Talc Creek Project

New Westminster Mining Division NTS 092H12

Project Area Location: UTM NAD 83: Zone 10, 594000 East, 5486000 North

Registered Owner: Doug Warkentin Operator: Crucible Resources Ltd.

Talc Creek North Area - Geochemical Sampling Report

Project Tenure Numbers: 951349, 1017635, 1017637, 1019961

SOW Event Numbers: 5506605, 5523073

September 18, 2014

Prepared By: Doug Warkentin, P.Eng

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TABLE OF CONTENTS

Introduction ……..………….3

Location and Access ……….………..3 Tenure Information ……….………..3 Regional Geology ….……..………6 Local Geology …………..…….8 Property History ……………...…8 Summary of Work …………..….…9

Work Program ………………...9

Sampling and Data Collection ……….……...... 9 Interpretation of Results ……….……….11

References …………….….11

Author’s Qualifications …………….….12

Statement of Costs …………….….13

FIGURES

1 Talc Creek Project Location Map ……..………….4 2 Project Tenure Outline ………..……….5 3 Regional Geology, Talc and Cogburn Creek Area ………..……….7

TABLES 1 Talc Creek Project Mineral Tenures ……..………….6 2 Rock Sample Analytical Results ……………..…10

Appendix 1 – Sample Location Map

Appendix 2 – Assay Reports

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Introduction

Location and Access

The Talc Creek property lies in the Southern Lillooet Ranges of the Coast Mountains, approximately 25 km north northeast of the community of Harrison Hot Springs, on the east side of Harrison Lake. The general project location is shown in Figure 1.

Access to the property is via forestry roads from Harrison Hot Springs. From the town, located at the south end of Harrison Lake, the East Harrison Forest Service Road (FSR) provides two wheel drive access north along the lake to the Bear Creek logging camp at the mouth of Cogburn Creek. In the Cogburn Creek area, secondary logging roads connect with the East Harrison FSR. Two of these roads access the Talc Creek property, on the north and south sides of the creek. Both roads originate from the East Harrison road just to the south of the Cogburn Creek crossing. Both of these roads are gated and the south road is currently in active use, with good four wheel drive conditions to the property area and beyond. The north Talc Creek road is also in active use and in good condition in its lower sections, but deteriorates to rough high-clearance four-wheel drive condition before reaching the property area.

The boundaries of the Talc Creek property lie almost entirely within the steep-sloped Talc Creek Valley, with the exception of a small eastern extension that crosses the ridge into the neighbouring Settler Creek watershed. Old logging roads traverse the hillside almost to the crest in the southeast, but these roads are not active and the current condition is unknown. Outside of recent logging cuts, the property is heavily forested with second growth timber.

Tenure Information

The Talc Creek project area is part of the larger Talc-Zacta Project, which consists of three separate small claim blocks in the area of Talc and Cogburn Creeks. The Talc Creek block is the largest and consists of four MTO claims with a total area of 524 hectares. The four Talc Creek claims form a contiguous block stretching across the Talc Creek Valley, beginning about 2 km upstream from the confluence with Cogburn Creek. The claims are all owned by the author, and Crucible Resources Ltd. has an option to acquire 100% ownership of these claims. Details of the Talc Creek claims are shown in Table 1. Expiry dates shown in this table reflect the application of the work described in this report. There are no known underlying crown grants in the area and the closest legacy claims lie a short distance to the south and west.

Figure 2 outlines the tenures of the Talc Creek project area.

