SAGC has an Atlas Copco Mustang down the hole hammer, high pressure, drill rig and has shown this rig has the capacity to reach 200 meter depths extremely rapidly, and at a very modest cost.Approximately 50% of the altered area at Pimenton corresponds to valleys masked by fill that can be evaluated by geophysics and subsequent drilling. There are four other tourmaline breccia pipes which need to be investigated to depth. On the Pimenton ridge, there are zones of close fracturing where there are strong surface geochemical gold anomalies striking northeast which point directly at the newly recognized breccia pipe. These carry trace copper and may overlie blind tourmaline breccia pipes that have not stoped their way up to the ridge, or for that matter, they may overlie disseminated copper mineralization.

   This report was prepared by Dr. David Thomson, Executive Vice President and Director of Exploration of SAGC and a "qualified person" for the purpose of National Instrument 43-101.