GEOPEYSICAL REPORT VLF-EM AND MAGNETIC SURVEYS OVER THE VENUS 1 CLAIM JAMESON LAKE, PRINCETON AREA (HEDLEY GOLD CAMP) SIMILKAMEEN MINING DIVISION

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1 2%- - GEOPEYSICAL REPORT ON VLF-EM AND MAGNETIC SURVEYS OVER THE VENUS 1 CLAIM JAMESON LAKE, PRINCETON AREA (HEDLEY GOLD CAMP) SIMILKAMEEN MINING DIVISION BRITISH COLUMBIA PROPERTY : 23.5 km due W of Hedley, B.C. and 12 km S30"E of Princeton, B.C. to the immediate SE of Jameson Lake : 49" 120" SE : N.T.S. 92H/8W WRITTEN FOR : FIRST ASIAN MINING CORPORATION t Jervis Street Vancouver, B.C., V6E 3M4 WRITTEN BY : David G. Mark, Geophysicir'., # West Pender Strec DATED Engineering8 Mining Geophysicists VANCOUVER, CANADA

2 GEOLOGICAL BRANCH ASSESSMENT REPORT SUMMARY CONCLUSIONS RECOMMENDATIONS 3 i ii ii INTRODUCTION AND GENERAL REMARKS... 1 PROPERTY AND OWNERSHIP... 2 LOCATION AND ACCESS... 2 PHYSIOGRAPHY... 3 HISTORY OF PREVIOUS WORK... 3 GEOLOGY... 3 MAGNETIC SURVEY: (A) Instrumentation and Theory... 6 (B) Field Procedure... 6 (C) Compilation of Data... 7 VLF-EM SURVEY: (A) Instrumentation and Theory... 7 (B) Field Procedure... 8 (C) Compilation of Data... 8 DISCUSSION OF RESULTS: (A) Magnetic Survey... 9 (B) VLF-EM Survey SELECTED BIBLIOGRAPHY GEOPHYSICIST'S CERTIFICATE AFFIDAVIT OF EXPENSES... 15

3 LIST OF ILLUSTRATIONS At Back of Report Map Property Location Map 1 :8,600,000 1 Claim Location Map 1: 50,000 2 In Back Pocket Magnetic Survey Data and contours 1: 5,000 VLF-EM Survey Fraser Filtered Data and Contours 1: 5,000 NOTE: Maps 3 to 7 are in the writer's previous report on the property.

4 i SUMMARY Magnetic and VLF-EM surveys were carried out over the Venus 1 Claim during the latter part of January, This claim is located 23.5 km due west of the Town of Hedley, British Columbia to the immediate southeast of Jameson Lake, Access to much of the property is easily gained by a two-wheel drive vehicle. The terrain consists of slopes varying from gentle to steep and forested with moderately dense coniferous trees. The purpose of the surveys was to locate probable areas of gold mineralization as well as possibly copper mineralization of the Ingerbelle- Copper Mountain type both directly and through mapping geological structure and lithology. The claim is mostly underlain by Upper Triassic Nicola Group volcanics and sediments with an intrusion of Otter Intrusions along the western part of the property. Also Copper Mountain Intrusions occur to the immediate north, and to the immediate west. Bands of metamorphosed limestone, calcareous argillites and argillites associated with basic intrusives are mineralized with gold-bearing arsenopyrite in the Hedley Mascot Gold Mines and Nickel Plate Mines. Also gold within quartz veins have been discovered on the Banbury Gold property. The Ingerbelle and Copper Mountain porphyry copper-type deposits occur 6 to 9 km to the southwest. I a The magnetic and VLF-EM readings were taken every 25 meters on 150-meter separated east-west lines. The magnetic readings were diurnally corrected, plotted and contoured and the VLF-EM readings were Fraser-filtered, plotted and contoured. II 1 I I

