exhibit_10-3.htm








EXHIBIT 10.3


 













SUMMARY REPORT


ON THE


TERRA GOLD PROJECT,


McGRATH DISTRICT,


ALASKA







June 15, 2010



























 



	 Prepared by: 

Paul Klipfel Ph.D. CPG # 10821


Consulting Economic Geologist

	 	Gary Giroux P. Eng. M.Sc. 


Geological Engineer









 












For:


Terra Mining Corp.








  





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Summary Report On The Terra Gold Project, McGrath District, Alaska              June 15, 2010






 


 


 


 


 


Terra Mining Corp.


2186 S. Holly St. #104


Denver CO 80222






















Authors:







/s/ Paul Klipfel


Paul Klipfel Ph.D.   CPG #10821


Mineral Resource Services Inc.


4889 Sierra Pine Dr.


Reno, NV 89519


(775) 742-2237


p.klipfel@sbcglobal.net












/s/ Gary Giroux


Gary Giroux  P. Eng.  M.Sc.


Giroux Consulting Ltd.


1215-675 W. Hastings St


Vancouver, B.C. V6B 1N2


gclmail@telus.net


604 684-0899





























































































Paul Klipfel Ph.D. Mineral Resource Services Inc. Gary Giroux Giroux Consultants Ltd.


  





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Summary Report On The Terra Gold Project, McGrath District, Alaska                 June 15, 2010











 


 


TABLE OF CONTENTS










                                                                                                                             







 



	 Section 	   page





 





	
1.0

	
SUMMARY

	
1













	
2.0

	
INTRODUCTION AND TERMS OF REFERENCE

	
3








	
  

	
2.1

	
Introduction








	
  

	
2.2

	
Terms of Reference








	
  

	
2.3

	
Purpose of Report








	
  

	
2.4

	
Sources of Information








	
  

	
2.5

	
Field Examination













	
3.0

	
RELIANCE ON OTHER EXPERTS

	
4













	
4.0

	
PROPERTY DESCRIPTION AND LOCATION

	
4








	
  

	
4.1

	
Area and Location








	
  

	
4.2

	
Claims and Agreements








	
  

	
4.3

	
Environmental Liability








	
  

	
4.4

	
Permits













	
5.0

	
ACCESS, CLIMATE, INFRASTRUCTURE AND PHYSIOGRAPHY

	
8








	
  

	
5.1

	
Access








	
  

	
5.2

	
Climate








	
  

	
5.3

	
Local Resources








	
  

	
5.4

	
Infrastructure and Physiography













	
6.0

	
HISTORY

	
10













	
7.0

	
GEOLOGICAL SETTING

	
11








	
  

	
7.1

	
Regional Geology








	
  

	
7.2

	
Local Geology













	
8.0

	
DEPOSIT TYPES

	
14













	
9.0

	
MINERALIZATION

	
16













	
10.0

	
EXPLORATION

	
17








	
  

	
10.1

	
Past Exploration








	
  

	
10.2

	
Current Exploration













	
11.0

	
DRILLING

	
20








	
  

	
11.1

	
AGA Drilling








	
  

	
11.2

	
ITH Drilling













Paul Klipfel Ph.D. Mineral Resource Services Inc. Gary Giroux Giroux Consultants Ltd.


  





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Summary Report On The Terra Gold Project, McGrath District, Alaska                 June 15, 2010






 


 







 






 


 




 



	 Section 	   page















	
12.0

	
SAMPLING METHOD AND APPROACH

	
24








	
  

	
12.1

	
AGA Sampling








	
  

	
12.2

	
ITH Sampling













	
13.0

	
SAMPLE PREPARATION, ANALYSES AND SECURITY

	
28








	
  

	
13.1

	
AGA Procedures








	
  

	
13.2

	
ITH Procedures













	
14.0

	
DATA VERIFICATION

	
29













	
15.0

	
ADJACENT PROPERTIES

	
29













	
16.0

	
MINERAL PROCESSING AND METALLURGICAL TESTING

	
30













	
17.0

	
MINERAL RESOURCE ESTIMATE

	
32








	
  

	
17.1

	
Introduction








	
  

	
17.2

	
Resource Estimation Procedures








	
  

	
17.2.1

	
Modeling








	
  

	
17.2.2

	
Variography








	
  

	
17.2.3

	
Bulk Density








	
  

	
17.2.4

	
Block Model








	
  

	
17.3

	
Reserve Statement








	
  

	
17.4

	
Mineral Resource Classification













	
18.0

	
OTHER RELEVANT DATA AND INFORMATION

	
40













	
19.0

	
INTERPRETATION AND CONCLUSIONS

	
40













	
20.0

	
RECOMMENDATIONS

	
41








	
  

	
20.1

	
Recommended Exploration Program








	
  

	
20.2

	
Budget for 2006-2007













	
21.0

	
REFERENCES

	
43













	
22.0

	
DATE AND SIGNATURE PAGE

	
44













	
23.0

	
CERTIFICATE AND CONSENT OF AUTHORS

	
45






































Paul Klipfel Ph.D. Mineral Resource Services Inc. Gary Giroux Giroux Consultants Ltd.


  





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Summary Report On The Terra Gold Project, McGrath District, Alaska                 June 15, 2010






 


 


LIST OF FIGURES








 




	 Figure	 	Page 
	 	 	 
	
Figure 1

	
Location map showing the location of the Terra project.

	
5


	
Figure 2

	
Location map showing the outline of the Terra claim block.

	
7


	
Figure 3

	
Photos of the Terra Project setting.

	  	  	
9


	
Figure 4

	
Terrane map showing the location of Alaskan geologic terranes including the Kahiltna Terrane.

	    12
	
Figure 5

	
Regional geology of the Terra region showing the Kahiltna terrane, and Hartman and Tired Pup plutonic suites. 

	  13
	
Figure 6

	
Local geology and location map showing vein locations and principle rock types.

	  	  14
	
Figure 7

	
Photos of geologic features of the Terra Property.

	
15


	
Figure 8

	
Correlation coefficient matrix diagrams for banded quartz, mottled quartz, and quartz-only veins. 

	  	  18
	
Figure 9

	
Geochemical sample data for Au, Ag, As, and Cu show broad anomalous values.

	  	  	  19
	
Figure 10

	
High resolution imagery showing the location of the drill holes, veins, and Terra diorite (light green).

	  	  25
	
Figure 11

	
Cross sections showing drill holes and intercepts of Ben’s Veins and adjacent mineralization.

	  	  26
	
Figure 12

	
Long section looking east in the plane of Ben’s Vein showing contoured grade-thickness product.

	  	  	  27
	
Figure 13

	
Data plots show results of QA/QC procedures.

	
31


	
Figure 14

	
Subsurface view looking upwards and to the northeast at the modeled 3D solid for Ben’s Vein.

	  	  	  33
	
Figure 15

	
Subsurface view looking upwards and to the northeast at the 1.0 g/t Au shell.

	  	  	  34














LIST OF TABLES


 




	 Table	 	 	 	 Page
	 	 	 	 	 
	
Table 1

	
Significant drill intercepts 2005 AGA Drilling.

	
21


	
Table 2

	
Important Au-bearing intercepts in 2006-2007 drilling.

	
22


	
Table 3

	
Check samples collected by the first author, 2006.

	
30


	
Table 4

	  Check Samples Collected by the First Author, 2010	
30


	
Table 5

	
Statistics for gold and silver assays.

	  	  	
33


	
Table 6

	
Statistics for capped gold and silver assays in 3 g/t composites.

	
35


	
Table 7

	
Statistics for gold and silver assays in 1m composites.

	
35


	
Table 8

	
Summary of semivariogram parameters.

	  	
36


	
Table 9

	
Summary of specific gravity determinations.

	
37


	
Table 10

	
Summary of kriging parameters.

	  	  	
38


	
Table 11

	
Inferred resource within Ben’s Vein.

	  	  	
39


	
Table 12

	
Inferred resource within 1.0 g/t Au shell.

	  	
39


	
Table 13

	
Proposed 2010 exploration budget

	  	  	
42









 


 




Paul Klipfel Ph.D. Mineral Resource Services Inc. Gary Giroux Giroux Consultants Ltd.


  





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Summary Report On The Terra Gold Project, McGrath District, Alaska                 June 15, 2010










LIST OF APPENDICES


 




	
Appendix 1

	
Claim Information

	  	  	  	  	  	  	
50


	
Appendix 2

	
List of drill holes provided for resource estimation

	
 

	  	  	  	  55
	
Appendix 3

	
Semivariograms

	  	  	  	  	  	  	
56



























 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 




 













Paul Klipfel Ph.D. Mineral Resource Services Inc. Gary Giroux Giroux Consultants Ltd.


  





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Summary Report On The Terra Gold Project, McGrath District, Alaska                 June 15, 2010










1.0       Summary


This technical report updates the February 2008 technical report prepared for International Tower Hill Mines Ltd. (ITH) and filed with SEDAR on that basis.  Terra Mining corporation (TMC) has optioned the property from ITH and has requested Mineral Resource Services Inc. (MRS) and Giroux Consultants Ltd. to prepare this report in support of TMC’s own disclosure concerning the option on the property with ITH.  No material work has been completed by ITH or TMC on the property since preparation of this report in February 2008.  Updates made in this report reflect only points concerning the project status and effect TMC’s new involvement in the project and their exploration plans to earn an interest in the property from ITH.







The Terra property is located approximately 212 km west-northwest of Anchorage along the southwest portion of the Alaska Range in the McGrath mining district.  It is centered on a series of gold-bearing bonanza quartz veins associated with Cretaceous diorite of the Cretaceous Hartman intrusive suite..


 


The Terra Property was first explored by Kennecott in 1997 and gold-bearing veins discovered in 1998.  When Kennecott relinquished the property, Mr. Ben Porterfield obtained the claims and subsequently optioned them to Anglo Gold Ashanti (AGA) and then to International Tower Hill Mines Inc.  ITH conducted an initial exploration program in 2006 and 2007.  The property is currently being optioned by Terra Mining Corp under an option agreement with International Tower Hill Mines Inc (ITH) and through a lease agreement between ITH and Mr. Ben Porterfield.  Under the option agreement, Terra Mining Corp has the right to earn an 80% interest in the property by spending US$9.05m in work commitments over 4 years and a US$450K option payment.  Finalization of this option agreement is pending final legal review.







Gold-bearing quartz veins occur primarily in a ±150m wide, subvertical diorite ‘dike’ that is interpreted to be part of the Hartman intrusive suite.  The dike intrudes Jurassic to Cretaceous Kahiltna Terrane sedimentary rocks consisting of shale, phyllite, siltstone, and minor conglomerate and carbonate.  The sedimentary host rocks have undergone multiple stages of deformation prior to intrusion, with the principle deformation being a fold-thrust style.  The host intrusive rocks are late Cretaceous age (~70 m.y.) diorite to quartz monzonite.  This intrusive age and composition is the same as that for other intrusive-related gold deposits in western Alaska suggesting a common genetic relationship.


 


Reconnaissance sampling and mapping in 2004 and 2005 identified three other areas on the property with anomalous gold in rock, soil, and stream sediment samples.  At least one of these areas consists of more bonanza veins and includes discovery of the Ice Vein.


 

 




Paul Klipfel Ph.D. Mineral Resource Services Inc. Gary Giroux Giroux Consultants Ltd.


  





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Summary Report On The Terra Gold Project, McGrath District, Alaska                                                                 June 15, 2010







 


 




AGA drilled 12 diamond core holes in 2005 to test the subsurface continuity of outcropping veins. In two zones, drill holes intersected high grade veins and umerous gold-bearing smaller veins. In the third zone, no veins were intersected indicating that fold and/or fault controls exist that need to be resolved. Samples of vein material from outcrop and drill core contain up to several hundred g/t gold (the highest being 960 g/t) although most samples contain more modest values. 

 




In 2006 and 2007, ITH drilled a further 20 diamond core holes to test known veins, particularly the Ben Vein which is currently the best mineralized and most extensive vein known on the property.


 


Data from these drill holes has been used for an initial resource evaluation.   The drill-tested portion of the Ben Vein shows the vein open to the north and at depth.  The vein appears to pinch out to the south.  An initial resource estimate of mineralization in the Ben Vein indicates the presence of an Inferred Resource on the order of 168,000 ounces of gold plus 318,000 ounces of silver in 428,000 tons grading 12.2 g/t Au and 23.1 g/t Ag at a 5 g/t Au cutoff.  This estimate does not include evaluation of mineralization in adjacent veins, some of which also contain significant high grade mineralization.  Nor does it include mineralization inferred to occur, but untested, to the north and at depth.


 


At this early stage of exploration, outcropping veins and drill hole intercepts indicate that the veins can be continuous for >350m along strike and >250m down dip.  More drilling is required to assess further continuity.  Lesser veins also appear to form vein zones.  These veins are banded and exhibit relict open-space-fill dog-tooth textures.  Various types of quartz exhibit a diffuse texture suggesting that there has been minor recrystallization.  Veins are interpreted to have formed in the transition between mesothermal and epithermal settings.







































































































Paul Klipfel Ph.D. Mineral Resource Services Inc. Gary Giroux Giroux Consultants Ltd.


  





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Summary Report On The Terra Gold Project, McGrath District, Alaska              June 15, 2010















2.0        Introduction and Terms of Reference









	
2.1

	
Introduction









Mineral Resource Services Inc. (MRS) and Giroux Consultants Ltd. (GCL) have been requested by Terra Mining Corp (TMC) to provide an independent technical report on the Terra gold project. This report updates a previous similar report dated July 5, 2006 and incorporates exploration work performed in the latter half of 2006 and in 2007 along with a resource evaluation on the Ben Vein.  The resource evaluation portion of this report has been prepared by Giroux Consultants Ltd.


 


Information used in this report has been provided to MRS and GCL by ITH and TMC in December 2007 and May 2010 respectively,  as well as original information provided by ITH and Anglo Gold Ashanti (U.S.) Exploration Inc. (AGA) in 2006.  This report also includes personal observations made by Paul Klipfel in the course of field visits and on general geologic information available to the public through peer review journals, publications by the U.S. Geological Survey, and agencies of the State of Alaska.














	
2.2

	
Terms of Reference









Dr. Paul Klipfel of Mineral Resource Services Inc., of Reno, Nevada, and Mr. Gary Giroux of Giroux Consultants Ltd, of Vancouver B.C. were commissioned by ITH to prepare the following report for submission to the Toronto Stock Exchange (TSX) in support of  a resource estimate.  Dr. Klipfel and Mr. Giroux are independent consultants and are both Qualified Persons (QP) for the purposes of this report.


 








	
2.3

	
Purpose of Report







The purpose of this report is to provide an independent evaluation of the Terra project, the exploration and discovery potential in that area, past exploration, its relevance and adequacy to assess the mineralization potential of the area, and provide recommendations for future work.  This report conforms to the guidelines set out by the Canadian National Instrument 43-101.


 








	
2.4

	
Sources of Information







Information for this report was provided to the authors by ITH and consists of data generated by ongoing exploration by ITH and initial data from 2004 to 2006 which was provided to ITH by AGA.  In addition, the author spent one day on the site in 2006 reviewing core, examining outcrop, viewing the area from the air, and discussing the project with the on-site geological staff.  Since then, Dr. Klipfel has conducted petrographic evaluations of numerous samples and reviewed data with ITH geologic staff.  Mr. Giroux has not visited the property.













	
2.5

	
Field Examination







The first author of this report completed a data review on June 6-7, 2006 in AGA’s Denver office and then visited the property on Wednesday, June 14, 2006 to examine the site with Mr Jeff Pontius, President of ITH and former Exploration Manager North America for AGA. The field visit included review of the physiographic, geologic and tectonic setting of the property, drill hole collar locations, as well as detailed examination of outcrop and sampling of the key veins. Drill core was examined on site and at the core storage facility in Fairbanks, Alaska on Friday, June 16, 2006. A second field visit was on May 31, 2010. Stored diamond drill core drilled after the 2006 visit was examined and samples collected. In addition, the style of mineralization, structural interpretations, and exploration strategy was discussed with Mt. Jim Baughman, COO of TMC. The drill sites were reviewed from the air, and structural geology of the region was examined in several of the surrounding ridges via helicopter to help assess the regional setting of mineralization. 

 










Paul Klipfel Ph.D. Mineral Resource Services Inc. Gary Giroux Giroux Consultants Ltd.


  





3











  


Summary Report On The Terra Gold Project, McGrath District, Alaska            June 15, 2010
















	
3.0 

	
Reliance on Other Experts







In the preparation of this report, the authors have relied upon public and private information provided by ITH and AGA regarding the property.  It is assumed and believed that the information provided and relied upon for preparation of this report is accurate and that interpretations and opinions expressed in them are reasonable.


 


The authors have not reviewed the location of claim boundaries or identification posts.  During the 2006 visit, four samples of vein material were collected in the field and are described later in this report.  In 2010, five samples of core were collected for verification of gold values.






















4.0        Property Description and Location







4.1           Area and Location


The Terra project is located approximately 212 km west-northwest of Anchorage in the western portion of the Alaska Range at approximately 61o47’N, 153o41’W (Figure 1).  The property is situated in the McGrath mining district and consists of 240 contiguous State of Alaska mining claims situated in portions of 7 Townships and Ranges including 19N, 25W; 20N, 25W; 19N, 24W; 20N, 24W; 21N, 24W; 20N, 23W; 21N 25W, all of the Seward Meridian.  These claims surround five other State of Alaska mining claims known as Fish Creek 1-5 held by Mr. Ben Porterfield with whom ITH has a lease agreement and is described further in section 4.2.  Collectively, the 240 claims cover approximately 38,400 acres (15540 ha).







The key area of interest consists of a series of northwest-trending, gold-bearing veins along the west center portion of the claim block (Figure 2).












4.2           Claims and Agreements


TMC is currently being optioning the Terra property from ITH through an option earn-in agreement with ITH and through a lease agreement between ITH and Mr. Ben Porterfield.  TMC has the right to earn an 80% interest in the property by incurring aggregate exploration expenditures of US$ 9.05M within four years, paying annual option payments totaling $450K over 4 years, and 1 million shares of TMC. 

