GEOPHYSICAL SURVEY ON THE BADGER PROJECT

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1 GEOPHYSICAL SURVEY ON THE BADGER PROJECT SIMILKAMEEN MINING DIVISION BRITISH COLUMBIA NTS 092H 10 UTM Zone 10, NAD ,500mE / 5,489,800mN Prepared for: DGW Consultants # Alberni Street, Vancouver, British Columbia, V6E 4V2 BY James Thom, M.Sc. January 10, 2012 DGW Consultants Badger Assessment Report Page 1

2 Contents 1.0 SUMMARY INTRODUCTION Property Description and Location Access, Climate, Local Resources and Physiography HISTORY Exploration History Exploration carried out by Florence Hedin (ARIS: & 10802) Exploration carried out by Newmont Exploration (ARIS: 15803) Exploration carried out by BEST ROCKS MINERAL SERVICES (ARIS: 29365) Minfile Showings Covered by the Property GEOLOGY Regional Geology EXPLORATION PROGRAM Mag Geophysical Survey CONCLUSIONS Statement of Qualifications STATEMENT OF COSTS DGW Consultants Badger Assessment Report Page 2

3 LIST OF FIGURES FIGURE 1: Regional Location Map FIGURE 2: Regional Geology Map FIGURE 3: Mineral Tenure Map FIGURE 4: 3D Satellite Image FIGURE 5: Total Field Magnetics A1 A1 A1 A1 A1 APPENDIX 1. Figures APPENDIX 2. Mag Geophysical Results DGW Consultants Badger Assessment Report Page 3

4 1.0 SUMMARY This report describes a program of exploration undertaken during November 2012 on the Badger Property, 100% owned by DGW Consultants and operated by DGW Consultants. The property is currently being held in-trust by Dorian Leslie. The Badger property is located in the Cascade Mountains of southwestern British Columbia approximately 31km west of the town Princeton. This section of the Cascade Mountains is underlain mainly by the Quenellia Terrane, Eagle Plutonic Complex and the Tulameen Ultramafic Complex. The area covered by the Badger property is underlain by the Mount Lytton Complex and the Tulameen Ultramafic Complex. The main deposit type recognized in the Tulameen Ultramafic Complex is the Alaskan-type Pt +/-Os +/-Rh +/-Ir. The British Columbia Ministry of Energy and Mines has identified 19 Minfile occurrences found within the Tulameen Ultramafic Complex. The Badger property consists of two claims, which envelops the Minfile occurrence BADGER (Minfile no. 092HNE210). This minfile occurrence is classified as an Alaskan-type Pt +/-Os +/-Rh +/-Ir. The property is of interest as a host to Pt +/-Os +/-Rh +/-Ir mineralization. The Badger property has a history of exploration going back to From 1980 to 1982, Florence Hedin was the owner of the area now covered by the Badger property and carried out 700m of trenching and 125m of drilling. No assays were reported from the trenching and only two samples were analyzed from the drilling program. In 1986, Newmont Exploration of Canada carried out a magnetic survey over the Badger property. In 2007, Best Rock Mineral Services carried out a stream sediment and prospecting over the Badger property. Fifteen stream sediment samples and two rock samples were collected. No further work was carried out on the ground now covered by the Badger property until the property was acquired by DGW Consultants. In November 2012 DGW Consultants completed a detailed geophysical survey program on the Badger property. The mandate of the program was to carry out a total magnetic field survey over the BADGER minfile occurrence in order to aid in the geological interpretation of this area. The geophysical survey was successful in collecting line km s covering an area of ~0.16km 2 in the BADGER minfile area. DGW Consultants Badger Assessment Report Page 4

