NTS 104A04 AMENDED NOVEMBER 3, August, Prepared For: Auramex Resource Corp. 750 Grand Boulevard North Vancouver, B.C.

Transcription

1 Results of Mobile Metal Ions Process (MMI-M) Soil Geochemical Orientation and Exploration Surveys on the Bear River and Gravel North Target Areas (Claims and ), Auramex Resource Corp., Stewart Area, Northwestern British Columbia NTS 104A04 AMENDED NOVEMBER 3, 2012 August, 2011 Prepared For: Auramex Resource Corp. 750 Grand Boulevard North Vancouver, B.C. V7L 3W4 Prepared By: 50 Dobals Road North Lac du Bonnet, Manitoba, Canada R0E 1A0 Tel./Fax. : Cell: mfedikow@shaw.ca

2 Accurate and Precise Geochemistry In Hydrocarbon and Mineral Exploration TABLE OF CONTENTS TABLE OF CONTENTS... 2 LIST OF FIGURES... 3 LIST OF TABLES... 3 LIST OF APPENDICES... 3 EXECUTIVE SUMMARY... 4 INTRODUCTION... 5 TERMS OF REFERENCE... 7 PROPERTY DETAILS... 8 Topographic Relief and Cultural Features... 8 Geology and Mineral Deposits of the Area... 8 Location of Survey Area Claims, Significant Mineral Deposits and VTEM Anomalies... 8 PURPOSE OF THE SURVEY SAMPLE COLLECTION AND ANALYSIS DATA TREATMENT AND PRESENTATION RESULTS Data Reproducibility-Analytical Duplicates Standard Reference Materials Analytical Blank Replicates Data Description Data Distribution Descriptive Statistics METHOD OF INTERPRETATION Spearman-Rank Correlation Coefficient Matrix RESPONSES IN THE ORIGINAL BEAR PROPERTY MMI-M SURVEY Results of Vertical Profiling Precious Metals (Ag, Au) Site B Base Metals: Site E Precious Metals: Site E Base Metals: Discussion of Vertical Profiles Assessment of Sample Collection ORIENTATION SURVEY-MOUNT MORGAN RESOURCES LTD Auramex Gravel North and Bear River Vertical Profile Plots Recommendations for the BRGN Exploration Survey Bubble Plots and Gridded Data Plots Precious Metal Responses OBSERVATIONS and DISCUSSION CONCLUSIONS AND RECOMMENDATIONS STATEMENT OF COSTS CERTIFICATE of AUTHOR

3 Accurate and Precise Geochemistry In Hydrocarbon and Mineral Exploration LIST OF FIGURES Figure 1. Location map for the Bear property and the Bear River-Gravel North target area Figure 2. Claim location, mineral deposits and VTEM anomalies in the survey area Figure 3. Bear property Bear River-Gravel North helicopter-borne VTEM anomaly, claim locations and target for Mobile Metal Ion soil geochemical surveys Figure 4. Simple linear regression analysis for MMI-M analytical duplicates (Ag, Au, Cd, Cu, Mo, Ni, Pb and Zn) Figure 5. Histograms for the MMI-M element suite used in the BRGN survey Figure 6. Tukey box plots for the MMI-M element suite used in the BRGN survey Figure 7. Results of vertical profiling for Ag and Au, site B, original MMI-M survey Figure 8. Results of vertical profiling for base metals Cu, Pb and Zn, site B Figure 9. Results of vertical profiling for site E precious metals Ag and Au Figure 10. Results of vertical profiling for base metals Cu, Pb and Zn, site E Figure 11. VTEM survey results and the area of anomalous conductivity interpreted to be related to a conductive clay-rich sediment. Mobile Metal Ion sample locations (A through I) are plotted as green circles Figure 12. Results of vertical profiles, Gravel North precious metals (Ag, Au) and base metals (Cu, Mo, Zn, Sb, Pb) Figure 13. Results of vertical profiling, Bear River precious metals (Ag and Au) and base metals (Cu, Mo, Pb, Zn, Sb) Figure 14. Sample label and location map with bubble, gridded data and dot plots for precious and base metals in the Bear River and Gravel North MMI-M survey areas LIST OF TABLES Table 1. Descriptive statistical summary for the MMI-M element suite used in the BRGN survey Table 2. Complete Spearman Rank Correlation Coefficient Matrix, BRGN MMI-M survey element suite Table 3. Summary of significant precious and base metal responses with UTM coordinates from the BRGN survey area LIST OF APPENDICES Appendix 1: Auramex Bear River-Gravel North Mobile Metal Ions (MMI-M) Orientation and Exploration Survey Data Appendix 2: Auramex Mobile Metal Ions MMI-M Orientation Survey Analytical Certificates Appendix 3: Auramex Mobile Metal Ions MMI-M Exploration Survey Analytical Certificates

