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Development Plan. Corporate Objectives . Increase shareholder value through exploration & development of large impact mineral projects in North America and Australia
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Corporate Objectives • Increase shareholder value through exploration & development of large impact mineral projects in North America and Australia • Build a cash flow driven resource company within 2 years through strategic development of existing and proven properties in Australia and North America • Continued exploration and mining of high grade, shallow gold, copper and nickel deposits in Australia • Development of a major gold tailings project in South Dakota
Company Profile Goldstake Explorations Inc.: Publicly listed, Canadian mineral exploration and development company, 1st incorporated as Seemar Mines Ltd. in 1966 & traded on the OTC. Name was changed to Goldstake Explorations Inc. in 1986 and has traded on the TSE under the symbol GXP since 1988. Has a diversified portfolio of precious metal properties in Canada, the United States, Australia and Indonesia
Property Portfolio Goldstake Exploration Inc.’s business strategy has been to acquire properties meeting the following criteria: • Proximity to proven or probable high grade reserves • Shallow depth of ore deposits • Easy access to existing infrastructure
KEY MINING AND DEVELOPMENT OPPORTUNITIES 5 Priority Goldstake Projects
Directors & Officers Goldstake’s management & consultants are professional mining engineers, geologists & businessmen with many years of hands on experience in the development & operation of small and large scale mining companies
Directors & Officers • Robert B. Cleaver, Director &President 32 years of experience in precious metals exploration & mining; global network of contacts including top mining industry specialists • Charles L. McAlpine, Director & Secretary/Treasurer 41 years mining industry experience, director of several Canadian mining companies & of Hecla Mining Company, a major US silver/gold producer • Peter Froneman, Director & Audit Committee Canadian businessman involved with the engineering equipment industry for 31 years • Peter Mills, Director & Audit Committee Senior Executive with over 30 years experience in marketing, advertising & real estate in Canada and the United States
Key Industry Consultants • Fluor Engineers; San Francisco; USA Employed by Goldstake to verify ore reserves & prepare bankable feasibility for Whitewood Creek, South Dakota gold tailings site • Bateman Engineers; Denver USA – Perth Aus. Johannesburg, S.A. Responsible for metallurgy, engineering for the Whitewood Creek feasibility study • Knight Piesold Engineers; Denver USA Designed heap leach and tailings pond at Whitewood Creek • Kappes CassidyMetallurgical Engineers; Reno, USA Executed metallurgical studies on gold tailings at Whitewood Creek property
Key Industry Consultants Cont’d • Minproc Engineers; Perth Australia World renowned firm specializing in Mining design processing & construction • Sidley & Austin, Environmental Law Firm; Washington, D.C.,USA Responsible for dealing with EPA & CERCLA legal requirement on Whitewood Creek project. Dealt with lawyer Stephen D. Ramsey who is now V.P. - Environmental for General Electric, USA.
