WORK HISTORY

Staked as DM cl 1-114 (YC83307) in Sep/2008 by ATAC Resources Ltd. Upon registering the claims, the Whitehorse Mining Recorder refused DM cl 7-20 (YC83318) as they covered Coffee cl 158-180 (YC83235) staked days earlier by Kaminak Gold Corp. In Jun/2009 ATAC Resources optioned a 50% interest in the DM claims to Arcus Development Group Inc. During the summer of 2009 ATAC Resources carried out reconnaissance scale geological mapping, auger soil sampling and prospecting programs over the claims. In Dec/2009 Arcus Development staked DM cl 115-124 (YD10504).

In Jun/2010 Arcus Development staked DM cl 428-506 (YD60615) between their existing claim block and the Yukon River, located to the north. These claims lie within the Whitehorse Mining District. In the same month the company staked DM cl 428-506 (YD60918), cl 507F (YD60997), cl 508-544 (YD60998), cl 545F (YD61035) and cl 546-578 (YD61036) on the north side of the Yukon River. These claims lie within the Dawson Mining District. In 2010 the company dug three excavator trenches (598 m) on the southern portion of the Dan Man property and carried out reconnaissance auger soil sampling on the northern portion of the property.

In Mar/2011 Arcus Development flew an airborne magnetometer survey over the entire Dan Man property. The company used the results from the survey to target areas for detailed in-filled auger soil sampling. In the fall of 2011 Arcus Development drilled 10 diamond drill holes (1500 m) on the Dan Man property. Four holes targeted the Kambaa zone and five holes targeted the Kwazulu zone. The remaining hole was abandoned.

GEOLOGY

The Dan Man property straddle both sides of the Yukon River near the former site of Kirkman Creek and is located immediately north of and adjacent to Kaminak Gold Corp’s Coffee claims. The area was reconnaissance mapped by D. Templeman-Kluit in 1974. Gordey and Makepeace (2003) released a geological compilation that covered this area. Ryan and Gordey remapped the Stewart River map sheet area (NTS 115N&O) in the early 2000's (including the north side of the Yukon River) and released a geology map in 2004 and a geological compilation in 2005. The compilation map differed slightly from the earlier map due to revisions related to newly disclosed age dating results. Since then Gordey and Ryan and others have carried geological mapping to the south onto topographic map sheet 115J&K. A preliminary geological compilation covering parts of 115 O&N and 115J&K is slated for release sometime in 2012.

The Dan Man property is covered by extensive overburden thus Arcus Development carried out limited geological mapping. Based on chip samples recovered from trenches dug near the southern-central portion of the claim block near the boundary with Kaminak Gold’s Coffee claims, the southern portion of the Dan Man claims are underlain by biotite-feldspar schist, feldspar-muscovite schist and augen gneiss thought to belong to the Devonian to Mississippian Nasina assemblage. Recent work by Gordey and others of the Geological Survey of Canada suggests these rocks might actually be Permian in age and belong to the Klondike Schist assemblage. Geological mapping on the adjoining Coffee claims verifies the presence of augen gneissic rocks. The northern half of the claim block is thought to be underlain by Devonian to Mississippian metasiliciclastic rocks assigned to the Nasina assemblage.

Arcus Development carried out the bulk of their exploration work on the southern half of the claim block, with special attention being given to those claims bordering Kaminak Gold’s Coffee claims. Auger soil sampling carried out in 2009 and 2011, identified four zones of anomalous gold in-soil responses extending along an 8 km trend near the southern border of the DM claims. Three of the zones are located west of the block of Coffee claims which extend into the DM claims and one is located to the east. Starting from the furthest west the zones are; Kwazulu, Kambaa, Rooibos and Bengal.

The Kwazulu zone defines a 2 km long area of interest hosting weakly anomalous, intermittent gold in-soil response ranging from 12.5 to 156 ppb gold. The zone hosts a series of northwest trending lineaments bisected by an arcuate northeasterly to northwesterly trending feature. The core portion of the anomaly is contained in the western part of the zone and is defined by an area measuring roughly 1 200 by 200 m in size.

