Lions Gate Metals – Copper and Gold in BC

Overview

Lions Gate Metals (TSXV:LGM) is a British Columbia-based junior resource company focused on the exploration, development, and acquisition of both advanced and early stage mineral projects. The company has 100% ownership of three copper and molybdenum properties, the Poplar Project, the Hudson Bay Mountain Project and the Kelly Creek Project, all in Bulkley Valley-Chilcoton region of British Columbia. Lions Gate Metals has recently acquired a 60% interest in the Copperline property in British Columbia and is pursuing additional exploration work and preliminary development studies.

Investment Highlights

  • Copper-moly mine, offering good logistics and access to existing infrastructure.
  • The Hudson Bay project almost completely encircles the Davidson molybdenum deposit, one of the largest high-grade deposits under development today.
  • The Kelly Creek Project’s “red bed copper” style of mineralization has been successfully mined in the past, representing potential for an advanced exploration target.
  • The Copperline Project covers a zone of volcanic “red bed copper” style of mineralization in which previous operators have reported grades ranging up to 8.5% copper and 320 gpt Silver.

Chief Properties

The Poplar Project

The Poplar Copper-Moly Project is wholly-owned by Lions Gate Metals and is considered to be at an advanced stage of exploration. Poplar is a large porphyry-style deposit, located in the Central interior of British Columbia, 150 kilometres (km) south of Smithers, BC. Because the Poplar Project is also 40 km from the producing Huckleberry copper-moly mine, this existing infrastructure is advantageous for logistics.

Exploration has been completed on Poplar, including 105 drill holes totaling 23,164 metres (m). The main Poplar zone has been historically estimated as 236 million tonnes, grading 0.37% copper, 0.1 grams per tonne gold and 0.0095 molybdenum.

In October 2009, LGM completed a Deep Induced Polarization Survey over the Poplar Main Zone deposit. The survey was designed to map the electrical properties of the area from surface to a maximum estimated depth of approximately 500 meters. Approximately 13 line kilometres were surveyed using a Gradient IP array, and approximately 10 line kilometres were surveyed to produce the Insight depth sounding cross sections. Cross sections of chargeability and apparent resistivity were inverted to produce models of the electrical properties. These models were compared with the known mineralized intercepts in the diamond drill holes in order to look for extensions of mineralization both laterally and at depth.

Preliminary results indicate that the survey mapped the areas of known mineralization. As such, the survey is considered to provide an effective model of the deposit. For exploration purposes, the survey provided several indications where mineralization appears to be “open”, or not tested by diamond drilling. In particular, there is geophysical evidence that the higher grade portion of the Poplar Main Zone extends to depth, with a possible extension to the west. The deep high grade mineralization of the East Zone may extend further to the north, and similarly to depth. These results were used to design a 5200 metre diamond drill program to test mineralization depth and grade. The proposed drill program consists of 13 diamond drill holes in and around the Poplar Main Zone and is scheduled for completion in the winter of 2010-2011.

The Company’s exploration concept is to use the chemical and physical attributes common to porphyry copper deposits to explore for additional resources. A program of diamond drilling, supported by the deep imaging ground induced polarization (IP) geophysical survey is proposed to test the core of the Poplar Deposit.

The Hudson Bay Mountain Project

Lions Gate Metals has 100% interest in The Hudson Bay Mountain Molybdenum Project, which almost completely encircles the Davidson molybdenum deposit owned by Thompson Creek Metals Company. The project is in the grassroots exploration stage and is prospective for discovering additional molybdenum resources related to the Davidson deposit—one of the largest high-grade deposits under development today.

Just northwest of Smithers, BC, the property is located on Hudson Bay Mountain which rises to an elevation of 2,591 m, the highest peak in the Hudson Bay Range. The Hudson Bay Mountain property consists of 46 contiguous mineral tenures containing 659 cell units covering 12,278 hectares. The earliest recorded exploration work done on Hudson Bay Mountain dates back to 1905 when prospectors began exploring much of central B.C..This deposit is currently being evaluated as a potential molybdenum producer.

The deposit is reported to have a measured resource of 6,070,000 tonnes grading 0.286% MoS2 and an indicated resource of 102,610,000 tonnes grading 0.259% MoS2 all at a cut-off grade of 0.17% MoS2.

