And Geochemical Report Onthe ~ Niut Range Property

AND GEOCHEMICAL REPORT ONTHE _~ NIUT RANGE PROPERTY

(Comprising of the AT 2, Blackhorn, ELK 1-2, BLK3-6, Champagne, HW5, OTRlA, OTR2A and OTR 3-4 Claims)

Located in the Niut Range Clinton Mining Division NTS 92N/lOE, 1OW. 51” 33’ North Latitude 124’ 46’ West Longitude

- -prepared for- BLACKHORN GOLD MINES LTD.

-prepared by- - Bruno I&per, Geologist June, 1998 1997 GEOLOGICAL AND GEOCHEMICAL REPORT ON THE NIUT RANGE PROPERTY

TABLE OF CONTENTS

J?.%G 1.0 INTRODUCTION .l. 2.0 LOCATION, ACCESS AND GEOGRAPHY .l. 3.0 LIST OF CLAIMS .2. 4.0 PROPERTY MINING HISTORY 4.1 Previous Work .3. 4.2 1992 Exploration Program .4. 5.0 REGIONAL GEOLOGY .5. 6.0 PROPERTY GEOLOGY AND MINERALIZATION 6.1 Geology .7. 6.2 Mineralization .11. 6.2.1 Gold + arsenic quartz - carbonate veining .11. 6.2.la Blackhom Trend .ll. 6.2.lb Champagne Vein (?) .15. 6.2.2 Copper-rich quartz mineralization .15. 6.2.3 Copper-nickel sulphides with mafic in&wives .16. 7.0 DISCUSSION AND CONCLUSIONS .17.

APPENDICES

Appendix A Bibliography Appendix B Statement of Expenditures Appendix C Rock Sample Descriptions Appendix D Certificates of Analysis Appendix E Geologist’s Certificate

LIST OF TABLES m Table 3.0.1 Claim Data .2. Table 6.1.1 Correlation of Rock Units 8 . Table 6.2.3 Atwood Area Anomalous Copper - Nickel Rock Samples .17.

i 1997 GEOLOGICAL AND GEOCHEMICAL REPORT ON THE NIUT RANGE PROPERTY

TABLE OF CONTENTS (Continued)

LIST OF FIGURES Following w - Figure 1 Location Map .l. Figure 2 Claim Map .2. Figure 3 Index Map .3. ,- Figure 4 Regional Geology Map .5. Figure 5 Blackhom Area Map Geology And Gold Geochemistry -Pocket- Figure 6 Blackhom Vein Area Geology And Gold Geochemistry .ll. Figure 7 Blackhom Vein Underground Workings Geology And Gold Geochemistry -Pocket- Figure 8 Blackhom Area “Galena” Showing Compilation Map .13. Figure 9 “Milk Can Showing” Geology And Gold Geochemistry .13. Figure 10 Feeney Area Geology And Gold Geochemistry .15. Figure 11 Champagne Vein ? Geology And Gold Geochemistry .15. Figure 12 Atwood Area Geology And Geochemistry .16.

-, ii . j.

1.0 INTRODUCTION

This report was prepared to describe the results of the 1997 exploration program on Blackhom Gold Mimes Ltd. Niut Range Property located in the Coast Mountains of West-Central British Columbia.

The property is located west of Tatlayoko Lake in the eastern part of the Coast Mountains, 185 km - west-southwest of Williams Lake. Sporadic exploration throughout the years has lead to the discovery of numerous precious metal vein showings and other types of metallic mineralization in the area. One of these discoveries, the Blackhom Vein, was the focus on a small amount of development work in the late 1930’s.

The exploration program was based on the recommendations laid out in G. R Peatfield’s technical report on the property (Peatfield, 1996). This involved: detailed sampling and mapping of known occurrences as well as extending and locating new gold occurrences along known trends. .

Field work was carried out from September 2 to 17, 1997 under the supervision of Bmno Kasper, geologist, along with Reg Faulkner, geologist (Professional Geoscientist), Adrian Smallwood, prospector and Tyler Fairbank, geotechnician.

. Information in this report is based on the published and unpublished information, maps, reports and field notes provided by Blackhom Gold Mines and Louis M. Bemiolles.

2.0 LOCATION, ACCESS AND GEOGRAPHY

The Niut Range Property is situated in the east margin of the Pacific Ranges of the Coast Mountains of west-central British Columbia, approximately 40 km south-southwest of the settlement of Tatla Lake and 185 km west of Williams Lake (Figure 1). The claims are located within the Clinton Miig Division, centred at 51” 33’ north latitude and 124” 46’ west longitude.

The property is accessible by paved highway from Williams Lake to the Bluff Lake turnoff located a few kilometres east of Tatla Lake, and then by a good gravel road south via Bluff Lake to logging clear cuts located on the south side of Mosley Creek, approximately 10 km north of the northern boundary of the property. From this pain\ access is by pack trail or helicopter (local helicopter services are based at the private airstrip on the south end of Bluff lake). There are no roads to or on the claims.

The terrain on the property is rugged having being sculpted by glaciation. Sharp peaks and castellated ridges are separated by deep linear “IY shaped valleys with oversteepened slopes and broad gently inclined valley floors. Glaciers, small ice fields and snow patches located in the hanging valleys or on northern exposures, cover approximately 17% of the property. Elevations on the property vary from approximately 1,430 metres on the east valley wall of Nude Creek in the southwest comer of the OTRIA claim to over 3,000 metres on Blackhom Mountain and an

unnamed peak at the head of ‘Razor Creek Valley. Outcrop exposure is excellent along the steep ridges, but is generally masked by talus and/or glacial till along the gentler slopes and valley bottoms.

Most of the property, located above tree line at approximately 1,825 metres elevation, is characterized by stunted balsam. The climate of the region is relatively moderate due to its proximity to coastal inlets and considering the high elevations. While snowfall can be expected all - year long, snow begins to accumulate in October and may remain as late as mid- to late July in the higher elevations.

3.0 LIST OF CLAIMS

The Niut Range property comprises fourteen contiguous claims totalling 176 claim units, located in the Clinton Mining Division (Figure 2). Records of the British Columbia Ministry of Energy, - Mines and Petroleum Resources indicate that the claims are owned by Blackhom Gold Mines Ltd.. Claim data for the Niut Range property is summarized in Table 3.0.1.

TABLE 3.0.1: CLAIM DATA

* Subject to approval of assessment work covered by this report.

The position of the legal comer posts for the BLK3 and BLK4 claims as well as the initial post (?) for the Blackhom claim (upper part of the tag missing on the post) has been verified by the author.

In its decision of October 24,1994 regarding the Land Use Plan for the Cariboo-Chilcotin area and as a result of a number of investigations by government agencies, the sitting cabinet of the government of British Columbia officially recognized the high mineral potential of the Niut Range and turned down the proposed designation to Protected Area status (Peattield, 1996).

.,. The writer is not aware of any other particular environmental, political or regulatory problems which would affect mineral exploration and development on the Niut Range Property.

4.0 PROPERTY MINING HISTORY

.., 4.1 Previous Work

The earliest recorded work on the property dates back to 1936 with the discovery of the Blackhom Vein and other vein occurrences along the Blackhom Trend (Figure 3). From 1936 to 1939, work on the Blackhom Vein involved prospecting, trenching, underground exploration, diamond drillmg and the processing of a small amount of ore (O’Grady, 1938; Sargent, 1939; Anonymous, 1940). Underground exploration included the driving of a 32 m adit and drifting along the vein for 5 1.7 m. An average uncut grade of 0.93 or/St’ (31.85 g/ m t) over 22 inches (0.56 m) was computed by

,. Dirom (1939) for a 65 ft (19.81 m) section of vein exposed in the drift. This work was initially started by Homathko Gold Mines Ltd., owner of the property, and later completed by N.A. Tii Ltd. who optioned the property. In 1939, N.A. T immins Ltd. completed 2,144 ft (653.49 m) of diamond drilling in 10 holes (Dirom, 1939). Of these holes, six intersected the vein over widths of 2.5 to 20 inches (0.06 to 0.51 m) along a strike length of 260 feet (79.25 m). Gold results ranged from a trace to 0.46 o&t (15.75 g/mt) over 4 inches (10 cm), averaging 0.30 oz/st (10.27 ,,. g/mt). - The only production from the Blackhom Vein during this period was reported by O’Grady (1938). Approximately 3.5 tons of high-grade ore from the open-cut was processed in a Gibson prospectors mill installed on Razor Creek. He reports “... gold, recovered by amalgamation, returned a value of about $275.” This implies a grade of approximately 2.24 oz/st (76.88 g!mt) when using a value of $35102.

