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GEOLOGICAL SURVEY BRANCH ASSESSMENT REPORTS DATE RECEIVED NOV 1 3 1996 ASSESSMENT REPORT -. on LINE CUTTING and DIAMOND DRILLING ABITIBI MINING CORPORATION BARR PROPERTY Palmer Bar Creek Area Fort Steele Mining Division NTS 82 G/5W. Lat. 49' 29'N Long. 115O 57'W Owner and Operator: Abitibi Mining Corporation 1-675 West Hastings Street Vancouver, B.C. V6B 1N2 Work performed from July 15 to August 9, 1996 Report by: Peter Klewchuk, P.Geo October, 1996 e GEOLOGICAL SURVEY BRANCH ASSESSMENT REPORT

TABLE OF CONTENTS Page 1. INTRODUCTION 1.1 Location and Access ' 1.2 Physiography 1.3 Property 1.4 History 1.5 Scope of Present Program 2. GEOLOGY 2.1 Regional Geology 2.2 Property Geology 3. LINE CUTTING 4. DIAMOND DRILLING 5. CONCLUSIONS 6. STATEMENT OF COSTS 7. AUTHOR'S QUALIFICATIONS APPENDIX 1 DIAMOND DRILL LOG BAR 96-1 APPENDIX 2 GEOCHEMICAL ANALYSES 1 1 1 1 4 4 5 5 5 7 7 8 8 9 Following P.9 It LIST OF ILLUSTRATIONS Figure 1. Barr Property Location Map 2 Figure 2. Barr Property Claim Map 3 Figure 3. Drill Hole and Line Cutting. Location Map 6

1. INTRODUCTION 1.1 Location and Access Page 1 The Barr Property is located approximately 14 kilometers west of Cranbrook, B.C., in the drainage of Palmer Bar Creek, a south-flowing tributary of the Moyie River. The claims are in the Fort steele Mining Division, centered approximately at 49O 29' N latitude, 115' 57' W longitude on NTS map sheet 82 G/5 W (Figs. 1 & 2). Good road access to the claims exists from south of Cranbrook off Highway 3/95 via the Lumberton logging road. 1.2 Phisiography The property is situated west of the Rocky Mountain Trench. within the Moyie Range of the Purcell Mountains. Topography is moderate to steep with glacially rounded ridges; within the property area elevations range from 122 to 213 meters. Vegetation cover varies from immature to mature forests of larch, pine, spruce and fir. Considerable clear-cut logging has occurred, on the claim group in the recent past and the logged areas are in various stages of regeneration. 1.3 Property The Barr Property consists of 65 claim units in 13 2-post and 3 modified grid claims (Fig. 2 ). The claims are owned by G.M.Rodgers of Skookumchuck, B.C. and Abitibi Mining Corp. of Vancouver, B.C. 1.4 History of Previous Exploration Moyie River, Perry Creek and numerous of their tributary streams have produced considerable placer gold, with many small placer operations worked on a small scale basis. The knowledge of significant placer gold in the main drainages and tributaries of Moyie River and Perry Creek has resulted in long-standing exploration activity for bedrock sources..

b Page 2' '. Figure 1 BARR PROPERTY LOCATION MAP BCALC K?n

..... Figure 2, BMR PROPERTY CLAIM MAP Scale fm I : 31,6BC ~ 7 5 82 G/s w

Page 4 Many small lode gold occurrences have been discovered within. the Moyie River and Perry Creek drainages and a few have seen minor production. Virtually all of the lode gold has come from relatively small quartz veins, usually in association with base metal sulfides. The advent of historically high gold prices in the late 197's prompted staking which blanketed these areas of known placer gold production. Exploration activity has been constrained by the extensive coverage of glacial drift, and, although many small exploration programs have been undertaken, few have been successful at delineating drill targets. Recent logging activity in the general area of the claims has enhanced the exploration process by providing road access and exposing bedrock along haul roads, skid roads and in burned clear-cut areas. Modern interest in the Barr claim area arose when prospecting discovered widespread quartz float with visible gold in the Palmer Bar Creek area. Reconnaissance work in the area by Chapleau Resources Ltd. in 1986 and 1987 provided a progressive understanding of sources of lode gold mineralization and a genetic model for the gold deposits. In 1988, within the present Barr claim block, Chapleau Resources Ltd. discovered a large quartz flooded zone associated with syenite dikes at the intersection of the Cranbrook and Palmer Bar Faults. A 25 meter diamond drill program defined much of the geology of the deposit and demonstrated that widespread anomalous copper and gold mineralization is present although no commercial deposit was outlined. Smaller drill programs in subsequent years tested specific aspects of the deposit. 1.5 Scope of Present Program In 1996 Abitibi Mining Corporation drilled one hole to test the Cranbrook Fault portion of the Bar Deposit for the presence of gold mineralization. Further to the east, east of Palmer Bar Creek, on claims held by White Knight Resources Ltd. and Goldpac Investments Ltd., significant gold mineralization exists in association with a syenite dike within the Cranbrook Fault. The western extension of this jold mineralization was tested by the 196 drill hole.

