Previous Work on the Property

Gold was first discovered in 1907 on the south shore of Painkiller Lake on Lot 7, Concession V. Cartwright Mines was formed in 1912, incorporating claims staked in this area by Mr. Cartwright and Veteran Lots acquired by a promoter. Blue Quartz Mines Ltd. was formed in 1921 to succeed Cartwright and Santa Lucia Mines, which was incorporated in 1919. Amalgamated Goldfields was then established in 1933 to take over the assets of Blue Quartz Mines.

The subsequent formation of Headwater Mines in 1955 to take over Amalgamated Goldfields and Clifford Gold Mines was followed by the inception of Hardill Resources, (a private company) which in 1979 took over Headwater's holdings. The property was optioned to Larder Resources in 1980, but later returned to Hardill. Joutel Resources Ltd. optioned the property in June 1987 and entered into a joint venture agreement with Central Crude Limited in October 1987.

In 1913, a vertical two compartment shaft was sunk on the south shore of Painkiller Lake to a depth of 200 feet to investigate the potential of veins exposed on surface in that area. Working levels were established at 49, 91 and 191 feet with lateral work being done on the two lower levels. During this period of development the surface plant was twice destroyed by fire resulting in the closing of operations in 1916.

Exploration was renewed in 1921, and both surface and underground work was carried out by Blue Quartz Mines until 1928. The shaft was deepened to its current depth of 514 feet and expanded to 3 compartments below the 200 level. Underground work from the shaft consisted of drifting to the north and to the east on the 500 level. Development of the easterly drift included the sinking of a winze (72 degree inclination) from the 200 level to investigate the potential of a particular quartz vein. Level stations were cut at 300 and 400 levels and a chute was also opened from 300 to 500. Poor results from this vein curtailed this work and no information regarding the 300 level and 400 level development is available. The discovery of potential ore in the northerly drift ended the easterly exploration.

The northerly development trended north until it cut an east-west "break" with sulphide mineralization and turned to drift east and west along it. A second winze was sunk and levels established at 625 feet and 750 feet, The vein was found and explored on the 625 level, Work on the 750 level did encounter some veining but the 500 level vein was not found.

Russet Lake Minerals completed a 4 hole, 828 metre, diamond drill program on the Blue Quartz property, testing the Shaft Vein and North Vein, in the fall of 2008. The drilling was intended as an initial test of the 2 structures in the vicinity of the shaft collar. The best results from the drilling were quartz-carbonate veins with pyrite, arsenopyrite and sphalerite assaying up to 9.7 grams Au per tonne over 1.3 metres. Two holes encountered underground workings with low Au values proximal to the workings.

All the holes encountered numerous quartz-carbonate veins with arsenopyrite and pyrite. However, the presence of the veins indicates the opportunity for additional gold zones on the property, both between the 2 known mineralized structures and along strike from the known mineralization.

A summary of underground development work is presented below:

1913-1916
- 200 foot vertical 2 compartment shaft
- 100 foot leve1: 345 feet of lateral work
- 200 foot level: 790 feet of lateral work
*note: footages are totals for each level some work was completed from 1921-1928

1921 - 1928
- shaft deepened to 514 feet - expanded to 3 compartments below 200 level
- winze sunk from 200 level to 500 level in eastern drift with chute from 300 level to 500 level
- winze sunk from 500 level to 750 level in northern drift, four short raises and one sublevel drift in this vicinity
- 500 leve1: 4200 feet of lateral workings
- 625 level: 970 feet of lateral workings
- 740 leve1: 720 feet of lateral workings
- surface and underground drilling, drift back removal (local)

1933
Amalgamated Goldfields produces 30 ounces of gold by processing 500 tons of
material from the 100 and 200 levels and the surface dump.

1940-1945
surface drilling

1980
Larder Resources Inc. dewatered the workings for sampling, mapping and
surveying.

2008
- Russet Lake Minerals completed a 4 hole, 828 metre, diamond drill program showing veins with pyrite, arsenopyrite and sphalerite assaying up to 9.7 grams Au per tonne over 1.3 metres.
- Two holes encountered underground workings with low Au values proximal to the workings.