5 ii CONCLUSIONS 1. The magnetic survey has mapped what is probably: (a) Princeton volcanics or Coast Intri sive gabbros within the north central part of the property. (b) Coast Intrusive gabbro within the south central part of the survey area associated with soil sample highs. (c) Otter acidic intrusives within the western part of the survey area. (d) Nicola Sediments within the eastern part of the survey area. (e) Geological structure, such as faults shears and contacts, mainly striking northerly. 2. The VLF-EM survey has revealed several very interesting conductors which could be directly reflecting gold- sulphide mineralization, or indirectly reflecting the min- eralization through geological structure. Many of the anomalies are complex indicating cross structure which are often amenable to mineralizing fluids. The more interest- ing anomalies have been labelled by the lower case letters to I RECOMMENDATIONS The results as indicated above are quite encouraging and therefore warrant further work. These have been given in the writers previous report but have been changed slightly. These are as follows: -

6 iii 1. Take large soil samples every 50 m, but more preferably every 25 m along the established grid. In the lab, the total sample should be pulverized, and - not screened at all in order to preclude the screening out of coarser gold. The anomalous samples should then be followed up by sampling on a tight grid, say 15 to 20 m centers, on a grid, say 200 m square. 2. At the same time, careful geological mapping should be carried out preferably by a geologist familiar with gold porphyrites. This will also aid in additional interpretation of the geophysics already done. 3. The defined soil anomalies should then be 'cat' trenched. 4. Resistivity - IP mapping should also be carried out in order to optimize drill targets. In the writer's experience, this has proven to be a very effective tool. 5. Diamond drilling should then be carried out using a large diameter drill and a face discharge bit.

7 GEOPHYSICAL REPORT ON MAGNETIC AND VLP-EM SURVEYS OVER THE VENUS 1 CLAIM JAMESON LAKE, PRINCETON AREA (HEDLEY GOLD CAMP) SIMILKAMEEN MINING DIVISION BRITISH COLUMBIA INTRODUCTION AND GENERAL REMARKS This report discusses the survey procedure, compilation of data and the interpretation of magnetic and VLF-EM surveys carried out over most of the Venus 1 Claim during the period of January 19th to 30th, The survey was done by Geotronics Surveys Ltd. under the field supervision of Z.A. Szybinski, geologist, and one geophysical technician. A total of 22.3 line km of magnetic and VLF-EM surveys were carried out along east-west survey lines. The purpose of exploration on the property is to find mineraliz- ation similar to that being discovered at Hedley. Also, consid- ering the proximity of the Ingerbelle and Copper Mountain copper deposits, it is quite possible to discover copper mineralization

8 2 on the Venus 1 Claim. The specific purpose of the VLF-EM survey was to map geological structure as well as possible areas of gold or sulphide mineralization. That of the magnetic survey was to map lithology as well as structure. PROPERTY AND OWNERSHIP The property consists of one 20-unit claim as shown on Map 2 and as described below: Claim Name No. Units Record No. Expiry Date Venus June 15, 1986 The claim is owned by First Asian Mining Vancouver, British Columbia. Corporation of LOCATION AND ACCESS The property is located 23.5 km due west of the Town of Hedley, B.C. and 12 km S30'E of the Town of Princeton, B.C. to the immediate southeast of the Jameson Lake. The geographical coordinates are 49'21 longitude. 'N latitude and 120'25'W Access is easily gained by a forestry access road leading southerly from Highway #3 approximately 1 km east of Princeton, B.C. The property is about 20 km along this road to the east of Willis Creek, as shown on Map 2.

