I I I i

On The Cenote Mineral Claim Group

Omineca Mining Division

NTS Map Location 93/L09

Latitude 54" 41 00" Longitude 126" 27' 00"

Owned by: *% 9

Operator: "-3 Table of Contents

1. 0 Introduction...... 1

2.0 summary ...... 1

3 .0 Location and Access ...... 1

3.1 Physiography and Climate ...... 2

3.2 Ownership ...... 2

3.3 History of Work ...... 3

4.0 Regional and Property Geology ...... 4

5 .0 Prospecting Report ...... 5

6.0 DiscussiodRecommendations ...... 6

7.0 Statement of Expenditures ...... 8

8.0 Statement of Qualifications...... 9

List of Figures

Figure 1 Regional Map ...... 1a

Figure 2 Location Map ...... 2a

Figure 3 Claim Map ...... 3a

Figure 4 Traverse Map ...... 4a

Appendix: Assay Results 1

1 .O Introduction

This report describes prospecting work performed on the Cenote mineral claim group. Several EM Conductors underlie the claims. Hudson Bay Exploration and

Development Company Limited originally discovered the anomalies during an airborne geophysical survey of the Babine Lake area in 1996.

2.0 Summary

During the period May 25 to 26,2005 the Cenote claim group was traversed and

9.8 line-kilometres of conventional prospecting was completed. No outcrop was encountered on the claims however there are abundant locally derived boulders in the overburden. One rock sample was taken from a representative boulder and submitted for whole rock analysis. Since there are no bedrock exposures in the vicinity of the EM conductors their nature remains unknown.

3.0 Location and Access

The Cenote claims are located 18 kilometres north of Perow British Columbia at

54” 41’ 00” north latitude and 126” 27” 00” west longitude (see figure la). Access is by motor vehicle. Proceed from Houston B.C. east on Highway 16 to Perow and travel on a series of well-maintained forest service roads to the decommissioned Betty Lake F.S.R.

(see figure 2a). The distance is approximately 40 km. The Betty Lake F.S.R provides *. . .

LOCATlON 0 400 MAP mmneh8

IA Location Map -- -.- - Cenote Claim Group

#&;;- #&;;- I NTS 093 L/9 r 2

access to the eastern portion of the Cenote claims near the main EM anomaly at the 2.0

km mark.

3.1 Physiography ,Vegetation and Climate

The claims are located on gently rolling topograply typical of the Nechako

plateau with elevations of approximately 800 meters. A creek that flows fiom Findlay

Lake in a southeast to northwest direction bisects the eastern third of the claim group.

Near drainages are numerous swamp and peat bogs. In other areas a blanket of re-

sedimented glacial fluvial material and moraine conceal the bedrock. Vegetation over

much of the property consists of stands of pine, spruce and balsam while grass, alder and

dwarf pine dominate the lower wetter portions. Winters are moderate to cold with typical

snow accumulations of about one meter and the area is generally fiee fiom snow between

mid May and October.

3.2 Ownership

The Cenote property is 100% owned and operated by S.Bell of Houston B.C. The

original property consisted of eight legacy claims (See Figure 3a) that have been

converted to a single mineral tenure under the new MTO system. The tenure number of the current Cenote claim is 5 13921. , \ I

Map created Thu Jan 13 23:15:20 PST 2005 Legend 3

Table 1 : Claim Status

Claim Name Units/Cells Tenure Number Projected Expiry Date

Cenote 1 410691 Converted Cenote 2 4 10692 bb Cenote 3 4 10693 bb Cenote 4 4 10694 bb Cenote 5 4 10695 bb Cenote 6 4 10696 bb Cenote 7 4 10697 bb Cenote 8 4 10698 bb

Cenote 6 513921 June 1,2009

3.3 History of Work

In 1996 Hudson Bay Exploration and Development Company Limited over flew the Babine Lake Area with their proprietary spectrum EM platform. The survey identified an area of interest northwest of Findlay Lake. A program of line cutting and ground based

EWmagnetic surveys (15.0 km) was carried out in 1997, which defined three EM conductors. In 2005 S.Bell made an initial property examination and prospected the terrain in the vicinity of the EM conductors. 4

4.0 Regional and Property Geology

The Cenote claims lie within the Stikina terrain, which is composed of late

Triassic to Eocene age volcanic and sedimentary rocks. Within this sequence the Jurassic

Hazelton group, which has been widely exposed by uplift and erosion provides a geologic setting favourable to mineral exploration, The mainly subaerial Telkwa formation, the lowest unit of this group is host to structurally controlled precious metals and volcanogenetic massive sulphide prospects occur in the overlying oceanic sedimentary rocks. Cretaceous to Tertiary volcanic rocks of the Kasalka, Ootsa Lake and Endako groups are not as prospective however important porphyry style mineralization is related to the emplacement of intrusions within the Jurassic/Cretaceous pile. The capping Eocene

Newman formation volcanic rocks are largely barren.

