GEOPHYSICAL REPORT ON THE PRINCE GEORGE PORPHYRY PROJECT HOBBES PROPERTY

Transcription

1 GEOPHYSICAL REPORT ON THE PRINCE GEORGE PORPHYRY PROJECT HOBBES PROPERTY CARIBOO MINING DIVISION, British Columbia NTS: 093J/06, 093J/11 Latitude N, Longitude W MTO Event Numbers ; XSTRATA CANADA CORPORATION By Stephanie Savidant Cormier, Phillip Dagenais, And Gordon Maxwell April 2012

2 TABLE OF CONTENTS 1.0 INTRODUCTION PROPERTY DESCRIPTION AND LOCATION ACCESS, CLIMATE, INFRASTRUCTURE AND PHYSIOGRAPHY HISTORY GEOLOGICAL SETTING GEOPHYSICAL PROGRAM RESULTS RECOMMENDATIONS AND CONCLUSIONS STATEMENT OF COSTS REFERENCES STATEMENT OF QUALIFICATIONS LIST OF TABLES Table 2.1 Hobbes property tenure information... 6 Table 4.1 Hobbes property historical work summary... 9 LIST OF FIGURES Figure 2.1 Hobbes property regional location map... 7 Figure 2.2 Hobbes property tenure map... 8 Figure 6.1 Hobbes property IP line location

3 LIST OF APPENDICES Appendix A Geophysical Report Appendix B Statement of Expenditures Statement of Expenditures Chaining Schedule 3

4 1.0 INTRODUCTION The Hobbes property is composed of 37 contiguous tenures that are 100% Xstrata-owned. Hobbes is one of several properties in the Prince George and Fort St James area belonging to Xstrata s Prince George Porphyry Exploration Project focused on the discovery of a large Cu-Au porphyry deposit in the Quesnel Terrane of central British Columbia. A ground geophysical program was carried out over twenty days between May 15 th and October 26 th, Three reconnaissance IP lines were completed totaling 14.4 line kilometers. The IP line locations were selected using results of the QUEST airborne magnetic survey and high resolution magnetic survey flown by Xstrata in Initial chaining was completed over a four day period by Xstrata field personnel. The IP survey was conducted and interpreted by Peter E. Walcott & Associates, a geophysical company based out of Vancouver, BC. The program was supervised by Xstrata geologist Stephanie Savidant Cormier. 2.0 PROPERTY DESCRIPTION AND LOCATION The Hobbes property is located within the Cariboo Mining Division of central British Columbia, approximately 70 kilometers north of the city of Prince George as the crow flies. The Hobbes property covers the 93J/06 and 93J/11 NTS sheets and it is located at north latitude and west longitude. The property consists of 37 contiguous mineral claims covering an area of 16,170.4 hectares. The property is 100% owned by Xstrata Copper. A regional property location map and a claim tenure map are provided below in Figures 2.1 and 2.2. Table 2.1 lists the mineral tenures included in the Hobbes property. 3.0 ACCESS, CLIMATE, INFRASTRUCTURE AND PHYSIOGRAPHY Hobbes property is accessible by forestry service roads from May to November and by snow machine during the winter season. Heavy rains, cool temperatures and road construction during the 2011 field season made access on secondary and tertiary roads difficult. The IP program was based out of the city of Prince George as it hosts abundant amenities including multiple options for food and lodging, fuel, equipment and supplies. Road access to the Hobbes property is obtained from the city of Prince George by driving north on Highway 97 to the town of Bear Lake. The Davie-Muskeg FSR should be taken west at Bear Lake. The property is accessed along the Davie-Muskeg FSR and a network of secondary and tertiary logging roads as shown in Figures 2.1 and

