INTERLAKE (HEMLO CLAIMS)

A 2 year $5 million underground exploration program had been completed. 3,280 feet of underground drift development including six diamond drill stations and 65,800 feet of diamond drilling were completed with 40 holes. Drilling tested the down plunge extent of the Hemlo ore body over a strike length of 2,300 feet and a vertical extent of approximately 2,600 feet. Multiple horizons of B-Zone and C-Zone gold mineralization were encountered.

The results of the initial program led to an incremental 1,300 feet of drifting and 20 drill holes approved for fiscal 1999. The budget for the incremental program is $2.2 million. In 1997 an underground exploration program was conducted. Underground access was obtained through the adjoining Williams Mine workings. A 2,000 foot underground exploration drift and four drill stations were established. A 21 hole, 33,000 foot drilling program was completed. This tested the mineralized horizon on 300 foot centres along the upper eastern portion of the property.

Underground drilling on the Williams Mine was within 150 m of the property. In 1996, an agreement was made with Teck and Homestake to allow access to its property through the underground workings of the adjacent Williams mine. A 2 phase $3M underground program was to engage in in-fill drilling to upgrade a portion of the resource. Drilling between 1981-1989 indicated four zones at depths of 800 to 2,400 metres for which an aggragate 8,588,000 tonnes @ 6.34 g/t gold have been identified.