Newmac Property

The Newmac Property is situated in the Chilcotin region of southwestern British Columbia. In the summer of 2003 Newmac Resources Inc acquired a 100% interest in the property from Canevex Resources Ltd., a private corporation which acquired claims that became the Newmac Property in 1987. Between 1987 and 1998 Canevex had signed three option to purchase agreements on the property with three separate optionees. In the period 1987 to 1988 junior miner Jacqueline Gold Corporation explored the property. Between 1989 and 1991 Noranda Exploration Company, Limited held an option on the property and in 1998 junior miner Ascot Resources Ltd. operated the property. All three optionees completed diamond-drilling programs in a region of the property referred to as The “B Grid” or Butler Creek area before returning the property to Canevex. Each successive campaign opened up new avenues of exploration opportunity and improved the understanding of the mineralizing system. Some of the original targets at Newmac remain untested while new targets have been developed.

In 2004 Newmac Resources Inc. initiated a geophysical program to assess the potential of the most unexplored target area on the property. An area referred to as the “Bornite Showing Area”. Seventeen (17) kilometres of grid was cut in thick coniferous timber and an induced polarization and magnetometer survey was then completed. Several strong geophysical anomalies were detected by the survey and will be drill tested in the next round of drilling.

Three primary targets exist at Newmac which are all linked to a common porphyry copper-gold hydrothermal system. The 2004 work was in an area referred to as the “Bornite Showing” area which is a copper-gold (molybdenum) anomaly that, while probably originally discovered in the 1940’s, was re-identified by soil geochemistry and induced polarization surveying by Noranda in 1991. Ascot Resources Ltd. confirmed the Noranda soil pit results in 1998 and developed an all terrain vehicle access trail in to it from Butler Lake. Excepting a rusty gossan exposed in the creek, the Bornite Showing is completely overburden covered. It has not had any drilling completed on it.

Work, completed in the periods 1987 to 1991 and in 1998, was on a porphyry target referred to as the “B Grid” or Butler Lake target located approximately 3 kilometres to the south of the Bornite Showing Area at a higher elevation on the mountain. While the results of the 1987-1991 and 1998 work was inconclusive it did establish the existence of a very large porphyry copper-gold-molybdenum system that remains open in most directions.

The final target area, is a system of quartz veins located 3 kilometres west of the Butler Lake target and referred to as the “Macdonald Veins” target. The veins, which are as much as 3 metres wide, have returned assays as high as 0.35 oz/T gold and 33.0 oz/T silver associated with galena, sphalerite and chalcopyrite. It was while working out from the Macdonald Veins, probaly discovered in the 1930’s or 1940’s that the Butler Lake and the Bornite Showing targets were discovered.