STAGE: Drill-Ready

LOCATION: 100 km NNE of Dawson City Air Access from Chapman Strip on Dempster Highway, 45 km east of property

PROJECT TARGET: To drill test a large mid-Proterozoic hematite breccia with high grade copper showings to search for a giant Olympic Dam type deposit

CLAIMS AND OWNERSHIP: Olympic property comprises 180 claim units (4000 ha); 176 100% owned by Commander Resources Ltd. and 75% of 4 claims jointly owned with Blackstone Resources Inc. Rob property comprises 19 claim units that are owned 50% each by Commander and Blackstone Resources Inc.

RECENT WORK PROGRAMS: On Olympic, the Company expended a total of $900,000 on linecutting, magnetometer and IP surveying, geological mapping and an eight hole, 2,622 metre diamond drilling program in 1997. On the Rob claims a program of prospecting, induced polarization and total field ground magnetics was completed in 1997.

MAPS & PHOTOS: Olympic & Rob

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GEOLOGY:

The Olympic property covers a portion of the Coal Creek Inlier, an oval shaped erosional window of Middle to Late Proterozoic sediments and carbonates of the Wernecke Supergroup. These sediments are in turn cut by a multi-phased easterly trending 10 sq km iron-rich breccia complex which measures up to 7,000 metres long by 2000 to 4000 metres wide and has been traced to depths of greater than 400 metres. The breccia complex is underlain by a large magnetic anomaly and has been cut by several regional east-west thrust (growth) faults and a steeper northeast trending graben structure. Intersections of these faults create large zones of dilation that are prime locations for ore accumulation.

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Widespread copper mineralization occurs within the matrix of the high energy, low temperature breccia bodies and along fractures. Majority of the samples returning significant copper values were from the western portion of the magnetic anomaly. The more significant samples reported assays of 5.0% Cu/1.5 metres, 7.0% Cu/4 metres and up to 21.4% Cu from grab samples. Copper minerals identified are chalcopyrite, bornite and malachite.

The breccia complex on the Olympic property has similar age, geometry, structure and trace element signatures to that which hosts the giant Australian Olympic Dam deposit which contains over 2 billion tonnes grading 1.6% copper and 0.6 g/T gold. New reserves are 3.8 billion tonnes (Jan. 2005)

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The Rob property is contiguous with Olympic and covers the graben and breccia complex extending to the southwest of the main Olympic target area. The Rob property was first located in 1977 by UMEX who identified a coincident copper and uranium soil geochemical anomaly. Further work in 1994 by Pendisle Resources defined in more detail the anomalous area through geological mapping, rock sampling and soil geochemistry. No drilling has been done on the property.

The breccias on the Rob property are largely carbonate matrix with strongly milled wall rocks and hematite alteration. Some semi-massive magnetite was found within hematite rich, matrix supported breccias. Locally, disseminated chalcopyrite was observed in the breccia matrix.

RESULTS:

The initial mapping program focused on the central area of the Olympic claim block that contains coincident copper in soil anomalies, multi-phase brecciation and increased faulting within by a large magnetic high. Subsequently, the IP survey revealed that weak to moderate en-echelon chargeability responses ranging from 1,500 metres long by 100-400 metres wide occur along the northern flank of the western magnetic high as well as coincident with the northern portion of a large northeast trending graben structure.

The 1997 drill program was conducted to test anomalous IP chargeabilities, within or immediately adjacent to the central graben structure.

The results from this 1997 drilling program confirm that an enormous extent of multi-episodic, variably altered iron-rich breccias and contemporaneous intrusive dykes occur on the Olympic property within a structural environment favourable for the formation of Olympic Dam style mineralization. Evidence of anomalous copper was also observed in three separate drill holes that returned values of 0.27% Cu over 9.0 metres, 0.20% Cu over 6.0 metres and 0.12% Cu over 2.8 metres. All of these elevated copper values were found to exist to the west of the main graben structure as evidenced by a strong boundary fault. All holes drilled westward through this fault were lost due to squeezing in the fault zone.

