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Page 1: r37771 - British Columbia
jnorris
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BC Geological Survey Assessment Report 37771
Page 2: r37771 - British Columbia
Page 3: r37771 - British Columbia

John Bakus/Turnagain Resources Inc Carmi Property Event 5701305

Sookochoff Consultants Inc December 27, 2018 Page 1 of 41

JOHN BAKUS/TURNAGAIN RESOURCES INC.

(Owners)

TURNAGAIN RESOURCES INC

(Operator)

Prospecting Assessment Report

(Event 5709607)

Work done on Tenures

1060416

of the two claim

Carmi Property

Greenwood Mining Division

BCGS Map 082E.045

Centre of Work

5,484,563N, 345,288E

(Zone 11U NAD 83)

work done from

May 20, 2018 to June 20, 2018

Author & Consultant

Laurence Sookochoff, PEng

Sookochoff Consultants Inc.

Report Submitted

December 28, 2018

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TABLE OF CONTENTS

page

Summary ------------------------------------------------------------------------- 4.

Introduction ---------------------------------------------------------------------- 5.

Property Location and Description ------------------------------------------- 5.

Accessibility, Climate, Local Resources,

Infrastructure and Physiography ------------------------------------ 6.

Water and Power ---------------------------------------------------------------- 6.

History: Carmi Property Area ------------------------------------------------- 8.

082ESW029 – CARMI ----------------------------------------------------- 8.

082ESW030 – BEAVERDELL ------------------------------------------- 9.

082ESW059 – INYO ACKWORTH ------------------------------------- 10.

082ESW073 – SALLY ----------------------------------------------------- 10

082ESW133 – HIGHLAND LASS --------------------------------------- 11.

082ESW145 – HIGHLAND CHIEF -------------------------------------- 11.

082ESW197 – REVENGE ------------------------------------------------- 12.

082ESW237 – OBSERVATORY ----------------------------------------- 13.

History: Carmi Property -------------------------------------------------------- 13.

082ESW103 – MAY -------------------------------------------------------- 13

082ESW104 – CAPCO ----------------------------------------------------- 14.

082ESW132 – BUTCHER BOY ------------------------------------------ 14.

Geology: Carmi Property Area ------------------------------------------------ 15.

082ESW029 – CARMI ----------------------------------------------------- 15.

082ESW030 – BEAVERDELL ------------------------------------------- 15.

082ESW059 – INYO ACKWORTH ------------------------------------- 16.

082ESW073 – SALLY ----------------------------------------------------- 17

082ESW133 – HIGHLAND LASS --------------------------------------- 18.

082ESW145 – HIGHLAND CHIEF -------------------------------------- 19.

082ESW197 – REVENGE ------------------------------------------------- 19.

082ESW237 – OBSERVATORY ----------------------------------------- 20.

Geology: Carmi Property ------------------------------------------------------ 20.

082ESW103 – MAY -------------------------------------------------------- 20

082ESW104 – CAPCO ----------------------------------------------------- 20.

082ESW132 – BUTCHER BOY ------------------------------------------ 21.

Mineralization: Carmi Property Area ---------------------------------------- 22.

082ESW029 – CARMI ----------------------------------------------------- 22.

082ESW030 – BEAVERDELL ------------------------------------------- 22.

082ESW059 – INYO ACKWORTH ------------------------------------- 24.

082ESW073 – SALLY ----------------------------------------------------- 24

082ESW133 – HIGHLAND LASS --------------------------------------- 25.

082ESW145 – HIGHLAND CHIEF -------------------------------------- 26.

082ESW197 – REVENGE ------------------------------------------------- 27.

082ESW237 – OBSERVATORY ----------------------------------------- 28.

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Table of Contents (cont’d)

Mineralization: Carmi Property ----------------------------------------------- 28.

082ESW103 – MAY -------------------------------------------------------- 28

082ESW104 – CAPCO ----------------------------------------------------- 28.

082ESW132 – BUTCHER BOY ------------------------------------------ 29.

2018 Exploration Program: --------------------------------------------------- 29.

Interpretation and Conclusions ------------------------------------------------- 31.

Recommendations -------------------------------------------------------------- 31.

Selected References ------------------------------------------------------------- 32.

Statement of Costs -------------------------------------------------------------- 33.

Certificate ------------------------------------------------------------------------ 34.

Field Crew Qualifications ------------------------------------------------------ 35.

TABLES

Table 1. Tenures of the Carmi Property ----------------------------------- 5.

Table 2. Crown Grants of the Carmi Property ---------------------------- 6.

ILLUSTRATIONS

Figure 1. Carmi Property: Location Map ------------------------------- 5.

Figure 2. Carmi Property: Location from Vancouver ----------------- 7.

Figure 3. Carmi Property: Location from Beaverdell ----------------- 7.

Figure 4. Carmi Property: Claim Map ---------------------------------- 8.

Figure 5. Carmi Property:: Property Geology ------------------------- 21.

Figure 6. Index Map ------------------------------------------------------- 30.

Figure 7. Sample Locations ----------------------------------------------- 30.

APPENDICES

Appendix I Sample Assays

Appendix II Sample Locations and Descriptions

Appendix III Photos

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SUMMARY

The 335 hectare Carmi Property (“Property”) is located 422 kilometres east-northeast of Vancouver

and within nine kilometres northwest of the Beaverdell/Highland Bell past producer which is within

the historic Beaverdell silver-lead-zinc mining camp.

Production from the Beaverdell polymetallic vein deposit was almost continuous from 1913 to 1991

with 1,076,005,759 grams of silver, 520,197 grams of gold, 11,598,238 kilograms of lead, 13,900,078

kilograms of zinc and 58,171 kilograms of cadmium recovered from 1,198,829 tonnes of ore mined.

The dominant hostrock for the highly argentiferous quartz veins, which occupy east and northeast

fault fissures, are the Westkettle granodiorite or the Beaverdell quartz monzonite, with

mineralization rarely extending into the contact with the multi-lithological Wallace Formation.

The Carmi property includes the Butcher Boy prospect, where 21,337 grams of silver, 5195 grams of

gold, 361 kilograms of lead and 634 kilograms of zinc were produced from 2,000 tonnes of ore, which

may be an indication of a Beaverdell type mineral deposit. The comparison is in the Wallace

Formation and the Westkettle batholith geology and the fault fissure controls to the mineralized

quartz veins. The Butcher Boy shear zone can be traced for 549 metres between the Butcher Boy and

adjacent Carmi past producer (Minfile 092SW029) where recovery included 279,585 grams of silver,

87,929 grams of gold, 3179 kilograms of lead and 7303 kilograms of zinc from 4,780 tonnes of ore.

The Butcher Boy and the Carmi veins appear to be the same faulted vein hosted by the east-west

trending structure with the May polymetallic prospect (Minfile 082SW103) located between the two

past producers. However, the exact relationship between the May shear zone and the Carmi-Butcher

Boy shear is unknown (Minfile).

The prospecting and sampling program resulted in the taking of 20 dump samples and 13 samples from

locations near the May prospect and possibly over the indicated Butcher Boy-Carmi shear zone. Two of the six

assayed dump samples returned anomalous values in lead, zinc, silver, and gold with one sample assaying a

significant 5,940.3 ppb gold. The 13 May prospect samples were not assayed, however, the description of the

eight rock samples revealed potential gold/silver type mineral zones may help in locating, or a potential

mineral zone, within or associated with, the prospective mineral controlling structure.

The rock sample descriptions also indicate a potential mineralized porphyry, which deposit type

occurs at the adjacent Carmi past producer.

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INTRODUCTION

During June 2018, a structural analysis in addition to a prospecting and sampling program were completed on the Carmi Property ("Property"). The purpose of the structural analysis was to locate any cross-structures which may be surficial indicators of a potential concealed mineral resource.

The purpose of the prospecting and sampling program was to prospect and take samples within any prospective mineralized zone in order to gather geological information for future exploration.

Information for this report was obtained from sources as cited under Selected References and from information on the procedures and results on the prospecting and sampling program given the author.

Figure 1. Location Map

(Base Map from MapPlace)

PROPERTY LOCATION & DESCRIPTION

Location

The Carmi Property is located 290 kilometres east of Vancouver British Columbia within BCGS Maps 082E.045 of the Greenwood Mining Division.

