Xmet Inc. provided some preliminary results from its approximately 1,200 metre diamond drilling program on its Blackflake West property. A total of four holes were drilled during this program, three of which were drilled to test portions of a large airborne electromagnetic anomaly in the west and the fourth hole into a smaller, more conductive anomaly, approximately 1.5km to the east of El Gordo. Heavy and widespread sulphide mineralization was encountered over the majority of the lengths
of all four holes, with sections of massive to semi-massive sulphide concentrations present along with stringer zones in intimate association with heavy amphibole alteration. From visual inspection it appears that the holes intersected the same mineralized system consisting of upper amphibolite-metamorphosed mafic and felsic gneiss that have suffered intense pre- metamorphic, volcanogenic massive sulphide style hydrothermal alteration which strongly metasomatized the rocks, in some cases transforming them locally to massive actinolite. The system is clearly large and anomalous with regard to the amount of sulphides present and in base metal and arsenic content. In the context of a VMS interpretation, El Gordo is quite a large target and only a small part has been tested to date. The holes drilled on El Gordo were purposely oriented in different directions to facilitate structural interpretation and it appears that the whole system begins at 40 metres below surface and is nearly flat-lying and accompanied by a ubiquitous, well-developed tectonic foliation that is also flat lying. A small batch of test assays consisting of ten 1 metre sections from holes 1 and 2 have been received from the laboratory. Samples from the first hole contain anomalous arsenic and up to 0.3% zinc over a sample interval of 1.0m. The copper value obtained is 500 ppm over a 1.0 m sample interval. No graphite was visually observed in any of the holes drilled to date. Petrographic work and whole-rock litho-geochemistry will be done once all assays are received, to better characterize the system. The large batch of assays from the entire length of mineralization has been sent to the laboratory, and the Company is currently awaiting results. Results of the large batch assays are anticipated within weeks and will be communicated in a timely fashion.