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012A/1514

2012

COMPILATION REPORT

For the

STAGHORN GOLD PROPERTY

LICENSE 017712M

NTS 02A/04 and 12A/05

METALS CREEK RESOURCES LTD

Submitted by Wayne Reid Jeff Myllyaho Metals Creek Resources 93 Edinburgh Ave Gander, NL A1V 1C

March, 2012

Table of Contents 1 Introduction............................................................................................................... …1 2 Land Title/Tenure ........................................................................................................ .1 3 Property Location and Access ...................................................................................... 1 4 Geology......................................................................................................................... 4

Regional Geology Property Geology

License 017712M Geology 5 Summary of Historical Industry Work in Area. ........................................................... 5 6 Work History of License 017712M.............................................................................. 6 7 MEK Personnel............................................................................................................. 7 8 References..................................................................................................................... 8

List of Figures Figure 1: Regional Location Map....................................................................................... 2 Figure 2: Claim Map........................................................................................................... 3 Figure 3: Geology of the Staghorn Property....................................................................... 5

List of Tables

Table 1: Victoria Lake Property Exploration License ........................................................ 1 Table 2: Previous exploration work in Staghorn area......................................................... 5 Appendix 1 Statement of Costs and Distribution Appendix 2 Attached Maps and Figures

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1. INTRODUCTION This compilation report describes the historic geologic work performed on License 017712M located in the Victoria Lake area on the island of Newfoundland. The license is part of a larger package of claims with a central license optioned from Ed Northcott and Gilbert Lushman. The work described within this report includes geological mapping and prospecting, as well as soil and stream sediment sampling.

2. LAND TENURE/TITLE License 017712M consists of 6 claim units and is part of the larger Staghorn Property which is 100% owned by Metals Creek Resources. Table 1: Victoria Lake Exploration License

Property License Number

Owner Issuance Date

No. Of Claims

NTS Map Sheets

Staghorn 017712M Metals Creek Resources May 27/2010 6 12A/04 and 12A/05

TOTAL 1 License 6 units

3. PROPERTY LOCATION AND ACCESS License 017712M is approximately 12.8 km northeast of the Burgeo Highway, southwestern Newfoundland. Access to this claim is via a well established forestry road which requires the use of an ATV due to the rugged nature of the road. Pick-up truck may be used to gain access but is not recommended. Approximate UTM (Nad 27) coordinates for license 017712M are 454,700 E and 5,344,300 N. The main Staghorn Gold showing to the south is located 60 km southwest of Stephenville, in western Newfoundland, and 5 km west of Peter Strides camp area on the Burgeo Highway. The showing is located south of Woods Lake, at approximately UTM (NAD 27) grid coordinates 441,500 East and 5,334,000 North, on NTS 12A/4. Access is via a system of forest access roads leading west from the Burgeo Highway. Since optioning the property, quad and snow machine has been used for accessing the claims as one bridge is suspect. Drill access by Candente Resources in 2006, as well as in 2009 and 2010 by Metals Creek, forded this shallow brook. Accommodation for these programs was either Gilletts Motel in Burgeo, NL, or a rented camp at Peter Strides, approximately 5 km from the Main Showing, which is available year round.

Metals Creek Resources, Gander, NL

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Figure 1: Regional Location Map


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Figure 2: Claim Map

4. GEOLOGY

Regional Geology The island of Newfoundland represents a cross-section through the northern part of the Appalachian Orogen. Four major tectono-stratigraphic zones have been identified, and termed, from west to east, the Humber, Dunnage, Gander and Avalon zones (Williams, 1978a, b). These zones record the opening, closing and destruction of the Iapetus Ocean in the early- to mid-Paleozoic (Williams et al., 1988). The Staghorn property is within the Dunnage Zone which generally consists of ophiolite and volcanic/sedimentary rocks of island arc affinity. The Dunnage Zone is characterized by ophiolites and by thick marine/epiclastic sequences that record a series of Cambrian to Middle Ordovician island arcs and back arc basins. The Dunnage Zone has been referred to as “vestiges of Iapetus” (Williams, 1979) a conceptual term implying its fragmental and incomplete nature. Further sub-divisions of the Dunnage zone were emplaced based on contrasts in pre-middle Silurian stratigraphy, structure, plutonism, metallogenic characteristics, and geophysical signatures.


4 The following is taken from Van Egmond’s 2004 assessment report: The Tilt Cove/Betts Cove Property is located in the southwestern region of the Dunnage Zone and can be geologically correlated with the western boundary of the Notre Dame sub-zone. This zone is represented by Cambrian to mid-Ordivician submarine volcanic and ophiolites unconformably overlain by subaerial Silurian overlap sequences.

