B y R. H. JANES, P .Eng.

REPORT ON MINERAL LEASE 94,

SIMILKAMEEN M I N I N G D I V I S I O N

B R I T I S H COLUMBIA

49" 25 ' , 121" 05' ( 9 2 H - 6 E )

.FOR

S I L V E R SADDLE M I N E S LTD.

December 18, 1985

CONTENTS

SUMMARY J

INTRODUCTION /

CONCLUSIONS

RECOMMENDATIONS J

HISTORY AND WORK DONE

REGIONAL GEOLOGY .-

GEOLOGY OF MINERAL LEASE 94 AND SURROUNDING AREA J’

GEOTECHNICAL SURVEYS

V E I N SYSTEMS

REFERENCES

CERTIFICATE

APPENDICES % J

I D r i l l logs, H o l e s 85-2,-3 a n d -4 I 1 A s s a y C e r t i f i c a t e s d

FIGURES

LOCATION

PROPERTY

REGIONAL GEOLOGY

GEOLOGY OF SUMMIT CAMP

VLF CONDUCTORS AND SURFACE WORKINGS

GEOCHEMICAL S O I L ANOMALIES AND SURFACE WORKINGS

LOWER SHOWING EAST, D R I L L HOLES & GEOLOGY

LOWER SHOWING EAST, GEOLOGY

LOWER SHOWING WEST, GEOLOGY

PORTAL SAMPLE D E T A I L

2,

21

2L

F igu re 1 /’

II 2 /

3 /

4,

I‘ 5,

I’ 6 ,/

I’ 7 /

I’ 8 .

g J

10,

- 1 -

SUMMARY ~ ~~

The Summit Camp i s charac ter ized by severa l rough ly east-west t r e n d i n g f a u l t

systems which a r e l o c a l l y and v a r i a b l y m ine ra l i zed w i t h s i l v e r , z inc , l ead

and i r o n sulphides, qua r t z and carbonates. Treasure Mountain hos ts severa l

smal l (30m. x 0.5m. x ? ) w e l l m ine ra l i zed "shoots" which were mos t l y h i g h graded. A l a r g e r p o t e n t i a l o reshoo t i s be l i eved t o have been found t h i s year .

Previous exp lo ra t i on on Minera l Lease 94 i n d i c a t e s t h e presence of t h r e e minera l i zed f a u l t systems.

De ta i l ed surface e x p l o r a t i o n o f these f a u l t systems employing VLF surveys and t rench ing t o search f o r t he poss ib le occurrence o f a d d i t i o n a l p o t e n t i a l

oreshoots i s mer i ted. f i r s t phase o f $100,000 inc ludes d e t a i l e d sur face e x p l o r a t i o n and diamond

d r i l l i n g o f the p o t e n t i a l o re shoot. d r i l l i n g o f any a d d i t i o n a l p o t e n t i a l o r e shoots found.

Current work has uncovered a p o t e n t i a l o reshoo t .

A two phased e x p l o r a t i o n program i s recommended. The

The second phase o f $110,000 i s fo r diamond

INTRODUCTION ~~

Peter N. Wrede, Pres ident o f S i l v e r Saddle Mines Ltd. , requested Janes t o examine and r e p o r t on Minera l Lease 94 and surrounding ground.

the lease and area f o r t h r e e days, 17 t o 19 October, 1985. H i l d i n g J . Rodstrom

acted a s guide. i n Vancouver.

Janes v i s i t e d

Rain f e l l most o f t h e t ime. One day was spent l ogg ing co re

The lease i s l oca ted 26 k i lomet res eas t nor theas t o f Hope i n t h e Hozameen Range o f the Cascade Mountains. Access i s v i a an a l l -wea the r f o r e s t r y road runn ing between t h e Coqu iha l la Highway and Highway 3* i n Manning Park and a good prospect road 1.1 k i l omet res

long. The nearest se t t lement by road i s Tulameen, 36 k i lomet res west, v i a

the f o r e s t r y road and t h e Tulameen R i v e r road.

E l e v a t i o n i s between 4,400 and 5,200 fee t .

Topography i s rugged, t h e r e s u l t o f a l p i n e g l a c i a t i o n .

i n the va l leys . Creeks and smal l lakes a r e f requent . Annual p r e c i p i t a t i o n i s 200 cms. o r more, a t l e a s t a t h i r d o f which i s snow. F i e l d work can be conducted from June t o October i n c l u s i v e . T imber - l ine i s between 5,500 and 6,000 f e e t

i n e leva t i on .

Overburden i s ex tens i ve

* The road connect ion t o Highway 3 i s n o t y e t es tab l i shed.

- 2 -

CONCLUSIONS

Fault s t ructures hosting mineralization in the Summit Camp a re extensive. The Treasure Mountain Fault i s t raceable l a t e r a l l y fo r 2,700 metres and ve r t i ca l ly for 300 metres. The Bluebell Fault i s t raceable l a t e r a l l y f o r 1,000 metres and ve r t i ca l ly f o r 300 metres. Ore shoots found to date a r e confined t o Treasure Mountain except f o r the sulphide vein recently exposed by Si lver Saddle Mines L t d . on Mineral Lease 94. Government reports suggest t h a t the biggestoreshoots a re about 30 metres l o n g by h a l f a m e t r e wide, d i p o r plunge dimension i s unknown. varied between 10 t o 25 02s. Ag per t o n (340 to 860 grams Ag per tonne ) , 5-10% Pb and 5-10% Z n .

Grade of these shoots i s believed t o have

Application of up-to-date exploration methods has led t o the discovery of new veins. Foremost of these methods i s VLF-EM. I t i s inexpensive and when done i n de t a i l can provide a n exact "on the spot" location of conductors. Also i t i s not so susceptible tomaskingby overburden a s i s s o i l geochemistry.

Mineralization found t o d a t e merits continued exploration of Mineral Lease 94. Specifically,continued d r i l l i n g of the Lower Showing sulphide vein and explor- a t ion of the three vein systems f o r the presence of potential oreshoots i s

warranted.

The Lower Showing i s c lose t o the property boundary.' Consequently acquis i t ion of ground in t h i s area i s a p r io r i ty .

