FARO, YUKON TERRITORY
Pursuant to an agreement dated October 28, 2009, the Company acquired a 100% interest in four mineral claims known as the Bro Property, located about 120 road kilometres southeast of Faro, Yukon Territory, Canada. The property is subject to a 2% net smelter royalty, of which the Company may purchase one-half at any time for $1,000,000.
The Bro property is primarily a silver, lead, zinc prospect with exploration potential for gold and copper. Historical work on the property including surface work carried out by Noranda between 1975 and 1979 and other operators to 1994 confirmed that the Property hosts the above noted base and precious metal mineralization.
Several historical geological reports’ conclusions were to conduct more drilling to determine the source of the +/- 40 meter wide massive gossan zone with high values of up to 5.5 % copper, 34 % lead, 1.4 % zinc, 550 grams per ton silver, and 2.7 grams per ton gold. Prior Noranda diamond drilling returned gold values as high as 0.33 ounces (11 grams) per ton gold over 5.3 feet.
The Property is located in the Ketza-Seagull district of the Cassiar Terrane. The Ketza-Seagull district is underlain by thick successions of miogeoclinal clastic, volcanic and carbonate rocks, ranging in age from Upper Proterozoic to Mississippian that were deformed during the Mesozoic arc-continental collision. Fonseca (1998) attributes mineralization in the Ketza Mine area, (Minefile Occurrence 105F019) consisting of gold rich manto, magnetite-gold scarns and oxide gold occurrences and deposits. Similar mineralizing events may be present in the Seagull area where the Bro property is located.