Work History

The presence of gold mineralization in the area has been known since 1929. On the property the mineralization and work history is best described in terms of two main sectors, the East sector and the West sector.

The West sector has been the object of most of the previous work and comprises three sub-parallel mineralized zones. They are from south to north : South zone, Main zone and NW zone. They consist essentially in quartz injected shear zones displaying ankerite and tourmaline alteration / assemblages. A total of 183 diamond holes have been drilled into these zones by various companies including Golden Shaft, Toburn Gold Mines, Macfie Exploration, Hollinger, Mac Fort Gold Mine, Pepperess, Marosa Mines, Northwest stakers and Mac Intosh. However, the most comprehensive and detailed work was carried out by Exploration Brex and Ressources Forbex in the late 1980's. A stripping program was undertaken by SearchGold in the fall of 2004 on the Lake Fortune West property and targeted principally the Main zone located in the West sector. The trenching exposed a quartz-ankerite vein mineralized with pyrite and chalcopyrite and a tourmaline-quartz-ankerite horizon mineralized with chalcopyrite. The best grades from channel sampling were obtained in the tourmaline-quartz-ankerite horizon with results of up to 12.45 g/t Au over 0.32 m. A diamond drilling program was executed by SearchGold during the 2004-2005 winter season and returned encouraging gold grades : in the West sector, the Main zone returned grades of up to 11.89 g/t Au on lengths of up to 2.3 m.

The East sector had been the object of relatively little exploration until work was carried out by Exploration Brex and Ressources Forbex in the late 1980's. Both companies drilled a total of 20 diamond holes and their results highlighted Francoeur-style mineralization with the presence of a felsic intrusive body associated with a north dipping gabbro and pervasive hematization. During SearchGold's first drilling campaign, a mineralized interval of 2.5 g/t Au over 4.1 m was returned from in hole LF-04-19 within a broader halo of mineralization yielding 1.21 g/t Au over 11.37 m. The East sector was then renamed "South King Zone". In the fall 2005, a second diamond drilling program was executed on the Lake Fortune West property specifically targeting the South King zone. The program consisted in 28 holes totaling 2,917 m and a total of 27 diamond drill holes were executed on the South King zone for a total metrage of 2,668 m. The strategy of the program was to drill short vertical holes on 25 m centers to properly test the geometry and grade of the mineralization. A total of 22 such short holes were drilled near the center of the South King zone for a total of 1,888 m. The highlights of these holes are:

• FOR-05-03 : 0.92 g/t Au over 12.94 m from 6.24 to 19.18 m (including 1.84 g/t Au over 4.43 m from 13.90 to 18.33 m),

• FOR-05-07 : 855.58 g/t Au over 0.35 m from 29.83 to 30.18 m, 0.92 g/t Au over 0.83 m from 45.62 to 46.45 m and 60.43 g/t Au over 0.27 m from 69.18 to 69.45

• FOR-05-08 : 1.74 g/t Au over 6.20 m from 40.82 to 47.02 m

• FOR-05-09 : 0.95 g/t Au over 14.05 m from 30.95 to 45.00 m (including 1.48 g/t Au over 7.32 m from 32.39 to 39.71 m),

• FOR-05-10 : 1.66 g/t Au over 1.56 m from 55.07 to 56.63 m and 1.10 g/t Au over 1.24 m from 82.82 to 84.06 m

• FOR-05-12 : 1.02 g/t Au over 11.43 m from 73.90 to 85.33 m

• FOR-05-18 : 1.16 g/t Au over 0.79 m from 117.00 to 117.79 m

• FOR-05-20 : 1.83 g/t Au over 10.94 m from 72.50 to 83.44 m in hole (including 11.42 g/t Au over 1.50 m from 77.14 to 78.64 m)

• FOR-05-26 : 3.52 g/t Au over 0.33 m from 57.00 to 57.33 m
A total of 5 holes were drilled to test the eastern extensions of the South King zone for a total of 780 m. The highlights of these holes are:

• FOR-05-16 : 16.81 g/t Au over 0.50 m from 42.23 to 42.73 m

• FOR-05-23 : 1.91 g/t Au over 2.57 m from 50.45 to 53.02 m and 5.37 g/t Au over 0.80 m from 51.75 to 52.55 m

These most recent drill results clearly indicate:

• Mineralization associated with a southerly dipping felsic intrusive hosted in a north dipping gabbro,

• Hematite and fuchsite alteration associated with shearing and gold mineralization,

• Presence of mineralization in the range of 1 g/t Au over broad intervals (+ 10 m),

• Presence of very high grade zones associated with fractures on the border of the felsic intrusive,

• Extension of known mineralization towards the east.