As was noted above, numerous other gold occurrences were located along the Blackhom Trend during this same period. These occurrences include the Homestake Zone and the Hunting Lodge and Galena showings. Work consisting mainly of prospecting and trenching was conducted over these occurrences.

From 1939 to 1979, when the area around the Blackhom Vein was restaked as the McDuck et al. claims, only a little surface work was carried out in 1946 (Stevenson, 1947 as referenced in Peattield, 1996).

’ oz/st indicates ounces Troy per short ton. 3 Mineral occurrence locations are based on the 1997 exploration program and previous work by L. Berniolles.

Claim boundaries derived from Figure 2.

Base map from Mount C~ueen Bess,~SZN/7 and Razorback Mountain. 92N/lO, 1:50,000 scale topographic maps.

1.0 0.0 0.5 1.0 2.0 3.0 By: 9. lesper SC&: Figure Date: October, 1997 1:75,000 3 (In kilometres) From 1980 to 1984, work revolved around prospecting, mapping, and sampling of the old workings (Copeland, 1981; McConnell, 1982 and Jones, 1984). No new showings were found and the claims were allowed to lapse in 1987.

- In the fall of 1987, the core area around the Blackhom Vein was later restaked as the J.J. #I and #2 claims. A shallow hole diamond drill program was carried out in the summer of 1988 with negligible results (Copeland, 1988). The claims were allowed to lapse on October 14, 1991, at which time they were restaked by Blackhorn’s predecessor company.

In the summer of 1983, a prospecting team from Homestake Mineral Development Company located m-situ gold-bearing arsenopyrite mineralization in the Feeney area located near the headwaters of Ottarasko Creek (Figure 3). The Lori 1-4 claims, were staked in late August of the same year to cover these occurrences. Prospecting and detailed stream sample sampling in 1983 outlined a number of gold anomalies in the area of the present day Champagne Vein. Samples of quarts float from this area assayed up to 89,000 ppb gold and 1,534 ppb arsenic (sampleHd70G, Romring, 1984). A stream sediment sample (sample H-840G) collected from this same area was highly anomalous in gold (385 ppb) and anomalous in arsenic (65 ppm). The source of these anomalies was not located during these programs. - In May of 1987, the area was restaked in part as the Loot l-2 claims. Equinox Resources Ltd. and Canada Orient Resources than carried out prospecting and stream sediment sampling programs - over the next two summers (Culbert, 1988 and Culbert et al, 1988). Their work confirmed Homestake’s results and the presence of gold-bearing float down slope from the Champagne vein, but again, the source of the anomalies was not located.

From 1987 to 1994, several prospecting campaigns were conducted by Mr. Berniolles, through Blackhom’s predecessor organizations. These campaigns were successful in uncovering a number of new mineral occurrences including: copper-nickel sulphides related to mafic intrusives in the Atwood area; numerous areas of copper-rich quartz float; and auriferous quarts veining of “The Stack” in the HW area, the Milk Can Showing on the Blackhom trend and the Champagne Vein in the Feeney area (Figure 3; Berniolles, 1987, 1988, 1989, 1990, 1991a, 1991b, 1991c, 1994a, 1994b). All of these occurrences are presently covered by the current claims.

In 1988, the entire Niut Range was proposed as a Wilderness Area under the Forest Act (Bemiolles, 1995). This resulted in a number of investigations including a regional stream sediment and water geochemical survey for the map sheet 92N in 1991 (TvEMPR BC RGS 34) and an airborne magnetic residual total field survey flown in 1992 (GSC Open File 2785). A number of geochemical anomalies were delineated for the creeks draining the Niut Range property. In 1994, the proposed designation to protected area was turned down by the sitting government.

4.2 1992 Exploration Program

During September of 1997, Blackhom Gold Mines Ltd. carried out a small detailed exploration program whose purpose was to determine the significance of the main mineral prospects outlined in 4 Peatfield’s technical report (Peatfield, 1996). The exploration program consisted of geological mapping, prospecting and rock sampling. General mapping and prospecting was carried out at a scale of l:lO,OOOfor the whole region. Detailed mapping and sampling was conducted at scales ranging from 1: 100 to 1: 1,000 for the Blackhom Vein, Champagne Vein and Galena and Milk Can - Showings. When possible, showings were surveyed in using a compass, inclinometer and hip- chain f?om known points whose UTM coordinates were determined using the helicopter’s GPS unit.

A total of 163 rock samples were collected and sent to Bondar Clegg Laboratories in North Vancouver for testing. All rock samples were analyzed geochemically for gold and 34 elements by ICP. Samples with gold values 2 1.000 g/mt were re-fired and their values determined gravimetrically. All silver and zinc results over detection limit were also retested. Rock sample descriptions are located in Appendix C and analytical certificates are attached in Appendix D.

5.0 REGIONAL GEOLOGY

Earliest geological mapping in the area was conducted by V. Domage of the Geological Survey of Canada in 1924 and 1925. Domage reconnoiter parts of the area to define the contact of the Coast Plutonic rocks and to investigate the volcanic and sedimentary sequence (Tipper, 1969). Tipper (1969) mapped the eastern part of the Mount Waddington map sheet in 1967 at a scale of 1:126,720. The geology of this area was revised by Roddick and Tipper in 1985 when they produced new maps of the area at a scale of 1:125,000 (Roddick and Tipper, 1985). The Geological Survey of Canada through Rusmore and Woodsworth, remapped the Razor Mountain - and the Mount Queen Bess map sheets (NTS 92N/lO and 92N/7, respectively) at a scale of 1:20,000 from 1986 to 1989 and compiled the data at a scale of 1:50,000 (Rusmore and Woodsworth, 1993). It is based on this mapping that the following regional geology of the area is derived from and shown in Figure 4.

The Niut Range area straddles the boundary between the Intermontane superterrane on the east and the Coast Pluto& Complex on the west. In this area, Upper Triassic and Lower to Upper Cretaceous sedimentary and volcanic strata have been deformed by east-vergent thrusting to form the “eastern Waddington thrust belt” on the eastern margin of the Coast Plutonic Complex (Rusmore and Woodsworth, 1991b). Rusmore and Woodsworth (1991b) indicate that the thrust belt, as currentIy mapped, “strikes roughly northwest for at least 100 km and is more than 35 km wide”.

Rusmore and Woodsworth (1988) divided the Upper Triassic Rocks into four informal units of which three occur in the area of the Niut Range Property. The oldest rocks identified in the area were assigned to the Upper Car&n and(?) Lower Norian “Mt. Moore” formation (UTRMM).These rocks consist largely of augite-phyric basaltic to andesitic breccias with lesser volcanogenic sandstones and massive greenstone. This rock unit forms the upper flanks of Ottarasko Mountain in the southeastern part of the property.

Two unnamed units of Lower Norian age are overlain or thrusted between the “Mt. Moore” volcanics in the southeastern part of the property. These units consist of limestone to limy shales (UTRC)and maroon and green tttffaceous shales to lapilli tuffs (uTas). The same units arc thrusted over each other and form the lower slopes along Razor Creek in the northern part of the property. Rusmore and Woodsworth (1988) indicate that these sedimentary rocks may be correlated with and a facies of the “Mt. Moore” Formation.