Key Mining and Development Opportunities • Goldstake Explorations Inc. owns interests in 5 mining projects that have proven & probable reserves • All of which can be put into production, subject to feasibility, permitting & development financing
5 Key Goldstake Properties • Barrow Creek Properties – Northern Territory Australia • Home of Bullion (Copper, Silver, Gold, Zinc, Lead) • Prospect D (Copper, Nickel, Gold) • Prospect D “A” (Copper, Nickel, Gold) • Hill End – NSW, Australia (Gold) • Whitewood Creek – South Dakota, U.S.A (Gold)
Barrow Creek Properties(NT, AUS) • Located 300 KM north of Alice Springs • Exploration License #23186 covers 825 sq. km & is valid till August 2008 Ownership Details • 50% Goldstake • 25% Robert Cleaver, Goldstake President • 25% Imperial Granite & Mineral Pty Ltd, Darwin Aus. John Benger, miner/prospector is the sole shareholder • Above license holders have exclusive rights to explore & obtain mining leases during license period. No formal agreement between license holders other than all parties will do their best to advance property production & each party’s investments will be repaid from production income • See following map (Exhibit 1) for mine locations
Barrow Creek Properties:Home of Bullion • Profitable mining can be undertaken concurrently with proving up additional reserves on this massive sulphide high grade deposit • 5,500 tons produced in 1948 with 2,500 tons returning 22.5% Cu • Proven & Probable ore up to 15% Cu to 300 ft. is approximately 9 million lbs. of copper • 3,300 tons proven sulphide ore reserves at up to 15% Cu above 60 M • 33,000 tons probable oxidized ore at 4% Cu – 2% Pb to 35 M • 13,200 tons probable secondary ore up to 15% Cu – above 60 M • 33,000 tons probable ore at 6% Cu – 2% Pb – 5.10% ZN between 60-90 M • Recent Sampling: September 2002 Silver 9-15 ozs., Gold up to 4 dwts (or 6 gmt) & 21.4% & 33.9% copper
Barrow Creek Properties:Prospect D (Cu, Ni, Au, Ag) • 1972, 11 diamond drill holes along a 2 km strike length to a depth of 300 ft. indicated probable resource of: Tonnage Copper Nickel Width Oxide 1,633,600 0.512% 0.151% 30’ Sulphide 1,530,200 0.621% 0.247% 28’ • Drill intersections as high as 1.48% Copper, 0.48% Nickel, 215 grams silver & 5.8 grams Gold over 16.9 ft. at shallow depth (hole 7) • Gold & Silver values not given for most of 1972 drill results but a mining operation would produce Gold & Silver as well as Copper & Nickel
Barrow Creek Properties:Prospect D “A”(Oxidised Area) • Results of Airtrac percussion dill holes in 1972 showed: Line 93’ W (A) surface to 103 feet 2.44% Cu 0.41% Ni Line Zero (B) 96 feet 3.43% Cu 0.91% Ni Line Zero (C) 54 feet 5.77% Cu 0.21% Ni Line 100’ E (D) 96 feet 3.32% Cu 0.11% Ni Includes 6 feet (52 to 58 feet of 23.0% Cu 0.21% Ni
Hill EndNSW, AUSTRALIA (Au) • Gold license #5801 covers 4.626 hectares (11 acres) & is valid till Dec. 2022 • Gold license #5809 covers 3.42 hectares (9 acres) & is valid till Dec. 2022 • Dredging license #1231 covers 40.44 hectares (90 acres), due for renewal in 2004 for 21 years • Hill End is the richest gold field, per ton of ore crushed, in history, with the average grade recovered over 30 oz per ton. • 639 lb Gold Nugget (world’s largest) mined at Hill End in 1872 • 1997 production at Golden Gully produced 2 oz/ton at a depth of 190 feet along a 240 foot section of one 10” wide gold bearing reef. Mining ceased when miners broke into old workings • There is a total of 11 gold bearing reefs in this saddle reef formation • Past mining restricted to a depth of 250’ due to water flows which today are no problem • Gold reefs are known to extend to at least 1500’
Hill End Cont’dNSW, AUSTRALIA (Au) Production Plan: • Sink a decline or vertical shaft initially to 600 ft. vertical • This will allow access to all 11 gold bearing reefs • Production target 200 tons per day for 400 ounces of gold • This will increase periodically due to patches of bonanza grade gold values (ie. Up to 20 ounces per ton in Cosmopolitan shaft – 1872 mine manager’s report)
