Exploration -  - Victoria

Figure 8: Section of Drill Intersection at Victoria Property

The 2008 exploration program was the first field exploration activity in five years at the Victoria Property. The focus of last year’s program was to test Quartz Diorite dykes for offset type mineralization, specifically down-plunge and east of the Power Line Deposit. Three holes totaling 9,401 ft were drilled, two down-plunge of Power Line Deposit and the third located 500 ft east of the first two holes. The focus then shifted to the No. 4 Orebody Quartz Diorite and its down-plunge extension. Three holes were completed for a total of 6,175 ft, which intersected shallow stringer sulphides. Finally, drilling efforts at Victoria moved to an untested pinched Quartz Diorite. The initial test hole and a wedge hole intersected five distinct intervals of mineralization from 1,700 ft to 3,800 ft. The first four intersections were hosted by Quartz Diorite and the last interval by Metabreccia. Selected assays from holes FNX 1172 and FNX 1172B include 75 ft of 1.8% Ni, 0.5% Cu and 0.7 g/t TPM and 20.1 ft of 1.1% Ni, 1.8% Cu and 17.4 g/t TPM. Additional stepout holes were drilled on the discovery with variable results however, the UTEM downhole geophysical survey identified multiple conductors. In total, the Company completed 26,762 ft of drilling in 10 holes at Victoria in 2008 (see Figure 8).

No further drilling on the Quartz Diorite target is planned for 2009, however, a geological and geophysical compilation of the 2008 results will be completed and targets prioritized for future follow up.