The Talbot Lake gold project hosts the "Main Zone" gold deposit which was discovered by Placer Dome in 1985 and acquired by Denison Mines in 1998. It consists of an East-West striking and vertically dipping quartz vein containing visible gold, pyrite, copper sulphide and zinc sulphide. Channel sampling by Denison indicated an approximate strike length of the Main Zone to be 48m with a weighted average grade of 13.8 g/t Au over a width of 3.3m. One channel over a width of 1.8m yielded a spectacular value of 120.0 g/t Au. The gold deposit extends for a depth of approximately 200m and remains open. The following are some significant drill hole intersections by Placer Dome from the "Main Zone"; 16.4 g/t Au over 7.6m, 37.2 g/t Au over 2.5m, 26.9 g/t Au over 2.9m, 7.5 g/t Au over 7.5m. (source: Resident Geologist, Ministry of Northern Development and Mines, Thunder Bay). To date a total of $6,000,000 in exploration expenditures has been carried out on the Talbot Lake gold project.

A parallel "Sulphide Zone" up to several metres wide is often intersected adjacent to the "Main Zone" and contains copper and zinc mineralization with anomalous gold. Further to the east the Main Zone is crosscut by a northeast trending fault with a separate mineralized structure called the "East Zone" located immediately east of this fault. The 'Sulphide' and 'East Zones' have received less attention than the Main Zone but remain highly prospective and will be part of a more aggressive exploration program on the Talbot Lake gold project. Importantly, there is considerable potential to expand the Property's known gold zones.

The Talbot Lake project is located within the world-renowned gold producing "Uchi Subprovince" of northwestern Ontario. This prolific gold producing area is host to the Red Lake and Pickle Lake gold mining camps and has produced in excess of 40 million ounces of gold.

Gold bearing quartz veins, like that at Talbot, are common in the established mining camps such as Red Lake, Timmins, Kirkland Lake and have been Canada's most important gold producers. These quartz vein systems are planar objects, which tend to have great lengths and depth.