RECENT WORK PROGRAMS During 1993 mapped the geology on portions of the Fort 1-6 mineral claims and quickly recognized the potential that these mineral claims have to host sizeable epithermal goldsilver deposits. During May of this year (1994), a geologist representing a major exploration company collected four random samples from the property. Two of the 4 samples contained anomalous gold values (50 and 550 parts per billion) and a third sample contained anomalous silver (6.8 ppm). These values are considered highly significant in that the main cores of any precious metal ore zones occurring on the properties are hypothesized to lie 100 metres, or more, below surface (see Figure 9 accompanying this report).

EXPLORATION TARGET The well-known Cannon Mine at Wenatchee and some of the very productive epithermal gold mines of the Republic District of Washington State provide examples of the type of ore zones that are sought on the Fort Knox properties. Geological mapping conducted in 1993 on the Fort Knox properties provided the data that has allowed for the drawing of the cross-sectional geology which is illustrated on Figure 9 accompanying this report. Although it should be understood that everything drawn below surface on the cross-section is hypothetical at this time, there are strong surface features that support the model of the ore zone as illustrated.

The theory behind the model suggests that silica-rich epithermal solutions ascended the Fort Knox Basement Fault under pressure, that these solutions encountered the highly permeable 4d conglomerate unit, and that with the sudden decrease in pressure brought about by the permeable rock that large volumes of precious-metal-bearing silica were immediately precipitated out of solution. The highest concentration of precious-metalbearing silica, therefore, lies near the base of the 4d conglomerate unit where it is in contact with the fault. The theory also suggests that lower temperature solutions under lower pressure continued to permeate up through the porous conglomerate unit altering rock minerals and precipitating pyrite. It is also recognized that refracturing by later fault movements and the re-introduction of epithermal solutions resulted in several phases of mineralization. The criss-crossing, banded, multiphase vein patterns at the Fort Knox property stockwork are typical of epithermal systems mapped around the world. The stockwork showing on the property illustrates one zone of weakness where the epithermal solutions have reached surface (ie. today's surface). The fact that some of the surface samples (collected well above the hypothesized ore zone on Figure 9) have yielded anomalous gold and silver values provides an exciting clue as to the grade of gold that might be expected to lie at depth nearer the Fort Knox Basement Fault. The size potential of the epithermal precious-metal-ore zones on the Fort Knox properties is also an exciting feature. The receptive 4d conglomerate unit is 100 metres thick and it has been traced for 900 metres along strike before disappearing under glacial till. The conglomerate unit could conceivably underlie the 6 kilometre length of the properties

 The Fort Knox properties have yielded samples with higher gold and silver values than did the initial samples on the Vault property, and I feel that the Fort Knox deposits may be much closer to surface than those on the Vault property. I feel that the Fort Knox properties have a high potential and that they will be much less expensive to explore than was the Vault property.

It is important to note all of this report pertains to the ground covered by the claims presently staked.