The road accessible Virgin Arm Gold Property, covering 1,047 hectares of prospective geology, is located 65 kilometers north of Gander, Newfoundland. The 42 contiguous mineral claims encompass five known gold showings and a regional gold in soil sample anomaly.

Gold mineralization, present in outcrop, has been discovered over a three kilometer long, northeast – southwest trending structural corridor. Visible gold occurs in several localities with reported historical assays as high as 99.7 and 127 grams per tonne. A compilation of known gold occurrences and anomalous gold in soil anomalies shows mineralization is present over five kilometers along this structural trend. During the 2009 due diligence visit by Company personnel, gold was panned from soils adjacent to mineralized outcrop.

The Hank showing, located several hundred meters from a paved road, contains gold mineralization in altered and strongly fractured felsic dykes and sills. The gold is associated with finely disseminated pyrite and arsenopyrite in and adjacent to quartz veins within the felsic dykes. The highest historical assays, grading 127 grams per tonne (g/t), on the property were from this showing. The gold bearing regional dykes and sills appear to have a true thickness on the order of three to four meters. The strong alteration associated with the mineralization extends into the surrounding country rock with no historic sampling ever been conducted of the altered zone. To date, no trenching or other follow up work has ever been conducted on this area.

The Homer showing, located approximately 300 meters to the southeast of the Hank showing, contains gold mineralization within strongly silicified and clay altered felsic dykes. Visible gold was panned from here during the due diligence visit. The dykes are two to four meters wide with the strong and pervasive clay alteration zone extending meters into the host metamorphic sediments. Along with gold mineralization this zone contains disseminated arsenopyrite and pyrite.

The three lesser explored showings; the Piranha, the Barney and the Kelp have returned historic gold values up several grams per tonne. The Barney showing, located at the south end of the claim block, is approximately 5 kilometers along strike from the Kelp showing at the north end of the property. The area between the two showings contains significant gold in soil anomalies that have yet to be investigated. No historic mechanical trenching or diamond drilling has been done on these occurrences.

The known mineralized zones typically exhibit strong silica and carbonate (with sericite) alteration accompanied by disseminated pyrite, arsenopyrite and rare base metals. Synvolcanic faults have acted as magma conduits for felsic dykes and sills, which have intruded into a reduced sedimentary sequence, that host much of the gold mineralization. The project geology as described bears numerous similarities to the Donlin Creek Gold deposit is Alaska which is one of the largest undeveloped gold deposits in the world.