The Company holds a 50% interest in the Wood Mining Group of mineral claims, consisting of approximately 7,968 hectares located in the Kamloops Mining Division of British Columbia.
During fiscal 2006, the Company’s geophysical crew carried out an induced polarization survey on the property. The purpose of the work was to follow up on strongMMI soil gold anomalies discovered in the 2005 exploration program. This was done by carrying out detail work in order to better define the anomalous zones for the purpose of drill targets.
The work carried out defined three target areas which have been named:
1. the Dorado North zone;
2. the Dorado South zone; and
3. the Corona zone.
Each zone consisted of a strongMMI gold anomaly correlating with silver and copper anomalies. These three also correlate with IP anomalies. The Dorado North and the Dorado South IP anomalies are especially strong. The most northern anomaly is located at the northwest corner of the Wood group of claims, approximately 3,000 metres southwest of New Gold Inc.'s mineral deposit. The 2007/2008 diamond drilling program was carried out on the Dorado claims. Due to drilling difficulties and overburden the first three holes were abandoned. A total of eight drill holes were completed. The DDH 07-08 intercepted 100 feet of elevated values of antimony and correlating arsenic; the two metals are usually associated with gold in epithermal deposits. Previous surveys have outlined aMMI gold/geochemanomaly of 2000 metres by 1500 metres on the property.
The following recommendation was made by Leo Lindinger, P. Geo, Project Geologist, in his “DIAMOND
DRILLING ASSESSMENT REPORT”, dated April 18, 2008, “The target of Hole D07-07 should be re-attempted to get to the target depth. The anomalous arsenic within strongly ankeritized and carbonate veined-flooded rock some 50 to 100 meters above a strong IP anomaly is an encouraging sign indicating possible upper reaches of a possible precious metal hydrothermal system. The presence in Hole 8 of a pyrite-arsenopyritemineralized zone from197.2 to 233.8Mthat returned anomalous arsenic with weaker anomalous antimony, copper and gold with associated silicification that overprints extensive carbonate alteration may suggest that the hole intersected the upper levels of a gold+/- copper mineralized system
similar to and hopefully larger than that intersected in Hole 06-02, 900 meters to the west. Erratically anomalous gold and arsenic in the rock overlying the larger zone are also suggestive of the upper levels of a system”.