West LeBourdais Project Reconnaissance Geochemical and Geophysical Survey at the QR Claim Group Cariboo Mining Division NTS 093A/12 TRIM 093A072 52°42.6636’ North Latitude, 121°48.8358’ West Longitude Tenure on which work was conducted: 854573 Prepared for Barkerville Gold Mines Ltd (owner/operator) 15th Floor-675 West Hastings Street Vancouver, British Columbia V6B 1N2 By Angelique Justason Tenorex GeoServices 336 Front Street Quesnel, British Columbia V2J 2K3 December 2013 Table of Contents Introduction........................................................................................................................................1 Property Location, Access and Physiography..........................................................................2 Regional Geology............................................................................................................................... 6 Property Geology............................................................................................................................... 7 Exploration History.......................................................................................................................... 8 2011 Exploration ............................................................................................................................ 11 Self Potential Geophysics Overview and Procedures .............................................................. 13 Conclusions and Recommendations ........................................................................................ 19 References.........................................................................................................................................21 Statement of Costs......................................................................................................................... 22 Appendix 1: Soil Station Descriptions Appendix 2: Assay Certificates Appendix 3: Copper, Gold and Platinum in Soils: plan maps Appendix 4: Raw and Corrected Self Potential Geophysical Data, Profiles and Map Appendix 5: Statement of Qualifications Introduction Barkerville Gold Mines Ltd acquired the Quesnel River (QR) Mine, mill and adjacent mineral claims in February 2010 from Cross Lake Minerals. In March 2010 Barkerville Gold Mines (BGM) began mining the West Zone and poured their first gold dore bar from the mine in September 2010. In the same year the Company continued strategic acquisitions of mineral claims with plans to expand exploration activities throughout the QR Claim Group. This report outlines reconnaissance work conducted at two of Barkerville Gold’s noncontiguous mineral claims located immediately north of their mineral lease. The purpose of the work was to determine if a correlation could be made between anomalous soils and self potential geophysical survey data, to compare these results with older adjacent geochemical and geophysical surveys and to determine if the bedrock in roadcuts on trend to the northwest show any obvious mineralization. Three line kilometers of grid was laid out g e n e r a ll y on the north side of the ‘M’ Forest Service Road on mineral tenure 854573. Three lines, each 1km each were flagged, but only Line 1 was fully prepared for soil and geophysical surveying. One rock sample and 34 soil samples were sent to ALS Mineral Laboratory for analysis. All results of the reconnaissance work is outlined hereafter. - 1 - Property Location, Access and Physiography The QR mineral claim group is, during the period of work, located in two non-contiguous land packages immediately adjacent mineral lease 320752 which is located approximately 60km south east of Quesnel, BC. The portion of the claim group related to this report is located to the immediate north of the northwest corner of the lease. The work area is located adjacent the ‘M’ Forest Service Road at 580126E, 5840789N (UTM Nad83) on tenure 854573. Access is made by travelling approximately 22.5 km from Frank’s Supermarket along the Quesnel- Hydraulic Road to a junction which t u r n s e a s t and crosses the Quesnel River over a one lane bridge named the Gravelle Ferry Bridge. Beyond this bridge the road becomes the 2700FSR before meeting with the 500FSR at ‘2707’ and ‘527’. To access the work site one must travel to ‘536’ and turn left onto the 4900FSR. Approximately 12 kilometers along the 4900FSR turn south onto the ‘49M’ FSR and travel to the work site. In addition to the regular access used as above, access can also be gained by travelling from the start of the 500FSR at Highway 26, bypassing the 2700FSR and Gravelle Ferry Bridge. Furthermore, access can be obtained direct from the QR minesite and camp. A backroad accesses the 49M FSR only 600meters east of Line 1. Communications