 










Paul Klipfel Ph.D. Mineral Resource Services Inc. Gary Giroux Giroux Consultants Ltd.


  





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Summary Report On The Terra Gold Project, McGrath District, Alaska                 June 15, 2010










 







 



Figure 1.  Location map showing the location of the Terra project.
















The original lease agreement between AGA and Mr Ben Porterfield stipulates a 4% NSR for gold when it is at a price >US$450/ounce.  1% of the NSR right is purchasable for US$1.0 million and an additional 1% purchasable for US$3.0 million.  Annual minimum payments to the Lessor begin at US$25,000 and increase by US$25,000 each year (with a cap of US$125,000).  ITH retains a sliding scale royalty payment of 0.5% to 5% according to the TMC Letter of Intent and pending final agreement.


 


State of Alaska 160-acre mining claims require an annual rental payment of $140/claim to be paid to the state (by November 20), for the first five years, $280 per year for the second five years, and $680 per year thereafter.  As a consequence, all Alaska State Mining Claims have an expiry date of November 30 each year.  In addition, there is a minimum annual work expenditure requirement of $400 per 160 acre claim (due on or before noon on September 1 in each year) or cash-in-lieu, and an affidavit evidencing that such work has been performed is required to be filed on or before November 30 in each year.  Excess work can be carried forward for up to four years.  If such requirements are met, the claims can be held indefinitely.  LMS claims were staked in September and November of 2004 and are now in their 7th and 6th year respectively. Annual rental fees for 2010 are $25,760. Labour requirements are $36,800, however, previous work completed by ITH qualifies for work commitment expenditures through 2010. 

 










Paul Klipfel Ph.D. Mineral Resource Services Inc. Gary Giroux Giroux Consultants Ltd.


  





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Summary Report On The Terra Gold Project, McGrath District, Alaska                 June 15, 2010















Holders of Alaska State mining locations are required to pay a production royalty on all revenue received from minerals produced on state land.  The production royalty requirement applies to all revenues received from minerals produced from a state mining claim or mining lease during each calendar year.  Payment of royalty is in exchange for and to preserve the right to extract and process the minerals produced.  The current rate is three (3%) percent of net income, as determined under the Mining License Tax Law (Alaska).


 


All of the claims are in good standing and are transferable.  Their status has been verified by the principle author with the Alaska Department of Natural Resources.


 


Holders of Alaska State mining claims have the right to use the land or water included within mining claims only when necessary for mineral prospecting, development, extraction, or basic processing, or for storage of mining equipment.  However, the exercise of such rights is subject to the appropriate permits being obtained.


 


Claims have been staked using GPS positioning for placement of corner stakes.  The claims have not been surveyed but are defined according to their Township and Range (MRTS) location rather than claim post location.













	
4.3

	
Environmental Requirements







Project activities are required to operate within all normal Federal, State, and local environmental rules and regulations.  This includes proper and environmentally conscientious protection of operational areas against spills, capture and disposal of any hazardous materials including aviation fuel, etc., reclamation of disturbed ground, and removal of all refuse.


 


Total disturbance associated with this project is minimal due to the steep terrain and use of helicopter-accessed, timbered platforms for drill sites.  Drill sites are reclaimed after completion of exploration. Camp-related disturbance is minimal and restricted to the un-vegetated gravel fan of the tributary stream.  The site will be reclaimed at project completion.


 


There are no known existing environmental liabilities.












4.4           Permits


Operations which cause surface disturbance such as drilling are subject to approval and receipt of a permit from the Department of Natural Resources.  TMC will conduct exploration under Alaska Department of Natural Resources APMA permit #53001. The permit, along with the Hardrock Exploration notification was submitted for renewal in April 2010 and is currently pending approval.  Application for a camp permit was submitted to the Alaska Department of Environmental Conservation in April 2010 and is currently awaiting approval.









Paul Klipfel Ph.D. Mineral Resource Services Inc. Gary Giroux Giroux Consultants Ltd.


  





6











  


Summary Report On The Terra Gold Project, McGrath District, Alaska                 June 15, 2010















 


Figure 2.  Map showing the outline of the Terra claim block, the individual claims and the claim names.  The claims under lease from Ben Porterfield are outlined in black and labeled as Fish Creek 1-5.

























Paul Klipfel Ph.D. Mineral Resource Services Inc. Gary Giroux Giroux Consultants Ltd.


  





7











  


Summary Report On The Terra Gold Project, McGrath District, Alaska                 June 15, 2010











There are no known issues concerning water beyond normal operational obligations. These fall under operating permits issued by the Office of Habitat Management and Permitting (OHMP).  The camp water supply is serviceable as permitted by the Alaska Department of Health.









There are no known native rights issues concerning the project area.






















5.0        Access, Climate, Local Resources, Infrastructure and Physiography







5.1           Access


The Terra project is located in the mountainous headwaters of the Hartman River in the Alaska Range, south-central Alaska.  The property lies approximately 212 km west-northwest of Anchorage (Figures 1 and 3) and is accessible via helicopter or fixed-wing aircraft.  A ~610 m (2000’) gravel airstrip on-site allows access for light aircraft.  The steep topography of the area requires use of helicopters for daily access to mapping locations and drill sites (Figure 3).


 







5.2           Climate


The climate in this part of the Alaska Range varies from mild and temperate in the summer to cold and inclement in the winter.  Rain and occasional snow can occur in the summer months.  Winter snow accumulations generally melt sufficiently by late May to early June to allow summer field work to begin then.  The field season is from late May through late September or early October.












5.3           Local Resources


The project is serviced from Anchorage, Alaska’s largest city (population 260,000).  Helicopters and fixed wing aircraft are plentiful in this area.  All supplies necessary for the project can be obtained in Anchorage and are then flown to the project camp.


 


The camp currently consists of facilities, quarters, and work space for approximately 25 people.












5.4           Infrastructure and Physiography


The project is situated in a rugged mountainous area with steep glaciated slopes (Figure 3).  The camp lies in the main glacial valley of Fish Creek at an elevation of approximately 2700 feet (~800m).  Areas under investigation lie at various elevations with the host ridge rising to approximately 5200 feet (1575 m).  Other mountains in the vicinity rise to heights between 6000 and 8000 feet (1800-2424m).  The highest mountain in the region is Mt. Hesperus, elevation 9828 feet (2978m), approximately 12 miles west of the project area.







The area is drained towards the north and northeast by Fish Creek, a tributary of the Hartman River.  Fish Creek is fed by glacial melt water with the terminus of a retreating unnamed glacier lying 1.25 mile upstream from the project camp.








Paul Klipfel Ph.D. Mineral Resource Services Inc. Gary Giroux Giroux Consultants Ltd.


  





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Summary Report On The Terra Gold Project, McGrath District, Alaska                 June 15, 2010
















 


Figure 3.  Photos of the Terra Project setting.  A)  View of the Terra Property from the east.  The ridge that hosts the Terra veins is indicated with a red arrow.  B) Aerial view of the Terra camp in Fish Creek Valley looking southwest.  C) View northeast of the landing strip at the Terra camp.   D)  Aerial view to the southeast of the Terra ridgeline with veins.  The drill/landing pad shown in E is identified with a red arrow.  Magenta line in photo is outcrop of SD zone veins.  E) Helicopter at SD timbered drill pad.  F)  Aerial view looking ~east to the ridge east of Breece’s.  Tight folds (yellow) and faults (red) demonstrate fold-thrust patterning characteristic of this area and the Kahiltna Terrane.  G). View looking uphill along the SD main vein.  The author’s T3 sample contains 260 g/t Au and is from the vein in the foreground of this photo.  Sample T2 is from this line of vein but up the hill out of view.  All photos by the author.
















Paul Klipfel Ph.D. Mineral Resource Services Inc. Gary Giroux Giroux Consultants Ltd.


  





9











  


Summary Report On The Terra Gold Project, McGrath District, Alaska                 June 15, 2010










Vegetation is sparse, consisting of minor willow and alder shrubs in the main valley, and alpine grasses, moss, and lichen that thrive on the steep rocky slopes.  Wildlife in the area includes Dall sheep, bears, and smaller animals.  None were seen in the course of the site visit.






















6.0       History


Early geologic investigations of the Terra region include work by Brooks (1911), Capps (1935), and Reed and Lanphere (1969, 1972, 1973).  The latter work reported gold anomalies in stream sediments from the upper drainages of the Hartman River.  In the mid to late 1980’s, Cominco and Anaconda began mineral exploration to the east and north, respectively.  The U.S.Geological Survey conducted a regional stream sediment sampling program in 1988 and 1989 (Allen 1990) which revealed several gold anomalies in the Fish Creek drainage on the Terra project site.


 


In 1997, Kennecott Exploration began reconnaissance sampling around Cretaceous intrusions in the region and among other areas, focused their work in the Hartman-Fish Creek drainages.  In 1998, visible gold was discovered in outcropping veins at Terra.  Kennecott staked claims over the veins, but with industry-wide “rationalizations” in 1999 and 2000, Kennecott abandoned exploration in the Fish Creek area.  At the request of Mr. B. Porterfield (formerly a Kennecott geologist), Kennecott transferred their claims to him in 2000.


 


AGA reviewed the project initially in 2001 and again in 2004.  At that time, AGA optioned the Porterfield claims, staked ~6000 hectares of additional claims, and completed an initial soil and rock prospecting survey.  In 2005, AGA collected local and regional reconnaissance soil, rock, and stream sediment samples, and drilled 12 diamond drill holes totaling 1560 meters in the main area of the Terra vein zone.  Of these, 10 holes intersected vein zones of gold mineralization in excess of 8 g/t and 5 intersected intervals in excess of 20 g/t Au.  These vein intercepts can be correlated with surface exposures of veins.


 


During the 2004 and 2005 field seasons, 1108 soil, rock, and stream sediment samples were collected in the Terra region.  Three new areas with anomalous gold were discovered.  These include: South Terra, North Fish Creek, and Breese’s.  These areas are described later in sections 7, 9, and 10.


 


During the 2006 and 2007 field seasons, ITH successfully drilled 18 diamond core holes totaling 3518m (644m in 2006 and 2874m in 2007).  Two further holes were initiated, but abandoned due to drilling problems.  Down-hole and surface structural measurements were collected to aid with understanding the vein architecture.  The data from these holes was used for a resource estimation prepared by Mr Gary Giroux of GCL.








Paul Klipfel Ph.D. Mineral Resource Services Inc. Gary Giroux Giroux Consultants Ltd.


  





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Summary Report On The Terra Gold Project, McGrath District, Alaska                 June 15, 2010










No material work was completed in 2008 or 2009.


 


 



 








	
7.0

	
Geological Setting












7.1           Regional Geologic Setting


The Terra property lies within an extensive belt of Jurassic to Cretaceous sedimentary rocks (Jones et. al 1984) known as the Kahiltna Terrane (Figure 4).  These rocks consist of phyllite, shale, phyllite, greywacke, and siltstone, along with minor conglomerate, chert, carbonate and tuff.  This suite of rocks is believed to have been deposited within a basin that existed along the southern margin of Alaska.  During Cretaceous time, the exotic Wrangellia Terrane was accreted to continental Alaska pinching the basin between the continent and the accreting terrane.  In addition, during this same period, many of Alaska’s terranes began undergoing a period of counterclockwise rotation as part of the development of the dextral Denali and Tintina Fault systems, to form the present-day broad physiographic arc of central and southern Alaska (Plafker and Berg, 1994, Goldfarb, 1997).  Kahiltna Terrane sedimentary rocks have undergone fold-thrust deformation as a result of both accretion and rotation.







In mid to late Cretaceous time (~70m.y.) and again in the early Tertiary (~40m.y.), rocks of the Kahiltna and other terranes were intruded by granitic plutons, stocks, dikes and sills with a range of compositions (Figure 5 and 6).  In the vicinity of the Terra property, these intrusions form the Hartman plutonic sequence (quartz-monzonite to diorite) and the younger Tired Pup pluton (quartz monzonite to granite) (Reed and Lanphere, 1973).  Elsewhere in Alaska, granitic rocks of this age are noted for their associated gold mineralization (McCoy, et al., 1997).


 


The structural history of this region is poorly understood but is dominated by fold-thrust deformation that produced northwestward directed (southeast-dipping) thrust and fold structures (Figure 4).  There is also evidence of southeast-verging structures possibly representing back-thrusts or another overprinted fold-thrust stage of deformation.  The strong northeast-trending topographic features such as the Fish Creek valley are likely to be the site of faults related to the dextral Denali Fault system (Figure 4).












7.2           Local Geology


The principal veins of the Terra property are situated on the west flank of a north-south trending ridge composed primarily of carbonaceous shale and phyllite (Figure 6).  Based on initial mapping, beds dip mainly to the southeast, consistent with the regional structural trend.  Local deviations from this orientation indicate fold and fault patterns which, at this stage of work, are unresolved.  The face of the high ridge across the valley to the west reveals a large truncated recumbent fold typical of large-scale fold thrust deformation.  Similar features may exist in the area of the Terra veins.







Diorite of the Hartman suite forms a north-south, steeply east-dipping ‘dike’ on the order of 150m thick and approximately 1.8 km long (Figure 6 and 7).  This dike hosts the majority of the known gold-bearing quartz veins on the Terra property and is called the Terra diorite. To the south, at South Terra, a larger stock is also oriented in a north-south direction and may connect in the subsurface with the dike. Elsewhere on the property, similar intrusive units appear to follow thrust faults indicating that they were emplaced during or after thrust deformation. The alkalic to calc-alkaline, I-type composition of these intrusive bodies indicate they originated from a deep magmatic source, presumably mantle sourced rocks and possibly above a subduction zone. This type of intrusive is known in Alaska for its association with gold mineralization. 

 










Paul Klipfel Ph.D. Mineral Resource Services Inc. Gary Giroux Giroux Consultants Ltd.


  





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Summary Report On The Terra Gold Project, McGrath District, Alaska                 June 15, 2010


















Figure 4.Terrane map showing the location of Alaskan geologic terranes including the Kahiltna Terrane (KH) which hosts the Terra prospect and the location of the Terra property (red star).  The heavy black line to the north of the Terra property is the Denali Fault.  Splays and parallel lesser faults probably underlie Fish Creek valley immediately north of the Terra veins.  After Goldfarb, 1997.
















Vein mineralization at Terra occurs as steeply to shallow dipping banded quartz veins within the diorite and the immediately surrounding phyllite.  The occurrence of veins within the diorite and generally not in the phyllite is probably due to brittle fracturing of the intrusive host rocks as opposed to more plastic deformation of the surrounding phyllite. 

 










Paul Klipfel Ph.D. Mineral Resource Services Inc. Gary Giroux Giroux Consultants Ltd.


  





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Summary Report On The Terra Gold Project, McGrath District, Alaska                 June 15, 2010
















 


Figure 5.  Regional geology of the Terra region showing the Kahiltna terrane (blue), and Hartman and Tired Pup plutonic suites (red).  Red star indicates the location of the Terra veins.  The north-south ridge is the one seen in Figure 3.  Fine lines form 1 km UTM grid.  Red box indicates the map area shown in Figure 6. 















To the east, an impressive breccia zone (Breese’s Zone) consists of boulder size breccia fragments in a matrix of fine rock material and brown carbonate (Figure 7).  This is apparently a tectonic breccia along a failed fold-thrust zone with in-fill of possible igneous material and hydrothermal carbonate.  Some of the float at the base of the cliff where this feature is exposed is mineralized.







On the north side of Fish Creek Valley, anomalous gold has been identified in surface geochemical samples of sparse, narrow quartz veins.








Paul Klipfel Ph.D. Mineral Resource Services Inc. Gary Giroux Giroux Consultants Ltd.


  





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Summary Report On The Terra Gold Project, McGrath District, Alaska                 June 15, 2010














 


Figure 6.  Local geology and location map showing vein locations and principle rock types.





















8.0       Deposit Types


The veins at Terra exhibit relict cockade and laminated textures typical of formation in open-spaced sites (Figure 7).  This is typically a characteristic of shallow epithermal veins although some mesothermal veins can exhibit this texture also.  Apparent partial recrystallization has rendered these textures diffuse suggesting that these veins formed at moderate to shallow depths within the transition zone between mesothermal and epithermal depths (e.g. ~2-4 km).







The observation that most of the vein material of significance occurs within diorite stocks and dikes, indicates that the dikes behaved in a brittle manner, yet the surrounding shale/phyllite country rock behaved plastically and was unable to maintain open space for vein formation.  This set of conditions is consistent with the depth interpretation based on textures. 

 






 




Paul Klipfel Ph.D. Mineral Resource Services Inc. Gary Giroux Giroux Consultants Ltd.


 





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Summary Report On The Terra Gold Project, McGrath District, Alaska 




 





 





Paul Klipfel Ph.D. Mineral Resource Services Inc. Gary Giroux Giroux Consultants Ltd.


 





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Summary Report On The Terra Gold Project, McGrath District, Alaska 








 



Figure 7.  Photos of geologic features of the Terra Property.  A) Gold-bearing quartz vein showing banding typical of high-grade veins.  B) Photomicrograph showing relict dog-tooth quartz texture.  C) Example of peripheral veins with lower-grade gold content (e.g. 1-3 g/t Au).  Note the very narrow alteration envelope around the margin of the vein.  D) Visible gold along a zone within a banded quartz vein.  Arrows indicate location of some of the grains.  E) Exposed portion of the Ben vein.  The author’s check sample (960 g/t Au) was collected across the vein in the foreground. F) Examples of Breese’s breccia talus.  Note quartz vein and rock fragments set in brown Fe-carbonate matrix.  G) Exposed breccia zone in steep slope at Breese’s as viewed from the helicopter.  The large central clast is about the size of a small utility truck.  All photos except B and D by the author. 








