Candorado Operating Company Ltd. - Eldorado

Overview:

Candorado Operating Company Ltd owns 100% of the Eldorado property, subject to a 2% net smelter royalty
The Property is located in the Stikine Terrane and the exploration target is a alkalic copper-gold porphyry deposit
All significant previous exploration has been carried out on the largest claim block of the Property, located northeast of the Red Chris deposit

Location, Infrastructure and Resources:

Property comprises four groups of claims covering 3,278 hectares
The largest claim block, encompassing 2,828 ha, is located 21 km southeast of Iskut Village in northern BC and 10 km northeast of the Red Chris copper-gold deposit
Road access is within 4 km to the largest claim block

History:

Texasgulf Canada carried out geological, geochemical and geophysical surveys in 1976 and 1977
A grab sample from a small hand-dug trench in 1977 yielded 0.12% copper and 0.45 ppm gold
A 1980 reconnaissance drill program by Esso Resources Canada, comprising of four shallow holes, cut two 3-metre intersections grading 0.2% copper in two of the holes
In 2004, a work program was conducted by Amarc Resources, including induced polarization (IP), magnetometer and soil geochemistry surveys
Two IP chargeability anomalies were delineated and are awaiting further interpretation

Geology:

Situated in the Stikine Terrane, which is comparable to the Quesnel Terrane
These terranes host most of the alkalic copper-gold porphyry deposits in British Columbia
Most of the Property is overburden covered, which means that geophysics is needed to help discover drill targets
Northwest corner of the Property is situated near the Ealue Stock, of similar age and composition as the mid-Jurassic Red Stock hosting the Red Chris deposit

Mineral Occurrences:

In the area of historic work, sulphide mineralization from outcrop, sub-crop and rock chips taken from auger soil sampling, consists mainly of pyrite, with lesser pyrrhotite and chalcopyrite

Recent Developments in the Area:

Imperial Metals is developing the Red Chris alkalic copper-gold porphyry deposit, situated 10 km south-west of the largest claim block

Proposed Exploration:

Interpretation of 2004 IP and magnetic survey
Extension of the IP and magnetic geophysical survey to cover the entire large claim block