LOG NO: [MAR 0 4 IACTI~N. FILE NO:

DIGHEM AIRBORNE SURVEY ON THE WEST STEEPLES CLAIM BLOCK AND PORTION OF THE ASPEN CLAIM BLOCK

FORT STEELE MINING DIVISION 4992'N, 115022w N.T.S. 82 G/6,11,12

FOR R. H. STANFIELD 380 - 4723 1ST STREET S.W., CALGARY, ALBERTA

SURVEY BY: DIGHEM SURVEYS & PROCESSING INC., MISSISSAUGA, ONTARIO COVERING REPORT BY: MASTER MINERAL RESOURCE SERVICES LTD. CALGARY, ALBERTA GEOLOGICAL BRANCH ASSESSMENT REPORT

MARCH 1993 CONTENTS:

Pag:

INTRODUCTION 1,

LOCATION, ACCESSIBILITY, & TOPOGRAPHY

PROPERTY

GEOLOGY Lithology And Stratigraphy Types of Mineralisation

STRUCTURE & STRUCTURAL EVOLUTION '

RELATIONSHIP OF MINERAL DEPOSITS, TECTONICS & STRATIGRAPHY

AIRBORNE GEOPHYSICS

SUMMARY & CONCLUSIONS

RECOMMENDATIONS

COST STATEMENT

REFERENCES

FIGURES: AFTER PAGE:

Site Location 1 "

Index Map 2,

Tecteno - Stratigraphic Domains 5

Classification of Mineral Deposits 8 INTRODUCTION:

Dighem Surveys 8 Processing Inc. of 228 Matheson Blvd. East, Mississauga, Ontario, completed a helicopter borne DIGHEM survey over the Steeples and Aspen claims of R. H. Stanfield (But River Mineral Corporation Ltd.) in November 1992. The writer of this report was retained as consunant. Copies of Dighem's report are enclosed for assessment credit on the claims described in PROPERTY.

Preparatory wok for the project commenced in October 1992. The object of this report is to provide the background information on the tectonics, stratigraphy and mineralisation of the area. This information was used to pick the geophysical survey methods and anays, and for the interpretation of the resub.

LOCATION, ACCESSIBILITY, & TOPOGRAPHY:

The PROPERTY is located in southeastem British Columbia, approximately 30 kilometres by Highway 3 from Cranbrook. Access from the highway to the portions of the property covered by the survey is by kgging and private roads. Sections of the survey areas are only accessible by helicopter. The survey grid and the property are in the Fort Steele Mining Division, in N.T.S. 82 Gl6,11,12, centred approximately at 49"22'N, 11WE.

Inthe accompanying DIGHEM report, Block A consists of approximately 194 line kilometres of flight lines and 4 line kibmetres of tie line, while Block B comprises 235 line kilometres of flight lines and 5 line kilometres of tie lines. Flight lines were flown in 319' true direction for block A, and 325' true for block B. Both grids were on line separation of 100 metres.

Most of the area underlain by the two grids straddles the relatively modest relief of the , but the eastem portions include the rugged western edge of the Rocky Mountains (Steeples Range).

Topographic relief in the Trench portion ranges from 750 metres to approximately 900 metres, while elevations in the Rocky Mountain portions range from 900 metres to 24Ml metres, and with steeper gradients. To accompany Assessment Report for Steeples and Aspen Claim Blocks

I

Location of Claim Groups ( Steeples & Aspen Claims )

SITE LOCATION PROPERTY:

CLAIM Record #

Steeples 38 Steeples 34,36,37,38,40 308509.309851. F 1 309852309@50210198 Steeples 48 Steeples 27,28,29,30,39 209858.~~859. I1 209860209861210105 Steeples 58 Steeples 2531,32,33,35 209853210097. I1 308508.210098210099 Steeples 68 Steeples 21,23,24,25,26 209852209854. II 209855.209856209857 Aspen 1B Aspen 11,12,13,14,15 31191Z311913. II M&I83,308484JO&I85

GEOLOGY

LITHOLOGY AND STRATIGRAPHY :

The following Table (from McMechan, 1978) summarises the lithology and stratigraphy of the area, including the areas of blocks A and 6. In addition, CretaceousTertiary intwsives near the margins of the Trench are worth noting. The Trench itsell is filled with Pleistocene and Recent sediments of gravel, sand, silt, till, mlluvium and alluvium.