 


Regardless of depth considerations, the gold values in these veins distinguish them as part of a high-grade bonanza-type vein system.  They can occur as isolated veins or zones of numerous sheeted veins and can host gold over significant vertical intervals the full extent of which has yet to be defined at Terra.

















9.0       Mineralization


Mineralization at Terra consists of high-grade, 0.1 to ~1 meter wide, multi-stage, banded quartz veins that contain visible gold (Figure 7).  Surface samples contain local very high grade (>3 opt Au) gold.  These veins occur mostly within north-south to north-northeast trending diorite intrusive bodies and locally within the surrounding phyllite country rock.  Veins within the diorite mostly trend northwest and generally dip steeply to the west, although portions of the Fish Creek vein strike northeast and dip shallowly.


 


Currently known outcropping veins occur in six zones, Ben zone, EH zone, SD zone, Fish Creek zone, Fish Face zone, and Ice zone. Veins in each zone can only be traced for distances of 30-50 meters before being covered by talus.  The Ben Vein has been drill tested along approximately 350 m of strike length and to a depth of 250m.  Other veins, except EH, have been drill tested with fewer drill holes, and show subsurface continuity up to 100 meters along strike and 250 meters down dip.


 


The veins consist of multi-stage, episodic zones of different types of quartz.  These can be breccia quartz, milky quartz, zones of alternating dark and light quartz bands, and bands of open-space-filled dog-tooth quartz.  Sulfide and carbonate accompany some of these quartz zones.  Visible gold occurs in several of the different types of quartz.  Although each of the vein groups exhibits similar quartz vein characteristics, the individual episodes of quartz introduction that produced, say breccia or banded veins are not correlative among the veins.  Much of the quartz exhibits a diffuse appearance indicating the veins have undergone partial recrystallization, a characteristic confirmed in petrographic examination of the veins.  Gold occurs in different zones, but is most commonly along margins of individual quartz stages particularly where there


is dog-tooth quartz ± sulfide (Figure 7).  Some banding in veins appears to be due to inclusion of wall rock material.


 




 




Paul Klipfel Ph.D. Mineral Resource Services Inc. Gary Giroux Giroux Consultants Ltd.


 





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Summary Report On The Terra Gold Project, McGrath District, Alaska                 June 15, 2010






 


Carbonate accompanies several of the quartz stages.  In addition, late-stage carbonate veinlets crosscut quartz veins and form local veinlet webworks in wall rocks surrounding veins.  These veins are unrelated to mineralization.




The banding in Terra veins is like that in many low sulfidation type deposits, but also exhibit characteristics of mesothermal veins (Figure 7).  In addition to native gold, other minerals identified in the veins include arsenopyrite, pyrite, stibnite, pyrrhotite, sphalerite, and chalcopyrite as well as traces of Sb-Pb-Cu sulfosalts.


 


Alteration appears weak visually, but in thin section, pervasive carbonate alteration is evident (AGA in-house memorandum).  Alteration envelopes around veins are minimal but show a gradation from silica-rich near the veins to sericite-rich further away.  The selvages may also contain up to 10% pyrite and arsenopyrite.  However, where present, they rarely extend more than 10 cm from the veins.


 


Using the available geochemical assays from drill core, gold shows a strong correlation with Ag and As.  This confirms the visual observation that gold occurs most prevalently with arsenopyrite (Figure 8).


 


Anomalous gold in a single float sample at Breese’s appears to be associated with flooding of a tectonic and/or intrusive breccia by carbonate-rich fluids.  This is an unusual style of mineralization and would be interesting to evaluate further, but is impractical to do so as it is exposed high in a cliff face.  Extensive prospecting and sampling in 2006 failed to identify significant mineralization in this area.


 


Geochemical anomalies in the South Terra area resulted in identification of Ice Vein.  Elsewhere in the region, and to the northeast, others are currently exploring for gold and Au-Cu porphyry style mineralization.






















10.0     Exploration


 



10.1         Past Exploration


During the 2004 and 2005 field season, AGA collected 271 soil, 441 rock, and 63 stream sediment samples, conducted reconnaissance mapping, a structural evaluation, and drilled 1560 meters of HQ diamond drill core in 12 holes from 5 drill pads.  In the area of the Terra veins, rock and soil samples define areas around and downslope from known veins indicating that these veins produce traceable anomalies (Figure 9).  Of the 271 soil samples, 15% contain more than 1 g/t Au.  And the highest value is 17.55 g/t Au.  This information was been used by ITH to prospect the areas with anomalous geochemical samples for possible additional veins.


 


 




Paul Klipfel Ph.D. Mineral Resource Services Inc. Gary Giroux Giroux Consultants Ltd.


 





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Summary Report On The Terra Gold Project, McGrath District, Alaska                 June 15, 2010
















 





 




Figure 8. Correlation coefficient matrix diagram for banded quartz, mottled quartz, and quartz only veins.  Gold correlates most strongly with arsenic and silver.
















Rock chip samples of Terra vein outcrops contain high-grade (>1 opt Au) to very high grade (>3 opt Au) gold.  For example, of the 441 rock samples collected, 42 contain more than 10 g/t Au, 22 contain more than 100 g/t Au and the highest grade sample contains 619 g/t Au.







Reconnaissance rock, soil, and stream sediment sampling throughout the property identified three other areas with gold mineralization; South Terra, Breese’s, and North Fish Creek.  At South Terra, follow-up work identified the Ice vein zone.







At Breese’s, a single 5 g/t Au sample was collected from talus of breccia with igneous and/or carbonate matrix.  The nature and extent of this mineralization was not clear in 2005 from the scattered float samples investigated at the base of the cliff below the exposure. At that time, this breccia and its apparent mineralization was attractive as a target.




 


 




Paul Klipfel Ph.D. Mineral Resource Services Inc. Gary Giroux Giroux Consultants Ltd.


  





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Summary Report On The Terra Gold Project, McGrath District, Alaska                 June 15, 2010






 






 


Figure 9.  Geochemical sample data for A) Au, B) Ag, C) As, and D) Cu show broad anomalous values beyond the diorite and also show anomalous values along strike to the south from known diorite (red) and down slope along strike to the north.  Grid lines are 1 mile sections. 










 






Paul Klipfel Ph.D. Mineral Resource Services Inc. Gary Giroux Giroux Consultants Ltd.


  





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Summary Report On The Terra Gold Project, McGrath District, Alaska                 June 15, 2010








Anomalous rock samples of vein material along ridge lines in the North Fish Creek area indicate that gold mineralization occurs to the north of Fish Creek.  Investigation of this area has not revealed veins of interest to ITH.







During the summer field seasons of 2006 and 2007, ITH collected 147 rock samples, drilled 18 diamond core holes, and conducted reconnaissance and local detailed geological mapping, along with collection of structural data.  Objectives of this program included mapping known veins, locating new veins, understanding the structural architecture of the sedimentary rocks, the host diorite, and vein geometry.  In 2007, field work was primarily in support of drilling (establishing pads, logistics, and processing core).







In late 2007, ITH completed an initial resource estimate which is discussed further in Section 17.







Minimal work was completed in 2008 and 2009.  No results from this work are material to the understanding of the property.


 

 







10.2         Current Exploration


TMC plans to drill and further evaluate the Terra veins as laid out in the exploration plans (Section 20).

















11.0      Drilling







11.1         AGA Drilling


Drilling by AGA in 2005 prior to ITH acquisition of the property consists of 1560 m of HQ diamond drill core in 12 holes drilled to test the strike and dip continuity of mineralization from outcropping veins.  Mineralized veins were intersected at the Fish Creek and Ben zones.   These holes intersected the veins at depth and along strike confirming the strike and dip extent of the principle vein and continuity of gold mineralization.  Other smaller veins with gold mineralization were also intersected.  Drill holes in the SD zone surprisingly did not intersect


veins indicating the existence of fault complexities which need to be resolved.  Highlights of this drill program are tabulated in Table 1.







Holes were drilled to intersect the down-dip extension of veins.  Vein intercepts were up to 3m thick. True widths are variable but up to approximately 1.5m.  Core with vein intercepts was sawed with a diamond saw with one half sampled and the remaining half preserved in the core box for reference.  Core was sampled continuously across mineralized intervals as well as on either side of mineralized intervals for a distance of at least 2 m and in some cases further according to visual estimates of alteration and possible mineralization. Sample intervals were up to 2m and determined geologically according to veins and alteration.  Core recovery exceeded 90%.  Portions of drill holes with no apparent mineralization were not split or sampled.







The drilling was conducted by Layne Christiansen Company and was done using a CS1000 core drill.






Paul Klipfel Ph.D. Mineral Resource Services Inc. Gary Giroux Giroux Consultants Ltd.


  





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Summary Report On The Terra Gold Project, McGrath District, Alaska                 June 15, 2010












TABLE 1


Significant Drill Intercepts – 2005 AGA Drilling



	
Hole ID

	
Depth (m)

	
From (m)

	
To (m)

	
Width (m)

	
Grade (g/t)

	
Comment*


	
TR-05-01

	
90.8

	
7.47

	
8.53

	
1.06

	
136.79

	
Ben Vein


	  	  	
31.09

	
31.7

	
0.61

	
1.11

	  
	  	  	
40.23

	
41.15

	
0.92

	
2.95

	  
	
TR-05-02

	
50.6

	
12.04

	
13.87

	
1.83

	
4.66

	
Ben Vein


	  	  	
20.42

	
20.73

	
0.31

	
13.9

	  
	  	  	
21.49

	
21.95

	
0.46

	
2.66

	  
	
TR-05-03

	
52.7

	
31.85

	
32.67

	
0.82

	
21.88

	
Ben Vein


	  	  	
47.55

	
49.07

	
1.52

	
1.65

	  
	
TR-05-04

	
144.5

	
65.23

	
66.75

	
1.52

	
1.2

	
Ben Vein


	  	  	
73.76

	
74.37

	
0.61

	
2.56

	  
	  	  	
76.2

	
77.42

	
1.22

	
2.85

	  
	  	  	
110.34

	
111.25

	
0.91

	
10.06

	  
	  	  	
114.3

	
114.67

	
0.37

	
5.53

	  
	
TR-05-07

	
203.9

	
61.42

	
61.72

	
0.3

	
128.5

	
Fish Creek


	  	  	
86.72

	
87.6

	
0.88

	
4.09

	  
	  	  	
105.61

	
106.01

	
0.4

	
16.95

	  
	  	  	
120.49

	
121.25

	
0.76

	
11.15

	  
	  	  	
148.74

	
149.66

	
0.92

	
6.93

	  
	  	  	
162.31

	
163.22

	
0.91

	
17.49

	  
	
TR-05-08

	
200.9

	
34.29

	
34.75

	
0.46

	
74.1

	
Fish Creek


	  	  	
65.07

	
66.14

	
1.07

	
1.02

	  
	  	  	
86.56

	
87.17

	
0.61

	
2.4

	  
	  	  	
96

	
99.36

	
3.36

	
13.06

	  
	  	  	
103.78

	
104.15

	
0.37

	
37.7

	  
	  	  	
114.3

	
115.5

	
1.22

	
7.83

	  
	  	  	
118.6

	
119.3

	
0.7

	
8.4

	  
	
TR-05-09

	
152.4

	
16.76

	
17.07

	
0.31

	
7.07

	
Fish Creek


	  	  	
27.58

	
28.35

	
0.77

	
1.9

	  
	  	  	
35.75

	
40.39

	
4.64

	
13.45

	  
	  	  	
44.2

	
47.67

	
3.47

	
1.6

	  
	  	  	
49.07

	
52.12

	
3.05

	
2.18

	  
	  	  	
89.61

	
90.22

	
0.61

	
4.42

	  
	  	  	
91.74

	
94.49

	
2.75

	
2.24

	  
	  	  	
117.7

	
120.4

	
2.75

	
2.84

	  
	  	  	
149.8

	
151

	
1.22

	
7.3

	  
	
TR05-10

	
140.8

	
30.48

	
31.09

	
0.61

	
4.79

	
Fish Creek


	  	  	
42.06

	
43.59

	
1.53

	
5.12

	  
	  	  	
48.92

	
49.23

	
0.31

	
2.56

	  
	  	  	
102.7

	
103.8

	
1.03

	
2.7

	  
	  	  	
111.9

	
112.3

	
0.46

	
3.36

	  
	  	  	
122.5

	
124.1

	
1.52

	
2.59

	  
	  	  	
131.1

	
131.4

	
0.31

	
8.98

	  
	
TR05-11

	
128

	
33.07

	
33.53

	
0.46

	
5.71

	
Ben Vein


	  	  	
48.98

	
49.9

	
0.92

	
1.79

	  
	  	  	
90.53

	
91.44

	
0.91

	
9.71

	  
	  	  	
105.8

	
111

	
5.18

	
9.83

	  
	
TR05-12

	
199.3

	
47.12

	
47.7

	
0.58

	
2.61

	
Ben Vein


	  	  	
102.9

	
104.1

	
1.22

	
4.41

	  
	  	  	
121.6

	
121.9

	
0.3

	
1.75

	  
	  	  	
190.2

	
193.2

	
3.04

	
8.6

	  
	  	  	
195.6

	
196.2

	
0.64

	
1.62

	  





  Note: values in magenta = assays > 1.0 opt Au; red = 15 g/t - 1 opt; blue = 8 – 15 g/t


  * The vein names listed in this table indicate the targeted vein zone, not a particular


      intercept interpreted to be that specific vein as is shown in Table 2.


 


 






Paul Klipfel Ph.D. Mineral Resource Services Inc. Gary Giroux Giroux Consultants Ltd.


  





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Summary Report On The Terra Gold Project, McGrath District, Alaska                 June 15, 2010








11.2         ITH Drilling


ITH undertook drilling in 2006 and 2007 with the aim of testing mineralized vein zones along strike and down dip.  Sampling technique and drill protocols were adopted from the AGA program.  A total of 3617m in 18 HQ diamond drill core holes were completed.  An additional 2 diamond drill holes were started, but abandoned in the overburden due to drilling problems.  Most of the drill holes tested the Ben Vein down dip to 350 m below the outcrop exposure and along 350m of strike.  Highlights of the 2006 and 2007 drill program are shown in Table 2.







Results from the 2006-2007 drilling show geologic continuity of Ben’s vein and indicate mineralization occurs at variable concentrations throughout the vein.  Drill intercepts also include numerous intervals of high grade gold (Figures 10 and 11).  All drill holes that intersected Ben’s Vein intersected multiple intervals of mineralization in addition to the Ben Vein, some of which are also high grade (e.g. 07-26, 78.74-78.94m@ 72.3 g/t Au).  The lateral and dip continuity of these veins was not clear based on the work completed, but indicates that there is the potential for vein-hosted gold mineralization in 0.x to 1.x m wide veins over greater widths than the individual veins that were targeted by the drilling.







A grade-thickness plot of Ben’s Vein shows 30g-m over an area in excess of 100m along strike and 250 m deep (Figure 12).  The grade-thickness contours suggest that mineralization occurs in steeply north-plunging chutes.  Drilling appears to have closed off Bens Vein mineralization to the south, but the system remains open to the north and at depth.












TABLE 2


Important Au-bearing Intercepts in 2006-2007 Drilling


Intercepts of Bens Vein specifically are highlighted in red.


Numerous other mineralized intervals are also present.








	
Hole ID

	
Depth


(m)

	
From


(m)

	
To


(m)

	
Width


(m)

	
Grade


(g/t)

	
Comments


	
TR-06-16

	
360.43

	
80.31

	
80.71

	
0.40

	
15.30

	
 


	
 

	  	
89.92

	
90.22

	
0.30

	
3.68

	  
	
 

	  	
119.42

	
121.62

	
2.20

	
7.12

	
Ben Vein


	
 

	  	
171.24

	
171.45

	
0.21

	
4.99

	  
	
 

	  	
172.21

	
172.85

	
0.64

	
3.34

	  
	
 

	  	
324.61

	
326.60

	
1.99

	
13.90

	  
	
 

	  	  	  	  	  	  
	
TR-06-17

	
283.16

	
40.23

	
40.69

	
0.46

	
5.62

	
 


	
 

	  	
98.66

	
99.06

	
0.40

	
2.14

	  
	
 

	  	
128.69

	
132.89

	
4.20

	
22.24

	
Ben Vein


	
 

	  	
 

	
 

	
 

	
 

	  
	
TR-07-18

	
312.12

	
69.23

	
69.60

	
0.37

	
8.96

	  
	
 

	  	
121.06

	
121.61

	
0.55

	
3.16

	  
	
 

	  	
125.00

	
125.40

	
0.40

	
14.95

	  
	
 

	  	
147.90

	
149.01

	
1.11

	
4.47

	
Ben Vein


	
 

	  	
205.45

	
205.75

	
0.30

	
3.57

	  
	
 

	  	
290.62

	
292.20

	
1.58

	
3.77

	  
	
 

	  	
 

	
 

	
 

	
 

	  
	
TR-07-19

	
1299.2

	
67.45

	
67.74

	
0.29

	
3.41

	  





 










Paul Klipfel Ph.D. Mineral Resource Services Inc. Gary Giroux Giroux Consultants Ltd.