5 Hobbes property has very good road access due to a network of logging roads. Much of the property has been logged out. There are several drumlin/esker hills throughout the property which are no more than 100ft or so in height and trend northeast-southwest. The northwestern portion of the property had no visible outcrops, abundant glacial till, and has somewhat higher elevation. The southern portion of the property contains some lower lying valleys (cut by rivers and streams) with small hills and a higher percentage of outcrops. There is also a larger mountain to the southeast which is easily seen at a distance. The northeastern portion of the property also has several outcrops exposed and has a few small hills. 4.0 HISTORY A small amount of historical work took place on the Hobbes property in This work was performed by Cominco Ltd and included an mapping and soil sampling. In addition to this property specific work, regional geochemical surveys (rock, soil, stream, lake, etc) and geophysical surveys have also been carried out in this area as part of the QuestBC geosciences initiative. Refer to Table 4.1 for a summary of historical work. 5.0 GEOLOGICAL SETTING The Quesnel Terrane, commonly referred to as the Quesnellia, is an accreted arc terrane lining the eastern margin of the Intermontane Belt at its tectonic boundary with the Omineca Belt. The Quesnel Terrane formed in an island arc setting outboard to the ancestral North American continental margin in the Early Jurassic (Panteleyev et al., 1996). Early Mesozoic, alkaline and calcalkaline island arc magmatism generated many porphyry copper deposits including: Mount Milligan, Mouse Mountain, Mont Polley, Copper Mountain, etc. The Quesnel Terrane near Prince George is fault-bounded to the east by Late Paleozoic metasedimentary (volcanic and plutonic) oceanic rocks of the Slide Mountain Accreted Complex and the Cache Creek Accreted Complex to the west (forearc). This is most likely due to the southern extension of the Pinchi fault system (Bailey, 1988). In the Prince George region, the Quesnel Terrane is composed of Takla Group and/or Nicola group Mesozoic strata consisting of fine clastic sediments overlain by a thick sequence of Late Triassic alkaline volcanic and volcaniclastic rocks. Alkaline and calc-alkaline intrusions are sourced from magmatism in the Early Jurassic, Middle Jurassic and Mid-Cretaceous. 5

6 Table 2.1 Hobbes property tenure information 6

7 Figure 2.1 Hobbes property regional location map

8 Figure 2.2 Hobbes property tenure map

9 Table 4.1 Hobbes property historical work summary 9

10 6.0 GEOPHYSICAL PROGRAM The geophysical program on the Hobbes property consisted of three IP lines totaling 14.4 kilometer. The first line, HOBb, was chained over four days from May 15 th to 18 th by Xstrata field personnel A. Banville, M. W. Leahey, F. Smith and M. Sam. Additional lines, HOBr and HOBl, were chained by Walcott Geophysics. The IP survey itself was carried out by Walcott Geophysics from June 2 nd to 5 th and from October 15 th to 26 th. The line locations targeted magnetic features selected using results from the high resolution airborne magnetic survey completed by Xstrata in 2007 and the regional QUEST geophysics. Refer to Figure 6.1 for a map outlining the line location. The IP lines were surveyed using the pole-dipole method with 200 meter dipole spacing in an attempt to see through the overburden layer. 7.0 RESULTS Line HOBr Two weak IP anomalies were identified on the northern end of line HOBr. A chargeability anomaly almost twice background (5-8mV/V over 1-4mV/V) is encountered at station 5700 and it is accompanied by a resistivity high. From station 5900 to 6600 there is a circular chargeability anomaly at depth that is twice background (5-8mV/V over 1-4mV/V) accompanied by a resistivity high. Line HOBl A layer of conductive overburden has been identified across the entire length of the Line HOBl. A weak IP response (10-12mV/V over 3-6mV/V) exists at station1900 on the northeastern end of the line. Line HOBb/9000 A weak chargeability anomaly accompanied by high resistivity was identified on the west end of line HOBb/9000. The anomaly is arch shaped and comes to surface at station Chargeability is twice background with values ranging from 9-13mV/V over a background of 3-5mV/V. The full results of the 2011 IP survey are found in the complete geophysical report written by Peter E. Walcott & Associates (refer to Appendix A). This report includes survey specifications and data processing, and discusses and displays the survey results. 10

