ASSESSMENT REPORT I.P./RESISTIVITY AND MAGNETICS SURVEY ON THE HAUTETE PROPERTY LATITUDE: 55O 12' N LONGITUDE: 126O 07' W

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NTS: 93W1 ASSESSMENT REPORT I.P./RESISTIVITY AND MAGNETICS SURVEY ON THE HAUTETE PROPERTY LATITUDE: 55O 12' N LONGITUDE: 126O 07' W OMINECA MINING DISTRICI'. B.C. CLAIMS COVERED : TET 1-8 TIME PERIOD: MAY 18-JuNE 3. 1996 SEPT. 1996

COMINCO EXPLORATION NADA NTS: 93W1 ON THE HAUTE= PROPERTY LATITUDE: 55' LONGITUDE: 126' 12' N 07' W OMINECA MINING DISTRICT, B.C. CZAIMS COVERED : "ET 1-8 TIME PERIOD: MAY 18-JUNE 3, 1996 pt GEOLQGICAL SURVEY BRANCH ASSESSM SEPT. 1996 DAVID HALL

TABLE OF CONTENTS PAGE I INTRODUCTION... 1 Geology... 1 Location and Access... 2... I1 GEOPHYSICAL SURVEYS 2... Equipment and Procedures 2 Presentation of Results...... I11 INTERPRETATION 3 IV CONCLUSIONS... APPENDIX I STATEMENT APPENDIX I1 STATEMENT OF EXPENDITURES 6 APPENDIX I11 CERTIFICATION OF QUALIFICATIONS 7 4 5 LIST OF PLATES LOCATION MAP I.P. SURVEY GRID LOCATION AND CLAIM MAP (N=l, CHARGEABILITY PLOTTED) CHARGEABILITY, N=l CONTOUR MAP RESISTIVITY, N=l CONTOUR MAP CHARGEABILITY/RESISTIVITY PSEUDOSECTIONS: LINES 2000S,1000S,0,1000N,1500N,2000N,3000N,4000N TOTAL FIELD MAGNETIC SURVEY PROFILES PLATE NO. 440-96-1 440-96-2 440-96-3 440-96-4 4 40-9 6-5 TO 440-96-12 440-96-13

a..,..,.......:.*.! 0 Drawn by: ]Traced by: I - - HAUTETE PROPERTY

EXPLORATION COMINCO LTD. REPORT ON WESTERN CANADA I.P./RESISTIVITY AND MAGNETICS SURVEYS ON THE HAUTETE PROPERTY 0 During the time period May 18 to June 3, 1996, Induced Polarization/Resistivity [I.P./Res.] and magnetic surveys were carried out on the Hautete Property by an in-house Cominco Ltd. crew. Cominco geophysicists D. C. Hall and M, A. Price were present for the surveys. A total of 33.2 line kilometres of I.P./Res. and 41.7 kms of magnetic survey was completed. The Hautete Property is located in a region of B. C. known for porphyry style copper mineralization. The property itself is largely overburden covered however area geology and the fact that an interesting aeromagnetic feature underlays the grid area suggests the potential for a porphyry system. The I.P. and ground magnetic surveys were carried out to further evaluate this potential. This report discusses the geophysical equipment and procedures, then presents and interprets the results. GEOLOGY The Hautete property is dominantly underlain by mediumgrained dioritic intrusive rocks of late Cretaceous to Eocene age. Along the eastern edge of the property rhyolitic flows and tuffs likely belonging to the Jurrasic Hazelton Group are exposed in a series of highlands. Granodioritic to granitic stocks encountered in this area may represent feeders to the rhyolites. Copper mineralization is restricted to small showings associated with weakly deformed zones in the Cretaceous/Eocene diorites. Here it consists of weakly disseminated chalcopyrite and minor malachite occasionally associated with quartz veinlets.

