In May 2011, the Company initiated an aggressive drill program utilizing two diamond drills to continue on from their successful winter 2010-2011 drill program, which was terminated due to snow-melt conditions. This has been the most extensive drill program on the property to date, with 24,707 meters drilled in 56 holes throughout the year. Drilling on the NTS has continued to identify zones of high-grade gold mineralization across a strike length 1.8 km of the total projected 2.2 km strike length.

The objectives of this two-drill program were to expand known mineralization along the 2.2 km strike length of the Newman Todd Structure (" NTS") , follow up on highly significant results from the winter program and to probe the down-plunge continuity of high-grade, gold-bearing structures. One drill targeted the known high-grade gold zones within the Heath-Bull and Hinge areas along strike and to depth, while a second drill focused on probing between the known areas of gold mineralization on 50 to 200 m spacings.

Geological understanding of the Newman Todd project has increased dramatically as a result of this recent drilling program. Gold mineralization is still wide open to depth and along strike, and the recent high-grade results have been successful in demonstrating excellent continuity in both the vertical and lateral dimensions.

In addition to the drilling, a geological mapping & surface sampling program was also undertaken during 2011, the results of which have led to the discovery of high-grade gold mineralization in the NTS at surface. This indicates that the gold-bearing system extends to surface and opens the possibility of discovering a near-surface resource, in addition to the multiple, high-grade zones which have open-ended down-plunge potential.

Overall the 2011 exploration program was extremely successful, with every hole intersecting the gold-bearing NTS, and results confirming the existence of a major new Red Lake-style, high-grade gold discovery.

The 2012 drill program followed up on significant results returned from the 2011 drill program. The majority of the 2012 program targeted the Hinge Zone with hole locations designed to both fill in gaps within the existing 3D model and to optimize the geological information that could contribute to the development of a Preliminary Economic Assessment (PEA).