BOUNDARY PROJECT     Midway

The Midway Property, 100% owned by Merit Mining, subject to a 3% net smelter return royalty, is located 12 kilometres east of Rock Creek, BC. The property is comprised of 12 mineral claims (1,735) hectares.

The property has previously been explored as a copper-gold skarn target, similar to the former producing Phoenix Mine at nearby Greenwood, BC. The property has numerous ultramafic exposures and extensive gold/nickel/chrome soil geochemical anomalies, that are supported by underlying magnetics anomalies, suggesting the presence of buried ultramafics. In 2001 Gold City conducted a Phase I reconnaissance program of mapping and sampling of old workings and known areas of mineralization on the property.

In its 2003 field program, Gold City completed an excavator trenching program to test for epithermal gold mineralization in the Lone Boulder Hill and Picture Rock Quarry areas of the Midway property. A steeply dipping, northerly trending, siliceous breccia zone within listwanite was exposed in Trench 03-1, which returned values to 1138 ppb Au over the 2 metre true width. A generally east-west trending, gently north dipping breccia vein was discovered east of the Picture Rock Quarry, in Trench 03-8. The vein returned an average of 432 ppb Au across 1.8 metres true width, with values to 1195 ppb Au and 983 ppb Ag.

In April of 2004, Gold City conducted a geochemical soil survey over four areas of the Midway property. These surveys located three gold/multi-element anomalies, one in the Lone Boulder Hill area where the gold and base metal anomaly is associated with northeast trending chalcedonic quartz zone. A second anomaly extends northeast from the Picture Rock Quarry area. In the west, two linear multi-element anomalies are sub-parallel to Ingram Creek with the stronger one open-ended in both directions. Further work is warranted in all these areas and follow-up trenching programs are being planned.