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Dl GOLDEN PORPHYRITE LTD. 1984 ASSESSMENT REPORT ON THE KOZ, DAV, BARN AND BLUE CLAIMS LATITUDE 49" 50' N LONGITUDE 118' 4' W N.T.S. 82E/16E OWNER: ARROW LAKES MINES LTD. 920 - 475 Howe Street Vancouver, B.C. V6C 2B3 OPERATOR: GOLDEN PORPHYRITE LTD. 403 - 750 West Pender Street Vancouver, B,C, V6C 2T7 David M. Nelles, B.Sc. Golden Porphyrite Ltd. JUNE 20, 1984 \ This report may not be reproduced in whole or in part without written permission

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Dl GOLDEN PORPHYRITE LTD.

1984

ASSESSMENT REPORT

ON THE

KOZ, DAV, BARN AND BLUE CLAIMS

LATITUDE 49" 5 0 ' N LONGITUDE 118' 4 ' W

N.T.S. 82E/16E

OWNER: ARROW LAKES MINES LTD. 920 - 475 Howe Street

Vancouver, B.C. V6C 2B3

OPERATOR: GOLDEN PORPHYRITE LTD. 403 - 750 West Pender Street Vancouver, B,C, V6C 2T7

David M. Nelles, B.Sc. Golden Porphyrite Ltd.

JUNE 20, 1984

\ This report may not be reproduced in whole or in part without written permission

GOLDEN PORPHYRITE LTD. \

TABLE OF CONTENTS

Page

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

CLAIMS ..................................................... 2

HISTORY AND PREVIOUS WORK .................................. 2

GEOCHEMICAL SURVEY ......................................... 4

PROSPECTING ................................................ 6

INTERPRETATION AND CONCLUSIONS ............................. 8

STATEMENT OF EXPENSES ...................................... 9

QUlALIFICATIONS ............................................. 10

APPENDIX A: GEOCHEMICAL SAMPLE RESULTS APPENDIX B: ROCK SAMPLE DESCRIPTION

LIST OF ILLUSTRATIONS

F i g u r e

LOCATION MAP CLAIM MAP HEAVY SEDIMENT SAMPLE LOCATION MAP REGIONAL ROCK CHIP SAMPLE LOCATION MAP CHANNEL AND GRAB SAMPLE LOCATION MAP DETAILED CHANNEL AND GRAB SAMPLE LOCATION MAP

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This report may not be reproduced in whole or in part without written permission

llfRl GOLDEN PORPHYRITE LTD. - 1

INTRODUCTION

Between March 14 and March'l7, 1984, assessment work in the form of prospecting and heavy sediment geochemistry was carried out on the Blue, Koz, Dave and Barn mineral claims as well as the Completer Crown Grant.

The claim group is located in the Slocan Mining Division, cen- tered at 49" 5 0 ' N latitude, 118" 4' W longitude, on the east side of Lower Arrow Lake, 6 km southeast of Farquier, B.C. Highway 6 provides access to Farquier from Vernon to the west and Nakusp to the north. A series of logging roads south of Farquier give easy access to the claim group. From there, various skid roads access much of the property. The claim group is situated oq the western margin of the Selkirk Mountains between 600 - l,'125 m above sea level. A central northerly trending ridge deflects most of the drainage to the south, except Heart Creek which drains to the northwest. Mixed coniferous interior rain forest vegetation covers the claims, although the area has been logged, and much of the growth is secondary.

A program of prospecting, covering approximately 4 km2, and heavy sediment sampling, involving seven samples on two major creek systems was carried out to assess the potential of the claims for gold and silver mineralization. In the course of prospecting, twenty rock ch p samples were taken.

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FIGURE I

1 GOLDEN PORPHYRITE LTD.

ARROW LAKES MINES PROPERTY

LOCATKIN MAP

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El GOLDEN PORPHYRITE LTD.

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2

CLAIMS

There are four contiguous metric Mineral Claims:

NAME

KO Z DAVE BARN BLUE

RECORD #

2530

2529 2528

2559

DIMENSIONS

3N x 4E

4N x 4E 2s x 4E 2N x 4E

RECORD DATE

18.05.81

18.05.81 18.05.81 08.06.81

The Completer Crown Grant, L7309 , is located entirely within the Dave Claim and is also owned by Arrow Lakes Mines Ltd.

