Annual Information Update-Pt2

RNS Number:2984R
Moydow Mines International Inc
01 April 2008

Part 2


Port Loko Bauxite Concession



1.         Project Description and Location



Project area



The Port Loko Property is located 65 km East of Freetown, the capital of Sierra
Leone, Western Africa.  The 668km2 (230 square mile) property forms a strip
about 77km NNW-SSE by 12 km WSW-ENE in the Port Loko District of Sierra Leone's
Northern Province.



Title and Obligations



Ownership of mineral rights and the right to search for or exploit minerals in
Sierra Leone are vested in the Sierra Leone government.  The government may
grant rights to explore for or exploit minerals under the provisions of the
Mines and Minerals Act of 1994.  A mineral right is defined as any of the
following:

  * a prospecting license (exclusive and non-exclusive);
  * an exploration license;
  * a mining lease;
  * an artisan mining license.

The government does not participate in the acquisition of mineral rights, either
directly or indirectly.  There is no history of government confiscation or
nationalization of mineral rights from a mineral rights holder.  Surface rights
remain the property of the landholder.



Gondwana (Investments) S.A. (Gondwana, a private company incorporated in
Luxembourg) obtained on the 15th of November 2002 the Exploration License No.
Expl. 7/02 (the License) for a period of three years to explore for base metals,
rutile, zircon, ilmenite, and bauxite from the Government of Sierra Leone in
accordance with an approved program of exploration operations.



The coordinates of the Property that are specified in EXPL 7/02 are:


Beacon             UTM West                UTM North                  Zone
A                  739,100                 997,000                    28P
B                  751,600                 972,700                    28P
C                  757,400                 953,600                    28P
D                  773,800                 931,500                    28P
F                  770,500                 922,800                    28P
G                  751,200                 950,800                    28P
H                  733,400                 982,400                    28P
I                  738,000                 985,450                    28P
J                  731,700                 992,800                    28P

Notes: E was not used.  Coordinates in Sierra Leone 1960 datum.



Licence obligations include:

Pay a yearly rent of US$200 for each square mile.

Demarcate the licence boundary.  Employ at least one qualified geologist or
mining engineer for the exploration.

Carry out bona fide exploration during the continuance of the License.

Undertake base line studies on the environment in order to provide details of
any significant adverse effect, which the carrying out of exploration program
would have on the environment, the proposals to combat any such effect and the
estimated cost thereof.

Employ and train citizens of Sierra Leone.

Backfill or make safe bore holes or excavations made during the course of the
exploration operations.



The Company and Shankill Resources Limited (Shankill) signed an Option Agreement
with Gondwana on 8 September 2004, for Shankill to explore the bauxite deposits
in the Exploration License EXPL 7/02.  Shankill is a 100% owned subsidiary of
Moydow Mines International Inc.  The Agreement allowed Moydow to acquire up to a
60% interest in the Port Loko bauxite deposit by incurring exploration
expenditure of $1 million and produce and deliver a feasibility study on or
before August 1, 2005.  On the 28th of February 2006, an amending agreement was
signed which stated that "the phrase 'August1, 2005'in the 8 September 2004
Agreement, shall be read as 'June 30, 2006'.  The Agreement only covers bauxite
and no other minerals on the property.  Under the terms of the Agreement, Moydow
also issued 150,000 common shares and 200,000 warrants.  The warrants, which
expired in 2006, had a strike price of CA$0.38.



Shankill Resources (SL) Ltd. (Shankill) was incorporated in Sierra Leone on 29
September 2005.



On October 24, 2005, the Company appointed Chlumsky Armbrust & Meyer, LLC of
Lakewood, Colorado (CA") to prepare a Bankable Feasibility Study on the Port
Loko bauxite deposit.  By the 30th of June 2006, CAM had submitted the reports "
Feasibility Study Geological Resource Port Loko Project" and "Feasibility Study
Technical and Cost Evaluation Port Loko Project".  The quality of CAM's reports
was such that the Company and Gondwana agreed on Moydow having acquired 50%
Interest in the Project (i.e., to develop the Port Loko Property) and to
continue exploration to get to a bankable feasibility study.



The 2004-2005 Exploration Report for renewal of the licence was prepared by
Moydow and was filed by Gondwana (the License holder) on the 15th of November
2005.  The renewal was granted by the Mines Division of the Ministry of Mineral
Resources for one year (from the 15th of November 2005) on the 4th of January
2006.  The area of the license, which had been stated as 230 square miles, was
amended to 258 square miles.



On January 28, 2008, the Company was granted a one-year prospecting licence with
respect to the Port Loko project by the ministry of mineral Resources in Sierra
Leone.



Cumulative expenditures by the Company to December 31, 2007 amounted to
$3,039,000 of which $452,505 was incurred during 2007.



Environmental liabilities and Permits



The Company is not aware of any environmental issues, which - without proper
care - could create a liability for the Company.  The company has no reason to
believe that necessary permits, once applied for, will not been granted.



2.             Accessibility, Climate, Local Resources, Infrastructure and
Physiography



Accessibility and Infrastructure



Freetown is reached from Lungi Airport by helicopter or ferry by crossing the
Sierra Leone River estuary.  Lungi Airport has scheduled flights to and from
Europe and other Western African countries.  The Company has a guesthouse in
Freetown and rents office facilities there.



