJV-239       88.00   89.00   1.00   0.72
CJV-240   3300W   DMZ   9.00   10.50   1.50   0.73
CJV-240       15.00   16.00   1.00   1.05
CJV-240       18.50   29.50   11.00   3.31
CJV-240       33.80   38.60   4.80   2.63
CJV-240       92.00   93.00   1.00   0.63
CJV-240       98.00   99.00   1.00   1.48
CJV-240       103.00   104.00   1.00   0.87
CJV-241   11300W   DMZ   35.00   40.00   5.00   1.70
CJV-241       46.00   51.00   5.00   4.13
CJV-241       54.00   55.00   1.00   2.03
CJV-241       60.00   61.00   1.00   1.39
CJV-241       65.00   70.00   5.00   6.24
CJV-241       141.50   142.50   1.00   1.07
CJV-242   3400W   PVZ   5.00   6.00   1.00   0.96
CJV-242       83.00   84.00   1.00   0.56
CJV-242       103.00   104.00   1.00   0.97
CJV-243   1700W   DMZ   22.00   23.00   1.00   1.49
CJV-243       34.00   36.00   2.00   1.29
CJV-243       61.50   62.50   1.00   0.53
CJV-243       139.50   140.60   1.10   1.03
CJV-244   3400W   PVZ   35.00   37.00   2.00   2.23
CJV-244       57.00   59.00   2.00   1.14
CJV-244       78.00   82.00   4.00   1.86
CJV-245   11300W   DMZ   32.00   33.00   1.00   0.58
CJV-245       43.00   45.00   2.00   1.18

 

- 43 -

CJV-245       49.00   50.00   1.00   1.04
CJV-245       54.00   63.00   9.00   1.19
CJV-245       70.00   77.00   7.00   3.73
CJV-245       80.00   82.00   2.00   7.87
CJV-246   11700W   DMZ   78.00   80.00   2.00   2.98
CJV-246       84.00   85.00   1.00   0.73
CJV-246       92.00   96.00   4.00   3.06
CJV-246       108.00   109.00   1.00   0.53
CJV-246       114.00   118.00   4.00   3.17
CJV-247   3300W   DMZ   26.00   30.00   4.00   2.46
CJV-247       52.50   54.00   1.50   0.66
CJV-247       62.00   64.00   2.00   1.97
CJV-247       75.00   77.00   2.00   0.84
CJV-247       124.50   125.50   1.00   3.86
CJV-248   11700W   DMZ   66.00   67.00   1.00   4.53
CJV-248       87.00   88.00   1.00   2.19
CJV-248       101.00   102.00   1.00   1.47
CJV-248       107.00   108.00   1.00   0.66
CJV-248       115.00   119.50   4.50   4.06
CJV-248       125.00   129.00   4.00   0.92
CJV-248       133.00   134.00   1.00   0.71
CJV-248       151.00   166.00   15.00   4.35
CJV-249   10900W   DMZ   39.00   51.00   12.00   3.66
CJV-249       68.00   69.00   1.00   1.28
CJV-250   1300W   DMZ   13.00   14.00   1.00   0.65
CJV-250       30.50   37.00   6.50   8.12
CJV-250       40.00   41.50   1.50   0.87
CJV-250       58.50   61.50   3.00   0.80
CJV-250       64.50   65.50   1.00   0.96
CJV-250       90.50   91.50   1.00   0.54
CJV-250       118.50   119.50   1.00   0.96
CJV-250       139.50   144.50   5.00   1.99
CJV-251   2700W   DMZ   67.30   69.30   2.00   0.91
CJV-252   10900W   DMZ   45.00   46.00   1.00   1.93
CJV-252       62.00   77.00   15.00   4.55
CJV-252       80.00   81.00   1.00   0.51
CJV-252       87.00   88.00   1.00   0.54
CJV-252       93.00.   94.00   1.00   0.96
CJV-252       96.00   97.00   1.00   0.53
CJV-253   2700W   PVZ   15.00   16.00   1.00   1.02
CJV-253       27.50   32.00   4.50   2.91
CJV-253       69.00   70.00   1.00   1.24
CJV-254   10900W   DMZ   15.00   16.00   1.00   0.65
CJV-254       52.00   54.00   2.00   1.30
CJV-254       59.00   60.00   1.00   0.95
CJV-254       69.00   73.00   4.00   1.17
CJV-254       82.00   85.00   3.00   7.87
CJV-254       97.00   99.00   2.00   1.48
CJV-254       105.00   107.00   2.00   0.78
CJV-254       114.00   116.00   2.00   2.74
CJV-254       127.00   134.00   7.00   1.42
CJV-255   2300W   PVZ   6.00   10.00   4.00   0.55
CJV-255       25.00   28.00   3.00   1.39
CJV-255       37.00   38.00   1.00   1.69
CJV-255       42.00   43.00   1.00   0.87
CJV-255       55.00   56.00   1.00   2.35
CJV-255       60.00   64.00   4.00   1.01
CJV-255       107.00   108.00   1.00   0.76
CJV-256   9000W   DMZ   51.00   58.00   7.00   8.48
CJV-257   9000W   DMZ   90.00   94.00   4.00   2.46
CJV-257       97.00   104.00   7.00   3.41
CJV-258   1100W   DMZ   55.50   57.50   2.00   0.74
CJV-259   2500W   DMZ   12.00   14.00   2.00   0.84
CJV-259       18.00   20.00   2.00   1.85
CJV-259       25.00   26.00   1.00   1.24
CJV-259       85.50   86.50   1.00   4.29

 

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CJV-259       89.50   90.50   1.00   0.94
CJV-259       98.50   99.50   1.00   1.71
CJV-260   9000W   DMZ   102.00   109.00   7.00   2.87
CJV-260       112.00   133.00   21.00   1.11
CJV-260       138.00   139.00   1.00   2.58
CJV-261   2500W   DMZ   15.00   18.00   3.00   2.18
CJV-261       83.00   84.00   1.00   1.32
CJV-262   1300W   DMZ   12.00   13.00   1.00   0.74
CJV-262       67.00   68.00   1.00   0.75
CJV-262       70.00   71.00   1.00   0.67
CJV-262       122.50   123.50   1.00   1.86
CJV-263   9000W   DMZ   8.00   9.00   1.00   0.55
CJV-263       15.00   16.00   1.00   0.56
CJV-263       147.00   150.00   3.00   1.00
CJV-263       153.00   155.00   2.00   2.42
CJV-263       160.00   162.00   2.00   0.94
CJV-263       175.00   181.00   6.00   1.55
CJV-263       190.00   195.00   5.00   0.53
CJV-263       198.00   203.00   5.00   4.12
CJV-264   1300W   DMZ   12.00   13.00   1.00   0.91
CJV-264       48.50   49.50   1.00   2.85
CJV-264       65.00   66.50   1.50   1.07
CJV-264       77.50   79.50   2.00   0.58
CJV-265   900W   DMZ   138.00   140.00   2.00   1.11
CJV-265       143.00   144.00   1.00   2.12
CJV-265       174.00   179.00   5.00   1.37
CJV-266   1900W   DMZ   24.00   28.00   4.00   3.54
CJV-266       32.00   33.00   1.00   1.50
CJV-266       96.00   97.00   1.00   0.61
CJV-266       122.00   123.00   1.00   0.62
CJV-266       136.00   137.00   1.00   0.68
CJV-267   1500W   DMZ   16.00   18.00   2.00   2.49
CJV-267       22.00   29.00   7.00   8.68
CJV-267       39.00   40.00   1.00   0.89
CJV-267       45.00   67.00   22.00   1.27
CJV-267       72.00   75.00   3.00   1.80
CJV-267       83.00   85.00   2.00   0.84
CJV-267       122.00   125.00   3.00   3.24
CJV-268   8800W   DMZ   9.00   10.00   1.00   0.62
CJV-268       137.00   138.00   1.00   1.00
CJV-269   1900W   DMZ   18.00   23.00   5.00   1.64
CJV-269       71.00   74.00   3.00   0.84
CJV-269       98.00   110.00   12.00   0.61
CJV-269       113.00   116.00   3.00   0.91
CJV-270   1500W   DMZ   14.00   15.00   1.00   5.16
CJV-270       37.00   38.00   1.00   1.28
CJV-270       48.00   52.00   4.00   0.86
CJV-270       60.00   61.00   1.00   0.57
CJV-270       65.00   66.00   1.00   1.18
CJV-270       69.00   70.00   1.00   1.21
CJV-270       72.00   73.00   1.00   0.59
CJV-270       78.00   79.00   1.00   2.12
CJV-270       87.00   90.00   3.00   0.88
CJV-270       96.00   97.00   1.00   6.14
CJV-270       123.00   124.00   1.00   0.58
CJV-271   1900W   DMZ   70.00   73.00   3.00   1.25
CJV-271       89.00   93.00   4.00   0.82
CJV271A   1900W   DMZ   37.00   38.00   1.00   0.91
CJV271A       99.00   100.00   1.00   0.63
CJV271A       103.00   106.00   3.00   0.78
CJV-272   2500W   DMZ   23.00   30.00   7.00   1.51
CJV-272       35.00   36.00   1.00   1.20
CJV-272       45.00   49.00   4.00   1.18
CJV-272       79.00   81.00   2.00   2.36
CJV-272       89.00   90.00   1.00   0.80
CJV-273   2925W   DMZ   9.20   13.00   3.80   1.73

