Gregory

TEXADA

ROCK

British

Nanaimo

Zyrox

N.T.S.

Langley,

Vancouver,

49°50’N,

Thomson

SAMPLING

May

P.O.

STN

Columbia,

Thomson Mining

ISLAND

092F/15E

V3A

ON

British

Canada

Mining

Box

14, Terminal

by

for

B.C.

Geological

8H1

THE

124°34’W

2012

2078

Columbia Company

V6B

District

PROJECT

Canada

&

P.

REPORT

3S3

1OE Geo.

12

9

11 8

10

7

6

5

4

3

2

I

COST

REFERENCES

CONCLUSIONS

ROCK

ExPLoITIoN

REGIONAL

HISTORY

PHYSIOGRAPHY

LOCATION TENURE

INTRODUCTION

SUMMARY

STATEMENT

SAMPLING

AND

GEOLOGY

AND

TARGETS

Report

PREVIOUS

AND

ACCESS

AND

PROGRAM

RECOMMENDATIONS

on

CLIMATE

the

WORK

TABLE

Texada

Zyrox

Mining

Island

OF

Company

Project CONTENTS

Texada

Limited

Island

BC.

.3

25

24

23

21

14

12

11

10 10

5 5

FIGURE

FIGURE

FIGURE

FIGURE

APPENDIX

APPENDIX

4

3

2

1

ROCK

REGIONAL II

CLAIM

I LOCATION -

-

SAMPLE

MAP

ASSAY

STATEMENT

Report

GEOLOGY

MAP

CERTIFICATES

LOCATION

on

the

LIST

OF

Texada

Zyrox

MAP

QUALIFICATIONS

MAP

Mining

APPENDICES

Island

OF

Company

Project—

FIGURES

Texada

Limited

Island,

BC.

AFTERPAGE

22

13

28

26

9

4 2

can

mappable

divided

mineral veins.

Mineralization

cut

Upper sequence,

Formations

limestone Texada

limestone addition,

Marble

of The

1899 gold, volcanic

The

mill

services, readily

Texada

Columbia. effectively

and Zyrox

LO

all

include iron

two

mining

which

modified

to

copper,

units.

Jurassic

While

into

Mining

Island

Bay

production

accessible

ore

SUMMARY

Island

most

1929.

hosted

on

a

tidewater

as

for

Marble

pyrite,

is

number

respectively

two

controls

concentrate

history

a

Mine,

does

export

currently

the

and

property

is

on significant

grid

Company

Island

is

basic

Overall

quartz

underlain

the

latter

chalcopyrite,

a

Bay

iron,

located

by

which

access,

on

later,

claims

of

of

per

the

island

Report

types:

air

Texada

Plutonic

operational

Formation

limestone

scale, Texada.

veins

first

and

year.

of

and

historic

and

possible

mineral

holds

producers

produced

by

approximately

and

on

referred

the

occurs

the

attracted

iron-rich

hence

1,897

in

ferry.

two

the

Island

bornite,

title

Vancouver

transportation

establishment

the

Suite

Texada

production

Skarn

Zyrox

quarries

rights Triassic

Tertiary

in

on

the

ounces

50,001 were

to

to

Surprise

which

The

two

dates

a

attention,

(magnetite)

numerous

(formerly

Mining

collectively

use

sphalerite,

intermittent

Island

mineralogy

to

island

the

main

120

Formations

are

event

back

Group

of

ounces

have

of

a

Company

is

Project

Texada

Mountain

geophysics.

methods.

large

of

gold

in

kilometres

forms

estimated

the

benefits

to

in

been

single

known

several

operation

and

on

and of

the

as

basis.

the

former

to

portion

is

Texada Iron

Limited

Vancouver

gold molybdenite.

the

equated

copper-gold

late

1977,

varied

form

skarn

unit

area.

the

from

In

small

as

Mines

at

northwest

Texada

The

from

has

Island,

addition,

1800’s

and

volcanic

claims,

the

of

over

of

assemblages

when

a

This

and

mines

mineralization

to

been

northern

east-west

well-developed

produce

Island

314,000

(approximately

BC.

Island.

the

105,000

when

Island

complex,

rich

led

production

crown

the

the

of

Texada

at

Karmutsen

to

Intrusives)

skarns.

Vancouver,

the

company

gold

source

Texada

tons

3-5

trending

Project.

Rocks

further

and

grants,

ounces

turn

Formation

and

million

was

can,

in

quartz-carbonate

ceased)

infrastructure

Mineralization

of

10

the

of

of

Island,

discoveries

and

mining

generally

The

discovered

dykes

owns

however,

most of

intrude

million

the

the

BC,

years

tonnes

gold.

Quatsino

company

century.

and

and

Mid

a

of

which

British

and

leases,

small

from

tons

this

the

the

no

be

the

to

of 3

In

of

in

of is

per

contains

zone

and

Representative

and the

Massive

the

interpretation

correlation

in

feature In

per

Five

from a

for

The

of the

6000 extending

Dimensional

Two

roughly

numerous

of

The

total

the

the

the

tonne

east

lower

copper,

tabular,

tonne

91

up

resistivity

comprising

skarn

bulk

a

tenure

targets

and

area

mafic

metres

of

range total

to

extending

and

visible

pyrite,

in

gold

contact

342

gold,

56.90

samples

7000

zone

through

early

of

the

gold,

and

at

between

of

intrusion

holdings

identified

of

the

of

Induced

grams

and

(Assessment

depth

response

samples

54

centre

521.05

magnetite,

native

North.

ranges

at

this

grams

garnet-epidote

stage

50

and

Yew

of

through

tonnes

is

the

taken

the

by

the

anomaly

intersected

metres

of

of

Report

regions

associated

outcroppings.

gold.

exploration

Polarization

Loyal

grams

The

Pit,

in

encompass

per

of

a

gold, this

central

by

the

limestone

in mined

diorite

thickness

the

the

pyrrhotite,

the

previous

Report

tonne

depth

on

1963

anomaly

claim

A

and

has

4821

per

entire

suiphide

is

the

Chargeability

of

drill

portion

skarn

(Mineral

by

a

intrusion.

minerals.

been

tonne

yielded

it

Texada

to

silver

mineralised

group.

Zyrox

lower

programs

bed.

14861).

grams

underground

both

from

survey

hole

exhibits grid

the

operators,

swings

within

minor

intermittently

layer

Mining

of

silver

The

top

(Vancouver

Island

from

intersection

0.4

Policy

forms

an

of

resistivity

the

which

Gold

of

mineralized

from

average

silver,

to to

basalt

chalcopyrite

in

Inversion

a

Company

and

Project

north

limestone

grid,

this

surface

the

1.8

the

shallow

data).

of

workings

has

a

show

1.1

metres.

feature

occurs

past

Loyal

and

pit mineralization

to

and

Stockwatch,

content

exposed

and

over

per

Texada

been

Limited

south.

assayed

Models

on

4668

which

an

dip

most

interbed

zone

cent

and

and

the

below

this

30

is

at

anomalous produced

IsIand

to

of

in

kilograms

91

centimetres

eastern

trace

Depth along

lead

is

pronounced

Yew

have

delineate

up

chargeable

the

13.1

the

metres

flat-lying,

the

within

January

BC.

to

(Assessment

order

bornite

and

Pit

strike

east.

resulted

to

per

massive

61.29

by

edge

feature

the

have

depth.

of

the

have

cent

the

an

of

assayed

by

copper

19,

top

of

on

grams There

replaces

close

extensive

zone.

