REPORT ONTIIE 1996 PROGRAM AND RECOMMENDATIONS FOR FURTIIER WORK. WILLOUGHBY PROPERTY

Transcription

1 I "," REPORT ONTIIE 1996 PROGRAM AND RECOMMENDATIONS FOR FURTIIER WORK. '.' WILLOUGHBY PROPERTY STEW ART AREA BRITISH COLUMBIA SKEENA MINING DIVISION NTS 103P/13E, 104 N4E CAMNOR RESOURCES L TE Howe Street Vancouver, B.C. V6C2T6 by Dave Visagie, P. Geo. Senior Geologist Camnor Resources Ltd. January 10, 1997

2 TABLE OF CONTENTS 1.0 SUMMARY 2.0 INTRODUCTION LOCATION, ACCESS AND PHYSIOGRAPHY PROPERTY DESCRIPTION PROPERTY HISTORY REGIONAL GEOLOGY PROPERTY GEOLOGY Geology Structure Alteration Mineralization WORK PROGRAM ZONES EVALUATED North, North-North Wilby Lower Icefall Kiwi Edge Wilkie NI Wombat CONCLUSIONS RECOMMENDATIONS STATEMENT OF QUALIFICATIONS BIBLIOGRAPHY 31 TABLES 1 Willoughby Claims Surface Drill Hole Locations Underground Drill Hole Locations 12 4 North Zone: 1996 Drill Results Summary 14 5 Wilby Zone: 1996 Drill Results Summary 18 6 Lower Icefall Zone: 1996 Drill Results Summary 22 7 Kiwi Zone: 1996 Drill Results Summary 23 8 Edge Zone: 1996 Drill Results Summary 23 9 Wilkie Zone: 1996 Drill Results Summary NI Zone: 1996 Drill Results Summary Willoughby Property Zone Summary 27 APPENDICES Structural Interpretation of North and Wilby Zones Accompanying Binder # 1 2 Surface Diamond Drill Logs: Holes to Underground Diamond Drill Logs: Holes 96 U-l to 96 U-30 4 Surface Sample Descriptions Accompanying Binder #2 5 Assay Certificates 6 Survey Data

3 .e FIGURES Title 96-1 Location Map 96-2 Claim Map 96-3 Regional Geology 96-4 Property Geology 96-5 Willoughby Property Geology: 1: Willoughby Nunatak Geology: 1: North Zone Geology: 1 : North Zone Sample Location and Gold in Rock Chip Results: 1: North Zone Adit Geology North Zone Drill Holes, Survey Stations, Adit and Cross Section Layout North Zone Drill Cross Section 2990 N: 1: " 3000 N: 1: N: 1: " 3020 N: 1: " 3030 N: 1: " 3040 N: 1: "" 3050 N: 1: " "" 3060 N: 1: "" 3070 N: 1: "" 3080 N: 1: N: 1: " 3100 N: 1: N: 1: North Zone Drill Section 96U-29, 30: 1: North Zone 1740 Level Plan: 1 : North Zone 1730 Level Plan: 1: North Zone 1720 Level Plan: 1 : North Zone 1710 Level Plan: 1 : North Zone 1700 Level Plan: 1 : North Zone 1690 Level Plan: 1: North Zone 1680 Level Plan: 1: North Zone 1670 Level Plan: 1: North Zone 1660 Level Plan: 1: North Zone 1650 Level Plan: 1: North Zone 1640 Level Plan: 1 : North Zone 1630 Level Plan: 1: North Zone 1620 Level Plan: 1: Wilby, Lower Icefall and Kiwi Zone Geology: 1: Wilby Zone Rock Chip Sample Locations and Gold Assay Results: 1 : Wilby, Lower Icefall and Kiwi Zones Drill Holes, Survey Stations and Cross-Section Layouts 1 : Wilby Zone Drill Cross Sectiqn " " " " " " " " " 8040 N: 8060 N: 8080 N: 8100 N: 1:250 1:250 1:250 1: N: 1: N: 1: N: 1: N: 1: N: 1: N: 1:250 Page Folder 1 " " " " " " " " Folder 2

4 N: 1:250 lcefalllkiwi Zones Drill Cross Section 5000 N: 1: N: 1: N: 1: N: 1: N: 1: N: 1:250 Edge Zone Geology: 1 :250 Edge Zone Drill Holes, Survey Stations, Cross Section Layout: 1:250 Edge Zone Drill Cross Section 1020 N: 1:250 Edge Zone Drill Cross Section 1040 N: 1:250 Wilkie Zone Geology: 1:250 Wilkie Zone Gold in Soil Geochemistry: 1:250 Wilkie Zone Rock Chip Sample Location and Gold Geochemistry: 1 :250 Wilkie' Zone Drill Holes, Survey Stations, Cross Section Layout: 1 :250 Wilkie Zone Drill Cross Section 7020 N: 1: N: 1: N: 1:250 Nl Zone Geology: 1:250 Nl Zone Drill Holes, Survey Stations, Cross Section Layout: 1:250 Nl Zone Drill Cross Section and 96-81: 1:250 Nl Zone Drill Cross Section 96-82: 1:250 Wombat Zone Geology and Assay Results: 1 :250 Upper Icefall Zone Geology: 1 :250 " " " " " " ",e