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TalcTalc CreekCreek ProjectProject

MapMapMap Center:Center:Center: 54.4781N54.4781N54.4781N 124.7082W124.7082W124.7082W Map Center: 54.4781N 124.7082W Figure 1 – Talc Creek Project Location Map

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AL

PAL JASON

HARRISON LAKE ASBESTOS

10176351017635 10176371017637 092H.052

951349951349

10199611019961

OX HOPE

EMORY ZONE

COGBURN

092H.042

MapMapMap Center:Center:Center: 49.5260N49.5260N49.5260N 121.7097W121.7097W121.7097W

Figure 2 – Project Tenure Outline

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Table 1: Talc Creek Project Mineral Tenures Tenure Number Claim Name Owner Issue Date Good To Date Area (ha) 951349 TALC CREEK 145582 (100%) 2012/feb/21 2015/feb/03 377.4 1017635 TALC N 145582 (100%) 2013/mar/08 2015/feb/03 62.9 1017637 TALC N1 145582 (100%) 2013/mar/08 2015/feb/03 21.0 1019961 TALC NE 145582 (100%) 2013/jun/01 2015/feb/03 62.9 Total Area 524.2

Regional Geology

The Talc Creek Property lies near what is interpreted as the eastern margin of the Wrangellia Terrane, near its contact with the Bridge River Terrane. The area also occupies the eastern margins of the Coast Plutonic Complex. The property lies entirely to the west of the Fraser River fault system. In this area large bodies of metamorphic rocks are intruded by plutonic quartz diorites and granodiorites. Trending in a northwest – southeast direction is a broad assemblage of older rocks including mafic to ultramafic intrusive, schists and diorites (Figure 3). These rocks, and particularly the ultramafic units, are sometimes referred to as the Hope Nickel Belt.

The Hope Nickel Belt is host to both massive and disseminated nickel or copper-nickel, mineralization associated with ultramafic rocks. Known nickel occurrences include the Giant Mascot Mine, which historically was the largest nickel producer in BC, along with less developed prospects such as Star of Emory, Cogburn, Jason and Big Nic. The ultramafic rocks can include significant bodies of peridotite, serpentinite and other ultramafic rocks carrying high levels of magnesium, such as the Emory Zone in the southwest part of the belt. To the southeast the belt is more altered and affected by the large scale quartz diorite intrusions of the Spuzzum Pluton.

The main ultramafic body at the southeast end of the Hope Nickel Belt, which hosts the Giant Mascot nickel mine is referred to as the Pacific Nickel Complex and is the most well defined portion of the belt. The rocks of the Pacific Nickel Complex form an irregular stock-like mass up to 3 kilometres across. The body includes areas of gabbro and hornblendite along with smaller sections of peridotite and dunite that hosted ore bodies of both massive and semi-disseminated sulphide mineralization. Sulphide mineralization consisted mainly of chalcopyrite and pentlandite with pyrrhotite. The northeastern half of the stock consists of barren pyroxenites and peridotites with little hornblende, while the southwestern half of the stock is a highly variable, hornblende-rich assemblage of mineralized peridotites and pyroxenites that contains seventeen orebodies of various sizes associated with the mine. These orebodies occur along a line trending about 285 degrees and many do not outcrop, being discovered through underground exploration and development. Smaller mineralized bodies of hornblende- pyroxenite and peridotite have also been discovered further to the west, including the Star of Emory, an ore body with zones of massive pyrrhotite, chalcopyrite and pentlandite.

The northwestern portion of the Hope Nickel Belt trends in a northwest-southeast direction and is bounded on both sides mainly by younger metamorphic rocks, including the Slollicum Schist package to the southwest. To the north and east there are also substantial areas underlain by intrusives of the Coast Plutonic Complex. There are also some more recent smaller granodiorite intrusives to the north and in the central part of the mafic belt. Within the belt, in addition to the large ultramafic bodies, the Cogburn Schist occupies a Central position. To the north of

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Cogburn Creek, and near the Zacta claim block, this unit is known to contain VMS style massive sulphide mineralization at the North Fork prospect. On the northeast side of the Cogburn Schist, intrusive rocks grade from diorite to Gabbro, with the bodies of ultramafic rocks tending to occur along the outside flanks of the belt, although smaller fingers and lenses of ultramafic rocks also occur within the schist. Mineralization associated with smaller mafic and ultramafic bodies has also been identified within the younger plutonic rocks on the northeast side of the belt.