UPPER DEVONIAN TO PERMIAN UndlferentiatedFaiholme Gmup. Palker Formation. &haw Formation. Banff Formation. Runde Gmup. R+ Mountain Grwp: Limestom. Shale Limestom. SMe,Quamite, and Dolomific Quartzite.

MIDDLE DEVONIAN AND('?) EARLIER Upper unit (Burnais and Hamgate Fmations): SMy Limestone, Shaiy Dolomite. Limesme Brecdq and Gypsum; Basal Unit: Dolomitic sandstone, Sandy Dolomite. Breccia, Conglomerate. and Shale

CAMBRIAN 'Tanglefoot Unit: Shaly Limestone, Limestone, Sandy Shale, and Dolomite

Eager Formation: Shah Limestone. Silktom, and Quamite; Cranbrwk Formation: Quartzite and Granule Conglomerate

MIDDLE PROTEROZOIC Moyie Sill: Hornblende Mefadbarite to Metagabbm - , Scale of Kilometres 10 To accompany Assessment Report for Steeples and Aspen Claim Blocks - - -- - . - Pllsum Master. POed - - PURCELL SUPERGROUP Phillips Formation: Red Micaceous Quartzite and Siltite Gateway Formation: Green, Purple Siltite, Mimr Quartzite, and Dobmitic Siltite near top. Sheppard Formation: Stmmatoliiic Dobmite. Green, Purple Siltte. Quartzite, and Silty Dobmite 'Lava and Sediment' Unit: Massive to Amygdabidal 'Andesitic' Lava. Volcanic and Feldspathic Sandstone. Siltte, and Minor Dolomitic Sikite 'Non-Dobmitic Siltte' Unit: Green, Locally purple siltae

KITCHENER FORMATION Upper Unit (North of Dibble Creek Fauk): Silly Dolomite, Grey Dobmitii Siltte. Grey Siltite. Sandy Dolomite. and Stromatolitic Dobmite

Lower Unit (North of Dibble Creek Fauk): Green or Grey Dobmitii Siitte. Green Sifte. and minor Dolomitic Quartzite

CRESTON FORMATION Upper Subunit: Green. Lesser purple siltite. Dobmitii siltte near top, whiie quallzite

Lower Subunit: Purple, grey or green, very coarse-grained sikite to fine-grained quallzite, whine quartzite, and green, purple siltte

Upper Subunit: Purple siltite with white quartzite

Middle Subunit Green sikite

Lower Subunit: Grey siltte (north of Bull Canyon Fault), green, finegrained quartzite. with grey siltie (south of Bull Canyon FauCUnit)

ALDRIDGE FORMATION Grey Siniie and Argillte, with two Dolomitic Siltite Horizons near top. South of Bull Canyon Fauk

Quallzke, Grey Siltte and Argillite: Quartzite predominant. Siltite and Argillite predominant

TYPES OF MINERALISATION:

The following is a brief description of the types of mineralisation known in the surrounding area with similar to identical geology.

Quartz-CarbonateSulphlde VEIN SYSTEMS In SHEAR ZONE envelopes:

Vein systems can be massive, tens of feet wide to afew inches width in stockworks and horsetails. Sulphides are chalcopyrite, pyrite, pyrrhotite mainly, with minor galena and arsenopyrite. Qoartz is the major gangue mineral followed by cabnates (dolomite and siderite). Gold is associated with the sulphides and/or occurs as free gold in the quartz gangue and within silicified zones in the shear envebpes.

Host rocks are either partly silicified and chloritised argillites, argillaceous quattzites, and quartzites mainly of the Aldridge formation. Other host rocks include the argillites of the Creston and Gateway formations. The meta diorite dykes and sills of the Moyie Sill group have some degree of spatial relationship to the vein systems, but their mle in the mode of origin of mineralisation is not clear.

The Bull River Mine adjacent to block B is an excellent example of this type of mineralisation. Other related examples of this type in the immediate proximity, include the StrathmmEmpire, the Rex Zone, the Dean Zone, the Treasure Zone, the Don and Rimrock Zones.

Conformable (Syngenetlc?) Masslve Sulphlde Deposit:

These are characterised by mainly conformable (to bedding) massive sulphides within the Aldridge formation. Sulphides are galena, sphalerite, pyrrhotite, with zones of massive pyrite. Zoning of sulphides is mmmn, so is alteration, such as chloritisation and tourmaline. The host rock lithology is very similar to the Bull River Mine. The Sullivan Mine is a prime example of this type, and is located west-northwest of the survey areas, on the other side of the Trench. Location of a SulGvan Type of ore body east of the Trench, has been a long term exploration goal in this part of British Columbia.

