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ARIS SUMMARY SHEET W istrict Geologist, Kamloops Off Confidential: 89.11.24 ASSESSMENT REPORT 18497 MINING DIVISION: Osoyoos 1 LPROPERTY: Astro LOCATION : LAT 49 22 00 LONG 119 38 00 UTM 11 5471333 308813 NTS 082E05E LAIM(S) : Astro 4-S,AS~~O 7-8 PERATOR(S): Welcome North Mines UTHOR(S) : Roberts, W.J. EPORT YEAR: 1989, 28 Pages EYWORDS : Tertiary,Marron Formation,Trachyandesite,Trachyte ORK ONE : Geophysical EMGR 61.2 km;VLF Map(s) - 2; Scale(s) - 1:5000 MAGG 61.2 km Map(s) - 2; Scale(s) - 1:5000

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ARIS SUMMARY SHEET W

istrict Geologist, Kamloops Off Confidential: 89.11.24

ASSESSMENT REPORT 18497 MINING DIVISION: Osoyoos 1 LPROPERTY: Astro LOCATION : LAT 49 22 00 LONG 119 38 00

UTM 11 5471333 308813 NTS 082E05E

LAIM(S) : Astro 4-S,AS~~O 7-8 PERATOR(S): Welcome North Mines UTHOR(S) : Roberts, W.J. EPORT YEAR: 1989, 28 Pages EYWORDS : Tertiary,Marron Formation,Trachyandesite,Trachyte ORK ONE : Geophysical

EMGR 61.2 km;VLF Map(s) - 2; Scale(s) - 1:5000

MAGG 61.2 km Map(s) - 2; Scale(s) - 1:5000

GEOPHYSICAL REPORT

ON THE

ASTRO 4, 5, 7 AND 8 CLAIMS

OSOYOOS MINING DIVISION

N.T.S. 82 E/5

LONGITUDEa 1i9w38'W. LATITUDE: 49-22, N.

FOR

WELCOME NORTH MINES LTD. 1500 - 675 W. HASTINGS ST.

VANCOUVER, B. C.

W. 3. ROBERTS

FEBRUARY, 1989

WORK COMPLETED DURING PERIOD NOVEMBER 15 TO 29, 1988

TABLE OF CONTENTS

P a q e

INTRODUCTION ........................................... 1

L I S T OF C L A I M S ......................................... 3

REGIONAL S E T T I N G ........................................ 5

GEOPHYSICAL SURVEYS ..................................... 6

................................. SUMMARY OF EXPENDITURES 7

CONCLUSIONS AND PROPOSED PROGRAM ........................ 8

APPENDICES

I GEOPHYSICAL REPORT ON VLF-ELECTROMAGNETIC AND MAGNETIC SURVEY BY P. WALCOTT

I 1 VOUCHERS SUPPORTING SUMMARY OF EXPENDITURES

I 1 1 C E R T I F I C A T I O N

FIGURES

LOCATION MAP, ASTRO CLAIMS .............................. 2

C L A I M MAP, ASTRO C L A I M S ................................. 4

WELCOME NORTH MINES LTD. - 15th Floor, 675 W. Hastings Street, Vancouver, B.C.. Canada V6B IN2 Facsimile (604) 687-241 9 Telephone (604) 687-1 658

INTRODUCTION

The Astro 4, 5, 7 and 8 c l a i m s c ~ m s i s t i n g o f 49 c o n t i g u o u s c 1 a i m u n i t s 1 i es a l o n g t h e n o r t h e r n boundary ilf t h e Ter t i dry-age Whi te Lake B a s i n . T h i s v ~ ~ l c a n i c s e d i m e n t a r y complex is h o s t f u r two e p i t h e r m a l g o l d d e p o s i t s .

Welcume Nor th a c q u i r e d t h e A s t r o c l a i m s i n 1288 and i n i t i a t e d a t a r g e t i n g program which i n c l u d e d a g r i d g e c ~ p h y s i c a l s u r v e y .

ASTRO GOLD

--- -04

L I S T O F CLAIMS

C L A I M NO.

