42E13SE0877 63.5375 RICKABY 010

PRIMROSE GOLD RESOURCES INC.

EXPLORATION PROGRAM ON

THE WILKINSON LAKE PROPERTY

ELMHIRST AND RICKABY TOWNSHIPS

DISTRICT OP THUNDER BAY

ONTARIO

Wayne E. Ho l instead R. J. Meikle L. D. S. Winter

May 1989

INTRODUCTION

In December, 1988 Geocom Consulting Inc. conducted a magnetometer and VLF-EM survey on the Wilkinson Lake property of Primrose Gold Resources and in January, 1989 Exsics Exploration conducted an Induced Polarization survey 'on the property. The surveys were done to interpret the geology of the property and to select targets for a drill program to be conducted on the property.

PROPERTY DESCRIPTION AND LOCATION

The property overlies Wilkinson Lake on the Elmhirst-Rickaby township boundary in the District of Thunder Bay. It is located about 30 miles west of Geraldton and 20 miles northeast of Beardmore. Year-round access is available via the Kinghorn Road which leads north from Highway 11, about 3 miles east of the village of Jellicoe. The Kinghorn road cuts the southwest part of the claim group.

The property consists of 12 contiguous, unpatented mining claims numbered TB755509 to TB755520 inclusive and are 100% owned by Primrose Gold Resources

HISTORY

The claims were staked by Bill Karvinen in May 1985 after ground prospecting revealed some interesting exposures of sericitic and sulphidic alteration zones in altered felsic volcanics on the south shore of Wilkinson Lake. Old trenching in overburden probably dating back to the 1930's was evident but no previous assessment work was recorded on the ground

Base Metal exploration was active to the east in Rickaby Township and in the late Seventies the area was covered by airborne magnetic and electromagnetic surveys by Dome Exploration.

The area has been actively explored for gold since the l920's. There has been production from a few properties, however, at this time no mining is being carried out on this part of the Geraldton-Beardmore greenstone belt. Gold showings are common, with the Miron prospect located about 1500 feet to the northwest of the Wilkinson Lake claims showing the best potential. A bulk sample of 41 tons taken from the property in 1985 assayed 0.33 oz/ton gold.

LOCAL GEOLOGY

The bedrock on the claims consists predominantly of felsic fragmental volcanics in contact to the southeast with mafic volcanics. Near the western boundary of the group, the felsic volcanics are intruded by the east margin of the Elmhirst Lake granodiorite/quartz diorite stock. The contact zone consists of porphyritic hybrid rocks and is about 0.5 miles wide.

The volcanics trend northeast-southwest and dip steeply.

The claim group is almost entirely covered by glacial- fluvial sediments of a delta complex. The overburden ranges from a few feet to probably 60 feet. Outcrops are confined to a few along the shore of Wilkinson Lake.

LINE-CUTTING

A total of 20.4 kilometers of line were cut on the Wilkinson Lake property. The base line was cut in an east-west direction along the north boundary of claims 755517 to 755520. Cross lines were cut in a north-south direction at 100 meter intervals and stations were chained on the lines at 25 meter intervals.

THE MAGNETOMETER SURVEY

Total field magnetic measurements were made with a Scintrex MP-2 magnetometer at 25 meter intervals on the grid lines. Diurnal variation was determined by base station readings made along the base line about every hour. The MP-2 is accurate to +/-I gamma. The results of the survey are contoured on the accompanying map.

The magnetic map of the property may be divided into three areas each with a characteristic magnetic pattern. The southeast portion of the map is characterized by moderately strong, linear, northeast-southwest trending anomalies which parallel the strike of the volcanic stratigraphy. In the portion of the map, magnetic lows predominate and the pattern is irregular with more rounded anomalies. The western portion of the map is characterized by extreme magnetic highs and lows and irregular, rounded anomalies.

THE VLP-EM ELECTROMAGNETIC SURVEY

The in-phase and out of phase component of the local electromagnetic field generated by low frequency radio transmissions from Cutler, Maine were measured at 25 meter intervals using a Geonics VLP-EM.

A total of four anomalies were detected and are listed below;

ANOMALY FROM TOA L6E, 5N L9E, 6NB L2E, 1+50N L10E, 4NC L1W, 0+50S L5E, 0+50SD L2W, 3+50S L16E, 3+50N

None of the above listed anomalies appear to have any magnetic expression.

THE INDUCED POLARIZATION SURVEY

The results of the Induced Polarization survey may be found in Appendix A.

DIAMOND DRILLING

The results of the diamond drilling program may be found in Appendix B.

CONCLUSIONS AND RECOMMENDATIONS

The VLF-EM and Induced Polarization surveys outlined several anomalous areas that were checked by diamond drilling due to the lack of surface outcrop. The anomalies were explained by pyrite mineralization in sericitized tuffs.

Anomalous gold values were obtained in sericitized and pyritized tuffs in holes PG-89-01 and PG-89-02 located in the southwestern part of the property adjacent to the Elmhirst Lake stock. The best gold values ranged from 621 ppb gold across 3 feet in Hole PG-89-01 to 149 ppb gold over 2 feet in hole PG-89-02. The balance of the assay results were less than 55 ppb gold.

The five best anomalies were tested by the drilling program and the assay results from the sampling have shown anomalous but sub-economic values in gold. No additional work is recommended for the property at this time.

10

CERTIFICATE

I, Wayne E. Holmstead, of the City of Kingston in the Province of Ontario, DO HEREBY CERTIFY THAT:

1. I am a Consulting Geologist with address at 1074 Dillingham Street, Kingston, Ontario, Canada.

2. I graduated from the University of Toronto with a Bachelor of Science in Geology in 1976 and have been practicing my profession since.

3. I am a fellow in good standing of the Geological Association of Canada.

4. I have no interest, directly or indirectly, nor do I expect to receive any interest, directly or indirectly, in the mining property described in this report or in the securities of Primrose Gold Resources Inc.

5. This report is based upon a work program on the property that I supervised.

6. I permit Primrose Gold Resources Inc. to use this report or portions of this report in the prospectus or other documents of the company.

Dated at Kingston, Ontario, this 15th day of May, 1989.

Wayne E. Holmstead ,\JB. Se. , F.G.A.C.

APPENDIX A

APPENDIX B

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CLAIM NUMBER

OBSERVED CLAIM POST LOCATION

APPROXIMATED CLAIM POST LOCATION

GEOCOM CONSULTING116 Niagara st KIRKLAND Oc H9j 3B6 r*/. (S14)- 696-2321

65.5395

42E13SE0077 63.5375 RICKABY 200

PRIMROSE GOLD RESOURCES LTD.

E. M. V.L.F. PROFILES

Wilkinson Lake Property

Compilation by

Interpretation by

Drafting by

Township

LU 5 l-

1500

7+00 N

6 + OON

1500

JHIGH VALUE CONTOUR

-7500LOW VALUE CONTOUR

B.L. O K

-D- I

CM/Af NUMBER

OBSERVED CLAIM POST LOCATION

APPROXIMATED CLAIM POST LOCATION

GEOCOM CONSULTING116 Niagara st. KIRKLAND Oc H9J 3B6 Tel. (514)-696-2321

42E13SEM77 63 5375 RICKABY 210

PRIMROSE GOLD RESOURCES LTD.

MAGNETIC CONTOURS

Wilkinson Lake Property

DATE

Compilation bv

Interpretation by

Drafting by

(Dec.(Jec

Township

SCALE 1:2500

N.T.S

50

—^ Drawing A/-2.

O SO 100m