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PROSPECTING REPORT MAGNETOMETER & SOIL SAMPLING SURVEY ON THE " DIVIDED GROUP " OF MINERAL CLAIMS IN THE OSOYOOS MINING DIVISION N.T.S. 82 E / 5 W o »•

49 22 NORTH LATITUDE o «

119 51 WEST LONGITUDE RECORDED OWNER, OPERATOR, & AUTHOR LEO REICHERT DECEMBER 1987

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INTRODUCTION ( i ) The "Dividend Group" of mineral claims consist of j

Claim Name Record Number Anniversary Jay #1 2487 Sept. 19 Jay #2 2488 Sept. 19 Oven 2447 June 30 Green Mtn. 2491 Sept.29 B l a c k s Camp 2490 Sept.29 Dividend 2433 June 16 Union Gap 2435 June 16 Paychex 2434 June 16 Pai r of Sevens 2530 Oct. 31 they are located i n the southern i n t e r i o r of B r i t i s h

Columbia, 12 km east of Mascot Gold Mines ( Nickel Plate Mine ), Hedley B.C.

Access i s by 4X4 vehicle on bulldozed roads from either O l a l l a Cr. Rd., Cedar Cr. Rd., Old ni c k e l plate Rd., or Apex Ski Resort Rd.

Topography ranges from 7100 f t . (2164 ra ) to 4200 f t . (1280 m) above sea l e v e l .

Slopes are steep, valley f l o o r and lower slopes are covered with evergreens and upper southern slopes are i n bare alpine growth, upper northern slopes are heavily timbered.

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( i i ) Claims were f i r s t recorded on the property i n 1899 and were active u n t i l the outbreak of W.W.I i n 1913, as documented i n the Ministry of Mines Annual Reports.

Exploration was centered on bodies of massive pyrrhotite carrying values i n copper and gold. Work consisted of p i t s , trenches, adits and shafts. Further work was not recorded u n t i l 1966. Following i s an excerpt from an " i n house" report by Mr. Alex Burton P.Eng. (1981).

"A series of mineral occurences were recently recognized to be a l i n e a r zone of pyrrhotite lenses and disseminations with s i g n i f i c a n t tungsten values as well as the previously known gold and copper values.

The several showings l i n e up and appear to be part of a zone at least 2,400 metres (8,000 f t . ) long that extends through a v e r t i c a l extent of at least 300 metres (1,000 f t . ) and maybe more than 450 metres (1,500 f t . ) This i s a si g n i f i c a n t and important mineral property with good potential for developing economic tonnages of open p i t and maybe underground ore.

I t warrants a thorough exploration program on the several surface showings as well as along s r t i k e extensions on the zone."

Since the report by Alex Burton i n 1981 the claims have lapsed and the ground has been l e g a l l y restaked and added to by the present owner, operator and author, Leo Reichert.

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( i i i ) A 35.3 km exploration g r i d was l a i d out i n June 1987. S i l v a ranger compasses with magnetic declination adjustment

o (21 30" East declination was used) and dip needle clino-meters as well as hip chain to p o f i l s were u t i l i z e d for bering and distance measurements with slope correction. The lines were marked by blazing and flagging with orange ribbon on a l i n e spacing of 100 m with stations at 20 m interval s , coordinates were marked with waterproof ink f e l t pens on tyvek tages t i e d to flagging.

A magnetometer survey was conducted over 25.54 km of the exploration g r i d by the author using a Mcphar M700 magnetometer, ( S e r i a l No. 7132). The M700 magnetometer i s a v e r t i c a l f i e l d magnetometer employing the f l u x gate principle. A l l readings were taken facing east to minamize fluctuation with respect to the horizontal direction of the earth's magnetic f i e l d . Although the survey was conducted with the accepted method of recording time of reading and t i e i n with known base stations to determine diurnal d r i f t , the readings were not corrected f o r the observed fluctuations were negligible compared to the anomalies found on the property. (60 gamma fluctuations, 1,000 gammas considered anomalous, 100,000 gammas maximum observed anomaly).

