GEOLOGICAL REPORT ON ERA 1-8 CLAIMS, PEACHLAND, B.C. 490E100"N; 11g049' 2O1lW: NTS 82E/13W 49 Lookout Mtn., 9.7 Km NW of Peach1and.B.C. Osoyoos Mining Div., British Columbia A

ARIS SUMMARY SHEET

eologist, Kamloops Off Confidential: 90.04.12 REPORT 18652 MINING DIVISION: Osoyoos Era LAT 49 49 00 LONG 119 48 30 UTM 11 5521812 297977 NTS 082E13W Era 1-8 S): Lenard, N.C. Lenard, N.C. R: 1989, 21 Pages Tertiary,Kettie River Formation,Rhyolite Geological GEOL 200.0ha Map(s) - 1; Scale(s) - 1:5000

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I ------FILE W:

GEOLOGICAL REPORT ON ERA 1-8 CLAIMS, PEACHLAND, B.C. 490?5'001'N; 1 1 g049 '201'W: NTS 82E/13W 49 ~ookoutMtn., 9.7 Km NW of Peach1and.B.C. Osoyoos Mining Div., British Columbia

N.C. Lenard, P.Geol., P. Eng. Consulting Geologist, Westbank, B.C.

Field Work Done: June8, July 9, A~g.3~1988

Owner: N. C. Lenard Fig. 1: Index Map re Geological Report. ERA 1-8 Claims N. C. Lenard. P. Eng. Page

Introduction Summary & Conclusions General Descriptions Location & Access Topography & Climate Property & Ownership Background Regional geology & Previous Work General Geology Tertiary Volcanics

Sedimentary & Volcanic Rocks

Local Structure Work Results & Analysis Recommendations Certificate Expenditures References I1lustrations: Fig.1 IndexMap Frontispiece Fig.2 Regional Geology Map Appendix 1 Fig. 3 Area Geology Map Appendix 2 Fig.4 Claim Map Appendix 3 Fig. 5 Property, Geology, Topo Map Pocket Petrology Descriptions of Rock Samples Appendix 4 Fig.6 Tertiary Geology Map(Church, B.N. ) Appendix 5 Fig.7 Tertiary Stratigraphic Table Appendix 6 Fig.8 Tertiary Correlation Chart (B.N.Church) Appendix 7 Fig.9 Assay Results Appendix 8 -1 -

GEOLOGICAL REPORT ON THE ERA 1-8 CLAIMS

OSOYOOS MINING DIVISION, BRITISH COLUMBIA, CANADA

INTRODUCTION:

This report describes a recconnaissance geological survey on portions of the ERA 1-8 claims in the search for gold-bearing epithermal deposits in the Trepanier Rhyol ite unit of the Tertiary Kettle River Formation (6. N. Church, 1980). No record of previous assessment work exists for the claim area,nor of gold showings. The closest gold showing known to the writer is on the adjoining Oka 4 claim, reported by the operators to be in altered Nicola diorandesites on the west, lower summit of Lookout Mountain in a setting like the Hedley model. Aim of this work was to seek and map areas of epithermal alteration as leads to shallow or blind, deeper gold deposits.

SUMMARY & CONCLUSIONS:

1. The ERA claims are a block of 2-post mineral claims held in the name of N. C. Lenard, recorded Apri 1 13, 1988. 2. The property is located on the summit and south slope of Lookout Moun- tain, about 9 Km Northwest of Peachland, on the west side of Okanagan Lake. 3. Work summarized in the report consists of non-grid geological sampling and mapping. Outcrops are sparse below the summit area. No roads traverse the property. 4. The portions of the claims surveyed are underlain by rhyolite tuffs and breccias, and are bordered by basic diorandesites of Nicola age. 5. Pervasive, epithermal-style quartz alteration and veinlets in the rhyolitic beds trend southerly from the summit of Lookout Mountain, and mark an inferred fault contact with the Triassic rocks. 6. Although anomalous gold values are not present in the sampled rocks, this alteration may represent a barren silica cap with potential for blind gold deposits deeper in the system. The brown colour of parts of the silica qualifies it as of the 'jasperoid' type. 7. From the above, the Trepanier Rhyolite has potential for hosting epithermal gold deposits and warrants further exploration. GENERAL DESCRIPTIONS:

Location & Access: The ERA 1-8 claims are about 9 Km NW of Peachland, B.C. Access is via the main road of Brenda Mines, which connects at Peachland on the west side of Okanagan Lake. No roads traverse the porperty: the closest is a bush road on the adjoining Oka 4 claim, which runs part way up Lookout Mountain. A hiking trail is reported to exist from the Silver Lake forestry camp south to the summit bluffs.