~ r-

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RECOMMENDATIONS AND BUDGET

A two phased programe i s recomended.

on t h e d iscovery o f a d d i t i o n a l p o t e n t i a l o re shoots.

The s i z e o f t h e second phase i s dependent

Phase I

a.

b.

Obtain o p t i o n on the Amberty and Southern No. 8 1978 F r a c t i o n minera l c la ims.

Run d e t a i l e d VLF survey over conductors l oca ted by MPH Consul t ing.

l i n e s t o be no t more than 25 metres a p a r t and se lec ted f o r ease of t renching.

Where p r a c t i c a l each conductor l o c a t i o n should be t renched as o re shoots

a r e shor t . Where a p o t e n t i a l o re shoot i s i n d i c a t e d t h e v e i n t o be s t r i p p e d and sampled a t i n t e r v a l s o f one and a h a l f metres.

D r i l l Lower Showing su lph ide v e i n on r e g u l a r p a t t e r n t o determine ex ten t and approximate grade, cons ider i n t e r s e c t i o n s a t no more than 15 metres a p a r t i n plane o f ve in .

Survey

c.

d.

Phase I 1

e. D r i l l a d d i t i o n a l p o t e n t i a l o re shoots as found by s t r i p p i n g .

f. Consider open p i t t i n g and h igh-grading o f o re shoots t o p rov ide working

c a p i t a l .

- 4 -

Phase I , Budget

VLF survey, opera tor and inst rument

Trenching w i t h c raw le r mounted back-hoe and

St r ipp ing , Lower Showing su lph ide v e i n p lus

Analyses Engineering

Crew: Transport , 8 weeks O i amond d r i 11 i ng , Lower Showing ,

Camp costs, 8 weeks Admin i s t ra t i on and o f f i c e

b u i l d i n g access roads.

say 2 p o t e n t i a l o re shoots

prospector and ass i s tan t , 8 weeks

300 metres NX core @ $100/m.

TOTAL

Say

Phase 11, Budget

Diamond d r i l l i n g two p o t e n t i a l

Analyses Engineering D r i l l roads Transport, 6 weeks

Crew: prospector and ass i s tan t , 6 weeks Camp costs, 6 weeks Admin i s t ra t i on and O f f i c e

o re shoots, 600 metres NX core @ $100/m.

TOTAL

$ 3,000

7,000

3,000

2,500 5,000

12,000 5,500

30,000 8,500

15,500

$ 92,000 $100,000

$ 60,000

1,000 7,000 4,000

4,000

9,000 6,500

18,500 $110,000

J-

- 5 -

PROPERTY

Relevant p roper t y data i s l i s t e d i n Table I . surrounding c la ims. o b t a i n an o p t i o n on some o f t h e surrounding ground.

I t covers Min ing Lease 94 and P. Wrede advises t h a t nego t ia t i ons a r e i n progress t o

HISTORY AND WORK DONE

I n 1894 Chas. Connel ly s taked the f i r s t c l a i m o f the Summit Camp, t h e Eureka, on Treasure Mountain. Fred S u t t e r i n 1895 d iscovered m ine ra l i zed outcrops t o t h e west on what i s now Min ing Lease 94 and w i t h John Amberty i n t h e f o l l o w i n g year staked t h e Vigo, Lulu, S u t t e r and Sky l i ne c la ims f o r people o f Terre Haute,

Ind iana. A. Jensen staked the S i l v e r Ch ie f on Treasure Mountain i n 1906.

The f i r s t work o f consequence was done on t h e S i l v e r Ch ie f group by t h e Treasure Mountain Min ing Company formed i n 1909 o r 1910 by W. Oornberg.

775 f e e t o f crosscuts ( two) and 395 o f d r i f t s were completed by about 1912.

Several o f the ve ins t o t h e west i n c l u d i n g those on t h e Morning S t a r and Blue B e l l c la ims had been explored by t rench ing and s h o r t a d i t s e.g. the upper

a d i t ( a d i t A, F igures 5 and 6) on t h e B l u e b e l l ve in . work ceased du r ing the Great War. w i t h t h e Mary E. M in ing Company which i n 1926 was taken over by J u l i a n Merger

Mines, Incorpora ted o f Los Angeles which c o n t r o l l e d Cascade Consol idated S i l v e r Min ing Company (Mary E. M in ing Company) and Blue B e l l S i l v e r Mine (Cap i ta l M in ing Company). These companies cont inued underground development a t Treasure

Mountain ( restaked as t h e Cascade group) and s e t up machinery a t the B luebe l l a d i t . Dur ing 1927 on Treasure Mountain a t about 1,000 f e e t below v e i n outcrop

a c rosscu t was begun and d r i v e n 1,258 f e e t t o t h e ve ins, 300 f e e t o f c rosscuts exp lo red the ve ins . Resu l ts were d i sappo in t i ng . On t h e Blue B e l l c l a i m a

c rosscut and d r i f t t o t a l l i n g 379 f e e t explored t h e B l u e b e l l v e i n ( a d i t D, F igures

5 and 6 ) . suspended work.

exp lo red on t h e N icke l P la te , Queen Bess and Morning S t a r c la ims, a l l w i t h i n t h e immediate area o f t h e present min ing lease.

Some

Development Dornberg i n s t i g a t e d a r e v i v a l o f i n t e r e s t

Resul ts here were a l s o d i sappo in t i ng and J u l i a n Merger Mines A t t h i s t ime repo r t s were made on m ine ra l i zed ve ins being

Some 196 f e e t o f t unne l i ng

llWFRllD LO. YIVERAL C W Y

AL wnam WST

SILVER SADDLE MINES LTD. MINERAL LEASE 94

SIMILKAMEEN M.D., B.C. PROPERTY MAP

Figure 2 R J . Janes Dec.1985

eio R ~ N G E II P U S f4l

--

r"".

TABLE I CLAIM DETAIL

NAME

Minera l Lease 94 (Lo t 130, Summit - 0. 2 M.C. and

e o t 132,Blue B e l l M.C.)

L o t 94, Sky1 i n e

L o t 93, Su t te r

h b e r t y

Southern No. 8 1978 F rac t i on

s kY

Spike

Argen tum

Queen Bess 2

RECORD NO.