HISTORY AND PREVIOUS WORK

The Completer Claim L7309 was crown granted in 1908 according to the 1908 B.C. Minister of Mines Report. A private report by Shannon (1934) describes a 134 m adit, two 4.5 m deep shafts and surface stripping carried out during 1907 - 1914. The 1.2 x 1.8 m adit at elevation 945 m heads west towards the main vein swarm on this Crown Grant.

A report by Fawley (1965), was written for Pajo Mines Ltd., previous owners of the property. At that time, Fawley recom- mended a major drilling programme to test the mineralized veins, as well as geological mapping and geochemical sampling pro- grammes. There is no record of the recommendations of this report having been carried out.

A Report written by Snell (1982), describes work completed for Northern Deep Level Mines Ltd. This work, which included access

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This report may not be reproduced in whole or in part without written permission

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road construction, grading and surface stripping, revealed an additional four veins bringing the total of quartz veins on the Crown Grant to seven. Surveying and mapping of these veins and a geochemical soil sampling programme were also undertaken at this time .

The following is a list of the claims and the specific nature of the work performed on each:

BLUE Heavy sediment geochemistry KO Z Prospecting and heavy sediment geochemistry DAVE Prospecting, rock chip and heavy sediment geochemistry. (incl L7309) BARN Heavy sediment geochemistry and prospecting.

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4

GEOCHEMICAL SURVEY

A total of 20 rock chip samples were taken from the area of the showings and elsewhere on the property. Analysis for gold and silver, and in certain samples lead and zinc, was conducted at Chemex Labs in Vancouver. All rocks were initially ring ground to - 100 mesh, For gold,five (5) gram portions were then ashed at 8 0 0 " C for one hour, digested with aqua regia, twice to dry- ness and taken up in 25% HC1. Gold was then extracted as a bromide complex into Methyl Is0 Butal Ketone and analyzed via atomic absorption with a 10 parts per billion detection limit.

Silver analysis required 1 gram portions of each sample to be digested in concentrated perchloric-nitric acid for approximately 2 ihours. The digested sample was then cooled and made up to 25 ml with distilled water. The solution was then mixed and solids were allowed to settle. Silver concentration was then determined using correcterd atomic absorption techniques with a detection limit of 0.1 parts per million.

Analysis for lead and zinc involved the digestion of 1.0 gram portions of the sample in a HNO3 - HClQ mixture for 6 hours. Metal concentrations where then determined using corrected atomic absorption techniques with a detection limit of 1 ppm.

In order to deliniate potential gold and silver bearing creeks, a total of 7 2kg heavy sediment samples were also submitted to Chemex Labs. These samples were floated in Tetrabromoethene to isolate minerals with a specific gravity greater then 2.95 f

0.1 g/cm3. This fraction was then crushed to 100 mesh. Gold

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161 GOLDEN PORPHYRITE LTD. Y

LOWER ARROW

LAKE

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1 1

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0 1 2km

S C A L E

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* .

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HEAVY SED lMENT SAMPLE LOCATION MAP

0 Sample # - o z / t o n A u ; o z / t o n Ag.

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lrfffl GOLDEN PORPHYRITE LTD. \

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anaylysis required 10 g portions to be fused with 10 mg of gold- free silver metal. The fusion was then cupelled and the result- ing silver bead parted with dilute nitric acid and treated with aqua regia. The remaining salts were then dissolved in dilute H C 1 and analyzed for gold via atomic absorption spectometer with a 5 ppb detection limit. Silver analysis was done as for soils.

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PROSPECTING

A brief inspection of known mineralization on the Completer Crown Grant (Lot 7309) was conducted prior to the property traverse. The mineralization, exposed by trenching on the southern portion of the Crown Grant, consisted of pyrite, galena and locallized marcasite, finely disseminated but occasionally massive, in milky white quartz veins from .5 to 2.5 m in width. The veins cut coarse grained acidic monzonite (phenocrysts of feldspar up to 3 cm), striking generally 0 2 0 " - 0 3 5 " . The host rock has been highly altered along the margin of most veins to a homogenous grey colour (sericite?), at times to a distance equal to the width of the vein. Also noted in a trench northwest of the main showing, were several narrow ( 2 0 - 5 0 m) feldspar rich veins striking 0 2 0 " - 030".

A traverse was carried out to cover the prominent ridge running northeast of the showings in order to look for possible exten- tions of the vien system along strike. Outcrop exposure in the area of the traverse was extremely poor.

Outcrop, where exposed, consisted of small flat sections of the same intrusive hosting the veins in the showing area. One expo- sure of a green-grey volcanic unit found at the northern end of the ridge is believed to be part of a roof pendant.

