Document:

EXHIBIT 10.11
                                 FIRST AMENDMENT
                                       TO
                                OPTION AGREEMENT
                              (OROGRANDE/DEADWOOD)

         This First Amendment to Orogrande/Deadwood Option Agreement is entered
into this 5th day of September, 1997, by and between Arctic Fox Ltd., a Delaware
corporation, whose address is in care of Joe Gray, 669 Gray Fox Lane, Corvallis,
Montana, 59828 ("Owner"), Idaho Consolidated Metals Corporation, a British
Columbia corporation, whose address is P.O. Box 1124 , Lewiston, Idaho 83501
("ICMC"), Idaho Gold Corporation, a Nevada corporation, whose address is in care
of Bema Gold Corporation, 1400-510 Burrard Street, Vancouver, B.C. V6C 3A8
("IGC"), and Cyprus Gold Exploration Corporation, a Delaware corporation, whose
address is 9100 East Mineral Circle, Englewood, Colorado 80112 ("Cyprus").

                                    RECITALS

         A. Owner's predecessor in interest, Joyce Mines, Inc. (the "Owner"
therein), entered into that certain "Option Agreement" dated April 15, 1986,
with Normine Resources (U.S.) Inc. (the "Optionee" therein), and its parent
corporation, Normine Resources Ltd., a Canadian corporation (such option
agreement hereinafter referred to as the "Orogrande/Deadwood Agreement"),
covering certain patented and unpatented mining claims and agreements concerning
such mining claims situated in Idaho County, Idaho;

         B. The patented and unpatented claims covered by the Orogrande/Deadwood
Agreement have been released to Owner and/or Owner's predecessor by Cyprus'
predecessors, and certain unpatented mining claims have been located by Cyprus'
predecessors.

         C. Owner, by mesne assignments, succeeded to the interest of Joyce
Mines, Inc. in the Orogrande/Deadwood Agreement, and IGC succeeded to the
interest of Normine Resources (U.S.) Inc. in the Orogrande/Deadwood Agreement.

         D. ICMC and IGC entered into that certain Agreement dated July 9, 1996
(the "IGC Agreement"), under which ICMC succeeded to the interest of Normine
Resources (U.S.) Inc. in the Orogrande/Deadwood Agreement subject to the terms
of the IGC Agreement.

         E. ICMC entered into a binding letter agreement dated June 13, 1997,
with Cyprus under which Cyprus succeeded to the interest of the Optionee under
the Orogrande/Deadwood Option Agreement and became the "Optionee" for all
purposes thereof, and under which ICMC agreed to contribute the
Orogrande/Deadwood Agreement, subject to the IGC Agreement, and all of ICMC's
interests in mining claims covered thereby, to the purposes of the Joint Venture
created by that June 13, 1997 letter agreement.

         F. There have arisen disputes among Owner, IGC and ICMC with respect to
the interpretation of the Orogrande/Deadwood Agreement, and Owner, IGC, ICMC and
Cyprus desire to amend the Orogrande/Deadwood Agreement to delete certain claims
and add others, and thereby to conform the definition of "Mining Property"
therein to the properties actually held by the parties pursuant to the agreement
as set forth herein.

                                    AGREEMENT

         NOW THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

         1. "Mining Property" Defined. Schedule A of the Orogrande/Deadwood
Option Agreement is deleted in its entirety and in its place is inserted the new
"Exhibit A," attached hereto and by this reference incorporated herein.

         2. Owner's Interest. Owner's undivided interest or right to acquire an
interest is as set forth in Exhibit A.

         3. Scheduled Payments Clarified. Payments due to Owner and to third
parties pursuant to underlying leases, options and other agreements affecting
the Mining Property are set forth in Exhibit B.

         4. Right of Assignment. Section 30.3 shall be deleted in its entirety
and in its place insert the following

30.3            Optionee may not transfer or assign this option agreement
                without the prior written consent of the Owner; provided that
                Optionee may freely reassign this agreement to ICMC or may
                transfer or assign this option agreement or any interest therein
                or in the Mining properties to affiliates or to Amax Fold Inc.,
                whose address is 9100 E. Mineral Circle, Englewood, Colorado
                80112, and provided further that Optionee may transfer, assign,
                encumber, or convey this option agreement, the Mining Property,
                or any interest therein, in connection with financing a project
                on or for the benefit of the Mining Property. For purposes
                hereof "affiliate" means any person, corporation, limited
                liability company, or other legal entity (excepting a general
                partnership, joint venture, or limited partnership) which
                directly or indirectly controls, is controlled by, or is under
                common control of Optionee.

         5. Default Rectification.

         (a) Delete the last sentence of Section 5.1 and in its place insert the
following:

         The Optionee may prepay all or any part of the $500,000., whether or
         not Optionee may be in default or alleged to be in default of this
         option agreement, and upon the payment by Optionee, its predecessors
         and/or successors of the total amount of $500,000., Owner's deeds
         delivered into escrow pursuant to Section 20.1 of this option agreement
         conveying and transferring Owner's all right, title and interest in and
         to this option agreement, and/or the Mining Property, shall be
         delivered to Optionee.

         (b) Article 20 shall be deleted in its entirety and in its place
inserted the following:

                         Escrow; Default; Right to Cure

         20.1 On or before September 26, 1997, (a) ICMC, IGC, and Cyprus will
         execute, release and quitclaim deeds, in the form attached to this
         Agreement as Exhibit D-1 (referred to as the "Optionee's Deed"),
         transferring this option agreement and conveying their respective
         claims to Owner, and (b) Owner will execute release and quitclaim
         deeds, in the form attached to this option agreement as Exhibit D-2
         (referred to as the "Owner's Deed"), transferring this option agreement
         and the Mining Property to Optionee. The Optionee's Deed and Owner's
         Deed will be delivered to an escrow company in Missoula, Montana,
         mutually satisfactory to the parties (hereinafter referred to as an
         "Escrow Agent"), tobe held subject to instructions mutually
         satisfactory to the parties, and subject to the Optionee's right to
         cure set forth in Section 20.2 below, shall either be (a) recorded upon
         the termination or expiration of the Orogrande/Deadwood Option
         Agreement, or (b) returned to Optionee when Optionee, its predecessors
         and/or successors shall have paid to owner, its purchasers or
         successors, the total amount of $500,000., and has made all the option
         payments as contemplated by Article 3 ("Option Payments") and Section
         5.1 ("Net Smelter Return") of the this option agreement. In the case of
         the Owner's Deed, the Escrow Agent shall deliver the Owner's Deed upon
         Optionee, fulfilling all of its purchase obligations under
         Orogrande/Deadwood Option Agreement by the payment or prepayment Owner,
         its predecessors and/or successors, of an accumulated sum of $500,000.

         20.2 If Optionee shall default or fail to perform fully and promptly
         any of the terms of this option agreement, such default or failure
         shall continue for a period of thirty (30) days after either (a)
         written notice to the parties to this option agreement specifying the
         default (and the payment or action(s) necessary to cure the default) is
         provided to Optionee pursuant to this option agreement, without being
         remedied, satisfied and discharged, or (b), if Optionee shall in good
         faith dispute the existence of a default, an award of arbitration
         pursuant to Article 25 of this Agreement determining that Optionee is
         in default, then Owner, as applicable, may, at its option and subject
         to Optionee's cure rights provided for in Section 20.3 below, declare
         this option agreement to be terminated and forfeited and any and all
         rights, privileges, and interests of Optionee, including IGC, ICMC,
         and/or Cyprus, in this Agreement and the Mining Properties shall be
         null, void and at an end.

         20.3 Optionee shall have the right, but not the obligation, to cure any
         default or failure under this option agreement by substantially
         performing as set forth in the notice or by commencing to substantially
         perform the same within the thirty (30) day period following notice;
         provided that Optionee may cure any and all defaults or alleged
         defaults by payment or prepayment of an amount necessary to bring the
         cumulated payments to Owner, its predecessor and successors, to a total
         of $500,000. For example, if the total accumulation of option payments,
         royalties and minimum royalties paid to Owner at the time of a default
         or alleged default shall equal $200,000., the Optionee may, in any case
         cure any default by the tender of the sum of $300,000., bringing the
         total payment to owner, its predecessors and/or successors to $500,000.

         20.4 In the event of termination, forfeiture, and cancellation, as
         provided for herein, all sums paid hereunder by Optionee or its
         predecessors in interest and all improvements made on the Mining
         Property shall become the property of Owner, and shall be deemed to be
         the stipulated rental and lease payable for occupancy and use of the
         Mining Property and as liquidated damages for the breach of this option
         agreement.

         6. Arbitration. Article 25 shall be deleted in its entirety, and in its
place inserted the following:

             25.1 Any and all disputes, controversies and claims between the
             parties arising out of this option agreement shall be amicably and
             promptly settled by negotiation and consultation among them. In the
             event the parties are unable to settle such a dispute, controversy
             or claim by negotiation and consultation within sixty (60) days,
             either party may submit the dispute to arbitration in accordance
             with the terms of this Section. All arbitrations shall be conducted
             at such place as may be agreed and, in the absence of agreement, in
             Denver, Colorado under the rules of the American Arbitration
             Association. All disputes submitted to arbitration shall be
             determined pursuant to the laws of the State of Montana. All
             decisions of the panel of arbitrators on any matter submitted for
             arbitration in accordance with this option agreement shall be final
             and binding on the parties. Damages for which a party may be liable
             shall not include incidental or consequential damages, the loss of
             business opportunity or punitive damages. The parties further
             acknowledge that monetary damages awarded under this Section may
             not be an adequate remedy for a breach of this option agreement and
             agree that any party may apply for specific performance and
             injunctive relief to prevent such a breach.

         7. Right to Data. Section 19.2 shall be deleted in its entirety and in
its place inserted the following:

   19.2 Optionee will provide quarterly regular technical reports on its
   activities. Owner will have access to inspect non-interpretive data, studies,
   reports, and other information at reasonable times. Cyprus will provide Owner
   copies of such at Owner's request without warranty or representation, express
   or implied, of the accuracy or fitness of the data for any purpose.

         8. Ratification. A copy of the Orogrande/Deadwood Agreement is attached
hereto as Exhibit C and by this reference incorporated herein. Except as
specifically amended herein, the Orogrande/Deadwood Agreement remains in full
force and effect. Owner confirms that as of the effective date hereof all of the
obligations of the Optionee thereunder have been fully performed and that
neither IGC, ICMC, nor Cyprus nor any of their predecessors are in default
thereof.

         IN WITNESS WHEREOF the parties hereto have executed this First
Amendment to Option Agreement on the day and year first above written.

ARCTIC FOX LTD.                     CYPRUS GOLD EXPLORATION CORPORATION

[GRAPHIC OMITTED]

By:______________________________   By:____________________________________
Name:___________________________    Name:_________________________________
Title:____________________________  Title:__________________________________

IDAHO CONSOLIDATED METALS  IDAHO GOLD CORPORATION

By:______________________________   By:____________________________________
Name:___________________________    Name:_________________________________
Title:____________________________  Title:__________________________________

STATE OF______________     )
                                                   )SS.
COUNTY OF____________    )

         The foregoing instrument was acknowledged before me this _______ day of
___________, 1997 by_______________________ the _______________________of Arctic
Fox Ltd., a Delaware corporation, on behalf of said corporation

                                         ---------------------------------------
                                         Notary Public

                                         My commission expires:_________________

STATE OF______________     )
                                                   )SS.
COUNTY OF____________    )

         The foregoing instrument was acknowledged before me this _______ day of
___________, 1997 by_______________________ the _______________________of Cyprus
Gold Exploration Corporation., a Delaware corporation, on behalf of said
corporation

                                         ---------------------------------------
                                         Notary Public

                                         My commission expires:_________________

STATE OF______________     )
                                                   )SS.
COUNTY OF____________    )

         The foregoing instrument was acknowledged before me this _______ day of
___________, 1997 by_______________________ the _______________________of Idaho
Consolidated Metals Corporation, a British Columbia corporation, on behalf of
said corporation

                                         ---------------------------------------
                                         Notary Public

                                         My commission expires:_________________

STATE OF______________     )
                                                   )SS.
COUNTY OF____________    )

         The foregoing instrument was acknowledged before me this _______ day of
___________, 1997 by_______________________ the _______________________of Idaho
Gold Corporation, a Nevada corporation, on behalf of said corporation

                                         ---------------------------------------
                                         Notary Public

                                         My commission expires:_________________

                                    EXHIBIT A

                                       TO

                                 FIRST AMENDMENT

                                       TO

                               OROGRANDE/DEADWOOD

                                OPTION AGREEMENT

                               THE MINING PROPERTY

Unpatented lode mining claims situated in Idaho County, Idaho

Claim Name               BLM Number   Owner's Interest
----------               ----------   ----------------
CNTRL #3                   100373           100%
CNTRL #4                   100374           100%
CNTRL #5                   100375           100%
CNTRL #6                   100376           100%
CNTRL #7                   100377           100%
CNTRL #8                   100378           100%
CNTRL #9                   100379           100%
RL 9A                      105234           100%
RL 10                      105325           100%
RL 11                      105326           100%
RL 11A                     105327           100%
RL 22                      105338           100%
RL 24                      105340           100%
RL 25                      105341           100%
RL 26                      105342           100%
RL 27                      105343           100%
RL 28                      105344           100%
RL 28A                     105345           100%
RL 29                      105346           100%
RL 30                      105347           100%
RL 30A                     105348           100%
RL 31                      105349           100%

                                    EXHIBIT B

                                       TO

                                 FIRST AMENDMENT

                                       TO

                               OROGRANDE/DEADWOOD

                                OPTION AGREEMENT

                               SCHEDULED PAYMENTS

Amount Due to Artic Fox on execution of this Amendment               $ 28,980.00

Balance Remaining After Payment of Amount Due on execution
of this Amendment                                                    $242,000.00

                                    EXHIBIT C

                                       TO

                                 FIRST AMENDMENT

                                       TO

                               OROGRANDE/DEADWOOD

                                OPTION AGREEMENT

                       OROGRANDE/DEADWOOD OPTION AGREEMENT

                                OPTION AGREEMENT

                                     between

                               JOYCE MINES, INC.,
                          NORMINE RESOURCES (U.S.) INC.
                                       and

                             NORMINE RESOURCES LTD.

                                      INDEX

         Description                                         Page No.
1.       Option Term and Property Description
2.       Title                                                 2
3.       Option Payments                                       3
4.       Work Commitment                                       3
5.       Net Smelter Return                                    3
6.       Method of Payment                                     4
7.       Exclusive Possession                                  4
8.       Adverse Claims                                        4
9.       Taxes                                                 5
10.      Assessment Work                                       5
11.      Exploration and Mining Rights                         6
12.      Right of Way                                          7
13.      Commingling of Ore                                    7
14.      Right to Withdrawal                                   7
15.      Option Only                                           7
16.      Regulatory Approval                                   7
17.      Liability and Indemnity                               8
18.      Right to Inspect                                      8
19.      Right to Data                                         9
20.      Default Rectification                                 9
21       After Acquired Rights                                 10
22.      Termination                                           10

         Description                                        Page No.
23.      Removal of Property and Equipment                     10
24.      Force Majeure                                         11
25.      Arbitration                                           11
26.      Notice provisions                                     12
27.      Further Assurances                                    12
28.      Registration of Documents                             12
29.      Appointment of Attorney                               12
30.      Right of first Refusual and Assignment Rights         12
31.      Compliance with Law                                   13
32.      United States Currency                                14
33.      Devolution Provisions                                 14
34.      Headings                                              14
35.      Entire Agreement                                      14

         Schedule "A" - Property

         Schedule "B" - Payments

         Schedule "C" - April 1st, 1986 agreement between Harald C.
                         Lyncy, June M. Lynch and Zjoyce Mines, Inc.
         Schedule "D" - November 11th, 1985 agreement between Paul
                         O. Filer and Joyce Mines. Inc.

                                OPTION AGREEMENT

THIS AGREEMENT is dated as of April 15th, 1986.

BETWEEN:

         JOYCE MINES, INC. Of P.0. Box 1405, Hamilton, Montana, U.S.A. 59408
         (hereinafter called the "Owner")

OF THE FIRST PART

AND:

         NORMINE RESOURCES (U.S.) INC., a Nevada Corporation having a place of
         business at 900 - 609 West Hastings Street, Vancouver, British
         Columbia, Canada

                  (herinafter called the "Optionee")

OF THE SECOND PART

         AND: NORMINE RESOURCES LTD., a body corporate having its registered
         office at Suite 2500 - 595 Burrard Street, Vancouver, British Columbia,
         Canada:

         (hereinafter called "Resources")

OF THE THIRD PART

WHEREAS:

A. The Owner has acquired the rights to certain mineral properties in the state
of Idaho.

B. The Owner warrants that the properties as set forth in Schedule "A" hereto
are in good standing with respect to all assessment work, taxes and property
payments to Vendors and that the properties are free and clear of all
encumbrances as disclosed herein.

