EMORY PLACER CLAIM Yale Region New Westminster Mining Division EVENT # 4646011 TENURE # 608187 Tenure Name: Emory NTS Map 92H/11 Approximate Centre of Tenure 121 25 12 W Longitude 49 30 44 N Latitude Report Date May 22, 2010 Tenure Owner Elmar Goldsmith FMC 227862 Work completed between October 18, 2009 and May 12, 2010 Report prepared by Elmar Goldsmith, claim owner
Table of Contents Cover Page..... 1 Table of Contents... 2 Introduction.... 3 Claim Description, Location and Access.. 3 History.... 3 Geology and Mineralogy.. 4 Summary of Work.... 5 Conclusions and Recommendations.... 6 Work Evaluation & Cost Statement.. 8 Statement of Qualifications.... 9 Map 1: Geographical Location...... 10 Map 2: Claim Area..... 11 Map 3: Contour Map of Claim Area.... 12 Map 4: Excerpt Area Reference for Map 5.. 13 Map 5: Sample Location Map... 14 Note: Unless otherwise indicated, the attached maps are based on NTS 92H/11 and are enhanced excerpts from the BC Ministry's Provincial Mapping System. - 2 -
Introduction The Emory placer property, tenure # 608187, a three cell claim, comprising 62.93 hectares, was acquired from its former owner on October 16, 2009. The processes that made Emory Bar a gold producer in the past still exist today. The Fraser continues to deliver gold from its many tributaries and Emory Creek continues to deliver its annual recharge of mineral values. In addition to gold, other mineral values such as platinum group elements (PGEs) and gemstones are possible in Emory Bar given the geology of the surrounding and contributory areas. There are no records of any investigations of PGEs or gemstones in the readily available Emory Bar literature. In this first year since acquisition, significant reconnaissance work has been conducted to evaluate the various mineral potentials (focused initially on gold potential) of the tenure. In addition to traditional gravity separation evaluations (panning, sluicing), extensive microscopic studies have been undertaken to evaluate the mineral composition of the Emory Creek and Emory Bar gravels. This report documents the sampling programs, the sample treatments, the results and the conclusions of the prospecting work on the Emory tenure. Claim Description, Location and Access The claim consists of 3 cells, 2 along the west bank of the Fraser River and one extending west upstream on Emory Creek for a total of 62.93 hectares. The cells are centered on 121 25 12 W Longitude - 49 30 44 N Latitude. The elevation ranges from about 40 metres at the Fraser River to about 110 metres at the westernmost part along Emory Creek (see Maps 1, 2 and 3). The Emory claim lies adjacent to the west side of the Fraser River about 15 km north of Hope and 7 km south of Yale on the TransCanada highway. Access is by TransCanada Highway #1 which crosses the claim about 7 km south of Yale. With the exception of periods of lingering snow in the winter months, the tenure can be accessed year-round. In the Fraser River freshet period access to significant parts of the Emory Bar are restricted due to high water. History Emory Bar has a history of gold recovery going back to 1858 when gold was discovered in this and other bars of the Fraser River. According to (mostly) anecdotal records, every known means of gold recovery has been used over the years on Emory Bar to extract the yellow treasure. After nearby Hill s Bar, Emory Bar was the second highest producing bar on the Fraser River. - 3 -
Official records of gold extraction from Emory Bar are scarce, and no records of claims or gold extraction have been found in the readily available literature. Interestingly, in the Second World War years, the province of British Columbia provided an eight-week training course in lode and placer mining conducted at a camp at Emory Creek. Successful students received prospecting and exploration work from the Province. There are no known or readily available reports related to the placer gold potential of Emory Bar or Emory Creek since this time. These relatively sparse known facts suggest that Emory Bar may continue to have potential as a gold producer if the annual recharge of mineral values is significantly high. Geology and Mineralogy The Emory claim is a simple placer gold deposit. The gold found on the claim is likely sourced from native gold in the surrounding host rocks and is deposited on the claim by alluvial action of both the Fraser River and Emory Creek. The Fraser River and Emory Creek dominate the Emory claim. Both provide the transport mode for placer mineral deposition on the claim. The source or host rocks for minerals on the claim are clearly upstream from the claim on both the Fraser and Emory Creek. Thus the geology of Emory Creek valley and its tributaries and of the Fraser valley north of the claim provide the best understanding of the geologic controls affecting the claim. Several ARIS Assessment Reports give detailed accounts of the geology of the region and will not be repeated in full within this report. For example, ARIS Report # 26571 Geological and Geochemical Assessment Report Undertaken on Santoy Resources Limited Emory Creek Property, June 7, 2001, says, in part: In the vicinity of the claims the quartz diorite Spuzzum Pluton forms most of the western portions of the claims, with a minor component of Bridge River ultramafics, Cogburn Schist and older diorites and gabbros of the Yellow Aster Group comprising the rest. The central portions of the claims are underlain primarily by the Settler Schist, which is separated to the east by the north-south trending Hope fault (forms the Fraser Canyon) from the Custer Gneiss Further to the east of the Hope Fault the Hozameen Complex of cherts, pelites, mafic volcanics, minor limestone and associated gabbro and ultrarmafic rocks are noted. Along the Hope Fault are also slices of the Paleocene and Eocene Allenby sediments and undivided ultramafic - 4 -