738(9)

737(9)

1671 (7 )

461(10)

1128(8)

121 5 ( 10)

2562( 11 )

2654(6)

DATE OF LEASE E X P I R Y DATE AREA (HECTARES) OR RECORD

12 Jan. 1971 Rental pa id 28.46 up t o 12 Jan. 1986

27 Sept.1979 27 Sept.1990 18.02

27 Sept.1979 27 Sept.1990 20.92

9 J u l y 1971 9 J u l y 1990 N 75

12 Oct. 1978 12 Oct. 1989 ?

18 Aug. 1980 18 Aug. 1990 'v 175

27 Oct. 1980 12 Oct. 1990 N 175

5 Nov. 1984 - 437.5

10 June 1985 10 June 1986 500

OWNERSHIP

S i l v e r Saddle Mines L td .

Unicorn Resources L td .

Unicorn Resources Ltd.

Unicorn Resources L td . I

and/or Tarbo Resources Ltd. m

Ar thur 0. Thomas, Pr ince ton ,

Unicorn Resources L td .

Unicorn Resources Ltd.

S i l v e r Saddle Mines L t d

Dan Cardinal , Hope

Note: - = approximately

- 7 -

was repor ted on t h e Morning Star . Mines Ltd. t o f u r t h e r develop the Queen Bess c la im.

( a d i t C (?) , F igures 5 and 6 was dr iven) . I n 1929 S i l v e r King Mines L td . acqui red c la ims he ld by Dornberg. C. J u l i a n and associated companies.

development and s top ing was done and th ree car- loads o f s o r t e d o re were shipped t o t h e T r a i l smelter. Summit Camp Mines Ltd. drove 237 f e e t o f c rosscut and d r i f t s f o l l o w i n g a v e i n on the Queen Bess claim, s i t u a t e d west of the Blue B e l l c l a i m and restaked a t a l a t e r da te as t h e Rook Eleven c la im. This i s

known as the H a l l ' s o r Tula prospect. d r i l l i n g was done on the Blue B e l l c l a i m i n an e f f o r t t o t r a c e t h e Treasure

Mountain Fau l t . Resu l ts were inconc lus ive . S i l v e r King Min ing Co. e rec ted a smal l m i l l us ing W i l f l e y tab les i n 1930, e s s e n t i a l l y t o e l i m i n a t e s p h a l e r i t e f rom t h e concentrates. F l o t a t i o n c e l l s were in t roduced i n 1931 and a b a l l m i l l i n 1932. About 130 tons o f l ead concentrates were shipped i n 1932.

I n 1928 A. Jensen formed Summit Camp

A c rosscu t 150 f e e t long

Underground

A t some t ime i n the 1920's diamond

A c t i v i t i e s decreased from 1932 t o 1950 when S i l v e r H i l l Mines L td . op t ioned

the S i l v e r Chief and Eureka c l a i m groups and d i d a l i m i t e d amount o f work. This company erec ted a 50 t o n per day m i l l near t h e p o r t a l o f t h e lowest a d i t on t h e S i l v e r Chief c la ims. cont inued dur ing 1955 and 1956. The m i l l s t a r t e d up i n December 1956. There was no produc t ion i n 1957 and t h e m i l l was removed. I n 1970 Copper Range Exp lo ra t i on

Company, Inc. conducted an ex tens ive appra isa l i n c l u d i n g underground mapping and sampling o f t h e Treasure Mountain p roper t i es .

P. Wrede acqui red Minera l Lease 94 i n 1971. conducted an e x p l o r a t i o n program on t h e western sec to r o f t h e Summit Camp which inc luded Minera l Lease 94 on opt ion.

o f a g r i d w i t h f lagged l i n e s a t 50 metre i n t e r v a l s (22 k i l omet res o f l i n e ) , geochemical s o i l sampling a t 20 metre i n t e r v a l s and magnetic and VLF surveys w i t h s t a t i o n s a t 10 met re i n t e r v a l s . Geological mapping and some t rench ing

was done. completed. lease i n 1984.

Underground development work was commenced and

I n 1983 Unicorn Resources L td .

This program inc luded establ ishment

E igh t diamond d r i l l ho les t o t a l l i n g 1,641 f e e t o f BQ w i r e l i n e were

Unicorn d i d n o t con t inue work and r e l i n q u i s h e d the o p t i o n on t h e

- 8 -

Si lver Saddle Mines Ltd. commenced work on the lease in 1984 carrying ou t prospecting, s t r i p p i n g , b u l k sampling, road construction and engineering s tudies for an expenditure of $75,000*. Work continued i n 1985, w i t h a n expenditure of $45,000* on diamond d r i l l i n g , s t r ipp ing , prospecting, road building and engineering s tudies .

Production from the area i s as follows:-

S i lver Lead Zinc Property Tons Gold ozs . l l b s . l l b s .

**Silver Chief ? Ni 1 39,558 379,532 88,455 **Eureka 43 N i 1 873 12,825 13,624

***Mining Lease 94 42.25 30 180 1,850 6,930

Note: Production from ML94 i s a bulk sample by SSML, f igure f o r metals are approximate.

REGIONAL GEOLOGY

The Summit camp straddles the nor th northwest trending Pasayton Fault , a s t r i k e s l i p s t ruc ture which forms the contact between two terranes each separately accceted on t o the North American continent d u r i n g Mesozoic time. terrane i s t o the eas t o f the f a u l t . Methow-Tyaughton terrane. and deposited a f t e r accretion i s the Pasayten Formation of Lower Cretaceous age composed of some 2,500 metres of sandstone, conglomerate and pe l i t e . d i o r i t e of Lower Cretaceous or older age intrudes these sediments. o f the Tertiary Coquihalla Group, some 1,200 metres th ick , overl ies the Pasayten Formation and the Pasayten Fault . comprises the Lower t o Middle Jurass ic Ladner Group, some 1,800 metres of p e l i t e and volcanic sandstone, conformably overlain by the Upper Jurass ic Dewdney Creek Group, some 3,350 metres of volcanic sandstone and pe l i t e . Coarse grained massive grani te and granodiorite of the Mid-Tertiary Needle Peak Pluton and apophyses intrude the l a t t e r groups. T h i s in t rus ive and the Coquihalla Group may be p a r t o f the same igneous event.

