Geology and Drill Results

Several mines on the property operated from the 1900s to 1940 when the War Powers Act closed all the gold mines in Alaska. Historic mines (Puyallup, Crackerjack, Dawson and Hollis) located on the property are estimated to have produced between 30,000 and 50,000 ounces of gold (though historic records are only available for about 25,0000 ounces). Dawson continued to operate sporadically until 1980.

The target is a high-grade combined underground/open-pit operation, with good infrastructure and relatively clean metallurgy.

The property is a sediment-hosted, structurally controlled mesothermal gold vein system with gold hosted in individual, sheet and brecciated veins in an Ordovician-Silurian sequence of slate, argillite and greywacke lithologies.

The geological environment, types of veins, localisation of gold mineralisation to a specific stratigraphic horizon are common characteristics of orogenic and/or thermal aureole gold (TAG) deposits like Natalka and Sukhoi Log in Russia and similar prospects in Alaska.

Mineralized Horizon

The Dawson Mine was the only area on the property that was subject to a limited drilling program in 1980 and 1985 (10 drill holes). Highlights of the drill results:

Hole Width Average Grade
DDH#11 2.4 meters 40.4 g/t Au
DDH#15 4.9 meters 9.3 g/t Au
DDH#16 8.8 meters 18.7 g/t Au
DDH#18 6.3 meters 28.3 g/t Au
DDH#20 4.0 meters 8.7 g/t Au
Sheeted Veins at CJ

In December, 2007 Altair released the drill results from a 1,015 meter work program carried out in Aug-Sept. This initial drilling program intersected gold mineralization in the three locations drilled, spanning over 2,000 meters of strike length.

All 8 holes drilled encountering gold mineralization. An aggressive follow-up drill program to step-out from mineralization encountered in this initial drilling phase is planned to commence early in 2008.

Drilling completed by Altair and Full Metal confirms the tremendous strike extent of the gold-bearing system.

Drill holes CJ07-01 to 03 were drilled to intersect the down-dip extension of vein mineralization exposed in a small underground stope at the Crackerjack mine. Hole CJ07-01 was drilled at -65 to intersect the structure 50 m down-dip from historic stopes, CJ07-02 approximately 100 m down-dip and 25 meters along strike to the south, with CJ07-03 a vertical hole, approximately 150 meters down-dip. All holes penetrated the target structure on projection and discovered a new vein, approximately 15 meters up-dip. The veins host disseminated sulphides consisting of pyrite (1%-5%) and subordinate chalcopyrite, sphalerite, and galena.

Drill holes CJ07-04 and 05 were drilled to intersect similar vein mineralization in black shale exposed in the Hollis Tunnel 800 m southeast of the Crackerjack mine. Underground sampling at Hollis during 2007 averaged 30.9 g/t Au and 46.4 g/t Ag. Both holes intersected the targeted vein on projection associated with an andesite sill, at 50 and 100 meters down-dip from the Hollis tunnel, respectively.

Sheeted quartz veins hosting gold mineralization were encountered in all three areas. Results are as follows:

Hole From (m) To (m) Length Au (g/t) Ag (g/t)
CJ07-01 89.76 90.60 0.84 1.22 6.1
94.90 98.11 3.21 4.94 5.7
including 94.90 95.61 0.71 20.90 19.5
CJ07-02 107.65 111.25 3.60 4.23 11.4
including 109.90 111.25 1.35 8.72 12.5
155.20 155.60 0.40 2.51 276.0
CJ07-03 103.90 110.16 6.26 2.74 42.7
including 107.93 110.16 2.23 5.47 63.7
113.84 115.82 1.98 1.16 4.2
CJ07-04 92.00 92.45 0.45 1.30 4.3
CJ07-05 99.51 100.58 1.07 4.15 20.0
CJ07-06 42.45 44.50 2.05 9.56 76.7
CJ07-07 42.60 43.61 1.01 1.75 9.8
45.84 48.79 2.95 2.01 8.2
67.76 69.97 2.21 1.83 15.2
CJ07-08 67.81 69.13 1.32 1.27 1.4
* True widths are estimated to range from 86 to 100% of drilled length

Drill holes CJ07-06 to 08 are located near the Dawson Mine, a historic gold producer, on the southern margin of the property, where multiple high-grade intercepts were drilled in 1980. Holes CJ07-06 and -08 were angled at azimuths of 140 and 90 respectively from the same drill pad, and were drilled to intersect the Humboldt vein exposed in a trench near the Humboldt adit and the Free Gold vein exposed in a road cut. Drill hole CJ07-07 is a vertical hole collared from the same pad as 07-06. All three holes intersected the same vein structure at 25- to 55 m depth associated with a fault zone that was difficult to penetrate with the drill, and where recoveries of core were low (56%, 69%, and 22% respectively).