Assessment Report

For The

2013 Survey Program

On The

Luxore Mineral Claims

Omineca Mining Division

NTS 93L/14

Latitude: 54 degrees, 45 minutes, 48 seconds N

Longitude: 127 degrees, 21 minutes, 00 seconds W

Owned by K. Coswan and S. Bell

Operator K. Coswan and S. Bell

Report By: S. Bell

July 2014

Tenure Name Area Good To Date

1019435 Luxore 130.63 2022/May/12

Table of contents

1.0 Introduction

2.0 Summary

2.1 Location, Access and Ownership

2.2 Physiography, Vegetation and Climate

2.3 History of Work

2.4 Regional Geology

2.5 Property Geology

3.0 Physical and Geophysical Survey

4.0 Summary Physical Survey

5.0 Summary Geophysical Survey

6.0 Recommendations and Conclusions

Photos

Equipment Specifications

Statement of Costs

Qualifications

Figure 1 Luxore Claim Locations

Figure 2 Map Area Transit-Stadia Hub Locations

Figure 3 Magnetic Profile

Figure 4 VLF-EM Profile

Map Physical Features Luxore Claim

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4.

4.

5.

6.

7.

7.

10.

16.

17-21.

22-24.

25.

26.

2-3.

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14.

15.

Pocket.

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1.0 Introduction

Between September 15 and October 28, 2013 the claim owners completed a preliminary

physical and geophysical survey on the Luxore mineral claims investigating Minfile

prospect 093L 087 King Tut. Determination of the properties potential to host

mineralization which could support a small artisanal mining operation is the purpose of

the study. To assess this possibility a knowledge and evaluation of previous workings

conducted on the property is first required. This then provides a base to which layers of

geological and geophysical data can be applied. Compilation of the data is required prior

to assigning probability. Since the target is small the precision of a physical survey is

needed to ensure accurate spatial orientation of the data. The following details the

survey performed on the Luxore claims during the 2013 season.

2.0 Summary

Historical workings on the Luxore property revealed the presence of silver rich poly-

metallic mineralization. Further work is required to access the properties full potential

since the focus of historical exploration was limited to an investigation of a suspected

mineralized trend in the area of the principle mineral occurrence. Further more the

distribution of excavations may not be sufficient enough to have adequately evaluated

this trend. A reconnaissance magnetometer line across the northern portion of the map

area detected an anomaly illustrating that this geophysical technique can be employed

as an aid to delineate potential ore bearing structures.

2.1 Location, Access and Ownership

The Luxore property consists of one claim.

Tenure Name Area Good To Date

1019435 Luxore 130.63 2022/may/12

The Luxore tenure is located in west central British Columbia approximately 12km west

of Smithers B.C. Road access from Smithers is by motor vehicle taking Hudson Bay

Mountain road to the junction of the McDonell Lake road. Proceed onto the McDonell

Lake road approximately 5.6km then turn onto the old Duthie mine road to reach the

south west corner of the Luxore claim.

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Figure 1. Luxore Mineral Claim Location 12Km West of Smithers B.C.

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Figure 2. Luxore Mineral Claim Location 12Km West of Smithers B.C.

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2.2 Physiography, Vegetation and Climate

The claims are located on the southwest flank of Hudson Bay Mountain at an elevation

of 900 to 1300 meters. Small streams supplied by melting snow course down steep

ravines toward the valley and remain energetic late into the summer season. Bedrock

is naturally exposed on local hilltops at the highest elevation and in the most deeply

dissected ravines. At lower elevation slopes and tops of hills are heavily forested with

spruce, balsam, hemlock, poplar and alder however soil is generally thin and poorly

developed with little accumulation of organic matter. In wet gullies and in low lying

areas soil is well developed and often includes a rich organic layer. Here Quaternary

age glacial deposits and locally derived colluviums vary from less than a meter to tens

of meters in thickness and conceal bedrock. Glacial ice has over road the entire area

and has modified the topography. Winters are moderate to cold with typical snow

accumulations of approximately 2-3 meters and the area is generally free from snow

pack between May and October.

2.3 History of work (Ministry of Mines Annual Reports)

1924, King Tut

Development of the King Tut property, situated three quarters of a mile nearer Smithers

than the Henderson, was started by the Milligan Bros. A shaft was sunk 50 feet and

numerous open-cuts put on the vein. Some very high-grade silver ore occurs in the vein,

but substantial ore-shoots have not been discovered. The mineralization is of a similar

type to that of the Henderson.

