U.S. REPORT (January 27, 1992)

Assay results were released by Ican Minerals (TSE) from recent reverse circulation drilling on the Racey “porphyry” gold deposit 40 miles south of Baker, Ore.

The company owns 100% of the property since the departure of former partner Billiton Minerals USA, which recently pulled out of mining and exploration activity in North America.

Billiton and Ican focused previous drilling in the Main zone, an area of the porphyry gold

intrusive measuring about 4,500×2,500 ft., and to depths of up to 860 ft. A report, based on 164 drill holes, shows that potential (preliminary) reserves in this area are 200 million tons grading 0.02 oz. gold per ton (calculated to a depth of 500 ft.).

Assays were released from five of nine holes drilled late last year within the Main zone. The majority of this drilling was done in overburden-covered areas with little or no drilling.

Hole 170 returned a 225-ft. intersection grading 0.033 oz. gold per ton from 0-225 ft., which includes 30 ft. of 0.13 oz. gold. Other holes returned: 70 ft. of 0.02 oz. gold, 125 ft. of 0.029 oz., 200 ft. of 0.024 oz. and 70 ft. of 0.021 oz.

Shallow exploration drilling was also carried out in overburden-covered areas outside the Main zone, which returned anomalous values in the south extension of the Racey intrusive.

Some work has been done to test the metallurgy of the sulphide deposit. Results indicated recoveries of about 90% using conventional milling and flotation processing methods.