5 2.0 INTRODUCTION This report has been written in order to satisfy assessment requirements for SOW: This report describes the geology, a brief work history and the geophysical survey carried out during November, 2012 on the Badger claim group, 100% owned and operated by DGW Consultants. The Badger claim group is currently being held in trust by Dorian Leslie. The 2012 geophysical survey was carried out by the author and an assistant. All UTM locations given are from the NAD83 ZONE10 projection. 2.1 Property Description and Location The Badger Property is located in the Similkameen Mining Division, in the Yale-Lilooet Electoral District, of south-central British Columbia, Canada. The Badger property is located in the Cascade Mountains of southwestern British Columbia approximately 31km west of the town Princeton. The area where work took place is centered roughly at 650,500mE / 5,489,800mN. The Badger property is situated on N.T.S. map sheet 092H (1:250,000), 092H/10 (1:50,000) and 092H/056 (1:20,000). The Badger property consists of one claim group. The claim group consists of two (2) contiguous claims covering approximately hectares. The Badger Property is 100% owned DGW Consultants and is currently being held in-trust by Dorian Leslie. Figures 1, 3, and 4 illustrate the project location and infrastructure. 2.2 Access, Climate, Local Resources and Physiography Access to the central portion of Badger group of claims is available from the east beginning in the town of Tulameen, north of Princeton on 24 km of paved road, and traveling 23 km along the well maintained, active (and often busy) Lawless Creek and Britton Creek Forest Service Roads (FSR) connecting to the main access intersection 4 km northwest of Murphy Lakes. Road access is also available from the north via the Coquihalla Highway from the Coquihalla Lakes turnoff, and heading south along a wide, main-haul logging road to the intersection near Murphy Lakes. Vegetation consists of dense stands of mixed lodgepole pine, fir, balsam and spruce trees where the slope is not too steep. Grasses, wildflowers, blackberries, and small shrubs inhabit areas either steep or recently disturbed by logging activity. The northern pine beetle has devastated a large area to the northeast of the claims, and pine beetle damage is evident throughout the claim area, although to a limited extent. Active and old logging blocks are clearly visible, and the Badger showing area has been logged and reforested approximately 20 years ago. The climate is moderate to arid in the summer months; the usual hot, dry climate typical of the region is mitigated somewhat by the elevation. The majority of the precipitation in the area falls as snow in the winter months, especially at the higher elevations. The snow-free season is generally from May to October, but can be shortened considerably at the upper elevations in some years. The claims are situated between 900 m and 1400 m elevation. Within the claim area the soil is generally poorly developed and largely composed of glacial till, except where steep slopes have allowed erosion to remove the overburden. The higher elevation DGW Consultants Badger Assessment Report Page 5

6 areas have a thin veneer of mixed locally derived weathered rock fragments and glacial till. The till increases rapidly in thickness down slope, except in the immediate vicinity of steep-walled, bedrock-cutting, year-round active drainages. Talus slopes are locally developed near exposed outcrops, and road cuts have removed the overburden in many places, exposing the local bedrock. Table 1. Badger Claim Group OWNER CLAIM NAME TENURE # Good to date SIZE (Ha) Dorian Leslie /nov/22* Dorian Leslie /nov/22* *Good to date is based on the acceptance of this report associated with SOW: DGW Consultants Badger Assessment Report Page 6

7 3.0 HISTORY Where no specific reference is listed, information has been taken from the British Columbia Minister of Mines Annual reports, from the BC Geological Survey Branch Mineral Inventory File (MINFILE) and Ministry of Mines. 3.1 Exploration History The Badger property has a history of exploration going back to From 1980 to 1982, Florence Hedin was the owner of the area now covered by the Badger property and carried out 700m of trenching and 125m of drilling. In 1986, Newmont Exploration of Canada carried out a magnetic survey over the Badger property. In 2007, Best Rock Mineral Services carried out a stream sediment and prospecting over the Badger property. Fifteen stream sediment samples and two rock samples were collected. No further work was carried out on the ground now covered by the Badger property until the property was acquired by DGW Consultants Exploration carried out by Florence Hedin (ARIS: & 10802) From 1980 through to 1982, Florence Hedin, conducted prospecting, trenching and diamond drilling. Copper from 1 to 1.5 % and up to 2.4 g/t gold was reported in samples from areas trenched in a coarse pyroxenite phase of the TUC. Approximately 700 m of trenching were performed. No assays from this program are recorded. Diamond drilling, consisting of two holes totalling 125 m were drilled at the northern contact of the TUC with metavolcanic rocks on the Badger claim. Minor chalcopyrite with magnetite was encountered in a breccia within the metavolcanic rocks over 5.8 m section in DDH Hm Only gold, copper, and iron were analysed; only iron was significantly enriched. A 21 m ultramafic section was intercepted in the bottom of DDH Hm 88-2, but was not analysed Exploration carried out by Newmont Exploration (ARIS: 15803) In 1986, Newmont Exploration of Canada carried out a magnetic survey totalling 9.2 km. The survey grid was conducted on 100m spaced lines at 25m intervals.. A magnetic survey was carried out on this grid Exploration carried out by BEST ROCKS MINERAL SERVICES (ARIS: 29365) In 2007, Best Rock Mineral Services carried out a stream sediment and prospecting over the Badger property. Fifteen stream sediment samples and two rock samples were collected. No significantly anomalous base metals results were received in either the rock or the stream analyses. DGW Consultants Badger Assessment Report Page 7