Tipper et al (1981) initially interpreted these Upper Triassic rocks as being part of the Wrangellia Terrane which represents a rift basin in a back-arc setting. Rusmore and Woodsworth (1991a) infer from basalt chemistry supported by field relations and rock types, that the Upper Triassic rocks formed in an island-arc setting and therefore, are actually correlative with the Upper Triassic Stikinia Terrane found further to the north.

Upper Jurassic to Lower Cretaceous volcanic and sedimentary rocks of the informally called “Ottarasko” (tKo) and “Cloud Drifter” (IKCD)Formations are thought to stratigraphically overlie the Upper Triassic units. Rusmore and Woodsworth (1988) state that the volcanic rocks of the “Ottarasko” Formation are the structurally highest rocks on Blackhom and Ottarasko mountains, forming the peaks and ridges. These volcanic rocks are described as consisting of poorly stratified, unsorted to poorly sorted, da&tic to andesitic volcanic breccias with few recognizable flows. In places, basalt and rhyolitic volcanics may be locally abundant. Minor interbeds of siitstone and shale occur withiu these volcanics.

Sedimentary rocks of the “Cloud Drifter” Formation mainly outcrop to the east of Nude Creek in the property area Rusmore and Woodsworth (1988) describe these rocks as being “dominantly fine grained sandstone, siltstone and shale, but well stratified and locally crossbedded conglomerate is present”. They believe that this unit formed in a shallow marine to deltaic setting. Ammonites found by them and Tipper (1969) indicate that the unit is Hauterivian in age.

A unit of black shale and siltstone (bs) of unknown age, has being mapped by Rusmore and Woodsworth (1993) as being structurally interweaved with the Hauteriviau and older strata. This unit occurs along the eastern flank of Blackhom Mountain and along the ridge line separating Nude and Ottarasko Creeks.

As mentioned above, the Upper Triassic and Lower Cretaceous sedimentary and volcanic strata were deformed by northeasterly verging thrust faults and recumbent folds. Rusmore and Woodsworth (1991b) state “radiometric dating .. . indicates that thrusts were active between 87 and 68 Ma and that deformation probably occurred in the earliest part of this period”. They also note that “where exposed, the thrusts are marked by zones of highly strained phyllite, limestone, sandstone or conglomerate” &smore and Woodsworth, 1988). Through rough restoration of folds and thrusts in this area, Rusmore and Woodsworth (1991b) estimated that about 40% shortening occurred. Along the head waters of Ottarasko and Nude Creeks, these thrust faults form thick imbricate zones of strucmrally interweaved slices of Upper Triassic and Lower Cretaceous age strata -

In the southwestern part of the area, a tonalitic orthogneiss (LKP) is exposed along Nude Creek. - This tonalitic orthogneiss is part of the Central Gneiss Complex described by Roddick and Tipper (1985) and which is part of the Coast Plutonic Complex located west of the property. Rusmore and Woodsworth (1991b) describe this rock as being the youngest involved in the thrusting and that the - “orthogneiss is a prekinematic to synkinematic pluton”. Roddick and Tipper (1985) suggest that the Central Gneiss Complex may be the parental material for the post tectonic plutons.

The youngest rocks in the area are Late Cretaceous to Early Tertiary post tectonic intmsives (KTg). These intrusives vary in composition from tonalite to quartz diorite to granodiorite. Radiometric dating of the pluton underlying the Atwood area in the southeastern part of the Niut Range property, gave a concordant U-Pb date of 68 2 0.3 Ma and K-Ar date of 7 1.3 k 1.6 Ma (Rusmore and Woodsworth, 1993).

: 6.0 PROPERTY GEOLOGY AND MINERALIZATION - 6.1 Geology :

The Niut Range property is largely underlain by thrusted sheets of Upper Triassic to Lower Cretaceous sedimentary and volcanic strata and Late Cretaceous orthogneiss. Green schist metamorphism is pervasive throughout these rocks. Late stage to post tectonic intrusives varying from a gabbro-diorite pluton to feldspar porphyry dykes intrude the thrust sheets throughout the proper@.

During the 1997 exploration program, mapping was conducted along the Blackhom trend and in the Feeney and Atwood areas. General geology and rock units were modified from those of Table 6.1.1 shows the correlation of rock units described in this - Rusmore and Woodsworth (1993). section to those of Rusmore and Woodsworth.

- As indicated in Section 5, Upper Triassic rocks related to the “Mt. Moore” Formation and it’s equivalent form the oldest rock units on the property. Basaltic to andesitic breccias and volcaniclastics of the “Mt. Moore” Formation (Unit 1) form the ridge tops of the hanging valleys to the east of Nude Creek on the OTRl A, OTR2A and OTR 4 claims (Figure 12). Rocks from this unit were not encountered during this field program.

Lower Norian limestones to liiy shales (Unit 2) and maroon and green tuffaceous shales (Unit 3) form imbricated thrust sheets in the northern and southern parts of the property. In the Blackhom area, Rusmore and Woodsworth (1993) mapped these two units as forming imbricate thrust sheets separating the Upper Jurassic to Lower Cretaceous “Ottarasko” and “Cloud Drifter” formations along the lower slopes of Razor Creek (Figure 5). Tuffaceous shales also separate these two formations in the Feeney area to the east (Figure 10). In the southern part of the property to the east of Nude Creek, limestones to limy shales of Unit 2 form imbricate thrust sheets within or separate the “Mt. Moore” volcanics from the sedimentary rocks of the “Cloud Drifter” Formation (Figure 12). ,.

_ TABLE 6.1.1: Correlation of Rock Units Time SC Rock Units Description ‘eriod and/or Epoch Age Rusmore and This - Woodsworth Re~orl (1993) L Qamiur None 10 Unconsolidated alluvium and glacial deposits. Tertiary (?) None 9 Undifferentiated dykes. 9a Hornblende-phyric dyke. 9b Diorite. 9c Feldspar porphyry and felsic dykes. 9d Diabase. Ate Cretaceous to?) KTg 8 Undifferentiated intrusive: tonalite to Early Tertiary granodiorite composition. 8a Ultmmatic to gabbro. 8b Gabbroic diorite. SC Diorite. 8d Ultmmafic dyke. 6 Black shale and siltstone of unknown age. : .ate Triassic to Early bs Cretaceous 6a Black, thinly laminated shales. Lower Cretaceous I IKCD 5 “Cloud Drifter” formation. Undifferentiatec I sandstone, siltstone and minor conglomerate. a Thickly bedded greywackes. b Thiily bedded sandstone, siltstone am i mudstone or shale.

Chloritic phyllite to schist. Upper Jurassic (?) to / i Lower cretaceous I I 1 dacitic to and&tic volcaniclastics and mine i- volcanics. 4a Andesitic crystalline tuff. - 4b Interbedded siliceous sediments and shales. 4c Chloritic phyllite. Upper Triassic Lower Norian UTRS 3 Maroon and green tuffaceous shales an lapilli tuff. _ UTRC 2 Undifferentiated crystalline limestone an d limy shales. Upper Camian UTRMM 1 “Mt. Moore” formation. Undifferentiate d and(?) Lower basaltic to andesitic volcanics and .~ Norian volcaniclastics.

Dacitic to andesitic volcanics and volcaniclastics of the “Ottarasko” Formation (Unit 4) form the .~ ridge tops and peaks of the mountains within the Niut Range Property (Figures 5 and 10). This unit was only encountered in the Blackhom area (Figure 5) where it was further divided into 3 subunits consisting of: andesitic crystalline tuff (Unit 4a), interbedded siliceous sediments and shales (Unit 4b) and chloritic phyllites (Unit 4~). The fine- to medium-grained andesitic crystalline tiff displays - 8 a weak foliation and is poorly sorted and layered. This rock unit is mainly exposed in the Milk Can Showing (Figure 9) where it forms highly resistant exposures. The interbedded siliceous sediments and shales consist of interbeds of thinly bedded fine-grained sandstones to shales. These siliceous sediients form the lower part of the “Ottarasko” formation exposed north of the Hunting Lodge Showing (Figure 5). Chloritic phyllite form narrow interbeds within the andesitic volcaniclastics at the Milk Can Showing.