5 1.0 SUMMARY The Willoughby property is located 26 kilometers east of Stewart, British Columbia. The property, consisting of 12 mineral claims totaling 186 units, is being evaluated by the Willoughby Joint Venture. Camnor Resources is the operator of the joint venture and has earned a 50% interest in the property. Since 1994, Camnor has completed 65 surface drill holes totaling 7,646.1 metres in length, 95 metres of l.5 x 2.1 metre drifting and 30 underground holes totaling 2,383.2 metres. The 1996 exploration program resulted in the completion of 31 surface holes totaling 3,458.7 metres, 40 metres of drifting and all of the underground drilling. The cost of the program was approximately $1.3 million. The geological setting of the Willoughby property is similar to that at the nearby Red Mountain deposit. At Red Mountain gold mineralization appears to be genetically and spatially related to a Jurassic hornblende-feldspar porphyiy stock which intrudes Jurassic volcano-sedimentary rocks. The Red Mountain deposit reportedly has a geological resource of one million ounces of gold. The Willoughby property hosts fifteen zones/occurrences of gold +/- silver mineralization, the most notable being the Wilby, Lower Icefall, North and Wilkie Zones. These zones are hosted by sericitecarbonate-chlorite-pyrite altered volcano-sediments and hornblende feldspar porphyiy. They vary in type, size and grade. Within the zones various combinations of pyrite, pyrrhotite, sphalerite, galena and arsenopyrite occur. Visible gold has been observed at the North Zone. Of the zones the Wilby and Lower Icefall Zones are considered to have the best potential to host significant gold bearing mineralization. The Wilby zone hosts parallel, northwest striking, shallow to moderately dipping pods and lenses of gold bearing, semi-massive to massive pyrite and pyrrhotite. The most promising lens, Northern Deep, has been traced along strike for in excess of 100 metres with widths varying from 1-9 metres. Along strike to the northwest the lens thickens and grade increases with the most northerly hole averaging ounces per ton gold across a drill intercept of 11.7 metres. The zone is open along strike to the northwest and down-dip. The Lower Icefall Zone is composed of two parallel lenses of north striking, shallow dipping, semimassive to massive pyrite and pyrrhotite. The lenses, referred to as Upper and Lower, have been traced for 45 metres with widths variable to 8 metres. They are open along strike to the northwest. with thickness and grade increasing northwards. The most northerly hole in the Upper Lens intersected a 9.4 metre section averaging ounces per ton gold while the most northerly hole drilled in the Lower Lens intersected a 3.2 metre section averaging ounces per ton gold with 2.55% zinc. At the North Zone a small high grade core resulting from the intersecting of two mineralized structures has been outlined. Drilling has traced this core along strike for 30 metres, down-dip for 70 metres with the average true width being approximately 3 metres. Within this core drill intersections include all. 7 metre section averaging ounces per ton gold, 3.20 ounces per ton silver and a 2.9 metre section averaging ounces per ton gold with 6.23 ounces per ton silver. Outside of this core gold values are significantly less with no economic intersections being located. The zone has limited size potential. The Wilkie Zone hosts gold-zinc bearing, shear hosted, quartz veins. At surface the zone has been traced for 125 metres with widths variable to 2.2 metres. Drilling has tested a 55 metre segment of the zone at down-dip depths of up to 85 metres. High grade gold values are confined to a 30 metre long shoot. Within this shoot intersections include a 3.7 metre section averaging ounces per ton gold with 2.72% zinc. Although the zone is open along strike and down-dip the narrowness of the zone precludes substantial tonnage being outlined. Drilling testing of the North-North, Kiwi, N1 and Edge Zones did not out~ine any significant zones of mineralization.

6 It is recommended that an 1800 metre surface drill program be completed. The drilling would test both the Wilby and Lower Icefall Zones. If results warrant additional drilling would be completed. The cost of the proposed program is estimated to be $400,000. 2

7 INTRODUCTION The Willoughby gold-silver property occurs in the "Golden Triangle" of northwestern British Columbia. The region hosts several past and present gold producers including the Snip, Premier and Eskay Creek Mines. The nearest significant discovery, Royal Oak Gold Mines' Red Mountain deposit, reportedly contains a geologic resource of approximately one million ounces of gold. At Red Mountain gold bearing mineralization is spatially and genetically related to a Lower Jurassic hornblende-feldspar porphyry stock which intrudes Lower Jurassic volcano-sedimentary rocks. The geology of the Willoughby property is similar to that at Red Mountain. Since acquiring the property in 1994, Camnor has completed a series of exploration programs consisting of mapping, sampling, underground development and diamond drilling. In 1996 a $1.3 million program that included 3,458.7 metres of surface and 2,383.2 metres of underground drilling was completed. This report reviews the results of the 1996 program while incorporating those of previous years. Detailed reviews of the 1994 and 1995 programs are found in summary reports for those years (see bibliography). 3.0 LOCATION, ACCESS AND TOPOGRAPHY (Figure 96-1) The Willoughby property is located 26 kilometers east of Stewart, B.C. It is centred at latitude 55 58' North, longitude ' West. The property is located on NTS sheets 103 PIl3E and 104 Al4W. Access to the property is by helicopter. A 22 kilometre road could be readily constructed that would connect the property to the Meziadin Main logging road and ultimately to Highway #37. The Willoughby property covers a portion of the eastern edge of the North Cambria lcefield Valleys are typically U-shaped with the mountains being rugged and steep. Local elevation ranges from 550 to 2130 metres. Vegetation, consisting of minor mountain hemlock and balsam, gives way to alpine meadows and bare rock at higher elevations. 4.0 PROPERTY DESCRIPTION (Figure 96-2) The Willoughby property consists of 12 mineral claims totaling 186 units as listed below. Claim Units Record # Expiry Date Del Sept. 16, 2005 Jose Sept. 22, 2005 Cuervo Sept. 22, 2005 Bart # Aug. 14, 2005 Bart # Aug. 14, 2005 Pius # Mar. 25, 2000 Pius # Mar. 25, 2000 Pius # Mar. 25, 2000 Pius # Mar. 25, 2000 Bimbo # Sept. 22, 1998 Rubble # Oct. 15,2005 Rubble # Oct. 15,2005 All claims occur in the Skeena Mining Division. The property is held under option, from the underlying vendors, by Gold Giant Resources Inc. Camnor has earned a 50% interest and a joint venture has been formed to evaluate the property with Camnor being