The Company has established an exploration camp just outside the License area at
the village of Rogbere.  The camp is an abandoned Unamsil camp that has been
renovated.  The camp is capable of housing approximately 30 people.  Water for
the exploration camp is provided by wells and drinking water is obtained from
Freetown.  Power is generated on site with a 27 KVA diesel generator.



Access to the exploration camp from Freetown is by 75 km paved highway to
Masiaka and from there by another 30 km paved road.  The latter road crosses the
central portion of the License from the Rokel River to Rogbere village.  Rogbere
Junction can also be reached from Lungi Airport via Lungi Lol and Port Loko by
70 km dirt roads.



The License area straddles dirt and paved roads that head west and north from
Rogbere to Port Loko and beyond, and south and east to Masiaka and beyond.
Gravel and all-season dirt roads to villages scattered in the area provide good
access to most parts of the License.  An extensive network of cut lines provides
detailed access in certain areas.



Villages of the Temne are common scattered in and around the License area.
Towns nearby are Port Loko and Lunsar, 14km west and 16km east from Rogbere.



There is no electrical grid in the region.  All projects and settlements have to
rely on diesel-generated power.



Areas around Rogbere and Port Loko are covered by mobile phone networks.



Tropical diseases such as malaria and typhoid are endemic in the region.  While
basic medical services are available at Rogbere, Port Loko and Lunsar any
serious health problem would require transport to Freetown.



Climate



Sierra Leone lies within the West African rain forest belt.  The alternation of
monsoon rains and northeast dry winds divides the year into distinct wet and dry
seasons.  Most of the rain falls from May to October (200-250 cm) and much less
from November to April (12-25 cm).  Average temperatures range from 25 to 28
degreesC with the highest temperatures in March and November.



Work can be done year-round, although certain activities have to be curtailed in
the afternoons during the rainy season.  Surface water is abundant in rivers and
creeks in the rainy season.  Smaller streams gradually dry up in the dry season.



Local Resources



Most supplies have to be brought in from Freetown.  Specialized equipment has to
be imported.



The License area has abundant sites that can be used for mining facilities.
Three main rivers, the Rokel, the Bankasoka, and the Little Scarcies, all of
which have bridges crossing them, intersect the concession.  Any of these rivers
would provide ample sources of water for the bauxite washing plant and other
mining related requirements.



At Lungi Lol (33 km west of Port Loko), a road branches to Pepel Port on the
Sierra Leone River estuary (13 km from Lungi Lol).  The road from Rogbere
Junction via Lungi Lol to Pepel Port largely parallels the mineral railway from
the Marampa iron mine (east of Rogbere) that operated from the early 1930s to
1985.  A rail yard, rolling stock, housing, storage, and ship loading facilities
exist at Pepel Port.  The railway, which crosses the bauxite deposits, and the
harbour facilities (65km by rail from Rogbere) can - after rehabilitation - be
used for transport and shipping of bauxite ore.



Certain competent and experienced contractors for exploration, drilling and
mining have to come from abroad.  However, there is a pool of local people that
has experience with bauxite exploration and mining.  Skilled and unskilled
labourers are readily available from Freetown and from local villages.



Physiography



The License area topography is characterized by flat to gently rolling savannah.
  Mabing Hill with 156 m is the highest point north of the Rokel River.  Most
hills, however, are between 30 and 60 m high; they are considered remnants of an
erosion surface.



Primary forest has been cleared from the area.  Most of the area is now covered
with tall cane grass.  These areas merge in open secondary forests, which occupy
small portions of the low hills and valleys.



Village agriculture is focused on growing cassava using traditional
slash-and-burn clearing methods.  Large areas - especially those underlain by
bauxite - are not used for agriculture although they are seasonally burned.



3.         History



The occurrence of low-grade bauxite in Sierra Leone was first recorded in
1920-1921 in the northeastern corner of the Northern Province.  Other bauxite
occurrences were found in the Southern Province (Mokanji bauxite deposits) and
in the wide valleys of the Freetown Peninsular in the Western Area.



The Port Loko bauxite deposits were discovered in the early 1950s by road
construction workers.  During reconnaissance exploration work in 1959 by
government geologists along the motor roads from the Rokel River Bridge to Port
Loko and Marampa, interesting bauxite zones developed on feldspathic gneisses of
the Kasila Group.  This tended to constitute the extension of the Mokanji
deposits.



The Sierra Leone Ore & Metal Co. (Sieromco), then a subsidiary of Swiss
Aluminium Ltd. (Alusuisse) obtained a prospecting license (No. SEPL 2087) and
carried out an exploration campaign north and south of the Rokel River from 1963
to 1965.  Sieromco stopped work because the company's emphasis at that time was
on bauxite deposits with alumina content greater than fifty percent.  In July
1972, Sieromco obtained a Special Exclusive Prospecting License (SEPL 2182)
covering an area of about 620 km2 between the Rokel River and the Little
Scarcies for a period of four years.  Sieromco developed and executed a
comprehensive exploration programme that assessed and evaluated the license
area.  Extensive and detailed exploration was carried out by drilling (3,500
hand and 11,000 mechanical drilled holes, total 126,000 m) and pitting (425
pits).  Sieromco defined 28 mining blocks in four areas which largely parallel
the geological trend: Yenkisa (1-13), Lungi (1-6), Tekeya (1-12) and Kambia
(Mange-Gbonkomakent and Mamaliki).  Results were presented in numerous reports,
inter alia in a Pre-feasibility study (November 1980).  Following a corporate
management policy change not to expand its raw materials supply base, Alusuisse
surrendered its mineral holding of its property to the Government of Sierra
Leone.



