MAR 20170006: FOX CREEK A report on Lithium exploration on the Fox Creek property near Fox Creek. 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Alberta Mineral Assessment Reporting System PARTB NTS 83K ASSESSMENT REPORT FOR 2016 EXPLORATION ON THE FOX CREEK LITHIUM-BRINE PROJECT, WEST-CENTRAL ALBERTA ALBERTA METALLIC & INDUSTRIAL MINERAL PERMIT 9308110428 Prepared For: Empire Rock Minerals Inc. Suite 702, 889 West Pender Street Vancouver, BC , V6C 3B2 Tel: 604.683.3288 Prepared by: APEX Geoscience Ltd. 110, 8429-24 Street Edmonton, AB, T6P 1 L3 Tel: 780.467-3532 D. Roy Eccles, M.Sc., P.Geol. Michael B. Dufresne, M.Sc. , P.Geol. 21 January 2017 Edmonton, Alberta, Canada • ·.~·... ,. .. ·· ..~ .~."'."\ 2016 Assessment Report for Empire Rock Minerals lnc.'s Fox Creek Lithium Brine Property Contents 1 Summary .... .. ........ .......... ...... .. ...... ..... .. ....... ........... ..... ...... ... ............... ....... .. ........... ... 1 2 Introduction ..... .... .. ... ... ...... .......... ... ......... ............ .. .. .. ...... ......... .... .... .. ... ... ... .... ........ .. 4 3 Property Description and Location .... ..... ...... .... .......... ... ..... .. ... .. ... .. .... .... .. .... ... .... .. .. ... 6 4 Accessibility .... ............... .. .............. ... .... ...... .. ...... ........ .... ... .... .. ................ ........... ....... 7 5 Historical Exploration ............. ..... .. ....... .. ..... ..... ....... .... .. ............... .. .. .......... ..... ........... 7 5.1 Government Lithium-Brine Studies ... ...... .... ....... ... ... .............. .... .. ... ....... .. ........... 7 5.2 Historical Industry Lithium-Brine Exploration ................ ......... ..... ...... ....... ... ..... 11 6 Geological Setting and Mineralization .... ... .......... ....... .. ... .. .............. ..... ... .... .... .. .... ... 14 6.1 Precambrian Basement ..... .. ..... .. .......... ..... .. ... ............... ....... ... .. ....... ... ....... ... ... 14 6.2 Phanerozoic Strata ......... ..... ....... ... .. .. ... .... .... ....... ...... ... .... ....... ......................... 14 6.3 Quaternary Geology .... .... ......... ..... ....... ... ....... .... ........... ..... ..... ..... ... .... .......... ... 19 6.4 Structural History ........ ..... ... ... .. ....... ... .. .... ............ .... ....... ....... .... .......... ...... ...... 19 6.5 Beaverhill Lake Aquifer System ........ .. ........ .... ..... ...... ............... .... .. ... ........ ....... 20 7 2014-2016 Exploration ......... ... ...... ..... ... ..... .... ........ ..... .............. .. ......... .. .. ..... ... ........ 22 7 .1 Work Performed ..... .... ........ ........................ .......... .. .. .. .... ........................... ....... 22 7.1.1 Data Compilation, Interpretation and Target Delineation ... ................... .. 22 7.1.2 Geochemical Brine Sampling Surveys ....... ................................. ............ 23 7 .1 .3 Assaying .. ............... ............. ...... .. ................. ..................... ........... .......... 25 7.2 Results ... .... .... ...... .. .. .................. ...... .... ............ ...... .... ... ..... .. ..... ... .. .......... ... ..... 26 7.2.1 Data Compilation, Interpretation and Target Delineation .... .. .. .. ....... ..... .. 26 7.2.2 Geochemical Surveys and Assay Results ................. ... ....... ................ ... 37 8 Exploration Expenditures .... .... ............ .. ...... .. ... ........ .......... ....... ... ... ... ... ..... .. .... .... .... 48 9 Conclusions ....... ..... ............ ................. ... .... ... ..... ... ... .... .. .... .. ....... .. ........... ........ ....... 49 10 Recommendations .............. .... .... ...... ... ..... .......... .... .... ...................... ..... .......... ........ 51 11 References ... .... .... .............. .. ... ....... ..... ........ ... ..... ........... .. ..... ...... ..... ... .. ...... ...... .. .... 52 12 Certificate of Author .... ....... ... .... ............ ..... ............... .... ..... ..... ..................... .. .... ...... 57 Appendix 1. Mineral Agreement Detail Report ... ... ...... ..... ... ......... .... ...... .. .... .. ............. .. 58 Appendix 2. Laboratory Certificates .... ........... .. ....... .. .................... ......... .. ... ... .. ..... ........ 59 Tables Table 1. Representative chemical compositions in the Beaver Hill Lake (Swan Hills Formation) and Woodbend (Leduc Formation) groups as reported in Government of Alberta studies ............ .......... .. .... ..... ......... ...... ... .... ... .. ... ........ .. 9 Table 2. Government-compiled lithium-brine data specific to the Fox Creek Property (values with > 75 mg/L Li) ........... ... .. ....... ... .......... .. ...................... .............. ... .. .. 9 Table 3. Selected results (with > 75 mg/L Li) of the Channel Resources Inc. 2009-2010 brine sampling study ..... ... ... .... .. ................. .............. ... ... .. ................. ............. 13 Table 4. Recovery of mineral products from concentrated brine collected by Channel Resources ......... .............. ... .... .. .................... .. ... ... .. ... ..... .. ............................ .. 14 Table 5. Regional stratigraphy/hydrostratigraphy in the vicinity of Empire Rock's Fox Creek Property .... ..... ... ...................... ... .. .... ... .... .................... .. .. ............... ... ... 15 Table 6. Well sample locations and descriptions .. ...... ..... ......... ... .... .. .... ..... ......... .. ........ 38 Table 7. Individual sample descriptions ...... .... .......... ...... .. .... ........... ..... .. .... ...... .... ......... 39 21 January 2017 ii 2016 Assessment Report for Empire Rock Minerals lnc.'s Fox Creek Lithium Brine Property Table 8. Summary of analytical results including duplicate samples and control blank samples ... ....... .............. .. .. .... ...... .. ..... .. ......... ...... .. .... ... ... ......... .......... .. ..... ...... 40 Table 9. Summary of selected elements from Empire Rock's 2016 formation water sampling program at their Fox Creek Property .............................. .... .... .. ....... 41 Table 10. Fox Creek Lithium-Brine Property expenditure statement (by activity) .......... 48 Figures Figure 1. Empire Rock's Fox Creek Project location and Metallic and Industrial Minerals permits ......... ....................... .................. ............... ....... ..... ..... ..... .. .... ... .. ..... ..... 5 Figure 2. Distribution of lithium in Alberta formation waters (from Eccles and Jean, 2010) . .... ... ..... .... .... ................... ........ ... .......... .... .. ....... ... ... ............. ..... ............ 10 Figure 3. Results of historical Government and Industry lithium in formation water sampling ..... ................................ .. ... .. ......... .......... .. ... .. ..