The Eastern Metals property is located in the Appalachians of southern Quebec, about 80 km east of Quebec City. It covers a band of ophiolite in contact with sedimentary rocks and hosting elevated grades of nickel, copper, and zinc, as well as cobalt, lead, gold and silver values - all within an uncommon mineral assemblage. The mineralization was discovered in 1949 by surface prospecting. Extensive exploration and development work, undertaken over the period 1951-57 by Eastern Metals Corp Ltd., led to the discovery and delineation of two distinctive mineralized zones. Included in this extensive exploration work was the sinking of a shaft to a depth of 1,200 feet (366 m) and establishment of eight (8) levels to access the mineralized zones. Also over this period Eastern Metals drilled a total of 754 drill holes totalling 44,412 m. Pilot plant test runs, performed on nickel and copper mineralization from Eastern Metals in the summer of 1954, revealed difficulties with nickel recoveries due to the presence of talc and poor recuperation of nickel from iron sulphides. Exploration and development work ceased at Eastern Metals in 1957 as metals prices dropped and a recession ensued.

The work completed to that point permitted calculation of historic "indicated reserve" totals of:

North Zone: 389,380 short tons (353,240 m.t.) grading 0.91% Ni

South Zone: 956,260 short tons (867,506 m.t.) grading 1.52% Cu and 0.15% Ni

After dewatering by St. Fabien Copper Mines Ltd. and Sheridan Geophysics Ltd., more metallurgical testing was done in 1968-69 on Eastern Metals bulk samples by four (4) separate metallurgical facilities. The tests revealed difficulties with making a satisfactory nickel concentrate, the main problem stemming from the extremely fine grind required to make an acceptable concentrate. In 1968 a new unpublished (historic) "reserve" calculation cut down drastically on the South Zone tonnage, explaining that the South Zone was made up of small lenses and much of it was not economically mineable. Subsequent calculations published in 1970, resulted in "ore reserves in the nickel zone of approximately 300,000 tons of 1.13% nickel occurring in a single lense and approximately 150,000 tons of 1.50% copper with minor nickel values occurring in a series of small lenses" St. Fabien sold off all of the surface installations and mining equipment in 1972. In 1986 the Ministère de l’Energie et des Ressources de Quebec (MERQ) commissioned a metallogenetic synthesis of the Eastern Townships – Beauce region. As part of this they remapped and sampled the exposures on the Eastern Metals property. The Eastern Metals property was optioned to Noranda Exploration in 1986. Noranda completed prospecting, mapping, soil sampling, magnetometer, VLF, and IP surveys. They surveyed, stripped, and channel-sampled the North Zone. They drilled three holes in 1988, one of them intersecting 3.97 m grading 9.04% Ni and 0.24% Zn on the North Zone. Aerodat and Rexhem completed airborne EM and magnetic surveys of the property in 1987. Also a metallogenetic description, including a Masters thesis entitled "Eastern Metals: une listwaenite cambro-ordovicienne cisaillée et minéralisée en Ni-Cu-Zn-Co-Au, dans les Appalaches du Québec" (by Marie Auclair) was completed under the supervision of professor M. Gauthier (UQAM). In 1997 the Eastern Metals property was abandoned, then restaked in its original configuration by F. Marzoli, E. Bawolak and A. Nazarewzka. It is being sold to the current proprietor, 6775721 Canada Inc., subject to two agreements. The property is located along the Brompton - Baie Verte Line in the Appalachian structural province. Complex zones of ophiolite and numerous slices and masses of serpentinite are found within the olistostrome along the southeast contact of this crustalscale thrust structure. These represent vestiges of oceanic crust and upper mantle, which formed in the Cambrian and were emplaced in early Ordovician time. The mass of serpentinite associated with the Eastern Metals deposit is oriented NE-SW, stretches over 2 km in length, and is 600 m thick. Contacts between the serpentinite and the sedimentary rocks are characterized by zones of talcification and carbonate +/- silicification zones. Thicknesses of these alteration zones are 5 to 25 m. They form the host for the mineralization. At Eastern Metals, the serpentinized harzburgite shows an increasing alteration approaching the sediments - from serpentinite, to talc-carbonate schist in schistose zones, to listwaenite, then to birbirite. Listwaenite formed as a result of the carbonatization of the ultramafites and is an assemblage of Mg-Fe-Ca carbonates. Birbirite is a brown to beige quartzite originating from the complete silicification of serpentinite or listwaenite. The two mineralized zone are separated on surface by about 120 m. They are oriented at 025º, plunge to the southwest at around 45º and are open down-plunge. The talccarbonate schists host disseminated mineralization, and schistosity-parallel veins and veinlets. Best grades of mineralization are found with the North Zone birbirites and the South Zone listwaenites. Main metallic minerals are pyrite, arsenopyrite, chalcopyrite, sphalerite, cobaltite, chromite, millerite, violarite, gersdorffite, tennantite, loellingite, and native copper. Most of the drill core and all of the underground samples at Eastern Metals were assayed only for copper, nickel, iron, and only rarely for zinc, gold, silver or other metals. NDT Ventures sampled the exposed North Zone mineralization in 1997 and obtained 79 g/t Au, 81 g/t Ag, 82 ppb Pt, and 1.2% Cu. Surface stockpile sampling by them returned values as high as 79 g/t Au, 21.4% Cu, 93 g/t Ag, 1.8% Ni, 0.1% Co, 0.3% Pb, 0.2% Zn, 92 ppb Pt, and 182 ppb Pd. Royal Oak Mines obtained values of 1.22 oz/t Au, 7.9% Cu, 0.34% Ni, 0.11% Pb, 0.16% Zn, and 0.19% As from the stockpile. Oracle Exploration surface sampling revealed values such as 12.9 g/t Au, 128.4 g/t Ag, 2.2% Cu, 0.59% Pb, 0.33% Ni, 0.033% Co, 0.72% As, 0.12% Cr. The Eastern Metals deposit has a complex evolution and an uncommon paragenesis for a nickel-copper deposit. It shares key characteristics with economic polymetallic deposits associated with hydrothermally-altered, obducted serpentinites. Examples include the Outokumpu polymetallic orebodies of Finland and the Bou Azzer deposits of Morocco. Based upon the accumulation of historic data, a better understanding of the metallogenesis of the deposit, and depending upon precious metal grades and overall metal recoveries, the Eastern Metals property has the potential to be developed into an economic deposit. Accordingly, an exploration program is recommended. A two-phase program is proposed. Phase II will be dependent upon Phase I results. The main component of Phase I is 9,500 m of surface drilling to confirm historic results, evaluate the precious metals grades of the deposit, collect mineralization for metallurgical bench testing, and exploring the deposit down-plunge. It also includes data compilation, surface and down-hole geophysics, a surface land survey, metallurgical bench testing, environmental benchmark testing, and down-plunge drilling. Proposed Phase II work would be comprised of accessing and rehabilitating the underground workings, surveying, sampling and mapping, all contributing to an evaluation of the deposit. The end product will be a pre-feasibility report.

Estimated cost of Phase I work is $1,750,000.

Estimated cost of Phase II work is $1,250,000.