The Quesnellia To the west and thrust against i t i s the

Lying unconformably upon the Quesnellia terrane

Quartz Volcanics

Here the Methow-Tyaughton terrane

* as advised by P. Wrede ** J . M . Black, BCMM, A n n . Rept. 1952

*** From Analysis Ce r t i f i ca t e 10 10281, dated 28 Sep. '84, Cominco, on shipment o f 12.56 tons from Si lver Saddle Mines L td .

101.11,,*.....L..-dn.r.lrdI..I,,la.o'-. ........... m0ne.l- . M. . . . . . . . . . . . . .a ........................... wub,. . . . . . . . . . . . .................. ,oh".-. I.-. ............ "8

- 9 -

TABLE I1

HISTORY OF EVENTS IN SUMMIT CAMP AREA

AGE

Pleistocene -

Miocene or

earlier

Eocene

Middle Cretaceous

Lower Cretaceous

Lower Cretaceous or older

Age ?

EVENT

Glaciation, Cordilleran ice sheet. Small scale faulting offsetting vein systems. Sulphide - quartz - carbonate mineralization along reactivated faults.

Intrusion of Needle Peak granodiorite pluton and extrusion of Coquihal la Group volcanics. Intrusion of feldspar dykes along ENE-WSW to E-W striking faults.

Development of ENE-WSW to E-W striking faults, may be related to Fraser River Wrench Fault System. Pasayten Fault System.

Transportation of western terranes, including Quesnellia, north on Kula plate t o approximate present position. Coincident major strike slip faulting. Folding and development of slaty cleavage. Accretion of Methow-Tyaughton terrane, which includes Dewdney Creek Group, onto Quesnellia terrane of North American land mass. Development o f Pasayten Fault.

Deposition of Pasayten Formation on Quesnell ia terrane.

Dislocates

Intrusion of Eagle granodiorite, member of Mount Lytton Complex, into Quesnellia terrane.

Intrusion of diorite bodies into Dewdney Creek Group.

Upper Jurassic

Deposition of Dewdney Creek Group on land mass to south and west (? ) and separate from North American land mass.

- 10 -

Two o the r min ing camps l i e w i t h i n f i v e m i l e s o f t h e Summit Camp.

northwest a r e the Emancipation,Morning S t a r and o the r prospects, p a r t o f t h e

Coquihal la Camp. To t h e n o r t h severa l occurrences a r e s i t u a t e d near t h e

head o f Jim K e l l y Creek.

Small amounts o f su lph ides occur w i t h values i n g o l d and s i l v e r .

To t h e

These c o n s i s t o f qua r t z ve ins i n sch is tose rocks.

GEOLOGY OF MINERAL LEASE 94 AND SURROUNDING AREA

The Summit Camp was f i r s t mapped by C. E. Cairnes i n 1922. Add i t i ona l mapping

was done by J. M. Black i n 1952. D e t a i l e d mapping o f the lease area was done

by MPH Consul t ing L im i ted f o r Unicorn Resources L td . i n 1983.

i s based l a r g e l y on t h e above data.

Minera l Lease 94 i s l oca ted i n the western sec to r o f t h e Summit Camp. For

convenience the Pasayten F a u l t i s taken as t h e d i v i d i n g l i n e between eas t

and west.

The f o l l o w i n g

A h i s t o r i c a l geology t a b l e i s presented.

The Dewdney Creek Group u n d e r l i e s t h e western sec tor .

o f l i g h t grey weather ing vo l can ic sediments i n c l u d i n g t u f f , b recc ia and

agglomerate which amount t o approx imate ly 75 per cen t o f the group.

g e n e r a l l y up t o one metre t h i c k . Fragments range i n s i z e f rom a f r a c t i o n o f

a cent imet re t o a decimetre. Most a r e angu lar b u t the l a r g e r ones tend t o be

rounded. The fragments a r e f i n e gra ined and vo l can ic i n o r i g i n . A r g i l l i t e

and conglomerate a r e in terbedded w i t h t h e vo l can ic sediments. The a r g i l l i t e

i s genera l l y dark grey weather ing t o a l i g h t grey. I t i s t h i n bedded, many

beds a r e less t h a t n one-quarter o f a cent imet re t h i c k .

a r e common.

format ion. Most a r e greenish. These comprise rounded and subangular pebbles

and cobbles i n a tu f faceous m a t r i x . Pebbles and cobbles c o n s i s t most ly o f

t u f f s , f lows and f i n e gra ined i n t r u s i v e s . Disseminated p y r i t e i s

present throughout the format ion.

I t comprises a v a r i e t y

Beds a r e

S o f t sediment s t r u c t u r e s

Conglomerates a r e present ma in l y i n t h e eas tern p a r t o f the

Figure 4 - GEOLOGY OF SUMMIT CAMP From BCMM, Ann.Rept., 1952, by J.M.Black

Approximate boundaries of Mineral Lease 94 outlined

- 11 -

D i o r i t e s i l l s and dykes i n t r u d e the Dewdney Creek Group. a l t e r e d and show development o f c h l o r i t e and carbonate. The l a r g e s t body,

a s i l l , occurs j u s t west of t he Pasayten F a u l t , under l y ing the Why Not F r .

( L o t 1209) and Eureka ( L o t 1210) c la ims.

These a re genera l l y

A f t e r a c c r e t i o n o f t he Methow-Tyaughton te r rane, which inc ludes the Dewdney

Creek Group, t o Quesnel l i a eas t nor theast -west southwest t o east-west s t r i k i n g f a u l t s developed.

and a r e p e r s i s t e n t both l a t e r a l l y and v e r t i c a l l y . One o f these, the Treasure

Mountain F a u l t i s t raceab le on sur face f o r 2,700 metres and v e r t i c a l l y on the S i l v e r Ch ie f c l a i m f o r 300 metres. Width i s up t o s i x metres. Feldspar

prophyry was i n t r u d e d a long some o f t he f a u l t s .

sulphide-quartz-carbonate m i n e r a l i z a t i o n as f r a c t u r e f i l l i n g s and wa l l rock

replacements du r ing r e a c t i v a t i o n o f these f a u l t s .