A major northwest trending topographic lineament transects the eastern portion of the claim. This feature is interpreted as a fault on Minfile Map NTS 093L Smithers. The bedrock type underlying the property is unknown however numerous locally derived boulders in the overburden suggest that it is basalt west of the fault and andesitic volcanic breccia east of the fault. A previous EM survey identified two anomalous trends and he

EM conductors. The main conductor is sub parallel to the major topographic lineament and is 60Om long and up to 35m wide and is open to the southeast. In the western portion of the property there are two narrow EM conductors whose trends are just west of north south. One is 800m long and the other is 60Om long and remains open to the south. 5

5 .O Prospecting Report

Conventional prospecting techniques were used to explore three EM conductors previously identified by Hudson Bay Exploration and Development Limited. The conductors lie within a 200ha area defined by the boundaries of the original eight-unit legacy Cenote claim group. The investigation proceeded by making a series of traverses bearing 8Oo/26O0across the prospective terrain such that the trace of each of the three identified EM conductors would be crossed at separate locations (see figure 4a). The actual total distance of the traverses exceeded the 9.8 line kilometres indicated since numerous short reconnaissance traverses were made along the way where the topography suggested outcrop could be near. Unfortunately no outcrop was encountered in the vicinity of the EM conductors. Numerous locally derived boulders of the same rock unit however suggest that the underlying bedrock is a volcanic rock of basaltic composition.

A representative sample CEN-1 was collected and sent to USChemex in Vancouver for whole rock analysis. The analytical results tabulated below report the sample composition in terms of percent oxides present.

Table 2: Whole Rock Analysis % Major Oxides Sample CEN-1

Si02 A1203 Fe203 CaO MgO Na20 K20 Cr203 Ti02 MnO P205 SrO BaO

50.02 16.55 9.06 9.01 4.63 3.18 1.40 0.01 1.26 0.12 0.43 0.07 0.10 I I I

I I Betty Lake Road I A

Jurassic Volcaniclastic

/ Prospecting Map \\ / Center @ Sample location / Eocene 126" 27' W / 0" Basalt 54'41'ON / / P Scale 1: 12000 D EM conductor - C - ^1--.11-_LIP__. 1____ - \\\\\ 6

Percent Na20 plus K20 relative to Percent Si02 confirms that the sample may be classified as basalt. The variety of basalt is a continental tholeiite with CaNa/K ratios greater than one and Ti02 approximately equal to one. In hand specimen individual mineral grains can be distinguished with the aid of a hand lens and the texture is subhedral granular. Crystal faces on broken surfaces appear fiesh and shiny exhibiting little alteration. Colour is dark grey with weathered surfaces a lighter reddish grey. The specimen is magnetic and the fine grain size suggests that the bedrock may be part of a thick flow, dyke or sill. The age of this rock unit is not known however it may be related to Eocene volcanism. The basaltic boulders are only found in overburden west of a northeast flowing creek that flows through the eastern half of the property. This creek follows the trace of an interpreted fault. East of the creek greenish grey andesitic breccia is the most common type of float rock found in the overburden. These volcaniclastic rocks are ascribed to the lower Jurassic Telkwa Formation. It is believed that Eocene age? basalt underlies the property west of the creeWfault and is in fault contact with

Jurassic age volcaniclastics to the east.

5.1 DiscussiodRecommendations

The EM anomalies are west of the creeufault and may be hosted by Eocene age volcanic rocks. Unfortunately economic mineralization has yet to be discovered locally in this formation. Important copper porphyry deposits near Babine Lake are related to

Eocene intrusive rocks so the possibility however of a new deposit type hosted by Eocene age volcanic rocks cannot be ruled out. The main EM conductor trends in a northwest- 7 southeast direction and may be a splay of the larger creewfault. At least one Cretaceous age intrusion lies on the trace of the creeldfault northwest of the property. This suggests that the creeWfault may be a deep-seated zone of weakness that was active prior to the period of Eocene volcanism. It is possible that the main EM conductor is associated with sulphide mineralization hosted by older Jurassic age rocks that were subsequently covered by a veneer of Eocene age volcanic rocks.