In 1987, Austromineral, an Austrian owned company (then in the process of
rehabilitating the Marampa iron ore mine which was 23 km east of Rogbere
Junction), conducted a pre-feasibility study on the Port Loko bauxite deposit on
the basis of the results of the Sieromco exploration work.  Austromineral
confirmed that it could be a viable venture of low-grade bauxite that should be
investigated for commercial exploration.



In 1992, Jupiter Export and Import (Jupiter) acquired the property (No. EXPL 4/
92) but its work was limited in scope during the escalation of the rebel war.
In 1996, Jupiter renewed its exploration license (No. EXPL 4/96) and proceeded
to undertake additional prospecting/exploration and due diligence on the
Sieromco work that led to an internal  feasibility report (May 1997) and  to a
review report by Watts, Griffis and McOuat (WGM) of Toronto, Canada (October 31,
1997).  Jupiter filed an "Application for the Leasing of the Pepel Port and
Railway Installations and the Rail Tract" on 11 March 1996 with the Government
of Sierra Leone.  The application contained a summary of work to be done and a
cost estimate for the rehabilitation of port and rail facilities.  Renewed rebel
activity forced a suspension of operations in 1998 under conditions of force
majeure, and subsequent cancellation of the license in 1999 by the Government
when Jupiter failed to demonstrate its ability to continue.



Following the cessation of the rebel activities, the Government of Sierra Leone
granted exploration rights to Gondwana for the Port Loko bauxite concession
under Exploration Licence No. EXPL 7/02 in November 2002, (see Item 1).



Railway, Harbour and Iron Ore Mine



During 1930, construction commenced on a 52 miles 3ft6in gauge line from Pepel
to the Marampa haematite iron ore mine, 23 km east of Rogbere.  The line was
constructed by the Sierra Leone Development Company (Delco).  Trains were
organised to haul thirty bogie wagons with each wagon capable of carrying thirty
tons of ore.  When the line opened in 1933 two 151 Beyer-Garratt steam
locomotives handled the ore trains, two more were received, one in 1935, the
other in 1936.



These locomotives were in 1955 replaced by five diesel locomotives from the
Birmingham Railway Carriage & Wagon Co Ltd. (BRCW).  Two diesels were operated
back to back in multiple trains of forty double bogie ore wagons of thirty tons
carrying capacity.  With the line limited to a top speed of 28mph, a round trip
would take about five hours to complete, not including any time taken at the
termini.  During the mid 1960s, improvements to the track allowed the axle
loading to increase and the maximum speed to increase to 35mph.  New roller
bearing equipped wagons had an increased capacity of fifty tons.



The BRCW locomotives were replaced by American Locomotive Company (Alco) diesel
locomotives.  The first one to arrive in 1964 was numbered 201.  Three more
arrived during 1970 numbered 202 - 204, now built by the Montreal Locomotive
Works.  Presently, the condition of the 202-204 locomotives is reportedly such
that they can be made serviceable.



At Pepel Port, ore dumping, storage and three generations of ship loading
installations exist.  The last one ("C plant") is reportedly capable of loading
4000 ton/hour.  One of the two loading facilities of the C-plant has reportedly
been operated recently.



Delco exploited the Marampa iron ores from 1930 until 1976.  The mine was
reopened by Austromineral in 1981 but closed again in 1985.  All mining
installations at Marampa have been destroyed and the present assessment is that
the Marampa ore reserves do not warrant the construction of new mining
installations.



4.             Geological Setting



Regional Geology



Most of the Sierra Leone is underlain by rocks of Precambrian age (Achaean and
Proterozoic) with a coastal strip about 50 km in width comprising marine and
estuarine sediments of Tertiary and Quaternary to Recent age.  The Precambrian
outcrops cover 75% of the country and typically comprises granite-greenstone
terrain.  It represents parts of an ancient continental nucleus located on the
edge of the West African Craton.  The Achaean basement can be subdivided into
infracrustal rocks (gneisses and granitoids), supracrustal rocks (containing
greenstone belts) and basic and ultra-basic igneous intrusions.



The infracrustal gneisses and granitoids were formed and reworked during two
major orogenic cycles, an older Leonean episode (-2,950-3,200 Ma) and a younger
Liberian episode (-2700 Ma).



Greenstone belts of the Kambui Supergroup have been deposited upon a
post-Leonean basement and are accompanied by basic to ultrabasic intrusives.
The Marampa Group, bounded on its eastern margin by a tectonic contact, is
important for its iron-ore deposits and forms the upper part of the Kambui
Supergroup.



The Rokel-Kasila Zone bounds the main part of the West African Craton on its
west and southwestern margin in Sierra Leone, and appears to form part of a
north-south orogenic belt.  Within this belt, the Marampa Group appears to
represent some of the oldest rocks.  The Kasila Group, also considered part of
the Kambui Supergroup, comprises a high-grade series of granulites, consisting
of garnet, hypersthene and hornblende gneisses, quartzites and associated
migmatites.  Where eroded, significant secondary deposition of titanium minerals
has formed from this unit.



A late Precambrian to Cambrian sedimentary and volcanic assemblage, the Rokel
River Group, was deposited unconformably on a basement complex.  The Rokel River
Group and the Kasila Group to the west were deformed during the Rokelide
orogenic episode (550 Ma).



