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 Medallion has signed a definitive Option-to-Purchase Agreement to Option the Amazing Grace gold-exploration property located 15 kilometres southeast of Castlegar, British Columbia. In order to exercise the Option and acquire a 100% interest in the Property, subject to a NSR Royalty, Medallion must pay to the vendor, over a period of five years, an aggregate of $140,000 ($10,000 of which has been paid) and issue to the vendor an aggregate of 150,000 common shares of Medallion. The Net Smelter Return royalty in favour of the vendor is 2%, of which one-half can be purchased by Medallion for $1 million. Medallion must also perform $70,000 in work on the property during the first year of the Option Agreement. Property Details: The Amazing Grace claim group is located in the Nelson mining division, about 15 kilometers southeast of Castlegar, British Columbia (NTS 82 F/5, claim group centered on Lat 117O31'30", Long 49O16'40"0. It is accessible from Castlegar via Highway 3 and a series of logging and power-line-access roads that comb the property. Navigation of a number of the rough roads requires a four-wheel-drive vehicle. Elevations range from 1,200 to 1,800 meters above sea level. Dense conifer forests originally obscured the surface but recent clear cutting has created large open brushy areas. Drainages are generally narrow with steep slopes but large flat areas occur in the central part of the claim block. Talus and poorly developed soil cover most of the property. Ownership & Land Usage: We believe this property's geology holds the potential for a world-class gold deposit. The property comprises 17 Crown mineral claims covering approximately 4869.94 hectares (48.67 square kilometres). There is one small inlier claim of 50 hectares that is not controlled by Medallion. This small claim (Tenure #545494) appears to be well outside the prospective area. The majority of the claim block lies within an active timber-cutting license and surface-rights tenure owned by Atco Wood Products Ltd. Other than present day logging and past mining, there are no additional land uses. There are no known active or cabin sites. Nearby, the city of Castlegar provides a full range of exploration services and infrastructure.
 Geology The Maud S mine and the Meister, Marilyn, and High-grade prospects are hosted in the Lower to Middle Jurassic Bonnington pluton, which is generally of granodioritic composition. The mineralization appears to be structurally controlled and related to one or more N 25 - 30º W oriented shear zones. The most prominent of these is the structure that controls the Maud S mine mineralization. North-northwest trending and, to a lesser extent, east trending features of the regional aeromagnetic map also infer structural trends. No detailed structural data or analysis has been compiled that could be used to explain the general geology or the specific genesis or control of the mineralization At the Maud S mine, the mineralization is manifested as a series of granodiorite-hosted quartz-limonite veins, vein breccias, and stockworks. These are best observed in the underground workings. Gold, galena, sphalerite, chalcopyrite, arsenopyrite and calcite have been identified in the veins. The Maud S vein system is approximately 50 metres to 75 metres in width and has a known strike length of about 150 metres. It appears to pinch out to the north, but is open to the south and southeast. The vein system is located primarily east of a major regional shear zone, which strikes north-northeast. Dominant vein trends range from NNW to N, but E-W trending veins are also observed. The northerly trending veins dip westerly at moderate to steep angles into the major regional shear zone. The veins may occupy dilational fractures opened in response to the shear faulting. Wall-rock alteration selvages around the veins are relatively narrow and not generally intense. Quartz, chlorite, and sericite appear to be the primary alteration phases, along with the disseminated sulfides. Disseminated pyrite and galena are reported in the wall-rock granodiorite. Anomalous gold values, occasionally in excess of one gram per tonne, have been reported in the altered granodiorite.
The Marilyn prospect is relatively close to the Meister. It consists of disseminated sulfide mineralization (dominantly pyrite) and scattered quartz-veinlet stringers and stockworks in quartz-sericite-altered granodiorite. The High Grade prospect is located about 500 metres northeast of the Meister. It consists of vuggy quartz veins and stringers that carry limonite and coarse free native gold. The High Grade prospect is also in granodiorite host rock. Gold-exploration Target At the Amazing Grace property, surface exposures of several sequences of gold-bearing veins with intervening altered granodiorite wall rocks over large areas along slopes and ridge tops, hold the potential for a significant, easily accessible bulk-tonnage open-pit gold target. Significant gold values, as coarse free gold, occur with minor sulfide minerals in multiple vein sequences, which are spatially related to a regional, north-trending fault along the west side of the property. Over four kilometres of this favourable structure occur on the property. Numerous prospect pits expose at least two such parallel sequences of these gold-bearing structures. One such sequence ranges up to 75 metres in width with an open-ended strike-length of 150 metres. Environmental Concerns The main environmental disturbance in the area is the logging clear cut. Several large areas are effected. A major power line also passes through the claim block and the forest has been cleared beneath the lines. There are a number of old prospect pits and small waste dumps within the claim group. Most of these are in the area of the Maud S mine and the Meister prospect. These old diggings are now stable and often overgrown with vegetation. There is no sign of acid mine drainage from the adits or from any of the old small waste dumps. It is unlikely that acid mine drainage would occur from this particular geology, as the sulfide content of the mineralization is low. There are a number of roads in the area, which range from dozer trails to reasonable gravel-based roads. Virtually all the roads are used for access for the logging activity and they are the responsibility of Atco Wood Products. There apparently are no parks, no significant rivers nor any environmentally sensitive areas in, or near the claim block. History Gold was discovered in this area in the late 1800's. There are a great number of prospect pits on the property but records refer only to a limited past production, during the late 1800's, from the Maud S mine About 2,000 ounces of gold were produced and the average ore grade was listed at about one ounce per ton. Underground workings at the Maud S are on three adit levels and remain open along a total crosscut and drift length of about 100 meters. The Maud S dumps are small and the present open crosscuts and drifts probably represent the total workings of this mine.
In 1995, the property owner, Bruce Doyle, began staking claims in the area. He added several claims since then and, in 2005, completed his present holdings of 17 claims. Phelps Dodge collected soil samples over the eastern portion of the present Doyle holdings in 1996. Eagle Plains Resources sampled soils in the northwest portion of the property and performed some mapping and sampling in the central part during 1998. Cassidy Gold began a program in 2000, which apparently focused on high-grade veins. Two holes were drilled west of the Maud S and two holes were drilled under the High-Grade prospect. A fifth hole was drilled west of the High-Grade prospect. No significant results were reported. Firestone Resources optioned the property in 2004 but did no significant work. Prospecting in the area intensified again in the 1930's when exploration continued on the Maud S and the Meister prospect was discovered, 300 meters east of the Maud S. Two deep trenches and a short shaft still expose gold-bearing mineralization at the Meister prospect. The vein dip-slope, into which the Maud S adits access the veins, and the ridge top above, where the Meister is located, are riddled with pits and short shafts. Exploration Program In order to advance the project successfully, much more must be known regarding the controls of the gold mineralization. Previous work is almost totally devoid of structural and physical-chemical data. Without this information, it is not surprising that the initial good discoveries over the last 125 years have not been advanced beyond the basic prospecting stage. The initial exploration program will consists of the following:
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