MOUNT HINTON

Page Index
Overview
Location and Description
Access, Infrastructure & Local Resources

Overview
The Mount Hinton property is adjacent to the Keno Hill mining camp in central Yukon Territory. It consists of 186 claims staked under the Yukon Quartz Mining Act, covering approximately 9300 acres (3700 hectares). Access and infrastructure in the region are relatively good with connections to the Yukon Highway system and power grid available 6 miles (10 km) to the northwest at Keno City.

The Mount Hinton property and the nearby Keno Hill mining camp are in the central part of the 350 mile (550 km) long Tombstone Gold Belt, a region of gold and silver mineralization that stretches across Yukon Territory. Between 1913 and 1989, over 6 000 tons of silver, 358 000 tons of lead and 218 000 tons of zinc were extracted from extensive and numerous vein faults in the Keno Hill area. All creeks draining the Mount Hinton property contain anomalous placer gold concentrations and two of them have supported long term placer gold mining operations.

The Mount Hinton property has received relatively little physical work, mostly in the form of hand trenching, to delineate the numerous historical prospecting discoveries of gold-silver mineralization. Much of the exploration was by United Keno Hill Mines Ltd. in the 1960's and it was carried out under difficult conditions, requiring numerous fly camp moves in order to maintain productivity in the rugged terrain. Road access was improved to the property in 2003, permitting the more efficient use of labor and machinery.

The primary exploration target on the Mount Hinton property is a 1000 foot wide, 2 mile long trend of more than 50 relatively well mineralized gold and silver bearing quartz vein bedrock or float occurrences that are hosted by dilatent fault zones. As many as 50 mineralized veins or discrete mineralized vein float trains have been discovered to date. Follow up hand trenching in the 1960's was directed toward uncovering the source of better mineralized quartz vein float but this was only partially successful because of coarse unstable talus, permafrost and steep terrain. Despite these obstacles, four of the prospecting targets were exposed well enough over limited strike lengths to permit detailed sampling.

• The 19 Vein was exposed for 80 feet and channel samples at 2 foot intervals returned an average value of 0.19 oz/ton gold and 2.0 oz/ton silver over an average width of about 5.6 feet The host structure has been traced through mapping, hand trenching and air photo analysis for a distance of 1200 feet.

• The 21 Vein was exposed for a total length of 72 feet and channel sampled at 2 foot intervals. Weighted average grade was 1.24 oz/ton gold and 19.3 oz/ton silver over an average width of 3.4 feet .

• The 24 Vein was channel sampled at 2 foot intervals, yielding an average assay of 0.51 oz/ton gold and 45.1 oz/ton silver over a 1.6 foot average width and an 80 foot length.

• The 42 Vein returned an average grade of 0.68 oz/ton gold and 6.9 oz/ton silver for a 6 to 8 inch average width over a 40 foot distance from channel samples spaced at 5 foot intervals.

These individual veins were only partially exposed through deep, frozen overburden under difficult circumstances so that the continuity and relationships between them remains to be fully defined. Sampling to date has nonetheless documented gold-silver mineralization over a vertical distance of approximately 820 feet

Soil sampling and hand trenching conducted by United Keno Hill in 1966 appeared to delineate limits of the 1 Vein but the source of very high grade (e.g. 899 oz/ton and 424 oz/ton silver bearing galena float boulders found the previous year was not discovered. Results of subsequent soil sampling suggest that the source actually lies to the northeast in an unexplored area but no additional work has been carried out to refine this target.

United Keno Hill focused their work at Mount Hinton on developing high grade gold-silver mineralization that could be trucked 12 miles to their production facility at Elsa where flotation concentrates were produced from galena and tetrahedrite rich ores. Thus their primary interest was in galena and jamesonite rich quartz veins at Mount Hinton and not in the potentially well mineralized, oxidized, sheared and crushed zones that often flank them; nor in larger tonnage targets represented by mineralized breccia zones or veinlet swarms that are peripheral to a number of the veins.

Much of the Mount Hinton property was explored from 1965 to 1968 with close spaced soil geochemical sampling. The best correlation between the known mineralization and the geochemical data is with anomalous lead response although there are a number of areas with relatively strong and extensive lead anomalies that are not associated with any known vein zones and these provide a focus for immediate follow-up. Results of a 2003 orientation geochemical survey suggest that arsenic and antimony are also important pathfinders for gold-silver mineralization.

The Mount Hinton property has a strong potential to host economic gold and silver deposits based on the positive results of historical exploration. A two phase exploration program is planned for 2004. The program will consist of prospecting, claim surveys, geological mapping, geochemical sampling, geophysical surveys, road building, excavator trenching and diamond drilling to evaluate the potential for additional mineralized zones on the property and to advance knowledge of geological controls and structure on the known zones. Metallurgical testing of drill core coarse reject composites will be carried out to determine the efficacy of conventional gold and silver extraction techniques. The 2004 program is expected to provide sufficient information to locate the access point for further underground work.

Driving a decline to stage a further diamond drilling exploration program is expected to be the most prudent and economical solution to the development of an ore reserve and the possible mining of some higher grade ore.

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Location and Description
The Mount Hinton Property consists of 186 contiguous, unsurveyed mineral claims located in central Yukon Territory, immediately southeast of Keno City at latitude 62� 52'N and longitude 135� 07'W. The claims were staked under the Yukon Quartz Mining Act and are registered in the Mayo Mining District in the name of our wholly owned subsidiary, Yukon Gold Corp ("YGC"). A full Yukon mineral claim is 51.7 acres in size and, because of the complex staking history, many of the Mount Hinton claims are not full size and the property covers an aggregate area of about 9,300 acres.

Placer mining claims (rights to mine metals and minerals from alluvial material above the bedrock) held by third parties in upper Thunder Gulch may compromise our surface rights on our claims identified as Hinton II - 1, 2, 4 and 6, which comprise approximately 2% of our total claims. As of the date of this prospectus, no effort has been made to acquire these surface rights.

The property has no known environmental liabilities and we have completed all required reclamation of all surface disturbances to date and will continue to as further exploration takes place.

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Access, Infrastructure & Local Resources
The Mount Hinton Property lies about 6 miles southeast of Keno City, a largely abandoned mining town, 37 miles northeast of the Village of Mayo and 233 miles north of Whitehorse, the territorial capital of the Yukon Territories in Canada. Mayo is accessible from Whitehorse by a chip sealed highway and an all season gravel road links Keno City with Mayo.