Now, work by the Company in 2008 demonstrated that the CCT fault intersects and displaces the Lulu Zone both in the downdip direction as well as along strike to the south. Previous drilling had tested the only the "hangingwall" block, located above the CCT fault. Prior to 2008, no attempt had been made to test the location of the offset portions of the Lulu Zone and its host stratigraphy below the CCT fault.

Eskay Project drilling intersects gold mineralization in a new extension of the Eskay Rift

Three deep drillholes completed in the 2008 program targeted the untested, fault-offset Lulu Zone host rocks to the west and below the CCT fault. As previously announced, all three holes successfully intersected Eskay Rift rhyolite, basalt and sedimentary rocks.

Several kilometers of highly prospective new drill targets below the Coulter Creek Thrust Fault are now defined.

Notably, diamond drill hole EK08-134 intersected a sequence of mudstone, sandstone and altered rhyolite below the CCT fault, 300m north of Lulu. Two wide intervals of stockwork style quartz-sulphide veins were intersected within altered rhyolite. These mineralized Eskay-equivalent rocks are highly anomalous in gold, silver, zinc, lead, arsenic and antimony – the typical "Eskay-like" geochemical signature for a feeder zone to massive sulphide deposits.

The first mineralized interval intersected was 25.5 metres wide, between 393.7 to 419.2m depth, as announced in the Sept. 24 news release. Within that first interval was 1.5 metres grading 1663.8 ppb Au (equivalent to 1.7 g/t), 8.5 ppm Ag (equiv. to 8.5 g/t), 5947 ppm Zn (equiv. to 0.59%), 4013.7 ppm Pb as well as 1229.5 ppm As and 180.6 ppm Sb (antimony) from 395.1 to 396.6 metres depth.

Additional assay data for EK08-134 is now available and indicates the presence of a second, more strongly mineralized interval deeper in the hole, extending from 488.2 to 513.6 metres depth. This 25.4 metre interval averages 2.1 g/t gold, 0.2% zinc and 0.1% lead. Higher grade intervals are also present. For example, a 3.0 metre interval from 488.2 to 491.2 averages 4.8 g/t Au. Furthermore, a

2.0 metre interval from 504.0 to 506.0 metres depth averages 6.5 g/t gold and a 1.0 metre interval from 509.0 to 510.0 metres depth averages 13.8 g/t gold.

NOTE: When calculating averages where some of the values are below detection (e.g. <2 g/t), a nominal value of half the detection limit was used.

Hole 134 has proven to be very important and very encouraging because: 1) it has demonstrated, along with holes 132 and 135, that the Eskay Rift rocks that host the Lulu Zone can be intersected below the Coulter Creek Thrust Fault, and 2) precious and base metal mineralization is present within this package at least 300 metres north from the Lulu Zone. This effectively demonstrates the high potential for finding a fault-offset continuation of the Lulu Zone on the footwall side of the Coulter Creek Thrust Fault.