Sediientary rocks of the “Cloud Drifter” Formation (Unit 5) form distinct thrust sheets to the west of Razor Creek in the Blackhom area (Figure 5) and to the east of Nude Creek in the Atwood area (Figure 12). In the Peeney area, these sedimentary rocks are interbedded with the “Gttara.sko” volcanics (Figure 10). Finely disseminated pyrrhotite (cl% to 1%) withinthe sedimentary rocks in the Atwood area gives it a distinct rusty appearance which separates this unit from the overlying ‘Mt. Moore” volcanics. This unit has being fi.nther divided into 6 subunits consisting of: thickly to massive bedded greywackes (Unit 5a), thinly bedded sandstone, siltstone and mudstone or shale (Unit 5b), massive quartzite (Unit 5c), massive metaconglomerate (Unit 5d), lithic crystaltuff (Unit Se) and a phyllite or schist of variable composition (Unit St). The greywackes of Unit Sa form dark grey, thickly bedded to massive resistant outcrops. This compares to the lenticular to thinly bedded nature (up to 3 cm wide) for the interbedded sediments of Unit 5B which vary from laminated shales to siltstone to thinly bedded sandstones. The white quartzite of Unit 5c differs from the massive greywacke of Unit Sa by its colour and bleached appearance. Large quantities of quartz lenses are also present in the quartzite. Flattened and elongated clasts within a fine-grained matrix distinguishes the metaconglomerate (Unit Sd). The lithic crystal tuff consists of pebble to cobble size fragments of laminated sediments within a matrix composed of millimetre size, feldspar crystals.

Of these subunits, the greywackes of Unit 5a and the interbedded sediments of Unit 5b are the most common, forming prominent ridges in the area of the Milk Can Showing (Figure 5) and the Feeney Area (Figure 10). Massive greywacke also underlies the area of the Blackhom Vein (Figure 7). The quart&e was only located in the Feeney area where it caps a prominent ridge between two snow fields while the metaconglomerate forms prominent exposures at the Homestake Zone and the Galena Showing along the Blackhom Trend (Figures 5 and 8). A small outcrop of lithic crystal tuff(Unit 5e) is located among the sediments in the Feeney area (Figure 10).

Phyllites to schists varying in composition from chlorite-quarts to muscovite-biotite-chlorite-quartz are found throughout the Blackhom area (Figure 5). For the purpose of mapping, they have been identified as part of the rock unit in which they are found, Units 4c and 5f of the “Ottarasko” and “Cloud Drifter” Formations, respectively. These phyllites and schists are believed to be metamorphosed, fine-grained volcaniclastics and sediments which were altered during the period of thrust faulting. The main gold occurrences of the Blackhom trend are either hosted in or closely associated with the phyllites and schists.

Black shales and siltstones of unknown age (Unit 6) form distinct thrust sheets in the Blackhom and Feeney areas (Figures 5 and 10). This unit was only encountered in the Homestake Zone during this program where it occurs as black, thinly laminated shales (Unit 6a). 9 A multi-compositional intrusion of Late Cretaceous to Early Tertiary (?) age underlies the majority of the Atwood area in the southeast comer of the Niut Range Property (Figure 12). Rusmore and Woodsworth (1993) note that this intrusion varies from a tonal&e to quartz diorite to gmnodiorite. In the Atwood area, the intrusive is more matic in composition, varying from a pyroxene- to hornblende-rich, medium to coarse-grained ultramafic (Unit 8a) to gabbroic (Unit 8b) to gabbro- diorite (Unit SC)intrusive. This matic intrusive was subsequently intruded by a fine-grained diorite and narrow, coarse-grained pegmatitic dykes. Round xenolith boulders of the gabbro and ultramafic occur within the diorite indicating multiple pluses of the intrusion as its composition changed from mafic to quartz-bearing.

Numerous dykes of probable Tertiary age (Unit 9) crosscut rocks of all the above units. The width of these dykes vary considerably from 20 to 30 cm for a diabase dyke crosscutting the intrusive in the Atwood area to 220 m for andesitic dykes in the Homestake Zone of the Blackhom area. The dykes post date the thrust event as they cross cut the phyllitic units along the Blackhom Trend and they do not exhibit any signs of greenschist metamorphism. Dykes with a north-south to northwest-southeast orientation are believed to have intruded along structures emplaced during a younger deformation event. The dykes display either a porphyritic or tine-grained texture. The porphyritic dykes vary from a hornblende porphyry diorite (Unit 9a) to feldspar porphyry andesite to felsite (Unit 9c); while the tine-grained ones are either diorite (Unit 9b) or diabase (Unit 9d).

- At least two deformational events are recognized on the Niut Range property. The first event is related to Late Cretaceous age thrust faulting while the second is related to younger, normal strike- slip faults. The younger faults are possibly related to the northwest trending Tchaikazan and Yalakom faults which pass approximately 15 and 40 km northeast, respectively, of the Niut Range Property.

Thrust faults of Late Cretaceous age form the major structures throughout the Niut Range Property. The thrust faults, which are generally marked by the chloritic phyllites to schists noted above, separate the Triassic and Lower Cretaceous rocks into thin north-south oriented, thrust sheets which have been stacked one on top of the other. Cleavage in phyllites has a northerly strike (358” to 031”) and gentle westerly dip (14” to 38”).

Normal strike-slip faults were mapped cross cutting and offsetting all rock units including the thrust faults. They form recessive features infilled with a fault gouge and discontinuous, centimetre wide quartz + carbonate\calcite veining. At least two sets of faults were noted; the first, a prominent set, oriented southeast-northwest and the second, a minor set, oriented northeast-southwest. Faults or f%acturesrelated to the first set strike between 128” to 158” and dip steeply to the east or west. These faults form gullies or rock chutes in the Blackhom Vein and Feeney areas, offsetting the Blackhom and Champagne veins. The second set of faults and fmctures generally occurring in the Blackhom area, strike 030” to 064” and dip moderately to the northwest. Fractures of the second set - are usually truncated and/or offset by those of the first set.

10 6.2 Mineralization

Significant mineralization on tb.e property can be divided into three general categories: gold + arsenic quartz-carbonate veining; copper-rich quartz veins; and copper-nickel sulphides related to mafic intrusives. The following outlines each of the different styles of mineralization and their related occurrences.

6.2.1 Gold + arsenic quartz - carbonate veining

Gold + arsenic quartz-carbonate veins consist of banded quartz to quartz-carbonate veins within a phyllitic to schistose host. Sulphide mineralization consists of disseminated to banded arsenopyrite and pyritevarying in quantities up to 5%. Galena and sphalerite with localized occurrences of chalcopyrite may be present in quantities up to 2%. Microscopic free gold was found in a float sample at the portal to the Blackhom vein underground workings. The veins are generally confined to northeast-southwest trending structures or along structures which subparallel the local thrust faults. The vein occurrences along the Blackhom Trend and the Champagne Vein in the Feeney Area are examples of this style of mineralization. Each of these areas is discussed in detail below.

6.2.la Blackhorn Trend

Work carried out in the late 1930’s and confirmed in part by the recent program, located numerous gold + arsenic to gold-silver-arsenic-base metal rich vein occurrences hosted within schistose rocks along a 4.5 km trend, the “Blackhorn Trend”. This trend consists of the - Blackhom Vein and other related occurrences including from south to north: the Homestake Zone, the Hunting Lodge, the Galena and Milk Can Showings. These are located to the west of Razor Creek in the northern part of the property, along the eastern flank of Blackhom Mountain’s southern ridge (Figures 3 and 5). The only gold anomalies found or rediscovered during the 1997 exploration program was along the Blackhom Trend.

The following is a brief description of each of the occurrences and any related sampling results:

Blackhorn Vein:

The Blackhom Vein is the most significant gold deposit on the property. The vein is located at approximately 2,160 m elevation within a cirque wall and centred on the UTM coordinates N 5715410, E 376200 (Figure 5). The vein can be traced for over 17 m on the surface, even though it is poorly exposed, and for 51.7 m in the underground drift. It is hosted within and cross cuts phyllitic to schistose sediments which are interbedded within a massive greywacke (Figures 6 and 7). At the western end of the surface exposure, the vein terminates vertically against a quartz vein which strikes 039” to 006” and dips 34” to 38” to the west. This quartz vein sub-parallels the cleavage in the phyllitic outcrop on the surface (Figure 6).

