DRILL REPORT. - on the - Kamloops Mining Division. - for - #1-219 Victoria Street, H1-219 Victoria Strcct, KAMLOOPS, B. C.

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1 DRILL REPORT - on the - AU CLAIMS Kamloops Mining Division -- - for - KEDA RESOURCES (1973) LTD. NPL, #1-219 Victoria Street, KAMLOOPS, B. C. LOCATION: 50" 25"; 119" 23'W. NTS 82L/6W. 18 km. NNW of Vernon, B. C. KLRR, DAWSON F, ASSOC1A'rI:S 1,'I'D. H1-219 Victoria Strcct, KAMLOOPS, B. C. John R. Kerr, P. Eng., January 18, MINERAL. REZSOUZCES!XL.i;L 4 ASZfS32Kf;T REQOZT 7837 E!Q. -I d

2 INTRODUCTION.... INUEX Page No DRILL PROGRAMME DRILL RESULTS APPENDICES: APPENDIX A: - Cost Statement APPENDIX B: - D r i l l Logs APPENDIX C: - Assays and Geochem. Analysis APPENDIX D: - Writer's Certificate LIST OF MAPS: Figure 7-1: - Location Map Figure 7-2: - Index Map Figure 7-3: - Location Plan and Section of D r i l l Holes.

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4 INTRODUCTION The Au claims were staked in 1973 and 1975 by Keda Resources (1973) Ltd. NPL to cover a known gold occurrence northwest of Vernon, B. C. Dramatic increases in the price of gold and silver have enthused exploration and development of many gold occurrences. In May, 1979, Keda entered into agreement with Mr. A. Babiy to finance a preliminary drill programme. Mr. Babiy contracted the services of M r. J. MacNeil, diamond driller, to complete the drill programme. This report summarizes the results of this programme. Normal introductory remarks, such as location, access, topography, and history of mining are well documented in previous reports by J. M. Dawson, P. Eng., 1973, and W. Gruenwald, 1976, and are summarized below. The property is located in south-central British Columbia, 18 km. NNW of Vernon and 16 km. SE of Falkland,

5 B. C. Geographic coordinates of the centcr of the property are 50'25'N; 119'23'W (NTS 82L/6W). Access is possible from Highway #97 by either the Irish Creek or Moffat Creek roads, a distance of approximately 8 km. c The property consists of 9 contiguous mineral claims, 8 under the old 2-post system, and 1 under the modified grid system. The following is a list of all claims: Claim Name Record No. No. of Units Mining Div. Expiry Date* Au 1 Au 2 Au 3 Au 4 Au 5 Au 7 Au 12 Au 19 Au Post 2- Post 2-Post 2-Post 2-Post 2- Pos t 2-Post 2-Post 6 Kam 1 oops K am 1 oops K am 1 oops Kam 1 oops K am 1 oops Kaml oop s Kamloops Kamloops Kamloops Mar. Mar. Mar. Mar. Mar. June June June June 8, , , 1984 a, , , , , , 1984 * on acceptance of this report. The claims are recorded in the name of Keda Resources (1973) Ltd. NPL, the beneficial owner.

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7 1979 FIEI,D PROGRAMME Two inclined diamond drill holes were completed to intersect the main mineralized zone at vertical depths of meters. A third hole commenced 33 meters west, to intersect a possible western extension of the zone. This hole was terminated in deep overburden. A drill contract was negotiated with Mr. J i m MacNeil, private owner of a Longyear 34A diamond drill. Drilling commenced May 25, 1979, and was completed by June 29, The following summarizes the drill data; Hole No. Locat ion -- Brg. Dip Depth Remarks Au- 1 N34"E -60" 60' (18.3m) Terminated in overburden. Au- 2 N34'E -60" 315' (96.0m) Au- 3 S34"W -55" 161.5' (49.2m) Au-2 and Au-3, the only holes encountering bedrock, were logged in detail, attached as Appendix B. Zones or sections containing significant alteration or sulphides were sampled and either assayed or geochemically analyzed for gold (See Appendix C).

8 DRILL RESULTS Although quartz veins and shear zones were encountered in both drill holes, all assays and geochemical analyses revealed only low gold contents. Visual examination of the core indicates that the mineralized zone as observed on surface was not intersected in either of the holes. Figure No. 7-3 shows the surface plan and section of the drill holes. It is obvious from the t r- section, that the surface zone does not extend to depths of meters. Three possible interpretations for this are presented: (1). The mineralized zone pinches out with depth. (2). The zone is terminated or displaced at depth by a fault. (3). The outcrop containing the mineralized zonc is in fact a largc slumpcd block. In this event, the main zone, in place, would be located uphill, possibly coinciding with VLF-EM and geochemical anomalies.