4 Accurate and Precise Geochemistry In Hydrocarbon and Mineral Exploration EXECUTIVE SUMMARY The Auramex Mobile Metal Ions soil geochemical survey on the Bear River-Gravel North property has successfully delineated multi-sample, high-contrast base and precious metal anomalies. These anomalies are located over an area of high conductance delineated by an earlier helicopter-borne VTEM geophysical survey. The EM anomaly was attributed to the presence of conductive clay-rich sediment. It seems more likely that the MMI anomalies can be attributed to base metal mineralized zones and that these anomalies display spatial variability that is consistent with metal zonation in a hydrothermally-deposited zone of base and precious metal mineralization. Sampling materials are demonstrated to be acceptable for documenting MMI anomalous responses and the data quality is interpreted to be excellent. 4

5 Accurate and Precise Geochemistry In Hydrocarbon and Mineral Exploration INTRODUCTION The exploitation of mineral commodities in the near-surface geological environment has become increasingly difficult due to the exhaustion of mineralization exposed at surface and the mantling of prospective bedrock by glacially transported till and its derivatives. Thick glaciofluvial and glaciolacustrine sediments topped by organic deposits make mineral exploration in these terrains challenging. For this reason a plethora of innovative exploration geochemical selective and partial digestions, coupled with state-of-the-art instrumentation capable of measuring concentrations in the parts per billion (ppb) and sub-parts per billion ranges, have been developed. These techniques offer the explorationist tools to "see through" overburden and derive useful mineral exploration data for integration with geology and geophysics and ultimately for drill-testing multivariate anomalies. Disrupted overburden, such as that observed with logging practices (scarification), tends to complicate MMI responses although modified sampling practices can be adopted to rectify this disturbed environment. Areas affected by landslide are also complicating factors. The proprietary Mobile Metal Ions Process (MMI) soil geochemical technique has been utilized on a wide range of commodity types from base and precious metals to diamonds worldwide. The Technology has also been utilized to map bedrock lithologies in overburden covered terrain. The Process is based upon proprietary partial extraction techniques, specific combinations of ligands to keep metals in solution, and relies on strict adherence to sampling protocols usually established during an orientation program. Geochemical data resulting from MMI analysis of improperly collected soils cannot be ameliorated with univariate and/or multivariate statistical and graphical solutions. 5

6 Accurate and Precise Geochemistry In Hydrocarbon and Mineral Exploration The recognition of anomalies in geochemical data has progressed from simple visual inspection in small data sets to multivariate, parametric and non-parametric or robust statistical methods for large datasets usually extracted from regional geochemical surveys. Derived parameters from these statistical exercises, such as factor scores or discriminant functions, have been successfully utilized in reducing a large number of potentially useful variables to a select few variables that identify and localize anomalous geochemical signatures. These statistical approaches have been required to manipulate accurate and precise, low-cost, multi-element geochemical data. The MMI technology uses a different approach to exploration geochemistry by analyzing soils for a select few commodity elements upon which to base property evaluations. Having stated this, the MMI-M multi-element suite that was utilized to analyze inorganic soils from the 2011 Bear River-Gravel North property surveys comprises analyses for 53 elements although only 8 elements were chosen for analysis in the Bear River-Gravel North ( BRGN ) survey and include Au, Ag, Cu, Pb, Zn, Cd, Mo, and Ni. The 53 element suite consists of a multi-element suite that reports ppb and sub-ppb analyses for base and precious metals, pathfinder elements for these commodities, as well as elements useful for mapping bedrock geology obscured by glacial overburden and its derivatives. A small number of elements in this package report in the ppm concentration range (Al, Ca, Mg, Fe, K, Mn, and P). The large number of elements in the database provides an opportunity to assess an area of interest for a wide range of metallic mineral deposits with only minor drawbacks in terms of lower limits of determination. The specific details of this assessment are described below. 6

7 Accurate and Precise Geochemistry In Hydrocarbon and Mineral Exploration TERMS OF REFERENCE The author of this report was contracted by Mr. Wayne Crocker of AURAMEX Resource Corp.ls to undertake a Mobile Metal Ion soil geochemical survey on their BRGN property in the Stewart area of British Columbia, to interpret the data and to provide an interpretation that includes recommendations for diamond drilling. The surveys were undertaken to assess helicopter-borne VTEM and cesium magnetometer geophysical anomalies on the property for MMI-M geochemical signatures related to stratigraphically/structurally-controlled base and precious metal mineralization in deep overburden scenarios. Geophysical interpretation of the VTEM anomalies suggested conductive overburden as the source. Soil samples from the property were collected in three stages and each stage of sampling with results are reported here. Stage 1 was a preliminary attempt at determining the optimum sampling depth for a larger exploration survey and these samples were collected directly over a VTEM anomaly. No background samples were collected. was not involved in Stage 1 sampling. Stage 2 sampling was an orientation survey undertaken by Mount Morgan field technicians with the express purpose of determining optimum sample depths. Background surveys were part of this program. Stage 3 was also undertaken by Mount Morgan Resources and included the analysis of samples collected during Stage 2 but only from the optimum depths as determined from the Stage 2 orientation survey. All sampling in stages 2 and 3 was according to protocols established in previous orientation and exploration surveys undertaken in the area by the author of this report. This report represents an interpretation of work undertaken in and 2011 and is completed with recommendations for follow-up exploration. 7

