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Bristol Gold Project - West Timmins Mining CampBig Red’s 100% owned Bristol Gold Project is located in the Timmins Gold camp where in the past one hundred years over 70 million ounces have been produced. It is located 6 kilometers north of Lake Shore Gold's Timmins mine and Lake Shore’s Thunder Creek discovery (12.83g/t over 83 metres). In March 2009, the Company filed on SEDAR a NI 43-101 report for its Bristol project prepared by G.A. Harron & Associates Inc. The project consists of two claim blocks. The larger block consists of 11 un-surveyed contiguous claims containing 65 claim units covering approximately 1,040 hectares, within Bristol and Godfrey townships. The smaller block consists of 2 un-surveyed contiguous claims containing 8 claim units covering approximately 128 hectares in Carscallen Township. Both properties are located within the Porcupine Mining Division approximately 17 km west of the Town of Timmins. Vehicle access to the Bristol project can be achieved from an all-weather road off of Highway 101 west from Timmins. Both mining claim groups are underlain predominately by rhyolite and other felsic fragmental rocks of the Upper Blake River assemblage. This assemblage is the host of world-class base metal massive sulphide and gold-rich massive sulphide deposits in other areas of the Abitibi Greenstone Belt. This project offers the opportunity to explore for similar deposits. There is a depleted base metal massive sulphide deposit approximately 3 kilometers to the north and Lake Shore Gold’s developing gold mine approximately 6 kilometers south of the Bristol property. Based on the potential to discover both base metal massive sulphide and gold deposits in the project area, the Company believes exploration programs are warranted. Proposed exploration programs for both claim blocks include grid establishment, ground magnetic survey, and deep penetrating electromagnetic loop survey to search for conductive zones at depth. An induced polarization survey is also recommended to help focus on exploring the gold potential of the property. Contingent upon the results of the Phase I program, a Phase II exploration program of 2,000 m of diamond drilling is proposed to test geophysical features interpreted to be associated with economic mineralization. In August, 2009 Big Red announced that it had signed a Letter of Intent ("LOI") to enter into a 50% interest purchase and joint venture agreement with Melkior Resources Inc. (TSX Venture: “MKR”) regarding 3 claims (12 units covering 192 hectares) contiguous to Big Red’s smaller Bristol claim block and to properties held by West Timmins and San Gold. The LOI is subject to the signature of a Joint Venture Agreement as well as Board and regulatory approval. The signature of this agreement will strategically expand Big Red’s current Bristol property portfolio and give it a substantial participation in one of Canada’s hottest exploration camps. Melkior’s experience in the area will greatly assist Big Red with the planned exploration of the land package. To purchase a 50% interest in Melkior's 3 claims, DIA will issue one million treasury shares to Melkior and undertake to complete $400,000 in exploration expenditures over a 48 month period from the signature date of the formal Joint Venture Agreement. Melkior will act as Joint Venture operator on the claims and both parties have agreed to set up a Joint Venture Management Committee which will operate in accordance with standard Joint Venture requirements. Exploration should start soon after the signature of the JV Agreement. |