Quartz Lode TYD~wlth Sulphldes and/or Free Gold:

The Cretaceous-Tertiary quartz-mnzonite and granodiorite intrusives in the area have potential for this type of mineralisation, and may be source areas for some of the placer gold deposits.

Vein Type Galena-Sphalerlte Minerallsatlon associated with Maior Structures:

This type of mineralisation has been found to date in the Aldridge, Creston, and the Lower Cambrian formations. Mineralisation occurs as fillings and replacement within faults and associated fissure systems. Examples of this type in the immediate vicinity are the Burt, O.K. Zones, and possibly the Great Western Zone. The Estella Mine and the Kootenay King Mine north of the survey areas are also of this type, and so is the St.Eugene Mine across the Trench to the west. PbZn Mlnerallsatlon In the Palaeozolc Carbonate Rocks:

No significant discoveries of these types have been made. Recognition of reef structures and geometry would be the key. Haloes of zinc mineralisation detected by geochemical surveys may provide clues also.

Iron Formations:

The Bull River Iron showing southeast of bkxk B is probably not a classical iron formation type, and consists of hematite concentrations associated with fissures. Sandstones within the Palaeozoic and possibly Triassic formations in the area may include concentrations of iron (magnetite), and may be associated with economic deposits of other heavy minerals.

STRUCTUREANDSTRUCTURALEVOLUTION

The survey areas, and the remainder of R.H. Stanfield claims in the immediate vicinity are divided into a number of tecteno-stratigraphic domains. The primary divisions include the ROCKY MOUNTAIN TRENCH on the west hail of the pmperty, and the WESTERN ROCKY MOUNTAINS on the east half of the pmperty.

The Western Rocky Mountains:

The Western Rocky Mountains form the eastern edge of the Purcell antidinorium, against the Rocky Mountain thrust bel. The geology is fairly complex, with stnrdural evolution mainly tied to the Hosmer Thmst.

The Western Rocky Mountains in the area and immediate vicinity are further subdivided into three major tecteno-stratigraphic terrains by EAST trending REVERSE FAULT SYSTEMS. The northernmost segment is the STEEPLES RANGE DOMAIN, whose northern boundary is malked by the DIBBLE FAULT SYSTEM, and the southern boundary by the BULL CANYON FAULT SYSTEM. The next segment, mostly immediately south, is the relatively complex SAND CREEK - DOMAIN, that includes the Lizard Range. It is bounded in the north partly by the BULL CANYON FAULT, and to the south by the SAND CREEK FAULT. Both the Steeples and the Sand Creek - Lizard Range Domains are part of the LIZARD SEGMENT of the HOSMER THRUST, and is part of the structurally highest poltionof the southern Rocky Mountains.

The southem most domain, further to the south, is the BROADWOOD ANTICLINE bounded in the north by the Sand Creek Fault (different than the Upper Sand Creek Fault), and has a southem boundary near Mt. Broadwood.

The Steeples RanGe Dornaln:

The Dibble Fault is a right lateral reverse fault dipping northward at 55 degrees. The compressional forces were NW-SE across the fault, with the East trending fault line a result of the combination of veltical component of displacement (equivalent to lOKm of stratigraphic separation across the fault - along east wall of Trench), and a horizontal conponent that moved the northem hangingwall E-NE.

The Dibble Fault coincides partly with a more ancient feature -the Dibble Creek Monocline that marked the northern edge of "Montania", a structural high. This High was the site of intermittent, basement-controlled block faulting that controlled Purcell sedimentation and caused drape folding in the eady Palaeozoic. This monocline and an overlying gypsum deposit controlled the configuration and evolution of the Dibble Fault (and the Lizard Fault further southeast). The gypsum bed is partly preserved in the footwall of the fault and exhibits little evidence of stress, but the more competent hanging wall formations are truncated by the fault.

In essence, the Dibble Creek fault placed rocks formed north of the monocline over mcks deposited on top of the monocline. However, the current stratigraphy is also a result of the fact that pdor to the fault, deposition in the Palaeozoic was restricted on the Steeples side of the monocline (structural high), and the pre-Devonian unconformity cut deeper into the Purcell formations on this high. As a result, in the Steeples Domain there is only a thin veneer of Devonian mcks, while north of the Dibble Fault the Palaeozoic section indudes a more complete section from Cambrian to the Ordovician, that intewenes between the Precambrian Purcell and the Devonian formations.