1927, King Tut

The property was taken under option by John. J. O’Brien in November and a contract for

500 feet of drifting was let which commenced that month. A crosscut was started which

was estimated to penetrate the vein at a depth of 140 feet (pitch) distance) in a distance

of 208 feet. Suitable camp buildings were also erected and an Ingersall Rand portable air

compressor installed.

1928, King Tut

This group owned by R.L. Gale, was under option to J.J. O’Brien and F.H. Taylor during

the year. After carrying out 350 feet of crosscutting and 50 feet of drifting they

relinquished the option.

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1938

Geological Survey of Canada visit and sample taking.

1980’s

Several open cuts nearest the shaft were improved upon by various prospector owners.

2012

Sample taking Lions Gate Minerals

2013

Physical survey of previous development and reconnaissance geophysics by current

owners.

2.4 Regional Geology

Hudson Bay Mountain is underlain by bedded Jurassic and Cretaceous sedimentary and

volcanic rocks of the Skeena Group. During an orogenic event near the end of the

Cretaceous period Skeena Group rocks were intruded by porphyritic granodiorite and

quartz monzonite stocks of the Bulkley Intrusive Group. Significant mineral occurrences

associated with this intrusive group include porphyry style molybdenum and poly-

metallic veins. Intensified doming and uplift of Hudson Bay Mountain itself during the

emplacement of porphyries produced both concentric and radial structures with respect

to the intrusive center. Intrusion of mafic dykes and a series of felsic stocks and dykes

and fissure type vein deposits closely follow the formation of and are localized by the

radial structures. These are often displaced by concentric faults or reactivated

northwesterly trending high angle normal faults. An associated hydrothermal system

left a well developed mineral zoning pattern (Kirkham, 1969). Central to the zone is the

Davidson molybdenum deposit. The molybdenum zone is followed outward by a barren

zone in which quartz veins carry few sulphide minerals, followed next by an

intermediate zone in which pyrrohtite, sphalerite and arsenopyrite are relatively

abundant, and followed finally by an outer zone of veins that may include various

amounts of pyrite, arsenopyrite, sphalerite, galena, tetrahedrite, bournonite, pyragyrite,

marcasite and other minerals. Best known examples of the poly-metallic Ag-Pb-Zn vein

type systems are in and near the former Duthie mine on the western side of Hudson Bay

Mountain. The Henderson vein was the principle structure in the Duthie camp and was

described as a fairly well defined fracture, but in places split up so as to give it some

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what the appearance of a sheeted zone. There was generally one band of ore from 1 to

2 feet wide and several paralleling stringers. In places the whole working face, 4-5 feet

wide, was sufficiently mineralized to constitute milling ore after the high grade was

sorted out. The metallic minerals present are galena, sphalerite, freibergite, and a little

chalcopyrite; small amounts of ruby silver and native silver had been noted, which are

probably of secondary origin. From much assaying it was evident that the galena of the

vein carried about the same silver content as is general about the district. The grey

copper however was rich in silver belonging to the classification of “freibergite”. Two

analyses of this mineral, as nearly pure as possible to obtain, contained 7,654 oz. Ag and

2.1 oz. Au to the ton (Minister of Mines Annual Report 1923). In 1926 during

development of the Henderson vein a 10 inch wide section of solid ruby silver was

encountered (Minister of Mines Annual Report 1926).

2.5 Property Geology

The Luxore claims are underlain by volcanic rocks, and in the vicinity of the historical

workings rhyolite, andesite, tuff and andesite flow breccias are the predominant types.

