SOUTH MONITOR PROJECT

The South Monitor gold prospect is located 40 km southeast of Tonopah, Nevada. The property consists of 114 claims for a total of 2280 acres. In 2002 Golconda acquired an 80% interest in the property. A total of 96 holes were drilled on the property prior to Golconda’s involvement.

Golconda drilled a total of 31 holes which encountered widespread gold mineralization and proved that the gold continued at least to a depth of 700 feet. Golconda found a strong bonanza vein type feeder zone in Tertiary Tuff in the southeast part of the claims. The zone is barren at surface. The zone seems to be about 400 ft wide and can be traced for about 3500 ft along strike. It is characterized by strong potassic alteration. It has been intersected by two holes only. The one hole intersected 120 ft of 0.115 oz gold/ton. Several holes were terminated in the overlying clay blanket.

Hole number	From (ft)	To (ft)	Intersect (ft)	Grade oz/t gold	oz/t Silver
		South Zone
A-6	280	400	120	0.112
A-7	200	340	140	0.032
A-12	270	390	120	0.015
A-17	400	500	100	0.039
A-18	405	475	70	0.037
A-20	270	385	115	0.016
A-26	45	275	230	0.011
91-1C	235	460	225	0.012
GA-96-2	205	340	135	0.044	0.11
GA-96-12	240	410	170	0.024	0.05
GA-96-13	195	345	150	0.017	0.08
GA-97-5	225	325	100	0.022	0.15
GA-9-7	0	285	285	0.011	0.14
		North Zone
84/3	10	260	250	0.014
85/11	15	200	185	0.023
85/26	10	250	240	0.014
A-3	110	345	235	0.012
GA-96-21	215	380	165	0.012	0.18
		Central Zone
GA-96-4	60	330	270	0.017	0.31
GA-96-5	70	455	385	0.011	0.14
GA-96-16	70	540	470	0.018	0.21
GA-96-17	30	255	225	0.011	0.21
GA-96-18	440	620	180	0.018	0.19
GA-96-19	50	460	410	0.009	0.08