HDN MINERAL PRO iperty

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1 HDN MINERAL PRO iperty ROCK SAMPLE GEOCHEMISTRY ASSESSMENT REPORT 2010 OMINECA MINING DIVISION, BRITISH COLUMBIA 93L047 LATITUDE: 54 29' 16.9" N LONGITUDE: ' 39.8" W GPS: NAD 83 UTM ZONE 9 NORTHING: EASTING: OWNERS: WILLIAM RAY MERKLEY & DANIEL MORICE ME REPORT BY DANIEL MERKLEY AUGUST 2010

2 db ^BRITISH w COLUMBIA Ministry of Energy & Mines Energy & Minerals Division Geological Survey Branch ASSESSMENT REPORT TITLE PAGE AND SUMMARY TITLE OF REPORT {type of survey(s)] TOTAL COST HDN MLNERAL PROPERTY ROCK SAMPLE GEOCHEMISTRY $ AUTHOR(S) DANIEL MERKLEY SIGNATURES fqo*ljiju^ NOTICE OF WORK PERMIT NUMBER(S)/DATE(S) ElA YEAR OF WORK, STATEMENT OF WORK - CASH PAYMENT EVENT NUMBER(S)/0ATE(S1 EVENT NUMBER: PROPERTY NAME HDN CLAIM NAME(S) (on which work was done) HDN COMMODITIES SOUGHT Zn, Pb, Cu, Ag, Au MINERAL INVENTORY MINFILE NUMBER(S), IF KNOWN MINING DIVISION OMINECA NTS 093L047 LATITUDE ' 2 2 w LONGITUDE ' 0 3 (at centre of work) OWNER(S) 1) DANIEL MERKLEY 2) MAILING ADDRESS 3313 HWY 16 E HOUSTON, B. C., VOJ 1Z2 OPERATOR(S) [who paid for the work] 4\ SAME AS OBOVE MAILING ADDRESS PROPERTY GEOLOGY KEYWORDS (lithology, age, stratigraphy, structure, alteration, mineralization, size and attitude): JURASSIC AGE, HAZELTON GROUP, TELKWA FORMATION, RHYOLITE, ANDESITE, BASALT, SILICIFICATION, HEMATIZATION, CHLORITIZATION, QUARTZ FELDSPAR PORPHYRY, MONZODIORITE, JURASSIC AGE, HAZELTON GROUP, NILKITWA FORMATION, PEBBLE CONGLOMERATE, VOLCANIC SANDSTONE, REFERENCES TO PREVIOUS ASSESSMENT WORK AND ASSESSMENT REPORT NUMBERS ASSESSMENT REPORT: 15380A, 15380B, 22718, 29430, (OVER)

3 TYPE OP WORK IN THIS REPORT EXTENT OF WORK (IN METRIC UNITS) ON WHICH CLAIMS PROJECT COSTS APPORTIONED (incl. support) GEOLOGICAL (scale, area) Ground, mappina Photo Interpretation GEOPHYSICAL (line-kilometres) Ground Magnetic Electromagnetic Induced Polarization Radiometric Seismic Other Airborne GEOCHEMICAL (number of samples analysed for...) Soil Silt R o c k 7 GRAB SAMPLES - ICP-AES ANALYSIS HDN $ Other DRILLING (total metres; number of holes, size) Core Non-core RELATED TECHNICAL Sampling/assaying Petroaraphic Mineralographic Metalluraic PROSPECTING (scale. area) PREPARATORY/PHYSICAL Line/qrid (kilometres) Topographic/Photogrammetric (scale, area) Legal surveys (scale, area) Road, local access (kiiometres)/trail Trench (metres) Underground dev. (metres) Other TOTAL COST $

4 INDEX Location and Access pg 3 Mineral Claim History pg 3 4 Purpose & Procedure pg 5 Conclusion pg 5 Claim Status pg9 Statement of Expenditures pg 10 Author's Qualifications pg 11 MAPS HDN Location Map pg 1 HDN Claim Map pg 2 Sample Site Location Map pg 6 TABLES Rock Sample Descriptions pg 7 Multi-Element ICP-AES ivnalysis Pg_8

5 HDN Location Map K HDN Location Topographic Layers Lakes 1:6H Rivers 1:6M BC Border Layers BC Border 1:6M "ft HDN SCALE 1:11,847,051 so KILOMETERS r

