^ihfc SAMPLING REPORT. for SHALMAR RESOURCES LTD. PADDY-MAC GOLD GROUP. Terrace, B.C. D. LOCKWOOD BEMA INDUSTRIES LTD. Langley, B.C.

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1 ^ihfc / ^m /&&# BEMA INDUSTRIES LTD rd Street. LANGLEY.BC. V3A IW3 (604) SAMPLING REPORT for SHALMAR RESOURCES LTD. on PADDY-MAC GOLD GROUP Terrace, B.C. by D. LOCKWOOD BEMA INDUSTRIES LTD. Langley, B.C. September 3, I 6 WJ5 28" 23' 54 45* 5"

2 4 SAMPLING REPORT INTRODUCTION On July 8, 9 80, Bema Industries Ltd. was requested by Mr. D. Coates of D. W. Coates Enterprises to supply one professional climber and an assistant to chip sample the extension of the Paddy-Mac gold vein. These samples were collected from the vein in the north wall of a cirque at the headwaters of Carpenter Creek under the direction of J. M. McNulty. The work was carried out on the 7th and 8th of August, 9 80, and this report includes the results of the sampling. LOCATION AND ACCESS The claims are located approximately 30 kilometers NNE of Terrace, B.C. in a cirque at the headwaters of Carpenter Creek. The topography is rugged and access is by helicopter from Terrace (5-20 minutes). Drill equipment and other supplies could be moved to a point on the road near Pacific and flown 5 miles to the property.

3 /~N INDEX MAP COLUMBIA Miles LOCATION MAP PADDY-MAC GOLD CLAIMS

4 2 GEOLOGY The Paddy-Mac gold vein system occurs in altered Upper Jurassic sediments and is cut by porphyry dykes «and several faults and small displacement. In the area sampled, the vein system trends 0 80 on surface with a general attitude 020/25 E. It pinches, swells, divides and rejoins reaching a maximum two-vein total thickness of 50 cm or single vein thickness of 60 cm. See Figure 3. Mineralization consists of pyrite, chalcopyrite, galena, arsenopyrite and pyrrhotite which have sporadic distribution. Assays are recorded on Table and Figure 3. WORK DONE Continuous chip sampling was done by Dean Lockwood, an experienced mountaineer, and Dave Powell during the period August 6th to 8th with two days spent sampling. The stations and intervals of vein and country rock sampled are recorded on Table and Figure 3. The samples of split veins at each station were added to comprise one sample. All samples were

5 3 forwarded to Chemex Labs Ltd., North Vancouver, for Au and Ag assays and selected samples for Cu, Pb and Mo assays. Because of time constraints no survey of the vein was made and no reconnaisance for a water supply was conducted. No reconnaisance was made for possible drill-sites on the ridge above the vein. Dean Lockwood suggests that water might be available from the cirque to the north of the veins but would require approximately 50 metres of lift. A pump station could be established at the top of the talus slope. Water might also be obtained from the cirque to the south but would require greater lift. CONCLUSIONS The results of this sampling program indicate that the southwest extension of the vein system does carry significant Au, Ag, Cu c\nd Pb values. The strike and dip of the vein system is such that it should be feasible to test it by diamond drilling from a number of sites located on the ridge south of the vein.

6 4 Geologic mapping, surveying the vein and preparation of cross sections are necessary to confirm this. Two drill holes of up to 50 metres might be drilled from each of five drill stations. A drill program would require helicopter support by Bell 47 with a camp established near the present campsite. Air photographs and better topographic control of the area are required for logistic control and preparation of sections. 3, <qz&.'.-.,..,-,, V'-h)]^

7 Viev; of cirque wall looking southerly MW^JJ. ( ( Samplinc Pa do v-mac Gold Vei:

8 -,- if.-. S/'/y "K''''t i Y/it lh\ A- Wi\( WMMW WmMw\\MMMI-I F i g u r e No. 2 PADDY-MAC GOLD GROUP Scale :50,000 - r f x r i i T T / n n w ^' ^.' >^'r."sv['".-7.7rt.*r?" f\"/" 7/ " /

9 CHEMEX LABS LTD 22 BROOKSBANK AVE. NORTH VANCOUVER. B.C. CANADA V7J 2C TELEPHONE: AREA CODE: 604 TELEX: ANALYTICAL CHEMISTS GEOCHEMISTS REGISTERED ASSAYERS CERTIFICATE OF ASSAY TO: Bema Industries Ltd., rd St., Langley, B.C. V3A W3 ATTN: P.O. #64 Contract #80-4 SAMPLE NO. : 8695B Note: - oz/ton Ag oz/ton Au denotes less than Percent Cu Percent Mo Percent Pb CERTIFICATE NO INVOICE NO RECEIVED A ug. 2/80 ANALYSED Aug. 9/80 ^n CTA r "'V MCV5E* / /

10 *A LEGEND Argillite Q Porphyry DyKe» * Quartz vein 020* x^s Strike and Dip Of Vein A 9 Sample point Porphyry Dyke M k 'A * i Porphyry Dyke \,4fit I,' numeious Location 2 20 Sample No Ag (OJ/T) (/ _ vein foulied, B 2.98 ^ ^""off»ei.imeiet IB " 2 54 i B B B B Au (Oi/T) (%) "0456~ i 86955B B B 86959B 86960B B i [ ~ B Mo (V.) if" -OOOl "odoi _3 \T^_ j ! 0 70 II B II 86967B II M6!l69 B '0 B 0 2B B 5 ' 6 NOTE i B6972 B B ~O~60 ~ O.OlO denoiei ie»«inon = : = See sompie record data tor sampling details. -Width of veins shown diagrommaticolly only, not to scale. '/A SHALMAR RESOURCES VEIN SAMPLING SKETCH SAMPLING BY DEAN LOCKWOOD UAH AUGUST, I960.Mil I) H VIM '.' I!> M J B l_ey III. tl< I &>&> BEMA INDUSTRIES LTD.

