Exploration focused on the Breccia Fault grid in 2007. A 2000 metre by 1800 metre soil grid was completed on a 25 metre by 50 metre grid spacing. A large area (1000m x 2000m) of multiple linear east-west and north-south trending anomalies was identified. These linear anomalies are both long and wide, cross-cutting each other, which may suggest a new mineralized system. The anomalies are summarized below:

Initial prospecting of the linear anomalies and grid mapping was successful in locating zones of clay carbonate alteration and bleaching, and chalcedonic quartz stringers. These are characteristic features of epithermal precious metal vein systems.

Following up on the gold-in-soil anomalies, a series of continuous soil hand trenches were established across the anomalies to narrow down areas for mechanical trenching and diamond drilling.

A total of 25 soil hand trenches were excavated. Each trench was laid out across the gold-in-soil anomaly to both verify the anomaly and assist in the subsequent location of excavator trenches.

The summary table shows the results of the hand soil channel trenching. The initial soil trenching concentrated on the south end of Anomaly G where trench 07-G-01 returned a continuous 40 metre interval averaging 176 ppb and trench 07-G-02 returned two intervals: a 39 metre interval averaging 378 ppb Au and a second 34 metre interval averaging 83 ppb Au.

The late fall soil trenching concentrated on Anomalies E and F. Trench 07-E-01A returned a 13 metre interval averaging 393 ppb Au and 07-E-1B returned an 8 metre interval averaging 159 ppb Au and a second 6 metre interval averaging 310 ppb Au. Trench 07-E-02A returned a 14 metre interval averaging 1014 ppb Au and included a 4 metre averaging 3110 ppb Au. Trench 07-E-02B returned a 14 metre interval averaging 714 ppb Au.

Trench 07-F-2A returned a 19 metre interval averaging 2993 ppb Au and included a 6 metre interval averaging 7356 ppb Au. Trench 07-F-2B returned an 18 metre interval averaging 905 ppb Au and a second 17 metre interval averaging 633 ppb Au.

Appleton followed up the soil channel results of 07-G-01 and 07-G-02 with a series of 15 excavator trenches. A further 5 trenches tested the Anomaly A / Anomaly G junction area and a further 2 trenches tested the edge of Anomaly E.

The Anomaly A / Anomaly G trenching returned values ranging from 5 to 84 ppb Au. The two trenches in the Anomaly E area returned one value of 0.472 gpt Au over 1 metre.

The trenching has defined a 130 metre wide by 200 metre long area of intense hydrothermal alteration within the southern portion of Anomaly “G”. Several zones of bedrock gold mineralization were unearthed within this area.

All Anomaly G samples consist of 1 metre continuous bedrock chips. Bedrock exposure ranged from 25% to 80% in the 15 trenches (averaging 58%), due to deep overburden. Geologists often interpret sections of deep overburden as corresponding to zones of recessive, altered and possibly mineralized areas. Bedrock consisted of weakly to strongly bleached, oxidized and silicified dacite, with the exception of Trench 07-12, 80 metres to the south of soil channel trench 2.

Trench 07-07 was 38 metres long, cutting across the central section of soil grid anomaly “G” between the two soil channel trenches. 70% of the trench reached bedrock. Gold values in the trench ranged from 9 ppb to 1.38 grams per tonne. Within the trench a 6 metre continuous interval averaged 0.919 grams per tonne gold. In addition, a one metre interval reported 1.02 grams per tonne.

Trench 07-08, was 25 metres long, lying immediately south of the eastern section of soil channel trench 2 on gold-in-soil anomaly “G”. Approximately 75% of the trench length reached bedrock. Gold values in trench 07-08 ranged from 11 ppb to 761 ppb.

Trench 07-08A, the western continuation of Trench 07-08 was 5 metres long. A four metre continuous interval averaged 193 ppb Au. Eighty percent of the trench exposed bedrock.

Trench 07-09 was 27 metres long and lies immediate north of eastern half soil channel trench 1. Bedrock was exposed in 67% of this trench. Gold values ranged from 2 to 379 ppb Au, with a continuous 3 metre interval averaging 243 ppb Au.

Trench 07-09A was 37 metres long and lies immediately north of the western half of soil channel trench 1 and immediately west of Trench 07-09. Only 53% of the trench reached bedrock. Gold values ranged from 1 to 823 ppb Au, with a continuous 5 metre interval (open in both directions) averaging 512 ppb Au.

Trench 07-10 was 67 metres long, lying 10 metres to the south of Soil Trench 2. Only 52% of the trench exposed bedrock. Gold values in the trench ranged from 1 to 578 parts per billion (ppb) Au. A continuous 5 metre interval averaged 337 ppb and a second continuous 4 metre interval (open to the west) averaged 270 ppb Au.

Gold values in the remaining Anomaly G trenches ranged from 1 to 487 ppb Au. Trench 07-12, 50 metres long, exposed a darker grey green dacite porphyry showing zones of quartz stringers and some silicification. A 1 metre continuous chip assayed 487 ppb Au.