Description

The Carmi Property is comprised of two contiguous mineral claims covering an area of 335.7664 hectares. Particulars are as follows:

Table 1. Tenures of the Carmi Property

Tenure Number Type Claim Name Good Until Area (ha)

1060416 Mineral Carmi ButcherBoy N 20211115 230.8301

1060417 Mineral Carmi ButcherBoy S PL 20211115 104.9363

Total Area: 335.7664 ha

*Upon the approval of the assessment work filing Event Number 5701305.

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ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND

PHYSIOGRAPHY

Access

Vancouver/Kamloops to The Carmi property has excellent road access with the property entrance being located West directly off of Highway 33 between 4th and 11th street in Carmi, B.C. LAT 49.501126 LON -119.122494 UTM 11U 346327E, 5485331N. Multiple roads and trails traverse the property from the Carmi entrance's well maintained 2 way gravel road which allows for fairly easy all year access.

Climate

The Slocan Valley has 4 distinct seasons, and a relatively moist climate – except in the summer where it can be very hot and dry.

Local Resources

Sufficient accommodation and supplies, for a preliminary exploration program would be available at Carmi or Beaverdell.

The Property is in an area that has a long history of exploration and mining, and has available experienced explorationists in the regional district.

Infrastructure

Kelowna, 70 kilometres north of the Property, is linked to Vancouver through commercial flights and is within seven hours by road to Vancouver. Vancouver is a port city on the southwest corner of, and the largest city in the Province of British Columbia.

Physiography

The Property covers an area of gradual forested slopes with rare selectively logged areas. Relief is in the order of 345 metres from elevations of 880 metres in the southeast to 1,225 metres in the northwest.

WATER AND POWER

Sufficient water for a summer exploration program should be available on, or adjacent to the Carmi Property. The exploration season may be limited to about four months in the upper elevations.

Diesel-electric generated power would be required during a development program.

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Figure 2. Carmi Property Location from Vancouver (Base Map from MapPlace & Google)

Figure 3. Carmi Property Location from Beaverdell (Base Map from MapPlace & Google)

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Figure 4. Claim Map (Base map from MapPlace)

HISTORY: CARMI PROPERTY AREA

Descriptions on the history of past producers in the area of the Carmi Property are copied from Minfile

CARMI past producer (Polymetallic veins Ag-Pb-Zn+/-Au; Porphyry Mo (Low F- type))

Minfile 082ESW029

100 metres east

The Carmi past producer is located immediately south of Carmi, British Columbia, on the Carmi (Lot 2352) and B. A. Fraction (Lot 2357) Crown grants. The Crown grants lie on the west side of the West Kettle River.

The Carmi claim was first staked in 1896 by J.C. Dale. Development work initially consisted of opencuts and a shallow shaft. The claim was sold in 1900 to London, England interests, who conducted further work under Carmi Mining Co. The B.A. Fraction claim was located in the same year. The Carmi and B.A. Fraction claims were Crown granted to E.H. Thurston and associates in 1901, the same year as the first production. In 1904, a 5-stamp mill was erected and had a capacity of 20 short tons per day. In 1913, the claims were leased to A. Robinson from F. J. Finnucane. Further work was done and ore shipments made between 1913 and 1915. The mine closed briefly in 1916 and 1917. Further work was resumed by new owners and lessees in 1918 and 1919.

Construction of a new oil flotation concentrator was started. In 1922, optioning interests formed Carmi Gold Mining Co. Work ceased in 1928. Canadian-American Mines Ltd. acquired the Carmi, Butcher Boy (082ESW132) and 18 other claims in 1932. The underground workings were extended between 1932 and 1933, with several ore shipments made.

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History: Carmi Property (cont’d)

Carmi past producer (cont’d)

Canadian-American Mines Ltd. assets were taken over by Carmi Gold Mines Ltd. in 1934 and further underground development work was completed. Between 1935 and 1937, lessees J. Kerr and R. Legiest made additional ore shipments. Highland-Bell Ltd. leased the property in 1939. A small amount of development work was done and the lease given up. The former lessees resumed work and made a final ore shipment in 1940. Since this time, the Carmi and B.A. Fraction claims have been acquired by J.V. Hinks and J.A. Olinger. Options have been held by International Minerals and Chemical Corp. (Canada) Ltd in 1970 and by Husky Oil and G.V. Lloyd Exploration Ltd. in 1970 and 1971. Vestor Explorations Ltd. optioned the property in 1974. In 1981, Kelvin Energy Ltd. was owner of the Carmi claims, surrounding the Carmi occurrence. An 8-hole diamond drill program was conducted, three of which tested for the Carmi veins below the old workings.

BEAVERDELL past producer (Polymetallic veins Ag-Pb-Zn+/-Au)

Minfile 082ESW030

Nine kilometres southeast

The Beaverdell mine was the longest producing mine in the area; almost continuously between 1913 and 1991. Over this period, 1,198,829 tonnes of ore were mined from which 1,076,005,759 grams of silver, 520,197 grams of gold, 11,598,238 kilograms of lead, 13,900,078 kilograms of zinc and 58,171 kilograms of cadmium were recovered.

Initial prospecting began in the Beaverdell area in the late 1880s. The first ore was shipped in 1896. The major producing mines in the Beaverdell silver-lead-zinc vein camp, from west to east, were the Wellington (082ESW072), Sally and Rob Roy (082ESW073), Beaver (082ESW040), and Beaverdell (082ESW030), with numerous other small workings throughout the area. Production commenced on the Highland Lass in 1922. In 1930, R.B. Staples and associates obtained control of the Bell and Highland Lass, however production was recorded separately until the purchase was complete in 1936.

Production continued under the amalgamated Highland-Bell mine owned by Highland-Bell Ltd. Highland-Bell Ltd. was purchased by Leitch Gold Mines Ltd. in 1946 but operations continued as the Highland-Bell mine. In 1953, a down-faulted section of the Lass vein system was found 229 metres vertically lower and developed by a 1600-metre adit. Teck Corp. assumed control of the mine in 1970.

In 1986 and 1987, property exploration by Teck Corp. located an eastward ore extension with increased gold content on the lower (2900) level. This included an ore block containing 5442 tonnes grading 1371 grams per tonne silver (Assessment Report 15790). Production ceased in 1991.

The Beaverdell mine is composed of the Highland Lass (Lot 2341) past producer (082ESW133) and Bell (Lot 2343) where the Upper and Lower Lass vein system were mined and which have accounted for the majority of production. Most of the veins are hosted in granodiorite of the Westkettle batholith. Some mineralization locally extends for short distances into Wallace Formation rocks which overlie the batholith at the eastern end of the mine area, although the mineralized structures tend to horsetail and disperse.

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History: Carmi Property Area (cont’d)

INYO-ACKWORTH past producer (Polymetallic veins Ag-Pb-Zn+/-Au)

Minfile 082ESW059

Five kilometres south

The Inyo-Ackworth past producer is located at about 1173 metres elevation on the eastern slopes of Cranberry Ridge, 3.75 kilometres northwest of Beaverdell, British Columbia.

The Inyo-Ackworth property originally consisted of Inyo, Inyo Fraction, Ackworth and Annex claims in 1916, owned by C.H. Kinzett, F.O. Evans and associates. In 1917, the claims were leased to Hennessey and Thadich and ore was shipped. No further work is recorded until 1924, when Dollar Mining Co. Ltd. optioned the property. Extensive new development work was conducted with one adit intersecting an extension of the vein. An ore shipment was reported made to the Trail smelter in 1925. Prairie Mining Co. Ltd. leased the property in 1926 but no work was reported. Inyo-Ackworth Mines Ltd. made an ore shipment in 1927. Braemar Mining Co. Ltd. acquired the property in 1930. Development work was carried out in 1930, 1931 and 1935. Braemar Mining Co. Ltd. lapsed in 1937. Boundary Exploration Ltd. staked ground covering the Inyo-Ackworth occurrence. Exploration work included trenching, reopening old adit and three diamond-drill holes. Since 1979 the property has been owned and explored by M. Morrison.

SALLY past producer (Polymetallic veins Ag-Pb-Zn+/-Au)

Minfile 082ESW073

Eight kilometres south

The Sally (Lot 2092) past producer is located 3.0 kilometres west of the summit of Mount Wallace and 1.5 kilometres south- southeast of Beaverdell, British Columbia (Geological Survey of Canada Memoir 79, Figure 1).