 

- 45 -

CJV-274   2150W   DMZ   16.00   17.00   1.00   1.82
CJV-274       32.00   36.00   4.00   2.13
CJV-274       51.00   54.00   3.00   3.93
CJV-274       58.00   68.00   10.00   4.22
CJV-274       83.00   84.00   1.00   0.66
CJV-274       97.00   98.00   1.00   1.05
CJV-274       101.00   102.00   1.00   1.18
CJV-275   3200W   DMZ   40.00   44.00   4.00   1.86
CJV-275       52.00   53.00   1.00   0.62
CJV-276   10500W   DMZ   22.00   23.00   1.00   1.21
CJV-276       29.00   43.50   14.50   1.83
CJV-276       54.00   55.50   1.50   2.93
CJV-277   10500W   DMZ   11.00   13.00   2.00   1.92
CJV-277       17.50   19.00   1.50   0.72
CJV-277       25.50   28.00   2.50   1.07
CJV-277       38.00   40.00   2.00   0.94
CJV-277       45.00   47.00   2.00   4.60
CJV-278   10500W   DMZ   74.00   75.00   1.00   2.72
CJV-278       80.00   85.00   5.00   2.39
CJV-278       89.00   97.00   8.00   2.49
CJV-279   3450W   DMZ   20.00   21.00   1.00   4.17
CJV-280   10500W   DMZ   26.00   27.00   1.00   0.50
CJV-280       30.00   31.00   1.00   0.51
CJV-280       35.00   36.00   1.00   0.96
CJV-280       65.00   74.00   9.00   0.96
CJV-280       89.00   91.00   2.00   1.79
CJV-280       96.00   98.00   2.00   4.28
CJV-280       110.00   131.00   21.00   4.98
CJV-280       135.00   143.00   8.00   0.50
CJV-280       145.00   146.00   1.00   0.55
CJV-281   10500W   DMZ   24.00   25.00   1.00   0.65
CJV-281       68.00   69.00   1.00   1.12
CJV-281       77.00   81.00   4.00   0.67
CJV-281       94.00   95.00   1.00   0.58
CJV-281       126.00   134.00   8.00   4.83
CJV-281       144.00   150.00   6.00   1.86
CJV-281       153.00   157.00   4.00   5.01
CJV-281       169.00   172.00   3.00   1.23
CJV-281       175.00   176.00   1.00   0.67
CJV-281       180.00   182.00   2.00   0.85
CJV-281       194.00   196.00   2.00   1.95
CJV-282   1400E   DMZ-X   23.00   32.00   9.00   4.13
CJV-282       42.00   48.00   6.00   1.78
CJV-282       55.00   56.00   1.00   0.53
CJV-282       60.00   62.00   2.00   0.64
CJV-282       67.00   68.00   1.00   0.53
CJV-282       71.00   72.00   1.00   2.02
CJV-282       76.00   77.00   1.00   0.81
CJV-283   4850W   DMZ   62.00   72.00   10.00   1.96
CJV-283       75.00   76.00   1.00   0.82
CJV-284   1400E   DMZ-X   32.00   35.00   3.00   4.03
CJV-284       38.00   47.00   9.00   0.58
CJV-284       51.00   53.00   2.00   0.51
CJV-285   1400E   DMZ-X   45.00   48.00   3.00   3.08
CJV-285       113.00   114.00   1.00   1.09
CJV-286   10900W   DMZ   54.00   55.00   1.00   13.70
CJV-286       65.00   66.00   1.00   0.58
CJV-286       70.00   71.00   1.00   4.23
CJV-286       76.00   77.00   1.00   2.76
CJV-286       85.00   101.00   16.00   1.70
CJV-286       106.00   108.00   2.00   1.59
CJV-286       111.00   112.00   1.00   0.65
CJV-286       119.00   120.00   1.00   1.42
CJV-287   1400E   DMZ-X   57.00   58.00   1.00   1.23
CJV-287       90.00   99.00   9.00   6.11
CJV-287       102.00   103.00   1.00   0.58

 

- 46 -

CJV-287       130.00   131.00   1.00   1.11
CJV-287       140.00   142.00   2.00   0.58
CJV-288   11300W   DMZ   87.00   88.00   1.00   1.48
CJV-288       106.00   126.00   20.00   4.29
CJV-288       142.00   143.00   1.00   1.03
CJV-288       150.00   155.00   5.00   6.70
CJV-288       158.00   160.00   2.00   1.45
CJV-289   4850W   DMZ   67.00   73.00   6.00   0.68
CJV-289       76.00   83.00   7.00   5.39
CJV-289       87.00   88.00   1.00   1.05
CJV-289       183.00   189.00   6.00   3.60
CJV-289       194.00   195.00   1.00   3.69
CJV-290   11300W   DMZ   83.00   84.00   1.00   2.34
CJV-290       121.00   129.00   8.00   1.42
CJV-290       132.00   135.00   3.00   0.77
CJV-290       139.00   140.00   1.00   1.19
CJV-290       170.00   171.00   1.00   3.97
CJV-290       183.00   191.00   8.00   3.40
CJV-291   1400E   DMZ-X   86.00   99.00   13.00   5.34
CJV-291       103.00   104.00   1.00   1.22
CJV-292   1400E   DMZ-X   43.00   45.00   2.00   0.66
CJV-292       71.00   75.00   4.00   6.33
CJV-292       94.00   99.00   5.00   7.27
CJV-292       104.00   105.00   1.00   2.04
CJV-292       108.00   126.00   18.00   1.46
CJV-292       135.00   137.00   2.00   1.16
CJV-292       149.00   150.00   1.00   2.49
CJV-292       176.00   177.00   1.00   1.05
CJV-293   11900W   DMZ   61.00   62.00   1.00   1.24
CJV-293       83.00   96.00   13.00   1.92
CJV-293       107.00   113.00   6.00   4.41
CJV-293       125.00   126.00   1.00   1.71
CJV-293       129.00   135.00   6.00   1.32
CJV-293       138.00   141.00   3.00   0.71
CJV-293       144.00   145.00   1.00   0.69
CJV-293       149.00   150.00   1.00   0.82
CJV-293       166.00   167.00   1.00   1.29
CJV-294   900E   DMZ-X   74.00   75.00   1.00   0.94
CJV-294       81.00   82.00   1.00   0.59
CJV-295   11900W   DMZ   73.00   74.00   1.00   1.97
CJV-295       108.00   110.00   2.00   2.02
CJV-295       116.00   117.00   1.00   0.54
CJV-295       127.00   129.00   2.00   1.25
CJV-295       141.00   143.00   2.00   1.03
CJV-295       159.00   160.00   1.00   0.65
CJV-295       167.00   170.00   3.00   6.95
CJV-296   900E   DMZ-X   57.00   58.00   1.00   0.76
CJV-297   1900E   DMZ-X   23.00   27.00   4.00   2.16
CJV-297       30.00   31.00   1.00   1.90
CJV-297       40.00   44.00   4.00   0.96
CJV-297       53.00   54.00   1.00   0.62
CJV-297       70.00   71.00   1.00   0.53
CJV-297       107.00   108.00   1.00   3.50
CJV-298   900E   DMZ-X   48.00   54.00   6.00   0.62
CJV-298       66.00   70.00   4.00   0.85
CJV-298       108.00   109.00   1.00   0.53
CJV-298       142.00   143.00   1,00   2.30
CJV-299   5100W   DMZ   100.00   103.00   3.00   5.00
CJV-299       220.00   223.00   3.00   1.00
CJV-299       228.00   229.00   1.00   2.77
CJV-299       236.00   259.00   23.00   5.03
CJV-300   1900E   DMZ-X   19.00   20.00   1.00   1.04
CJV-300       25.00   30.00   5.00   2.64
CJV-300       36.00   44.00   8.00   1.17
CJV-300       57.00   58.00   1.00   0.50
CJV-300       91.00   97.00   6.00   1.58