11 Figure 6.1 Hobbes property IP line location

12 8.0 RECOMMENDATIONS AND CONCLUSIONS Prospective targets generally include chargeability highs correlating with low to moderate resistivity, which are thought to represent felsic intrusive bodies. Based on the parameters, no strong IP targets were identified from the results of this survey. However, weak chargeability anomalies, accompanied by high resistivity, were present on all three lines. One of these anomalies noted in the northeastern line, HOBb/L9000, is arch shaped and appears to come to surface. Follow up prospecting and mapping is recommended on this target. 9.0 STATEMENT OF COSTS A total cost of $72, was calculated for the 2011 Hobbes property IP program. Included in the total are: Surveying costs from Walcott Geophysics Day wages for Xstrata field workers that chained the line Room and board in Prince George for the Xstrata field workers Rental truck and gas for the Xstrata field workers Cost of report writing 15% overhead for office management Details of the charges are outlined in Appendix B REFERENCES Bailey, D.G (1988): Geology of the central Quesnel belt, Swift River, south-central British Columbia (93B/16, 93A/12, 93G/1); in Geological Fieldwork 2005, BC Ministry of Energy, Mines and Petroleum Resources, Paper , pages Panteleyev, A., Bailey, D.G., Bloodgood, M.A. and Hancock, K.D. (1996): Geology and mineral deposits of the Quesnel River Horsefly map area, central Quesnel Trough, British Columbia; BC Ministry of Energy, Mines and Petroleum Resources, Bulletin 97, 156 pages. 12

13 11.0 STATEMENT OF QUALIFICATIONS 13

14 APPENDIX A Geophysical Report

15 AN ASSESSMENT REPORT ON INDUCED POLARIZATION SURVEYING HOBBES Property Quesnel Trough, British Columbia N, W NTS 93 J/6 & 11 Claims Surveyed: , , 016, 020, 021, 022, 023, , 214, 216 Survey Dates: June 2 nd -5 th, 2011 October 15 th 26 th, 2011 FOR XSTRATA COPPER CANADA DIVISION Timmins, Ontario BY PETER E. WALCOTT & ASSOCIATES LIMITED Vancouver, British Columbia MARCH 2012 APPENDIX A OF MAIN ASSESSMENT REPORT BY XSTRATA

16 2 TABLE OF CONTENTS Page INTRODUCTION.. 3 PREVIOUS WORK. 4 PURPOSE.. 5 SURVEY SPECIFICATIONS.. 6 DISCUSSION OF RESULTS 8 SUMMARY, CONCLUSIONS & RECOMMENDATIONS 10 APPENDIX I Cost of Survey Personnel Employed on Survey Certification ACCOMPANYING MAPS Line Location Map IP Pseudo-section L 9000 Scale 1:10,000 IP Pseudo-section L HOBi Scale 1:10,000 IP Pseudo-section L HOBr Scale 1:10,000 Peter E. Walcott & Associates Limited Geophysical Services IP Surveying Hobbes Property, B.C.

17 3 INTRODUCTION. Between June 2 nd and 5 th, and October 15 th and 26 th, 2011, Peter E. Walcott & Associates Limited undertook a three line induced polarization (I.P.) traverses over various parts of the HOBBES property, located in the Prince George area of British Columbia, for Xstrata Copper Canada. The surveying was carried out over one compass and chain line that was established by Xstrata personnel, and on the other two established by the geophysical crew. Measurements first to sixth separation- of apparent chargeability the I.P. response parameter and resistivity were made on the line using the pole-dipole technique with a 200 metre dipole. In addition the elevation and horizontal locations of the line stations were measured using a Brunton altimeter and a WAAS equipped Garmin GPS unit. The I.P. data is presented as individual pseudo-sections at a scale of 1:10,000. Peter E. Walcott & Associates Limited Geophysical Services IP Surveying Hobbes Property, B.C.

18 4 PREVIOUS WORK Mineral exploration in the Omineca district started with placer gold prospecting in 1869 and with copper exploration commencing in In the 1980 s and 1990 s Cominco ltd., Placer Dome, Noranda Exploration Ltd., Mingold Resources Ltd. and Cross Lake Mines Ltd. conducted detailed programmes in the area following up airborne magnetic anomalies. In 2007 after Xstrata acquired the property a detailed airborne magnetic survey was flown over the property at their request by McPhar Geosurveys Ltd. This was followed by limited prospecting and geochemical surveying in 2008 and 2010 by Xstrata. For further information the reader is referred to the B.C. Ministry of Energy, Mines and Petroleum Reserves ARIS archive, and to reports written and/or held by Xstrata. Peter E. Walcott & Associates Limited Geophysical Services IP Surveying Hobbes Property, B.C.