These may be r e l a t e d t o t h e Fraser R ive r Wrench F a u l t System

A l a t e r igneous event produced

M i n e r a l i z a t i o n cons is t s o f one o r more s t r i n g e r s o r ve ins, p lus v e i n m a t e r i a l

i n pockets and d isseminat ions i n v e i n w a l l s . Veins branch and s p l i t and vary

cons iderab ly i n w id th and a t t i t u d e . I n d i v i d u a l v e i n w id ths r a r e l y exceed

severa l cent imetres b u t do vary up t o around h a l f a metre.

i s genera l l y l e s s than about 30 metres.

veins, m ine ra l i zed w a l l rock, gouge and sha t te red rock may approach two metres.

Sulphides comprise the g rea te r p a r t o f t h e v e i n m a t e r i a l . I r o n r i c h s p h a l e r i t e

and galena a r e prominent, p y r i t e and p y r r h o t i t e a r e l e s s abundant, cha lcopyr i te ,

magneti t e , arsenopyr i t e , t e t r a h e d r i t e and s t i b n i t e a r e sometimes present i n

minor amounts. B lack r e p o r t s t h a t t h e s i l v e r l ead r a t i o i s between two and

th ree ounces o f s i l v e r t o one per c e n t lead.

occurs as a r g e n t i t e conta ined i n the galena. i n s p h a l e r i t e t h a t shows a cadmium t o z i n c r a t i o o f about 1 t o 100.

va lues a r e repo r ted t o be genera l l y l e s s than 1 g. per tonne.

Vein c o n t i n u i t y

An aggregate w i d t h o f minera l i zed

Cairnes suggests t h a t the s i l v e r

B lack r e p o r t s a cadmium conten t Gold

L a t e r f a u l t i n g caused minor o f f s e t t i n g o f t h e ve ins.

systems a r e considered separa te ly i n a f o l l o w i n g sec t i on .

The i n d i v i d u a l v e i n

- 12 -

GEOTECHNICAL SURVEYS

MPH Consul t ing L i m i t e d under c o n t r a c t w i t h Unicorn Resources L td . c a r r i e d o u t

geochemical s o i l , magnetic and very low frequency e lect romagnet ic (VLF-EM) surveys

on most o f Minera l Lease 94, no r the rn h a l f o f L o t 93, eas tern p a r t o f Amberty

minera l c la im,par t of Sky minera l c l a i m and Lo ts 1213 and 1214.

S o i l samples were analysed f o r lead, z i n c and s i l v e r us ing atomic absorpt ion.

MPH Consul t ing s ta tes t h a t lead, z i n c and s i l v e r values i n excess o f tw ice

th resho ld are considered d e f i n i t e l y anomalous and a minimum f o r a contour ing

i n t e r v a l .

responses and low z i n c response. Four zones w i t h anomalously h igh values i n

lead, s i l v e r and z i n c were o u t l i n e d and a f i f t h h igh e x i s t s a long an ou ts ide

l i n e . These a r e summarized i n Table 111.

S o i l samples over known and t e s t e d showings showed lead and s i l v e r

The a p p l i c a t i o n o f VLF surveys t o l o c a t e su lph ide m i n e r a l i z a t i o n i n ve ins and

f a u l t s t ruc tu res i s a proved and acceptable method.

s t a t i o n loca ted a t C u t l e r , Maine were measured us ing a Geonics EM-16 r e c e i v e r . Data was p l o t t e d i n p r o f i l e format showing the in-phase d i p angles i n percent .

Anomalies o f l ess than 10% peak t o peak response were ignored unless these

received support f rom anomalies on ad jacent l i n e s o r f rom o the r geotechnica l

in format ion. Two complex conductor systems were o u t l i n e d . The system A-B o u t l i n e s the v e i n system on which were d r i v e n a d i t s A, B and D and t o the west

co r re la tes w i t h geochemical anomaly Zone 8.

i z a t i o n fo l lowed by t h e C a d i t and i t s form suggests an o f f s e t system of

severa l m inera l i zed east nor theas t s t r i k i n g s t r u c t u r e s which form an east-west

t rend ing zone. Conductor E may represent a separate s t r u c t u r e o r poss ib l y

the no r th nor theas t s t r i k i n g Ridge F a u l t (Black, 1952). A t h i r d conductor

system, t rend ing east-west, t raverses the midd le o f t he eas tern s e c t i o n o f

L o t 130.

and the ve in r e c e n t l y exposed a t t h e Lower showing c o r r e l a t e w i t h t h i s conductor.

A d i t E, Lo t 130,may be o n a c o n t i n u a t i o n o f t h i s v e i n system which has been

o f f s e t t o the nor thwest .

Transmissions f rom t h e

The system C-D o u t l i n e s m ine ra l -

Old dumps, near the c l a i m boundary, c o n t a i n i n g galena and i r o n su lph ides

LOT 130

TABLE I11

ANOMALY NO. (MPH CONSULTING)

Zone 5

6

SUMMARY OF GEOCHEMICAL SOIL ANOAMLIES I N AREA OF MINERAL LEASE 94

LOCATION CLAIM S I Z E

8+50W t o 9+50W Amberty 100m. long 1+50S t o 1+75S M.C. 25m. w i de

DESCRIPTION

I n area o f extens ive overburden. Weak and d i s j o i n t e d pa t te rn .

11tOOW t o 13+50W M.L. 94, 250m. long, Out l ines Queen Bess v e i n otoo t o 2+00s L o t 132 25m. wide, system ( a d i t C). Pa t te rn suggests

open t o southwest presence of another v e i n t o south 1

9+oow t o 11+oow M.L. 94, 200rn. long, 0+50N t o 1+50N Lots 132 l O O m wide

& 130

I

Out l ines B luebe l l v e i n system ( a d i t s A, B & D)

14tOOW t o 19tOOW L o t 93 500m long, Out l ines and extends v e i n system 2+00N t o 2t50N 50m. wide, t o east though extens ion may i n

subs id ia ry zone t o the southeast o u t l i n e s the Ind iana ve in .

open t o the west p a r t be a drainage a f f e c t . A

13tOOW 3+60N t o 3+80N L o t 130 40m. long S i tua ted a t edge o f g r i d .

c o r r e l a t e w i t h conductor t o east . May

Note: Data f rom r e p o r t by MPH Consul t ing, dated 20 September 1983.