2 The Hautete Property is located approximately 85 km northeast of Smithers, B.C.. at latitude 5S012'N, longitude 126 07'W. on N.T.S. 93W1. Access from Smithers is via highway 16 to Topley then onto Topley Landing on the south side of Babine Lake. A logging company ferry crosses Babine Lake and accesses the network of logging roads on the north side of Babine Lake which continue on to the Hautete Property (located between Hautete Lake and MacDougall Creek). Alternative access is from Fort St. James northwest along the Leo Creek forest service road and onto the "900" forest service road. The drive from Fort St. James is approximately 3 hours. AND PRO- A Scintrex IPR12 multi-channel time domain receiver and a IRIS VIP 3000,3 kw transmitter were used for the I.P./Res. survey. A pole/dipole electrode array was used, with the current electrode to the west of the potential electrodes. The standard 2 second ON/OFF alternating square wave was transmitted. The IPR12 receiver determines I.P. response by measuring a number of chargeability windows of specific time widths. The chargeabilities plotted on the accompanying pseudosections are the values for the time interval 120 to 1020 milliseconds after: transmitter shutoff. The resistivity values [R] are in units of ohm-metres [ohmm] and are calculated from the formula: R = H where K = 2nan[n+l] a=100m, n=1,2,3,4 I V = voltage at receiver [volts] I = transmitter current [amperes] The survey procedure is described as follows. The transmitter is stationary and connected to the movable current electrode [pair of stainless steel rods] by well insulated wire on small, easily carried spools. The I.P. receiver moves along the line and for each current location is connected to the ground by a nonpolarizing electrode [porous pot containing CuS041 at points 100, 200, 300, and 400 metres from the current electrode. As the IPR12 is a multi-channel receiver readings of n=1-4 can be taken simultaneously. After a set of readings is taken at a particular current station the whole array moves 100 metres and the process is repeated. This continues until the line is

3 0 finished, At this point the wire carrying the current has been laid out the full length of the line and must be wound in before the next line can be started. The instrumentation for the magnetic survey consisted of a pair of OMNI PLUS magnetometres, one set up as a recording base station and the other taking measurements at each point of the survey grid. At the end of a survey day the two units are connected to a computer and the day s data is transferred to the computer memory. Corrections for diurnal magnetic field variations are applied to each survey station value before plots are made. e The I.P./Resistivity data is presented in pseudosection form on Plates 440-96-5 to 12, with chargeability and apparent resistivity plotted at a scale of 1:5000. Apparent resistivity is in units of ohm-metres, chargeability values are in units of millivolts/volt [mv/v]. Chargeability anomaly bars are categorized as strong [ >30 mv/v], moderate [20-30 mv/v], and weak [12-20 mv/v]. These bars are plotted on the pseudosections to highlight anomalous chargeability zones. Also presented are chargeability and resistivity contour maps for separation n=l (plates 440-96-3, 4). The ground total field magnetic survey data is presented in profile form on (plate 440-96-13). e Results of the I.P. survey indicate a number of weakly anomalous areas, The chargeability plan map for n=l (plate 440-96-3) shows a linear chargeability feature (A) on the west side of the grid which is subparallel to the baseline and appears to correlate with a linear magnetic feature in the same area. These elevated chargeabilities correlate with the western edge of a resistivity high (500-1000 ohm-m). Outcrop in this area suggests it is underlain by a diorite intrusive containing sufficient magnetite to cause the anomalies. Zone B, an oval shaped chargeability feature, shows weakly anomalous chargeabilities (14-18 msecs) with low to moderate restivities (50-300 ohm-m) and no clear magnetic correlation. There is little or no outcrop in this area. Area C is a very well defined high resistivity feature displaying low chargeability response and moderately high magnetic response. Numerous outcrops indicate a rhyolite in this area.

