Transcript Corporate Objectives

Development Plan
Corporate Objectives

Increase shareholder value through
exploration & development of large
impact mineral projects in North
America and Australia
 Build a cash flow driven resource
company within 2 years through
strategic development of existing and
proven properties in Australia and
North America
 Continued exploration and mining of
high grade, shallow gold, copper and
nickel deposits in Australia
 Development of a major gold tailings
project in South Dakota
Company Profile
Goldstake Explorations Inc.:
Publicly listed, Canadian mineral exploration
and development company, 1st incorporated as
Seemar Mines Ltd. in 1966 & traded on the OTC.
Name was changed to Goldstake Explorations Inc.
in 1986 and has traded on the TSE under the
symbol GXP since 1988.
Has a diversified portfolio of precious metal
properties in Canada, the United States, Australia
and Indonesia
Property Portfolio
Goldstake Exploration Inc.’s business
strategy has been to acquire properties
meeting the following criteria:
1. Proximity to proven or probable high
grade reserves
2. Shallow depth of ore deposits
3. Easy access to existing infrastructure
5 Priority Goldstake Projects
KEY MINING AND DEVELOPMENT OPPORTUNITIES
PROPERTY
KEY
RESERVES
OWNERSHIP
HOME OF
BULLION
Proven/probable reserves
of 9 million pounds of
high grade copper (also
Ag,Au, Zn, Pb & Pgm)
EL# 23186
50% Goldstake
25% R. Cleaver
25% IGM Pty Ltd
$3 million AUS
Feasibility study
1997 mining on one gold
bearing reef averaged
over 2 oz/ton at a depth
of 195 ft. Mining target
400oz gold per day. 11
gold bearing reefs on site.
GL# 5801 & 5809
DL# 31231
Goldstake owns
20% of Silver
Orchid Pty Ltd
(leaseholder)
$3 million AUS
Feasibility study
Drill results indicate
resource of over 3 million
tons. Drill intersections
as high as 1.48%
Copper,0.48% Nickel,215
grams Silver &5.8 grams
Gold over 16.9 ft.
EL# 23186
50% Goldstake
25% R. Cleaver
25% IGM Pty Ltd
Drilling from surface
assayed 96 feet, average
3.32% Cu and 0.11% Ni
including 6 feet of 23%
Cu & 0.21% Ni
EL# 23186
50% Goldstake
25% R. Cleaver
25% IGM Pty Ltd
Proven/probable reserves
of 250,000 oz. of gold
80% Goldstake
20% Strawberry
Hills Mining Inc.
Barrow Creek,
NT, Aus.
HILL END
NSW, Aus.
PROSPECT D
Barrow Creek,
NT, Aus
PROSPECT D
“A”
Barrow Creek,
NT, Aus
WHITEWOOD
CREEK
South Dakota,USA
Recovery costs of $100/oz
DEVELOPMENT $
$3 million AUS
Feasibility study
$1 million AUS
Feasibility study
$2 million US
Feasibility study
Directors & Officers
Goldstake’s management & consultants are
professional mining engineers, geologists &
businessmen with many years of hands on
experience in the development & operation
of small and large scale mining companies
Directors & Officers

Robert B. Cleaver, Director &President
32 years of experience in precious metals
exploration & mining; global network of contacts
including top mining industry specialists
Charles L. McAlpine, Director &
Secretary/Treasurer

41 years mining industry experience, director of
several Canadian mining companies & of Hecla
Mining Company, a major US silver/gold producer
Peter Froneman, Director & Audit
Committee

Canadian businessman involved with the
engineering equipment industry for 31 years

Peter Mills, Director & Audit Committee
Senior Executive with over 30 years experience in
marketing, advertising & real estate in Canada and
the United States
Key Industry Consultants
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Fluor Engineers; San Francisco; USA
Employed by Goldstake to verify ore
reserves & prepare bankable feasibility for
Whitewood Creek, South Dakota gold
tailings site
Bateman Engineers; Denver USA – Perth
Aus. Johannesburg, S.A.
Responsible for metallurgy, engineering
for the Whitewood Creek feasibility study
Knight Piesold Engineers; Denver USA
Designed heap leach and tailings pond at
Whitewood Creek
Kappes CassidyMetallurgical Engineers;
Reno, USA
Executed metallurgical studies on gold
tailings at Whitewood Creek property
Key Industry Consultants Cont’d

Minproc Engineers; Perth Australia
World renowned firm specializing in
Mining design processing &
construction

Sidley & Austin, Environmental Law
Firm; Washington, D.C.,USA
Responsible for dealing with EPA &
CERCLA legal requirement on
Whitewood Creek project.
Dealt with lawyer Stephen D. Ramsey
who is now V.P. - Environmental for
General Electric, USA.
Key Mining and Development
Opportunities