Three samples were taken from two old blast trenches found on the ridge top approximately one kilometer from the original showings. Samples A 0 0 0 1 and A 0 0 0 2 were channel samples across a narrow quarts vein and a coincedental shear zone ( 1 6 5 / 6 0 SW) in the first trench. Sample A 0 0 0 3 was of silicous rubble with finely

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lml GOLDEN PORPHYRITE LTD. \

LOWER

LAKE ARROW

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A 0 0 0 3 1.4,.c10 \. A0001 ,A0002* 2.8,clO 0.1,~lO

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ROCK-CH I P SAMPLE LOCATION MAP

DAVE CLAIM SLOCAN M I N I N G DIVISION

AOOOl - SAMPLE LOCATION Ag(ppm) 9 AdPPb)

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zl GOLDEN PORPHYRITE LTD. 7

disseminated pyrite in the second trench, 70 m due north of the first. Although neither had milky quartz in place, the first trench had some mixed in its dump material.

In order to locate the strike extension of the vein system, the traverse continued east of the ridge toward Heart Creek. Outcrop was restricted to the banks of old logging road cuts and to por- tions of Heart creek. The majority of rock seen as outcrop was a dark green to grey, medium grained volcanic extrusive. In places this unit exhibited extensive limonite alteration, but no other mineralization was seen. No samples were taken of this unit.

Because of the limited rock exposures, it is difficult to assess the probability of vein extensions to the north. Further trench- ing is therefore needed to better deliniate the system and assess its potential.

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CHANNEL A N D GRAB SAMPLE LOCATlON MAP

COMPLETER CROWN GRANT March 1984

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GOLDEN PORPHYRITE LTD.

Branch 3

0 2s 50 m

S C A L E

I / / I , / Quartz vein + - mineralization

7 Uncertaincy

- Rock-chip sample 1 Channel sample

Inaccessable shaft

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GOLDEN

\ 'vii This report may not be reproduced in whole or in part without written permission

PORPHYRITE LTD.

' A c c e s s R o a d Branch 3

0 25 SO m

S C A L E

GRAB R CHANNEL SAMPLE RE S U L T S

COMPLETER CKOWN G R A N T

-1 : - Q u a r t z v e i n 2 m i n e r a l i z a t i o n /

Y Rock c h i p sample; Ag(ppm), Au(ppb), Pb(ppm), Zn ( ppm)

? [ l n c c r t a i n c y

0 I n a c c e s s a b l e s h a f t

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GOLDEN PORPHYRITE LTD. 8

INTERPRETATIONS AND CONCLUSIONS

Heavy sediment sampling, carried out to test the possibility of a northern extension of the Completer vein system through Heart Creek and any further source of gold or silver to the east, failed to pick up any anomalies. Though it is unlikely that any major ore body exists to the immediate east of the claim block, there is still reason to believe that the veins found on the Completer Crown Grant extend at least to lots 2588 and 2590 on Heart Creek, where old working are known to have existed.

Because of poor outcrop exposure, prospecting was limited to ridge tops and road cuts. The dominant rock type encountered was a coarse grained monzonite locally hosting mineralized quartz veins. It is apparent that the economic potential of the pro- perty lies in these veins which were seen only within the Completer Crown Grant where they are exposed in trenches. Surface sampling of these veins returned good values in silver and moderate lead-zinc concentrations. Gold values, as a whole, were generally low. Unlike many Ag-Pb-Zn deposits, however, high silver values were not always associated with galena. Further work, by way of additional trenching and drilling, will help determine the relationship between the silver and the quartz veining, as well as the extent of this mineralization at depth where better values for both gold, silver and base metals are reported to occur.

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GOLDEN PORPHYRITE LTD. 9

STATEMENT OF EXPENSES

March 14 - March 1 7 , 1 9 8 4

Wages: 4 days, 2 persons @ $ 1 8 7 . 5 0

4 days, 2 persons @ $ 1 2 7 . 5 0

Vehicle Rental: Equipment Rental: Gas & Fluids: Accommodation: Food : Courier: Supplies & Expendables: Analysis : Report and Drafting: Management Fee:

TOTAL

$ 1 , 5 0 0 . 0 0

5 1 0 . 0 0

2 2 6 . 1 8

7 5 . 0 0

1 7 1 . 7 8

1 2 7 . 3 3

1 8 9 . 3 2

24 .45

1 8 . 0 3

3 2 4 . 7 2

3 4 0 . 0 0

1 6 9 . 1 9

$ 3 , 6 8 4 . 5 0

\ This report may not be reprduced in whole or in part without written permission

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CERTIFICATE OF QUALIFICATIONS

I, David Nelles, do hereby certify that:

I am a Geologist with business offices at 4 0 3 - 750 West Pender Street, Vancouver, B.C., V6C 2T7, and am employed by Golden POKphyKite Ltd.

