BRENDA MINES LTD. EXPLORATION GROUP. REPORT on DIAMOND DRILL HOLE C on the CRESCENT LAKE PROPERTY. Lat. 4g0 47, Long '

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1 BRENDA MINES LTD. EXPLORATION GROUP REPORT on DIAMOND DRILL HOLE C-81-7 on the CRESCENT LAKE PROPERTY Lat. 4g0 47, Long ' Similkameen Mining District N.T.S. 92H/16 A.R. Pollmer Chief Geologist January, 1982

2 TABLE of CONTENTS Paae No. I INTRODUCTION... 1 I I PROPERTY DESCRIPTION a) Location and Access... 1 b) Topography and Vegetation... 3 I11 CLAIM INVENTORY... 3 IV GEOLOGY a) Regional Geology... 5 b) Property Geology... 5 c) Mineralization... 6 DIAMOND DRILLING... LIST of FIGURES Figure 1 - Property Location Map... 2 Figure 2 - Claim Map... 4 Figure 3 - Drill Hole Location Map... (in pocket) APPENDICIES Appendix I - Detailed Diamond Drill Hole Records 10 Appendix I1 - Statement of Qualifications Appendix I11 - Statement of Costs... 19

3 I INTRODUCTION The first recorded mining in the Mt. Kathleen area was on the Silver King and Alma Hater claims (presently the Greata property) which occur approximately 8 kilometers to the east of the Crescent Lake property. These properties were prospected for gold-silver although the mineralization is predominantly molybdenite hosted in quartz, sericite, pyrite veins. During 1966 to 1977, when Brenda Mines was being developed, this area was extensively explored. A number of small molybdenite occurrences were discovered in the region, but these properties were later allowed to lapse. During 1979, Brenda Mines exploration department conducted a regional soil geochemical survey over the entire region. The Crescent Lake property was staked during the fall of 1979, based on several anomalous molybdenite and lead soil values. The following season, grass root surveys were completed and the property was enlarged by the addition of 20 claim units. I I PROPERTY DESCRIPTION a) Location and Access The Cresent Lake property is situated on the north slope of Mt. Kathleen approximately 35 kilometers from Peachland. Access is via a good all weather gravel road (Peachland Main) which merges with Princeton Avenue. At mile 20 km, turn left to the Headwaters Main and follow to km 25.5, then turn left onto the main acces to the property.

4 '*r 4 - h h4;lcn Scale I : 250,000 &hclle I i- t -, I---. r!<!--- ~:il'>",rtrc, i.. _-, , ):tl-n 31

5 b) Topography and Vegetation The claims are centered around what appears as a small cirque basin situated along the north slope terminating at the Trout Creek valley. The basin contains several parallel north- westerly ravines, some of which drain the slope. The southern portion of the property encroaches the Mt. Kathleen summit and consists of sub-alpine to scrub brush vegetation. Towards the bottom of the slope is a mature stand of spruce and Douglas fir. The northern claims largely cover the Trout Creek valley which is swampy, consisting of alder and swamp grass. Generally, the topography is considered steep for the region, with elevations ranging from 4,200 feet to 6,000 feet over a horizontal distance of 1,500 metres. I11 CLAIM INVENTORY Claim Name Record No. Units Record Date Father Mother Crescent Mt. K Mt. K 2 Mt. K 3 Mt. K 4 Mt. K 5 Mt. K 6 Mt. K 7 Mt. K 8 Mt. K Oct. 19/79 Sept. 11/79 July 11/80 July 11/80 July 3/81 July 3/81 July 3/81 July 3/81 July 3/81 July 3/81 July 3/81 July 3/81 Total claims = 72

