Sacre-Coeur Minerals Ltd. - Properties & Projects

The Million Mountain Property

SUMMARY OF DRILL RESULTS

TABLE OF SELECTED DRILL RESULTS

Drill Holes	From (m)	To (m)	Interval (m)	Assay (g/t Au)
Reported: 02/21/2006	SACRE-COEUR MINERALS ENCOUNTERS LONG GOLD INTERCEPTS AND REPORTS THAT HIGH GRADE EXTENDS INTO HARD ROCK AT MILLION MOUNTAIN IN GUYANA
MM01-05	24.0	202.4	178.4	2.48
Including	24.0	107.3	83.3	5.07
Including	24.0	43.2	19.2	19.93
Including	27.0	39.0	12.0	30.52
MM02-05	29.5	291.3	261.8	1.64
Including	29.5	112.5	83.0	4.47
Including	29.5	67.05	37.55	9.34
Including	29.5	42.7	13.2	14.04
Including	44.85	47.85	3	21.07
Including	56.1	60.8	4.7	11.09

Reported: 06/09/2006	HIGH GRADE SHEAR ZONE EXTENDED AT MILLION MOUNTAIN – NEW ASSAYS INCLUDE 19.6 M @ 5.8 G/T AU
MM08-06	45.0	64.6	19.6	5.8
MM07-06	31.5	41.6	10.1	4.5
MM11-06	50.8	59.2	8.4	4.2
MM12-06	74.3	84.8	10.5	3.7
MM01-06	19.0	36.3	17.3	4.2

Reported: 08/22/2006	PROGRESS CONTINUES TOWARD MAJOR SURFACE-MINABLE RESOURCE AT MILLION MOUNTAIN – LATEST DRILLING YIELDS 79.5 METERS @ 1.20 G/T AU
MM13-06	56.5	140.4	83.9	0.83
MM17-06	89.5	159.9	70.4	1.13
MM18-06	122.5	194.5	79.5	1.20
MM19-06	83.8	161.2	77.4	1.02
MM20-06	117.8	210.5	92.7	0.82
MM1896-06	1.2	99.5	98.3	0.57
MM1996-06	0.9	50.0	49.1	0.85

Reported: 01/10/2007	CORE DRILLING TO THE WEST CONFIRMS EXTENSION OF ZONE AT MILLION MOUNTAIN; LONG INTERVALS INCLUDE 108.55 M @ 2.04 G/T AU
MM29-06	18.7	158.0	139.3	1.02
MM30-06	0.0	84.8	84.8	0.79
MM33-06	0.0	98.6	98.6	0.54
MM34A-06	0.0	27.8	27.8	0.97
MM35-06	9.8	101.1	91.3	1.08
Including	62.1	69.9	7.8	3.2
MM36-06	20.0	131.9	111.9	1.07
Including	20.0	37.0	17.0	3.85
MM37-06	0.0 42.9	23.0 71.5	23.0 28.6	1.05 1.56
MM38-06	0.0	122.0	122.0	0.62
MM39-06	48.9	62.55	13.65	6.13
Including	50.2	58.1	7.9	9.63
MM40-06	31.9	134.65	102.75	1.02
MM41-06	46.75	155.6	108.85	2.04
Including	50.5	66.5	16.0	9.02
Including	58.0	66.5	8.5	12.61
MM42-06	56.6	140.2	83.6	1.75
Including	57.2	67.2	10.0	7.68

Reported :03/05/2007	DRILLING ADVANCES TO SOUTHWEST AT MILLION MOUNTAIN WITH LENGTHY INTERVAL REPORTED: 225.9 METERS @ 1.05 G/T AU
MM50-06	0.0	225.9	225.9	1.05
Including	11.2	18.5	7.3	8.54
MM51-06	0.0	94.2	94.2	1.12
MM52-06	0.0	26.8	26.8	2.08
MM49-06	114.0	180.0	66.0	0.87
Including	114.0	122.0	8.0	3.01

Reported: 05/14/2007	250 METER STEPOUT TO SOUTH YIELDS BROAD LOW GRADE ZONE; INTERVALS INCLUDE 55.2 METERS @ 1.09 G/T AU
MM5307	0.00	14.35	14.35	2.15
Including	0.00	8.80	8.80	3.11
MM5407	0.00	9.75	9.75	1.39
MM5507	0.00	23.80	23.80	0.56
MM5607	21.35	24.00	2.65	2.80

Reported: 07/24/ 2007	MINERALIZED ZONE AT MILLION MOUNTAIN CONTINUES TO EXPAND TO THE SOUTH AND EAST; INTERVALS INCLUDE 31.25 METERS @ 2.23 G/T AU
MM5707	0.00	8.20	8.20	0.74
MM5807	0.00	55.2	55.2	1.09
MM5907	35.62	57.55	21.93	0.72
MM6007	28.32	37.09	8.77	1.29
MM6107	94.30	99.48	5.18	0.61
MM6307	3.00	202.85	199.85	0.51
MM6407	11.10	155.40	144.30	0.71
MM6507	0.00	4.50	4.50	4.84
MM6607	0.00	18.95	18.95	0.68
MM6707	0.00	21.70	21.70	0.64
MM6807	23.35	28.00	4.65	0.51
MM6807	62.75	88.15	25.40	0.73
MM7207	3.00	57.63	54.63	1.43
MM7207	61.88	84.90	23.02	0.50
MM7307	3.06	23.50	20.44	1.30
MM7307	56.90	76.66	19.76	0.77
MM7307	157.00	163.85	6.85	1.24
MM7407	54.15	86.00	31.85	2.23
Including	63.50	75.46	11.96	3.54
MM7407	117.83	122.37	4.54	0.66