Staghorn Property Geology The property covers a 32 km strike length of the Cape Ray Fault extension. Regionally, this fault has proven to be highly prospective for gold with upwards to 400,000 oz defined in a number of deposits 60 km to the southwest. Within the claims, the fault zone is characterized as a schist zone of variable width, interlayered with a conglomerate unit and a mafic volcanic, bounded to the northwest by ultramafic and mafic rocks of the King George IV Ophiolite complex. Immediately south of Woods Lake this fault hosted stratigraphy outlines a two km long flexure in the structure and hosts the Staghorn porphyry mineralization. A mag low defined over this mineralization probably represents a buried intrusive and this pattern is repeated along the fault structure. License 017712M Geology The geology covering license 017712M consist of rocks of the Cambro-Ordivician Tulks Volcanic Belt and the Ordovician Annieopsquotch Complex. Two main units of the Tulks Volcanic Belt, which are a unit of predominantly intermediate to felsic pyroclastics (with local intercalated graphitic argillite and mafic volcanics) lying adjacent to the shoreline of Victoria Lake, and a belt of mafic to intermediate volcanics (with local graphitic argillite) to the northwest (Jacobs, 2007).


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Figure 3: Geology of the Staghorn Property

5. SUMMARY OF HISTORICAL INDUSTRY WORK IN THE STAGHORN AREA

BP Selco carried out a regional gold exploration program in 1987-88. This program was a continuation of its success at the Hope Brook Gold Mine. A number of geochem anomalies were trenched in the Woods Lake area with gold values up to 0.348opt Au. Local prospectors Edwin Northcott and Gilbert Lushman carried out a systematic gold panning survey and prospecting program beginning in 1998 and over a couple of years outlined mineralization on the south shore of Wood Lake where significant amounts of visible gold was found while panning the shore line overburden material. Subsequent trenching uncovered the Main Zone. Candente Resource Corp. optioned the property and carried out exploration over the next few years, returning the property to the vendors after its last work in 2006. This work included establishing a 200 meter grid surveyed with IP and Mag and drilling approx 12 holes, three of which were targeted on the Main Showing. Table 2. Previous Work

Year Company Description

1952-60 Asarco

Base metal exploration – geology, geophysics

1987-88 BP-Selco Gold – geochemistry, trenching. Discovered and trenched

the Sure Shot mineralization


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1998-02 Northcott/Lushman.

Gold panning, prospecting, trenching. Discovered the

Woods Lake Showing

2003-06 Candente Resource Corp

Geology, prospecting, geophysics and diamond drilling of

12 holes following up on gold and base metal targets

2008-Present Metals Creek Resources

Geology, prospecting, line-cutting, soil geochemistry, ground and airborne magnetic surveying, diamond

drilling of 29 holes over various locations

6. WORK HISTORY OF LICENSE 017712M The area at the southwestern tip of Victoria Lake containing License 017712M has been the focus of base metal and gold exploration intermittently since early 1993. During the 1993 field season, Noranda Exploration purchased the mineral rights to approximately 230,000 Ha of concession lands in the Red Indian Lake area of central Newfounland. The land package was divided up into 17 project areas including a smaller area containing what is now Metals Creek Resources’ License 017712M as well as licenses to the south along the Victoria River (also within Metals Creek’s other current licenses). Limited prospecting and geological mapping was perfomed which was dominantly carried out over the Victoria Lake Group, felsic and mafic volcanic flows, pyroclastics and sedimentary rocks (Arseneau, et al. 1993). This coarse regional mapping and sampling was executed due to the potential of finding base metal mineralization. Results did not permit the uncovering of any new mineral occurrences and did not warrant any follow-up. Due to the regional nature of the exploration program and the small area covered with license 017712M, areas of interest were not uncovered on the Metals Creek land package by the Noranda work. In 2003, Buchan’s River Ltd filed a “First Year Report on Exploration on the Victoria Lake Property, Central Newfoundland”. This report summarized the results of compilation, prospecting and reconnaissance geochemical sampling conducted on the property in 2002 and 2003. The Buchan’s River Property consisted of 125 claims located near and on the shores of Victoria Lake. The Buchan’s River licenses completely contained what is now License 017712M as well as the Victoria Lake shoreline to the northeast and along the Victoria River shores to the southwest. This work was follow-up from historically produced, highly encouraging samples from License 017712M and the proximal area by BP-Selco in the 1980’s. These historic values included a 330 ppb gold-in-soil anomaly on the southern boundary of License 017712M. Buchan’s River Ltd completed a single line of soil samples over the area of BP’s 330 ppb Au value. This sampling returned assays of 67, 49 and 42 ppb. Detailed prospecting was conducted along the shorelines of Victoria Lake but due to high water levels at the time, previous showings around the area could not be found or reproduced. Grab samples were taken from quartz veins on License 017712M; two of which gave assay values of 1.5 g/t Au and 2.8 g/t Au.