 

- 47 -

CJV-300       126.00   131.00   5.00   1.82
CJV-300       145.00   150.00   5.00   3.08
CJV-300       163.00   165.00   2.00   1.57
CJV-301   900E   DMZ-X   18.00   19.00   1.00   2.69
CJV-301       79.00   83.00   4.00   1.64
CJV-301       100.00   101.50   1.50   1.62
CJV-302   1900E   DMZ-X   61.00   62.00   1.00   0.81
CJV-302       77.00   83.00   6.00   11.69
CJV-302       97.00   113.00   16.00   3.91
CJV-303   12700W   DMZ   40.00   42.00   2.00   2.05
CJV-303       48.00   49.00   1.00   0.76
CJV-303       57.00   66.00   9.00   1.51
CJV-303       89.00   90.00   1.00   1.54
CJV-303       93.00   94.00   1.00   0.79
CJV-303       98.00   111.00   13.00   2.19
CJV-303       118.00   119.00   1.00   0.68
CJV-305   400E   DMZ-X   39.00   40.00   1.00   0.58
CJV-305       47.00   49.00   2.00   0.94
CJV-305       79.00   80.00   1.00   1.00
CJV-306   900E   DMZ-X   51.00   52.00   1.00   0.72
CJV-306       76.00   79.00   3.00   1.91
CJV-306       96.00   101.00   5.00   1.04
CJV-306       108.00   109.00   1.00   0.80
CJV-306       112.00   116.00   4.00   2.37
CJV-306       134.00   135.00   1.00   0.60
CJV-306       157.00   159.00   2.00   0.69
CJV-306       195.00   199.00   4.00   0.67
CJV-307   900E   DMZ-X   15.00   16.00   1.00   5.10
CJV-307       52.00   54.00   2.00   11.15
CJV-307       107.00   110.00   3.00   1.13
CJV-307       114.00   116.00   2.00   1.05
CJV-307       126.00   127.00   1.00   0.65
CJV-307       135.00   136.00   1.00   1.62
CJV-307       143.00   149.00   6.00   1.06
CJV-308   2400E   DMZ-X   55.00   57.50   2.50   2.42
CJV-310   2400E   DMZ-X   88.00   89.00   1.00   0.52
CJV-311   2900E   DMZ-X   86.00   87.00   1.00   1.32
CJV-312   5400W   DMZ   107.00   122.00   15.00   1.90
CJV-313   2400E   DMZ-X   39.00   42.00   3.00   1.61
CJV-313       49.00   51.00   2.00   7.58
CJV-313       85.00   86.00   1.00   0.75
CJV-314   12700W   DMZ-I   69.00   74.00   5.00   1.60
CJV-314       77.00   78.00   1.00   0.78
CJV-314       81.00   82.00   1.00   1.28
CJV-314       87.00   89.00   2.00   4.60
CJV-314       93.00   94.00   1.00   1.24
CJV-314       97.00   100.00   3.00   0.60
CJV-314       103.00   104.00   1.00   1.00
CJV-314       116.50   120.00   3.50   1.04
CJV-316   2400E   DMZ-X   49.00   53.00   4.00   1.07
CJV-316       60.00   65.00   5.00   3.96
CJV-316       68.00   80.00   12.00   7.39
CJV-316       84.00   104.00   20.00   2.58
CJV-316       118.00   119.00   1.00   0.77
CJV-316       123.00   124.00   1.00   2.68
CJV-316       180.00   181.00   1.00   0.69
CJV-317   400E   DMZ-X   14.00   18.00   4.00   1.45
CJV-317       32.00   39.00   7.00   1.15
CJV-317       44.00   45.00   1.00   0.62
CJV-317       50.00   54.00   4.00   1.97
CJV-317       71.00   72.00   1.00   1.45
CJV-317       78.00   80.00   2.00   0.63
CJV-317       111.00   112.00   1.00   0.90
CJV-318   400E   DMZ-X   9.00   15.00   6.00   0.84
CJV-318       24.00   25.00   1.00   1.46
CJV-318       30.00   31.00   1.00   1.57

 

