LAC FORTUNE WEST PROPERTY

The property is located approximately 25 km west of the town of Rouyn-Noranda in the Abitibi area of Northwestern Quebec, Canada. It is easily accessible by national road 117 which passes just south of the property.

Original acquisition terms

The Lac Fortune West property consists in 17 claims. This property was transferred to Golden Share in connection with the agreement with SearchGold. As of today, Golden Share holds a 100% interest in the Lac Fortune West property.

Geological context and previous wok

The Lac Fortune West Project straddles the Cadillac fault, a world renowned auriferous structure. Previous work by SearchGold has highlighted the South King zone area with very high grade mineralized intercepts such as 855.58 g/t Au over 0.35 m and 60.43 g/t Au over 0.27 m in drill hole FOR-05-07 as well as grades on important widths such as 1.83 g/t Au over 10.94 m from 72.50 to 83.44 m in drill hole FOR 05 20. Moreover, grades of up to 16.81 g/t Au were obtained in the eastern extension of the South King zone providing a strike extension of 780 m.

An in-house study shows strong geological similarities between the South King zone and the ore body of the Francoeur mine located less than 2 km au north-east of Golden Share's property. Richmont Mines recently announced the reopening of the Francoeur mine which is directly adjacent to the Lac Fortune West property. Francoeur contains probable reserves of 615,664 tons at 6.91 g/ton of gold.

Golden Share announced in Q3 2010 the signature of an option agreement with Vanstar Mining Resources Inc. through which Vanstar can acquire a 70% interest in the Lac Fortune West Gold Property over three years by meeting the following conditions :

• By paying Golden Share a total of $45,000; $30,000 on the first anniversary date and $15,000 on the second anniversary date;

• By issuing Golden Share a total of 700,000 Vanstar shares; 200,000 shares upon signature, 200,000 shares on the first anniversary date and 300,000 shares on the second anniversary date;

• By incurring a total of $1,000,000 in exploration expenditures; $300,000 the first year, $300,000 in the second and $400,000 in the third year.

Following the acquisition of a 70% interest by Vanstar, a joint venture (JV) will be formed between Vanstar and Golden Share to further develop the property. A 1.5% NSR is payable to previous owners.

Latest developments

There is no recent development to report on the Lac Fortune West property.


All of Golden Share's exploration programs are executed under the supervision of Mrs. Laurence Huss, M.Sc., P. Geo., and Golden Share's Vice-President Exploration. Laurence Huss is a Qualified Person as defined in National Instrument 43-101. Philippe Giaro, P.Geo., President and CEO of Golden Share Mining Corporation, also acts as Qualified Person for Golden Share.