In addition, as the mck mass overrode the monocline, there was gravitational resistance to upward displacement, causing NE TRENDING THRUST faults, folds and cleavage in the mks. As the mass went over the crest of the monocline it was subjected to lateral gravitational spreading (southeastward extension) causing new NE TRENDING NORMAL FAULTS or converting older NE trending thrust faults to extension (normal) faults. The Sand Creek - Llzard Range Domaln:

This domain is divided into two longitudinal sections by the NW trending UPPER SAND CREEK thrust fault. The western segment is designated by us as the SAND CREEK SECTION, and the eastem segment is the LIZARD RANGE SECTION.

The BULL CANYON FAULT maks the northem boundary of the Sand Creek Section. It is a left-lateral reverse fault with about 2-3 Km of stratigraphic separation, and dips southward. The ba~sof the fault suggests that its origin is tied into the stress assodated with the Dibble monocline. Also, the contrasts in the Purcell succession acmss the fault suggest that it may folbw the kcus of an older structure that controlled Purcell deposition. Although the Lower Purcell gmup of m& are found on both sides of the faun, the NE trending structures in the Steeples Domain, north of the fault & not extend on to the hangingwall side of this fault. In addition, the large anticline north of the fault (in the Steeples Domain) is not one of the NE trending structures caused by compression during movement on the Dibble fault, bul is formed during the Bull Canyon Fault displacement, and does not have a counterpart on the hangingwall (south) side of the fault.

THE ROCKY MOUNTAIN TRENCH

The Rocky Mountain Trench underlies mst of the block A and block B areas of the survey. Topographically it is very distinct from the Rocky Mountains, and includes the valley of the system in this area. However, its true structural eastem margin is variable, partly because of thrust faulting northeastward over the tecteno-stratigraphic elements of the Rocky Mountains, and partly due to the cut back eastward of the faun-line scarp that marks the normal-faulted edge of the Trench. The longitudinal Murray Lake Fault system probably represents the pre-emsional position of the fault scarp.

Amrding to the literature, the portion of the Trench in this area is synclinal with major west dipping faults on its east side. Details of the nature of faulting are not discussed here, but features significant to the location of economic mineral deposits are referred to.

The flexuring of the Murray Lake fault system at Bull River and the NE trend of portion of the Bull Canyon Fault system may be due to back-sliding (reversal of the older displacement to the NW), that also caused hinge faults transverse to the Trench, i.e. N and NE trends. Similar NE trends are the Sand Mountain and Supply Creek Faults in the Sand Creek Section of the Sand Creek - Lizard Range Domain of the Rocky Mountains.

Another evidence that block faulting rather than strike slip faulting resulted in the formation of the Trench in this area, is the continuation of major Palaeozoic-Mesozoicstructures across the trench, e.g. the Moyie-Dibble Fault system. These cross features are also probably responsible for the formation of structural lows within the Trench, which are detectable by gravity surveys. One such stNctural bw is bcated south of the property near Jaffray. Gravity surveys (REFERENCES) indicate that these cross features form the divides (structural highs) between these bws.

The Trench is probably located above a break in the Earth's crust formed in Precambrian time. During the deposition of the Purcell sediments the Trench marked the boundary between an ancient geosyncline to the west and an ancient shen to the east. The uplifted terrain in the west supplied detritus intermittently through Mesozoic time. In late Cretaceous-Teltiary time this supply of detritus was cut off, perhaps due to the initial formation of the Rocky Mountain Trench. lt essentially became a depositional basin in the Cenozoic.

RELATIONSHIP OF MINERAL DEPOSITS, TECTONICS & STRATIGRAPHY

The Lower Purcell group of strata, particularly the Aldridge Formation, has been historically of major economic interest in the area. The Proterozoic Moyie sills and dykes are also good exploration targets, even though they are rarely host rocks for economic mineralisation. The other members of the Purcell Group have lithologic units sim'lar or identical to the Aldridge, eg. the Creston and Gateway Formations, and are host rocks to mineral deposits in the area.

In essence favourable target areas for syngenetic type of base metal mineralisation are the formations of the Purcell Group, particularly the Aldridge Formation. These types of deposits are probably bcalised near ancient crustal features, e.g. the Dibble Monocline, that controlled deposition and volcanism during Purcell time.

