Operations - Back River Project

BACK RIVER PROJECT
Nunavut, Canada

The Back River Project consists of 45 leases and 26 mineral claims totalling 158,603 acres. In addition, DPM has another 95 mineral claims totalling 202,367 acres on both Crown and Kitikmeot Inuit owned lands. These claims, referred to as the Wishbone property, are located 50 kilometres west of the Goose Lake project on the Hackett River Group volcanic trend. The Wishbone claim group extends 60 kilometres in length and is located in an area possessing a favourable geological setting for gold, copper, silver, zinc and lead mineralization.

In 2007, an independent NI 43-101 compliant resource estimate was completed on the Back River project defining in excess of 3.4 million tonnes of Indicated and 3.5 million tonnes of Inferred Resource grading approximately 10 grams gold per tonne (cut-off grade of 5 grams per tonne). To date, DPM has received all outstanding assay results from both the diamond drilling and soil geochemistry sampling programs carried out on the project during 2007. The assay results are currently being reviewed by the project geological team and will be integrated into a target ranking process in the first quarter of 2008.

Exploration expenditures for 2007 totalled $21.4 million and included 10,473 metres of diamond drilling, the collection of greater than 20,000 soil samples, the staking of 95 mineral claims along the Hackett River Greenstone belt and ongoing baseline environmental monitoring activities.

Planning for the 2008 field season is underway and will be the primary function in the first quarter of 2008. The Back River camp will open in mid-March and a total of three diamond drills have been committed for use on the project by the diamond drill contractor as part of the 2008 exploration drill program.

The objective of the 2008 exploration program at Back River is to conduct approximately 10,000 metres of diamond drilling. Infill diamond drilling will be conducted on both the George Lake and Goose Lake deposits with the intention of converting the currently defined Inferred Resource categories to higher levels of resource confidence. Concurrently, core samples representative of the mineralized zones will be collected for additional metallurgical test work in support of the internal scoping level study. Thermistors will be installed to monitor the permafrost temperature conditions at the Goose Lake and George Lake deposits. A project budget of $13.0 million is planned at Back River in 2008.

DPM is presently conducting an in-house scoping level study on the project; the results of which will determine the direction of the project.