Key Lake

Placer Dome-Key Lake Property

Between 1995 and 1997, Goldstone earned from Placer Dome Canada Limited and Key Lake Explorations Limited a 100% interest in 26 patented claims and mining leases (of which 10 claims are freehold with surface rights) on 1,339 acres in Lindsley Township. To earn the interest Goldstone earned a 100% interest in the property by investing a total of $2 million of exploration expenditures.

In 1997, Cyprus Canada Inc. completed an exploration program comprising 13 holes and 2,270 metres drilled, with five holes intersecting visible gold. The drilling was part of a Cyprus program to determine the possibility of developing open pit gold mines in the Geraldton area. In 1997, Cyprus determined that the property contained a total of 150,000 ounces of gold (non-NI 43-101 compliant).

Drilling focused on either side of a three-compartment shaft with three underground levels. It confirmed the presence of gold mineralization and added to the extensive drilling previously carried out in the area, including 87 holes by Placer Dome.