The Company has completed its due diligence on the Cueva Blanca Gold Property which it has the option to earn
a 60% interest, subject to a 1.5% net smelter return royalty from St. Elis Mines Ltd. The property is expected to
hold high-grade epithermal gold/silver vein prospects. The Cueva Blanca Gold property is spread across 1,200
hectares and is located in the Lambayeque Department in northern Peru along the same geological trend as a
number of multi-million ounce deposits including Yanacocha, Pierina and Lagunas Norte.
Historical exploration work on the Cruz vein system, which included 91 trenches and 18 drill holes totaling 1,860
metres, proved that the quartz veins consistently contain gold and silver and that the Cruz vein system is a classic
epithermal gold-silver deposit. Historical results of gold assays from the Cruz vein drill program include 6.0m of
2.31 g/t, 6.0m of 2.96g/t (including 1.75m of 7.45 g/t), 1.5 m of 22.68 g/t; 9.5m of 8.09 g/t (including 1.5m of
35.84 g/t); 10.8m of 2.4 g/t and 1.2m of 6.95g/t. The vein intersections contain virtually no sulfides. The vein
system is open along strike to the SE and NW, and to depth. (Source: Summary Report, Sivertz, 1999.)
An internal summary report completed for St. Elias by Sivertz indicated an inferred resource of up to 190,000
ounces of gold and 945,000 ounces of silver on the property, to a depth of 100m. Using current gold and silver
prices, this inferred resource has a value of over $225 million. While the company has no reason to doubt the
accuracy of the historical results, the data should not be relied upon until confirmed by the Company's own
exploration that meets NI 43-101 standards for disclosure. Historical results and the work that generated them
predate the enactment of National Instrument 43-101 and accordingly may not meet the requirements of that
policy.
http://www.grassrootsrd.com/grassrootsrd/Reports/Amarok_Resources_07_23_2010.pdf