- 14 -

The weak ccnductor F ,s i tua ted t o t h e eas t on L o t 1214,correlates w i t h the

Treasure Mountain F a u l t .

Geometrics 6-816 and S c i n t r e x MP-2 magnetometers were used f o r a magnetic survey. This showed a un i fo rm background f i e l d f o r t he area i n the range

57,400 t o 57,500 gammas punctuated by l i n e a r east-west t r e n d i n g anomalies.

A concen t ra t i on o f these occurs i n the no r the rn h a l f o f L o t 132. Here the

anomalies s t r i k e northeast-southwest and p a r a l l e l the s t r i k e of o u t l i n e d

conductors. MPH Consu l t ing i n t e r p r e t s these anomalies as caused by t h i n .

shal low, s u b v e r t i c a l d ipp ing bodies w i t h a v a r i a b l e magnetic minera l content .

Th is i s subs tan t i a ted by the observed presence o f p y r r h o t i t e as a v e i n sulphide.

V E I N SYSTEMS

The combined evidence f rom a d i t s , s t r i p p i n g , geo log i ca l mapping and geotechnical

s tud ies i s i n t e r p r e t e d t o have demonstrated t h e presence o f t h ree v e i n systems

t r a v e r s i n g Minera l Lease 94.

The B l u e b e l l v e i n system i s i n t e r s e c t e d by a d i t s A , B ( Ind iana) and D and has

been fo l l owed on sur face f o r 1,000 metres.

c l e a r l y de f i ned ve ins between l i n e s 10+00 W and 11+50 W. The system has been

o f f s e t t o t h e n o r t h o r r o t a t e d an t i c lockw ise by a se r ies o f n o r t h northwest

s tri k i ng f a u l t s .

S t r i p p i n g by S i l v e r Saddle Mines

The Queen Bess v e i n system t rave rses L o t 132, has been i n t e r s e c t e d by a d i t C

and f a r t h e r t o t h e west probably i n t e r s e c t e d by H a l l ' s (Tu la ) a d i t , a poss ib le

l a t e r a l e x t e n t of 750 metres.

A t h i r d v e i n system t raverses the midd le o f L o t 130.

f rom exposures on t h e Southern No. 8, 1978 Frac t ion , through t h e Lower Showing

ve in, d iscovered by S i l v e r Saddle Mines, t o a d i t E on L o t 130.

I t i s be l i eved t o cont inue

Black shows the Treasure Mountain F a u l t t r a v e r s i n g the southeast corner o f

L o t 132. L i t t l e e x p l o r a t i o n work has been done i n t h i s area.

0 30 60 - S C A L E I N FEET

r

0

\O 5 0 1 0

1 1

- 15 -

Assays and v e i n desc r ip t i ons a r e l i s t e d i n Tables I V , V & VI.

I n fo rma t ion on t h e a t t i t u d e and s i z e o f o reshoots i n the Summit Camp i s

meagre. The M i n i s t e r of Mines, B . C . , Ann. Rpt., 1926 r e f e r r i n g t o Level 2 , S i l v e r Chief working, Treasure Mountain, mentions two ore shoots o c c u r r i n g

e i t h e r s ide of a porphyry dyke. inches wide, t h e o t h e r i s 30 f e e t long, 10 inches wide and extends up d i p f o r

a t l e a s t 25 f e e t . mentions a f o o t w a l l o reshoot 120 f e e t long and about a f o o t wide.

another o re shoot ,cu t by a ra i se , extends 100 f e e t up d i p and i s 2 f e e t wide.

One i s 160 f e e t long and between I and 12

Black (7952) r e f e r r i n g t o Level 3 o f t h e same working West o f t h i s

Surface e x p l o r a t i o n work dur ing 1985 on Treasure Mountain by Huldra S i l v e r I nc . i s be l i eved t o have loca ted oreshoots more ex tens ive than those mentioned.

TABLE I V

CURRENT CLAIM

L o t 132 (91 uebel 1 )

L o t 93 ( S u t t e r )

LOCATION

Stream c u t , between upper and lower a d i t s

Upper a d i t, e l . 5,205 ft.

I n t e r s e c t i ons e a s t o f upper a d i t ( A )

Upper a d i t ( A ) p o r t a l

Lower a d i t (D) e l . 4,990 ft.

Ind iana a d i t ( B ) e l . 5,360 ft.

REFERENCE

Black, 1952 P. 131

I I

MPH I V Table Sept. '83

Janes Oct. '85

Black, 1952 P. 131

Black, 1952

BLUEBELL V E I N SYSTEM

WALL ROCK DESCRIPTION OF VEIN SYSTEM (LODE)

Ag Pb Zn Au Width o z ( s ) / t o n $- % o z / t o n

Q v e i n 1 ft. 1.8 1.1 14.4 - Q s t r i n g e r 1 f t . 2.1 0.6 1.7 - A r g i 11 i t e 4 f t . no sample

Agglomerate Fol lowed f o r 90 ft. Two Q lenses seen, each up t o 3 i n s . wide and few f e e t long, some sulph ides present , low grade, n o t sampl ed.

Brecc ia , cong. DH 83-1: 0.5 metre 2.0 1.1 4.7 - Cong 1 omera t e 83-4: 0.3 I' 0.3 0.2 0.7 - cn

I

d Cong. a rg . 83-2: 0.5 I' 1.1 0.6 7.0 - I I 83-5: 0.3 I ' 21.2 4.4 10.7 - I

Aggl omera t e 7 f t . 7 i n s . 5.5 1.0 4.6 0.001

A r g i 11 i t e S t r i p p i n g by SSM suggests t h a t a d i t passed t h r u main v e i n s t r u c t u r e and d r i f t f o l l o w e d a p a r a l l e l sub- s i d i a r y v e i n marked by gouge, i n c h o r so wide and sparse ly m i n e r a l i z e d . Vein m o s t l y 1 i n . wide i n western s e c t i o n .