A sheared zone ranging from 30 cm. to 120 cm. in width has been traced on surface by

open cuts and a 15 meter deep shaft for about 150 meters. A small mountain stream

and ravine runs parallel to the shearing which strikes north 65 to 70 degrees east and

dips from 70 degrees southeast to 70 degrees northwest. In general the zone is very

sparsely mineralized and highly gossaned with black oxide. In most places the host rock

is rhyolite or andesite, is altered and bleached, but contains only a little pyrite, siderite,

and arsenopyrite. However beside the shaft dump there is a small collection of

specimens comprised of massive “Henderson style” galena, sphalerite and tetrahedrite

mineralization. These specimens may have been cobbed from vein material extracted

from the shaft and probably contain a high percentage of silver as noted by the visiting

engineer in 1924. A grab sample taken from the shaft dump by Lions Gate in 2012

contained 7058g/t Ag verifying the high grade nature of mineralization at this location

and is likely to be in part grey-copper (freibergite). Underground the adit passes though

32 meters of tuff breccias and then enters a zone of rhyolite and andesite flows. The

contact of the flows and tuff breccias strikes north 40 degrees east and dips 35 degrees

southeast. A sheared zone is intersected at 96.2 meters from the adit portal and is

followed by a 20 meter drift to the northeast. Here it dips 88 degrees northwest and is

very sparsely mineralized. In places it carries 1 to 2 percent of arsenopyrite. A 30 cm

channel sample taken across the shear at the intersection of the cross cut and drift

assayed Au trace, Ag 0.32 oz. a ton (Kindle, 1954). Trace amounts of Sphalerite and

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euhedral arsenopyrite occur on fractures within the rhyolite host rock on the sidewalls

near the end of the crosscut.

3.0 2013 Physical and Geophysical Survey

The following is a record of the surveys performed on the Luxore claim during the

period October 10 and October 28, 2013

4.0 Summary Physical Survey

Physical locations of the historical workings were identified and mapped to the NAD 83

Grid. The orientation and dimensions of the adit-drift were confirmed and correlated to

surface workings in plan view.

4.1 Physical Survey Design and Orientation

A physical survey was conducted to determine the relative locations of points and Hubs

established on the property and the location and orientation of historical workings

including pits, trench’s, open cuts as well as the shaft and adit-drift. Hubs will be used as

a means to control layers of geological and geophysical data as they are collected for

precise correlation. Since the structures sought (ore shoots) if present are predictably

small precision surveys are required to increase the possibility of their detection. A

transit-stadia method was employed during the survey as a rapid and accurate means to

determine elevations and horizontal locations of stations or various features for

plotting. Equipment used consisted of a theodolite with telescope equipped with two

horizontal stadia hairs and a graduated stadia rod. Distance from the theodolite and rod

is a function of the apparent location of the stadia hairs on the rod which is held

vertically when observed thru the theodolite telescope. Horizontal and vertical angles

measured by the theodolite along with the stadia determined distance between stations

were recorded. Upon reducing the data 3 dimensional cartesian coordinates defining

locations of each feature can be assigned. The survey began by establishing two Hubs

tangent to the Duthie mine access road where their positions and azimuth could be

estimated using Google earth imagery. Then the survey was continued from the first

hub to the map area. A map area was established that included the features of interest

and for future control sufficient Hubs were surveyed within it. Nineteen pits, open cuts

and trenchs, one shaft and one adit were located by transit-stadia survey. Handheld GPS

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readings were recorded at various locations to aid in translating survey coordinates to

the UTM grid. The azimuth of the adit-crosscut was determined by surveying the

orientation of a string line extended to the back end while the distance was chained.

Figure 2 Map Area Transit-Stadia Hubs and Physical Feature Locations

4.2 Discussion

Data from the physical survey was plotted to Google earth imagery and UTM NAD 83

coordinates assigned to the surveyed stations based upon their relative locations as

determined in the field. It was found that the shaft is visible in the imagery and can be

used as a bench mark to accurately pin stations in the map area to the UTM grid. A final

adjustment might include a slight rotation of the data about the shaft but this

refinement is not required. Assuming that the King Tut shear zone strikes through the

shaft and its relative location underground 10 meters north of the shaft and the vertical

separation between the surface showing and where it appears in the back of the drift is

taken into account the average dip of the shear at that location is approximately 80

9

Luxore 2013 Hub and Physical Feature Locations Determined by Transit-Stadia Method K. Coswan – S. Bell

