U.S. REPORT (January 13, 1992)

The final six holes of the 1991 drilling program on the Rosebud joint venture in Nevada were released by 51-49 partners LAC Minerals (TSE) and Equinox Resources (TSE).

The drilling included infill and stepout holes on the East zone as well as drilling on the Dozer Hill zone, about 1,000 ft. to the west. Hole 220 — drilled about 250 ft. south of hole 217 which cut 180 ft. grading 0.12 oz. gold — intersected 20 ft. from 250 ft. to 270 ft. at an average grade of 0.75 oz. gold and 9.0 oz. silver per ton. Holes 245 to 248, which were drilled as stepouts to the south and east of drilling in the East zone, intersected low-grade gold values.

Hole 247, drilled in the Dozer Hill zone, intersected 25 ft. of 0.20 oz. gold and 3.0 oz. silver from 350 ft. to 375 ft. plus an additional 30-ft. section from 460 ft. to 490 ft. grading 0.18 oz. gold and 0.4 oz. silver. LAC has proposed a 13,000-ft. drilling program to begin shortly, focusing on expanding reserves in the East zone.

A reserve estimate for the East zone was not released, although reserves for the Dozer Hill zone were last estimated at 5.2 million tons grading 0.12 oz. gold at a 0.02-oz. cutoff, or 2.3 million tons grading 0.23 oz. gold at a 0.05-oz. cutoff.

LAC’s proposed program will also include additional metallurgy, permitting studies, as well as the preparation for an underground exploration program and feasibility study starting in the late spring.