Topography, Climate & Exposures: Steep talus slopes on the north and south sides of Lookout Mountain domi- nate the topography, with rolling parkland to the south and north. Climate is semi-desert to sub-alpine. It is generally snow-free from early May to late October. Elevations range from 975-1341m (3200-4400 ft.) on the claims. Outcrops below the higher elevations are not plentiful.

Property & Ownership: The property consists of the 8-units of two-post claims, staked north up the south slope and over the summit of Lookout Mountain, adjoining the north side of Brae 1 claim, and the east side of the Oka group. The BIO claim adjoins on the north.

-Claim -Units Record No. Tag No. Expiry Date Owner ERA 1-8 8 2842-2849 396442M- Jan. 13,1989 N. C. Lenard 396449M

BACKGROUND: The area was intensely explored for copper-molybdenum deposits after the

Brenda Mine discovery in the mid 1960's and for gold and base metals from ' earl i- er in the century. More recently, small showings of copper and zinc minerali- zation stimulated a search for massive sulphides without success. The adjoining Oka claims have been explored for Hedley type skarn gold deposits for the past three years in equivalent Nicola rocks. Similar prospec- ting has taken place on the claims adjoining the ERA property,north and south.

REGIONAL GEOLOGY & PREVIOUS WORK: Regional geology of the area is shown on G.S.C. Maps 538A of Cairnes,l939 and Little,l961, Map 15-1961. Both show a pendant of Triassic meta-sediments trending across the western end of the Trepanier Rhyolite beds, almost on- strike with them, and with a lobe of Triassic extending to the west. The setting of the Triassic metasediments and lavas resembles the Hedley model and has economic gold values on the adjoining Oka 4 claim, now being ex- plored by Fairfield Minerals and Placer Gold. There is little record of previous work done on the ground under the Era claims and little sign of any physical work, especially on the epithermal alte- ration discussed herein. However, one search for massive sulphides done for Johns Manville Company (Kerr.1972) extended east to the summit of Lookout Moun- tain. It revealed a zinc soil anomaly on the west side of that peak along with spotty copper highs. It was not stripped nor followed-up.

GENERAL GEOLOGY:

Bedrock units mapped on parts of the Era claims to date are:

TERTIARY KETTLE RIVER FMN. : Trepanier Rhyolite Lava and (L. Eocene) Breccias with minor Arkosic sedimentary units. U.TRIASSIC(?) NICOLA GROUP: Greenstone, tuff, quartzite, Limestone, argi 11i te, shale.

LOCAL GEOLOGY:

