Alix Resources Corp | Mining & Exploration

The Arcadia Bay project represents an Archean lode-gold deposit located on the Arctic Ocean in Canada’s Nunavut territory, west of Bathurst Inlet and 140 kilometres west of Miramar Mining’s Hope Bay greenstone belt. The Property has a historic resource estimate of 640,650 tonnes averaging 7.2 g/t gold (containing about 148,000 oz. gold) in the North Central Vein and 139,524 tonnes averaging 8.6 g/t gold (or 38,600 contained oz. gold) in the Fred Vein have been reported. These resource estimates were completed prior to 2001 and NI 43-101, have not been independently audited and should therefore not be relied upon.

Highlights of historic drilling include drill intercepts up to 29.0 g/t Au over 5.6m and 12.0 g/t Au over 23.1m in the GHX zone, and channels up to 30.9 g/t Au over 1.2m in the Pick Zone. Historic drilling was generally shallow and closely spaced.

The Property has been the focus of considerable exploration activity since the initial discovery of auriferous quartz veins in the early 1960’s. Work by various companies was done in three main periods: primarily prospecting work from 1963 to 1966, trenching and diamond drilling from 1974 to 1981, and primarily diamond drilling from 1984 to 1989. The holdings of three companies, encompassing most of the present property, were combined in 1973 to allow coherent exploration of the previously partitioned North Central vein. In 1989, the Coronation Gulf Joint Venture completed the last significant program.

The Arcadia property is situated in the northwestern part of the Archean Slave Province, in the northwestern section of the Canadian Shield. Numerous gold-bearing mineral occurrences have been identified, spread over a 4.2 by 3.5 kilometre area. There are at least twenty different structures that have returned anomalous gold values in excess of 5.0 g/t Au. The most economically significant structures include the Fred Vein, North Vein and GHX Vein. Geological and geochemical evidence indicates that the shear-zone hosted auriferous quartz veins were emplaced relatively late in the tectonic history of the area.

Auriferous quartz veins in the tonalite are hosted by structures that have considerable strike length. The veins pinch and swell from narrow (1-2 cm) lenses to planar veins up to 4 metres wide. They are markedly wider, and commonly have higher gold content, where subtle jogs or deflections are apparent in vein strike. The North Vein is considered to have the most consistent and highest grades over significant strike length and, hence, the most potential for developing an economic gold deposit. The North Vein Central is part of a shear/vein zone that strikes roughly 020° and extends at least 4500 metres from the Discovery Vein in the north to the North Vein South and Bobby Vein to the south. A 700-metre section near the middle of this structure is referred to as the North Vein Central zone. This zone occurs between North Vein and Bondy Creeks, where the vein structure makes a subtle strike change from northeast to north-northeast. The most recent estimate of grade and tonnage on this vein is 641,800 tones at 7.2 g/t Au, based on 117 drill holes (12,515 metres) and extensive surface trench sampling. This historical resource estimate has not been reviewed by a Qualified Person and is not NI 43-101 compliant.

The GHX zone occurs at the intersection of the north-northwest trending No. 1 and X veins, the north-south trending Fred (or A) Vein, and the east-west trending G veins. The intersection of these structures has resulted in a complex quartz vein “blow-out” creating a potentially wider and more continuous mineralized zone than the simple shear-hosted veins. Significantly, drilling on this zone in 1988 intersected 12 g/t Au over a true width of 13 metres. Other intersections in the zone are much narrower but there are still numerous high-grade sections with significant widths.

All of the historic diamond drilling data has been compiled into a Gemcom database. Sufficient salt, fuel and construction materials are on site to support a 5,000’ diamond drilling program. Additionally, all permits are in place and as well as a reclamation bond to allow for diamond drilling. United Bolero and Mountain Capital are planning on an aggressive surface exploration and diamond drilling program in 2007 to confirm the historic resources, as well as to test for new exploration targets.

Robert McLeod, P.Geo., Vice President Exploration, for Full Metal Minerals Ltd., and a qualified person as defined by NI 43-101 is responsible for the preparation of the technical information herein. United Bolero has engaged Equity Engineering Ltd., a Vancouver Based Mining Consulting Group, to complete a NI 43-101 report on the Arcadia Property.