KTmm – Cretaceous to Tertiary – mid amphibolite/andalusite grade metamorphic rocks KTSl – Cretaceous to Tertiary Slollicum Schist – greenstone, greenschist metamorphic rocks MKgd – Mid-Cretaceous – granodioritic intrusive rocks MKqd – Mid-Cretaceous – quartz dioritic intrusive rocks OlMigd – Oligocene to Miocene – granodioritic intrusive rocks PrPzY – Proterozoic to Paleozoic Yellow Aster Complex – dioritic intrusive rocks PzMzCS – Paleozoic to Mesozoic Cogburn Schist – greenstone, greenschist metamorphic rocks PzMzum – Paleozoic to Mesozoic - ultramafic rocks Figure 3 – Regional Geology, Talc Creek and Cogburn Creek Area

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Local Geology

The Talc Creek claim block occupies the mid part of the Talc Creek Valley, entirely within a wide section of the Hope Nickel Belt, mainly incorporating areas mapped as being underlain by Cogburn Schist, but also covering small parts of one of the main ultramafic bodies as well as some of the adjacent mafic intrusives. Smaller zones of ultramafic rocks are known to occur within the schists on the property. Airborne magnetic data is a good indicator for ultramafic rocks in this area and available data indicate a wider extent of this type of rock than that shown in regional mapping.

In the Talc Creek area there are major bodies of ultramafic rock on either side of the valley separated by schists and other mafic intrusives, including gabbro and diorite. Ultramafic units include serpentinite, pyroxenite and peridotite. Ultramafic exposures commonly contain disseminated sulphide mineralization consisting mainly of fine pyrrhotite. Work on the ultramafic body to the south of the property has also shown extensive zones of high grade magnesium, and geochemical sampling has shown areas with a unique combination of high nickel and high arsenic, together with areas of unusually high cobalt. The schist unit consists primarily of greenstone and greenschist. Faults and shears in the schist commonly contain quartz mineralization, and massive copper-zinc sulphide mineralization has been identified to the north, in an area that is also within this rock unit. A major shear in this same schist unit passes through the Zacta claim block to the north, and may be related to a shear zone that occurs in the lower part of the Talc Creek valley. This shear has also been reported to be associated with substantial numbers of quartz veins. Previous researchers have suggested a regional mesothermal system in this area, although to date no precious metal values have been directly reported from any of these veins.

While the area of the Talc Creek property has been prospected intermittently since the 1970’s including a low-resolution airborne magnetic survey and limited geochemistry, no distinct significant mineral occurrences has been reported. Past work, however, has identified some prospective anomalies, including geochemical soil and silt anomalies and magnetic anomalies. These are mainly associated with known or implied ultramafic bodies, although some soil anomalies on the north side of Talc Creek may also be associated with mineralization in schists or other mafic intrusions, and intermittent gold values in stream sediments have provided support for possible mesothermal gold mineralization.

Property History

Exploration in this area is likely to date back to the era of the Cariboo gold rush of the 1850’s and 60’s, as the main route to the goldfields prior to the building of the Cariboo wagon road was via Harrison Lake. There are very brief mentions in BC Mines Annual Reports of work in the Silver Creek area in the 1890’s and 1920’s, and a number of crown granted mineral claims were issued in the area, but there is little information regarding the nature of the work done. The first substantial record of exploration in the area of the Hope Nickel belt was the discovery of the nickel-copper deposits that became the Giant Mascot Nickel Mine around 1924. Despite the continuing exploration and development of the mine, and its operation beginning in 1958, no record has been found of exploration further to the west and northwest until the 1970’s.

