Faymar Property

Through its amalgamation with Faymar, Goldstone owns a 100% interest in 26 patented claims, totaling 399 hectares (985.5 acres) in Deloro Township near the Dome Mine in Timmins. A 1% net smelter return royalty is payable to the vendors of the property. The patents contain the past producing Faymar Gold Mine which produced 119,181 tons at an average recovered grade of 0.183 ounces of gold per ton and 0.11 ounces of silver per ton between 1940 and 1942. A total of 44,028 tons were also processed in the Faymar mill from the nearby Fuller property at an average recovered grade of 0.148 ounces of gold per ton.

The Faymar patents are located in the Porcupine gold camp and are underlain by Archean supracrustal rocks of the Abitibi Greenstone Belt. On the property, they predominantly consist of andesite and basalt flows of the Deloro Group with minor iron formation. A large body of dunite ultramafic occurs in the northwest corner of the property and east-striking quartz-feldspar porphyry dykes intrude the volcanic rocks and dunite. Several faults occur on the property and are splays from the nearby Destor-Porcupine Fault, a large regional structure important in localizing gold in the Timmins area.

Gold on the Faymar property is hosted in a series of quartz veins and shears, marginal to porphyry dykes. An old asbestos deposit is also located in the ultramafic rocks. An airborne magnetic and electromagnetic survey flown over the Timmins area in 1987 detected a series of linear magnetic and electromagnetic anomalies on the Faymar patents and no follow-up work has been carried out to test their potential.

Goldstone announced encouraging results on the 2002 exploration program on the Faymar Property in Deloro Township. A mapping program re-discovered 60-year old workings along a NW trending, high-grade gold-quartz vein from which samples returned values up to 56 g/t Au. Goldstone, however, was primarily interested in examining the untested PGE potential of the ultramafic rocks that lie to the west of the Faymar Gold Mine. Surface samples from the ultramafic rocks returned values up to 0.5 g/t Pt+Pd and 0.6% Ni. A follow-up 2,419m (13 hole) diamond drill program yielded concentrations up to 0.96 g/t Pt+Pd over 1.6m and 0.7% Ni.