2005 has been a very active, and very successful, year for your company. On October 3rd our sixth diamond drill hole on the McFauld's Lake property intersected almost eight meters of high-grade copper mineralization averaging 3.1% copper, an enviable discovery hole of which the Company is extremely proud. The discovery represents the potential for even greater successes, as the zone is part of a much larger volcanogenic massive sulphide ("VMS") camp that has attracted considerable interest over the past three years. To date we have only scratched the surface and as a result we are intensifying and expanding our exploration efforts. We expect to add to these results in 2006, and are currently undertaking ground geophysical surveys in preparation for an aggressive drill campaign in the New Year.
A few kilometers from McFauld's Lake, Probe has acquired the Victory project, which represents a major land position in a related, but previously unexplored, volcanic belt. Initial exploration has resulted in numerous indications of a base metal enriched system, with the potential for VMS mineralization comparable to that discovered to date at McFauld's Lake. Recent diamond drilling has tested less than one third of the known geophysical targets, and much remains to be explored.
Probe was pleased to announce the signing of a joint venture ("JV") agreement with Sydney Resource Corporation ("Sydney") in November of 2005 on our 100%-owned Bristol Township project. Sydney Resource is an aggressive company and has made a commitment to spend $2,000,000 on the property during the next three years. The JV comes at an opportune time as we focus on our new copper discovery at McFauld's Lake. The new Timmins West Camp is becoming increasingly active as Lakeshore Gold Corp. continues to add to its Holmer gold deposit, situated less than half a kilometer east of Probe's gold project.
In August, Agnico-Eagle Mines Limited announced its intentions to develop the Goldex property in Val d'Or, with production expected by 2008. Our 5% NSR on a portion of the property has taken a step closer to becoming a potential revenue stream, and we will continue to monitor progress at Goldex.
Probe appointed Dr. Fiona Childe as Manager of Corporate Communications in December. As a result of our continued growth, it is imperative that we develop a corporate strategy that will ensure communication with investors to take full advantage of our results in the marketplace. Fiona has had considerable experience in the corporate arena, and combined with her strong technical background in gold and base metal exploration, will provide an invaluable asset to Probe.
Although our present focus is the McFauld's Lake discovery, we are actively pursuing new opportunities that will continue our growth in the industry as an explorer of base and precious metals in Canada. The next year will be pivotal for Probe, as we define the limits of our new copper discovery and test other high-priority targets. We appreciate the trust our investors have put in management's abilities and will strive maintain the momentum developed over the past two years. On behalf of the Board of Directors, I would like to thank you for your support as we look forward to the year ahead.
David Palmer, Ph.D., P.Geo.
President & CEO
Probe Mines Limited