8 Accurate and Precise Geochemistry In Hydrocarbon and Mineral Exploration PROPERTY DETAILS Topographic Relief and Cultural Features Topographically, both blocks of the Bear Property exhibit a high relief, with an elevation ranging from 43 to 913 m above sea level. The property is located between glaciers in the area with numerous rivers and streams connecting various small water features. The property occurs within NTS (National Topographic Survey) of Canada sheet 104A04. Geology and Mineral Deposits of the Area Geologically the survey blocks lie within a belt of Jurassic volcanic rocks of Stewart Area. This belt is host to numerous gold and gold-silver deposits and occurrences in a variety of geological settings. Possible deposits types are sub-volcanic Cu-Ag-Au (As-Sb) and polymetallic veins Ag-Pb-Zn +- Au. These deposits consist of: 1) Disseminated to near-solid lenses, pods and stringers of galena, sphalerite, chalcopyrite and pyrite; 2) Numerous parallel to sub-parallel fissure filled argentiferous quartz-sulphide veins; 3) Weakly mineralized and sericite altered andesitic rocks with minor fine grained pyrite. Deposits appear to be dominantly structurally controlled, with alteration restricted to the immediate area of inferred fault/fracture zones. Location of Survey Area Claims, Significant Mineral Deposits and VTEM Anomalies Figure 1 provides the location of the Bear property (BRGN) and Figures 2 and 3 the details of where the MMI surveys were undertaken and the relationship between the VTEM helicopterborne electromagnetic anomalies, significant mineral deposits and topography/physiography. 8

9 Accurate and Precise Geochemistry In Hydrocarbon and Mineral Exploration Figure 1. Location map for the Bear property and the Bear River-Gravel North target area. 9

10 Accurate and Precise Geochemistry In Hydrocarbon and Mineral Exploration Figure 2. Claim location, mineral deposits and VTEM anomalies in the survey area. 10

11 Accurate and Precise Geochemistry In Hydrocarbon and Mineral Exploration Figure 3. Bear property Bear River-Gravel North helicopter-borne VTEM anomaly, claim locations and target for Mobile Metal Ion soil geochemical surveys. 11

12 Accurate and Precise Geochemistry In Hydrocarbon and Mineral Exploration PURPOSE OF THE SURVEY The BRGN orientation and exploration surveys undertaken by AURAMEX were designed to assess the delineated VTEM electromagnetic anomalies within the survey area for the presence of a geochemical signature related to base and precious metal mineralization and thereby to provide a tool for focused exploration and drill testing. The depth of high-contrast residence sites for base and precious metals in the soil profile defined by the orientation survey phases conducted for this survey will also provide sampling protocols for future MMI surveys. The survey undertaken by Auramex was designed to assess a 1300 m by 400 m VTEM airborne EM anomaly originally interpreted as the geophysical signature of clay-rich sediment. Recently the area has been appreciated for the potential to discover of base metal massive sulphide-type mineralization although overburden cover has hindered exploration by blanketing outcrop exposure and modifying geophysical responses in some areas. The MMI survey is an attempt to provide a tool for focused exploration by assessing the nature of the VTEM anomaly. 12

13 Accurate and Precise Geochemistry In Hydrocarbon and Mineral Exploration SAMPLE COLLECTION AND ANALYSIS The original MMI survey at the Bear property was based upon the collection of 34 soil samples from eight sites within the limits of the VTEM airborne anomaly. Samples were collected from depths of 0-10 cm, cm and cm below the point at which soil formation is initiated in this environment, although not all of these depths were achieved at each site. Samples were collected according to protocols developed for orientation surveys within the landscape environment that exists at the BRGN area. Sample descriptions were noted at each site. Sample locations with UTM coordinates are presented in Appendix 1. Appendix 2 contains the analytical certificates from SGS Laboratories (Toronto, Ontario) for the orientation survey. For phases 2 and 3 a total of 44 samples were selected for analysis and plotting. Appendix 3 contains the analytical certificates from SGS Laboratories (Toronto, Ontario) for the exploration survey. Sampling was done by D. Lipinski and P. Shymanovich of between May 12 and May 20, The surveys were supervised by M. Fedikow, Ph.D. P.Eng. P.Geo. C.P.G. In MMI surveys there are some general approaches that are used to guide sample collection including preferred depths of sampling and these are described briefly here. Additional information is also available from the SGS Mineral Services website ( The intellectual property that is MMI Technology is the property of SGS and as such SGS Mineral Services is the sole provider globally of this service. Soil samples, each weighing approximately 250 grams, are usually collected at variable sample spacing along single transects over known mineralized zones or extrapolated trends of these zones. Generally, 25-m stations in precious metal exploration and up to 50 m in the case of base 13

14 Accurate and Precise Geochemistry In Hydrocarbon and Mineral Exploration metals are the routine spacing. Sample spacing should be established on the basis of a bestestimate of the likely target being sought with estimates from historical data or exploration results from nearby programs. Initially, samples are often collected at a closer spacing until it is determined that a larger spacing is appropriate to the target being sought. At the BRGN property soils were sampled at variable depths. Orientation survey samples in Stages 1 and 2 were collected at 10 cm intervals from the walls of a hand dug pit. Where possible four such samples were collected from each pit giving a vertical profile of 40 cm below the organic-inorganic soil interface. The sample collected from each 10 cm interval is a continuous 10 cm long plug of sediment or a continuous vertical channel of sediment. Samples are bagged on site without preparation and or drying and shipped to SGS Laboratories (Toronto, Ont.) for MMI-M analysis. The MMI-M is a ph-neutral extraction with analytical finish by inductively coupled plasma-mass spectrometry (ICP-MS). 14