8 N A SUMMIT,, \... V) o o ~ LAKE MINE TENAJON RESOURCES CORP. "* PREMIER GOLD MINE WESTMIN RESOURCES LTD. j RED MTN. LAC MINERALS Reported Resources/All Categories 2,000,000 ounces-gold) \ : " " >... 1.~Juneau o L-...I.-..J ", -----T \, MAP AREA : AN \, / I ' rft Stewart : I I, B RITISH i COLUMB I A ) "\.., "'-'- "' e Vancouver ' o Kilometres ~I ~ I CAMNOR RESOURCES LTD. WILLOUGHBY PROPERTY LOCATION MAP FIGURE 1 DECEMBER 1994

9 v,t;.,4.!j 73:J.3.C,).p".,rA / t:jo/lld '" 70.y. "(12.) '" J.s.J ~/JA 4-778'1- (8) ~.",~..-~. (Z"'O) WIL.L.OUGH&Y I 1:f-..f_J68 Ii 6 ("l) ~/.sa / 7781(8). f" #Cs.t:.. JO~~ CIIDe'$\no, 2:. "'!II) (5) : v.... -v: (_16) w ('I)... 0:.. ' ('I) o PI"-Ie. I 773/ (1) PltC/L!.:l (7) FNO("e.,., PJ:.U~, 32t2t6 liut6. PLU~ , \ PLU5 3 \ , ~~ ".. " y R~O t R~O 56 CAMNOR RESOURCES WILLOUGHBY PROPERTY CLAIM MAP DRAWN BY: T. NTS: l03p. 104A DATE: APRIL 1994 FIGURE NO:

10 6. the operator. The joint venture has fullfilled its commitments to obtain a 100% interest in the property subject to a 2.5% NSR to the underlying vendors 5.0 PROPERTY HISTORY Between 1941 and 1988 intennittent exploration was completed on the Willoughby property. In 1988, Bond Gold optioned the property and subsequently completed a surface program consisting of mapping, sampling and the completion of 14 diamond drill holes totaling 1,708.6 metres. Although the program resulted in the discovery of several gold bearing zones, Bond dropped the option in order to concentrate its' effort at Red Mountain. In 1993 Gold Giant Resources Inc. optioned the property and subsequently, in 1994, entered into an option agreement with Carnnor. Since then Carnnor has completed an extensive exploration program, consisting of mapping, sampling, underground development and both surface and underground drilling. The following is a breakdown of the diamond drilling and underground development completed since Carnnor became involved in the property. 1994: 17 surface drill holes totaling 1,173.9 metres 1995: 27 surface drill holes totaling 3,013.5 metres, 55 metres of drifting 19%: 31 surface drill holes totaling 3,458.7 metres, 40 metres of drifting. 30 underground drill holes totaling 2,383.2 metres. In total, Carnnor has completed 65 surface drill holes totaling 7,646.1 metres (25,079 feet), 95 metres of drifting and 30 underground drill holes totaling 2,383.2 metres (7,817 feet). 6.0 REGIONAL GEOLOGY (Figure 96-3) Regional mapping, of an area including the Willoughby property, was completed by the Geological Survey of Canada in 1994 (Greig et at. 1994). Greig's mapping shows the Willoughby property to be situated at the eastern edge of a broad, Jurassic aged, north-northwest trending, volcano-plutonic, island arc belt referred to as the "Stewart Complex" (Grove 1986). The Stewart Complex, extends 150 kin from near Anyox in the south to the Iskut River in the north. This Complex is primarily composed of Hazelton Group andesitic volcanics and volcaniclastics. Several past and presently producing gold mines including Eskay Creek, Snip and Premier occur within this complex. To the west, the Stewart Complex is bordered by Coast Plutonic complex rocks while to the east it is bounded by Triassic Bowser Group sediments. Jurassic and Tertiary aged intrusive rocks occur in the area with early to middle Jurassic plutons being roughly coeval and cospatial with Hazelton Group rocks. Lower Jurassic hornblende-feldspar porphyrytic. (Goldslide) intrusives are considered to be economically important. In the area, several precious metal bearing deposits including those at the Red Mountain and Willoughby properties are associated with Goldslide intrusions. 7.0 PROPERTY GEOLOGY (Figures 96-4 and 5) Mapping, primarily of the Willoughby Nunatak, was completed by Bond Gold in Since acquiring the property personnel have completed detailed mapping of the Nunatak with regional mapping and prospecting being completed elsewhere. 7.1 Geology Mapping shows the eastern half of the Willoughby property to be underlain by Triassic Stuhini Group basalt and sedimentary rocks while the west side is underlain by Lower Jurassic Hazelton Group andesitic volcanics and intercalated sediments. At the northeast end of the Willoughby Nunatak, an Early Jurassic hornblende-feldspar porphyry plug (Goldslide) similar to that at Red Mountain has intruded Hazelton Group andesitic tuffs.