Tertiary and more recent weathering has led to laterization across a large part
of Sierra Leone, affecting mainly the greenstone belts and the extensive
dolerite intrusions.  Weathering of the aluminous members of the Kasila Group
has given rise to the Port Loko bauxites, as well as those further south near
Mokanji, Gondama and Gbonge. The latter were mined by Sieromco (Sierra Leone Ore
and Metal Company Limited, a wholly-owned subsidiary of Alusuisse) from 1963
until 1995 when the civil war forced abandonment of the operation. Sierra
Mineral Holdings, Ltd. (SML) a subsidiary of Titanium Resources Group (TRG)
initiated renewed mining of bauxite in the Mokanji area early in 2006.



Local Geology



The weathering crust at Port Loko is composed mainly of hydrous aluminium oxide
minerals, clays, and iron oxide minerals, known as bauxite.  These minerals were
formed at the expense of feldspars and other minerals in the Kasila metamorphic
rocks.  At the same time, the low topographic relief has resulted in only slight
physical erosion.  Bauxite in the Port Loko area occurs as a series of elongate
lenses, reflecting their preferred formation above the most highly aluminous,
northerly-trending bands of aluminous crystalline rocks.  The Kasila Group rocks
in the Port Loko area consist of a more mafic (amphibolite-rich) band on the
east, and a more felsic (feldspar-rich) band on the west.  However, the
difference in rock types does not appear to have strongly influenced the iron
content of the higher-grade (+40 percent Al2O3) bauxite, comparing Yenkisa and
Tekeya on the east, with Lungi on the west.  The bauxite crust tends to have a
consistent vertical sequence of layers, reflecting the chemical changes which
gradually transform the crystalline bedrock to bauxite.  The typical bauxite
stratigraphy in the Port Loko area is:


                     Unit                      Thickness range (m) Average (m)              Comments
Topsoil                                              0 to 1            0.3      mainly organic
Lateritic gravel & bauxite pebbles/ pisolites       0.3 to 5           0.8      mainly sub-economic
Massive bauxite, blocks to 10 cm                   2.0 to 12.0         6.8      potentially economic
Bedrock, partly weathered                              --               --      parent rock (substrate)



The bauxite proper is an intimate mixture of minerals, dominated by secondary
aluminium hydroxides (gibbsite, with less than 3 percent boehmite), kaolinite,
and hydrous iron oxides.  This mixture is typical of metallurgical bauxites
worldwide.  Lesser amounts of residual minerals, inherited from the weathered
crystalline rocks, are quartz (about 1 percent), rutile (1 to 2 percent), and
sparse amounts of other minerals.  The weathered bedrock contains varying
amounts of rock-forming silicates as well as clays and lesser aluminous oxides.
Bauxite specimens may show relict gneissic banding, inherited from the parent
gneisses.  The bauxite is various shades of red-brown.  Its texture ranges from
gravelly pisolites (sub-spherical concretions) to hard blocks several decimetres
on a side in a clayey or pisolitic matrix.  Higher-grade bauxite pods tend to be
elongated north-south, following the trend of the favourable bands in the
underlying Kasila Group rocks.  Individual pods are 50 to 500 meters wide and
400 to 2000 meters long.  The pods are noticeably concentrated on hill slopes,
rather than on the summits of hills or on flatter valley floors.  This is
presumably due to the greater degree of meteoric (rainfall) leaching on steeper
slopes.



The three main bauxite areas, from north to south, are Mange-Gbonkomakent,
Yenkisa-Tekeya-Lungi, and Mamaliki.  The subject of most exploration, and of
this report, is the Yenkisa-Tekeya-Lungi area, which has the most favourable
infrastructure at present.  In many databases and reports, the Yenkisa, Tekeya,
and Lungi areas are subdivided into numbered zones, such as Y-3, T-4, L-4, etc.
Sieromco used these numbered zones to denote individual mining blocks or a group
of such blocks in close proximity.  The combination of lithologic (bedrock)
control and topographic control on formation and erosion of the bauxite crust
have led to a high degree of lateral and vertical variability within a pod and
between pods.  This large- and small-scale heterogeneity necessitates a
relatively dense sampling pattern, compared to many other large bauxite deposits
(especially those formed on flat-lying sedimentary rocks) having greater lateral
continuity.



5.             Exploration



Previous Exploration



Moydow started an exploration project at the Port Loko bauxite deposit at the
end of November 2004.  The extensive work to date on the project is covered in
the Report on Exploration October 2004 to November 2005 and the Exploration
Report November 2005 to June 2006, prepared as separate documents.  Shankill
Resources (SL) Ltd. (Shankill) incorporated in Sierra Leone on 29 September 2005
execute the exploration programs.  Shankill is fully owned by the Company.



Shankill 2004-2005



The December 2004 to November 2005 exploration program for a selected sixty
square kilometre area from Mabing Hill in the south to approximately the Rogbere
-Port Loko road in the north and straddling the Masiaka-Rogbere road, included
the following:

Located and cleared 165 km of Sieromco and Jupiter grid lines:


Mining Block    Cleared Base and Tie Lines            Cleared Cross Lines                   Total length (m)
                Number of lines    Combined length    Number of lines    Combined length
                                   (m)                                   (m)
L3              1                  2,150              36                 15,100             17,250
L4              1                  1,000              3                  2,400              3,400
L5              1                  2,600              9                  2,400              5,000
L6              1                  1,200              7                  1,400              2,600
T4              2                  2,165              36                 23,770             25,935
Y3              6                  7,750              28                 34,850             42,000
Y4              5                  7,650              27                 36,050             43,700
Y5              2                  4,500              22                 20,610             25,110
TOTAL           19                 29,015             168                136,580            164,995



Located Sieromco drill holes, beacons, and Sieromco and Jupiter pits and
measured locations with differential GPS.

