Exploration

Metalex_World_Projects600

Metalex’s projects in Canada are the James Bay Lowlands “Ring of Fire”, Attawapiskat, Kyle Lake, Wawa
and the Quebec Projects. Its overseas projects are located in Angola, Greenland, Mali and Morocco.

JAMES BAY LOWLANDS
The James Bay Lowlands properties are strategically located on and around the “Ring of Fire” and cover
approximately 36 square kilometres (8,944 acres of ground). To see a map of these claims, click here.
There are 33 high priority Volcanic Massive Sulphide drill ready targets that have been identified and staked.

The Company entered into a Letter of Intent,(“LOI”), with WSR Gold, (“WSR”) pursuant to which WSR has been granted the option to acquire up to a 50% interest in these claims. Under the terms of the Letter of Intent, WSR has the right to earn up to a 50% interest in the project by funding up to CDN$20.0 million in expenditures on the Property over a 4 year period. For each CDN$5.0 million in expenditures, WSR will acquire a 12.5% interest in the Property, up to a maximum 50% interest.

ATTAWAPISKAT
The Attawapiskat Project comprises a claimed area of approximately 304 km² in the vicinity of De Beers' Victor diamond deposit. De Beers have indicated Victor will have a mine life of 12 years at a production of 2.5 million tons per year. It is thought that Victor has a grade of about 25ct/100 tons and an average diamond value of about US$300/ct. Metalex has discovered several unexplained glacial trains of diamond indicator minerals within 10 km of Victor.

The diamond indicator minerals have diamond inclusion chemistry typical of that found in commercial diamond deposits. These grains are fresh and angular, which is consistent with the grains being derived from nearby undiscovered diamondiferous kimberlites.

The Company plans on continuing a systematic exploration program of power auger testing and core drilling to find the sources of these diamond indicator minerals.

To date more than C$9 million has been spent on the Attawapiskat Project. Metalex's interest is 60% in an area of 210 km² and 50% in an area of 94km²

KYLE LAKE
The Kyle Lake Diamond Project is located approximately 100 km west of the Attawapiskat Project in an area where five kimberlitic pipes, two of which are significantly diamond bearing, were discovered in the 1990's. These kimberlitic pipes were discovered by drill testing anomalies identified from an aeromagnetic survey flown in the early 1990's.

Metalex has recently flown an expanded aeromagnetic survey using greatly improved techniques over an area of 14,500 km². Interpretation of this data yielded more that 500 aeromagnetic anomalies of which 118 are classified as high priority. Twenty-four anomalies have been tested by core drilling and a diamondiferous kimberlite, T1, was found at 136 meters depth. A total of 35 diamonds, of which 7 are macrodiamonds, were recovered from 48 kg of 35 mm drill core taken from T1. For such a small diameter drill core the size and quality of the recovered diamonds is a most encouraging result. Larger diameter drilling, aimed at collecting a minibulk sample of 3,000 to 5,000 kg of kimberlite for diamond testing is currently in progress with the first hole and second holes currently being processed in the CF Mineral Research Laboratory. Drill testing the remaining anomalies is ongoing. Metalex has a 92.5% interest in the Kyle Project.

The Kyle Project has the potential for discovery of additional diamond bearing kimberlites.

WAWA
The Wawa Projects covers 357 claim units immediately north and west of the recent discovery of diamond bearing rock by Dianor Resources Inc. Dianor and Metalex are jointly exploring these claims units and collectively have the right to earn 60% interest (30% each) by sole funding the first diamond deposit to bankable feasibility. Fourteen potentially diamond bearing rock and 138 alluvial samples have been collected by the project operator Metalex and these samples are being processed at the CF Minerals Laboratory in Kelowna for diamonds and diamond indicator minerals. Wawa has the potential for the early discovery of diamond bearing rock.

QUEBEC
In western Quebec, where the Company has a one third contributing interest, some 1069 drainage and loam samples have been collected and analyzed from an area of 360,000 km². Diamond indicator minerals have been found in several samples, possibly indicating undiscovered diamond bearing kimberlite deposits and samples to follow up these indicators have been collected. As western Quebec is known to contain reserves of a variety of commodities the samples were analyzed for a range of metals. Exceptionally anomalous gold and strongly anomalous copper and uranium values have been found at a number of locations not attributable to known mineralization.

The Quebec Project has the potential for the discovery of diamond bearing kimberlite pipes in the middle term. As seen from Ashton's discoveries in the Otish Mountains, Quebec does contain commercial grade kimberlites.

Metalex's metal results also indicate that Quebec has potential for the discovery of new commercial gold, copper-nickel and uranium mineralization.

GREENLAND
Metalex controls three exploration licenses in southwestern Greenland with a total area of 3,420 km² . Previous exploration has identified ten areas containing diamond indicator minerals with particularly favorable chemistry in drainage and till samples.

Microdiamonds have also been found in kimberlite float nearby. Some 518 follow up samples have been collected and two of these, located 430 meters apart on the shore of a lake, returned outstandingly strong counts of fresh diamond indicator minerals with exceptional chemistry. Future work will focus on tracing these and other diamond indicator minerals to their source rocks.

Greenland is seen as having the potential for the early discovery of high diamond grade kimberlites.

MOROCCO
The Morocco Project now covers an area of 24,804 km² of Archaean and Proterozoic rocks that has never been systematically explored for diamonds or other minerals before.

Following the initial agreement with ONHYM, some 904 drainage and loam samples have been collected over an area of 13,509 km² and diamond indicator minerals have been found in 16 of them.

Future work will focus on backtracking the positive results to their sources and the analysis of the heavy mineral concentrates for base and precious metals.

In addition the Company will conduct a diamond, base metal and gold reconnaissance exploration program over a recently granted 11,295 km² area underlain by prospective unexplored Archean craton.

ANGOLA
In Angola , the Company's Alluvial Diamond Project, the Chitamba Project, has the potential to provide early cash flow.

The Chitamba Project has an alluvial diamond license, some 3,000 km² in aerial extent, covering part of the Chitamba-Lulo kimberlite cluster and the Cucumbi and Cuango Rivers. The Chitamba-Lulo kimberlite cluster is thought to be the source area for the abundant alluvial diamonds mined from the Cuango River downstream.

For example, last year SDM, an alluvial diamond mining company, produced $106 million worth of alluvial diamonds, some 80 km downstream from the Chitamba Project, with an average value of US$200/ct.

There are unconfirmed government reports of large (up to 216 cts) and prolific alluvial diamonds (12,000 cts mined over a three week period) within or close to the Chitamba license.

The Company's interest in the Chitamba alluvial license is 51% prior to payback and 33% after payback.

The Company has a kimberlite license in Angola covering the same area as the Chitamba alluvial license. Some 11,000 line km of aeromagnetic data was purchased and more than 100 anomalies with the potential to reflect undiscovered kimberlites have been recognized.

Modeling by Canadian geophysicist Scott Hogg has been carried out on 56 of the anomalies and indicates the sources of the anomalies range between 10 meter dykes to large pipe like bodies up to 20 hectares in size.

Metalex has collected more than 90 drainage samples from the license and these samples show that two generations of kimberlite may occur within the license. A program of pitting is currently in progress and drill testing of the priority aeromagnetic anomalies is planned.