Silver Coin

Silver Coin

The Silver Coin project is a gold-silver project located in the Skeena Mining Division of British Columbia. Silver Coin is situated 10 km north of the past-producing Silbak-Premier mine. Silbak-Premier produced 2 million ounces of gold and 43 million ounces of silver over its life.

Originally, Mountain Boy owned a 100 % interest in the Silver Coin group and earned a 55 % interest in the Indi claims. After a farm out agreement with Pinnacle Mines Ltd (now Jayden Resources Inc.) and the subsequent purchase of the Kansas claim, the company owned a 49 % interest in the Silver Coin mineral claims, a 26.95 % interest in the Indi mineral claims and a 29.4% interest in the Kansas mineral claims. These 26 contiguous claims cover 1,247 hectares and comprise the present Silver Coin project.

On July 6, 2009, Mountain Boy signed an agreement with Jayden Resources Inc. (formerly Pinnacle Mines Ltd.) ("Jayden") to sell 19% of the Silver Coin project (including the necessary adjustments to the Kansas and Indi claims percentages) to Jayden for $350,000 and the Silver Coin field office to Jayden for $90,000. Jayden now owns a 70% interest in the Silver Coin project as a whole with Mountain Boy owning the remaining 30% interest. In addition, Jayden forgave $203,428 of accounts payable owed to them by Mountain Boy.

Jayden can earn an additional 10% interest in the project by completing $4,000,000 in exploration related expenditures within five years of the date of the agreement. If Mountain Boy is reduced to a 20% interest, it is carried for all future exploration expenditures.

The Company has filed an updated NI 43-101 technical report in regards to the Silver Coin project (the "Report"). The Report was prepared by Minarco-Mine Consult ("Minarco") and is available on www.sedar.com. The Report includes an updated resource estimate incorporating the assay results of eighteen holes that the Company's joint venture drilled during the fall of 2010 which had not previously been reported or included in resource estimates. This updated resource estimate represents an overall increase in the average gold grade of 10.9% and an 11.1% increase in the number of resource ounces previously reported, from 191,300 measured oz, 644,300 indicated oz and 655,200 inferred oz, to 218,410 measured oz, 624,006 indicated oz and 813,273 inferred oz. The updated resource estimate incorporates a total of 732 drill holes (88,645 meters) plus 76 trenches (1,447 meters). The Silver Coin project includes 26 contiguous claims with a net area of 1247 ha and is a joint venture with Jayden Resources Inc. (TSXV: JDN) (Jayden 70% with an option to earn an additional 10%).

Resource Estimate

Using a base case cut-off grade of 0.3 grams gold per tonne ("gpt") the Report identifies the following gold, silver and zinc resource:



At the 0.3 gpt cut-off grade the estimated Measured and Indicated resource is 24.13 million tonnes grading 1.08 gpt gold for a total of 842,416 ounces of gold, 4.45 million ounces of silver and 91.17 million pounds of zinc. The estimated Inferred resources comprise an additional 813,273 ounces of gold, 6.69 million ounces of silver, and 128 million lbs of zinc.

The resource remains open along strike to the north and south. The two southernmost holes from the 2010 drilling, both located within 150m of the currently modelled southern pit boundary, intersected excellent intervals of gold mineralization including 55m grading 8.42 gpt gold in hole SC10-311 as reported in the Company's news release of October 14, 2010. Readers are advised to access the Report for detailed technical information. Some highlights of past drilling are included as follows:



Exploration plans for 2011 include infill drilling to move the inferred resource into the measured and indicated category to aid in a pre-feasibility study.