70

volcanics

Bolivar

in

been

mineralization

copper,

the

shafts

Lines

In

1988).

been

on

of

to

favourable

Report

to

grid,

this

1917

per

the

were

is

100

128.92

subjected

surface,

limestone

and

A

subjected

Mill

2000,

a

3.56

tonne

anomaly

anomalous

Loyal

metres.

flanked

A

in

and

moderate

2918).

produced

potential

trenches

the

second

grams

located

grams

values

1918,

5000,

gold

thin

and

Grid

area

to

to

at

4

is

In

to 3 4’

Fort

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Prince I Kitimat Prince’ ,George ‘4 r$, -

I;.. ;: £ ‘• ‘ ‘4,’ it 4’ P -,t

Property

Zyrox Mining company Ltd.

[I14J12 0 125 250 [--——-1 PROPERTY LOCATIONMAP kilometers $HSl NTS92F British Columbis [

232485

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232481

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232480

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Zyrox

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Zyrox

Company

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2012.

1974/jun/27

1974/jun/27 1974/jun/27

1974/jun/27

1974/jun/27

1974/jun/27

1989/feb/14

1989/feb/15

1988/dec/08

1988/dec/04

1988/dec/04

1983/mar/08

1980/jul/15

1980/jul/15 Issue

Mining

program

It

Texada

Limited

as

is

Date

supporting

also

Island,

Company

carried

2012/jun/20

2012/jun/20

2012/jun/20

20i2/jun/20

2012/jun/20

2012/jun/20

2012/jun/20

2012/un/20

2012/jun/20

2012/jun/20

2012/jun/20

2 01 2 /jun/20

2012/jun/20

2012/jun/20

intended

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BC.

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evidence

out

To

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mineral

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Mineral

Mineral

Mineral

Mineral

Mineral

Mineral

Mineral

Mineral

Mineral

Mineral

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Mineral

Mineral

Mineral

Mineral

Mineral

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Zyrox

Mining

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092F 92f

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092F

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092F

092F

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Project

1974/dec/3D

1974/dec/30

1974/dec/30

1974/dec/3D

1974/dec/3D

1974/dec/30

1974/dec/30 1

1974/dec/30

1974/dec/12

1974/sep/09

1974/aug/20

1974/jul/02

1974/jul/02

1974/jul/02

1974/ju

1974/jun/26

1974/jun/26

1974/jun/26

1974/jun/26

1974/jul/02

1974/jul/02

1974/jun/27

1974/jun/27 974/clec/30

Texada

Limited

n/26

Island,

2012/jun/20

2012/jun/20

2012/jun/20

2012/jun/20

2012/jun/20

2012/jun/20

2012/jun/20

2012/jun/20

2012/jun/20

2012/jun/20

2012/jun/20

2012/jun/20

2012/jun/20

2012/jun/20

2012/jun/20

2012/jun/20

2012/jun/20

2012/jun/20

2012/jun/20

2012/jun/20

2012/jun/20

2012/jun/20

2012/jun/20

2012/jun/20

BC.

GOOD

GOOD

GOOD

GOOD

GOOD

GOOD

GOOD

GOOD

GOOD GOOD

GOOD

GOOD

GOOD

GOOD GOOD

GOOD

GOOD

GOOD

GOOD

GOOD

GOOD

GOOD GOOD

GOOD

6

25.00

25.00

25.00

25.00

25.00

25.00

25.00

25.00

25.00

25.00

25.00

25.00

25.00

25.00 25.00

25.00

25.00

25.00 25.00

25.00

25.00

25.00

25.00 25.00

99374

399053

399052

399051 387683 387682

371879

367494

360859

318648

318647

314317

314316 314315

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313537

313536

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100%

100% 100%

100°/o

100%

100%

100%

100%

100%

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100%

100%

100% 100%

100%

Report

Mineral

Mineral Mineral

Mineral Mineral

Mineral

Mineral

Mineral

Mineral

Mineral

Mineral Mineral

Mineral Mineral

Mineral

Mineral

Mineral

Mineral

Mineral

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Mineral

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on

the

Claim

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Claim

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Claim

Claim

Claim

Claim

Claim

Claim

Claim

Claim

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Claim

Claim

Claim

Claim

Claim

Claim

Claim

Texada

Zyrox

Mining

Island

092F

092F 092F

092F

9f

092F

092F

092F

092F

Q92F

092F

92f 9f

092F

292f

092F

92E

92f

092F

9f

092F

092F

092F

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Company

Project

2003/jan/19

2002/dec/23

2002/dec/23

2002/dec/23 2001/jun/26

2001/jun/26

1999/sep/li

1998/dec/26

1997/dec/02

1993/jun/28

1993/jun/28

1992/oct/28

1992/oct/28

1992/oct/28

1992/sep/28

1992/sep/28

1992/sep/28

1992/sep/28

1981/oct/13

1981/oct/13

1974/dec/3D

1974/dec/3D

1974/dec/3D 1974/dec/3D

Texada

Limited

Island,

2012/jun/20

2012/jun/20

2012/jun/20

2012/jun/20

2012/jun/20

2012/jun/20

2012/jun/20

2012/jun/20

2012/jun/20

2012/jun/20

2012/jun/20

2012/junJ2O

2012/jun/20

2012/jun/20

2012/jun/20

2012/jun/20

2012/jun/20

2012/jun/20

2012/jun/20

2012/jun/20

2012/jun/20

2012/jun/20

2012/jun/20

2012/jun/20

BC.