Detailed chip sampling and mapping of the surface and underground workings was carried out during the 1997 exploration program in order to understand the high diversity of results from samples taken during programs conducted in the late 1980’s (Figure 7). The main observations from mapping of the Blackhom Vein are:

1. The quartz + calcite vein has a massive to banded appearance. Where banded, it is composed of dark grey to white bands with sulphides giving the dark grey colour. The vein is weakly sericitic in places. 2. Sulphides, consisting mainly of arsenopyrite, pyrite and pyrrhotite with lesser anrounts of sphalerite, galena and copper, average from 3% to 5%, but may comprise up to 10% of the vein. Sulphides occur as stringers or laminae up to 1 cm wide, and ,, as blebs and tine disseminations. - 3. The vein varies from 0.21 to 1.00 m in width, averaging 0.43 m. It has a general east-northeast orientation, striking from 049” to 087” and dipping steeply (52” to 87”) ., to either the north-northwest or south-southeast. . 4. Numerous faults, 2 to 50 cm wide, offset the vein. A 1.15 metre wide, unaltered feldspar porphyry dyke cross cuts the vein within the drift and at surface. 5. In places, a siliceous selvage containing 3% to 5% arsenopyrite and pyrite is present along the vein. The hanging wall and footwall are generally mineralized with 1% to 2% finely disseminated pyrrhotite > pyrite + arsenopyrite.

A total of 80 rock samples were collected from the Blackhom Vein area, 10 from surface showings and 70 chip samples from the underground workings. Results from the 1997 sampling program are summarized as follows:

1. Gold results for the vein are highly variable, ranging from 4.17 g/mt (0.122 oz/st) over 0.90 metres to 193.08 g/mt (5.638 o&t) over 0.50 metres and averaging 34.70 g/mt (1 .O13 oz/st) uncut over 0.43 metres. 2. High concentrations of silver, arsenic and base metals show a good correlation with - gold within the vein. Values up to 238.0 ppm silver, >lO,OOOppm arsenic, 2.00% zinc, >lO,OOOppm lead and 1,982 ppm copper were returned. 3. The surrounding schistose wall rock generally contains anomalous levels of gold, up to 4.37 g/mt over 0.90 m, and arsenic, up to >lO,OOOppm.

,, 4. The host wall rock also contains elevated levels of silver, zinc and copper throughout, up to 7.5 ppm, 674 ppm and 247 ppm, respectively. Lead was only anomalous in a few samples, up to 270 ppm. 5. Where sampled on the surface, the vein contains gold (14.870 and 5.850 g/mt) and arsenic (3,200 and 1,174 ppm) in two samples (samples VI54879 and V154878,, respectively). Silver, lead, zinc and copper values were lower when compared to the ,, underground results, returning a maximum for each of 6.4 ppm, 180 ppm, 65 1 ppm and 194 ppm, respectively.

As indicated previously, the Blackhom Vein truncates vertically or transforms into a flat lying to gently westward dipping quartz vein on the surface in the area of the “Cut”. Rock samples

,, 12

. collected along this vein and its southern trend were all auriferous, assaying 54.190, 4.660, and 11.270 g/mt for samples V154865, V154880 and V154881, respectively. These samples also contained anomalous levels of arsenic (up to >lO,OOOppm) and silver (up to 12.3 ppm), but generally low levels of base metals when compared to the Blackhom Vein.

Galena Showing:

The Galena Showing is located 300 m to the north-northeast of the Blackhom Vein and centred on the UTM coordinates N 5715715, E 376295 (Figure 5). It consists of nine pits located on discontinuous veins over a distance of 1OOmand along a trend of 040” to 060” (Figure 8). The quar&-carbonate veins vary in width from 1 to 40 cm, are of indeterminate length and are hosted within phyllitic to schistose sediments. Sulphides consisting of pyrite, arsenopyrite and galena occur as fracture fillings and vary in quantity from trace amounts to 5%. Sericite in fractures and chloritized rock fragments are also present in the veins.~ Where measured, vein orientation ranges between strike 040”, dip 79” northwest to strike 093”, dip vertical. .

Of the six rock samples collected, three were auriferous (samples VI54657 to V154659), containing gold values ranging from 0.429 to 5.37 g/mt. Anomalous arsenic results up to 8,749 ppm, correspond to the gold results. Sample VI54658 was also highly anomalous in silver (13.5 ppm) and lead (6,879 ppm). The anomalous values closely correlate to the high sulphide content with the exception of sample V154659, which was strongly oxidized. All three gold-bearing rock samples were taken from quarts 2 calcite veins or fracture fillings within the pits.

Milk Can Showing:

., The Milk Can Showing is located on the ridge above the Galena Showing, approximately 600 m to the north of the Blackhom Vein and centred on the UTM coordinates N 5716990, E 376160 (Figure 5). It is exposed over 7.0 m within talus on a steep, southwesterly facing slope, approximately 30 m down slope from the ridge line. The showing consists of a 0.75 m wide, steeply dipping, northerly striking (025”) quartz vein which truncates and than subparallels numerous discontinuous, stacked quartz veins 1 to 10 cm in width (Figure 9). The stacked quartz veins are oriented approximately east-west (082” to 090”) and dip moderately to the north (30” to - 40”). The veins are hosted within massive andesitic volcaniclastics with thin interbeds of chloritic phyllites. Limonitic spots and a trace to ~1% disseminated pyrite are found along fragments of chloritic phyllite within the vein.

A total of 10 rock samples were collected from this area during the 1997 program. Of these, six contained anomalous gold results (>lOO ppb) with the two strongest gold anomalies, 3.03 and 0.95 g/mt (samples V154885 and V154891, respectively), not being from the main occurrence. Sample VI54885 was taken of a 15 to 60 cm wide quartz-calcite vein 22 m to the northeast of the Milk Can Showing. This vein has a pyritic-chlotitic selvage and similar orientation as the principal quartz vein in the main showing. Sample V154891 was a grab across weakly limonitic quartz-chlorite boulders located 6 m to the west of the main vein occurrence. Of the four samples collected from the Milk Can Showing itself (samples V154886 to V154889), all were 13

,, weakly anomalous in gold assaying from 0.111 to 0.437 g/mt. Weakly anomalous arsenic values varying from 152 to 342 ppm corresponded with the gold anomalies. None of the samples were anomalous in silver or base metals.

Hunting Lodge Showing:

The Hunting Lodge occurrence is located on a talus slope 550 m to the south-southeast of the Blackhom Vein on the southern side of the same cirque. It is centred on the UTM coordinates N 5714900, E 376 275. A quartz vein hosted within phyllitic sediments, can be traced in outcrop and float over a distance of 20 m. The vein varies in width from 2 to 20 cm, strikes 160”, dips 5” west and contains arsenopyrite along with traces of pyrite and chalcopyrite.

Of the four rock samples collected here, only one was strongly anomalous in gold, assaying 5.57 g/mt gold (sample V153770). This sample was taken of limonitic quartz boulders within a partially filled trench. A sample of an 8 cm wide quartz vein in silicified sediments 26 m north of the trench assayed 0.155 g/mt (sample V153769). Both samples contained anomalous amounts of arsenic (>lO,OOOand 1,675 ppm, respectively), but low levels of silver, copper, lead and zinc.