11 ',,' f,f fu (J f f f f f Ie f f f Red Mountain Deposit f f f f f f f f... f~ f«''li f-5:)~ VOLCANIC AND SEDIMENTARY ROCKS D UPPER JURASSIC BOWSER LAKE GROUP Sediments LEGEND PLUTONIC ROCKS TERTIARY Feldspar Porphyry o I Metres I D JURASSIC HAZELTON GROUP Andesitic Volcanics, sediments TRIASSIC STUHINI GROUP Sediments, Volcaniclastics STIKINE ASSEMBLEGE D Basalt D EARLY JURASSIC D Goldslide Intrusive ~ Mineralized Zone ice 'V' 'V' 'V' Fault CAMNOR RESOURCES LTD. WILLOUGHBY PROPERTY REGIONAL GEOLOGY FIGURE 2 DECEMBER 1994

12 Structure The Willoughby property occurs within a structurally complex region. According to consulting structural geologist Dr. Roland Reid "... the geologic history in the Willoughby Nunatak significant to the project began with the folding of tuffaceous sedimentary rocks during north-south compression, which produced west-plunging folds. This was followed by continuing or later north-south compression along largely horizontal axes in which complex conjugate strike-slip shear veins and extension fracture veins developed, both in the sediments and in the intrusion. Veining occurs in three principal fracture sets: northwest and northeast strike-slip faults and north-south extension fractures." Faulting occurs throughout the property with the dominant trends being north-south and east-west. Bedding is variable with the general trend being northwest striking with the dips being moderately steep to the east. 7.3 Alteration Variable, carbonate-sericite-chlorite-pyrite hydrothermal alteration overprints both the stock and country rocks. Where the alteration is intense structural features and rocks types are obscured. In addition gossans occur throughout the property obscuring local geology. 7.4 Mineralization Fourteen gold +/- silver bearing zones have been discovered on the Willoughby property.. Nine of the zones; North (includes North/North), Wilby, Upper Icefall, Lower Icefall, CC, Kiwi, Edge, Ledge and Wilkie occur on the Willoughby Nunatak. The Buffalo and Back Zones are located across the valley to the northeast while the NI Zone is situated on a nunatak immediately to the southeast. The Pius Zone is located on Pius Ridge approximately 3 km to the southeast of the Willoughby Nunatak. The Wombat Zone occurs on a small nunatak located to the southwest of the Willoughby Nunatak. The North, North North and Wombat are hosted by hornblende-feldspar porphyry with the remainder being hosted by andesitic tuffs. Two types of mineralization have been observed at the Willoughby Nunatak: i) shear hosted, pyrite ± sphalerite ± galena bearing quartz veined zones ranging in width to 6 metres and in length to 150 metres. These zones are hosted by both hornblendefeldspar porphyry and andesitic tuffs (eg. North and Wilkie Zones) and ii) andesite tuff hosted, semi-massive to massive sulphide bearing lenses of pyrite ± pyrrhotite that range in width to 8 metres and in length to in excess of 110 metres.(eg. Wilby and Lower Icefall Zones). At the North Zone visible gold has been observed within quartz veins in association with pyrite, galena and sphalerite and by itself., At the NI Zone lenses of massive pyrite, sphalerite and galena have been outlined in which anomalous gold and silver values occur. The Wombat Zone refers to an area of quartz carbonate breccia veining in which variable amounts of sphalerite and galena occur. Mineralization at the Buffalo and Back Zones includes replacement style pods of semi-massive to massive pyrite and pyrrhotite. In addition zones of chlorite-pyrite and gold bearing pyrite have been identified at the Buffalo Zone. The Pius Zone refers to an area in which sub-angular, up to 10 cm in size blocks of massive pyrite occur.

13 ~ri ~ m 1 N A CAMBRIA LEGEND VOLCANIC AND SEDIMENTARY ROCKS ICEFIELD N UPPER JURASSIC BOWSER LAKE GROUP D Sediments JURASSIC HAZELTON GROUP D Andesilic Votcanics. sediments _ TRIASSIC STUHINI GROUP Sediments. Volcaniclastics: STIKINE ASSEMBlEGE - Basalt PLUTONIC ROCKS GOLDSLIDE INTRUSIVE D Fektspar Hombkmde Porphyry, Quartz Monzonite ~ Mineralized Zone Dice... '" '" Fault t METRES CAMNOR RESOURCES LTD. ~ WILLOUGHBY PROPERTY PROPERTY GEOLOGY CLAIM BOUNDARV e FIGURE 3

