MINERAL RESOURCE ESTIMATE RUDDOCK CREEK DEPOSIT Kamloops Mining Division British Columbia

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MINERAL RESOURCE ESTIMATE RUDDOCK CREEK DEPOSIT Kamloops Mining Division British Columbia MINERAL RESOURCE ESTIMATE RUDDOCK CREEK DEPOSIT Kamloops Mining Division British Columbia NTS: 82M/15W Prepared for Selkirk Metals Corp. 800 – 1199 West Hastings Street Vancouver, BC V6E 3T5 B.C. Geographic System Map Sheet: 082M.076 Latitude: 51° 46.6′ N; Longitude 118° 54.1′ W UTM (NAD 83): 5 737 900 N; 368 800 E; Zone 11 Ronald G. Simpson, P.Geo GeoSim Services Inc. 1975 Stephens St. Vancouver, BC, Canada V6K 4M7 Tel: (604) 803-7470 Email: [email protected] And Jim Chapman, BSc. P.Geo. 2705 West 5th Ave. Vancouver, BC, Canada, V6K 1T5 Tel: (778) 228-2676 Email: [email protected] 15 July 2009 MINERAL RESOURCE ESTIMATE – RUDDOCK CREEK DEPOSIT TABLE OF CONTENTS 1 SUMMARY........................................................................................................................5 2 INTRODUCTION AND TERMS OF REFERENCE ...........................................................7 3 RELIANCE ON OTHER EXPERTS ..................................................................................7 4 PROPERTY DESCRIPTION AND LOCATION ................................................................7 5 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES INFRASTRUCTURE AND PHYSIOGRAPHY ...........................................................................................................12 5.1 Highways...............................................................................................................12 5.2 Railways ................................................................................................................13 5.3 Airports ..................................................................................................................13 5.4 Telecommunications .............................................................................................13 5.5 Power Supply ........................................................................................................13 5.6 Climate ..................................................................................................................14 5.7 Vegetation .............................................................................................................14 5.8 Hydrology ..............................................................................................................14 5.9 Physiography.........................................................................................................15 6 HISTORY ........................................................................................................................15 7 GEOLOGICAL SETTING ...............................................................................................19 7.1 Regional Geology..................................................................................................19 7.2 Local Geology .......................................................................................................21 7.3 Property Geology ..................................................................................................21 7.3.1 E Zone structural footwall lithologic domain ......................................................22 7.3.2 E Zone structural hanging wall lithologic domain ..............................................25 7.3.3 T showing lithologic domain ..............................................................................25 7.3.4 Correlation between lithologic domains.............................................................25 8 DEPOSIT TYPE ..............................................................................................................26 9 MINERALIZATION .........................................................................................................27 10 EXPLORATION ..............................................................................................................28 11 DRILLING .......................................................................................................................32 12 SAMPLING METHOD AND APPROACH ......................................................................39 13 SAMPLE PREPARATION, ANALYSES AND SECURITY.............................................40 13.1 Sample Preparation...............................................................................................40 13.2 QA/QC...................................................................................................................40 14 DATA VERIFICATION....................................................................................................41 14.1 Standards ..............................................................................................................41 14.2 Blanks....................................................................................................................43 14.3 Pulp re-checks.......................................................................................................43 14.4 Conclusion.............................................................................................................45 15 ADJACENT PROPERTIES ............................................................................................45 16 MINERAL PROCESSING AND METALLURGICAL TESTING......................................45 16.1 Ore Sample ...........................................................................................................45 16.2 Mineralogical Characterization ..............................................................................46 16.3 Heavy Liquid Separation .......................................................................................46 16.4 Flotation.................................................................................................................47 16.5 Batch Cleaner Testing...........................................................................................48 16.6 Environmental Characterization ............................................................................48 17 MINERAL RESOURCE ESTIMATE ...............................................................................50 17.1 Exploratory Data Analysis .....................................................................................50 17.2 Deposit Modeling...................................................................................................52 17.3 Compositing ..........................................................................................................53 17.4 Density ..................................................................................................................56 Page ii MINERAL RESOURCE ESTIMATE – RUDDOCK CREEK DEPOSIT 17.5 Variogram Analysis ...............................................................................................56 17.6 Block Model and Grade Estimation Procedures....................................................57 17.7 Mineral Resource Classification ............................................................................60 17.8 Model Validation....................................................................................................62 17.9 Cut-off Determination ............................................................................................63 17.10 Mineral Resource Summary..................................................................................63 18 OTHER RELEVANT DATA AND INFORMATION .........................................................64 19 CONCLUSIONS..............................................................................................................64 20 RECOMMENDATIONS...................................................................................................65 21 REFERENCES................................................................................................................67 LIST OF TABLES Table 1-1 Ruddock Creek E-Zone Mineral Resource .............................................................6 Table 2-1 Units of measure.....................................................................................................7 Table 4-1 Summary of Mineral Claims..................................................................................10 Table 4-2 Claim Summary ....................................................................................................11 Table 4-3 Assessment Work Filing Summary .......................................................................11 Table 4-4 Claim Boundary Coordinates UTM NAD 83 ZONE 11..........................................11 Table 6-1 Ruddock Creek Property: Summary of Activities ..................................................17 Table 7-1 Property Geology Correlations..............................................................................23 Table 11-1 E Zone Drill Hole Locations ................................................................................33 Table 11-2 E Zone - Significant Mineralized Intervals...........................................................35 Table 14-1 Reference Standards..........................................................................................41 Table 16-1 Head assay or zone composites.........................................................................45 Table 16-2 Detailed Assay of Sink and Float Fractions ........................................................47 Table 16-3 Distribution of Base Metals in HLS Products ......................................................47 Table 17-1 E-Zone historic drilling (pre 2004).......................................................................50
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