Cleaned, deepened and logged 122 pits, and sampled 76 Sieromco and Jupiter pits:
Mining Block    Number        Number cleaned  Only logged  Logged and      Number of pit   Number of pits
                located                                    sampled         samples         fenced
L3              7             7               -            7               41              7
L4              6             2               1            1               6
L5              1             1                            1               5
L6              2             2                            2               10
T4              20            10                           10              65              12
Y3              13            13              -            13              92              13
Y4              95            50              25           25              151             54
Y5              51            37              20           17              93              39
TOTAL           195           122             46           76              463             125



Analysed Sieromco and Jupiter data and subsequently planned locations for new
drill hole locations and pits to explore.

Drilled with a 4" hollow-stem-auger (HSA) 423 holes and logged and sampled the
retrieved chips and core.


Mining Block    Number of holes       Total drilled (m)  Chip re-covery    Core re-covery    Total re-covery (%)
                drilled                                  (%)               (%)
L3              57                    365.2              99                0                 99
L4              8                     54.0               71                25                96
L5              23                    126.1              86                14                100
L6              8                     57.0               87                11                98
T4              71                    644.0              93                7                 100
Y3              60                    581.1              67                32                99
Y4              99                    816.5              2                 96                97
Y5              97                    853.5              8                 90                99
TOTAL           423                   3497.4             51                48                99



Processed 3450 drill hole samples (washing, drying, crushing, pulverizing and
splitting) and shipped these and 172 unwashed split samples to Australia and
Canada for analysis.
Mining Block  Regular Samples                     Check Samples
              Washed        Un- washed Total      Washed        Un-  washed     Total
L3            364           18         382        60            1               61
L4            52            3          55         8             1               9
L5            127           6          133        24            1               25
L6            56            3          59         6             2               8
T4            648           33         681        75            8               83
Y3            554           27         581        73            8               81
Y4            805           40         845        106           8               114
Y5            844           42         886        114           6               120
TOTAL         3450          172        3622       466           35              501



To support the exploration program the following was done:

Acquired sample processing equipment specific for bauxite samples.

Acquired four vehicles and a hollow-stem-auger drilling machine.

Established an exploration camp at Rogbere Junction, which includes among
others: office facilities, sample storage buildings, and a sample-processing
laboratory.

Established an office and guesthouse in Freetown.

Trained Sierra Leoneans for general and bauxite-specific geological work,
operation of the HSA, bauxite sample processing, GPS theory and survey, computer
data input and data processing, and issues with respect health and safety, and
to quality control and quality assurance.

Installed a GPS base station for differential GPS, and executed GPS surveys of
pits, HSA drill holes, Sieromco drill holes and beacons, and various grid line
elements and topographical features.



Other work included:

Had a feasibility study of the Rogbere - Pepel section of the Marampa - Pepel
mineral railway executed by John Rapple of CIE Consult, Ireland.  For that
purpose the Company employed up to 234 men from villages along the railway for a
period of two to four weeks to clear the track of vegetation between Rogbere and
Pepel..

Executed a five-hole drilling program at the ballast quarry near Rogbere.

Installed a weather station and a WiFi system at the Rogbere exploration camp.

Covered drill hole collars, plugged large drill hole collars, and fenced pits
for safety concerns

Mapped the damage to and destruction of the mineral railway, safe guarded what
is left with regular patrolling by company-hired personnel, rendered support to
the local police, and retrieved looted materials for safekeeping - with the
approval of the District Police Commissioner - at the Rogbere camp on behalf of
the Government.

Built and furnished a Secondary School at Rogbere village, dug a water well and
developed the school grounds for soccer and various other sporting activities.

Assisted with transportation for medical and community activities, such as
funeral and traditional ceremonies.  Promoted activities in surrounding
communities, including organizing soccer matches, parties for special occasions,
etc.



Shankill 2006



On the 24th of October 2005, the Company had appointed Chlumsky Armbrust &
Meyer, LLC of Lakewood, Colorado (CAM) to prepare a Bankable Feasibility Study
on the Port Loko Bauxite Deposit.  CAM personnel visited the Port Loko
concession from the 9th to the 15th of January 2006.  During this visit CAM
selected fifteen drillholes from two mining blocks.  From these holes, all
duplicate samples were to be processed to obtain eight size fractions of each
one-meter drillhole sample.  A total of 1176 samples were sent to SGS, Perth,
for analysis as the previous samples, (see Item 8).



           Mining    DH #      Total        Amount
           block               depth (m)    samples
           T4        2162      9            9
           T4        2178      10           10
           T4        2192      11           11
           T4        2196      11           11
           T4        2204      13           13
           T4        2208      14           14
           T4        2211      8            8
           T4        2233      6.3          7
           Mining    DH #      Total depth  Amount
           block               (m)            samples
           Y5        2213      11.5         12
           Y5        2311      9.5          10
           Y5        2314      11           11
           Y5        2324      8            8
           Y5        2404      8            8
           Y5        2409      7            7
           Y5        2414      8            8
           Total     15 holes and 147 samples




The sample processing was done from January to the end of February at Shankill's
bauxite sample processing laboratory at the Rogbere exploration camp by
personnel from the Rogbere area that had been trained by Shankill and that had
previously worked on drill hole sample processing.  The work was supervised by
Moydow scientists Moses Bangura and Abdul Koroma.