Between 1959 and 1974, the Giant Nickel Mine produced 32,303,000 kg of nickel and 14,294,500 pounds of copper from 4,200,000 tonnes of ore grading 0.77% Ni and 0.34% Cu. Significant quantities of cobalt were also recovered as a by-product. In October 1, 1973 the operator reported mineable reserves of 864,974 tons grading 0.75% Ni and 0.30% Cu, with an additional indicated low grade reserve of 4,218,000 tons grading 0.33% Ni and 0.11% Cu.

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Giant Mascot formed the ‘Nickel Syndicate’ in the early 1970’s to explore the area between the mine and Harrison Lake in an effort to identify additional ore reserves. In addition to the discovery of the Star of Emory zone about 2 km to the west of the mine workings, several zones of ultramafic rocks with variable nickel mineralization were found further to the northwest in the valleys of Cogburn and Talc Creeks. The Nickel Syndicate properties included the area of the current Talc Creek property and an airborne survey was conducted over this area along with a geochemical soil sampling grid. This work showed strong magnetic anomalies associated with known ultramafic rocks, and a deep magnetic low in the vicinity of Talc Creek, which may reflect the presence of an extensive shear zone in the Cogburn Schists. The soil grid showed a fairly widespread low-level copper anomaly, together with areas of elevated nickel values in an area now covered by the Talc Creek property, but no follow-up was reported at the time.

Giant Mascot closed the mine in 1974 and had curtailed exploration efforts in the area by 1976, and there is no record of additional work in the area until 1987 when there were minor sampling programs in the area spurred by the PGM potential of the nickel mineralization. The next period of activity on the property began around 2000 where parts of both the Zacta and Talc Creek properties were explored by 606896 B.C. Ltd and Stellar Pacific Ventures. Both companies conducted small geochemical and prospecting programs within the current project boundaries. Geochemical sampling by 606896 and Stellar Pacific in the Talc Creek area confirmed and extended copper anomalies found in the 1970’s and also showed new areas of high nickel.

In 2012 and 2013 Crucible Resource carried out limited geochemical sampling aimed at confirming and extending previously reported anomalous areas in the Talc Creek area. Results showed some confirmation of copper and nickel values, as well as showing sporadic gold values, which had not been previously reported in this area.

Summary of Work

One day was spent on site on the Talc Creek property in May 2014 to continue to extend previous geochemical sampling. The work consisted mainly of geochemical sample collection and prospecting in an area to the southeast of previous work, near the southern claim boundary. The primary purpose was to extend stream sediment sampling to the southeast of gold anomalies found in stream sediments in 2013. Work by previous owners had also shown base metal anomalies in this area, and a secondary objective was to prospect potential outcrops in these anomalous areas. A total of seven stream sediment samples were collected, along with two soil samples and one rock sample.

Work Program

Sampling and Data Collection

The work forming the basis for this report was carried out during a site visit which occurred on May 27th, 2014. The work was conducted on the north side of Talc Creek, which was accessed via the Talc Creek North forestry road. All sample locations are identified on the map in Appendix 1. Assay results for the single rock sample collected are summarized in Table 2, and are included on the map. The relevant results for the stream sediment samples and the soil samples are also shown on the map in Appendix 1. The complete assay report is included in Appendix 2. The rock sample was dried, crushed, split and pulverized before being analyzed. For analysis, 0.5 grams of pulverized material were digested with aqua regia and analyzed with a standard 36 element scan by ICP-MS. Stream sediment and soil samples were dried and screened at 80 mesh before being

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digested in aqua regia and analyzed by ICP-MS in the same manner as the rock samples. All analyses were carried out by Acme Analytical Laboratories Ltd. in Vancouver.

The locations visited and samples collected are described below.

Rock Sample

During this work program only a single rock sample was collected. Outcrops in this area were relatively few, particularly in the areas of primary interest that had shown high base metal values from previous soil sampling. The sample collected came from a prominent bluff exposed near a small creek crossing along the Talc Creek North FSR. As with most of the outcrops seen, the rock in this area was primarily schist, but considerable alteration was evident, including sections of argillic schist with quartz veinlets and pyrite. Sample CR140527-1 was a grab sample chipped from several blocks that had fallen from the bluff showing quartz and iron staining. This outcrop was approximately 0.5 km to the northwest of the strong nickel anomaly reported by previous owners, and it did not show any significant values.