  





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Summary Report On The Terra Gold Project, McGrath District, Alaska                 June 15, 2010








 


 








 








	
Hole ID


 

	
Depth


(m)

	
From


(m)

	
To


(m)

	
Width


(m)

	
Grade


(g/t)

	
Comments


 


	  	  	
144.53

	
144.83

	
0.30

	
5.14

	
Ben Vein


	  	  	
147.62

	
148.13

	
0.51

	
3.37

	  
	  	  	  	  	  	  	  
	
TR-07-20

	
345.64

	
34.86

	
35.12

	
0.26

	
60.60

	  
	  	  	
39.62

	
40.25

	
0.63

	
12.80

	  
	  	  	
47.18

	
47.93

	
0.75

	
10.42

	  
	  	  	
49.57

	
50.8

	
1.23

	
4.10

	  
	  	  	
121.22

	
121.62

	
0.40

	
4.19

	  
	  	  	
125.70

	
127.51

	
1.81

	
4.08

	  
	  	  	
128.58

	
131.34

	
2.76

	
7.72

	
Ben Vein


	  	  	
132.40

	
132.62

	
0.22

	
4.75

	  
	  	  	
134.11

	
134.72

	
0.61

	
4.40

	  
	  	  	
139.78

	
139.98

	
0.20

	
17.90

	  
	  	  	
142.07

	
142.37

	
0.30

	
7.74

	  
	  	  	
155.41

	
155.95

	
0.54

	
3.09

	  
	  	  	
319.74

	
320.34

	
0.60

	
43.20

	  
	  	  	
323.05

	
323.27

	
0.22

	
15.95

	  
	  	  	  	  	  	  	  
	
TR-07-21

	
246.43

	
39.84

	
40.04

	
0.20

	
7.48

	  
	  	  	
95.71

	
96.00

	
0.29

	
3.54

	  
	  	  	
120.55

	
120.77

	
0.22

	
4.12

	  
	  	  	
155.49

	
156.65

	
1.16

	
12.22

	  
	  	  	
158.65

	
159.40

	
0.75

	
3.12

	  
	  	  	
176.32

	
177.00

	
0.68

	
3.50

	
Ben Vein


	  	  	  	  	  	  	  
	
TR-07-22

	
184.1

	
74.37

	
74.64

	
0.27

	
13.80

	  
	  	  	
107.12

	
107.60

	
0.48

	
14.81

	  
	  	  	
122.45

	
122.75

	
0.30

	
8.75

	  
	  	  	
134.35

	
134.87

	
0.52

	
4.00

	  
	  	  	
137.60

	
138.38

	
0.78

	
14.51

	  
	  	  	
155.45

	
155.94

	
0.49

	
61.07

	
Ben Vein


	  	  	
158.53

	
158.76

	
0.23

	
3.10

	  
	  	  	  	  	  	  	  
	
TR-07-23

	
200.41

	
66.97

	
67.17

	
0.20

	
4.71

	  
	  	  	
107.14

	
107.75

	
0.61

	
3.78

	  
	  	  	
123.66

	
123.96

	
0.30

	
3.41

	  
	  	  	
173.64

	
176.63

	
2.99

	
4.57

	
Ben Vein


	  	  	  	  	  	  	  
	
TR-07-24

	
250.85

	
124.12

	
124.36

	
0.24

	
5.02

	  
	  	  	
161.47

	
161.85

	
0.38

	
4.82

	  
	  	  	
198.51

	
198.74

	
0.23

	
3.42

	  
	  	  	
199.44

	
200.10

	
0.66

	
9.20

	
Ben Vein


	  	  	
201.00

	
201.47

	
0.47

	
4.19

	  
	  	  	
236.12

	
236.46

	
0.34

	
8.16

	  
	  	  	  	  	  	  	  
	
TR-07-25

	
194.77

	
112.90

	
113.88

	
0.98

	
3.71

	  
	  	  	
162.15

	
163.04

	
0.89

	
25.33

	
Ben Vein


	  	  	
170.55

	
171.00

	
0.45

	
12.02

	  
	  	  	
175.16

	
175.36

	
0.20

	
3.68

	  
	  	  	  	  	  	  	  
	
TR-07-26

	
98.76

	
52.62

	
53.05

	
0.43

	
18.39

	  




















 




  





23











  










 







	 Hole ID	 Depth 

(m)

	
 From


(m)

	
 To


(m)

	
 Width


(m)

	 Grade 

(g/t)

	
Comments


	
 

	  	
62.01

	
63.72

	
1.71

	
20.72

	
Ben Vein


	
 

	  	
78.74

	
78.94

	
0.20

	
72.30

	  
	
 

	  	
 

	
 

	
 

	
 

	  
	  	  	  	  	  	  	  
	
TR-07-27

	  	
99.77

	
102.25

	
2.48

	
28.14

	
Ben Vein


	
 

	  	
103.00

	
103.34

	
0.34

	
3.87

	  
	
 

	  	
126.36

	
126.66

	
0.30

	
15.95

	  
	
 

	  	
 

	
 

	
 

	
 

	  
	
TR-07-28

	
131.37

	
109.51

	
109.73

	
0.22

	
11.45

	  
	
 

	  	
111.07

	
113.23

	
2.16

	
16.74

	
Ben Vein


	  	  	
114.31

	
114.51

	
0.20

	
3.73

	  
	  	  	
118.11

	
119.12

	
1.01

	
7.68

	  
	  	  	
140.99

	
141.29

	
0.30

	
12.30

	  
	  	  	
 

	
 

	
 

	
 

	  
	
TR-07-29

	
176.94

	
23.33

	
24.00

	
0.67

	
6.76

	
Ice


	
 

	  	
132.75

	
135.17

	
2.42

	
9.53

	  
	  	  	
 

	
 

	
 

	
 

	  
	
TR-07-30

	
185.93

	
3.96

	
4.46

	
0.50

	
4.47

	
Ice


	
 

	  	
8.47

	
8.91

	
0.44

	
9.51

	  
	  	  	
10.65

	
15.7

	
5.05

	
3.92

	  
	  	  	
140.82

	
142.45

	
1.63

	
3.68

	  
	  	  	
158.95

	
160.17

	
1.22

	
3.30

	  
	  	  	  	  	  	  	  
	
TR-07-31

	
179.22

	
61.11

	
61.41

	
0.30

	
3.97

	  
	
 

	  	
133.65

	
134.9

	
1.25

	
3.30

	  
	
 

	  	
136.15

	
136.4

	
0.25

	
3.23

	  
	
 

	  	
137.15

	
139.9

	
2.75

	
8.40

	
Ben Vein


	  	  	
141.65

	
142.4

	
0.75

	
29.67

	  
	  	  	
153.9

	
154.1

	
0.20

	
14.15

	  
	  	  	
156.67

	
157.88

	
1.21

	
4.23

	  
	  	  	
61.11

	
61.41

	
0.30

	
3.97

	  
	  	  	
133.65

	
134.9

	
1.25

	
3.30

	  

















 




 



12.0     Sampling Method and Approach







12.1         AGA Sampling


All soil, stream sediment, rock, and drill samples were collected according to AGA in-house sampling protocols for geochemical sampling.  The author has reviewed these as well as AGA


security procedures and has verified that they meet or exceed standard industry practices.  The author did not collect any soil samples for verification purposes.  These procedures included collection of field duplicates and insertion of blanks and standards at a rate of 1:25.







Core material was collected at the drill site and placed in core boxes under the supervision of an experienced geologist.  It was logged for rock type, alteration, structure, and with detailed descriptions.  The author has examined the core logs from 15 of the holes and core from several








  





24











  





















Figure 10.  High resolution imagery showing the location of the drill holes, veins, and Terra diorite (light green).  Red arrows indicate the location of the Figure 12 cross section. 
















  





25











  




















Figure 11.  Block model cross section shows drill holes and intercepts of Ben’s Vein and estimated mineralization color coded as indicated.  Section location is shown as red arrows in Figure 10. 














  





26











  










 

 







 


Figure 12.  Long section looking east in the plane of Bens Vein showing contoured grade-thickness product (g/t Au x meters).














 

 


of the holes and can verify the reliability of the logging.  Altered, veined, or otherwise mineralized core was sawed in half and one half sent for analysis.  The other half is kept onsite, except significant gold mineralized intervals are kept at ITH’s core storage facility in Fairbanks and were examined in the course of the site visit.







All AGA geochemical samples were secured and shipped to Fairbanks according to AGA protocols for sample preparation (drying, crushing, sieving, and pulverizing) at Alaska Assay Laboratories Inc.  Sample splits (300-500g for rock material; -80 mesh for soil samples) were then sent to ALS Chemex in Vancouver for analysis.  Analytical methods used were standard 50g fire assay with AA finish and multi-element ICP-MS.  These are standard analytical packages for the exploration industry and are performed to a high standard.  Analytical accuracy and precision are monitored by the analysis of reagent blanks, reference material and replicate samples.  Quality control is further assured by the use of international and in-house standards.








  





27











  










ALS Chemex is accredited by the Standards Council of Canada, NATA (Australia) and is an ISO 17025 accredited company.







12.2         ITH Sampling


ITH collected 861 rock samples.  These samples along with previous sampling define the gold-bearing veins and vein zones tested with drilling.  Sampling procedures used by AGA and described above were adopted by ITH and continued through this program with the exception that standards and blanks were inserted at at rate of 1:10 and both sample preparation and analytical work were done by ALS Chemex for 2006 and 2007 samples.  In an effort to address potential nugget affect issues that can arise with free gold in veins, the fire assay method was changed from 50g fire assay with AA finish to screen fire assay for quartz vein material.  This change ought to have produced more reliable results for gold.






















13.0     Sample Preparation, Analyses and Security







13.1         AGA Procedures


Soil and drill samples obtained in 2005 were subject to AGA’s in-house methodology and Quality Assurance Quality Control (QAQC) protocols.  Samples were prepared by Alaska Assay Laboratories, Inc. and analyzed by ALS Chemex by means of their standard 50g fire assay with normal AA finish or gravimetric finish for higher grade samples and multi-element ICP-MS.







Sampling campaigns were subject to insertion of blanks approximately every 25 samples, standards every 25 samples, as well duplicate samples from pulp splits and coarse reject splits, sample repeats approximately every 20 samples.  Results of AGA’s QAQC program have been reviewed by the author.  In the course of the program, there was an out of range error rate in the blanks and standards of ~3%.  Each case was examined closely and surrounding samples reanalyzed. Overall, AGA has been conscientious in their QAQC program and the author concludes that sampling and analytical work is accurate and reliable.












13.2         ITH Procedures


ITH continued with the QAQC protocol of AGA and increased the number of control samples (blanks and standards) to 1 in 10.  Duplicate splits of drill samples are prepared for every 20 samples.  Gold was analyzed by screen fire assay for quartz vein samples, a procedure appropriate for high grade gold samples.  Because the screen fire assay is 1kg, the sample length was reduced so that the original sample weight was approximately 1 kg.  In wall rock areas, standard 50g fire assay methods were used for the gold analysis.  Samples were weighed by ITH before shipping, by the laboratory when received and logged in, and then the coarse reject material was re-weighed by the laboratory after the sample aliquot was removed for pulverization.  This tracking of samples enabled constant verification of quality throughout the analytical process.








  





28











  










All drill samples were also submitted for multi-element ICP-MS analyses using a 4 acid digestion technique.  Geochemical data has been worked by ITH to understand geochemical signature of veins and gold mineralization.  Silver and As correlate strongly with gold mineralization (Figure 8).


 

















14.0     Data Verification


Field and drill core observations made by the author during the site visits are consistent with the style of mineralization and alteration reported in the material provided by AGA and ITH.  Outcrop exposures and slope talus were examined and found to be consistent with existing geological maps.







As a check, four samples of vein material were collected (3 outcrop, 1 float) during the 2006 visit (Figure 7).  These samples were crushed, split, pulverized and assayed with a 50 g fire-assay AA and gravimetric finish method by ALS Chemex in Reno, Nevada.  The samples contain high grade gold values (e.g. 960 g/t Au; Table 3) and are consistent with the findings of the AGA and ITH exploration programs.







Another five samples were collected during the 2010 field visit from previously sampled core.  Results from three of these samples compare favorably with the original assay (Table 4).  One sample indicates significant gold (20.8 g/t Au) compared with 43.9 g/t Au in the original.  A fifth sample assayed 0.6 g/t Au compared with 60.6 g/t Au.  At high gold values, this type of discrepancy is typical of nugget affect for this type of vein gold.  A peppercorn size grain of gold may report to one split, and not the other. TMC also collected nine duplicate samples from core.  These are plotted along with those of the first author (Figure 13).  This plot shows reasonable duplication of values with no systematic low or high bias.  TMC sampling also shows one sample with an original value of 15.4 g/t Au and a duplicate value of 102.5 gt Au. (Figure 14).







The author has not verified all sample types (soil, stream sediment) or material reported.  To the best of the author’s knowledge, AGA has been diligent in their sampling procedures and efforts to maintain accurate and reliable results.







The 2006-2007 drill database has been reviewed by the author and appears to be in good order and consistent with the geology and anticipated geochemical characteristics of this type of mineralization.  Data was also reviewed by Mr. Gary Giroux as part of the resource estimation process.

















15.0                 Adjacent Properties







There are no known adjacent properties, but Kiska Metals Corporation is currently exploring the Whistler project approximately 55 km to the east, an area initially staked and explored by Kenncott (http://www.kiskametals.com).  ITH was also involved in the exploration of a series of high-grade veins approximately 40 km to the northeast of Terra on the South Estelle Property which ITH had under option from Hidefield Gold.  The veins at South Estelle are quartz-sulfide veins and are quite distinct from the banded veins at Terra.  Hidefield Gold was acquired by Minera IRL in December 2009 (http://www.minera-irl.com). 






Millrock Resources Inc has several claim blocks approximately 30 to 40 km east of the Terra claim block (http://www.millrockresources.com).










  





29











  










TABLE 3


Check Samples Collected by the First Author, 2006








	
Sample ID

	
Assay (ppm)

	
Comments


	
T1

	
960

	
Channel sample across vein – Ben zone


	
T2

	
17.5

	
Chip across vein – SD zone


	
T3

	
260

	
Chip across vein – SD zone


	
T4

	
15.6

	
Select grab of float among talus- source unknown

















TABLE 4


Check Samples Collected by the First Author, 2010








	
Sample Number

	
Drill Hole Number

	
ITH Sample Results

	
Check Sample Results

	
Comment


	
TPK-1

	
TR07-31

	
43.9

	
20.8

	
Nugget effect


	
TPK-2

	
TR07-31

	
4.25

	
3.83

	
Consistent result


	
TPK-3

	
TR05-11

	
0.02

	
0.02

	
Consistent result


	
TPK-4

	
TR05-11

	
4.41

	
4.04

	
Consistent result


	
TPK-5

	
TR07-20

	
60.6

	
0.6

	
Strong nugget effect










































16.0     Mineral Processing and Metallurgical Testing







Niether AGA or ITH undertook any mineral processing or metallurgical tests.  However, AGA undertook an initial gold characterization study prepared by SGS Mineral Services, Lakefield, Ontario (SGS, 2006).  Sample number DC123679 from drill hole TR 05-12, 190.65 – 191.11 was crushed to liberate gold for examination.  Gold fineness ranges from 630-780 and 98.6% of the gold reported to the gravity concentrate with 79% partitioning into a gold concentrate and 10% reporting to a sulphide concentrate. The balance reported to middling and tails. The report concluded that gravity would be the best method to recover gold from this material.   This information is based on a small sample set but provides some initial information.


 








  





30











  





















Figure 13.  Data plots show results of QA/QC procedures.  A) Prep duplicates plot on log-log scale within a reasonable envelop along a line with slope of 1 indicating good reproducibility among duplicate splits.  Some outliers are consistent with nugget effect. N=75.  B) Assays of standards cluster well around the stated values.  The single outlier is thought by ITH to be a data entry error in the name of the sample.  N=215.  C) Assays for blanks.  Detection limit for the assay method used for many samples is 0.01 with acceptable blank value up to 0.03 ppm (first and second tier values).  For screen fire assay samples, the detection limit is 0.05 and 0.15 is the acceptable blank value.  Most high blanks are attributed to carry over from previous high grade samples and are in ranges acceptable to Chemex.  D) Check samples collected by the first author (blue) and by TMC (orange-brown).  Samples fall within a reasonable envelope around a line with slope of 1 with no apparent systematic bias above or below the line.

































 





31











 
















17.0     Mineral Resource and Mineral Reserve Estimates







17.1         Introduction


ITH commissioned Mr. G. Giroux of Giroux Consultants Ltd to prepare an initial resource estimate on the Ben Vein based on drilling through the end of the 2007 field season (Giroux Consultants Ltd, 2007). This is the first resource estimation that has been undertaken for the property and serves as a guide for evaluating the potential of Ben’s Vein specifically and the greater Terra project in general.







Mr. Giroux is a qualified person by virtue of education, experience and membership in a professional association.  He is independent of both the issuer and the vendor applying all of the tests in section 1.4 of National Instrument 43-101.







ITH provided Mr Giroux with their drill database consisting of data from 32 drill holes and 3633 assays from these holes.  Of these holes, 20 intersected the Ben Vein and other adjacent mineralized zones. Other drill holes targeted and intersected other mineralized veins (Ice, SD, and Fish Creek).







17.2         Resource Estimation Procedures


A resource calculation is based on estimating the most likely gold value of blocks within a modeled solid.  In this case the solid is a representation of the Ben Vein.  Blocks for a block model are determined based on geologic parameters and variograms calculated from the data provided from drill hole samples.  The variogram is a graphical representation of the probability of a given value occurring at a distance h from a data point which is a drill hole or surface sample.  Based on this, blocks in the block model are assigned values.  The value of each block is accumulated at various cutoffs to estimate tons and grade of a resource.







17.2.1     Modeling


A 3D wire frame solid model of the Ben Vein was prepared for ITH by Mr Carl Schaefer of Northern Associates, Inc.  The solid was created from E-W drill cross sections and is based on the logged intercepts of Ben’s Vein.  Software validations indicate a closed and valid solid for this model (Figure 14).







Gold composites of drill hole assays were calculated using a 3 g/t Au cutoff.  Intervals up to 1.5m wide with gold values less than the cutoff grade were allowed as part of the composite provided the interval could be carried by surrounding values that maintained a > 3g/t Au grade for the entire composite.  A second validated wire-frame 3D solid was created from the composites.







GPS surveyed collar locations along with the vein and composite solids were rectified to the USGS Lime Hills D2 30m DEM which is used for topographic base map for the Terra project and serves as the top boundary for the models.







