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Click here for more project details... -------------------- Highlights Introduction Regional Geology Boka Trend Discovery About the Boka-Huidong Trend Exploration Program

2007 Huidong exploration program focuses on Laowangshan Prospect

Magnus' 2007/2008 exploration program will focus on the Laowangshan target area, which is located in the south-central part of the Huidong Property. Preliminary exploration in 2005 showed that the area has the highest concentrations of gold and copper in soils observed to date at the Huidong Concession, with one single sample containing 3014 ppb Au (over 3 g/tonne Au) and over 1% copper.

This very high concentration of gold in soil occurred in a cluster of other very high Au-in-soil concentrations. Of the 1612 samples analyzed from Huidong South, 577 contained greater than or equal to 20 ppb Au, 160 contained greater than or equal to 50 ppb Au, and 45 contained greater than or equal to 100 ppb Au.

Follow up of preliminary results and review of 2006 drilling program

In addition to follow-up mapping, trenching, rock-chip, sampling, geophysics and drilling at Laowangshan in 2007, the program will also review the 2006 drill program for Dingjiaping and Laoshuijing, including a multi-element geochemical review. A total of 3749.78m of core drilling in 12 holes were completed in 2006: seven at Dingjiaping and 5 in Laoshuijing. One or two holes each at Dingjiaping and Laoshuijing may be drilled in 2007/2008.

For a detailed report on 2006 drilling results, see 2006 Drilling Summary.

Figure 1: Huidong Boka image showing gold soil anomalies and major structures.

Huidong's most extensive soil anomalies

Infill soil sampling programs have identified extremely strong concentrations of gold and copper in soil, with up to 3 g/t gold and over 1% copper. These soil anomalies are the most extensive in the Huidong Property, covering an area of approximately 6 km², as shown in Figure 2. Several discrete anomalies can be observed within the Laowangshan area. The anomalies were identified from a total of 1612 infill soil sample results collected during the 2005 infill-sampling program for the Huidong South area of the Huidong Property.

Figure 2: Large multi-element anomalies cover an area of some 6 km² in Huidong South. Several discrete anomalies can be observed within the Laowangshan area.

Detailed Targeting Underway

At the Laowangshan area within the Huidong South target, reconnaissance geophysics has identified targets, which coincide spatially with previously known zones of elevated gold and copper concentrations in soil.  

A detailed review of all the information available for the Laowangshan Prospect area has been completed allowing detailed targeting. To date this has involved mapping and rock chip sampling in the areas denoted as anomalies 4 and 6 in Figure 3.

The results of road cut sampling as well as the more recent channel sampling are shown on Figure 3. Significant results can be seen in two locations labeled Anomaly 4 and Anomaly 6 on Figure 7.0-5.

Figure 3: Anomalies 4 and 6; gold in rock samples. Significant gold values (greater than 1 g/t) are shown in red.

Comments on Anomalies

Anomaly 4: Located to the north in Figure 3. Sampling aimed to follow up mineralized structures of note in road cut samples with assays of 1.08 and 1.37 g/t gold.

Results of this follow-up to date have identified several broad zones (10 to 30m wide) of deformed and sericite altered phyllite with quartz veining. Sample results to date include assays of 2.18, 3.89 and 2.61g/t Au over sample lengths of 1.0, 1.4 and 1.1m respectively.  More assay results are awaited.

Initial mapping has identified surface expressions of shear zones coincident with high gold–in-soil samples at the Laowangshan Prospect (Figure 7.0-6). The true extent of these northwest – trending shear zones is not known at this time.

Anomaly 6: Located to the south and aimed at following up on the Copper-Gold mineralization located at an old mine. It is not known when this was mined but there are extensive tunnels and a large waste dump present at this location.

Samples collected from the old copper-gold workings include 29.4 and 40.1 g/t gold (along with greater than 2% Copper). Follow-up of the copper-gold mineralization on the eastern side of the river has led to the discovery of new copper-gold mineralization, which includes gold assays of 1.4, 1.02 and 1.43 g/t gold and associated copper assays of >1%. There is a close association of Copper and Gold within the anomaly 6 area.

The Au-Cu mineralization appears to be hosted within a preferred lithology, in this case a dolomite unit. The extent of the mineralization remains unknown.

Figure 4: Target 1 at Laowangshan Prospect shows geology and sufficient gold results in shear-brecchia zones.

Soil anomalies point to Boka Property

Analysis of soil anomalies in Laowangshan (Figure 5) indicates a close spatial relationship to what is being called the Huidong-Boka Fault. This structure is thought to dip steeply to the southwest and trends to the southeast, directly to the Boka Property of Southwestern Resources located some 10-15km to the southeast.

Figure 5: Huidong Project showing geology, structure and soil gold anomalies

A detailed review of all the work to date indicates that a major NW-trending structure appears to control the copper and gold mineralization observed in this prospect area.

When the geochemical anomalies are superimposed on the detailed geological plan (Figure 5) it appears that the main gold soil geochemical anomalies are associated with the intersection of the NW-trending structure and a preferred stratigraphic horizon – in this case a dolomite unit. This horizon is repeated several times by folding within the Laowangshan Prospect area. Anticlinal hinges may also act as suitable structural traps for mineralization and are valid targets in Laowangshan.

A significant conceptual target is the Boka Marker Limestone Horizon is which expected to be located in the sub-surface at Laowangshan. Targeting of this horizon is planned as a part of the 2007/2008 program.

Details of 2007/2008 Program for Laowangshan

• Mapping and ground truthing of the 6 main anomalies as identified by the soil geochemistry
• Review of the copper potential of the SE portion of the Laowangshan Prospect area (anomalies 5 and 6)
• Trenching in areas of shallow cover to expose bedrock and further define the extent mineralization and structures
• Possible tunneling in priority target areas
• Completion of ground geophysical programs including magnetics and IP in priority target areas
• Use of man-portable drill rigs to complete 3,500-4,000m of diamond drilling
• Multi-element geochemistry on all rock, trench and drill core samples