SOIL GEOCHEMISTRY ENTERPRISE MINE NTS 82 F/14 W ARCTEX ENGINEERING SERVICES CONSULTANT, OWNER, OPERATOR, AUTHOR JANUARY, 1.981

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SOIL GEOCHEMISTRY ENTERPRISE MINE t SLOCAN MINING DIVISION, Bn C, NTS 82 F/14 W LATITUDE 49'49') LONGITUDE 1'19' ARCTEX ENGINEERING SERVICES I L, B, GOLDSMITH, PiENG, CONSULTANT, OWNER, OPERATOR, AUTHOR JANUARY, 1.981

TABLE OF CONTENTS SUMMARY... 1 INTRODUCTION... 2 SOIL GEOCHEMISTRY.... 2 CONCLUSIONS...... 3 RECOMMENDATIONS...... 3 COST ESTIMATE...... 4 ENGINEER'S CERTIFICATE...... 5 ITEMIZED COST STATEMENT, 1980 PROGRAMME..... 6 APPENDIX: SOIL GEOCHEMICAL ANALYSES GEOLOGY AND SOIL GEOCHEMISTRY (pocket inside back cover) " i

1 SOIL GEOCHEMISTRY ENTERPRISE MINE SLOCAN MINING' DIVISION, B. c. SUMMARY The soil geochemistry survey was continued on lines +00 S, +00 S, 24+00 S, and 28+00 S on the Enterprise and Lode 1-12 claims. An anomalous value of 9.0 ppm silver obtained at 24+00 S, 3+00 E is attributed to dispersion from the Enterprise Lode. Soil geochemistry should be continued on selected portions of the claim group with backhoe trenching if warranted.

INTRODUCTION A complete summary of location, history, production and geology was included in the 1979 report which was placed on file for assessment work. The map which was redrafted in 1980 has been amended to include the current phase of soil geochemistry. Two reverted crown grants have been added onto the western side of the group: Montezuma L 5405 Rainbow Fraction L 14543. SOIL GEOCHEMISTRY The base line from previous work was used to orient lines +00 S to 28+00 S. Sampling was done at 3-metre (100-foot) intervals. Sixtytwo soil samples were collected, using the same equipment and techniques as in the previous work. Samples at 28S, 2+00 W to 4+00 W were confused at the analytical lab, and although they are noted as 2A, 2B, 4A, and 4B on the analysis sheets, their location cannot be established. These grid locations will need to be resampled. Analyses for silver and lead were performed by Loring Laboratories I Ltd., 629 Beaverdam Road N.E., Calgary, Alberta. Samples are screened to -80 mesh and 500 mg of the fine fraction is weighed into test tubes. Aquaregia is added and the sample is digested in a water bath at 100 C for three hours. Test tubes are then bulked to the 10 ml level, mixed, and allowed to settle overnight. The samples are then put through atomic absorption, with appropriate standards, and the results reported in parts per million.

3 Background values for lead and silver were established at levels of ppm Pb and 0.6 ppm Ag. Sample 24+00 S, 3+00 E ( ppm Pb, 9.0 ppm Ag) is anomalous in silver. This sample is located on or near the trace of the Enterprise Lode; the high silver content is attributed to dispersion from the known mineral- ization. No other anomalous values were noted. CONCLUSIONS The continuation of soil geochemical exploration did not locate anomalous metal values which can be attributed to previously unknown mineralization in place. RECOMMENDATIONS 1. Several soil sample lines should be extended across the Lode 1-12 claim to search for mineralized zones remote from the Enterprise Mine. 2. Soil geochemistry should be completed to the south of line 40+00 S on the trend of the Enterprise Lode. 3. Lines 6+00 S, 1WOO S, 14+00 S, and +00 S should be soil 4 sampled to define the anomalous zone indicated in previous work, followed by trenching with a backhoe as recommended earlier.

