The LIK property comprises a contiguous group of 296 unpatented federal mining claims covering 2,225 ha in northern Alaska. 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. Much of the LIK South deposit is shallow and considered to be amenable to open pit mining. The LIK North deposit is relatively deeper.

Zazu purchased their interest in the property in 2006, and completed two diamond drill programs in 2007 and in 2008. In 2009 and 2010 Zazu was able to take the field data gathered, update the resource estimate to be Ni 43-101 compliant and then complete a suite of studies on both the property and the regional infrastructure that enabled the completion of a Preliminary Assessment Study.

A full field season is planned for 2011. Zazu intends to take the project to Feasibility Study Stage with this data.

In 2009, Scott Wilson RPA completed a NI-43101 compliant resource estimate on the LIK property.


Lik Project approximate Resource, Pit and Drill Hole Locations


The Preliminary Assessment Study is available on SEDAR.

Proposed Work Program

In 2011, Zazu intends to build upon the previous studies and complete the necessary work to advance the project to the feasibility stage. To that end, a full season is scheduled with the aim to complete:

• Exploration Drilling: Testing targets in Lik North identified in the geophysical surveys of 2008.
• Metallurgical Study: Refining of the process plan and improving silver recovery.
• Environmental permitting, assessment and monitoring: In preparation for mine development and permitting studies that were initiated and will continue. New studies investigating hydrology, hydrogeology and air quality will be initiated.
• Mine Design: Further refinement and analysis of mine design assumptions will occur.
• Acid Rock Drainage: An ARD study will be completed.
• Infrastructure Analysis: Refining design plans for modifications to the DMTS road and port facility.
• Corridor Routes: Geotechnical investigation of bridge sites, identification of aggregate sites and design refinements.
• Road and Port Analysis: Refining design plans for modifications to the DMTS road and port facility.

In 2010, Zazu completed the Preliminary Assessment Study. This provided several areas for further investigation. The follow studies were completed:

• Preliminary Assessment Study: Scott Wilson RPA prepared a NI 43-101 compliant PAS. This demonstrated a positive IRR and identified areas for further study.
• PAS Review: Completed by JDS Mining and Engineering. This aimed to answer some of the questions posed by and improve on the PAS. This report was not NI 43-101 compliant. It was forwarded to AIDEA to act as a basis for thier due diligence on the project as a precursor to financing.
• Metallurgical Studies: Refine process identified in previous studies. Focused on reducing silica content and was successful.
• Port Capacity Analysis: An evaluation of alternatives to increase the DMTS capacity. The report concluded that minor modifications are needed to accommodate concentrate product from Lik.

In 2009, the project moved from exploration to the early stages of development. Zazu's focused evaluating the data previously gathered and completing studies to take the project through the Preliminary Assessment Stage. To that end, the following activity was completed:

• Resource estimate: Scott Wilson RPA prepared a Current NI 43-101 resource.
• Preliminary Assessment (scoping) Study: On completion of the Current Ni 43-101 resource estimate, a Preliminary Assessment (scoping) study was initiated.
• Environmental permitting, assessment and monitoring: In preparation for mine development and permitting studies were initiated and will continue.
• Infrastruture Analysis: An evaluation of the DMTS road and port facility was made to determine its ability to handle production from the Lik deposit.
• Corridor Routes: A study on possible routes for a haul road connecting Lik to the DMTS was completed.

During 2008 Zazu completed the following:

• Drilling: A 58 hole program was completed, with the intention of expanding the resource base and defining proven and probable reserves. Drill Hole Location Map (click to zoom) Highlights of the 2008 drilling program
• Metallurgical Testing: Inital testing of metallurgy. Results are detailed in the this press release.
• Environmental Work: Zazu commenced ongoing environmental studies, to obtain all necessary land use and operating permits for the LIK property.
• Additional Geophysical Surveys: Zazu successfully identified exploration targets for drilling in future seasons to the north of the LIK deposit.

Exploration

Company personnel have prepared a proposed program of exploration based on two summer field seasons. The program includes a significant amount of diamond drilling, as well as metallurgical studies, geophysics and database development. This project requires the development of a geographical information system database and digitization of earlier data.