ASTRO 4 ASTRO 5 ASTRO 7 ASTRO 8

TOTAL:

GRANT NO. C L A I M UNITS

REGIONAL SETTING

The Astro Property 1 ies a1 ong the n~wthern boundary c~f the Tertiary-age White Lake Basin. This Tertiary volcanic-sedimentary c ~ ~ m p l e x is hc~st for two epittiermal gold deposits. The Dusty Mac Mine has prc~duced over 20,000 ounces of gilld during the period 1969 t13 1372 and is being actively explored. The Vault Property is currently being drill tested by the Inco and Seven Mile High Resources' Joint Venture with impressive results. Recent deep drilling has intersected gold grades to 0.31 uz/tiln gold over 28 feet and 0.23 oz/ton gold over 42 feet. Drill programs tc~ date have outlined a large epithermal gold bearing system over a surface area measuring 818 meters (2700 ft. 1 by 454 meters (1500 ft. 1 The deposit remains open along strike and to depth. Surface exposure uf mineralizati~~n is minimal due tu post ore faulting. There are presently twa drills on the Pruperty. The Vault Property is une c~f the more significant epithermal discoveries in southern British Citlumbia.

The Astro Prctperty lies immediately west of the Vault claims and is underlain by several units of the Tertiary-age Marron Formation. Vari~zus members of the Marron have been recognized as trachyandesite, trachyte and volcanic wackes.

Earlier district mapping by B.N. Church (Preliminary May 35, Geology of the Penticton Tertiary Outlier) has outlined several faults within the Astun claims that potentially could host epi thermal gold mineralization.

G E O P H Y S I C A L S U R V E Y S

A g r i d VLF e l e c t r i t m a g n e t i c and m a g n e t i c s u r v e y w a s c o m p l e t e d i n November, 1988 t i 1 a i d i n mapping a n d l o c a t e c o n d u c t i v e f a u l t z o n e s whi~:h c c ~ u l d hiss t e p i t h e r m a l g o l d m i n e r a l i z a t i ~ ~ n ,

T h i s s u r v e y w a s t=i:~ntracted to P e t e r E. W o l c i ~ t t $4 Assuc. L t d . o f C a q u i t l a m , E .C . , and t h e r e p o r t , "A Geophysical Report an a VLF Electromagnetic and Magnetic Survey on the Astro Claims" is i n c l u d e d a s Appendix I i i f t h i s r e p o r t .

P l e a s e n o t e t h i s r e p o r t f u r s u r v e y s p e c i f i c a t i o n s , d i s c u s s i o n o f r e s u l t s , maps, as w e l l as conc lu s i c1ns a n d rect=~mmendat i uns .

SUMMARY O F EXPENDITURES

CONTRACT GEOPHYSICS - PETER E. WALCOTT & ASSOC. LTD.

1. Grid VLF and Magnetics 61.2 km x $175/km

2. Chain 6 . 9 km x $70/km

3. Picking up thread and flagging 3-1/2 man days

TOTAL:

Expenditure B

10,710

483

Note: Expenditures summarized above do not include additional cost of data processing and report preparation. Note Appendix i of P. WalcottTs report has additional expenditure of $1,167.35 built into total cost of the survey.

CONCLUSIONS AND PROPOSED P R O G R A M

T h e g r i d gel=lphysi c a l s u r v e y o u t 1 i n e d n u m b e r o u s VLF c i ~ n d u c t c ~ r s w i t h a p r e d o m i n a n t e a s t - w e s t o r i e n t a t i o n o n t h e Astra P r c ~ p e r t y .

T h e P r o p e r t y l i e s i m m e d i a t e l y w e s t o f t h e V a u l t c l a i m s w h e r e c u r r e n t d r i 11 i ng p r o g r a m s a r e d e l i n e a t i n g girl d r e s e r v e s a l o n g a n east-west f a ~ t l t s t r l - i c t u r e o r i g i n a l l y t a r g e t e d a s a VLF el e c t r i ~ m a g n e t i c anumal y .

VLF e l e c t r o m a g n e t i c a n i t m a l i e s " A " , "B" a n d " D L ' a p p e a r to 1 i e 1OOO meters i m m e d i a t e l y w e s t o f t h e V a u l t d e p o s i t a n d s h ~ = ~ u l d b e t h e p r i o r i t y t a r g e t f o r f u r t h e r e x p l c l r a t i o n on t h e P r i ~ p e r t y .

