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October 30, 2014 --- Vol. 08, No. 44October 2014

British Columbia

SILVER – Brixton Metals Corp. Oct. 29 reported a maiden inferred resource of 21.5 million silver-equivalent ounces at its Thorn project in northwestern British Columbia. “We are excited to have completed our first resource estimate at the Thorn project,” said Brixton Chairman and CEO Gary Thompson. This inferred resource is based on limited drilling and importantly, all mineralized zones remain open for expansion.” The resource model is based on 35 historical drill holes and 64 recent holes completed by Brixton. Of the total drilling, 11,000 meters was directed to the Oban deposit, 2,160 meters was within the Talisker Zone and 2,000 meters in the Glenfiddich Zone. SRK states in conclusion “that the Thorn Project has future potential for developing additional mineral resources. A careful drill program could identify additional inferred mineral resources and possibly upgrade some of the inferred resources to an indicated category.” SRK recommends further drilling of all three zones and metallurgical testing of all zones with a focus on Oban. Thompson said, “The company currently has approximately C$1.2 million in working capital.”

GOLD – Skeena Resources Ltd. Oct. 29 reported the completion of nine diamond drill holes for about 2,000 meters on its Spectrum gold project in northwest British Columbia. All of the holes, drilled from four separate platforms, were directed at investigating continuity to depth along the Central zone occurrence, by a series of intercepts averaging 50 meters beneath historic intersections. Skeena said the program was augmented by limited prospecting, in-fill soil geochemical sampling and re-sampling mineralized intervals from the historic diamond drill core on site.

On Oct. 27, Skeena Resources also reported that it had completed the purchase of the Spectrum gold-copper property from Eilat Exploration Ltd. and Keewatin Consultants (2002) Inc. Skeena acquired a 100 percent interest in Spectrum in exchange for the issuance of 80 million common shares of the company, of which 64 million shares were issued to Eilat and 16 million to Keewatin, together with an interest free promissory note payable to Eilat in the amount of C$700,000. In connection with closing the purchase of Spectrum, Skeena closed a private placement, raising C$2,550,295 through the issuance of 40,397,000 units consisting of 25,295,000 units at C6.5 cents per unit, consisting of one flow-through common share and one non-flow through warrant; and 15,102,000 units at C6 cents per unit, consisting of one non-flow-through common share and one warrant. Each warrant is exercisable by the holder thereof to purchase one common share at C10 cents for a period of two years from the date of issuance. The proceeds of the financing will be used to pay for the costs related to the acquisition, for an exploration program on the Spectrum property and for working capital. A finder’s fee consisting of C$77,372 and 1,218,268 broker warrants, exercisable for a period of 12 months at a price of C10 cents per common share, was paid to four finders in connection with the closing of the private placement.

GOLD – Banks Island Gold Ltd. Oct. 24 provided an update on mining and processing at the Yellow Giant gold project. During mining of the T30 level of the Tel Central zone, company geologists noted unusual amounts of micro-crystalline quartz breccia within the mineralized vein. This rock type, which has been provisionally named “jasperoid” makes up the eastern third of the Central Zone between T20 and T30 levels. Jasperoid encountered is commonly stained red from hematite but can also be stained dark grey to black color from galena and argentite. Jasperoid has a modest specific gravity (~2.75 t/m3), which makes the pre-concentration of this material by dense media separation difficult. Assays from this material ranged from 29 grams per metric ton gold to 214 g/t gold. Jasperoid with black staining shows high silver values, which assayed up to 1,490 g/t silver. Banks Island says the majority of jasperoid samples contain low sulfur, which suggests that gold is present as free grains of electrum or native gold. Company engineers are studying the best method to mine and process this material from T30 Central. This material will likely be processed directly through the grinding and flotation sections of the mill with gold recovered by the Falcon Concentrator and by flotation. In this case the company would process Bob and Tel Main mineralization through the dense media separation plant and Tel Central mineralization direct fed into the grinding circuit. Company geologists are studying the implications of the jasperoid style mineralization on the geological model and exploration plans for the Tel area. At present Banks Island is processing mineralization from the upper Bob zone. Mine crews are completing a fourth draw-point at present to extract the remaining ore and once complete will prepare this stope for backfilling.

SHAREHOLDER RIGHTS – Homestake Resource Corp. Oct. 24 reported that the shareholders have approved a shareholder rights plan at its annual general meeting held Oct. 22. The shareholder rights plan was adopted to ensure the fair treatment of all Homestake shareholders in the event of an unsolicited takeover bid for the outstanding common shares of Homestake. In the event that a takeover bid should occur, the shareholder rights plan provides a mechanism to ensure that shareholders have adequate time to properly evaluate and assess it without facing undue pressure or coercion. The shareholder rights plan also provides the board of directors with additional time to consider any takeover bid and, if applicable, to explore alternative transactions in order to maximize shareholder value. Accordingly, the shareholder rights plan is not designed to prevent takeover bids that treat the company’s shareholders fairly. A copy of the shareholder rights plan agreement will be available under Homestake’s profile on SEDAR at www.sedar.com. Reference should be made to the full text of the plan for the details of its provisions. The shareholder rights plan has received TSX Venture Exchange acceptance.

TAILINGS BREACH – Imperial Metals Corp. Oc. 22 provided an update on the recovery efforts related to the Aug. 4 tailings impoundment breach at its Mount Polley mine. The initial response and recovery phase has been substantially completed, and crews have begun rehabilitation and restoration activities. The initial response to the tailings impoundment breach included a program to secure the remaining tailings within the impoundment, reduce the water level in Polley Lake, and clean up woody debris deposited in Quesnel Lake. These recovery efforts and related safety issues, which are now largely complete, were required to be conducted prior to Imperial proceeding with the rehabilitation and restoration phase. Where possible, Imperial initiated some restoration work concurrent to the recovery efforts. The Mount Polley environmental monitoring program has been ongoing since the tailings impoundment breach. The data collection program includes water chemistry at sampling stations at multiple water depths in Quesnel Lake, and has confirmed the water is safe to drink and is not toxic to aquatic life. Water quality information has been communicated to the local community and stakeholders on a regular basis. The program also includes geochemical, physical limnology and biological testing. This program will continue for the foreseeable future. Geotechnical work is currently underway to determine the root cause of the tailings impoundment breach. This work program includes mapping, geophysical surveys, drilling, test pitting and testing and analysis of samples from these field activities. The data collection phase of the review is expected to continue until mid-November. The government-appointed panel is to deliver a report on their findings by Jan. 31, 2015. Imperial has assembled a group of experts with global experience to carry out a program of rehabilitation and restoration in the areas affected by the breach. Hazeltine Creek: The Gavin Lake Road and Ditch Road bridges over Hazeltine Creek have both been repaired. Rehabilitation of Hazeltine Creek will include reconstruction of the channel, and restoration of riparian habitat along the creek banks. Construction of a set of sedimentation ponds has commenced in the lower reaches of Hazeltine Creek to remove suspended solids from the water before it enters into Quesnel Lake. A re-vegetation program will be implemented to re-establish a productive ecosystem, and for water management in order to control sedimentation. An initial seeding of fast germinating grasses was completed on all exposed areas in Hazeltine Creek. The rehabilitation will include the establishment of spawning and rearing habitat for fish.


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