Table 2 - Rock Sample Description and Analytical Results Sample # Date Description Width Au Ag Cu Ni Co (m) g/t g/t % % ppm

CR140527-1 27/05/2014 Schist with Argillite and quartz veinlets grab <0.005 0.8 0.008 0.001 18.1

Stream Sediment Samples

A total of seven stream sediment samples were collected as part of this work, including larger streams and small localized drainages. Gold values were low in all samples, with the highest value of 9.1 ppb (CR140527-S2) occurring in a drainage in the northwest part of the area, closest to the area of previous anomalous results. Silver was present in all samples at low levels, with no results above 1 ppm. Base metal values reflected the known higher background levels for copper and nickel in this area, with copper ranging from about 30 to 70 ppm. Nickel values were relatively low in most samples (75 ppm or less) aside from two samples from smaller drainages in the vicinity of the known soil nickel anomaly. Sample CR140527-S3 (169 ppm Ni) also had the highest copper value, while CR140527-S7 had the highest nickel value, at 276 ppm, but had the lowest copper (31 ppm). Two samples were collected from a larger drainage at the southern claim boundary (CR140527-S4 and –S5). The upper part of this drainage carried strong base metal values in historically reported data, but no significant anomalies were seen in these stream sediments.

Soil Samples

Two soil samples were collected from gravelly soils on road cuts in the vicinity of the known nickel- in-soil anomaly in order to confirm and correlate with the historical data. Both samples showed higher nickel content, with values matching fairly well with the closest historical sample locations in this area. Somewhat stronger values were reported 1-200 meters to the northwest in the previous data. Copper was present in lesser amounts, and one of the samples (CR140527-G2) showed a gold value of 14.6 ppb, which was higher than any of the values seen in the stream sediments.

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Interpretation of Results

No significant new anomalies were identified by this work program. Gold values were generally low, indicating that anomalies previously identified to the northwest may be localized to those drainages where they were seen.

Some base metal values were found that confirmed the presence of an area of anomalous nickel values along the Talc Creek North FSR, but mineralization indicated by the historical data much higher up on the mountainside was not reflected in the lower drainages. These steep slopes tend to be very active, however, so the degree of physical connection of these drainages to the upper slopes is not known. The zone of nickel values is likely indicative of the presence of ultramafic intrusives in this area, which could host economic mineralization, as seen in other parts of this belt. Additional work to better define this zone and to seek possible outcrops up-slope could be of value. Otherwise further work should be focused on other areas where anomalous values have been found.

References

BC MINISTRY of ENERGY and MINES, Minfile Records.

CREMONESE, D.M., 2010, Geochemical Report on the Cog 6-8 Claims, for Teuton Resources Corp., BC Assessment Report #31826.

CROSBY, R.O., 1970, Report on Airborne Geophysical Surveys, Nickel Syndicate, Hope Area, British Columbia, for Giant Mascot Mines Ltd., BC Assessment Report #2583.

HASEK, T., 1971, Geological, Geochemical, Geophysical Report – COG Claim Group, for Helicon Explorations Ltd., BC Assessment Report #3635.

SADLIER-BROWN, T.L., 1987, Report on PT Claims, for International Consolidated Platinum Inc., BC Assessment Report #16294.

STEPHENSON, L.G., 2001, Geological and Geochemical Survey on the Harrison Lake Property, for 606896 B.C. Ltd., BC Assessment Report #26696.

STEPHENSON, L.G., 2002, Report on a Geological Mapping and Geochemical Stream Silting Survey on the Harrison Lake Property, for 606896 B.C. Ltd., BC Assessment Report #26803.