9 - c 5. Continued work on the property is recommended, consisting of detailed geochemistry, continued EM surveys, trenching, and drilling. Respectfully Submitted By: KERR, DAWSON AND ASSOCIATES LTD., > I I 4 ' January 18, 1980, Ghn R. Kerr, P. Eng., ',./GEOLOGIST L,' KAMLOOPS, B. C.

10 f I - APPENDIX A COST STATEMENT L

11 COST STATEMENT Drill Supervision: John R. Kerr, P. Eng., 3 $200.00/day... $ J. M. Dawson, P. Eng., 1 $200.00/day Warner Gruenwald, Geologist 1 $125.00/day $ Diamond Drilling (all inclusive): $18.50/ft.... 9, Assays and Geochem. Analysis Truck Rental : 5 $25.OO/day.... $125.OO /mile Report Preparation: J. R. Kerr - 1 1/2 days... $ Drafting Secretarial, printing, and report binding TOTAL... $11, /"' v

12 .- APPENDIX B DRILL LOGS

13 ~ - KERR-DAWSON & ASSOCIATES LTD. - DIAMOND DRILL RECORD Suite Victoria St. Kamloops, B.C. Phone PROPERTY... Au Claims HOLE No...#.3... I DIP AND AZIMUTH TEST 1 Corrected Footage I Angle I Azimuth I I I I 1... of..:!... 80%... Claim... Au Elev. Collar... Date Begun... J.U.G.'?. Section Latitude... Date Finished June... 29/79 Bearing " Departure... Core Stored At... Kerr Whse. Core Size... B. S... Total DeDth , Sheet No... 1 Angle of Hole % Recovery... togged by... J.Qh!!... R.,... kx,t ( lT) fine-medium grained volcanic rock [dyke) 7. Rock sheared. altered and weathered ' 7' Tn-d rlnrk gev shale zgd11+_p.. an$ ( qm) medium grained lieht grey. ereywacke. Rock quite blocky and sheared. with considerable surface -.. oxidation. Core di ffi nil t to identifv i n ~ ~, ~ ' 7' Medium grained, lieht grey, quite massjve ( h) greywacke ' - Very blacky a n d r e d - fmilt 7nne ' 0' Dark grey-fine grained argillite-with some ( m) interbanding of lighter grey sediments. J I

14 1 1 1 JUlIt: 1-41Y JICtOr,..at KamlooDs. Bi. I Phone PROPERTY r- DEPTH CORE LOST DESCRIPTION ' 0' Highly sheared and altered zone, with veins ( m) Au Claims and veinlets of calcite and quartz. HOLE No. #3 Significant content of sulphides - pyrite 10% WIDTH SAMPLE No* of SAMPLE M& Au ' 4' v SHEET No. 2 of ' ' 9' Dark grey, fine grained shale and argillite. ( m) Numerous veinlets and stringers of calcite, Some pyrite on fracture faces. Dominant trend of fractures I " to core axis. Some banding with coarser grained material - 137' banding (bedding?) parallel to core axis ' 5' Light grey, medium grained greywacke. Some ( m) pyrite on fractures. Calcite and quartz stringers throughout ' - Highly fractured and sheared. 3' of core lost. (49.2m) 161.5' END OF HOLE.

15 KERR-DAWSON I 1 & ASSOCIATES LTD. - DIAMOND DRILL RECORD Suite Victoria St. Kamlaops, B.C. Phone PROPERTY... Au Claims HOLE No... #2 DIP AND AZIMUTH TEST Corrected Footage Angle Azimuth Core Size Total Depth ' Sheet No... 1 of... 6 I % Recovery Logged by.. Claim DateBegun.I... Section Latitude... Date Finish Departure... Core Stored At... ( Ir) ' 1' Light grey, fine-medium grained argillite as ~) above. Fractures 45" to core axis. 32' - Dark grey - fine-grained altered argillite over 6". Some minor pyrite ' - Hirzhlv fractured. 42' - Highly fractured. 43' - very blockv and fractured ' - fractured. ~~ ' Dark grey, fine-grained altered and moderately ( Sm) well fractured argillite, with pyrite, rusting a n d t e on fractilre fares. NO

