Phase 1

Phase 1 and Phase 2 are designed to exploit the gold and silver in the first 40 meters of depth in the VMS lenses. The Phase 1 is a simple washing of the gold from high-grade cores of the lenses as these grades may not be recovered by a heap leaching facility. The program requires the clearing of the working areas around the initial target zone and the construction of a washing facility. This is a temporary plant including a grizzly, screening process, 2 sluice boxes and 2 centrifugal concentrators.

An additional requirement is a tailings impoundment to hold the tails for further processing, either by an in-place vat leaching system (should one be required at this point) or later placement on to the heap leaching facility. There is also an oxide copper resource indicated in the Oxide Zone that contains 1.6 million pounds of copper at 0.12% copper that is potentially associated with jarosite and will have to be stockpiled while further research and testing of the metallurgy for recovery of the copper is conducted.

Phase 2

Phase 2 is designed to start the heap leaching facilities and process. This requires the construction of the liner for the pad, plumbing for spraying the CN fluids, collection ponds, piping for the electro-winning recovery system, etc. This operation may require a crushing circuit, a trommel or screening facility, and laboratory and refining facilities.

It is anticipated that the revenue generated by the Phase 1 and beginning of the leaching process will generate sufficient cash to maintain the Program leading into the third phase, the exploitation of the Supergene chalcocite copper resource.

SUPERGENE COPPER ZONE (Phase 3)

Phase 3 of the program is to exploit the copper mineralization. The Supergene extended resource has 267,000,000 pounds of copper at 1.85% in 6.5 million tonnes of mineralized rock also containing gold and silver credits. An outside private company has estimated that only the A1 Lens Supergene resource contains 75 million pounds of copper at 3.13% copper, 17,000 ounces of gold at 0.49 g/t and 287,000 ounces of silver at a grade of 8.19 g/t. Evaluation of the metallurgical recovery processes for each of the three zones of the VMS will be instituted at the time of funding and will continue through all the early Phases of work.

Continued mining will expose and then exploit the higher- grade copper in the Supergene Zone approximately 45m thick directly under the Oxide Zone. This material is estimated to contain 267 million pounds of copper in 6,537,000 tonnes at 1.85% copper, with limited gold values but global silver values in the A-1 Lens averages 8.1 g/t (525,000 ounces of silver in the A-1 Lens supergene zone alone). More metallurgical testing is required to optimize the copper recovery process but is now thought to be addressed by flotation methods using any of the newer reagents such as those by “CyTex” or “Oceans Technologies” which produce very good results including an ability to scrub any antimony (limited values in our system). The flotation system will require a tailings impoundment area which can be located and developed while mining the gold zone in Phase 2 (the advantage of heap leaching the oxide materials is that we can retain the permanent heaps and not require a tailings location earlier in our exploitation).

The extraction of both the Supergene copper and the Oxide gold will better expose the Primary Sulfide mineralization for bulk sampling for full scale metallurgical testing to optimize a recovery process and assist in defining the full characteristics of the principal target. It will allow for better controls on infill drilling programs, rock classification for mine planning and add very strong confidence in the initial potentials of these primary 3 VMS Lenses. All this data will assist in the further and ongoing evaluation of the potential of the favorable stratigraphic horizon that hosts these VMS deposits along the entire Greenstone Belt on the 35km of favorable geology in the concessions’ ground.

Limited testing of the Supergene Zone has been completed in the past and those reports are in our data room. This full- scale phase of exploitation will be addressed immediately when we obtain metallurgical support on site during our first phases. The economics can be generated by the above resource target values. As before, all mineralization is open in all directions and we anticipate to rapidly expand the mineralization by our early drilling program in the preliminary phases. Phase three is anticipated to generate copper sales and income starting in the 6th to 8th quarter after funding.

PRIMARY SULFIDE ZONE (Future Phase 4)

The Primary Sulfide Zone of the VMS has only limited testing to date. The potential is completely unknown as all three lenses are open in all directions. It is planned to continue to explore and test the Primary Zone as exploitation activities continue on the upper two zones of the VMS Deposits. The “Blue Sky” potential is staggering. The raw data has been organized into an electronic data room and we are now reformatting it into viable working and planning maps and sections. The drill hole and trench data is available in digital format and will have to be organized and evaluated with appropriate software (now being reviewed).

Computer Model of the A-1 Zone showing that it is open in all three directions

The currently available potential of the Primary Sulfide Zone is highly restricted as extremely little drilling has been done into this zone. The numbers that have been written vary but one outside review group modeled the A-1 lens only, too limited data was available for a minimum population. This review suggested a global resource of 2 million tonnes at 0.84 g/t gold (54,000 ounces), copper at 1.41% providing 62.5 million pounds of copper and a silver grade of 8.1 g/t for 525,000 ounces.

Upside Potential

Although the company already has a seven-year plan to fully exploit the first three lenses, one must remember that each of the three defined lenses are still open (larger and not fully defined) in three directions. This will add a significant boost to the company’s reserves. In addition, the company will further define 11 other already identified copper anomalies, which may be additional lenses and exponentially increase the company’s reserves. Like in other worldwide VMS deposits, VMS lenses tend to develop in clusters with an average of 10-15 lenses per deposit. Criss Capps, the Company’s QP, believes that SAC may have an 80-100-year extraction project.