GOOD

GOOD GOOD

GOOD

GOOD

GOOD

GOOD

GOOD

GOOD

GOOD

GOOD

GOOD

GOOD

GOOD

GOOD

GOOD

GOOD

GOOD

GOOD

GOOD

GOOD

GOOD GOOD

GOOD

7

225.00

25.00

25.00

25.00

25.00

25.00

25.00

25.00 25.00

25.00

25.00

25.00

25.00 25.00

25.00

25.00

25.00

25.00

25.00

25.00

25.00 25.00

25.00 25.00

516924

516923

516922

516919

516918 516916

516914

516913

516912

516910

516908

516905

516904

516899

516898

516744

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408790

400122

400121

400120

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#3

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RICHARD

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ii

1

134703

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Report

Mineral

Mineral

Mineral

Mineral

Mineral

Mineral

Mineral Mineral

Mineral Mineral

Mineral

Mineral

Mineral

Mineral

Mineral

Mineral

Mineral

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on

the

Claim

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Claim

Claim

Claim

Claim

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Claim Claim

Claim

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Claim

Claim

Texada

Zyrox

Mining

Island

92f

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fl[

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092F

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092F

092F

092F

092F

092F

092F

092F

092F

Company

Project

2005/jul/li

2005/jul/li

2005/jul/il

2005/jul/li

2005/jul/li

2005/jul/li

2005/jul/li 2005/jul/li

2005/jul/li

2005/jul/li

2005/jul/li

2005/jul/il

2005/jul/il

2005/jul/il

2005/jul/Il

2005/jul/li

2005/apr/22

2004/mar/09

2004/mar/09

2003/feb/13

2003/feb/i3

2003/feb/i3

2003/feb/13 2003/feb/13

Texada

Limited

IsIand

2012/jun/20

20i2/jun/20

20i2/jun/20

2012/jun/20

20i2/jun/20

20i2/jun/20

20i2/jun/20

201

20i2/jun/20

2012/jun/20

2012/jun/20

2012/jun/20

2012/jun/20 20i2/jun/20

2012/jun/20

2012/jun/20

2012/may/15

2012/jun/20

2012/jun/20

20i2/jun/20

2012/jun/20

2012/jun/20

20i2/jun/20

2012/jun/20

BC.

2/jun/20

GOOD GOOD

GOOD

GOOD

GOOD

GOOD

GOOD

GOOD

GOOD GOOD

GOOD GOOD

GOOD

GOOD

GOOD

GOOD

GOOD

GOOD

GOOD

GOOD

GOOD

GOOD

GOOD

GOOD

8

20.87

20.87

20.87

20.86

20.86

20.87

20.87

20.87

20.87 41.74

20.87 20.86

83.51

83.53

62.65

20.88

209.39

25.00

25.00

25.00

25.00

25.00

25.00 25.00 516 134703 100% Mineral Claim 92E 2005/jul/Il 2012/jun/20 GOOD 20.87 i928 134703 100% Mineral Claim 092F 2005/jul/il 2012/jun/20 GOOD 41.78

516929 134703 100% Mineral Claim 092F 2005/jul/il 2012/jun/20 GOOD 20.88

517482 COBRA 1 134703 100% Mineral Claim 092F 2005/jui/12 2012/jun/20 GOOD 20.87 i7486 134703 100% Mineral Claim 092F 2005/jul/12 2012/may/15 GOOD 523.75

517488 BOLIVAR 134703 100% Mineral Claim .92f 2005/jul/12 2012/jun/20 GOOD 104.35

517490 LENA 1 134703 100% Mineral Claim 092F 2005/ju!/12 2012/may/15 GOOD 18847

519959 134703 100% Mineral Cairn 092F 2005/sep/14 2012/jun/20 GOOD 20.88

519960 fl4i0 100% Mineral Claim Q92J 2005/sep/l4 2012/jun/20 GOOD 20.88

519961 YEW 13 134703 100°/a Mineral Ciaim 092F 2005/sep/14 2Ol2fjun/20 GOOD 20.87

Note: The following claims are not continguous with the large northerly block of mineral claim held by Zyrox Mining company and therefore will not have assessment credits applied to them:

229612 229613 230404 408792 511474 516928 517486 517490

Report on the Texada Island Project — Texada Island, BC. 9 Zyrox Mining Company Limited 382000 384000 386000 388000 390000 392000 394000 I I

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possible

thicknesses

in

constitute

The

5.0

access

Powell

minute

Vancouver

NTS

Access

northwest

North

general

Vancouver

islands

The

4.0

the

island

claim

PHYSIOGRAPHY

map

Latitude:

order LOCATION

throughout

flight),

River to

known

geographical

year

the

the

of

is

sheets:

group

International

of

Island

of

round.

Vancouver.

characterized

dominant

then

island

or

collectively

glacial

70

49°

by

the

encompasses

by

92F

to

(figure

AND

can

road

50’ coordinates

Report

northern

ferry

100cm

till.

vegetation.

JOE

be

Airport

(highway

AND

ACCESS

by

as

gained

on

1).

to

Small

and

West

the

falling

low

the

portion

the

the

CLIMATE

Located

to are:

Texada

92F/1

Gulf

Zyrox

relief

Longitude:

by

north

Climate

diameter

northern

101)

an

mostly

regularly

of

Islands,

Mining

5E.

airstrip

Island

with

and

Texada

end

within

is

The

in

ferry

Company

poor

portion

Project

spruce

of

generally

in

located

124°

scheduled

the

Texada

Island.

the

the

area

to via

late

34’

and

moderate

Strait

Texada

of

Nanairno

Limited

Horseshoe

is

at

mild

Texada

fall

Island.

located

fir

air

Gillies

of

IsIand

and

and

with

service

Georgia

outcrop

Mining

Island,

A

average

Bay

winter

approximately

Bay

BC.

relatively

good

from

and

between

or

exposure

BC.,

District,

months.

to

annual

road

the

the

Powell

little

one

Sunshine

South

network

the

precipitation

due

120

the

of

Fieldwork

mainland

undergrowth

River

Terminal

to

a

kilometers

property’s

group

variable

Coast

supplies

(a

and

10

45

is

is to

of at

northern

Exploration

south.

various

The

owns.

culminated

detailed

subsequent

contiguous variety

A sketches

million

number

tons

Marble

The

gold,

1929. volcanic

The

6.0

number

company

two

mining

of

copper,

HISTORY

The

Overall

times

tonnes of

Bay

iron

of

part

in

geological,

hosted

most

data,

of

material limestone

company

in

mineral

years.

history

Mine,

of

ore

history

and

processed

the

companies

also

of

historical

the

significant

recorded

quartz

concentrate

limestone

drilling

AND

iron,

operates which

island,

The

specific

has

titles

files.

of

geochemical,

quarries

Report

and

produced

PREVIOUS

veins

claim

Texada

and

island

have

produced

of

in to

will

producers

Rhyolite

the

per

to

on

a

nine

the

stockpiles

some

and

small

in

have

the

group

the

be

establishment

carried

year.

production

Island

the

early

gold,

holes.

Texada discussed

target

1,897

Zyrox

extent

and

50,001

operated

mill

Resources

Surprise

was

WORK

were

eighties

out

although

Mining

dates

ore

Island ounces

areas

geophysical

It

located

optioned

as

ounces

exploration

is

the

from is

as

over

of

assessment

this

Company

back

Project

Mountain

of

estimated

each

Inc.

Texada

and

several

of

at

interest

on

the

claim

the

of

what

gold

to

began

to is

the carried

Yew

fold

surveys

Texada

years

reviewed

Echo

the

Limited

in

small

Island

Bolivar

group

grade

at area.

