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Gold/Mining/Energy : Consolidated Silver Tusk Mines Ltd.

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To: Ronald Russell who wrote (2134)2/29/2000 6:17:00 PM
From: Brian MacDonald   of 2229
 
2/29/00 -
Activities Taking Place on PT Karya Bukit Utama Property

CONSOLIDATED SILVER TUSK MINES, LTD. ("CKS-V;CSITF-L") - Activities Taking Place on PT Karya Bukit Utama Property

Consolidated Silver Tusk Mines, Ltd (CKS) is pleased to offer the following information pertaining to activities taking place on the PT Karya Bukit
Utama (KBU) property in Indonesia.

Induced Polarization Survey.

A 25-meter dipole-dipole array Time Domain Induced Polarization (TDIP) survey was performed on the property by P.T. Geoservices (Ltd.), an
Indonesian national exploration services company based in Bandung, Indonesia. The base line runs north south, and has ten traverses aligned in an
east-west direction totaling 6,325 meters with 100-meter line separation. The grid used is the same grid that was used for the magnetic, VLF-EM and soil
surveys. Zonge equipment was used, comprising a transmitter GGT-3 attached to a 3 KVA motor generator, and GDP-16 receiver. The equipment was
operated in the time domain mode using the dipole-dipole array electrode configuration. The output plots are contours of apparent resistivity,
chargeability, and metal factor versus depth. The profiles provide detail to 100 meters depth.

The distributions of apparent resistivity values in the survey area suggest that they can be conveniently grouped into two extreme groups and an
intermediate population. Lower resistivities as well as higher apparent resistivities may be of interest. There are 3 prominent high resistivity zones, which
do not strictly follow known geological boundaries (please refer to the News Release dated February 9th, 2000). One zone, "Zone A", traversing the
length of the surveyed grid and on strike with the South Gate Trench and the Cookhouse Trench appears to be a fairly discrete body and may be caused
by a swarm of quartz veins, perhaps emplaced along a fault zone. Chargeability often reflects the presence of metallic sulphides. There is a clear
correspondence between the elongated zones of relatively high chargeability and those of high apparent resistivity on the surveyed grid. The steep quartz
veins or silicified sheet like bodies indicated by the high apparent resistivity values may give high chargeability because they contain moderate amounts of
sulphides. There is an anomaly at the eastern end of line 10400N. This is known to trend off the grid to the northeast. The westernmost anomaly also
trends off the end of coverage. The zones of anomalous IP response appear to be structurally controlled. It is suspected that the main portion of Zone A
is controlled by a north--south fault because of the non-vertical dip on the body.

Topographic Survey

Chain and compass work by the geological staff revealed the need for a proper topographic survey of the property. This was begun in late 1999. It
appears that existing topographic maps and information were derived from government maps, which are not accurate at the scale required for the project.

Tests for Specific Gravity

A 26.7-kilogram sample of broken rock from an ore stockpile was tested on site for density using scales and water to fill in open spaces in the sample.
The material is calculated to have a density of 2.13 g/cm3. There is also a KBU mine longitudinal where, in planning for a raise to surface, there are
tonnage and volume figures which equate to 2.0 T/m3.

Process Plant Improvements

During the 3rd and 4th quarters of 1999, various improvements were made to the process plant, situated on the property. These include:

- The addition of a 24-inch short head cone crusher. This has been added into the circuit to replace the previously installed kinetic crusher, and to
generally upgrade the crushing circuit to handle problematic oversize.

- The increase in plant throughput has been dramatically increased. This increase was achieved by the replacement of the sprocket on the apron feeder. In
addition, circulating water loads have been reduced, together with the installation of new liners/lifters in the trommel.

- An increase in on-site power generation by replacement of the existing 300 kw Komatsu based diesel powered generator, by a Deutz powered, 400
kw generator. The Komatsu unit had reached the state of a major overhaul, costing more than the price of the reconditioned unit from Jakarta.

- In addition, basic equipment requirements for setting up an on-site laboratory to assay for gold/silver were purchased from a supplier in Canada. A
quantity of 4 inch and 6-inch plastic tailings pipe, plus an additional shaking table and sundry motors, have been obtained from a recently shut down
operation in Sumatra.

The Company has already identified several pieces of additional equipment that might be required to complete the plants new flow sheet, which is
currently under review and subject to the results on test work done by Process Research Associates, Ltd. TEL: (604) 602-1088

William Van der Merwe, Vice President -

Finance & Administration

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