PROSPECTING REPORT. re. Minera.1 C laims

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PROSPECTING REPORT re. Minera.1 C laims P R 1 Record #3052 (6) P R 2 Record #3053 (6) p R 3 Record #3054 (6) at Ilong.129, Latt. 58 20' in the Two Mile Creek area of Turnagain River drainage system in the Liard Mining Division of British Columbia,* Submitted by D,O,Fred.lund, prospector May 31st. 1985

TABLE OF CONTEXTS 1. Introduction Page 2 2. 1nd.ex Map Of Area Page 4 3. Technical Data, and Interpretation Page 5 4. Itemized Cost Statement Page 7 5. Statement Of ProspectoPs Qualifications Page 8 6. Detail Map 8f Mineral Claims Page 9

Page 2 INTRODUCTION Mineral Claims P R 1, P R 2, and P R 3 consist of a total of 20 units and are located at a, Longitude of 129 Degrees and a Lattitude of 58 Degrees, 20 Minutes, in the vicinity of Two Mile Creek approxfmately 3 miles up stream from its junction with Turnagain River, in The Lia,rd Mining Division of British Columbia, Map M104 I 6E. These mineral cla,ims were staked by the undersigned April 30th and June 2nd and 3rd, 1984, and subsequent to the staking until June 5th and later in July from the 26th to the 29th inclusive, prospecting exploration was carried out by the undersigned with two hired a,ssistants, We traversed the entire area covered. by the claims, sampling soil and rock formations and hand-digging numerous test holes and pits to secure appropriate samples. There being no passable roads nea.rer than the Stewart Highway, approximately 45 miles distant, the only practical access wa.s by helicopter from Dease Lake and this was the means of transport that we had to use. However during the winter while the ground is frozen a tractor road is sometimes passable by four-wheel drive vehicles. A t the higher levels, over approximately 5,000 feet altitud.e, the terrain is entirely treeless and in many pla.ates bedrock is exposed.. The lower levels along the Northern portion of the claims are sparsely covered by I coniferous trees, but these are small and of' stunted growth. The overburden soil, evidently prod%ced by local gla,ciation, appears to be quite thin in most places and includes numerous very large errant boulders.

Page3 From near the north boundary of the claims an old pack trail follows Two Mile Creek north to its junction with Turnagain River. It appears to be a relic of the old placer mining oparation on Two Mile Creek. It is accessible from the winter tractor road.,

t

TECHNICAL DATA AND INTERPRETATION Mineral cl.~,im P R 2 is located on the eastern slope of an unnamed mountain at an altitude ranging from approximtely 4,800 feet to 5,500 ft. The peak of the mountain reaches an altitude of 6,484 ft just south of the south-west corner of minerallclaim P R 3. The eastern slope, south of the peak, shows numerous outcrops of serpentine rock of a brilliant jade green color. In some places the serpentine shows a tendency toward asbestos-like fibrous consistency. Elsewhere cleavages show tdkc-like surfaces. The bulk of the mountain, especially to the north is composed of brown to black argillitic shale while to the south this same shale appears to have been altered to form the serpentine. Often the same piece of rock will be part argillitic shale and part serprntine without amy clear d.ivision between the two. A t the foot of the slope, that is, the eastern part of P R 2, the south-west part of P R 1, and. the south-east part of P R 3, the entire area is covered with ridges of glacial terminal moraine of local origin, evid.ently from the slope to the west. In ma.ny of these ridges the glacial material contains a small amount of fine native gold and pla,tlnum particles. Values appear to be in the range of 0.001 to 6.662 oz. Nu, and. 0.0005 to 0.001 oz. Pt per CU. yd. Two mile Creek flows northward. through mineral claim P R 1 A t a point approxfmatel$ half way through the claim a branch creek joins it from the south-west. Upstream along this branch creek, about loom from the junction,a series of intrusive quartz veins separate the brown-black arg'illitic shale upstream from the pale green argillite down strea,m. intrusives strike north-west and appear to dip slightly south-west The

Page 6 south-west of vertical, On Two Mile Creek, approximately 100 m. upstream from the junction, intrusives again appear with the same strike and dip directly in line to the southeast. Here there a parallel intrusive of syenite porphyry in dyke form, Down stream from these intrusives significant values in native gold show in soil and gravel samples. This is the section of Two Mile Creek which is reported to have yielded good placer gold results when the creek was worked I out by planer niners years ago. Our interpretation: the findings of this exploration indicate possibly two sources of gold on this group of claims; 1. On the western part of mineral claim P R 2 a source, now covered with overburden, from which the local glacier action moved gold-kming material into the terminal glacial moraines at the foot of the slope. 2. Intrusive dykes, possibly involving a fault zone, running mnanlbb-west to south east through P R 8 and P R 1 and continuing across Wheaton Creek and Alice Shea Creek where exposures in the valley floor would have supplied the sizable quantities of placer gold recovered down-stream in these creeks years ago. A grid pattern of geochemical soil sampling could reveal prospective locations for diamond drilling sites to determine what commercial values may be present.

Page 7 ITEMIZED COST STATEMENT TRAVEL EXPENSES ; July 24-31 White Rock to Dease Lake and return by road.; 3520, Km @ $0.18 per Km. $633.60 l!/leals supplied en route 53.15 June 4 July 26 July 30 Frontier Airways, helicopter hire Two Mile Creek to Dease Lake 392. 80 Yukon Air, helicopter hire Dease Lake to Two Mile Creek 374.82 Yukon Air, helicopter hire Two Mile Creek to Dease Lake 321.30 WAGBS FOR WORK TIlviE ON CLAIMS: June 2 1 man It 3 1 man 11 4 3 man July 26 3 men tt 27 3 men 11 a8 men 11 29 3 men Total 17 man-days @$64.00 per d.ay 1,088.00 CAMP FOOD SUPPLIES: 17 man-days @I $12.75 per day 216.75 Total prospecting expenses $3,080.45 NOTE: The above does not inc1ud.e travel or wages or camp food supplies expended. prior to the claims having been staked.

Page 8 STATEMENT OF PROSPECTOR QUALIFICATIONS E, David Oscar Fred.lund of White Rock B.C. hereby certify that: - 1. I am the holder of valid subsisting Free Miner Licence #232568 2. That I have been actively prospecting for minerals in various places for 26 years. 3. I have held Free Miners Licence in the province of aritish Columbia continuously since 1963. 4. In 1967-1968 I was actively employed by Boulder Creek Mines Ltd, an Alberta based public mining company, as field exploration d.irector and personally carried out exploration projects which included. surface testing, diamond drilling, and underground tunneling, being also holder of explosives opera tor ticket. 5. In 1974-1975 I was actively employed by Magnum Enterprises Ltd mining and shipping mineral ore to Cominco Ltd. smelter at Trail B,C. both by rail and. truck from Fort Steele B.C, in a bulk testing program. 6. In 1968 I assisted Roderick Joseph Macd.ougal1 S Ap. Sc. in Mining Engineering, P.Eng. (now deceased) in fileld surveys I I I and. preparation of mining reports on several mining properties in the Fort Steele area. 7. I am expesienced in evaluating mineral prospects by soil sampling, rock sampling, as well as pan sampling. signed, DavX COscar Predlu