CALO

Advised that it has intersected transported clasts (rock fragments) of porphyry copper mineralization in a lithic tuff in drill hole 7.

Reported results of a further three reconnaissance drill holes CL-3 to CL-5. CL-3 (3300 azimuth/ 75° inclination) was drilled to test the argillic zone in the western part of the Calo prospect. It is coincident with a moderate chargeability (20-30 msec) anomaly. The hole intersected argillic alteration down to 16 meters and then porphyritic andesite with propylitic alteration down to hole bottom at 226 meters. Minor base metal sulfides consisting of galena, chalcopyrite and sphalerite are present as veinlets and as fracture fills within the propylitized andesite, plus very fine pyrite (to five percent).

Released results from the first two reconaissance drill holes at the project. Hole Cl-1 was drilled in the southern part of the target and intersected loosely consolidated young cover sediments and pyroclastic materials from collar to a 162-m depth. Volcanic breccias, flows and tuffs were then intersected to hole bottom at 502 m. Hole Cl-2 was drilled two kilometres to the north. It intersected volcanic breccias, flow and tuffs, with zones of opaline and chalcedonic silica alteration, chloritization and barite. Sericite alteration occurs in structural zones. Geochemical results had not yet been received.