14 WORK PROGRAM The 1996 field program commenced in mid-june with the clearing of snow from the portal area and the construction of the base camp at the junction of Fish Creek with the White River approximately 22 kilometres east of the Willoughby Nunatak. Geologic staff was mobilized to the camp in early July. All field work was completed by October 5. The following is an outline of the work completed. i) July 19-August 9 Phas~ 1 Underground Drill Program 20 BQTK sized drill holes totaling metres ii) August 10-2 Phase 2 Drift Extension North Zone adit extended 45 metres southwards to 95 metres iii) September 5-13 Phase 2 Underground Drill Program 10 BQTK sized drill holes totaling metres, iv) August 23..()ctober 3 Surface Drilling 31 BQTK sized drill holes totaling metres Throughout the duration of the program intermittent work was completed on the property that resulted in the mapping of the southern extension of the North Zone, the remapping of the Wilby Zone and the ~pping and sampling of the newly discovered Wilkie and Wombat Zones. Early in the program, Consulting Stuctural Geologist, Dr. Roland Reid was contracted to provide a structural interpretation for the North and Wilby Zones. A report prepared by Dr. Reid is attatched in Appendix 1. Underground and surface drilling were respectively completed by Boisvenue Drilling of Delta B.C and 1. T. Thomas Drilling of Smithers, B. C. Daily drill production, including mobeldemobe and breakdown time averaged 76.9 metres for the underground drill program, 82.4 metres for the surface. The drift extension was completed by a 2 man crew employed directly by Camnor. The crew averaged 2.5 metres of drifting per day. Surface drill and helipads were erected by both Camnor and Minconsult personnel. Crew and drill moves were completed using a Hughes 500 D helicopter chartered from Vancouver Island Helicopters. Selected core was sawed on site and sent to Westmin Mines' Premier Gold Mine for gold analysis. All samples were fire assayed using a one assay ton technique. The pulps were then forwarded to Chemex Labs in North Vancouver for 30 element I.C.P. analysis. Quality control included every 10th sample being re-assayed for gold by Chemex. In addition Chemex completed the screening and assaying of all samples containing visible gold. Samples returning geochem values in excess of 100 ppm Ag, 10,000 ppm Cu, Pb, Zn were assayed. In addition a limited number of reject samples were assayed to test for laboratory variation. The quality control completed was encouraging showing only a minor variance between samples assayed at different labs. The following personnel were employed at the Willoughby property: Bruce McLeod Dave Visagie Andrew Wilkins Krista Nelson Tim Kirby Miroslav Kuras Martin Harkema Orion Irvine Karen Wilson Albert Vemeau Project Manager Senior Geologist Geologist Geologist Geological Technician Geological Assistant Camp LabourerlFirst Aide* Camp Labourer CooklFirst Aide Undergound Miner

15 TABLE 2: 1996 DRILL HOLE LOCATIONS 11 HOLE EASTING NORTHING ELEVATION BEARING DIP LENGTH ZONE Kiwi Kiwi Kiwi L.I LI L.I LI Wilby Wilby Wilby Wilby Wilby Wilby Edge Edge Wilkie Wilkie Wilkie Wilkie Wilkie Wilkie NI NI NI L.I L.I Wilkie Wilkie Wilkie Wilby Wilby

16 TABLE 3 UNDERGROUND DRILL HOLE LOCATIONS 12 HOLE EASTING NORTHING ELEVATION BEARING DIP LENGTH 96U U U U U U U U U U U U ' U U U U U U U U U U U U U U U U U U Page 1

17 13. Norm Lapointe Underground Miner 9.0 ZONES EVALUATED During the 1995 season the following zones were evaluated and drilled: North, North-North, Wilby, Lower Icefall, Wilkie, Kiwi, Edge and NI. In addition limited mapping and sampling were completed at the Wombat Zone. The North, North-North, Wilby, Lower Icefall, Wilkie, Kiwi and Edge Zones are located on the Willoughby Nunatak. The NI and Wombat Zones occur on small nunataks to the south of the Willoughby. Both the North and North-North Zones are hosted by sericite-pyrite-carbonate altered hornblende-feldspar porphyry. The Wilby, Lower Icefall, Wilkie and Edge Zones are hosted by sericite-pyrite-chloritecarbonate altered volcaniclastics. The NI Zone is hosted by argillaceous tuffs. The Wombat Zone is underlain by hornblende-feldspar porphyry. 9.1 North Zone (Forty-five metres of drifting, 30 Underground drill holes-2,383.2 metres) (Figures %-4 to 37) The North and the North-North Zones are paralleling, north trending, steeply dipping zones of quartzcarbonate veining and stockwork.. Both zones occur within a 60 x 300 metre northwest trending zone of anomalous gold, silver, arsenic, antimony, lead and zinc geochemistry. Along strike to the northwest the trend is ice covered while to the south, mineralization appears to weaken near the contact with tuffaceous rocks. Vein mineralogy consists of a quartz carbonate gangue in which variable amounts of pyrite, sphalerite and galena occur. Visible gold has been observed in quartz veins at the North Zone. The area hosting the North and North-North Zones is structurally complex. According to structural consultant Dr. Roland Reid "... veins occur in three principal fracture sets: northwest and northeast strikeslip faults and north-south extension fractures. The north-south veins were generated as filled extension fractures, with some veins having been rotated during continuing strain and have experience late dextral strain. Northeast veins mov~ in dominantly sinistral oblique slip, whereas northwest veins moved in dominantly dextral oblique slip... " Faulting occurs throughout the area with the North Zone appearing to occupy an area of shearing between the North Fault on the west and the Cliffmaker on the east. Crosscutting faults with both vertical and horizontal movement occur throughout the zone. According to Reid the faulting is a product of ductile deformation with the resulting movement being minimal. Previous exploration showed both the North and North-North Zones to strike northerly, dip steeply to the west, with the plunge of mineralization being steep to the southwest. At surface, the North Zone has been traced for 100 metres with widths variable to 10 metres. Drill intersections included a 2.9 metre section averaging ounces per ton gold with 6.23 ounces per ton silver and all. 7 metre intersection averaging ounces per ton gold with 3.20 ounces per ton silver. Limited drilling of the North-North Zone returned positive results with the best intersection averaging ounces per ton gold, 0.04 ounces per ton silver over 3.8 metres. Due to steep topography the zones could not systematically be drill tested from surface. In order to provide access for the systematic drilling of the zones a 95 metre long 1.5 x 2.1 metre drift was completed The drift was located at the 1650 in elevation level approximately 70 metres below the surface expression of the North Zone. Drill testing of the North Zone was completed from stations located approximately 25 metres apart, generally at 25 m down-dip intervals. Selected drill holes were extended to test the North North Zone. The 1996 drill program outlined a high grade core that occurs at the intersection of the dominant north trending vein system with a secondary northwest trending vein system. The core is approximately 30 metres long with true widths varying from 1 to 8 metres with the overall width being approximately 3 metres. The core has been traced 75 metres down dip to the 1650 level. At depth the core decreases in