Homestake Zone:

The Homestake Zone marks the southern extent of the Blackhom Trend. It is located on the western slopes above the glacier at the head of Razor Creek, approximately 2.0 km south of the Blackhom Vein and centred on the UTM coordinates N 5713100, E 376350. The area is underlain by metaconglomerate overlying a chloritic phyllite and intruded by diabase and feldspar porphyry andesite dykes. Quartz and/or calcite to carbonate veins occurs as centimetre size boudins and tension gashes within faults and along contacts with the chloritic phyllites. Numerous “cuts” were excavated along the veins in the late 1930’s. Reports of these veins note the presence of chalcopyrite, arsenopyrite, pyrite and sphalerite (Mitchell, 1938 and Sargent, 1938), the only sulphide mineralization found during the 1997 program was pyrrhotite (up to 5%, either as tine disseminations or as blebs) and traces of pyrite.

A total of 11 rock samples were collected from the “Homestake” Zone during the 1997 program and none contained any elevated amounts of gold or arsenic. Only sample V153751 contained anomalous amounts of silver, 2.5 ppm. Reports from the late 1930’s noted gold and silver values up to 1.47 o&t (50.34 g/mt) and 1.10 oz/st (37.67 g/mt), respectively, for samples from the same general area (Mitchell, 1938 and Sargent, 1938).

Unnamed Vein Occurrences Along the Blackhorn Trend:

Two other vein occurrences containing anomalous amounts of gold and arsenic, were found along the Blackhom Trend during the 1997 program. Samples collected from two separate flat lying quartz veins located approximately 2.0 km north of the Blackhom vein, returned gold assays of 2.640 and 0.345 g/mt (samples V153766 and V153767, respectively). Sample 14 V153766 was also enriched in arsenic, containing 5,646 ppm, while sample V153767 was anomalous in zinc, assaying 4,638 ppm. The veins vary from 15 to 20 cm in width, are hosted within phyllites and siliceous sediments and are mineralized with disseminations and blebs of pyrrhotite 2 arsenopyrite. A sample collected from a rusty weathering boulder located along the ridge line 400 m to the southwest of the Blackhom Vein returned 0.206 glmt gold and 652 ppm arsenic (sample V153771). This boulder is located just to the south of the southwest extension of the Blackhom vein.

6.2.lb Champagne Vein (?)

The Champagne vein is located in the Feeney area of the eastern part of the Niut Range property. Bemiolles (1995) described it as “... a sub-horizontal quartz vein with a width of 30 cm to 1 m outcropping intermittently for over 100 m”. The vein is said to contain “... locally abundant arsenopyrite and sphalerite ...” (Bemiolles, 1995). Previous sampling along this occurrence returned gold and arsenic values up to 2,613 ppb and >2,000 ppm , respectively (Bemiolles, 1991a).

An attempt was made to locate and sample this vein during the 1997 field. The possible locality - of the vein was indicated to us by Mr. Bemiolles while flying by in a helicopter. The vein investigated during this program is located approximately on the UTM coordinates N 5713 100, E 379670 (Figures 10 and 11). It consists of centimetre size calcite-quartz sweats to quartz lenses hosted within or at the contact of thinly bedded to laminated sandy siltstone to shale and thinly to thickly bedded greywacke. Quartz lenses or boudins are located near southeast-northwest trending faults which appear to offset both the host strata and veining. These lenses are discontinuous and vary from 0.10 to >l.O m in width. Small amounts of pyrite (‘1 to 1%) as tine disseminations are associated with the veining. A 3 to >lO m wide, orange weathering, calcite- ankerite alteration halo marks the vein outcrop. Veining and alteration can be followed along strike for approximately 120 m where the system disappears under the talus to the north. Prospecting did not locate the vein’s southern or western extension.

A total of 12 chip samples were collected along the trend of the vein. All of these samples contained low levels of gold and arsenic (maximum 0.030 g/mt and 44 ppm, respectively) in marked contrast to samples collected by Bemiolles (1991a). Limited prospecting in the surrounding area also failed to locate any arsenopyrite-quartz vein mineralization.

6.2.2 Copper-rich quartz mineralization

Copper-rich quartz float has been located in most areas of the property during this and previous exploration programs. The mineralization has been described as quartz float or veins with blebs of pyrite, chalcopyrite, malachite and azurite hosted within grey to dark grey volcanics. The style of mineralization differs from the gold + arsenic veining in that copper sulphides predominate and arsenopyrite is absent. Samples of copper-bearing float collected in previous programs returned results up to 3.04% copper (sample AT34-88-43; Bemiolles, 1988), 59.25 g/mt (1.730 o&t) gold (sample HWSS-13; Berniolles, 1989) and 164.38 g/mt (4.80 oz/st) silver

‘-

,~, (sample CH90-17; Berniolles, 1991a). The copper mineralized quartz float found on the AT 2 claim was relocated this year (sample AT2-87-16, Figure 12). Most of these copper occurrences are in the southern half of the Niut Range Property, in areas underlain by andesitic to basaltic volcanics and volcaniclastics of the “Mt. Moore” and “Ottarasko” Formations (Figure 3). The host structure for this style of mineralization is unknown as none of these occurrences were followed up.

During the 1997 exploration program, a copper mineralized quartz vein was found on the BLK 1 claim, approximately 275 m southwest of the Hunting Lodge Showing (Figure 5). The vein, which is hosted within siliceous sediments, pinches and swells from 3 to 30 cm along its 20 m - exposure and has a general orientation of strike 190”, dipping 20” west. Blebs of chalcopyrite tarnished with born&e (~1 to 2%) occur throughout. Results for the two samples collected along - this vein were anomalous, containing 4,638 and 482 ppm copper (samples V153773 and V153772, respectively). Sample V153773 also returned an elevated silver result of 2.7 ppm. Gold, lead, zinc and arsenic values were low. - 6.2.3 Copper-nickel sulphides with mafic intrusives

Copper-nickel sulphides are associated with gabbroic to ultramafic intrusives in the Atwood area in the southeastern comer of the Niut Range Property (Figure 12). Pyrrhotite + pyrite + chalcopyrite occur either as disseminations or pods within ultramatic dykes or layers (?) and associated pyroxene pegmatitic dykes. The mineralized ultramafics are generally discontinuous, vary in width from 1.2 m to 3.0 m and contain l-2% disseminated sulphides. Sulphide-rich pods up to 50 cm in length are sporadically located throughout. Gossanous, pyrite-rich~ lenses or xenoliths (?) measuring up to 11 m by 3 m, are also present. Both types are hosted within a medium- to coarse-grained gabbroic to dioritic stock. A tine-grained diorite intrusive and later felsic to diabase dykes intrude the coarser-grained gabbro-diorite.

A total of 22 rock samples were collected in the Atwood area. Of these, only samples collected from the sulphide-rich zones within the gabbroic to dioritic stock contain anomalous values of copper and nickel (>lOO ppm). Samples collected from the mineralized ultramafic dykes or layers contain up to 1,988 ppm copper, 1,657 ppm nickel and 285 ppm cobalt. Nickel/copper ratios for these samples varied from 0.28 to 1.95. Samples of the gossanous, pyrite-rich xenoliths have lower metal concentrations with values up to 335 ppm copper, 64 ppm nickel and 34 ppm cobalt. A select grab from a pyrite-rich pod within one xenolith contained 2,200 ppm copper, 217 ppm nickel and 172 ppm cobalt (sample V154862). Nickel/copper ratios for these pyrite-rich xenoliths were also lower, varying from 0.11 to 0.19. Gold results for all samples were low (up to 0.053 g/mt) and no testing was carried out for palladium or platinum. Samples with anomalous copper and nickel values (~100 ppm) are listed in Table 6.2.3.

/ TABLE 6.2.3: Atwood Area Anomalous Copper - Nickel Rock Samples.

7.0 DISCUSSION AND CONCLUSIONS

The Niut Range property is largely underlain by thrusted sheets of Upper Triassic to Lower Cretaceous sedimentary and volcanic strata and a Late Cretaceous orthogneiss. Late stage to post thrust intrusives varying Tom a gabbro-diorite stock to feldspar porphyry dykes intrude the thrust sheets throughout the’ property. Northwest trending faults, possibly related to the regional Tchaikazan and YaMcorn faults, cross cut the thrust sheets. Orientation of some of the younger dykes appears to be controlled by these younger faults.