I am a graduate of the University of B.C. with a Bachelor of Science degree in Geology.

This report is based on two days field work on the KOZ, Barn. Dave and Blue claims in the Slocan M.D.

I have no interest in the forementioned claims OK Arrow Lakes Mines Ltd., nor do I expect to rece ve any.

Dated this 20th day of June, 1984 at Vancouver, British Columb a.

W David M. Nelles, B.Sc.

This report may not be reproduced in whole or in part without written permission

GOLDEN PORPHYRITE LTD.

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4:

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CERTIFICATE OF QUALIFICATIONS

I, David Coffin, do hereby certify that:

I am a prospector with business offices at 403 - 750 West Pender Street, Vancouver, B.C., V6C 2T7, and am employed by Golden Porphyrite Ltd.

I am a graduate of the Haileybury School of Mines' Mining Technology Programme.

I have been practising in my profession for more than 1 2

years throughout Canada.

This report is based on two days field work on the Koz, Barn, Dave and Blue claims in the Slocan M.D.

I have no interest in the forementioned claims or Arrow Lakes Mines Ltd., nor do I expect to receive any.

Dated this 20th day of June, 1 9 8 4 at Vancouver, British Columbia.

. 1 This report may not be reproduced in whole or in part without written permission

GOLDEN PORPHYRITE LTD. .

APPENDIX A

GEOCHEMICAL RESULTS

Note: Sample numbers a p p e a r i n c o l u m n s

6 t h r o u g h 1 0 of

sample c o d e

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212 BROOKSBANK AVE NORTH VANCOUVER, B C CANADA V 7 J 2C1

TELEPHONE (604) 984-0221

CHEMEX LABS LTD.

ANALYTICAL CHEMISTS GEOCHEMISTS REGISTERED ASSAYERS TELEX 043-52597

S a m I e P r e p PS Z n Ag A S A 3 - A A Sb - description c o d e pp;n o D :n Dl;K 0nGl f ) D S D Drn -- < L r )

< l o <LO < I 0 < l o <10 < l o

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120 30 10

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-- 2.8 A4009A0001205017 2 0 5 -- -- 3.1 A400RA0002205017 205 -- -- 1.4 A400RA3003205017 2 0 5 -- -- 0.3 A400RA0004205017 2 0 5 - - -- 0.1 A400RA0005205017 2 0 5 -- --

A400RAG006205017 2 0 5 500 170 3 3 . 0 -- 3 . 6 A400RA0007205017 2 0 5 -- --

A400RAOG 08 20 5 0 17 205 -- -- 30.0 -- 3.7 k400RkOCG9205017 2 0 5 -- -- 1.7 A400RAOG10205017 205 -- -- 0.5 A400RAOOl1205017 205 -- --

76. C A400RA0012205017 2 0 5 -- -- 4.3 A400RAOO 13 2050 17 2 05 -- --

1C.8 A400RA0014205017 205 -- -- 7 2 . 0 A400RAOO 152050 17 2 05 4800 - -

A400RAb016205017 205 4700 9 5 0 3 5 . 0 A400RA0017205017 2 0 5 3 7 5 0 2 6 8 0 28.0 -- A400RA0018205017 205 -- A400Rk0019205017 2 0 5 -- --

-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 45.0 -- -- 1.6

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T C : G O L D E N P O R P H Y R I T E L T D . C E R T . $ : Aa411919-001-A I N V U I C E f! : I8411919

D A T E : 4-JUh-84 P.9. i: : NCNE CRR!3lr! C K S o

MEMBER Ci . r t i f i e d by ...................... @ CANADIAN TESTING ASSOCIATION

Y

212 BROOKSBANK AVE NORTH VANCOUVER, B C CANADA V7J 2C1

CHEMEX LABS LTD. TELEPHONE (604) 984-0221

ANALYTICAL CHEMISTS GEOCHEMISTS REGISTERED ASSAYERS TELEX 043-52597

T O : G O L O E N PORPHY2ITE LTD.