STEPHENSON, L.G., 2004, Geological, Geochemical and Geophysical Report on the Harrison Lake Nickel Copper Massive Sulphide Project, for Stellar Pacific Ventures, BC Assessment Report #27368.

WARKENTIN, D.D., 2012, Talc-Emory Project: Talc Creek and Morgan Areas – Exploration and Geochemical Sampling Report, for Crucible Resources Ltd., BC Assessment Report #33419.

WARKENTIN, D.D., 2013, Talc Creek Project: Talc Creek North Area – Geochemical Sampling Report, for Crucible Resources Ltd., BC Assessment Report #34184.

WARKENTIN, D.D., 2014, Talc Creek and Zacta Projects: Talc Creek North and Zacta South Areas – Geochemical Sampling Report, for Crucible Resources Ltd., BC Assessment Report #34586.

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Author’s Qualifications

I, Douglas Warkentin, P.Eng., a professional engineer with a business address at 745 East 30th Ave., Vancouver, B.C., certify that:

I have been a Registered Member of the Association of Professional Engineers and Geoscientists of the Province of British Columbia since 1992.

I am a graduate of the University of British Columbia, Vancouver, B.C. and hold a degree of Bachelor of Applied Science in Mining and Mineral Process Engineering.

I have practiced my profession as a Metallurgist and Mineral Process Engineer for 26 years.

I am currently employed as a Metallurgical Engineer by Kemetco Research Inc., Vancouver B.C., and have previously been employed as a Mineral Process Engineer by Vista Mines Inc., Coastech Research Inc., NTBC Research Corp., Biomet Mining Ltd., Blue Sky Mines Ltd., and Vizon Scitec Inc. I have also served as a Director of Duncastle Gold Corp., a TSX-Venture listed company.

Since 2001 I have acted as an independent engineering consultant for a number of mining clients.

I am a qualified person for the purposes of National Instrument 43-101 in relation to metallurgical testing and evaluation programs.

I directly conducted or supervised all sampling, sample handling and preparation related to the Talc Creek and Zacta Projects that is described in this report.

I am the sole author of this report.

I am not aware of any material fact or material change with respect to the subject matter of this technical report that is not reflected in this report, the omission to disclose which would make this report misleading.

Dated at Vancouver, B.C., this 18th day of September 2014.

Doug Warkentin, PEng. Metallurgical Engineer

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Statement of Costs

Site Reconnaissance and Sampling

Prep, Travel and Site Labour (16 hours @ $55/hr) $880.00

Transportation (2 days vehicle rental, plus fuel) $152.01

Food and Supplies (3 days) $24.86

Sample Analysis

Sample Preparation (10 samples @ $10.44/sample) $104.40

Sample Assaying (10 samples @ $16.64/sample) $166.43

Report Preparation $550.00

Total Cost $1,877.69

Appendix 1 – Sample Location Map

5487000 N

595000 E 595000 594000 E 594000

CR140527-S1 (2, 0.9, 45.4, 75.7)

CR140527-S2 (9.1, 0.8, 61, 59.4)

CR140527-1 (<0.5, 0.8, 84.1, 8.4) Claim Boundary Talc Creek

5486000 N

(CR140527-S3 (3.7, 0.8, 69.8, 168.9) CR140527-S6 (2.8, 0.8, 41, 46.2) CR140527-G2 (14.6, 0.8, 72.4, 412.3) CR140527-G1 (5, 0.6, 60.8, 347) CR140527-S7 (2.6, 0.6, 30.7, 275.9) CR140527-S5 (4.4, 0.7, 53.1, 60.8)

Sample Location Map CR140527-S4 (3.4, 0.8, 45.9, 64.4) - Rock (Au - ppb, Ag, Cu, Ni - ppm) - Silt (Au - ppb, Ag, Cu, Ni - ppm) - Soil (Au - ppb, Ag, Cu, Ni - ppm)

Map Scale 1:10,000

Appendix 2 – Assay Reports