After consultation with CAM, Moydow accepted the following proposals submitted
by Cemmats Group Ltd. on the 19th of January 2006:

1.            Carrying out an Environmental baseline study for the Port Loko
bauxite deposit in northern Sierra Leone.

2.            Carrying out a Study to determine the environmental requirements
for dredging the Pepel Port for the shipping of product from the mining of Port
Loko bauxite deposit in northern Sierra Leone.

3.            Carrying out a Review of regulatory and permitting requirements
leading up to the start of operations of mining companies in the Republic of
Sierra Leone.

The results of Cemmats' studies were received as draft reports on 20 and 23
April and as final reports on 20 May 2006.  They were forwarded to CAM.



Cemmats Group Ltd. is an Engineering and Project Management consultancy based in
Freetown, Sierra Leone.  It concentrates especially on mechanical, electrical,
mining engineering and management services.  Cemmats has been involved in
consultancy work for companies in Sierra Leone, other parts of Africa, Ukraine,
and USA.  The Company was established by a group of Sierra Leoneans with
experience in the mining industry.



Moydow geologist Ebo Bakker spent from 18 to 28 April at CAM to assist in the
completion of the Feasibility study.  By the 30th of June 2006, CAM had
submitted the reports "Feasibility Study Geological Resource Port Loko Project"
and "Feasibility Study Technical and Cost Evaluation Port Loko Project."



No other exploration work was done at the Port Loko Property in 2006.  However,
maintaining the exploration camp and patrolling the Marampa-Pepel railway and
Pepel harbour facilities continued throughout the year.



Results



(i)             Regarding Cemmats' work, CAM in its "Feasibility Study Technical
and Cost Evaluation Port Loko Project" comments that it constitutes the
environmental and the socio-economic baseline studies for the mining of the Port
Loko Project bauxite deposits in the Maforki and Marampa Masemera Chiefdoms in
the Port Loko District, Northern Sierra Leone.



The objective of the study was to assemble, evaluate, and present baseline data
on the environmental and socioeconomic features and the infrastructural status
of the study area.  The Cemmats report reflects this objective and constitutes a
full environmental baseline study for the area prior to start of operations.



The central government of Sierra Leone has outlined a Core Minerals Policy for
the Minerals sector.  There are also various governmental Acts that are
applicable to the study. They are the following:



*              The Environmental Protection Act, 2000;

*              The Mines and Minerals Act, 1996;

*              The Forestry Act, 1988;

*              Forestry Regulations,1989; and

*              The Factories Act, 1974.



The Environmental Protection Act, which requires all mining companies to prepare
Environmental Impact Assessments (EIAs) before the start of mining, and the
Mines and Minerals Act are particularly relevant to the mining sector, dealing
with many issues pertinent to mining and the environment.  In addition to these,
Sierra Leone is signatory to several international conventions.



CAM has reviewed the Cemmats work and the resulting report entitled,
Environmental Baseline Study for Port Loko Bauxite Deposit in Northern Sierra
Leone.



The baseline study highlighted the status of the environment and the socio-
economic aspect of the eight settlements identified for the study, which are
located within the concession.  Mining activities in Sierra Leone are
customarily associated with social, developmental, and environmental problems.
This is expected to also apply to the Port Loko bauxite project.  Mining is
always a lure for unemployed people and generally results in over-population of
such areas, with the attendant environmental effects.



The physical and biological aspects of the environment are well captured in the
Cemmats report.  These aspects are to a large extent typical of most areas in
Northern Sierra Leone.



The socio-economic conditions in the area are also typical of this part of
Sierra Leone.  Poverty is pervasive and amenities few.  The expectation of the
people in the surrounding communities for significant benefits from mining
activities will be high.



The baseline survey, to a large extent, provides an indication of the
environmental and social impacts of the project when it enters the development
and mining stages. Although further detailed evaluation will be required, it is
not anticipated that these impacts will threaten the economic or political
viability of the project.  Appropriate mitigation measures are available for any
such impacts.



(ii)                Summarizing, CAM in its "Feasibility Study Geological
Resource Port Loko Project" concluded that - based on all available data - CAM
would not recommend proceeding with Project development until such time as
additional sampling and testing has been performed that validates the Sieromco
data in terms of recoveries and grades for Al2O3 and content of reactive silica.



CAM stated - inter alia - that if Moydow believes that their testing to date has
not shown the true economically recoverable resource of the Project, and desires
to perform additional tests, CAM would recommend that in-depth pilot plant
testing be performed on pit-sourced bauxite ore from the various Port Loko
deposits.



Although a substantial amount of data was available from the work performed by
Sieromco, two of the primary factors affecting the potential economic viability
of the project have been insufficiently documented (according to CAM).  First,
the procedural method used to arrive at the Al2O3 grade determination was not
clearly detailed and documented, and second, there is no specific data relating
to the determination of reactive alumina and reactive silica versus total
alumina and total silica, respectively, in the Sieromco data. The procedural
method used to arrive at the Al2O3 grade determination will be directly related
to product recovery, and thus cost per tonne of product.  Excess reactive silica
will reduce the value of the product, ultimately to the point where the product
is no longer marketable.  In order to perform the first step in converting the
present inferred resource to measured and/or indicated, the above mentioned
variables must be accurately determined and documented throughout the deposit.



