"Under the supervision of Dr. Clyde Davis, Disturbance Permits were received for several 5 acre parcels from the Bureau of
Land Management resulting in the drilling during the year of nine holes between 120 and 200 feet in depth and one hole to 510
feet. Assays reported the presence of gold at all depths. Results ranged from a low of .171 ounces per ton to a high of .314
ounces per ton. Differences in expert opinion exist as to what methods of analysis to use, whether the deposit is homogeneous
throughout and what metals, if any, are present, and if present, of what grade. As a result of a dispute over assays received
from Sierra Laboratories, the Alberta Stock Exchange halted trading of the Company's stock and subsequently suspended the
Company's stock from trading pending independent verification of these results. The Alberta Stock Exchange retained
Associated Mining Consultants Ltd. To review assay results and, with the co-operation of the Company, drilled one hole on
the Franklin Lake Property. Drill material was shipped to Chemex Laboratories, Loring Laboratories and Ledoux &
Company. Associated Mining Consultants Ltd. Concluded that conventional fire assay analysis of the samples with both a
gravimetric and a atomic absorption finish indicate that there are no significant gold concentrations present in the samples
obtained under Chain of Custody from the Franklin Lake Project and that the Company's samples do not contain gold in
concentrations above .005 oz/ton. Associated Mining Consultants Ltd. went on to advise that during the demonstration of the
Company's assay procedure at Ledoux & Company's laboratory the samples reported gold values but claimed that this could
be completely explained by the presence of gold in the wash fluxes. In response, Ledoux & Company issued a report
criticizing the conclusions of Associated Mining Consultants Ltd. Shortly after, Ledoux & Company issued a second report in
respect to work completed in the presence of Associated Mining Consultants Ltd. During the week of September 30, 1996,
the results of this work are set out in the table below: "
PS'My dog is ok, it was just indigestion. |