1. Volcanic Rocks: Tertiary rhyol itic lavas, breccias and pyroclastics constitute expo- sures and talus on these claims, largely on Era 3-8. Locally, inferred fault-related disseminationsof pyrite and chlorite and low-temperature silica flooding occur in the summit area. This forms a possible precious metal po- tential in the Trepanier Rhyolite sequence on at least Era 5 & 7 claims (Fig.5) Outcrop widths of these jasperized volcanics are 22m at site R4 and 5m at site R9. The unaltered pyroclastic is a black, glassy rock described by Dr. B.N. Church (B.C. Min. of EMPR, personal communication) as follows: "..rather fresh Tertiary rhyolite or dacite with a fair amount of glass. Number 5 has some amygdaloidal quartz. Three rusted samples of number 5 have fine quartz stringers and are the best looking for epithermal mineralization. II The writer notes that this unit suffered micro-brecciation followed by milky quartz infill of that stage giving a honey-combed effect of white quartz threads throughout the black groundmass. Later brown,metasomatic silica oblite- rates this first pattern, followed by later, sparse mi1 ky quartz veinlets. 2. Meta-Sedimentary &Volcani c Rocks: Triassic Nicola-equivalent tuffs and quartzites trend southeasterly toward the Era claims and bound them on the south in hidde~ contact. Outcrops of these beds, which are cut by altered basic dior-andesite dykes,rim the Tre- panier val canic assemblage (Fig. 2, Pocket). One such occurrence of altered diorandesite is gold-bearing nearby: on Oka 4 claim, about 700m west of the initial post of Era 7 claim. There, what has been described as 1ava feeder dyke ,is si1 i ceous and pyriti zed (personal communication: see Fairfield Minerals press release, Sept.,1987: grab sample assay of 0.45 oz goldlton). One outcrop of brecciated, pyritic Triassic tuff was mapped bear the NE corner of Oka 4 claim. It represents the sulphide-rich zone (pyrite-pyrrho- tite, copper, molybdenum) from northwest of Silver Lake. Its hidden eastern contact with the Monzonite pluton trends sub-parallel with the Trepanier Rhyolite, passing to the east of the Era claims at the present level of mapping control.

Local Structure: Structural grain of the Nicola pendant sequence north of the Era property is NW-SE and continues to the SE parallel to the Trepanier Rhyolite, with a western lobe extending from site of the Era claims, which forms the main prop- erty of Fairfield Minerals. Thus Era 1-8 are at a structural intersection that may have significant economic implications regarding structural plumbing and access for precious metals to form mineable deposits. The marine Triassic beds that host carbonate beds along the known outcrop here reflect shorelines controlled by basin-edge tectonics as at Hedley. If post-Triassic structural plumbing existed in Tertiary times, it may have contributed to the younger volcanic fault systems that produced epithermal alterations and veining on the summit of Lookout Mountain(Append. 4). The jasperized tuff beds at sites R4 & R9 and R16 may have been strata- bound permeability sheets with gentle dip that were silica-flooded in several seismic pulses, --at least three times. Trend of the R5 silicified outcrop is 2000 az. and that at R9 is similar. The R5 outcrop is exposed for 38m along strike; and R9, for 72m along strike. Distance between them is about 500m (1640 ft.). Work Results & Analysis:

This reconnaissance geological appraisal of the Tertiary and adjoining Triassic rocks on the Era claims established that an epithermal system occurs on Lookout Mountain summit, exposed on Era 5 & 7 claims. (see Assays, Append.8). The similar trend of the strongly jasperized tuffs above may reflect a fault system present , possibly rooted in underlying or adjacent Triassic strata. The relatively dense, silicified Tertiary unit(s) that lack signifi- cant gold values where tested, may represent a dense capto more permeable zones below. Alternately, this system may be too immature in structural plumb- ing to have afforded access for metallized hydrothermal media carrying preci- ous metals. More sampling is needed to determine if gold values are related to this epithermal system. Strong pyrite encrustation present at site R3 and R4 may be encouraging for other sulphides and precious metals to be present. These findings warrant expansion of the search for auriferous epithermal systems on these claims. Preliminary work by the writer to the southeast on the Trepanier Rhyolite trend located another epithermal system on the other summit in that area ( south part of Terra claim)

Expansion of Mapping is proposed on the Era 5-8 claims in the search for leads to auriferous epithermal deposits and for gold in altered diorandesites in adjoining Triassic beds where exposed. Other exploration approaches are:

Geochemical: Collect B zone soil samples at 50m stations along E-W lines spaced 1OOm apart across Era claims 5-8. Assay for gold, arsenic, antomony,molybdenum and tungsten, or for gold alone as budget resources dictate. Detail sample any resulting gold anomalies on a 25m grid and re-assay for gold.

Physical Work: Strip any significant gold anomalies for appraisal amd sampling ends.