16 KERR-DAWSON t T - 1 & ASSOCIATES LTD. - DIAMOND DRILL RECORD Suite Victoria St. Karnloops, B.C. ' 1 Phone PROPERTY Au Claims HOLE No. #2 SHEET No. of 6 DEPTH CORE LOST DESCRIPTION SAMPLE No. WIDTH of SAMPLE I I 1 I recomizable dominant trend to fractures - most fractures incipient. I I I I ' - Possible fault zone ' - Gouge or fault zone, abundant pyrite ' - Very highly fractured fault zone - Au 2 slickenslides. Pyrite 1-3% content. Evidence 72-77' 5' of core ground 3' of core lost., ' 10' Medium grey, coarse-medium pr ained arri 11 ite ( ) or greywacke. Many calcite and limonite filled incidient fractures. Dominant trend at 35-40' to core axis. 77' - 4 qtz. carbonate vein ' - Highly fractured 3' core lost ' ( ) 9' Rubble and ground chips of core. Dominantly dark grey argi 1 lite. Almost all core ground ' ( m) 2' Dark grey fine-grained argillite, - with calcite filled fractures 35" to core axis. Traces and minor content Dyrite throughout ' ( ) 0' Coarse grained, grey sandstone or greywacke. Moderately fractured. -

17 ~ ~ -- KERR-DAWSON, 1 1 t '1 ' 1 - t ' 1-1 & ASSOCIATES LTD. - DIAMOND DRILL RECORD Suite Victoria St. Kamlooos. B.C. Phone PROPERTY Au Claims HOLE No. #2 SHEET No. 3 of 6 DEPTH CORE DESCRIPTION LOST ' 0' Light grey, fine-medium grained argillite, ( m) with calcite and minor pyrite fillings on fracture faces. WIDTH ~ ' ( m) 1/2' Dark grey, fine-grained,highly fractured, sheared and altered argillite. Pyrite throughout zone in trace to 1% content. Calcite on ' 1' Interbanded light grey-dark grey of grained argi lli.:e. ( m) ' 2 1/2' Ground chips of rock - fine - grained argillite. ( m) Au ' 1/2' Dark grey, fine grained altered ' 10' / 7,ysb m) Rock highly fractured and recomented with calcite. Considerable content of fine grained pyrite as dissiminations and blotches associated with fractures ' ( m) 8' Light grey, fine-medium grained argillite; moderately fractured with calcite and limonite on fracture faces.

18 KERR-DAWSON t & ASSOCIATES LTD. - DIAMOND DRILL RECORD 1 1 I - 1 Suite Victoria St. Phone Kamloops, B.C. DEPTH CORE LOST DESCRIPTION ' - Highly fractured and blocky ' - Highly fractured;3' core lost ' - Highly fractured; 4' core lost. SAMPLE No. WIDTH of SAMPLE L/. I I, : 4' 2' ( I 3m) Altered sheared and fractured argillite. Some AU- 2 limonite stain on fracture faces. Some pyrite ' /A' -7DA - mainly associated with fracture faces ' 1/2' ( lm) Light grey fine-medium grained argillite, possibly a volcanic tuff - as some fine grained fragments ' 2 1/2' Dominantly dark-grey, fine grained argillite m) with some bands light - grey, coarser grained I argillite at 35' to core axis. Quartz and calcite veinlets occurrinrr alonn incidient fracture faces. Some pyrite assoc. with fractures. AU- 2 I ' 3' Interbedded fine grained dark grey argillite t ( Om) and light grey, medium-fine grained argillite or volc. tuff? Banding at 20-40' to core axis. I I I (varies considerablvl. Several incidient fractures and faults. Pyrite on fracture faces. 249' - 6" shear zone. I ' - very fractured and blocky. 259' - 6" fracture zone ' 14' i4 b AU ' 14' 71Fb

19 ~~ ~~~~ PROPERTY DEPTH KERR-DAWSON g ASSOCIATES LTD. = DIAMOND DRI'LL R~CORD CORE LOST Au Claims DESCRIPTION HOLE No ' - Highly fractured and very blocky (3' lost core). #2 SAMPLE No' WIDTH of SAMPLE SHEET No. Au 5 Suite Victoria St. Kamloops, B.C. Phone of 6 I ' : m) 1' Altered, sheared and fractured fine-grained AU- 2 dark grey argillite. Pyrite (1-2%) mainly assoc ' 8' Trace with fracture faces ' 0' Light grey-grey, medium-grained volcanic tuff lm) Several quartz stringers and veinlets in section. AU ' Considerable content of disseminated pyrite ' 1 throughout section. I I E8.5' i m) 1' Quartz-carbonate (calcite?) AU- 2 3' vein with disseminated and blebs of pyrite '.009 oz,/t throughout. Vein-70" to core axis ' m) 0' Light grey-green, medium grained volcanic tuff. Quartz 70" to core axis. Pyrite YV 1-2% throughout ' ' 0' 5m) Dark grey-green medium grained volcanic rock, AU- 2 or possible dyke. Pyrite in f. disseminations and ' -5' /3O.R/P.b along incipient fractures ' 0' Light grey-green fine-medium grained volcanic lm) tuff. Pyrite disseminations throughout and along