Cavity filling and replacement types of deposits require plumbing systemsfor the ore bearing fluids and significant permeability of the host rocks. Therefore, targets are in proximity to major structural features and the structures themselves. Certain faults, such as extension or normal faults may be more permeable than those caused by shear resulting in thrust faulting. Known mineral deposits on faults or proximity to faults provide clues to mode of occurance of other deposits in the area.

Within the topographic portions of the Trench, the area between the eastern structural limit (Murray Lake Fault) and the present location of the Rocky Mountain scarp are as economically significant as the GALLOWAI PROPERTY CLASSIFICATION OF MINERAL DEPOSITS

BASED ON

Attitude. Metal Type, Location w.r.t. Faults

Burl SC

EAST-WEST 90' or Steep SOUTH DIP Pb-Zn Vein - - --G Zone SM

Great West SM

"

STRIKE NORTHEAST 90' or Steep ------z Cu (Au) Vein - NORTHWEST DIP - \ Rirnrock Strathcona SC - Empire \ Rex SC WEST-NORTHWEST --ic 70'-90' SOUTHWEST Cu. Ag. (Au) // DIP - Vein Dean ---+- " Bull River Mine

B BULL CANYON FAULT SM SAND MTN FAULT SC SAND CR. FAULT U UNKNOWN - PROBABLY RELATED TO NW TRENDING BROADWOOD FAULT 9 western edges of the Rocky Mountain domains, because they are underlain by the same stratigraphic sequence, e.g. Lower Purcell Aldridge Formation.

Just north of the survey area quark-monzonle porphyries intrude the Trench Area. The Reade Lake stock seals the St. Ma~y'sFaun that is a cross-trench feature similar to the Moyie-Dibble Structure on the Properly. These stocks are favourable kcations for a host of mineral deposits, and although no known exposures occur on the properly they may be within 300 metres of the surface and located by geophysical methods.

A classification of known mineral deposits in the immediate vicinity has been completed based on the strike-dip of the mineralisation, the metal types and locations with respect to the major fauns discussed in the report.

It is obvious that all the Lead-Zinc type have distinct strikes and dips, while the Copper-Silver veins have altitudes that fall into another distinct categoty. Both types have a relatively East-West trend with a southerly dip. The exact correlation between the structural elements of the known m'neralisations and the major tectonic elements of this area are worth investigating on a regional and bcal basis.

AIRBORNE GEOPHYSICS:

In 1W1it was determined that due to the size of the area, the rugged terrain and relative lack of accessibility in the Rocky Mountain portion, and the unknown extent and depth of overburden and wver rocks in the Trench porlion of the Steeples and Aspen claims, an airborne survey offered the best means of providing the evidence for the tectonic and stratigraphic criteria described above.

The geophysical method had to have the capacity for diierentiating geological terrain, and the combination of airborne magnetics and resistivity measurements in detail offered the best potential. Dighem's method and equipment met most of these requirements at relatively reasonable costs. The size of the known mineral deposits in the area, and their high resistivity (quark ?), indicated that electrical wnductivity alone would not provide distinct 'anomalies". Dighemofferedrmlti-channel measurements with production of resistivity maps at three frequencies. The resistivly mapping was designed to outline the extent, shape, form and depth of "linears". In addition, resistivity and magnetics would distinguish different tecteno-stratigraphic terrains.

The instrumentation of the EM/resistivity/magnetic/VLFsurvey is described in some detail in the enclosed report by Dighem. The helicopter survey was flown with an average EM bird height of approximately thirty metres over the Trench and the Rocky Mountain sections of the property. Survey coverage in 199041 consisted of approximately one thousand and six line kilometres, including tie lines, and the flight lines over the Rocky Mountains were flown in an azimuthal direction of IS@ true and 600 true Both set of lines were flown with a line separation of two hundred metres. Overlap of the two grids over the Bul River Mine area was designed to increase coverage and data points (reduce line spacing) in an area of known mneralisation.

Image processing of the 1990-91 data using the CPower Vision software suggested a strong potential for younger intrusives (Reade Lake type ?) in the Trench portion of the Steeples and Aspen claims. Some of the geophysical features (magnetic, resistivity, conductivity) coincide with known outcrops of Cretaceous monzonite intrusions. These geophysical target areas are associated .with aeromagnetic linears extending west from the Flocky Mountains into the Trench, probably indicating cross-trench features like the St. Mary's fault that provided the plumbing system for the Reade Stock. Another aeromagnetic feature to investigate was at the westem edge of the Rocky Mountain with size, shape and magnetic gradient similar to the anomaly over the Bul River Mine.