- 48 -

CJV-318       34.00   40.00   6.00   2.38
CJV-318       44.00   55.00   11.00   0.78
CJV-318       62.00   65.00   3.00   1.52
CJV-318       69.00   70.00   1.00   2.33
CJV-318       77.00   87.00   10.00   0.89
CJV-319   2400E   DMZ-X   40.00   51.00   11.00   1.72
CJV-319       76.00   77.00   1.00   1.10
CJV-319       79.00   80.00   1.00   0.54
CJV-319       123.00   125.00   2.00   1.14
CJV-319       130.00   131.00   1.00   0.53
CJV-319       147.00   148.00   1.00   1.23
CJV-320       67.00   68.00   1.00   0.52
CJV-320   2400E   DMZ-X   101.00   103.00   2.00   6.61
CJV-321   5400W   DMZ   125.00   127.00   2.00   2.87
CJV-321       147.00   154.00   7.00   3.64
CJV-322   12700W   DMZ   67.00   69.00   2.00   4.09
CJV-322       88.00   89.00   1.00   0.92
CJV-322       95.00   97.00   1.00   5.90
CJV-322       106.00   107.00   1.00   1.65
CJV-322       112.00   113.00   1.00   1.49
CJV-323   400E   DMZ-X   13.00   15.50   2.50   1.28
CJV-323       19.00   20.00   1.00   0.75
CJV-323       33.00   34.00   1.00   3.08
CJV-323       37.00   38.00   1.00   0.81
CJV-323       44.00   45.00   1.00   2.45
CJV-323       59.00   63.00   4.00   1.04
CJV-323       70.00   72.00   2.00   2.56
CJV-323       87.00   89.00   2.00   2.12
CJV-323       112.00   114.00   2.00   3.07
CJV-323       123.00   126.00   3.00   2.44
CJV-323       136.00   137.00   1.00   0.74
CJV-324A   2400E   DMZ-X   28.00   29.00   1.00   10.10
CJV-325   900E   DMZ-X   33.00   34.00   1.00   6.28
CJV-325       45.00   46.00   1.00   0.97
CJV-325       127.00   128.00   1.00   4.27
CJV-325       142.00   143.00   1.00   15.90
CJV-325       168.00   169.00   1.00   0.52
CJV-326   100W   DMZ-X   26.00   28.00   2.00   0.72
CJV-326       89.00   90.00   1.00   1.78
CJV-327   900E   DMZ-X   106.00   110.00   4.00   0.72
CJV-327       114.00   116.00   2.00   0.62
CJV-327       147.00   149.00   2.00   0.62
CJV-328   100W   DMZ-X   46.00   52.00   6.00   5.82
CJV-328       65.00   68.00   3.00   1.51
CJV-328       78.00   79.00   1.00   0.50
CJV-329   400E   DMZ-X   59.00   61.00   2.00   1.03
CJV-329       74.00   77.00   3.00   0.61
CJV-329       89.00   92.00   3.00   1.17
CJV-329       95.00   102.00   7.00   1.64
CJV-329       117.00   130.00   13.00   0.64
CJV-329       135.00   136.00   1.00   0.65
CJV-329       167.00   170.00   3.00   2.87
CJV-330   100W   DMZ-X   6.00   7.00   1.00   0.89
CJV-330       61.00   65.00   4.00   2.91
CJV-330       83.00   86.00   3.00   3.53
CJV-330       95.00   98.00   3.00   2.31
CJV-330       103.00   104.00   1.00   8.18
CJV-330       114.00   120.00   6.00   1.36
CJV-330       134.00   135.00   1.00   1.18
CJV-330       146.00   147.00   1.00   0.69
CJV-331   400E   DMZ-X   14.00   15.00   1.00   1.82
CJV-331       86.00   88.00   2.00   1.23
CJV-331       114.00   115.00   1.00   1.35
CJV-331       117.00   118.00   1.00   0.58
CJV-331       140.00   143.00   3.00   2.21
CJV-332   100W   DMZ-X   6.00   8.00   2.00   2.45

 

- 49 -

CJV-332       76.00   80.00   4.00   3.79
CJV-332       84.00   87.00   3.00   6.92
CJV-332       90.00   91.00   1.00   1.86
CJV-332       113.00   116.00   3.00   3.61
CJV-333   625W   DMZ-X   11.00   13.00   2.00   2.99
CJV-333       29.50   30.50   1.00   0.50
CJV-333       49.50   53.50   4.00   0.80
CJV-333       60.00   61.00   1.00   1.56
CJV-333       70.00   71.00   1.00   0.83
CJV-333       102.00   105.00   3.00   1.09
CJV-333       109.00   110.00   1.00   0.55

5.4.6 Mineralization

The Chinese government reports that analyses of heavy mineral concentrates and examination of polished thin sections indicated that the main metallic minerals are free gold, pyrite, arsenopyrite, stibnite, chalcopyrite, galena and sphalerite. Oxide minerals include limonite, malachite, and antimony oxides. Gangue minerals consist of quartz, feldspar, calcite, clay and sericite. Chemical analyses show this area is characterized by high concentration of Au, S, As, Sb and low concentrations of Ag, Cu, Pb, and Zn.

Mineral textures are described as granular, metamorphic, cataclastic and mortar textures. Structures are described as dissemination and breccias.

On the basis of macroscopic and microscopic studies, paragenesis, type of occurrence and metallogenic character, the mineralization at Dachang is divided into two types: free gold-sulphide-alteration cataclastic rock type, and free gold-pyrite vein type.

The Company has not done any polished section work to confirm the work done by the Chinese government, although visual observation of mineralization exposed by trenching and observed in drill core supports the Chinese conclusions. Additionally, in 2004, the Company completed limited thin section work on selected samples taken from drill holes CJV-6, 7 and 9 to confirm the lithology at Dachang. This work confirmed that the host rocks at Dachang are sedimentary rocks composed of mainly argillite and carbonate rock (micrite) and that the rocks are locally silicified and carbonatized with local evidence of chloritization and sericitization. Disseminated pyrite, arsenopyrite and stibnite are present.

5.4.7 Sampling and Analysis

Exploration at Dachang was conducted with the assistance of numerous professionals from QGSI, working in co-operation with Inter-Citic’s technical team on site and supervised by Garth Pierce, Vice-President of Exploration. Mr. David G. Wahl, P.Eng., P.Geo., acted as the Company’s internal qualified person for the project under the requirements of N.I. 43-101 until approximately July of 2006. Since that time, Mr. B. Terrence Hennessey, of Micon International Limited, has acted as the Company’s independent qualified person for the Project. For 2007 first Mr. Charles Hartley and subsequently Mr. Michael W. Leahey acted as the internal qualified person for the Company.

The sampling program at Dachang included collection of soil samples at designated intervals of established grids, the collection of channel samples of geologically significant intervals exposed by trenching and split core samples over geologically significant intervals intersected during drilling.

In all cases, the sample interval and methodology are consistent with industry standards.

The Company believes that because of its sampling approach any potential impact on the accuracy or reliability of results is minimal, that samples collected are representative of the rock at each site, and that there are no known factors that may have resulted in bias.

 

- 50 -

Soil Samples

Conventional B-horizon soil samples were taken over 214 km2 and tested for gold, arsenic and antimony as part of the geochemical survey done by the Company at Dachang. Samples were taken every 20 m on grid lines established at 200 m intervals, except in Southwest Dachang, where samples were taken every 20 m on grid lines established at 400 m intervals (representing approximately 24 km2 out of 161 km2 tested). This sample density is consistent with the sample density used at Dachang East for base level comparison and is adequate to locate the typical Dachang gold zones. Soil samples were air dried on site and delivered to an independent arm’s length Chinese government laboratory in Xi’an, Shaanxi, China, the Research Center of Xi’an Institute of Geology and Mineral Resources, or to the Qinghai Institute of Rock & Mineral Testing and Application, located in Xining, Qinghai (also independent). Gold content in the soil was determined by analyzing 10 g samples of minus 200-mesh, adding 10 ml 1:1 aqua regia, absorbing with active carbon, reducing to ashes, dissolving in another 5 ml 1:1 aqua regia with gold detection by spectrophotometer. See section 5.4.5.4, above, for additional information with respect to sampling and analysis of soils.

Trench Samples

Trench chip-channel samples were taken at geologically established intervals consistent with the width of each mineralized area exposed in the trench. The sample interval was typically one meter. The individual samples collected over the designated intervals are representative of the material for the respective intervals. The sample interval and collection methodology are consistent with industry standards.

Each of the trenches listed above was excavated on lines spaced variably at a minimum of 40 m to a maximum of 400 m intervals. All trenches sampled in 2006 were excavated by backhoe and most uncovered broken bedrock at depths of 1.5 to 2.5 m, which was typically altered and highly deformed sediments. All trenches are mapped in detail and channel samples are taken at one metre intervals across all mineralized zones. The gold bearing zones intersected coincided with areas of secondary sulphide enrichment in these Triassic sediments.

Samples were collected using 1.0 to 1.5 m chip samples, each weighing approximately 3 to 5 kg. Qualified Chinese geologists and technicians under the direct field supervision of Mr. Garth Pierce, Inter-Citic’s Vice President of Exploration, carry out the trench sampling.