A r ec i~mmended pri igram o f c c ~ n t i n u e d VLF e l e c t r i ~ m a g n e t i s s u r v e y s b e t w e e n e x i s t i n g g r i d l i n e s i n areas if i n t e r e s t is p r o p o s e d f o l l o w e d by e s t a b l i s h m e n t a f sct i 1 s a m p l e 1 i n e s a c r o s s anlz~mal i es. F ' r i ~ s p e i t i ng ~ f a1 1 anomal ies s h i t u l d a 1 sr~ b e u n d e r t a k e n .

E a s e d on t h e s u c c e s s ilf t h e a b i ~ v e p r i ~ g r a m , a p r o g r a m o f d iamond d r i l l i n g 5 h u u l d test t a r g e t s f u r f a u l t c i ~ n t r u l l e d e p i t h e r m a l g i t l d m i n e r a l i z a t i o n .

The p r i ~ p i ~ s e d p r ~ z ~ g r a m s h c ~ u l d b e b u d g e t e d a s f u l l o w s :

EXPLORATION FUNCTION EXPENDITURE B

CIC L,J km V. L. F. s u r v e y s @ $200/km 5, OQO 50 km sui 1 s a m p l i n g @ $250/km 12, !3(:)(:) P r i ~ s p e c t i n q , 20 d a y s @ $ 1 5 0 / d a y 3 , (20 0 Mapping , s u p e r v i s i o n , d a t a cumpi l a t i o n

30 d a y s @ $300 /day 9. (20(:,

S u b T o t a l : 2 13 , 5ci (1)

Diamond D r i l l i n g 3000 f t . @ $ 5 0 / f t . a l l - u p

APPENDIX I

PETER E. WALCO'ICT & ASSOC. LTD,

A GEOPHYSICAL REPORT

ON

A-VLF ELECTROMAGNETIC & MAGNETIC SURVEY

Penticton Area, British Columbia

49" 22N, 119" 38'W

FOR

WELCOME NORTH MINES LTD.

Vancouver, B . C .

PETER E. WALCOTT & ASSOCIATES LIMITED

Vancouver, B.C.

FEBRUARY 1989

GEOPHYSICAL SERVICES

PETER E. WALCOlT & ASSOC. LTD.

TABLE OF CONTENTS.

Paqe

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . INTRODUCTION 1

PROPERTY, LOCATION & ACCESS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

................................................... PURPOSE 3

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . PREVIOUS WORK 4

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GEOLOGY 5

SURVEY SPECIFICATIONS ...................................... 6

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . DISCUSSION OF RESULTS

SUMMARY, CONCLUSIONS &. RECOMMENDATIONS . . . . . . . . . . . . . . . . . . . . . 8

APPENDIX

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . COST OF SURVEY i

PERSONNEL EMPLOYED ON SURVEY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ii

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CERTIFICATION iii

CONTOURS OF TOTAL FIELD INTENSITY 1:20000 . . . . . , . . . . . . . . . . . iv

CONTOURS OF FRASER FILTERED V1,F DATA 1:20000 . . . . . . . . . . . . . . v

PROFILES OF IN PHASE & QUADRATURE 1:20000 . . . . . . . . . . . . . . . . . vi

ACCOMPANYING MAPS 1:5000

1. PROFILES OF TOTAL MAGNETIC FIELD INTENSITY

2. CONTOURS OF TOTAL MAGNETIC FIELD INTENSITY

3. PROFILES OF IN PHASE & QUADRATURE

MAP POCK=

4. CONTOURS OF FRASER FILTER

GEOPHYSICAL SERVICES

PETER E. WALCOTI' & ASSOC. LTD.

INTRODUCTION.

Between November 15th and 29th, 1989, Peter E. Walcott & Associates Limited carried out VLF electromagnetic and magnetic surveying over a property, located in the Penticton area of British Columbia, for Welcome North Mines Ltd.

The survey was carried out over north-south "chain arid compass" lines that were established by the geophysical crew from an east-west tie line, and that were chained at 25 metre intervals.

Measurements of the total intensity of the earth's magnetic field were taken together with readings of the vertical inphase and quadrature components of the VLF magnetic field using the navy station at Annapolis, Maryland as the VLF transmitter.

The progress of the survey was hampered by the rough terrain an the western extremity of the property.

The magnetic results are presented in profile and contour form on plan maps af the line grid, whereas the VLF results are presented as profile plots, and as contoured Fraser filter data.