This model adequately constrains the higher grade mineralization of the Ben Vein, but does not include lower grade material surrounding the vein and outside the shell.  For this reason, a process similar to the one described above was used to outline a 1 g/t Au shell around and including the Ben Vein material (Figure 15).  This shell gives larger volume and lower grades.  The drill hole assays were tagged if they were inside the interpreted the Ben Vein and also if they were within the larger 1 g/t Au shell.  The statistics for gold and silver for these two shells is shown in Table 5








  





32











  















TABLE 5


Statistics for gold and silver assays


3 g/t composites








	  	
Within the Ben Vein

	
Inside the 1 g/t Au Shell


	  	
Au (g/t)

	
Ag (g/t)

	
Au (g/t)

	
Ag (g/t)


	
Number

	
102

	
102

	
193

	
193


	
Mean

	
17.04

	
38.46

	
10.09

	
22.54


	
Standard Deviation

	
27.90

	
104.46

	
21.57

	
77.86


	
Minimum Value

	
0.66

	
0.88

	
0.040

	
0.38


	
Maximum Value

	
195.00

	
789.00

	
195.00

	
789.00


	
Coefficient of Variation

	
1.64

	
2.72

	
2.14

	
3.45
































Figure 14.   Subsurface view looking upwards and to the northeast at the modeled 3D solid for the Ben Vein.  Fine lines are drill hole traces.




















  





33











  










The grade distributions for gold and silver were examined both inside and outside the Ben Vein to determine if capping was required and if so, at what level.  All distributions were positively skewed.  Lognormal cumulative frequency plots for gold and silver show multiple overlapping lognormal populations.  For gold and silver values within the Ben Vein, the highest population was considered erratic.  A cap level of 2 standard deviations above the mean of the second highest population was selected in each case.  For gold values 3 assays were capped at 82 g/t and for silver 3 assays were capped at 267 g/t.  Capping reduces the mean grade in all cases but more importantly reduces the standard deviations and brings the coefficients of variation down to reasonable levels (Tables 5 and 6).




























Figure 15.  Subsurface view looking upwards and to the northeast at the 1.0 g/t Au shell.  Fine lines are drill hole traces

















Paul Klipfel Ph.D. Mineral Resource Services Inc. Gary Giroux Giroux Consultants Ltd.


  





34











  


Summary Report On The Terra Gold Project, McGrath District, Alaska                 June 15, 2010

















Drill holes were compared to the interpreted mineralized vein and the larger 1 g/t Au shell and points at which the holes entered and left the solids were recorded.  Uniform downhole 1 m composites were formed to honor the solid boundaries.  Intervals at the solid boundaries less than 0.5 m were combined with adjoining samples to produce a uniform support of 1± 0.5 m.  The composite statistics are summarized in Table 7.


 




 




Table 6


Statistics for capped gold and silver assays


 


3 g/t composites








	  	
Within the Ben Vein

	
Inside the 1 g/t Au Shell


	  	
Au (g/t)

	
Ag (g/t)

	
Au (g/t)

	
Ag (g/t)


	
Number

	
102

	
102

	
193

	
193


	
Mean

	
15.53

	
29.74

	
9.29

	
17.93


	
Standard Deviation

	
21.00

	
57.64

	
16.64

	
44.05


	
Minimum Value

	
0.66

	
0.88

	
0.040

	
0.38


	
Maximum Value

	
82.00

	
267.00

	
82.00

	
267.00


	
Coefficient of Variation

	
1.35

	
1.94

	
1.79

	
2.45



























TABLE 7


Statistics for gold and silver assays


1 m Composites








	  	
Within the Ben Vein

	
Inside the 1 g/t Au Shell


	  	
Au (g/t)

	
Ag (g/t)

	
Au (g/t)

	
Ag (g/t)


	
Number

	
37

	
37

	
68

	
68


	
Mean

	
15.68

	
31.57

	
9.21

	
17.68


	
Standard Deviation

	
14.23

	
47.68

	
11.85

	
34.31


	
Minimum Value

	
1.71

	
1.29

	
0.112

	
0.547


	
Maximum Value

	
59.73

	
193.46

	
59.73

	
193.46


	
Coefficient of Variation

	
0.91

	
1.51

	
1.29

	
1.94
































17.2.2     Variography


Pairwise relative semivariograms were produced for gold and silver in the three principal vein directions:



	
  

	
-

	
along strike 171o Dip 0o,








	
  

	
-

	
down dip 261o Dip -70o ,








	
  

	
-

	
across dip 81o Dip -20o.












Due to the amount of data available within the vein structure, these semivariograms are limited in number of pairs present at any given lag spacing and as a result are difficult to interpret.  The increased number of data points in waste produced more meaningful semivariograms with slightly more variance.  A geometric anisotropy was demonstrated for both gold and silver within both vein and shell material.  The model parameters are summarized in Table 8 with the semivariograms shown in Appendix 2.




















Paul Klipfel Ph.D. Mineral Resource Services Inc. Gary Giroux Giroux Consultants Ltd.


  





35











  


Summary Report On The Terra Gold Project, McGrath District, Alaska                 June 15, 2010









 


TABLE 8


Summary of semivariogram parameters


 





	
Zone

	
Variable

	
Az.

	
Dip

	
Co

	
C1

	
C2

	
Short Range


(m)

	
Long Range


(m)


	
Ben’s Vein

	
Au

	
171

	
0

	
0.20

	
0.30

	  	
40

	  
	
261

	
-70

	
0.20

	
0.30

	  	
80

	  
	
81

	
-20

	
0.20

	
0.30

	  	
10

	  
	
Ag

	
171

	
0

	
0.30

	
0.50

	  	
60

	  
	
261

	
-70

	
0.30

	
0.50

	  	
60

	  
	
81

	
-20

	
0.30

	
0.50

	  	
10

	  
	
1 g/t Au Shell

	
Au

	
171

	
0

	
0.40

	
0.50

	  	
40

	  
	
261

	
-70

	
0.40

	
0.50

	  	
80

	  
	
81

	
-20

	
0.40

	
0.50

	  	
10

	  
	
Ag

	
171

	
0

	
0.30

	
0.65

	
 

	
80

	  
	
261

	
-70

	
0.30

	
0.65

	  	
60

	  
	
81

	
-20

	
0.30

	
0.65

	  	
10

	  




















17.2.3     Bulk Density


ALS Chemex completed 16 specific gravity determinations on core from the project area; 6 from the host diorite unit and 10 from the mineralized vein material.  The results are summarized in Table 9.







Material within Ben’s Vein was given a density of 2.66, the average of the vein samples while material outside the vein was assigned a density of 2.80, the average of diorite samples.  Blocks containing both were assigned a weighted average.


 


 


17.2.4     Block Model


A block model with blocks 5 m E-W, 10 m N-S and 10 m vertical was superimposed over the vein solid.  The block model origin was as follows:


 


 



	 Lower Left Corner  	 462550 E  	 Column size 5 m	 60 columns
	 	 6848550 N 	 Row size 10 m 	 50 rows
	 Top of  Model	 1470 	 Level size 10 m	 43 levels
	 No Rotation	 	 	 





                                                                                                                                                                                                                                                            




Each block was compared to the topographic surface and mineralized solid and the percentage of the block below topography and inside the solid was recorded.  An example section is shown in Figure 11.  Drill holes from 25m on either side of the section are shown as well as estimated blocks from this section.































Paul Klipfel Ph.D. Mineral Resource Services Inc. Gary Giroux Giroux Consultants Ltd.


  





36











  


Summary Report On The Terra Gold Project, McGrath District, Alaska                 June 15, 2010























TABLE 9


Summary of Specific Gravity Determinations



	
SampleID

	
SG

	
Hole

	
From 


(M)

	
To


(M)

	
LithCode

	
Lith Desc.


	
DC148027

	
2.81

	
TR-06-16

	
122.3

	
122.4

	
diorite

	
diorite


	
DC148029

	
2.78

	
TR-05-10

	
101.9

	
102.0

	
diorite

	
diorite


	
DC148030

	
2.76

	
TR-05-07

	
23.2

	
23.3

	
diorite

	
diorite


	
DC148034

	
2.80

	
TR-07-17

	
436.0

	
436.2

	
diorite

	
diorite-hrln vnlts


	
DC148036

	
2.82

	
TR-05-11

	
107.2

	
107.3

	
diorite

	
diorite


	
DC148037

	
2.80

	
TR-07-27

	
98.4

	
98.5

	
diorite

	
diorite, v.trace vnlts


	  	
2.80

	  	  	  	
diorite Average

	  
	
DC148025

	
2.76

	
TR-05-03

	
31.9

	
32.0

	
vein

	
~50/50 vn+slate clast breccia


	
DC148026

	
2.61

	
TR-06-16

	
120.6

	
120.7

	
vein

	
q.vn-banded


	
DC148028

	
2.64

	
TR-05-10

	
103.5

	
103.6

	
vein

	
qtz, banded


	
DC148031

	
2.61

	
TR-07-26

	
18.9

	
19.0

	
vein

	
mottled vn


	
DC148032

	
2.66

	
TR-07-26

	
19.2

	
19.2

	
vein

	
diorite clast(25%), vn breccia


	
DC148033

	
2.63

	
TR-07-17

	
423.5

	
423.7

	
vein

	
mottled qtz


	
DC148035

	
2.63

	
TR-05-11

	
108.3

	
108.4

	
vein

	
mottled qtz


	
DC148038

	
2.65

	
TR-07-27

	
100.0

	
100.1

	
vein

	
banded qtz


	
DC148039

	
2.70

	
TR-07-29

	  	  	
vein

	
vn bxa 40%qtz -last 4cm of DC136877


	
DC148040

	
2.75

	
TR-07-29

	  	  	
vein

	
diorite w/hrln vnlts -last 4cm of DC126761


	  	
2.66

	  	  	  	
vein Average

	  




















17.2.5     Grade Interpolation


Gold and silver grades were interpolated into blocks by ordinary kriging.  Kriging was first attempted on all blocks with some percentage inside the mineralized solid (Ben’s Vein).  The kriging exercise was completed in a series of passes with an elliptical search oriented along the three principal directions of anisotropy.  The dimensions of the search ellipse were determined by the range of the semivariogram in these three directions.  The first pass looked for a minimum of 4 composites within a search ellipse with dimensions equal to 1⁄4 the semivariogram range.  If the minimum 4 composites were not found the block was not estimated.  For those blocks not estimated, a second pass using dimensions equal to 1⁄2 the semivariogram range was completed.  Again a minimum 4 composites were required to estimate a block.  A third pass using the entire range and a forth pass using twice the range followed.  Finally a fifth pass using twice the range but only requiring 2 composites was completed.  In all cases if more than 12 composites were found in any search, the closest 12 were used.







A similar exercise was completed for all estimated blocks with some percentage inside the 1 g/t shell.  It is stressed that this estimate contains all the Ben Vein material estimated above.  For this kriging run only composites outside the mineralized solid were used.  Again 4 passes were attempted using a similar strategy.  A weighted average grade was calculated for each block straddling the vein solid boundary. 






The kriging parameters are summarized in Table 10.












Paul Klipfel Ph.D. Mineral Resource Services Inc. Gary Giroux Giroux Consultants Ltd.


  





37











  


Summary Report On The Terra Gold Project, McGrath District, Alaska                 June 15, 2010























TABLE 10


Summary of Kriging Parameters








	
Zone

	
Variable

	
Pass

	
Number


Estimated

	
Az/Dip

	
Dist.


(m)

	
Az/Dip

	
Dist.


(m)

	
Az/Dip

	
Dist.


(m)


	
Ben’s


Vein

	
Au

	
1

	
3

	
171/0

	
10

	
81/-20

	
2.5

	
261/-70

	
20


	
2

	
50

	
171/0

	
20

	
81/-20

	
5

	
261/-70

	
40


	
3

	
408

	
171/0

	
40

	
81/-20

	
10

	
261/-70

	
80


	
4

	
824

	
171/0

	
80

	
81/-20

	
20

	
261/-70

	
160


	
5

	
362

	
171/0

	
80

	
81/-20

	
20

	
261/-70

	
160


	
Ag

	
1

	
5

	
171/0

	
15

	
81/-20

	
2.5

	
261/-70

	
15


	
2

	
51

	
171/0

	
30

	
81/-20

	
5

	
261/-70

	
30


	
3

	
458

	
171/0

	
60

	
81/-20

	
10

	
261/-70

	
60


	
4

	
831

	
171/0

	
120

	
81/-20

	
20

	
261/-70

	
160


	
5

	
302

	
171/0

	
120

	
81/-20

	
20

	
261/-70

	
160


	
1 g/t Au Shell

	
Au

	
1

	
22

	
171/0

	
10

	
81/-20

	
2.5

	
261/-70

	
20


	
2

	
183

	
171/0

	
20

	
81/-20

	
5

	
261/-70

	
40


	
3

	
583

	
171/0

	
40

	
81/-20

	
10

	
261/-70

	
80


	
4

	
1,298

	
171/0

	
80

	
81/-20

	
20

	
261/-70

	
160


	
Ag

	
1

	
36

	
171/0

	
20

	
81/-20

	
2.5

	
261/-70

	
15


	
2

	
270

	
171/0

	
40

	
81/-20

	
5

	
261/-70

	
30


	
3

	
795

	
171/0

	
80

	
81/-20

	
10

	
261/-70

	
60


	
4

	
985

	
171/0

	
160

	
81/-20

	
20

	
261/-70

	
120






















17.3         Resource Statement


Drill hole logging has established geologic continuity of Ben’s Vein within the diorite host rock.  With only 20 drill holes intersecting the vein, there is insufficient information to classify this resource as anything but Inferred.


 


The results are presented as two grade-tonnage Tables.  The first assumes one could mine to the limits of the vein boundaries and includes no external dilution (Table 11).  The second tabulation (Table 12) looks at mining to the limits of the 1.0 g/t Au shell or envelope around Ben’s Vein.  Both the higher grade Ben’s Vein material and the lower grade envelope material are included in this tabulation.














  





38











  











TABLE 11


Inferred Resource Within Ben Vein


 



	
Au Cutoff

	
Tonnes > Cutoff

	
Grade  > Cutoff

	
Contained Metal


	
(g/t)

	
(tonnes)

	
Au (g/t),

	
Ag (g/t)

	
Au (ozs)

	
Ag (ozs)


	
5.00

	
266,000

	
17.15

	
34.77

	
147,000

	
297,000


	
6.00

	
262,000

	
17.31

	
34.94

	
146,000

	
294,000


	
7.00

	
258,000

	
17.47

	
35.19

	
145,000

	
292,000


	
8.00

	
255,000

	
17.60

	
35.47

	
144,000

	
291,000


	
9.00

	
251,000

	
17.72

	
35.73

	
143,000

	
288,000


	
10.00

	
237,000

	
18.20

	
36.62

	
139,000

	
279,000

















TABLE 12


Inferred Resource Within 1.0 g/t Au Shell








	
Au Cutoff

	
Tonnes > Cutoff

	
Grade  > Cutoff

	
Contained Metal


	
(g/t)

	
(tonnes)

	
Au (g/t),

	
Ag (g/t)

	
Au (ozs)

	
Ag (ozs)


	
5.00

	
428,000

	
12.20

	
23.11

	
168,000

	
318,000


	
6.00

	
402,000

	
12.64

	
24.02

	
163,000

	
310,000


	
7.00

	
383,000

	
12.95

	
24.72

	
159,000

	
304,000


	
8.00

	
364,000

	
13.22

	
25.33

	
155,000

	
296,000


	
9.00

	
335,000

	
13.63

	
26.50

	
147,000

	
285,000


	
10.00

	
292,000

	
14.22

	
27.97

	
134,000

	
263,000






















An example cross section is shown as Figure 12.  Drill holes from 25 m on either side of section are shown as well as estimated blocks from this section.












17.4         Mineral Resource Classification


Mineral Resources for the Terra project are classified as an Inferred Resource according to the CIM Standards on Mineral Resources and Reserves – Definitions and Guidelines (December 2005).  An Inferred Mineral Resource is defined as follows:


 


Inferred Mineral Resource


 


“An ‘Inferred Mineral Resource’ is that part of a Mineral Resource for which quantity and grade or quality can be estimated on the basis of geological evidence and limited sampling and reasonably assumed, but not verified, geological and grade continuity.  The estimate is based on limited information and sampling gathered through appropriate techniques from locations such as outcrops, trenches, workings and drill holes.”


 


“Due to the uncertainty that may be attached to Inferred Mineral Resources, it cannot be assumed that all or any part of an Inferred Mineral Resource will be upgraded to an Indicated or Measured Mineral Resource as a result of continued exploration.  Confidence in the estimate is insufficient to allow the meaningful application of technical and economic parameters or to enable an evaluation of economic viability worthy of public disclosure. 


 


Inferred Mineral Resources must be excluded from estimates forming the basis of feasibility or other economic studies.”


 










Paul Klipfel Ph.D. Mineral Resource Services Inc. Gary Giroux Giroux Consultants Ltd.


  





39











  


Summary Report On The Terra Gold Project, McGrath District, Alaska                 June 15, 2010













 







Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.




The author is not aware of any environmental, permitting, legal, title, taxation, socio-economic, marketing, political or other relevant issues that could potentially affect this estimate of mineral resources.  Mineral reserves can only be estimated based on the results of an economic evaluation generally as part of a preliminary feasibility or feasibility study.  As such, no reserves have been estimated at this stage.






















18.0     Other Relevant Data and Information


No additional information or explanation is known by the author to be necessary to make the technical report understandable and not misleading.






















19.0     Interpretation and Conclusions


The Terra property is situated in a relatively under-explored part of Alaska.  High-grade bonanza gold veins have been discovered in spatial association with intrusive rocks similar in age and composition to those that host other intrusion-related gold deposits of Alaska.  Drill evaluation of these veins indicates strike and dip continuity of the vein and gold content over distances up to 350m and 250 m respectively.  Samples of these veins contain high-grade gold up to several hundred ppm (960 ppm [>30 opt Au] in the author’s check sample).  Other smaller veins with lower gold content (~1-3 g/t) were intersected in drill holes also.