Goldstake Explorations Inc.
owns interests in 5 mining
projects that have proven &
probable reserves

All of which can be put into
production, subject to
feasibility, permitting &
development financing
5 Key Goldstake Properties
1.
Barrow Creek Properties –
Northern Territory Australia
a) Home of Bullion (Copper,
Silver, Gold, Zinc, Lead)
b) Prospect D (Copper, Nickel,
Gold)
c) Prospect D “A” (Copper,
Nickel, Gold)
2.
Hill End – NSW, Australia (Gold)
3.
Whitewood Creek – South Dakota,
U.S.A (Gold)
Barrow Creek Properties
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
(NT, AUS)
Located 300 KM north of Alice Springs
Exploration License #23186 covers 825 sq.
km & is valid till August 2008
Ownership Details
 50% Goldstake
 25% Robert Cleaver, Goldstake President
 25% Imperial Granite & Mineral Pty Ltd,
Darwin Aus. John Benger, miner/prospector
is the sole shareholder
 Above license holders have exclusive rights
to explore & obtain mining leases during
license period. No formal agreement
between license holders other than all parties
will do their best to advance property
production & each party’s investments will
be repaid from production income
 See following map (Exhibit 1) for mine
locations
Barrow Creek Map
Barrow Creek Properties:
Home of Bullion
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Profitable mining can be undertaken
concurrently with proving up additional
reserves on this massive sulphide high
grade deposit
5,500 tons produced in 1948 with 2,500
tons returning 22.5% Cu
Proven & Probable ore up to 15% Cu to
300 ft. is approximately 9 million lbs. of
copper
 3,300 tons proven sulphide ore reserves at up to
15% Cu above 60 M
 33,000 tons probable oxidized ore at 4% Cu –
2% Pb to 35 M
 13,200 tons probable secondary ore up to 15%
Cu – above 60 M
 33,000 tons probable ore at 6% Cu – 2% Pb –
5.10% ZN between 60-90 M

Recent Sampling: September 2002
Silver 9-15 ozs., Gold up to 4 dwts (or 6 gmt) &
21.4% & 33.9% copper
Home of Bullion Map
Barrow Creek Properties:
Prospect D (Cu, Ni, Au, Ag)

1972, 11 diamond drill holes along a 2 km
strike length to a depth of 300 ft. indicated
probable resource of:
Tonnage Copper Nickel Width
Oxide 1,633,600 0.512% 0.151% 30’
Sulphide 1,530,200 0.621% 0.247% 28’


Drill intersections as high as 1.48% Copper,
0.48% Nickel, 215 grams silver & 5.8 grams
Gold over 16.9 ft. at shallow depth (hole 7)
Gold & Silver values not given for most of
1972 drill results but a mining operation
would produce Gold & Silver as well as
Copper & Nickel
Prospect D Map
Barrow Creek Properties:
Prospect D “A”(Oxidised Area)

Results of Airtrac percussion dill
holes in 1972 showed:
Line 93’ W (A) surface to 103 feet
2.44% Cu 0.41% Ni
Line Zero (B) 96 feet
3.43% Cu 0.91% Ni
Line Zero (C) 54 feet
5.77% Cu 0.21% Ni
Line 100’ E (D) 96 feet
3.32% Cu 0.11% Ni
Includes 6 feet (52 to 58 feet of
23.0% Cu 0.21% Ni
Prospect D “A” Map
Hill End
NSW, AUSTRALIA (Au)
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Gold license #5801 covers 4.626 hectares (11
acres) & is valid till Dec. 2022
Gold license #5809 covers 3.42 hectares (9
acres) & is valid till Dec. 2022
Dredging license #1231 covers 40.44 hectares
(90 acres), due for renewal in 2004 for 21 years
Hill End is the richest gold field, per ton of ore
crushed, in history, with the average grade
recovered over 30 oz per ton.
639 lb Gold Nugget (world’s largest) mined
at Hill End in 1872
1997 production at Golden Gully produced
2 oz/ton at a depth of 190 feet along a 240 foot
section of one 10” wide gold bearing reef.
Mining ceased when miners broke into old
workings
There is a total of 11 gold bearing reefs in this
saddle reef formation
Past mining restricted to a depth of 250’ due to
water flows which today are no problem
Gold reefs are known to extend to at least 1500’
Hill End Cont’d
NSW, AUSTRALIA (Au)
Production Plan:
 Sink
a decline or vertical shaft
initially to 600 ft. vertical
 This will allow access to all 11
gold bearing reefs
 Production target 200 tons per
day for 400 ounces of gold
 This will increase periodically
due to patches of bonanza grade
gold values (ie. Up to 20 ounces
per ton in Cosmopolitan shaft –
1872 mine manager’s report)
Hill End Ownership
NSW, AUSTRALIA (Au)