Reported: 08/27/2007	GOLD-BEARING ZONE AT MILLION MOUNTAIN CONTINUES TO EXPAND; 100 METER STEPOUT TO THE SOUTHEAST YIELDS 106.9 METERS @ 1.36 G/T AU
MM7607	1.30	77.17	75.87	1.13
Including	15.00	44.00	29.00	2.11
which includes	24.45	27.50	3.05	9.27
MM7507	52.11	159.00	106.89	1.36
Including	70.25	81.00	10.10	2.59
Including	131.52	148.37	16.85	2.51

OVERVIEW OF MILLION MOUNTAIN PROPERTY

Qualifying Property – The Million Mountain Project

The following information is taken from the Technical Report on the Million Mountain Gold Project, Guyana, S.A. dated June 1, 2005 (the "Report") prepared by Peter A. Christopher, P. Eng. ("Christopher") of Peter Christopher & Associates Inc., an independent qualified person under National Instrument 43-101 ("NI 43-101"). A copy of the Report may be inspected at the registered office of the Company at Suite 1400, 1055 West Hastings Street, Vancouver, British Columbia, Canada V6E 2E1 during normal business hours while the distribution of the securities offered hereunder is in progress and for a period of 30 days thereafter.

Property Description and Location

Property Area, Location and Description of Claims

The Million Mountain property consisting of 21 permits covering some 21768.8 acres (88.5 km2), is situated in the Mazaruni Mining District No. 3, Guyana, South America. The ground consists of contiguous holdings. Title details are given in Table 6.1 below. The property is located about 100 air kilometres WSW of the capital city of Georgetown (See Figure 6.1).

Table 6.1 – Pertinent Permit Data For Million Mountain Property.
File No.	Permit No	Acres	Issued
A-13/000	310/94	1164.8	94/6/29
A-13/001	311/94	1165.0	94/6/29
A-13/002	312/94	1165.0	94/6/29
A-13/003	313/94	813.0	94/6/29
A-13/004	314/94	1165.0	94/6/29
A-13/005	315/94	1165.0	94/6/29
A-39/000	979/94	1200.0	94/11/29
A-39/001	0171/95	1197.0	95/03/02
A-39/002	980/94	1196.0	94/11/29
A-39/003	0172/95	598.0	95/03/02
A-39/004	981/94	1196.0	94/11/29
A-39/005	982/94	1196.0	94/11/29
A-39/006	0173/95	1148.0	95/03/02
A-62/000	316/94	1003.0	94/09/01
A-62/001	317/94	901.0	94/09/01
A-62/002	318/94	1179.0	94/09/01
A-62/003	319/94	1184.0	94/09/01
A-94/000	1096/95	659.0	95/11/10
A-109/000	0344/96	448.0	96/08/7
A-109/001	0444/96	829.0	96/08/29
A-109/002	432/96	1197.0	02/08/27
Total acres 21,768.8

Mineral Title
In Guyana all mineral rights are vested in the state. Mineral policy is administered by the Prime Minister and the chief executive of the GGMC. The GGMC was created by legislative act in 1978 and amended to the current "Mining Act of 1989". Mineral titles to the properties in which the Company has an interest are held in the name of Alphonso with the title to concessions comprising the Million Mountain property held by Alphonso since 1994 to 1996.

Legal Survey
The Million Mountain project area has not been located on the ground by North American legal survey methods. The Million Mountain project area corners have been located on the ground utilizing GPS technology in accordance with GGMC standards.

Terms of Agreements
The Million Mountain project comprises 21 contiguous claims and the area under tenure totals about 88.5 km2. It covers the Puruni River and Mara Mara drainages north of the Peters Mine property of Guyana Goldfields and covers areas of extensive past and current alluvial mining. The mineral titles are in the name of Alphonso. Sacre-Coeur holds an option to acquire all or part of the Alphonso holdings for a cash payment of $250,000 (paid) and no later than November 7, 2005 payment of the additional sum of $250,000 to Alphonso, equity in Sacre-Coeur (1,500,000 shares, which have been issued), raising an aggregate of $3,750,000 by November 7, 2005 (of which $1,364,583 has been raised) and a residual 2% net smelter production royalty (Sacre-Coeur has a buy-out option). Sacre-Coeur is required to make exploration expenditures of $2,000,000 on the Lower Puruni regional block, including the Million Mountain project area, within 3 years of the Company's Offering or if earlier, five years following closing of its initial private placement (which occurred on July 30, 2004). Alphonso shall receive bonus payments of $250,000 for each regional block with proven reserves of 1,000,000 ounces of gold and a further bonus of $500,000 not later than 30 days following commencement of Commercial Mining operation of any gold deposit meeting the 1,000,000 ounces of gold proven reserve requirement. Areas of Historic and Current Workings The locations of historic auger holes and the test mining pit that establish mineralization on the Million Mountain property are shown in Figure 6.2 of the Report. Trenches were excavated by Sacre-Coeur in the area of the historic test pit to allow for independent confirmation of the gold mineralization by Christopher.

Environmental Liabilities
Christopher is not aware of environmental liabilities relating to this project. Christopher has reviewed the agreement between Alphonso and Sacre-Coeur and noted that Alphonso has represented in §3.2, (f), (i) of the Agreement that "to Alfro's [Alphonso's] knowledge, the conditions on or with respect to the Properties and his ownership and operation of the Properties are not in violation of any Laws (including without limitation any Environmental Laws), nor causing nor permitting any damage (including Environmental Damage, as defined below) or impairment to the health, safety, or enjoyment of any person at or on the Properties or in the general vicinity of the Properties." The camp area is being maintained to Canadian standards and potable water is obtained from a local spring. The presence of drinkable water and a clean camp environment distinguish the Million Mountain project from most other exploration camps in Guyana.