A two phase exploration program has been recommended for the Hudson Bay Mountain Project. Phase 1 would involve identifying drill targets using detailed geological mapping and three-dimensional IP. Phase 2 would involve diamond drilling to follow-up on targets confirmed in Phase 1.

The Kelly Creek Project

The Kelly Creek Copper-Silver Project is located 30 km west of Terrace, BC and is wholly-owned by Lions Gate Metals. Kelly Creek has had considerable historical exploration and hosts high grades of both copper and silver. The “red bed copper” style of mineralization has been successfully mined in the past and Kelly Creek represents a target for advanced exploration. Similar volcanic hosted red bed copper deposits are the Calumet Mine in Michigan, with production of 72.4 million tonnes at 2.64% copper and the Sustut copper deposit in BC with a resource of 8.24 million tonnes containing 1.62 % copper.

Previous exploration within the area now covered by the Kelly Creek Project property includes: prospecting, trenching, soil geochemical surveying, induced polarization geophysical surveying core drilling in at least twenty-eight holes, driving of underground workings comprising three hundred and two metres, underground core drilling in at least twelve holes comprising 621.6m, rock and core sampling and geological evaluation. Not all results of this previous exploration are currently available.

The most recent work completed on the property was by Cathedral Minerals Ltd. in 1981. The Company estimated a resource of 2.27 million tonnes containing 1.03 per cent copper and 18.5 grams per tonne silver and an inferred resource of similar tonnage and grade.

Much historical exploration work needs to be computerized, including at least 28 surface core holes and 302 m of underground core drilling in at least twelve holes totaling 621.6 m. Some of these results include 5.35 % copper and 95.3 grams per tonne silver over 4.6 m and 1.30% copper and 28.8 grams per tonne silver over an estimated true width of 22.5 m. Modern airborne geophysics will then be flown, with new targets from this drilled along with confirmatory drilling to upgrade the historical resource to current standards.

Management

Arni Johannson – CEO & Chairman – Arni Johannson has 20 years of experience in the Canadian capital markets. His focus has been to build assets and senior management teams in companies he is invested in while executing a defined business plan. Mr. Johannson was the founder and architect behind Titan Uranium (TSX.v:TUE – www.titanuranium.com) and cofounded The Fortress Group (Fortress Paper – TSX:FTP – www.fortresspaper.com). He also serves as a director for a number of public companies including Mega Uranium ( TSX:MGA – www.megauranium.com ).

Blair McIntyre – President - Blair McIntyre has a Bachelor of Science from the University of British Columbia and a Business Administration Diploma from the British Columbia Institute of Technology. Mr. McIntyre has 12 years of business development experience and has assisted Fortune 500 companies like Bristol Myers, Squibb, and SunTrust Bank. Most recently, Mr. McIntyre was involved in a series of international mining transactions in both the private and public sector.

Michael Sweatman – CFO & Director - Mr. Sweatman currently serves as the Chief Financial Officer of Lions Gate Minerals Inc. He is a Chartered Accountant and operates MDS Management Ltd.; a Vancouver-based management consulting company established in November 1992. Michael also serves as the VP Corporate Services and Corporate Secretary for Run Of River Power Inc. and as President of Teslin River Resources Ltd. In addition, Michael serves as a Director and Audit Committee Member of Brownstone Resources Inc. (BWN) and Mega Uranium Inc. (MGA). Over the last 20 years, Mr. Sweatman has served as a director and officer of a number of companies. He obtained his CA designation in 1982 and is a member of the Institutes of Chartered Accountants of both British Columba and the Yukon Territory. He obtained his Bachelor of Arts degree in Economics and Commerce from Simon Fraser University 1982.

Andrew Gourlay – VP of Exploration – Andrew Gourlay has over 30 years experience as a Professional Geologist & Qualified Person. A graduate of the University of British Columbia in 1977, Mr. Gourlay has gained extensive management and exploration knowledge throughout North and South America, as well as Asia. He has successfully advanced projects from grassroots to resource calculation stage. Mr. Gourlay has also been the Exploration Manager for Chase Resource Corp. in the Philippines, Essex Resource Corp. in Bolivia and for Asia Gold Corp., a subsidiary of Ivanhoe Mines Ltd., in Mongolia. Mr. Gourlay is a Professional Geologist registered with The Association of Professional Engineers, Geologists and Geophysicists of Alberta and a Fellow of the Geological Association of Canada.

Christina Boddy- Corporate Secretary