                      Option Term and Property Description

1. The owner hereby options to the Optionee all of the property described in
Schedule "A" together with, except as may be expressly provided in Schedule "A",
all:

         (a)      tailings, dumps and mine wastes;

         (b)      surface rights, easements and rights of way incident thereto;

         (c)      mining and water rights incident thereto; and

         (d)      improvements, fixtures, personal property, mining machinery
                  and hooks thereon useful or convenient for mining and related
                  uses.

herein defined as "Mining Property".

                                      Title

2.1 The Owner represents that it is in exclusive possession of and bears full
mining privileges to the Mining Property, subject to the rules and regulations
of the State of Idaho. Owner warrants and shall defend title to all of the
Mining Property for which owner warrants in subsections (2) and (3) hereof.

2.2 Owner represents that mining contract(s) have been properly acquired and
maintained and that any required .validation work has been properly performed;
assessment work and proof of assessment work duly performed and filed or
otherwise properly carried out under the provisions of the applicable law.

2.3 Owner warrants that the Mining Property is free and clear of all liens and
encumbrances, including any leases, rights or licenses granted to third persons
by, through or under Owner, except taxes not yet payable and those liens and
encumbrances, if any, specifically described in Schedule "A".

2.4 Owner shall not create, permit or suffer any liens or encumbrances on the
Mining Property unless expressly subordinated to Optionee's rights hereunder. If
the Mining Property or any interest therein should be subject to lien or
encumbrance, Optionee, at its option, may discharge the same and thereby be
subrogated to all the rights of the holder thereof, and may recover any amounts
so paid from any amounts otherwise due to Owner.

2.5 Owner shall at Optionee's request take all action necessary to cure any
defect in or remove any cloud on title to the Mining Property, including
participation in judicial proceedings and recordation of any unrecorded
documents. If after notice or demand Owner fails to do so, Optionee may take
such action in owner's name and recover its reasonable costs and expenses,
including attorney's fees, from amounts otherwise due to owner.

2.6 Owner shall provide Optionee with all data and information related to title
to the Mining Pioperty and copies of all unrecorded documents related thereto.

2.7 Neither the Optionee's execution of this Agreement nor its failure to
disapprove Owner's title shall constitute an admission of or estoppel as to the
validity of Owner's title.

                                 Option Payments

3.1 The Owner shall receive $10.00 on the execution of this Agreement (receipt
of which is hereby acknowledged). In the event that the Optionee places the
property into production or obtains a feasibility study which recommends
production, the Owner agrees to transfer or cause to be transferred all of its
right, title and interest in the property to the Optionee subject only to the
payments and payment of the royalty as hereinafter defined. The payments shall
be as set forth in Schedule "E" hereto. The Optionee acknowledges the existence
of the payment requirements as set forth in Schedules C and D attached hereto.

3.2 Resources hereby agrees to make the payments due to the owner and the
payments due in accordance with the agreements referred to in Schedules C and D
attached hereto.

                                 Work Commitment

4. The Optionee agrees to expend a sufficient sum on or before July 1st of each
year to keep the property in good standing so as to maintain its interest in the
property.

                               Net Smelter Return

5.1 The Owner will be entitled to a 3% net smelter return when the property is
placed in production. when the Owner has received a total of $500,000 from the
net smelter return or quarterly payments, the owner shall have no further right
to quarterly payments or net smelter returns. The payments shall be made on a
quarterly basis. The Optionee may prepay all or any portion of the $500,000.

5.2 Any overpayment or underpayment shall be credited or billed to the next
payment allowing for interest at a rate equal to the U.S. Treasury Note Rate for
$100,000 notes held ninety (90) days accrued from the date such faulty payment
is made.

5.3 Imputed value: Should sale of material from the premises be made to a wholly
or partially owned subsidiary such allowable costs shall mean the amount that
Optionee would have incurred if such operations were carried out at facilities
not owned or controlled by Optionee then offering comparable custom services for
comparable products on prevailing terms.

5.4 Production Royalty payments shall be paid on or before the 45th day after
the last day of the Optionee fiscal quarter in which Opzionee receives payment
for sale of ores.

5.5 Audits: within ninety (90) days after the end of the
Optionee's fiscal year, Optionee shall deliver to Owner an unaudited statement
of royalties paid owner during the year and the calculation thereof. All
year-end statements shall be deemed true and correct three (3) months after
presentation. unless within that period Owner delivers notice to Optionee
specifying with particularity the grounds for each exception. Owner shall be
entitled at Owner's expense to an annual independent audit of the statement by a
certified public .accountant, but pnly if Owner delivers a demand for audit to
Optionee within two (2) months after presentation of the related year-end
statement.

                                Method of Payment

b. All payments due owner shall be made in accordance with the owner's
instructions.

                              Exclusive Possession

7. Optionee shall have exclusive possession and quiet enjoyment of the Miring
Property while this Agreement is in effect.

                                 Adverse Claims

8.1 If Owner should own less than the entire ownership interest described in the
Mining Property. all payments shall be payable to Owner only in the proportion
to owner's actual ownership. If production from the Mining Property or any part
thereof should be subject to any royalty or interest in production other than
those expressly reserved to owner herein; Optionee may credit all costs and
expenses it incurs by reason of such royalty or interests against amounts
otherwise due to Owner.

8.2 Optionee shall have no obligation to protect or defend if any third person
asserts any claims to the mining Property for any reason except Optionee's
failure to perform obligations expressly required by this Agreement. 8.3 If any
third person asserts any claim to the Mining Property or to any amounts payable
by Optionee, Optionee may deposit any amounts otherwise due Owner in escrow
until the dispute is finally resolved. Optionee may credit all costs and
expenses including attorney's fees, it incurs by reason of such claim against
all amounts otherwise due Owner.

                                      Taxes

9. Optionee shall nay all taxes on the Mining Property accruing while this _
Agreement is in effect but apportioned appropriately for fractions of years. All
taxes shall be paid before delinquent, but neither party shall be under. any
obligation to pay any tax while contesting it in good faith.

                                 Assessment Work

10.1 Optionee shall perform:

         (a) assessment work (unless deferred or excused) or make payments in
         lieu of assessment work to necessary parties for the benefit of the
         leased state land included in this Agreement according to the laws and
         statutes of the State of Idaho;

         (b) no additional work commitments above and beyond those judged
         necessary by the Optionee.

10.2 Owner agrees that all contiguous property are to be treated as a whole
pursuant to any limitations or rulings by the State of Idaho and that any
assessment work conducted on any part of any property can be applied to the
necessary assessment work for any or all those lumped properties when such work
is required by state law.

                          Exploration and Mining Rights

11.1 Owner grants Optionee unrestricted access to the Mining Property and the
exclusive rights:

      (a) to explore, develop and mine, and to extract. remove, store and
      dispose of any and all ores, minerals, air, water, waste and other
      materials from the Mining Property by means of underground or surface
      mining operations in or on the Mining Property or other property and to
      deposit on the Mining Property materials from the Mining Property or other
      property;

      (b) to carry on mining, milling, treatment, processing, beneficiating,
      smelting and refining operations on or in the Mining Property with respect
      to ores, minerals and other materials from the Mining Property or other
      property, including existing tailings, wastes and dumps; (c) to use any
      part of the Mining Property for stockpiles, tailings, wastes or dumps, and
      for any other purpose incident to the underground or surfacing mining on
      the Mining Property or other property;

      (d) to erect or construct, use and maintain on the mining Property such
      roads, facilities, buildings, structures, machinery and equipment as
      Optionee may require for the conduct of its operations on the Mining
      Property or other property; (e) to continue to keep this Agreement in
      effect and use the Mining Property for mining, milling, treatment,
      processing, beneficiation, smelting, refining or storage of ores, minerals
      and other materials from other property with such use being deemed the
      conduct of development and mining operations by the Optionee; and

      (f) to stockpile or to sell or otherwise dispose of ores, minerals and
      other materials in such forms at such times and on such terms as Optionee
      along may determine.

11.2 Optionee shall conduct its operations in a good and workmanlike manner in
substantial compliance with the then generally accepted understanding of
applicable laws and regulations in the mining industry.

                                  Right of Way

12. While this Agreement is in effect, Optionee shall have non-exclusive rights
of way upon, over, into and through the Mining Property and other property now
or hereafter owned, leased or otherwise controlled by Owner to construct,
improve, and maintain such pipelines, communication lines, electrical power or
transmission lines, roads, railroads, tramways, flumes, tunnels., drifts and
other facilities as may be necessary or convenient for Optionee's operations in
the vicinity of the Mining Property.

                               Commingling of Ore

13. Optionee may commingle ores and minerals from the Mining Property with other
ores and minerals. Before commingling. Optionee shall weigh (or calculate by
volume), sample and assay such ores and minerals and other materials in
accordance with sound mining and metallurgical practices for moisture and
payable content. Optionee shall keep records of weight (or calculations
thereof), moisture and assays of payable content.

                               Right to Withdrawal

14. The Optionee may elect on or before July 1st of each year in which these
agreement is in effect to withdraw any property set forth in Schedules C and D
from the provisions of this assignment and the Optionee shall not be responsible
for any payments due or assessment required pursuant to those certain agreements
set out in Schedules C and D.

                                   Option Only

15. It is mutually understood and agreed that this is an option agreement only
and nothing contained herein, nor the making of any payment to the Owner, nor
the doing of any act or work shall obligate the Optionee to make any payment or
to make any further or other expenditures for issue and allot shares hereunder.

                               Regulatory Approval

16. The Owner acknowledges that this Agreement is subject to the approval of the
Vancouver Stock Exchange and to a satisfactory title opinion in the opinion of
the Optionee's attorneys that the state of title is acceptable. The Owner
further acknowledges that the issuance of shares may be subject to satisfactory
geological reports being received by the Vancouver Stock Exchange.

                             Liability and Indemnity

17.1 Optionee shall keep the Mining Property free of liens for labour performed
and materials furnished for Optionee. Subject to the limitations in this
section, Optionee shall hold Owner harmless from all liability to third persons
caused by Optionee's operations on the mining Property which result in injury to
or death of persons or livestock or damage to personal property or liability for
violation of applicable laws or regulations. 17.2 In no event shall Optionee's
liability for damage or economic loss to owner's property, whether resulting
from Optionee's negligence or otherwise, exceed the fair market value of the
affected property (not including its value for mining or related purposes).

17.3 within a reasonable time after termination of this Agreement Optionee shall
begin and diligently pursue to completion any reclamation of Owner's real
property then required by applicable laws and regulations by reason of
Optionee's operations. Optionee's liability with respect to disturbance of real
property shall be limited to compliance with such laws and regulations.

17.4 The payments and the performance of assessment work as herein expressly
required are in lieu of any obligation of Optionee express or implied, to
explore, develop or mine the Mining Property or to make any other efforts or
expenditures in connection therewith.

17.5 The obligations and limitations of liability in this section shall survive
termination of this Agreement.

                                Right to Inspect

18. At reasonable times owner may at Owner's risk and expense:

         (a)      enter the Mining Property to make reasonable inspections and
                  if needed surveys of Optionee's operations; and

         (b)      inspect production. assay and other records necessary to
                  substantiate Optionee's performance of its obligation to mine
                  the property in such a way as to prevent large scale
                  high-grading of the property and to thus ensure that the
                  natural resources of the deposit are developed in a good and
                  workmanlike manner. Failure to conduct mining _ operations in
                  a way substantially recognized in the industry as good and
                  proper shall constitute an injury to the Owner and shall be
                  compensated to the Owner as damages due to lost revenue in a
                  way calculated by Registered Geologists or Licensed Engineers
                  retained by the owner whose costs shall be included in the
                  damage claim.

                                  Right to Data

19.1 Upon execution of this Agreement; Owner shall make available to Optionee
for copying and general use all hydrological. geological, geophysical and
engineering data and maps, logs of drill holes, cuttings and cores. gamma and
other logging results, assay, sampling and similar data concerning the Mining
Property in Owner's possession or control.

19.2 Upon request by Owner made within sixty (60) days after termination of this
Agreement, Optionee shall deliver to Owner copies or summaries of all assay
results and electric and drill hole logs and copies of drill hole location maps
including interpretations and evaluations thereof which Optionee has obtained as
a result of work on the Mining Property under this Agreement. Optionee shall
have no liability on account of any such data relied on acted on by owner.

                              Default Rectification

20.1 Default by Optionee in performance of any obligation arising hereunder
shall not work a forfeiture or termination of this Agreement, nor cause the
termination or reversion of the estate created hereby, nor be grounds for
cancellation hereof in whole or in part.

20.2 If Optionee commits a default, owner shall give Optionee notice specifying
the default with particularity, owner's sole remedy shall be recovery of actual
compensatory damages plus interest at the prevailing U.S. Treasury note rate for
$10,000.00 notes held for ninety (90) days and the payment of the alleged
default itself interest on which accrues from the date Optionee receives notice
of default. If Optionee by notice to Owner disputes the existence of the
default, no interest shall accrue if Optionee, within thirty (30) days after the
default is finally determined, initiates and diligently pursues to completion
efforts to cure the default.

                              After-Acquired Rights

21. If owner acquires any right or interest within one mile of the boundaries of
the Mining Property while this Agreement is in effect:

         (a)      Owner shall promptly notify Optionee;

         (b)      such right or interest shall automatically become part of the
                  Mining Property for all purposes of this Agreement; and

         (c)      Owner shall sign, acknowledge and deliver to Optionee an
                  amendment to this Agreement so as to include such right or
                  interest,

                                   Termination

22.1 Optionee may terminate this Agreement at any time in accordance with this
Agreement by giving owner notice of termination in recordable form.

22.2 Upon termination or surrender, all rights and obligations of the parties
with respect to the affected acreage shall terminate except for:

         (a)      Optionee's obligation to pay royalties for ores and minerals
                  and other materials previously mined or otherwise removed; and

         (b)      any rights or obligations which expressly survive termination.

                        Removal of Property and Equipment

23. Optionee may, within one (1) year after termination of this Agreement,
remove from Owner's real property all fixtures and personal property, including
ores, tailings, dumps and wastes and improvements which it has erected or placed
thereon except mine supports in place. Owner shall not be responsible for any
such property of Optionee. Optionee may post watchmen on the Mining Property
during such period.

                                  Force Majeure

24.1 If Optionee shall be prevented by Force Majeure from timely performance of
any acts or obligations hereunder. the failure, if any, shall be excused and the
period for performance shall be extended for, a period equal to the duration of
the Force Majeure. Optionee shall promptly give owner notice of commencement and
termination of Force Majeure. Optionee shall use reasonable diligence to remove
Force Majeure but shall not be required against its will to institute legal
proceedings . adjust any labour dispute or challenge the validity of any law,
regulation, action or inaction of government.

24.2 "Force Majeure" includes any cause beyond Optionee's reasonable control,
whether or not forseeable, including but not limited to law, regulations, action
or inaction of government, inability to obtain any public or private licence,
permit or authorization which may be required for operations in connection with
the Mining Property or other property, including removal and disposal of waters,
wastes and tailings and reclamation, mining casualty, damage to or destruction
of mine or mill plans or facility, fire, explosion, inclement weather, flood,
civil commotion, labour dispute, inability to obtain workmen or material, delay
in transportation, economic conditions and acts of God.

                                   Arbitration

25. Any dispute arising out of or related to the negotiation, existence.
performance, breach or termination of this Agreement shall be finally determined
by arbitration. The exclusive place of arbitration shall be Vancouver, British
Columbia. Either party may compel arbitration by notice to the other. Within
forty-five (45) days of the notice the parties shall select one arbitrator. If
they fail to agree, the presiding judge (or senior judge in point of service if
there is no presiding judge) of the state court for the place of arbitration
shall appoint one arbitrator from a list of three (3) persons submitted by each
party. The arbitrator shall follow the procedural rules of the American
Arbitration Association and shall apply the substantive law of the State where
the Mining Property is located. The arbitrator shall issue his decision within
six (6) months of his selection. Costs of arbitration shall be borne equally.

                                Notice Provisions

26. All notices and other communications to either party shall be in writing and
delivered personally or sent by prepaid mail. All notices of default or
arbitration and demands for performance or assurance, if delivered personally to
Optionee, shall be delivered to Optionee's Land Administrator and, if mailed to
either party, shall be sent by certified or registered mail shall be effective
on the next business day after the date of the actual delivery. Until a change
of address is so given, notices shall be addressed to Optionee and owner,
respectively as set out herein.

                               Further Assurances

27. The parties agree to execute any and all further documents and agreements as
may be reasonably required to carry out the spirit and intent of this Agreement.

                            Registration of Documents

28. The parties may register their interests as they appear and the parties
agree to co-operate fully with each other in any requirements for such
registration.

                             Appointment of Attorney

29. The Owner hereby appoints the Optionee her true and lawful attorney for any
purpose related to the carrying out of any terms or provisions of this Agreement
and without limiting the generality of the foregoing for the purpose of any
necessary applications or filings to any governmental body or agency.