15 Accurate and Precise Geochemistry In Hydrocarbon and Mineral Exploration DATA TREATMENT AND PRESENTATION In exploration surveys where sampling and analytical protocols have been determined by an orientation survey, analytical data is examined visually for analyses less than the lower limit of detection (<LLD) for ICP-MS. Data <LLD are replaced with a value ½ of the LLD for statistical calculations and graphical representation. For most exploration surveys, MMI data is plotted as response ratios. For the calculation of response ratios the 25th percentile is determined using the software program SYSTAT (V13) and the arithmetic mean of the lower quartile used to normalize all analyses. The normalized data represent "response ratios" which are then utilized in subsequent plots. Zeros resulting from this calculation are replaced with 1. Response ratios are a simple way to compare MMI data collected from different grids, areas and environments from year to year. This normalized approach also significantly removes or "smoothes" analytical variability due to inconsistent dissolution or instrument instability. For the BRGN surveys the interpretation is based on both concentration and response ratios. Analytical data as received from SGS Mineral Services and Mainstream is presented in Appendix 1. Analytical data from analytical duplicates, replicate analyses of standard MMI reference materials and analytical blanks are given in Appendix 2. The 25 th percentiles and backgrounds used to calculate response ratios are included in Appendix 2 with the edited analytical data. The variation in concentration of MMI-M suite elements at every phase of this program on the BRGN property is discussed in a geochemical narrative based on bubble plots produced with IOGAS software. 15

16 Accurate and Precise Geochemistry In Hydrocarbon and Mineral Exploration RESULTS Data Reproducibility-Analytical Duplicates Standard Reference Materials A review of the QC analytical data in Appendix 2 indicates there is excellent agreement of the replicate analyses for the standard reference materials MMISRM16 and AMIS0169 with accepted or recommended values. In the replicate analyses for 2011 data in standard reference material MMISRM16 there is some minor variance for the element Pb. It should be emphasized that these variations are minimal and interpreted to be insignificant particularly in light of only 2 replicate analyses of standard MMISRM16. The results for analytical duplicates are presented below as simple linear regression plots (Figure 4). Although some outliers are indicated a review of the Cook s Distance parameters indicates the variance is minimal. 16

17 Accurate and Precise Geochemistry In Hydrocarbon and Mineral Exploration Figure 4. Simple linear regression analysis for MMI-M analytical duplicates (Ag, Au, Cd, Cu, Mo, Ni, Pb and Zn). Note: Cook's distance measures the effect of deleting a given observation. Data points with large residuals (outliers) and/or high leverage may distort the outcome and accuracy of a regression. Points with a large Cook's distance are considered to merit closer examination in the analysis. 17

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21 Accurate and Precise Geochemistry In Hydrocarbon and Mineral Exploration Analytical Blank Replicates A review of the replicate analyses of the analytical blanks (Appendix 2) indicates no contamination is present in the blanks. Significant laboratory-based contamination is not being introduced into the sample and therefore bona fide MMI anomalies will not be obscured by contamination of the samples. Data Description The BRGN datasets are characterized by very few analyses that are less than the lower limit of determination ( <LLD ). This is based upon the analysis of eight elements (Cu, Pb, Zn, Cd, Au, Ag, Ni and Mo) in the samples. In datasets where the entire suite of MMI-M elements is available it is not uncommon to see a number of elements that are at or below the LLD in many or all samples analyzed. These include elements such as As, Au, Bi, Cr, Cs, Hg, In, Li, Mo, Pd, Pt, Sb, Sn, Ta, Te, Tl and W. These elements are typically less mobile than Cu or Zn and their presence in measurable quantities in a small number of samples is testament to this. The high percentage of samples with <LLD for these metals is not surprising given their very low mobility in the surficial/secondary environment. However, any MMI-M analysis for Pd or Pt that is >LLD should be reviewed with care for its overall significance in the survey. An MMI-ME analysis for Pd and Pt above the LLD should be field checked for possible association with platinum group metal geological environments. It is worth noting that the diagnostic signal of a significantly mineralized zone will generally produce moderate- to high-contrast apical responses over the target; however, away from the mineralization at background locations there may be no trace of the presence of a specific metal in the analysis. This is another consideration when viewing MMI data-the presence of significant numbers of elements < the LLD is not necessarily cause for concern or that the MMI extraction is not working or has been buffered by soil composition. The MMI 21

22 Accurate and Precise Geochemistry In Hydrocarbon and Mineral Exploration process is designed to only extract metals that are moving from source to surface and characteristically report metal contents in low ppb concentrations. Data Distribution Histograms are presented below (Figure 5) for the suite of eight elements that were analyzed in the BRGN survey. The data is positively skewed and indicative of a large number of analyses at or below the LLD for the ICP-MS analytical technique. The histograms also indicate the presence of strongly elevated analyses at the tail of the distribution. It is not uncommon for data that occurs in this region of the histogram to be indicative of an anomalous population. Figure 5. Histograms for the MMI-M element suite used in the BRGN survey. 22

