ROUND TOP PROJECT

HISTORICAL GEOPHYSICAL WORK: 2010 ZONGE GEOPHYSICAL 2D INVERSION MODELING & TARGET GENERATION

In 2012, Precision GeoSurveys was contracted to fly a high resolution helicopter aeromagnetic and radiometric survey which exhibits a large scale system expanding our mapped geology considerably. This survey and the 2010 and 1981 IP/Resistivity data were processed or reprocessed, interpreted and incorporated into our 3D data base.

In 2010, Zonge Engineering was retained by to review the historical geophysical data and to conduct two IP/Resistivity lines for comparison to the historical data in order to facilitate a reinterpretation. The Anaconda data were reprocessed using Zonge╩╝s two-dimensional inversion tools. The 2010 Line 1400E IP line from the Zonge Engineering December 2010 report is shown below. It indicates a very large and strong IP anomaly centered at stations 6300-6400 N and is interpreted to be 300 m thick, located south of DDH RT-7. This represents an untested target. The IP low in the upper part of RT-7 correlates with the oxidized and weakly mineralized portion of RT-7. The new Inversion Modeling by Zonge Engineering has delineated several new drill targets, several of which correlated with the high grade Cu-Ag replacement mineralization along the north contact of the Round Top intrusive system.

A large, integrated geophysical program was completed at Round Top during 1981-82 by Anaconda Copper Co. included 114 line kilometers of ground magnetics, gravity, horizontal loop EM and induced polarization surveys. Regional magnetic and gravity surveys were used to define the extent of buried granitic rocks. A total of 5,000 line miles of low level magnetic survey was completed by ERTEC Airborne Systems in 1981. Both of these surveys indicate that the Round Top prospect is at the northern limit of a large pluton that measures several kilometers across and is part of a larger buried batholith (Hrabak, 1982). The Anaconda geophysical program was state of the art for the 1980's and was produced by a number of geophysicists that are well respected in the industry, including Perry Eaton, Newmont; Mark McDermott, Conoco Phillips, John Kingman, Jack Corbett and many others.