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| | |  43-101 Report Valuation Report Mexivada has optioned up to 75% of its POKER FLATS Nevada Carlin-style gold property to Spartan Gold Ltd. for further exploration and drilling. The Poker Flats property comprises 3,920 acres of lode mining claims and leased private ground, located approximately 30 kilometres south-southwest of Elko, on the eastern edge of the Piñon Range. From Elko, access is by the paved Bullion Road for 7 Km., a further 32 Km. on the graded-dirt Bullion Road, then 7 Km. on unimproved "two track" dirt trails to the Property. The Property is in generally flat sagebrush-covered desert, with elevations gradually increasing westward. The climate is favorable for year-round mining, with all supplies and services needed for successful exploration and mining programs available in the area. Mexivada controls the Poker Flats property through a Mining Lease Option effectively dated December 3, 2004. The Poker Flats property is situated within the Rain Sector of the north-northwest-trending Carlin gold trend, which hosts the Rain/Emigrant, Gold Quarry, Carlin, and Blue Star / Genesis disseminated gold-silver deposits, as well as the Meikle, Rain, and Saddle / Tess fault-controlled vein-style gold-silver deposits. In 1979, Newmont discovered disseminated gold mineralization approximately three miles north-northwest of the Property, which subsequently became the Rain, SMZ, Gnome, and Emigrant Springs gold deposits. In the early 1980s, exploration delineated the Railroad gold deposit, now controlled by Gold Standard Ventures (GV.V), which immediately adjoins the Poker Flats property to the west. Further exploration resulted in the discovery of the Trout Creek and Piñon (South Bullion/Dark Star) gold deposits three miles south of the Railroad deposit, and between 8 and 10 Km south-southwest of the Poker Flats property. In 1984, Franco Nevada drilled four reverse-circulation holes in the northeastern part of the Poker Flats property area, and the fourth hole intersected twenty feet of Webb Formation sedimentary rocks that contained anomalous gold mineralization. Paleozoic Devils Gate and Nevada Formation limestones crop out in the northeastern claim block; Tertiary basalt and andesite in the northwest; and Tertiary rhyolitic to dacitic ash-flow tuff in the southwest. Part of the Property is covered with Quaternary alluvium. Although not observed on the Property, Mississippian age Webb Formation sediments overlie Devonian age Devils Gate limestone. At the nearby Rain Mine and the Railroad properties, gold mineralization at the Webb Formation/Devils Gate contact often is controlled by northwest-trending faults. Exploration focus on the Poker Flats property is for Carlin-type gold mineralization, exemplified by mineralization at the Rain and Emigrant deposits. However, fault-controlled vein-style gold-silver deposits are also possible. The Poker Flats property is situated at the intersection of northwest- and northeast trending regional arsenic anomalies. The northwest-trending anomaly extends through the area of the Rain and Emigrant Springs deposits northwest, and continues through the major gold-silver deposits of the Carlin Trend. A geophysical interpretation suggests that the Poker Flats Property sits astride the southern extension of the Emigrant Fault, and one or more Rain Fault parallel structures intersect the Emigrant Fault extension in the western parts of the Poker Flats claims. Regional-scale structural interpretation suggests that the Property area could be underlain by deep-seated crustal structures instrumental in conducting mineralizing fluids for local gold-silver deposition. The presence of gold-silver deposits north and south of the Poker Flats property suggests the presence of a structural corridor on or near the Property area through which mineralizing fluids could have moved. Phase 1 work was recommended by Mr. Harrington, consisting of geological mapping, geophysical and geochemical ground work to define drillhole locations, followed by reverse circulation drilling to test targets at depth. This program was defined in two phases: Phase 1 ground work was budgeted at approximately US$53,000; and Phase 2 drilling was budgeted at US$139,000. As part of its early Phase 1 work in 2005, Mexivada completed three east-west soil gas geochemistry lines over the northeast main target at Poker Flats. The northern line was sited across the approximate collar of the mineralized 1984 Franco Nevada drillhole. The soil gas profile shows a strong carbon dioxide / oxygen anomaly over the drillhole area, as well as linear soil gas "highs" to the south, along a north-south trend. This test was conducted by D. Edward Wells and interpreted by D. Edward Wells and Dr. Jeffrey A. Jaacks, consultant geochemists, to represent a soil gas anomaly generated from oxidizing sulfides at depth. This linear trend is interpreted to represent the hypothesized north-south trending Poker Fault, which is the Carlin-type gold exploration target in this sector of the Poker Flats property. Mexivada's open pit, heap-leach target concept here is for disseminated gold at shallow depths that could be present along the Webb - Devil's Gate contact east of the Poker fault gold feeder structure. Mexivada also purchased a data package of previous work conducted on the Poker Flats property from Dr. Jeffrey A. Jaacks, Mexivada's chief geochemical consultant / advisor. These data were generated principally by BHP in the 1990's. Dr. Jaacks re-interpreted all these data and made recommendations for drill targets in the Poker Flats area. The exploration goal of Mexivada/Spartan's new exploration program will to generate open pittable, heap leachable Carlin- or Meikle-Rain-Saddle type orebodies at shallow depths (to 150 metres), which could be mined and processed through Newmont Mining's proposed and permitted new mining operation to be started up soon at the Emigrant Mine. Mexivada will attempt to permit its drilling sites on or near to the abundant existing roads and trails present in the project area, and enjoys cordial relations with nearby mine operator Newmont Mining Corporation and with the staff of Gold Standard Ventures. Maps & Photos
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