                  Right of First Refusal and Assignment Rights

30.1 In the event that a party hereby received a bona fide offer in lawful money
of the Unites States, which it is willing to accept for the purchase of all its
interest in said lands, from a person, firm or corporation ready, willing and
able to purchase same, the party receiving such offer shall immediately give
written notice thereof to the other party hereto, including in the said notice
and name and address of the offeror, the price offered and all other pertinent
terms and conditions of the offer. The other party hereto, for a period of
thirty (30) days following receipt of said notice, shall have the prior and
preferred right and option to purchase the selling party's interest at the price
and according to the terms and conditions specified in said offer. The party
electing to exercise such right shall give written notice to the selling party
within said thirty (30) day period, to purchase the interest being sold. If,
however, such right and option is not exercised by the party giving written
notice thereof within thirty (30) days after the receipt of the above-mentioned
notice, the party receiving said offer may accept same and complete said sale to
the offeror in accordance with said offer within sixty (60) days after the
expiration of the said thirty (30) day period; provided that if the selling
party fails to accept said offer or to complete said sale within said sixty (60)
day period, the preferred right and option of the other party hereunder shall be
considered as revived and the party which received said offer shall not complete
said sale to said offeror unless and until said offer has again been presented
to the other party hereto, as hereinabove provided, and said other party has
again failed to elect to purchase on the terms and conditions of said offer.

30.2 A party who wishes to dispose of its entire interest by merger,
reorganization, consolidation or sale of all its assets, or a sale or transfer
of its interest to a subsidiary or parent company, or subsidiary of a parent
company, or to any company in which any one party owns a majority of the stock,
where the transferee assumes the obligations hereunder. of such party and
thereby becomes a party to this Agreement shall not be bound by the provisions
of the right of first refusal.

30.3 Nothing contained herein shall prevent an assignment of the interest of the
Optionee or Resources to a related or associated company and nothing herein
shall prevent the Optionee, Resources or such related or associated company from
entering into agreements with third parties for further exploration and
developing of the Mining Property.

30.4 An assignment shall not operate to relieve the assigned interest or the
assignor from any liability or obligation which accrued prior to such
assignment.

                               Compliance With Law

31. The Optionee shall be responsible for the compliance with all governmental
rules and regulations as may from time to time be in effect including without
limiting the generality of the foregoing, rules and regulations made pursuant to
any mining, pollution and environmental requirements of the state of Idaho or
other regulatory authority. The Optionee shall be responsible for the posting of
any bonds necessary for the reclamation and restoration of the property as
required by any governmental agency and further the Optionee agrees to obtain
the consents, licenses and permits required which may be necessary for the
carrying out of its operations. The-Owner agrees to co-operate with the Optionee
in the obtaining of such consents, licenses and permits.

                             United States Currency

32. All sums of money referred to in the Agreement shall be expressed in United
States currency.

                              Devolution Provisions

33. All covenants, conditions and terms of this Agreement shall be of benefit to
and run with the Mining Property and shall bind and inure to the benefit of the
parties hereto, their respective successors and assigns. The only relationship
between Owner and Optionee is that of lessor/lessee. Nothing herein shall be
construed to create, expressly or by implication a partnership, joint
enterprise, relationship of master and servant or principal and agent, or the
like, between parties.

                                    Headings

34. The headings used in this Agreement are for convenience only and are to-be
disregarded in construing this Agreement.

                                Entire Agreement

35. This Agreement contains the entire agreement of the parties. There are no
other conditions, agreements, representations, warranties or understandings,
express or implied.

The parties have executed this Agreement the day and year above written.

The Corporate Seal of JOYCE         )
MINES, INC. was hereunto            )
Affixed in the presence of:         )
--------------------------------  )
--------------------------------  )

The corporate Seal of NORMINE     )
RESOURCES LTD. was hereunto       )
Affixed in the presence of:         )
--------------------------------  )
--------------------------------  )

The Corporate Seal of NORMINE     )
RESOURCES (U.S.) INC. was           )
Hereunto affixed in the                     )
Presence of:                                         )
-------------------------------   )
-------------------------------   )
STATE OF IDAHO                    )
COUNTY OF                         )

On this _________ day of _______________________________ in the year, 1986,
before me _____________________________________________ , personally appeared
_________________________________________________________ known to be the
President (or Vice-President, Secretary or assistant secretary) of the
corporation that executed the within instrument and acknowledged to me that such
corporation. executed the same.

                ________________________________Notary Public for the State
                of Idaho
                Residing at____________________

                My commission expires__________
BEA:0685j

                                  SCHEDULE "A"

                to that Agreement made between Joyce Mines, Inc-,
            Normine Resources Ltd. and Normine Resources (U.S.) Inc.
                                  dated , 1986

CLAIM                               CLAIM NUMBER             BLM NUMBER

Centennial                     3 - 9                   10373 - 10389
Grande Ore                                         IMC 42394
Grande Ore fraction                                    42395
Orogrande                                              42396
Orogrande 1                                            42397
Orogrande 2                                            42398
Orogrande 3                                            42399
Gold Valley Placer                                 IMC 42400
Key West Lode
Western star No. 1
Western star No. 2

Claims
                    1-18, 11, 32, 33, 24 -51      IMC 83200-IMC 83217, IMC 85673
                    46-73, 74-77, 80-88, 88A      IMC 85674, IMC 85675, IMC 8321
                    89, 89A, 90-105, 105A, 107A   IMC 83235, IMC 83236-IMC 83253
                    108-110, 112-120, 121-133,    IMC 85676-IMC 85679, IMC 85680
                    133A, 134, 134A, 135-145,     IMC 85688, IMC 95689, IMC 8569
                    146-148, 149-157, 167, 169    IMC 85691, IMC 83254-IMC 83269
                    171-200, 201-250, 251, 252-   IMC 83270, IMC 85692, IMC 8569

                    262                           IMC 85695, IMC 85696-IMC 85704
                                                  IMC 83271- IMC 83283,
                                                  IMC 83284  IMC 83285,
                                                  IMC 83286, IMC 8328
                                                  IMC 83297, IMC 85705-
                                                  IMC 85707  IMC 85708-
                                                  IMC 85716, IMC 83298
                                                  IMC 83299, IMC 83300-
                                                  IMC 83329  IMC 83488-
                                                  IMC 83537, IMC 83538
                                                  IMC 85717- IMC 85727

Rokey 1R                                              105414
Rokey 2R                                              105415
Rokey 3R                                              105416
Rokey 4R                                              105417
Rokey 5R                                              105418

                                  SCHEDULE "B"

                         to that Agreement made between

                    Joyce Mines, Inc., Normine Resources Ltd.

                        and Normine Resources (U.S.) Inc.

                                and dated , 1986

(a)      On Vancouver Stock Exchange approval 10,000 shares of Normine Resources
         Ltd.

(b)      The sum of $6,000 on or before August 31st. 1986 and the sum of $6,000
         every quarter thereafter until the Owner has received a total of
         $500,000 in the form of net smelter royalties or the quarterly
         payments. The optionee may elect to make such quarterly payments in the
         form of cash or its equivalent value in stock of Normine Resources Ltd.
         which equivalent value shall be determined by taking the average
         trading price for the month in which such quarterly payment is due and
         dividing it into the quarterly payment and causing that number of
         shares to be issued to the Owner. The Owner hereby acknowledges that
         the maximum number of shares which might be issued is 200,000 shares.

(c)      A net smelter return of 3% payable, if and when the property is placed
         into production, on a quarterly basis upon receipt of such returns by
         the Optionee.

BEA:0685j

STATE OF __________________ )
                            : ss.
COUNTY OF _________________                       )

On this ______________ day of _______________________________ , 1983, before me,
a Notary Public for the State of ____________________________, personally
appeared _________________________ known to me to be the person whose name is
sub-scribed to the within instrument and acknowledged to me that he executed the
same.

IN WITNESS WHEREOF, I have hereunto set my hand and affixed my Notarial Seal the
day and year first above written.

(SEAL)                  (Seal)        Notary Public or the State of
                                      Residing at
                                      My Commission expires:

STATE OF __________________ )
                            : ss.
COUNTY OF _________________ )

On this ___________ day of_______________________ , 1983, before me, a Notary
Public for the State of _______________________, personally appeared
_____________________________________ known to me to be the person whose name is
sub-scribed to the within instrument and acknowledged to me that he executed the
same.

         IN WITNESS WHEREOF, I have hereunto set my hand and affixed my Notarial
Seal the day and year first above written.

(SEAL)                  (Seal)        Notary Public or the State of
                                      Residing at
                                      My Commission expires:

STATE OF __________________ )
                            : ss.
COUNTY OF _________________                       )

On this ___________ day of ____________________________________ , 1983, before
me, a Notary Public for the State of __________________________, personally
appeared _____________________________ known to me to be the person whose name
is sub-scribed to the within instrument and acknowledged to me that he executed
the same.

         IN WITNESS WHEREOF, I have hereunto set my hand and affixed my Notarial
Seal the day and year first above written.

(SEAL)                     (Seal)        Notary Public or the State of
                                         Residing at
                                         My Commission expires:
PROVINCE OF BRITISH COLUMBIA  )
                              )
CITY OF VANCOUVER             )

On this 10th day of June, in the year, 1986, before me,
 Brian E. Abrahm, personally appeared Richard J. Barclay
known to be the Secretary of Normine Resources (U.S.) inc.,
the corporation that executed the within instrument and acknowledged to me that
such corporation executed the same.

                                                     ---------------------------
                                                     Notary Public for the
                                                     province Of British
                                                     Columbia, in the City Of
                                                     Vancouver Residing at
                                                     Vancouver, British Columbia
                                                     My Commission is for life.

                                     DATED:
                                April 15, 1986.

                                    BETWEEN:
                               JOYCE MINES, INC.,

                          NORMINE RESOURCES (U.S.) INC.

                                       AND

                             NORMINE RESOURCES LTD.

                                OPTION AGREEMENT

BEA:ld

                                 LAWRENCE & SHAW

                           2800 . THREE BENTALL CENTRE

                      P.O. Box 49200 . 0941 BURRARD STREET
                             VANCOUVER. B.C. V7X ILI
                                 PHONE 689-9111

                             OPTION TO PURCHASE COPY

THIS AGREEMENT, made and entered into as of this 11th day of Nov., 1985 by and
between Paul O. filer, hereinafter referred to as "Grantor", and Joyce Mines,
Inc., hereinafter referred to as "Grantee".

                              W I T N E S S E T H :
                              - - - - - - - - - - -

        In consideration of the sum of Ten Dollars ($10.00) and other good and
valuable consideration paid by Grantee, the receipt of which is hereby
acknowledged by Grantor, and in further consideration of the covenants and
agreements herein set forth by the parties to be kept and performed, Grantor
does hereby let, demise and option to sell to Grantee and Grantee does hereby
option to purchase from Grantor for the purchses be herein specified, the real
property described in Exhibit "A" attached hereto and made a part hereof,
hereinafter called the "Mining properties", situated in the County of Idaho,
State of Idaho.

        TO HAVE AND TO HOLD the Mining Properties unto Grantee for a term of
sixteen (16) years from the date hereof and as long thereaf as development or
mining operations are conducted on the Mining properties or any portion thereof
as provided unless the total purchase price of $250,000 (U.S. funds) is paid
sooner by the aggregate of the payments specified in paragraph 2 hereof and
title assignment is made or the option is terminated as hereinafter provided.

        The Mining Properties are hereby optioned to Grantee for the purpose of
exploring and prospecting for, developing and mining, by methods deemed
desirable by Grantee, minerals of all kind, including coal, oil, gas, oil shale,
and other hydrocarbons together with the right to mine, extract, mill, process,
concentrate, refine or otherwise treat, take care of, remove, transport, own,
sell and dispose of such minerals from the Mining Properties and the right to
retain the proceeds therefrom for Grantee's own use, upon payment to Grantor of
the payments hereinafter stated.

        It is understood that the Grantor does not own the rights to the surface
areas overlying the Mining Properties.

        The granting of this option shall preclude Grantor from issuing other
leases of the Mining Properties for the mining or production of coal and/or oil,
gas, oil shale and other hydrocarbon

                                PAYMENT SCHEDULE

         Throughout the term of this option, Grantee shall make annual payments
in U.S. funds to Grantor, all of which shall apply to the total purchase price
of $250,000 according to the following schedule:

1. Two Thousand and No/100...................................Dollars ($2,000.00)
       By January 2, 1986

2. Five Thousand and No/100..................................Dollars ($5,000.00)
       On or before January 2, 1987

3. Ten Thousand and No/100..................................Dollars ($10,000.00)
       On or before Jan 2, 1988 for each succeeding
         year up to and including 1993

4. Twenty Thousand and No/100...............................Dollars ($20,000.00)
       On or before Jan. 2, 1994 for each succeeding
         year up to and including 2001.

5. Twenty-Three Thousand and No/100.........................Dollars ($23,000.00)
       On or before January 2, 2002

This option will be exercised and the purchase price paid in full after a total
payment of $250,000 has been made, or will be allowed to terminate if the above
payment schedule is not satisfied PROVIDED that the Grantee may exercise the
option on or before Jan. 2, 1988 by paying to the Grantor an amount equal to the
difference between the amount paid to the Grantor hereunder the date of such
exercise and $200,000 and upon payment of said amount, the purchase price shall
be deemed to have been paid in full. Upon receipt of said total purchase price,
Grantor shall execute and deliver a good and sufficient Deed of the Mining
Properties to Grantor and provide Grantee with all title documents pertinent to
the Mining Properties; including, but without limiting, patents, abstracts of
title or title certificates, survey notes, and such other title documents as
Grantee may have in his possession.

                          STATE AND FEDERAL ENACTMENTS

                           INDEMNIFICATION OF GRANTOR

        Grantee, in the operation and development of the Mining Properties shall
be subject to all applicable Federal enactments, laws of the State of Idaho, and
all Federal' and State rules and regu- lations regarding Employees' Liability
and Industrial Insurance, Workmen's Compensation and Workmen's Old Age and
Unemployment Insurance, and said Grantee covenants and agrees to indemnify and
hold harmless the Grantor from and against the payment of any and all damages,
claims, costs, and expenses in connection therewith under any claim of
subrogation provided for by said enactments or other wise; and the Grantee shall
further indemnify and hold harmless the Grantor from and against any and all
damages, claims, costs and expenses arising out of damage to property or any
injuries to or death of the employees of the Grantee, or any other person
whomso- ever (other than the Grantor, Grantee's employees, agent or repre-
sentatives) where such injury, death or damage occurs because of or in
connection with the use, operation or development in any manner of the Mining
Propert of the mining Properties, whether such claims are based upon a right
conferred by common law or by statute.

         Grantee shall specifically comply with all laws pertaining to
environmental protection of the area, and shall hold Grantor harm- less for any
non-compliance with said laws.

                        PROPERTY TO BE KEPT FREE OF LIENS

        Grantee shall pay and satisfy all claims for materials, supplies and
labor in connection with the working of the Mining Properties, and shall keep
the Mining Properties free of liens and encumbrances of any and every kind,
except such as may result from the acts of Grantor.

                              NON-LIABILITY NOTICES

        Grantor may record such notices as will inform whom it may concern that
the Mining Properties are operated under option, and that the Grantor shall not
be liable for any of the expenses or charges of operation.

                                      TAXES

        Grantee shall not be responsible for the payment of State and County
real property tax assessments upon the Mining Properties but shall pay all State
and County tax assessments upon any and all structures and other improvements,
machinery, equipment, tools, supplies and personal property whatsoever placed
upon the Mining Properties by the Grantee. Provided, however, in the event that
Grantor shall fail to pay within thirty (30) days of the date when due and
payable any State or County real property tax assessments, then Grantee shall
have the right to pay such tax and to deduct the amount of such payments from
amounts due Grantor hereunder.

                              WARRANTIES OF GRANTOR

        Grantor covenants and warrants that the Grantor owns 100% right, title
and interest in the Mining Properties and has not veyed or otherwise encumbered
any right in or to ores and minerals, including coal, oil, gas, oil shale and
other hydrocarbons situated in, upon or under the Mining Properties, except for
the surface title ownership as previously noted. Grantor further covenants and
warrants that there are no outstanding royalty obligations or other payment
obligations with relation to ores and minerals, including coal, oil, gas, oil
shale and other hydrocarbons situated in, upon or undero the Mining. Properties.
Grantor agrees that if examination of title reveals or discloses any matter
which adversely affects Grantor's title that Grantor, if requested by Grantee,
will promptly, and in any event within ninety (90) days of notice from Grantee
take such action as is necessary to clear such title defect at no additional
cost to the Grantee and if such title defe cannot be cleared, Grantee shall
either waive the clearance of the defect and accept title as is, or permit the
Grantor to termir this option by returning any monies paid to the Grantor
hereunder Grantor makes no warranties as to title or ownership of the Mining
Properties other than as specified in this section.

                         GRANTOR'S RIGHT TO INFORMATION

        Grantee agrees that Grantor or Grantor's authorized agents shall have
access to, and the right to copy any information from geological, drilling
sampling and other data relation to the Mining Properties, secured by and in
possession of Grantee in connection with its prospecting and development of said
Mining Properties. In the event of termination of this Option for any reason
whatsoever, the Grantee agrees to furnish Grantor with copies of all drilling
and sampling data, a map accurately showing the development work performed by
the Grantee upon the Mining Properties, and copies of any and all geological
maps relating to said Mining Properties prepared by Grantee.

