The drilling announced today is the follow-up/continuation of the

drill plan that was initiated in mid-Oct and was wrapped up approx.

two weeks later with the following explanation:

"The only drill available for this program was a hydraulically

powered model which could be mobilized to the site by helicopter.

The purpose of proceeding with it at this time was to confirm the

existence of the fault zone, to test for shallow alteration and /or

mineralization along it and to accurately determine the dip of the

zone so that deeper holes requiring a larger machine could be more

precisely designed.

"Three holes to intersect the main fault zone near surface were

attempted and partially completed. The ground was found to be

extremely disrupted with gouge (clay) seams indicative of faulting

and the sandstone is in part intensely altered. Circulation of drilling

fluid was frequently lost in open fractures resulting in several strings

of drill rods becoming jammed in the holes and not recovered. It

was therefore decided to terminate the program and proceed later

with a larger machine better equipped to cope with the difficult

ground. If normal winter conditions prevail it should be possible

to mobilize a larger drill to the site over an existing winter road

from Stoney Rapids to Riou Lake in January."

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