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The most sensitive scale (10 gaiima readings) on the magnetometer was used and adjusted to known stations from assessment report #10|092 i n order to t i e i n magnetic readings with the previous survey. This was possible by deleting a constant of 57,000 gammas which was l a t e r added to a l l readings.

Readings were taken at 10 m intervals along a l l lines and occasionally at 5 m intervals where magnetic gradient i s steep. Over 3,000 separate readings were taken, i n some anomalous areas a detailed f i l l i n g r i d with 20 m l i n e spacing was added.

Geochemical Survey A t o t a l of 90 s o i l samples were collected at 20 m

intervals along lines spaced at 100 m. Samples of no less than 250 grams were taken from the "B11 horizon (15 - 40 cm depth) using a shovel. The samples were placed i n Kraft paper gusset bags and g r i d coordinates marked on them with waterproof ink f e l t marking pens. Chemex Labs Ltd., 212 Brooksbank Ave., North Vancouver prepared the samples by drying, then sieveing through -35 mesh and ring pulverizing to approximately -100 mesh. A 30 gram sample was then f i r e assayed with atomic absorpion as the f i n i s h i n g step for a gold geochemical assay with a detection l i m i t of 5 ppb.

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Sample locations were confined to very limited areas of the property i n an attempt to v e r i f y and rediscover s o i l anomalies described by Cochrane (1975) assessment report #5574, as well as keeping within a limited budget.

A t o t a l of 29 rock samples were submitted from various locations on the property and assayed s i m i l a r l y for gold. At an old d r i l l s i t e near the north west boundry of the Green Mtn. claim J200 f t . (61 m) of BQ size diamond d r i l l core was discovered i n core boxes. The date and operators of the d r i l l i n g i s unknown, but the core was logged by the author and divided into 19 rock sampled which were submitted. The bearing and dip of the hole could not be determined but d r i l l cuttings indicate location of hole, because the topography slops steeply to the north the author speculates the hole to

o o have a bearing i n a southerly direction with a dip of 45 - 60 from the horizontal.

Regional Geology H.S.Bostock f i r s t mapped the area i n 1927 for the G.S.C. and Printed "Map 628 Ai O l a l l a . " In the area of the claims Triassic sediments and lesser amounts of volcanics were mapped as the Old Tom, Shoemaker and Independence Formations. These Format-ions are cut by post Triassic granodiorite.

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Geological Survey The author was confined to the g r i d lines during the

cource of the magnetometer survey and only b r i e f , general notes are available due to the limited time spent. Areas that were not easily assessed were simply noted as outcrop, (i v ) A l i s t of claims that the work was actually performed on follows;

Magnetometer Survey (August & September) - Black's Camp - Dividend

Geochemistry Survey ( October ) - Dividend Diamond D r i l l Hole Assays ( October ) - Green Mtn.

Interpretation & Conclusions Magnetometer Survey

Primarily, the Magnetometer survey was successful i n newly discoveBing a very large, and strongly magnetic zone i n the north east quadrant of the Dividend claim. The anomalous zone measures over 1,100 m long and over 200 m wide at i t ' s widest point with the strongest magnetic r e l e i f of 100,000 gammas over 30 m at 71A00 E on L 74 N. No surface showings were v i s i b l e to indicate type or size of mineralizat-ion, although i n 1982, a small showing of massive pyrrhotite replacement skarn adjacent to c r y s t a l l i n e limestone was observed, fcy the author, i n the general area. B.C.M.M.A.R. describe the LeRoi & Scotia Group of claims to be situated on the northern

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slope of Dividendd Mountain, and i n 1905 report; "During l a s t season a tunnel and crosscut therefrom

were made on the property. This work disclosed an extensive body of high grade copper gold ore running about 5% copper and several dollars i n gold. The property i s well situated for operation through tunnels."

These facts c l e a r l y demonstrate the need for an extensive exploration program i n order to determine the parameters of the mineralization causing tins newly discovered large and powerfull magnetic anomaly.

Secondarily, the magnetometer survey was successful i n d e t a i l i n g a prviously known area of massive sulphide mineral-i z a t i o n by defining and extending i t ' s shape and size to an unprecedented extent.

