EMPIRE DEVELOPMENT COMPANY LIMITED

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1 EMPIRE DEVELOPMENT COMPANY LIMITED Granville Street Vancouver 2, B.C. January 17, 1966 Chief Gold Commissioner, Department of Mines & Petroleum Reso,urces, Victoria, B.C. Dear Sir: The field work carried out by John C. Lund and his crew on the Nimpkish Copper Group was under my direct supervision. I visited the property personally, spending three days on field work and consulted with Mr. Lund frequently on the problems involved. I am satisfied that the field work was performed as outlined and am in accord with conclusions contained in this Report. Yours truly, Chief Geologist.

2 January 17, 1966,Chief Gold Commissioner, Department of Mines and Petroleum Victoria, B. C. Resources, Dear Sir: I hereby submit a statement of qualification as required under the "Mineral Act" Chapter 244 re application for acceptance of a geological survey as assessment work by a non Professional Engineer. I received a B.Sc. degree from U.B.C. in 1962 (honors geology) and have at present completed first year on a Masters programme. Record of employment and experience is as follows: Field season of 1959 with B.C. Department of Mines working as geological field assistant with Dr. J. M. Car; 1960 and 1961 with Dr. W. G. Jeffrey. After graduating in 1962 I have been with Empire Development Company Limited working as both mine geologist and exploration geologist. Yours truly,

3 GEOLOGICAL REPORT NIMPKISH COPPER GROUP (49 56; 126O 17') January 17, 1966 John C. Lund

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5 TABLE OF CONTENTS INTRODUCTION - Claims and Ownership = 1 1 LOCATION AND ACCESSIBILITY 2 TOPOGRAPHY 2 GEOLOGY 3 MINRRALIZATION 4 SUMMARY 6 TABLES, FIGURES AND MAPS - Table I - statement of costs %?%A-B 7 In pocket

6 REPORT ON THE NIMPKISH COPPER GROUP SITUATED IN UPPER NIMPKISH VALLEY (49O56' 126"17') VANCOUVER ISLAND, B.C. INTRODUCTION The Nimpkish Copper Group consists of thirty claims located and held by Hans Knapp of Camp N, Beaver Cove, B.C. Part of the claims lie within the Nanaimo Mining Division and part in the Alberni Division. Claims name, recording numbers, recording dates as follows: NANAIMO MINING DIVISION and Mining Division are M Record No. Date Recorded d, c, Nimpkish I, Copper I " II III IV V VI VII VIII IX X XI N-C. XII XIII XIV xv XVI XVII XVIII ALBERN MINING DIVISION XIX xx XXI XXII Km.11 XXIV xxv XXVI XXVII XXVIII XXIX xxx

7 -2- By virtue of an Option Agreement, exploration was carried out by Empire Development Company Limited of Vancouver, B.C. LOCATION AND ACCESSIBILITY Claims form a northwesterly trending block straddling a ridge between Upper Klaanch River to the east and Tolnai (local name) Creek on the west. Both sides of ridge are readily accessible. The Tolnai Creek area lies within 1 mile of the Port Hardy - Campbell River road; the Upper Klaanch logging road extends up to the southeast side of Upper Klaanch River to within one claim length of the southeast boundary of the claim group. ii TOPOGRAPHY Topography is rugged; massive cliffs are common and streams flowing into Tolnai Creek have cut deeply producing steep walled canyons that afford good rock exposures. Topography flattens gently toward the Nimpkish Valley. The mountains are heavily wooded except for high ridges which have only a scattering of stunted trees. Rainfall is heavy and snow may be expected in winter. Both Upper Klaanch and Tolnai Creeks provide a year round source of water. Twenty days were spent, between August 6 and September 7, 1965, mapping geology at a scale of 1" ft. Dip needle readings were taken at intervals over the claims. Anomalous areas, that is any area which gave greater than 10 deg. above background on a Sharpes D 2 Dip Needle, were tested to determine extent and cause of

8 -3- WXldy. Mapping was extended beyond claims group boundaries where it seemed necessary to complete the geological picture. Work was completed by the writer, a senior geological assistant and two junior assistants. Accommodation was made available by Canadian Forest Products Co. Ltd. at Vernon Camp, approximately 5 miles from the claims. Weather during the period was extremely warm and clear. Annual rainfall is heavy and snow can be expected in winter. Topographic map (National Topographic series: 1:50,000 scale) blown up to 1" = 500' was used as a base map. Altimeter, topographic map, and air photos were used in positioning outcrops. The area is underlain by rocks believed to be part of the Karmutsen Group of Triassic age. These include andasitic and basaltic lavas, poorly formed pillow lavas and an interbedded sedimentary sequence consisting of limestones carbonaceous argillites and tuffaceous rocks. It is with this sedimentary formation that mineral occurrences are associated. The above assemblage has been intruded by granitic rocks, granodiorite in composition which forms part of a larger mass that extends at least from Muchalat Lake on the south to Woss Camp on the northwest. It underlies the northeasterly and easterly part of the claimgroup. The lowermost unit exposed is a green medium-grained aphanetic rock, andesitic or basaltic in composition, with a noticeable lack of