7 In July 2007, a two man crew performed prospecting and soil sampling on 52 claim units centered on what is now Metals Creek’s 017712M license. A total of 40 soil samples were collected with no exceptionally high base metal assay values obtained. Small clusters of anomalous Zn (36-92ppm) and Cu (11-41ppm) were the only elevated base metal anomalies. These clusters of Zn and Cu, have coincident anomalous gold in grab samples (225ppb Au). No accompanying maps were located with this report so an exact location is difficult to determine for these grab samples. This claim block covers and is in very close relation to what is now License 017712M and it can be assumed that these anomalous values are close by. In 2009, Metals Creek Resources contracted Aeroquest to fly a 2057km survey over the entire Staghorn Property. This magnetic survey covered the area within License 017712M. The survey shows a broad magnetic low 2.5km wide, which is oriented northeast-southwest in the vicinity of License 017712M. In 2010, Metals Creek Resources prospected and gathered 19 grab samples for Au analysis on License 017712M. Most samples were taken from cobble to boulder sized, float material of quartz veins. These quartz veins cross-cut a variety of rock types including mafic volcanics, gabbro and altered sediments. To the north, chlorite and sericite altered schists were located along the edges of small brooks. These outcrops were never any more than a few meters in size and did not return any significant gold values. The majority of sampled rock from this license assayed 5ppb Au with 6 of the 19 grab samples having anomalous grades at 79, 292, 42, 63, 15 and 137 ppb Au.

7. MEK PERSONNEL NAME TIME DESCRIPTION LOCATIONAlexander Stares (1 Man Day) Research Gander, NL Wayne Reid (1 Man Day) Management/Report St. Phillips, NL Jeff Myllyaho (5 Man Day) Research/Report Thunder Bay, ON


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8. REFERENCES

Arseneau, V. et al 1993 Report of Work by Noranda Exploration Company Limited on AND Charter, RL #227, RL #228, RL #229, RL# 231, RL #232, RL # 234, RL# 235, RL #247, Vol 1 Fol 110, Vol2 Fol 25, SP Vol2 Fol 307, Vol1 Fol43, Vol 1 Fol 61, Vol1 Fol 62, Vol2 Fol 29 Hepp, M.A. and Dearin, C. 1986. First year assessment report on geological and geochemical exploration for the Sops Arm project for license 2677 on claim blocks 4269 and 4275 in the Gull Lake Area, Newfoundland. Varna Resources Inc. and South Coast Resources Inc., Unpublished report, 48 pages (GSB# 12H/10/941).

Hibbard, J.P. 1983: Geology of the Baie Verte Peninsula, Newfoundland. Newfoundland Department of Mines and Energy, Memoir 2,279 pages. Jacobs, W.J. 2007 Assessment Report on Prospecting & Soil Sampling on the Victoria Lake Property (Lics. 13107 & 13109M) Central Newfoundland, NTS 12/4 & 5 Lassila, P. 1982. Report on a 1981 Geophysical, Geological, Geochemical, and Diamond Drilling Program on the A.N.D. Charter and Reid Lots 227 and 229. Victoria Lake Project, Newfoundland. Hudson’s Bay Oil and Gas Company Limited., pages 10-17. Reid, N.W. April 2009, Assessment Report on the Staghorn Gold Property, License 014441M et. al for Metals Creek Resources Reid, N.W. February 2011, Assessment Report Staghorn Gold Property, License 014441M et. al. for Metals Creek Resources Saunders, P. July 2003, First Year Report on Exploration on the Victoria Lake Property, Central Newfoundland. Licences 8517M, 8819M, 8890M and 9617M for Buchans River Ltd Tuach, J. 1987. Mineralized environments, metallogenesis, and the Doucers Valley Fault Complex, western White Bay: A philosophy fro gold exploration in Newfoundland. In Current Research, Mineral Development Division, Department of Mines and Energy, Government of Newfoundland and Labrador, Report 87-01, pages 129-144 (GSB# NFLD/1667).

Van Egmond, R.


9 Sept 2004, 2004/2005 Assessment Report on the Staghorn Property, License 10608 M and 6333M for Candente Resource Corp Van Egmond, R. Dec 2005, 2003/2004 Assessment Report on the Staghorn Property, License 6333M et al for Candente Resource Corp Williams, H., 1978a. Tectonic lithofacies map of the Appalachian Orogen. Memorial University of Newfoundland Map No. 1, Scale 1:1,000,000.

Williams, H., 1978b. Geological development of the northern Appalachians: its bearing on the evolution of the British Isles. In Crustal Evolution in Northwestern Britain and Adjacent Regions. Edited By D.R. Bowes and B.E. Leake, Geological Journal Special Issue Number 10, pages 1-22.

Williams,H., 1979: Appalachian Orogen in Canada. Canadian Journal of Earth Sciences, Tuzo Wilson Volume, vol. 16, p. 792-807 Williams, H., Colman-Sadd, S.P., and Swinden, H.S., 1988: Tectonic-stratigraphic subdivisions of central Newfoundland. In Current Research,

Part B, Geological Survey of Canada, Paper 88-1B, pages 91-98.


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Appendix 1: Statement of Costs Research, Compilation 3 man days @ $400/day $1,200 Report Writing 3 man days @ $400/day $1,200 1 man day @ $500/day $500 SUBTOTAL $2,900 15% Overhead and Admin $435 TOTAL $3,335 DISTRIBUTION:

License Number

Assess year

Issuance Date

No. of Claims Expenditures

017712M 2 May 27/2010 6 $3,335

Total $3,335


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Appendix 2: Attached Maps and Figures


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