Follow up work i s needed to the north and south as well as to the west where a substantial diamond d r i l l i n g program was conducted i n November 1987 near the west boundary of the Green Mtn. claim by Siemont Resources on i t ' s neighboring property. The assays of the diamond d r i l l core found abandoned i n this area were not remarkable. Geochemistry Survey

The limi t e d s o i l survey did not duplicate the results of assessment report # 5574, jLLthough several anomalous gold values were recorded.The geochemistry survey should be extended to a l l regions of the claims and i n that way may prove invaluable i n determining gold mineralization.

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SUMMARY

Riture exploration should consist of extending g r i d to the north and west as well as f i l l i n g i n and d e t a i l -ing g r i d over the large anomaly on the north slope of Dividend Mountain followed up with prospecting, magnetometer, s o i l and geological surveys as well as road building, trenching and diamond d r i l l i n g where required.

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B I L L I N G I N F O R M A T I O N

D a 1 e 2 5 - N O V - 8 7 P r o j e c t : P . O . s A c c o u n t B D N

B i 1 l i n g : F o r a n a l y s i s p e r f o r m e d o n C e r t i f i c a t e A 8 7 2 5 6 9 5

C H E M E X C O D E

A N A L Y S I S D E S C R I P T I O N

S A M P L E S A N A L Y Z E D

U N I T P R I C E A M O U N T

T e r m s : N e t p a y m e n t i n 3 0 D a y s 1 . 5 % p e r m o n t h (1 $ % p e r a n n u m ) c h a r g e d o n o v e r d u e a c c o u n t s .

9 8 3 - A u p p b F A - t - A A 8 9 8 . 7 5

S a m p l e p r e p a r a t i o n a n d o t h e r c h a r g e s

2 0 3 - - 3 5 m e s h s i e v e + r i n g 9 0 2 . 5 0

7 7 8 . 7 5

2 2 5 . 0 0

T o t a 1 C o s t S 1 0 0 3 . 7 5

T O T A L P A Y A B L E S 1 0 0 3 . 7 5

P l e a s e r emi t p a y m e n t s t o :

C H E M E X L A B S L T D . 2 1 2 B r o o k s b a n k A v e . ,

N o r t h V a n c o u v e r , B . C . C a n a d a V 7 J - 2 C 1

Chemex Labs Ltd A n a l y t i c * ! C h t i m i a t a - G a o c t i « n U 3 t 3 * R a g i s t a r A O A s a a v e r a

111 BROOK.SBANK A V E . NORTH V A N C O U V E R . B R I T I S H C O L O M B I A . CANADA V 7 J - 1 C 1

PHONE ( 6 0 4 ) 9*4-0221

T o R E I C H E R T . M R . L E O

BOX 514 K E R E M E O S , B . C . V O X 1N0

P r o j e c t C o m i l l s :

• • P a g e N o . :1 T o i . Pages : 3 L>ale . 2 5 - N O V - S ? I n v o i c e 0 ; 1 - 8 72 569 5 P . O . (f