Required Permits
No additional permits or government authorizations are required to conduct the programs contemplated in Phase I or II. Prior to commencement of development for commercial scale mining and processing, the current Prospecting Permits must be converted to Mining Permits or combined into a Mining License. At that time, plans of operation, environmental assessments, and reclamation bonding will be required.

Accessibility, Physiography, Climate, and Infrastructure
Access to the Property and Proximity to Population Center(s) Principal access to Million Mountain is gained from the national capital Georgetown by using public highways to a water taxi up the Essequibo River which connects to a mining and logging road at the village of Itibali on the Mazaruni River, just upstream from the junction of the Essequibo, Mazaruni and Cuyuni Rivers. From the village of Itibali, a dirt "bush" road extends along the Mazaruni River and then the Puruni River drainages. Logging is planned for the area south of Peters Mine and should result in upgrade and better maintenance of the road to Million Mountain.

The river port village of Itibali is about 100 road km from the Million Mountain camp. The Essequibo River is navigable by heavy tugs and barges from the sea port located in Georgetown to the river port at Itibali to facilitate movement of heavy equipment and supplies by river and road to the Million Mountain site. Topography, Elevation and Vegetation

The Million Mountain area consists of rain forested hills with elevations ranging from about 200 feet at the Puruni River to about 800 feet in the northern part of the Million Mountain project area. The area is covered by the Puruni 1:50,000 topographic sheet 26NW. Relevant Climate and Length of Operating Season A hot, wet season extends from December to February with a second wet period in May and June. The longer July through November dryer season should be used for access road construction, airborne surveys, and the start of larger programs, though owing to the upland topography of the Million Mountain project site, all-season operations are feasible based on the experience of past operators. Availability of Surface Rights, Power, Water and Mining Personnel Labour is available from Georgetown and a number of villages along the rivers. Water for drilling is available during the entire year and is in excess supply during the wet season.

An attempt should be made to conduct construction projects and the Phase 1 drilling program during the dry season. The Puruni River, running through the project area, may be a possible source of hydroelectric power for a large mining operation. No local electrical power grid exists and large and small miners alike generally rely on diesel generated power for camp and mine use.

Potential Areas for Tailings Disposal, Heap Leach Pads and Plant Sites Topography in the area is rolling with a number of valley basins suitable for disposal of tailings. The project area is well suited for the construction of any mine related facility, including tailing dams, leach pads and plant sites. Although several sites exist for waste and tailings disposal, condemnation drilling and site evaluation is necessary for appropriate site selection.

History
The initial gold rush occurred in the 1880's and was triggered by Venezuelan gold miners. Artisinal gold operations were being worked throughout the Northwest Region of, then British Guiana and widespread between the Cuyuni and Mazaruni Rivers. Small scale workings were excavated by pork-knockers, the common Guyanese term for prospectors who exploited what they found using manual or basic mechanically supported methods.

The Peters Mine property, 6 km south-southwest of Million Mountain, was discovered by placer miners in 1904 and sold to a New York syndicate which from 1904 to 1909 produced 1,240 kg of gold from 63,000 tonnes of ore. The head grade was reported to be about 41 g/t Au which suggests a recovery of less than 50%. The Aremu Mine, a quartz vein mine located about 25 km northeast of Million Mountain, was reported to have operated between 1910 and 1911 producing 6,488 ounces of gold from 1,414,632 tons of ore.

Historic Overview of Million Mountain Project.

History of the Million Mountain Project area is as follows:

The 1937 geological Survey of British Guiana report by D.W. Bishopp presents the earliest written report on Million Mountain and its regional geological setting. A short paragraph gives Bishopp's view of Million Mountain as, "Two quartz veins with respective northeasterly and northwesterly strikes were being looked at on the contact between granite and volcanics. On either side of a gully, adits were being driven and a winze was being sunk". No grades or production were mentioned.
From December 1954 to March 1955. G.S. Carter conducted a reconnaissance survey along the Puruni River from upstream of the Mara Mara River confluence, south to the Mazaruni River and included the area adjacent to Million Mountain. Carter observed a N70E "Belt of mineralization running east from Million Mountain to Blackwater Creek, a tributary of the Mara Mara River" and noted "numerous quartz stringers up to a few inches in width and of short strike length" as the locus of the gold mineralization. The quartz stringers represent a gold bearing quartz vein stockwork in granitic rocks that underlie part of the area being explored by Sacre-Coeur. Carterobserved that the "Million Mountain - Mara Mara Belt of Mineralization, where intersected by creeks, has generally given rise to extremely rich placer deposits", as confirmed by dredging and sluicing operations continuing to the present.
In the early 1960's, the United Nations flew aeromagnetic and electromagnetic (INPUT) surveys over parts of Guyana that included the Peters Mine area.
Barron describes the geology, structure and gold potential of the Peters Mine District with emphasis on the area west of the Puruni River between Million Mountain on the north and Peters Mine to the south. Barron recognized the Million Mountain Break as an abrupt structural break between a granite porphyry pluton to the south and low-grade metamorphosed sedimentary and acid to intermediate volcanic rocks of the Cuyuni formation to the north. Barron supervised the drilling of seven core holes in the vicinity of and on the Million Mountain Ridge for the GGMC. No high gold values were obtained since holes were drilled outside the areas of the gold bearing shear zone and quartz stockwork in granite.
In 1971 and early 1972 an aeromagnetic survey was flown by Terra Surveys Ltd., under contract with the GGMC. Funding was provided by the Canadian International Development Agency ("CIDA") with technical supervision by the Geological Survey of Canada ("GSC"). A 1:200,000 aeromagnetic map covered 1:50,000 topographic sheets Puruni 17, 18, 25, and 26. The Million Mountain break separates different magnetic domains and EW, ENE and NS magnetic highs relate to young basic intrusive rocks.
From 1987 to 1989 Golden Star Resources Ltd. ("Golden Star") conducted exploration under an exclusive exploration permit over a very large area of Guyana, including Million Mountain. An April 1989 compilation report by Hilbert N. Shields includes the Million Mountain area. Part of the 1987 program included re-logging and re-analyzing the core from the 1966 GGMC drilling. The re-assaying returned much lower values than reported by the GGMC, but the discrepancy was not resolved. Ground magnetic survey results corresponded well with the 1971-1972 airborne survey. The eastern part of the survey yielded high magnetic response due to underlying basic rock trending ENE from the mouth of the Mara Mara River. The southern portion of the survey area has both low magnetic relief and values typical of underlying granitic intrusive rocks. A total of 162 short, hand auger holes were drilled with analyses revealing a >0.50 g/t Au anomaly centered on the southern flank of the Million Mountain ridge. The gold anomaly is coincident with low-amplitude magnetic response.
Following forfeiture by Golden Star in 1989, Million Mountain and a large surrounding parcel along the middle Puruni River were placed in a federal reserve and restricted from mineral exploration.
In 1994, the mining reserve was lifted and Alphonso acquired permits on approximately 26 square miles covering the Million Mountain ridge. Alphonso, over the next several years, expanded his holding in the middle Puruni Region to over 355 square miles. Alphonso carried out "land dredge" and sluice operations on the river alluvials on a portion of the Million Mountain project area. In January 1996 Alphonso, in partnership with North American mining professionals, began evaluation of the insitu potential of the Million Mountain Project area. The partnership drilled 4 inch vertical auger holes on a 33 meter by 33 meter grid over an area with surface expression of stockwork quartz veining. Auger holes tested to a maximum depth of 30 meters, with average depth of about 20 meters. During the years 1996, 1997 and 1998, the partnership drilled 109 auger holes. Commencing in 1999, small scale test mining of the shear zone on the south flank of the Million Mountain ridge was undertaken. An 80 meter wide (NS) by 100 meter long (EW) pit was developed. Operations were halted after excavation and processing of about 14,000 tonnes, as recovery was very low (estimated at 20%) owing to lack of complete liberation of gold particles and a significant portion of the contained gold being too fine to recover by simple gravity means.
In September, 2004, Sacre-Coeur entered into a mining agreement with Alphonso which gave Sacre-Coeur rights to explore, mine, and acquire all of Alphonso's properties in Guyana which were not subject to prior agreement. This agreement covers more than 850 square miles of prospective mineral property and includes the Million Mountain Project, as all prior rights of others in the Million Mountain project had terminated. The 2004 agreement was replaced in its entirely by the new Agreement between Alphonso and Sacre-Coeur discussed above, which Agreement remains in effect today.
During the period November 2004 – February 2005 Sacre-Coeur restored the Million Mountain camp and access road, re-established the survey grid, remapped the geology of the pit, and prepared for a trenching program. In March 2005, Sacre-Coeur excavated approximately 500 meters of trench into material in the floor of and to the west of the 1999 pit. Trenches ranged from 3-4 meters deep by 1.5 meters wide. Continuous channel samples were taken along one wall of all of the trenches and submitted for gold fire assay to Loring Laboratories in Georgetown, Guyana.
In mid-March 2005, Christopher, an independent qualified person for Sacre-Coeur, visited the site and took 12 referee samples along the same lines previously sampled by Sacre-Coeur. Christopher's samples were prepared and assayed for gold by Loring in Guyana and a split of the pulp sent to Acme Laboratory in Vancouver, B.C. for Au assay and ICP analysis. Table 14.4 of the Report shows excellent correlation between Loring and Acme results and validates previous trench sampling by Sacre-Coeur.
In April 2005, Sacre-Coeur commissioned Maptek/KRJA Systems, Inc. to enter both historic auger drilling and current trench sample data developed by Sacre-Coeur into Vulcan modeling software to develop a preliminary three dimensional model of the Million Mountain mineralized body (Figures 8.1; 8.2 and 8.3 of the Report). The model will serve as a data base to which future information will be added and shows trends of the mineralized material that provide targets for Phase 1 drilling.

Historical Mineral Resource and Mineral Reserve Estimates

Based on data developed from 1996 through 1998 field programs a "total geological resource" was estimated using both cross-section and polygonal methods. A series of six small open pits were laid out for extraction and determination of "minable reserve". The 1998 total reserve and resource by pit estimate by Sadler and Arden (1998) of 1,449,733 metric tonnes grading 4.91 g/t Au (as fully diluted minable grade) is considered to be a historic inferred resource by Christopher to comply with NI 43-101. The 1998 resources estimate was based on surface sampling and 109 auger drill holes completed between 1996 and 1998.

The historic inferred resource was updated by Sadler (2005) to a current inferred resource estimate (resource category change by Christopher from total estimated resource to estimated inferred resource to comply with NI 43-101) of 1,252,439 metric tonnes grading 3.91 g/t Au by Sadler (2005). In addition to the "insitu" inferred resource, Sadler estimated 71,364 metric tonnes of tailings, from sluicing operations, at an estimated grade of 1.4 g/t Au with total current estimated inferred resource, including tailings, of 1,323,803 tonnes grading 3.78 g/t Au (Sadler, 2005).