23 Accurate and Precise Geochemistry In Hydrocarbon and Mineral Exploration When these same eight elements are displayed on a Tukey box plot (common Y axis; Figure 6) it becomes possible to examine the range in concentration for each element in comparison to one another. The results are shown below and illustrate the wide range of Cu values in the MMI data from the property. The magnitude of the various elements present in the dataset can be summarized as Cu>>>Zn>Ni>Pb>Cd>Ag>Au. Figure 6. Tukey box plots for the MMI-M element suite used in the BRGN survey. Descriptive Statistics Descriptive statistics are presented below for the eight elements from the BRGN MMI-M survey and quantify the range in concentration of these MMI-M suite elements. The range in concentration for the various elements depicted in the Tukey Box Plots above is mirrored by the 23

24 Accurate and Precise Geochemistry In Hydrocarbon and Mineral Exploration standard deviations reported for the elements. In this instance the largest range in concentration (Cu) is also accompanied by the largest standard deviation. Table 1. Descriptive statistical summary for the MMI-M element suite used in the BRGN survey. 24

25 Accurate and Precise Geochemistry In Hydrocarbon and Mineral Exploration METHOD OF INTERPRETATION Multivariate statistical and graphical techniques were not utilized for the interpretation of MMI-M data in the BRGN survey interpretations. A simple visual approach was used. The MMI-M data was examined for anomalous spikes or groups of elevated responses for single and/or coincident elements. Element groupings such as Au-Ag, Au-Ag-Pd, Zn-Cd, Ni-Co, Ni-Co-Ag and Ni-Cu all have relevance to underlying geological conditions and their contained mineralization and are used to assist the rankings of any particular MMI response in terms of follow-up (Table 1). When concentration-only data is reviewed unique spikes or anomalous responses are assessed. When response ratios are used there are general guidelines brought to bear on the interpretation. Generally, a response ratio of 1RR-10RR is generally interpreted as little more than background, 11RR-20RR is of limited interest, >20RR or 20 times background is an initial indication of a low-contrast anomalous response although this "threshold" is not universal. A response of between 20RR and 50RR is used as a moderate response with RR>50 being referred to as high-contrast. Often, pattern recognition in the interpretation of geochemical data is paramount. Spearman-Rank Correlation Coefficient Matrix The MMI-M multi-element geochemical data derived from the SL survey was assessed with a Spearman-Rank correlation coefficient matrix. This assessment permits the determination of significantly correlated element pairs and allows the recognition of anomalous geochemical responses related to mineralization. In addition, the approach is an indirect method of assessing analytical quality. The Spearman-Rank matrix is presented below in Table 2. 25

26 Accurate and Precise Geochemistry In Hydrocarbon and Mineral Exploration Table 2. Complete Spearman Rank Correlation Coefficient Matrix, BRGN MMI-M survey element suite. AG AG AU CD CU MO NI PB ZN AU CD CU MO NI PB ZN Review of the Spearman Rank matrix indicates the BRGN dataset is characterized by significant base and precious metal sulphide mineral-related inter-correlations. The sulphide mineral assemblage is typified by significantly elevated correlations for a number of elements that include Au-Ag, Cu-Mo and Cu-Ni; Zn-Cd, Ni-Cd and Mo-Ni. All of these associations reflect the likely presence of base and precious metal mineralization indicators and possibly mafic-ultramafic geological environments as evidenced by the Ni-Cu association. Nickel can also be an indicator of mafic-ultramafic lithologies. The correlation coefficient r for the Cd-Zn doublet (0.596) is indicative of the geochemical signature of bedrock-hosted sphalerite mineralization. This correlation is present in the BRGN MMI-M data and globally has become a general prerequisite for interpreting the MMI Zn responses as bedrock hosted. 26

27 Accurate and Precise Geochemistry In Hydrocarbon and Mineral Exploration RESPONSES IN THE ORIGINAL BEAR PROPERTY MMI-M SURVEY Response ratios were not calculated for data supplied by Auramex owing to the small number of samples. Generally, a minimum of 20 samples should be used for this purpose. Results for the important commodity elements Au, Ag, Cu, Pb and Zn are presented as vertical single element bar charts accompanied by a geochemical narrative. The sites selected for detailed examination include Sites B and E where three 10 cm vertical profile samples were successfully collected at each site. Results of Vertical Profiling Precious Metals (Ag, Au) A review of the vertical profiles for both Au and Ag at Site B indicate a steadily increasing concentrations of both elements in the 0-10 cm through to the cm sample. The optimum sampling depth has not been identified by the current sampling plan although maximum responses for these elements is present at cm and this would be the preferred depth of sampling in the absence of any additional sample collection. Profiles for Au and Ag are given below in Figure 7. 27

