Majestic Gold Corp. - Sawayaerdun Project

Gold in China

Sawayaerdun Project

Project Details Sawayaerdun Resource Estimate

Song Jiaguo Project

Location:

Location Map
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The Sawayaerdun Gold Project is located 200 kilometers northwest of Kashi in the western region of Xinjiang Province, China.

The property is located in the prolific Tian Shan Gold Belt which hosts numerous world class gold deposits including Muruntau (140,000,000 oz Au) and Kumtor (13,900,000 oz Au).

Gold deposits in this belt are commonly structurally controlled, occurring along fault/shear zones within metamorphosed sedimentary rock.

Project Highlights:

Historical Resource* >3.0 Mi oz Au reported on license (*not NI 43-101 compliant)
Includes >1.4 Mi oz Zone IV
Proven geological model - in prolific gold belt
Immense gold system (>5km X >2km)
Over 120 trenches identifying 22 gold zones on surface
4 main zones with combined surface trace over 11.5 km
Previous trenching and drilling results demonstrated good continuity of gold mineralization laterally and down dip

Geology and Mineralization:

A total of 22 mineralized zones have been identified at Sawayaerdun. Gold mineralization at Sawayaerdun is hosted mainly in late-Carboniferous psamitic rocks that are in fault contact with Devonian carbonates. Sheared structures hosting mineralization are northeast trending and dip steeply to the northwest. Zone IV, which has undergone the most thorough exploration on the property, has been traced on surface for almost four kilometers. It averages a width of 25 meters and has been intercepted at depths of up to 300 metres. Historical Chinese resource estimates of Zone IV are 45,246 kg/ Au (1.4 millon oz) contained in 17.2 million tonnes.

2005 Exploration Program:

Drill Hole/Trenches Map
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Zone IV

Zone IV program drilled 41 holes totaling 7,334 metres and 6 trenches for a total length of 396 metres
2,000 metres of strike length at approximate 100 metre separations both along strike and down dip
Zone IV total surface trace close to 4 kilometres now tested to depths of 200 to 300 metres
Mineralization remains open in both directions along strike and at depth

Zone I

Zone I program drilled 4 holes totaling 435 metres testing 400 metres of strike length which has been traced on surface for over 2 kilometers
Each hole intersected significant gold grades of up to 2.31 grams Au/tonne and thicknesses of up to 21.3 metres, averaging 13 metres of 1.52 grams Au/tonne
Geochem & Geophysics (Mag, VLF-EM) complete over Anticline (Zones I,II,XI) (Prolific coincident anomalies)

ZONE IV HIGHLIGHTS:
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Hole         From   To   Drilled     True       Au g/t
                        Width (m)  Width (m)*
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SWD-05-24     60    96      36      29.5         2.54
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    includes  67    83      16      13.1         4.03
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    includes  73    75       2       1.6         8.04
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SWD-05-26     65    96      31      23.7         2.45
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    includes  83    90       7       5.4         5.82
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Combined all**              62      47.5         1.87
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SWD-05-09     59   108      49      40.1         1.90
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    includes  75    80       5       4.1         4.64
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ZONE I HIGHLIGHTS:
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Hole         From   To   Drilled     True       Au g/t
                        Width (m)  Width (m)*
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SWD-05-48     76   101      25       8.6         2.31
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SWD-05-49     46    60      14      11.5         1.46
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              55    70       4       3.3         1.65
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Combined all**                      14.7         1.50
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SWD-05-50     57    83      26      21.3         1.35
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*True width assumes dip on mineralization of 80 degrees NW
 and no deviation of drill holes  ** Aggregate includes
 intervals not shown in this table

2006 Exploration Program:

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Sawayeardun
Maps

Zone IV program drilled 4 diamond drill holes totaling 1,120 metres and 25 trenches for a total length of 625 metres
Soil sampling, prospecting and rock chip sampling, preliminary metallurgical bulk testing along with magnetometer and IP surveys
Program correlated with existing known mineralization and extended potential strike length approximately six times (zones I, II, III, IV,V, VIII, XI, XVI, XVII)
Zone IV strike extended by 525 metres southwest
Zone IV confirmed to over 2,500 metres of strike

2007 Exploration Program

IP survey conducted
Depth Penetration ~ 100 metres
Results show excellent correlation with known gold zones Additional buried sub-parallel zones identified Many new targets for drill testing identified Only partial results received to date
Additional buried sub-parallel zones identified
6 holes drilled -- extending Zone IV >800 m to south
1 hole drilled in Zone I -- now have ~600 metres defined Mapping and prospecting identified high grade zone Gargoyle Gulch high grade sample 109 g/t (3.5 oz/t) Au, 33,878 g/t (1,100 oz/t) Ag, 29% Cu, and 25% Sb -- value of $18,000 per tonne Year round access road commissioned Chinese pre-feasibility report initiated Negotiating with potential partner

Future Plans:

Complete National Instrument 43-101 report on inferred and/or indicated resource estimate
Scoping study to define project economics
Bio-heap leach tests and other metallurgical studies
Drilling to upgrade and expand Zone IV resource
Definition drilling to define resource in area of Zone I
Evaluate remaining project area through geophysics, geochemistry, and initial drillings
Continue systematic drill testing in additional mineralized zones to define potential resource at Sawayaerdun