Authorised and Regulated by the Financial Services Authority
2Date: 15 Oct 2009
Focused exploration strategy on the Timmins Gold Camp.
Test the deeper levels at Timmins Porcupine West.
Follow up drilling at PG
Establish new drill targets at Eastford Lake.
Raise development funding via warrant exercise and private placement.Property Visit Report
Following a recent property visit, I conclude that ExplorResources (EXS-V) has the potential to join the historiclegendary mining companies in the AGB. The gold reservepotential of the recently acquired
Timmins PorcupineWest Gold Project (TPW),
properties comprise a portfolio morecommonly owned by the majors. The company deserves tobe compared to its immediate neighbours to the west,because the TPW property appears to overlay a goldporphyry significantly larger than that being developed byLakeshore Gold and West Timmins Mining.EXS has a dominant land position along the AbitibiGreenstone Belt
, a geologic phenomenon which hasproduced over 180,000,000 ounces of gold since 1910, andcentred around the mining town of Timmins, Ontario. Thereis strong evidence that this extraordinary production historywill continue for many years yet due to the discovery of awhole new gold bearing
at depth west of theMattagami River fault (see Map - Appendix 1) by LakeshoreGold and West Timmins Mining. Lakeshore is in the processof commissioning the West Timmins Mine project via theacquisition of Holmer Gold Mines. Reserves are stated as830,000 ozs (probable). This 1,000 tonne/day project hasan IRR of 38% at $600/gold. The mine is due to come onstream in Q1 2010.EXPLOR Resources has a number of 100% owned propertiesalong the AGB. The most prospective in my view, on thebasis of historic work on the property and the potentialindicated by 130 drill holes, is the 100% owned TimminsPorcupine West property. This property immediately adjoinsthe West Timmins Mining claims and runs north easterly toand beyond the influential Mattagami River Fault. This1,900 ha gold property appears to immediately overlay thedeeper discoveries to the west of Lakeshore and WestTimmins.The Timmins Porcupine West claims were extensively drilledby a number of mining companies in the past down to the400 metre level. In 1984, Dome Exploration discovered anddelineated a gold mineralized zone approximately 350metres long, 45 metres wide, and open below 350 metresof vertical depth. This zone strikes east northeast and dipsto the north at 70 to 70 degrees. The gold mineralization todate appears to be associated with a major deep seatedporphyry unit. It is now evident, from the work carried outby Lakeshore and West Timmins that the main target willprobably be found below the 600 metre level. It will be theaim of EXPLOR management, an experienced team of geologists and engineers, to drill for this deeper target inthe upcoming months as a priority. Two large Marcotte drillswith the capacity to drill 2,500m holes have been readiedon site with work due to start imminently.On September 11
, the Company put out a news releaseexplaining the geologic model pertaining to the TimminsPorcupine West property
that is generally known as „The
Coniaurum System‟, a system that has
produced over 30 million ounces of gold to date. Therelease
details aspects of Explor‟s modelling, specifically the
association of gold mineralization with Quartz feldspar (QFP)and syenite porphyry, found at both the Lakeshore andWest Timmins Properties. Because so much is known aboutwhere and how the great discoveries along the AGB havebeen made, Explor is able to state that the initial drill targetwill be the intersections of the major (splay) faults and thecontacts of the favourable high Fe-tholeitic volcanic hostrocks especially near the synclinal fold hinge.As Cameco, that owned the property for seven years, wrotein an internal report in 2005:
The (drill results) althoughnot economic so far, are indicative of a large gold system.The mineralization occurs along a major deformationcorridor traced by drilling for more than two kms alongstrike, up to 1.5 kms wide and more than 600 metresdeep
. Further corroboration of the depth target.
Explor owns a 100% interest in two other properties to theeast of the AGB, Eastford Lake, where hole 7 intercepted
12.2m of 16.6 g/t
in association with a large porphyrystructure and PG 101 where hole 2 intercepted
3m of 52 g/t
located less than 2 kms from the Holt McDermott Minewhich contained 2.01m ounces of gold.Also: The Kidd South Property (a large land positionadjacent to the Kidd Creek Massive Sulphide Cu/Zn/Pb/Agproperty) and a large land position in East Bay, Quebecsurrounding the recent discovery by Clifton Star of a largegold bearing zone including a drill intercept of 11.8m of 12.2 g/t.I conclude that the valuation of Explor, currently trading ina tight range on good volumes, is poised to move stronglyahead on any encouraging news from the upcoming drillprogrammes at PG -101, Eastford Lake and in due course,Timmins Porcupine West.