Initial prospecting began in the Beaverdell area in the late 1880s. The first ore was shipped in 1896. The major producing mines in the Beaverdell silver-lead-zinc vein camp, from west to east, were the Wellington (082ESW072), Sally and Rob Roy (082ESW073), Beaver (082ESW040) and Bell (082ESW030), with numerous other small workings throughout the area. The Sally occurrence was first discovered in 1901 and operated from 1901 to 1910 by the Vancouver and Boundary Creek Development and Mining Co. The property was idle in 1911 and 1912. A lease was given to J. Drumm in 1913 with ore shipments made from 1913 to 1918. An option was given to Wallace Mountain Mines Ltd. in 1916.

Then in 1925 an option was granted to Federal Mining and Smelting Co.

From 1926 to 1929 another option was given to Sally Mines Ltd. from Wallace Mountain Mines Ltd. Highland- Bell Ltd. acquired the property in 1948 and in 1949 conducted geological work and diamond drilling on the Sally No. 2 level. From 1949 to 1991, the property became part of the ground held as part of the Highland-Bell (Beaverdell) mine. The Highland-Bell mine produced until 1991. Past development on the Sally, Rob Roy and Pueblo claims consisted of over 600 metres of underground workings, opencuts and trenches exploring high-grade silver-lead mineralization on two or three main veins on the Sally (Lot 2092), and two or more veins on the Rob Roy (Lot 2093) and Pueblo (Lot 1205s) Crown-granted claims. At depth, the Sally mine is connected to the Wellington mine (082ESW072).

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History: Carmi Property Area (cont’d)

HIGHLAND LASS past producer (Polymetallic veins Ag-Pb-Zn+/-Au)

Minfile 082ESW133

Eight kilometres southeast

The Highland Lass (Lot 2341) past producer is located 1.25 kilometres northwest of the summit of Mount Wallace and 2.37 kilometres east of Beaverdell, British Columbia (Assessment Report 15704). The Highland Lass claim is part of the Highland-Bell (Beaverdell) mine (082ESW030) which has mined what is commonly referred to as the 'Highland or Upper Lass' vein system. Initial prospecting began in the Beaverdell area in the late 1880s. The first ore was shipped in 1896. The major producing mines in the Beaverdell silver-lead-zinc vein camp, from west to east, were the Wellington (082ESW072), Sally and Rob Roy (082ESW073), Beaver (082ESW040) and Bell (082ESW030), with numerous other small workings throughout the area.

Production commenced on the Highland Lass in 1922. In 1930, R.B. Staples and associates obtained control of the Bell and Highland Lass, however, production was recorded separately until the purchase was complete in 1936. Production continued under the amalgamated Highland-Bell mine owned by Highland-Bell Ltd. Highland-Bell Ltd. was purchased by Leitch Gold Mines Ltd. in 1946 but operations continued as the Highland-Bell mine. In 1953, a down-faulted section of the Lass vein system was found 229 metres vertically lower and developed by a 1600-metre adit. Teck Corp. assumed control of the mine in 1970. In 1986 and 1987, property exploration by Teck Corp. located an eastward ore extension with increased gold content on the lower (2900) level. This included an ore block containing 5442 tonnes grading 1371 grams per tonne silver (Assessment Report 15790). Production ceased in 1991.

Production from the Highland Lass continued annually from 1928 to 1936. During this period, 4735 tonnes was mined with 30,925,029 grams silver, 5940 grams gold, 313,371 kilograms lead and 487,528 kilograms zinc were recovered. After 1936, production figures were combined with the Highland-Bell mine. The Highland Lass was developed by nine levels in a fault block about 396 metres wide in an east-west direction and bounded by the East and West Terminal faults. Ore shoots were continuous over horizontal distances of up to 152 metres and 30 metres updip, which were followed to the contact between granodiorite and the Wallace Formation. The largest and richest stopes were reported to be within 120 metres of this contact.

After 1936, production figures were combined with the Highland-Bell mine. The Highland Lass was developed by nine levels in a fault block about 396 metres wide in an east-west direction and bounded by the East and West Terminal faults. Ore shoots were continuous over horizontal distances of up to 152 metres and 30 metres updip, which were followed to the contact between granodiorite and the Wallace Formation. The largest and richest stopes were reported to be within 120 metres of this contact.

HIGHLAND CHIEF past producer (Polymetallic veins Ag-Pb-Zn+/-Au)

Minfile 082ESW145

Eight kilometres southeast

The Highland Chief past producer is located 2.25 kilometres west-northwest of the summit of Mount Wallace and 2.00 kilometres east of Beaverdell, British Columbia (Geology 1975, Figure G-17).

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History: Carmi Property Area (cont’d)

Highland Chief past producer (cont’d)

Initial prospecting began in the Beaverdell area in the late 1880s. The first ore was shipped in 1896. The major producing mines in the Beaverdell silver-lead-zinc vein camp, from west to east, were the Wellington (082ESW072), Sally and Rob Roy (082ESW073), Beaver (082ESW040) and Bell (082ESW030), with numerous other small workings throughout the area.

The first recorded work on the Highland Chief occurred in 1920 when E. Maloney developed a small silver-lead vein by a short tunnel. By the end of 1921, Maloney had driven the tunnel 6 metres along a high-grade silver-lead vein. Maloney deceased in 1923 and in 1925 the property was acquired by M. Smith and associates, who formed the Highland Chief Mining Co. Numerous opencuts and short adits were driven in the following year. Development work consisted of about 148 metres of drifting, 188 metres of crosscutting, 25 metres of raising and 79 metres of surface trenching and opencuts. The majority of this work occurred between 1938 and 1941. The property was optioned to Highland-Bell Ltd. in 1949, owner of the Beaverdell mine. In 1970, ownership was transferred to Teck Corp. The Beaverdell mine operated until 1991.

Recorded production from the Highland Chief was 13 tonnes mined in 1922, 1938, 1939 and 1941. Recovery included 72,252 grams of silver, 836 kilograms of lead and 797 kilograms of zinc.

REVENGE past producer (Polymetallic veins Ag-Pb-Zn+/-Au)

Minfile 082ESW197

Six kilometres southeast

The Revenge past producer is located 2.75 kilometres west- northwest of the summit of Mount Wallace and 1.75 kilometres east of Beaverdell, British Columbia (Assessment Report 16772).

Initial prospecting began in the Beaverdell area in the late 1880s. The first ore was shipped in 1896. The major producing mines in the Beaverdell silver-lead-zinc vein camp, from west to east, were the Wellington (082ESW072), Sally and Rob Roy (082ESW073), Beaver (082ESW040) and Bell (082ESW030), with numerous other small workings throughout the area.

In 1917, the Revenge, Sunset, Fraction and Bell Fraction were owned by G. Barrett. Work commenced on surface showings and included 7.6 metres of opencutting, 9.1 metres of stripping and 42.7 metres of drifting and crosscutting started from the lower opencut. Five tonnes of ore were reported mined from a 13-centimetre pay streak in these workings (Minister of Mines Annual Report 1917, page F203).

Another 8 tonnes was reported sacked and ready to ship in the following year (Minister of Mines Annual Report 1918, page K220). Another 27 metres of drifting was done on a promising vein. The crosscut was continued for another 24 metres in 1919 with 24 tonnes mined and shipped. The crosscut was extended another 3 metres in 1921 and a 12-metre drift driven. The property was leased and bonded to Westbridge interests in 1922. Barrett, however, developed a new 31-metre upper tunnel. Development was continued by lessees in 1923, with another 23-metre tunnel driven 7.6 metres below the upper tunnel and a shallow shaft sunk in the upper tunnel. In 1925, the property was leased to R. Clothier et al., who did considerable development work. The following year, the Crysler Mining syndicate leased and bonded the Revenge, Sunset Fraction, and Bell Fraction claims. The Revenge No. 2 (upper) and lower tunnels were driven ahead with ore taken from the upper tunnel. Work ceased in 1927 as operating capital ran out.

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History: Carmi Property Area (cont’d)

Revenge past producer (cont’d)

Further work in 1928 consisted of a short crosscut driven under the No. 2 tunnel by Barrett. The upper tunnel was mined for a short time in 1929 by Silver Star Mines Ltd.

A minor amount of work was done in 1930. Work ceased until 1934 when a Penticton syndicate drove two crosscuts below and southwest of the No. 2 tunnel. The Revenge Mining Co. made the last recorded ore shipment in 1935. In 1939, the Revenge property was leased to R.C. McLanders and 61 metres of surface stripping and underground work was done. The following year, A.St. Clair Brindle carried out a small amount of development work. The property was acquired by Highland-Bell Ltd. in 1946, owner of the Beaverdell mine. In 1970, ownership was transferred to Teck Corp. The Beaverdell mine operated until 1991.