 


An initial resource estimation on the drill-tested portion of the Ben Vein shows the vein open to the north and at depth.  The vein appears to pinch out to the south.  An initial resource estimate of mineralization in the Ben Vein indicates the presence of an Inferred Resource on the order of   168,000 ounces of gold plus 318,000 ounces of silver in 428,000 tons grading 12.2 g/t Au at a 5 g/t Au cutoff.  This estimate does not include evaluation of mineralization in adjacent veins, some of which also contain significant high grade mineralization.  Nor does it include mineralization inferred to occur, but untested, to the north and at depth.




Three other areas have been identified with reconnaissance sampling and surface review.  Samples and drill intercepts of veins (Fish Creek, Ice, SD) all contain gold mineralization and suggest that there is opportunity for additional new discoveries.  Also the Breese’s Breccia offers anomalous gold which should be investigated further.




 


The author concludes from the observations and work completed to date that Terra is the site of bonanza gold vein mineralization and possible other styles of mineralization (Breese’s and North Fish Creek).  The high grade vein gold mineralization has only partially been tested and shows geologic and mineralized continuity for the portion tested.  Further drilling will be required to identify the full extent of individual veins and the potential scope of mineralization.










Paul Klipfel Ph.D. Mineral Resource Services Inc. Gary Giroux Giroux Consultants Ltd.


  





40











  


Summary Report On The Terra Gold Project, McGrath District, Alaska                 June 15, 2010


















20.0     Recommendations







20.1         Recommended Exploration Program


Exploration of the Terra property is at a relatively early stage.  Identification of the number and extent of bonanza veins along with demonstration of their continuity will be key aspects of continued exploration.


 


TMC proposes to continue drilling the northern strike and down–dip extension of the Ben Vein as well as develop drill plans for the other veins in the trend. The identification of and map positioning of vein segments by using differential GPS ought to help map out those segments for better definition of continuity along individual veins particularly for Fish Creek and SD veins. This type of information along with structural analyses will provide a basis for follow-up drilling in these areas where a number of very high grade veins were encountered in 2005.


 


It is recommended that TMC undertake its proposed exploration of the Terra property.  The work program should include drilling, sampling, mapping, and structural analysis.  The aim of exploration should be to 1) test the extent of known vein mineralization through drilling, mapping, and structural analysis; and 2) characterize mineralization in veins surrounding specific outcropping veins such as the Ben Vein; and 3) continue to conduct reconnaissance mapping, sampling, and prospecting throughout the property.  Drilling should endeavor to increase inferred resources and convert existing resources to the indicated or measured category.


 


Identification of faults and, possible offset directions will likely play a key role in understanding the vein-intrusive-host rock relations and developing a predictive model for identifying the location and orientation of veins.  Structural elements derived from fold-thrust deformation will likely produce the primary architecture.  Overprinted features of subsequent deformation are likely to control the location of intrusions and the veins they host.


 


Prospecting, mapping, and sampling, should attempt to locate the source of anomalous surface samples and characterize that mineralization.












20.2         Budget  for 2010


TMC proposes spending $2.35M in 2010 for their initial drill program during the summer of 2010 (Table 13).  This budget is adequate and appropriate for the work they propose.

























Paul Klipfel Ph.D. Mineral Resource Services Inc. Gary Giroux Giroux Consultants Ltd.


  





41











  


Summary Report On The Terra Gold Project, McGrath District, Alaska                 June 15, 2010



















TABLE 13




 


PROPOSED 2010 EXPLORATION BUDGET








	
Expenditure

	
$ K


	
G and A and option fee

	
300


	
Camp Costs

	
100


	
Drilling


10,000 feet

	
 


1,000


	
Geological and Technical

	
250


	
Helicopter and Air Support

	
600


	
Geophysical Survey

	
50


	
Environmental

	
50


	
TOTAL

	
2,350


































































































































































 








Paul Klipfel Ph.D. Mineral Resource Services Inc. Gary Giroux Giroux Consultants Ltd.


  





42











  


Summary Report On The Terra Gold Project, McGrath District, Alaska                 June 15, 2010










 



21.0     References




 Allen, M.S., 1990, Gold anomalies and newly identified old occurrences in the Lime Hills quadrangle, Alaska, and their association with the Hartman sequence plutons: in Goldfarb RJ, Nash JT, Stoesser JW (eds.): U.S. Geological Survey Bulletin 1950, p. F1-F16.








  Brooks, A.H., 1911, The Mount McKinley region, Alaska, with descriptions of the igneous rocks and of the Bonnefield and Kantishna districts: in Prindle LM (ed.), U.S. Geological Survey Professional Paper 70, 234 p.










  Capps, S.R., 1935 The southern Alaska Range: U.S. Geological Survey Bulletin 862, 101 p.










  Giroux Consultants Ltd., 2008, Resource Estimation for Ben’s Vein, Terra Project Alaska, Confidential consultants report prepared for ITH, 25pp.










  Goldfarb, R.J., 1997, Metallogenic evolution of Alaska, in Mineral Deposits of Alaska, Goldfarb, R.J., and Miller, L.D. ed.  Economic Geology Monograph 9, p. 4-34.










  Jones, D.L., Silberling NJ, Coney, P.J., Plafker, G., 1984, Lithotectonic terrane map of Alaska west of the 141st meridian: in Silberling NJ, Jones DL (eds.), Lithotectonic terrane maps of the North American Cordillera: U.S. Geological Survey Open-File Report 84-523, p. A1-A12.










  Lanphere, M.A., and Reed, B.L., 1985, The McKinley sequence of granitic rocks-A key element in the accretionary history of southern Alaska: Journal of Geophysical Research, v. 90, p. 11413-11430.










  McCoy, D., Newberry, R.J., Layer, P., Cimarchi, J.J., Baccke, A., Masterman, J.S., and Minehane, D.L., 1997, Plutonic-related gold deposits of interior Alaska, in Mineral Deposits of Alaska, Goldfarb, R., and Miller, L., eds., Economic Geology, Monograph 9, pp. 191-241.










  Plafker, G. and Berg, H.C., 1994, Overview of the geology and tectonic evolution of Alaska: in Plafker G, Berg HC (eds.), The Geology of Alaska, Geological Society of America, v. G-1, p. 989-1021.










  Reed, B.L. and Lanphere, M.A., 1969, Age and chemistry of Mesozoic and Tertiary plutonic rocks in south-central Alaska: Geological Society of America Bulletin, v. 80, p. 23-44.










  Reed, B.L. and Lanphere, M.A., 1972, Generalized geologic map of the Alaska-Aleutian Range batholith showing potassium-argon ages of plutonic rocks: U.S. Geological Survey Miscellaneous Field Studies Map MF-372, 2 sheets.










  Reed, B.L. and Lanphere, M.A., 1973, Alaska-Aleutian batholith-Geochronology, chemistry, and relation to circum-Pacific plutonism: Geological Society of America Bulletin, v. 84, p. 2583-2610.


 


 SGS, 2006, A mineralogical description of gold occurrences within two exploration sample composites, consultants report to AngloGold Ashanti Corp.,  96 pp.










Paul Klipfel Ph.D. Mineral Resource Services Inc. Gary Giroux Giroux Consultants Ltd.


  





43











  


Summary Report On The Terra Gold Project, McGrath District, Alaska                 June 15, 2010
















22.0     Date and Signature Page







The effective date of this technical report, entitled “Summary Report on the Terra Gold Project, McGrath District, Alaska” is June 15, 2010.












Dated: June 15, 2010


 


 


Signed:


 


(signed) Paul Klipfel                                                                           [Sealed: CPG#10821]


Dr. Paul Klipfel, Ph.D, CPG#10821


 


 


(signed) Gary Giroux                                                                           [Sealed]


Gary Giroux, P.Eng. MASc.




 








Paul Klipfel Ph.D. Mineral Resource Services Inc. Gary Giroux Giroux Consultants Ltd.


  





44











  


Summary Report On The Terra Gold Project, McGrath District, Alaska                 June 15, 2010













CERTIFICATE OF AUTHOR







I, Paul D. Klipfel Ph.D.,  do hereby certify that:








	
  

	
1.

	
I am President of :







Mineral Resource Services, Inc.


4889 Sierra Pine Dr


Reno, NV 89519








	
  

	
2.

	
I have graduated from the following Universities with degrees as follows:








	
  

	
a.

	
San Francisco State University,

	
B.A. geology

	
1978








	
  

	
b.

	
University of Idaho,

	
M.S. economic geology

	
1981








	
  

	
c.

	
Colorado School of Mines

	
M.S. mineral economics

	
1988








	
  

	
d.

	
Colorado School of Mines

	
Ph.D. economic geology

	
1992













	
  

	
3.

	
I am a member in good standing of the following professional associations:








	
  

	
a.

	
Society of Mining Engineers








	
  

	
b.

	
Society of Economic Geologists








	
  

	
c.

	
Geological Society of America








	
  

	
d.

	
Society for Applied Geology








	
  

	
e.

	
American Institute of Professional Geologists













	
  

	
4.

	
I have worked as a mineral exploration geologist for 28 years since my graduation from San Francisco State University.













	
  

	
5.

	
I have read the definition of “Qualified person” set out in National Instrument 43-101 and certify that by reason of my education, affiliation with professional associations and past relevant work experience, I fulfill the requirements to be a “Qualified Person” for the purposes of NI 43-101.













	
  

	
6.

	
I am responsible for the preparation of all sections of the technical report titled Summary Report on the Terra Gold Project, McGrath District, Alaska and dated June 15, 2010 (the “Technical Report”) relating to the Terra property except section 17 on resource evaluation which was prepared by the coauthor Mr. G. Giroux.  I visited the Terra property on June 14, 2006 for 1 day, reviewed core in Fairbanks, and conducted a petrographic evaluation of mineralized and unmineralized samples.  I subsequently visited the property on May 31, 2010 and collected check samples.






























	 4889 Sierra Pine Dr.	 Reno   NV    89519  	 ph: 775 742-2237    	   p.klipfel@sbcglobal.net





 





                       






Paul Klipfel Ph.D. Mineral Resource Services Inc. Gary Giroux Giroux Consultants Ltd.


  





45











  


Summary Report On The Terra Gold Project, McGrath District, Alaska                 June 15, 2010
















	
  

	
7.

	
I have not had prior involvement with the property that is the subject of the Technical Report.













	
  

	
8.

	
I am not aware of any material fact or material change with respect to the subject mater of the Technical Report that is not reflected in the Technical Report, the omission to disclose which makes the Technical Report misleading.













	
  

	
9.

	
I am independent of the issuer applying all of the tests in section 1.4 of National Instrument 43-101.













	
  

	
10.

	
I have read National Instrument 43-101 and Form 101F1, and the Technical Report has been prepared in compliance with that instrument and form.













	
  

	
11.

	
I consent to the filing of the Technical Report with any stock exchange and other regulatory authority and any publication by them for regulatory purposes, including electronic publication in the public company files on their websites accessible by the public, or the Technical Report.

















Dated this 15th day of June, 2010












____________________________________


Signature of Qualified Person


 


 


 


____________________________________


Print name of Qualified Person





















































Paul Klipfel Ph.D. Mineral Resource Services Inc. Gary Giroux Giroux Consultants Ltd.


  





46











  


Summary Report On The Terra Gold Project, McGrath District, Alaska                 June 15, 2010















CONSENT OF AUTHOR








	
TO:

	
 International Tower Hill Mines Ltd. (the “Issuer”)


	
AND TO:

	
Ontario Securities Commission


Alberta Securities Commission


British Columbia Securities Commission


Saskatchewan Securities Commission


Manitoba Securities Commission


Nova Scotia Securities Commission


Prince Edward Island Securities Office


New Brunswick Securities Commission


Securities Commission of Newfoundland and Labrador


(collectively, the “Commissions”)


	
AND TO:

	
The Toronto Stock Exchange (the “TSX”)


	
RE:

	
Technical Report












I, Paul D. Klipfel Ph.D., do hereby consent to the filing of the written disclosure of the technical report titled Summary Report on the Terra Gold Project, McGrath District, Alaska and dated June 15, 2010 (the “Technical Report”) and any extracts from or a summary of the Technical Report in the reporting documents of International Tower Hills Inc. and to the filing of the Technical Report with the securities regulatory authorities referred to above.


 


I also certify that I have read the written disclosure being filed and I do not have any reason to believe that there are any misrepresentations in the information derived from the Technical Report or that the written disclosure in the 43-101 of International Tower Hills contains any misrepresentation of the information contained in the Technical Report.


 


Dated this 15th day of June, 2010


 


______________________________


Signature of Qualified Person


 


______________________________


Print Name of Qualified Person



























	 4889 Sierra Pine Dr.	 Reno   NV    89519  	 ph: 775 742-2237    	   p.klipfel@sbcglobal.net





 




 








Paul Klipfel Ph.D. Mineral Resource Services Inc. Gary Giroux Giroux Consultants Ltd.


  





47











  


Summary Report On The Terra Gold Project, McGrath District, Alaska                 June 15, 2010























CERTIFICATE G.H. Giroux







I, G.H. Giroux, of 982 Broadview Drive, North Vancouver, British Columbia, do hereby certify that:








	
1)  

	
I am a consulting geological engineer with an office at #1215 - 675 West HastingsStreet,Vancouver, British Columbia.








	

2) 



	

I am a graduate of the University of British Columbia in 1970 with a B.A. Sc. and in 1984 with a M.A. Sc., both in Geological Engineering.










	
3) 

	
I am a member in good standing of the Association of Professional Engineers andGeoscientists of the Province of British Columbia.








	

4) 



	

I have practiced my profession continuously since 1970.  I have had over 30 years experience calculating mineral resources.  I have previously completed resource estimations on a wide variety of precious metal deposits both in B.C. and around the world, many similar to Terra.










	

5)



	

I have read the definition of “qualified person” set out in National Instrument 43-101 and certify that by reason of education, experience, independence and affiliation with a professional association, I meet the requirements of an Independent Qualified Person as defined in National Instrument 43-101.










	

 6) 



	

This report titled “Summary Report on the Terra Gold Project, McGrath District, Alaska” dated June 15, 2010, is based on a study of the data and literature available on the Terra Property. I am responsible for Section 17 on the resource estimations completed in Vancouver during 2007.  I have not visited the property.










	
7) 

	
I have not previously worked on this deposit.








	

8)



	

As of the date of this certificate, to the best of my knowledge, information and belief, the technical report contains all scientific and technical information that is required to be disclosed to make the technical report not misleading.










	

9)



	

I am independent of the issuer applying all of the tests in section 1.4 of National Instrument 43-101.










	

10) 



	

I have read National Instrument 43-101 and Form 43-101F1, and the Technical Report has been prepared in compliance with that instrument and form.



















Dated this 15th day, June, 2010


 


“signed and sealed”


 


G. H. Giroux, P.Eng., MASc.




























Paul Klipfel Ph.D. Mineral Resource Services Inc. Gary Giroux Giroux Consultants Ltd.


  





48











  


Summary Report On The Terra Gold Project, McGrath District, Alaska                 June 15, 2010















CONSENT OF AUTHOR



	
TO:

	
 International Tower Hill Mines Ltd. (the “Issuer”)


	
AND TO:

	
Ontario Securities Commission


Alberta Securities Commission


British Columbia Securities Commission


Saskatchewan Securities Commission


Manitoba Securities Commission


Nova Scotia Securities Commission


Prince Edward Island Securities Office


New Brunswick Securities Commission


Securities Commission of Newfoundland and Labrador


(collectively, the “Commissions”)


	
AND TO:

	
The Toronto Stock Exchange (the “TSX”)


	
RE:

	
Technical Report













	
  

	
1.

	
I, Gary H. Giroux, of 1215 – 675 W. Hastings St., have prepared one or more sections and/or parts of the report entitled “Summary Report on the Terra Gold Project, McGrath District, Alaska” dated June 15, 2010 (the “Report”).













	
  

	
2.

	
I hereby consent to the filing of the Report in the public files with the Securities Commissions of British Columbia and Alberta and with the TSX Venture Exchange and to the use of the Report in connection with the disclosure in the Issuer’s Press Release dated February 7, 2008 and Material Change Report dated February 8, 2008 (collectively, the “Release”) and for any and all required regulatory filings, acceptances or approvals in connection with the use of, and reference to, the Mineral Resource Estimate for the “Terra” Property, Alaska as set out in the Report (including any subsequent press releases and material change reports).













	
  

	
3.

	
I hereby consent to the use of my name “G. H. Giroux”, and to the use of the name of “Giroux Consultants Ltd.”, a private engineering/geological consulting firm, of which I am President, in the Release.













	
  

	
4.

	
I hereby certify that I have read the Release and that the Release fairly and accurately represents the information contained in the Report.”












DATED this 15th day of June, 2008.


 


Per:____________________________________________________


       G. H. Giroux













Paul Klipfel Ph.D. Mineral Resource Services Inc. Gary Giroux Giroux Consultants Ltd.


  





49











  


Summary Report On The Terra Gold Project, McGrath District, Alaska                 June 15, 2010















Appendix 1:  Claim Information


The Terra Property is located in the Mc Grath Recording District and is comprised of a total of 240 State of Alaska claims.









	
Owner

	
File Number

	
Parcel Name

	
Date Acquired

	
MTRS    Location


	
State Claims under Lease


	
Ben Porterfield

	
648383

	
Fish Creek 1

	
22-Mar-2005

	
S020N024W31


	
Ben Porterfield

	
648384

	
Fish Creek 2

	
22-Mar-2005

	
S020N024W31


	
Ben Porterfield.

	
648385

	
Fish Creek 3

	
22-Mar-2005

	
S019N024W06


	
Ben Porterfield.

	
648386

	
Fish Creek 4

	
22-Mar-2005

	
S019N024W17


	
Ben Porterfield

	
648387

	
Fish Creek 5

	
22-Mar-2005

	
S019N024W08


	
State Claims 100% Talon Gold Owned


	
Talon Gold Alaska Inc.

	
645778

	
TX 01

	
9-Aug-2004

	
S020N025W36


	
Talon Gold Alaska Inc.

	
645779

	
TX 02

	
9-Aug-2004

	
S019N025W01


	
Talon Gold Alaska Inc.

	
645780

	
TX 03

	
9-Aug-2004

	
S019N025W01


	
Talon Gold Alaska Inc.