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7 LOCATION AND ACCESS: The 12 cells which comprise the HDN mineral claim are located 8.3 km north of the village of Houston, in west-central British Columbia. A small lake locally known as Summit Lake is situated immediately south of the southern border of the claim block. Access to the HDN claim is via highway 16, west from Houston, British Columbia, for approximately 13.2 km. A right turn will take the driver onto Summit Lake Road. Traveling for 4.5 km in an easterly direction, the driver will arrive at a juncture in the road; driving for 1.5 km on the southern spur road will take the driver to the westerly border of the HDN claim. The total distance from the village of Houston is approximately 20 km. A forest access road provides an alternate route to the claim from the north-east. This road departs from the "North Road" a road which joins the Babine Lake area to the Houston sawmills and joins the Summit Lake Road from the north. The owners of the HDN claim have always traveled to the claim from the west, off highway 16, and are unable to include the condition of this alternate route for this report. MINERAL CLAIM HISTORY: 1984 GOLDEN DRAGON RESOURCES LTD. performed a geochemical program over the ground presently overlain by the HDN mineral claim. The report was titled "Reconnaissance Geochemical Report of the Sandra Mineral Claim", assessment report number: During the program 146 samples were collected and analyzed for copper, silver, lead, zinc and arsenic OREQUEST CONSULTANTS LTD. performed airborne geophysical surveys over the area presently covered by the HDN mineral claim while the owner/operator was CK & G MANAGEMENT. The report is titled "Report on the airborne geophysical survey on the Roberta, Daniella, Sandra & May mineral claims", assessment report number: 15380A; and "Report on the airborne geophysical survey on the Gabriella mineral claim and adjacent area", assessment report number: 15380B DANIEL MERKLEY & WILLIAM MERKLEY carried out a soil geochemical survey titled: "Assessment Report for the 1991 Soil Geochemistry of

8 the Stardust Mineral Claims", in assessment report number: 22718, which covered a portion of the ground overlain by the HDN mineral claim. The samples were delivered to the EQUITY SILVER MINES LTD. office in Houston, B. C. and Equity Silver Mines Ltd. summitted the samples to the Min-En lab in Vancouver, B. C. 35 soil samples were analyzed by for 31 elements in the exploration program DANIEL MERKLEY & WILLIAM MERKLEY completed a prospecting program over a portion of the ground presently held by the HDN mineral claim. The report is titled: "Prospecting Report for the HDN Mineral Claim", assessment report number: DANIEL MERKLEY & WILLIAM MERKLEY completed a prospecting program over a portion of the ground presently overlain by the HDN mineral claim. The report is titled: "Prospecting Report for the HDN Mineral Claim", assessment report number: DANIEL MERKLEY & WILLIAM MERKLEY completed a prospecting program, which covered a portion of the ground presently overlain by the HDN mineral claim. The report is titled "Prospecting Report for the HDN Mineral Claim", assessment report number:

9 PURPOSE & PROCEDURE: Two men spent one day collecting rock samples from the periphery of a quartz feldspar intrusive, which outcrops near the center of the HDN group of claims. Samples were representative of rock exposures encountered during the sample program. Sampling was directed at the discovery of trace pathfinder elements for epithermal, or mesothermal mineralization, which may be related to the intrusion, which appears central to the claims. CONCLUSION: None of the analysis results for the collected samples showed anomalous metal content except for sample HDN-10-1, which showed an anomalous mercury level of 1 ppm. Future exploration programs could be directed toward the collection of rock samples in the vicinity of sample HDN-10-1, to determine if the anomaly is significant, or if the result is singular and not representative of the area. It is possible that this anomalous analysis is related to chloritic alteration, which is ubiquitous in the area of the rock sample program. The propylitic alteration may be related to distal, or subsurface mineralization. A more detailed, extensive rock sample program could possibly lead to the cause of the widespread alteration and anomalous mercury in sample HDN-10-1; sampling at greater density may also detect mineralized veins, or confined surface expressions of subsurface mineralization on the HDN claim.

