Marudi Project

Marudi Mountain has the earmarks of a world class gold opportunity and the project brings a heritage of good work. Kilborn produced a negative feasibility report in 1995 citing these resources prior to the formal introduction of NI 43-101 requirements. Our objective is expand the Mazoa target by a well defined exploration program on parallel structures and known extensions to existing resources while developing other new but clearly defined targets for further rapid growth. We envisage that a NI 43-101 compliant resource estimate will be undertaken as soon as the airstrip is commissioned and funds required to support a sustained program are in place.

We have already identified previously unknown extensions of the existing resource to the north & south and a duplicate parallel horizon running along the east flank of the previously identified resource (none of which were ever drilled). Our recent geological mapping, exploration trenching and TRADO sampling programs have enabled us to identify that the potential to expand the existing resource by further drilling in the immediate Mazoa area is highly probable with a minimal amount of diamond drilling. The Mazoa Hill Resource is based on intensive work along 350 meters of strike in a fault bounded block of ironstones. The next phase of work is designed to provide systematic trenching, mapping and TRADO drilling to prepare for a Winter 2010 diamond drilling program. Expansion of the Mazoa target will require at least five well spaced trenches, a systematic array of TRASDO drill holes, and about 2,500 meters of diamond drilling in 24 holes. Our recent work has demonstrated the presence of more than 12 km of mineralized structures and horizons in the core of the district and the opportunity for a major expansion beyond the historic resources is clear. Our winter 07/08 program has demonstrated the presence of important new targets in the Marudi/Marudi North and Toucan Hill areas.

We are confident that the staged program of trenching, mapping, TRADO drilling and diamond drilling scheduled for this year will generate a rapid expansion of the existing non-compliant resources and discovery of additional mineralized zones as well. This is our mission and we are well equipped to perform it. Our team consists of a seasoned group of mining professionals with varied backgrounds and a wealth of experience worldwide including multilingual proficiencies and people who are very experienced at working and exploring in the wet tropics. Because of this background and knowledge, we have very quickly been able to economically and substantially expand the Marudi Project potential.

The above compilation illustrates planned trenching during the summer of 2008 (heavy blue lines) and is superimposed on the results of a 1 m deep auger geochemical survey covering an area of approximately 6 km2. Note that the smallest red dots signify gold in soils in excess of 0.200 g/t and the larger dots indicate values up to and in excess of 30 g/t. The heavy red lines indicate gold bearing structures recently identified – in excess of 12,000 meters of newly discovered mineralization and 25 NEW Targets.

The above compilation shows the distribution of the known mineralized lenses at Mazoa Hill, the associated auger geochemical expression, and the priority work plan for 2010 including trenching (heavy blue lines) and 50 meter spaced sections of shallow diamond drill holes (black diamonds). This simple drill program is designed to provide the information needed to re-evaluate and expand the 2002 version of the Mazoa optimized open pit; our expectation is that the drill results and present gold prices will increase the gold resource. NI 43-101 Report update planned for late 2009.

Marudi Mineral Resource and Mineral Reserve Estimates

The information available for the Marudi Property is clearly sufficient to undertake estimation of a resource compliant with NI 43-101 standards. Shoreham and the author, have not undertaken such a resource estimate at this time because the mineralized areas in the subject property are much more extensive than those represented in the systematic drill sample data provided by previous workers. Systematic evaluation of these exploration targets is fundamental to the author’s recommended work programs. On completion of these recommended programs a fully compliant resource estimate will be a fundamental step in advancing the property with a correct perspective of its size potential.  Correspondingly, no NI 43-101 compliant resource estimate has been prepared as of this time.

Various (non-compliant) “resource” estimates were completed in 1990, 1992, and 1995 (Table 6).  In 2004 these estimates were reviewed by R. P Ilchick (2004b), a consulting geologist to Vanessa Ventures (Guyana) Ltd. who calculated an updated estimate based on his review of information available to him at the time. The author has reviewed the “resource” estimate made by Ilchik in 2004 but cannot verify and validate his conclusions, or methodology, particularly because the estimated totals are at significant variance to the earlier compilations. The author notes that the estimates completed prior to 2004 (Table 6) are historic compilations and the specific details and the methodology employed by the evaluators are not known to the author.  While the author notes the compilations were undertaken by competent professionals, a Qualified Person has not conducted sufficient work to classify the historical estimates as current mineral resources as defined by NI 43-101. Consequently, data should not be relied on for any economic assessment or evaluations. 

Mazoa Hill Historical Drilling
Summary of Key Intersections

Hole     Depth     Az/Dip          From   To          Width           True Width    Au g/t                              Comments     
                                                                       (metres)            (metres)                   

 60        163      180/-53            0          163      163                     114             3.11                 Terminated in 2.31 g/t
                        Includes                                    36                       25               5.20         
61        212      180/-49            84        201      117                       82              4.43        
63          84      180/-50            30          84        54                       38              3.06                 Terminated in 2.5 g/t
68        179      230/-.50           87        156       69                       62               5.40    
73        219      180/-50            78        189      111                       78              2.08       
74        272      180/-50            81        192      111                       78              3.18       
75        235      180/-50            81        183      102                       71              1.43       
90        306      180/-50         230        306        77                       54              4.74                 Terminated in 4.2 g/t
94        239      180/-50            84        228      144                     101              2.19       

The table above is a summary of selected mineralized diamond drill hole intercepts which define the Mazoa Hill gold resource. While these values are very encouraging, it is clear from our recent site examinations that the Mazoa Hill target was terminated by cross structures at each end and that the newly recognized north extension, south extension, and eastern parallel zone remain untested and represent high priority drill and trench targets. Our company is in the enviable position to undertake this program and enjoy a substantial increase in value with very little technical risk.

Marudi North TRADO Sections

Best TRADO Drillholes
11.2 g/t  over  6 metres
4.03 g/t  over  6 metres

The above table is a summary of new data from our Winter 2008 TRADO program in the Marudi North Target area. This is a major new frontier for the property which represents the southern end of a newly recognized swarm of mineralized structures as indicated in the sketch below. The sketch shows drilling from the 1940’s and the auger anomalies and the location of the Marudi North Systematic auger profiles reported in the table above. The sketch also shows the Marudi, Marudi North and the Western Portion of the Toucan Hill targets as well.

Alluvial Production Contracts: The weathering environment and prevailing practices in Guyana provide the opportunity to commence low cost but profitable surface mining operations processing unconsolidated surface materials to recover gold. At the Marudi Project area, Participaciones Rexma S.A. has undertaken to commence alluvial production with a minimum daily production rate of two thousand cubic meters, with 10% of gross production payable to Shoreham as a royalty. The Company anticipates significant reductions in its project overheads due to equipment rentals, infrastructure improvements and services fees as the mining areas are prepared and the processing equipment is mobilized. REXMA, working with Shoreham and the license holding company Romanex are proceeding through the expanded environmental impact permitting and base lines studies with the objective to secure EPA Permits for commercial scale alluvial operations in November 2009. The next step will be installation of processing facilities and hence positive cash flow from these operations while Shoreham dedicates its talents to exploration and development of the large laterite and bedrock targets within its land positions.