Work Done in 2006

Since 2006 Attu Zinc Ltd. has acquired compiled and digitized most of the data available on the deposit and has been developing a model on the distribution of the metals, their abundance (grades)/volume as well as a geological concept on the controls of mineralization and how the deposit formed. The purpose of this work has been to:

1. Evaluate and confirm the authenticity of the earlier estimates on the tonnage and grade as well as that of the feasibility study carried out by Outokumpu. (In other words, how representative is the previously done sampling and can rigorous resource calculations be made on this basis).
2. Determine if additional value can be added to the deposit by identifying new zones of mineralization, high-grade zones, etc.
3. Predict additional areas of mineral potential, which have not been tested.
4. Determine the geometry of the mineralized body for the purpose of projecting extensions on or near surface and at depth.

Attu Results to Date

1. Sampling distribution (mainly drill core) of the deposit is insufficiently representative to be considered reliable for an economic feasibility study using modern day resource calculation guidelines.  This is mainly because of the apparent erratic distribution of the metals in the mineralized rock, the wide spacing between drill holes, as well as the presence of large, untested or poorly tested volumes of rock which have only one or two intersecting drill holes.  Therefore past economic feasibility reports, using the existing data, can only be considered as preliminary estimations. 
2. The Attu mineralization occurs within one rock type, which can be defined and mapped out based on drill hole logs and surface exposures (see maps and sections).   Within it are very high-grade and lower grade zones of mineralization.  The geometry and extent of these zones has yet to be determined.
3. The geometry of the mineralized rock (Min Rock) can be modeled in 3D and used as a guide in future exploration and in potential tonnage calculations.
4. In the deposit, high Zn with low Pb forms distinct zones, as does high Pb with high Ag and low Zn.  This is consistent with geologic theory, which also predicts the presence of a ‘footwall’ copper zone that should carry some gold.  A possible copper zone has been intersected in two holes at Attu, but not followed up, even though the zone in one hole returned 1.1% Cu, 0.6% Zn, 0.5% Pb, and 33 g/t Ag over 23 meters. 
5. The geologic setting, rock-types, alteration and mineralization are similar to other deposits of the Bergslagen district of Southern Sweden such as the large and rich Zinkgruvan deposit which is in the same belt of rocks as Attu.

Based on these preliminary results, sufficient merit exits for some well-directed investment expenditures, which could greatly enhance its economic viability and marketability to interested third party miners and/or investors.

Immediate Field Work Program

The initial thrust will be to blast surface trenches across the Min Rock to a depth of 1.5 m, which has been done only in limited areas in the past.  The purpose is to expose:

1. Fresh, continuous, vertical and horizontal surfaces so that the distribution and geometric behavior of the mineralization and its relationship to other rock types, as well as to the iron sulfides, can be determined.
2. Pertinent structural feature that can be measured and documented which is necessary to interpret the distribution of mineralization intersected in drill holes.
3. The Min Rock to continuous channel sampling.

Trenching of some 100 to 150 linear meters at an estimated cost of 25,000 euros is planned.  Channel sampling and analysis is expected to cost an additional 8,000 euros.

Work Planned for the Near Future

1. Near surface testing of mineralization up to 200m east of the shaft, and along the north and south flanks of the deposit.
2. Follow-up definition of any high-grade zones evident from the trenching and previous drill hole assay compilation.
3. Geophysical test profiles along the trenched section, over the unknown area to the east, and the down-plunge of the deposit to the west, measuring detailed gravimetric, electromagnetic and magnetic properties of the deposit,.
4. Possibly some deep-penetrating geophysical measurements if results from 2 are deemed useful.
5. Testing of the copper zone.
6. Deep holes beyond the 300 m level to test for down-plunge continuation of the deposit.