R W PHENDLER P Eng GELGCAL CNSULTANT EXPLRATN AND MNNG 7360 DECURCY CRES RCHMND B C V7C 4E9 604 271 25B8 J PA5 lec rhg REPRT n the Au PRPERTY TFN AREA ALBERN MNNG DV VANCUVER SLAND BRTSH CLUMBA J fr Au RESURCES LTD by R W PHENDLER P Eng Vancuver Canada August 20 1981 MNERAL RESURCES BRANCH ASSESSMfNT REPRT 1 446 y
r 0 u 0 N v 1 NRTH WE ST TERRTRES i 1 J WHlTEHftS 1 WATSN LAC r DAWSN CEEK 1 ALBERTA G LP S t u PRPERlY PACFC CeAN 1 U S A YANCUYE R LC 1 ldl AP BRTSH CLUUBA t i20 HLE5 u f U PRPE RESvRC S LTD RY f LBRM MMNG DV SCLE 14 12 000 z 1 NTS DATE AJC 19 1 FG N
l TABLE F CNTENTS y Page PART A Summary and Cnclusins 1 Recmmendatins 2 Cst Estimate 2 ART B ntrductin 3 Lcatin and Access 3 Prperty and wnership 3 Histry 4 Gelgy and Mineralizatin 4 i j Cmment Certificatin 6 7 Assay Certificate 8 LLUSTRATNS Fig 1 Lcatin Map 1 200 Miles Fig 2 Prperty Map 1 10 000 i
PART ita C SUMMARY AND CNCLUSNS Lying n the west cast f Vancuver sland where a number f gld bearing quartz veins have been discvered the Au prperty cnsists f a number f gld and silver bearing structures that warrant additinal attentin These generally nrtherly trending znes appear t be related t the majr fault that is believed t lie within Matilda nlet and up which mineralizing slutins may have been transprted Tw distinct types f mineralizatin exist n the Au claims The steeply dipping narrw quartz veins are generally quite narrw but at least three distinct veins were bserved in the 2 zne that suggests that a number f them may be present within a wider zne that culd pssibly be explited tgether j Gld values are impressive with grades f 3 850 z 0 650 z and 3 160 z being returned acrss widths f 0 3 The gently dipping pyritic znes are smewhat mre dif ficu1t t explit and generally less cntinuus but als cntain appreciable gld and silver values They can be tested rather readily by the use f shrt vertical drill hles and this shuld be undertaken u 1 Cl
RECMMENDATNS J t is recmmended that 1 A grid be established at 100 meter intervals 2 A gechemical survey fr gid and silver be carried ut ver the claims 3 Trenching be carried ut n the 2 Zne veins by drilling and blasting 4 A prgram f trenching pssibly by backhe be carried ut n the 1 and the 3 znes 5 Shrt hle diamnd drilling be carried ut CST ESTMATE 1 Establishment f grid 12 km x 200jkm 2 400 J 2 Gechemical survey 240 samples @ 5jsample 3 Assays fr Au and Ag 240 x 4 00 4 Trenching drill blast 5 Trenching mechanical 1 200 960 3 000 10 000 6 Diamnd drilling 300 mtrs @ 100jmtr 30 000 7 Mbilizatin 8 Engineering Gelgy 5 000 5 000 9 Travel and Accmmdatin 5 000 Ttal 15 Cntingencies Grand Ttal 62 560 9 384 71 944 The sum f 72 000 shuld be made available t carry ut the abve prgram Respectfully submitted 2 R W Eng
PART lib 0 NTRDUCTN At the request f Mr M Tsuida f Au Resurces Ltd the writer examined the Au prperty n July 29 1981 He was guided by Mr B Tsuida and Mr L Hansen f Vancuver and Ahusat res pectively During the examinatin all shwings were visited and eleven chip samples were taken These were assayed by Acme Ana1 ytica1 Labratries Vancuver LCATN AND ACCESS The Au prperty is lcated abut 110 kilmeters west f A1berni and 25 kilmeters nrthwest f Tfin n the west cast f Vancuver sland in British Clumbia t is lcated n the west side f McNeil peninsula n Flres sland abut three kilmeters CJ nrth f Ahusat n Matilda nlet Access frm Tfin which can be reached by car frm Prt Alberni by taking Highway 4 t its west end is by bat fr abut 30 minutes Ahusat is the nearest village where a few peple reside amng them Mr L Hansen c vendr f the prperty The prperty rises frm sea level t abut 120 meters and cntains ample timber and water fr explratin purpses PRPERTY AND WNERSHP The Au prperty is jintly held by L Hansen M Tsuida and B Tsuida private agreement and is cmpsed f the 6 unit Au claim t was riginally staked by S Hansen q June 14 1977 2 units and transferred t L Hansen n December 29 1978 n June 8 1981 the riginal claim was abandned and the 3 H