19 5 PURPOSE. The purpose of the survey was to investigate potential intrusive bodies, as interpreted and defined on the previously flown airborne detailed magnetic survey, in the search for copper-gold mineralization using the induced polarization technique alkalic porphyry copper-gold mineralization is known to occur in the margins of magnetic highs in association with iron-oxides enriched intrusions. Peter E. Walcott & Associates Limited Geophysical Services IP Surveying Hobbes Property, B.C.

20 6 SURVEY SPECIFICATIONS. The Induced Polarization Survey. The induced polarization (I.P.) survey was conducted using a pulse type system, the principal components of which were manufactured by Walcer Geophysics of Einskillen, Ontario, and Instrumentation GDD of St. Foy, Quebec. The system consists basically of three units, a receiver (GDD), transmitter (Walcer) and a motor generator (Walcer). The transmitter, which provides a maximum of 9 kw d.c. to the ground, obtains its power from a 15 kw 400 c.p.s. three phase alternator driven by a Honda 24 h.p. gasoline engine. The cycling rate of the transmitter is 2 seconds currenton and 2 seconds current-off with the pulses reversing continuously in polarity. The data recorded in the field consists of careful measurements of the current (I) in amperes flowing through the current electrodes C 1 and C 2, the primary voltages (V) appearing between any two sequential potential electrodes, P 1 through P n+1, during the current-on part of the cycle, and the apparent chargeability, (M a ) presented as a direct readout in millivolts per volt using a 200 millisecond delay and a 1000 millisecond sample window by the receiver, a digital receiver controlled by a micro-processor the sample window is actually the total of ten individual windows of 100 millisecond widths. The apparent resistivity ( a ) in ohm metres is proportional to the ratio of the primary voltage and the measured current, the proportionality factor depending on the geometry of the array used. The chargeability and resistivity are called apparent as they are values which that portion of the earth sampled would have if it were homogeneous. As the earth sampled is usually inhomogeneous the calculated apparent chargeability and resistivity are functions of the actual chargeability and resistivity of the rocks. The survey was carried out using the pole-dipole method of surveying. In this method the current electrode, C 1, and the potential electrodes, P 1 through P n+1, are moved in unison along the survey lines at a spacing of a (the dipole) apart, while the second current electrode, C 2, is kept constant at infinity. The distance, na between C 1 and the nearest potential electrode generally controls the depth to be explored by the particular separation, n, traverse. Peter E. Walcott & Associates Limited Geophysical Services IP Surveying Hobbes Property, B.C.

21 7 SURVEY SPECIFICATIONS cont d On this survey 200 metre dipoles were employed and first to six separation readings were obtained. In all some 15 kilometres of I.P. traversing were completed. Vertical control. The elevations of the stations were recorded using an ADC Summit altimeter manufactured by Brunton of Wyoming, USA. This instrument measures elevations using barometric pressures to an accuracy of plus or minus 3 metres. Corrections for errors due to variations in atmospheric pressure were made by comparison to readings obtained on a similar instrument, held stationary at one location the base -, at 10 minute intervals. Horizontal control. The horizontal position of the stations were recorded using an WAAS equipped Garmin C60 handheld GPS receiver. Data Presentation. The I.P. data are presented as an individual pseudo-section plot of apparent chargeability and resistivity at a scale of 1:10,000. Plots of the 21 point moving filter illustrated on the pseudo section for the above are also displayed in the top window to better show the location of the anomalous zones. Peter E. Walcott & Associates Limited Geophysical Services IP Surveying Hobbes Property, B.C.

