Five Star

The Property:

The Five Stars Gold property is located on Map Sheet 4SW “AMAKURA” in Guyana and consists of fourteen (14) Medium Scale Prospecting Permits encompassing an area of approximately 13,000 acres near Matthew’s Ridge in northwestern Guyana.

 Previous Operators and Status:

The Property has been held and evaluated by Golden Star Resources Ltd. and HGB Ventures Ltd. The Property was recently held for three years by Goldport Resources Ltd. without documented sampling or other work. The soil and auger geochemical targets in the Whana Package and the adjoining Reis and Yearwood Medium Scale Licenses represent the first priority targets in the SMH-Mulgravian-Guiana Shield Transaction. The corresponding geochemical targets in the Five Stars property are well defined extensions of these targets and will increase the potential for development of a major gold resource in this Project Area.

 Total Soil Samples (1995-1997):  1,114
 Low: 5 ppb Au            High: 80.2 g/t Au (Metallic Assay)
169 samples >50 ppb Au;   Average: 139 ppb Au;        Median: 16 ppb Au

Mining Activity:

Ten groups of artisanal miners are working with permission from the proprietor with four and six inch monitors and crude gravity systems. We have no production records but the area has been active for many years. Current activity is stifled by deteriorating access roads which Shoreham will rehabilitate as part of its program.  Examination of the alluvial work areas will be part of our initial examinations, since these areas are generally the most accessible mineralized outcrops for sampling.

Target Status and Objective:
 
Three phases of soil and MMI geochemistry by previous operators (Golden Star and HGB Ventures) show gold bearing zones with similar stratigraphic and structural controls as the adjoining targets on the Whana Packages. Combined with the Whana Licenses this package represents a strong assemblage of drill targets (to be refined with deep auger profiles and mapping) with a reasonable expectation of developing multi-million ounce gold resources.   

Compilation of geology and geochemical responses in part of the Whana Project Area and the Five Stars Property.

Proposed Work Programs:

• Road and access trail development in conjunction with work on the adjoining Whana and Black Banana Properties.
• Detailed deep auger (TRADO) profiles to refine target development, with consideration of backhoe trenching for structural control as conditions and logistics permit.
• Systematic diamond drilling with emphasis on development of large tonnage low grade gold targets as logical extensions of the work on the Whana and Black Banana License Area.
• Shoreham has budgeted $750,000 toward road building and repairs, trenching and TRADO driliing on the Whana, Black Banana and Five Star properties over the next six months in order to prepare them for diamond drilling early next year.

Compilation of airborne magnetic surveys and geochemical responses in part of the Whana Project Area and the Five Stars Property