ENCOURAGING RESULTS FROM GROUND GEOPHYSICS SURVEY AT MADAGASCAR’S MOUNTAIN OF GOLD CONFIRM STRONG POTENTIAL FOR LARGE DEPOSITS ALONG TREND

GEOPHYSICAL SURVEY MAPS
Dabolava East Resistivity Results (PDF)
Dabolava East Chargeability Results (PDF)
Mountain of Gold Resistivity Results (PDF)
Mountain of Gold Chargeability Results (PDF)
Dabolava Regional Area Map (PDF)

An Induced Polarization survey was recently conducted on the Mountain of Gold Project in Madagascar’s central-west plateau. The Company’s license in this region encompasses approximately 900 sq. km. situated 125 air miles west-southwest of the capital city of Antananarivo, in the provinces of Toliary and Antananarivo. The survey produced encouraging results outlining many large anomalies along trend bearing signatures similar to that found in the Dabolava East Zone, where numerous quartz veins bearing high-grade gold ranging from 4 g/t to 55 g/t Au have been encountered in Phase I and 2 core drilling to date.

The Company’s focus during the current Phase 2 exploration and drilling has been to develop a better understanding of the complex structural model controlling location of the high grade gold bearing structures within the region in order to identify additional zones similar to Dabolava East. The Company retained Spectral Geophysics of Botswana to conduct an induced polarization (IP) geophysical survey as part of this program. The survey consisted of inducing an electrical charge into the ground to identify zones of silicification (resistivity) and disseminated sulphides (chargeability) often associated with the gold mineralization.

The resulting maps contribute greatly to the structural interpretation and understanding of the area. Anomalies generally indicate disseminated sulphides associated either with the gold mineralization itself or with the alteration halo accompanying the gold-bearing structures. They may also potentially reflect nickel, copper or other metals. In this regard, the Company has already found copper near-surface at the Western end of the Mountain of Gold trend.

So far, 94 line-km of survey have been completed, 28 line-km in the Dabolava-East area and 66 line-km in the Mountain of Gold/Andimaka area. The survey has been successful in outlining numerous coincident chargeability and resistivity anomalies indicated in red and pink shades on the geophysics maps posted above. A number of these anomalies are highly pronounced and extend for hundreds of metres of strike-length. The grid areas are also being covered by a soil survey to discriminate the gold-bearing anomalies. Soil results are pending.

At Dabolava-East, the survey indicates that the known Dabolava-East mineralization revealed through drilling to date may only represent a small portion of the total mineralization present in the zone. Numerous larger geophysical targets of similar signature exist in the immediate surrounding area, potentially reflecting hidden deposits below surface. Initial drilling has been confined to targets with outcroppings or other surface manifestations.

Prospecting of the Mountain of Gold and Andimaka Zones has lead to the discovery and cataloguing of at least 58 lode (in place) artisanal mines. The workings are located along several subparallel structural trends extending for a strike-length of 3.75km so far. Of the panel samples taken from these various sites, nine returned assays between 1 and 5 g/t Au, and five between 5 and 8 g/t Au. The IP survey has yielded large anomalies in these Zones for follow-up drilling.

Given the encouraging results of the IP survey, it is the Company’s intention to pursue the survey over several grass-root prospects previously identified through the regional stream sediment survey and followed-up by prospecting.

The Company is planning an aggressive diamond drilling campaign to test these newly identified targets as well as to continue the delineation of the Dabolava-East Zone using its own Atlas Copco Christensen CS14 skid mounted wireline drill.

Property and Local Geology
The Dabolava area is underlain by the Miandrivazo Series of Proterozoic rocks consisting of migmatites, gneiss and amphibolites enclosed by more continuous schists, marbles and quartzites. All units appear to be consistent with an ancient, strongly deformed and highly metamorphosed volcano-sedimentary sequence. Early geological conditions resembled those of present-day island arc environments where subduction and terrain accretion combine to create thicker crust at the margins of existing cratons.

The Dabolava region and PAMM's A2 project area are situated at the southwest end of a corridor of transposed strata. This structure, referred to as the "Antananarivo Virgation" extends westward from the Angova deformation belt in a broad sigmoidal flexture. It is described by Nedelec as an intense, steeply dipping system that displays strong penetrative foliation predating the Angova deformation belt. Most of the 'Virgation' has not been mapped in detail, though several past regional programs identified strong E-W structures such as those that control the courses of the Mania and Mahajilo Rivers. Regional geological maps and landsat images show that primary north-south compositional fabric of the island is folded or transposed to an east-west direction within the flexture.

Orthogneiss
These are of granite to granodiorite composition, often fairly massive in texture and sometimes display porphyritic texture. Biotite is the common mafic mineral and is generally aligned along the ubiquitous penetrating fabric. They usually occur as small irregular masses enveloped in larger units of schists and gneisses. These are typically weathering resistant and often form low ridges and hills.

Paragneiss and Schists
Gneissic and schistose units are variabile in texture and composition. In general they are well foliated, ranging from fine-grained and micro-bedded amphibolites to coarser crystalline equivalents with a strong feldspathic component. Compositional and textural layering often distinguishes bands of hornblendite from the broad zones of enclosing paragneiss. The transposed lithology tends to follow a general E-W regional direction with local variations oriented to either the northeast or northwest. Some Units composed mainly of tremolite/actinolite and mica generally show a strongly developed schistosity. An occurrence of finely laminated biotite schist is reported near Ankotrofotsy. Grey augen gneisses are usually rich in biotite but display very poorly developed schistosity. Thin-bedded quartzites appear as conformable sub-units and lenses that sometimes grade imperceptibly to paragneiss. These can contain significant amounts of amphiboles, biotite or magnetite.

Tabular marble units are usually seen as small lenses, ranging from one to several meters thick and occasionally extend for a few hundred meters along strike. Occasionally they occur as large cliff-forming masses that stand in weathered relief.

Quartzites
These thick-bedded units can attain a thickness of 300m where they stand-out as well defined barren 'mountains'. They typically consist of two distinct sub-units; one a massive member composed of welded silica grains and the second grading from an arkosic facies to a strongly micaceous meta-pelite.

Granites, Pegmatites and Migmatite
Granites are late intrusives that appear to show little of the foliations developed in the enclosing strata except on their margins. Larger masses are often composed of parallel closely spaced tabular injections along schistosity. This multiple dyke style of injection can result in the incorporation of trapped metasediments within large granitic bodies. Rose quartz, a common association, results from contamination by microcline.

Lithology
Pegmatite dykes, composed of quartz, feldspar, biotite and tourmaline are common generally striking at N20E they cut the regional foliation at a shallow angle. Pegmatites are not affected by penetrative foliation though they often change attitude at granite contacts.

Migmatites are found injected along foliation planes in gneisses and amphibolites. They commonly occur as crowed feldspar porphyries sometimes alternating with banded or ribboned equivalents that carry either biotite or hornblende and occasionally sillimanite.

Gabbros
The Vongoa gabbro located on the west side of the PAMM claims is the largest of several seen in the area. The Vongoa is a nortitic gabbro containing labradorite, hypersthene, titaniferous augite, olivine and ilmenite. The smaller gabbroic bodies in the region tend to display moderate to intense alteration and are missing the ultramafic assemblage noted above.