C E R T I F I C A T E OF ANALYSIS A8 72 5 69 5

S A M P L E

D E S C R I P T I O N

P R E P

C O D E

A u p p b

F A + A A

L 5 9 N 6 6 + O O E L 5 9 N 6 6 + 2 0 E L 5 9 N 6 6 + 4 0 E L S 9 N 6 6 + 6 0 E L 5 9 N 6 6 + 8 O E

2 0 3 2 0 3 2 0 3 2 0 3 2 0 3

— — 4 0 2 5 1 5 6 5 4 0

i

i

j

i

L 5 9 N 6 7 - H ) 0 E L 5 9 N 6 7+2 0 E L 5 9 N 6 7 - M O E L 5 9 N 6 7 + 6 0 E L 5 9 N 6 7+8 0 E

2 0 3 2 0 3 2 0 3 2 0 3 2 0 3

—

6 5 n o t / s s

2 0 1 5

< 5

— — . — ,

L 5 9 N 6 8 + O O E L 5 9 N 6 8 + 2 0 E L 5 9 N 6 8 + 4 0 E L 5 9 N 6 8 + 6 0 E L 6 0 N 6 6 + O O E

2 0 3 2 0 3 2 0 3 2 0 3 2 0 3

—

< 5 1 5 2 0 2 0 2 0

L 6 0 N 6 6 + 2 O E L 6 0 N 6 6 + 4 0 E L 6 0 N 6 6 + 6 0 E L 6 0 N 6 6 + 8 0 E L 6 0 N 6 7 + O O E

2 0 3 2 0 3 2 0 3 2 0 3 2 0 3

—

2 5 2 0 3 5 1 5 2 0

L 6 0 N 6 7+2 0 E L 6 0 N 6 7 + 4 0 E L 6 0 N 6 7 + 6 0 E L 6 0 N 6 7 + 8 0 E L 6 0 N 6 8 + O O E

2 0 3 2 0 3 2 0 3 2 0 3 2 0 3

— 2 0 2 5 1 5 8 5 1 5

L 6 0 N 6 8 + 2 0 E L 6 0 N 6 8 + 4 0 E L 6 0 N 6 8 + 6 0 E L 6 0 N 6 8 + 8 0 E L 6 1 N 6 6 + O O E

2 0 3 2 0 3 2 0 3 2 0 3 2 0 3

—

1 5 5

< 5 1 5 2 0

L 6 1 N 6 6 + 2 0 E L 6 1 N 6 6 + 4 0 E L 6 1 N 6 6 + 6 0 E L 6 1 N 6 6 + 8 O E L 6 1 N 6 7 + O O E

2 0 3 2 0 3 2 0 3 2 0 3 2 0 3

—

1 5 1 5

< 5 2 0 3 5

L 6 1 N 6 7 + 2 0 E L 6 I N 6 7 + 4 0 E L 6 I N 6 7 + 6 0 E L 6 1 N 6 7 + H O H L 6 I N 6 8 + O O E

2 0 3 2 0 3 2 0 3 2 0 3 2 0 3

—

3 5 2 5 4 0 2 5 4 0

r s T r r

A1 I A S S A V , . , - T E R M I N A T I O N S A R E P E R F O R M E D OR S U P E R V I S E D BY B.C. C E R T ' ASS A Y E R S C E R T I F I C A T I O N

Ghemex Labs Ltd A n a l y t i c a l C M r m s i a * G * o c r > * m i a t 3 • R a g i a t a r a d A a a a y a r s

111 BROOKSUANX A V E . NORTH V A N C O U V E R . B R I T I S H C O L U M B I A , CANADA V 7 J - 2 C I

PHONE ( 6 0 4 ) 9 « 4 - 0 2 2 I

T o R E I C H E R T . M R . L E O

BOX 5 I 4 K E R E M E O S V O X I NO

P r o J • c l C a r o a n i l ;

c.

• • P a g e N o . : 3 T o l Paget : 3 D a t e :2 5 - N O V - s 7 l o v o i c e It : 1 - 8 7 2 5695 P . O . 0

C E R T I F I C A T E OF ANALYSIS A8 72 5 695

S A M P L E

D E S C R I P T I O N

P R E P

C O D E

A u p p b

F A + A A

W 2 6 2 - K > 0 N 6 7 + 9 0 E W T T R I + 6 5 E V v T T R 1 + 8 0 E 0 + 4 0 S W T T R 1 + 8 S E V v T T R 2 + 0 O E 0 + 8 0 S

2 0 3 2 0 3 2 0 3 2 0 3 2 0 3

S H ff1 0 + 3 0 M S . E S H tt] 0 + 7 0 S . W . W T R 2oO r^wJf l f r + a ^ W W A D ZOO W at K&CTSrtl

V 0 3 /£C™$dfHa&0fir

2 0 3 2 0 3 2 0 3 2 0 3 2 0 3

CO CM

5 i

% I ! 1 5 ~£timl /s\ i a T » M fiZ- 7J0 HeZJEPv&T 5

6 0 8 0 J 5

A L L A S S A V ^TERMINATIONS A R E P E R F O R M E D OR S U P E R V I S E D B Y B.C C E R T ' 1 A S S A Y E R S C E R T I F I C A T I O N