The drill results also indicate that the areas tested to date may represent distal / high level and lower temperature environments within such a mineralized system. This conclusion is based on the following observations: pervasive silica flooding or capping in the area of north central portion of the graben structure; copper mineralization predominantly associated with quartz and quartz-carbonate veining as well as fracture filling as opposed to more disseminated and replacement type mineralization; evidence of frequent, large sized blocks or rafts of non-brecciated material indicative of a marginal phase of tectonism as evidenced in the northeast portion of the area tested; much less copper mineralization occurring in the vicinity of the valley floor than that indicated by previous surface surveys on the hillsides to the east and especially to the west of the Pyramid Creek Valley.

Structural information gathered from the drilling program supports the idea that the area tested may be the down dropped, upper section of a major graben feature. Based on this information it is conceivable that at the time of mineralization the magnetic source underlying the valley floor may have been at or near the same structural level as the showings along the topographically higher hillsides to the west and east. Later normal movement along the older basement faults resulted in the down-dropping of the lower temperature, less mineralized upper portions of the breccia complex to the topographic position seen today.

Due to increased breccia intensity and alteration, high grade copper showings and the presence of anomalous Ba, Fe, F, K2O, Na2O and REE'S, west of the main graben structure, this area represents the most attractive exploration opportunity on the property at present. Three to four square kilometres of the breccia complex are mapped in this western target area.

Work on the Rob property in 1997 confirmed the coincidence of magnetite, heterolithic hematite breccias, anomalous copper-uranium in soils and anomalous copper-cobalt-gold values. Rock samples collected in 1994 included samples grading up to 10.8% Cu, 625 ppb Au, 0.29% Co.

CONCLUSIONS:

The initial drill program conducted on the Olympic Property (1997) tested only 6 of many viable targets located within the ten square kilometres of prospective breccia that underlies the claim block. From the work completed to date, it now appears that the drilled valley area may represent a graben feature, indicating that the top of the breccia sequence was drilled. Holes which penetrated the western boundary fault would therefore test a much deeper portion of the breccia complex. Significant copper mineralization has been mapped on surface and was encountered in this portion of the breccia body. This area also has a large copper soil anomaly exceeding 300 ppm Cu and alteration encountered in the limited drilling is significantly stronger west of the fault. The high grade copper encountered in the surface trenching are similar to copper grades and thicknesses encountered in early drill holes peripheral to the Olympic Dam ore body.

No drilling has been done on the Rob Property.

FUTURE PLANS:

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It is recommended that 6 to 8 deep holes be drilled to search for Olympic Dam style mineralization on this large western portion of the iron breccia complex. The Cu-Co-U soil geochem and magnetic anomaly at Rob should be drill-tested.

SIMILARITIES BETWEEN OLYMPIC DAM AND OLYMPIC (YUKON) PROPERTY

• Hematitic breccias with K-rich alteration.
• Strong magnetic source at depth.
• Brecciation strongly structurally controlled at the intersection between regional structures.
• Grade increases with intensity of brecciation and mineralization.
• Extensive flooding of barite and rare earth elements throughout the hematitic breccia
• Association of fluorite with ore bearing minerals copper, gold and uranium indicate a similar source of ore forming fluids.
• Genetic association with a particular intrusive suite.

SIMILARITIES BETWEEN CLONCURRY DISTRICT AND OLYMPIC (YUKON) PROPERTY

• K-rich alteration systems specifically associated with Cu-Au in Cloncurry, where regional, barren alteration is Na-rich.
• Strong correlation between dilation (ie. Vein density/thickness, intensity of brecciation) and grade.
• High grade, massive sulphide zones in Cloncurry deposits are very tightly structurally controlled, and commonly surrounded by lower grade, disseminated mineralization.
• Very close spatial, temporal, and genetic association with a particular intrusive suite.
• In general, Cloncurry deposits are more proximal to intrusions, with higher temperature alteration of magnetite (vs hematite), biotite/amphibole (vs chlorite), gold (vs silver).
• Some indications from magnetics that some Yukon breccias/mineralization becomes more magnetite-rich with depth (? more gold values with depth).