Mineralization

The LIK deposit is a stratiform zinc-lead-silver deposit. The deposit is continuous outside the LIK property onto the adjacent Teck Cominco Limited property to the south. The southern continuation of the LIK deposit is referred to as the Su deposit, lying on the Su property.

Within the LIK property, the deposit is divided into two parts by the Main Break Fault. The main part of the deposit within the existing claims is referred to as the LIK South deposit. As presently tested, the LIK South deposit is about 1,100 m long and about 600 m wide. It has been tested down dip to a depth of about 150 m to 200 m. North of the Main Break Fault, the LIK North deposit is about 700 m long and about 350 m wide. It has been tested down dip to a depth of about 300 m.

The deposits strike broadly northerly and dip westerly at about 25º to 40º. The mineralization comprises irregular, stratiform lenses. The mineralogy of the sulphides is simple and comprises pyrite, marcasite, sphalerite, and galena, with rare tetrahedrite, bournonite and boulangerite. Gangue minerals include quartz (as chert), clay minerals, carbonate and barite. Noranda recognized six different ore types in its logging of drill core. Typical grades of mineralized intersections within the LIK deposit are listed in the table below:

Typical Mineralized Intersections
Hole No.	From (m)	To (m)	Length (m)	Zn%	Pb%	Ag g/t
5	54.56	78.79	24.23	19.72	6.27	126.5
16	80.16	94.49	14.33	21.67	7.01	230.4
21	129.54	135.33	5.79	7.07	1.88	8.6
24	40.87	50.14	9.27	11.09	1.44	51.1
31	21.49	34.75	13.26	9.07	2.69	6.9
38	45.90	63.76	17.86	8.13	1.80	48.0
38	70.53	87.75	17.22	8.92	2.08	28.8
43	35.66	40.69	5.03	17.66	3.62	8.6
43	60.96	80.28	19.32	9.07	2.49	47.7
43	84.73	91.04	6.31	21.07	5.95	111.4
55	114.0	125.88	11.89	8.15	2.42	205.7
68	32.31	53.43	21.12	13.34	2.85	56.9
79	15.85	31.33	15.48	9.14	2.66	37.0

Previous work by GCO determined that sulphides were deposited in four distinct cycles. The cycles are better developed close to the likely hydrothermal source of the mineralizing fluids. Individual cycles may be quite thin near the margins of the deposit and the thickest accumulation in a single cycle noted to date is about 13.7 m. The base of a sulphide cycle begins abruptly with the deposition of sphalerite, galena and pyrite. Typically, the highest grades are found at or within a few metres of the base of a sulphide cycle. Massive or finely bedded zinc- and galena-rich sulphides decrease in grade upward within a cycle. Pyrite increases relative to sphalerite and galena, forming bands of massive or colloform pyritic sulphides. Higher in the cycle, pyrite decreases and forms nodular or colloform semi-massive pyrite layers interbedded with black chert or strongly silicified black claystone. The tops of the cycles generally contain the highest marcasite concentrations. Locally, another cycle begins before the earlier cycle is finished. Lateral variations appear to mimic the vertical variations. While brecciated sulphides are common in high-grade areas, they do not form a large percentage of the overall sulphide mass. Individual breccia zones vary in thickness from a few centimetres to a few metres. 

Drilling

The LIK property was drill tested in the late 1970s and early 1980s, but until the Company commenced its recent work program, no additional drilling had been done since 1992.

The Company completed a program of diamond drilling during the 2007 summer field season comprising eleven drill holes with an aggregate depth of approximately 1,394m. In order to facilitate this work, the Company purchased a diamond drill rig and contracted with its independent diamond driller, Frontier, to man and maintain the drill rig.

The purpose of this work by the Company was to (i) confirm the previous work on the LIK property and upgrade mineral resources to be compliant with NI 43-101, (ii) provide material for metallurgical testing, and (iii) commence the process of in-fill drilling that will be required to develop a mine.

Hole ID		From (m)	To (m)	Length		Zn (%)	Pb (%)
				Down Hole (m)	True Thickness (m)
DDH-136		64.62	69.19	4.57	3.96	4.35	6.04
		82.30	95.10	12.80	11.09	9.78	1.61
	including	84.43	90.53	6.10	5.28	13.20	1.90
	including	84.43	85.95	1.52	1.32	18.70	1.15
DDH-137		4.88	16.92	12.04	11.12	3.38	7.72
		34.14	76.50	42.36	39.14	6.49	1.67
	including	46.02	68.58	22.56	20.84	8.59	2.35
	including	64.92	68.58	3.66	3.38	15.49	1.63
	including	71.63	76.50	4.87	4.50	7.52	1.36
DDH-138		7.01	32.61	25.60	23.20	8.20	2.44
	including	28.50	32.61	4.11	3.72	17.57	5.28
DDH-139		29.57	46.02	16.45	14.25	8.95	2.13
	including	31.09	35.36	4.27	3.70	11.90	5.28
DDH-140		55.47	58.22	2.75	2.38	4.65	1.55
DDH-141		79.25	86.72	7.47	6.47	5.69	1.23
DDH-142		117.96	131.98	14.02	12.14	8.46	3.84
	Including	125.88	128.93	3.05	2.64	15.59	3.82
DDH-143		77.72	93.57	15.85	14.36	14.05	9.41
	including	77.72	82.91	5.19	4.70	19.10	14.90
	DDH-145	87.17	90.53	3.36	2.90	5.81	2.10
	DDH-146	103.02	104.24	1.22	1.06	6.79	1.21