Drilling Planned near Shaver Lake – Red Lake Mining Camp

Further to our News Release of May 31/04 the Companies have received a final report of the geophysical survey on its northern claim blocks in the Red Lake Mining Camp. The report was prepared by J.B. Boniwell, Exploration Geophysical Consultant. These three claims (Belmont/Montoro; 50/50) comprising 30 units (480 hectares) in Shaver/Bateman Townships are bordered by Rubicon along the north and west sides and by the Goldcorp/MetalCORP Black Bear property, which is currently under extensive exploration, to the northeast.

The ground work comprised 45.5 km of line cutting and ground grid. A ground grid of lines was put in place to facilitate and control the first surveying. The geophysical survey comprised 42.4 km of magnetic and VLF surveying spaced 50 metres apart over the line grid.

Mr. Boniwell reports:

“ It is readily apparent in the VLF data that an anomaly is streaming to the northeast in even more definite fashion than to the south (Walsh Lake grid). This comes as no surprise since the country rocks here, the volcanics and sediments are being increasingly squeezed as they head northeast. Granite intrusions lie to the south and broadly to the north.

The magnetics for the area contain a fair amount of activity in the range 56,500 – 58,000 nT. Some of the highpoints are sharply resolved and indicate a bedded environment variously intruded under a comparatively thin cover. In terms of potential gold mineralization, the southern reaches of the area appear the more interesting. Here, there are more irregularities in the otherwise smooth continuum of contours, exemplified best by the prominent quasi-circular high in the south-centre of the area. By all appearance, this feature portrays an intrusive centre more mafic than its surrounds. It peaks at 360E on line 1100N.

There is evidence that it also sits on a major N-S fault line. The focus of this structure hence becomes a prospective target, and as it extends north from the intrusion, it is of some considerable note that it should thread a succession of magnetic lows as it does so. The closest two to the intrusive contact are also among the strongest in the area, but not the strongest. That distinction belongs to another magnetic low sitting 200m to grid East on line 1200N. In that location it too nestles in close to the granite contact and is eminent there.

Should interesting mineralization and/or alternation be encountered in the first 2 holes, then this section will offer immediate scope for in-fill drilling.”

The geophysics interpretation has recommended 5 drill site targets for a total of approx. 805 metres (holes est. 125 –210 metres each). Drilling will commence as soon as an available contractor can be secured.

The Companies are further encouraged by recent news releases (MetalCORP Limited – “TSX-V: MTC”) dated May 26/04 which reported a gold occurrence discovered in the southeastern portion of the Black Bear property where a drill hole sample yielded a grade of 14.9 grams per tonne gold over 0.30 metres. Also June 29/04 MetalCORP announced a further program of geological mapping, prospecting and sampling to follow-up the two (2) mineralized zones discovered in the recent drill program, to identify structures from highly prospective geophysical trends.