Leases owned 70% by Silver Orchid Pty
Ltd, a private company registered in NSW,
Australia
 Goldstake owns 20% of shares in Silver
Orchid & has no obligation to contribute
funds to Hill End
 Goldstake has an opportunity to increase
ownership of leases at Hill End to 50%
 First Tiffany Resources Corp., a Canadian
public company, owns 20% interest
(carried to feasibility) in the leases
 Clarence Fowler, the original lease vendor,
has a 10% interest in the leases
 Robert Cleaver (Goldstake President) &
Charles McAlpine (Director/Secretary)
own 40% interest in Silver Orchid
 Agreement that all funds contributed by all
or any of the shareholders will be
reimbursed from gold production revenue
Hill End Map
Hill End Development Plan
Hill End Cross Section
Showing Saddle Reef Formation
Whitewood Creek
South Dakota, USA (Gold tailings)
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Proven/probable reserves of 729,000
(Goldstake owns over 250,000) with
recovery costs of less than $100/ounce
Requires Barrick Gold participation
Possible 2 million ounces of gold in this
project owned by Barrick and Goldstake
Ownership Details
 Goldstake owns 100% of its properties
 Strawberry Hills Mining Inc. has a 20%
interest/net profits once a positive
feasibility study completed
 Strawberry must contribute to ongoing
costs
 No director of Goldstake owns shares in
Strawberry
 Strawberry is controlled by a local South
Dakota prospector named Maurice
Hoffman who brought the Whitewood
Creek project to Goldstake in 1986
Whitewood Creek Map
PLANT
RECOVERY SITE
TAILINGS
REPOSITORY
Section 3: Exploration Targets
Goldstake has identified 4 exploration targets:
Barrow Creek Properties - NT, Australia
Mulbangas
Barrow Creek Copper Anomaly
Utopia - NT, Australia
Hemlo - Ontario, Canada
MULBANGAS (Cu)
 Is
a surface copper outcrop in
Northern Territory, Australia
 Part
of a mineralized strike line
of approximately 40 km North
to South
 Ownership
Details
 Same as Barrow Creek
Barrow Creek Exploration Map
Barrow Creek
Copper Anomaly (Cu)
 This
magnetic anomaly was
identified by an induced
polarization survey conducted
by the NT Government Survey
 Ownership
Details:
 Same as Barrow Creek
Utopia
NT, Australia (Ta, Sn)
 Located
300 km north of Alice
Springs
 Exploration License #23187
covers 1,800 square km
 Tantalum/Tin mineralised layered
pegmatite over 5 km long and
140 M wide on surface
 Assays of up to 2 pounds tin (Sn)
& 1 lb. Tantalite (Ta)
Hemlo
Ontario, Canada (Au)

104 acre property adjacent to and northeast of the Hemlo David Bell gold mine
which is now owned by Barrick gold
 Mining is approaching west side of the
Goldstake property
 Geological evidence suggests that Hemlo
ore body dips to north and does extend into
Goldstake properties
Ownership Details
 50% Goldstake
 50% Bernard Boos, Vancouver based
businessman who was controlling
shareholder in Seemar Mines
 Goldstake/B. Boos own surface rights to
Hemlo & pay provincial rent under 3
patented leases (approximately $120.00 per
annum)
Hemlo Map
Project Priorities
(In Order of Importance)
1) Home of Bullion (NT, Australia)
 Develop further ore reserves on ore body.
 Dimensions 550’ x 15’ x660’ x2.8sg.
 Mine 500 thousand tons (approx.) whilst
developing further reserves
 Total anomaly length is over 5,000 feet
 Cost to feasibility, $3 million Australian
2) Hill End (NSW, Australia)
 Access all 11 gold bearing reefs at Golden
Gully Hill End initially to 600 feet
 Mine 200 TPD for 400 ounces O.P.D. at a
cash cost of approximately $80 Australian
per ounce
 Gold price in Australian dollars is $580 per
ounce
 Cost to feasibility, $3 million Australian
cont’d
Project Priorities
(In Order of Importance Cont’d)
3) Prospects D and D “A” (NT, Aus.)
 Define ore reserves on Prospect D and
D “A”.
 Prospect D “A” could be mined by
open cut from surface on high grade
oxidised copper nickel to expose the
underlying massive sulphide ore body
(Prospect D)
 Cost to feasibility, Prospect D $3
million Australian
 Cost to feasibility, Prospect D “A” $1
million Australian
4) Whitewood Creek
 Reinstate joint venture with Barrick to
carry out original terms of Homestake
agreement to develop and mine tailings
 Or, lease the Barrick properties &
Goldstake would mine the tailings for a
cost of less than $100 US per ounce
 Cost to feasibility, $2 million US
Appendix 1
Share Structure
 Issued
shares 45, 860,660
 Outstanding options
exercisable
up to Dec 31 2004 – 3,390,000
 Float
– approx. – 22,000,000