1977,

to

reports,

from

acquisition

the

Pit

1800’s

over

the

and

bay

out

Island,

mines

mining

1970’s

is

in

that

Mines

when

This

company,

314,200

later

continue

work

24

105,

Mines

not

as

1988

BC.

when

555

claim.

at

led

known.

in

well

production

000

of

(approximately

and

Lease

on

the

this

Corporate in

and

tons

an to

gold

to

which

a

ounces.

as

turn

1988,

1980’s,

further

extensive

report.

The

number

produce

located

private of

1989.

was

of

ore

company

is

ceased)

who

the

Ventures

limited

discoveries

resulting

In

discovered

from

of

three

reports

package

century.

1km

This

addition,

conducted

10

fronts

and

1899

million

to

has to

work

now

in

five

and

the

the

the

on

I

at

in

to

of

in

I

a a

mineral

veins.

Mineralization

intrusions Bay

are Ideal,

northwest-trending

Maj

trending

Suite.

Intrusives)

Rocks

disconformably

limestone Paleozoic

The

Quatsino and

Texada

The

7.0

the

or

and,

the following

Karmutsen

Holly

REGIONAL

The

While

structural

youngest

of

production

Island

dykes

limestone

Formations

to

and

Sicker

unit

the

limestones

intrude

and

a

the

their

on

description

which

lesser

is

Mid

is

overlying

Marble

features

and

rocks

latter

underlain

the

Group

this

on

a

associated

open

Marble

GEOLOGY

to

thick

control

island

respectively

cut

extent,

Report

Texada.

and,

sequence,

first

are

Upper

Bay

include

of

folds

all

the

is

to

package

by

Bay

on

occurs sediments a

attracted

units.

faults summarized

the

the

volcanics.

a

skarn

thick

the

two

that

Jurassic

lesser

folding

Formation

emplacement

as

Ideal

Texada

of

Zyrox

cut

in

Upper

plunge

mineralization.

does

package

the

of

two

attention,

extent,

exposed

a

Mining

faults

massive

Island

Vancouver

and

set

Island

a

from

main

Triassic

later,

northward. of

faulting

Company

the Project

of

controlled

which

northeasterly-trending

Webster

of

forms

at

the

Plutonic

possibly

tholeitic

to

volcanics

the

the

Formations

former Group

well

prior

have

Texada Tertiary

southern

Limited

Three

and

skarn

emplacement

Tertiary,

bedded

Suite

to

basalts

on

been

has

are

Ray

Island

emplacement

northwest-striking

Vancouver

assemblages dykes.

deformed

been end

(formerly (1990):

the

equated

BC.

platform

unconformably

event

of

volcanic

faults.

the

It

the

of

appears

in

Island.

source

into

to

some

of

and

island. the

know

East-west

chemical

the

the

Texada

a

form

quartz-carbonate

that

series

lineaments,

of of

Karmutsen

Island

as

The

overlying

most

the

of

the

the

Formation

structures

sediments

of

east

Quatsino

Plutonic

Jurassic

Marble

of

broad,

Island

west

the

the

and

the 12

on

volcanics

galena,

located

Quartz

and pyrite,

Main

throughout of most

Copper-gold

outer to

Zoning,

pyroxene-amphibole

Contacts

Magnetite

felsic fractures

skarns

scale,

Skarn

each

Vananda

magnetite-rich

the

significant

ore

margins

Gillies

magnetite

however

sphalerite

mineralogy

in

and

Canada

of

are

where

minerals

between

underlying

(Prescott,

or

the

the

concentrated

orebodies

and

carbonate

adjacent

target

Stock

skarns

of

limestone

Trench,

fully

include

it

of

the

and

and

skam

can

skarn

are

these

is

Yellow

areas.

or

skarn

developed,

the

to

sphalerite.

Report

gold.

extremely

skarn

are

chalcopyrite

be

veins,

adjacent

some

near

the

and

north

and

along

deposits

Surprise

divided

unit

envelope,

more

Kid,

Marble

on

More

then

unaltered

Blubber

while

distance

carrying

or

the

and

either

to

Paxton

Less

consists

varied

northwest-trending

into

Texada

widely

into

are

Zyrox

specific

Mountain

generally

and

Bay,

more

the

adjacent

Bay

associated

from

the

developed

marble.

rock

two

a

Mining bornite

and

and

Island

stock

Little

varied

of

Marble

at

distal

distributed

geological

basic

the

are

the

barren

complex,

Lake

associated

area.

Company

to

Project

Locally,

Billy,

stock

are

generally

with

north

limestone

with

suite

deposits

types:

occurrences

Bay-Texada

deposits,

Mineralization

skarn generally

faults

variable

in

Cornell

the

features

Texada

end

of

Limited and

and

chalcopyrite

either

iron-rich

with

sharp.

Marble

base

close

of

have

or

or

generally

operated

variable

Island,

the

and

but

more

marble.

shear

include

rock

associated

will

Formation

and

to

less

island.

minor

and

Copper

Bay

the

BC.

includes

be type,

mafic

zones

precious

and

by

not

extensive

copper-gold

the

detailed in

fault

intrusion,

amounts

Texada

pyrite

controlled

mappable

Queen

Paris

that

mineralogy,

dioritic

with

contact,

southeast

pyrite,

metals,

cut

in

and

occur

Mines).

abundant

skarn

mines.

grading

of

the

the

intrusions.

rich.

margins

by

chalcopyrite,

Loyal

molybdenite,

on

discussions

of

Karmutsen

close

are

subvertical

envelopes.

a

occurring

Iron

the

outward

property

mostly

mines,

garnet

to

of

town

—rich

The

the

13 the Zyrox Mining Company Ltd.

Doi0 04010002 GEOLOGY MAP Author——

010000

Figuro 2

17: 5040 005hoWfl NTS92F PARIS• S BritishColumbia AREA 4 1’ - Geology after Sarjeant (1989) SQ -Claim outlines approximated from MEMPRclaim map - 5iqop -

Cove Crescent S Bay

SQ 4’

— BOLIVAR •‘ Vt ‘A M-21 LU0 VK I A18 Sa LL _\__ v I0 Spectacle

Lake S V V

5510000 h14i

1Ol SN,’ H VK I13AA • AREA

I ;uRPRISE 1% Scale 1:20,000 MTN. 14A 0 2000 I Sa Bay 6A VK METRES ‘ :. AMine Mineral Showing H -

• I I Welcome ‘ 1 1 ‘ Marble Bay Beach l Bay 2 Little Billie 2 Swamp Anomaly

I 3 Copper Queen 3 Marble BayFloat N 4 Cornell 4 Sturt BayAnomaly 5 Lake S M-21 7A 6 Yellow Kid 6 Bolivar 7 Prescott 7 Holly 10 8 Paxton 8 Golden Rod V11 9 Loyal 9 X-RayIRhyolitel 10 Paris 10 Lion,Tyee 11 Gem 11 Yew 12 NancyBell 12 Cadet I QD,HD Island Intrusive, Quartz Diorite, I Horneblende Diorite 13 Silvertip 13 Gladys C I 14 Surprise 14 Charles Dickens 5 Quatsino Limestone

— — 15 Retriever 15 Security Vit - 16 Copper King 16 Florence j 5505000 17 Marjorie 17 CanadaTrench 18 Saga

Mineand showing locations may rootbe Road exactlyas shown.