20 1 " '1 - '1 - t ' I KERR-DAWSON & ASSOCIATES LTD. =' DIAMOND DRILL RECORD Suite Victoria St. Kamloops, 8.C PROPERTY Au Claims HOLE No. #2 SHEET No. 6 of 6 DEPTH CORE LOST DESCRIPTION WIDTH SAMPLE No. of SAMPLE p d / fractures and quartz veinlets as noted below; a1 1 60' to core axis ' - 2" quartz vein. Au ' 5'75+Pb ' 294' - 1" and 1/2" quartz vein. 295' - 1" quartz vein ' - 2" quartz vein. Au- 2 10' 5s PPb ' I 301' - 1'' quartz vein ' - 1" quartz vein ' - two 1/2" quartz veins. 303' - 1/2" quartz vein. 307' - 2 1/2" quartz vein ' - 1" auartz vein ' - rock very fractured and blocky. 315' EUD OF HOLE. (96. lm)

21 APPENDIX C ASSAYS & GEOCHEM. ANALYSIS -

22 ! Karnloops Research & Assay Laboratory Ltd WEST TRANS CANADA HIGHWAY-KAMLOOPS, B.C. VlS la7 TELEPHONE TELEX B.C. LICENSED ASSAYERS GEOCHEMICAL ANALYSTS CERTIFICATE OF ASSAY TO Y t E S Victoria St.. Kamloops, 6. C. K-2060 Certificate No. June 18, Date NOTE : Rejects retained three weeks Pulps retained three months unless otherwise arranged.... h g Q, rn Registered Assayer,' Provinb of British Columbia

23 1 I ' 1 ' ~ Kamloops Research & Assay Laboratory Ltd WEST TRANS CANADA HIGHWAY-KAMLOOPS, B.C. VlS la7 TELEPHONE TELEX B.C. LICENSED ASSAYERS GEOCHEMICAL ANALYSTS CERTIFICATE OF ASSAY I TO Kerr, Dawson & Associates, Victoria St., Certificate No. K-2086 Date June 18, NOTE: Rejects retained three weeks Pulps retained three months unless otherwise arranged.... Lh... $343 1 Registered dssayer, Province of British Columbia

24 r 1 i 1 1 1? I - 1 ' 1 - 'I Kamloops Research & Assay Laboratory Ltd WEST TRANS CANADA HIGHWAY-KAMLOOPS, B.C. VlS la7 TELEPHONE TELEX B.C. LICENSED ASSAYERS GEOCHEMICAL ANALYSTS CERTIFICATE OF ASSAY I TO Kerr Dawson & Associates, Victoria St., Kamloops, B. C. Certificate No. K-2118 Date - - NOTE: Rejects retained three weeks Pulps retained three months... unless otherwise arranged. Registered Assayer, Province of British Columbia

25 c Kamloops Research & Assay Laboratory L T 1). B.C. CERTIFIED ASSAYERS 2095 WEST lrans CANADA HIGHWAY -- KAMLOOPS, B.C. VlS la7 PHONE TELEX GEOCHEMICAL LAB REPORT

26 I,- 7 c Kamloops Research & Assay Laboratory B.C. CERTIFIED ASSAYERS 2095 WEST TRANS CANADA HIGHWAY - KAMLOOPS, 8.C. V1S 1A7 PHONE TELEX GEOCHEMICAL LAB REPORT -- I 1 I I Ill 1! I I

27 I " APPENDIX D WRITER'S CERTIFICATE

28 ~ - JOHN R. KERR, P.ENG. G 0 LOG I CA L ENGINEER VICTORIA STREET KAMLOOPS. B.C. PHONE (604) STATEMENT OF OUALIFICATIONS I, JOHN R. KERR, OF KAMLOOPS, B. C., DO HEREBY CERTIFY THAT: (1). I am a member of the Association of Professional Engineers of British Columbia, and a Fellow of the Geological Association of Canada. (2). I am a geologist, employed by Kcrr, Dawson and Associates Ltd., of Suite #1-219 Victoria Street, Kamloops, B. C. I I (3). I am a graduate of the Univcrsity of British Columbia, with a B. A. Sc. in Geological Engineering and have practised my profession continuously since graduation. (4). I supervised the drill programme as described in this report. I am thc author of this report which is bascd on the results of the drilling. KERR, DAWSON AND ASSOCIATES LTD., Kam1 oops, B. C., January 18tli., L' n R. Kerr, P. Eng., KERR, DAmON AND ASSOCIATES LTD. CONSUL TlNG GEOLOGISTS AND ENGINEERS

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