To accomplish this, CAM recommends the following program:



1.                 Obtain bulk samples from each area that will eventually be
mined.

a.       Samples to be obtained from machine-excavated pits with dimensions of
10 meters wide by 50 meters long by 11 meters deep. The physical characteristics
of the samples should appear to be the same as those expected from an eventual
full scale mine operation.

b.      Bulk samples should be handled and stockpiled (if applicable) in a
manner similar to the anticipated in a full-scale operation.

c.      Perform ore density evaluations on new trench samples.

2.                 Construct a pilot plant on the project site to crush, screen,
wash and classify (as necessary) the bauxite ore to produce a final product.

a.       Pilot plant must be designed to replicate the conditions that would be
found in a full-scale facility.

b.      Process a minimum of three bulk samples from each two-meters of depth in
the sample pit.

c.      Analyze and document incoming and exiting material weights, taking into
account moisture content to establish weight recovery values.

d.      Analyze product material for percent Al2O3 and silica, such that
reactive and non-reactive components can be accurately determined for each level
in a sample pit.

e.      Ship product to buyers for evaluation.

3.                 Review plan and vertical location data for the Sieromco
exploration program and compare directly with the new trench data on a
statistical basis.



Such a program should not only provide an entirely new, clean set of resource
data, but should also serve to either validate or invalidate the data collected
and assumptions made regarding the existing Sieromco data.



(iii)                Summarizing, CAM in its "Feasibility Study Technical and
Cost Evaluation Port Loko Project" stated that: the Port Loko process plant at
Pepel Port has been designed at an average capacity of 350 tonnes per hour of
raw ore. This production rate, which should yield 1.6 million tonnes of washed
bauxite per year, is based on operating 24 hours per day and 365 days per year.
However, the nature of the bauxite deposits appears to be the potential limiting
factor to production, rather than mining, washing or shipping. Careful blending
may be difficult to achieve at high production rates, and reduced attention to
blending could well result in excessive grade fluctuations and ore losses. Also,
the sizes of the ore bearing structures are not suited for massive production.
In reality, the maximum production rate depends on the efficiency of the mining
methods and grade controls, since grades and ore recovery are the principal
issues in achieving a marketable product.



Capital costs for the Port Loko Project have been estimated in 2006 United
States dollars.  These costs include all equipment, materials, labour and
support functions required to mine, process and export the bauxite contained in
the Port Loko mineral deposit.  The size and extent of the facilities is based
on the mining and processing rates specified as above and on the infrastructure
necessary to support these rates as described CAM's report.


Estimated Capital Cost Summary (US$)
Description                        Labour        Material        Equip-ment      Sub-Contr.  Other Total
PORT FACILITIES                    349,694       8,492,189       5,892,138       1,274,000         16,008,021
RAIL TRANSPORT                     103,749       6,957,800       516,394                           7,577,943
MINING SUPPORT                     35,272        595,100         1,095,402                         1,725,774
PROCESS FACILITIES                 270,612       525,000         2,775,993       13,027,601        16,599,206
INFRASTRUCTURE                     192,234       4,568,566       1,145,403       7,679,000         13,585,203
Feasibility study; bankable                                                      1,000,000         1,000,000
Engineering; detail                                                              2,000,000         2,000,000
Vendor Reps                                                                      950,000           950,000
Capital Spares                                                                   96,315            96,315
OTHER COSTS
Freight, taxes & duties; direct equip & materials                                2,113,865         2,113,865
Contractor mark-up on materials & related costs                                  2,325,252         2,325,252
Contractor direct OH, plus general OH & profit                                   391,938           391,938
Contingency (on overall project cost)                                            6,437,352         6,437,352
EPCM Contract (10% of contractor cost)                                           6,437,352         6,437,352
TOTAL CAPITAL COST                                                                                 77,248,221



The November 1980 Alumining Pre-Feasibility Study for the Exploration of the
Port Loko Bauxite Deposits contains a capital cost estimate of US$ 59,864,000
(excluding mining equipment and working capital) in 1980 dollars.  This number
contains significantly more detail and appears much more comprehensive than any
other capital cost estimates contained in the other available documents.  For
purposes of comparison, this estimate converted to 2006 dollars at an annual
rate of 2 percent, which is a very conservative estimate of the annual inflation
rate over the past 25 years, would be approximately US$ 98.2 million.  CAM
considers its capital cost estimate of US$ 77.2 million to be conservative by
comparison.



CAM's estimate of operating costs is based on:

*        Local labour rates, obtained from the Moydow representatives located in
Sierra Leone were used to estimate construction costs.  These rates included
applicable benefits and salary burdens.

  * Local labour productivity factor of 3.0 when compared to the Texas gulf
    coast area.
  * Electrical power generation costs of US$ 0.06 per kWh.
  * Contract mining cost of US$ 1.25 per tonne of material moved.
  * Bauxite ore haul cost of US$ 0.15 per tonne kilometre.
  * Railcar loading and transport cost at US$ 0.25 and US$ 0.04 per tonne
    kilometre, respectively.
  * Material handling and ship loading cost at US$ 6.00 per tonne of bauxite
    product.
  * Product drying costs at US$ 2.50 per tonne
  * General and administrative costs at US$ 0.75 per tonne With the exception
    of local labour the rates and costs used to estimate the Port Loko operating
    costs are based on CAM's current experience and data collected for similar
    activities on mining projects in various parts of the world.