present 6 unit claim recrd n 125 was lcated n June 10 1981 0 by L Hansen t was recrded in June 1981 The claim is being acquired by Au Resurces Ltd HSTRY The area was riginally prspected in 1902 by Mr James Beck wh discvered ccurrences f chalcpyrite and magnetite The prperty was knwn as the rmand prspect and has received cnsid erab1e attentin essentially n the west side f Matilda nlet Mr L Hansen has held the prperty since 1954 t was knwn as the Lemay prperty at that time n 1967 the prperty cnsisted f 34 mineral claims and was held by Van West Minerals Ltd A cnsiderable amunt f wrk was carried ut including trenching diamnd drilling and gephysical wrk At this time it was recgnized that McNeil peninsula cn C tained gld bearing structures and a small amunt f hand trenching was carried ut A small diamnd drilling prgram was carried ut but results are nt available Mst f the wrk was carried ut n the west side f Matilda nlet GELGY AND MNERALZATN The area in which the Au pr0perty is lcated is underlain by gneissic vlcanics and metadirite f Jurassic Age Minr bands f limestne and chert are als present interbedded with the v1 canics the frmer altered t skarns with ccurrences f cha1c pyrite and magnetite Mineralizatin in the Au claims cnsists f mineralized quartz veins and gently dipping pyritic znes within vlcanic rcks L 4 r
With the limited amunt f trenching n single mineral zne has Q been expsed ver mre than a few feet f strike length Hwever the grades returned are impressive Samples taken by the writer are as fllws Sample N width z Ag z Au Lcatin 1751 15 0 01 0 001 1 Zne quartz vein 1752 grab 0 01 0 001 1753 0 5 8 60 0 098 1 Zne flat lying pyrite zne 1754 2 0 0 08 0 006 3 Zne flat lying quartz band 1755 15 0 09 0 149 3 Zne flat pyrite zne 1756 1 0 0 03 0 012 3 Zne pyrite malachite 1757 0 3 0 01 0 003 3 Zne quartz vein 1758 0 3 2 82 3 850 2 Zne quartz vein 1759 0 3 0 89 0 650 0760 0 3 0 13 0 144 1761 0 3 2 01 3 160 5
CMMENT C The numerus shwings n the Au prperty have apparently received little serius wrk Diamnd drilling has been carried ut in the past n at least the 1 and the 2 Znes but recrds are nt available The lcatin f the gld bearing quartz veins in the 2 Zne preclude the use f mechanical equipment The steep slpes near sea level are awkward and the veins culd be extended by trenching etc A small bulldzer r backhe may be useful n the 3 and the 1 Znes and shrt vertical drill hles t investigate the gently dipping pyritic znes shuld be drilled Sme f this type f explratin may have been carried ut in the past but J recrds are bscure The gld values are impressive and the veins shuld be traced alng strike Additinal wrk is warranted Respectfully submitted Eng 6 4111
C E R T F CAT N Y R W PHENDLER f 7360 Decurcy Crescent in the Municipality f Richmnd in the Prvince f British Clumbia hereby certify as fllws 1 THAT am a registered member f the Assciatin f Prfes sina1 Engineers f British Clumbia N 4421 1963 2 THAT am a graduate f McGill University Mntreal with a Bachelr f Science degree in gelgy 3 THAT have practiced my prfessin cntinually as mine ex plratin and cnsultant gelgist fr the past 28 years in all parts f Canada the U S A Mexic Peru Clmbia and Chile 0 4 THAT have n interest directly r indirectly in the Au claims nr d wn directly r indirectly any shares f Au Resurces Ltd nr d expect t 5 THAT the infrmatin cntained in this reprt was cmpiled as a result f my examinatin f the Au claims n July 29 1981 6 THAT hereby cnsent t the publicatin f my reprt ent it led Reprt n the Au prperty A1berni Mining Divisin British Clumbia dated August 20 1981 in a prspectus r a statement f material facts P Eng 7
J M T Mr Ry Phendler 7360 Decurcy eres Richmnd B C V7C 4E9 Ahuset Prject ASSAY CERTFCATE ACME ANALYTCAL LABRATRES LT Assaying Trace Analysis 852 E Hustmgs 5t Vancuver B C V6A lr6 Telephne 253 3158 F e N 81 0948 lype f Samples Dispsltin BQ N Sample Au Ag z tn z tn N j 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 001751 001 01 1 001 01 001752 2 098 8 60 001753 3 006 08 001754 4 149 09 001755 5 001756 012 03 6 n01757 003 01 7 001758 3 850 2 82 8 001759 650 89 9 001760 144 13 10 nn1761 3 160 2 01 11 12 13 14 15 16 17 18 19 20 All reprts are the cnfidenti alprperty f dients DAlE SAMPLES RECEVED P 9 Ll3 DAlE REPRTS MALED ASSA YER J R DEAN TYE B Sc ettie CHEMST ED C ASSAV E