. - 4 An in-house Cominco crew completed 33.2 kms of I.P./Resistivity and 41.7 kms of magnetic survey on the Hautete Property during the period May 18 to June 3, 1996. Results indicate two areas of weakly anomalous chargeabilities (12-20 mv/v). Experience with porphyry deposits in this region of B.C. suggests the magnitude of the chargeability anomaly should be at least 30-40 mv/v to indicate sufficient concentrations of mineralization to be interesting. In conclusion, chargeabilities are not sufficiently anomalous to suggest the concentration of sulphides nescessary for an economic porphyry style deposit. Report by : d C m Dyvid C. Hall, Geophysicist I Approved for Release by : Davi'bW. koyre, Manager, Exploration Western Canada Y Distribution [2] Mining Recorder [l] D. Wagner- Geologist, Western District [l] Western District, Central' Files [l] Geophysics File. Vancouver, B.C. [l] Hewitt & Company 0

5 APPENDIX I IN THE MATTER OF THE B.C. MINERAL ACT AND IN THE MATTER OF A GEOPHYSICAL PROGRAMME CARRIED OUT ON THE HAUTETE PROPERTY LOCATED 85 KMS NORTHEAST OF SMITHERS, B.C. IN THE OMINECA MINING DISTRICT OF THE PROVINCE OF BRITISH COLUMBIA, MORE PARTICULARLY N.T.S. 93W1 0 STATEMENT I, David C. Hall, of 3476 W. 22nd Avenue, in the City of Vancouver, in the Province of British Columbia, make oath and say : 1. That I am employed as a geophysicist by Cominco Ltd. and, as such have a personal knowledge of the facts to which I hereinafter depose; 2. That annexed hereto and marked as "Exhibit A" to this statement is a true copy of expenditures incurred on a geophysical survey on the Hautete Property; 3. That the said expenditures were incurred from May 18-June 3, 1996 for the purpose of mineral exploration on the above noted property. e-& LU David C. Hall Geophysicist Cominco Ltd. Dated this 13 day of September, 1996 at Vancouver, B.C.

6 APPENDIX I1 - EXHIBIT "A" 1 STATEMENT OF EXPENDITURES I HAUTETE PROPERTY - MAY-JUNE, 1996 1. LINE CUTTING: MAY 8-22, 1996 INVOICE FROM HEWITT & COMPANY (TELKWA. B.C.) $ 37,125.00 (49.5 LINE KMS CUT & CHAINED + MOBILIZATION/DEMOB.) 0 2. SALARIES OF I.P. CREW (17 DAYS): D. C. HALL M. A. PRICE S. WALKER R. FRAZER D. BRYCE M. CAMPBELL C. GAMBLE - $ 6,698.00 $ 4,930.00 $ 3.400.00 $ 2,550.00 $ 2.550.00 $ 2,550.00 $ 25,228.00-3. FOOD AND ACCOMODATION FOR I.P. CREW (17 DAYS) HOTEL AND MEALS IN SMITHERS (7 MEN,2 NIGHTS) 840.00 CAMP COSTS: ($50.00/MA~ PER DAY * 15 DAYS) $ 5,250.00 COOK ($200.00 PER DAY * 15 DAYS) $ 3,000.00 CAMP SUPPLIES $ 12,090.00 4. EQUIPMENT COSTS: VIP3000 TRANSMITTER & MOTOR 17 DAYS @ $15O/DAY $ 2,550.00 - IPR12 I.P. RECEIVER ( $100,00/DAY) $ 1,700.00 COMPUTERS(2),PRINTER,RADIOS,WIRE,ETC. $50/DAY 850.00 OMNI FLUS MAGNETOMETRES (2 @ 35.00/DAY EACH) $ 1.190.00 TRUCK RENTAL (3 TRUCKS @ $5O/DAY EACH) $ 8,840.00 5. TRANSPORTATION OF I.P. CREW FROM VANCOUVER TO SMITHERS BY AIR (7 * $345.31) $ 2,417.17 6. DATA ANALYSIS,REPORT WRITING, DRAFTING TOTAL $ 89,388.14

7 APPENDIX I11 CERTIFICATION OF QUALIFICATIONS I, DAVID C. HALL, of 3476 W. 22nd Avenue, in the City of Vancouver, in the Province of British Columbia, do hereby certify : i. THAT I graduated with a B.Sc. in Geophysics from the University of Manitoba in 1976. ii. THAT I have been actively practising Geophysics from 1976 to 1996, and am presently an employee of Cominco Ltd. Geophysicist September, 1996