OBSERVATORY past producer (Polymetallic veins Ag-Pb-Zn+/-Au)

Minfile 082ESW237

Two kilometres east

The Observatory (Lot 1252s) past producer is located at about 1189 metres elevation on the western slopes of King Solomon Mountain, 1.75 kilometres east-northeast of Carmi, British Columbia (National Topographic System 82E/6).

A small high grade silver vein was reported discovered on the Observatory claim in 1904. It was reported that two or three carloads of ore would be ready for shipment that winter. The claim was Crown granted to J. Dale and A.S. Black in 1911. No further records are found until 1940 when 12 tonnes of ore were shipped by J. P. Gachain. A total of 6283 grams silver were recovered.

HISTORY: CARMI PROPERTY

The history of the mineral MINFILE reported prospects within the Carmi Property is reported as follows. The descriptions herein are copied from Minfile..

MAY prospect (Polymetallic veins Ag-Pb-Zn+/-Au)

Minfile 082ESW103

Within Tenure 1060416

The May prospect is located at 914 metres elevation immediately south of Carmi Creek, 2.25 kilometres west-southwest of Carmi, British Columbia. The prospect is 396 metres west of the former Butcher Boy mine (082ESW132) and 640 metres west of the upper adit of the former Carmi mine (082ESW029).

The May claim was staked before 1901 on parallel veins and a shear zone extending westward from the Carmi and Butcher Boy claims. In 1904, the claim was Crown granted to R.D. Kerr and associates. A three-quarter interest was acquired in the property in 1934 by Carmi Gold Mines Ltd. Development work on the claim has not been recorded, but it is believed that two short adits were driven in the early 1900s. No work has been done since this time except reopening portals and refurbishing collapsed adits. The property was examined and sampled by G.V. Lloyd Exploration Ltd. in 1971 as part of an extensive exploration program for Husky Oil Ltd. in the Carmi area. The May prospect has been developed by two adits; a lower and an upper. The lower adit is 30 metres south of Carmi Creek and 6 metres vertically above. It is about 42 metres long following a bearing of 170 degrees. A 12-metre crosscut was driven 24 metres from the portal. The upper adit lies 8.2 metres vertically above and 18 metres farther south. It is about 27 metres long along a bearing of 105 degrees.

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History: Carmi Property (cont’d)

CAPCO prospect (Polymetallic veins Ag-Pb-Zn+/-Au)

Minfile 082ESW104

Within Tenure 1060416

The Capco prospect is located at 914 metres elevation immediately south of Carmi Creek, 2.25 kilometres west-southwest of Carmi, British Columbia. The prospect is 396 metres west of the former Butcher Boy mine (082ESW132) and 640 metres west of the upper adit of the former Carmi mine (082ESW029).

The Capco claims lie in the Carmi-Beaverdell area where there has been significant exploration and mining activity since early 1900. Evidence of pre-1970 exploration work on the property consists of small opencuts. In 1970, International Minerals Corp. carried out an extensive exploration program of mapping, magnetic and induced polarization geophysical surveys. A drillhole was then drilled on an induced polarization anomaly.

BUTCHER BOY prospect (Polymetallic veins Ag-Pb-Zn+/-Au)

Minfile 08ESW132

Within Tenure 1060416

The Butcher Boy past producer is located immediately south of Carmi, British Columbia, on the Butcher Boy (Lot 2352) Reverted Crown grant. The Reverted Crown grant lies on the west side of the West Kettle River and adjoins the Carmi property (082ESW029) to the west.

The Butcher Boy claim was first staked in 1896 by J.C. Dale. Development work initially consisted of trenches. Shaft sinking began in 1903. In 1904, the Butcher Boy (Lot 2353), May (Lot 2355) and No. 3 (Lot 2354) were Crown granted to J.C. Dale, R.D. Kerr and P.B.S. Stanhope. In 1913, the claims were leased to A. Robinson from F.J. Finnucane. No further work was reported until 1930 when Dale, Stanhope and Kerr leased the property to J. Carlson and associates. The underground workings were extended with ore shipments made in 1930 and 1931. Canadian-American Mines Ltd. acquired the Carmi (082ESW029), Butcher Boy and 18 other claims in 1932. In 1934, the underground workings of the Carmi mine were extended into the Butcher Boy claim 94 metres. Canadian-American Mines Ltd. assets were taken over by Carmi Gold Mines Ltd. in 1934 and further underground development work was completed. Lessees worked the property for a short time in 1935. The claim was acquired by J.V. Hinks and J.A. Olinger. Options have been held by International Minerals and Chemical Corp. (Canada) Ltd. in 1970 and by Husky Oil and G.V. Lloyd Exploration Ltd. in 1970 and 1971. Vestor Explorations Ltd. optioned Mineral Lease M 290, which include the St. Lawrence (Lot 1562s), Copper Queen (Lot 1563s), Lily (Lot 1565s), Butcher Boy (Lot 2353), No. 3 (Lot 2354), May (Lot 2355), No. 6 Fraction (Lot 2356) and Hatford (Lot 2358) Reverted Crown grants, Mineral Lease ML 425 and about 300 adjacent claims, in 1974. In 1981, Kelvin Energy Ltd. was owner of the Carmi claims, surrounding the Carmi occurrence. An 8-hole diamond drill program was conducted, three of which tested for the Carmi veins below the old workings.

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GEOLOGY: CARMI PROPERTY AREA

Descriptions on the geology of past producers in the area of the Carmi Property are copied from Minfile. The distance is relative to the Carmi property.

CARMI past producer (Polymetallic veins Ag-Pb-Zn+/-Au; Porphyry Mo (Low F- type))

Minfile 082ESW029

100 metres east

The Carmi is hosted by granodiorite of the Jurassic Westkettle batholith and an irregular body of Permian Wallace Formation approximately 2.56 square kilometres. The Westkettle batholith varies in composition from granodiorite to quartz diorite to diorite. The granodiorite phase is medium grained, grey to pink with chlorite or occasionally biotite-altered mafics. Local epidote and minor potassic alteration also occur. The quartz diorite phase is commonly foliated and porphyritic. These phases are intruded by quartz monzonite, quartz-k-feldspar and andesitic dikes. Veins are composed of quartz, quartz and k-feldspar or quartz-calcite plus or minus pyrite. The veins are commonly associated with a clay-rich fault gouge.

The Carmi and Butcher Boy workings appear to be on the same faulted vein, following a shear zone in fine-grained granodiorite. The shear zone strikes 090 degrees and dips 45 to 60 degrees southward. It has been traced for over 549 metres strike length, despite minor fault displacement. The vein varies from 5 to 213 centimetres width. One mineralized ore shoot near the surface was reported to be 76.2 metres long.

BEAVERDELL past producer (Polymetallic veins Ag-Pb-Zn+/-Au)

Minfile 082ESW030

Nine kilometres southeast

Granodiorite of the Westkettle batholith underlies most of the area. It has been intruded by small quartz monzonite porphyry stocks including the Beaverdell, Tuzo Creek, Eugene Creek and Carmi stocks. Other granitic porphyry stocks that intrude the Westkettle batholith are the Beaverdell porphyry. These have been dated by potassium- argon methods as Eocene (Watson, P.H. (1981): Genesis and zoning of silver-gold veins in the Beaverdell area, south-central British Columbia; Leary, G.M. (1970): Petrology and structure of the Tuzo Creek molybdenite prospect near Penticton, British Columbia and Exploration in British Columbia 1995, pages 124-126. The Westkettle batholith has been correlated with the Nelson intrusions that has been dated by potassium-argon and uranium-lead methods as Middle Jurassic. The Westkettle batholith contains remnants of pendants and/or screens of metamorphosed Wallace Formation. The Wallace Formation is believed to be correlative with the upper sections of the Carboniferous to Permian Anarchist Group. Lithologies include metamorphosed andesitic tuffs and lavas, hornblende diorite porphyries, olivine gabbro and hornblendite, hornfels and minor limestone. The contact between the Wallace Formation and the Westkettle batholith is sinuous, trending north with gentle east dips. These are unconformably overlain by Oligocene tuffs and conglomerates and Miocene plateau basalts. Westkettle granodiorite or Beaverdell quartz monzonite are the dominant hostrocks. Mineralization rarely extends into the Wallace Formation to the east.