It is recommended that a new grid be established and an EM survey conducted to further define the main anomaly in a southeast direction. Drill testing may be warranted. 8

Statement of Expenditures Period May 25.26. 2005

Lab0ur ...... 2 days @ $300/day ...... $600.00

Vehicle ...... 4 wheel drive pickup, 2 days @ $1 lO/day ...... $220.00

Assay ...... $57.55

Food ...... $12.50

Report Writing ...... $500.00

Total ...... $1,390.05 9

Statement of Qualifications

This is to certify that I am a graduate of Queen’s University at Kingston, Ontario, with a Bachelor of Science degree in Mining Engineering (1985). I am currently employed in the mineral exploration industry.

Steve Bell

January 4,2006 Appendix To: BELL, STEVE Page 1 of 1 ALS Chemex 3780 BAGGER MAN CRESCENT EXCELLENCE IN ANALYTICAL CHEMISTRY ALS Canada Ltd HOUSTON BC VOJ 122 212 Brwksbank Avenue A North Vancouver BC V7J 2C1 cA s, Phone: 604 984 0221 Fax: 604 984 0218 www.alschemex.com

I INVOICE NUMBER 1344630 I ANALYSED FOR UNIT BILLING INFORMATION QUANTITY CODE - DESCRIPTION PRICE TOTAL 1 BAT-01 Administration Fee 30.00 30.00 Certificate: VA05107555 4 PREP-31 Crush, Split, Pulverize 6.00 24.00 Account: BELSTE 2.62 PREP-31 Weight Charge (kg) - Crush, Split, Pulverize 0.30 0.79 Date: 16-DEC-2005 2 Au-ICP21 Au 30g FA ICP-AES Finish 13.50 27.00 Proiect: Babine 2 ME-MS61 47 element four acid ICP-MS 18.75 37.50 2 GEO-4AO1 Four Acid Dig - ME-MS61 3.75 7.50 P.O. No.: 2 ME-XRFO6 Whole Rock Package - XRF 32.00 64.00 Quote: Terms: Due on Receipt c3 Comments:

SUBTOTAL (CAD) $ 190.79

R100938885 GST $ 13.36 To: BELL, STEVE 3780 BAGGER MAN CRESCENT TOTAL PAYABLE (CAD) $ 204.15 HOUSTON BC VOJ 122

Payment may be made by: Cheque or Bank Transfer

Beneficiary Name: ALS Canada Ltd. Bank: Royal Bank of Canada ID SWIFT: ROYCCAT2 Address: Vancouver, BC, CAN Please Remit Payments To : ALS Chemex Account: 003-00010-1001098 212 Brooksbank Avenue North Vancouver BC V7J 2C1 To: BELL, STEVE Page: 2 - D ALS Chemex 3780 BAGGER MAN CRESCENT Total # les: 2 (A-E) EXCELLENCE IN ANALYTICAL CHEMISTRY HOUSTON BC VOJ 122 Finalized Dai-. 16-DEC-2005 ALS Canada Ltd. Account: BELSTE 212 Brooksbank Avenue North Vancouver BC V7J 2Cl (A L s) Phone: 604 984 0221 Fax: 604 984 0218 www.aIschemex.com Project: Babine I CERTIFICATE OF ANALYSIS VA05107555 ME-XRFOB Method ME-MS61 ME-MS61 ME-MS61 ME-MS61 ME-XRFOB ME-XRFO6 ME-XRFOB ME-XRFOB ME-XRF06 ME-XRFOB ME-XRFO6 ME-XRFOB ME-XRFO6 ME-XRFOB Analyte W Y Zn Zr Si02 A1203 Fe203 CaO MgO Na20 K20 CR03 Ti02 MnO P205 Unlt. PPm ppm PPm Ppm % % % % % % % % % % % ;ample Description LOR 0.1 0.1 2 0.5 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01

CEN-I 50.02 16.55 9.06 9.01 4.63 3.18 .40 0.01 1.26 0.12 0.43

Comments: REE's may not be totally soluble in MS61 method. Tn: BELL, STEVE Page: 2 - E A ALS Chemex 3780 BAGGER MAN CRESCENT Total# )zS:2 (A-E) EXCELLENCE IN ANALYTICAL CHEMISTRY HOUSTON BC VOJ 122 Finalized Date; 16-DEC-2005 ALS Canada Ltd. Account: BELSTE A 212 Brooksbank Avenue North Vancouver BC WJ 2Cl cA sJ Phone: 604 984 0221 Fax: 604 984 0218 www.aIschemex.com Proiect: Babine I CERTIFICATE OF ANALYSIS VA05107555

Mothod ME-XRFOG ME-XRFOG ME-XRFM ME-XRFOB Analyt. SrO BaO LO1 Total Units % oh % % iampie Description LOR 0.01 0.01 0.01 0.01

CEN-1 0.07 0.10 3.68 99.53

Comments: REEs may not be totally soluble in MS61 method.