Good afternoon to you all. Pursuant to our attendance at the Montreal Mining Conference, please find enclosed the following update with respect to MIQ. The update is broken down into 3 sub-headings for your convenience.
1] 1998 Drill Program
The 1998 drill program will begin at LT East, followed by Elliot High Ranch and then Bunker Hill. Keep in mind this is the plan as laid out by Kinross and is always subject to change. Both MIQ and Kinross chose to begin with the new discovery sights due to the fact there is more gold mineralization information available on these areas, which means drilling can begin sooner. Furthermore, the situation at Elliot High Ranch also allows for step-out drilling.
The company advises that Kinross will spend a minimum of $1.6 Million on exploration at Railroad this year and most of that will be spent on actual drilling. The company estimates a total of 45,000 feet of drilling will take place at Railroad, based on these figures. Naturally, Kinross may elect to spend beyond their minimum but there is no way to make any determination at this point in time.
The company is excited about the upcoming drilling program and is encouraged by the remarks made by Kinross in their latest press release regarding Railroad. For your convenience, we enclose those remarks:
"Data compilation is nearly complete for the Railroad project located at the southern end of the Carlin Trend in Nevada. Several high quality targets have emerged on the 55 square mile property."
2] 1997 Drilling Program
SUMMARY OF RESULTS
The company advises that Railroad was essentially drilled in reconnaissance style drilling, which basically means they were drilling short and shallow holes. This style of drilling is mainly designed for determining geographical parameters, as opposed to direct ore mineralization drilling, and is meant to look for angles directions, thickness of layers and so on.
Despite this style of drilling, the company was able to make 3 new discoveries, enhanced the potential of POD and discovered (from the last set of drill results) potential new zones that had never been contemplated.
In their press release of May 5, MIQ released further drill results from their 1997 drilling campaign. Please refer to that press release for more specifics. The company advises this last set of drill results was scattered and further proves the potential of Railroad to find not just one but a number of large Carlin style ore bodies.
Given this information, the company is encouraged when adding the comments made by Kinross in their annual report, which have been enclosed below for your convenience:
"In 1996, in response to the exuberance of the market, when exploration plays
were taken to levels that made acquisitions impossible, we hired as
Vice-President of Exploration Bob Schafer, a veteran explorations geologist
who was charged with the task of establishing an exploration team and
finding high-caliber targets on a rather small budget. Last year through
the efforts of Bob and his staff, we examined numerous projects and settled
on two: the Wilson Creek project in the Atalanta district of Nevada, where
we are earning a 60% interest by spending $5 million over four years, and
the Railroad deposit at the south end of the Carlin trend, where Kinross is
earning a 50% interest by spending $7 million over four years".
AND
"Kinross carries out exploration for two essential reasons: to replace
exhausted resources and to discover new ore bodies to provide future growth
for the company. In 1997, Kinross' exploration activity, complemented by
junior affiliates Pentland Firth Ventures Ltd. and Mirage Resource
Corporation, aggressively sought new projects on virtually every continent
as well as in areas contiguous to the company's existing operations...
...The goal of Kinross' exploration activities is the discover of precious
metal deposits that contain in excess of one million ounces of gold
equivalent with the grade, geometry and metallurgical characteristics that
lend themselves to productions rates in excess of 100,000 ounces per year at
competitive cash costs."
The above noted statements make it very obvious that Railroad was held above many different opportunities over many continents. The company is also encouraged by the fact that Kinross believes the potential exists at Railroad for a deposit in excess of one million ounces of gold and possible production rates in excess of 100,000 ounces per year. Naturally, this remains to be seen through drilling by Kinross and does not conclude that Railroad has reached that stage as of this time. However, it is encouraging to know that a major gold company believes we have that kind of potential. To that end, we would also like to present this final excerpt with regard to Railroad from the Kinross annual report:
"Late in 1997, Kinross negotiated an option with Mirandor Exploration, Inc.
to explore and earn a 60% interest in the Railroad district in northcentral
Nevada, a 55 square mile area adjoining Newmont's Rain deposit at the
southern end of the Carling Trend. There are several zones of drill-indicated mineralization on the property, and the geological setting suggests that the company has a significant opportunity for exploration success."
3] Hardrock Acquisition
The Hardrock property is located in the Battle Mountain/Crescent Valley Trend, which is the 2nd largest gold producing area in Nevada (next to the Carlin Trend). This trend is home to the Pipeline, Mule Canyon, Battle Mountain and other mines.
In explaining their reasons for the acquisition, MIQ stated that Railroad is now in good hands after much exploratory work. To that end, the company wants to take a proactive approach and continue using their Nevada expertise to acquire further projects. The same team that put together the Railroad Project also put together the Hardrock property and the company reports that funds from recent financings will be used to commence drilling at Hardrock this summer. The company will keep shareholders updated as events unfold.
That is all for now. We trust the above to be satisfactory and we look forward to any questions and/or comments you may have.
Have a great weekend.
Regards,
Agora Internet Relations Corp.
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