In general, quartz breccia veins and stockworks are so complex that continuous mineralized sections are a maximum of a few metres before being faulted or disrupted. Nevertheless, some mineralized zones have been found that extend up to 150 metres horizontally.

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Geology: Carmi Property Area(cont’d)

Beaverdell past producer (cont’d)

Faults have been classified into five types based on their orientation, with each type having common orientation, kind of movement and age relationship: (1) high angle, north striking normal faults, (2) low angle, north trending strike-slip faults, (3) northeast-striking, high angle normal faults (terminal faults), (4) northeast-trending 'slice' faults and (5) crossfaults. The northeast-striking, high angle normal faults pose the greatest obstacle to systematic exploration and mining, as these faults are commonly spaced a few metres apart dividing veins into short segments in a northwest-downward direction.

The mineralized quartz veins occupy fissures along east-trending faults in the western part of the mine area and along northeast- trending faults in the eastern portion of the system (part of Bell, Upper Lass, Lower Lass). Towards the east the veins generally exhibit progressive increases in width, and intensity and extent of wallrock alteration. Propylitic alteration is found in the wallrock up to 8 metres from the veins. Thin section studies show amphiboles almost entirely converted to chlorite and feldspars replaced by clay and calcite. The Bell and Lass veins average 0.9 and 1.5 metres wide respectively, but are rarely continuous for more than 5 to 10 metres without offset.

A series of widely spaced, north to northeast striking, southeast-dipping faults divide the mineralized system into large blocks, often with up to 100 metres of vertical displacement between them.

The West Terminal fault separates the Bell and Upper Lass veins and the East Terminal fault separates the Upper and Lower Lass vein. The East Terminal fault has displaced downwards the eastern- half of the Lass vein (Lower Lass) by 213 metres. The veins are chopped into small segments by northeast striking, closely spaced normal faults which flatten the dip to the northwest and generally show less than a metre displacement.

INYO-ACKWORTH past producer (Polymetallic veins Ag-Pb-Zn+/-Au)

Minfile 082ESW059

Five kilometres south

Locally, the Inyo occurrence is hosted by granodiorite of the Jurassic Westkettle batholith. The granodiorite is generally massive and fresh but is increasingly saussuritized near the shear zone hosting the Inyo occurrence. The geology of Cranberry Ridge, immediately west of Beaverdell, is similar to that underlying Mount Wallace to the west. Granodiorite of the Westkettle batholith, grading to quartz diorite and diorite, underlies most of Cranberry Ridge. To the immediate north, the Westkettle batholith has intruded Permian Wallace Formation metavolcanics and metasediments, now present as roof pendants. Younger Eocene intrusions and dikes have intruded both Westkettle granodiorite and Wallace Formation rocks.

The granodiorite is cut by a strong shear zone that has been exposed by surface and underground workings at the Inyo occurrence. The average width of the shear zone is 2 metres and is well defined by a rusty fault gouge, vuggy quartz and manganese staining. The shear zone strikes 080 degrees and is exposed over 300 metres in the old workings. A vuggy quartz-calcite vein, 5 to 15 centimetres wide, carries pyrite, galena, sphalerite, tetrahedrite and native silver mineralization. Strong sericitic alteration and kaolin are also associated with mineralization. There is some indication that high silver values are associated with galena near surface and gold values are associated with sphalerite at depth (Assessment Report 20922).

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Geology: Carmi Property Area (cont’d)

SALLY past producer (Polymetallic veins Ag-Pb-Zn+/-Au)

Minfile 082ESW073

Eight kilometres south

Granodiorite of the Westkettle batholith underlies most of the area. It has been intruded by small quartz monzonite porphyry stocks including the Beaverdell, Tuzo Creek, Eugene Creek and Carmi stocks. Other granitic porphyry stocks that intrude the Westkettle batholith are the Beaverdell porphyry. These have been dated by potassium- argon methods as Eocene (Watson, P.H. (1981): Genesis and zoning of silver-gold veins in the Beaverdell area, south-central British Columbia; Leary, G.M. (1970): Petrology and structure of the Tuzo Creek molybdenite prospect near Penticton, British Columbia and Exploration in British Columbia 1995, pages 124-126. The Westkettle batholith has been correlated with the Nelson intrusions that has been dated by potassium-argon and uranium-lead methods as Middle Jurassic. The Westkettle batholith contains remnants of pendants and/or screens of metamorphosed Wallace Formation. The Wallace Formation is believed to be correlative with the upper sections of the Carboniferous to Permian Anarchist Group. Lithologies include metamorphosed andesitic tuffs and lavas, hornblende diorite porphyries, olivine gabbro and hornblendite, hornfels and minor limestone. The contact between the Wallace Formation and the Westkettle batholith is sinuous, trending north with gentle east dips.

These are unconformably overlain by Oligocene tuffs and conglomerates and Miocene plateau basalts. Westkettle granodiorite or Beaverdell quartz monzonite are the dominant hostrocks. Mineralization rarely extends into the Wallace Formation to the east.

A series of dikes, ranging in composition from quartz latite and quartz monzonite porphyries to hornblende andesite porphyries, are found throughout the area. In the Beaverdell camp, fine grained, brown andesite dikes, referred to as Wellington-type dikes, are believed to be pre-mineralization. One of these was dated by potassium-argon methods at 61.6 +/- 2.2 Ma (Watson, P.H., 1981). Quartz latite dikes are referred to as Idaho-type dikes and thought to be syn or post-mineralization. One of these has given a potassium-argon age of 50.6 +/- 1.5 Ma (Watson, P.H., 1981).

The Sally mine is comprised of the Sally (Lot 2092), Rob Roy (Lot 2093) and Pueblo (Lot 1205s) Crown-granted claims where mineralized quartz veins occupy shears along east striking, steeply southward dipping faults in Westkettle granodiorite. The main vein averages 76 centimetres in width with propylitic alteration extending up to 8 metres in the wallrock. The quartz veins have been extensively faulted with the most important type of post-ore faulting being high-angle and normal. These faults strike north to northeast and dip west. The veins are subsequently rarely continuous without offset, however, some ore shoots show only minor offset over larger horizontal distances. Thin-section studies show amphiboles almost entirely altered to chlorite and feldspars replaced by clay and calcite.

Past production has included 10,413 tonnes of ore from which 60,998,814 grams of silver, 5007 grams of gold, 486,167 kilograms of lead and 215,375 kilograms of zinc were recovered. Production commenced in 1901 and ran continuously between 1904 and 1941, except 1911 and 1912.

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Geology: Carmi Property Area (cont’d)

HIGHLAND LASS past producer (Polymetallic veins Ag-Pb-Zn+/-Au)

Minfile 082ESW133

Eight kilometres southeast

Granodiorite of the Westkettle batholith underlies most of the area. It has been intruded by small quartz monzonite porphyry stocks including the Beaverdell, Tuzo Creek, Eugene Creek and Carmi stocks. Other granitic porphyry stocks that intrude the Westkettle batholith are the Beaverdell porphyry. These have been dated by potassium- argon methods as Eocene (Watson, P.H. (1981): Genesis and zoning of silver-gold veins in the Beaverdell area, south-central British Columbia; Leary, G.M. (1970): Petrology and structure of the Tuzo Creek molybdenite prospect near Penticton, British Columbia and Exploration in British Columbia 1995, pages 124-126. The Westkettle batholith has been correlated with the Nelson intrusions that has been dated by potassium-argon and uranium-lead methods as Middle Jurassic.

The Westkettle batholith contains remnants of pendants and/or screens of metamorphosed Wallace Formation. The Wallace Formation is believed to be correlative with the upper sections of the Carboniferous to Permian Anarchist Group. Lithologies include metamorphosed andesitic tuffs and lavas, hornblende diorite porphyries, olivine gabbro and hornblendite, hornfels and minor limestone. The contact between the Wallace Formation and the Westkettle batholith is sinuous, trending north with gentle east dips. These are unconformably overlain by Oligocene tuffs and conglomerates and Miocene plateau basalts.

Westkettle granodiorite or Beaverdell quartz monzonite are the dominant hostrocks. Mineralization rarely extends into the Wallace Formation to the east.

A series of dikes, ranging in composition from quartz latite and quartz monzonite porphyries to hornblende andesite porphyries, are found throughout the area. In the Beaverdell camp, fine grained, brown andesite dikes, referred to as Wellington-type dikes, are believed to be pre-mineralization. One of these was dated by potassium-argon methods at 61.6 +/- 2.2 Ma (Watson, P.H., 1981). Quartz latite dikes are referred to as Idaho-type dikes and thought to be syn or post-mineralization. One of these has given a potassium-argon age of 50.6 +/- 1.5 Ma (Watson, P.H., 1981).