^ 0

Chemex Labs Ltd A n a l y t i c a l C r m r m s t s * k a o c r t a m l s t s * R » g l » i » f # C J A s s a y a r s

211 BROOKS BANK A V E . NORTH VANCOITVER. B R I T I S H C O L I M B I A . CANADA V 7 J - 2 C 1

PHONE ( 6 ( 1 4 1 9 « 4 - n 1 J 1

T o : R E I C H E R T , M R . L E O

B O X 514

K E R E M E O S , B . C . V O X 1 N 0

* INVOICE NUMBER 18725696 *

B I L L I N G I N F O R M A T I O N

D a t e P r o j e c t P . O . B A c c o u n t

I 9 - N O V - S 7

B D N

B i l l i n g F o r a n a l y s i s p e r f o r m e d o n C e r t i f i c a t e A 8 7 2 5 6 9 6

T e r m s : N e t p a y m e n t i n 30 D a y s 1 . 5 % p e r m o n t h ( 1 8 % p e r a n n u m ) c h a r g e d o n o v e r d u e a c c o u n t s .

P l e a s e r e m i t p a y m e n t s t o :

C H E M E X L A B S L T D . 2 1 2 B r o o k s b a n k A v e . ,

N o r t h V a n c o u v e r , B . C . C a n a d a V 7 J - 2 C 1

C H E M E X A N A L Y S I S S A M P L E S U N I T C O D E D E S C R I P T I O N A N A L Y Z E D P R I C E A M O U N T

9 8 3 A u p p b F A + A A 3 4 8 . 7 5 2 9 7 . 5 0

S a m p 1 c p r e p a r a t i o n a n d o t h e r c h a r g e s

2 0 5 R o c k / C o r e - R I N G 3 4 3 . 0 0 1 0 2 . 0 0

T o t a l C o s t S 3 9 9 . 5 0

T O T A L P A Y A B L E S 3 9 9 . 5 0

Chemex Labs Ltd Analytic** Cnamlata * G*ooo*miata * Raolataraa Aosayars

113 BROOKS BANK A V E . NORTH VANCOUVER B R I T I S H C O L U M B I A . CANADA V 7 J - 2 C 1

PHONE ( 6 0 4 ) 9*4-0331

T o : R E I C H E R T , M R . L E O

B O X 5 14 K E R E M E O S , B . C . V O X 1N0

P r o j a c i : Contra • i * :

