Canadian-based Dynasty exploration program at its Red Valley property in Qinghai Province began in May. Soil and stream sediment sampling is being undertaken, with geophysical surveys and drilling conducted last month.

The US$1.1 million exploration budget for the Red Valley project is being funded by the proceeds of a private placement with AngloGold Ashanti .

The program will include up to 5000 metres of diamond drilling, surface sampling, and both magnetic and IP geophysical surveys. A portion of the drilling will be done using the standard drill rig, which was brought to the site in October 2005 and left on location over the winter. The remainder of the drilling will be completed using Kluane man-portable drill rigs. These rigs have good core recovery, fast throughput and are ideal for accessing areas of the Red Valley property not yet reached by road.

Meanwhile at Dynasty's Wild Horse prospect, the company, in conjunction with AngloGold Ashanti 's China based exploration team, Dynasty has designed an approximate US$600,000 exploration program for the 2000sqkm Wild Horse property.

The budget includes 100km of ground magnetic geophysical surveys, 1000 cubic metres of trenching and 7500 soil and rock samples. A small team is currently establishing the camp at the Wild Horse property and will complete an initial program of reconnaissance work and sampling on the 20km Heicigou trend in the next two months.