                             US$/m3 or tonne           for 6.725 year, in US$
Grub/m3                      0.10                      Labour                             39,466,657
Overburden                   0.75                      Power                              14,243,083
Waste/tonne                  1.25                      Reagents                           238,174
Ore mining                   1.25                      G&A supplies, 250/month            20,175
Hauling                      0.75                      Maintenance, 4% of capital plant   2,689,965
Washing                      4.34                      cost
Loading for rail             0.25                      Insurance, 250,000/year            1,681,228
Rail transport               2.64                      Total                              58,339,282
Ship loading                 6.00
Drying, bunker fuel          2.50
G&A                          0.75                      for 6.725 year and 1.6 million ton/year
Total US$/tonne              20.58                     Total US$/tonne                    5.42





CAM developed a cash flow that projects operations for a period of 12 years.
The bauxite resources indicated by the Sieromco data would extend the mine life
far beyond a 12-year period; however, after a given length of time wear on
equipment will reach a point where normal maintenance will no longer produce the
desired operating availability and new equipment will be required.  CAM's model
has not been developed to consider replacement capital expenditures that would
normally start to occur sometime after year 12.



A value of US$ 32 per tonne was assumed for the bauxite product.  This value was
selected to produce a positive cash flow and a positive net present value (NPV)
at a discount rate of 7.5 percent.  The internal rate of return (IRR) is 9.0
percent at US$ 32 per tonne.  At a value of US$ 30 per tonne, both the NPV at
7.5 and 5.0 percent become negative and the internal rate of return (IRR) is 3.0
percent.



Assuming the grades, recoveries and costs (both capital and operating) used in
the model are correct, the project would have a negative NPV at a zero percent
discount rate and a negative IRR at today's metal prices.



Summarizing, CAM does not see much potential for reducing labour rates and
mining contract costs with oil prices continuing to rise and environmental
priorities requiring greater attention throughout the world.



CAM states that based on all available data, it would not recommend proceeding
with Project development until such time as additional sampling and testing has
been performed that validates the Sieromco data or otherwise proves the resource
in terms of recoveries and grades for Al2O3 and content of reactive silica.



If Moydow believes that their testing to date has not shown the true
economically recoverable resource of the Project, and desires to perform
additional tests, CAM would recommend that in-depth pilot plant testing be
performed on pit-sourced bauxite ore from the various Port Loko deposits.



Assuming the Sieromco stated resources, recoveries, and grades can be validated,
the Project still faces the major problem of economic viability.  CAM considers
it unlikely that any significant reductions can be achieved in the estimated
capital or operating cost.  Combining this with the present market price for the
bauxite product, CAM does not consider the project to be feasible at this time.



2007 Exploration



Because of the license situation (see section 1) no exploration work was done at
the property in 2007.  The Rogbere exploration camp was maintained on a standby
basis.



6.             Mineralization



See Item 4, "Local Geology".



7.             Drilling



A total of 426 holes were drilled from April to September 2005 with a 4"
diameter hollow-stem auger in eight of Sieromco's mining blocks.  Drilling was
conducted under supervision of an expatriate foreman driller from Pontil
Minerex, Ghana, who trained a local crew of five Sierra Leoneans, four as drill
assistants and one as drilling foreman.  A Sierra Leonean geologist that had
been trained by a Moydow expatriate geologist conducted the logging of the
samples.  The sampling was done under his supervision by a team of four
samplers.



Based on the hardness and wetness of the material drilled, material was either
recovered from the outside of the auger (so-called "chips") or from the inside
of the hollow stem sampling tube ("core") as the system was meant to be used.
The chip sampling technique, although defeating the purpose of the HSA system to
prevent production of contaminated samples, duplicated Sieromco's drilling and
sampling technique exactly.  Later in the program, when improvements to the
drilling system had been made, the core recovery increased dramatically.



Chips or core of each hole was placed in sequential order in one-meter depth
increments in a core box.  After logging of the material (i.e. detailed
geological description), the material was sampled.  In case of core, all the
material in each meter interval constituted the sample.  In case of chips,
sometimes all, but generally a part of the material in each meter interval was
sampled after homogenizing the material.  The sampled material had about the
same weight as a one-meter core sample.  Each sample was placed in a bag (rice
sack) labelled with the mining block identifier, the drill hole number, and a
sample number according to depth in sequential order, starting with 1 for the
interval 0 to 1 meter.  A tag with the same number was placed in each bag.
Sample bags were weighed with a handheld scale; weights were typically between 8
and 12kg.  Sample bags were transported to the Rogbere Exploration Camp for
subsequent sample processing.

Upon completion of the drilling, each drill site was cleaned of debris.  Drill
holes were covered and holes widened in the rainy season were plugged with
cement.



The drilling was supervised either by Don Hains, P. Geo., by Dr. Yuriy Deryugin
(geologist), or by Ebo Bakker, P.Geol. (Alberta).



8.             Sampling and Analysis



Sampling and sample processing started in early April 2005 and ended in
September 2005.  The program was set-up and supervised by Don Hains, P.Geo. of
Hains Technology Associates, Toronto, Ontario.



Drill samples, 2005 program

See item 7 for sample processing at the drill site.  Subsequently, most of the
samples were further processed at Moydow's laboratory at the Rogbere exploration
camp; the remainder were processed at the laboratory of the Geological Survey in
Freetown.  Processing consisted of weighing, splitting (Jones splitter),
weighing, hand washing on 18" diameter 1mm sieve for 2 minutes, drying of the
oversize at