22 8 DISCUSSION OF RESULTS. The results should be studied in conjunction with those of the airborne magnetics, and those of the soil sampling and prospecting from the previously mentioned reports. In general in the Quesnel Trough the copper-gold mineralization is associated with moderate to high chargeability signatures coupled with a similar resistivity one, while high chargeability-low resistivity combinations mostly reflect sedimentary packages. Three traverses were run on the property with a 200 metre dipole and are best discussed individually as they are randomly oriented. Line 9000N. This N 78 o E traverse was run across a northwesterly trending dyke-like magnetic feature and a similar trending satellite feature on its west. Lower resistivities were obtained over the magnetic low on the extreme west of the line with higher resistivity features observed between 1600 and 2500 E and 2600 to 3700 E over the two magnetic features. A double peak anomaly is seen on the chargeability between 1600 and 2000 E with a stronger anomaly at depth adjoining it to the west on the western flank of the smaller magnetic feature. A larger chargeability feature is seen on the larger separations between 2700 E and the eastern end of the line associated with the aforementioned resistivity high and the larger magnetic feature. Line HOBi.This N 45 o E traverse was run over a discrete northwesterly trending oval shaped magnetic high. Lowere resistivities less than 100 ohm-metres were observed on the smaller separations indicative of the overburden cover, increasing to a fairly uniform 150 s or there about on the larger separations. Lower chargeabilities were seen on the smaller separations for most of the line as expected from the resistivities, and elevated chargeabilities were observed on the larger separations for the complete traverse. Peter E. Walcott & Associates Limited Geophysical Services IP Surveying Hobbes Property, B.C.

23 9 DISCUSSION OF RESULTS cont d. Given this uniformity and the length of the traverse the causative source would appear to be formational. Line HOBr. This 7 kilometre long N 30 o E traverse was run across the southern arm of a large arcuate magnetic feature near is southern extremity and over a circular discrete magnetic feature in its middle. Resistivities generally ranged from low 200 s to high teens ohm-metres over the entire traverse suggestive of shallower overburden than that on HOBi. Chargeabilities for the most were of low background 3 to 6 mv/v with a small area of moderately elevated chargeability between 60 and 64N. Peter E. Walcott & Associates Limited Geophysical Services IP Surveying Hobbes Property, B.C.

24 10 SUMMARY, CONCLUSIONS & RECOMMENDATIONS. Between June 2 nd and 5 th, and October 15 th and 26 th, 2011, Peter E. Walcott & Associates Limited conducted three individual line induced polarization traverses on different portions of the HOBBES property, located in the Prince George area of British Columbia, and held by Xstrata Copper Canada. Two interesting chargeability features were discerned on the first leg of the survey, but no chargeability features of note were observed on the second leg. Further surveying should be conducted on 400 metre spaced grid lines to properly define the anomalous chargeability zones outlined on Line Respectfully submitted, PETER E. WALCOTT & ASSOCIATES LTD. Peter E. Walcott, P.Eng. Geophysicist Vancouver, B.C. March 2012 Peter E. Walcott & Associates Limited Geophysical Services IP Surveying Hobbes Property, B.C.

25 11 APPENDIX I Peter E. Walcott & Associates Limited Geophysical Services IP Surveying Hobbes Property, B.C.

26 12 COST OF SURVEY. Peter E. Walcott & Associates Limited undertook the survey programme on a daily basis providing a five man IP crew with two 4x4 truck at a daily rate of $3, on the first time frame, and a six man crew with a 4x4 trucks at $ per day on the second leg. Fuel and accommodation costs were extra at a cost of $6, Mobilization costs were apportioned with other projects so $2, was assessed. A reporting cost of $ was affixed so that the total cost of services provided was $59, Peter E. Walcott & Associates Limited Geophysical Services IP Surveying Hobbes Property, B.C.

