MILDRED PEAK

Gold/Silver/Copper Targets Abound at Mildred Peak

Through its wholly-owned US subsidiary, Golden Arch Metals, Inc. Golden Arch has assembled a land position in Pima County, Arizona, approximately 85 kilometres (50 miles) southwest of Tucson. The property is comprised of a mix of State exploration permits and Federal mineral claims including an area commercially mined for approximately 36 years from the early 1880`s to 1913. Golden Arch acquired this excellent property from Altar Resource Partnership, which retains a production royalty of the lesser of a 1% NSR or a 20% NPI. An advance royalty of $20,000 USD is paid annually. All cash payments, including advance royalties and pre-production expenses, are recoverable by Golden Arch prior to NSR or NPI distributions.

The Mildred Peak property consists of four contiguous, high-priority, road-accessible, exploration areas where ten zones are targeted for further exploration, including a strong gold anomaly with gold showings over an incredible 8-kilometre (5–mile) strike length and over 1.6 kilometres (1-mile) in width. The property is almost certainly overlying a porphyritic intrusive, but it differs from other deposits in that the property hosts numerous hydrothermal veins with high grade gold and silver hosted in a Jurassic conglomerate, altered by hydrothermal fluids. Areas in the conglomerate carry disseminated low grade gold and are believed to be targets for large scale, open pit mining.

Richard D. Somerville, P.Eng., a Qualified Person under N.I. 43-101, visited Mildred Peak in the spring of 2002 and made initial observations about the property; Exploration has advanced the following targets of interest:

  • Jupiter Area: a large, low grade gold mineralized zone over 2 km long; trenching has indicated a target with an indicated grade in excess of 1.5 g Au/tonne. Results from late 2005 drilling on the Jupiter Zone returned the following assays:

     
    Intersection
    Gold
    Silver
         
    Gr/
    Gr/
    		  
    MP05-01
    including
    metres
    feet
    Tonne
    opt
    Tonne
    opt
    12.8
    42
    0.97
    0.03
    17.5
    0.51
    4.6
    15
    1.47
    0.04
    21.3
    0.62
    MP05-02
    9.14
    30
    2.32
    0.07
    10.2
    0.3
    MP05-03
    7.07
    23.2
    1.65
    0.05
    11.8
    0.34

    These drill holes were targeted immediately below the 8-metre section from a trench that returned 8 metres (26 feet) grading 2.80 grams gold/tonne (0.082 oz/ton) and 3.6 grams silver/tonne (0.98 oz/ton). All three drill holes intersected the same silicified, sulphide mineralized zone that was observed in the trench.

  • Gold Bullion Mine: a very high grade, old underground mining operation (0.50 oz Au/ton, 15 oz Ag/ton), where there is potential for extension and parallel high grade reserves; Golden Arch is trying to access quartz veins identified in 1913
  • Emmit-Elgin: two caved workings left by prospectors in the early 1900s contain highly interesting metals values, and mineralization may extend beyond the exposed 50-metre x 20-metre surface area. Assays from 18 chip samples taken by Golden Arch last year returned values ranging from a low of 0.37% to a high of 2.0% copper; a low of 15.3 gr/mt to a high of 119.0 gr/mt silver; and a low of 29 ppb to a high of 1.044 gr/mt tonne gold.
  • Copper Saddle: a mineralized area near the Emmit-Elgin target merits additional exploration
  • Chutum Via Area: high grade gold/silver showing with an unknown source
  • Cerro Prieto Area: high grade copper/silver showings scattered over a wide area
  • Bonnie Area: High grade silver/copper, east-striking, 5-20 foot thick zone dipping at about 35 degrees West; also carries significant gold, with quartz-vein float material assaying 6.6 g gr/mt Au. The float material was traced to a series of old workings
  • School Zone Area: 2 separate showings with significant copper/silver/gold values to be evaluated
  • Amado Area: a very high grade, continuous surface occurrence consisting of four zones where minimal short-hole drilling revealed extensive intrusive activity at depth.
    • Eight trenches were cut on the Michelle Zone in 2003. The 8 trenches identified gold mineralization over a length of approximately 90 metres, with an average width of 8.25 metres. The weighted average grade was 11.5 g Au/tonne.
    • Nine trenches were cut on the Rachel Zone, with one returning 6.6 g Au/tonne over a width of 14 metres. Drilling earlier this year produced the following results as reported in our March 16, 2006 news release:

      Diamond Drill Hole #

      Hole Length
      (metres)

      Assay Length
      (metres)

      Assay Length
      (feet)

      Gold Grade
      (gm/mt)

      Silver Grade
      (gm/mt)

      Gold Grade
      (oz/ton)

      Silver Grade
      (oz/ton)

      MP05-06

      92.1

      4.15

      13.6

      4.01

      19.9

      0.117

      0.58

      MP06-07

      82.0

      4.00

      13.0

      2.11

      24.0

      0.062

      0.70

      MP06-08

      79.0

      2.44

      8.0

      1.61

      10.00

      0.047

      0.29

      MP06-09

      102.0

      0.82

      2.7

      1.36

      16.00

      0.040

      0.47

      MP06-10

      72.5

      7.93

      26.0

      2.94

      32.25

      0.086

      0.94

      INCLUDING

      1.83

      6.0

      6.48

      69.93

      0.189

      2.04

      MP06-11

      75.4

      2.13

      7.0

      1.06

      14.16

      0.031

      0.41

  • Puente Area: a north-trending linear, mineralized, silicified zone about 200 metres long where hand trenching indicates gold values of nearly 2 gr/mt, significant silver and traces of copper.
  • Emily Area: contains four known zones of copper/silver/gold mineralization plus five areas worthy of further exploration. While the zones lack definition as to both grade and dimension, the early results and the presence of porphyry intrusive dykes in the area lend credence to the possibility that surface mineralization reflects the presence of porphyry copper mineralization at depth.

Richard Somerville, P.Eng, Director and Golden Arch’s Qualified Person under N.I. 43-101, has commenced development of an updated 43-101 report on this property.

Chip samples of significant interest from Emily Zone:

5.33% copper, 494 gm silver/Tonne, and 4.66 gm gold /Tonne
(5.33% Cu, 14.4 ounces/ton silver, and 0.14 ounces per ton gold)
0.62% copper, 29.4 gm silver/Tonne and 0.245 gm gold/Tonne
(0.62% Cu, 0.857 ounces /ton silver and 0.007 ounces per ton gold)
1.02% copper, 54.2 gm silver/Tonne and 0.220 gm gold/Tonne
(1.02% Cu, 1.58 ounces /ton silver and 0.006 ounces per ton gold)
0.38% copper, 16.0 gm silver/Tonne and 0.140 gm gold/Tonne
(0.38% Cu, 0.47 ounces /ton silver and 0.004 ounces per ton gold)