	
645781

	
TX 04

	
9-Aug-2004

	
S019N025W12


	
Talon Gold Alaska Inc.

	
645782

	
TX 05

	
9-Aug-2004

	
S019N025W12


	
Talon Gold Alaska Inc.

	
645783

	
TX 06

	
9-Aug-2004

	
S020N024W30


	
Talon Gold Alaska Inc.

	
645784

	
TX 07

	
9-Aug-2004

	
S019N024W06


	
Talon Gold Alaska Inc.

	
645785

	
TX 08

	
9-Aug-2004

	
S019N024W07


	
Talon Gold Alaska Inc.

	
645786

	
TX 09

	
9-Aug-2004

	
S019N024W07


	
Talon Gold Alaska Inc.

	
645787

	
TX 10

	
9-Aug-2004

	
S019N024W18


	
Talon Gold Alaska Inc.

	
645788

	
TX 11

	
9-Aug-2004

	
S020N024W30


	
Talon Gold Alaska Inc.

	
645789

	
TX 12

	
9-Aug-2004

	
S020N024W31


	
Talon Gold Alaska Inc.

	
645790

	
TX 13

	
9-Aug-2004

	
S020N024W31


	
Talon Gold Alaska Inc.

	
645791

	
TX 14

	
9-Aug-2004

	
S019N024W06


	
Talon Gold Alaska Inc.

	
645792

	
TX 15

	
9-Aug-2004

	
S019N024W06


	
Talon Gold Alaska Inc.

	
645793

	
TX 16

	
9-Aug-2004

	
S019N024W07


	
Talon Gold Alaska Inc.

	
645794

	
TX 17

	
9-Aug-2004

	
S019N024W07


	
Talon Gold Alaska Inc.

	
645795

	
TX 18

	
9-Aug-2004

	
S019N024W18


	
Talon Gold Alaska Inc.

	
645796

	
TX 19

	
9-Aug-2004

	
S020N024W32


	
Talon Gold Alaska Inc.

	
645797

	
TX 20

	
9-Aug-2004

	
S019N024W05


	
Talon Gold Alaska Inc.

	
645798

	
TX 21

	
9-Aug-2004

	
S019N024W05


	
Talon Gold Alaska Inc.

	
645799

	
TX 22

	
9-Aug-2004

	
S019N024W08


	
Talon Gold Alaska Inc.

	
645800

	
TX 23

	
9-Aug-2004

	
S019N024W05


	
Talon Gold Alaska Inc.

	
645801

	
TX 24

	
9-Aug-2004

	
S019N024W05


	
Talon Gold Alaska Inc.

	
645802

	
TX 25

	
9-Aug-2004

	
S019N024W08


	
Talon Gold Alaska Inc.

	
645803

	
TX 26

	
9-Aug-2004

	
S019N024W08


	
Talon Gold Alaska Inc.

	
645804

	
TX 27

	
9-Aug-2004

	
S019N024W17


	
Talon Gold Alaska Inc.

	
648390

	
TX 28

	
8-Mar-2005

	
S020N024W29


	
Talon Gold Alaska Inc.

	
648391

	
TX 29

	
5-Mar-2005

	
S020N024W30


	
Talon Gold Alaska Inc.

	
648392

	
TX 30

	
8-Mar-2005

	
S020N025W36


	
Talon Gold Alaska Inc.

	
649367

	
TX-31

	
13-Apr-2005

	
S020N025W15


	
Talon Gold Alaska Inc.

	
649368

	
TX-32

	
13-Apr-2005

	
S020N025W14


	
Talon Gold Alaska Inc.

	
649369

	
TX-33

	
13-Apr-2005

	
S020N025W14


	
Talon Gold Alaska Inc.

	
649370

	
TX-34

	
13-Apr-2005

	
S020N025W13


	
Talon Gold Alaska Inc.

	
649371

	
TX-35

	
13-Apr-2005

	
S020N025W13


	
Talon Gold Alaska Inc.

	
649372

	
TX-36

	
13-Apr-2005

	
S020N024W18


	
Talon Gold Alaska Inc.

	
649373

	
TX-37

	
13-Apr-2005

	
S020N024W18







 


 




 





50











 


Summary Report On The Terra Gold Project, McGrath District, Alaska                 June 15, 2010






 


 



	  Owner	 File Number	  Parcel Name	 Date Acquired	 MTRS    Location
	
Talon Gold Alaska Inc.

	
649374

	
TX-38

	
13-Apr-2005

	
S020N025W15


	
Talon Gold Alaska Inc.

	
649375

	
TX-39

	
13-Apr-2005

	
S020N025W14


	
Talon Gold Alaska Inc.

	
649376

	
TX-40

	
13-Apr-2005

	
S020N025W14


	
Talon Gold Alaska Inc.

	
649377

	
TX-41

	
13-Apr-2005

	
S020N025W13


	
Talon Gold Alaska Inc.

	
649378

	
TX-42

	
13-Apr-2005

	
S020N025W13


	
Talon Gold Alaska Inc.

	
649379

	
TX-43

	
13-Apr-2005

	
S020N024W18


	
Talon Gold Alaska Inc.

	
649380

	
TX-44

	
13-Apr-2005

	
S020N024W18


	
Talon Gold Alaska Inc.

	
649381

	
TX-45

	
13-Apr-2005

	
S020N025W22


	
Talon Gold Alaska Inc.

	
649382

	
TX-46

	
13-Apr-2005

	
S020N025W23


	
Talon Gold Alaska Inc.

	
649383

	
TX-47

	
13-Apr-2005

	
S020N025W23


	
Talon Gold Alaska Inc.

	
649384

	
TX-48

	
13-Apr-2005

	
S020N025W24


	
Talon Gold Alaska Inc.

	
649385

	
TX-49

	
13-Apr-2005

	
S020N025W24


	
Talon Gold Alaska Inc.

	
649386

	
TX-50

	
13-Apr-2005

	
S020N024W19


	
Talon Gold Alaska Inc.

	
649387

	
TX-51

	
13-Apr-2005

	
S020N024W19


	
Talon Gold Alaska Inc.

	
649388

	
TX-52

	
13-Apr-2005

	
S020N025W22


	
Talon Gold Alaska Inc.

	
649389

	
TX-53

	
13-Apr-2005

	
S020N025W23


	
Talon Gold Alaska Inc.

	
649390

	
TX-54

	
13-Apr-2005

	
S020N025W23


	
Talon Gold Alaska Inc.

	
649391

	
TX-55

	
13-Apr-2005

	
S020N025W24


	
Talon Gold Alaska Inc.

	
649392

	
TX-56

	
13-Apr-2005

	
S020N025W24


	
Talon Gold Alaska Inc.

	
649393

	
TX-57

	
13-Apr-2005

	
S020N024W19


	
Talon Gold Alaska Inc.

	
649394

	
TX-58

	
13-Apr-2005

	
S020N024W19


	
Talon Gold Alaska Inc.

	
649395

	
TX-59

	
13-Apr-2005

	
S020N025W27


	
Talon Gold Alaska Inc.

	
649396

	
TX-60

	
13-Apr-2005

	
S020N025W26


	
Talon Gold Alaska Inc.

	
649397

	
TX-61

	
13-Apr-2005

	
S020N025W26


	
Talon Gold Alaska Inc.

	
649398

	
TX-62

	
13-Apr-2005

	
S020N025W25


	
Talon Gold Alaska Inc.

	
649399

	
TX-63

	
13-Apr-2005

	
S020N025W25


	
Talon Gold Alaska Inc.

	
649400

	
TX-64

	
13-Apr-2005

	
S020N024W30


	
Talon Gold Alaska Inc.

	
649401

	
TX-65

	
13-Apr-2005

	
S020N025W27


	
Talon Gold Alaska Inc.

	
649402

	
TX-66

	
13-Apr-2005

	
S020N025W26


	
Talon Gold Alaska Inc.

	
649403

	
TX-67

	
13-Apr-2005

	
S020N025W26


	
Talon Gold Alaska Inc.

	
649404

	
TX-68

	
13-Apr-2005

	
S020N025W25


	
Talon Gold Alaska Inc.

	
649405

	
TX-69

	
13-Apr-2005

	
S020N025W25


	
Talon Gold Alaska Inc.

	
649406

	
TX-70

	
13-Apr-2005

	
S020N025W35


	
Talon Gold Alaska Inc.

	
649407

	
TX-71

	
13-Apr-2005

	
S020N025W35


	
Talon Gold Alaska Inc.

	
649408

	
TX-72

	
13-Apr-2005

	
S020N025W36


	
Talon Gold Alaska Inc.

	
649409

	
TX-73

	
13-Apr-2005

	
S020N025W35


	
Talon Gold Alaska Inc.

	
649410

	
TX-74

	
13-Apr-2005

	
S020N025W35


	
Talon Gold Alaska Inc.

	
649411

	
TX-75

	
13-Apr-2005

	
S020N025W36


	
Talon Gold Alaska Inc.

	
649412

	
TX-76

	
13-Apr-2005

	
S020N024W29


	
Talon Gold Alaska Inc.

	
649413

	
TX-77

	
13-Apr-2005

	
S020N024W29


	
Talon Gold Alaska Inc.

	
649414

	
TX-78

	
13-Apr-2005

	
S020N024W29


	
Talon Gold Alaska Inc.

	
649415

	
TX-79

	
13-Apr-2005

	
S020N024W28


	
Talon Gold Alaska Inc.

	
649416

	
TX-80

	
13-Apr-2005

	
S020N024W28


	
Talon Gold Alaska Inc.

	
649417

	
TX-81

	
13-Apr-2005

	
S020N024W27


	
Talon Gold Alaska Inc.

	
649418

	
TX-82

	
13-Apr-2005

	
S020N024W27


	
Talon Gold Alaska Inc.

	
649419

	
TX-83

	
13-Apr-2005

	
S020N024W32


	
Talon Gold Alaska Inc.

	
649420

	
TX-84

	
13-Apr-2005

	
S020N024W32


	
Talon Gold Alaska Inc.

	
649421

	
TX-85

	
13-Apr-2005

	
S020N024W33


	
Talon Gold Alaska Inc.

	
649422

	
TX-86

	
13-Apr-2005

	
S020N024W33


	
Talon Gold Alaska Inc.

	
649423

	
TX-87

	
13-Apr-2005

	
S020N024W34







 


 




Paul Klipfel Ph.D. Mineral Resource Services Inc. Gary Giroux Giroux Consultants Ltd.


 





51











 


Summary Report On The Terra Gold Project, McGrath District, Alaska                 June 15, 2010






 



	 Owner	 File Number	 Parcel Name	 Date Acquired	 MTRS    Location
	
Talon Gold Alaska Inc.

	
649424

	
TX-88

	
13-Apr-2005

	
S020N024W34


	
Talon Gold Alaska Inc.

	
649425

	
TX-89

	
13-Apr-2005

	
S020N024W32


	
Talon Gold Alaska Inc.

	
649426

	
TX-90

	
13-Apr-2005

	
S020N024W33


	
Talon Gold Alaska Inc.

	
649427

	
TX-91

	
13-Apr-2005

	
S020N024W33


	
Talon Gold Alaska Inc.

	
649428

	
TX-92

	
13-Apr-2005

	
S020N024W34


	
Talon Gold Alaska Inc.

	
649429

	
TX-93

	
13-Apr-2005

	
S020N024W34


	
Talon Gold Alaska Inc.

	
649430

	
TX-94

	
13-Apr-2005

	
S019N024W04


	
Talon Gold Alaska Inc.

	
649431

	
TX-95

	
13-Apr-2005

	
S019N024W04


	
Talon Gold Alaska Inc.

	
649432

	
TX-96

	
13-Apr-2005

	
S019N024W03


	
Talon Gold Alaska Inc.

	
649433

	
TX-97

	
13-Apr-2005

	
S019N024W03


	
Talon Gold Alaska Inc.

	
649434

	
TX-98

	
13-Apr-2005

	
S019N024W04


	
Talon Gold Alaska Inc.

	
649435

	
TX-99

	
13-Apr-2005

	
S019N024W04


	
Talon Gold Alaska Inc.

	
649436

	
TX-100

	
13-Apr-2005

	
S019N024W03


	
Talon Gold Alaska Inc.

	
649437

	
TX-101

	
13-Apr-2005

	
S019N024W03


	
Talon Gold Alaska Inc.

	
649438

	
TX-102

	
13-Apr-2005

	
S019N024W09


	
Talon Gold Alaska Inc.

	
649439

	
TX-103

	
13-Apr-2005

	
S019N024W09


	
Talon Gold Alaska Inc.

	
649440

	
TX-104

	
13-Apr-2005

	
S019N024W10


	
Talon Gold Alaska Inc.

	
649441

	
TX-105

	
13-Apr-2005

	
S019N024W10


	
Talon Gold Alaska Inc.

	
649442

	
TX-106

	
13-Apr-2005

	
S019N024W09


	
Talon Gold Alaska Inc.

	
649443

	
TX-107

	
13-Apr-2005

	
S019N024W09


	
Talon Gold Alaska Inc.

	
649444

	
TX-108

	
13-Apr-2005

	
S019N024W10


	
Talon Gold Alaska Inc.

	
649445

	
TX-109

	
13-Apr-2005

	
S019N024W10


	
Talon Gold Alaska Inc.

	
649446

	
TX-110

	
13-Apr-2005

	
S019N024W16


	
Talon Gold Alaska Inc.

	
649447

	
TX-111

	
13-Apr-2005

	
S019N024W16


	
Talon Gold Alaska Inc.

	
649448

	
TX-112

	
13-Apr-2005

	
S019N024W15


	
Talon Gold Alaska Inc.

	
649449

	
TX-113

	
13-Apr-2005

	
S019N024W15


	
Talon Gold Alaska Inc.

	
649450

	
TX-114

	
13-Apr-2005

	
S019N024W18


	
Talon Gold Alaska Inc.

	
649451

	
TX-115

	
13-Apr-2005

	
S019N024W18


	
Talon Gold Alaska Inc.

	
649452

	
TX-116

	
13-Apr-2005

	
S019N024W17


	
Talon Gold Alaska Inc.

	
649453

	
TX-117

	
13-Apr-2005

	
S019N024W17


	
Talon Gold Alaska Inc.

	
649454

	
TX-118

	
13-Apr-2005

	
S019N024W16


	
Talon Gold Alaska Inc.

	
649455

	
TX-119

	
13-Apr-2005

	
S019N024W16


	
Talon Gold Alaska Inc.

	
649456

	
TX-120

	
13-Apr-2005

	
S019N024W15


	
Talon Gold Alaska Inc.

	
649457

	
TX-121

	
13-Apr-2005

	
S019N024W15


	
Talon Gold Alaska Inc.

	
649458

	
TX-122

	
13-Apr-2005

	
S019N024W19


	
Talon Gold Alaska Inc.

	
649459

	
TX-123

	
13-Apr-2005

	
S019N024W19


	
Talon Gold Alaska Inc.

	
649460

	
TX-124

	
13-Apr-2005

	
S019N024W20


	
Talon Gold Alaska Inc.

	
649461

	
TX-125

	
13-Apr-2005

	
S019N024W20


	
Talon Gold Alaska Inc.

	
649462

	
TX-126

	
13-Apr-2005

	
S019N024W21


	
Talon Gold Alaska Inc.

	
649463

	
TX-127

	
13-Apr-2005

	
S019N024W21


	
Talon Gold Alaska Inc.

	
649464

	
TX-128

	
13-Apr-2005

	
S019N024W22


	
Talon Gold Alaska Inc.

	
649465

	
TX-129

	
13-Apr-2005

	
S019N024W22


	
Talon Gold Alaska Inc.

	
649466

	
TX-130

	
13-Apr-2005

	
S019N024W19


	
Talon Gold Alaska Inc.

	
649467

	
TX-131

	
13-Apr-2005

	
S019N024W19


	
Talon Gold Alaska Inc.

	
649468

	
TX-132

	
13-Apr-2005

	
S019N024W20


	
Talon Gold Alaska Inc.

	
649469

	
TX-133

	
13-Apr-2005

	
S019N024W20


	
Talon Gold Alaska Inc.

	
649470

	
TX-134

	
13-Apr-2005

	
S019N024W21


	
Talon Gold Alaska Inc.

	
649471

	
TX-135

	
13-Apr-2005

	
S019N024W21


	
Talon Gold Alaska Inc.

	
649472

	
TX-136

	
13-Apr-2005

	
S019N024W22


	
Talon Gold Alaska Inc.

	
649473

	
TX-137

	
13-Apr-2005

	
S019N024W22







 


 




Paul Klipfel Ph.D. Mineral Resource Services Inc. Gary Giroux Giroux Consultants Ltd.


 





52











 


Summary Report On The Terra Gold Project, McGrath District, Alaska                 June 15, 2010






 



	 Owner	 File Number	 Parcel Name	 Date Acquired	 MTRS    Location
	
Talon Gold Alaska Inc.

	
649474

	
TX-138

	
13-Apr-2005

	
S019N024W28


	
Talon Gold Alaska Inc.

	
649475

	
TX-139

	
13-Apr-2005

	
S019N024W28


	
Talon Gold Alaska Inc.

	
649476

	
TX-140

	
13-Apr-2005

	
S019N024W27


	
Talon Gold Alaska Inc.

	
649477

	
TX-141

	
13-Apr-2005

	
S019N024W27


	
Talon Gold Alaska Inc.

	
651073

	
TR-142

	
3-Oct-2005

	
S019N024W30


	
Talon Gold Alaska Inc.

	
651074

	
TR-143

	
3-Oct-2005

	
S019N024W30


	
Talon Gold Alaska Inc.

	
651075

	
TR-144

	
3-Oct-2005

	
S019N024W29


	
Talon Gold Alaska Inc.

	
651076

	
TR-145

	
3-Oct-2005

	
S019N024W29


	
Talon Gold Alaska Inc.

	
651077

	
TR-146

	
3-Oct-2005

	
S019N024W30


	
Talon Gold Alaska Inc.

