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| | Summary The Kinaskan Lake copper-gold project is located on the southern end of the Klastline Plateau in the Stikine River region of north-western British Columbia, approximately 200 km north of Stewart and 75 km south of Dease Lake. The Donnelly-GJ-North copper-gold porphyry zones are the principal exploration targets within the 39 mineral claim, 20,155 hectare, Kinaskan Lake Property owned and operated by Canadian Gold Hunter Corp.
The rocks underlying the property have been mapped as Upper Triassic, Stuhini Group (basic volcanic flows, volcaniclastics and sedimentary rocks), unconformably overlain by Lower Jurassic, Hazelton Group andesitic to felsic flows and volcaniclastic rocks. Intruding the sequence throughout the property are numerous small, quartz deficient plugs, sills and dykes of Late Triassic or Early Jurassic age, of diorite to monzodiorite and monzonite composition. The largest of these is the northeast-southwest striking Groat Stock which is at least 10 km long and up to 1.5 km wide, and is off-set by numerous, north-south striking faults. Along the southwest extremities of the stock, porphyry copper-gold mineralization occurs in at least three areas, referred to as GJ, Donnelly and North zones.
Exploration work on the copper-gold porphyry mineralisation dates back to 1964 when Conwest Exploration Co. Ltd. ("Conwest") first recorded doing work on the property, concentrating on the GJ Zone. From 1970 to 1983, when CGH first became involved in the GJ project through a predecessor company, numerous companies have explored the GJ, Donnelly and to a lesser extent, the North Zone. Encouraging drill results were obtained by earlier workers (including 100.6 metres grading 0.46% Cu, 0.95 g/t Au and 8.94 g/t Ag) in Amoco Canada Petroleum Co. Ltd. ("Amoco") hole 70-02 in the GJ Zone, 187.5 metres grading 0.31% Cu and 0.78 g/t Au in Texasgulf Canada Ltd. ("Texasgulf") hole 70-4/11 in the Donnelly Zone and 112.8 metres grading 0.15% Cu, 0.08 g/t Au and 0.64 g/t Ag in Amoco hole 71-10 in the North Zone). In 2000, after acquiring all the ground covering the Donnelly, GJ and North Zones, the Company initiated a systematic exploration program including induced polarization geophysics ("I.P.") and ground magnetic surveys, bedrock surface geochemical sampling, and geological mapping. By 2004 that work had outlined a broad I.P. chargeability anomaly measuring at least 4.5 km east-west by 3.3 km north-south. Within that zone two significantly stronger chargeability zones with coincident, magnetic highs and Cu-Au, bedrock geochemical anomalies were outlined. The larger is an open-ended anomaly measuring 3500 metres southeast-northwest by 1000 metres wide that encompasses both the GJ and Donnelly zones. The second is an 1800 metre east-west by 800 metre north-south anomaly covering the North Zone.   View of Donnelly Zone and North Zone Diamond drill testing of these anomalies began in 2004. To the end of the 2006 program, a total of 37,144 metres of diamond drilling has been carried out in 128 drill holes. By far the most success has been achieved in the Donnelly Zone. In 2004, drill holes, both east and west of previous Texasgulf holes, encountered strong vein-hosted and disseminated chalcopyrite-pyrite mineralization yielding intercepts as wide as 198.1 metres grading 0.416% Cu and 0.389 g/t Au. In 2005, the Donnelly Zone was tested to the east, west and at depth. In addition in-fill drilling was carried out to reduce hole spacing to 100 metres. Copper-gold mineralization was traced over a 1500-metre strike length from hole 05-076 in the west to hole 05-030 in the east. Hole 06-067, which intersected 249.7 metres grading 0.304% Cu and 0.500 g/t Au, is typical of the central and eastern area. Drilling over the westernmost 100 metres of the deposit discovered higher grade mineralization in strongly developed stock-working and sheeted quartz veining, with a best intercept of 0.832 % Cu and 1.304 g/t Au over 46.95 metres in hole 05-076. In 2006, a new zone, referred to as the Donnelly North Zone was discovered. The Donnelly North Zone, which lies directly north of the west end of the Donnelly Zone, is underlain by a large IP anomaly that is about 1,100 metres by 500 metres in area. Highlights of drilling in this new zone are hole CGH-06-099, which intersected 189 metres grading 0.220% copper and 0.416 g/t gold, including 82.3 metres grading 0.334% copper and 0.627 g/t gold and CGH-06-103, which intersected 126.9 meters grading 0.264% copper and 0.331 g/t gold, including 91.4 metres grading 0.300% copper and 0.401 g/t gold. In addition, deep drilling on the west end of the Donnelly Zone was very encouraging. Hole CGH-095 intersected 192.0 metres grading 0.302% copper and 0.463 g/t gold. Hole CGH-06-100, which was drilled entirely within the hangingwall rocks, south of the high grade portion of the Donnelly Zone intersected the thickest interval of mineralization to date, 568.9 metres grading 0.214% copper and 0.242 g/t gold, with several higher grade intervals contained within. High-grade, near-surface results from the Donnelly Zone, in 2006, include holes CGH-06-125, which graded 0.50% copper and 0.61g/t gold over 82.3 metres; 06-127, which graded 0.79% copper and 0.97g/t gold over 30.6 metres and 06-128, which graded 1.49% copper and 1.80g/t gold over 39.3 metres. The high-grade, near-surface core to the Donnelly Zone is 30 to 100 metres wide and extends for almost the entire 1670-metre strike length of the Donnelly Zone. This high-grade core grades