UTM Zone 9 NAD 83

Station Easting Northing Alt(m) Comment 01 605678.0 6069540.0 918.0 Hub 1.0 initial station Duthie road 02 606000.5 6069679.6 1022.8 Hub 2.0 03 605985.7 6069638.5 1003.0 Hub 3.0 04 606009.9 6069644.5 1014.7 Hub 3.5 05 606064.8 6069675.4 1042.1 Hub 4.0 06 606091.5 6069676.0 1042.7 Hub 4.5 07 606109.2 6069726.8 1055.4 Hub 4.7 08 606101.4 6069676.3 1042.7 Hub 5.0 09 606118.6 6069676.4 1041.9 Hub 5.1 10 606132.4 6069657.8 1034.1 Hub 5.2 11 606163.8 6069616.3 997.8 Hub 5.3 on brow of adit 12 606169.3 6069609.0 990.7 Hub 5.4 13 606170.4 6069607.5 990.6 Hub 5.5 14 606171.5 6069606.0 990.3 Hub 5.6 15 606171.2 6069716.5 1048.5 Hub 6.0 next to shaft 16 606207.0 6069736.1 1062.5 Hub 7.0 17 606240.5 6069749.9 1074.4 Hub 8.0 18 606251.1 6069786.0 1076.6 Hub 9.0 19 606166.2 6069613.0 992.6 Nail A 20 606167.7 6069609.9 991.0 Nail B 21 606170.5 6069603.9 992.8 Nail C 22 605988.1 6069633.9 1003.1 Tr #1 East 23 605984.1 6069635.2 1000.5 Tr #1 West 24 606011.2 6069637.9 1012.3 Tr #2 North 25 606013.1 6069632.6 1011.3 Tr #2 South end of trench 1m NE of stn. 26 606031.7 6069648.0 1022.3 Tr #3 North 2mx13m @ 125 deg 27 606039.5 6069641.5 1023.1 Tr #3 South end of trench 2m NE of stn. 28 606048.5 6069648.9 1027.6 Tr #4 North 1mx3m @ 150 deg 29 606053.5 6069660.7 1033.6 Tr #5 North 1mx3m @ 125 deg 30 606057.8 6069657.5 1033.6 Tr #6 North 2mx5m @135 deg 31 606070.9 6069662.9 1038.2 Tr #7 North 2mx5m @165 deg 32 606073.3 6069658.4 1038.0 Tr #7 South 33 606083.9 6069663.9 1039.8 Tr #8 Center 1mx2m @ 160 deg 34 606088.4 6069668.4 1041.0 Tr #9 Center 1mx1m 35 606097.2 6069669.0 1041.2 Tr #10 Center 1mx1m 36 606091.9 6069679.3 1041.4 Tr #11 Center 2mx2m 37 606109.7 6069686.7 1045.0 Tr #12 North 2mx5m @ 170 deg 38 606110.3 6069682.2 1043.9 Tr #12 South 39 606111.7 6069678.0 1042.9 Tr #13 North 1.5mx6m @ 170 deg 40 606113.4 6069672.6 1040.8 Tr #13 South 41 606142.4 6069694.9 1043.4 Tr #14 Center 2mx3m @ 180 deg 42 606161.4 6069709.4 1046.8 Tr #15 North 1mx4m @ 150 deg 43 606162.8 6069706.4 1045.5 Tr #15 South 44 606159.3 6069710.1 1047.2 Tr #15b Center 1mx1.5m @ 165 deg 45 606188.6 6069735.1 1054.6 Tr #16 North 2mx6m @ 125 deg 46 606194.5 6069732.0 1053.8 Tr #16 South 47 606187.5 6069756.8 1061.4 Tr #17 Center 1mx3m @ 75, 1mx2m @ 320 48 606279.8 6069792.3 1078.2 Tr #18 Center 1mx1m 49 606246.5 6069797.0 1077.8 Tr #19 Center 2mx2m 50 606174.0 6069714.0 1047.2 shaft center line East 51 606177.7 6069716.2 1047.3 shaft center line West 52 606184.2 6069757.7 1062.6 gulley center topo lineament

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degrees toward the northwest. This agrees with the 88 degrees dip observed

underground and suggests a slight steepening of 8 degrees dip with depth over the

interval. There may be a slight inflection point in the structure near this location

creating conditions favorable for Duthie style open space ore deposition. At 80 degrees

dip the zone would have disappeared into the sidewall of the 2 meter wide shaft

collared over it at a depth greater than 15 meters. This may explain why the shaft was

not deepened further to explore the structure and the decision was made to access the

zone for testing by a crosscut.

