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Historical Exploration

Exploration on the MacLellan Property commenced in 1946 when Noranda Mines Ltd. ("Noranda") carried out a magnetometer and geological surveys on a portion of the Property. Numerous companies have explored the Property and surrounds between 1946 and 2000. Production at the MacLellan Mine under SherrGold Inc. ("SherrGold") and LynnGold Resources Inc. ("LynnGold") between 1986 and 1989 resulted in 969,680 t grading 5.36 g Au/t with an average mill rate of 900 tpd (Chornoby 1991). Carlisle, as AMPX, acquired the Property in 2005 and has actively explored the Property to the present day. The reader is referred to Sections 9 and 10 of this Report for details on exploration and drilling undertaken by Carlisle on the Property.

Historical exploration conducted on, and in the vicinity of, the Property is summarized in Table 5.1 below. The reader is referred to the technical report by Karelse et al. (2008) for an extensive overview of the historical exploration on the Property.

Table 5.1: Historical Exploration on the MacLellan Property

Year Company Exploration
1946 Noranda First staked in 1946. Magnetometer and geological surveys.
1950 R. Rundle and J.W. Rundle Trenching and pits.
1995 Agassiz Mines Limited ("Agassiz") Drilled 648 m to test magnetic anomalies. Magnetic anomalies equated to magnetite in mafic flows. DDH 3 assayed up to 4.5 % Zn, 2.5 g Au/t, and 11 g Ag/t. Electromagnetic ("EM") survey.
1956 Aumaque Gold Mines Limited Resistivity survey and a 25 drill hole program totalling 3,373 m to test EM anomalies.
1958 Central Manitoba Mines Limited 20 drill hole program totalling 2,568 m.
1960 Rayrock Mines Ltd. Inconclusive geophysical survey over a portion of the Property.
1965- 1967 Agassiz Drilled 52 holes totalling 12,446 m. Estimated 1.24 Mt grading 11.1 g Au/t (uncut) or 9.0 g Au/t (cut) and 1.38 Mt grading 10.0 g Au/t (uncut) or 8.8 g Au/t (cut) with 31.3 g Ag/t and minor Zn and Pb.
1969 Agassiz / Royal Agassiz Mines Limited ("Agassiz Mines") Company name change. A 149 m shaft sunk and 803 m of drifting completed.
1971 Agassiz Mines By 1971, 105 holes drilled totalling 21,336 m. Estimated 2.1 Mt grading 10.0 g Au/t and 37.6 g Ag/t.
1973 Agassiz Mines Shaft dewatered. Drilled 101 underground DDH.
Bulora Corporation Joint venture agreement between Bulora and Agassiz Mines. Drilled 25 underground DDH, drift and crosscut workings,
1974- ("Bulora") / Agassiz surface mapping, and thin section work. Underground
1975 Mines workings allowed to flood. Four exploration holes drilled.
1976 Bulora Agassiz Mines transfers interest to Bulora.
Sherritt Gordon Acquired an option on the Property from a subsidiary
1979 Limited ("Sherritt") company of Agassiz Mines.
Drilled 442 surface and underground DDH, line cutting, magnetic/HLEM surveys, and aerial photomaps. Shaft deepened to 259 m and drifting. Surface and underground
1980- mapping. Geochemistry. Estimated ore reserve of 1.49 Mt
1985 Sherritt grading 7.17 g Au/t.
Transfer of property to subsidiary company SherrGold.
Drilled 182 underground DDH. Shaft deepened to 448 m.
1986 SherrGold Production commences at MacLellan Mine.
1987 SherrGold Drilled 32 exploration DDH and 164 underground DDH.
Drilling at MacLellan Mine plus 22 DDH on exploration
1987- targets. Open pit started on crown pillar later abandoned.
1988 SherrGold / LynnGold Company name change to LynnGold Resources Inc.
Report on MacLellan Mine, mine production during 1986- 1989 reported as 900,000 t grading 5.4 g Au/t, with average mill rate given as 900 tpd.
Change from cut-and-fill to long-hole open stoping.
Underground drill program tested East Main and Rainbow Zones.
Closure of mine, mine and mill placed in care and maintenance
1989 Cazador Explorations Limited Drilled 10 DDH to test suitability of crown pillar for open pitting.
1992 Project abandoned due to risk to mine workings. Review of reserve. Trenching over crown pillar. Geological mapping. Channel sampling. Magnetic survey and
1996- Black Hawk Mining Inc. ("Black Hawk") prospecting. Drilled 20 DDH totalling 886 m. Development of crown pillar reserve and pit design.
2000 (Keystone Gold Inc.) Mine allowed to flood.