GEOPHXSICAL SERVICES

3

PETER E. WALCOlT & ASSOC. LTD.

PROPERTY, LOCATION & ACCESS.

The property, consisting of the Astro claims, is located in the Osoyoos Mining District of British Columbia.

The claims are situated straddling Hwy. 3 A some four kilometres west of its intersection with Hwy 97.

Access is obtained by the above highways from either Penticton or Okanagan Falls some 5 kilometres to the northeast and southeast respectively.

GEOPHYSICAL SERVICES

8 PETER E. WALCOTS & ASSOC. LTD. bid

PURPOSE.

The purpose of the survey was to (1) satisfy assessment requirements and (2) to see if there might be any VLF electromagnetic anomalies indicative of weak narrow sulphide mineralization that could be associated with epithermal gold mineralization as on the adjoining Vault property to the east.

GEOPHYSICAL SERVICES

PETER E. WALCOTI' a ASSOC. LTD.

P PREVIOUS WORK.

d The writer is not familiar with any previous work

7 carried out on the property. b

GEOPHYSICAL SERVICES

PE- E. WALCOTJ! & ASSOC. LTD.

GEOLOGY.

The reader is referred to documentation and reports held by Welcome North Mines Ltd,

GEOPHYSICAL SERVICES

PETER E. WALCO!TT & ASSOO. LTD.

SURVEY SPECIFICATIONS.

The magnetic survey was carried out using an EDA Omni- Plus proton precession magnetometer, mankifactured by EDA Instruments Inc. of Metropolitan Toronto, Ontario. This instrument measures variations in the earth's magnetic intensity to an accuracy of plus or minus one gamma. Corrections for diurnal variations were made by comparison with readings obtained on a base magnetometer also manufactured by EDA.

The basic principle of any electromagnetic survey is when conductors are subjected to primary alternating fields

secondary magnetic fields are induced in them. Measurements of these secondary fields give indications as to the size, shape and conductivity of conductors. In ,the absence of conductors no secondary fields are obtained.

The VL,F electromagnetic survey was carried out using an EDA Omni-Plus System manufactured as described above. This unit makes use of the VLF transmitting stations operating for communication with submarines for its transmitted signal - the vertical antenna currents create concentric magnetic fields - and measures the vertical components of the secondary fields created as above. These measurements were made at 25 metre intervals along the grid lines.

In all some 61.2 kilometres of combined magnetic and VLF electromagnetic surveying were carried out.

GEOPHYSICAL SERVICES

PE!lY3R E. WALCOTlC & ASSOC. LTD.

DISCUSSION OF RESULTS.

The writer has contoured the data obtained at 25 metre intervals on lines 200 metres apart on a chain and compass survey with limited control to facilitate better presentation. However, the reader should be aware that this will create a strong directional bias in the data,

The magnetic survey exhibited the typical pattern expected from the underlying volcanics. Two areas of higher magnetic intensity can be readily seen on the plan and contour maps of the magnetic data in the northwestern and southwestern portions of the grid, associated with higher elevations, with the former in fault contact with the rocks to the south as evidenced by the line of cliffs.

Other faulting can be seen in generally ENE and NNW directions as best emphasized on the 1:20000 colour contour map- these directions are partially a product of t.he wide line spacing.

The VLF electromagnetic survey showed numerous conductors generally trending eastwards across the grid- partially or. wholly a product of the line spacing. The strorlger and more continuous of these are labelled conductors A through I1 on the contoured plan of the filtered VLF data. Cultural anomalies due to power lines and/or wire fences, as can be seen from the profile map, have not been classified as conductors.

Conductor axes have been extended mainly on the basis of the contoured filtered data. However individual axes could be connected differently in cases based on profile slope as per conductor H and the adjoining short conductor to the north. Closer spacing work could clarify these discrepancies.

OEOPHXSICAL SERVICES

PETER E. WALCO'IT & ASSOC. LTD,

e SUMMARY, CONCLUSIONS & RECOMMENDATIONS.

Between November 15th and 29th, 1988, Peter E. Walcatt a & Associates Limited undertook a reconnaissance VLF Ld electromagnetic and magnetic survey over a property, located in

the Penticton area of British Columbia, for Welcome North Mines Q Ltd.