• • P a g e N o . T o t . P a g e i D a t e I n v o i c e fl P . O . n

1 9 - N O V - 8 7 1 - 5 7 2 5696

C E R T I F I C A T E O F ANALYSIS A8 72 5 696

S A M P L E

D E S C R I P T I O N

P R E P

C O D E A u p p b

F A + A A

1 2 5 2 0 1 1 2 5 2 0 2 1 2 5 2 0 3 I 2 5 2 0 4 1 2 5 2 0 5

I~2~5206 1 2 5 2 0 7 1 2 5 2 0 8 1 2 5 2 0 9 _ _ 1 2 J 2 1 Q

12 5 2 1 i

1 2 J 2 1 I 2£>2 I U 1 2 5 2 2 1

1 2 5 2 2 2 ' 1 2 5 2 2 3 1 2 5 2 2 4 1 2 5 2 2 5 1 2 5 2 2 6

1 2 5 2 2 7 " i 2 5 2 2 8 1 2 5 2 2 9 1 2 5 2 3 0 I 2 5 2 3 I

I 2 5 2 3 2 " I 2 5 2 3 3 1 2 5 2 3 4 1 2 5 2 3 5 1 2 5 2 3 6

2 0 5 2 0 5 2 0 5 2 0 5 2 0 5

2 0 5 2 0 5 2 0 5 2 0 5

205 < 5

2 0 5 2 0 5 2 0 5 i 2 0 5 2 0 5

2 0 5 2 0 5 2 0 5 2 0 5 2 0 5

2 0 5 2 0 5 2 0 5 2 0 5 2 0 5

1 2 5 2 3 7 1 2 5 2 3 8 1 2 5 2 3 9 1 2 5 2 4 0

2 0 5 2 0 5 2 0 5 2 0 5

5 2 5

5 < 5 < 5

1 5 2 0

5 < 5 < 5

< 5 < 5 < 5 < 5

r

^

A L L A S S A Y , D c TERMINATIONS A R E P E R F O R M E D OR S U P E R V I S E D BY B.C C E R T I F Y A S S A Y E R S C E R T I F I C A T I O N

(

26

REFERENCES

B.C. Minister of Mines, Annual ReportBj 1899, 1901, 1902, 1903, 1904, 1905, 1907, & 1908.

B.C. Minister of Mines, Assessment Reports; #803 Geophysical Report 1966

Magnetometer, Electromagnetic Cominco Ltd.

#1803 Airborne Magnetometer Survey, 1968 Loak Creek Property Apex Exploration and Mining Co. Ltd.

#3916 Magnetometer & geology 1972 J J claims New Northcal Mines Ltd.

#3918 Geophysical & Geochemical Report 1972 Karen Group, Klohtelt Creek Lantern Gas & O i l Ltd.

#4794 Geochemical Survey 1973 J J claims New Northcal Mines Ltd.

#5199 Airborne Magnetometer Survey 1974 Dividend Mountain Soutlican Mining Ltd.

27

#5574 Geochemical Report 1975 Dividend Mountain Southean Mining Ltd.

#10,092 Geophysical Report 1981 Dividend Mountain Summit Pass Resources Ltd.

also property Examination 1981 by Alex Burton P.Eng. for Summit Pass Resources Ltd. ( i n house)

Geological Survey of Canada, Maps; Map 628 A O l a l l a Map 538 A Kettle River, West Half Map 15-1961 Revision of Map 538 A

US

( \

ITEMIZED COST STATEMENT

Magnetometer Survey (25*64 km @ $125.00/km) $3192,50 Geochemical Sampling (90 samples @ $6.00/sample) $540.00 Rock sampling @ $10.00/ (29 samples @ $10.00/3ample) $290.00 Total Assaying (Chemex Labs) $1344.50 Shipping samples & return samples $150.00 Report materials & reproduction $200.00 Report labour (£.5 days @ $100.00/day) $750.00

TOTAL COST $6,467.00

251

AUTHORS QUALIFICATIONS

It Leo Reichert, do hereby c e r t i f y that I am a c e r t i f i e d mining technologist and prospector with offices at Box 514, Keremeos B.C. vox-ino (Ph. 604-499-2580).

(1) I graduated from the B r i t i s h Columbia Institute of Technology i n 1972 with a diploma i n mining technology, diploma #4538.

(2) I completed and hold a c e r t i f i c a t e from the B r i t i s h Columbia Dept. EJiergy, Mines and petroleum Resources, 11 Mineral Exploration for prospectors" (April-May 1978) Selkirk College, Castlegar B.C.

(3) I completed and hold a c e r t i f i c a t e from the B r i t i s h Columbia Mining School, Rossland B.C. (Dec.78-Mar.79) "Open P i t Operator Basic Training" #1970.

(4) I completed and hold a B r i t i s h Columbia Dept. Energy, Mines.and petroleum Resources, "Ce r t i f i c a t e of Competency i n Mine Rescue" (Mar. 1972) #5072.

(5) I have been involved i n mining exploration since 1978 and have worked the 1978,19795:1980 seasons for Wayland S. Read Ltd. as an exploration technician i n the Yukon and B.C.

(6) I was employed by "Newmont Mines", Similkameen Division as Senior Ore Control Technician from July 1972 to Nov. 1973.

(7) I was employed by "Brenda Mines Ltd.y Peachland B.C. as a summer student 1971 i n the capacity of both .surveyors helper and 100 ton truck operator.

http://Dec.78-Mar.79