NiMo Project, Yukon Territory, Canada

Southampton’s NiMo Project is a medium stage exploration play focused on the Devonian Shale Hosted Nickel-Molybdenum-Zinc-PGE (NiMo) deposits in the Yukon Territory, Canada.

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Property Ownership
Southampton has an option to earn 75% of Strategic Metals Ltd. (SMD – TSXV) 100% interest in the NiMo Project by spending $6 million in exploration by December 31, 2007, in addition to certain share payments and cash reimbursements previously made to Strategic.

Southampton can earn the additional 25%, for an aggregate 100% ownership of the NiMo Project subject to a 1% net smelter royalty (NSR) in favour of Strategic, by issuing to Strategic an additional 2,000,000 common shares and 1,000,000 common share purchase warrants, at any time before December 31, 2008.

Geology

Property
The NiMo Project consists of seven claim blocks totaling 28,905 hectares in north-central Yukon Territory. The properties were recently staked to cover occurrences of Middle Devonian-aged stratiform sedimentary exhalative (sedex) massive sulphide deposits that are enriched in an unusual suite of elements that can include nickel, molybdenum, vanadium, zinc, platinum and palladium.

The Project is divided into 7 properties

• The Nick property hosts the original North American discovery of this type of mineralization. Exploration from 1988 to 1992 outlined a bedded deposit around the entire extent of an 80 square kilometer sedimentary basin. Results of 13 diamond drill holes that intersected the sulphide horizon at one end of the basin returned average assays of 3.01% nickel (Ni), 0.20% molybdenum (Mo), 0.82% vanadium (V), 0.82% zinc (Zn), 310 parts per billion (ppb) platinum (Pt) and 150 ppb palladium (Pd) over widths ranging from 2 cm to 10 cm. Exploration by a major mining company identified other areas on the property where significantly thicker accumulations of mineralization were indicated but no follow-up work was ever carried out.
  
• A 1997 drill hole on the Deer property intersected 25.5 metres of 0.51% Ni and 0.39% Zn, including a 5.3 metre intersection grading 1.37% Ni and 0.70% Zn.
  
• The Pe and El claims cover two nearby occurrences sampled in 1994 by the Geological Survey of Canada (GSC) but never explored. A 25 cm chip sample across the Pe occurrence assayed 3.96% Ni, 0.27% Mo and 0.81% Zn. A grab sample of a 4 cm massive sulphide horizon on the El claims assayed 3.70% Ni, 0.20% Mo, 210 ppb Pt and 184 ppb Pd. 
  
• The Rich property covers scattered NiMo occurrences reported by the GSC and the Yukon Geological Survey about 80 km along strike of the Pe and El showings. A grab sample of one of these occurrences assayed 4.68% Ni, 0.20% Mo, 290 ppb Pt and 192 ppb Pd. 
  
• The Fox claims were staked to cover strong multi-element stream sediment anomalies from drainages underlain by the host Devonian shales a further 60 km north of the Fox property. 
  
• A sample of NiMo mineralization taken by the GSC in 1994 from the Mon showing assayed 3.30% Ni.