Beaverdell silver-rich veins are found in a 3.0 by 0.8 kilometre belt, referred to as the Beaverdell silver-lead-zinc vein camp. Five distinctly separate quartz vein systems are arranged roughly en echelon in this structural zone. The west-half contains the Wellington (Lot 2621), Sally (082ESW075, Lot 2092) and Rob Roy (Lot 2093, also part of Sally) systems which all strike east and dip from 70 degrees south to vertical. The Wellington and Sally each comprise two separate veins and the Rob Roy three. In the central part of the zone, the Bell (082ESW030, Lot 2343) comprises two veins which strike east to northeast and dip south to southeast. The eastern part of the zone contains the upper and lower sections of the Lass (082ESW133) and Highland Lass (Lot 2341, also part of the Bell) vein which strikes northeast and dips 50 degrees southeast.

In general, quartz breccia veins and stockworks are so complex that continuous mineralized sections are a maximum of a few metres before being faulted or disrupted. Nevertheless, some mineralized zones have been found that extend up to 150 metres horizontally.

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Geology: Carmi Property Area (cont’d)

Highland Lass past producer (cont’d)

Faults have been classified into five types based on their orientation, with each type having common orientation, kind of movement and age relationship: (1) high angle, north-striking normal faults, (2) low angle, north trending, strike-slip faults, (3) northeast striking, high angle normal faults (terminal faults), (4) northeast trending, 'slice' faults and (5) crossfaults. The northeast striking, high angle normal faults pose the greatest obstacle to systematic exploration and mining, as these faults are commonly spaced a few metres apart dividing veins into short segments in a northwest-downward direction.

HIGHLAND CHIEF past producer (Polymetallic veins Ag-Pb-Zn+/-Au)

Minfile 082ESW145

Eight kilometres southeast

The Highland Chief claim (Lot 2345) adjoins the Beaverdell mine (082ESW030) on the northeast. Mineralized quartz vein structures occur in a fault/shear zone at or near the contact of Wallace Formation metavolcanic and metasedimentary rocks which overlies Westkettle granodiorite, estimated to lie 91 metres vertically below.

REVENGE past producer (Polymetallic veins Ag-Pb-Zn+/-Au)

Minfile 082ESW197

Six kilometres southeast

The Revenge (Lot 3294s) adjoins the Beaverdell mine (082ESW030) in the southeast and the Sally mine (082ESW073) in the south. The property is underlain by Westkettle granodiorite. Quartz veins and veinlets averaging 15 centimetres in width occupy east trending shear zones and are displaced 30 to 60 centimetres by numerous faults.

The shear zones are locally silicified.

Granodiorite of the Westkettle batholith underlies most of the area. It has been intruded by small quartz monzonite porphyry stocks including the Beaverdell, Tuzo Creek, Eugene Creek and Carmi stocks. Other granitic porphyry stocks that intrude the Westkettle batholith are the Beaverdell porphyry. These have been dated by potassium- argon methods as Eocene (Watson, P.H. (1981): Genesis and zoning of silver-gold veins in the Beaverdell area, south-central British Columbia; Leary, G.M. (1970): Petrology and structure of the Tuzo Creek molybdenite prospect near Penticton, British Columbia and Exploration in British Columbia 1995, pages 124-126. The Westkettle batholith has been correlated with the Nelson intrusions that has been dated by potassium-argon and uranium-lead methods as Middle Jurassic. The Westkettle batholith contains remnants of pendants and/or screens of metamorphosed Wallace Formation. The Wallace Formation is believed to be correlative with the upper sections of the Carboniferous to Permian Anarchist Group. Lithologies include metamorphosed andesitic tuffs and lavas, hornblende diorite porphyries, olivine gabbro and hornblendite, hornfels and minor limestone. The contact between the Wallace Formation and the Westkettle batholith is sinuous, trending north with gentle east dips. These are unconformably overlain by Oligocene tuffs and conglomerates and Miocene plateau basalts. Westkettle granodiorite or Beaverdell quartz monzonite are the dominant hostrocks. Mineralization rarely extends into the Wallace Formation to the east.

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Geology: Carmi Property Area (cont’d)

Revenge past producer (cont’d)

A series of dikes, ranging in composition from quartz latite and quartz monzonite porphyries to hornblende andesite porphyries, are found throughout the area. In the Beaverdell camp, fine grained, brown andesite dikes, referred to as Wellington-type dikes, are believed to be pre-mineralization. One of these was dated by potassium-argon methods at 61.6 +/- 2.2 Ma (Watson, P.H., 1981). Quartz latite dikes are referred to as Idaho-type dikes and thought to be syn or post-mineralization. One of these has given a potassium-argon age of 50.6 +/- 1.5 Ma (Watson, P.H., 1981).

OBSERVATORY past producer (Polymetallic veins Ag-Pb-Zn+/-Au)

Minfile 082ESW237

Two kilometres east

The hostrock of the Observatory occurrence is quartz diorite of the Jurassic Westkettle batholith. For a more detailed description of the regional geology refer to the Carmi occurrence (082ESW029).

GEOLOGY: CARMI PROPERTY

The property is predominantly underlain by the Westkettle batholith which varies in composition from granodiorite to quartz diorite to diorite, with a roof pendants and/or an irregular body of Permian Wallace Formation composed of metamorphosed pelitic, siliceous and calcareous sediments.

Descriptions of the geology on reported prospects within the Carmi Property are reported as follows. The descriptions herein are copied from Minfile.

MAY prospect (Polymetallic veins Ag-Pb-Zn+/-Au)

Minfile 08ESW103

Within Tenure 1060416

The May prospect lies within a small roof pendant of Permian Wallace Formation. The pendant is composed of metamorphosed pelitic, siliceous and calcareous sediments bordering foliated granodiorite. Rock types encountered on the south side of Carmi Creek are argillaceous quartzite, chlorite schist and chlorite-talc schist. Hornblende-biotite foliated granodiorite occur adjacent to schists and quartzite. Quartz, feldspar dikes and sills intrude chlorite schists along defined fractures. Contacts with country rocks are poorly defined. Latite and dacite dikes are also present. Their contacts are well defined with chilled margins.

The May prospect is located approximately 300 metres east of the intersection of two major faults, an east-west fault in the Carmi Creek valley and a north-south fault along Second Creek. A shear zone in cherty and locally schistose metasediments trends northwest from the Carmi and Butcher Boy mines over about 914 metres on surface. The exact relationship between the shear zone on the May claim and the Carmi-Butcher Boy shear is unknown. The May shear is evident by visible slickensides. Associated closely-spaced fractures strike 150 degrees. A northwest striking overturned fold was observed above the upper adit portal.

CAPCO prospect (Polymetallic veins Ag-Pb-Zn+/-Au)

Minfile 08ESW104

Within Tenure 1060416

The Capco prospect lies within a small roof pendant of Permian Wallace Formation. The pendant is

composed of metamorphosed pelitic, siliceous and calcareous sediments bordering foliated

granodiorite or quartz diorite.

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Geology: Carmi Property (cont’d)

Capco prospect (cont’d)

Rock types encountered on the south side of Carmi Creek are argillaceous quartzite, chlorite schist and chlorite-talc schist. Hornblende, biotite foliated granodiorite occur adjacent to schists and quartzite. Quartz, feldspar dikes and sills intrude chlorite schists along defined fractures. Contacts with country rocks are poorly defined. Fine-grained rhyodacite, latite and dacite dikes are common. Their contacts are well defined with chilled margins.

Figure 5. Carmi Property: Property Geology

(from MapPlace)

GEOLOGY MAP LEGEND

Eocene EPEMK Penticton Group-Marion, Kettle River, Springbrook, Maroma, and Skaha Formations

Paleocene to Eocene PeEstgr Shepard, Tuzo Creek, Shingle Creek Intrusions granite, allkali granite, feldspar granite intrusive rocks

Middle Jurassic Mgr unnamed granite, allkali feldspar granite intrusive rocks

Carboniferous to Permean CPAS Anarchist schist greenstone, greenstone schist metamorphic rocks

Cretaceous KOL OK Batholith-Ladybird and Valhalla intrusive rocks, undivided

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Geology: Carmi Property (cont’d)

BUTCHER BOY prospect (Polymetallic veins Ag-Pb-Zn+/-Au)

Minfile 08ESW132

Within Tenure 1060416

The Butcher Boy is hosted by granodiorite of the Jurassic Westkettle batholith and an irregular body of Permian Wallace Formation approximately 2.56 square kilometres. The Westkettle batholith varies in composition from granodiorite to quartz diorite to diorite. The granodiorite phase is medium grained, grey to pink with chlorite or occasionally biotite-altered mafics. Local epidote and minor potassic alteration also occur. The quartz diorite phase is commonly foliated and porphyritic. These phases are intruded by quartz monzonite, quartz-k-feldspar and andesitic dikes. Veins are composed of quartz, quartz and k-feldspar or quartz-calcite plus or minus pyrite. The veins are commonly associated with a clay-rich fault gouge.

