Preliminary 2007 Moonlight Project Progress Report
A total of 2322.7m were drilled in 32 HQ core holes at the Engels prospect on the Moonlight Project as of 17 Dec. 07. In spite of difficult drilling conditions, excellent core recovery was achieved. However, many holes had to be abandoned in “potentially ore grade mineralization” due to difficult drilling conditions associated with old mine workings. Assay results to date are summarized below. Assays are pending on core holes 07E-20 through 07E-32.
250 3m long channel samples were taken from surface trenches. These samples show very consistent plus 0.5% Cu mineralization at the surface. Once the assays are finalized, widths and grades will be reported for the surface sampling. In addition, the #3 Level of the Engels Mine was reopened and the accessible portion was continuously channel sampled. These 20 3m long channel samples averaged 2.0% Cu. The grades encountered to date suggest that the Engels deposit has very good potential to be a low cost copper producer from a heap leach SX-EW operation. Sufficient data should be available to calculate an initial 43-101 compliant resource in early 2008.
Preliminary mapping and drill hole logging suggest the Engels deposit has an irregular pipe-like configuration. Although drilling suggests that the limits to potentially economic mineralization may have been found towards the east, the deposit remains completely open for expansion to the north, west and south and to depth.
Bulk samples have been gathered for metallurgical testing. Next year’s exploration should expand the resource and yield enough data to complete a feasibility study at the Engels.
A total of 1410 ft or 430 meters of reverse circulation drilling in 15 holes were completed on the Moonlight prospect. Assays are pending on all of this drilling. This drilling targeted the upper portion of the potential oxide resource at Moonlight, where Placer Dome Inc’s historical drilling had zero recovery. Sheffield’s 2005 and 2006 HQ core drilling indicated that this near surface material often contained plus 0.25% Cu. This suggests that that historical oxide copper resource can be expanded at Moonlight and the stripping ratio could be much less than 1:1. Sheffield’s 2007 reverse circulation drilling recovered apparently mineralized samples starting at the surface in twin holes adjacent to Placer’s holes which showed zero core recovery for the first 10-60’. A more complete discussion will be made once assays are complete.
Bulk samples have also been collected of oxide mineralization at Moonlight.
Water quality monitoring is ongoing and continues to indicate that water quality will not be a problem on the Moonlight project.
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JUNE 15 2007 