rocks. Intrusions east of the claims also include Early Tertiary granodiorites and monzogranites. Note: the insertions in the preceding quotation represent various map references in the original report which are not pertinent here. As a second example is ARIS Report # 26538 Geological and Geochemical Assessment Report on the Bar Gold Group, April 20, 2001, which discusses the geology of the Hill Bar area on the east side of the Fraser River north of Emory Creek. It says, in part: A major fault system striking north-south forms the Hope-Fraser River fault system. The main fault - the Hope fault -- cuts just west of Hope and parallels the west side of the Fraser River and is traceable to north of Spuzzum where it is offset by younger crosscutting faults. A section of the fault can be observed just west of the Trans Canada Highway 2-3 kilometres north of Hope. A second and probable subsidiary of the main fault, referred as the Yale fault, parallels the east side of the river, which is covered by the Bar Gold and John Waiters claims. These faults have sheared and deformed the Custer-Skagit gneiss. The gneissic rocks found along the east and west side of the river are moderately to intensely foliated paragneisses and orthogneisses. They are generally medium to coarse-grained, equigranular to porphyroblastic, leucocratic to melanocratic rocks, which have undergone intense ductile and brittle deformation. In some areas also adjacent to the faults, ductile movements have transformed the original feldspar-porphyritic rocks into augen gneisses. These two example reports and others of similar nature in the ARIS system document the local and regional geology and provide information pertinent to the placer mineral accumulations on Emory claim. Summary of Work In the time period from October 18, 2009, through May 4, 2010, the claim owner made 8 visits to the claim on his own. These visits were on October 18, 2009, October 19, 2009, October 20, 2009, December 3, 2009, January 27, 2010, February 19, 2010, April 1, 2010, and May 4, 2010. During these visits samples of the Emory Bar gravels and Emory Creek gravels were sampled. The samples were classified by screening in the field to -1/2 inch (1.27 cm). Each resulting sample was placed in a separate container and labeled. The samples were removed and transported for further processing off-site. A total of 18 samples were taken from locations as shown on the accompanying Map 5 (Map 4 shows the area sampled). The 18 samples represent a total of approximately 0.3 cubic meters of in-situ gravel. Hand panning was not carried out at the claim due to the - 5 -
water velocity in Emory Creek and the dangers posed for one person working alone in the Fraser River. In addition, on April 12, 2010, a group of 3 visited the claim and conducted panning and sample collection. Several pans of -1/2 inch (1.27 cm) gravel were processed on-site to black sand level, placed in a container and removed for further processing off-site. The total in-situ gravel tested was about 0.01 cubic meters. All holes created by the above sampling were filled and smoothed to near-original condition. In the period from October 22, 2009, through May 8, 2010, hand panning was conducted off-site on several of the transported gravels. Due to the large amounts of black sand present in the gravels from Emory Bar and the presence of clay in some of the samples, hand panning was very time-consuming. In order to expedite the processing of the transported gravels a recirculating sluice (high banker) was set up off-site. Sluice runs were made on transported gravel samples on March 20, 22, and 23, 2010, and on May 12, 2010. In each run, the concentrate from the sluice was separated by section of the sluice to develop an understanding of the behaviour of the gold. The material from each individual section of the sluice was hand panned down to the gold recovery level. The claim owner believes that the best way to evaluate the placer gold and other potential mineral potential of the Emory claim is to understand the mineralogy of the rocks and gravels that are present. A detailed microscopic examination of various samples from the transported material was undertaken by the owner based on his many years of experience in microscopy work on minerals. Over the period October 26, 2009, through May 12, 2010, the owner spent a total of 24 hours carefully preparing and examining nearly 100 slides of Emory claim material. Various treatments of the materials were conducted in slide preparation. These treatments included classification by screening into narrow particle size ranges; separation of black sand from blond sand; separation of material into highly magnetic, slightly magnetic and non-magnetic fractions; samples immersed in water or dry; pseudo thin sections; and samples potted in epoxy. The parameters examined included size and shape of gold flakes; number of gold flakes per slide (visual assay); and minerals present as evidenced by colour, crystal system, cleavage, fracture, diapheny (transparency), luster and refractive index. Conclusions and Recommendations There were fine gold colours in virtually every pan of material from every sample taken from Emory Bar. On the other hand, there was only one small flake found in all the samples taken exclusively from Emory Creek. In total, in the samples processed at the time of writing (about ½ of the total material transported) - 6 -