27 13 PERSONNEL EMPLOYED ON SURVEY. Name Occupation Address Dates Peter E. Walcott Geophysicist Peter E. Walcott & Mar.26 th, 2012 Associates Limited W. 2 nd Ave., Vancouver, B.C. V6J 1H2 Alexander Walcott Mar.18 th 20 th,2 012 B. Dupreez Oct. 15 th -26 th,2011 T. Kocan Geophysical " June 2 nd -5 th,2011 Operator S. Monfared A. Shongruden C. Pearson L. Furmanek Oct. 15 th -26 th,2011 J. Adams Geophysical Assistant Royce Gairdner Ryan Gairdner C. Whelan D. Minskip June 2 nd -5 th, Xstrata Persons Geophysical " Assistant Peter E. Walcott & Associates Limited Geophysical Services IP Surveying Hobbes Property, B.C.

28 14 CERTIFICATION. I, Peter E. Walcott, of 605 Rutland Court, Coquitlam, British Columbia, hereby certify that: 1. I am a graduate of the University of Toronto in 1962 with a B.A.Sc. in Engineering Physics, Geophysics Option. 2. I have been practicing my profession for the last forty nine years. 3. I am a member of the Association of Professional Engineers of British Columbia and Ontario. 4. I hold no interest, direct or indirect, in Xstrata Copper Canada, nor do I expect to receive any. Peter E.Walcott, P.Eng. Vancouver, B.C. March 2012 Peter E. Walcott & Associates Limited Geophysical Services IP Surveying Hobbes Property, B.C.

29 L L L L L L L L L L L L L L L L L L L L L L L L L L L L L L L L L L L L L L L L L L L L L L L L L L L L L L L L L ± HOBr HOBr HOBr HOBr HOBi 3200 HOBi 3100 HOBi 3000 HOBi 2900 HOBi 2800 HOBi 2700 HOBi 2600 HOBi HOBi 2400 HOBi 2300 HOBi 2100 HOBi 2000 HOBi 1900 HOBi 1800 HOBi 1700 HOBr HOBr HOBr HOBr HOBr HOBr HOBr 6100 HOBr 6050 HOBr 6000 HOBr 5950 HOBr 5900 HOBr 5850 HOBr 5800 HOBr 5750 HOBr 5700 HOBr 5650 HOBr 5600 HOBr 5550 HOBr 5500 HOBr 5450 HOBi 1600 HOBi 1500 HOBi HOBr 6500 HOBr 6450 HOBr 6400 HOBr 6350 HOBr 6300 HOBr 6250 HOBr 6200 HOBr 6150 HOBi HOBr HOBr HOBr HOBr HOBi 1300 HOBi 1200 HOBi 1100 HOBi 1000 HOBi 900 HOBi 800 HOBr 5400 HOBr 5350 HOBr 5300 HOBr 5250 HOBr 5200 HOBr 5150 HOBr 5100 HOBr 5050 HOBr 5000 HOBr 4950 HOBr 4900 HOBr 4850 HOBr 4800 HOBr 4750 HOBr 4700 HOBr 4650 HOBr 4600 HOBr 4550 HOBr 4500 HOBr 4450 HOBr 4400 HOBr 4350 HOBr 4300 HOBr HOBr 4200 HOBr 4150 HOBr 4100 HOBr 4050 HOBr 4000 HOBr 3950 HOBr 3900 HOBi 700 HOBi 600 HOBi 500 HOBi 400 HOBi HOBi HOBi 100 HOBi 0 HOBr 3800 HOBr 3700 HOBr 3600 HOBr HOBr HOBr 3300 HOBr 3200 HOBr 3100 HOBr 3000 HOBr HOBr 2800 HOBr 2700 HOBr 2600 HOBr 2500 HOBr 2400 HOBr 2300 HOBr 2200 HOBr 2100 HOBr 2000 HOBr HOBr HOBr 1700 HOBr 1600 HOBr 1500 HOBr 1400 HOBr HOBr HOBr 1100 HOBr 1000 HOBr 900 HOBr 800 XSTRATA COPPER CORPORATION CLAIM AND LINE LOCATION MAP HOBr 700 HOBr 600 HOBr 500 HOBBES PROPERTY HOBr HOBr HOBr Kilometers HOBr