4.3 Recommendations

Review physical data and evaluate the positioning of historical workings with respect to

the trend of mineralization, geology, topography and expected variations in the dip of

the King Tut shear zone. Install permanent markers at important survey Hubs. Tie in the

map area to the closest crown grant corner post.

5.0 Summary Geophysical Survey

A reconnaissance vertical field magnetic survey was carried out on the Luxore claims to

assess the potential of the terrain and the use of a handheld magnetometer as an aid to

mapping rock units and structures in the vicinity of Minfile showing 93L-087. The work

was performed by the claim owners and included .350 line kilo-meters of

reconnaissance style geophysical survey. One narrow high amplitude magnetic anomaly

was profiled at station 0+97 meters. A VLF-EM (very low frequency electromagnetic)

survey conducted along the same line detected no EM anomalies that could be

attributed to sulphide mineralization.

5.1 Geophysical Theory (magnetic)

Magnetic surveying is one of the oldest and best understood geophysical methods and

can be used as a direct detection method to locate certain types of ores that produce

distortions within the earth’s magnetic field such as magnetite, ilmenite and pyrrhotite

bearing sulphide deposits. Ore bearing formations and geologic features such as faults,

contacts and intrusions may also be mapped using the magnetic method. Detection of

these features requires that there is a difference in the magnetic susceptibility of the

feature and the susceptibility of its host rock. Susceptibility depends upon the content

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of ferromagnetic minerals the most important of which is magnetite due to its large

susceptibility and widespread occurrence. The susceptibility of a host rock is relevant

since as the content of ferromagnetic minerals in rock formations vary back ground

magnetic anomalies which may mask an anomaly caused by a deep seated or weakly

magnetic ore are present. If an individual ore body is to be detected magnetically the

ore must have susceptibility such that it acquires a magnetization strong enough to

distort the earth’s magnetic field to an extent that the distortion creates an anomaly

that can be detected by the measurements of a magnetometer. Field measurements

can be conveniently acquired using a handheld magnetometer however precautions

must be taken to collect quality data by removing the effects of instrument drift and

diurnal variations of the earth’s magnetic field. The procedure to remove such effects is

to periodically repeat a reading at a base station. Changed readings include diurnal

variation and instrument drift. Assuming a change took place at a constant rate during

the time between readings a proportionate correction can be applied to all readings

taken during this interval. A fluxgate type magnetometer measures the relative

magnitude of the vertical component of the earth’s magnetic field which is interpreted

to deduce the geometry of a magnetic body causing a set of anomalies. Since there are

an infinite number of distributions of magnetization that can be found to explain a set of

magnetic observations magnetic observations alone cannot unambiguously be used to

determine a body’s structure. In practice plausible interpretations are possible by

considering geological information in conjunction with the observed magnetic data. To

aid interpretation tabulated magnetic data can be displayed as contours on a plan or as

a profile representing a section.

5.2 Geophysical Theory (VLF-EM) very low frequency electromagnetic

Remote VLF communication transmitters radiate primary oscillating horizontal magnetic

fields. When these fields intersect dipping conductive bodies in the ground secondary

fields are created. These secondary fields combine with the primary field such that the

total field is tilted locally on either side of a local conductor. The amount of tilt

measured is proportional to the vertical real (in phase) component of the total field. Due

to the resistive nature of all conductors the secondary field experiences a small phase

shift in the presence of a good conductor and a larger one in the case of a poor

conductor. An EM-16 receiver measures both the real (in phase) and quadrature (out of

phase) components of the vertical secondary field. Negative quadrature could indicate a

conductor at depth while surface features usually display positive quadrature. Since the

magnitude of the real component for a conductor decreases proportionately with its

depth of burial and with poorer conductivity this parameter in conjunction with the

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quadrature response is an indication of the quality of a conductor. Furthermore weak

conductors generally create a fair amount of positive quadrature following the inphase

polarity. Where there are local concentrations of highly conductive sulphides in a fault

or shear zone for example the quadrature become negative. Conductor locations are

determined by noting the direction of the tilted total field which can be visualized after

the tilt is plotted in profile. Conductors lie beneath a cross over formed where the tilt

angle changes from positive to negative. To take a reading the instrument is first

oriented parallel to the VLF station signals horizontal magnetic field which is 90 degrees

from the station direction. Then for example if facing approximately east along a survey

line the instrument is rotated while adjusting a compensation dial to null the signal. In

this position the instruments inclinometer reading is a measure of the secondary field /

primary field as a percentage. The dip or tilt angle is calculated by taking the arctangent

of the percentage reading and dividing by 100. While facing east a positive to negative

west to east crossover defines a conductor location. Percent quadrature is indicated

directly by the dial adjusted to null the signal. The 24.8 kilo hertz signal from the Seattle

VLF station was acquired to ensure maximum coupling with north trending conductors.

