MD and A from SEDAR : (Period Ended 12/31/2010);

REPEATED in MD and A (Period Ending June 30th 2011)

 

"

Trixie Mine

The Trixie Mine is a fully permitted and bonded Gold/ Silver Mine that has been on stand-by since

March of 2002, when it last operated. The Mine processed 7,808 tons of ore in late 2001 until

closure in February 2002 and produced some 4,460 ounces of gold. The total mining and milling

cost to process the 7,808 tons was US$694,591 or US$88.96 per ton processed.

4

To start up the Trixie Mine the Company would initially process material located on the surface.

The tonnage would come from various stock piles and the dry stack tailings left from the 2001 –

2002 operations at the Trixie Mine. Simultaneously, the Company plans to access the Trixie Mine

to check and confirm the ore reserves estimated to be mineable above the 700 ft Level. This is the

area that Chief was mining at the time of the mine closure in February 2002. The Company would

also examine the resource at the 1400 ft level where Kennecott had historically mined.

The Company believes, based on the excellent condition of the processing and milling plant, that

the plant can be re-commissioned with an initial expenditure of approximately US$200,000.

Subject to confirmation of these historic Pre-NI-43-101 resource estimates and the final evaluation

of the economics of mining the resources, the Company plans on opening the Trixie Mine and

recovering the contained gold and silver ounces as quickly as practical. The Company also

plans further exploration of other precious metal targets within the Trixie Mine Complex"

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From MD and A (Period Ended 9/30/2011):

 

The Company believes, based on the condition of the processing and milling plant, that the plant

can be re-commissioned with a minimal initial expenditure. Subject to validating the historic Pre-NI-

43-101 resource estimates and the final evaluation of the economics of mining the resources, the

Company plans on opening the Trixie Mine and recovering the contained gold and silver ounces

as quickly as practical. The Company also plans further exploration of other precious metal

targets within the Trixie Mine Complex.