30 90+00 N Pole-Dipole Array a na a Average IP mv/v Filter n=1 n= E E E E E E E E Filter n=1 n=2 Average IP mv/v Filter * * * * * * * * * * * * * * * * * * * * * I plot point V a = 200 m n= n=3 n= n=4 n= n=5 n= n=6 Instruments: Walcer 9.0kw Tx, 2 X GDD GRX8 Rx Frequency: Hz. Operators: T.C., A.H. Logarithmic 1, 1.5, 2, 3, 5, 7.5, 10,... Contours 5+00 E E E E E E E E Filter Filter Calculated Resistivity Ohm*m n= n=1 Calculated Resistivity Ohm*m n= n=2 n= n=3 n= n=4 Scale 1: n= n=5 (meters) n= n=6 XSTRATA INDUCED POLARIZATION SURVEY HOBBS AREA PRINCE GEORGE AREA, BRITISH COLUMBIA Date: OCTOBER 2011 PETER E. WALCOTT & ASSOCIATES LIMITED

31 HOBr Pole-Dipole Array a na a Average IP mv/v Filter n=1 n= E E E E E E Filter n=1 n=2 Average IP mv/v Filter * * * * * * * * * * * * * * * * * * * * * I plot point V a = 200 m n= n=3 n= n=4 n= n=5 n= n=6 Instruments: Walcer 9.0kw Tx, 2 X GDD GRX8 Rx Frequency: Hz. Operators: T.C., A.H. Logarithmic 1, 1.5, 2, 3, 5, 7.5, 10,... Contours E E E E E E Filter Filter Calculated Resistivity Ohm*m n= n=1 Calculated Resistivity Ohm*m n= n=2 n= n=3 n= n=4 Scale 1: n= n=5 (meters) n= n=6 XSTRATA INDUCED POLARIZATION SURVEY HOBBS AREA PRINCE GEORGE AREA, BRITISH COLUMBIA Date: OCTOBER 2011 PETER E. WALCOTT & ASSOCIATES LIMITED

32 HOBi Pole-Dipole Array a na a Average IP mv/v Filter n=1 n= E E E E E Filter n=1 n=2 Average IP mv/v Filter * * * * * * * * * * * * * * * * * * * * * I plot point V a = 200 m n= n=3 n= n=4 n= n=5 n= n=6 Instruments: Walcer 9.0kw Tx, 2 X GDD GRX8 Rx Frequency: Hz. Operators: T.C., A.H. Logarithmic 1, 1.5, 2, 3, 5, 7.5, 10,... Contours 5+00 E E E E E Filter Filter Calculated Resistivity Ohm*m n= n=1 Calculated Resistivity Ohm*m n= n=2 n= n=3 n= n=4 Scale 1: n= n=5 (meters) n= n=6 XSTRATA INDUCED POLARIZATION SURVEY HOBBS AREA PRINCE GEORGE AREA, BRITISH COLUMBIA Date: OCTOBER 2011 PETER E. WALCOTT & ASSOCIATES LIMITED

33 APPENDIX B Statement of Expenditures

34 Hobbes IP Statement of Expenditures Field Personnel Days Rate Cost Total A. Banville 4 $ $ M. Leahey 1 $ $ M. Sam 4 $ $1, F. Smith 1 $ $ $2, Room & Board Days Rate Cost Total A. Banville 4 $ $ M. Leahey 1 $ $ M. Sam 4 $ $ F. Smith 1 $ $ $1, Vehicle Rental & Gas Days Rate Cost Total 4*4 Pick Up Truck 4 $ $ Geophysical Survey IP Survey (Peter E. Walcott & Associates) Cost $58, $ Total $58, Report Preparation Days Rate Cost Total S. Savidant Cormier 2 $ $ $ Office Management Overhead Rate Cost Total Prince George Field Office & Timmins Head Office 15.00% $9, $9, Grand Total $72,515.45

35 Hobbes Chaining Schedule A. Banville M. Sam F. Smith M. Leahey Date Type of Work Worked Room & Board Worked Room & Board Worked Room & Board Worked Room & Board 15-May-2011 Line Chaining x x x 16-May-2011 Line Chaining x x x 17-May-2011 Line Chaining x x x x x 18-May-2011 Line Chaining x x x x x Totals Total Man Days - 10 Total Room & Board - 6