9 3 PRY S IOGRAPHY The property lies at the southern end of the physiographic division known as the Thompson Plateau System. The terrain consists of gentle to steep slopes throughout the property. The general trend of the property is northerly with the property occurring on a westerly-facing slope. Elevations vary from 1,000 meters a.s.1. at the northwest corner of the property to 1,540 meters a.s.1. at the southeast corner of the property to give an elevation difference of 540 meters. The main water sources would be the westerly-flowing tributary of W i l l i s Creek running through the center of the property as well as the northerly flowing W i l l i s Creek itself which occurs just west of the property. Also Jameson Lake occurs a few hundred meters northwest of the property. The forest cover consists of fir, pine and spruce and varies from closely growing, immature stands to more widely spaced, mature stands. HISTORY OF PREVIOUS WORK Since the claims have been staked, the only previous work has been some soil sampling along the roads which are reported in a previous report by the writer. The following is quoted form Sookochoff's May, the Venus 1 Claim: 1984 report on

10 4 "According to Map 88A - Princeton the general area is underlain by the Upper Triassic Nicola Group of volcanics, sediments and schists which are intruded by the Jurrasic Coast Intrusives and intrusives of peridotite, pyroxenite and gabbro. "The Coast Intrusives are predominant in enveloping the Nicola group which forms a band stretching from south of Prince- ton to beyond Kamloops Lake in the north. The same intrusives in addition to the more mafic rock intrusives and pink and grey granite and granodiorite of the Upper Cretaceous Otter Intrusions occur as stocks and plugs within the Nicola band. "The latest rocks of the region, the Kingsvale and Prince- ton Group of Volcanics occur as varisized cappings throughout the area. "The Nicola group consists of a succession of lavas of un- known thickness with irregular intercalations of tuffaceous and argillaceous lenses and occasional beds of limestone. Dawson states that 'there seems to be further in several places, a blending of materials originally volcanic with quartzose sedi- ments,...i "Flow breccias are probably more common than massive lava with the different types also mixed together. An unusual case of a flow is a greenish rock containing rounded fragments of what appears to be a red syenite but is actually a flow breccia feld- spar porphyry. "The sedimentary rocks are more restricted with some sedi- ments of considerable extent, however more commonly as small patches of fine-grained, well-bedded tuff or tuffaceous argil- lite and small lenses of blue-grey limestone all through the volcanic rocks.

11 5 "Breccias are common in certain areas. The breccias consist of angular fragments 'half an inch to an inch in size', of predominantly volcanic rocks with argillite which are frequently associated with tuff or greywacke of 'an eighth of an inch across' subangular grains. "At the Nickel Plate gold deposits at Hedley, 20 km southwest of Princeton, the stratified Nicola Rocks of thin bedded quartzite, argillite, tuff and breccia, in part much silicified, are floored of a large body of granodiorite and intruded by gab- bro stocks, dykes and sills. "At the Copper Mountain copper-silver-gold deposit, sul- phides occur as disseminated grains and as narrow veinlets main- ly in the metamorphosed volcanic rocks along the east and northeast margin of the Copper Mountain stock. "Mineralization also occurs in association with the Lost Horse intrusions and the Voigt stock, irregular shaped bodies of coarse grained plutonic rock varying in composition from syenite to gabbro and conspicuously devoid of quartz. Copper also occurs in association with pegmatite dykes associated with the intrusives. "Three main faults converge to and probably meet near Copper Mountain. "The VENUS 1 CLAIM is indicated to be underlain predominantly by the Nicola Group of Rocks in contact with the Otter Intrusions along a convex zone along the western periphery. "The Princeton Group of volcanics caps the intrusives and Nicola rocks and occurs at the northeast corner of the property.