Resources

The

8.1

Numerous

holdings

and

history

8.0

claim

following

EXPLORATION

grams

andesite

dyke

over

development

(Assessment numerous,

zone.

Upper

The

The

M-21

recorded

and

Minfile

configurations.

showings

M-2

0.5

M-21

mineralized

A

are

per

(Miniule

Triassic

description

rock

dyke

metres.

1

specified

or

tonne

occurrence

variably

data:

zone

alluded

Report

is

sample

and

mineralized

Report

Quatsino

92F-511)

gold

evident

Another

TARGETS

with

workings

is

as

The

is

altered

to

on

18672).

over

identified

from

exploration

from

area

pyrite

the

in

following

in

Formation

drill

widely

0.5

Texada

with

Zyrox

this

is

limestone

British

have

dykes

and

Shallow

centred

metres

hole

zone

by

Mining pyrite

Island

chalcopyrite

varying

been

targets

six

mineralized

Columbia

(Vancouver

intersected

an

assayed

(Assessment

near

and

Company

mineral

Project

diamond

and

explored

area

worthy

detail

is

a pyrrhotite;

teardrop-shaped

expressed 4.26

of

Ministry which

Texada

zones

Limited

a

Group)

with

with

drilling

of

and

white

zone

Report

grams

continued

developed

assayed

lsland

respect

pyrrhotite

are

a

of

limestone. of

recrystallized

as

encountered

sample

located

per

18672).

quartz

Energy,

BC.

a

to

tonne

garnet-magnetite-pyrrhotite

11.92

diorite

exploration

over

changing

and

from

veins

within

Mines

grams

gold

plug

pyrite.

the

an

here

limestone

cutting

the

years,

altered

over

property

which programs.

per

and

assayed

Weak

Zyrox

tonne

0.7

Petroleum

an

with

andesite

intrudes

cut

altered

metres

names

skarn

claim

gold

7.19

their

by 14

Resources

The

8.2

following

per

returned

subsequently

limestone

Diamond

sphalerite

(Assessment

Native

sample wide

stratigraphy

abundant

sheeted recrystallization

by The

pyrite,

along

intense

and

epidotized

The

contact

skamified

of

limestone

Some “The

Bolivar

tonne

numerous

the

Minfile

quartz

commonly

and

basalts

sinuous

Bolivar

disseminated

pyrrhotite

gold

of Vancouver

with

zones

description

zone

(Minflie

a

gold

in

extends

drilling

elsewhere

drill

veinlets,

in

and

rock

veins

data:

the

total

and

occurs

Report

the

been

an

are

basaltic

partings

(George of

Report

of

cut

core

occurrence

carbonaceous

contain

interdigitating

basalt

follows

to

range

and

a

variably

epidotization

of

to

has

92F-364)

thick

mined

by

Group.

mylonitic

marble.

is

as

11826).

pyrrhotite

assayed

pyrite

on

a

on

chalcopyrite.

1031.14

quartz

dykes.

also

depth from

and

and

Cross

the

streaks

from

pyrite

the

bedded,

a

from

Texada

recrystallized

along

Zyrox

limestone.

and

revealed

structure

An

area

Black

British

property.

veins.

a

up

of

Newsletter

Local

material.

contact

fraction

contact

and

and

the

grams

and minor

irregular

are

15

Mining

to

Island the

is

amygdaloidal

Bolivar

metres.

The

carbonaceous

1.9

lesser

disseminations

accompanied

Columbia

zones

minor

outer

that

underlain

that

Company

Project

chalcopyrite

zone

A

with

of

of

grams

The

limestone

#89,

wedge,

silver

limestone.

a

1734

roughly

amounts

margins

gold

within

Diamond

pit

centimetre

gold-bearing

Karmutsen

chalcopyrite with

per

1987).”

Texada

where

Ministry

Limited

tonne

by

values

(Assessment

and

thinning

(graphitic)

tonre

the

is

footwall by

parallels

of

along

of

occurs Upper

mainly

Island

Pyrite

drilling

initial

the

some

limestone

massive

bulk

pyrrhotite

to

are

Formation

gold

of

zone

50

recrystallized

in

subparallel

to

BC.

within

Energy,

Triassic

associated

basaltic

sample

fine-grained

silicification

mill

the

is

centimetres

a material

has

with

the

is

Report

also

flows

graphitic

41

show limestone/basalt

feed

and

indicated

northwest,

this

basalt,

minor

metres

from

Mines

volcanics.

present

Quatsino

graphitic

chalcopyrite.

graded

occurs

which

varied

with

unit

16702).

zones.

or

and

values

with

the

both

shear

long,

and

more

north

and

stringer-type

but grey

5.14

Bolivar

intensity

of

in

locally

formations

associated

Formation

A

Petroleum

slips

along

Ore

3

in

zone

pockets,

siliceous

in

dipping is

contact.

and

metres

sludge

grams

silver

Local

width

most

in

has

pit

cut

are

the

15

in

of a

Resources

The

8.3

following

silver cut

exposes

vein

Mines

A

Main

metres

grams

from

occasional

claim

stoping.

Mineralization

maximum

of

and

Vancouver

gold-bearing, amygdaloidal

“The

Marjorie

consideration

any

recovery

This

chip

one

on

Minfile

ankerite.

other

and

dump

Shaft

(Minister

area

Marjorie

Annual

per

(Lot

the

sample south

another.

the

description

At

the

of

surface

tonne

strike (92F-109)

No.

is

vein galena.

the

Group.

data:

material

No.

216)

native

of

The

very

Big

pyritic

Report

basalt

in

Report

taken

face

of

8

in

the

occurrence

and

They

8

length

further

silver

vein

Mines where

veins

exploration

the

vein.

vein.

close

The

A

Main

gold

of

is

dips

on

across

close

from

quartz-calcite

main

1922,

vary

veins

from

the

assayed

the

(Minister

of

basalts

strike

A

evaluation

in

Forty-two

Annual

to

80

Shaft

some

44

Texada

west

the

to

Zyrox

grab

drill

the

from

shaft

the

area

degrees

British

page

also

metres.

the

west-southwest, data

west

are

vein,

Big

87.75

drift

historic

Mining

mill core

sample

Report

Island

contact

is

is

a

of

N236).

include

fractured

in

of

vein

few

metres

veins

Columbia

drift

developed

underlain

north

Mines

an a

may

owned

Walirock

the

the

grams

Company

Project

fault

open

of

centimetres

1925,

assayed

production

immediate

with

assayed

Five

occurrence.

and

have minor

towards

sorted

north

Annual cuts and

by

per

cut

page

Texada stringers

Quatsino

other

Ministry

dip

by

contacts

Limited

on

been

the

off

sheared

exposes

10.96

tonne

amounts

67.87

ore

of

Upper

a

vertically

it.