  GRANTEE'S RIGHT TO SURRENDER
        It is mutually understood and agreed that Grantee may, at any time,
surrender and terminate this option, as to any part or all of the Mining
Properties upon giving sixty (60) days' notice in writing and complying with the
terms of the option with respect to the preservation and protection of workings
upon the Mining Properties.

                            FORFEITURE OR TERMINATION

        In the event Grantee shall fail to make any payment provided for within
the time provided or thirty (30) days thereaftet, Grantor may, at Grantor's
option. cancel this option and enter into possession of the Mining Properties,
after giving Grantee written notice that Grantee has sixty (60) days to rectify
the situation.

                              REMOVAL OF EQUIPMENT

        It is mutually understood and agreed that in case of forfeiture default,
surrender or other termination of this option, all buildings, underground
timbering supports, shaft linings and other fixtures necessary for the
preservation of any mines, and all rails and head frames upon or in the Mining
Properties shall be and remain a part of the realty and shall revert to the
Grantor without further consideration or compensation.

         It is further understood and agreed that all personal property of the
Grantee located on or within the Mining Properties, and all buildings,
machinery, equipment and tools (other than the fixtures to become the property
of the Grantor as above provided) shall be removed from the Mining Properties by
Grantee within one hundred eighty (180) days after the forfeiture or termination
of this option. All property remaining on the Mining Properties after such date
shall become the property of the Grantor.

                             MANNER OF GIVING NOTICE

        Any notice to be served upon the Grantor shall be in writing, and shall
be served if mailed in the United States Post Office, postage prepaid and
certified, addressed to the Grantor at: Box 376, Riggins, Idaho 83549 or such
other address as the Grantor may from time to time in writing designate.

        Any notice contemplated herein to be served upon Grantee shall be in
writing and shall be served if mailed in the United States Post Office, postage
prepaid and certified, addressed to the Grantee at: P.O. Box 1405, Hamilton,
Montana 59840 or such other address as the Grantee may from time to time in
writing designate.

                                    FORCE MAJEURE

        In the event Grantee is prevented from performing this option or from
conducting mining operations by labor strikes, fires, floods, explosions, riots,
any unusual mining casualties, acts of God, government restrictions or orders,
severe weather conditions, or other extraordinary. events beyond its control,
then the time for performance of this option by Grantee shall be suspended
during the continuance of such acts which prevent performance.

                              REQUIRED PERFORMANCE,
                              RECORDING AND FILING

         Grantee agrees and covenants to record or file any necessary affidavit,
proofs-of-labor, maps or other required documents with the proper office of any
jurisdiction requiring the same to maintain the status of the mining claims
which comprise the Mining Properties.

                                ASSIGNMENT: LEASE

        The rights hereunder may be assigned in whole or in part andthe
provisions hereof shall inure to the benefit of and be binding upon their
respective successors and assigns, but no assignment of obligations and no
change or divisions of ownership of the subject which properties or payments
hereunder, however accomplished, which shall operate to enlarge the obligations
or diminish the obligations of Grantee lessee shall be void unless the Grantee
shall give written notice of such assignment or lease, within thirty (30) days
of the date of execution of said assignment, or lease, to the Grantor setting
fort therein the names and mailing addresses of the assignees or lessee. No
assignment or lease by Grantee shall serve to release Grantee of obligations
hereunder. No such change or divisions in the ownership of the subject
properties shall be binding upon Grantee for any purpose until the first day of
the month next succeeding the month in which such person acquiring any interest
shall furnish Grantee a the address set forth previously with the instrument or
instruments or certified copies thereof, evidencing such change, transfer or
division of ownership.

        Subject to the foregoing paragraph limiting assignment, this Mining
Option shall be binding upon and inure to the benefit of the heirs, executors,
administrators and assigns of the respective parties.hereto.

        In the event of termination of the agreement for any reason whatsoever,
the Grantee agrees to furnish Grantor with copies of all drilling and sampling
data, a map accurately showing the development work performed by the Grantee
upon the Mining Properties, and copies of any and all geological maps relating
to said Mining Properties prepared by Grantee.

        This agreement, and all terms and provisions hereof, shall extend to and
be binding upon the parties hereto, their heirs, successors, assigns and legal
respresentatives, and shall attach to run with the lands described herein and
any option granted or acquired pursuant to the provisions hereof.

        IN WITNESS WHEREOF, the parties hereto have executed this instrument as
of the day and year first written.

                                     GRANTOR

                                                     BY:

                                                     BY:

                                    GRANTEE:

                                                     BY:

                                                     BY:
STATE OF                                 )
                              :  ss.
COUNTY OF                                )

        On this _____________ day of ______________________________ , 1985,
before, me. a Notary public for the State of _________ , personally appeared
known to me to Be the person whose name is subscribed to the within instrument
and acknowledged to me that he executed the same.

        IN-WITNESS WHEREOF. I have hereunto set my hand and affixed my Notarial
Seal the day and year first above written.

(SEAL)                        Notary Public or the State of Residing at My
                              Commission expires:

STATE OF                                 )
                              :  ss.
COUNTY OF                                )

        On this ________ day of __________________________________________ ,
1985, before, me. a Notary public for the State of _______________ , personally
appeared known to me to Be the person whose name is subscribed to the within
instrument and acknowledged to me that he executed the same.

        IN-WITNESS WHEREOF. I have hereunto set my hand and affixed my Notarial
Seal the day and year first above written.

(SEAL)                        Notary Public or the State of Residing at My
                              Commission expires:

STATE OF                                 )
                              :  ss.
COUNTY OF                                )

        On this ______ day of _________________________________ , 1985, before,
me. a Notary public for the State of _____________ , personally appeared known
to me to Be the person whose name is subscribed to the within instrument and
acknowledged to me that he executed the same.

        IN-WITNESS WHEREOF. I have hereunto set my hand and affixed my Notarial
Seal the day and year first above written.

(SEAL)                        Notary Public or the State of Residing at My
                              Commission expires:

                                                        SCHEDULE "A"

                                    PROPERTY

Schedule "A" to the agreement dated July 4, 1984 between Paul O. Filer and
Centennial Minerals Inc.

The Patented Mineral Claims defined under Mineral Survey 2335, situated in the
County of Idaho, State of Idaho:

         CLAIM NAME:

         Key West Lode                             26.19 Acres

         Western Star No. 1 Lode                   26.59 Acres

         Western Star No. 2 Lode                   24.22 Acres

(ATTACHMENT:  MAP OF CLAIM GROUP)

326138

                                                              OPTION TO PURCHASE

        THIS AGREEMENT, made and entered into as of this 1st day of April, 1986
by and between Harold C. Lynch and June M. Lynch hereinafter referred to as
"Grantor", and Joyce Mines, Inc. hereinafter referred to as "Grantee".

                              W I T N E S S E T H

        In consideration of the sum of Ten Dollars ($10.00) and other good and
valuable consideration paid by Grantee, the receipt of which is hereby
acknowledged by Grantor, and in further consideration of the royalties,
covenants, and agreement herein set forth by the parties to be paid, kept and
performed, Grantor does hereby let, demise and option to sell to Grantee and
Grantee does hereby option to purchase from Grantor for the purchases herein
specified, the real property described in Exhibit "A" attached hereto and made a
part hereof, hereinafter called the "Mining Properties", situated in the County
of Idaho , State of Idaho.

        TO HAVE AND TO HOLD the Mining Properties unto Grantee for a term of ten
(10) years from the date hereof and as long thereafter as development or mining
operations are conducted on the Mining Properties or any portion thereof as
provided unless the total option price is paid sooner by payment of Dollars ($
500,000.00 ) by guaranteed royalties, production royalties and third party
royalties, and title assignment is made or the option is terminated as
hereinafter provided.

        The Mining Properties are hereby optioned to Grantee for the purpose. of
exploring and prospecting for, developing and mining, by methods deemed '? . it
le by Grantee, minerals of all kinds, including coal, oil, gas shale, and other
hydrocarbons together with the right to mine, extract, mill, process,
concentrate, refine or otherwise treat, take care of, remove, transport, own,
sell and dispose of such minerals from the Mining Properties and the right to,
retain the proceeds therefrom for Grantee's own use, upon payment to Grantor of
the royalties and payments hereinafter stated, Grantor grants to Grantee the
right to use so much of the surface and sub surface of the subject premises as
may be reasonably necessary in carrying out the purposes of this option, in
accordance with the mining methods adopted by Grantee, with the right to
construct, use, maintain, repair, replace and relocate on the Mining Properties
buildings, shops, facilities and structures of whatever nature necessary, roads,
ore bins, shafts, inclines, tunnels, drifts, open pits, waste dumps, ore
stockpiles, pipelines, telephone lines, elec- tric transmission lines and
transportation facilities and other utilities, and the maintenance thereof,
together with such rights which are reasonably necessary for the purpose of
exercising the privileges and rights covered by this grant.

         Provided, however, Grantor within thirty (30) days of date of this
option will specify, to Grantee certain buildings and mining equipment having
historical and/of artistic value to Grantor and Grantor shall remove such
specified items within three (3) months of the date of this option.

         Grantee shall have and is hereby granted the immediate and free and
uninterrupted right to enter in and upon the Mining Properties, or any part
thereof, and to make such test drills or other inspec tions and to conduct such
other exploration and development activities as Grantee shall desire to make,
without liability for damages by reason thereof, to the Mining Properties, or
anything thereon.

         Although Grantee shall have and is hereby granted, to the extent
permitted by Idaho law, the free use of water from the Mining Properties and
water rights related or appurtenant thereto, it is agreed and stipulated that
the grant of such rights is made by Grantor without warranty of title and is
subject to any existing water right of. and agreements with, other water users
relating thereto.

         The granting of this option shall preclude Grantor from issuing other
leases of the mining Properties for the mining or production of coal and/or oil,
gas, oil shale and other hydrocarbons.

                                    ROYALTIES

        A. Guaranteed Royalty. "Guaranteed royalty", as used herein, means the
minimum amount of option price payment to be paid by Grantee to Grantor, on a
date or on the dates specified herein, to guarantee specific annual payments to
Grantor. Guaranteed royalty shall by payable in the specified amount where no
production royalty has accrued during the calendar year. Where production
royalty during the calendar year does not equal the guaranteed royalty
requirement, then the balance of the guaranteed royalty shall be payable. When
the production royalty during the year exceeds the guaranteed royalty, the
excess production royalty shall be credited against future guaranteed royalties.
The calendar year shall run from April 1st , 1986 to March 31st , 1987, and each
year thereafter.

         Throughout the term of this option, Grantee shall pay annual guaranteed
royalties to Grantor in quarterly payments as:

        1. Six Thousand Dollars ($6000.00) during the first year of this option
term (4-1-1986 through 3-31-1967).

         2. Twelve Thousand Dollars ($ 12,000.00) during the 2nd year of the
option term ( April 1 , 1987 through March 31st, 1988.

         3. Eighteen Thousand Dollars ($ 18,000.00) during the third through
tenth years of the option term and each year thereafter for the remainder of
this option or until the total of all payments equals the purchase price of Five
Hundred Thousand Dollars ($ 500,000.00)

Time is of the essence, and a special option price of Three Hundred Thousand
Dollars ($ 300,000.00) shall be accepted as full payment for the Mining
Properties if this amount is paid within Thirty (30) months from the starting
date of the Option to Purchase.

         B. Production Royalty. "Net Return From Sales," as in, means the amount
of earned revenue in accordance with accepted accounting principles, payable to
Grantee by any smelter or other purchaser of concentrates, ores, minerals,
metals or byproducts mined or produced from the Mining Properties, less all
penalties, assaying, sampling, transportation and smelting changes. In event
such ores, minerals or metals are treated or smelted by or for Grantee, the
terms "Net Return From Sales" shall mean the amount of earned revenue which
would have been paid to Grantee by a bonafide purchaser of said ores, minerals
or metals, less all penalties, assaying, sampling, transportation and smelting
charges, including crushing, heap or vat leaching, and refining, if done by
Grantee.

        1. GOLD BULLION. In the event Grantee produces gold bullion from ores
and minerals mined from the Mining Properties, Grantee shall pay Grantor a
production royalty of three percent (3%) of the Net Return From Sales. If
Grantee does not sell part or all of said bullion so produced, and holds and
retains it at the close of a calendar year, Grantee shall pay Grantor a
production royalty of three percent (3Y.) of the average monthly price as
established by the London Gold market on the month of production of said
bullion. In the event Grantee produces any of said gold bullion, it shall
advise Grantor of such production within seven (7) days following the close of
the month within which said production occurred whether said bullion is to be
sold or retained by Grantee. Grantor shall have the option of taking any
production royalty based upon said production in kind, in the form of gold
bullion. The value of the bullion taken shall be credited to the guaranteed
royalty and applied towards the option price. "Gold bullion", as used herein,
means any gold concentrate having a pure gold content in excess of ten percent
(107.).

         2. Concentrates, Ores, Minerals, Metals and Bv-Products and Third Partv
Ores Milled. Grantee shall pay Grantor on all concen- trates, ores, minerals,
metals and by-products other than gold bullion mined and removed from the Mining
Properties and sold by Grantee or further processed and marketed by Grantee a
production royalty based upon the value for said concentrates, ores, minerals,
metals and by-products, in the sum of money equal to three percent (3'/.) of the
Net Return From Sales.

        The aforesaid production royalty payments and payments for third party
ores milled or otherwise processed on the Mining Properties to Grantor shall be
made on or before the 30th day of April, July, October and January of each year.
Each payment shall be accompanied by a settlement sheet showing production and
credits for advance royalties, if any.

        3. After the Grantor has received Five Hundred Thousand Dollars
($500,000.00) in Guaranteed Royalties, Production Royalties and payments for the
third party ores milled or otherwise processed on the Mining Properties, then
the option is completely exercised and the property is completely paid for. The
escrowed recordable assignment of all interest and title to all properties,
described as Exhibit "A" of this option, shall be delivered by the Grantor to
the Grantee within thirty (30) days of notice of final payment.

                                 WORK COMMITMENT

         For timely development of the Mining Property, the Grantee agrees to
perform a minimum of $50,000.00 of work per year for each of the first two years
this agreement is in force.

                       GRANTOR'S RIGHT OF INSPECTION

        Grantee shall allow Grantor and Grantor's agents, from time to time, to
enter upon and unto all parts of said Mining Properties, for purposes of
inspection at such reasonable times as shall not interfere with the regular
operation of the Mining Properties.

                            ORE NOT TO BE CO-MINGLED

         Grantor shall not mix any ore from the mining Properties with ore
derived from any other property, prior to payment of royalties thereon. To this
effect, ore removed from the Mining Properties shall be stockpiled separately
from ore removed from adjoining properties.

                          STATE AND FEDERAL ENACTMENTS
                          INDEMNIFICATION OF GRANTOR.

         Grantee, in the operation and development of the Mining Prop erties
shall be subject to all applicable Federal enactments, laws of the State of
Idaho , and all Federal and State rules and regu lations regarding Employees'
Liability and Industrial Insurance, Workmen's Compensation and Workmen's Old Age
and Unemployment In surance, and said Grantee covenants and agrees to indemnify
and hold harmless the Grantor from and against the payment of any and all
damages, claims, costs and expenses in connection therewith under any claim of
subrogation provided for by said enactments or otherwise; and the Grantee shall
further indemnify and hold harmless the Grantor from and against any and all
damages, claims, costs and expenses arising out of damage to property or any
injuries to or death of the employees of the Grantee, or any other person whomso
ever (other than the Grantor, Grantee's employees, agent or repre sentatives)
where such injury, death or damage occurs because of or in connection with the
use, operation or development in any manner of the Mining Properties, whether
such claims are based upon a right conferred by the common law or by statute.

         Grantee shall specifically comply with all laws pertaining to
environmental protection of the area, and shall hold Grantor harm less for any
non-compliance with said laws.

                        PROPERTY TO BE KEPT FREE OF LIENS

         Grantee shall pay and satisfy all claims for materials, supplies and
labor in connection with the working of the Mining Propercies, and shall keep
the Mining Properties free of liens and en cumbrances of any and every kind,
except such as may result from the acts of Grantor.

                              NON-LIABILITY NOTICES

        Grantor may record such notices as will inform whom it may concern that
the Mining Properties are operated under option, and that the Grantor shall not
be liable for any of the expenses or charges of. operation.

                                       TAXES

        Grantee shall not be responsible for the payment of State and County
real property tax assessments upon the Mining Properties but shall pay all State
and County tax assessments upon any and all structures and other improvements,
machinery, equipment, tools, supplies and personal property whatsoever placed
upon the Mining Properties by the Grantee. Provided, however, in the event that
Grantor shall fail to pay within thirty (30) days of the date when. due and
payable any State or County real property tax assessments, then Grantee shall
have the right to pay such tax and to deduct the amount of such payments from
amounts due Grantor hereunder.