Hill End OwnershipNSW, AUSTRALIA (Au) • Leases owned 70% by Silver Orchid Pty Ltd, a private company registered in NSW, Australia • Goldstake owns 20% of shares in Silver Orchid & has no obligation to contribute funds to Hill End • Goldstake has an opportunity to increase ownership of leases at Hill End to 50% • First Tiffany Resources Corp., a Canadian public company, owns 20% interest (carried to feasibility) in the leases • Clarence Fowler, the original lease vendor, has a 10% interest in the leases • Robert Cleaver (Goldstake President) & Charles McAlpine (Director/Secretary) own 40% interest in Silver Orchid • Agreement that all funds contributed by all or any of the shareholders will be reimbursed from gold production revenue
Whitewood CreekSouth Dakota, USA (Gold tailings) • Proven/probable reserves of 729,000 (Goldstake owns over 250,000) with recovery costs of less than $100/ounce • Requires Barrick Gold participation • Possible 2 million ounces of gold in this project owned by Barrick and Goldstake • Ownership Details • Goldstake owns 100% of its properties • Strawberry Hills Mining Inc. has a 20% interest/net profits once a positive feasibility study completed • Strawberry must contribute to ongoing costs • No director of Goldstake owns shares in Strawberry • Strawberry is controlled by a local South Dakota prospector named Maurice Hoffman who brought the Whitewood Creek project to Goldstake in 1986
Whitewood Creek Map PLANT RECOVERY SITE TAILINGS REPOSITORY
Section 3: Exploration Targets Goldstake has identified 4 exploration targets: Barrow Creek Properties - NT, Australia Mulbangas Barrow Creek Copper Anomaly Utopia - NT, Australia Hemlo - Ontario, Canada
MULBANGAS (Cu) • Is a surface copper outcrop in Northern Territory, Australia • Part of a mineralized strike line of approximately 40 km North to South • Ownership Details • Same as Barrow Creek
Barrow Creek Copper Anomaly (Cu) • This magnetic anomaly was identified by an induced polarization survey conducted by the NT Government Survey • Ownership Details: • Same as Barrow Creek
UtopiaNT, Australia (Ta, Sn) • Located 300 km north of Alice Springs • Exploration License #23187 covers 1,800 square km • Tantalum/Tin mineralised layered pegmatite over 5 km long and 140 M wide on surface • Assays of up to 2 pounds tin (Sn) & 1 lb. Tantalite (Ta)
HemloOntario, Canada (Au) • 104 acre property adjacent to and north-east of the Hemlo David Bell gold mine which is now owned by Barrick gold • Mining is approaching west side of the Goldstake property • Geological evidence suggests that Hemlo ore body dips to north and does extend into Goldstake properties Ownership Details • 50% Goldstake • 50% Bernard Boos, Vancouver based businessman who was controlling shareholder in Seemar Mines • Goldstake/B. Boos own surface rights to Hemlo & pay provincial rent under 3 patented leases (approximately $120.00 per annum)
Project Priorities(In Order of Importance) 1) Home of Bullion (NT, Australia) • Develop further ore reserves on ore body. • Dimensions 550’ x 15’ x660’ x2.8sg. • Mine 500 thousand tons (approx.) whilst developing further reserves • Total anomaly length is over 5,000 feet • Cost to feasibility, $3 million Australian 2) Hill End (NSW, Australia) • Access all 11 gold bearing reefs at Golden Gully Hill End initially to 600 feet • Mine 200 TPD for 400 ounces O.P.D. at a cash cost of approximately $80 Australian per ounce • Gold price in Australian dollars is $580 per ounce • Cost to feasibility, $3 million Australian cont’d
Project Priorities(In Order of Importance Cont’d) 3) Prospects D and D “A” (NT, Aus.) • Define ore reserves on Prospect D and D “A”. • Prospect D “A” could be mined by open cut from surface on high grade oxidised copper nickel to expose the underlying massive sulphide ore body (Prospect D) • Cost to feasibility, Prospect D $3 million Australian • Cost to feasibility, Prospect D “A” $1 million Australian 4) Whitewood Creek • Reinstate joint venture with Barrick to carry out original terms of Homestake agreement to develop and mine tailings • Or, lease the Barrick properties & Goldstake would mine the tailings for a cost of less than $100 US per ounce • Cost to feasibility, $2 million US
Appendix 1Share Structure • Issued shares 45, 860,660 • Outstanding options exercisable up to Dec 31 2004 – 3,390,000 • Float – approx. – 22,000,000