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11 ROCK SAMPLE DESCRIPTIONS DESIGNATION LOCATION NORTHING EASTING DESCRIPTION (1) HDN Originally bone-white felsite altered to green/greenish-yellow colour by pervasive chlorite. Nebulous inclusions of black, ironrich chlorite. Minor carbonate. (2) HDN Hard dark gray-to-black matrix with quartz phenocrysts. Minor black crystals (hornblend/biotite?). Minor mauve/reddish clasts <0.3 mm. Quartz feldspar porphyry (Possibly crystal lithic Tuff?). (3) HDN Gray felsite matrix with quartz phenocrysts. Clotted and disseminated epidote. Quartz feldspar porphyry (Possibly crystal lithic tuff?). (4) HDN Dull gray to black matrix with crowded quartz phenocrysts. Quartz feldspar porphyry (Possibly crystal lithic tuff?). (5) HDN Light gray felsite flow. Nebulous mauve hematitic alteration. Randomly oriented dark chlorite stringers. Mauve, white and brownish clasts <0.5 mm. (6) HDN Light gray felsite flow. Sparse hematite ("hematite paint") on fracture surfaces. Minor quartz veins on outcrop. Minor sericite. (7) HDN Green-to-canary-yellow pyroclastic flow with ubiquitous disseminated and clotted epidote. Minor red-brown felsic clasts and quartz eyes (indicative of silicification?). 7

12 C A N A D A Dan Merkley Project : HDN Attention : Dan Merkley Assayers Canada 8282 Sherbrooke St., Vancouver, B.C., V5X 4R6 Tel: (604) Fax: (604) Multi-Element ICP-AES Analysis Aqua Regia Digestion oo Report No : OSO^IRJ Date : Jul Sample type : ROCK Sample Ag Al As Ba Be Bi Ca Cd Co Cr Cu Fe Hg K La Mg Mn Mo Na Ni P Pb s Sb Sc Sr Th Ti TI u V W Zn Zr Number ppm % ppm ppm ppm ppm % ppm ppm ppm ppm % ppm % ppm % ppm ppm % ppm % ppm % ppm ppm ppm ppm % ppm ppm ppm ppm ppm ppm HDN-10-1 < < <i 17 in i < < <10 < < HDN-10-2 < < <i < < <10 < < HDN-10-3 < <0.5 < < <i < < <10 <10 71 < HDN-10-4 < <0.5 < <i < < <10 < < HDN-10-5 < < < <i 0.29 < < < < <lp <10 13 < HDN-10-6 < < < <i < <10 <10 8 < HDN-10-7 < <0.5 < < <i 0.30 < < < < <S 2 25 < <10 <10 7 < Duplicates: HDN-10-1 < < < <i < < <10 < < Standards: Blank <0.2 <0.01 <5 <10 <0.5 <5 <0.01 <1 <1 <1 <1 <0.01 <i <0.01 <10 <0.01 <5 <2 <0.01 <1 <0.001 <2 <0.01 <5 <1 <1 <5 <0.01 <10 <10 <1 <10 <1 <1 CH <0.5 < <i < <10 83 < A.5 gm sample is digested with 5 ml 3:1 HCI/HN03 at 95 C for 2 hours and diluted to 25ml. c Signed:

13 CLAIM STATUS: The HDN mineral claim consists of 3 separate tenures: tenure number , and Tenure number , the most southerly tenure, consists of 3 cells (IN X 3W). Tenure number consists of 3 cells located to the northwest of tenure and oriented 3N X1W. The third tenure, tenure number , is located to the northeast of tenure number and it is oriented 3N X2W. The tenure details are as follows: CLAIM NAME CELLS TENURE NUMBER OLD EXPIRY DATE NEW EXPIRY DATE HDN 1NX3W /SEP/ /AUG/15 HDN 3NX2W /JUN/ /AUG/15 HDN 3NX1W /SEP/ /AUG/15 9

14 STATEMENT OF EXPENDITURES SAMPLE ANALYSIS & HANDLING $ VEHICLE $50.00 LABOUR (2 MEN X 1 DAY) $ REPORT PREPARATION $ PROVISIONS $36.00 TOTAL $1,036.00

15 AUTHOR'S QUALIFICATIONS I, Daniel Merkley, do hereby certify that: I am a prospector and reside at 3313 Hwy 16 East, Houston, B. C. (2) I have more than 40 years of prospecting experience (3) I prepared this report Respectfully submitted Daniel Merkley Prospector

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