XY Zone

The XY zone consists of several subzones that include the XY Nose, XY Central and XY West; of particular interest is the extension down dip into the core of the syncline, of the higher grade mineralization defined at depth in the XY Central deposit in the 2006 and 2007 drilling. To the 137 historical drill holes, Selwyn has added 6 new holes in 2005, 46 new holes in 2006, and 106 holes in 2007 expanding the zone significantly to the current NI 43-101 compliant mineral resource of 44.45 million tonnes of Indicated resources grading 6.17% zinc and 2.64% lead; which form the basis of a large open pit in the current development plan, and potential high grade underground mineral resources. In addition there is a NI 43-101 compliant Inferred mineral resource of 45.94 million tonnes grading 4.20% zinc and 1.32% lead in the XY Central deposit, and 7.32 million tonnes of Inferred mineral resources grading 4.08% zinc and 2.20% lead in the XY Nose zone that remains open for expansion.

Southeast portion of the Selwyn Project

Drilling and underground development work by Placer led to development of an underground Inferred mineral resource of 8.1 Million tonnes grading 10.6% zinc and 5.5% lead. Drilling in 2006 expanded the known area of higher grade mineralization to an area of 1000 by 600 metres, which appears open to depth and along strike to the northwest.

The following schematic cross-section illustrates the location of the open pit and the location of numerous of the new higher grade mineralized intercepts beneath the open pit at XY Central zone.

Schematic Cross-section of 2006 XY Deep Drilling