Emory Creek Nickel Project Claim ID Numbers: 845260, 848432 New Westminster Mining Division NTS 092H05 Project Area Location: UTM NAD 83: Zone 10, 605000 East, 5481000 North Registered Owner: Doug Warkentin Operator: Crucible Resources Ltd. Upper Emory Area - Exploration and Geochemical Sampling Report July 19, 2012 Prepared By: Doug Warkentin, P.Eng Page 2 TABLE OF CONTENTS Introduction ……..………….3 Location and Access ……….………..3 Tenure Information ……….………..3 Regional Geology ….……..………6 Local Geology …………..…….6 Property History ……………..….8 Summary of Work …………..….…9 Work Program …………..……10 Sampling and Data Collection ……….……....10 Interpretation of Results ……….……….11 References …………….….11 Author’s Qualifications …………….….13 Statement of Costs …………….….14 FIGURES 1 Emory Creek Nickel Project Location Map ……..………….4 2 Project Tenure Outline ………..……….5 3 Regional Geology ………..……….7 4 Airborne Magnetic Images ………………...8 TABLES 1 Emory Creek Nickel Project Mineral Tenures ……..………….5 2 Rock Sample Analytical Results ……………..…10 Appendix 1 – Sample Location Maps Appendix 2 – Assay Reports CRUCIBLE RESOURCES LIMITED Page 3 Introduction Location and Access The Emory Creek property lies in the Southern Lillooet Ranges of the Coast Mountains, approximately 12 km northwest of Hope, BC and 10 km west of the community of Dogwood Valley on the Trans Canada Highway. The general project location is shown in Figure 1. The south eastern portion of the property has limited four wheel drive or ATV access along BC Hydro power line access roads and old logging roads in the upper Emory Creek valley. While some of these roads are in good condition, the original access along the lower part of Emory Creek from the Trans Canada Highway has been cut off by landslides, requiring access from Stulkawhits Creek to the south along a north-south BC Hydro access corridor that connects to the old Emory Creek Road from BC Nickel Mine Road. This access is suitable for high clearance four wheel drive or ATV only and passes through an area of extensive interconnecting ATV trails. The Emory Creek road and spurs provide access to most areas of the property on the south side of Emory Creek, although some spurs in the upper part of the valley are fairly heavily overgrown. Lower in the valley an intact bridge crosses to the north side of the Creek, but the condition of the roads that access the north side of creek in the property area is unknown. Access to the north western part of the property is from Harrison Lake. From the town of Harrison Hot Springs the East Harrison FSR provides two wheel drive access north along the lake to Cogburn Creek. The Cogburn Creek FSR is a maintained two wheel drive forestry road the follows the north side of Cogburn Creek to the east-northeast. From this road a secondary forestry road crosses to the south side of the creek and back-tracks to Settler Creek. This road then follows Settler Creek to the southeast nearly to its headwaters, at the north boundary of teh Emory Creek property. The current condition of this road is unknown, but active logging has occurred in the upper part of this valley in recent years. Between these two valleys the property includes about 7 kilometres of very rugged mountainous terrain which would only be accessible by helicopter and requiring mountaineering-type traverses. Tenure Information The Emory Creek Nickel Project currently consists of nine Mineral Titles Online claims with a total area of 1972 hectares. In the southeast part of the property small areas of the MTO claims are underlain by pre-existing legacy claims and active crown grants related to the historical Giant Mascot Nickel Mine which borders the property to the east. The claims are all owned by the author, and Crucible Resources Ltd. has an option to acquire 100% ownership of these claims. Claim details are shown in Table 1. Expiry dates shown in this table reflect the application the work described in this report. Figure 2 outlines the tenures of the Emory Creek Project. CRUCIBLE RESOURCES LIMITED Page 4 EmoryEmory CreekCreek MapMapMap Center:Center:Center: 54.4781N54.4781N54.4781N 124.7082W124.7082W124.7082W Figure 1 – Emory Creek Project Location Map CRUCIBLE RESOURCES LIMITED Page 5 Table 1: Emory Creek Project Mineral Tenures Tenure Number Claim Name Owner Issue Date Good To Date Area (ha) 845260 UPPER EMORY 145582 (100%) 2011/feb/02 2012/aug/26 503.8 845891 SOE S FR 145582 (100%) 2011/feb/09 2012/oct/02 21.0 848432 SOE N 145582 (100%) 2011/mar/09 2012/aug/26 188.9 851631 EMORY CREEK SW 145582 (100%) 2011/apr/13 2012/aug/26 230.9 851635 SETTLER CREEK 145582 (100%) 2011/apr/13 2012/aug/26 335.5 926504 SETTLER SE 145582 (100%) 2011/oct/28 2012/oct/28 83.9 926505 EMORY CREEK NW 145582 (100%) 2011/oct/28 2012/oct/28 146.9 1005562 EMORY-BAIRD 145582 (100%) 2012/jun/29 2013/jun/29 146.9 1005862 SETTLER E 145582 (100%) 2012/jun/29 2013/jun/29 314.6 Total Area 1972.5 851635851635851635 092H.053 100586210058621005862 OX 926504926504926504 