Blue Caribou Property

The Blue Caribou exploration project is owned and operated by Skybridge, a wholly-owned subsidiary of Mega Precious Metals Inc. and is located 480 km northeast of Yellowknife, Nunavut. Access is via charter fixed-wing aircraft operating out of Yellowknife and in the summer season float-equipped aircraft can land on Beechey Lake in the northeast corner of the property otherwise, travel on the property is by helicopter.

The property consists of 25 staked mineral claims configured in a contiguous rectangular block totaling 25,605.9 hectares (63,271.3 acres). Nunavut Tunngavik Incorporated (NTI) has assigned the Kitikmeot Inuit Association as the Designated Inuit Organization (DIO) to hold title to the surface of Inuit Owned Lands in the East and West Kitikmeot land use regions of Nunavut pursuant to the Nunavut Land Claims Agreement.

Skybridge conducted a drill program on the Blue Caribou Property situated in Nunavut between May 28, 2008 and August 21, 2008. The program was comprised of 37 diamond drill holes, from 19 drill set-ups, totaling 3614.8m of coring on two exploration targets. Of those, 2790.8m in 33 holes were completed on the Blue Caribou Copper Zone formerly referred to as the IRA copper showing. The remaining 824m in 4 drill holes was completed on the Blue Caribou Deformation Zone host of the Echo Bay North and Echo Bay South Gold Occurrences. One hole (BC0812) on the Copper Zone was aborted prior to intersecting the mineralized structure. This program is the first documented diamond drilling in the project area.

The main exploration concept was an initial drill test of grade and continuity of the Blue Caribou Copper Zone (formerly referred to as the IRA Showing) and reconnaissance evaluation of the Blue Caribou Deformation Zone (formerly referred to as the Echo Bay North and Echo Bay South occurrences) with a helicopter-supported diamond drill program. Property exploration activities in 2008 included prospecting on the Blue Caribou Copper Zone and the Blue Caribou Deformation Zone for gold. Exploration was conducted on several AEM targets with the establishment of two exploration survey grids, two horizontal loop EM (HLEM) geophysical surveys and two soil geochemical surveys. Other work included the staking of two additional mineral claims, petrographic analysis of the copper and gold alteration systems and modeling the mineralized zone(s) to guide additional exploration.

The Exploration Drill Program successfully delineated an estimated Inferred Mineral Resource of 2.77 million tonnes at weighted average grades of 2.82% copper, 0.06% molybdenum, 31.26 g/t silver and 0.20 g/t gold using a 1% cut-off grade for copper and a minimum true width of 2m. The resource was manually calculated using a longitudinal block section method which was verified by a Polygonal and Interpolated block method using “BORSURV” software. At a lower cut-off grade of 0.1% Cu, the Copper Zone totals 6.90 million tonnes of 1.43% copper, 0.03% molybdenum, 16.34 g/t silver and 0.11 g/t gold. “Mineral resources that are not mineral reserves do not have demonstrated economic viability” (NI-43-101 resource definitions).

The Zone was drill tested over 940m of strike length between local grid section L-370E (Holes BC0818, BC0819) and L-1280E (Holes BC0804 and BC0805) measured from collar to collar. The Copper Zone was intersected in drilling to a down dip depth of 450m on section L-880E (in holes BC0824, BC0826 and BC0825), and to 210m on L-1200E projected 40m beyond deepest intersection (L-1200E in holes BC0801, BC0802, BC0803, BC0827, BC0828). The 2008 exploration drill program utilized 80 to 160 metre section drill spacing to confirm the grade and continuity of the Blue Caribou Copper Zone.

The deepest intersection on the Zone, at a vertical depth of approximately 100m in diamond drill hole BC0828, grades 4.35% copper over a true width of 3.6 meters and is currently the highest grade composite intercept in the resource. Based on this, and the location of the other higher grade holes in the zone, it is reasonable to postulate that the grade of the deposit could improve with depth. There also appears to be a trend towards higher gold grades to the west and higher grade silver grades to the east. At this time there is no obvious correlation between copper and molybdenum grades.

Three late-stage right and left lateral faults trending north-south appear to internally offset the zone. The eastern-most north-30°-east trending right-lateral fault truncates the mineralization at the eastern end of the system. These faults bound the subzones which consist of the West “Trench”, Central “Rotated” and East “Legs-Elbow” Subzones. The late stage, north-30o-east trending right-lateral fault appears to truncate the mineralization at the eastern end of the system (“Legs-Elbow” Subzone). The Copper Zone may pinch out to the west and appears open at depth.

A significant expansion of the current Zone and / or the potential to discover additional deposits in the area continue to make the Blue Caribou Copper Zone a promising exploration target and a great project.