Each sample is secured and transported to the Qinghai Institute of Rock and Mineral Testing and Application, located in Xining, Qinghai, PRC, or to the Research Center of Xi’an Institute of Geology and Mineral Resources located in Xi’an, Shaanxi Province, PRC, both independent arm’s length Chinese government laboratories. At each respective laboratory, each sample is dried, crushed and a portion ground to minus 200 mesh. The gold content of each sample was determined by analyzing a 20 gram sample of the minus 200 mesh material through an aqua regia acid digestion and then analyzed for gold using atomic absorption. Accuracy of the results is tested through the systematic inclusion of standards and replicate samples.

Drill Core Samples

Drill core samples were taken at geologically significant intervals, typically over one metre. Core recovery was in excess of 90%. The designated sample intervals were cut with a diamond saw by qualified technicians. One half of the cut core was selected for assay with the remaining half being placed back into the core box. Care was taken to ensure that neither half of the core represents a bias with respect to the nature and mineral content of the sample. Known certified standards and blanks were routinely inserted into drill core samples of the 2007 program to check the precision and accuracy of the sampling laboratory. The sample interval and methodology are consistent with industry standards. Drill core samples were shipped to SGS Geochemical Laboratories (“SGS”) located in Kunming and Tianjin, China for sample preparation and 50g fire assay with AA finish. SGS is the world’s leading inspection, verification, testing and certification company. Analytical work is performed in accordance with recognized standards such as ASTM, ISO, JIS, and other accepted industry standards. Accuracy of the results is tested through the systematic inclusion of certified reference standards, blanks and duplicate samples.

 

- 51 -

5.4.8 Security of Samples

All of the samples collected at Dachang are stored in a restricted secure storage area. Samples are shipped by truck to Golmud and delivered to Inter-Citic’s courier agent in Golmud for shipment to the various laboratories for analysis. Inter-Citic’s courier agents are present at all transhipment points between Golmud and the laboratories. All the laboratories used by Inter-Citic for drill core analysis are ISO approved and subject to the security protocols of that designation. Exploration at Dachang was conducted with the assistance of the numerous professionals from QGSI, working in co-operation with Inter-Citic’s technical team on site and supervised by Mr. Garth Pierce, Vice-President of Exploration.

5.4.9 Mineral Resources and Mineral Reserve Estimates

In March 2004, Dr. George Cargill, P.Eng prepared an independent N.I. 43-101-compliant technical report on the Dachang Property. As part of his report Dr. Cargill reviewed the QGSI defined inferred mineral resource estimate for the Dachang Main Parcel (specifically within Dachang East) and subsequently reported a N.I 43-101-compliant inferred mineral resource estimate of 5.7 million tonnes grading 7.0 gpt Au (approximately 1.3 million oz of Au contained) as described in the Company’s press releases of December 3, 2003 and March 12, 2004. A copy of Dr. Cargill’s technical report is available from the Company’s website (www.inter-citic.com) or from SEDAR at www.sedar.com.

In addition to the above, on December 12, 2005, the Company reported an additional N.I. 43-101-compliant inferred mineral resource of 1.28 million tonnes grading 5.81 gpt Au (approximately 238,000 oz of Au contained) within the NR-2 Fault Zone, defined along an 800-meter strike length of the fault from surface to vertical depths up to 200 m. The following details the results of an inferred mineral resource estimate on the NR-2 Fault Zone, which was established as a result of exploration work performed by the Company in 2004 and 2005. This resource estimate was completed by David G. Wahl, Inter-Citic’s Vice President of Resource Development and the qualified person for the project under the requirements of N.I. 43-101 at that time, and is in compliance with CIM resource definitions referenced in N.I. 43-101. In June of 2006, the Company prepared an updated technical report for Dachang, which is available from the Company’s website (www.inter-citic.com) or from SEDAR at www.sedar.com.

Trenching and shallow drill testing of the NR-2 Fault Zone has defined a structurally controlled 800 m long zone of gold mineralization to depths up to 200 m. The mineralization remains open at depth and along strike to the west. The inferred mineral resource estimate is based on the results of exploration drilling and trenching programs carried out since September 2004.

The inferred mineral resource estimate incorporates results from the surface trenching program and the results of 13 NQ diamond core holes, totalling 1,747 m. These holes were drilled on sections established at 200 m intervals along the currently known strike of the mineralized zone. Drill sections, incorporating geology and assay results, were drawn across the mineralized zone and a vertical longitudinal section was constructed along strike incorporating the trenching and drilling data. Resource blocks were drawn on the longitudinal using an area of influence equal to one half of the distance from the nearest data point. The resource blocks were extended to depth and along strike equal to one half of the distance from the nearest data point. Block areas were estimated and subsequently the resource block volumes estimated using the horizontal thickness of the mineralized intersection, which established the pierce point for the drill hole on the longitudinal. Resource tonnage for the individual blocks was estimated using a density of 2.7. The density was estimated based on tests completed during Dr. Cargill’s review of the Dachang East Resource estimation. Given the similarity in geology between NR-2 Fault Zone and Dachang East a new density was not used for the NR-2 Fault Zone resource estimate. These drill intersections and resource block details are tabulated on the Company website (www.inter-citic.com) along with the longitudinal section used for the estimate.

 

- 52 -

This estimate of inferred mineral resources is not affected by any known environmental, permitting, legal, title, taxation, socio-political, marketing or other relevant issues except to the extent discussed generally in this AIF.

This inferred mineral resource has not been sufficiently drilled to demonstrate economic viability. Additional drilling will be required to upgrade this inferred mineral resource to an indicated or measured resource. There can be no certainty that further drilling will enable this inferred mineral resource to be upgraded.

The 2007 drilling and trench data is currently being reviewed, plotted, and interpreted so an updated resource on the Main Zone and potential of the Main Zone Extension can be produced.

5.4.10 Exploration and Development

The Company intends to follow-up on gold discoveries to date at Dachang during the balance of 2008. It is anticipated that mechanical trenching will continue to “in-fill” areas of known mineralization, as well as to test previously untested geochemical anomalies. In 2008, the Company also intends to continue to diamond drill test known zones of mineralization with a view to further advancing the Project to feasibility, and to continue to test areas of newly discovered mineralization based on results of trenching.

5.5 The Zalantun Gold Project

The Zalantun Gold Project is not considered material to the Company.

5.6 Specialized Skill and Knowledge

As an exploration company the Company relies heavily on the availability of individuals and organizations with the necessary skill and knowledge required to execute exploration programs of the scale and scope appropriate to its exploration properties. This includes individuals and organizations that are capable of executing exploration works (such as drilling), compiling and interpreting data, and planning subsequent follow-up work effectively and efficiently.

The Company has established a special advisory committee to continually evaluate and address issues of expertise at the Company’s disposal. The Company’s Vice-President, Exploration has more than 20 years of experience as an exploration geologist. The Company has a qualified and experienced geologist on its Board of Directors, and the Company has an established relationship with a North-American based drilling company that has been active in carrying out the Company’s drilling program at Dachang. In addition, the Company has relationships with a number of organizations that have also provided services essential to its exploration activities.

The Company has a high degree of reliance on its management team, and failure to retain the services of key personnel could have a materially negative impact on the Company.

While the market for these services has improved significantly over the past several years (see discussion below), the Company has been successful in securing services necessary to carryout its business plan to date. Availability of these services in the future and the relative cost of securing them cannot be predicted.

5.7 Competition

Recent increases in the price of gold have resulted in increased activity in the gold exploration and mining industry. Combined with the economic development and opening of China and general scarcity of mineral deposits throughout the world, interest of foreign exploration and mining companies in China has increased significantly. As a result, the Company faces continued competition for financing dollars, personnel and other resources from this competition, the impact of which cannot be predicted. Historically, gold prices are often subject to wide swings in price and can be cyclical in nature, and demand for gold is based on many factors, including demand for jewellery, many industrial uses for gold, as well as demand from governments and financial institutions that hold gold reserves for hedge and other purposes.