EMORY ZONE 100556210055621005562 COGBURN 926505926505926505 PRIDE OF EMORY 848432848432848432 092H.043 845260845260845260 092H.042 851631851631851631 STAR OF EMORY 3 845891845891845891 ZOFKA RIDGE Map Center: 49.4936N 121.5953W MapMapMap Center:Center:Center: 49.4936N49.4936N49.4936N 121.5953W121.5953W121.5953W BIG NIC Figure 2 – Project Tenure Outline CRUCIBLE RESOURCES LIMITED Page 6 Regional Geology The Emory Creek Nickel Project lies near what is interpreted as the eastern margin of the Wrangellia Terrane, near its contact with the Bridge River Terrane. The area is also near the eastern margins of the Coast Plutonic Complex. The property lies entirely to the west of the Fraser River fault system. In this area large bodies of metamorphic rocks are intruded by plutonic quartz diorites and granodiorites. Trending in a northwest – southeast direction is a broad assemblage of older rocks including mafic to ultramafic intrusive, schists and diorites Figure 3). These rocks, and particularly the mafic units are sometimes referred to as the Hope Nickel Belt. The Hope Nickel Belt is host to both massive and disseminated nickel or copper-nickel, mineralization associated with ultramafic rocks. Known nickel occurrences include the Giant Mascot Mine, which historically was the largest nickel producer in BC, along with less developed prospects such as Star of Emory, Cogburn, Jason and Big Nic. The ultramafic rocks can include large bodies of peridotite, serpentinite and other ultramafic rocks carrying high levels of magnesium, such as the Emory Zone in the southwest part of the belt. In the southeast the belt is more altered and affected by the large scale quartz diorite intrusions of the Spuzzum Pluton. In the areas mined previously the ultramafic rocks for a 2.5 by 1.5 km body between metamorphic rocks and intrusive. The body includes areas of gabbro and hornblendite along with smaller sections of peridotite and dunite that hosted numerous ore bodies of both massive and semi-disseminated sulphide mineralization. Sulphide mineralization consisted mainly of chalcopyrite and pentlandite with pyrrhotite. In addition to the ultramafic bodies, as noted, in the east much of the area is underlain by intrusive rocks, primarily from the quartz diorite Spuzzum Pluton. There are also some more recent smaller granodiorite intrusive to the north and in the central part of the mafic belt. To the west lie extensive areas underlain by Slollicum Schist, and the older Cogburn Schists occup a Central position in the mafic belt. To the east of the Cogburn Schist, intrusive rocks grade from diorite to Gabbro, with the ultramafic rocks occurring on both sides of the mafic belt. Local Geology The Emory Creek Property extends from the western margins of the Giant Mascot site to the northwest along the western margin of the Hope Nickel Belt, covering known and projected zones of prospective ultramafic rocks along with adjacent intrusives and schists. The upper Emory Creek valley area, including large parts of the Giant Mascot site, is mapped as quartz diorite. This area also includes smaller bodies of mafic and ultramafic rocks, some of which are known host copper-nickel mineralization. Over the mountainous section of the property extending northwest from Emory Creek, elongate bodies of ultramafic are mapped along with diorite and gabbro and smaller areas of metamorphic rocks and schists. Airborne magnetic data is a good indicator for ultramafic rocks in this area and available data indicate an even wider extent of this type of rock than that shown in regional mapping (Figure 4). CRUCIBLE RESOURCES LIMITED Page 7 KTmm PzMzum PrPzY OX OlMigd PzMzum EMORY ZONE MKqd COGBURN PzMzCS KTmm PzMzum Emory Creek Project Area PRIDE OF EMORY KTSl STAR OF EMORY 3 KTmm MKqd ZOFKA RIDGE BIG NIC KTmm – Cretaceous to Tertiary – mid amphibolite/andalusite grade metamorphic rocks KTSl – Cretaceous to Tertiary Slollicum Schist – greenstone, greenschist metamorphic rocks MKqd – Mid-Cretaceous – quartz dioritic intrusive rocks OlMigd – Oligocene to Miocene – granodioritic intrusive rocks PrPzY – Proterozoic to Paleozoic Yellow Aster Complex – dioritic intrusive rocks PzMzCS – Paleozoic to Mesozoic Cogburn Schist – greenstone, greenschist metamorphic rocks PzMzum – Paleozoic to Mesozoic - ultramafic rocks Figure 3 – Regional Geology The main ultramafic body at the southeastern end of the property, which hosts the Giant Mascot Nickel mine is referred to as the Pacific Nickel Complex and is the most well defined portion of the Hoper Nickel belt. The rocks of the Pacific Nickel Complex form an irregular stock-like mass up to 3 kilometres across. The northeastern half of the stock consists of barren pyroxenites and peridotites with little hornblende, while the southwestern half of the stock is a highly variable, hornblende-rich assemblage of mineralized peridotites and pyroxenites that contains seventeen orebodies of various sizes associated with the mine.