28 Accurate and Precise Geochemistry In Hydrocarbon and Mineral Exploration Figure 7. Results of vertical profiling for Ag and Au, site B, original MMI-M survey. Site B Precious Metals: Site B Base Metals: Similar to the results obtained for Au and Ag those for Cu indicate a steadily increasing concentration in Cu soil contents with depth (Figure 8). This pattern is not consistent for either Pb or Zn with very strong Pb and Zn responses in the 0-10 cm and cm sample intervals although there is very little difference in terms of concentration in Pb contents between the three sample intervals. The elevated Zn in the 0-10 cm interval is unusual and may signal the incorporation of fine-grained well-humified organic material in the sample. Results of vertical profiling for base metals, sites B and E. 28

29 Accurate and Precise Geochemistry In Hydrocarbon and Mineral Exploration Figure 8. Results of vertical profiling for base metals Cu, Pb and Zn, site B. Site E Precious Metals: A variable response is obtained for the precious metals at Site E versus that obtained for Site B with maximum responses for Ag occurring in the 0-10 cm and cm sample intervals. Maximum responses for Au are obtained in the 0-10 cm and cm sample intervals (Figure 9). The cause for this between-site variability is unknown. 29

30 Accurate and Precise Geochemistry In Hydrocarbon and Mineral Exploration Figure 9. Results of vertical profiling for site E precious metals Ag and Au. Site E Base Metals: The results for the base metals Cu, Pb and Zn are consistent and agree with the results for Au and Ag at Site B. A steadily increasing Cu, Pb and Zn response is obtained between samples at 0-10 cm and cm with the peak at cm. The absolute concentrations for the base metals are increased substantially at the deeper level of the soil profile (Figure 10) and are interpreted to be uncharacteristically elevated if the conductive mass at depth on the property is a clay layer. 30

31 Accurate and Precise Geochemistry In Hydrocarbon and Mineral Exploration Figure 10. Results of vertical profiling for base metals Cu, Pb and Zn, site E. Discussion of Vertical Profiles There is a consistent response for Au and Ag at Site B and a similar pattern of response in the vertical profile for Site E in Cu, Pb and Zn. The reason(s) for the lack of consistency in the patterns of response for Site B Pb and Zn and Site E Ag and Au are unknown. 31

32 Accurate and Precise Geochemistry In Hydrocarbon and Mineral Exploration Despite these inconsistencies the most representative sample collection depth would appear to be between 10 and 30 cm based on the Auramex data from Block 12 on the Bear property. Expanding the sample depth to incorporate samples from two separate depths will ensure that no anomalous response is missed and that shallower soil profiles on the property can be sampled where otherwise they might be missed if a deeper sample location such as cm was the target. Assessment of Sample Collection A total of eight sites have been sampled to date. These sites were all situated directly over the large VTEM anomaly defined on the property (see Figure 11). This approach has been successful in determining the optimum depth for sample collection in this landscape environment however the nature of the conductive material or source region is difficult to assess because samples were not collected outside of the anomalous area. The effect of this restricted sampling will be to reduce the contrast between anomalous and background responses and accordingly the calculation of response ratios will be self-defeating. The magnitude of the responses for the base metals and Ag at Sites B and E are suggestive of base metal and associated precious metal mineralization. 32

33 Accurate and Precise Geochemistry In Hydrocarbon and Mineral Exploration Figure 11. VTEM survey results and the area of anomalous conductivity interpreted to be related to a conductive clay-rich sediment. Mobile Metal Ion sample locations (A through I) are plotted as green circles. 33

34 Accurate and Precise Geochemistry In Hydrocarbon and Mineral Exploration ORIENTATION SURVEY-MOUNT MORGAN RESOURCES LTD. Auramex Gravel North and Bear River Vertical Profile Plots Gravel North: All eight important commodity elements are maximized at deeper levels in the soil profile, primarily between cm but also cm with the exception of Pb which is highest between 0 and 10 cm (Figure 12). Figure 12. Results of vertical profiles, Gravel North precious metals (Ag, Au) and base metals (Cu, Mo, Zn, Sb, Pb). 34

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37 Accurate and Precise Geochemistry In Hydrocarbon and Mineral Exploration Bear River: Copper, Mo and Sb are maximized in samples collected between 30 and 40 cm whereas Zn and Pb are highest in the 0 to 10 cm and 10 to 20 cm samples. Gold and Ag have peak concentrations between 10 and 20 cm (Figure 13). 37

38 Accurate and Precise Geochemistry In Hydrocarbon and Mineral Exploration Figure 13. Results of vertical profiling, Bear River precious metals (Ag and Au) and base metals (Cu, Mo, Pb, Zn, Sb). 38

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41 Accurate and Precise Geochemistry In Hydrocarbon and Mineral Exploration Recommendations for the BRGN Exploration Survey The upcoming exploration survey should be based on sample collection between 20 and 30 cm. This will encapsulate most of the strongly elevated base and precious metal signatures in the survey area. The variability in the vertical profile is of some concern but may be related to overbank sedimentation in the areas close to the Bear River. This will disturb the vertical differentiation inherent in mature sediments. Bubble Plots and Gridded Data Plots The variation in concentration and the resulting morphologies of anomalous responses in the MMI-M data from the BRGN survey is described in the following section. The areal variability within the data is examined with bubble plots depicting the variation of eight MMI-M elements in sampled areas on the property. These plots are supplemented with gridded data plots which highlight anomalous responses and thereby focus follow-up exploration. Both types of plots were 41