The Butcher Boy and Carmi workings appear to be on the same faulted vein, following a shear zone in fine-grained granodiorite. The shear zone strikes 090 degrees and dips 45 to 60 degrees southward. It has been traced for over 549 metres strike length, despite minor fault displacement. The vein varies from 5 to 213 centimetres width. One mineralized ore shoots near the surface was reported to be 76.2 metres long.

MINERALIZATION: CARMI PROPERTY AREA

Descriptions on the mineralization of past producers in the area of the Carmi Property are copied from Minfile. The distance is relative to the Carmi property.

CARMI past producer (Polymetallic veins Ag-Pb-Zn+/-Au; Porphyry Mo (Low F- type))

Minfile 082ESW029

Within Tenure 1060416

Mineralization consists of pyrite with lesser sphalerite and galena carrying gold and silver values. Minor chalcopyrite and molybdenite are also present. The gangue is quartz and ankerite and in places intensely sericitized andesitic dike.

In 1981, two drillholes (81-6 and 7) intersected vein-hosted mineralization at deeper levels than previously worked in the Carmi mine area. The more significant intersections were from drillhole K-81-7. The 1.4-metre interval between 90.5 and 91.9 metres (Sample 2197) intersected 0.07 gram per tonne gold, 1.4 grams per tonne silver and 0.017 per cent zinc (Assessment Report 9174). Sample 2199, a 1.7-metre interval between 94.7 and 95.1 metres, intersected 1.0 gram per tonne gold, 9.1 grams per tonne silver and 0.19 per cent zinc (Assessment Report 9174).

The Carmi has produced 4780 tonnes of ore intermittently between 1901 and 1915, then annually between 1932 and 1940. Recovery included 279,585 grams of silver, 87,929 grams of gold, 3179 kilograms of lead and 7303 kilograms of zinc.

BEAVERDELL past producer (Polymetallic veins Ag-Pb-Zn+/-Au)

Minfile 082ESW030

Nine kilometres southeast

Beaverdell silver-rich veins are found in a 3.0 by 0.8 kilometre belt, referred to as the Beaverdell silver-lead-zinc vein camp. Five distinctly separate quartz vein systems are arranged roughly en echelon in this structural zone. The west-half contains the Wellington (Lot 2621), Sally (082ESW075, Lot 2092) and Rob Roy (Lot 2093, also part of Sally) systems which all strike east and dip from 70 degrees south to vertical.

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Mineralization: Carmi Property Area (cont’d)

Beaverdell past producer (cont’d)

The Wellington and Sally each comprise two separate veins and the Rob Roy three. In the central part of the zone, the Bell (082ESW030, Lot 2343) comprises two veins which strike east to northeast and dip south to southeast. The eastern part of the zone contains the upper and lower sections of the Lass (082ESW133) and Highland Lass (Lot 2341, also part of the Bell) vein which strikes northeast and dips 50 degrees southeast.

In general, quartz breccia veins and stockworks are so complex that continuous mineralized sections are a maximum of a few metres before being faulted or disrupted. Nevertheless, some mineralized zones have been found that extend up to 150 metres horizontally. Faults have been classified into five types based on their orientation, with each type having common orientation, kind of movement and age relationship: (1) high angle, north striking normal faults, (2) low angle, north trending strike-slip faults, (3) northeast-striking, high angle normal faults (terminal faults), (4) northeast-trending 'slice' faults and (5) crossfaults. The northeast-striking, high angle normal faults pose the greatest obstacle to systematic exploration and mining, as these faults are commonly spaced a few metres apart dividing veins into short segments in a northwest-downward direction.

Vein-type mineralization of the Beaverdell camp is characterized by a high silver content. Mineralization is composed of galena, sphalerite and pyrite with lesser amounts of arsenopyrite, tetrahedrite, pyrargyrite, chalcopyrite, polybasite, acanthite, native silver and pyrrhotite.

The gangue minerals in veins are mainly quartz with lesser amounts of calcite, fluorite and sericite with rare barite. 'Ore ground' has been described as propylitic altered granodiorite, quartz diorite and quartz monzonite of the Westkettle batholith, up to 15 metres wide. These zones are characterized by sericite, clay minerals, chlorite, calcite, epidote and hematite. The fault-bounded veins commonly have a banded texture defined by outer, crudely parallel sulphide stringers. The wallrocks are brecciated and sheared over 30 to 150 centimetres width adjacent to veins. Weak sericite alteration of feldspars is pervasive in the Westkettle batholith.

The interpretation of galena lead-lead isotope age data coupled with geometrical and age relationships between dikes and veins suggests mineralization was formed around 50 Ma, coeval with Eocene stocks (Canadian Journal of Earth Sciences, Vol. 19, No. 6, pages 1264-1274, 1982).

Major metallic minerals in the quartz veins are galena, native silver and pyrrhotite. The gangue material is mainly quartz with some altered wallrock fragments included in the vein and small concentrations of calcite and occasional fluorite. Some supergene silver mineralization is present, chiefly as native silver wires and plates. Native silver is especially abundant close to fault intersections. However, most of the mineralization is of hypogene origin.

Two zones of distinctive mineralization are recognized in the Lass vein system. The boundary between these two zones trends north and lies within the Lower Lass, about 120 metres east of the East Terminal fault. In contrast to the lower eastern part (Lower Lass), the upper western portion (Upper Lass) of the vein system is characterized by high silver and moderate zinc and lead values, more gangue, and thinner veins within multiple vein and stringer zones. The lower east end of the Lower Lass however, contains high gold, moderate to high zinc and lead values and low silver values. Silver associates with galena, sphalerite and antimony sulphosalts and gold associates with pyrite and chalcopyrite.

Reserve figures are not computed at the Beaverdell mine due to the extensively faulted vein, but in 1989 approximately 3400 tonnes of ore was milled per month.

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Mineralization: Carmi Property Area (cont’d)

INYO-ACKWORTH past producer (Polymetallic veins Ag-Pb-Zn+/-Au)

Minfile 082ESW059

Five kilometres south

Several samples were taken in 1925. A sample of sorted lead ore from the main shaft yielded 3.43 grams per tonne gold, 274.28 grams per tonne silver, and 22 per cent lead (Minister of Mines Annual Report 1925, page 199). Another sample of sorted ore from a 21-metre open-cut yielded 17.14 grams per tonne gold, 274.28 grams per tonne silver, 4 per cent lead and 20 per cent zinc (Minister of Mines Annual Report 1925, page 199). Resampling of the old workings in 1979 yielded the following results: sample W5 from the lower dump adit yielded 4.11 grams per tonne gold and 78.17 grams per tonne silver (Assessment Report 7358); sample W7, from the upper opencut, yielded 0.72 gram per tonne gold and 10.78 grams per tonne silver (Assessment Report 7358).

Recorded production from the Inyo-Ackworth occurrence included 13 tonnes in 1918 and 1927. From this ore, 3639 grams of silver, 62 grams of gold, 1158 kilograms of lead and 1171 kilograms of zinc were recovered. Another 12.7 tonnes was reported shipped to the Trail smelter in 1925 (Minister of Mines Annual Report 1925, page 199).

In 1997, St. Elias Mines Ltd., drilled 9 holes totalling 590 metres on the Cranberry Ridge property.

Earlier trench samples assayed up to 93.2 grams per tonne gold, 428 grams per tonne silver and 2.2 per cent copper (Exploration in BC 1997, page 49). Also in 1997 a selected grab sample from the workings assayed 2.36 grams per tonne gold and 113 grams per tonne silver (Assessment Report 34306).

In 2007 a ten centimetre wide chip sample was taken over a five centimetre wide galena vein from the workings and assayed 7.46 grams per tonne gold and greater than 200 ounces per tonne silver (Assessment Report 34306).