The property lies to the immediate west of the Vault

F"t property where Inco Gold is planning to spend an additional 1.2

b million to further investigate a potential epithermal gold deposit.

i"" The surveys, carried out over widely spaced lines, kd indicated the presence of numorous VLF conductors whose causative

sources could be faults and/or weak sulphide mineralization.

P u As a result he recommends that (1) these anomalies be

investigated geologically ( 2 ) these anomalies he detailed at

P closer line spacing to confirm t h e i r strike lenghts and

b directions, and ( 3 ) soil sampling be undertaken in t h e i r vicinity before any nia jor coniniittlnent to the property is considered.

i"l Respectfully submitted,

PETER a WALCOTT & ASSOCIATES LTD.

Peter E. Walcott, P.Eng., Geophysicist

""9 Vancouver, B.C. d

FEBRUARY 1989 f7

d

GEOPHYSICAL SERVICES

W PETER E. WALCOW & ASSOC. LTD. @

A P P E N D I X --------------- ----- ----------

GEOPHYSICAL SERVICES

PEWR E. WALCOTI' & ASSOC. LTD.

COST OF S U R V E Y .

P e t e r E . Walcott & Associates Limited undertook t h e data collection o n a fixed cost basis. Reporting and presentation c0st.s were e x t r a s o t h a t the total cost of services provided was 812,965.35,

GEOPHYSICAL SERVICES

PETER E. WALCOlT & ASSoO. LTD.

P E R S O N N E L E M P L O Y E D O N S U R V E Y .

Name Occupation Address D a t e

Peter E. Walcott Geophysicist Peter E. Walcott & Assoc. Jan 27,Feb 17- 605 Rutland Court, Feb 24, 1'389 Coquitlam, B.C. V3J 3T8

R. Summerfield Geophysical Operator

V. Pashniak

J. Walcott

Nov 15-29, 1988

II

Feb. 22nd, 89

Drauyhting RWR Minerals Graphics Feb. 20-22nd, 1024 - 470 Granville St., 1989 Vancouver, B . C .

GEOPHYSICAL SERVICES

4 PETER E. WALCO'IT & ASSOC. LTD. 'd

- iii - CERTIFICATION.

I, Peter E. Walcott, of the Municipality of Coquitlam, British Columbia, hereby certify that:

1. I am a Graduate of the University of Toronto in 1962 with a B.A.Sc. in Engineering Physics, Geophysics Option.

2. I have been practising my profession Tor the last twenty six years.

3. I am a member of the Association of Professional Engineers of British Columbia and Ontario.

4. I hold no interest, direct or indirect in the securities or properties of Welcome North Mines Ltd., nor do I expect to receive any. n

Peter E. Walcott, P.Eng.

Vancouver, B.C.

FEBRUARY 1989

GEOPHYSICAL SERVICES

APPENDIX 1 1

PETER E. WALCOTT a ~ssoc. LTD. 605 RUTLAND COURT. COQUITLAM. H . C . V3J 3T8 TEL. 939-0383

I N V O I C E =============

To: WELCOME NORTH MINES LTD, - 15 th F loor - 675 W. I last ings St., Vancouver, B.C.

Re: VLF & Mag survey, Princeton, B.C. Nov, 1988

NO. 1852 -------_ _------_

Date: November 29th, 1988 -

1. Chain & read VLF and mag on approx. 61.2 km of l i n e a t $175.00 pe r km

2. Chain i n 6.9 km of T i e l i n e a t $70,00 km

Terms: NET 30 DAYS

3. 1 Man pick-up f lagging and th read 1 / 2 day, 2 men p ick up th read & f lagging 1 day p l u s room and board

Y

p l u s t r u c k 605.00 s

P r o j e c t W-449 =-=--I======

@ INVOICE NO. 1852 --------------- ----_----_----- R

v I

Please no te i n t e r e s t w i l l be charged a t t he r a t e of 1 112% pe r month c on a l l overdue accounts,

APPENDIX I 1 1

CERTIFICATION

I, Wayne J. Roberts of the Municipality of Coquitlam, British Columbia hereby certify that:

1. I am a graduateof theUniversity of British Columbia in 1968 with a l 3 . S ~ . majoring in Geology;

2. I have been practising my profession for the past 20 years;

3. I am a fellow of the Geological Association of Canada;

4. I personally have supervised the grid geophysical survey on the Astro claims.