A more detailed airborne survey for confirmation and better definition of these geophysical features prior to ground followup in the Trench area with few outcrops was completed in 1992.

The survey coverage of Block A (lines 10010 to 10340 in accompanying Dighem report) consists of 198 line krn of flight line in an azimuthal direction of 315' over Steeples claim groups 3B and 48. On Blodc B (lines 20310 to 20520 in accompanying Dighem report) a total of 240 line km were completed in an azimuthal direction of 32S00ver Steeples claim groups 5B and 68 and Aspen group 1B. Line separation on both blocks was reduced to 100 metres to obtain greater detail, and line directions are perpendicular to that of the 1990-91 SuWeyS.

SUMMARY & CONCLUSIONS:

The steep gradient on the 7200 Hz resistivity map extending from the nofth end of line 102U) through line 10030 fiducial 1740, line 10110 fiduaal 1380 to line 10020 fiducial 1280 was interpreted in the 1990 survey as the structural eastern edge of the Trench and identifiable by the arcuate edge of the central more resistive terrain of the Rocky Mountains, and the lower resistivity of the Trench (ovehrden). However, newer data from the 1992 survey and incorporation of the 1990-91 data into the new survey data with additional interpretation (calculated verlical gradient magnetics) suggests that this feature represents the eastern contact of the Aldridge-Creston Formations (Lower Purcell) with the Kiichener Formation (Upper Purcell). Several linear and semi arcuate magnetic anomalies are interpreted temporarily as dykes, particularly where they comespond to topographic ridges (resistance to erosion). These dykes are probably associated with the Moyie sills and dykes known to occur in the vicinity of the Bul River Mine, but some or all of them could represent a later phase of intrusive activity, particularly in the Rocky Mountain Trench tecteno-stratigraphic terrain.

These "intrusives" are magnetically more distinct in the terrain interpreted to be underlain by the Kitchener Formation, but generally extend into the zones designated as Aldridge-Creston including the area that is identified by tedenostratigraphy as the Rocky Mountain Trench. One major trace is from 613000EJ491000N northwestto 612500E. 5492050N, then west-northwest to 609000E.5493000N following the known trace of the Dibble Faun.

The west northwest trace of this linear is an aeromagnetic linear through the area designated by tecteno stratigraphy as underlain by Aldridge-Creston Formation including the Trench, where it marks the southem limit of the large circular aeromagnetic feature that indicates presence of an intrusive body like the Reade Stock. In fad, based on the vertical gradient magnetic contours, the linear appears to have a "faulted"(?) offset of the broad aeromagnetic feature on its south flank

Another major vertical gradient magnetic trace is from the vicinity of 616000E,5491000N southwest to 612000E,5486000N, where it crosses the Kitchener and Aldridge4reston geologic contact. Its subsequent southwest trace is a slightly less distinct aeromagnetic linear towards 609000E. 5483050N.

A possible offset of the first magnetic trace (the Dibble Fault trace), extends south of the second magnetic trace from 614000E.5488000N southeast towards 616000E.5486000N where it leaves the map area.

The westem geologic contact of the Aldridge-Creston sequence is overlain by Recent sediments in the Trench, but based on the resistivity response for the 56,000Hz it is possible to determine that these Formations extend atleast as far west as the line from 604000E.5494000N to approximately 611500E5487000N. West of the line the overburden is probably quite deep, and magnetic targets and conductors east of the line are probably worth follow up work.

RECOMMENDATIONS:

DIGHEM has suggested in the enclosed report that the knowledge of the magnetite content of the host rocks in the area would allow semi-quantitative differentiation of various lithological units, and allow better interpretation of the magnetic responses. This is recommended for the general demarcation of the main lithobgical units in the AkllidgsGreston, Kitchener Formations and for the Moyie dykes and sills. The sampling and testing program should include the Reade stock to determine the potential for later intrusives.

In the 1992 survey several EM conductors have been identified and tentatively classified in the enclosed DIGHEM report. Investigation on the ground to rule out cultural causes should be followed by more detailed examination of the computer generated data profiles.

