Hiawatha Property

Location and Description
The Hiawatha Property in Lizar Township, Sault Ste. Marie Mining Division, is located 120 km east-northeast of Hemlo and 350 km east of Thunder Bay in South Central Ontario. The property consists of 7 patented and 4 unpatented mining claims covering a total area of 747.22 hectares. Trelawney acquired 70% interest in the property in exchange for the sum of $40,000 and the issuance of 400,000 common shares of the Company.

The property is located in the Kabinakagami Lake Greenstone belt, which is part of the Wawa Subprovince and forms an isolated belt of mostly mafic metavolcanic rocks. The greenstone belt is approximately 100 km in length and between 1 and 20 km in width. The property occupies a 4.6 km long by 3 km wide sequence of northeast-trending, steeply dipping mafic metavolcanics injected by numerous parallel granodiorite sills (1-150 m wide). This sequence is flanked to the north by a regional granodiorite batholith and to the south by feldspathic and quartz-rich metasedimentary rocks. The Bear Creek Fault which crosses the property in a northeasterly direction has moderate to strong shearing associated with it.

Hiawatha Geology and Claims
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Gold was initially discovered on the property in the mid 20's with 3 major gold zones discovered in the 30's, the North, South and West Zones. The North and South Zones were explored underground via a 100-m vertical shaft and two levels at 45 m and 84 m below surface. The West Zone, 800 m southwest of the shaft, was explored on surface only.

Gold mineralization consists of native gold associated with sheared, silicified and altered zones; gold is present as fine grains within or adjacent to late quartz veins. Highlights of historic sampling in the North Zone includes 2nd level channel samples of 95 g/t and 65 g/t Au over 0.9 m and surface grab samples of up to 153 g/t and 168 g/t Au. Historic sampling of a 425 m length of the South Zone on the 2nd level yielded greater than 10 g/t Au for 40 of 78 samples taken across widths of 0.30 to 1.52 m.

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