Candorado Operating Company Ltd. - Murphy Lake

Overview:

Candorado Operating Company Ltd owns 100 % of the Murphy Lake Property, subject to a 2% net smelter royalty on a portion of the Property
The Property is in the Quesnel Terrane and the exploration targets are alkalic copper-gold and calc-alkalic copper porphyry deposits

Location, Infrastructure and Resources:

The Property lies west of Murphy Lake in the Cariboo region of British Columbia, 50 km north of 100 Mile House, and comprises 28,000 hectares
The Property borders to the south GWR Resources' Lac La Hache property, which hosts copper-gold porphyry mineralization at several occurrences
The Property adjoins the southern boundary of Fjordland and Cariboo Rose Resources' Woodjam South property. A 2007 IP survey led to the discovery of copper calc-alkalic porphyry mineralization in a new area called the Southeast Zone. This zone lies within 1 km of the Property
Good access to the Property is provided by a network of logging and exploration roads from 100 Mile House and Lac La Hache
100 Mile House and Williams Lake, located along Highway 97 west of the property are resource oriented communities

History:

Numerous companies have explored the area since 1966. Diamond drilling was performed by Craigmont Mines (1974) and Regional Resources (1995)

Geology:

Situated within the central portion of the Quesnel Terrane, which is dominated by alkalic and calc-alkalic island-arc volcanics and co-magmatic intrusives of the Triassic Nicola Group
Recent mapping by BCGS geologist P. Schiarizza indicates that portions of the Property is underlain by Late Triassic Spout Lake intrusives, consisting of monzodiorites and monzonites
The Takomkane batholith lies on the eastern margin of the Property. The newly discovered Southeast Zone on the adjacent Woodjam South property lies within this intrusion
Most of the Property in covered in relatively thick overburden, which means that geophysics is needed to help discover drill targets

Mineral Occurrences:

In the area of the Murphy Lake Showing, drill core has shown copper mineralization to occur within 10 to 15-cm thick chalcopyrite-chlorite-quartz veins as well as on fine fractures within K-feldspar veins
The geology, alteration and mineralization encountered confirm that copper-gold alkalic porphyry mineralization exists on the Property

Historic Exploration Results:

Drilling in 1995 by Regional Resources returned 0.41% Cu over 41.7 m in hole ML95-06, as well as a second zone of 1.14% Cu over 9.3 m. ML-95-1 returned 0.20% Cu across 45 m.

Recent Developments in the Area:

GWR Resources is continuing exploration on its copper-gold porphyry prospects to the south
Fjordland and Cariboo Rose are planning further exploration at the Southeast Zone and on other prospects on their Woodjam South property
Gold Fields has optioned the Woodjam North property and is actively exploring the property.

Candorado Exploration Program Highlights:

In 2004, Candorado carried out an IP survey and a 1,600 m drilling program in nine holes in the area of the Murphy Lake showing
Candorado confirmed the copper mineralization encountered in the 1995 drill program. Only selected sections of core were sent for analysis; of the core analysed, 0.46% Cu over 14 m was encountered
In 2006, a detailed radiometric and magnetic airborne survey was flown over the majority of the Property. Interpretation by R. Shives led to the generation of several geophysical targets
Exploration in 2007 on the Murphy Lake showing included field examinations of geophysical targets, grid soil surveys and two diamond drill holes. Best intercepts were 781 ppm Cu over 18 m; and 628 ppm Cu over 18 m

Proposed Exploration:

Conduct an IP-magnetic survey ground survey over the northern part of the Property