A287).”

Report

the

vicinity,

company.

veins

vein

to

has

Island, a

the

from

problem.

grams

vein.

gold

with

1.2

are

of

Formation

grams

and

the

taken

Main

(Main

Triassic

occur

of

BC.

Energy,

well-defined.

metres

dump

1922,

and

host

needs

variable

Big

and

A

native

per

It

per

grab

Shaft

place

This

between

Shaft

occur

vein

has

20.56

tonne

a

page

material

Karmutsen

in

tonne to

limestone,

series

Mines

sample

gold,

factor,

been

be

amounts

width,

which

vein,

from

vein)

within

N237).

gold

grams

taken

gold of

the

pyrrhotite

and

from

suggested

an

eight

of

together

drifting parallels

(Minister

on

and

Main

both

100

into

and per

Formation of

sorted

Petroleum

Sixty-one

open

the

an

attain

parallel

siderite

metres

tonne

of

Shaft 17.14

open

Saga

with

and

and

cut

the

ore

that

the

16

of a

Resources

The

8.4

following

A

place.”

has

grams

and

shafts texture.

22.9

northwest

chalcopyrite quartz northeast.

Formation

workings

“The includes

material

galena veining.

copper, of

chloritic

and

The

degrees porphyritic

sulphide “The

(Vancouver

Surprise

sample

right

Minfile

not

0.37

a

grams

Nancy

Surprise

Silver

per

70

and

thin

occurs

description

2.9

A

revealed

lateral

and

assayed

En

content

per a

and

(092F

Mountain

meters

toime by

It

of

0.6

quartz-carbonate

cut

per

shaft

data:

interbed

per

Bell

echelon

and

with dipping

can

cent

Tip

Group).

faulting.

2

carbonate

on

Mountain

Report

metre

tonne

by

shearing.

cent

to

261).”

gold,

are

the

spherulitic

be

developed

16.48

occurrence

any

apart

lesser

lead.

occurrence

a

3

is

traced

associated

shear

on

footwall

bodies of

-Nancy

zinc

silver

65

chip

metres

exposures

from

8.5

Mineralized

The

the

grams

Although

developed

limestone.

degrees

sphalerite vein

area

Mineralization

and

grams sample

Texada

structure

Zyrox

and

for

shear

of

British

veins.

on

basalt

wide Bell

is

is

side

and

per

0.09

is

silicified

250

with

1.24

underlain

the

underlain

Mining

southwest.

(Assessment

Island

per

underlain

zone

this (Minfile

tonne

across

of

Mineralization

altered

in

and along

The

per

Columbia

metres

flows

shear

narrow,

per

striking

quartz

the

tonne

places.

material

Company

Project

is

galena. cent

cent gold,

rocks

consisting

and

veins.

the

the

typically

by

by

zone,

of

volcanic

92F

along

silver,

by

The

and

lead

steeply mineralized

copper

rhythmically

315

shear

Karmutsen

The

the

shear

197.8

Ministry

Texada

Report

are

A

Limited

is

Locally,

533)

amygdaloidal

240

shear

(Assessment

composite

degrees

quartz-carbonate

common

strike

in

Upper

0.07

zone

cut

of

assayed

less

zone.

dipping

from grams

(Assessment

the

and

IsIand

metres

pyrite,

18672).

by

zone

per

of

than

but

veins

hosts

the

volcanics

-Silver

Formation

Triassic

dump

and

a layered

Some

Energy,

per

BC.

in

cent

12.21

shear

quartz

appears

grab

shear

is

northeast

sphalerite,

1

the

consists

quartz

Report

tonne

dipping

basalt

Work

locally

metre

copper,

material

Tip

drifting

Report

sample

dump,

zones.

amygdaloidal,

grams

Karmutsen

structure

veins

indicate

Mines

veins

amygdaloidal

to

silver,

(Minfile

done

in and

of

18672).

silicified,

of

of

75

be

chalcopyrite

width

1.8

18672).

recent

of

per

the

exhibit

massive

has

assayed

the

quartz-

and

to

with

cut

includes

9.62

sulphide-rich

a

percent

striking

tonne

80

component

Karmutsen

also

Silver

92F

Formation

Past

off Petroleum

and

mapping

per

strongly

variable

feldspar

degrees

a

pyrite,

calcite

to

261)

taken

13.99

drusy basalt

hosts

gold,

work

zinc

cent

two

and

Tip

145

the 17

Resources

The

8.5

following

page

ray

been

with porphyry

(Assessment

zones

stringers

limestone/diorite

mineralogy

intruded

wollastonite.

are

dioritic Mafic

Quatsino

Paris

“The

along

potential

Tip

The Also

Minfile

diffraction

generally

occurrences

262).”

depth

chalcopyrite

sunk

evaluated

(Minfile

strike

area

diorite

comprised

description

intrusions

by

of

dyke

anomalies

Formation

on

data:

potential

is

are

two

chalcopyrite,

consists

Report

The

less

dykes some

Report

predominantly

transects

in

92F

also

are

by

small

contacts.

marbles

assayed

Paris

than

in that

is

266)

situated

Echo

potential

of that

on

18672). exhibit

is

(Vancouver

part

from of

the

the

diorite

commonly

unknown,

1

occurrence

the

were

metre pyrrhotite,

Texada

The

garnet,

Bay,

adjacent 12.86

Zyrox

magnetite

of

British

Paris

varying

on

Crystalline

exploration

underlain

recommended

bodies

skarns

garnet, separate

Mining

this thick

Island

grams

prospect

as

Group)

contain

pyroxene,

Columbia

to

area

degrees

area

pyrite is

contain

lenses. and Company

Project

and,

the

pyroxene

per

splays

native

that

by

is

targets.

produced

diorite

outer

and

cut

mafic

in

underlain tonne

and

massive

of

of

A

as

massive Ministry

Texada

many

amphibole,

of arsenic

Limited

is

by

their

rock

endoskam

drill

margins

sphalerite.

thought

a

xenoliths

dykes.

and

gold

a northwest

IsIand

both

places,

targets.

sample

intersection

suite

by magnetite

limestone

has

actinolite

of

and

A

of

to

Quatsino

Energy,

induced recently

BC.

alteration

epidote

of

and

distinct

22.8

A be

the

are

of

The

trending

elongate

few

of

magnetite-

occupy

with

skarn

totally

of

grams

are

Nancy

at

Cretaceous

Mines

been

polarization

Formation

shallow

east

and

the

depth.

but

disseminations

developed

structure.

(Fieldwork

lacking.

per

major

homblende-rich

identified

trending

Upper

exoskam

Bell

locally

and

garnet

Intersections

tonne

shafts

age.