Image processing of the geophysical data is recommended to pinpoint and trace resistivity and magnetic hears, and correlate with known geology and photolinears.

Respectfully submitted MASTER MINERAL RESOURCE SERVICES LTD.

March 1, 1993 Pilsum Master, M.Sc..P.Geol. Calgary, Alberta

PERMIIT TO PKAGTIGE

PERMIT NUM3EW: P 5355 The Association of Profes~onalEngineers, Geologists an6 Gecr~hysic~siccf A!berts COSTS STATEMENT: Dighem Suwey Charges: MobilisatioNdemMlisation...... 438 Km flying @ $126/km ......

Sub-Total ...... Rooms & Meals,Dighem crew @ Stanfield camp, 27 man days @ $65/man day Pilsum Master, Consultant: Planning & scheduling,Oct 1- Nov.11.92 15 days @$3Wday MobJdemob. to site Report Preparation, 10 days @ $3Wday ...... Room and meals, Stanfield camp 7 days @ $65lday...... $ 455 Truck, 7 days @ $5Wday $ 350 Sub-Total...... $ 9,305 Ross Stanfield Jr., Coordinator: 12 days @ Wday $ 2.400 Tnfck, 12 days @ $65/day $ 780 Room and meals. Stanfield cam 12 days @ $65lday...... $ 780 Ross HewisoN ffilk Halwas, Helper: 9 days at $75/day...... $ 675 Room and meals, Stanfield camp 9 days @ $65/day ...... $ 585 SubTotal...... $ 5,220 Drafting and secretarial...... $ l,W Phone, fax, shop facilities, snow removal (helicopter pad and accessincluding supplies grader,tirnber jack) ...... $900 Helicopter fuel...... $ 2,100

TOTAL...... $80,968 STATEMENT OF WORK, DECEMBER 22,1992, STEEPLES CLAIM GROUPS 38 AND 48: $36,602 STATEMENT OF WORK, DECEMBER 22,1992 STEEPLES CLAIM GROUPS 5B AND 68 & ASPEN CLAIM GROUP 1B: $44,366 + PAC $ 3,634

REFERENCES:

HOY, T.; VAN DER HEYDEN, P.; 1988; Geochemistry. Geochromlogy, and Tedonic lmpliitions of two ~uartz Monsonile Inbusions. Punall Mountains, Soheasmm Brilish Columbia; Canadian Journal of Earlh Science. vd.25, pp. 106115.

LAMB. A.T., SMITH, D.W.; 1962; Refradon Profiles Over the Soahern Rxky Mountain Trench Area of B.C.; Jwrnal of the Alberta Society of P&um Geologisk, vd. lo, no.7. pp. 428437.

LEECH, G.B., 1962; S~reof the Bull River Valley near Latitude 499 35'; Jwrnd of the Alberta Society of Petmleum Geologisrs; rd. lo, no.7. pp. 396407.

LEECH, G.B., 1960; Map 11 - 1960; Geology, Fernie (West Half), British Columbia; Geobgical Survey of

LEECH, G.B., 1958; Femie. Map-Area, West Half. British Columbia; Geological Survey of Canada. Paper 58-10.

Master, P. P, 1991; Diihem Airbane Survey on the Steeples Claim Block and portion of the Aspen Claim BWAssessment report filed faRH. Slanfreld.

McMECHAN, M.E.. 1981; The Midde Pmmroroic Purcell Supergroup in the Southwestern Rocky and Soheastern Punall Mountains. B.C. and the lniliahn of the Cordilleran Mogeosyndine, Southern Canada and a@cmt Unhd Stales; Bulletin of Canadan Pelroleum Geokgy, vd.29. no.4, pp. 583-621.

MCMECHAN, ME.; 1978; Geology of the Mount FiherSand Creek Area, Southeastern B.C.; Notes and Prelimimty Map 34; Minisby of Energy. Mines and Pelroleum Resourcas. B.C.

McMECHAN, M.E., PRICE, R.A.; 1982; Transverse Fdding and Superimposed Deformah. Mount Fisher Area, Southern Canadian MyMountain Thnrst and Fold Belt; Canadian Journal of Earth Sciences; vol. 19, m.5; pp.1011-1024.

THOMPSON, T.L.; 1962; origin of the Rocky Mountain Trench in Southeastern British Columbia by Cenozdc Wack Faulting; Jwmal of the Alberla Society of Pelroleum Gedogisb; vd. 10. no.7, pp.4084Z7.