	
651078

	
TR-147

	
3-Oct-2005

	
S019N024W30


	
Talon Gold Alaska Inc.

	
651079

	
TR-148

	
3-Oct-2005

	
S019N024W29


	
Talon Gold Alaska Inc.

	
651080

	
TR-149

	
3-Oct-2005

	
S019N024W29


	
Talon Gold Alaska Inc.

	
651081

	
TR-150

	
3-Oct-2005

	
S020N024W20


	
Talon Gold Alaska Inc.

	
651082

	
TR-151

	
3-Oct-2005

	
S021N024W20


	
Talon Gold Alaska Inc.

	
651083

	
TR-152

	
3-Oct-2005

	
S022N024W21


	
Talon Gold Alaska Inc.

	
651084

	
TR-153

	
3-Oct-2005

	
S023N024W21


	
Talon Gold Alaska Inc.

	
651085

	
TR-154

	
3-Oct-2005

	
S020N024W22


	
Talon Gold Alaska Inc.

	
651086

	
TR-155

	
3-Oct-2005

	
S020N024W22


	
Talon Gold Alaska Inc.

	
651087

	
TR-156

	
3-Oct-2005

	
S020N024W23


	
Talon Gold Alaska Inc.

	
651088

	
TR-157

	
3-Oct-2005

	
S020N024W20


	
Talon Gold Alaska Inc.

	
651089

	
TR-158

	
3-Oct-2005

	
S020N024W20


	
Talon Gold Alaska Inc.

	
651090

	
TR-159

	
3-Oct-2005

	
S020N024W21


	
Talon Gold Alaska Inc.

	
651091

	
TR-160

	
3-Oct-2005

	
S020N024W21


	
Talon Gold Alaska Inc.

	
651092

	
TR-161

	
3-Oct-2005

	
S020N024W22


	
Talon Gold Alaska Inc.

	
651093

	
TR-162

	
3-Oct-2005

	
S020N024W22


	
Talon Gold Alaska Inc.

	
651094

	
TR-163

	
3-Oct-2005

	
S020N024W23


	
Talon Gold Alaska Inc.

	
651095

	
TR-164

	
3-Oct-2005

	
S020N024W28


	
Talon Gold Alaska Inc.

	
651096

	
TR-165

	
3-Oct-2005

	
S020N024W28


	
Talon Gold Alaska Inc.

	
651097

	
TR-166

	
3-Oct-2005

	
S020N024W27


	
Talon Gold Alaska Inc.

	
651098

	
TR-167

	
3-Oct-2005

	
S020N024W27


	
Talon Gold Alaska Inc.

	
651099

	
TR-168

	
3-Oct-2005

	
S020N024W26


	
Talon Gold Alaska Inc.

	
651100

	
TR-169

	
3-Oct-2005

	
S020N024W26


	
Talon Gold Alaska Inc.

	
651101

	
TR-170

	
3-Oct-2005

	
S020N024W35


	
Talon Gold Alaska Inc.

	
651102

	
TR-171

	
3-Oct-2005

	
S020N024W35


	
Talon Gold Alaska Inc.

	
651103

	
TR-172

	
3-Oct-2005

	
S019N024W02


	
Talon Gold Alaska Inc.

	
655924

	
TRW-1

	
17-Oct-2006

	
S019N025W24


	
Talon Gold Alaska Inc.

	
655925

	
TRW-2

	
17-Oct-2006

	
S019N025W24


	
Talon Gold Alaska Inc.

	
655926

	
TRW-3

	
17-Oct-2006

	
S019N025W24


	
Talon Gold Alaska Inc.

	
655927

	
TRW-4

	
17-Oct-2006

	
S019N025W24


	
Talon Gold Alaska Inc.

	
655928

	
TRW-5

	
17-Oct-2006

	
S019N025W13


	
Talon Gold Alaska Inc.

	
655929

	
TRW-6

	
17-Oct-2006

	
S019N025W13


	
Talon Gold Alaska Inc.

	
655930

	
TRW-7

	
17-Oct-2006

	
S019N025W13


	
Talon Gold Alaska Inc.

	
655931

	
TRW-8

	
17-Oct-2006

	
S019N025W13


	
Talon Gold Alaska Inc.

	
655932

	
TRW-9

	
17-Oct-2006

	
S019N025W11


	
Talon Gold Alaska Inc.

	
655933

	
TRW-10

	
17-Oct-2006

	
S019N025W12


	
Talon Gold Alaska Inc.

	
655934

	
TRW-11

	
17-Oct-2006

	
S019N025W11


	
Talon Gold Alaska Inc.

	
655935

	
TRW-12

	
17-Oct-2006

	
S019N025W12


	
Talon Gold Alaska Inc.

	
655936

	
TRW-13

	
17-Oct-2006

	
S019N025W03


	
Talon Gold Alaska Inc.

	
655937

	
TRW-14

	
17-Oct-2006

	
S019N025W02


	
Talon Gold Alaska Inc.

	
655938

	
TRW-15

	
17-Oct-2006

	
S019N025W02


	
Talon Gold Alaska Inc.

	
655939

	
TRW-16

	
17-Oct-2006

	
S019N025W01


	
Talon Gold Alaska Inc.

	
655940

	
TRW-17

	
17-Oct-2006

	
S019N025W03


	
Talon Gold Alaska, Inc.

	
655941

	
TRW-18

	
17-Oct-2006

	
S019N025W02


	
Talon Gold Alaska, Inc.

	
655942

	
TRW-19

	
17-Oct-2006

	
S019N025W02







 


 




Paul Klipfel Ph.D. Mineral Resource Services Inc. Gary Giroux Giroux Consultants Ltd.


 





53











 


Summary Report On The Terra Gold Project, McGrath District, Alaska                 June 15, 2010






 


 


 



  





	 Owner	 File Number	 Parcel Name	 Date Acquired	 MTRS    Location
	
Talon Gold Alaska, Inc.

	
655943

	
TRW-20

	
17-Oct-2006

	
S019N025W01


	
Talon Gold Alaska, Inc.

	
655944

	
TRW-21

	
17-Oct-2006

	
S020N025W34


	
Talon Gold Alaska, Inc.

	
655945

	
TRW-22

	
17-Oct-2006

	
S020N025W34


	
Talon Gold Alaska, Inc.

	
661807

	
SP-1

	
15-Nov-2007

	
SO21N24W25NE


	
Talon Gold Alaska, Inc.

	
661808

	
SP-2

	
15-Nov-2007

	
SO21N23W30NW


	
Talon Gold Alaska, Inc.

	
661809

	
SP-3

	
15-Nov-2007

	
SO21N23W30NE


	
Talon Gold Alaska, Inc.

	
661810

	
SP-4

	
15-Nov-2007

	
SO21N24W25SE


	
Talon Gold Alaska, Inc.

	
661811

	
SP-5

	
15-Nov-2007

	
SO21N23W30SW


	
Talon Gold Alaska, Inc.

	
661812

	
SP-6

	
15-Nov-2007

	
SO21N23W30SE


	
Talon Gold Alaska, Inc.

	
661813

	
SP-7

	
15-Nov-2007

	
SO21NN4W36NE


	
Talon Gold Alaska, Inc.

	
661814

	
SP-8

	
15-Nov-2007

	
SO21N23W31NW


	
Talon Gold Alaska, Inc.

	
661815

	
SP-9

	
15-Nov-2007

	
SO21N23W31NE


	
Talon Gold Alaska, Inc.

	
661816

	
SP-10

	
15-Nov-2007

	
SO21N24W36SE


	
Talon Gold Alaska, Inc.

	
661817

	
SP-11

	
15-Nov-2007

	
SO21N23W31SW


	
Talon Gold Alaska, Inc.

	
661818

	
SP-12

	
15-Nov-2007

	
SO20N24W2NW


	
Talon Gold Alaska, Inc.

	
661819

	
SP-13

	
15-Nov-2007

	
SO20N24W2NE


	
Talon Gold Alaska, Inc.

	
661820

	
SP-14

	
15-Nov-2007

	
SO20N24W3SE


	
Talon Gold Alaska, Inc.

	
661821

	
SP-15

	
15-Nov-2007

	
SO20N24W2SW


	
Talon Gold Alaska, Inc.

	
661822

	
SP-16

	
15-Nov-2007

	
SO20N24W2SE


	
Talon Gold Alaska, Inc.

	
661823

	
SP-17

	
15-Nov-2007

	
SO20N24W10NW


	
Talon Gold Alaska, Inc.

	
661824

	
SP-18

	
15-Nov-2007

	
SO20N24W10NE


	
Talon Gold Alaska, Inc.

	
661825

	
SP-19

	
15-Nov-2007

	
SO20N24W11NW


	
Talon Gold Alaska, Inc.

	
661826

	
SP-20

	
15-Nov-2007

	
SO20N24W11NE


	
Talon Gold Alaska, Inc.

	
661827

	
SP-21

	
15-Nov-2007

	
SO20N24W9SE


	
Talon Gold Alaska, Inc.

	
661828

	
SP-22

	
15-Nov-2007

	
SO20N24W10SW


	
Talon Gold Alaska, Inc.

	
661829

	
SP-23

	
15-Nov-2007

	
SO20N24W10SE


	
Talon Gold Alaska, Inc.

	
661830

	
SP-24

	
15-Nov-2007

	
SO20N24W11SW


	
Talon Gold Alaska, Inc.

	
661831

	
SP-25

	
15-Nov-2007

	
SO20N24W11SE


	
Talon Gold Alaska, Inc.

	
661832

	
SP-26

	
15-Nov-2007

	
SO20N24W12SW


	
Talon Gold Alaska, Inc.

	
661833

	
SP-27

	
15-Nov-2007

	
SO20N24W16NW


	
Talon Gold Alaska, Inc.

	
661834

	
SP-28

	
15-Nov-2007

	
SO20N24W16NE


	
Talon Gold Alaska, Inc.

	
661835

	
SP-29

	
15-Nov-2007

	
SO20N24W15NW


	
Talon Gold Alaska, Inc.

	
661836

	
SP-30

	
15-Nov-2007

	
SO20N24W15NE


	
Talon Gold Alaska, Inc.

	
661837

	
SP-31

	
15-Nov-2007

	
SO20N24W14NW


	
Talon Gold Alaska, Inc.

	
661838

	
SP-32

	
15-Nov-2007

	
SO20N24W14NE


	
Talon Gold Alaska, Inc.

	
661839

	
SP-33

	
15-Nov-2007

	
SO20N24W13NW


	
Talon Gold Alaska, Inc.

	
661840

	
SP-34

	
15-Nov-2007

	
SO20N24W13NE


	
Talon Gold Alaska, Inc.

	
661841

	
SP-35

	
15-Nov-2007

	
S020N23W18NW


	
Talon Gold Alaska, Inc.

	
661842

	
SP-36

	
15-Nov-2007

	
SO20N23W18NE


	
Talon Gold Alaska, Inc.

	
661843

	
SP-37

	
15-Nov-2007

	
SO20N24W17SE


	
Talon Gold Alaska, Inc.

	
661844

	
SP-38

	
15-Nov-2007

	
SO20N24W16SW


	
Talon Gold Alaska, Inc.

	
661845

	
SP-39

	
15-Nov-2007

	
SO20N24W16SE


	
Talon Gold Alaska, Inc.

	
661846

	
SP-40

	
15-Nov-2007

	
SO20N23W18SW


	
Talon Gold Alaska, Inc.

	
661847

	
SP-41

	
15-Nov-2007

	
SO20N23W18SE









Note: Meridian Township Range and Section (MTRS) Location system is the Federal land location system.  Example F006S013E12 is a section of land located in the Fairbanks Meridian, Township 6 South, Range 13 East, Section 12.








Paul Klipfel Ph.D. Mineral Resource Services Inc. Gary Giroux Giroux Consultants Ltd.


  





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Summary Report On The Terra Gold Project, McGrath District, Alaska                 June 15, 2010















APPENDIX 2:  LIST OF DRILL HOLES PROVIDED FOR RESOURCE ESTIMATION












(Those used in Estimate are highlighted)








	
HOLE

	
EASTING

	
NORTHING

	
ELEVATION

	
LENGTH


	
TR-05-01

	
462710.30

	
6848803.50

	
1337.70

	
90.83


	
TR-05-02

	
462710.30

	
6848803.50

	
1337.70

	
50.60


	
TR-05-03

	
462760.10

	
6848712.00

	
1386.10

	
52.73


	
TR-05-04

	
462630.90

	
6848740.60

	
1285.60

	
144.48


	
TR-05-05

	
462726.10

	
6849611.40

	
1364.00

	
94.79


	
TR-05-06

	
462726.10

	
6849611.40

	
1364.00

	
101.50


	
TR-05-07

	
462900.20

	
6850188.40

	
1083.90

	
204.06


	
TR-05-08

	
462900.20

	
6850188.40

	
1083.90

	
200.86


	
TR-05-09

	
462900.20

	
6850188.40

	
1083.90

	
152.40


	
TR-05-10

	
462900.20

	
6850188.40

	
1083.90

	
140.82


	
TR-05-11

	
462630.90

	
6848740.60

	
1285.60

	
128.02


	
TR-05-12

	
462630.90

	
6848740.60

	
1285.60

	
199.34


	
TR-06-13

	
462576.50

	
6848935.10

	
1253.30

	
15.85


	
TR-06-14

	
462576.50

	
6848935.10

	
1253.30

	
17.68


	
TR-06-15

	
462959.00

	
6849443.00

	
1533.80

	
99.67


	
TR-06-16

	
462576.50

	
6848935.10

	
1253.30

	
360.43


	
TR-06-17

	
462576.50

	
6848935.10

	
1253.30

	
283.16


	
TR-07-18

	
462576.50

	
6848935.10

	
1253.30

	
312.12


	
TR-07-19

	
462629.20

	
6848651.60

	
1299.20

	
187.30


	
TR-07-20

	
462576.50

	
6848935.10

	
1253.30

	
345.64


	
TR-07-21

	
462629.20

	
6848651.60

	
1299.20

	
246.43


	
TR-07-22

	
462576.50

	
6848935.10

	
1253.30

	
184.10


	
TR-07-23

	
462576.50

	
6848935.10

	
1253.30

	
200.41


	
TR-07-24

	
462556.90

	
6848671.40

	
1263.40

	
250.85


	
TR-07-25

	
462630.90

	
6848740.60

	
1285.60

	
194.77


	
TR-07-26

	
462645.90

	
6848914.20

	
1293.20

	
98.76


	
TR-07-27

	
462645.90

	
6848914.20

	
1293.20

	
131.37


	
TR-07-28

	
462645.90

	
6848914.20

	
1293.20

	
146.30


	
TR-07-29

	
464327.00

	
6845730.00

	
1829.00

	
176.94


	
TR-07-30

	
464327.00

	
6845730.00

	
1829.00

	
185.93


	
TR-07-31

	
462630.90

	
6848740.60

	
1285.60

	
179.22


	
TR-07-32

	
464327.00

	
6845730.00

	
1829.00

	
33.83


















Paul Klipfel Ph.D. Mineral Resource Services Inc. Gary Giroux Giroux Consultants Ltd.


  





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Summary Report On The Terra Gold Project, McGrath District, Alaska                 June 15, 2010











APPENDIX 3  SEMIVARIOGRAMS


 
















Paul Klipfel Ph.D. Mineral Resource Services Inc. Gary Giroux Giroux Consultants Ltd.


  





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Summary Report On The Terra Gold Project, McGrath District, Alaska                 June 15, 2010










APPENDIX 3  SEMIVARIOGRAMS


 







 


 




Paul Klipfel Ph.D. Mineral Resource Services Inc. Gary Giroux Giroux Consultants Ltd.


 





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Summary Report On The Terra Gold Project, McGrath District, Alaska                 June 15, 2010












 



APPENDIX 3  SEMIVARIOGRAMS


 







 


 




Paul Klipfel Ph.D. Mineral Resource Services Inc. Gary Giroux Giroux Consultants Ltd.


  





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Summary Report On The Terra Gold Project, McGrath District, Alaska                 June 15, 2010






 


 


 



APPENDIX 3  SEMIVARIOGRAMS


 







 


 




Paul Klipfel Ph.D. Mineral Resource Services Inc. Gary Giroux Giroux Consultants Ltd.


  





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Summary Report On The Terra Gold Project, McGrath District, Alaska                 June 15, 2010






 



APPENDIX 3  SEMIVARIOGRAMS




 





 




Paul Klipfel Ph.D. Mineral Resource Services Inc. Gary Giroux Giroux Consultants Ltd.


  





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Summary Report On The Terra Gold Project, McGrath District, Alaska                 June 15, 2010






 


 



APPENDIX 3  SEMIVARIOGRAMS


 







 


 


 




Paul Klipfel Ph.D. Mineral Resource Services Inc. Gary Giroux Giroux Consultants Ltd.


  





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Summary Report On The Terra Gold Project, McGrath District, Alaska                 June 15, 2010






 



APPENDIX 3  SEMIVARIOGRAMS


 







 


 




Paul Klipfel Ph.D. Mineral Resource Services Inc. Gary Giroux Giroux Consultants Ltd.


  





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Summary Report On The Terra Gold Project, McGrath District, Alaska                 June 15, 2010






 


 



APPENDIX 3  SEMIVARIOGRAMS




 





 


 




Paul Klipfel Ph.D. Mineral Resource Services Inc. Gary Giroux Giroux Consultants Ltd.


  





63











  


Summary Report On The Terra Gold Project, McGrath District, Alaska                 June 15, 2010






 



APPENDIX 3  SEMIVARIOGRAMS


 







 


 


 




Paul Klipfel Ph.D. Mineral Resource Services Inc. Gary Giroux Giroux Consultants Ltd.


  





64











  


Summary Report On The Terra Gold Project, McGrath District, Alaska                 June 15, 2010






 



APPENDIX 3  SEMIVARIOGRAMS


 







 


 


Paul Klipfel Ph.D. Mineral Resource Services Inc. Gary Giroux Giroux Consultants Ltd.


 


65