42 Accurate and Precise Geochemistry In Hydrocarbon and Mineral Exploration produced with IOGAS software. The samples with the highest element responses are presented below and identify those sites where high-contrast responses have been documented. Precious Metal Responses Gold and silver precious metal responses are present at the western end of the east-west sampling transect at UTM northing 6,209,000. These anomalies are coincident, multi-sample and moderate- to high-contrast representing a good follow-up exploration target for precious metals. Single sample elevated Au responses are present elsewhere in the survey area. The most significant responses accompanied by UTM coordinates are presented in Table 3 for precious and base metal responses. Base metal responses indicate the presence of metal zonation within the VTEM conductive anomaly with coincident Zn and Mo responses occurring on the transects between UTM northing 6,209,000 m and 6,209,125 m. Peak Pb responses are offset to the south of the Zn-Mo anomaly and Cu is offset to the west. These anomalous responses are depicted in Figure 14. The peak anomalies are focused by the gridded data plots. 42

43 Accurate and Precise Geochemistry In Hydrocarbon and Mineral Exploration Table 3. Summary of significant precious and base metal responses with UTM coordinates from the BRGN survey area. ANALYTE UTM East UTM North Au (ppb) BGO BGO BGO BGO BGO BGO BGO BGO BGO BGO BGO BGO ANALYTE UTM East UTM North Ag (ppb) BGO BGO BGO BGO BGO BGO BGO BGO BGO BGO BGO BGO ANALYTE UTM East UTM North Mo (ppb) BGO BGO BGO BGO BGO BGO BGO

44 Accurate and Precise Geochemistry In Hydrocarbon and Mineral Exploration BGO BGO BGO BGO BGO ANALYTE UTM East UTM North Ni (ppb) BGO BGO BGO BGO BGO BGO BGO BGO BGO BGO BGO BGO BGO BGO ANALYTE UTM East UTM North Cu (ppb) BGO BGO BGO BGO BGO BGO BGO BGO BGO BGO BGO BGO BGO BGO

45 Accurate and Precise Geochemistry In Hydrocarbon and Mineral Exploration ANALYTE UTM East UTM North Pb (ppb) BGO BGO BGO BGO BGO BGO BGO BGO BGO ANALYTE UTM East UTM North Zn (ppb) BGO BGO BGO BGO BGO BGO BGO BGO BGO BGO

46 Accurate and Precise Geochemistry In Hydrocarbon and Mineral Exploration Figure 14. Sample label and location map with bubble, gridded data and dot plots for precious and base metals in the Bear River and Gravel North MMI-M survey areas. 46

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57 Accurate and Precise Geochemistry In Hydrocarbon and Mineral Exploration OBSERVATIONS and DISCUSSION The BRGN MMI-M survey has documented the presence of elevated base and precious metal anomalies on the property. The data, presented as concentration bubble plots and gridded data plots depicts single- and multi-sample anomalies based on one or more elements. Very highcontrast Zn, Mo, Cu, and Ni base metal anomalies are present but in different portions of the survey area and likely indicates bedrock-hosted metal zonation. This style of zonation is commonly recognized in MMI data when surveys are undertaken in and around base metal mineralization and associated precious metal mineralization. The Ag and Au anomalies are displaced to the west of the Zn-Mo anomalies and are closely associated with the Cu anomalies. These geochemical features are typical responses in MMI survey data undertaken around base metal and associated precious metal mineralization and have been documented scores of times in various geochemical surveys in a variety of climatic and geological environments worldwide. Accordingly, the source of these anomalies would seem to be more likely related to a buried mineralized zone rather than a conductive clay layer. The solution will be to drill a series of holes to assess this hypothesis. Details are given in the recommendation section below. 57

58 Accurate and Precise Geochemistry In Hydrocarbon and Mineral Exploration CONCLUSIONS AND RECOMMENDATIONS The following conclusions are evident from MMI-M exploration surveys undertaken on the Bear River-Gravel North property of Auramex Resource Corp. 1. The survey has successfully demonstrated that MMI-M partial extractions on soil samples collected from inorganic soil topped by organic soil can isolate MMI-M precious and base metal anomalies. Sampling materials collected for MMI-M analysis are effective and appropriate sample media for an MMI survey. 2. There are base and precious metal commodity element anomalies in the survey area. These anomalies are developed in select areas of the grid and provide focus for follow-up surveys. Gold, and Ag anomalies are present and coincide with those for Cu whereas the Cu-Au-Ag anomalies appear to be offset from the Zn-Mo and Pb responses. The anomalies are often multi-element and high-contrast. These anomalies represent follow-up exploration targets. 3. Very little variability in MMI geochemical response is apparent in the QC data. There is no indication that the analyses are anything but good in terms of accuracy and precision and as such will not hinder the recognition of a bona fide low- to high-contrast MMI base or precious metal anomaly. The recommendations that flow from this survey are as follows: 1. The MMI process does not indicate the grade of mineralization responsible for the production of an MMI anomaly nor does it indicate the depth of the source region for the anomaly. Accordingly, it is strongly recommended that an attempt at modeling the geological setting of the target mineralization based on their geophysical responses with emphasis on depth to source be undertaken prior to a diamond drill program. This exercise can greatly assist the drilling when attempting to provide explanations for the geological context of geophysical and 58