Lode p a r t l y exposed f o r 100 ft. up s lope f rom p o r t a l . Vein system c o n s i s t s o f severa l narrow s t r i n g e r s separated by gouge and bleached p y r i t i s e d r o c k . S t r i n g e r s c o n s i s t o f su lph ides and minor carbonate and Q.

P o r t a l : Au - Zn - Pb - - ! ! % Width

41 i n s . 5.8 3.6 7.6 -

TABLE I V (Continued)

CURRENT CLAIM LOCATION REFERENCE WALL ROCK

L o t 93 Ind iana a d i t (B), Black, ( S u t t e r ) 1952 ( Con t I d ) e l . 5,360 ft.

Underneath MPH A l te red dyke Ind iana a d i t Table I V ,

Sept. '83

I nd i a na Janes T u f f ( ? ) a d i t p o r t a l Oct. '85

Rock c u t Janes above Ind iana Oct. '85 a d i t

Shaf t Black, Agg 1 omera t e e l . 5,790 ft. 1952 w i t h t u f f

P. 133 & a r g i l l i t e

DESCRIPTION OF V E I N SYSTEM (LODE)

- ! 9 Width Zn & - Pb - Vein system fo l lowed f o r 240 ft. Veins a few i n s . wide, i n places on ly gouge f i l l e d s l i p s . p y r r h o t i t e ) :

Sampled i s o l a t e d su lph ide lens ( inc ludes

17 i ns . 8.5 4.2 5.3 - Sample 12 ft. from face:

24 i ns . 2.6 1.9 5.0 - DH. 83-6 2.5 metres 0.7 0.5 1.2 -

83-7 0.5 I' 0.4 1.4 0.4 - and 0.9 I' 0.1 1.2 0.2 - I

-1

w

5 ft. 8.4 5.7 11.3 0.010 I

4.5 ft. 8.4 7.7 3.7 0.005

Vein system 15 ins . wide. s t r i n g e r s composed o f sulphides & Q. Gouge and w a l l rock amount t o 50%. Vein system t raced west f o r 500 ft. i n open cu ts . Composed o f v e i n a few ins . wide o r gouge f i l l e d f r a c t u r e . 300 ft. east o f s h a f t a r e several narrow s t r i n g e r s i n zone up t o 3 ft. wide.

Consists o f several

TABLE I V (Continued)

CURRENT CLAIM LOCATION

L o t 93 Trench, 1 OOm. (Shu t te r ) WNW o f

Ind iana a d i t (B) p o r t a l (1 4+70W ,

2+05N)

Trench, 125rn. WNW o f Ind iana a d i t (B) p o r t a l (1 5+00W , 2+1 ON )

4

I I

REFERENCE

MPH Drawing 14, J u l y 1983

WALL ROCK

Volcanic sands tone & a r g i l l i t e

Volcanic sands tone

DESCRIPTION OF V E I N SYSTEM (LODE) Pb - t l s Width -

F a u l t 1.2 metres 16.0 10.6

F a u l t 0.2 metres 5.5 4.8

Zn 1.7 -

1.7

Note: Elevat ions a r e those g iven by Black, 1952.

TABLE V

QUEEN BESS V E I N SYSTEM

CURRENT CLAIM LOCATION

L o t 132 Upper a d i t (B lue B e l l ) e l . 5,435 ft.

II Lower a d i t e l . 5,250 ft. East o f lower a d i t

II

II Lower a d i t

, h b e r t y , west o f L o t 132

II

REFERENCE

Black, 1952 P. 131

MPH Table I V Sept. '83

Janes Oct. '85

Black, 1952

WALL ROCK DESCRIPTION OF V E I N SYSTEM (LODE)

- Fol lowed f o r 15 ft. Not m i n e r a l i zed

A r g i 11 i t e Fol lowed f o r 125 ft. Not m i n e r a l i z e d , about 2 i n s . gouge i n s l i p .

Conglomerate - 1 1 9 - Width Pb - An &I PPm PPm PPm PPb

DH 83-8 0.6 metres 0.8 52 1060 10

A d i t s t a r t e d on two m i n e r a l i z e d shears, 4 f t. a p a r t . Dump m a t e r i a l composed o f a r g i l l i t e , and a l t e r e d i n s t r u s i v e ( d i o r i t e ? ) . s p h a l e r i t e and d isseminated p y r i t e and galena a r e present .

Massive p y r r h o t i t e and

- P i t s show v e i n 12 i n s . wide, i n one p i t s u b p a r a l l e l s t r i n g e r s inc rease w i d t h t o 36 i n s .

Above Hal 1 ' s o r Tu la a d i t 1952

Black,

P. 132

- F a u l t zone 3 ft. wide, severa l s l i p s and v e i n 6 i n s . wide. Vein c a r r i e s su lph ides, p y r i t e i s abundant i n w a l l s o f some s l i p s .

II H a l l ' s o r A r g i 11 i t e Fol lowed f o r 65 f t. Tu la a d i t 84 t u f f Cent ra l p a r t 12 i n s . wide, c o n s i s t s o f v e i n m a t e r i a l e l . 5,530 ft. and p y r i t i s e d bedrock.

East f a c e o f d r i f t : - Pb Zn Au

Width oz(s 7 - t o n X $- oz/ton 10 i n s . 7.6 3.9 15.2 -

Toward west l o d e s p l i t s and l e s s w e l l m i n e r a l i z e d .

TABLE V I

CURRENT CLAIM

L o t 130

L o t 130

Probably on L o t 130, c lose t o eastern boundary

II

L o t 130

LOCATION REFERENCE - WALL ROCK

Lower showing Janes Arg i 11 i t e 3+30N, 8+59W

Lower showi ng , DH 85-2

Dump A 3+30N, 8+80W

Dump B, 3+45N, 8+67W

A d i t E 4+40N, 14+20W

Janes Arg i 11 i t e

MPH , ? Table V I I , Nov. '83

II ?

MPH ? Table V I I , Nov. '83

Southern Vein i n Black, No. 8, 1978 creek bed P. 130 F rac t i on e l . 4,630 ft. ' 52

Arg i 11 i t e ?

DESCRIPTION OF V E I N SYSTEM (LODE)

Sulphide vein, 8-12 i n s . wide, exposed f o r 115 f t . , i n f l o w i n g creek, n o t sampled. Main ly spha le r i t e , galena and p y r i t e w i t h minor quar tz .

