Favourable Lake Project
northwestern Ontario, Canada
Overview The Company acquired 100% interest in the Favourable Lake; silver-gold-base metal property in August 2005. The property is approximately 120 miles (200 km) north of Red Lake, Ontario and consists of 428 individual claim units covering roughly 17,120 acres in the highly mineralized Favourable Lake Greenstone Belt. Effective April 2009, Shoreham Resources Ltd. ("Shoreham") exercised their option to acquire a 60% undivided interest in Gold Canyon Resources' Favourable Lake Property, pursuant to a mineral property option agreement between Gold Canyon and Shoreham dated December 22, 2005. Shoreham acquired its interest by paying Gold Canyon a total of $50,000 in cash, issuing an aggregate of 1,000,000 common shares in the capital of Shoreham to Gold Canyon and incurring expenditures in the aggregate of $1,000,000 on the Favourable Lake property over the last four years. Each of Gold Canyon and Shoreham have formed a joint venture on terms set out in the joint venture agreement between Gold Canyon and Shoreham, dated April 20, 2009, with respective joint venture interests equal to the initial interest of each party in the Favourable Lake property, subject to adjustment in accordance with the terms of the joint venture. Shoreham shall act as the initial operator and the two entities will form a management committee of three persons to oversee future exploration and development on the Favourable Lake property. These claims cover two, apparently parallel mineralized zones. One zone is dominated by silver, gold, copper, zinc, and lead mineralization and is hosted in sheared and sulfidized sediments, while the second zone, roughly one kilometre to the southwest is dominated by molybdenum hosted in garnitiferous granitic intrusives on the north side of the Bear Head Fault. Between 1964 and 1986, Noranda, Massive Energy, and others conducted exploration on a small tract at the north-western end of Zone 1. This work consisted of ground and airborne geophysics and shallow diamond drilling, limited to within 300 feet of the surface. Grab samples nearly five kilometres southest of the area historically explored, and on trend, are tabulated below. The silver rich zone area (Zone 1 table) have returned highly anomalous values with some surface samples yielding up to 191 ounces of silver per ton, and greater than 1% copper, zinc and lead each. Grab samples from the molybdenum zone (Zone 2 table) have yielded values up to 1% Molybdenum Disulfide (MoS2). Zone 1 (Silver Zone)
Zone 2 (Molybdenum zone)
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