 

- 53 -

5.8 Environmental Protection

The Dachang Gold Project is located in the proximity of the Sanjiangyuan Nature Reserve, established primarily to protect the sources of three major rivers in Asia (the Yangtze, Yellow and Lancang Rivers). To date, the project has received all relevant government support and approvals, and the Company is committed to preserve and protect the environment within which it operates, and has a policy of adopting and applying the highest standards for environmental protection in its operations, in addition to being active in the betterment of the lives of local people. However the impact of possible future liabilities or impediments to development associated with or as a result of environmental matters cannot be measured or predicted, and there is no assurance that present or future environmental regulations will not adversely affect the operations of the Company.

5.9 Resale of Shares

The continued operation of the Company will be dependent upon its ability to generate operating revenues and to procure additional financing. There can be no assurance that any such revenues can be generated or that other financing can be obtained. If the Company is unable to generate such revenues or obtain such additional financing, any investment in the Company may be lost. In addition, sales or availability for sale of substantial amounts of the shares of the Company could adversely affect the prevailing market prices for those shares. In such event, the probability of resale of shares purchased would be diminished. Moreover, a decline in the market prices of our shares could impair our ability to raise additional capital through the sale of shares should the Company attempt to do so.

Exploration and development of mineral properties, and as a result investing in the shares of the Company, involves a high degree of inherent risk. The marketability of the natural resources that may be discovered will be affected by numerous factors beyond the control of the Company. The return, if any, on the investment in shares of a resource company is subject to market conditions that are beyond the control of the Company. Some of the factors affecting resource exploration and development include the proximity and capacity of resource markets and processing equipment, government regulations, including regulations relating to prices, taxes, royalties, land tenure and land use, importing and exporting minerals and environmental protection, and the effect of these and other risk factors as discussed above cannot be predicted.

5.10 Canadian Corporate Governance Requirements and Securities Laws

The Company complies with the corporate governance and securities laws of Canada, which may differ from those of the United States and elsewhere.

ITEM 6: Dividends

The Company has not paid any dividends since incorporation. It has no plans to pay dividends for the foreseeable future, although there are no restrictions that would prevent the Company from paying dividends.

ITEM 7: Description of Capital Structure

The authorized capital of the Company consists of 98,500,000 common shares without par value, of which 67,579,912 were issued and outstanding as at November 30, 2007, and 76,260,108 were issued and outstanding as at February 22, 2008. Each common share is entitled to one vote at meetings of shareholders, and carries with it equal rights with respect to dividends and residual interests upon dissolution of the Company. There are no additional rights associated with the common shares of the Company.

 

- 54 -

The Company has one stock-based compensation plan as at the date of this report, a common share-purchase option plan for directors, officers, employees and consultants of the Company (the “Plan”). Options under the Plan are typically granted in such numbers as to reflect the level of responsibility of the particular optionee and his or her contribution to the business and activities of the Company, typically vest immediately and have a five-year term. Except in specified circumstances, options are not assignable and terminate upon the optionee ceasing to be employed by or associated with the Company. As at the date of this AIF there are 4,070,000 stock options, each of which is convertible to one common share of the Company at a weighted average price per stock option of $1.04, for a weighted-average period per stock option of 1.93 years. Exercise prices range from $0.58 to $1.95.

The Company has issued share-purchase warrants in connection with its financing activities. As at the date of this AIF, there are 9,262,141 share-purchase warrants, each of which is convertible to one common share of the Company, as follows:

 

  (i) 5,601,654 share-purchase warrants that entitle the holder to acquire one common share of the Company at a price of $1.20 until March 22, 2008, and

 

  (ii) 236,834 share-purchase warrants that entitle the holder to acquire one common share of the Company at a price of $1.00 until March 22, 2008, and

 

  (iii) 149,753 share-purchase warrants that entitle the holder to acquire one common share of the Company at a price of $1.50 until May 9, 2008, and

 

  (iv) 2,420,300 share-purchase warrants that entitle the holder to acquire one common share of the Company at a price of $1.95 until May 9, 2008, and thereafter at a price of $2.25 until November 9, 2008, and

 

  (v) 373,600 share-purchase warrants that entitle the holder to acquire one common share of the Company at a price of $1.95 until May 17, 2008, and thereafter at a price of $2.25 until November 17, 2008, and

 

  (vi) 480,000 share-purchase warrants that entitle the holder to acquire one common share of the Company at a price of $2.00 until February 5, 2009

ITEM 8: Market for Securities of the Company

On August 3, 2006, the Company’s common shares were listed on the Toronto Stock Exchange under the trading symbol “ICI” (prior to August 3, 2006, the Company’s common shares were listed on the TSX Venture Exchange under the same trading symbol).

8.1 Trading Price and Volume

The following is a summary of trading activity for the 2007 fiscal year (all prices in Canadian dollars):

 

Month

   High   Low   Volume
December 2006   $ 1.05   $ 0.75   2,192,200
January 2007   $ 1.30   $ 0.87   2,334,300
February 2007   $ 1.85   $ 1.19   3,931,900
March 2007   $ 1.64   $ 1.30   2,179,400
April 2007   $ 1.50   $ 1.28   1,412,900
May 2007   $ 1.46   $ 1.22   1,363,300
June 2007   $ 1.49   $ 1.27   783,700
July 2007   $ 1.75   $ 1.30   1,538,700
August 2007   $ 1.51   $ 1.19   902,600

 

- 55 -

September 2007   $ 1.55   $ 1.19   2,815,700
October 2007   $ 1.93   $ 1.37   2,433,100
November 2007   $ 2.50   $ 1.80   3,355,500

8.2 Prior Sales

During the 2007 fiscal year, the Company issued 1,160,000 stock options with a weighted average strike price of $1.30 and a weighted average remaining life of 3.1 years as at November 30, 2007, and 3,133,016 share-purchase warrants, as follows:

 

  (i) 289,116 share-purchase warrants that entitle the holder to acquire one common share of the Company at a price of $1.50 until May 9, 2008, and

 

  (ii) 2,470,300 share-purchase warrants that entitle the holder to acquire one common share of the Company at a price of $1.95 until May 9, 2008, and thereafter at a price of $2.25 until November 9, 2008, and

 

  (iii) 373,600 share-purchase warrants that entitle the holder to acquire one common share of the Company at a price of $1.95 until May 17, 2008, and thereafter at a price of $2.25 until November 17, 2008, and

Additional details with respect to the Company’s share-purchase warrants, stock options, and private placement financings can be found in the Company’s Financial Statements for the year ended November 30, 2007, available from the Company’s website (www.inter-citic.com) or from SEDAR at www.sedar.com.

ITEM 9: Escrowed Securities

As of the date of this report none of the Company’s securities were held in escrow.

ITEM 10: Directors and Officers, Corporate Governance and Board Committees

 

Name and

Jurisdiction of

Residence

   

Director/Officer

Since

   

Position(s)

with

Corporation

   

Principal Occupation During

Past Five Years

   

Approximate

Number of

Common Shares
Beneficially

Owned Directly or
Indirectly or

Over Which

Control or

Direction is

Exercised as at
the Date Hereof

Donald W. Brown [1][2][3]

Toronto, Ontario

    October 2006    Director    Managing Director, Catalyst Strategies Inc., of Toronto    5,000

Scott C. Dorey

New York, USA

    March 2003    Director    Vice-President of Lehman Brothers Inc., of New York    208,500

Mark R. Frederick [2][3]

Ontario, Canada

    March 2000    Director and Chairman of the Board of Directors    Barrister & Solicitor, Miller Thomson LLP, of Toronto    Nil

Adrian Pedro K.H. Ho [2]

Hong Kong, China

    May 2004    Director    Investment Banker, Kuentai Investors Limited, of Hong Kong    Nil

Carlos K. H. Ho [1][3][5]

Hong Kong, China

    December 2002    Director    Investment Banker, Kuentai Investors Limited, of Hong Kong    Nil

Stephen Lautens

Ontario, Canada

    November 2006    Secretary    Vice-president, Corporate Communications of Inter-Citic Minerals Inc., of Toronto    6,500

 

- 56 -

James J. Moore [4][6]

Ontario, Canada

    May 1997    Director, President and CEO    President, CEO and Director of Inter-Citic Minerals Inc., of Toronto    131,111

Lou Pasubio, C.A.