I n t e r s e c t i o n a t 80 ft. below surface, Q ve ins and disseminated sulphides, low grade, n o t sampled.

Grab sample, h igh grade galena m i n e r a l i z a t i o n .

I t II II

Galena, p y r i t e 5 p y r r h o t i t e , c h a l c o p y r i t e i n minera l i zed f a u l t zone, approx. 15 cms. wide, grab sample.

Zn Au % oz/ton - Pb Width

0.15111. 0.72 0.5 3.7 0.04

Vein 4-6 i n s . wide, s t r i k e s 20°, d i p s teep ly eastward, composed o f wh i te carbonate, galena and minor spha le r i t e , cha lcopy r i t e , qua r t z and p y r i t e .

5 i n s . 99.4 50.3 5.0 -

- 21 -

REFERENCES

Cairnes, C. E., 1922

Monger, J . W . H., 1969. Geol Sur. Can., Paper 69-47. Monger, J . W . H., 1985 Geol Surv. Can., Paper 85-1A, p. 349-358.

Geol. Surv. Can., Summary Report, 1922, Pa r t A, p. 88-107.

MPH Consul t ing, 1983 P r i v a t e r e p o r t s f o r Unicorn Resources Ltd. , dated September 20 and November 24, 1983.

M i n i s t e r o f Mines, B. C., Ann. Repts. 1899, p.742; 1901, p.899; 1914,

p.226-232,245; 1918, p.208; 1920, p.172; 1922, p.180; 1923, p.166; 1924, p.188-189; 1925, p.210- 211; 1926, p.233-28; 1927, p.254-255; 1928, p.265-

268; 1929, p. 278-279; 1930, p.214-215; 1931, p.129- 130; 1932, p.139; 1952, p.119-134; 1953, p.103; 1954, p.111-113; 1955, p.39; 1956, p.71; 1957, p.32; 1970, p.381.

- 22 -

CERTIFICATE

I, Richard H. Janes o f Vancouver, B r i t i s h Columbia do hereby c e r t i f y :

1. That I am an independent q u a l i f i e d min ing g e o l o g i s t w i t h an o f f i c e a t 418 - 602 West Hast ings S t ree t , Vancouver, B. C. V6B 1P2

2. That I am a r e g i s t e r e d Pro fess iona l Engineer i n the Province o f B r i t i s h Columbia and Member o f t he Canadian I n s t i t u t e o f Mining and Me ta l l u rgy .

3. That I have p r a c t i s e d my p ro fess ion f o r t h i r t y years.

4. That I have no d i r e c t , i n d i r e c t o r con t ingent i n t e r e s t s i n Minera l Lease 94 nor i n any minera l p r o p e r t y w i t h i n t e n k i lomet res o f t h i s lease nor do I have any i n t e r e s t i n nor any assoc ia t i on w i t h S i l v e r Saddle Mines L td .

5. That I spent th ree days examining the Minera l Lease from 19th t o 21st October, 1985.

6. That I hereby consent t o t h e p u b l i c a t i o n o f my r e p o r t e n t i t l e d "Report on Min ing Lease 94, Similkameen Min ing D iv i s ion , B r i t i s h Columbia", dated December 18, 1985 i n a prospectus o r statement o f ma te r ia l f a c t s .

R. H.

I .

Vancouver, B. C. December 18, 1985

APPENDIX I

D R I L L LOGS,

HOLES 85-2, -3 and -4

Silver Saddle Mines Ltd. (1985) DIAMOND ORILL RECORD Hole NO. Sheet No. *.d. :

,

,

Silver Saddle Mines Ltd. (1985) DIAMOND DRILL RECORD ,.e*+-- - *n Hole No.

Sheet No. . - ’ sf

I I I I I I I I

1

Sllver Saddle Mines Ltd. (1985) DIAMOND DRILL RECORD

Silver Saddle Mines Ltd. (1985)

fk-0 from To DL 3CAIPTlOH

DIAMOND DRILL RECORD I

&tern Au Ag Cu Pb 2n From 10 L.wh oz/ t o r / t x x x

Hole No. c?5- /#. Sheet No. 6 At3 ,

Silver Saddle Mines Ltd. (1985) DIAMOND DRILL RECORD Hole No. RY-- Sheet No. ,f. *,f-'*

!

APPENDIX I 1

ASSAY CERTIFICATES

ACME ANALYTICAL LABORATORIES LTD. DATE RECEIVED: NOV 18 1?85 E52 €.HASTINGS ST.VANCOUVER B.C. V6A 1R6 FHONE 25:-3158 TELEX 04-53124 DATE REPORT MAILED:

ASSAY C E R T I F I C A T E

TTFE: RCCK CHIPS ~ u t 10 S R A ~ FEGULAR ASSAY

.DEAN TOYE OR TOM SAUNDRY. CERTIFIED B.C. ASSAYER

Analysis Certificate Analytical Services. Trail. I3 C

SN87 840831 6837 SILVER SADDL LOT C t Y E ORE (2 TRUCK)

HZO AU AUCCORR) AG A G ( C 0 R R ) CU Pa ZN x OZ/TON OUTON OZ/TON OUTON % x x 4 .a 8.817 8.817 - 4.25 4.25 8.20 2.2 8.2

s102 AL203 FE CAO sa AS a1 x x x x x x x

__ 26.7 -~ 8.1 22.s ~ e.8 . (0.8% 8.75 8.845

Cenllicate Number 10 10281 Page 1 END CERTIFICATE

Original

corninno c Y r Ma Dy 8 4 09 28

S x 17.5

December 20, 1985

In Account With: Silver Saddle Mines Ltd. 16 -2971Qu-Appele Street Victoria, B. C. V9A 1V3

Professional fees for field examination of Mineral Lease 94, logging core from drill holes 1985-2,-3 and -4 , preparation of report on property and travel time.

Nine days at $350 per day Report Expenses: Draughting

Other Expenses as listed: Typing and Copying

Advance Account Outstanding

$3,150.00 270.00 200.00 194.49

$3,804.49 4

1,500.00 $2,304.49

Thank you for your patronage,