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Abstract
The Company's 2006 drill program was designed to twin many of the holes that were drilled by Shell Canada Resources Ltd ("Shell") in 1979 and 1980 and the holes that were drilled by New Jersey Zinc Co in 1970 and 1971. The Company's 2006 drill program has given a level of confidence to the historical drilling such that the Company believes that the new drill holes and historical holes can be used to calculate a NI 43-101 compatible mineral resource. In this regard, the Company has engaged Watts, Griffis and McOuat to calculate the new resource in accordance with NI 43-101 standards.
Drill holes STO6-13, 14 and 15 were all drilled south of and below the "Crone Fault" which is the footwall to the higher grade of mineralization intersected in other holes. These three drill holes were drilled to test and were successful in intersecting equivalent mineralization. The remaining drill holes (ST06-16 to 20) intersected the Crone Fault with good results. However, in reviewing the data received, the Company believes that, as a result of mineral loss in the drilling process, the core recovery in drill holes ST06-16 to 20 had slightly lower molybdenum results.