4 COST ESTIMATE Soil geochemistry Analyses Backhoe Supervision Reporting Supplies, vehicle, travel $3,500 1,000 2,000 1,000 1,000 500 9,000 Contingencies @ 10% 900 Total $9,900 B. Goldsmith, P.Eng. Vancouver, B. C. January 4, 1981

5 ENGINEER'S CERTIFICATE LOCKE B. GOLDSMITH 1. I, Locke B. Goldsmith, am a Registered Professional Engineer in the Province of Ontario and a Registered Professional Geologist in the State of Oregon. My address is 301-55 Balsam Street, Vancouver, B. C. 2. I have a B.Sc. (Honours) degree in Geology from Michigan Technological University and have done postgraduate study at Michigan Tech, University of Nevada, and University of British Columbia. I am a graduate of the Haileybury School of Mines and am a Certified Mining Technician. 3. I have been engaged in mining exploration for 22 years. 4. I am author of the report entitled "Soil Geochemistry, Enterprise Mine, Slocan Mining Division, B. C.," dated January 4, 1981. The report ; is based on research and field work conducted and supervised by the author. 5. I control, with associates, 100% interest in the property. 6. I consent to the use of this report in a prospectus or in a statement of material facts related to the raising of funds.. Vancouver, B. C. January 4, 1981

COST STATEMENT 1. Wage Scales: L. B. Goldsm-:h, Consulting Geologist, $ January 3, $ January 4, total 1 day @ $300/day P. Harker, Prospector, November 7, 8, 9, 10, total 4 days @ $130/day $300.00 5.00 8.00 $ 8.00 2. Food: 31.40 3. Transportation: 4 trips @ 30 mi/trip @ $0.24/mile 30.00 4. Surveys : (P. Harker, grid and soil geochemical survey, $8.00) 5. Analyses 157.60 6. Report: (L. B. Goldsmith, $300.00) Drafting, M. Izard $140.00 Typing, L. Borleske 30.00 Photocopying, printing 27.00 197.00 197.00 Total $1,236.00

APPEND1 X

File No.... 2Q622... Date... Dece.mb-er-.2,-1980 Samples... Soil...... &?' ASSAY LORING LABORATORIES LTD. SAMPLE No. PPM Pb Page # 1 PPM Ag "Soil Samplest1 ENT-I~+OOS-BL 1+oow 2+00w 3+00W 4+00W 5+00W 9T-+00S- l+oow 2+00w 3+00W 4+00W 640w EBTdO+OQS-BL 1+OOE 3+00E 4+00E 5+00E 740E 8+OOE 9+00E 101-00E 11+OOE 12+00E 13+00E l4+00e 15+00E 1 WOE 17+00E tooe 38 100 32 30 15 26 14 26 22 17 26 38 22 40 24 3 yfsrpbg Qcrtifu THAT THE ABOVE RESULTS ARE THOSE u ASSAYS MADE BY ME UPON THE HEREIN DESCRIBED SAMPLES... 2.0 1.3 ; 2.5 2.0 1.o 1'1 I.I Rejects Retained one month. Pulps Retained one month unless specific arrangements made in advance. Assayer

-... To: -.,.I&-..L..B Goldsmith.,... --BQ&-2!iS...?Ilver-t on,. -3.0 c,... YE.. 2%... q. File No.... 2.0672... Date......Decer?ber 2,..1980 Samples soil............ c &jgw ASSAY Op LORING LABORATORIES LTD. Page # 2 SAMPLE No. ENT4MOS-l9+OOE 2OtOOE 21+00E 22+00E ENT-21e+oOS-BL ENT-24MOS- ENT-28+OOS-BL l+oow 2+00w 3+00W 4+00W 5+00W 1+WE 3+00E 4+WE %OOE 6+OOE 7+00E 8+OOE 9+00~ 1OtOOE l+oow 2A+OOW 2Btoow yl+oow l&l-oow 5+00W 6+00w 7+00W 8+oow 9+OOw PPM Pb 8 22 30 34 * 30 64 28 12 6 30 10 26 158 14 8 22 PPM Ag 9.0 0-5 0-5 4.0 15 3 n'ycrebg a'ycrtifu THAT THE ABOVE RESULTS ARE THOSE z ASSAYS MADE BY ME UPON THE HEREIN DESCRIBED SAMPLES... Rejects Retained one month. Pulps Retained one month unless specific arrangements made in advance. Assayer

c To:..,Mr',. L.B... Galdsmith,... -B.OX.25.,... URX%.O~..B: G.... VqC,. 2%)-... File No.... 67.2... Date... De.c.emb-er-.2,-- 1980 Samples.. Soil............... bw ASSAY Op LORING LABORATORIES LTD. SAMPLE No. ENT-28+00S-l0+0OW ENT-28tOOS- 1+OOE 2+00E 7+00E PPM Pb Page # 3 PPM 2L4 28 Ag 3 Berebp &ertifu THAT THE ABOVE RESULTS ARE THOSE u ASSAYS MADE BY ME UPON THE HEREIN DESCRIBED SAMPLES.... Rejects Retained one month. Pulps Retained one month unless specific arrangements made in advance. Assayer