approximately 1000 tiny flakes of gold have been recovered totaling about 0.2 grams. While this does not appear to be very rich, the owner believes that the sampling has suggested that some parts of the claim are richer than other parts. For example, it appears from the limited sampling done to date that there is little placer gold in Emory Creek. Additional directed sampling based on these preliminary results is indicated. The small size and flat flake character of the gold as determined by microscope evaluation can lead to the development of appropriately designed recovery systems if further work indicates this is warranted. Further microscope work to identify any differences in the size and shape of the gold at various locations on the claim is required. There is a great deal of black sand in the Emory Bar gravels. Magnetic separation and microscope examination reveals that the black sand is about ¾ magnetite with the remaining black material being predominantly hematite, with possibly some chromite. Additional sampling and analysis may reveal what material is coming from Emory Creek and what originates in the Fraser River. Garnets of many colours are abundant on the claim, both in Emory Creek material and Emory Bar material. Garnets up to 3 mm diameter were recovered. Additional work may reveal some economic value for these garnets, and may help to determine to what extent they originate up Emory Creek or the Fraser River. Microscopic evaluation revealed many of the minerals that would be expected based on the reported geology of the surrounding area. Minerals and rocks seen under the microscope included quartz biotite schist, quartz biotite garnet schist, feldspars of various kinds, magnetite, hematite, quartz of various colours, epidote, jade, garnet, micas of various kinds, and minerals present in insufficient quantities to positively identify. Additional microscopy is required to determine if other minerals of possible significance are present. Based on mineral values that were mined in the Giant Mascot Mine (related geologically to upper Emory Creek) and various Assessment Reports for the area, platinum group elements (PGEs) are considered to be slightly possible on Emory claim. Further sampling and microscope evaluations are required to specifically address the possibility of PGEs. The economic potential of the Emory placer claim depends significantly on the rate of redeposition or recharge of gold onto Emory Bar and Emory Creek gravels during times of high water on the Fraser River and Emory Creek. This can only be determined by repeated sampling of the gravels over a few seasons (freshets). For all of the reasons above, the claim is being renewed for an extended period. - 7 -
Work Evaluation & Cost Statement Prospecting Work Elmar Goldsmith 8 visits from October 18, 2009 through May 4, 2010 as detailed above 18.5 hours @ $20.00 per hour labour rate $ 370.00 Elmar Goldsmith, David Goldsmith, Marilyn Goldsmith April 12, 2010 2.5 hours each ($100.00 labour, $75 supervision) $ 175.00 Total Prospecting Work $ 545.00 Hand Panning Work Off-Site Elmar Goldsmith From October 22, 2009 through May 8, 2010 8 hours @ $20.00 per hour labour rate $ 160.00 Sluicing Work Off-Site Including Hand Panning Concentrate Samples Elmar Goldsmith March 20, 22, and 23, 2010, and on May 12, 2010 17.0 hours @ $20.00 per hour labour rate $ 340.00 Microscope Slide Preparation and Microscopy Work Elmar Goldsmith October 26, 2009 through May 12, 2010 24.0 hours @ $20.00 per hour labour rate $ 480.00 Total Work Credits $ 1,525.00 Allowable Vehicle Expenses (20%) $ 305.00 Report Preparation $ 100.00 Total $ 1,930.00-8 -
Statement of Qualifications: David Goldsmith -- no prospecting experience Marilyn Goldsmith -- no prospecting experience Elmar Goldsmith: 47 years mining experience in various professional capacities for a major international mining company, including: o 3 years as a chemical lab technician o Several years progressively as a Research Technician, Research Supervisor, Research Manager, including significant microscopy work responsibilities o Several years as Technical Services Manager in charge of certain aspects of chemical analytical laboratories, geology, geotechnical and quality assurance activities o Several years as Vice President of Technical Services for one entire mining division of the company with mines in Canada and the United States, responsible for all aspects of Analytical Laboratories, Research, Geology and Geotechnical Services. o Several years of technical consulting Report Date: May 22, 2010 Signature Report Prepared by Elmar Goldsmith FMC # 227862-9 -
MAP 1 Geographical Location - 10 -
MAP 2 Claim Area Scale 1:5,000 Map 92H/11 Tenure Coordinate Reference 121 25 12 W Longitude 49 30 44 N Latitude - 11 -
MAP 3 Contour Map of Claim Area Scale 1:5,000 Map 92H/11 Tenure Coordinate Reference 121 25 12 W Longitude 49 30 44 N Latitude - 12 -
MAP 4 Excerpt Area Reference for Map 5 Scale 1:5,000 Map 92H/11 Tenure Coordinate Reference 121 25 12 W Longitude 49 30 44 N Latitude - 13 -
MAP 5 Sample Location Map Sample Locations - 14 -