        Net proceeds of mine taxes and other similar taxes shall be paid by
Grantee and Grantor in accordance with their respective shares of the selling
price of the ore, unless the statute under which the tax is levied provides for
a different manner of assessment.

                           WARRANTIES OF GRANTOR

         Grantor covenants and warrants that the Grantor has not conveyed or
otherwise encumbered any right in or to ores and minerals, including coal, oil,
gas, oil shale and other hydrocarbons situated in, upon or under the Minirg
Properties. Grantor further covenants and warrants that there are no outstanding
royalty obligations or other payment obligations with relation to ores and
minerals, including coal, oil, gas, oil shale and other hydrocarbons situated
in, upon or under. the Mining Properties. As to the unpatented mining claims
embraced within the Mining Properties, Grantor represents that it is the owner
of such claims subject to the paramount interest of the United States of
America; that the same have been validly located and are in good standing under
the laws of the State of and the United States of America; that each of such
claims have been validly located, reduced and assessment work is current and
properly recorded. Grantor agrees that if examination of title reveals or
discloses any matter which adversely affects Grantor's title that Grantor will
promptly, and in any event within ninety (90) days of notice from Grantee to
take such action as is necessary to clear such title defect at no additional
cost to the Grantee, Grantor makes no warranties as to title or ownership of the
Mining Properties other than as specified in this Section

                         GRANTOR'S RIGHT TO INFORMATION

         Grantee agrees that Grantor or Grantor's authorized agents shall have
access to, and the right to copy any information from geological, drilling
sampling and other data relation to the Mining Properties, secured by and in
possession of Grantee in connection with its prospecting and development of said
Mining Properties. In the event of termination of this Op-ion for any reason
whatsoever, the Grantee agrees to furnish Grantor with copies of all drilling
and sampling data, a map accurately showing the development work performed by
the Grantee upon the Mining Properties, and copies of any and all geological
maps relating to said Mining Properties prepared by Grantee.

                          GRANTEE'S RIGHT TO SURRENDER

         It is mutually understood and agreed that Grantee may, at any time,
surrender and terminate this option, as to any part of all of the Mining
Properties upon giving sixty (u0) days notice in writing, paying to Grantor all
royalties and other sums due and payable to Grantor to the effective date of
such surrender, and complying with the terms of the option with respect to the
preservation and protection of workings upon the Mining Properties.

                            FORFEITURE OR TERMINATION

         In the event Grantee shall fail to make any payment provided for within
the time provided or thirty (30) days thereafter, or in the event Grantee shall
default in the performance of any other covenant hereof on its part to be kept
and performed and shall not have corrected or commended action to correct such
default within thirty (30) days after written notice of such default from
Grantor, then and in either of said events, Grantor may, at Grantor's option,
cancel this option and enter into possession of the Mining Properties.

                                REM0VAL OF EQUIPMENT

         It is mutually understood and agreed that in case of forfeiture,
default, surrender or other termination of this option, all buildings,
underground timbering supports, shat linings and other fixtures necessary for
the preservation of any mines, and all rails and head frames upon or in the
Mining Properties-shall be and remain a part of the realty and shall revert co
the Grantor without further consideration or compensation.

         It is further understood and agreed that all personal property of the
Grantee located on or within the Mining Properties, and all buildings,
machinery, equipment and tools (other than the fixtures to become the property
of the Grantor as above provided) shall be removed from the Mining Properties by
Grantee within one hundred eighty (180) days after the forfeiture or termination
of this option. All property remaining on the ;fining Properties after such date
shall become the property of the Grantor.

                             MANNER OF GIVING NOTICE

         Any notice to be served upon the Grantor shall be in writing. and shall
be served if mailed in the United States Post Office, postage prepaid and
certiiied, addressed to the Grantor at: 3855 Lakeview Drive:, Lewiston, Idaho
83501, or such other address as the Grantor may from time to time in writing
designate. Any notice contemplated herein to be served upon Grantee shall be in
writing and shall be served if mailed in the United States Post Office, postage
prepaid and certified, addressed to the Grantee at: Post Office Box 1405,
Hamilton, Montana 59840 or such other address as the Grantee may from time to
time in writing designate.

                                  FORCE MAJEURE

         In the event Grantee is prevented from performing this option or from
conducting mining operations by labor strikes, fires, floods, explosions, riots,
any unusual mining casualties, acts of God, government restrictions or orders,
severe weather conditions, or other extraordinary events beyond its control,
then the time for performance of this option by Grantee shall be suspended
during the continuance of such acts which prevent performance.

                              REQUIRED PERFORMANCE,

                              RECORDING AND FILING

         Grantee agrees that, during the life of this option, Grantee will, for
each assessment year beginning with the assessment year which ends September 1,
1984, perform, upon or for the benefit of all unpatented mining claims which are
then subject to the terms of this option, assessment work of a character and
value reasonably ' expected to satisfy the requirements of the mining laws of
the United States and of the State of However, Grantee shall not be required to
perform assessment work upon or for the benefit of any claims in relation to
which this option shall be terminated or surrendered if such termination or
surrender occurs prior to June 1st of such assessment year. Grantee further
agrees and covenants to record or file any necessary affidavit, proofs-of-labor,
maps or other required documents with the proper office of any jurisdiction
requiring the same to maintain the status of the mining claims which comprise
the Mining Properties, All work so performed and documents recorded or filed by
Grantee shall be made in the name of, and for the benefit of, the Grantor.

                                  ASSIGNMENT; LEASE

         The rights of either party hereunder may be assigned in whole or in
part and the provisions hereof shall inure t4 the benefit of and be binding upon
their respective successors and assigns, but no assignment of obligations and no
change or divisions of ownership of the subject properties or payments
hereunder, however accomplished, shall operate to enlarge the obligations or
diminish the obligations of Grantee or lessee shall be void unless the Grantee
shall give written notice of such assignment or lease within thirty (30) days of
the date of execution of said assignment, or lease, to the Grantor setting forth
therein the names and mailing addresses of the assignees or lessee. No
assignment or lease by Grantee shall serve to release Grantee of obligations
hereunder. No such change or divisions in the ownership of the subject
properties shall be binding upon Grantee for any purpose until the first day of
the month next succeeding the month in which such person acquiring any interest
shall furnish Grantee at the address set forth previously with the instrument or
instruments, or certified copies thereof, evidencing such change, transfer or
division of ownership.

         Subject to the foregoing paragraph limiting assignment, this Mining
Option shall be binding upon and inure to the benefit of the heirs, executors,
administrators and assigns of the respective parties hereto.

         In the event of termination of the agreement for any reason whatsoever,
the Grantee agrees to furnish Grantor with copies of all drilling and sampling
data, a map accurately showing the devel opment work performed by the Grantee
upon the Mining Properties, and copies'of any and all geological maps relating
to said Mining Properties prepared by Grantee.

         This agreement, and all terms and provisions hereof, shall extend to
and be binding upon the parties hereto, their heirs, successors, assigns and
legal representatives, and shall attach to run with the lands described herein
and any option granted or acquired pursuant to the provisions hereof.

         IN WITNESS WHEREOF, the parties hereto have executed this instrument as
of the day and year first above written.

                                            GRANTOR:

                                            By:

                                            By:

                                            GRANTEE:

                                            By:

                                            By:

                                   EXHIBIT "A"
                                MINING PROPERTY

CLAIM NAME                           BLM NUMBER

GRAND ORE                            IMC 42394
GRAND ORE FRACTION                   IMC 42395
OROGRANDE                            IMC 42396
OROGRANDE NO. 1                      IMC 42397
OROGRANDE NO.2                       IMC 42398
OROGRANDE NO.3                       IMC 42399
GOLD VALLEY PLACER                   IMC 42400

STATE OF                               )
                                     ss.

COUNTY OF                              )

         On this __________ day of _______________________________ , 1983,
before me, a Notary Public for the State of , personally appeared known to me to
be the person whose name is subscribed to the within instrument and acknowledged
to me that executed the same.

        IN WITNESS WHEREOF, I have hereunto set my hand and affixed my Notarial
Seal the day and year first above written.

(SEAL)                                      Notary Public for the State of
                                            Residing at My Commission expires:

STATE OF                               )

                                     ss.

COUNTY OF                              )

         On this ________ day of _________________________________ , 1983,
before me, a Notary Public for the State of , personally appeared known to me to
be the person whose name is subscribed to the within instrument and acknowledged
to me that executed the same.

        IN WITNESS WHEREOF, I have hereunto set my hand and affixed my Notarial
Seal the day and year first above written.

(SEAL)                                      Notary Public for the State of
                                            Residing at
                                            My Commission expires:

STATE OF                               )
                                        ss.
COUNTY OF                              )

         On this _____ day of _____________________________________ , 1983,
before me, a Notary Public for the State of , personally appeared known to me to
be the person whose name is subscribed to the within instrument and acknowledged
to me that executed the same.

        IN WITNESS WHEREOF, I have hereunto set my hand and affixed my Notarial
Seal the day and year first above written.

(SEAL)                                      Notary Public for the State of
                                            Residing at
                                            My Commission expires:

                                    EXHIBIT D

                                       TO

                                 FIRST AMENDMENT

                                       TO

                               OROGRANDE/DEADWOOD

                                OPTION AGREEMENT

                                 DEEDS IN ESCROW
Recording requested
by and mail to:

Arctic Fox Ltd.
669 Gray Fox Lane

Corvallis, Montana 59828

                                                                     EXHIBIT D-1
                                       TO

                    FIRST AMENDMENT TO OPTION AGREEMENT AMONG

                                ARCTIC FOX LTD.,
         IDAHO CONSOLIDATED METALS CORPORATION, IDAHO GOLD CORPORATION,

                                       AND

                       CYPRUS GOLD EXPLORATION CORPORATION

                                 OPTIONEES DEED

                                 QUITCLAIM DEED

                           OROGRANDE/DEADWOOD PROPERTY

THIS QUITCLAIM DEED, dated this day of September, 1997, is between IDAHO
CONSOLIDATED METALS CORPORATION, a British Columbia corporation, whose address
is 504 Main, Suite 470, Lewiston, Idaho 83501 ("ICMC"), IDAHO GOLD CORPORATION,
a Nevada corporation, whose address is in care of Bema Gold Corporation,
1400-510 Burrard Street, Vancouver, B.C. V6C 3A8 ("IGC") and CYPRUS GOLD
EXPLORATION CORPORATION, whose address is 9100 East Mineral Circle, Englewood,
Colorado 80112 ("Cyprus") (ICMC, IGC and Cyprus hereinafter referred to
collectively as "GRANTOR") and ARCTIC FOX LTD., a Delaware corporation, with an
office at 669 Gray Fox Lane, Corvallis, Montana 59828 (hereinafter referred to
as "GRANTEE"):

                                   WITNESSETH:

         GRANTOR, for and in consideration of the sum of Ten Dollars ($10.00)
and other good and valuable consideration, to it in hand paid by the GRANTEE,
the receipt and sufficiency of which is hereby acknowledged, does hereby remise,
release and quitclaim unto GRANTEE, its successors and assigns forever, all of
its right, title and interest in and to certain unpatented lode mining claims
situated in Idaho County, Idaho, as more particularly described in Exhibit A
attached hereto and by this reference made a part hereof, and agreements
concerning such unpatented lode mining claims.

         TOGETHER with all the dips, spurs and angles, and also all minerals,
metals, ores, rock and earth therein; and all the rights, privileges and
franchises thereto incident, appendant and appurtenant; and also all and
singular the tenements, hereditaments and appurtenances thereunto belonging, or
in anywise appertaining, and the reversion and reversions, remainder and
remainders, rents, issues and profits thereof.

         TO HAVE AND TO HOLD all of the right, title and interest of said
GRANTOR in and to said premises, together with the appurtenances, unto the said
GRANTEE, its successors and assigns forever.

         IN WITNESS WHEREOF, the GRANTOR has hereunto set its hand the day and
year first above-written.

IDAHO CONSOLIDATED METALS  IDAHO GOLD CORPORATION
CORPORATION

By:                                                  By:
Name:                                                Name:
Title:                                               Title:

CYPRUS GOLD EXPLORATION
CORPORATION

By:
Name:
Title:

STATE OF

COUNTY OF

         The foregoing instrument was acknowledged before me this
_________________________ day of __________________ 1997 by the
___________________________ of Idaho Consolidated Metals Corporation, a British
Columbia corporation, on behalf of said corporation.

                                  Notary Public
                                  My commission expires:

STATE OF                         STATE OF               )
                          ) ss.
COUNTY OF                        COUNTY OF              )

         The foregoing instrument was acknowledged before me this
__________________________ day of ______________________ 1997 by
_____________________ the ______________________ of Idaho Gold Corporation, a
Nevada corporation, on behalf of said corporation.

                                  Notary Public

                                  My commission expires:

STATE OF                                  STATE OF                            )
                              ) ss.
COUNTY OF                                 COUNTY OF                           )

         The foregoing instrument was acknowledged before me this
_________________________________ day of _________________________________ 1997
by ____________________________ the _____________________________________ of
Idaho Gold Corporation, a Nevada corporation, on behalf of said corporation.

                                  Notary Public
                                  My commission expires:

                                    EXHIBIT A

                                       TO

                                 QUITCLAIM DEED

                           OROGRAND/DEADWOOD PROPERTY

Unpatented lode mining claims situated in Idaho County, Idaho

Claim Name               BLM Number

CNTL #3                    100373

CNTL #4                    100374

CNTL #5                    100375

CNTL #6                    100376

CNTL #7                    100377

CNTL #8                    100378

CNTL #9                    100379

RL 9A                      105324

RL 10                      105325

RL 11                      105326

RL 11A                     105327

RL 22                      105338

RL 24                      105340

RL 25                      105341

RL 26                      105342

RL 27                      105343

RL 28                      105344

RL 28A                     105345

RL 29                      105346

RL 30                      105347

RL 30A                     105348

RL 31                      105349

Recording requested by and mail to:

Cyprus Gold Exploration Corporation
9100 East Mineral Circle
Englewood, Colorado 80112

                                                                     EXHIBIT D-2
                                       TO

                    FIRST AMENDMENT TO OPTION AGREEMENT AMONG

ARCTIC FOX LTD., IDAHO CONSOLIDATED METALS CORPORATION, IDAHO GOLD CORPORATION,

                                       AND

                       CYPRUS GOLD EXPLORATION CORPORATION

                                  OWNER'S DEED

                                 QUITCLAIM DEED

                           OROGRANDE/DEADWOOD PROPERTY

THIS QUITCLAIM DEED, dated this day of September, 1997, is between ARCTIC FOX
LTD., a Delaware corporation, with an office at 669 Gray Fox Lane, Corvallis,
Montana 59828 (hereinafter referred to as "GRANTOR") and IDAHO CONSOLIDATED
METALS CORPORATION, a British Columbia corporation, whose address is 504 Main,
Suite 470, Lewiston, Idaho 83501 ("ICMC"), IDAHO GOLD CORPORATION, a Nevada
corporation, whose address is in care of Bema Gold Corporation, 1400-510 Burrard
Street, Vancouver, B.C. V6C 3A8 ("IGC") and CYPRUS GOLD EXPLORATION CORPORATION,
whose address is 9100 East Mineral Circle, Englewood, Colorado 80112 ("Cyprus")
(ICMC, IGC and Cyprus hereinafter referred to collectively as "GRANTEE"):

                                   WITNESSETH:

         GRANTOR, for and in consideration of the sum of Ten Dollars ($10.00)
and other good and valuable consideration, to it in hand paid by the GRANTEE,
the receipt and sufficiency of which is hereby acknowledged, does hereby remise,
release and quitclaim unto GRANTEE, its successors and assigns forever, all of
its right, title and interest in and to certain unpatented lode mining claims
situated in Idaho County, Idaho, as more particularly described in Exhibit A
attached hereto and by this reference made a part hereof, and agreements
concerning such unpatented lode mining claims.

         TOGETHER with all the dips, spurs and angles, and also all minerals,
metals, ores, rock and earth therein; and all the rights, privileges and
franchises thereto incident, appendant and appurtenant; and also all and
singular the tenements, hereditaments and appurtenances thereunto belonging, or
in anywise appertaining, and the reversion and reversions, remainder and
remainders, rents, issues and profits thereof.

         TO HAVE AND TO HOLD all of the right, title and interest of said
GRANTOR in and to said premises, together with the appurtenances, unto the said
GRANTEE, its successors and assigns forever.

         IN WITNESS WHEREOF, the GRANTOR has hereunto set its hand the day and
year first above-written.

                                           ARCTIC FOX LTD.

                                           By::
                                           Name:
                                           Title:

STATE OF                     STATE OF             )

                              ss.

COUNTY OF                    COUNTY OF            )

         The foregoing instrument was acknowledged before me this
__________________________________________ day of __________________________
1997 by __________________________ the __________________________________ of
Arctic Fox Ltd., a Delaware corporation, on behalf of said corporation.