With any positive results, plan staged exploration leading to selection of drill sites for percussion and diamond coring programs. -x-ww+w I, Neal1 Curtis Lenard, of the settlement of Westbank in the Province of British Columbia do hereby certify:

1. that I am a consulting geologist with an office mailing address of Box 863, Westbank, British Columbia, VOH 2AO. 2. that I graduated from the University of British Columbia with a Bachelor of Arts Degree in 1949 (Honors Geology), 3. that I have practised my profession continuously for thirty-nine years, 4. that I am the sole owner of the subject ERA 1-8 mineral claims, 5. that the statements made in this report are based on personal examination of the claims from June 8,1988 to August 3, 1988 and on a study of published and un- published reports on the property area, 6. that I am a member of the Associations of Professional Engi neers of British Columbia and A1 berta, 7. that no legal survey has been conducted ov.er the subject mining properties and, therefore, in accordance with the minlng laws of the appropriate jurisdiction in which such properties are situate, the existence of and the area of such properties could be in doub,t.

DATED AT: The Settlement of Westbank, in the Province of British Columbia, this Twentieth day of Feb.,1989.

Neal 1 Cur PERSONNEL:

N. C. Lenard, P. Geol. : 3 days @ $400.

TRANSPORTATION:

4WD: 3 days @ $50.00 Gas:

FIELD SUPPLIES: Topol ine and f 1aggi ng

ASSAYS:

REPORT PREPARATION: Drafting: 3 hr. @ $15.00 45.00 N.C. Lenard, P.Geo1.: 1 day @ $400. Office, reproduction costs 50.00 TOTAL DISBURSEMENTS: $1,932.23 ------

I certify that the above statement is an accurate account of the expenditures made for the geological survey of the ERA 1-8 claims, conducted over a period of three days from June 8 to Aug. 3, 1988.

Date Dei. 31, 1989 ------CAIRNES, C. E., 1937: Mineral Deposits of the West Half of Kettle River Area, B.C. Geol. Surv. Canada Paper 37-21. --RICE, H.M.A., 1960: Geology & Mineral Deposits of the Princeton Map Area, B.C. GSC Mem.243. LITTLE, H.W., 1961: Geology, Kettle River (West Half) B.C. Mao 15-1961, Geol. Surv. Canada. KERR, JOHN R., 1972 : Geological, Geophysical and Geochemical Report. Knob1 auch property, Osoyoos M. D., Asst. Rpt. 4040 B.C. Min. EMPR Church, B.N., 1980 : Preliminary Map 39: Geology of the Kelowna Tertiary Outlier (West Half) B.C.Min. EMPR

------OKULITCH, A.V., 1967:- Geology of Mount Kobau, B.C., Assessment Report 6757, Osoyoos Min. Div., B.C., Min. E. Mines Petr. Resources.

r.------PRETO V A NORTHCOTE, K.E. 1977: B.C.Ministry of Mines & Petrol. Res. Field Trip No.5, Guidebook: Nicola Vo'lcanics, Plutons & Mineral Deposits; Part B, pp. 3,4 - Section from Princeton to Hedley. ---RAY, G. E. &---- DAWSON, G. L. & SIMPSON, R., 1987:- The Geology & Controls of Skarn Mineralization in the Hedley Gold Camp, Southern British Columbia; B.C. Min. of E.M.P. Res., Paper 1987-1; Geological Fieldwork 1986. ------WHALEN, J.B. 1974:- Geological, Geochemical & Magnetometer Survey of the SIL Claims Group. Ass'~-RP~= 5319: B, C, Min. EMPet.Res. LENARD, N.C., 1989: Geology. BIO c1aim:Asst. Report 2826 B.C.Min. EMPR. LENARD, N. C. 1988 Geological Report on Brael Claim Peachland, B.C. Asst.Rept. 16921 B-C-Min-EMPR* Appendix 1 Fiq. 2: Reqional Geoloqy (Okulitch ,A, 1 To accompany ~eporton Geology of ERA 1-8 Claims, Feb.20.1989

LEGEN 0

a Triassic. Anarchist Gp

Permian. Cache Cr. GP., Blind Cr. Fm. (3A).