12 I m 6 a "There is no known mineralization on the VENUS c 1 a im. I' 1 mineral MAGNETIC SURVEY (A) Instrumentation and Theory The magnetic survey was carried out with a model MP-2 proton precession magnetometer, manufactured by Scintrex Limited of Concord, Ontario. This instrument reads out directly in gammas to an accuracy of +I gamma, over a range of 20, ,000 gammas. The operating temperature range is -35" to +50" C, and its gradient tolerance is up tp 5,000 gammas per meter. Only two commonly occuring minerals are strongly magnetic, mag- netite and pyrrhotite; magnetic surveys are therefore used to detect the presence of these minerals in varying concentrations. Magnetics is also useful as a reconnaissance tool for mapping geologic lithology and structure since different rock types have different background amounts of magnetite and/or pyrrhotite. m Field Procedure The baseline was put in at a north-south direction and stations placed every 50 feet by flagging. The survey lines were put in at a 150 m interval perpendicular to the base line, that is, east-west with stations marked every 25 m by flagging as well. Readings of the earth's total magnetic field were taken at the 25 m stations along the 14 east-west lines. The diurnal variation was monitored in the field by the closed loop method to enable the variation to be removed from the raw

13 7 data prior to plotting. (C) Compilation of Data An arbitrary value of 57,000 gammas was subtracted from each reading and the residuals plotted along the survey lines on Map 8 at a scale of 1:5,000 (1 cm = 50 m). The values range from 56,735 to 60,030 gammas, to give a range of 3,295 gammas. Contours were drawn in at a 200-gamma interval. VLF-EM SURVEY (A) Instrumentation and Theory A VLF-EM receiver, Model 27, manufactured by Sabre Electronic Instruments Ltd. of Burnaby, B.C. was used for the VLF-EM sur- vey. This instrument is designed to measure the electromagnetic component of the very low frequency field (VLF-EM), which for this survey is transmitted at 24.8 KHz from Seattle, Washington. In all electromagnetic prospecting, a transmitter produces an alternating magnetic field (primary) by a strong alternating current usually through a coil of wire. If a conductive mass such as a sulphide body is within this magnetic field, a secondary alternating current is induced within it which in turn induces a secondary magnetic field that distorts the primary mag- netic field. It is this distortion that the EM receiver meas- ures. The VLF-EM uses a frequency range from 16 to 24 KHz, whereas most EM instruments use frequencies ranging from a few hundred to a few thousand Hz. Because of its relatively high frequency, the VLF-EM can pick up bodies of a much lower conduc- tivity and therefore is more susceptible to clay beds, electro- lyte-filling fault or shear zones and porous horizons, graphite,

14 8 carbonaceous sediments, lithological contacts as wellas sulphide bodies of too low a conductivity for other EM methods to pick up. Consequently the VLF-EM has additional usesin mapping struc- ture and in picking up sulphide bodies of too low a conductivity for conventional EM methods and too small for induced polarization. (In places it can be used instead of I.P.). However, its susceptibility to lower conductive bodies results in a number of anomalies, many of them difficult to explain and, thus, VLF-EM preferably should not be interpreted without a good geological knowledge of the property and/or other geophysical and geochemical surveys. (B) Field Procedure The VLF-EM readings were taken along the same east-west survey lines at 25-m intervals facing towards the transmitter at Seattle. (C) Compilation of Data The VLF-EM field results were reduced by applying the Fraserfilter and the filtered results subsequently plotted on Map 9 at a scale of 1:5,000 (1 cm = 50 m), The filtered data was plotted between actual reading stations. The positive dip-angle readings were then contoured at an interval of 5" beginning at 0". The Fraser-f ilter is essentially a 4-point difference operator, which transforms zero crossings into peaks, and a low pass smoothing operator which induces the inherent high frequency noise in the data. Therefore, the noisy, non-contourable data are transformed into less noisy, contourable data. Another ad- vantage of this filter is that a conductor t hat does not show up as a crossover on the unfiltered data quite often shows up on the filtered data.