11 AREA OF BEMA SAMPLING \ LEGEND -< Adit «* Ouortz vein O Porphyry Dyke Q Argillite NOTE: Information supplied by J. Mc Nutty. SHALMAR RESOURCES APPROX. SCALE I 2500,^,*#*"#"*" JOB NO so-*. m OATE AUGUST, I960 FIG NO _ ** «** REVlSf.D BY ^ \ ^ BEMA INDUSTRIES

12 ^ _^ PADDY-MAC Sczrplo Record SHALMAR RESOURCES. B;I.C. D> LOCKWOOD Property «- Samples 3 meter from spacing Stn. along - Stn. vein 6 u ASSAYED?03 i SaKDle So. Locstion! Description I Ag(oz/T) ]_ Au(oz/T) Cu(%) Mo ( %) I Pb(%) \ ^te Sbim>od! B j Wall rock below lower _ vein 35 cm J x 0.2 jx 0.00 numerous small quartz veins this sample 9 j 8696l'B Stn. 6! One vein - continuous chip \ sample 4 0 cm \ x 7.4 [X x...5. IX B Stn. 7 One vein - upper only continuous chip 5 cmlx 5.06 X x 0.48 X 3.7 Lower vein covered by $ rubble! B Stn. 8 Two veins -Total chip Jj sample 35 cm x! 7.24 X ^c!.6 x! upper vein 0 cm - host between veins 0 cm lower vein 2 5 cm I B Stn. 9! One vein continuous lj chip sample 40 cm x 0.42 X j i. i B Stn. 0 One vein continuous t r B Stn. chip sample 60 cm {j x.72 X 0.26 X 0.7 X 0.7Q { One vein continuous j chip sample 50 cm \ x.33 X X 0.3 X B Stn. Host rock above vein 35 cmjj x 0.0 X B Stn. Host rock below vein 35 cmf x 0.32 X Stn. 2 J One vein continuous E chip sample 45 cm jl x] 0.28 X B Stn. 3. One vein continuous \ j chip sample 20 cm j x j 0.28! x L.5L 9 "LI'XZ S tn. 4 j One vein continuous f chip sample 0 cm \ xj 0.60 X 0.00 f h"86?72 B~ Stn. 5 One vein continuous j t chip sample 0 cm j xj.42 x'"[ J f_8'6973 B Stn. 6 One vein continuous j j chip sample 5 cm \ x 0.20 X 0.02 I - rl^not-pc; "IPSS than" ""] r. r

13 Bate August, 980 BEMA INDUSTRIES LTD. p ro rtt PADDY-MAC Stesplo Record SKALMAR RESOURCES 2. E.I.C, D. LOCKWCOD r* Samples from Stn. - Stn ASSAYED POS Senple No. Location Deecripti on I Aq(o z/tj j Au(oz/T) Cu(%) _ Mo(%) Pb (%) Date Shipped 8695 B Stn. [Two veins - Total chip j. sample 4 5 cm k I x x x 9.88 \ - upper vein 5 cm - host rock between j veins 40 cm - lesser vein 40 cm B Stn. 2 Two veins - Total chip sample 4 0 cm \x 6.48 x X 2.66 X 5.68 } - upper vein 5 cm - host between veins 45 cm - lower vein 2 5 cm B Stn. 2 Wall rock above upper vein X 0.36 x B Stn. 2 Wall rock below lower vein X 0.0 X B Stn. 3 Two veins - Total chip sample 50 cm X 9.82 i x 0.42 X 5.05 X upper vein 0 cm - host between veins 60 cm l *\ - lower vein 40 cm B Stn. 4 Two veins - Total chip sample 40 cm * x X 0.87 X 7.93 j - upper vein 0 cm I " ] i - host between j veins 60 cm lower vein 30 cm j B Stn. 5 Two veins - Total chip B sample 20 cm jj x 5.06 x, X 0.46 X.95 - upper vein 0 cm j - host between $ veins 60 cm j - lower vein 0 cm / I pb6959'~b" Wall rock above upper I vein 35 cm \ X 0.4 x 0.08ZL j h i!! A G\r\r>> + n> t oc c f hnr» M

14 Bate August, 980 BEMA INDUSTRIES LTD. Property PADDY-MAC Sessplo Record SHALMAR RESOURCES B.I.C. D. LOCKWOOD Samples fj com Stn. 7 - Stn. 2 4 meter sj Dacina along vein I ASSAYED FOR SBErole No. Location Description J AQ(OZ/T) I Au(oz/T) Cu(%) Mo(%) Pb(%)! Pate.Shipped I B Stn. 7 One vein continuous! chip sample 30 cm lil.20 x B Stn. 8 (Two veins - Total chip L_ [ sample 75 cm [2L X l I * Including host rock between r r: - upper vein 5 cm * - host between \ veins 50 cm - lower vein 20 cm! B Stn. 9 (One vein contiauous \ [ chip sample 40 cm x 2.95 X B Stn. 20 One vein continuous i % chip sample 40 cm i IX 2.08 x' T86978 B Stn. 2 One vein continuous i chip sample 55 cm! x 5.42 X X 0.86 X 5.3 i l r. _.. i t n k \ ' i! I \ J j - < i * li I i f!! i r " -