5.3 Geophysical Survey Design and Orientation

An east west survey line was established near the top of the map area, 78 meters north

of the shaft. Station 0+00, the base station is at survey hub #9, UTM zone 9, grid

coordinates 6069786 N x 606251 E. Station numbers increase toward the west with

spacing between stations picketed with survey control at 25 meter intervals. Readings

were taken at each station and at intermediate stations to further define anomalies.

The east west survey line cross cuts stratigraphy and the data reflects the relative

magnetic susceptibility of the underlying rock units which could be an aid to mapping

them in overburden covered terrain. A Scintrex MF-2 flux gate magnetometer was used

during the course of the magnetic survey. Electromagnetic data was collected at each

station with a Geonics EM-16 VLF-EM receiver to detect potential sulphide bearing

conductors.

5.3 Geophysical Survey Discussion and Results

No corrections to the magnetic data were required to correct for instrument drift or

diurnal variations. A narrow high amplitude anomaly was detected centered at station

0+97, map coordinates 606154E, 6069783N. The anomaly consists of two peaks

separated by 25 meters the larger of the two at station 0+97 is 3 times back ground and

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falls of rapidly to the west (See magnetic profile on page 14). There is not enough

information at this juncture to speculate regarding the exact nature of the causative

body. It is most likely a contact between two rock units where there is a concentration

of magnetite however it could possibly be a mafic dyke or other structure such as a

pyrrhotite or magnetite bearing vein or even a magnetite bearing boulder in the

overburden. The overburden was inspected in the vicinity of the anomaly but no highly

magnetic or mineralized float was found. It is not likely a cultural feature since there is

no evidence of scrap metal or pipelines nearby. The anomalies close proximity to known

mineralization and that the trough (low) between the two peaks is centered over a

topographic low that trends toward the shaft area is suspicious. No significant VLF

anomalies are coincident with the magnetic anomaly or indicated along other portions

of the line surveyed. (See EM profile on page 15). However since sphalerite is a non

conductive sulphide the lack of a conductor does not preclude its presence. Toward the

end of the line there is a topographic effect associated with a steep cliff resulting in

more negative quadrature.

Geophysical Survey Line Station Locations UTM Coordinates Zone 9 at 6069786 North

Station Easting

0.0 606251.012.5 606238.525.0 606226.037.5 606213.550.0 606201.062.5 606188.575.0 606176.087.5 606163.5100.0 606151.0112.5 606138.5125.0 606126.0137.5 606113.5150.0 606101.0162.5 606088.5175.0 606076.0187.5 606063.5200.0 606051.0212.5 606038.5225.0 606026.0237.5 606013.5250.0 606001.0262.5 605988.5275.0 605976.0287.5 605963.5300.0 605951.0312.5 605938.5325.0 605926.0337.5 605913.5350.0 605901.0

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Figure 4 Magnetic profile, horizontal axis in meters and vertical axis equal to vertical magnetic field in gammas.

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Figure 5 VLF-EM profile, vertical axis in degrees dip of the in-phase field and percent quadrature.

-30

-25

-20

-15

-10

-5

0

5

10

15

20

Station Meters

Inphase

Qradrature

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5.3 Recommendations

Further magnetic work at the Luxore site is recommended to determine the nature of

the causative body. This can be achieved by surveying east-west lines established north

and south of the anomalous zone to determine any lateral extents. Bedrock occurrences

should be carefully prospected, mapped and correlated to the geophysical results to

determine if the causative body is a rock unit or a structure. Additional lines should be

run north and south over the trend of the known mineralization to see if it can be traced

by its magnetic signature. An electromagnetic survey designed to detect narrow

conductive sulphide bearing faults or shears known to occur on the property and an

induced polarization survey to detect disseminated sulphide alteration zones should be

considered.