15 9 DISCUSSION OF RESULTS (A) Magnetic Survey (Map 8) The most prominent feature of the magnetic survey is the magnetic high located in the north central part of the survey area. The magnetic field as shown by this high is fairly noisy ranging in values from 535 gammas to 3,030 gammas. (Note: For east of discussion, these are the values after the base value of 57,000 gammas has been subtracted, that is, for exaxple 535 reads 57,535 gammas). The high is probably reflecting one of three different rock types, numbered in order of probability: Princeton andesites and basalts of Tertiary Age which commonly produce noisy, high amplitude magnetic fields. Rice has mapped Princeton volcanics in the northeast corner of the property but not in the north central part. Coast Intrusive gabbros which are associated with gold mineralization at the Hedley Nickel Plate mine. Syenite to gabbro intrusions of the Lost Horse Intrusives and the Voigt Stock with which copper is associated at the Copper Mountain deposit. is also a small, but strong magnetic high in the south central part of the survey ares. Associated with this high are soil sample anomalies along the nearby road suggesting that this high could be a reflection of a Coast Intrusive gabbro such as occurs at the Hedley mine. The northeastern edge of the survey area appears to be on the edge of a magnetic high wich would likely be reflecting Prince- ton volcanics as mapped by Rice.

16 10 The magnetic field of the rest of the survey area is moderately noisy but of lower amplitude with values ranging from 200 to 600 gammas. The underlying rock-type is therefore quite likely Nicola volcanics. An exception may be the western part of the survey area which is characterized by a magnetic low. (-200 to +400 gammas). Rice has mapped this area as acidic intrusives of the Otter Intrusives. This would indicate the intrusives have a low magnetic content. Another exception may be the north-trending magnetic low within the eastern part of the surey area. This low may be reflecting Nicola sediments. Lines have been drawn along lineations marked by a series of lows. These are indicative of faults, or, possibly other geological structure. The strikes of these lineations are mostly northerly with some northeasterly and easterly. The writer wishes to point out that the lineation of the magnetic lows may simply be coincidental and therefore they may not be reflecting structure at all. More often than not, however, they do reflect faults. Some or parts of the lineations correlate with VLF-EM anomalies, which, as discussed below often reflect geological structure. (B) VLF-EM Survey (Map 9) The major cause of the VLF-EM anomalies, as a rule, are geologic structures such as fault, shear and breccia zones, It is therefore logical to interpret VLF-EM anomalies to likely be caused by these structural zones. Of course, sulphides may also be a causative source. But in the writer's experience, when VLF- EM anomalies correlate with sulphide mineralization,the anomalies are usually reflecting the structure associated with the mineralization rather than the mineralization itself.

17 a 11 The major trend of the VLF-EM anomalies, as seen on Map 9, are mainly northerly with a secondary trend being northeasterly. Considering the VLF-EM anomalies are likely reflecting struc- ture, the major strike of structure on this property is concluded to be in both these directions. There is some variation in intensity from one VLF-EM anomaly to the next, This is not only due to the conductivity of a causative source, but also the direction it strikes relative to the direction to the transmitter. In other words, those conductors lying closer to the same direction as the direction to the transmitter (S35W in this case), can be picked up easier than those that are lying at a greater angle. Depending upon its conductivity, a conductor may not be picked up at all if it is at too great an angle. The survey has produced very interesting results throughout the property, particularly the VLF-EM anomalies of high amplitude. These highs are of greater economic interest since they may be reflecting sulphides, fracturing and/or alteration any of which could be associated with gold mineralization. The highs often are at points of intersection of two or three conductors striking in two or three different directions, If the conductors are in fact geological structures, then the points of intersection become amenable to mineralizing fluids. Of particular interest are: (1) Two highs within the north central part of the survey area labelled tat and tbt, (2) One high within the west central part of the survey area labelled 'ct.

