GEOLOGICAL BRANCH ASSESSMTNF REPORT

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A GEOCHEMICAL REPORT on the 49 CR. GROUP APPROX. 9 mi SW OF NELSON, B.C 49 CREEK AREA NELSON NINING DIVISION BRITISH COLUNBIA NINERAL CLAIM MAP N. T.S. 82-~/6 WEST LATITUDE$ 49' 27'~ LONGITUDE : 117' 2j0w for McNAHON RESOURCES LTD. by JACOB BUTULA PROSPECTOR FIELD WORK: August 26, 1982 to May 30, 1983 REPORT : August 8, 1983 GEOLOGICAL BRANCH ASSESSMTNF REPORT

TABLE OF CONTENTS 1. INTRODUCTION Page 1 2. PROPERTY AND OWNERSHIP 3, LOCATION AND ACCESS 4. PHYSIOGRAPHY 5, GEOCHEMICAL SURVEY IN SOILS 5*1 Survey Method 5-2 Sampling Method 5.3 Assay Method 5-4 Results and Interpretation 6. CONCLUSION AND RECONMENDATIONS ANNEXE I1 STATEMENT OF EXPENDITURES ANNEXE I11 ANNEXE I11 STATEMENT OF QUALIFICATIONS KAMLOOPS RESEARCH AND ASSAY LABORATORY CERTIFICATE OF GEOCHENICAL ANALYSIS LIST OF FIGURES FIGURE 1 Property Map FIGURE 2 49 CR. Group Soil Geochemistry Results

w I. INTRODUCTION The 49 Creek Group of Claims were acquired by McMahon Resources Ltd. for the purpose of locating the source of a 40 lb. boulder of gold ore brought out of the 49 creek watershed by Jim McMahon in 1970. Samples of this ore ran 20 oz. to the ton. Due to heavy overburden and scarcity of outcrops, it was decided that a geochemical survey would be most benificial. 2. PROPERTY AND OWNERSHIP The 30 claim (49 CR. ~roup) are owned by NcMahon Resources Ltd. 1423 Columbia Avenue, Trail, B.C. The 49 CR. Group consist of: JA #1 to 8 Record No. 2536 to 2543 PB #I to 8 Record No. 2770 to 2777 PB #9 to 12 Record No. 2766 to 2769 PB 85 to 6 Record No. 3159 to 3160 JD #I to 8 Record No. 2949 to 2956

w 3. LOCATION AND ACCESS The 49 CR. Group of Claims are located along 49 Creek, with 24 claims on the SW side and 6 claims on the NE side. Access to the NE Border of the claims group is 3.5 KM via the 49 Creek road from the Nelson Blewett Highway. Access to the Geochemical Survey Area is 3.5 KN up the 49 Creek roa.d, then approximately 420 meters (SW) downhill and across 49 creek. 4 4. PHYSIOGRAPHY The 49 creek group straddles 49 creek with a portion of the claims on the SW side for a width of approx. 900 by 5484 meters long starting at an elevation of 760 meters. The other portion of the claims lie on the NE side for a width of approx. 900 meters by 2700 long starting at an elevation of 800 meters. 4 Outcrops in the area are limited to steep ridges along sbme of the draws and creeks up the slope from 49 creek.

Timber covers most of the area with parts of the area, mainly the lower elevations covered with heavy underbrush. 5. GEOCHENICAL SURVEY OF SOILS. 5.1 Survey Method On Mineral claims JA #7 from a point 575 meters SE of a small creek flowing NE into 49 creek a line was run on the SW side of 49 creek following the contour line approx. 15 meters up the slope from the creek and for a distance of 1475 meters SE. From the same point a line was run downstream following the contour line approx. 15 meters up the slope from the creek for a distance of 1400 meters NW. A second line was run following the contour line approx. 50 meters above the 1st line for a distance of 1375 meters NW. The Lines were marked with flagging and stations where samples were taken were marked with flagging. Soil samples were taken at 25 meter intervals.

5.2 Sampling Method The soil samples were taken from the dark to black humus and root level of the A Horizon just above the light brown B Horizon. Soil samples were put into Brown manilla envelopes and marked with the station number. Sa.mples were dried prior to shipping to the Kamloops Research and Aseay Laboratory. A few silt samples were taken in creek and draw bottoms. 5.3 Assay Method Assays were run for AU by the Kamloops Research and Assay Laboratory (assay report G788). Geochemical Analysis Procedure Sample Preparation: A. Silts and Sediments Dry sample thoroughly and sieve through an 80 mesh stainless steel sieve. The oversize portion is discarded (unless we I have been requested to save it) and the analyses are performed on the 80 mesh portion.