18 14 TABLE 4: NORTH ZONE-1996 DRILL RESULTS SUMMARY HOLE FROM TO INT (M) Au (opt) Ag (opt) Zn(%) ZONE 96 U North North 96 U North U North U North N-N 96 U N.A. NA North ' < < U North 96 U-7 No Significant Results 96 U < N-N N-N 96 U North

19 15 96 U North North North U North N-N 96 U North 96 U North 96 U North 96 U-15 No Significant Results ~ 96 U North North 96 U < North 96 U <0.01 North 96 U North 96 U <0.01 North U North U U North U < North 96 U North U North

20 96 U NA N.A. North U U < U I'

21 17. width and grade. Within the core mineralization is highly variable with sections being either gold or gold-silver-zinc rich. Drill results include a 3.5 metre section averaging ounces per ton gold, ounces per ton silver and 4.83% zinc. Outside of the core gold and silver values decrease rapidly. As an example hole WU 96-27, located approximately 40 metres to the south of the southern limit of the core averaged ounces per ton gold over 2 metres. Although the core contains significant gold-silver values it is limited in sized and offers little potential. Between the North and North-North Zones, narrow parallel zones of weak: to moderately anomalous auriferous quartz veining occur. These zones are limited in size and offer little potential. The North-North Zone occurs at the intersection of the North Fault with a secondary fault system. Drilling of the North-North Zone failed to locate any significant gold-silver bearing intersections. It appears that the mineralization located in the 1995 drill program is limited in size. The best hole drilled in the zone in 1996 averaged ounces per ton Au, 6.17 ounces per ton silver and 1.16% zinc over 1.7 metres. Three off section holes were drilled from the end of the adit to test the down-dip extension of surface mineralization. The holes intersected narrow zones of gold bearing quartz veining. Significant intersections include a 1 metre section, in hole WU 96-28, averaging ounces per ton gold, 0.54 ounces per ton silver and a 1.3 metre section, in hole WU 96-30, averaging ounces per ton gold, 0.78 ounces per ton silver and 2.30% zinc. 9.2 Wilby Zone (8 holes metres), (Figures 96-4 to 6,38 to 51) The Wilby Zone is located 400 metres south of the North Zone. The zone is hosted by variably altered andesitic ash and lapilli tuff. At the north end of the zone minor hornblende-feldspar porphyry dyking occurs. Contact relationships between the intrusive and volcanics are both sharp and gradational. Narrow, up to 30 em wide chlorite breccia zones occur throughout (their significance is not understood). The Wilby Zone occurs within a structurally complex area. Bedding attitudes are variable with the preferred orientation being a northerly strike with a steep west dip. Strike-slip and thrust faulting with variable movement, fracturing and jointing are common throughout. According to Reid mineralization at the Wilby, Kiwi and Lower Icefall Zones"... developed during ductile biaxial strike-slip faulting... " Exploration shows the Wilby Zone to be composed of a series of northwest striking, shallow dipping, gold bearing, semi-massive to massive pyrite-pyrrhotite bearing pods and lenses. Two types of sulphide lenses have been identified: i) barren to weakly gold bearing intrusive related, small, discontinuous lenses of massive pyrite and pyrrhotite occur and, ii) weak: to strongly gold bearing pyrite-pyrrhotite bearing lenses in which chlorite-carbonate alteration along with minor erratic quartz carbonate veining occur. Both the host and veins are mineralized. On occasion up to 3% arsenopyrite is observed. Both types of mineralization have been observed at surface and in drill core. Type i mineralization is believed to have resulted from the remobilization and concentrating of sulphides caused by the intrusion of hornblende-feldspar porphyry into pyritic tuffs. In general these lenses are small and discontinuous. Type ii lenses are interpreted to have resulted from the dumping out of gold bearing sulphides along selected fault and fracture sets into a favourable host. Exploration has identified two lenses, 1450 and Northern Deep as being Type ii. The 1450 Lens, previously referred to as the Wilby Zone, outcrops while the Northern Deep is completely buried. At