9 / I AJ -4- amygdaloidal textures common to Karmutsen rocks in Woss Lake area. These are overlain by a thin fossiliferous tuffaceous bed, about 50 feet thick, which in turn is overlain by 300 to 400 feet of grey to blue-grey crystalline limestone. A thin bed of carbonaceous argillite not everywhere present overlies the limestone. Massive volcanic flows with some finely porphyritic members overly the sedimentary sequence. Pillow lavas outcrop in massive bluffs below Knapp Peak (see map in pocket). These are ill-defined and very irregular, often difficult to recognize.if it were not for the distinct interpillow spaces and pale pillow "rind". Rocks have a general north to northeasterly strike and moderate northwesterly dip. Faulting is prevalent in.east to northeasterly 0 direction. In Campbell Creek (see map in pocket) the limestone has been thrown up against volcanic rocks indicating a relative vertical displacement of 300 to 400 feet. Campbell, Spraggs and Allen Creeks are probably all expressions of prominent steeply dipping faults. (For geology see map in pocket and section, Fig. 2). MINERALIZATION Three magnetite and two copper occurrences were located during exploration, each associated with limestone near a granitic intrusive contact. The magnetite occurrences are of little significance. Two I / c, consist of mixed magnetite and garnet skarn near the intrusive-limestone contact, the third, massive magnetite with specular hematite near the intrusive-volcanic contact.

10 -5- The copper showings called - (a) The Allen Creek showing, and (b) Campbell Creek showing differ slightly in environment and mineralogy. The former consists of small lens of chalcopyrite as fillings between green garnet crystals lying along the contacts between a skarny greenstone dyke and limestone. The occurrence is small with less than 1 foot in width and 10 feet in length exposed. No continuation along strike in either direction could be seen. The Campbell Creek showing occurs along a strong northwest fault at a limestone-argillite-volcanic-intrusive contact. The intrusive is probably an apophysis off the main batholith. Mineralization consists of massive chalcopyrite with pods of bornite and chalcocite as a vein of solid copper sulphides cutting obliquely a prominent skarn zone. This skarn zone extends for 120 feet below and 220 feet abare the showing. The vein strikes about 160 deg. and dips steeply to the east; its maximum apparent width is 5 feet, a minimum 14 inches and height exposed 25 feet. Average width would probably be 18 inches. The strike appears to coincide with that of the intrusive contact suggesting a definite relation between the granitic apophysis and mineralizat%m. (see Fig. 1). Little chalcopyrite occurs in the skarn beyond 2 inches from the clean sharp vein contacts. In general massive skarn zones in both Oktwanch and Nimpkish Copper groups are relatively free of disseminated or impregnated grains of chalcopyrite.

11 -6- SUMM4RY A sedimentary sequence consisting of limestones, argillites, and tuffaceous rocks occur within massive andesitic and basaltic flows of the Karmutsen group. This sedimentary horizon is well down in the Karmtsen rocks, possibly several thousand feet. The above assemblage has been intruded by a mass of grano- diorite of batholithic proportions. Associated with sedimentary rocks near the intrusive contact are small occurrences of both iron and copper mineralization. Iron mineralization is of limited extent and considered economically insignificant. Copper mineralization warrants further exploration. January 17, 1966

12 -7- TABLE I STATEMENT OF COSTS AUGUST 6 TO SEFTEMBER 7, 1965 wages : Geologists 31 days $ Field assistants 20 $ $ $ ,800.OO Room and Board: 93 man $6.00 per day Transportation: (Vehicle rent, gas and maintenance) $ 2,603.OO

13 Department of Mines and?etroleum Resources /.- - -: -.;..!ENT REPORT,.;er_c. ~,, L v , Ii t :i.._, I 1,. : : _. _ i- _-.-.-: :.I. I

The Cobalt Rainbow. Airborne geophysical maps show that a north trending aeromagnetic high suggests further undiscovered mineralisation.

The Cobalt Rainbow. Airborne geophysical maps show that a north trending aeromagnetic high suggests further undiscovered mineralisation. The Cobalt Rainbow The property is located on Greenstone Creek, approximately 4.8 kilometres south west of the creek mouth. The property is located about 24 km due west of Campbell River, in the east-central