6 Figure 2 CLkl : 1, IALP

7 IV GEOLOGY a) Regional Geology The property falls within a portion of the Pennask Batholith which appears as a separate later intrusive body. Mt. Kathleen is composed largely of auartz monzonite, quartz monzonite porphyries, and granites which cut the local granodiorites and diorites associated with the Pennask Batholith. To the north (8 km) occurs a large body of andesite and metasediments classified as part of the Nicola group (Upper Triassic). b) Property Geology The two most common rock types on the property are: 1) a very coarse grained granite with abundant auartz, which comes in contact with 2) a fine grained aplite granite to the south. The contact of these units strikes 220 and in the vicinity of this contact occur a series of feldspar porphyry, biotite albite porphyry and trachyte dykes all trending northeast. In the southern most region of the property the dominant rock type is a auartz monzonite which extends up to the Mt. Kathleen summit. Within this unit are zones of feldspar porphyry which host K-feldspar phenocrysts up to 6 cm in size.

8 C) Mineralization Fine grain molybdenite is present in several areas along the main contact zone. In addition, galena-sphalerite-chalcopyrite has also been 'found. Molybdenite - occurs along tight fractures coated on slips and within small quartz stringers. In places the frequency of the quartz veining is intense and forms a stockwork. Potassic flooding and pyrite-sericite is commonly associated with the quartz molybdenite veins. The better Mo values appear within the c.g. granite. Sphalerite-galena-chalcopyrite - these three minerals occur together, hosted in quartz veins and are more predominant in the finer grain granite and just north of the contact region. Pyrite - although pyrite is present, both in veins and disseminated, its abundance is minimal. Flourite - abundant flourite has been found in drill holes and outcrops. Flourite occurs in three colours: white, purple and light green. It is more commonly associated with the sphaleritegalena veining, toward the southern limits of the mineralized zone.

9 DIAMOND DRILLING ~uring August several drill holes were drilled by Maitland Explorations Ltd., using a modified "Longyear 38" rig. Drilling commenced on August 14th, 1981, and continued through 0 to September 3rd, Holes were drilled at -60 to -45 using NQ size coring. All core was logged noting: rock types, alteration, fracture densities, vein structures, and mineralization. All mineralized zones showing sufficient mineralization were assayed for Mo, Cu, Pb, Zn, Ag, by Brenda Mines assay laboratory. a) Description (in brief) Diamond Drill Hole C-81-8 Location: 375N, 2,7503 Bearing: Dip : 230 (S.W.) -BDO Core size: NQ (1 7/8") Hole Depth: m (425 ft.) Rock Type ~eters Rock Type Remarks 0-4 Overburden 4-68 Fine grain granite This unit is extensively weathered to a depth of 60 meters. The weathering occurs along numerous tight fractures which are coated with limonite. Only minor No hosted in quartz sericite veins and as fracture coatings.

10 Meters Rock Type Remarks Lamprophyre dyke Dark green chlorite rich with minor pyrite Andesite dyke Dark green, slightly silicified and slightly brecciated Fine grain granite Slight increase in alteration, which is mainly phyllic and minor potassic along quartz veins. Several small flourite veins. Increase in veining and associated mineralization. Mineralization predominantly fine grained Mo or Pb, Zn, Cu veins which occur as a separate mineralized assemblage. The mineralization well below economic values. Andesite End of hole Slightly silicified, hosting only minor disseminated pyrite and cut by several small flourite veins. ' For further detail read drill logs - Appendix I The C-81-7 drill hole was placed at right angles to a dominant sub-vertical fracture set, which on surface was limonite stained and along which sericite was present. The hole was located well within the main Mo-Pb soil anomaly. The mineralization intersected was disappointingly low, but ehowed that molybdenite was present and was hosted in separate veins independant from the galena, sphalerite and chalcopyrite veins. This would suggest that there were at least two mineralizing phases. It is also felt that

11 this drill hole was located within the pyrite halo and not within the system core. All the core has been stored at the Brenda Mines facilities.