The inferred resources estimate was based on cross sections showing the geology and assay values at approximately 30 foot intervals depending on the actual location of the drill holes. The insitu dry bulk density used in the resource calculation is 2.00 metric tonnes per cubic meter. Sadler based the density factor on over eight years of saprolite exploration, mining and milling experience.

An in house resource estimate developed for target definition purposes, for the Million Mountain property, was made by Maptek/KRJA Systems, Inc. by entering historic data and Sacre-Coeur trench results in a Vulcan block modeling program. Maptek/KRJA (2005) estimated "net remaining resource" of 559,178 tonnes grading 14.91 g/t Au (cut-off=1 g/t) that the CIM guidelines would classify as inferred resource and Christopher prefers to describe as mineralized material until recommended Phase 1 drilling validates auger drill results and provides better definition of the high-grade shear zone.

Maptek/KRJA models, for distribution of mineralized material, are summarized in Figure 8.1, 8.2, and 8.31 of the Report. The initial trench sampling conducted by Sacre-Coeur and Christopher appears to validate the presence and grade of the some of the mineralized material, but Christopher recommends that some angle core holes be drilled to confirm the orientation of the mineralized structural zone and extent of the mineralized zone at depth. A number of auger drill holes end in high grade gold mineralization that has excellent potential for extending down the dip of the mineralized shear zone, but deeper drill holes will be required for confirmation of down dip extension of the high grade shear zone.

There are no current resources or reserves on the Properties calculated by an independent qualified person as those terms are defined in NI 43-101.

Geological Setting

Regional Geological Setting

Guyana is mainly underlain by Proterozoic and older granites and greenstones of the Guiana Shield, an ancient continental craton of Precambrian age. The Guiana Shield is the northern part of the Amazon Craton, one of the largest cratonic areas in the world. The Amazon Craton was the western part of the West African Craton until the opening of the Atlantic basin about 115 My ago.

The Amazon craton is surrounded by orogenic belts with orogenies generally accompanied by intrusion of granitic rocks. Guyana is divided geologically into a Northern and a Southern geological province at about 4.5 degrees north latitude. The Northern Province is made up of basement of late Archean to early Proterozoic rocks, roughly between 2.2 and 1.9 billion years of age. These rocks formed in troughs that were filled with offshore sedimentary and volcanic deposits.

The troughs were compressed and metamorphosed into greenstone belts with associated mineralizing events resulting in a auriferous terrain having potential for world-class deposits.

The Northwest District of Guyana (Figure 9.1 of the Report), which includes the Million Mountain Property is within the Barama-Mazaruni Supergroup. The Barama-Mazaruni Supergroup consists of Lower Proterozoic greenstones, metasediments and granitic complexes. The Barama-Mazaruni is referred to as the Cuyuni Formation in the area of the Million Mountain property. Granitic stocks and batholiths have segmented the metamorphic rocks into belts or roof pendants. The emplacement of intrusions took place during the Akawaian Episode between about 2.0 and 1.7 billon years.

The Trans-Amazonian Orogeny, a tectonic and thermal event causing mountain building, occurred near the end of the Akawaian Episode. A recent costal basin has formed along the Atlantic Coast and a minor suite of Triassic intrusive rocks resulted from continental drifting.

Greenstone belts include mafic to felsic flows and associated volcaniclastic rocks of equivalent composition. The volcanic units are intercalated with a wide range of metasedimentary rocks. Rock units are regionally metamorphosed to lower or middle greenschist facies with contact metamorphic effects causing upper greenschist to amphibolite grade metamorphism. The granite and greenstone terrain of the Guiana Shield is cut by NNW trending diabase dikes.

Local Geology of Million Mountain Project Area

The general geology of the Million Mountain Project area has been mapped and compiled by Sadler, T.M., and Arden, H. (1998). The local geology has been updated and described by Dr. Arden as follows, "Topographically the Million Mountain Project area divides into two sectors.

The eastern one, which forms the inside bank of the bend in the river, is rather flat and low. Geologically this area is underlain by alluvial deposits laid down by the Puruni River and presently covered by surficial eluvia. About 4 to 6 meters below these horizontally bedded deposits, the bedrock is completely saprolitized granitic rocks affected by a low temperature metamorphism."…"Topographically the western two-thirds of the Million Mountain project area is made up of low hills separated by steep drainages excavated by small creeks.

The northern hill, the Million Mountain ridge, is underlain by the in situ rocks of the Million Mountain Break. In the south of the project area are situated two hills, an Eastern one and a Western one, separated by a narrow gulch. The hills are underlain by in situ saprolitized granitic rock weathered to a depth of 30-40 meters, and variably intruded by auriferous quartz stockwork veining."

At the Million Mountain ridge, the Million Mountain Break is oriented ENE/WSW and in drill holes is represented by an interval of about one foot of soft and broken core. Using photo geology, ground geological surveys, aeromagnetic data, and drill core data, Barron postulated that west of Million Mountain ridge, the Million Mountain Break trends in a southwest direction and continues to separate northern from southern lithologies.

A narrow, gold-rich shear zone averaging about 25 meters wide, first detected by auger drilling, strikes NNW/SSE for 50-75 meters in the pit area. The gold-rich shear is within saprolitized chlorite schist with silver colored fragments. The gold-rich shear is orthogonal to the Million Mountain break and the dip is near vertical. The gold-rich shear is offset westerly along E-W trending shears. The Million Mountain Break strikes ENE/WNW with the north side consisting of carbonaceous schist, pelite, and pebble conglomerate characteristic of the Cuyuni Formation.