Ontario, Canada

    December 2000    CFO    Vice-president, Finance and CFO of Inter-Citic Minerals Inc., of Toronto    5,500

Michael Doggett

British Columbia, Canada

    February 2008    Director    Mineral Economics Consultant Director of the Mineral Exploration Program, Queen’s University    Nil

Peter Tang [1][6]

British Columbia, Canada

    June 1993    Director and Secretary    Certified Accountant, Director, SSAB Swedish Steel, Ltd., of Vancouver    10,000

Rick Van Nieuwenhuyse

British Columbia, Canada

    June 2004    Director    President, CEO and Director of Nova Gold Resources Inc., of Vancouver (Mining)    Nil

 

[1] Members of the Audit Committee.

The Audit Committee is comprised of three independent directors. Each director is financially literate. Please see above as well as the Company’s website at www.inter-citic.com for particulars on the experience and education of the members of the Audit Committee that is relevant to the performance of his responsibilities as an audit committee member.

The Audit Committee is responsible for overseeing financial reporting, internal controls and public disclosure documents, as well as recommending the appointment of our external auditors, reviewing the annual audit plan and auditor compensation, approving non-audit services provided by the external auditor, reviewing hiring policies regarding auditors and evaluating our risk management procedures/systems. The Audit Committee has adopted an Audit Committee Charter that reflects these and other responsibilities, including policies that requires its pre-approval of audit, audit-related, tax and non-audit services to be provided by the Company’s auditors. The Charter for the Audit Committee, incorporated by reference in this AIF, was adopted by the Company on March 16, 2005 and is available in the 2007 Management Information Circular of the Company from www.sedar.com.

The aggregate fees billed for professional services rendered by our auditors, PricewaterhouseCoopers LLP, to us for the years ended November 30, 2007 and 2006 are as follows:

 

     2007    2006

Audit

    $ 75,000    $ 70,200

Tax

      —        —  

All other fees

    $ 20,000    $ 60,000

Total

    $ 95,000    $ 130,200

 

[2] Members of Governance and Nominating Committee

The Company’s Governance and Nominating Committee is comprised of three independent Directors. The Terms of Reference for the Governance and Nominating Committee was adopted by the Company on November 1, 2006 and is available from the Company’s website at www.inter-citic.com.

 

[3]

Members of Compensation Committee

The Company’s Compensation Committee is comprised of three independent Directors. The Compensation Committee develops, reviews and monitors director and executive compensation and policies. The Committee is responsible for annually reviewing the compensation of directors and officers, and making its recommendations to the Board. The Terms of Reference for the Compensation Committee, incorporated by reference in this AIF, was adopted by the Company on November 1, 2006 and is available from the Company’s website at www.inter-citic.com.

 

[4]

Director of the following subsidiaries of the Company: Bay Roberts Resources Ltd.

 

[5]

Director of the following subsidiaries of the Company: Inter-Citic Holdings Ltd.

 

[6]

Director of the following subsidiaries of the Company: Bay Roberts Resources Ltd.

 

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Additional notes:

 

  (a) Each of the directors listed above is now a director of the Corporation and was so elected at the preceding Annual General Meeting of Shareholders until the next Annual General Meeting of Shareholders, with the exception of Michael Doggett, who joined the Board of Directors in February, 2008.

 

  (b) As at the date of this AIF, the directors and officers of the Company beneficially owned, directly or indirectly, as a group, 366,611 common shares of the Company representing approximately 0.5% of issued and outstanding common shares of the Company.

 

  (c) As at the date of this AIF, the directors and officers of the Company beneficially owned, directly or indirectly, as a group, 3,145,000 stock options (representing approximately 77.0% of issued stock options) of the Company with a weighted average strike price of $1.04 and a weighted average remaining life of 1.9 years.

 

  (d) None of the directors or officers of the Company have been or are subject to a cease trade order, insolvency proceedings or securities penalties or was with an issuer subject to a cease trade order, insolvency proceedings or securities penalties.

ITEM 11: Promoters

Not Applicable.

ITEM 12: Legal proceedings

To the Company’s knowledge, there are no current or contemplated legal proceedings to which the Company is a party or of which any of its properties is the subject.

ITEM 13: Interests of Management and Others in Material Transactions

No director or executive officer of the Company, any person that is the direct or indirect beneficial owner of, or who exercises control or direction over more than 10% of the Company’s common shares, or any associate or affiliate of them, has any material beneficial interest, in any transaction since the commencement of the Company’s third preceding financial year or in any proposed transaction, which has or will materially affect the Company.

ITEM 14: Transfer Agents and Registrars

The Transfer Agent and Registrar of the Company is Computershare Trust Company of Canada, 3rd Floor, 510 Burrard Street, Vancouver, British Columbia, V6C 3B9.

ITEM 15: Material Contracts

The Company has not entered into any material contracts other than in the normal course of business during the most recently completed financial year, or before January 1, 2002 and which are still in full force and effect, with the exception of the Company’s agreements for Zalantun and Dachang, as discussed in detail herein.

ITEM 16: Interests of Experts

The Company’s auditor is PricewaterhouseCoopers, LLP. The Company’s N.I. 43-101-compliant technical reports for Dachang and Zalantun were prepared by Dr. George Cargill, Ph.D., P.Eng (of Cargill Consulting Geologists Limited). Mr. B. Terrence Hennessey, of Micon International Limited, is the Company’s independent qualified person for its mineral projects.

 

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As of the date of this report, none of Dr. George Cargill, Mr. B. Terrence Hennessey, Cargill Consulting Geologists Limited or any directors, officers, employees and partners thereof, or Micon International Limited or any directors, officers, employees and partners thereof, respectively, received or has received a direct or indirect interest in the property of the Company or beneficially own, directly or indirectly, more than 1% of the securities of the Company and its associates and affiliates, nor is it expected that any director, officer, partner or employee these organizations will be elected, appointed or employed as a director, officer or employee of the Company or any of associates or affiliates.

ITEM 17: Additional Information

Additional information related to the Company is available from SEDAR at www.sedar.com or from the Company’s website at www.inter-citic.com.

Additional information with respect to directors’ and officers’ remuneration and indebtedness, principal holders of the Company’s securities, options to purchase securities, and interests of insiders in material transactions, if applicable, is contained in the Company’s information circular for its most recent annual meeting of shareholders that involved the election of directors. Additional financial information is also provided in the Company’s comparative financial statements and Management’s Discussion and Analysis for its most recently completed financial year, the year ended November 30, 2007.

The Company will provide to any person or Company copies of this AIF and other information including comparative annual financial statements, quarterly reports, information circulars, or any other document otherwise referred to herein. Copies of these documents may be obtained upon request from the Corporate Secretary of the Company at 60 Columbia Way, Suite 501, Markham, Ontario, Canada, L3R 0C9.