B. Vegetation 29.17 grams of material are weighed and placed in 20 gm assay crucibles which are then placed in a relatively cool assay furnace and the temperature is raised gradually. The samples are left in the furnace until the organics are com- pletely burned off. The residue is then assayed. Fire Assay Re-agents 1. Litharge : 2. Sodium Carbonate : 3. Borax Glass 4. Potassium Nitrate : 5. Flour 6. Herman Inquarts : 7. Si02 C.P. C.P. C.P. C.P. C.P. C.P. Atomic Absorption Re-agents For Ag, Cu, Pb, An, Co, Cd, Ni, Mn, Fe, Cr, Mo Nitric Acid Hydrochloric Acid Aluminum Chloride : C.P. 7% C.P. 37% C.P. + 99% Pire Assay-A.A. Method for Gold Weigh 29.17 gms of sample. Fuse with re-agents as above in proportions necessary to obtain a good melt with clean pour and slag easily separated from lead button. (For silicates use flour; for sulphides use potassium nitrate. ) Cupel lead bead and place in test tube. Dissolve bead in nitric acid

then hydrochloric (3 times the amount of nitric). Bulk to 10 mls and read on atomic absorption spectrophotometer. 5.4 RESULTS AND INTERPRETATION On line 1 going upstream between L-1 ST. 1 to ST. 59 there were 3 isolated anomalous readings of the Humus sample. There was a high of 55 PPM in the silt sample at L-1 ST. 24. On line 1 ST. 1 N to 56 N going downstream only 3 blank readings were recorded between L-1 ST. 44 N and L-1 ST. 52 N. The silt sample at L-1 ST. 23 N (creek sediment) had a high of 70 PPB. On line 2 the consistancy of its readings between ST. 26 N (1st branch of 49 CR. ) downstream to ST. 55 N indica.te that the grid should be extended further downstream and uphill of these anomalous readings. The high silt 370 P.P.B. reading on the small creek at ST. 50 N indicates further sampling upstream on this branch.

6. CONCLUSIONS AND REC OMRENDAT IONS The author feels that the limited re-connaissance work done to date should be further extended upstream to cover the full length of the claims. On the results obtained to date, a grid should be laid out bordering and above the anomalous readings on line 2 ST. 26 N to ST. 55 N, to try to outline the source of gold concentration in these samples.

ANNEXE I 1. FIELD WORK Personnel J. Butula August 26, 1983 - October 15, 1983 6 days at $120/day 3; 720.00 B. McMahon 2 days at $100/day FOOD EXPENSE 8 days at $15/man day - Truck Rental 6 days X $35/da~ Geochemistry: Kamloops Research and Assay Laboratory Ltd. Invoice No. 83-0275 File No. G 788 June 16, 1983 2. OFFICE WORK Personnel J. Butula 2 days at $100/day

ANNEXE I1 STATEl'dENT OF QUALIFICATIONS I, Jacob Butula do hereby certify that I 1 Have prospected and held a valid Free Niners certificate since 1958. 2. Have attended prospectors courses in 1958, 1970, and 1983. 3. Have laid out a grid for a magnetometer survey and soil sampled the grid for Bright Stars Trio Nining Co8 of Vernon, B.C. on Kingfisher Creek to the west of Mabel lake in 1969, e 4. in the Vernon Mining Division. Have conducted a Geochemical Survey under the auspices of Peter Legart (Geologist with Serem) on the oxide M.C. Group NTS 82-~/6 East in the Nelson Mining Division in 1967. 5. Have consulted Goverment Geologist George Addy (Nelson Mining ~ivision) on Geochemical Survey Data. Respectfully submitted Jacob Butula

B# x.6 n r" -r* -- 1 --. _-_. ~j~s~$l,~~h~ & - -,4 5sa~-".y EXE,J.j.L ri7 LAV~L WSRAFQSY Cf a. I.%+-*. % Lf- t.:-b. 3 9 C CEiTtr FD ASSAYERS I 6 N p 42% ' -.*-.-- -----^- * -" -- - -..--..- C,F~SCE,VT - nrvi 03"s s c v2c 5P5 PhONE 1604,372 2784 - TELEX C49 5370 - Mr. J. Rutula 1423 Columbia Ave., Trail, B.C. VIR 1Je FILE NO - - --- - - - GEOCHEMICAL LAB REPORT June 16, 1983 DATE -- -- ---- PQALYST- L - W --- - FILE NO.-.!_8k.

GEOCHEMICAL LAB REPORT PAGE. --

GEOCHEMICAL LAB REPORT