TSX: LN

Itali Prospect

The Itali prospect is located at the eastern end of the Imva Fold structure, in the north western part of the Ngayu greenstone belt and 10 kilometres south of Makapela. The Imva Fold trends ENE -- WSW over a strike of 30 kilometres, and comprises an interbedded sequence of banded ironstone formation (BIF), basaltic volcanics and metasedimentary schist. Post-deformation, dioritic intrusives occur within and on the flanks of this fold structure. Extensive strike-parallel faults have been interpreted from aeromagnetic data, and are possibly thrusts that formed during the NNW-SSE compression and folding event. Based on the regional aeromagnetic/radiometric interpretation and the BLEG geochemical stream sediment surveys, the Imva Fold structure was designated as the highest priority new regional target area for ground follow up.

Imva fold structure showing Itali location

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One drill hole has been completed at Itali, with the objective of testing a trench intersection of 42.50 metres grading 2.11 g/t Au. The drill hole was 161.85 metres in length and inclined at -50 degrees to the south, and was drilled parallel to and immediately below the trench.

The main mineralized zone drilled at Itali consists of quartz veins and veinlets within basalt, overlain by graphitic schist. Two lower-grade zones occur in the vicinity of the basalt/schist contact. The main mineralized zone of 38.82 metres grading 2.66 g/t Au, dips to the north at 52 degrees, strikes east-west, and correlates closely with the surface trench intersection. Lithologies are completely oxidized to a vertical depth of 110 metres below surface.

Artisanal workings and soil sampling results indicate that there is potential for the mineralization to extend along strike for approximately 500 metres to the east and west of the drilled section. The strike and down-dip potential will be tested during the second quarter of 2012 once the current phase of drilling at Makapela has been completed.

Drill results from Itali discovery hole

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