Five drill holes (lengths unknown) tested an 800 m portion of the core anomaly. Three holes tested two northwesterly trending lineaments located approximately 600 m apart. The holes intersected significant structural alteration between 35 and 60 m in thickness characterized by intense clay-altered shearing with multi-episodic brecciation, silicification and intermittent oxidation. The best gold grades were encountered from drill hole DM-11-08 which tested a subinterval of the western portion of the Kwazulu structure and returned grades of 1.61 g/t gold across 8.62 m within a broader alteration zone grading 0.50 g/t gold across 35.52 m. The geochemical signature of the structures within the Kwazulu zone is best described by gold and intermittently weak elevated arsenic level. The occurrence location marks the approximately location of drill hole DM-11-08.

The Kambaa zone is located 2.5 km to the northeast represents a 900 by 200 m easterly trending gold in-soil anomaly hosting values ranging from 12.5 to 132 ppb gold. The anomaly is bounded by two northwest trending lineaments interpreted from air photos. Three trenches dug over the zone in 2010 failed to reach bedrock due to permafrost. None of the 120 chip samples collected from the trenches returned significant mineralization.

Four diamond drill holes tested the strongest portion of the Kambaa zone. All holes intersected structural alteration characterized by varying intensities of texturally destructive brittle fracturing accompanied by silica flooding, sericitization, partial oxidation and intermittent brecciation. Alteration zones contain moderately to significantly elevated levels of arsenic, antimony and barium relative to the unaltered wall rocks. Narrow intervals of elevated gold responses (> 250 ppb) gold were encountered in all holes with the best grades reporting from drill hole DM-11-03 which returned 2.08 g/t gold over 4.39 m.

Drilling completed to the end of 2011 shows that gold mineralization on the Dan Man property is structurally hosted in augen gneiss. Structural zones encountered in the 2011 drilling are interpreted as being steeply southerly dipping and dominantly associated with northwest trending lineaments.

The Rooibos zone is located 1 km south of the Kambaa zone. It consists of an easterly trending 800 by 100 m area containing a series of gold in-soil cluster anomalies ranging in value from 12.5 to 98 ppb gold. Assay results were not received until after the completion of the 2011 exploration season thus no follow-up work has yet to be performed.

The Bengal zone is located approximately 3 km east of the Rooibos zone, near the eastern border of the group of Coffee claims that extend north into the DM claim block. The zone measures approximately 1 800 by 500 m and possesses a west-northwesterly trend. The zone hosts the strongest gold in-soils response (12.5 to 444 ppb gold) identified to date on the Dan Man property. Lineament analysis suggests the anomaly is bisected by a series of north-northwest trending structures, the orientation of which coincide with the moderately to strongly anomalous core of the soil anomaly. Like the Rooibos zone, results for the Bengal zone were not received until after the completion of the 2011 exploration season.

Arcus Developments plans to conduct a detailed review of all data acquired to date in order to set priorities for the 2012 exploration season.

REFERENCES

ARCUS DEVELOPMENT GROUP INC AND ATAC RESOURCES LTD, Apr/2011. Assessment Report #095381 by H. Smith.

ARCUS DEVELOPMENT GROUP INC, Jan/2011. Web Site: www:arcusdevelopmentgroup.com

ARCUS DEVELOPMENT GROUP INC, News Release. 10 Jun/2009, 9 Dec/2009, 5 Jan/2010, 13 May/2010, 16 Jun/2010, 25 Aug/2010, 12 Oct/2010, 30 Mar/2011, 4 May/2011, 8 Jun/2011, 7 Jan/2011.

ATAC RESOURCES LTD AND ARCUS DEVELOPMENT GROUP INC, Feb/2010. Assessment Report #095137 by H. Smith.

ATAC RESOURCES LTD, News Release. 10 Jun/2009.

GORDEY, S.P. AND RYAN, J.J. 2005. Geology, Stewart River Area (115N, 115 O and part of 115J), Yukon Territory; Geological Survey of Canada, Open File 4970, scale 1:250 000.

TEMPELMAN-KLUIT, D.J., 1974. Reconnaissance geology of Aishihik Lake, Snag and part of Stewart River map-areas, west-central Yukon. Department of Energy Mines and Resources; Geological Survey of Canada Paper 73-41, 97 p.

YUKON EXPLORATION AND GEOLOGY 2009, p. 27; 2010, p. 28, 58; 2011, p. 48, 63, 72.
 

Assessment Reports that overlap occurrence