a Page 5 2. GEOLOGY 2.1 Regional Geology The area of the Barr claims is underlain by Precambrian (Helikian) Purcell Supergroup rocks of the Aldridge, Creston and Kitchener Formations. These are intruded by Precambrian age diorite and gabbro composition sills and dikes of the Moyie Intrusions. Cretaceous quartz monzonite and granodiorite stocks occur just off the property to both east and west and related, fault-controlled syenite dikes occur within some fault zones. A complex system of NE to NNE striking normal and reverse faults occur parallel to the regional strike while a series of easterly-striking normal and reverse transverse faults cut across the regional trend at an oblique angle. This blockfaulted area appears centered on the area of the best known placer gold and it seems probable that gold mineralization is genetically related to both the structural complexity and the spatially-associated felsic intrusives. 2.2 Propery Geology The central focus of exploration attention on the area of the Barr claims has been the Bar Deposit. This is a structurallycontrolled hydrothermally-emplaced deposit of quartz, sulfides and syenite dikes within an envelope of argillic, chloritic, silicic and carbonate altered wallrock. The known part of the deposit consists of a northwest-oriented "West Limb" syenite dike and an east to northeast-oriented "North Limb" syenite dike. The two limbs coalesce in the northwest part of the deposit and on surface they form a wishbone-shaped, fold-like feature which verges to the northwest (Fig.3). The West Limb of the deposit dips steeply to the east and the North Limb dips moderately to the north, producing a deposit similar in shape to a recumbent fold with a northwest-striking, northeast-dipping axis. The axial trace of the deposit rakes steeply to the northwest. The Bar Deposit is developed at the intersection of the Cranbrook and Palmer Bar Faults. Both faults are regionallyextensive structures and are probably deep-seated.

3. LINE CUTTING Page 7 As preparation for an Induced Polarization Geophysical Survey across the area of the Bar Deposit, approximately 13, meters of line were cut. Location of the cut lines is shown on Figure 3. 4. DIAMOND DRILLING Previous diamond drilling of the Bar Deposit had not tested the Cranbrook Fault portion. To the east of the Barr Property, trenching activity undertaken by Goldpac Investments Ltd. and White Knight Resources Ltd. within the Cranbrook Fault identified significant gold mineralization associated with a syenite dike. In 1996, Abitibi Mining Corporation drilled one hole on the Barr property to test the western extension of this mineralization. Location of the drill hole is shown on Figure 3. Drill hole Bar-96-1 was collared July 29, 1996 and completed July 31, 1996. The hole is of NQ size (7.3 cm diam.) and was oriented at an azimuth of 194 degrees and an inclination of minus 45 degrees. The total length of the ho1.e is 131. meters. Drill hole Bar 96-1 was collared on the north side of the north-dipping Cranbrook Fault zone and drilled southerly to cross the fault. The hole collared in thinly bedded and laminated siltstone and silty argillite of the Lower Creston Formation. Tectonic deformation, development of minor iron sulfides and quartz veining increase downward toward the Cranbrook Fault zone which was intersected form 85.6 meters to 16.7 meters. The middle part of the fault zone is composed of a 4 to 5 meter wide syenite dike, from 89.9 to 94.75 meters. Below the fault zone, altered siltstones are interpreted to be part of the Aldridge Formation, although they are very strongly tectonically disturbed. Core was sampled across the fault zone, from 87. meters to 98.3 meters. Anomalous gold was identified within parts of the Cranbrook Fault, on both sides of the syenite dike. A complete log of the drill hole is provided as Appendix 1 and complete geochemical analyses are provided as Appendix 2.

5. CONCLUSIONS Page 8 Drill hole Bar 96-1 tested the Cranbrook Fault zone on the east fringe of the Bar Deposit. It successfully penetrated the Cranbrook Fault and established that the fault zone hosts a 4 to 5 meter wide syenite dike with associated minor gold mineralization present within altered sedimentary rocks on both sides of the dike. 6. STATEMENT OF COSTS Linecutting 13km @ $5/km $65.OO Diamond Drilling 131 meters Q $73.28/meter 96. Supervision and report 9. Total Costs $17.

7. AUTHOR'S QUALIFICATIONS Page 9 As 1. 2. 3. 4. 5. author of this report I, Peter Klewchuk, certify that: I am an independent consulting geologist with offices at 246 Moyie Street, Kimberley, B.C. I am a graduate geologist with a BSc. degree (1969) from the University of British Columbia and an MSc. degree (1972) from the University of Calgary. I am a Fellow of the Geological Association of Canada and a member of the Association of Professional Engineers and Geoscientists of the Provnce of British Columbia.. I have been actively involved in mining and exploration geology, primarily in the province of British Columbia, for the past 21 years. I have been employed by major mining companies and provincial government geological departments. Dated at 1996. Kimberley, British Columbia, this 4th day of October,

Drill Hole Record Property: District: Hole No: Length of Hole: Commenced : Completed : General Location: Go-ordinqtes: UTM : Elevation: Inclination: Azimutk Dip Test Results: Hole/Core Size \ Logged By: Objective: Location of Core: Drilled By: Type of Drill: WP7 File No: Owner: Qperator : Barr Fort Steele Bar 96-1 131. JLI 2 9- Jul- 9 6 31-Jul-96 Head of Palmer Bar Creek 115'57'Q5" Longitude, 49"29'17" latitude 5,482,m N., 575,95m E. 149- meters -45" $94" None NQ Peter Klewchuk Test Cranbrook Fault 338 Wilks Road, Cranbrook Lone Range-r Drilling Longyear 44 Tplog.1 Hastings Management Corp. 1Q.-675 W. Hqstinqs Street Vancouver, B. C., V6B 1N2 Abitibi Mining Corp. P.O. Box 215 CranbrQok, B.C., V1C 4H7

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