 

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ITEM 18: Glossary of Technical Terms

 

Au:    chemical symbol for gold.
Ag:    chemical symbol for silver.
alunitization:    the introduction, alteration to or replacement by alunite, a basic potassium aluminium sulphate mineral.
anomaly (ies):    a departure from the expected or normal; a geological feature, in the subsurface, distinguished by geological, geophysical or geochemical means, which is different from the general surrounding and is often of potential economic value.
arsenopyrite:    a tin-white sulphide of iron, FeAsS.
B-horizon soil samples:    natural occurring soil has a distinct soil profile designated by layers as A, B, C and D, each distinguishable from adjacent layers by characteristic physical properties such as structure, color or texture, or by chemical composition, including content of organic matter or degree of acidity or alkalinity. B horizon is typically used for soil geochemical sampling because it has maximum accumulation of silicate clay minerals, or of iron and organic matter; maximum development of blocky or prismatic structures.
Bi:    Chemical symbol for bismuth.
CBx Thrust Fault:    carbonate breccia thrust fault that transects the Main Parcel.
calcareous:    a sedimentary rock containing an appreciable amount of calcium carbonate, such as limestone.
cataclastic:    a rock, such as a tectonic breccia, containing angular fragment that have been produced by the crushing and fracturing of pre-existing rocks as a result of mechanical forces in the crust.
carbonitization:    the introduction, alteration to or replacement by carbonate minerals.
chalcopyrite:    a sulphide mineral of copper and iron, CuFeS2.
continental margin mobile belt:    a long relatively narrow crustal region of tectonic activity, measured in scores of miles, which at Dachang was active during the collision of the India plate with the China plate, which is believed to have occurred 45 million years ago. The Himalayan Mountains were formed as a result of this collision between 25 and 10 million years ago.
Cretaceous:    the final period of the Mesozoic era, thought to have covered the span of time between 135 and 65 million years ago.
Cu:    chemical symbol for copper.
dip:    the angle at which a bed, stratum or vein is inclined from the horizontal.
epidotization:    the introduction, alteration to or replacement by epidote, a basic silicate mineral of aluminium, calcium and iron.
fault:    a feature or a zone of fractures along which there has been displacement of the sides relative to one another parallel to the fracture.
fault gouge:    soft, uncemented pulverized clayey or claylike material, commonly a mixture of minerals in finely divide form found along some faults or between the walls of a fault, and filling or partly filling a fault zone; a slippery mud that coats the fault surface or cements the fault breccia.

 

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fault breccia:    a tectonic breccia composed of angular fragments resulting from the crushing, shattering, or shearing of rocks during movement on a fault, from friction between the walls of the fault, or from distributive ruptures associated with a major fault.
g (gram):    unit of mass in metric system equal to 0.032 troy ounces.
g-m (gram-metre):    the product (grams x metre) is used to weight gold assay and respective interval for contour format presentation.

gpt or g/t

(gram per tonne):

    unit of mass per tonne of material.
galena:    a lead sulphide mineral, PbS.
gossan:    a ferruginous deposit filling the upper parts of mineral veins or forming a superficial cover on masses of pyrite.
granite:    a coarse grained igneous rock.
GPS:    global position system.
heavy minerals:    the accessory minerals of a sedimentary rock of high specific gravity.
hematitization:    the introduction or replacement by hematite, one of the most common ores of iron, Fe2O 3.
igneous rock (s):    rock formed by the solidification of molten material that originated within the earth.
inferred mineral resource (s):    an inferred mineral resource is that part of a mineral resource for which quantity and grade or quality can be estimated on the basis of geological evidence and limited sampling and reasonable assumed, but not verified, geological and grade continuity. The estimate is based on limited information and sampling gathered through appropriate techniques for locations such as outcrops, trenches, pits, working and drill holes
intrusive rocks:    An igneous rock while molten, penetrated into or between other rocks, but solidifying before reaching the surface. (“intrusive(s)”)
Jurassic:    the second period of the Mesozoic era, thought to have covered the span of time between 190 and 135 million years ago.
kaolinization:    the introduction, alteration to or replacement by kaolin, a common clay mineral.
km, km2:    kilometre, square kilometre.
limonite:    hydrous ferric oxide mineral, FeO(OH)-nH2O.
lode gold deposits:    a mineral deposit consisting of a zone of veins, veinlets, disseminations or planar breccias; a mineral deposit in consolidate rock as opposed to placer deposits.
m, m3:    metre, cubic metre
malachite:    a green, basic cupric carbonate mineral, [Cu2(OH)2CO3].
Mesozoic:    an era of geologic time, from the end of the Paleozoic to the beginning of the Cenozoic, or from about 225 to about 65 million years ago.
mineral resource (s):    mineral resources are sub-divided, in order of increasing geological confidence, into Inferred, Indicated and Measured categories, An inferred mineral resource has a lower level of confidence than that applied to and indicated mineral resource. An indicated mineral resource has a higher level

 

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   of confidence than an inferred mineral resource but has a lower level of confidence than the measured mineral resource. A mineral resource is a concentration or occurrence of natural, solid, inorganic or fossilized organic material in or on the earth’s crust in such form and quantity and of such a grade or quality that it has reasonable prospect for economic extraction. The location, quantity, grade, geological characteristic and continuity of a mineral resource are known, estimated or interpreted form specific geological evidence and knowledge.
N.I. 43-101:    National Instrument 43-101 Standard of Disclosure for Mineral Properties
normal fault:    a fault in which the hanging wall appears to have moved downward relative to the footwall. The angle of the fault is usually 45-90 degrees.
NQ:    diamond drill coring bit size, which produces drill core 46.6mm (1.875 inches) in diameter,
NR-2 Fault Zone:    fault zone related to the North River 2 geochemical anomaly.
oz (troy ounce):    unit of mass in the imperial system equal to 31.103 grams.
Palaeozoic:    an era of geologic time, from the end of the Precambrian to the beginning of the Mesozoic, or from about 570 to about 225 million year ago.
Permian:    the last period of the Paleozoic era, thought to have covered the span of time between 280 and 225 million years ago.
placer gold:    a surficial gold deposit formed by mechanical concentration to gold particles from weathered debris.
ppb:    parts per billion.
ppm:    parts per million.
porphyry:    a term given to describe the texture of an igneous rock, exhibiting coarse mineral crystal in a finer grained ground mass; the resulting texture is referred to as porphyritic
Precambrian:    equivalent to about 90% of geologic time and has been divided according to several different systems, all of which use the presence or absence of evidence of life as a criterion (i.e. older than 570 million years).
pyrite:    “fools gold” iron disulphide, FeS2.
pyritization:    introduction or replacement by, pyrite.
reverse fault:    a fault that dips toward the block that has been relatively raised.
sandstone:    a cemented sedimentary rock composed predominantly of sand grains sedimentary rock (s): rocks formed by the accumulation of sediment in water or from air. The sediment may consist of rock fragments or particles of various sizes.
sericitization:    the introduction or replacement by sericite muscovite, a white platy mineral.
shale:    a laminated sedimentary rock, in which the constituent particles are predominantly of clay.
silicification:    the introduction or replacement by silica, generally resulting in the formation of fine-grained quartz, which may fill pores and replace existing minerals.
siltstone:    rock type intermediate in character between shale and sandstone.
stibnite:    lead-grey mineral of antimony, Sb2S3.

 

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strike:    the coarse or bearing of the outcrop of an inclined bed or structure on a level surface.
thrust fault:    a fault with a dip of 45 degrees or less over much of its extent, on which the hanging wall appears to have moved upward relative to the footwall.
tonne (metric tonne):    unit of mass and weight that equals 1,000kgs, which is equivalent to 2,200 pounds.
Triassic:    the first period of the Mesozoic era, though to have covered the span of time between 225 and 190 million years ago.
volcanic rock (s):    Any rock of volcanic origin; volcanic igneous rocks are those erupted as molten masses, forming lava flows, dikes in the crater walls, volcanic plugs etc.
W:    chemical symbol for tungsten.
Zn:    chemical symbol for zinc.

 

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