Test mining at Fenelon property (May 17, 2004)

Development began with a blast in early April on the 5213 “E” stope at the Fenelon gold project in northwestern Quebec. International Taurus Resources (ITS-V) and Fairstar Explorations (FFR-T) intend to test-mine 800 tonnes of ore from the initial drift on the 5213 level.

The project is 75 km west-northwest of Matagami in the Casa Berardi area. Underground development includes a 185-metre-long drift and three crosscuts. Three zones can be developed from the current mine workings on the 5213 level, 37 metres below surface. The gold mineralization is found in silicified, sulphidized, veined zones which range in width from 1 to 6 metres. The mineralized structures plunge 75 to the east and dip 75 to the south. Underground drilling in April — 54 holes totalling 3,900 metres — has helped delimit the mineralization. Drilling has tested the deposit to a depth of 250 metres.

Metallic sieve assay techniques are being used to determine gold content in samples that contain visible gold and those that assay greater than 10 grams gold per tonne. Partial assay results from a series of horizontal holes drilled toward the south, at 5-to-10-metre intervals on the 5213 level, have been received from ALS Chemex of Val d’Or. Highlights of this drilling include 1.38 metres grading 287 grams gold per tonne, 0.39 metre at 121 grams gold, and 10.8 metres at 27.7 grams gold. The true widths are estimated to be 97% of the actual width drilled. These data have been used to help design the sill cuts.

Last April, SRK Consulting estimated an indicated resource for the Discovery zone of 49,550 tonnes grading 11.24 grams gold per tonne and an inferred resource of 38,840 tonnes grading 10.49 grams gold.

International Taurus holds a 62% interest in the joint venture, and Fairstar Explorations holds 38%. Stockpiled ore will be treated at Richmont Mining’s Camflo mill, 20 km west of Val d’Or in Malartic.