Deposit Types

Mineral Deposit Type/Model for the Property

Hard-rock gold deposits of the Guiana Shield have been divided by Gibbs and Barron (1993) into three main types:

Deposits in large quartz veins in mafic and untramafic metavolcanic rocks. Examples include El Callao in Venezuela, Wairie, Jubilee Creek and Baramita in Guyana and Lawa in Surinam. Veins area generally in greenschist facies rocks near rocks metamorphosed to the amphibolite facies.
Deposits in auriferous quart veins near contacts of granitic porphyry dikes or stocks. Examples are Million Mountain, Peters Mine, Eagle Mountain, Aurora, Aranka, Yakishuru and Omai deposits or occurrences in Guyana.
Deposits associated with tuffaceous, pelitic, carbonaceous and cherty metasediments. Deposits occur in smaller quartz veins and quartz may be grey due to graphitic inclusions.

Examples include the Eldorado, Kaburi, Honey Camp, Aremu and Tassawini occurrences in Guyana. Enrichment of gold has occurred as the result of tropical weathering in much of the Guiana Shield. The gold in near surface zones has been partially liberated by oxidation of sulphide host minerals. The liberation of gold allows for recovery using low cost gravity and leaching methods.

Mineralization

Mineralized Zones on the Property

Gold in Veins and Stringers

The main mineralized zone is associated with shearing and enrichment of saprolite weathered material within a structure trending NNW/SSE. The structure has been tested by an auger drilling program and shown to grade from a gold enriched saprolite into lower grade contact stockwork veined halos. The stockwork veined mineralized material occurs in granitic rocks and adjacent greenstone with the high grade shear zone near a breccia/greenstone contact.

Alluvial and Eluvial

The Million Mountain property also contains alluvial and eluvial gold concentrations that have resulted from oxidation, liberation and enrichment of weathered material by erosion of lighter matrix material. The alluvial areas have been worked in the past and reported to have produced in excess of 50,000 ounces of gold. Christopher believes that the roots and source area of previously mined material has been demonstrated to be below some of the previously mined areas. Course angular gold nuggets are being recovered from the Mara Mara area and course, angular gold in quartz has been found in the placer workings. The source of the gold appears to be from quartz vein and stockwork zone within the immediate valley.

Excavations and previous drilling have mainly been restricted to within 66 feet (20 meters) of the surface which is the efficient range of the auger dill system that was employed for previous testing. Auger drilling has tested alluvial and eluvial deposits but only shallow parts of the saprolite weathered bedrock.

Exploration by the Company

The Company has conducted a program consisting of camp restoration, site clearing, hydraulic excavator trenching and sampling. The trenching program was undertaken to allow an independent qualified person to sample the core of the previous defined mineralized zone and validate the presence of significant gold mineralization.

The exploration program by the Company was supervised by Gregory Sparks, P.Eng. and Canadian geologist Dr. Hendrikus Aarden, P. Geol. Mr. Sparks and Dr. Aarden managed previous exploration programs on the Million Mountain property and both have extensive exploration experience in the Guiana Shield of Venezuela and Guyana.

The exploration was judged by Christopher to have been conducted to best practice standards as defined by the CIM. Christopher collected 12 independent samples that verify and validate trench sampling by the Company. Christopher's and the Company's trench samples are summarized in Table 14.1 and on Figure 12.1 of the Report.

Drilling

The Million Mountain Property has previously been drilled by the GGMC, Golden Star and private mining company Heritage Mines Limited. The GGMC drilled diamond core holes, Golden Star drilled 162 short, hand auger holes and Heritage drilled 109 mechanized 4" auger holes. The Heritage holes extended up to 30 meters but the drill operated more efficiently at 20 meters or less and most holes were stopped by about 18 meters (60 feet). The pattern of auger holes, drilled in 1996, 1997 and 1998 by Heritage and its predecessors, is shown in Figure 6.2 of the Report. Significant results from the 1998 infill drill program are summarized in Table 6.2 of the Report with 1998 drill hole data presented in Table 13.2 of the Report.

No drilling has been completed by Sacre-Coeur on the Million Mountain property. Drilling costs for BQ and/or NQ diamond drill rigs typically averages above U.S.$100/meter in the Guiana Shield while reverse circulation drilling costs for saprolite with an HQ reverse circulation rig typically average in the U.S.$10 to $14/meter range. The initial drilling on the Million Mountain property by Sacre-Coeur should involve diamond drilling to allow angle holes and determination of the geology and structural controls of mineralization. Christopher recommends twinning of 6 to 8 of Heritage's better grade auger drill holes. Auger or reverse circulation drilling should be considered for cost effective testing of the saprolite along the NW trend of the auriferous zone and areas of stockwork mineralization adjacent to the mineralized zone. Angle holes should be used because the auriferous shear zone appears to have a steep or near vertical dip.

Sampling Method and Approach

Historic Sampling Method

Previous sampling methods employed by Heritage appear to have been conducted by competent and experienced professional with either Gregory Sparks P.Eng. or Dr. H. Aarden P.Geol. involved in supervising drilling and sampling. The drilling equipment used for the auger drilling programs was a crawler mounted Bushmaster hydraulic powered auger. The drill could be easily moved over machete cleared forest tracks. The auger string consisted of individual 4-foot (1.22 meter) lengths with a 4-inch (10 cm) diameter. The equipment can reach maximum depth of 100' but is most efficient and cost effective to depths of 50 to 60 feet. The unit can complete two to four 50 foot holes per day.