Petroleum

and

limestone

fractures.

and

Triassic

Gangue

at

quartz

minor

Skarn

silver

1989,

by

skarn

Silver

halos

have

and

the self

18 x

Nighswander,

resamples

(<100 As

showings

by

meters

widths

An

grades metres.

drilling.

indicated

and

identified

Subsequent

the

additional

is

geochemical

I.P.

ppb)

quite

and

and

likely

Significant

The

a

grading

at

seventeen

Survey.

one

intervals

with

potential

to

common

primary

the

to

1990).

six

its

in

be

Paris

surveys.

the

holes

excess

2.47

1988

shorter).

results

ranging

targets

area,

Report

exception

for

on

g/tonne

produced

totaling

field

of

subsurface

many

proximal

were

This

on

300

for

These

from

the

program,

and

2044

work

not

meters

of

ground

showings

Texada

significant

Zyrox

0.109

intercepts

one

5.11

obtained.

to

mineralization,

meters

led

the

Mining

and

Island

sample

follow-up

which

g/tonne).

oz/t

to

drill

throughout

may

a

intersected

Company

Project

gold

over

are

focus

hole

included

at

be

all

Channel

0.8

in

6.08 values related

on

intrusive

at

was

Texada

1989

Limited

meter

the

significant

the

a

g/tonne

airborne

number

drilled

Paris

(12.85

samples,

to

with

Island,

island,

to

where

the

0.83

area,

over

induced

chargeability

with

BC.

of

g/tonne,

geophysics,

depth,

grab

however,

anomalous

1

gold

with

oz/t

2.0

three

samples

most

bearing polarization,

metres

two

over

13.96

holes

are

anomalies

Echo

areas

approaching

surface

1.55

generally

intervals,

(Sarjeant

g/tonne,

from

totalling

targeted

meter

Bay

magnetic

sampling

surface

shown

Mines

poor

with

(true

with

and

200

827

19 for 8.6 Loyal (Minfile 92F 265)

The following description is from British Columbia Ministry of Energy, Mines and Petroleum Resources Minfile data:

The area is predominantly underlain by massive limestone of the Upper Triassic Quatsino Formation (Vancouver Group) cut by a suite of elongate hornblende-rich dioritic intrusions that commonly contain mafic xenoliths and occupy major fractures. Mafic diorite dykes exhibit varying degrees of endoskarn alteration but exoskarn halos are generally less than 1 metre thick and, in many places, are totally lacking.

The Loyal occurrence area is underlain by limestone of the Quatsino Formation intruded by north trending, skarn-altered mafic dykes more than 250 metres long. Exoskarn halos associated with these dykes seldom exceed 1 metre in thickness. Mafic intrusions outcrop along the northeast coast of Texada Island, below the Loyal mine dump. The intrusions contain rounded to angular mafic xenoliths of coarse hornblendite and gabbro up to 30 centimetres across.

Mineralization within the skarn-altered dykes and adjacent limestone comprise stringers and disseminations of chalcopyrite, bornite, galena, pyrite and sphalerite with associated garnet, epidote, calcite, quartz and variable amounts of magnetite and pyrrhotite. Argentiferous tetrahedrite has also been identified. Locally the skam contains lenses and alternating bands of sulphides. The zone ranges from 3 to 9 metres width.

The skarn zone has been intermittently exposed along strike by shafts and trenches for 91 metres and is intersected by underground wokings at 91 metres depth. In 1917 and 1918, a total of 342 grams of gold, 4821 grams of silver, and 4668 kilograms of copper were produced from a total of 54 tonnes mined (Mineral Policy data).

Five bulk samples taken in 1963 yielded an average content of 13.1 per cent copper, 3.56 grams per torme gold, 521.05 grams per tonne silver and 1.1 per cent lead (Assessment Report 2918).

Report on the Texada Island Project — Texada Island, BC. 20 Zyrox Mining Company Limited

values.

quarry

the

Two the

silicified

bornite

location

of upslope

and

claim

Volunteer

Several A contains

a

118485 gold

summary on

examined

testing exposures

A

area. A

located One

9.0

subsequent

second number

brief

4162

the

boundary mineralization

returned

other at

day

is

The

Bolivar

pit,

a

835

with

ROCK

and

on

examination

of

samples

also

reported

ppb

gold

zones

skarny

was

rock

and

the

of

mineral

samples

day

Bolivar

or

were

ppb

previously

118486

conspicuous

of

Au,

of

road-cut

generally

adjacent

visit

enriched

main

spent

sampled

sample

examining

516908

interest

of

SAMPLING

the

gold

taken

rocks

mainly

1697

2422

beyond

magnetite

to

pit

Volunteer

claim.

(118460,

workings

consisted

on

was

and

Report

the

descriptions.

outcrop

to

ppb

mineralized

in

was

to

ppm

low

at

containing

claim,

operated

the

the

547 in

made

malachite

Zyrox,

property.

the and

its

mineral

The

Au,

Bolivar

on

developed

gold

Karmutsen

claim

Cu

contact

skam

ppm

118461)

PROGRAM

Volunteer

contained

of

claim

around

only exposures

the

in

4195

Volunteer

massive

and

as

and

by

Texada

the

Zyrox

copper.

holdings

zones

strong

skarn

that

the

and

one

Please

and

with

Ashgrove

10.9

516908

ppm

first

copper

some

were

company

in

Mining

considerably

azurite

claim

may

sample

volcanic Island

claim

magnetite

near

zone

in

volcanics

ppm

the

week

pyrite

Cu

claim

This

see

(2012)

held

taken

and

old

trend

values.

claim,

Company

Project

the

is

and

519961

developed

1980’s

the

coatings.

Ag.

(sample

location

Cement workings

of

around

of

by

holds

and

is

Bolivar

rocks,

as

6

interest February,

table

skarn

on Zyrox

(sample

not

ppm

examining

Sample

float

elevated

Texada

did

However,

with

Limited

owned

to

the

claim

118452)

will

held

below

Sample

although

Company.

with

along

Ag.

were

claims

consisted

Mining

samples

not

mineral

to

coincident

1

lslancJ

be

2012

18454).

118486

Zyrox.

by

gold

by

These

minor

numbers

contain

examined

a

that

the

more

was

Zyrox a

limestone-volcanic

held

118485

Zyrox,

BC.

Company.

tenure

separate

and

one of

around

Bolivar

of

two

gives

The

associated

taken

Of

significantly

thoroughly

two

by

copper

massive

any

diamond

and

516924,

limsestone

the

samples

contained

but

and

surrounding

Zyrox.

samples

specific

the

locations,

the

at

mineralized

anomalous

pit

5

the

sampled.

the values.

samples

edge

possible

chalcopyrite

and

magnetite

519961

drill

investigated

The

were

mineral

same

mineral

anomalous

consisted

a

outcrop

a

surrounding

contact.

assays

gold

Samples

it.

limestone Volunteer

programs,

collected

taken

The

metallic

trend

outcrop outcrop

and

value

claim

skarn

zones

rock

and was

and

the

on

21

of

on

of in The samples were taken in an attempt to ascertain any potential levels of economic mineralization that may have been encountered during the limestone quarrying operations. The presence of skarn-related mineralization is known to occur around the various quarries, but access has been restricted by the current closure of the quarrying operation. Zyrox is currently trying to gain access to the Ashgrove quarry area as Zyrox holds rights to all minerals that are known to occur in this area of the north end of Texada Island. Mineral zones such as the Paris and Loyal are located in the general area of the quarries.