                                  Notary Public

                                  My commission expires:

                                    EXHIBIT A

                                       TO

                                 QUITCLAIM DEED

                           OROGRAND/deadwood property

         Unpatented lode mining claims situated in Idaho County, Idaho

Claim Name                 BLM Number

CNTL #3                    100373

CNTL #4                    100374

CNTL #5                    100375

CNTL #6                    100376

CNTL #7                    100377

CNTL #8                    100378

CNTL #9                    100379

RL 9A                      105324

RL 10                      105325

RL 11                      105326

RL 11A                     105327

RL 22                      105338

RL 24                      105340

RL 25                      105341

RL 26                      105342

RL 27                      105343

RL 28                      105344

RL 28A                     105345

RL 29                      105346

RL 30                      105347

RL 30A                     105348

RL 31                      105349EXHIBIT 10.13
                                    AGREEMENT
                                     BETWEEN
                             IDAHO GOLD CORPORATION
                                       AND
                         IDAHO CONSOLIDATED METALS CORP.
                          (THE BUFFALO GULCH PROPERTY)

         THIS AGREEMENT, dated this 9th day of July 1996 ("Effective Date"), is
between IDAHO GOLD CORPORATION, a Nevada corporation, (hereinafter referred to
as "OWNER") and IDAHO CONSOLIDATED METALS CORP., an Idaho corporation,
(hereinafter referred to as "ICMC"). OWNER and ICMC are each hereinafter
sometimes referred to individually as "Party" and collectively as "Parties".

                                    RECITALS

         OWNER controls certain unpatented mining claims located in Idaho
County, State of Idaho through its interest in the May 21, 1984 agreement
between Thunderbird Resources, Inc. and Amir Mines (U.S.) Inc. (the "Thunderbird
Agreement"). The Thunderbird Agreement and the mining claims are more
particularly described in Exhibit A hereto (hereinafter collectively called the
"Property").

         OWNER is desirous of transferring the Property to ICMC for the purpose
of ICMC Exploring, Developing and Mining the same.

         ICMC is desirous of acquiring the Property for such purposes.

         In consideration of One Hundred and Twenty Thousand (120,000) shares of
common stock of ICMC (the ICMC "Stock") paid or to be paid by ICMC to OWNER, the
receipt and sufficiency of which are hereby acknowledged and in consideration of
the mutual covenants and agreements of the Parties herein contained, OWNER and
ICMC agree as follows:

                             ARTICLE I DEFINITIONS

      For purposes of this Agreement certain terms and provisions used herein
are defined as follows:
                                      -1-
<PAGE>
         1.01 "Affiliate" means, with respect to any Party, any person,
partnership, joint venture, corporation or other form of enterprise which
directly or indirectly Controls, is Controlled by, or is under common Control
with a Party.

         1.02 "Agreement" means this Agreement, as it may be amended, together
with Exhibits A - Property and B - Royalty.

         1.03 "Anniversary Date" shall mean the day and month indicated in the
first paragraph of this Agreement occurring in each year subsequent to the
Effective Date of this Agreement, so long as this Agreement shall continue in
force and effect.

         1.04 "Commencement of Commercial Production" means the first day
following the first period of ninety (90) consecutive days during which Products
are produced from the Property at an average rate equal to at least fifty
percent (50%) of the design capacity of the production facilities established
for producing Products from the Property.

         1.05 "Control" means possession, directly or indirectly, of the power
to direct or cause direction of management and policies through ownership of
voting securities, contracts, voting trusts, or otherwise. Grammatical
variations of "Control" have a like meaning.

         1.06 "Development" means all preparation for the removal of Ore for the
commercial recovery of Products from such Ore, including surveying, development
drilling and geological, geochemical and engineering analysis thereof, sampling,
prestripping and stripping, the construction or installation of a mill or any
other improvements to be used for the Mining, handling, milling, processing or
other beneficiation of Products. The active pursuit of obtaining any federal,
state or local authorization or permit related to any of the foregoing
activities included in this definition shall also be considered to be an act of
Development. Grammatical variations of "Development" have a like meaning.

         1.07 "Exploration" means all activities directed toward ascertaining
the existence, location, quantity or quality of a

                                      -2-
<PAGE>
commercial deposit of Ore on, in or under the Property, which activities are
conducted prior to the commencement of Development of such deposit. Such
activities include but are not limited to investigating, prospecting, surveying,
sampling and drilling. The active pursuit of obtaining any federal, state or
local authorization or permit related to any of the foregoing activities
included in this definition shall also be considered to be an act of
Exploration. Grammatical variations of "Exploration" have a like meaning.

         1.08 "ICMC Stock" means One Hundred and Twenty Thousand (120,000)
shares of the common shares of ICMC which are free and clear of any assessments
but which are subject to a one (1) year trading restriction, which restriction
shall commence as of the Effective Date of this Agreement. In addition, Sixty
Thousand (60,000) shares shall be issued to OWNER on execution of this Agreement
and the remaining Sixty Thousand (60,000) shares shall be issued to OWNER one
(1) year from the Effective Date.

         1.09 "IGC Data" means that information and data described in Section
2.02 in This Agreement.

         1.10 "Mining" means the extraction of Ore and associated waste rock
from the Property. Grammatical variations of "Mining" have a like meaning.

         1.11 "Ore" means any and all metallic and non-metallic minerals of
every kind (excluding only oil, gas, casinghead gas and associated liquid and
gaseous hydrocarbon substances), including, without limitation, deposits,
concentrates and solutions containing such minerals in all forms in which such
minerals may be found, extracted or produced, as well as any by-products
thereof.

         1.12 "OWNER" includes any subsidiary, parent company, subsidiary of
parent company, division or Affiliate of OWNER (as the term "OWNER" is used
above).

         1.13 "Production Rovalty" means the payments provided for in Section
4.01.
                                      -3-
<PAGE>
         1.14 "Products" means all commercial minerals produced from the Ore
mined from the Property.

         1.15 "Property" means all right, title and interest of OWNER, as such
right, title and interest are represented and warranted in the Thunderbird
Agreement, in and to the surface estate and the mineral estate (specifically
including any and all subsurface rights) of the lands described in Exhibit A,
attached hereto and by this reference made a part hereof.

         1.16 "The Thunderbird Agreement" means that certain agreement dated May
21, 1984 between Thunderbird Resources, Inc. and Amir Mins (U.S.) Inc. and any
underlying agreements thereto.

                                   ARTICLE II

                               GRANT OF AGREEMENT

         2.01 Transfer of the Property. Subject to the terms and conditions
contained in this Agreement and in the Thunderbird Agreement, OWNER hereby
transfers exclusively unto ICMC, its successors and assigns, the Property. The
rights transferred to ICMC by OWNER include all of OWNER's rights and privileges
(including but not limited to easements, rights-of-way, licenses, options and
contracts, plans of operation, environmental permits and licenses, but not
including forms of security for closure and reclamation), whether now owned or
hereafter acquired, that are appurtenant to the Property. The Property is
transferred to ICMC for the purpose of Exploring, Developing, mining, producing,
processing, consuming, transporting and marketing all grades and types of Ore
and their constituent Products and all other substances associated or commingled
therewith, by any method or methods deemed desirable by ICMC, whether the same
is now or hereafter becomes known to ICMC.

         2.02 OWNER's Information and Data. Upon execution of this Agreement,
OWNER shall deliver to ICMC all records, data and information in its possession
or reasonably available to it relating to title in the Property, and all maps,
surveys, technical
                                      -4-
<PAGE>
reports, core and drill cuttings, drill logs, and all metallurgical, geological,
geophysical, geochemical and other technical data pertaining to the Property in
its possession or reasonably available to it (the IGC Data"). OWNER MAKES NO
REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, AS TO THE COMPLETENESS OR
ACCURACY OF ANY INFORMATION OR DATA MADE AVAILABLE TO ICMC HEREUNDER OR TO THE
FITNESS OR SUITABILITY OF SUCH INFORMATION OR DATA FOR ANY PURPOSE.

         2.03 Maintenance of Thunderbird Agreement. ICMC shall, as of July 9,
1996 and during the term of OWNER's Option provided for in Section 14.01,
assume, observe and perform each and every covenant and agreement made or given
by OWNER or its predecessor in title to be observed and performed under the
Thunderbird Agreement, specifically including the making of all cash and share
payments and the performance of all work commitments on the Property. ICMC may,
however, attempt to re-negotiate the Thunderbird Agreement (or, as permitted in
The thunderbird Agreement, any underlying agreement thereto).

                                   ARTICLE III
                             NO IMPLIED OBLIGATIONS

         3.01 Waiver of Implied Obligations. With regard to this Agreement,
ICMC. shall have no obligation to begin or perform prospecting, Exploration,
Development, Mining, processing, transporting or other operations on the
Property, nor to mine and remove all or, any portion of the Ore thereon, therein
or thereunder, nor is there any implied covenant to do so. OWNER expressly
acknowledges and agrees that no Mining of Ore may occur which would entitle
OWNER to receive payment of Production Royalty and OWNER further acknowledges
and agrees that ICMC, subject to ICMC's standard of operations set forth in
Section 5.01 may waste or consume portions of any Ore and ICMC shall not be
required to pay any Production Royalty on any such Ore which may be so wasted or
consumed. OWNER expressly acknowledges and agrees that the

                                      -5-
<PAGE>
consideration for the grant of this Agreement may therefore constitute the sole
consideration for all rights of ICMC hereunder and that the same constitutes
full, reasonable, fair and adequate consideration for the rights granted to ICMC
by OWNER. If ICMC shall conduct Exploration, Development, mining, processing,
transporting, and other operations or activities hereunder, such operations and
activities shall be performed only to the extent, at such times and locations,
and by or with such methods as ICMC, in ICMC's sole discretion, shall deem
desirable. ICMC shall not be required to mine or protect in its Mining
operations any Ore which cannot be Mined, processed, shipped, and marketed at a
reasonable profit to ICMC at the time encountered as determined in the
reasonable judgment of ICMC.

                                   ARTICLE IV

                              PRODUCTION ROYALTIES

         4.01 Production Royalty. Beginning with the Commencement of Commercial
Production and continuing thereafter, ICMC shall pay to OWNER a royalty as
provided in Exhibit B, attached hereto and incorporated herein. No Production
Royalty shall be due with regard to samples of Ore which ICMC deems necessary to
test or evaluate the technical or economic feasibility of extraction, milling or
processing methods which may be used to enjoy the benefits and rights granted
hereunder. ICMC shall have the right to remove such samples free of any
Production Royalty whatsoever.

         4.02 Manner of Payment. All payments of Production Royalty due or
payable to OWNER under this Article IV may be made by check or draft mailed or
delivered on or before the due date to OWNER in the name of the person
designated and at the address provided in Section 15.06 below.

                                      -6-
<PAGE>
                                    ARTICLE V
                                ICMC'S OPERATIONS

         5.01 Standard of Care. ICMC shall perform or cause to be performed its
Exploration, Development and mining and other operations upon the Property and
under this Agreement in a good and workmanlike manner and in accordance with
sound mining and engineering practices.

         5.02 Compliance with Law. All work performed or caused to be performed
by ICMC upon the Property shall be in compliance with all applicable federal,
state and local laws, rules and regulations. With regard to closure and
reclamation, ICMC shall reclaim, in accordance with state and federal laws and
regulations, any disturbance on the Property. It is specifically agreed that
ICMC assumes the responsibility to reclaim or otherwise cure all disturbances of
the Property whether made before or after the Effective Date of this Agreement.

         It is agreed that prior to any Exploration, Development or Mining, ICMC
(in cooperation with OWNER) shall obtain release of all licenses, permits and
lands related to the Property that are in the name of OWNER.

         5.03 Books. ICMC shall keep accurate books and records on the accrual
basis in accordance with generally accepted accounting principles. OWNER's sole
inspection and audit rights as to ICMC's books and records are as set forth in
Exhibit B.

         5.04 Reports. ICMC shall furnish to OWNER, within sixty (60) days
following the effective date of termination of this Agreement, copies of all
factual, non-interpretative geologic data produced by ICMC with respect to the
Property. ICMC MAKES NO REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, AS TO
THE COMPLETENESS OR ACCURACY OF ANY INFORMATION OR DATA MADE AVAILABLE TO OWNER
HEREUNDER OR TO THE FITNESS OR SUITABILITY OF SUCH INFORMATION OR DATA FOR ANY
PURPOSE.

         5.05 Inspections. ICMC shall allow OWNER, as well as qualified
engineers and geologists representing OWNER, to enter into any adits, winzes and
shafts or upon the surface excavations

                                      -7-
<PAGE>
and appurtenant structures operated by or on behalf of ICMC, at reasonable times
and hours, for the purpose of visually inspecting the operations pertaining to
this Agreement, upon at least five (5) days' written notice; provided, however,
OWNER shall indemnify and hold ICMC harmless, and such representatives shall
execute, if requested by ICMC, written waivers releasing ICMC from liability for
personal injury or property damage while in or upon the Property, resulting
otherwise than by the sole negligence of ICMC, its employees, contractors and
agents. whether or not a written waiver is executed by OWNER or its
representatives, OWNER indemnifies and holds ICMC harmless from liability while
OWNER and/or such representatives are in or upon the Property.

         5.06 Minimum Exploration and Maintenance Expenditures. As a condition
only to the continuation of this Agreement, and subject to ICMC's right to
terminate this Agreement as set forth in Article X, ICMC hereby agrees to
commence an Exploration program with respect to the Property and to incur the
following minimum amounts of Exploration and Maintenance Expenditures (as
defined below) on the Property on or before the dates set opposite such amounts:

Minimum
Exploration and
Maintenance
Expenditures                 To Be Incurred Upon or Before
------------       ---------------------------------------------------
  $30,000          The first Anniversary Date of the Effective Date of
                   this Agreement;

  $70,000          The second Anniversary Date of the Effective Date of
                   this Agreement;

 $150,000          The third Anniversary Date of the Effective Date of
                   this Agreement;

$230,000           The fourth Anniversary Date of the Effective Date of
                   this Agreement; and

$310,000           The fifth Anniversary Date of the Effective Date of
                   this Agreement.

         It is understood and agreed by the Parties that the above Exploration
and Maintenance Expenditures are cumulative.

                                      -8-
<PAGE>
For example, a total of $230,000 in Exploration and Maintenance Expenditures
must be spent on the Property by the fourth Anniversary Date.

         If Exploration and Maintenance Expenditures in any year exceed the
minimum amount required for such year as set forth in the above schedule, ICMC
shall be entitled to credit the excess amount against Exploration and
Maintenance Expenditures required for any subsequent Agreement Year or Years. It
is further agreed that ICMC has not expended any Exploration or maintenance
Expenditures as of the Effective Date of this Agreement.

         As used herein 'Exploration and Maintenance Expenditures" means: (i)
Exploration Expenditures and Maintenance Expenditures as each isdefined below,
plus eight percent (8%) of such amounts as an allowance for administrative
services, except with respect to administration of single-third party contracts
where the overhead charge shall be five percent (5%), and (ii) all amounts
deemed to constitute Exploration Expenditures and Maintenance Expenditures under
this Exploration Agreement.

         (a) "Exploration Expenditures" means all costs or other expenditures
incurred by or on behalf of ICMC in connection with the evaluation, Exploration
and Development of the Property, which expenditures may include, in ICMC's sole
discretion and without limitation, the cost of or expenditures for geological
mapping, geophysical surveying, geochemical assaying, drilling, sampling and
other work on the Property.

         (b) "Maintenance Expenditures" means all costs or expenditures incurred
by or on behalf of ICMC to preserve in good standing the status and title that
the Property has on the Effective Date and to cure any defects in the title of
the Property, specifically including administration and judicial proceedings.

                                      -9-
<PAGE>
                                   ARTICLE VI
                                OWNERSHIP; TITLE

         6.01 Ownership; Title. OWNER hereby represents and warrants as follows:

         (a) OWNER is incorporated under the business corporations act of the
state of Nevada and represents that it exists and is in good standing in that
state as those terms might be construed under the state's business corporations
act; further, OWNER represents that it is qualified to conduct business in the
state in which the Property is located and is in good standing as that term
might be construed under the business corporations act of that state;

         (b) this Agreement has been duly authorized by all necessary corporate
action on the part of OWNER and has been duly executed and delivered by OWNER;

         (c) the Property is not the whole or substantially the whole of the
business, property, assets or undertaking of OWNER;

         (d) Except as provided in the Thunderbird Agreement, there are no
royalties, fees or monies payable or required to be paid to any person or entity
with regard to the Property and there are no outstanding agreements, options or
purchase rights to acquire any part of or all the Property;

         (e) OWNER has not engaged or employed any broker or finder in
connection with the negotiation, execution or delivery of this Agreement or the
Property; and

         (f) OWNER has not made any assignment for the benefit of creditors,
filed any petition in bankruptcy, been adjudicated insolvent or bankrupt,
petitioned or applied to any tribunal for any receiver, conservator or trustee
of it under any reorganization arrangement, readjustment of debt, conservation,
dissolution or liquidation law or statue of any jurisdiction, and no such action
or proceeding has been commenced against OWNER by any creditor, claimant,
governmental agency or other person and OWNER has no present plans or intentions
to undertake any of the foregoing; and

                                      -10-
<PAGE>
         6.02 Survival. The representations and warranties contained in Section
6.01 shall survive the execution and delivery of this Agreement.

