TSX:V.ANK CDN $ 0.375

GoldUSD 1,234.60

Banlung

The entire license area has been the subject of an aeromagnetic survey, satellite imagery geological interpretation, with reconnaissance field truth mapping and multi-element stream sediment geochemical survey, taking samples from catchments of roughly 1km2 extent. These efforts highlighted several areas as specific targets for further more intensive work. On 3 separate locations, a ‘C’ zone augered geochemical survey was undertaken, coupled with detailed geological mapping. On each of Okan East (781 samples) and Okan West (781 samples) prospects, this covered an area of 1km x 1km, sampling at 25m centres along lines at 100m intervals, both north-south and east-west. On Okalla, pilot ‘B’ zone (1570 samples) and pilot ‘C’ zone augered sampling programs were run in parallel over a restricted area of 1.5km x 1.0km, mostly on east-west lines. The ‘B’ zone samples were collected at 20m intervals on lines 100m apart, the ‘C’ zone sampling at 100m intervals on a square grid. Although it is inept statistically, the results were combined in a single population (!) and an IP survey run over the restricted target area indicated.

A later ‘C’ zone auger survey (3535 samples) was run over an expanded, area of 4.2km2. This showed much the same pattern, although the anomalies were, unsurprisingly, crisper. As deforestation by the local farmers exposed more outcrop, a much broader geochemical and detailed mapping target emerged, and after some experimentation, a termite mound geochemical survey (8270 samples) was done over 22.0 km2, taking samples from all termite mounds within 20m corridors spaced 200m apart, both north-south and east-west; and a reflected light spectroscopic survey of clay alteration has been done. Many, but not all, of the targets indicated by IP were diamond drilled. Several holes were drilled on quartz vein showings in artisanal workings, and most were drilled on quartz-flooded breccia targets beneath the primary strong Au-Cu-Mo geochemical anomalies. A total of 6642m was drilled on the prospect in 38 holes.

An IP survey has been started on the Okalla and Okalla East prospects, overlapping north into Banlung North tenement on Okalla North.  All 3 of these, together with Katieng in the latter tenement, have identical magnetic signatures, suggesting that the Okalla East and north prospects are similar diorites, which could also host mineralization.  The survey was interrupted by the onset of the monsoons and will recommence once the rains are over.