in excess of 0.5% copper and 0.5 g/t gold and would be easily accessible in the early days of an open-pit mining operation. It is generally part of a thicker, lower-grade zone that is up to 300 metres wide and averages about 0.3% copper and 0.3 g/t gold. Donnelly Zone copper-gold mineralization has now been traced for 1670 metres in an east-west direction from hole 06-104 in the west to hole 05-080 in the east. The Donnelly North mineralization expands the north-south extent of the mineralization to about 700 metres and the deep mineralization in hole CGH-06-100 expands the vertical extent of the zone to 600 metres. The Donnelly Zone has a number of attractive features, including easy access from the Stewart Cassiar highway and gentle topography, which when combined with the near-surface high-grade core enhances the economic viability of the project. In the North Zone, drill holes encountered strong alteration associated with hydrothermal brecciation and pyrite veining, but chalcopyrite was generally confined to a 200 metre by 200 metre zone centered on the North Showing where the best intercept was 81.6 metres grading 0.292% Cu, 0.223 g/t Au and 2.38 g/t Ag in hole CGH-04-007. Drilling and trenching at the GJ Zone encountered some encouraging mineralization, but the mineralization lacked continuity. The best results were from hole CGH-05-48, which intersected 41.83 metres grading 0.456% Cu and 1.272 g/t Au, and from trench TR-05-4, which returned 0.43% Cu and 0.92 g/t Au over 38.0 metres. In March 2007 the Company completed an updated independent resource estimate on the Donnelly and North Donnelly Zones at its GJ/Kinaskan gold-rich porphyry copper deposit in northern British Columbia. Resource Estimate An NI 43-101 compliant technical report detailing these resource estimates was completed by Mr. Mehner, Mr. Giroux and Dr. Peatfield. The GJ/Kinaskan Property is located in northern British Columbia about 10 kilometres west of the Stewart Cassiar highway. The claims underlie an area of about 150 square kilometres, which contains 21 significant mineral showings, including the Donnelly, GJ and North zones. On July 3rd 2007 field crews and two diamond drill rigs were mobilized to the GJ/Kinaskan project base camp in northwestern B.C. and the summer 2007 drill program commenced. The Company has received assay results for the first 28 holes of a planned 85-hole, 17,000-metre diamond drill program. Please see the link below for complete results. On the Donnelly Zone, highlights include drill hole 07-148, which intersected 101.0 metres grading 0.77% copper and 0.76 g/t gold and drill hole 07-152, which intersected 109.7 metres grading 0.57% copper and 0.55 g/t gold. The North Donnelly zone results are generally low grade, in the range of 0.15% copper and 0.25 g/t gold. Approximately half of the drilling is focused on outlining higher-grade mineralization within the Donnelly Zone. The overall Donnelly resource (based on results from 78 diamond drill holes, at a cut-off of 0.15% copper) is 172.15 million tonnes grading 0.274% copper and 0.312 g/t gold in the indicated category (see CGH news release dated March 26, 2007). A higher-grade, near-surface core to the Donnelly zone grades about 0.5 % copper and 0.5 g/t gold. This part of the program will attempt to better define and increase this higher-grade tonnage. The remaining holes are testing the North Donnelly Zone and reconnaissance targets. The North Donnelly Zone was discovered last year and has only been tested by 25 drill holes. It underlies an area about 1,000 metres by 500 metres. An inferred resource for the North Donnelly Zone, at the same cutoff, consists of 22.67 million tonnes grading 0.254% copper and 0.362 g/t gold. The focus of the 2007 drilling is porphyry-style, copper-gold mineralization associated with the Groat stock, a poorly exposed elongated stock of monzodiorite, which intrudes andesite and volcaniclastic sediments. Four mineralized zones have been discovered associated with the Groat stock: the Donnelly Zone, the North Donnelly Zone, the GJ Zone and the North Zone. Significant gold-rich porphyry deposits that occur in the region are Red Chris (Imperial Metals): 446.1 million tonnes grading 0.36% copper and 0.29 g/t gold, and Galore Creek (Nova Gold): 516.7 million tonnes grading 0.60% copper and 0.36g/t gold. The Company reported assay results for an additional 24 holes in a news release dated December 5, 2007. On the Donnelly Zone, highlights included drill hole 07-167, which intersected 96.53 metres grading 0.50% copper and 1.81 g/t gold, drill hole 07-171, which intersected 103.6 metres grading 0.58% copper and 0.79 g/t gold, drill hole 07-185, which intersected 94.5 metres grading 0.57% copper and 0.74 g/t gold and drill hole 07-192, which intersected 106.7 metres grading 0.61% copper and 0.57 g/t gold. The drill program was completed on September 23rd and consisted of 80 holes totaling 15,834 metres. Final assay results for the last 28 holes were reported in a news release dated March 11, 2008. On the Donnelly Zone, highlights include drill hole 07-197, which intersected 64.0 metres grading 0.49% copper and 1.06 g/t gold, drill hole 07-203, which intersected 72.5 metres grading 0.75% copper and 1.03 g/t gold and drill hole 07-212, which intersected 219.5 metres grading 0.47% copper and 0.49 g/t gold, including 64.0 metres grading 0.84% copper and 0.87 g/t gold. The Company will complete a new resource calculation and an economic evaluation of the Donnelly Zone in 2008. 
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