                                   ARTICLE VII

                     REPRESENTATIONS AND WARRANTIES OF ICMC

         7.01 Representations and Warranties. ICMC represents and warrants to
OWNER as follows:

         (a) ICMC is incorporated under the business corporations act of the
Province of British Columbia, Canada, and represents that it exists and is in
good standing in that Province as those terms might be construed under its
business corporations act; further, ICMC represents that it is qualified to do
business in the state in which the Property is located and is in good standing
as that term might be construed under the business corporations act of that
state;

         (b) this Agreement has been duly authorized by all necessary corporate
action on the part of ICMC and has been duly executed and delivered by ICMC;

         (c) ICMC has not engaged or employed any broker or finder in connection
with the negotiation, execution or delivery of this Agreement or the Property;

         (d) ICMC has not made any assignment for the benefit of creditors,
filed any petition in bankruptcy, been adjudicated insolvent or bankrupt,
petitioned or applied to any tribunal for any receiver, conservator or trustee
of it under any reorganization arrangement, readjustment of debt, conservation,
dissolution or liquidation law or statue of any jurisdiction, and no such action
or proceeding has been commenced against ICMC by any creditor, claimant,
governmental agency or other person and ICMC has no present plans or intentions
to undertake any of the foregoing; and

         7.02 Survival. The representations and warranties contained in Section
7.01 shall survive the execution and delivery of this Agreement.

                                      -11-
<PAGE>
                                   ARTCLE VIII
                                      TAXES

         8.01 Taxes Paid by ICMC. ICMC agrees to pay all taxes levied and
assessed on improvements on the Property. ICMC's obligation to pay the aforesaid
taxes shall commence with taxes payable for the year of execution of this
Agreement. It is agreed that should OWNER receive tax bills or claims that are
the responsibility of ICMC hereunder, the same shall be forwarded to ICMC for
appropriate action.

         ICMC shall not be obligated to pay any tax imposed upon any payment it
makes to OWNER under this Agreement.

                                   ARTICLE IX
                                    LIABILITY

         9.01 Liability. ICMC will, at its sole expense, save, protect and hold
OWNER harmless against any and all claims, demands or judgments whatsoever for
loss or damage to personal property and death or injury to persons arising out
of ICMC's activities or operations on the Property or with regard to The ICMC
Stock, except those claims of OWNER, its assigns, contractors, employees,
successors or agents which are barred by the provision of Section 5.05. ICMC's
responsibilities under this section 9.01 shall terminate upon termination of
this Agreement, except for causes of action accruing before the date of
termination.

                                     ARTICLE
                                  X TERMINATION

         10.01 Termination by ICMC. After one (1) year from the Effective Date,
ICMC may terminate this Agreement as to all or any portion of the Property at
any time upon giving ten (10) days' written notice to OWNER and thereafter ICMC
shall have no liability (specifically including Exploration and Maintenance
Expenditures) to OWNER under or in relation to this Agreement except as provided
in Section 10.04. Any partial termination of this Agreement by

                                      -12-
<PAGE>
ICMC shall not reduce the Exploration and Maintenance Expenditures provided for
in this Agreement.

         10.02 Default
          (a) Default Procedures - Except with regard to payments due on
underlying agreements, in the event OWNER believes ICMC to be in default in the
observance or performance of any of ICMC's covenants, agreements or obligations
under this Agreement, OWNER may give written notice of such alleged default,
specifying the details of the same. ICMC shall have thirty (30) days following
said notice within which to remedy any such default described therein, or to
commence action in good faith to remedy such default or, in the case of
Exploration and Maintenance Expenditures, pay to OWNER the amount of Exploration
and Maintenance Expenditures required to be incurred under Article V that are
the subject of OWNER's written notice. Any such payment shall be deemed to be
Exploration and Maintenance Expenditures under Article V. In the case of
non-payment of a payment due on an underlying agreement, ICMC shall be deemed to
automatically be in default but shall have the right to remedy any such default
by making such payment within ten (10) days after such default.

         Unless ICMC shall so comply or commence to comply, this Agreement may
be terminated at the option of OWNER; provided, however, that in the event ICMC
believes that it is not in default, ICMC may give written notice to OWNER within
the thirty (30) day period setting forth such fact. OWNER must then secure a
final judicial determination (including all appeals concerning the same) by a
court of competent jurisdiction that such default in fact exists; provided,
however, that OWNER expressly agrees that ICMC shall not be liable for any
incidental, consequential or punitive damages claimed by OWNER and no judgment
shall award to OWNER indirect, consequential or punitive damages. In the event
there is such a judicial determination, this Agreement shall not be terminable
by OWNER if ICMC shall (i) satisfy such judgment within thirty (30) days
following its entry (or if an appeal of such

                                      -13-
<PAGE>
judgment is taken, following its affirmance by the highest court to which such
an appeal is made) and (11) reimburse OWNER for all of its reasonable costs and
expenses in obtaining such judgment, including attorney's fees; and provided,
further, that OWNER shall not be entitled to terminate this Agreement for any
default which by its nature is not retroactively curable if ICMC has used its
reasonable efforts to cure such a default to the extent practicable or if ICMC
has paid OWNER damages for ICMC's default where damages are an appropriate
remedy.

              (b) Disputes Not to Interrupt Operations. Subject to OWNER's right
to terminate this Agreement as set forth in this Section 10.02, disputes or
differences between the parties shall not interrupt performance of or the
continuation of operations under this Agreement. With regard to Production
Royalties or any other sums payable hereunder or any part thereof, ICMC shall
have the right to escrow the portion of any such payment that is in dispute as
provided in Section 10.02(c) below. In the event of any dispute or difference,
operations may be continued in the same manner as prior to such dispute or
difference, until the matters in dispute have been finally determined between
the parties. Upon final determination, such payments or restitutions shall be
made as may be required under the terms of the settlement or final determination
of the dispute.

              (c) Escrow Deposit. In the event of dispute or litigation as to
Production Royalties or any other sums payable hereunder or any part thereof,
any such Production Royalties or other payments may be deposited in escrow with
a depository bank selected by ICMC to be held until such dispute or litigation
is finally resolved or terminated. Any sums so deposited in escrow by ICMC
hereunder shall be deemed payment of Production Royalties or other sums due
hereunder for purposes of compliance by ICMC with its obligations under this
Agreement.
                                      -14-
<PAGE>
         10.03 Termination by Either Party. This Agreement may not be terminated
by either party except as expressly provided in Sections 10.01 or 10.02.

         10.04 Obligations upon Termination.

         (a) Upon Termination of the Agreement. If this Agreement is terminated
under Sections 10.01 or 10.02:

                  (i) ICMC shall comply with the provisions of Section 5.02
         regarding closure and reclamation of the Property;

                  (ii) ICMC shall, as set forth in Section 9.01, remain liable
         to OWNER for causes of action accruing prior to termination of this
         Agreement;

                  (iii) ICMC shall remain liable to OWNER for the payment of the
         ICMC Stock and for the payment of any Production Royalties which accrue
         and are payable prior to termination of this Agreement;

                  (iv) ICMC shall offer to deliver to OWNER executed, recordable
         transfer documents transferring its interest in and to the Property to
         OWNER free and clear of any claims of those claiming by, through or
         under ICMC. OWNER shall have sixty (60) days after receipt of ICMC's
         notice in which to elect to accept a transfer of the Property; and

                  (v) ICMC shall, in the event OWNER elects to receive a
         transfer of the Property, have the right for a period of one (1) year
         to remove its buildings, structures, machinery, casings, tools,
         equipment and other personal property, permanent improvements and
         fixtures erected or placed upon the Property by ICMC after the date
         hereof, except only track, pipe, timber, shaft guides, sheave wheels,
         air gates, ventilation ducts, chutes and ladders in place and
         protective devices (fences, caps, plugs or otherwise), which ICMC shall
         leave in good condition for safety and underground support and entry.
         All such buildings, structures, machinery, casings, tools, equipment or
         other personal property, permanent improvements and fixtures not
         removed (unless such items
                                      -15-
<PAGE>
         are needed to fulfill ICMC's closure and reclamation obligations) prior
         to the expiration of such one (1) year following the termination of
         this Agreement shall then, at the election of OWNER, be deemed affixed
         to the Property and shall become and remain the sole property of OWNER.

         (b) Upon Termination of Part of the Property. If part of the Property
is being released from the terms of this Agreement under Section 10.01:

                  (i) ICMC shall comply with the provisions of Section 5.02
         regarding closure and reclamation of the part of the Property that is
         being released from the terms of this Agreement;

                  (ii) ICMC shall remain liable to OWNER for the payment of the
         ICMC Stock and for the payment of any Production Royalties which accrue
         and are payable as to production from that part of the Property that is
         being released from the terms of this Agreement;

                  (iii) ICMC shall offer to deliver to OWNER executed,
         recordable transfer documents transferring to OWNER that part of the
         Property that is being released from the terms of this Agreement, free
         and clear of any claims of those claiming by, through or under ICMC.
         OWNER shall have sixty (60) days after receipt of ICMC's Notice in
         which to elect to accept a transfer of the Property subject to the
         release; and

                  (iv) ICMC shall, in the event OWNER elects to receive a
         transfer of the Property subject to release, have the right for a
         period of one (1) year to remove its buildings, structures, machinery,
         casings, tools, equipment and other personal property, permanent
         improvements and fixtures erected or placed by ICMC after the date
         hereof upon the part of the Property that is being released from the
         terms of this Agreement except only track, pipe, timber, shaft guides,
         sheave wheels, air gates, ventilation ducts, chutes and ladders in
         place and protective devices (fences, caps, plugs or otherwise), which
         ICMC shall leave in good condition for safety and underground support
         and entry. All such buildings,

                                      -16-
<PAGE>
         structures, machinery, casings, tools, equipment or other personal
         property, permanent improvements and fixtures not removed (unless such
         items are needed to fulfill ICMS's closure and reclamation obligations)
         prior to the expiration of such one (1) year shall then, at the
         election of OWNER, be deemed affixed to the Property and shall become
         the sole property of OWNER.

         (c) Limitation of Liability. OWNER expressly agrees that ICMC shall not
be liable for any incidental, consequential or punitive damages claimed by
OWNER.

         (d) Cross Indemnities. Upon termination of this Agreement, ICMC and
OWNER shall continue to have the indemnity responsibilities set forth in Section
15.04.

                                   ARTICLE XI

                        TRANSFER RIGHTS AND RESTRICTIONS

         11.01 Transfer by ICMC. ICMC shall not assign, or otherwise transfer
any rights or obligations regarding the Property or this Agreement (in whole or
in part) without first obtaining the prior written consent of OWNER, which
consent shall not be unreasonably withheld.

                                   ARTICLE XII

                                  FORCE MAJEURE

         12.01 Force Majeure. All obligations of ICMC and all conditions with
respect to the continuation of this Agreement, specifically including the
payment of Royalty payments as set out in Section 4.01, shall be suspended and
ICMC shall not be deemed in default or liable for damages or other legal or
equitable remedies while; but only as long as, ICMC is prevented from complying
with such obligations or conditions in whole or in part by actions of
environmental pressure groups, strikes, lockouts, labor slowdowns or
disturbances, acts of God, war, explosion, flood, epidemics, unavoidable
accidents, uncontrollable delays in transportation, inability to obtain
necessary materials or services in the open

                                      -17-
<PAGE>
market, unusually severe weather, inadequate facilities for the transportation
of materials, any local, state or federal law, regulation or order, or any other
matters beyond the reasonable control of ICMC, whether similar to the matters
herein specifically enumerated or not ("Force Majeure"). The time or times
specified herein for compliance by ICMC with all obligations and conditions
hereunder, including, without limitation, obligations or conditions as to the
incurring of Exploration and Maintenance Expenditures, shall thereafter be
extended for a period or periods equal to the duration of the Force Majeure
provided, however, that performance shall be resumed within a reasonable time
after such Force Majeure has ceased to exist; and provided, further, that ICMC
shall not be required to compromise or settle any labor disputes or to question
the validity or to refrain from judicially testing the validity of any local,
state or federal order, regulation or law. without limitation of the above
general provision, if ICMC is or becomes subject, at any time, to environmental
regulations or governmental restrictions ("environmental regulations or
governmental restrictions" shall include any law, rule, regulation, order,
judgment, policy, proposal, action or inaction or restriction relating to air
pollution, water pollution, surface or subsurface Exploration or mining and
surface or subsurface effects of mining or land use) which prohibit or
materially affect any operations hereunder or planned to be carried out
hereunder, ICMC shall have the right to declare the existence of a condition of
Force Majeure during the period in which ICMC is in good faith seeking a
feasible method to comply with, be exempted from, modify, obtain necessary
permits or licenses under or prevent the enactment, promulgation or enforcement
of such environmental regulations or governmental restrictions. OWNER agrees to
cooperate with ICMC in prosecuting any such actions.

                                  ARTICLE XIII

                                   [RESERVED]

                                      -18-
<PAGE>
                                   ARTICLE XIV

                       OPTION TO ENTER INTO JOINT VENTURE

         14.01 Grant of Option. OWNER hereby reserves and ICMC hereby grants to
OWNER an exclusive option (hereinafter the "Option") to enter into a joint
venture in regard to the Property upon the terms and conditions set forth
herein.

         14.02 Consideration. The Parties agree that the consideration contained
in this Agreement shall be sufficient consideration for the grant of this
option.

         14.03 Exercise of the Option.

          A. OWNER may subject to the provisions of Section 14.05 below,
exercise the Option at any time after the Effective Date hereof and prior to
five (5) years from the Effective Date of this Agreement by the delivery of
written notice to ICMC of OWNER's intent to exercise the Option, together with
two (2) originals of the Joint Venture Agreement, dated the date of the notice
and executed by OWNER. within thirty (30) days after ICMC's receipt of OWNER's
exercise of the Option, ICMC shall, unless ICMC exercises its termination right
under Section 14.05 below, execute and return to OWNER one (1) original Joint
Venture Agreement.

         It is agreed by the Parties that such Joint Venture Agreement shall
generally follow the then current Rocky Mountain Mineral Law Form of joint
venture agreement and shall specifically provide that: (1) this Agreement shall
remain in effect and shall be part of the basis on which the OWNER (as to 49%)
and ICMC (as to 51%) shall have rights and obligations in and with respect to
the
                                      -19-
<PAGE>
Property; provided, however, that OWNER shall not be entitled to the Production
Royalty; (2) each party will fund its proportionate share of ongoing
expenditures on the Property or have its interest deducted; (3) a management
committee will approve all operations and activities of the venture and will
consist of two members from each of ICMC and OWNER with ICMC to hold the
deciding vote so long as ICMC retains not less than 51% interest in the joint
venture; (4) ICMC will have the right to be operator of the joint venture so
long as it retains not less than a 51% interest in the joint venture; and (5) in
the event of a conflict between OWNER's rights and obligations as a joint
venture and its rights under this Agreement, its rights under this Agreement
shall be paramount.

         Provided that: (1) ICMC has not exercised its right under Section 14.05
below to terminate OWNER's exercise of the Option and (2) ICMC has executed and
returned a copy of the joint venture agreement as provided for above, within
forty-five (45) days after delivery of the Option notice to ICMC, OWNER shall
pay ICMC the amount of One Hundred and Fifteen Percent (115%) of ICMC's
Exploration and Maintenance Expenditures expended on the Property from January
1, 1996, until exercise of the Option by OWNER.

         14.04 Covenants Running with the Land: Specific Performance. The
covenants and agreements of OWNER and ICMC under this Option are intended to
touch and concern the Property and to be and shall be covenants running with the
land with respect to the Property and shall be binding upon OWNER and ICMC and
OWNER's and ICMC's representatives and permitted successors and assigns.

                                      -20-
<PAGE>
         14.05 Termination of Option.In the event that OWNER does not exercise
the Option in the manner provided herein, then: (i) this Option shall, without
further action of any party, automatically terminate and thereafter be null and
void and of no further force or effect, and (ii) neither Party shall have any
further rights or obligations with respect to the Option. Additionally, ICMC
shall have the right to terminate OWNER's Option by payment to OWNER of Three
Hundred Thousand Dollars (Canadian) (Cdn $300,000) at any time up to twenty-one
(21) days after receipt by ICMC of the Option notice sent by OWNER.

                                   ARTICLE XV

                               GENERAL PROVISIONS

         15.01 Competition. This Agreement is, and the rights and obligations of
the Parties are, strictly limited to the Property and the Parties shall have
the. free and unrestricted right to engage in and independently receive the full
benefits of any, and all business ventures of any sort whatsoever, whether or
not competitive with the activities undertaken pursuant hereto, without
consulting the other or inviting or allowing the other to participate therein.
Neither of the Parties shall be under any fiduciary or other duty to the other
which will prevent it from engaging in or enjoying the full benefits of any
competing venture or ventures within the general scope of the activities
contemplated by this Agreement. without limiting the generality of the
foregoing, neither Party shall be under any duty to disclose to the

                                      -21-
<PAGE>
other Party information and data relating to the Property which it obtains
outside the scope of its activities under this Agreement.

