The Dadiangou project is located in SE Gansu Province, central China. Liangdang County Town is 35 km directly south of the property. Xian, the Provincial capital of Shaanxi Province, is 240 km due east and the easiest accessible major city.

The Dadiangou Property lies within an undeveloped and uninhabited forestry area, located in the hilly south slopes of the West Qinling Mountain belt. Elevations within the property range from 1400 to 2200 m, and within the drill area, from 1800 to 2000 m. It is a continental mountain climate with temperatures from 35°C in July to -5°C in January (with lows of -15°C at night).

There is no frost from April to October. Annual rainfall of 900 mm is concentrated in the fall season (September – November). The property is covered with a heavy growth of trees and smaller bushes. With numerous valleys, the area contains many creeks and is part of a major drainage basin of the Jialingjiang River.

The Dadiangou gold project is an advanced exploration project located on a licensed area of 14.91 km2 in Gansu Province, China. The joint venture parties had identified a mineral resource on the property consisting of total 20.0 million tonnes of Indicated Resources at 0.87 grams per tonne for 544,910 ounces of contained gold and 16.6 million tonnes of Inferred Resources at 0.96 grams per tonne for 497,950 ounces of contained gold, all at a 0.4 gram per tonne cut-off.

The Dadiangou project is host to orogenic (mesothermal) gold mineralization that is currently defined over a 2,000 metre strike length with widths of up to 80 metres. Gold mineralization at Dadiangou has been defined by trenching and approximately 1,600 metres of underground workings.

The deposit type is shear-zone hosted, orogenic (mesothermal) gold, hosted by Lower Proterozoic and Lower Palaeozoic volcano-sedimentary schists. The Dadiangou shear zone is a second order shear, parallel to the major deep-crustal Yuanjiaping shear, part of the regional metalliferous Qinling Belt which represents the junction between the North and South China Cratons. Gold mineralization is strongly associated with pyrite and mechanically fractured quartz veins occurring within a strongly sericite altered shear zone.