6.0 Conclusions

Examination of the physical data for indications of changes in attitude or direction of

the known mineralization could also help direct the focus of exploration. Due to their

relative positions it appears that the shear zone observed in open cuts close to the shaft

is almost certainly the surface expression of the zone located underground. A possibility

exists however that the structure in the shaft from surface flattens dramatically to the

northwest and that the crosscut was not advanced far enough to intersect it. A

flattening of the dip to more than 68 degrees would be required. This is not outside the

realm of possibilities since historical observations indicate that elsewhere dips vary

between 70 degrees southwest to 70 degrees northwest. A flattening of the dip to 65

degrees would locate a potential ore shoot 4 meters beyond the end of the crosscut. If

this were the case the adit is in the footwall and the structure observed underground is

not the King Tut. This would explain the lack of values in the underground structure.

Perhaps mineralization observed at the end of the adit signals the presence of the King

Tut shear beyond the excavation. This theory could be tested by drilling a short jack leg

hole in that direction from the underground or proved more easily from surface with a

small diamond drill. On surface it is unclear exactly how far the zone has been traced to

the southwest. Natural backfilling of the trenches over time has obscured exposures.

The physical plan serves as a guide to select which excavations can be improved upon. A

reconnaissance magnetic survey suggests that the technique should be employed as an

aid to detect structures in the underlying bedrock that may have influenced the

distribution and concentration of ore bearing fluids and the formation of an ore shoot.

There is a possibility that an economic ore shoot does occur within the map area

however more data is needed to assign a probability.

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Photo 1 Wild T-16 set up at hub 5.1

Photo 2 Typical 90 year old trench in overburden (trench #1)

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Photo 3 Trench #19 in solid rock

Photo 4 King Tut shaft circa 1924

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Photo 5 Looking up cut line above brow of King Tut portal

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Photo 6 K. Coswan adjusting line into King Tut x-cut

Photo 7 S. Bell at portal entrance to King Tut X-cut

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Photo 8 King Tut x-cut

Photo 9 Geological Survey of Canada was here in 1938 and again in 1942

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2013 Statement of Costs Luxore Physical and Reconnaissance Geophysical Survey

Project completed from October 10 to October 28, 2013

Date Item Description Crew Days Cost

Field crew: K. Coswan, S. Bell

Oct. 17 Mobilization move 2 each 4x4 trucks and camp to site 2 0.5 $250.00

Oct. 18 Survey prepare access 2 1 $1,000.00

plan survey traverse and hub locations

clear brush from traverse line of sight

Oct. 19 Survey establish tangent to access road 2 1 $1,000.00

hubs # 1, 2, 3, 4, 5, 4.5 ,4.7, and 5.1

trenches 1-11

Oct. 20 Survey hubs # 6, 7, 8 and 9 2 1 $1,000.00

trenches 12-19

data reduction

Oct. 21 Survey hubs # 5.2, 5.3 ,5.4 and 5.7 2 1 $1,000.00

clear brush from traverse line of sight

Oct. 22 Survey excavate adit portal for safe ingress 2 1 $1,000.00

examine U/G workings

bar down loose

run line to end of x-cut

survey x-cut and drift

Oct. 23 Survey establish line for geophysics 2 1 $1,000.00

record magnetometer and VLF-EM data

locate and tie in White Swan crown grant

Oct.24 Fieldwork prospect overburden at magnetic anomaly 2 1 no charge

examine remainder of claim group for

additional artisanal workings

Oct. 25 Demobilization move 2 each 4x4 trucks and camp off site 2 0.5 $250.00

Transportation 2 each 4x4 truck plus camper 7 $700.00

Vehicle (km) 768 $384.00

Supplies survey stakes, flagging, batteries etc. $67.00

report preparation $1,500.00

Total value of work

$9,151

26

Qualifications:

K. Coswan

This is to certify that K. Coswan is a graduate of the University of British Columbia at

Vancouver, British Columbia with a Bachelor of Science degree (1972), Geophysics

Major and attended the M.Eng. program at UBC, 1993-94.

S. Bell

This is to certify that S. Bell is a graduate of Queen’s University at Kingston, Ontario,

with a Bachelor of Science degree in Mining Engineering (1985) and attended the faculty

of Geological Engineering at Queen’s University, 1988-89.