Lower Palaeozoie ad/or Pfe-Cambrian. Shuswap Com~lex,~onashee Gp. Intrusive . a Jurassic and/or Cretaceou+ Okanagan Batholith Complex including Oso~oos(a),Similkmeen (b), Colville (c), Oliver (d), Kruge&), Fairview (f ) intrusive bodies. --- Faults

8

FIGURE 1-3 GENERAL GEOLOGY OF THE SOUTHER^ OKANAGAN. - kppen.ci. - -F'iq.3: -Area Geol. (GSC Map 15-1961 H.W.Little) ERA Claims : Geologi.ca1 Report 13: Tertiary Volc .&Sedirner bJ.C.Lenard .P .Enq. 16: Cret.Valhalla Granitic Feb. 20, 1989 15: Cret-Nelson Granitics PRELIMINARY' SERIES 12: U.Triassic Nicola Grp.

Append. 4

PETROLOGY OF FLOAT AND OUTCROP ROCK SAMPLES Era 1-8 Claims N.C.Lenard Report 88 R No. Location: West Summit, Lookout Mtn.(Fig.5) Nb.: * Assayed

R 1 DIORITE Medium dark green, basic, disseminated pyrite,rusty frac- tures; fresh appearence. R2 META-DIORITE Pale greenish grey to white, altered, brecciated, pyritic; CALCITE veining and EPIDOTE patches. R3 META-TUFF Black fresh to cinnamon brown,JASPERIZED with chloritic green patches; faulted with crusted PYRITE infill; unaltered is crystal 1ine, glassy rhyol itic-daci tic; early and late milky quartz veinlets and rare vugs are present. R4 * META-TUFF As at R3, faulted, local concentrations of milky quartz veinlets to 1.3cm, part smoky, pyritic. R 5 META-TUFF Black-brown, as above,metasomatic alteration as above, minor milky quartz veining; abundant local chloritic alteration-later silictfied. R6 TUFF Light grey-cream, dull, rhyolitic crystal, discontinuous outcrops and talus, minor disseminated pyrite at south end. R 7 TUFF Light grey as at R6, pyritic, minor milky quartz veinlets to 1.5cm, rusty appearence. R 8 TUFF- Grey-green, very chloritic, 20 m below R9 outcrop AGGLOMERATE R9 * META-TUFF Black-cinnamon brown as at R3-5; silicification increases to south where vugs and milky quartz veinlets occur locally. RlOA META-TUFF Black pyroclastic (crystal rhyolitic tuff) dotted by light brown JASPER replacement; microbreccia structure in matrix. R1OB TUFF Black as above with no sign of replacement. Rll-18 TUFF Light grey-cream, discontinuous outcrops, fresh crystal, rhyolitic tuff partly brecciated. R19,20 TUFF Tuff as above. Location: SE slope Lookout Mtn. (Era4) R2 1 DIORITE Drk grey-black, basic, fractured, brecciated, pyritic, very rusty, a1 tered, local hydrothermal bleaching. Location: North Summit Lookout Mtn., Era 7 R22.23 DIORITE Dark grey, basic fresh. R24 TUFF Buff, brown, grey, vitric, waterlain,Triassic, brecciated in part, partly rusty: pyrite.

s.7. &w-- ""W* PRELIMINARY MAP 39 GEOLOGY OF THE KELOWNA TERTIARY OUTLIER (WEST HALF) BY B.N. CHURCH

LEGEND

CENOZOIC

VALLEY BASALT (0.762 Ma)

LAMBLY CREEK BASALT* LAVA AND BRECCIA

PLATEAU BASALT (118 Ma)

CARROT MOUNTAIN ALKALI BASALT* LAVA AND DYKES

WHITE LAKE FORMATION (OR EQUIVALENT EOCENE BEDS) '

CONGLOMERATE, SANDSTONE;AND MINOR SHALE~CLASTS OF UNDERLYING VOLCANIC ROCKS AND PRE-TERTIARY UNITS INCLUDING GRANITE; FEW CARBONACEOUS SEAMS