with the Mine Manager must be made prior to using the roads on the Mining Lease for safety reasons and because there are locked gates and access is restricted. The reconnaissance work conducted on mineral tenure 854573 is referred to as the West LeBourdais ‘recon’ project to separate it from other 2011 exploration activities which were conducted to the west on another non-contiguous portion of the QR claim group. The project area at West Lebourdais is located in a forested 2 kilometers west of LeBourdais Lake. Much blowdown was encountered while establishing the three grid lines but, other than that, the gentle to moderate undulating terrain made for easy walking amongst the well spaced fir and spruce. Airborne geophysical surveys and regional inspections across the property a p p e a r t o correlate to elongate exposures, subcroppings or - 2 - rare road-cuts of amygdaloidal basalt and other volcanics. Numerous attempts were made to get into the property earlier in the season, but snow made access difficult as shaded areas of the road did not melt until well into June. Attempts to access the work area were not applied towards assessment. Access and other concurrent works allowed Tenorex to work on the West LeBourdais project on June 21, 22, 29 and 30, 2011 and September 11- 13 of the same year. - 3 - IINSET:: BGM Pllacer Tenures 5 km Wells Inset Scale CARIBOO GOLD PROJECT CLAIM GROUP Bonanza Ledge Barkerville Project Area Wells Quesnel 2700 FSR QR CLAIM GROUP & MINING LEASE BARKERVILLE GOLD MINES LTD. West LeBourdais Project Area PROPERTY LOCATION MAP Gold Belts and MinFiles BGM owned Mineral Tenures QR Mine and Mill BGM owned Placer Tenures (Inset) Hardrock or Industrial Mineral MinFile and Historical Lode Workings Placer MinFile SCALE o o 0 5 10 15 20 North Mt Polley Mine Drafted by Tenorex GeoServices March 2012 KILO M ETER S Mineral Tenures 854573 and 855732 2011 work area (white) 14 73 AJ11-01 to 03 1000mN other 2011 work outlined in 1996 work area (pink dotted lines) 0mN ARIS 33149 Line 3 Line 2 Line 1 Regional Geology The QR claim group lies within the Quesnel Gold Belt or Quesnel Trough of the Quesnellia (Quesnel) Terrane, a northwesterly trending island arc basin assemblage. The Quesnel Terrane is comprised of three main assemblages: the Nicola Group, the Quesnel River Group and the Takla Group. The Volcanic and sedimentary units of the Takla Group are cut by intrusive bodies of late Triassic to early Jurassic age, providing favourable conditions to host ore deposits such as those found at Mt Milligan, Gibraltar, Mt Polly and QR. Simplified Geology map of BC as represented in EMPR Bulletin 101 - 6 - Property Geology The QR Claim Group lies within the Quesnel Terrain and is covered in persistent, heavy glacial drift. Sporadic outcrops have been mapped in the past along some resistant ridges, creeks and road cuts. Amygdaloidal basalt, augite-hornblende rich andesite to basalt, brecciated flow basalt and lesser tuffs were observed upon initial reconnaissance of the property to determine accessibility before the work season started. The rock descriptions appear to place them within the Late Triassic to Early Jurassic volcanic assemblage as regionally noted. Outcrops are exposed throughout the entire QR property and further detailed mapping in areas of new road access and cut blocks could be advantageous and may provide additional key geological information . The QR deposit is defined as a propylite gold skarn. The deposit was formed in the contact metamorphic aureole around the dioritic QR stock where mineralization and alteration occurs along the margin between the lower calcareous basalt and upper interbedded metasediments. An exception to this is the Northwest Zone where the mineralization occurs between several prominent dykes and the same upper metasediments. In general, pyrite is an indication of gold grade (Fier et al, 2009). No outcrops were noted in the immediate vicinity of the West LeBourdais grid itself but several linear exposures were noted about 1km to the northwest of the grid and visited. - 7 - Exploration History The Quesnel Gold Belt has long been an important region for exploration with recorded activities stemming back to the Cariboo Gold Rush of the 1860’s. Placer deposits are common throughout the belt with the Bullion Pit probably being the most popular. The source of the placer gold +/-platinum is likely local, at least in part, and hardrock mineral exploration in the mid to late 1900’s have helped to define and develop numerous hardrock gold mines throughout the area. The following sheet is a summary of exploration activities that have been filed on or adjacent to Barkerville Gold Mines Ltd QR Claim Group between 1976 and 2007. Some work has been conducted since, and local to regional