8 3.3 Minfile Showings Covered by the Property There is one MINFILE report describing one showing on the Badger Property. The MINFILE name for this historic workings is; BADGER. A description of these workings is listed in Table 2 and described below. Table 2. Property Minfile Details MINFILE MINFILE Name(s) Number Status Commodities Most Recent Sampling Highlights BADGER 092HNE210 Showing Cu, Au, PGE 2.4ppm Au & 1.5% Cu-inrock (ARIS: 9381) BADGER This copper showing outcrops on the west side of Grasshopper Mountain, 970 metres northeast of the confluence of Illal and Britton creeks and 11.5 kilometres due west of the town of Tulameen. The occurrence is hosted in hornblende clinopyroxenite of the Early Jurassic Tulameen Ultramafic Complex, a zoned Alaskan-type intrusive complex. The showing is 100 metres east of the contact with metasediments and metavolcanics of the Upper Triassic Nicola Group. A 210-metre wide band of coarse pyroxenite contains disseminated blebs of chalcopyrite and pyrite. Selected grab samples assayed between 1 and 1.5 per cent copper and trace to 2.4 grams per tonne gold (Assessment Report 9381, page 2). DGW Consultants Badger Assessment Report Page 8

9 4.0 GEOLOGY 4.1 Regional Geology The Badger claim is underlain by three principal rock types: the Nicola Group metavolcanics and metasediments of Triassic Age, the Tulameen Ultramafic Complex of late Triassic Age (Findlay, 1969), and the Coast Intrusion Eagle Granodiorite of Jurassic to Cretaceous Age. The geophysical work was conducted over the Tulameen Ultramafic Complex only, and this unit is described in the following paragraphs. The Tulameen Intrusion, measuring approximately 6 x 17 km, is a zoned ultramafic - gabbro complex, a small portion of which occupies the south eastern quarter of the Badger claim. The complex displays a crudely developed concentric zoning of several lithologies, which generally follows a pattern of dunite in the core, with successive shells of minor peridotite, olivine clinopyroxenite, hornblende and/or magnetite clinopyroxenite with felsic rocks on the margin (St. Louis, 1986). Some mixed gabbroic rocks and hornblende pyroxenite/hornblendite occur locally on the Badger claim. The contacts between the ultramafic units are poorly exposed on the property. Chromite in the Tulameen Complex is Fe rich and generally occurs as disseminated grains in dunite and to a lesser extent with in olivine clinopyroxenite, constituting less than 20 volume percent of both rock types (St. Louis, 1986). Platinum occurrences are associated with chromite. The chromite lenses and pods show no preferred attitudes and no systematic distribution with in the dunite (Findlay, 1963). Magnetite is present in all rock units of the Tulameen Ultramafic Gabbro Complex, although the pyroxenite lithologies peripheral to the dunite are known to contain the highest magnetite concentrations. DGW Consultants Badger Assessment Report Page 9

10 EXPLORATION PROGRAM In November 2012 DGW Consultants completed a detailed geophysical survey program on the Badger property. The mandate of the program was to carry out a total magnetic field survey over the BADGER minfile occurrence in order to aid in the geological interpretation of this area. 5.2 Mag Geophysical Survey Grid Information The Badger geophysical survey consisted of one grid given the name Badger. The Badger grid consisted of 3 east-west lines (Figure 5). Line and station labels for the grid were based on UTM positions of the stations. The lines were spaced at 50m and were between 700 and 900 m long. Stations were spaced at 10m and lines were tied together along roads. Station location in the field was determined by going to a waypoint using a Garmin 62CSX GPS. Waypoints for each survey station were preloaded into the GPS and accuracy ranged from +/-3 to +/-10m. Survey Parameters and Instrumentation The magnetic survey utilized a stationary base unit to record the magnetic field to allow for the removal of the diurnal variation in the measured data. The base station recorded data at 3 second intervals. The mobile units recorded the total magnetic field every 10m along the grid line traverses. Calibration measurements were taken by the mobile units at the start and end of each day to account for level shifts between the different instruments and to get a sense of the error in the data. The physical location of the base station and the calibration stations for the Badger grid are E/ N and E/ N, respectively. Geophysical Techniques Magnetic Survey Method Magnetic intensity measurements are taken along survey traverses and are used to identify metallic mineralization related to magnetic material in the ground (e.g., magnetite and/or pyrrhotite). Magnetic data are also used as a mapping tool to distinguish rock types and to identify faults, bedding, structure and alteration zones. Line and station intervals are usually determined by the size and depth of the exploration targets. The magnetic field has both amplitude and a direction. The most common technique used in mineral exploration is to measure just the amplitude component using an overhauser magnetometer. The instrument digitally records the survey line, station, total magnetic field and time of day at each station. After each day of surveying, data are downloaded to a computer for archiving and further processing. The earth s magnetic field is continually changing (diurnal variations) so field measurements are calibrated to these variations. The most accurate technique is to establish a stationary base station magnetometer to continually monitor and record the magnetic field over the course of a day. The base station and field magnetometers are synchronized on the basis of time and computer software is used to correct the field data for the diurnal variations. DGW Consultants Badger Assessment Report Page 10