22 '\. 'f.::: 18 TABLE 5: WILBY ZONE-1996 DRILL RESULTS SUMMARY, HOLE FROM TO INT (m) Au (opt) Ag (opt) Zn(%) LENS < <0.01 N.D <0.01 N.D < < N.D N.D < < < < < < < < < < < N.D N.D. or N.D < < N.D N.D < < <0.01 ~ ""

23 or or < < N.D. N.D. N.D. N.D. N.D. N.D. N.D. N.D or < < < < N.D. N.D. N.D. N.D. N.D. e < < N.D. N.D...",~ ~. ".' J-~t~ ':\.. " I '

24 surface the 1450 Lens has been traced for 35 metres with widths variable to 8 metres. To the southeast the 1450 Lens surfaces while to the northwest it passes into the hillside. Gold distribution and grade within the 1450 and Northern Deep Lenses is erratic. No direct correlation has been observed between the sulphide present and grade. Significant gold grades occur within both the lenses and the wall rock immediately adjacent to the lenses. From drill core and surface mapping it appears that the sulphide content and the gold grade is particularly enhanced in rocks displaying strong pervasive chlorite-carbonate alteration. 20. The 1995 drilling of the 1450 Lens showed it to be at least 65 metres long with widths varying between 0.5 and 8 metres. Overall the lens strikes northwesterly and has a shallow to moderate west dip. Within the lens significant gold bearing sections were intersected. The most northerly hole drilled, W 95-53, intersected a 13 metre section averaging opt Au with 1.85 opt Ag. The 1996 drilling tested the along strike and down-dip extension of the lens. Drilling demonstrated an east-west striking cross-cutting fault, locatedjust north of hole has displaced the lens approximately 30 metres horizontally and 30 metres vertically. All of the 1996 drill holes were completed in the northern block. Although tirineralization similar to that previously encountered in the southern block was intersected the grade and length of intersection are significantly decreased. The most northerly hole drilled in the lens, located approximately 50 metres north of hole w 95-53, intersected a 3 metre section averaging 'opt Au. The deepest down-dip drill test intersected a 23.1 metre section in which several pyrite, pyrrhotite, and arsenopyrite bearing intersections occur averaging opt Au. Within this zone short, higher grade intersections occur including a 2.5 metre section averaging opt Au, a one metre section averaging opt Au and a 2 metre section averaging opt Au. Silver values are negligible throughout. The Northern Deep Lens is not exposed at surface. The lens was discovered when hole W was deepened to test for the possibility of additional lenses existing below the 1450 Lens. Hole W intersected a 20 metre section containing semi-massive pyrite bearing sulphide lenses approximately 50 metres below the 1450 Lens. Although gold grades were disappointing (the best intersection averages ounces per ton gold over 1.4 metres) additional drill testing of the lens was completed to test the determine whether the grade and thickness increased along the strike and dip extensions. Seven holes tested a 100 metre section of the Northern Deep Lens. All holes intersected a mineralized lens containing semi massive to massive pyrite and/or pyrrhotite that appears to parallel the 1450 Lens. The two most northerly holes, W and W 96-88, both intersected significant gold values. Hole W intersected a 40 metre section, between the 1403 and 1365 levels, containing several sections of auriferous, semi-massive to massive pyrite and/or pyrrhotite. Within this zone is a 2.1 metre section averaging ounces per ton gold, a 7.9 metre section, corresponding with the Northern Deep Lens that averages ounces per ton gold and a 5.5 metre section averaging ounces per ton gold, 2.90 ounces per ton silver. The cause of the higher silver values is not known. Hole was drilled to test the continuity of the lens approximately 25 metres to the north of hole Two mineralized zones were located between the 1420 and 1350 levels. The first intersection, consisting of a 14.7 metre sulphide section averaging 10% pyrite with 15% pyrrhotite, contains a 5.3 metre section averaging ounces per ton gold The second lens, interpreted as the continuation of the Northern Deep Lens averages ounces per ton gold over 11.7 metres. Included in this section is an 8.4 metre section averaging ounces per ton gold Overall the Northern Deep Lens is at least 100 metres long with significant gold bearing intersections ranging in true width from I to 9 metres. The lens has a minimal dip length of 30 metres. It is open along the strike and dip with the grade appearing to increase to the ~orthwest and at depth. Additional drilling is required to determine the extent of the lens.