At least three different styles of mineralization have being recognized on the Niut Range ,, Property: gold + arsenic quartz-carbonate veining in which arsenopyrite + pyrite are the main sulphides present; copper-rich quarts veins in which copper sulphides predominate and arsenopyrite is lacking; and copper-nickel sulphides related to mafic intrusives. Examples of the gold + arsenic-bearing veins include the Blackhom Trend and the Champagne Vein. - Occurrences of copper-rich quartz veins are confined to either float samples or narrow vein occurrences associated with the volcanic rocks. Copper-nickel sulphides are confined to the matic intrusives exposed in the Atwood area of the property.

,, Of the three different styles of mineralization, the gold t arsenic veining is the most significant

- mineralization discovered on the property to date. All auriferous samples collected during the 1997 exploration program were determined to belong to this category of mineralization. The ., most significant gold showings and occurrences of this style of mineralization occurs along the Blackhom Trend located on the western side of the valley at the headwaters of Razor Creek.

. ,~ The Blackhom Trend consists of fault hosted quartz to quartz-carbonate and/or calcite veins within schistose volcanics or sediments found along a 4.5 km long trend marked by one or more thrust faults. Where auriferous, the veins are mineralized with arsenopyrite and pyrite +/- sphalerite, galena and chalcopyrite.

., Vein occurrences along the Blackhorn Trend include the Blackhom Vein, the Galena, Hunting Lodge and Milk Can Showings, and the Homestake Zone. Of these, the Blackhom Vein is the most important and has been the focus of the greatest amount of exploration. The vein occurs along a near vertical structure oriented northeast-southwest which appears to be truncated at the surface by a north-south striking vein. Sampling of the vein within the underground workings returned an uncut average of 34.70 g/mt gold over 0.43 m. This closely resembles the result of 31.85 g/mt gold over 0.56 m computed by Dirom in 1939. Arsenic values up to >lO,OOOppm for the vein and host rock, showed a close correlation with the gold. The vein was also highly anomalous in silver, lead, zinc and copper (up to 238.0 ppm, 2.00%, >lO,OOOppm and 1,982 ppm, respectively).

The Blackhom Vein can be traced for 17 m on the surface and for 51.7 m in an underground drift. Diamond drilling carried out in the late 1930’s supposedly traced the vein over a strike length of 79.25 m. Quartz float containing anomalous gold and arsenic values has being found on the ridge line 400 m to the southwest along the probable extension of this vein.

Highly anomalous gold-arsenic results were also returned from the other known and newly discovered vein occurrences including the Galena, Hunting Lodge and Milk Can Showings. Samples from these areas assayed up to 5.57 g/mt gold and >lO,OOOppm arsenic. With the exception of the Galena Showing, none of these areas contained elevated amounts of silver, lead, zinc and copper. One sample of veining within the Galena Showing contained 13.5 ppm silver and 6,879 ppm lead.

No anomalous gold and arsenic results were returned from any samples collected in the Homestake Zone during this program. It is believed that the auriferous showings uncovered in the late 1930’s occur further to the north.

., The gold-arsenic vein occurrences along the Blackhom Trend can also be subdivided into two - separate groups. The first group of consists of veins which are generally oriented northeast- southwest to east-west, steeply dipping and cross cut the cleavage in the rocks in which they are hosted. These veins tend to also contain elevated levels of silver and base metals. The - Blackhom Vein and Galena Showing are two examples of this first group of veins.

The second group of veins are generally oriented north-south, flat lying to shallow dipping and are probably hosted along the thrust faults. These veins do not appear to contain elevated silver and base metals. Examples of this type of veining include the Hunting Lodge Showing and the vein which truncates the Blackhom Vein on surface.

., The relationship of these two types of veining is still unclear. As indicated above, the Blackhom Vein belonging to the first group is truncated vertically or changes to a quartz vein of the second group at it’s western most surface exposure. It is plausible that the gold + arsenic-bearing veins were first emplaced along both structures, and that a later silver + base metal mineralizing event occurred along the more vertical structures. The silver + base metal event would probably have

./. 18

., , remobilized some of the gold from the first event. Further work is required before any definite conclusion can be made.

The Champagne Vein found in the Feeney area is another example of gold-arsenic vein mineralization. While the vein sampled during this program did not contain any anomalous gold and arsenic values, it is believed that the actual Champagne Vein was not sampled. Previous sampling along the Champagne Vein returned gold and arsenic results up to 2,613 ppb and >2,000 ppm , respectively (Bemiolles, 1991a). Gold + arsenic-bearing quartz float found downslope by Homestake in 1983 (Ronning, 1984) and Equinox Resources in 1988 (Culbert, 1988) support the presence of a gold-bearing structure here.

The second general style of mineralization, copper-rich quartz veins and float, has been found in various areas of the Niut Range Property. These occurrences appear to be generally restricted to areas underlain by andesitic to basaltic volcanics and volcaniclastics of the “Mt. Moore” and “Ottarasko” Formations. Only one occurrence of this type of mineralization was found during the 1997 field program. Samples collected from a narrow quartz vein in the Blackhorn area contained up to 4,638 ppm copper and 2.7 ppm silver with negligible gold. Samples taken of ,, ,, copper sulphide bearing quartz float in the southern part of the property in previous years assayed up to 3.04% copper, 59.25 glmt gold and 164.38 glmt silver.

The third style of mineralization, copper-nickel sulphides within matic intrusives, was only located within the intrusive complex which underlies the Atwood area in the southeastern comer of the property. Pyrrhotite + pyrite + chalcopyrite occur as disseminations or sulphide-rich pods within ultramatic layers or dykes. Areas of sulphide mineralization are discontinuous and confined to small areas of ultmmafic rock within the gabbro-diorite stock. This gabbro-diorite stock has being intruded by and is apart of a larger, quartz-rich intrusive which varies from a granodiorite to a tonalite. The lack of any alteration in association with the sulphides indicate that they were derived from a magmatic origin and deposited with their ultramafic host. Samples of this style of mineralization assayed up to 1,988 ppm copper, 1,657 ppm nickel and 285 ppm cobalt. The sulphide-rich pods found sporadically throughout appear to be the likely source for the copper-nickel-cobalt float found in this area by Bemiolles in the summer of 1987 (Bemiolles. 1987).

In conclusion, the Niut Range Property covers an extensive area of complex geology consisting of imbricate thrust sheets of Mesozoic volcanic and sedimentary rocks which were intruded by a late stage to post thrust intrusive. Narrow, high-grade gold-bearing vein deposits associated with arsenopyrite form the more important mineral occurrences found on the property to date. These gold-bearing deposits appear to be localized along thrust faults and associated secondary normal structures in the northern part of the property. Numerous occurrences of copper-rich quartz float with significant gold and silver values occur over the southern half of the property. Although the source or sources for these floats have yet to be found, the more probable source are high-grade - vein chutes similar to those found to the north. Base metal mineralization containing elevated copper, nickel and cobalt values, is associated with mafic intrusives in the southeastern comer of

19 the property. This mineralization is generally discontinuous and localized within ultramafic layers or dykes.

Respectfully submitted, BLACKHORN GOLD MINES LTD.

ritish Columbia June, 1998

20 .,

,..

.,, APPENDIX A

BIBLIOGBAPHY

- BIBLIOGRAPHY

Anonymous (1940): British Columbia Ministry of Mines Ann& Report, 1940; p. A72.

Bemiolles, L. (1987): Prospecting Report, AT2 Claim, Clinton Mining Division; British Columbia Ministry of Energy and Mines Geological Survey Branch Assessment Report #16,6%X.

Berniolles, L. (1988): Prospecting Report, AT3, AT4 Claims, Clinton Mining Division; British Columbia Ministry of Energy and Mines Geological Survey Branch Assessment Report #18,022.

Berniolles, L. (1989): Prospecting Report, HWl, HW4, HW5 Claims, Clinton Mining Division; British Columbia Ministry of Energy and Mines Geological Survey Branch Assessment Report #19,355.

Berniolles, L. (1990): Prospecting Report, HW6 Claim, Clinton Mining Division; Private prospecting report not filed for assessment.