Sample collection was accomplished by allowing the auger a 4-foot penetration for each sample interval. The auger was then rotated freely, without withdrawing or vertically moving the drill string. The procedure allowed the material to move up the auger to the surface, and enter the sampling pan in discrete sampling lots. The drill method minimized sample intermixing and hole-wall contamination. The method was considered to work well in both relatively dry and humid saprolite.

The sample pan was divided into two compartments with a steel divisor plate to allow a pair of samples to be collected for each 4-foot run. Intervals were bagged and numbered with one sample stored for reference and due diligence work at the Million Mountain base camp and the other sent to the laboratory for preparation and analysis. Loring Laboratories (Guyana), Ltd. ("Loring"), a branch of Loring Laboratories of Calgary, Alberta, was used for gold analyses.

Sample Preparation, Analyses and Security

Sampling Personnel and Security

All check samples were kept in the personal control of Christopher until delivered to Loring in Georgetown, Guyana for preparation and initial analysis. Pulps from the prepared samples were sent by Loring to Acme Laboratories in Vancouver, British Columbia, Canada ("Acme") for gold assay and ICP analysis.

Sample Preparation and Analytical Procedures

Samples consisted of 3.36 to 4.61 kilograms of small chips collected by Christopher were placed in plastic bags and secured with wire ties. The samples were dried and then crushed and pulverized. Christopher requested the use of a ring type pulverizer by Loring. Loring shipped about 200 grams of pulverized material to Acme for conventional 30 elements ICP and gold by FA with AA finish. The gold values from Christopher's samples and previous samples collected by Sacre-Coeur are summarized in Table 14.1 of the Report.

Quality Control and Check Analytical and Testing Procedures

Christopher based much of the information in this report on historical data and documents. The exploration documents suggest that industry best practices were followed for analytical procedures, quality control or reliability checking.

Data Verification

Quality Control and Data Verification

Data generated by auger drilling done on the Million Mountain property prior to Christopher's examination could not be verified. Splits of auger sample intervals stored in racks at the Million Mountain camp were lost to tropical weathering condition and the sample storage racks had collapsed. The Sacre-Coeur senior staff members Dr. Aarden and Gregory Sparks supervised previous auger drilling programs and their work was judged to be done to industry best practice standards. The trenching program conducted by Sacre-Coeur allowed Christopher to collect 10 check samples from the area of the high grade shear zone. Christopher's samples which are summarized in Table 14.1 of the Report verify and validate the presence of a high grade shear zone on the Million Mountain property. Christopher's sample results are in general agreement with comparable samples collected under the supervision of Dr. Aarden and Mr. Sparks. Christopher had samples prepared and Au assayed by Loring in Georgetown Guyana and a split of the pulp sent to Acme in Vancouver, B.C. for check gold assay and ICP analyses.

Historic Verification of Auger Drilling

A goal of the 1998 "In-Fill Program" was to validate auger drill data by sinking a shaft on a drill hole. Drill hole 3-98 was selected for comparison. A shaft was sunk to a depth of 35 feet centered on hole 3-98. Hole 3-98 was reported to average 11.34 g/t Au from 0 to 44 feet and 11.18 g/t from 0 to 35 feet. A five foot diameter shaft was centered on hole 3-98 and sunk to 35 feet. The shaft was channel sampled on four sides at four foot intervals with the south side averaging 8.79 g/t Au; the west side averaging 6.57 g/t Au; the north side averaging 8.44 g/t Au and the east side averaging 10.35 g/t Au with channel samples containing 79%, 59%, 75%, and 93% of the 0 to 35 feet grade of hole 3-98, respectively. The shaft results generally supports the average gold grade from the drill hole with the average of the four shaft samples (8.54 g/t Au) 76% of the similar drill hole interval. The shaft sampling shows that large variations can occur over short distances (2.5 to 5 feet). Twinning of additional auger holes and angle core holes are required to better understand distribution of gold grades and geological model to be used for resource estimates.

Adjacent Properties

The Million Mountain Property adjoins the Peters Mine Property of Guyana Goldfields. The Peters Mine Property is one of the largest gold producers in Guyana with nearly 42,000 ounces in estimated gold production between 1905 and 1916. At Peters Mine gold occurs principally in quartz veins in clayey sandstones, together with abundant pyrite and very minor galena, molybdenite and halcopyritre. Carbonate is abundant in the pelites. The Peters Mine property has both alluvial and hard-rock gold production. The Peters Mine mineralization is described in a NI 43-101 technical report by Cargill and Gow (2003) as follows: "Deposit types present on the Peters Mine property include primary, structurally controlled, epigenetic mineralization. The mineralization may occur as vein-hosted mineralization and/or in distinct wall rock alteration zones. As well, saprolite-hosted secondary mineralization is present in the weathered zone on the property. Mineralization on the Peters Mine Property is typically hosted in quartz veins characterized by sericite alteration. Gold is typically free milling and associated with pyrite, sphalerite and molybdenite. Gold is also present in the saprolite zone." A current indicated and inferred resources was estimated by Cargill and Gow (2003) for the adjacent Guyana Goldfields Inc.-Peters Mine property with a total estimated indicated resources of 420,000 tonnes grading 1.9 g/t Au in tailings and total estimated inferred resources of 353,000 tonnes grading 2.8 g/t Au in tailings and saprolite.

