The Cinnabar Canyon Sulfur Deposit

Homestake Mining Company has identified a significant native sulfur resource at its Cinnabar Canyon prospect in Mono County, California. Elemental sulfur occurs as replacements, fracture coatings and breccia fillings in a thick sequence of Miocene-Pliocene intermediate volcanic rocks. The deposit extends along a northwest trending regional fault and measures approximately 900' in width, at least 1800' in length, and has a thickness in excess of 200'. The deposit lies approximately 150' below the surface and is covered by a silicified cap of volcaniclastic strata. The deposit has been delineated by rotary and core drilling. Utilizing a grade cutoff of 5% elemental sulfur, the delineated deposit has a probablelpossible resource of 16.1 million tons of ore averaging 17.9% elemental sulfur containing 2.57 million long tons sulfur. Assay grades within the resource area range up to 40% sulfur over a 40-foot intercept.