Previous Work

In 1997, following a program of geophysical surveying, Cyprus Canada Inc. drilled two diamond drill holes on the property totaling 310.5 metres. The second hole, MD97-02, intersected massive to semi-massive pyrite mineralization over 13 metres with tourmaline and strong carbonate, sericite, silicification and fuchsite alteration throughout the hole. This resulted in an additional six holes, which intersected three separate auriferous horizons.

International Taurus Resoures Inc. (merged with American Bonanza in 2004) acquired the property in 1998 and, in 1999 and 2000, completed 21 drill holes, totaling 3,807 metres. This work further indicated the widespread nature of gold mineralization in association with ultramafic and volcanic rocks on the property and indicated that the higher-grade mineralization is contained in veins and shoots, similar in nature to the high-grade gold mineralization on the Company's Fenelon Gold Project. The highlight of the 2000 drill program was an intercept of 14.4 grams per tonne gold over 4.2 metres from the Central Zone.

Diamond drilling by American Bonanza during 2006-07 continued to expand the extent of known mineralization in the West and Central Zones and led to the discovery of the Martiniere East Zone in hole MD07-20 which returned 28.40 metres grading 2.30 g/t gold. This hole, the most easterly hole drilled to date into the Martiniere gold system, provided the first indication of bulk tonnage potential on the Martiniere property and will be a focus of upcoming drilling. There has been no work on the property since early 2007.