Mineral Processing and Metallurgical Testing

Mineral Processing and Metallurgical Testing

No metallurgical testing was carried out by Sacre-Coeur on the Million Mountain property but previous operators attempted to use gravity methods to recover gold from the high grade shear zone. Mined material was run through a sluice, without cominution. Head grade was estimated to grade over 7 g/t Au but recovery was less than 20%. Previous experience suggests that further metallurgical work is required and mined mineralized material treated before gravity separation and tailing further processed by an appropriate leaching method.

Mineral Resource and Mineral Reserve Estimates

There are no current resources or reserves on the Million Mountain Property calculated by an independent qualified person as those terms are defined in NI 43-101. See "History – Historical Mineral Resource and Minerals Reserve Estimates" above.

Conclusions

The Million Mountain area and adjacent Peters Mine area are one of Guyana's gold mining centers. Placer gold operations are active along a number of local streams and river dredging has occurred along the Puruni River. Quartz veined material from a local placer operation on Sacre-Coeur's ground contains course angular gold that suggests a local source. Previous exploration in the Million Mountain area by Heritage outlined a significant area of gold mineralization. A trenching and sampling program conducted by Sacre-Coeur confirmed a similar pattern of significant gold mineralization. Sampling by Christopher has confirmed the presence of a high-grade shear zone within a halo of auriferous stockwork quartz veining. A historic resource of 1,323,803 tonnes grading 3.78 g/t Au requires validation by twinning of additional auger holes and drill of core holes across the steep high-grade structure.

Recommendations

Recommended Work

Christopher recommends Phase 1 and Phase 2 programs of diamond drilling to test the high grade zone along its NW strike and at depth and to determine the extent and grade of the surrounding quartz stockwork. The Phase 2 program is not contingent on the results of Phase 1. The drill program should use angle core holes to cross the relative steep shear zone and test below the 20 meter, efficient operation range of past auger holes. Initial programs of 3,000 meters of core drilling are estimated to cost $1,304,501 and $1,153,744, respectively. The drilling programs should be conducted along with regional geological, geochemical and geophysical evaluation in other areas of the Million Mountain Project.

COST ESTIMATES FOR PHASE 1 AND PHASE 2 EXPLORATION OF THE MILLION MOUNTAIN PROJECT, GUYANA (RECOMMENDED AND WARRANTED)

Phase I Program Sub-totals Totals
Mob/demob (3000m/11800m) $4,166
Drilling, Moves, and Standby $375,000
Consumables $20,294
Contract Drilling (3,000 meters) $399,460
Technical $86,121
Camp $67,263
Labor $153,384
Exploration Supplies $10,875
Assay Cost $50,000
Camp Costs $125,343
Distributable Cost (14%)* $565,439
Subtotal Phase I Cdn$1,304,501
Phase II Program Sub-totals Totals
Mob/demob (3000mt/10800m) $4,166 $4,166
Drilling, Moves, and Standby $375,000 $375,000
Consumables $20,294 $20,294
Contract Drilling (3,000 meters) $399,460
Technical $66,121
Camp $48,934
Labor $115,056
Exploration Supplies $10,188
Assay Cost $60,000
Camp Costs $103,385
Distributable Cost (14%)* $465,656
Subtotal Phase II Cdn$1,153,744
Total Million Mountain Project Cdn$2,458,245

Note: * Distributable Costs include road building, heavy equipment costs (trenching), grid construction, surveying, and geological, geochemical and geophysical program for the seven Company project areas. The Lower Puruni regional block is assigned 14% of the Distributable costs.

Million Mountain 4Q 2004 – 1Q 2005 Work Program
Following execution of its initial property acquisition agreement with Alphonso in September 2004, the Company commissioned a program to perform initial confirmation of the historic auger drilling data developed by the former operator. Under the direction of Timothy Sadler, P.Eng and Dr. Hendrikus Aarden, P.Geol., access roads to the Million Mountain site were restored to permit access by trucks and heavy equipment. The Company's crews then cleared the former campsite and reconstructed and repaired the camp buildings and reinstalled water and sanitation systems to bring the camp to modern standards.

The camp is now fully restored and has the capacity to house up to 30 men. Once the camp and access was rebuilt, crews cleared the access road to the historic test pit and cleared back the over-growth from the pit itself. The original survey grid was re-established in preparation for geologic sampling. In March 2005, the Company conducted a 340 meter trenching program at its Million Mountain Property, located within the Lower Puruni regional block of its property holdings in Guyana. The trenches were located on the floor of the pit from which a bulk sample had been mined by a former operator for pilot plant testing. The purpose of the trenching program was to make initial confirmation of the former operator's reported historic auger drill results. The trenches were sampled both by the Company and by the Company's independent consultant, Dr. Peter Christopher, P. Eng., for his preparation of the Report, as described above. The trenches were excavated in the undisturbed pit floor utilizing a Caterpillar hydraulic excavator to an average depth of 3 meters by 1.25 meters in width. Orientation and relative location of the trenches is as shown on the diagram following the table of data. The trenches were continuously channel sampled over their lengths in 1.2 meter sample intervals. The assay results for the samples are presented in the Table of Shear Zone Trench Results below. The Company's sampling program was directly overseen by two senior employees of the Company, Dr. Hendrikus Aarden, P. Geol., Chief Geologist – Million Mountain Project, and Gregory Sparks, P.Eng., Senior Vice President – Mining and Exploration. Both men are Qualified Persons under NI 43-101. The results of trenching in the area of the known shear zone are presented in the table below.

Trenching Program Results at the Million Mountain Property

Million Mountain

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Shear Zone Trench Results

Million Mountain Trench Detail Map

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Summary Drill Results - Million Mountain