     15.02 Memorandum for Recording. This Agreement shall not be recorded for,
by or on behalf of either Party. OWNER agrees to execute and ICMC shall record a
notice or memorandum of this Agreement, which shall be in a form suitable for
recording under the state and local laws of Idaho, specifying that the interests
of ICMC and OWNER in the Property are subject to the terms and conditions of
this Agreement.

         15.03 Governing Law. This Agreement shall be governed and construed
according to the laws of Idaho and subject to the jurisdiction of the courts of
such state. In addition, this Agreement shall be subject to all applicable laws,
rules and regulations of public bodies having jurisdiction over the development
or operation of the Property.

         15.04 Not a Partnership. It is not the purpose or intention of this
Agreement to create a partnership, mining partnership, commercial partnership or
any other partnership relation between the Parties hereto. Each of the Parties
shall be responsible only for its respective obligations and liabilities as set
forth in this Agreement and neither Party shall have any authority to act for or
to assume any obligations or responsibility on behalf of the other Party.
Nothing contained in this Agreement shall be deemed to constitute any Party the
partner of the other or the agent or legal representative of the other or to
create any fiduciary relationship between them. Each Party agrees to

                                      -22-
<PAGE>
indemnify and hold harmless the other Party, its directors, officers, employees
and agents from and against any and all losses, claims, damages and liabilities
arising out of any act taken or made by or on behalf of the other Party, its
directors, officers, employees or agents under or in relation to this Agreement,
except pursuant to authority expressly granted herein or otherwise agreed to
between the Parties. The provisions of this Section 15.04 shall survive
termination of this Agreement

         15.05 Laws and Regulations. In the conduct of its operations on the
Property, ICMC shall be responsible for compliance with applicable laws and
regulations, including laws and regulations related to Exploration, Mining,
Development and reclamation.

         15.06 Manner of Giving Notices. Any notice, election, proposal,
objection or other document, including any proposed public announcement, press
release or other disclosure, required or permitted to be given hereunder
("Notices") shall be in writing addressed to the Parties as follows:

         ICMC:                         IDAHO CONSOLIDATED METALS CORP.
                                       Post Office Box 2124
                                       Lewiston, Idaho 83501
                                       Attention: Mr. Wilf Struck
                                       FAX NO: (208) 746-6670

         OWNER:                        c/o Bema Gold Corporation
                                       1400 - 510 Burrand Street
                                       Vancouver, B.C. V6C 3A8
                                       Attention: Ms. Roger Richer
                                       FAX NO: (604) 681-6209

                                      -23-
<PAGE>
         All Notices shall be given: (a) by personal delivery to ICMC, (b) by
electronic communication, with the original Notice sent by registered or
certified mail in the United States of America mail, return receipt requested,
or (c) by registered or certified mail in the United States of America mail,
return receipt requested. All Notices shall be effective and shall be deemed
delivered: (a) if by personal delivery, on the date of delivery if delivered
during normal business hours, and, if not delivered during normal business
hours, on the next business day following delivery, (b) if by electronic
communication, on the next business day following receipt of the electronic
communication, and (c) if solely by mail, on the next business day after actual
receipt. A Party may at any time change its address for future Notices hereunder
by Notice in accordance with this Section 15.06.

         15.07 Currency. Except as provided for in Section 14.05, all amounts of
money Currency. Except expressed or payable hereunder are expressed and shall be
paid in dollars of the United States of America.

         15.08 [RESERVED]

         15.09 Further Assurances. Each of the Parties hereby covenants and
agrees to execute any further and other documents and instruments and to take
any further and other actions that may be necessary to implement and carry out
the intent of this Agreement.

         15.10 Binding Effect. This Agreement shall enure to the benefit of and
be binding upon the Parties hereto and their respective successors and permitted
assigns. This Agreement shall be binding upon each Party which has executed and
delivered it, whether or not it has been executed and delivered by all Parties.

         15.11 Headings. The articles, sections, titles and other headings of
this Agreement (other than the definitions) are inserted only for convenience
and shall not control or affect the meaning, construction or interpretation of
the Agreement or affect its terms and provisions.

         15.12 Severability. In the event any provision of this Agreement is, or
the operations contemplated hereby are, found to

                                      -24-
<PAGE>
be inconsistent with or contrary to any law, rule or regulation, the latter
shall be deemed to control and this Agreement shall be regarded as modified
accordingly and shall continue in full force and effect as so modified.

         15.13 Perpetuities. The Parties to this Agreement do not intend that
there shall be any violation of the Rule Against Perpetuities or any related
rule pertaining to restraints upon alienation. If any such violation should
inadvertently exist, it is the intent and desire of the Parties hereto that the
appropriate court shall reform such provision or provisions in such a way as to
approximate most closely the intent 'of the Parties hereto within the limits
permissible under such Rule or related rule.

         15.14 Waiver, Modification or Amendment. No failure or delay on the
part of either OWNER or ICMC in exercising any of their respective rights
hereunder upon any failure by the other party to perform or observe any
condition, covenant or provision herein contained shall operate as a waiver
thereof, nor shall any single or partial exercise of any of such rights preclude
any other or further exercise thereof or the exercise of any other right
hereunder. Neither this Agreement nor any provision hereof may be supplemented,
changed, waived, or discharged orally, or by any course of dealing or trade
usage, but only by an instrument in writing signed by the Party against whom the
enforcement of the supplement, change, waiver, or discharge is sought.

         15.15 Counterparts.This Agreement may be executed in any number of
counterparts, each of which shall be deemed an original.

         15.16 Advisors to OWNER. OWNER expressly acknowledges that it has
sought (or had the opportunity to seek) the advice of OWNER's own advisors,
including but not limited to, legal, tax, financial, geologic, and engineering,
to assist OWNER in reviewing this Agreement. OWNER expressly acknowledges that
OWNER is not relying on any oral or written statement (not expressly set forth
in this Agreement) made by ICMC, its employees or agents regarding any matters
pertaining to this Agreement.

                                      -25-
<PAGE>
         15.17 Acknowledgement and Agreement. ICMC hereby acknowledges that
Arctic Fox Ltd. and Gray Estates Company have not consented to the transfer of
the Property and that such consent may not be received by the Effective Date of
this Agreement, if at all. OWNER and ICMC hereby waive the receipt of the
consent by Arctic Fox Ltd. and Gray Estates Company as a condition precedent to
the completion of the transaction contemplated herein.

         15.18 Registration of the ICMC Stock. ICMC shall bear all costs and
expenses associated with removing any restrictions on the marketability of the
ICMC Stock.

         15.19 Entire Agreement. This Agreement (including Exhibits A and B
shall constitute the complete understanding and agreement of the Parties with
respect to the Property and the subject matter hereof, all previous agreements
with respect thereto being expressly rescinded and replaced hereby. No
modification or alteration of this Agreement shall be effective unless in
writing executed subsequent to the date hereof by both of the Parties. No prior
written or contemporaneous oral promises, representations or agreements shall be
binding upon the Parties.

         IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as
of the date first above written.

IDAHO GOLD CORPORATION                IDAHO CONSOLIDATED METALS CORP.

By: [ILLEGIBLE SIGNATURE]             By: /S/ WILF STRUCK

Title: Director/Secretary/Treasurer   Title: Chief Operating Officer,
                                             Vice President

                                      -26-
<PAGE>
State of Idaho                        )
                                       :ss.
County of Nez Perce )

         On this 4th day of February, 1997, before me, the undersigned, a Notary
Public in and for said state, personally appeared WILF STRUCK, known and
identified to me to be person whose name is subscribed to the within instrument,
and acknowledged to me that he executed the same.

         IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official
seal on the day and year first written above.

                                 Notary Public for the State of Idaho
                                 Residing at Lewiston
                                 My Commission expires 9-21-02
<PAGE>
                                    EXHIBIT A
                                       To
                             MINERAL LEASE AGREEMENT
                                     Between
                             IDAHO GOLD CORPORATION
                                       And
                         IDAHO CONSOLIDATED METALS CORP.

                                   "Property"

         1. The Claims

         2. The Thunderbird Agreement

         3. Underlying Agreements to the Thunderbird Agreement
<PAGE>
         SCHEDULE "A"
    BUFFALO GULCH CLAIMS
Claim           BLM #       IMC
Name
A                 46       95056
A                 48       95058
A                 49       95059
A                 50       95060
A                 53       95063
A                 54       95064
A                 55       95065
A                 56       95066
A                 58       95068
A                 65       95075
A                 66       95076
A                 67       95077
A                 68       95078
A                 69       95079
A                 70       95080
A                 71       95081
A                 72       95082
A                 73       95083
A                 74       95084
A                 75       95085
A                 80       95090
A                 81       95091
A                 82       95092
A                 83       95093
A                 84       95094
A                 85       95095
A                 86       95096
A                 87       95097
A                 88       95098
A                 89       95099
A                 90       95100
A                 91       95101
A                 92       95102
A                 93       95103
A                 94       95104
A                 95       95105
A                 96       95106
A                 97       95107
A                 98       95108
A                 99       95109
Black Bear         1       72588   297158
Black Bear         2       72589   297159
Black Bear         3       72590   297160
Black Bear         4       72591   297161
Black Bear         5       72592   297162
Black Bear         6       72593   297163
EC                 1       85868
EC                 2       85869
EC                 3       85870
EC                 4       85871
EC                 5       85872
EC                 6       85873
EC                 7       85874
EC                 6       85875
EC                 9       85876
EC                10       85877
EC                12       85879
EC                14       85881
EC                16       85883
EC                18       85885
EC                20       85887
EC                22       85889
EC                24       85891
EC                57       85892
EC                58       85893
EC               120       85894
EC               121       85895
EC               125       85897
EC               126       85898
Whiskey Jack       1      121621
Whiskey Jack       2      121622
Whiskey Jack       3      121623
Whiskey Jack       4      121624
<PAGE>
                                    EXHIBIT B
                                       To
                             MINERAL LEASE AGREEMENT
                                     Between
                             IDAHO GOLD CORPORATION
                                       And
                         IDAHO CONSOLIDATED METALS CORP.

                               NET SMELTER RETURNS
<PAGE>
             SCHEDULE "B" - BUFFALO GULCH CLAIMS NET SMELTER RETURNS

1.       The royalty which may be payable to Idaho Gold Corporation (hereinafter
         called the "Payee") pursuant to paragraph 3(d) of the Assignment of
         Interests Agreement by Idaho Consolidated Metals Corp. (hereinafter
         called the "Payor") will be 3% of 100% of the Net Smelter Revenue ( as
         hereinafter defined) and will be calculated and paid to the Payee in
         accordance with the terms of this Schedule "B". Terms having defined
         meanings in the Agreement and used herein will have the same meanings
         in this Schedule as assigned to them in the Assignment of Interests
         Agreement unless otherwise specified or the context otherwise requires.

2.       The Net Smelter Revenue will be calculated on a calendar quarterly
         basis and will, subject to paragraph 7 of this Schedule "B", be equal
         to Gross Revenue less Permissible Deductions for such quarter.

3.       The following words will have the following meanings:

         (a)      "Gross Revenue" means the aggregate of the following amounts
                  received in each quarterly period following the commencement
                  of commercial production from the Mining Properties:

                  (i)      the revenue received by the Payor from arm's length
                           purchasers of all Product;

                           the fair market value of all Product sold by the
                           Payor in such period to persons not dealing at arm's
                           length with the Payor; and

                           any proceeds of insurance on Product;

         (b)      "Ore" means all materials from the Mining Properties, the
                  nature and composition of which justifies either:

                  (i)      mining or removing from place and shipping and
                           selling such material, or delivering such material to
                           a processing plant for physical or chemical
                           treatment; or

                  (ii)     leaching such material in place;

         (c)      "Permissible Deductions" means the aggregate of the following
                  charges (to the extent that they are not deducted by any
                  purchaser in computing payment) that are paid in each
                  quarterly period:
<PAGE>
                  (i)      sales charges levied by any sales agent on the sale
                           of Product,

                  (ii)     transportation costs for Product from the Mining
                           Properties to the place of beneficiation, processing
                           or treatment and thence to the place of delivery of
                           Product to a purchaser thereof, including shipping,
                           freight, handling and forwarding expenses;

                           all costs, expenses and charges of any nature
                           whatsoever which are either paid or incurred by the
                           Payor in connection with refinement or beneficiation
                           of Product after leaving the Property, including all
                           weighing, sampling, assaying and representation
                           costs, metal losses, any umpire charges and any
                           penalties charged by the processor, refinery or
                           smelter, and

                           all insurance costs on Product, and any government
                           royalties, production taxes, severance taxes and
                           sales and other taxes levied on Ore, Product or on
                           the production or value thereof (other than any
                           Federal or Provincial taxes levied on the income or
                           profit of the Payor);

         (d)      "Product" means:

                  (i)      all Ore shipped and sold prior to treatment, and

                  (ii)     all concentrates, precipitates and products produced
                           from Ore.

4.       The payment on account of the royalty for each calendar quarter will be
         calculated and paid within 60 days after the end of each calendar
         quarter. Smelter settlement sheets, if any, and a statement setting
         forth calculations in sufficient detail to show the payment's
         derivation (the "Statement") must be submitted with the payment.

5.       In the event that final amounts required for the calculation of the
         payment on account of the royalty are not available within the time
         period referred to in section 4 of the Schedule "B", then provisional
         amounts will be estimated and such payment will be paid on the basis of
         this provisional calculation. Positive or negative adjustments will be
         made to the payment on account of the royalty for the succeeding
         quarter.

6.       All payments on account of the royalty will be considered final and in
         full satisfaction of all obligations of the Payor with respect thereto,
         unless the Payee delivers to the Payor a written notice (the "Objection
         Notice") describing and setting forth a specific objection to the
         calculation thereof within 60 days after
<PAGE>
                                                                               2

         receipt by the Payee of the Statement. If the Payee objects to a
         particular Statement as herein provided, the Payee will, for a period
         of 60 days after the Payor's receipt of such Objection Notice, have the
         right, upon reasonable notice and at reasonable times, to have the
         Payor's accounts and records relating to the calculation of the payment
         in question audited by the auditors of the Payee. If such audit
         determines that there has been a deficiency or an excess in the payment
         made to the Payee, such deficiency or excess will be resolved by
         adjusting the next quarterly payment due hereunder. The payee will pay
         all the costs and expenses of such audit unless a deficiency of 5 % or
         more of the amount due is determined to exist. The Payor will pay the
         costs and expenses of such audit if a deficiency of 5 % or more of the
         amount due is determined to exist. Failure on the part of the Payee to
         made a claim against the Payor for adjustment in such 60 day period by
         delivery of an Objection Notice will conclusively establish the
         correctness and sufficiency of the Statement and payment on account of
         the royalty for such quarter.

7.       All profits and losses resulting from the Payor engaging in any
         commodity futures trading, option trading, metals trading, gold loans
         or any combination thereof, and any other hedging transactions with
         respect to Product which is a precious metal (collectively, "Hedging
         Transactions") are specifically excluded from calculations of the
         payments on account of the royalty pursuant to this Schedule "B" (it
         being the intent of the parties that the Payor will have the
         unrestricted right to market and sell Product to third parties in any
         manner it chooses and that the Payee will not have any right to
         participate in such marketing activities or to share in any profits or
         losses therefrom. All Hedging Transactions by the Payor and all profits
         or losses associated therewith, if any, will be solely for the Payor's
         account. The amount of Net Smelter Revenue derived from all Product
         subject to Hedging Transactions by the Payor will be determined
         pursuant to the provisions of this. paragraph 7 and not paragraph 2. As
         to precious metals subject to Hedging Transactions by the Payor, Net
         Smelter Revenue will be determined without reference to Hedging
         Transactions and will be determined by using, for gold, the quarterly
         average price of gold, which will be calculated by dividing the sum of
         all London Bullion Market Association P.M. Gold Fix prices reported for
         the calendar quarter in question by the number of days for which such
         prices were quoted. Any Product subject to Hedging Transactions will be
         deemed to be sold, and revenues received therefrom, only on the date of
         the final settlement of the amount of refined Product allocated to the
         account of the Payor by a third party refinery in respect of such
         transactions. Furthermore, the Payor will have no obligation to fulfill
         any futures contracts, forward sales, gold loans or other Hedging
         Transactions which the Payor may hold with Product.

8.       If the royalty becomes payable to two or more parties, those parties
         will appoint, and will deliver to the Payor a document executed by all
         of those parties appointing, a single agent or trustee of all such
         parties to whom the
<PAGE>
                                                                               3

         Payor will make all payments on account of the royalty. The Payor will
         have no responsibility as to the division of the royalty payments
         amount such parties, and if the Payor makes a payment or payments on
         account of the royalty in accordance with the provisions of this
         paragraph 8, it will be conclusively deemed that such payment or
         payments have been received by the Payee. All charges of the agent or
         trustee will be borne solely by the parties receiving payments on
         account of the royalty.

9.       Notwithstanding the foregoing, the royalty payable shall be limited to
         US$3,000,000.

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