FILE NO:.1 MIDAS CLAIM GROUP ASSESSMENT REPORT. By: Robert T. McDonald. For: Snowwater Resources Ltd. GEOLOGICAL BRANCH

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1 FILE NO:. MIDAS CLAIM GROUP ASSESSMENT REPORT By: Robert T. McDonald For: Snowwater Resources Ltd. GEOLOGICAL BRANCH ASSESSMENT REPORT

2 TABLE OF CONTENTS Page No. SUMMARY... INTRODUCTION... 2 LOCATION AND ACCESS... 2 REGIONAL GEOLOGY... 3 PROPERTY GEOLOGY... 3 GEOCHEMICAL SURVEY... 3 CONCLUSIONS AND RECOMMENDATIONS....4 STATEMENT OF COSTS... 5 STATEMENT OF QUALIFICATIONS... 6 AP P E N DlCl ES APPENDIX A ASSAY CERTl FICATES LIST OF FIGURES LOCATION MAP CLAIM MAP GEOLOGY MAP... Figure... Figure 2... Figure 3

3 SUMMARY Geochemical sampling of the Midas claim group has indicated some possible gold potential. The anomalous results should be followed up by further sampling and prospecting in order to further define exploration targets on the property.

4 2 INTRODUCTION A short geological and geochemical program was carried out on the Midas Claim Group from Sept 0 to Sept 5, 990. This group was originally staked to cover possible extensions of the Whitewater veins located on the adjacent Whitewater Group held by Snowwater Resources. LOCATION AND ACCESS The Midas claim group is located in the Nelson Mining District on NTS Map Sheet 82F/6W. The property is approximately 6km SW of Nelson and is accessed by the Rover Creek Logging Road. (Fig. ) The Claim Group lies along and immediately West of Midas Creek; a tributary of Snowwater Creek. Topography is moderate to steep due to alpine glaciation. Vegetation is often very dense in the older logged areas, but generally consists of mature hemlock, cedar, balsam and minor underbrush. Access to the Midas 7 Claim is hampered by very thick underbrush. Outcrop is very limited due to glacial till overburden. CLAIM STATUS Claim Name Record No. Expirv Date Units Midas Midas 2 Midas 3 Midas 4 Midas 5 Midas 6 Midas Dec. 6/90 Dec. 6/90 Dec. 5/90 Dec. 5/90 Dec. 5/90 Dec. 5/90 Dec. 8/90 20

5 .. c 2 IRITISH COLUMBIA LOCATION MAP Mimas momty

6 JOAN.II\IE L 3266 C7) 45X4E MT. C c. I W, SIWASH MTb

7 3 REGIONAL GEOLOGY Reference: Geology of the Nelson Map Area B.C. Energy Mines and Resources Open File 989 Sheet The Midas Claim group is predominantly underlain by the Jurassic age Bonnington Pluton. The pluton intrudes lower and middle Jurassic age pyroclastic and flow rocks of the Upper Elise formation. PROPERTY GEOLOGY [ref. Fia. 3) The best exposures of outcrop occur along the banks of the Midas and Snowwater Creeks along with roadcut exposure. The creeks follow down alpine glacial channels. Volcanic rocks which are proximal to the plutonic contact are often rusty and display signs of contact metamorphism. Exposures of the volcanic rocks along Snowwater Creek in Midas 5 Claim generally do not display any pyroclastic textures and are most likely flow basalt. The exception to this is found in the vicinity of Sample #9 near the southern boundary of the Midas 5 Claim, where an outcrop shows a tuffaceous texture. No major structural features were encountered during the course of the survey. GEOCHEMICAL SURVEY A. Moss Mat Samples Moss mat samples work well in this area to locate auriferous source rocks. They also can be used to identify changes in bedrock lithology as is shown in the MM samples taken from Midas Creek. Note that the background for Au in the granodiorite is <5 ppb, however, once the contact with the volcanics is crossed, MM yields a result of 5 ppb Au.

8 4 Samples taken near the confluence of Siwash and a southerly flowing unnamed creek are interesting. Unfortunately there is no outcrop in this area and it is possible that the elevated values are reflecting a change in lithology from Nelson intrusive to Ymir sediments. The Au value increases from 5 to 50 ppb going up Siwash Creek and further sampling should be done to establish the cause for the elevated values. Moss mat samples 4 to 9 show very elevated values. This is in part due to material eroding off of the Whitewater vein system which crosses Snowwater Creek upstream from the sampling location. Sample number 5, is extremely elevated (530 ppb Au) and may be indicating the presence of a nearby auriferous quartz vein. Samples 7 and 8 are also quite high (35 ppb Au) and the area should have some follow up prospecting and perhaps soils taken to determine the source of the anomaly. B. Soil Samples Only seven soil samples were taken, all on the Midas Number 7 Claim. Samples MS4, 5 and 6 all have elevated values and indicates some gold potential. Further sampling on an established grid would be necessary to determine the magnitude and extent of any anomaly in this area. CONCLUSIONS AND RECOMMENDATIONS Follow up work, on the anomalies indicated by the geochemical sampling, should be done. A cut grid in the Midas 7 area would provide better access for further soil sampling.