12 APPENDIX I

13 Property Crescent Lake D.D.H. No. C-81-7 D.D.H. Grid Location 375N, 2,750E Elevation Azimuth 230 Core Size NQ Total 'Depth 129.5m (425') I METRES ROCK TYPE ALTERATION & STRUCTURE MINERALIZATION (core description) (associated minerals) MLZN RECOV. OVERBURDEN FINE GRAINED GRANITE Phyllic alt. Bleached, Weathered & broken. sericite along fracs. Weathered limonite. Numerous barren qtz veins. Numerous barren qtz vns. Limonite & man on fracs. Broken core. Weathered. Broken core. 5 cm gouge zone. 10 cm gouge zone. 25 cm gouge zone. Strong. sil core. 35 cm gouge zone. Phyllic alt. Strong sericite. 15 cm gouge zone. Strong sericite. 2 cm gouge zone. 1-3 mrn qtz vn. Trace Mo. Minor py on fracs. 1-2 mm qtz vn. Trace Mo. 2-3 cm qtz vns. weathered, 65O. 1-2 mm atz vn. Trace Mo. Numerous narrow qtz & sericite vns. 2-2 cm qtz vns, 75O & 85O. Pyl

14 i I I f I I I f C I I r. f r I f f I t t4etres ROCK TYPE ALTERATION & STRUCTURE MINERALIZATION (core description) (associated minerals) MLZN RECOV FINE GRAINED GRANITE Phyllic alt. Sericite. 2-2cm tz vns, 8 75O & cm qtz vn, 42O. 1 cm gouge zone. 1-2 mm qtz vn. Trace Mo. Broken core. Sil around vns. 0 5 mm flourite vn cm gouge zone. 1-1 mm MO frac, mm qtz-k-feld vns, 70 & mm Mo frac, 75O. 4-2 to 3 mm qtz, Mo vns, 25O. 3-2 to 3 mm Mo frac:;, 30 & to3mmMo fracs, 35O. 6-2 to3mmpy fracs, 60 & 30. Py frac. Weathered. Minor py. 6-2 mm py MO fracs, 30 & Sev. 2 mm py vns. Trace Mo frac. 5-2 mm py, trace Mo fracs. 2-5 mm py vns, mm tz, trace 8 Mo vn, mm qtz, trace MO vn, 22O. Minor py. Sev narrow flourite vns, weak Mo fracs. Py. 2-3 to 6 mm flourite vns, to3mmMo trace frac. 100%

15 ROCK TYPE & ALTERATION STRUCTURE MINERALIZATION (core description) FINE GRAINED GRANITE Phyllic alt. Sericite. Py. 3-2 mm Mo fracs cm qtz vns 0 trace Mo-K-feld, 40 & Bleached. 8oV. 30 cm gouge zone. Py & minor to trace Mo 3-1 to 2 cm flourite in gouge. 4-2 mm trace Mo frac! & calcite vns, 45O. 3-1 to 4 cm flourite 2-2 mm trace Mo frac & calcite vns, 45O to 4mmpy, Mo & Pb (?I, sphal, qtz vns 5-2 mm Mo trace frac Weathered. 15 cm gouge zone. 1-1 cm flourite vn, 40 Mod py6 1-2 cm py vn, 60. Mod py. 2-2 mm Mo fsacs, 80. Mod py. 2-2 to 10 m qtziomo trace vns. 30 & m M 0 f racs. Mod py. 2-5 mm qtz, trace Mo vns, rnm Mo frac. Strong py. K-feld flooding on qtz vns Py, cal vn, 2 cm. 1-3 mm Mo - gouge frac, 45O. 1-3 Ern py, chlor, cal vn. 30. Modpy. 3-1to 2 mm minor Mo fracs. 2-1 to 2 mm Mo fracs.