59 Accurate and Precise Geochemistry In Hydrocarbon and Mineral Exploration MMI anomalies. The attitude of the target can be effectively delineated in this manner. A small program of ground geophysics based on EM methods can assist the selection of drill targets when integrated with airborne EM and MMI soil geochemical data. 2. Prior to diamond drill testing the MMI dataset should be integrated with all available geophysical and geological survey data so that multivariate drill targets can be determined. Ground geophysical surveys over the conductive VTEM anomaly are recommended. These data would be integrated with the MMI data to establish drill targets. 3. Any subsequent MMI surveys should be based on collection protocols established by this survey. August 8, 2011 Mark Fedikow Lac du Bonnet, Manitoba 59

60 Accurate and Precise Geochemistry In Hydrocarbon and Mineral Exploration STATEMENT OF COSTS Item Cost Review of MMI orientation survey - M Fedikow Helicopter Senior MMI technician 10 days at $350 3, Junior MMI technician 10 days at $200 2, Hotel 8 days 1, Vehicle rental - Smithers Gas Food Supplies Airfare Vancouver-Smithers return 2 technicians 3, Travel - Taxis Assays - 44 samples 1, Assays - 34 samples Sample shipping Report - M Fedikow 2, Revisions to Report TOTAL 19,

61 Accurate and Precise Geochemistry In Hydrocarbon and Mineral Exploration Mark A.F. Fedikow, HB.Sc., M.Sc., Ph.D., P. Eng. P.Geo. C.P.G. Consulting Geologist and Geochemist 50 Dobals Road North P.O. Box 629 Lac du Bonnet, Manitoba R0E 1A0 Tel: Cell: CERTIFICATE of AUTHOR I, Mark A.F. Fedikow, HB.Sc., M.Sc., Ph.D., P.Eng., P.Geo., C.P.G. do hereby certify that: 1. I am currently a self-employed Consulting Geologist/Geochemist with a field office at: 50 Dobals Road North P.O. Box 629 Lac du Bonnet, Manitoba R0E 1A0 2. I graduated with a degree in Honors Geology (B.Sc.) from the University of Windsor (Windsor, Ont.) in In addition, I earned an M.Sc. in geophysics and geochemistry from the University of Windsor and a Doctor of Philosophy (Ph.D.) in exploration geochemistry from the School of Applied Geology, University of New South Wales (Sydney) in I am a Member of the Association of Professional Engineers and Geoscientists of Manitoba. I am also a Fellow of the Association of Applied Geochemists, and a Member of the Prospectors and Developers Association of Canada. I hold valid Prospectors licenses in Manitoba and Ontario. I am registered as a Certified Professional Geologist with the American Institute of Professional Geologists (Colorado, U.S.A.). 4. I have worked as a geologist for a total of thirty-five years since my graduation from university; as a graduate student, as an employee of major and junior mining companies, the Manitoba Geological Survey and as an independent consultant. 5. I have read the definition of qualified person set out in National Instrument ( NI ) and certify that by reason of my education, affiliation with a professional association (as defined in NI ) and past relevant work experience, I fulfill the requirements to be a qualified person for the purposes of NI I am responsible for the preparation of the technical report titled Results of Mobile Metal Ions Process (MMI-M) Soil Geochemical Orientation and Exploration Surveys on the Bear River and Gravel North target Areas, Auramex Resource Corp., Stewart Area, Northwestern British Columbia. 7. I am not aware of any material fact or material change with respect to the subject matter of the Technical Report that is not reflected in the Technical Report, the omission to disclose which makes the Technical Report misleading. 8. I am independent of the issuer applying all of the tests in National Instrument

62 Accurate and Precise Geochemistry In Hydrocarbon and Mineral Exploration 9. I consent to the filing of the Technical Report with any stock exchanges or other regulatory authority and any publication by them, including electronic publication in the public company files on the web sites accessible by the public, of the Technical Report. Dated this 11th Day of August, Signature of Qualified Person M.A.F. Fedikow. Print name of Qualified Person Original Signed by Mark Fedikow 62

63 Accurate and Precise Geochemistry In Hydrocarbon and Mineral Exploration Appendix 1: Auramex Bear River-Gravel North Mobile Metal Ions (MMI-M) Orientation and Exploration Survey Data 63

64 ANALYTE UTM East UTM North Ag Au Cd Cu Mo Ni Pb Zn METHOD MMI-M5 MMI-M5 MMI-M5 MMI-M5 MMI-M5 MMI-M5 MMI-M5 MMI-M5 DETECTION UNITS ppb ppb ppb ppb ppb ppb ppb ppb BGO BGO BGO BGO BGO BGO BGO BGO BGO BGO BGO BGO BGO BGO BGO BGO BGO BGO BGO BGO BGO BGO BGO BGO BGO BGO BGO BGO BGO BGO BGO BGO BGO BGO BGO BGO