11 Data Processing Acquisition and Quality Assurance Measures On each day of surveying, geophysical and location information was dumped to external computers for archiving and data processing. Initial quality control of the data was completed by the survey crew at the camp and then sent to DGW Consultants Ltd. in Vancouver, BC, for final quality control, processing and mapping. Location information measured in the field (ground distances, slopes, azimuths, and GPS control points) are imported into a database. Within the database, automatic calculations are performed to generate UTM coordinates for every survey station. A visual review can then be performed to verify the locational information. The Magnetic data is corrected for diurnal variation using the following formula: Datacor=Dataraw Database+ Datum where Datacor is the corrected data, Dataraw is the raw data from the mobile magnetometer, Database is the base station reading for the same time period, and Datum = 55000nT. In the final spreadsheet, suspect or poor quality points are flagged and removed. Calibration readings are verified to ensure the morning and afternoon readings are within set tolerances to determine instrumentation repeatability and noise of operator. In addition, any static shifts (differences) between multiple the instruments or even between the different days can be corrected for. Equipment GSM-19 Overhauser combination Magnetometer Resolution: 0.01 nt, magnetic field gradient Accuracy: 0.2 nt over operating range Range: 20,000 to 120,000 nt Gradient Tolerance: Over 10,000 nt/meter Reading: Initiated by keyboard depression, external trigger or carriage return via RS-232C Input/Output: 6 Pin weatherproof connector, RS-232C, and optional analog output Power Requirements: 12V 200 ma peak (during polarization) 30 ma standby 300 ma peak in gradiometer Power Source: Internal 12V, 1,9 Ah sealed lead-acid battery standard, other optional External 12V power source can be used Battery Charger: Input: 110/220V AC, 50/60 Hz and/or 12V DC Output: 12V dual level charging Oper. Temperature: -40C to 60C Battery Voltage: 10V min. to 15V max. DGW Consultants Badger Assessment Report Page 11

12 6.0 CONCLUSIONS In November 2012 DGW Consultants completed a detailed geophysical survey program on the Badger property. The mandate of the program was to carry out a total magnetic field survey over the BADGER minfile occurrence in order to aid in the geological interpretation of this area. The geophysical survey was successful in collecting line km s covering an area of ~0.16km 2 in the BADGER minfile area. The following recommendations are made for the Badger Property in order of priority: 1) Carry out a geophysical magnetic survey to cover the entire property 2) Carry out property wide prospecting and soil surveys DGW Consultants Badger Assessment Report Page 12

13 7.0 Statement of Qualifications I James G.M. Thom certify that: 1. I am an independent consulting geologist residing at 118B west 14 th ave, Vancouver BC, V5Y1W5 and can be contacted at thomjgm@gmail.com 2. I obtained a B.Sc. in Earth and Ocean Sciences at the University of Victoria [2002] and graduated with a M.Sc. in Geology from the University of Toronto [2003]. 3. I have worked in the mineral exploration industry since I supervised the 2012 exploration program described in this report. DGW Consultants Badger Assessment Report Page 13

14 8.0 STATEMENT OF COSTS Breakdown of Costs for 2012 Exploration work: SOW Field Days: November 11 to November 12 Personnel: James Thom 2 $ $1, Rhonda Viani 2 $ $ Field Costs: Field Camp and Supplies Field Communications 2 $100.00/m/d (including camp rental, GPS rental, prospecting and sampling equipment, first aid, generator, field computer and chain saw) Long Distance charges + Motorola 2 way field $ $50.00 radios Sat phone and costs 1 $150/wk $75.00 Camp Consumables Food/fuels $ Survey Consumables Sample bags, survey flagging, pickets etc. $50.00 Transportation: 1 x Truck Rental 2 $110.00/day $ x Snowmobile Rental 2 $55.00/day $ Geophysical Equipment: 2 x mobile units 2 $150.00/unit/day $ x base station 2 $100.00/unit/day $ Office & Engineering: Report Writing based on results of Phase I exploration program $1, GIS/Drafting/Cartography $1, Total estimate cost of the Phase I exploration program $5, DGW Consultants Badger Assessment Report Page 14

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