25 Lower Icefall Zone (6 holes-50 1 metres), (Figures 96-4 to 6,38,40,52 to 57) The Lower Icefall Zone is located 110 metres southwest of the Wilby Zone. Geologically the zone is similar to the Wilby Zone. At surface, north trending, shallow west dipping, semi-massive to massive pyrite-pyrrhotite bearing pods and lenses have been located over a 20 x 25 metre area. Chip sampling of the lenses showed gold distribution to be highly erratic. As at the Wilby Zone, no correlation can be made between the gold grade and the sulphide present. In 1995 two holes tested the Lower Icefall Zone. Both holes intersected gold bearing sulphides with hole W intersecting a 3.6 metre section averaging ounces per ton gold The purpose of the 1996 drill program was to test the continuity of the zone along strike and down-dip. The drill program showed the Lower Icefall area to host multiple, parallel, sulphide bearing lenses with the Upper and Lower Lenses appearing to be significant. The Upper Lens surfaces while the Lower is buried. Mineralization in the Upper Lens is similar to that identified as Type ii at the Wilby Zone. Lower Lens mineralization consists of dissemi!l3tions, stringers, splotches and short massive sulphide sections containing pyrite, sphalerite and minor pyrrhotite. Drilling has traced the UpPer Lens for 45 metres: True widths are variable to 5 metres with the zone appearing to pinch and swell along strike and down-dip. Overall the lens contains 30% pyrite along with minor pyrrhotite. Quartz veining is minor. Pyrite and pyrrhotite occur as disseminations, patches and as narrow massive occurrences in both the veins and the andesitic lapilli tuff host. Gold grades within the Upper Lens are anomalous throughout but highly variable. At the south end of the lens, hole W intersected a 1.2 metre section averaging opt Au while at the north end of the zone hole W intersected a 9.4 metre section averaging ounce per ton gold Included in this section is a 2.5 metre intersection averaging ounces per ton gold Limited down-dip drill testing of the Upper Lens has been completed with holes W and 84 testing the zone approximately 30 metres down-dip from holes W and 64. Both holes intersected narrow, up to 2.5 metre sections containing 20-30% pyrite. Gold grades are weak to moderately anomalous with the best intersection being a 2.6 metre section averaging ounces per ton gold The Lower Lens occurs 30 metres below the Upper Lens. Drilling has traced the lens for 45 metres with the thicknesses varying between 2 and 5 metres. Grade and thickness appear to increase to the north and down-dip. Hole W 96-62, located at the south end of the lens, intersected a four metre section averaging ounces per ton gold with 0.74% zinc while hole W located at the north end of the zone intersected a 5 metre section averaging ounces per ton gold with 1.54% zinc that includes a 2.4 metre section averaging ounces per ton gold with 1.60% zinc. Hole W 96-83, tested the lens at depth. The hole intersected a 11.2 metre section averaging ounces per ton gold with 1.60% zinc. Included in this section are two sections the first being a metre long the other 1.4 metres that respectively averaged ounces per ton gold with 6.44% zinc and ounces per ton gold with 6.38% zinc. Both the Upper and Lower Lenses are open along strike and down-dip. 9.4 Kiwi Zone (3 holes metres), (Figure 96-4 to 6,38,49,52 to 57) The Kiwi Zone is located mid-way between the Wilby and Lower Icefall Zones. Geologically it is similar to both zones. At surface the zone contains pods and lenses of gold bearing, semi-massive pyrite and pyrrhotite similar to those"identified at the Wilby and Lower Icefall Zones. As at the Lower Icefall and Wilby Zones extensive faulting occurs throughout the zone producing both vertical and horizontal offset. It is possible that the zone is the Kiwi Zone is the along strike extension of the Lower Icefall Zone. In 1995 channel sampling of some of the mineralized outcrops returned good gold values. Results include a 4.9 saw cut averaging ounces per ton gold and a 3 metre trench averaging ounces per ton gold with 6.93 ounces per ton silver. In 1995 a one hole test of the zone failed to intersect any significant

26 22 TABLE 6: LOWER ICEFALL ZONE-1996 DRILL RESULTS SUMMARY HOLE FROM TO INT (m) Au (opt) Ag (opt) Zn(%) LENS Upper <0.01 Upper Upper Upper Lower Lower Upper Upper Upper Lower Upper < <0.01 Lower Lower Lower Upper or Upper

27 23 sulphide zones. The purpose of the 1996 drilling was to test the zone along strike and down-dip extension of the sulphide pods to ensure the zone had been adequately tested. Drilling shows the Kiwi Zone to contain multiple, stacked, pods and lenses of sulphide in which gold values ranging from to ounces per ton gold occur. The best intersection occurs in the most northerly hole drilled, W This hole intersected a 2.8 metre averaging ounces per ton gold. This intersection when projected to surface corresponds with the above mentioned saw cut trench averaging ounces per ton gold The Kiwi Zone is open along strike and down-dip. TABLE 7: KIWI ZONE-1996 DRILL RESULTS SUMMARY HOLE FROM TO INT (m) Au (opt) Ag (opt) Zn (%) < < < < < Edge Zone (2 holes metres), (Figures 96-4to 6, 58 to 61) The Edge Zone is located 200 metres north of the Wilby Zone. Underlying geology consists of both ash and lapilli tuff. Minor hornblende feldspar porphyry dyking occurs at the south end of the zone. Within the lapilli tuff, fossiliferous limestone occurs in which replacement lenses of massive pyrite along with minor pyrrhotite occur. Chip sampling by Bond Gold and Camnor personnel showed the lenses to contain gold with the best section averaging opt Au over 1.8 metre. In 1989 Bond Gold drilled two holes into the zone. Both holes intersected gold bearing sections with the best intersection averaging ounces per ton gold over 1.5 metres. The purpose of the 1996 drilling was to determine whether the grade of the zone increases with depth and along strike. Two holes were drilled with both drill holes intersecting intrusive related massive pyrite lenses. The lenses are up to 2.4 metres wide and contain little gold with the best intersection averaging ounces per ton gold over 2.2 metres. Overall the lenses strike northwesterly and have a steep west dip. The zone, although open along strike and down-dip, offers little potential. TABLE 8: EDGE ZONE-1996 DRILL RESULTS SUMMARY HOLE FROM TO INT (m) Au (opt) Ag (opt) Zn (%) < < <0.01