18 12 (3) Three highs within the south central part of the survey area labelled Id1, ler and If1. Other highs could be of equal or greater interest but further work will be needed to determine this. Respectfully submitted, SURVEYS LTD. February 11,

19 13 SELECTED BIBLIOGRAPHY Barr, D.A. - Gold in the Canadian Cordillera, C.I.M. Vol. 73, No. 818, June 1980, P Bulletin Bayle - Geochemical Methods for the Discovery of Blend Mineral Deposits, C.I.M. Bulletin, September, 1982, P B.C. Mines and Petroleum Resources, Annual Reports 1966 p Cockfield, W.E. - Geology and Mineral Deposits of Nicola Map - Area B.C., G.S.C. Memoir 249, Economic Geology - Seventy-fifth Anniversary Volume , Economic Geology Publishing Company Geology of Canadian Gold Deposits, C.I.M Geology of Canadian Ore Deposits, - 6th Commonwealth Mining and Metallurgical Congress Canada 1957, C.I.M. Geology Division Mark, Dav id G., Geochemical Report on a Soil Geochemistry Survey of the Venus I Claim, Jameson Lake, Princeton Area (Hedley Gold Camp), Similkameen M.D., B.C. for First Asian Mining Corporation, Geotronics Surveys Ltd., Sept. 11, Preto, V.A., Kalvins, T.E., Thompson, N.A., and Nebocat, J., Preliminary Geological Map of the Aspen Grove Area, (part of 92H/15 and 921/2E, B.C. Department of Mines and Petroleum Resources, Map 15, I I Preto, V.A., Geology of Copper Mountain, Bulletin 59, B.C. Dept. of Mines and Petroleum Resources, Rice, H.M.A., Geology & Mineral Deposits of the Princeton Map- Area, British Columbia, Geol. Survey of Canada, Mem. 243, Smith F. Marshall, P.Eng., Gold Porphyrites, G.A.C. Victoria, B.C., May, Symposium, Sookochoff, L., Geological Evaluation Report for First Asian Mining Corporation on the Venus I Mineral Claim, Sirnilkameen M.D., B.C. May 15, I

20 14 GEOPHYSICIST'S CERTIFICATE I, DAVID G. MARK, of the City of Vancouver, in the Province of British Columbia, do hereby certify: That I am a Consulting Geophysicist of Geotronics Surveys Ltd., with offices located at # West Pender Street, Vancouver, British Columbia. I further certify: 1. I am a graduate of the University of British Columbia (1968) and hold a B.Sc. degree in Geophysics. 2. I have been practising my profession for the past 16 years and have been active in the mining industry for the past 19 years. 3. I am an active member of the Society of Exploration Geophysicists and a member of the European Association for Exploration Geophysicists. 4. This report is compiled from data obtained from VLF-EM and magnetic surveys carried out by Geotronics Surveys Ltd. under the supervision of Z.A. Szybinski, geologist, with two helpers from January 19th to 30th, The work was done on the recommendation of L. Sookochoff, P.Eng., who is the consulting geological engineer for First Asian Mining Corporation. 6. I have no direct or indirect interest in the Venus 1 Claim nor in First Asian Mining Corporation, nor do I expect to receive any interest as a result of writing this report. February 11, 1985 Dav d G. Mark 1- Geohhys ic is t

21 15 AFFIDAVIT OF EXPENSES The VLF-EM and magnetic surveys were carried out from January 19th to 30th, 1985 on the Venus 1 Claim, Jameson Lake, Princeton area, Similkameen M.D., B.C. to the value of the following: FIELD: 2 geophysical technicians, 116 hours at $45/hour Room and board, 12 days at $100/day 4-wheel drive truck rental and gas Ski-doo rental and gas Instrument rentals, $20/day/instrument for 12 days for 2 instruments Survey supplies $ 5,220 1,200 1, $ 8,720 OFFICE: Report including drafting, interpretation and compilation $ 1,800 Total $ 10,520 Respectfully submitted, G. Mark, Geophysicist -

22 I. FIRST ASIAN MINING CORPORATION VENUS I CLAIM JAMESON LAKE, PRINCETON AREA SIMILKAMEEN MINING DIVISION, B.C LOCATION MAP

23 3 I I JAMESON LAKE, PRINCETON AREA SIMILKAMEEN MINING DIVISION, BC CLAIM MAP DATE: PROJECT No. NTS SCALE: NAP No. SEPT sen/ew i:so.ooo 2

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