9 5 STATEMENT OF COS TS. WAGES R. McDonald Geologist day $,25.OO C. McDonald Geologist /day Subtotal $, $, ASSAYS (30 element I.C.P. + Au geochem) 2 Moss $26.00 each 7 $26.00 each $ FOOD AND ACCOMMODATIONS 8 $53.75/day 4. TRAVEL Truck Rental and Fuel 5. MISCELLANEOUS Freight and Shipping Drafting Typing and Office Subtotal $ TOTAL $ $ $ $ $ rn

10 6 STATEMENT OF QUALIFICATIONS I, ROBERT T. MCDONALD, certify that I am currently employed as a Geologist with TECK EXPLORATIONS LTD. with offices at # SO 75 Second Avenue, KAMLOOPS, B.C. That I graduated in 986 from the University of Alberta with a BSc. SpecGeol Degree. That I have worked continuously since 986 as a Geologist. That I am a Member of the Association of Professional Engineers, Geologist and Geophysicists of Alberta and have the standing of Professional Geologist. That the work described herein was done under my direct supervision.

11 APPENDIX A Assay Certificates

12 . Chemex Labs Ltd. AIIZII UWTWS * IS Mterd ~ssayers 22 Brooksbrnk AVe.. North V ~ U W. Brilish Chlumbii. Canada V7J X. PHONE: 6044W I 20 I I PUP CODB < Jl < ' < _....~. 2 2 i 5 i 5 )O.OO I 2 7 TO: TECK u(ploranon LTD. 980 I75 2ND AVE. KAMLOOPS, Bc V2C 5W Prom: 378 Comls: ATTN:F. DALEY L I CERTIFICATE OF ANALYSIS A ~..... ~... P;I!JO NUTI~XN : A Tot P;M#M : liivoico D;ilb: 5JULQC lnvoico No. : QOlooO P.O. Nurrbor :...~.~. ~ Au ppb fusion Ag Al As Ba Be Bi Ca Cd Co Cr Cu Fe Ga Eg K U W FAtAA ut. gm ppa a w. PPm P. PPm a P P PPI Ppn PPm 'L PPU P. 2 PPU a < 0.5 ' 2 6 c ( 5 LOO d 0.5 < 2 08 ' ( a < 5 90 < 0.5 ' ' ' 2 0.9b.. ' ' a U.2.57 a r _ Ti. ~ 95 I ( IO ( I J7 a IO I 0.2 $ a IO I 0.6 )O b 9 t.b7 ' IO ( I It 0.95 ' LO ( I _. 42 I5 l.2b IO I a.) ' IO ' I 0.2)

13 ~ Chemex Labs Ltd. Artllrhl chcrrlvls * Gcahyrbls. Ry@crd Awycfs 22 Brookstmk Avo.. Norlh Vana)uww Bnlish cdm. C3mda V7J 2C PHONE: 8048&4022 I To: TECK EXPLORATION LTD ND AVE. KAMLOOPS. Bc V2C 5W I Profit. 370 Comments: ATTN.F. DALEY i. P;I(JO Numb : 6 Tobil Eylos : I Invoko D:rIo: I5JUL00 Invoko No. : C8otOOO A P.O. Numlnw : ~ _.. _. WLll DBSCEIPTIQI PEEP CODB LO I 2 : 20 I 20 20? LO I tl i Ihl t40 Ea Iii P Pb Sb Sc Sr Ti T [I V w zu PPI PP 2 Pp. PPm P. Ppn P' Pp. 2 PP PP PP PPm Pp ) I a J < ' 5 54 i 5 76 d 5. 2b I 5 54 ( I I 85 ' c 0 I IO 0 IO i IO IO iin 0.05 IO 20 \A IO I c IO IO 22 ' < IO IO io IO ( 0 ' 0 27 ' IO 04. CERTl FlC AT 04:

14 i i CERTIFICATE OF ANALYSIS A c O.Q L I. e.2 _..._ IO O.lb Id W < 0. IO 4 I 8.04 ' 0 ' I IO 2 0. k0 8 I 0. 0 _... t I ,Ob LO s 0.0 LIS 0.2 2% 0.72 JIS 0.9 )ID _ JO

15 ( TL TECK O(PL0RATION LTO. 90() 752NI?AVE. KAMLQOPS. Bc v2c 5w I Proid. 370 Commonls: ATTN: FWO OALEV i I '0 I '0 I '0 I!*I!a.!O I bl i I

16 0.2 \ * I: Pi cc 20 MI a._ HI 'io < Ll.5 28 I < ~ < 5 a dh < 0 < % # 8.2 L.29 < < I LO < IO U < 05 < S < _ ~ e _ < L.5 9 %I 2 4.n7 4 0 < a:b,sisj a < IO < i IO IO LO t.4b < 5 LOO < I 27 2.\.bZ IO < 0.L

17 I i W L R DBSCBIPTIOii i I f I j!! i I i I O.DI 7 LJW 2 c < I I o m c IO c IO 4s < IO Q S < LO < Y.02 I7 0 IC < 0 C IO.. 0.0) 7 60 I lo IO I2 ' lo k3%0 I8 ' < LO 96 < LO I no 0.4 f io 4 LO III 4 IO 0.ot < 0 ' 0 IO0 ' IO LO < 0 89 ' I % 8%. I! I

18

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