MARAMA FORMATION

MOUNT BOUCHERIE DACITE DOME; SIMILAR LAVA AND BRECCIA ON MOUNT LAW

MARRON FORMATION

NlMPlT LAKE MEMBER CONSISTING MOSTLY OF TRACHY- ANDESITE LAVA ACCOMPANIED BY MINOR ASH FLOW DEPOSITS ON MOUNT DROUGHT AND MOUNT LAW

KITLEY LAKE MEMBER (52.9 Ma) COMPRISING NUMEROUS TRACHYTE AND TRACHYANDESITE LAVA FLOWS COM- MONLY WlTH CONSPICUOUS GLOMEROPHENOCRYSTS OF PLAGIOCLASE AND SANlDlNE

CORYELL INTRUSION: GRANITE TO SYENITE COMPOSITION FEEDER TO KITLEY LAKE FLOWS

ANDESITE OF UNCERTAIN CORRELATION WELL EXPOSED ON MOUNT SWITE, CONSISTING OF BROWN BRECCIAS AND LAVA FLOWS WlTH QUARTZ-FILLED AMYGDALES; POS- SIBLY COGENIC WlTH THE SHATFORD CREEK ANDESITE* NEAR PENTICTON OR POSSIBLY THE 'A'ITENBOROUGH CREEK ANDESITE1* IN THE TERRACE MOUNTAIN AREA

KETTLE RIVER FORMATION (INCLUDING ASSOCIATED RHYOLITE)

TREPANIER RHYOLITE LAVA AND BRECCIAS WlTH MINOR ARKOSIC SEDIMENTARY UNITS

SPRINGBROOK FORMATION

CONGLOMERATE CHANNEL DEPOSITS COMMONLY WlTH MANY PRE-TERTIARY CHERT AND GREENSTONE CLASTS

PRE-CENOZOIC BASEMENT ROCKS

MAINLY GRANITIC INTRUSIONS OF THE OKANAGAN BATHOLITH (LOWER CRETACEOUS-UPPER JURASSIC)

AN ASSORTMENT OF CHERTS, ARGILLACEOUS ROCKS, METAVOLCANIC AND SCHISTOSE UNITS

INFORMAI N4MFS AFTFR GFOORAPHIC I nCAl ITIF9 IlhllTC hlnT Appendix 7

The principal resources of the Penticton Group are coal, precious metal deposits, uranium, and geothermal energy.

The Group consists of six well-defined formations having an aggregate thickness of about 2 500 metres in the type area near Penticton (No. 4, Figure 2). At the base are polymictic conglomerates and breccias referred to as the Springbrook Formation and coeval beds of the Kettle River Formation consisting of granite boulder conglomerate, rhyolite breccia, and tuffaceous sedimentary rocks. Above this is the Marron For- mation composed mainly of thick andesite, trachyte, and phonolitic lava flows, succeeded upward by hcitic and some andesitic domes of the Marama Formation. This is followed by volcanic breccias and lacustrine and fluvial sedimentary rocks of the White Lake Formation and, uppermost, the Skaha Formation consisting of a landslide complex and fanglomerate beds. The Group rests unconformably on pre-Tertiary granitoids, metamorphosed Mesozoic sedimentary and volcanic rocks, and older schists and gneisses. 1 2 3 4 5 6 HAT CREEK TERRACE KELOWNA PENTICTON MIDWAY REPUBLIC MTN. - LU 1 Olalla Z

W

Basalt uppar s member zW -c- W % Mlddle 0 member 13 basalt Z .L 2 Tom Thumb g Tuff Member ; ddclla

g rhyollte

Sonpoll g Madlclna Volcanlcr W U Creak Fm

g Hat Creak

x Coldwater ,-- Bad* 0' Brlan Creak Fm

,O*-b

Flgure 2. Correlation chart of maJoc Tertfary unlts. .."

Certificate

R~qistpredh~~aypr Provinc~ of Rrit i 4) Cnl ~~mhia Fig. 10 Appendix 9 a "hCk&a"Wn~Ud. Report9 Era 1-8: 130 P;mberton Ave. Geochemical North Vancouver, B.C. Grabs, Sites R4, R9B Lab Report v7P 2R5 BC (604)985- 0681 Telex 04-352667 BoNDI\RCLEGG ERA flfiq~