Silver Hope Property

In 2006, Finlay Minerals Ltd. purchased a 100% interest in the Silver Hope Property, subject to a 1.5% NSR. This strategic acquisition is immediately south of the past producing Equity Silver Mine (33,800,000 tonnes @ 0.4% copper, 64.7g/t silver, and 0.46g/t gold). The Equity Mine produced over 68 million ounces of silver by open pit and underground mining and was for a time the largest silver producer in the province. Finlay’s decision to acquire the Silver Hope property was spurred by the potential to discover silver-copper-gold mineralization capable of hosting 50 million ounce silver targets along known prospective stratigraphy.

Prior exploration efforts on the Silver Hope property identified three zones of near-surface bulk tonnage copper-silver mineralization with deeper, higher grade silver-copper zones along a two kilometer strike length of the prospective stratigraphy.

At present day silver prices of ~$16US per ounce and copper prices of ~$2.70US per pound, deep mineralization on the Silver Hope property is of economic significance. An example that demonstrates this potential is a 1986 drill hole in the Hope Zone (X86CH-262) that intersected a 3.0 metre core length containing 1030g/t silver and 0.91% copper. In 2004, hole 04SH-06 yielded an intersection of 637g/t silver and 4.1% copper over 2.4 meters.

Section 4400 Click on the picture to see a larger version.

Section 4788 Click on the picture to see a larger version.

Section 5800 Click on the picture to see a larger version.

Section 6323 Click on the picture to see a larger version.

Based on these historic results, Finlay Minerals exploration strategy was to re-evaluate the prospective stratigraphy using modern geophysical and geochemical methods, along with an enhanced ability to review the data using 3-D compilation techniques.

Since 2006, Finlay has conducted geophysical surveys in 2007 and 2008 that included 30 km of magnetic, induced polarization (IP), and gravity surveys. The same grid was soil sampled in 2008. A four hole drill program was completed by Finlay on the Hope Zone in 2007. A drilling highlight was a 9.35 metre (6.55 m TW (true width)) intersection in SH07-02 grading 333g/t silver, and 0.69% copper which included 4.0 m (2.8 m TW) containing 547g/t silver and 1.06% copper.

The results from these surveys combined with regional geological mapping by Dani Alldrick (B.C. Geological Survey, 2007) and a regional airborne geophysical survey (2008) have been compiled into a 3-D model. Together this data exquisitely shows the correlation of the geophysics, geochemistry and drilling with the three known zones on the Silver Hope property as well as linking the Equity Silver Mines deposits into the same four kilometer long north-south mineralized corridor (“Main Horizon”).

Finlay’s exploration efforts along with the regional mapping by the BCGS have identified a new and potentially mineralized north-south horizon a kilometer east of the Main horizon. The “East Horizon” has so far been traced by geological mapping as a rhyolite unit with an associated two kilometer IP anomaly, and anomalous soil geochemistry. This is very significant as the East Horizon area has not been drilled.

Adjacent to the Main horizon Finlay has discerned a third IP target named the “West Horizon”. Like the East Horizon, the West Horizon has not been drill tested.

Future work by Finlay Minerals will continue to fill-in drill, define mineral resources along the Main Horizon, and commence further detailed trenching and subsequent core drilling on the West and East Horizons. The results of the Silver Hope property modeling can be reviewed in the 2009 Finlay Minerals Ltd presentation.

Drill hole location plan Click on the picture to see a larger version.

Drill hole location plan Click on the picture to see a larger version.