The Launay gold property in North Western Quebec has been held by the company since 1986. Two gold zones have been extensively drilled in the past and a study of these zones is underway by the company's consultants. The current program consists of 868 metres of diamond drilling and a soil sampling program. The geologist's report is in progress. Additional geophysics and drilling in the area will be planned following the receipt of the recommendations from Melkior's geologist and consultants.

Tthe results from a 1600 sample geochemical survey of the northern portion of its Launay property was announced in early 2006. The property is located 100km NW of Val d'Or, Quebec and covers 4677 hectares.

The gold geochemical survey identified six (6) significantly anomalous zones to be followed up. Sample sites are 25 metres apart.


Anomaly 1 - In a previously unexplored area, 414 and 922ppb gold
coincident with electromagnetic anomalies.

Anomaly 2 - In a previously unexplored area, 134 and 320ppb gold
coincident with magnetic anomalies.

Anomaly 3 - Close to a major shear, 121 and 463 ppb gold.

Anomaly 4 - Close to a major shear, 100m north of Zone 75 with
associated magnetics, 161 and 294 ppb gold.

Anomaly 5 - Southern extension of Zone 75, 128, 140, 142 and 337ppb
gold

Anomaly 6 - Coincides with the Principal Zone 200, 261, 297, 445,
449 and 1622 ppb gold.


The property is underlain by the Launay pluton as well as the eastern part of the Tascherau batholith. Seven (7) gold occurrences have been historically identified on the property. Two of these contain significant gold mineralization contained within N-S structures within a tonalite intrusion which is located at the contact between the Launay pluton and the Taschereau batholith. The host tonalite forms a band 200 to 400 metres wide and approximately 2km long. It is magnetic, altered, sheared, brecciated and locally mineralized with auriferous pyrite.

The most important mineralized zones on the Launay property have been reported historically prior to the 43-101 Standard.


1. Principal Zone - a 150 metre long N-S shear averaging 23m wide.
Drill intersection by Melkior's predecessor obtained best
intersections of 5.09g/t gold over 9.42m and 3.37 g/t gold over
6.8m. (DDHML-86-01, 86-03).

2. Zone 75 - consists of auriferous disseminated pyrite over a N-S
strike of 400m. The most significant drill intersections are
6.92g/t gold over 12.8m and 9.10g/t gold over 7.0m (DDH 87-92 and
MR 00-11) In 1988 a historical resource was estimated.


Melkior has engaged Geologica Groupe Conseil to review and evaluate all previous work carried out between 1986 and 2005. The gold potential of the Launay property is demonstrated by the historical work.