Berniolles, L. (1991a): Sample descriptions, analytical results,and sample location map of field work conducted from Sept. 2 to 17, 1990, on the AT7, Champagne and HW3 claims; Not filed for assessment.

Berniolles, L. (1991b): Prospecting Report - HW9 Claim, Clinton Miig Division; British Columbia Ministry of Energy and Mines Geological Survey Branch Assessment Report #21,861.

Bemiolles, L. (1991~): OT91 Sampling program notes to accompany Statement of Work for the HW4 and HW5 Claims, Clinton Mining District; Not filed for assessment.

Berniolles, L. (1994a): Statement of Work with Summary of Work Done and analytical results for the HW5 Claim, Clinton Mining District; Work filed for assessment.

Berniolles, L. (199413): Statement of Work with Summary of Work Done and analytical results for the Blackhom and BLK 1 Claims, Clinton Mining District; Work filed for assessment.

Bemiolles, L. (1995): Private internal company report.

Copeland, J.J. (1981): Prospecting Report On McCope, McDon and McMul Claims; British Columbia Ministry of Energy and Mines Geological Survey Branch Assessment Report #9,575.

Copeland, J.J. (1988): Diamond Drill Sampling On The J.J.#l.Rec:2422 & J.J.#2,Rec2423; British Columbia Ministry of Energy and Mines Geological Survey Branch Assessment Report #17,858. Al Culbert, R. (1988): Geochemical And Prospecting Report On The Loot 1 And Loot 2 Claims; British Columbia Ministry of Energy and Mines Geological Survey Branch Assessment Report #18,250.

Culbert, R., Heberlein, K. and Lammie, C.A.R. (1988): Geochemical, Prospecting And Au Photo Study Report For Assessment Purposes On The Loot l-2 Claims; British Columbia Ministry of Energy and Mines Geological Survey Branch Assessment Report #17,392.

Dirom, G.A. (1939): Homathko Gold Mines Ltd. - Blackhom Mountain, Clinton M.D., B.C.; internal tile memorandum for Premier Gold Mining Co. Ltd..

Jones, H.M. (1984): Assessment Report - Geological Report - McDuck, McCope, McDow, McMul No. 1 and McMul No. 2 Claims; British Columbia Ministry of Energy and Mines Geological Survey Branch Assessment Report #12,691. . McConnell, G. (1982): Geological Report - McDuck, McDon, McCope and McMuI Claim Group; British Columbia Ministry of Energy and Mines Geological Survey Branch Assessment Report #10,654.

Mitchell, J.A. (1938): Properties On Blackhom Mountain, Clinton Mining Division, British Columbia; private report for Premier Gold Mining Co. Ltd..

O’Grady, B.T. (1938): British Columbia Ministry of Mines Annual Report, 1937; p. F3-F6.

Peatfield, G.R. (1996): Technical Report On The Niut Range Property, Tatlayoko Lake Area, British Columbia; Report submitted to the Vancouver Stock Exchange as a part of Black Horn Gold Mines company prospectus.

Romring, P.A. (1984): Preliminary Geology And Geochemistry Of The Lori 1,2,3 And 4 Claims; British Columbia Ministry of Energy and Mines Geological Survey Branch Assessment Report#13,150.

- Roddick, J.A. and Tipper, H.W. (1985): Geology, Mount Waddmgton (92N) map area; Geological Survey of Canada Open File 1163.

- Rusmore, M.E. and Woodsworth, G.J. (1988): Eastern margin of the Coast Plutonic Complex, Mount Waddington map area, B.C.; Geological Survey of Canada Paper 88-lE, p. 185-190.

Rusmore, M.E. and Woodsworth, G.J. (1991a): Distribution and tectonic significance of Upper Triassic terranes in the eastern Coast Mountains and adjacent Intermontane Belt, British Columbia; Canadian Journal of Earth Sciences, v. 28, p. 532-541.

Rusmore, M.E. and Woodsworth, G.J. (199Ib): Coast Plutonic Complex: A mid-Cretaceous

- contractional orogen; Geology, v. 19, p. 941-944. A2 Rusmore, M.E. and Woodsworth, G.J. (1993): Geological maps of the Mt. Queen Bess (92N/7) and Razorback Mountain (92N/lO) map areas, Coast Mountains, British Columbia; Geological Survey of Canada Open File 2586.

Sargent, H.. (1939): British Columbia Ministry of Mines Ammal Report, 1938; p. F29-F38.

Stevenson, J.S. (1947): Lode Goid Deposits, Southwestern British Columbia (Exclusive of Vancouver Island); British Columbia Department of Mines Bulletin No. 20 - Part IV.

Tipper, H.W. (1969): Mesozoic And Cenozoic Geology Of The Northeast Part Of Mount - Waddington Map-Area (92N), Coast District, British Columbia; Geological Survey of Canada Paper 68-33.

Tipper, H.W., Woodsworth, G.J. and Gabrielse, H. (1981): Tectonic Assemblage Map Of The Canadian Cordillera And Adjacent Parts Of The United States Of America; Geological Survey of Canada Map 1505A.

A3 APPENDIX B

STATEMENT OF EXPENDITURES STATEMENT OF EXPENDITURES

Expenses for 1997 Niut Range Exploration Program

PERSONNEL: Project Geologist 23 mandays @ $250/manday 5,750.oo Geologist 7.19 mandays @ $25O/manday 1,797.50 Prospector 15 mandays @ $250/manday 3,750.oo Geotechnician 15 mandays @ $125/manday 1,875.OO Subtotal 13,172.50 13,172.50

GEOCHEMICAL ANALYZES: Rock Samples 163 samples @$18.66/sample 3,041.58 L (Au + 34 element ICP) Au gravimetric fue assay (samples 2 1.000 gimt) 42 samples @$12.70/sample 533.40 Over detection liiit analyzes (silver and zinc) 3 samples @ $2.00/sample 6.00 Subtotal 3,580.98 3,580.98

RENTAL COSTS: 4 wheel drive truck 18 days @,$86.89/day 1.564.02 Hand-held Radios 23 radio-%+ys @ $lO.‘ll/radio-day 246.33 Subtotal 1,810.35 1,810.35

SUPPORT COSTS: Accommodation and meals: 50.35 mandays @ %65/manday 3,273.OO Meals (traveling): 65.00 Aii Fare 293.58 Field Supplies: 469.09 Helicopter 11.7 hour@$8l0.00ihow 9,477.oo COPYhg 361.82 Maps and previous data 127.54 Communication 17.50 271.32 Subtotal 14,355x5 14,355.85

REPORT

TOTAL

Bl -

APPENDIX C

ROCK SAMPLE DESCRIPTIONS

MINERALS AND ALTERATION TYPES

AN ARSEN arsenates AS arsenopyrite BI biotite BO bornite CA calcite CB Fe-carbonate CL chlorite CP chalcopyrite EP epidote GA garnet GE goethite GL galena HE hematite HFLS hornfels LM liionite MC malachite MG magnetite MN Mn-oxides PO pyrrhotite PY pyrite SI silica SER sericite .,, QZ quartz SP sphalerite

INTENSITIES and DESCRIPTIONS

s strong m medium or moderate w weak tr trace fg fine-grained diss disseminated

GEOLOGIST’S CERTIFICATE

I, BRUNO J. RASPER, of 2190 Pinecrest Avenue, Coquitlam, in the Province of British Columbia DO HEREBY CERTIFY: . 1. THAT I was under contract to Blackhom Gold Mines Ltd. during the period of tbis report.

2. THAT I am a graduate of the University of Alberta with a Bachelor of Science degree in Geology.

3. THAT this report is based on fieldwork carried out under my direction in September 1997, government publications and _ assessment reports filed with the Province of British Columbia and unpublished literature provided to me by Mr. Louis Bemiolles. I have examined the property in the field.

4. That I have no interest direct or indirect, in the subject claims.

DATED at Vancouver, British Columbia, thi&day ofk1998.

/’ ,,” logist.