16 ROCK TYPE ALTERATION & STRUCTURE MINERALIZATION MLZN RECOV. (core description) (associated minerals) call py vn, 45O. 1-2 mm qtz, Mo vn, t 50. Minor py. FINE GRAINED GRANITE. Phyll alt. Sericite. 2-1 to 2 mm Mo fracs to 1 cm flourite, 80. Broken core. FINE GRAINED GRANITE 10 cm LAMPROPHYRE DYKE. FINE GRAINED GRANITE LAMPROPHYRE DYKE 55O sharp contact. Minor k-feld on vns. Minor k-feld flooding. Sev 2-3 mm flourite vns. 15 cm broken qtz. Chlorite. Calcite vns - Trace py. pods mm qtz vns, minor MO, lo mrn qtz vn, minor Mo, lo mm qtz K-feld, Mo vn, 52O. 5-1 t o 2 mm minor Mc f rac. 1-3 mm qtz, trace Mc vn, mm minor Mo fracs. 2-1 mmmo (?) fracs. 10 cm FINE GRATNED GRANITE 10 cm FINE GRAINED GRANITE ANDESITE is weakly 90 cm ANDESITE. brecciated. Pale green. ANDES ITE Frac Mo (?) in GRANITE Trace py & mang. 2-3 mm flourite vns. 20 cm FINE GRAINED GRANITE 5 cm gouge zone. FINE GRAINED GRANITE Phyllic alt. K-feld Qtz vns, minor py. Weathered. flooding (minor). 10 cm ANDESITE DYKE 3 cm qtz vn. FINE GRAINED GRANITE Phyllic alt. Weakly sil. 1-1 cm qtz, trace Mo vn, 4s0. Broken core. Minor flourite. Minor py.

17 - METRES ROCK TYPE ALTERATION & STRUCTURE MINERALIZATION (core description) (associated minerals) MLZN RECOV FINE GRAINED GRANITE Phyllic alt. Minor py. Broken & weathered. 7-1 cm qtz K-feld trace Mo, cm gouge. 1-1 cm qtz-k-feld Sericite. Minor flourite. K-feld flooding. 10 cm gouge zone K-feld flooding on frac. trace Mo, cm py, 45O. Minor py. 1-2 mm minor Mo frac, 1-3 to 4 mm atz, trace Mo, 30. Minor py. 1-2 mm Mo (minor) frac, 85O. 1-2 mm Mo frac, 85'. 4-2 to 4 mm flourite), 35O. Minor py. 2-2 to 3 mm Mo frac, 85O. 1-8mmM0, qtz, calf lo mrn Mo, cal frac, 85O. 1-5 mm qtz, Cu, py vn, 30. Sev flourite, cal vns. Stockwork qtz vns. 4-3 mm Mo, atz K-feld vns, 30, Mo fracs, 85O to 4 mm qtz, K-feld, Mo vns, 45O. 1-1 to 5 cm qtz, K-feld, Mo vns, to 3 mm Mo fracs, 35O, go0. Stockwork qtz vns to 10 mm qtz 0 K-feld, Mo vns, 30, go0.

18 I I METRES ROCK TYPE ALTERATION & STRUCTURE MINERALIZATION (core description) (associated minerals) FINE GRAINED GRANITE Potassic alt. K-feld Stockwork qtz vns. flooding. 1 cm gouge zone to 8 mm qtz, Mo vns, 30, to 3 mm Mo fracs, 24O, mm MO frac, to 5 mm qtz Mo 6 vns, 40, 70, to 3 INTI qtz, Mo, py vns, 40, 75O mrn call qtz, Mo vn, mm Mo 0 frac, mn: Mo fracs, 75O, go mm pg, qtz, minor Mo vns, 35, 75O. 4-3 py, qtz, Mo vns, 45, mm Mo frac, 52O' 4-3 mm qtz, Mo vns, 35O, cm qtz, Mo (minor) vns. 2-1to 3 mm Mo fracs, 60, 45O. 1-2 mm MO frac, 55O. 3-3 to 4 mm qtz, Plo 0 vns 70, cm qtz, minor Mo vn, cm qtz, trace Mo vn, 30, cm flourite vn, cm flourite vns, to2mm minor Mo fracs, 35O, cm qtz, py, MO vns, 55O cm flourite vn, to 2 mm Mo fracs, 80. MLZN RECOV. 100