403 - 750 W O O PENDER ST. V A N C O U V E R * 3.C. V6C 2T7

CERT. If : A8411920-001-A I N V O I C E # : I 8 4 1 1 9 2 0

D A T E : 31-MAY-84 P.O. # : NONE A R R O W L K S

Sample P r e p A u FA d e s c r i o t i on code o z / T -- - - -- -- -- A400HBOG01213396 213 < 0 . 0 0 3

A400HB0002213396 2 1 3 < O e O C 3 -- -- -- -- -- -- - - -- -- --

A400H90003213396 2 1 3 <0.003 ~ - - -- -- -- -- A400HS0004213396 2 13 0.033 -- -- -- -- -- A400HB0005213396 213 <0.003 -- -- -- -- -- A4003B0006213395 213 < 0 * 0 0 3 A4001 i~0007213395 213 <0 .003 -- - - -- -- --

I

MEMBER CANADIAN TESTING

ASSOCIATION -

.. * * * . .. ..... ...* ............ ............'.. .... . R e g i s t e r e d A s s h y e r ~ P r o v i n c e o f a r i t i s h C o l u m b i a

CHEMEX LABS LTD. 212 BROOKSBANK AVE. NORTH VANCOUVER, B.C. CANADA V7J 2C1

TELEPHONE: (604) 984-0221

043-52597 ANALYTICAL CHEMISTS GEOCHEMISTS - REGISTERED ASSAYERS TELEX:

L CERTIFICATE OF ANALYSIS _.-___.

T O : GOLDEN PORPHYKITE LTD. C E R T . 8 : A8411920-001-A

403 - 750 W O O PENOER ST. VANCOUVER v d .C V 6 C ZT7

I N V i l I C E H : I 8 4 1 1 9 2 0 D A T E : 31-MAY-84

P.O. : NONE A R R O W L Y S

Samp I e P r e p Ag P P W d e s c r i o t i on code Aaua R

A400HB00012l.3396 2 1 3 0.1 A400H00002213396 213 0.1 A400HD0003213396 213 0.1 A400H00004213396 213 9.1 A400HB0005213396 2 1 3 0.1 4400HB0006213396 2 13 00 1 A40GH80007213396 213 0.1

-- - - -- -- -- - - -- -- -- -- - - - - -- -- -- - - - - -- -- -- - - -- -- -- -- -- -- -- -- -- -- - - -- -- --

MEMBER C e r t i f i e d by B CANADIAN TESTING ASSOCIATION _ _

APPENDIX I3

ROCK SAMPLE DESCRIPTIONS

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ml GOLDEN PORPHYRITE LTD.

RA 0001

RA 0002

RA 0 0 0 3

RA 0 0 0 4

RA 0 0 0 5

RA 0006

RA 0007

RA 0008

RA 0009

d

RA 0010

RA 0011

RA 0 0 1 2

RA 0 0 1 3

RA 0 0 1 4

RA 0 0 1 5

RA 0 0 1 6

RA 0017

RA 0 0 1 8

APPENDIX B

Grab sample of 2 cm quartz vein in old blast trench.

Sample across 30 cm shear in trench with R A O O O 1 .

Quartz with pyrite in small trench 70 m north of samples R A O O O 1 and RA0002.

2 m channel across two quartz veins 20 cm and 6 0 cm wide respectfully.

0 . 7 5 m channel across 20 cm quartz vein - some dissemi- nated pyrite.

Grab sample of dump material from "West" shaft. Galena and pyrite.

1 .5 m channel sample of quartz material in trench south- west of "showing" area.

Locally occuring disseminated sulphides in otherwise barren quartz. Exposed surfaces show orange oxidation.

Altered wall rock, recrystallised and fine grained, with localized quartz veining.

Barren thin quartz vein, less than 20 cm thick, with oxi- dized ferro-magnesium minerals at contact with wallrock.

Altered wall rock, recrystallized and fine grained, with localized quartz veining.

6 0 cm channel sample across quartz vein.

180 cm channel sample across quartz vein at "East" shaft. Orange oxidation on surface of quartz.

In-situ and float quartz breccia. Fragments are very angular and supported by oxidized matrix.

Quartz float with patchy galena, marcasite and pyrite.

Quartz float with local concentrations of galena, marca- site and pyrite. Some boxwork structures after pyrite.

0.9 m channel sample of milky quartz vein with galena and pyrite ( 4 % ) .

1 .2 m channel of milky quartz vein.

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R A 0019 2.0 m channel of milky and grey quartz vein. Some pyrite visible.

RA 0020 1.5 m channel of milky and grey quartz vein with minor pyrite.

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