3 t roc, ye23 I7 REPORT

ON THE

SILVER LEE CLAIM PENINSULA MINING DIVISION

Latitude 49O41' North Longitude 123O56' West N.T.S. 92G/12W

FOR

SIERRA NEVADA GOLD LTD. LADNER, B .C .

BY

A.S. ASHTON, P. ENG. CONTENTS

INTRODUCTION 1

LOCATION L ACCESS 1

LOCATION MAP 2 PROPERTY 3

HISTORY 3 GEOLOGY 3 CLAIM MAP 4

TOPOGRAPHIC MAP 5

GEOPHYSICS 6

CONCLUSION 6 ASSAY PLAN 7

MAGNETIC SURVEY 8 PROGAM COSTS 9 CERTIFICATE 10

APPENDIX I: Assays Back

---00000--- SIERRA NEVADA GOLD LTD. SILVER LEE CLAIM Vancouver Mining Division

INTRODUCTION The four claims are part of the old Cambrian Chieftain group but do not cover all the old workings. During the summer of 1980, a partial magnetic survey was carried out by Mr. M. Lee, covering a shear on one of the claims. Samples were taken from various showings in the zones. The work was carried out in order to ascertain the potential of the claims held.

LOCATION L ACCESS The property lies just 1 km. south of Hallwell Mountain and 6 km. north-east of Pender Harbour on north of Vancouver, B.C. The latitude is 49O41' north and 123O56 ' west. The property is reached by truck road, a distance of about seven kilometres from near Pender Harbour. -2 -

Scale: 1 - 25750 -3-

PROPERTY The Silver Lee claim comprises four units near the top of the steep western slope of the Caren Range at an elevation of approximately 975 metres. The claims are indicated on mineral map 92G/12W and are recorded in the Vancouver Mining Division.

H ISTORY Copper was discovered in 1934 by Fred Klein. Surface work was carried out with limited diamond drilling in 1935. In 1937, Sheep Creek Gold Mines optioned the property and drove two exploration tunnels. Subsequently, further work was carried out by other companies. In 1949, some bulk shipments were made by Caron Mining Ltd. to Tacoma Smelter in Washington. Two ship- ments were as follows:

266 tons AU - 15 OZ. Ag - 2032 OZ. CU 74,284 lb.

AU - 9 02. Ag - 1334 OZ. CU 55,303 lb. Spotty work was carried on over the next few years until the property was dropped in the 1970's. The Sierra Nevada Gold Ltd. organization has ground east and west of the original showings.

GEOLOGY The property lies in a roof pendant surrounded by the granitic rocks of the Coast Range. Approximately 95% of b'

AT. HALLWELL

.

SIERRA NEVADA GOLD LTD. SILVER LEE CLAIM Vancouver Mining District

CLAIM MAP . Scale: 1 - 50,000 SIERRA NEVADA GOLD LTD. SILVER LEE CLAIM Vancouver Mining District TOPOGRAPHIC MAP Scale: 1 - 50,000

-5- -6-

the rocks of the area are of volcanic origin and tend to strike north with vertical dips. Thin bedded limestone, impure chert and dolomitic limestone also occur along certain horizons. Within the grid area a series of trenches were sampled and are indicated on the enclosed map. The following results are given:

Sample cu- % -Zn % Ag .oz/ton Au .oz/ton 929 0.22 10.10 0.18 0.002 930 0.10 0.23 0.15 0.001 931 0.53 0.11 0.21 0.004

9 32 0.52 2.90 0.28 0.002

933 0.03 2.33 0.12 0.002

934 0.20 0.14 0.14 0.002

GEOPHYSICS A grid was established and readings taken at eight metre intervals on lines thirty-two metres apart. A fluxgate magnetometer was used for the survey and corrections for diurnal variation made. The magnetic anomaly appears to coincide generally with a north striking shear structure.

CONCLUSION Generally the values are low, but being within the magnetic shear zone, could be significant. Further claims should be acquired. I I 3dh \' I J'

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PROGRAM COST

Grid & Mag. Survey $ 600.00

Assays 60.00 Report 200.00

$ 860.00

. Respectfully submitted, &adz A. S. Ashton, P. Eng.

Delta, .

January 30, 1981. -9-

PROGRAM COST

Grid L Mag. Survey $ 600.00

Assays 60.00

Report 200.00 $ 860.00

Respectfully submitted,

Delta, British Columbia.

January 30, 1981. - 10 -

-CERTIFICATE OF QUALIFICATIONS

I, Arthur Sydney Ashton, do hereby certify that:

1. I am a practising geological engineer with a residence at 5441 - 7B Avenue, Delta, British Columbia.

2. I am a graduate of the University of Toronto and have been granted the degree of Bachelor of Applied Science.

3. I have been practising my profession as a geological engineer for thirty years.

4. I am a member of the Association of Professional Engineers of British Columbia and a member of the Association of Professional Engineers of Ontario.

5. The report is based on a visit to the property in August 1978 and on Government reports.

6. I have no interest in the property, nor in Sierra Nevada Gold Ltd., neither do I expect to receive any interest.

Delta, British Columbia. January 30, 1981. 111 1 -I.:\ i,tliiOli :\'I,( )I< Il,;S 1,'I'l) 705 WEST 15TH STREET NORTH VANCOUVER. B.C. Phone: 980~5814 Mrrtifirnic of $5eq

TO: Sierra Nevada Gold, PROJECT No.

c/o Cochrane Consultants, DATE Aug.13/80.

Delta. B.C. File No...... 0-622

SAMPLE No.

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