Au Cu Ag Sample No Location UTM-N UTM - E ppb ppm ppm >

1ppm

118451 Bolivar 5513037 385693 18.5 18.5 rusty f.g volcanics, trc p0 rusty f.g volcanics, wk skrn, 10-20 cm 118452 Bolivar 5513080 385700 835 546.9 exposure rusty volcs w trc-1% diss p0+!- py, near 118453 Bolivar 5513075 385699 38 52.2 limestone contact

118454 Bolivar 5513072 385698 2.1 1.2 trc po in grey micritic l.s. grey-tan silic. limestone with 118455 Bolivar 5513088 385819 4.3 2.7 mesh/brecciatexture

rusty 1 m sample, buff silic skamy rock 118456 Volunteer 5512598 387095 224.7 344..2 w. locally strong magnetite

118457 Volunteer 5512592 387069 59.4 130.1 msv magnetite skarn 118458 Volunteer 5512592 387069 23.4 181.6 msv magnetite skarn

118459 Volunteer 5512592 387069 112.3 24 msv magnetite skarn limonitic siliceous skarny, 1-2% dis f.g 118460 Ashgrove 5514998 385055 23 93.8 py,modmagnetic

118461 Ashgrove 5514998 385055 22.4 21.2 dk grey calc. skarn, 5-10% diss py dk limonitic carbonate -rich skarn, trc py, 118484 Volunteer 5512350 387036 131.4 96.5 non-magnetic msv fine grain magn, trc dissem cpy +1- 118485 Volunteer 5512350 387036 4162 2422 10.9 born, w. mal, azurite

118486 Volunteer 5512350 387036 1697 4195 6 repeat sample of 118485

Report on the Texada Island Project — Texada IsIand BC. 22

Zyrox Mining Company Limited 385000 385500

Sample No Cu (ppm) Ag (ppm) 118451 18.5 18.5 118452 835 546.9 118453 38 52.2 0 118454 2.1 1.2 118455 4.3 2.7 118456 224.7 344. .2 118457 59.4 130.1 118458 23.4 181.6 0 0 118459 112.3 24 118460 23 93.8 118461 22.4 21.2 118462 131.4 96.5 118463 4162 2422

0 41

g 1OM CONCLUSIONS AND RECOMMENDATIONS

The Texada (Zyrox )property hosts several mineral zones contained within the extensive claim areas held by Zyrox Mining Company. The most promising areas of known mineralization include the Yew, Holly, Bolivar, M-21, Surprise Mountain, Loyal and Paris-Loyal. It is recommended that a review of existing data and field evaluations be made of all the known mineral occurrences within the claim holdings. Some targets recommended by previous operators such as Echo Bay Mines, but never pursued, could possibly be brought to the drilling stage without the necessity of extensive work programs..

The potential of company’s holdings is enhanced in that they occur within a historic mining area, and a well established infrastructure with respect to services, year round accessibility, tidewater facilities, an existing mill and proximity to a major centre. In addition, the property benefits from having extensive data available and the inclusion a number of exploration focal points.

Report on the Texada Island Project — Texada Island, BC. 23

Zyrox Mining Company Limited

Webster,

Sarjeant,

MNFILE

Sarjeant, Kowaichuk,

Hicks,

Dewonck,

11.0

Ken

Paper

British

Geology

Geological

British

British

Geological

Northair

Diamond

(internal

Summary

REFERENCES

Columbia,

Probable

Paul

I.C.L.,

Paul

B.,

(June,

J.M.

1990-1,

T.

T.,

(November,

Columbia,

Columbia,

Columbia

and

and

Mines

report

(April,

Drilling

and

(January, Report

and

1986)

and

and

for

Mineral

Ray,

British

Nighswander, Possible

Report

Rhyolite

Geophysical

Geophysical prepared

Limited

1989)

Ministry

on

for

for

G.E.

and

1999)

1988)

on the

Deposits

Columbia

Echo

Echo Geological

the

Ore

(1990)

Texada

Resources for

Texada of

Zyrox

Bay

Bay

Reserves

International

Surveys

Surveys

Mark

Energy,

of

Ministry

Mines

Mines Island Mining

Island

Northern

Report

(January,

Inc.

on

on

on Mines Company

Pmject

Ltd.

Ltd.

Project-

(internal

the

the

the

of

on

Metals

Texada

North

Energy, North

Yew

the

and 1990) — Texada

Limited

Coast

Holly

report)

Petroleum

Research

#7

Texada

Texada

Island,

Mines Claim,

Island,

Mountain

Property

Property,

Property,

in

Management and

BC.

Resources

Texada

Geological Petroleum

-

Geological

Yew

Island,

North

North

Claims

Fieldwork

Ltd.)

Resources

Texada

Texada

British

Ltd.

for

Island,

Island, 1989, 24 1 COST STATEMENT

1. Personnel

G. Thomson, P.Geo., 2 days @600/day 1200.00 (Foreman) 4 days @240/day 960.00 (Labor), 4 days @160/day 640.00 (Labor), 2 days@160/day 320.00 (Labor), 3 days@160/day 480.00

2. Transportation 2752.35

3. Accommodation 1700.00

4. Assay Costs 478.32

5. Report Preparation 1000.00

6. Mapping 357.50

7. Sample descriptions, sample tagging, lab delivery 600.00

Total $10,488.17

Report on the Texada Island Project — Texada Island, BC. 25

Zyrox Mining Company Limited

Report

STATEMENT

on

the

Texada

Zyrox

Mining

Island

APPENDIX

OF

Company

Project QUALIFICATIONS

Texada

Limited

I

IsIand

BC. 26

Gregory

Dated

I:

6.

5.

4.

3.

2.

1.

at

described

1

Company.

corporate

1

Company I

previous

That

province

That

Province

That

(1970)

Langley, That

Gregory

R.

Vancouver.

have

do

consent

Thomson,

the

I

not

I

I

also

am

am

Report

and

am

information

reports

of

of

BC.

herein,

purposes.

own.

R.

and

a

to

or

examined

Profession

British

a

British

a

have

Thomson,

B.C.,

STATEMENT

on

P.Geo.

the

supervised

graduate

any

consulting

either

and

the

nor

use

May

over

Columbia.

Columbia

of

Texada

Zyrox

geological

do

contained

several

directly

their

Geoscientist

of

Geologist

I

of

10,

30

a

expect

Mining

island

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QUALIFICATIONS

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receive

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#40—

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upon

21928

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by

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experience

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British

a

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property

Zyrox review

Island

48 th

in

the

Columbia

Miming

Avenue,

for

Mining

of

Project

in

in

21

2004.

it’s the APPENDIX II

ASSAY CERTIFICATES

Report on the Texada Island Project — Texada IsIancJ BC. 28

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