19 I I r I~~FST RE s ROCK TYPE ALTERATION & STRUCTURE MINERALIZATION (core description) (associated minerals) MLZN RECOV FINE GRAINED G W I T E Potassic alt, K-feld 3-1 mm Mo frac. 2-3 to 4 mm Mo, Pb, stz vns, 75O. 1-3 rnrnfm frac, 75O. 3-1 mm Mo, qtz vn. 4-1 to 2 mm Mo fracs, 5 cm gouge zone. 60, 75O. 2-3 mm qtz, Mo vn, to 3 mm qtz, Mo vns 75O. 1-1to 4 cm qtz, cal, minor Mo vn, 85O. 4-3 to 6 mm qtz, Mo vns, 3s0, 7s0, lo cm flourite vn. FINE GRAINED GRANITE 10 cm LAMPROPHYRE Mo vn, flour 1-2 cm qtz, py,, mino:: vns. 2-2 to 3 Mo gouge fracs, cm flourite vns, 1-2 mm Mo, qtz vn, 35O. 75O. 1-2 cm flour, cal, qtz, Pb, Zn vns, 40. Cu? cm flourite 2-1 to 2 mm Pb or vns, 35O. MO, qtz vns. M O ~ py. 3-2 to 4 mm qtz, py, Mo or Pb vns, cm qtz, Mo or Pb vns, 85O. 1-2 to 5 cm flour vns, go0. FINE GRAINED GRANITE 3-5 mm flourite vns, 45O. Stockwork qtz. 3-2 to 3 mm qtz, Mo or Pb vns, 40, 75O. 3-2 to 3 qtz, Mo, py vns,

20

21 APPENDIX I1

22 STATEMENT of OUALIFICATIONS I, Arnold R. Pollmer of Peachland, Province of British.Columbia, do certify that$ 1) I have been employed as a geologist by Noranda Mines Limited from December 1973 to June 1977; I am presently employed as the chief geologist by Brenda Mines Ltd. 2) I am a graduate of the University of Wisconsin with a Bachelor of Science Degree in Geology (1972). 3) I am a member of the Canadian Institute of Mining and Metallurgy. 4) I am a fellow of the Geological Association of Canada.

23 APPENDIX I11

24 Statement of Costs Labour - 3 $120/day - 3 $80/day Transportation - 3 $25/day Diamond Drill Costs Accommodation & Meals - 3 $30/man day for 7 men Report preparation Total

25 L MAITLAND EXPLORATIONS LTD. DIAMOND DRILLING N? 3075 L PHONE (604) SITE 17. COMP. 6. R.R. 3 VERNON. B.C. VlT 6L6 L,*o: L h BRENDA MINES LTD. P.O. BOX 29 PEACHLAND, B.C. VOH 1x0 m: Mr. Arnold Polher P.O. #J-3199 ~pt-r C-31-7 REF. NO. DATE CHARGE DESCRlPTlON AMOUNT /08/24 Footage: Hole #C ' N.W. $13.50/ (90,~.-- N.Q. $14.90/ Field Cost Rate: Labour - '26 $28.75/ Equiprrent - Field Cost Rate - Cat - 8 Hours $15.25/ Cat - 2 Hours $44.50/ Drill - 4 Hours $17.25/ Drill - 9 Hours $28.75/ Footage: Hole #C ' N.Q. $14.90/ Field Cost Rate: Labour - 14 $28.75/ Eyiprrent - Field Cost Rate - Cat - 9 Hours $15.25/ Cat - 1 Hour $44.50/ Drill - 5 Hours $17.25/ Drill - 2 Hours $28.75/ Footage: Hole #C-81-7 (280' N.Q. $14.90/ \- Wra/Contract Charges: Eqxditing Services from Vemon to Crescent Labom - $13.OO/I-k. $ Holiday 8% 1.04 Benefits.96 SUB X 10 Hours SUB Plus ' 'IWTAL

26

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