SALLY past producer (Polymetallic veins Ag-Pb-Zn+/-Au)

Minfile 082ESW073

Eight kilometres south

Beaverdell silver-rich veins are found in a 3.0 by 0.8 kilometre belt, referred to as the Beaverdell silver-lead-zinc vein camp. Five distinctly separate quartz vein systems are arranged roughly en echelon in this structural zone. The west-half contains the Wellington (Lot 2621), Sally (082ESW075, Lot 2092) and Rob Roy (Lot 2093, also part of Sally) systems which all strike east and dip from 70 degrees south to vertical. The Wellington and Sally each comprise two separate veins and the Rob Roy three. In the central part of the zone, the Bell (082ESW030, Lot 2343) comprises two veins which strike east to northeast and dip south to southeast. The eastern part of the zone contains the upper and lower sections of the Lass (082ESW133) and Highland Lass (Lot 2341, also part of the Bell) vein which strikes northeast and dips 50 degrees southeast. In general, quartz breccia veins and stockworks are so complex that continuous mineralized sections are a maximum of a few metres before being faulted or disrupted. Nevertheless, some mineralized zones have been found that extend up to 150 metres horizontally. Faults have been classified into five types based on their orientation, with each type having common orientation, kind of movement and age relationship: (1) high angle, north-striking normal faults, (2) low angle, north trending, strike-slip faults, (3) northeast striking, high angle normal faults (terminal faults), (4) northeast trending, 'slice' faults and (5) crossfaults.

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Mineralization: Carmi Property Area (cont’d)

Sally past producer (cont’d)

The northeast striking, high angle normal faults pose the greatest obstacle to systematic exploration and mining, as these faults are commonly spaced a few metres apart dividing veins into short segments in a northwest-downward direction.

Vein-type mineralization of the Beaverdell camp is characterized by a high silver content. Mineralization is composed of galena, sphalerite and pyrite with lesser amounts of arsenopyrite, tetrahedrite, pyrargyrite, chalcopyrite, polybasite, acanthite, native silver and pyrrhotite. The gangue minerals in veins are mainly quartz with lesser amounts of calcite, fluorite and sericite with rare barite. 'Ore ground' has been described as propylitic altered granodiorite, quartz diorite and quartz monzonite of the Westkettle batholith, up to 15 metres wide. These zones are characterized by sericite, clay minerals, chlorite, calcite, epidote and hematite. The fault-bounded veins commonly have a banded texture defined by outer, crudely parallel sulphide stringers. The wallrocks are brecciated and sheared over 30 to 150 centimetres width adjacent to veins. Weak sericite alteration of feldspars is pervasive in the Westkettle batholith.

The interpretation of galena lead-lead isotope age data coupled with geometrical and age relationships between dikes and veins suggests mineralization was formed around 50 Ma, coeval with Eocene stocks (Canadian Journal of Earth Sciences, Vol. 19, No. 6, pages 1264-1274, 1982).

Mineralization in the veins consists of argentite, tetrahedrite, pyrargyrite with lesser galena, sphalerite and pyrite in a gangue of quartz with altered wallrock fragments and small concentrations of calcite. Some supergene mineralization is present, chiefly as native silver near fault planes and occurs in a gangue of chlorite, clay, calcite-altered wallrock and turgite (a red fibrous mineral equivalent to hematite with absorbed water). The quartz vein also exhibits slight oxidation. A sample taken from the No. 1 tunnel on the Rob Roy in 1913 yielded 0.68 gram per tonne gold and 1975 grams per tonne silver. Another sample from the No. 2 tunnel yielded 1.37 grams per tonne gold and 1079 grams per tonne silver (Minister of Mines Annual Report 1913, page K155). Samples taken during ongoing property exploration by Teck Corp. in 1987 yielded similarly high silver values. Sample 87-5, taken from a 18-centimetre wide shear zone with 0.6 to 2.5 centimetre wide quartz veins, yielded 2.06 grams per tonne gold and 4226 grams per tonne silver (Assessment Report 16771).

Past production has included 10,413 tonnes of ore from which 60,998,814 grams of silver, 5007 grams of gold, 486,167 kilograms of lead and 215,375 kilograms of zinc were recovered

HIGHLAND LASS past producer (Polymetallic veins Ag-Pb-Zn+/-Au)

Minfile 082ESW133

Eight kilometres southeast

Vein-type mineralization of the Beaverdell camp is characterized by a high silver content. Mineralization is composed of galena, sphalerite and pyrite with lesser amounts of arsenopyrite, tetrahedrite, pyrargyrite, chalcopyrite, polybasite, acanthite, native silver and pyrrhotite. The gangue minerals in veins are mainly quartz with lesser amounts of calcite, fluorite and sericite with rare barite. 'Ore ground' has been described as propylitic altered granodiorite, quartz diorite and quartz monzonite of the Westkettle batholith, up to 15 metres wide. These zones are characterized by sericite, clay minerals, chlorite, calcite, epidote and hematite. The fault-bounded veins commonly have a banded texture defined by outer, crudely parallel sulphide stringers.

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Mineralization: Carmi Property Area (cont’d)

Highland Lass past producer (cont’d)

The wallrocks are brecciated and sheared over 30 to 150 centimetres width adjacent to veins. Weak sericite alteration of feldspars is pervasive in the Westkettle batholith.

The interpretation of galena lead-lead isotope age data coupled with geometrical and age relationships between dikes and veins suggests mineralization was formed around 50 Ma, coeval with Eocene stocks (Canadian Journal of Earth Sciences, Vol. 19, No. 6, pages 1264-1274, 1982).

The Highland Lass vein system averages 13 centimetres width. The system is funnel-shaped and widens to the west. In plan view, the vein system is composed of a series of faulted ore shoots, elongate along strike and en echelon downdip. In general, in the upper part of the vein system there is a higher gangue content in the veins than in the Lower Lass. There are no strong trends between gangue content or vein thickness and silver values. Gold-silver zonation is present in the system with silver values highest in the higher parts of the system and centrally between the hangingwall and footwall. This is supported by fluid inclusion data indicating temperatures of 180 to 260 degrees Celsius, less saline (less than 15 per cent) and lower pressure solutions (Watson, 1981). Gold is concentrated at depth in the system and in several small locations along the system footwall and supported by fluid inclusion temperatures of 260 to 310 degrees Celsius, 15 per cent salinity and high pressure solutions (Watson, 1981). Elemental correlations were found between silver content and galena, sphalerite and antimony sulphosalts (Watson, 1981). Gold is associated with pyrite and chalcopyrite (Watson, 1981).

The Highland Lass vein system is characterized by high silver values, moderate zinc and lead values, more gangue and thinner veins than the Lower Lass system, and multiple vein and stringers zones. An Idaho-type dike zone is well exposed on the No. 8 level of the Highland Lass. The zone is composed of numerous subparallel slice faults and faulted segments with one or more dikes. The overall strike of the zone is 090 degrees and dips southeast somewhat more steeply than the Lass vein system.

Seven stages of mineral paragenesis have been recognized in the Lass vein system with many veins containing one or more of the following stages from oldest to youngest: (1) quartz-pyrite and minor sphalerite, (2) pyrite brecciation and replacement by arsenopyrite, (3) dark sphalerite with emulsions of chalcopyrite, (4) main depositional stage of galena, light sphalerite with little or no chalcopyrite, (5) silver minerals closely associated with galena including pyrargyrite, tetrahedrite and polybasite, (6) late gangue (mainly quartz) and (7) minor silver supergene mineralization.

HIGHLAND CHIEF past producer (Polymetallic veins Ag-Pb-Zn+/-Au)

Minfile 082ESW145

Eight kilometres southeast

Mineralization is found in quartz veins in metamorphosed Wallace Formation rocks and occurs as low-grade segregations or as stringer- type mineralization 5 to 10 centimetres in width. The mineralization consists of galena, sphalerite, pyrite, arsenopyrite, chalcopyrite and occasional films of native silver in a gangue of mainly quartz. The mineralized structures tend to horsetail and disperse within the Wallace Formation. The veins and hostrocks are intensely brecciated and fractured. A picked sample of ore-grade material from the Blacksmith tunnel in 1926 yielded 1371.2 grams per tonne silver, 0.7 gram per tonne gold, 12 per cent lead and 15 per cent zinc (Minister of Mines Annual Report 1916, page A208).

Recorded production from the Highland Chief was 13 tonnes mined in 1922, 1938, 1939 and 1941. Recovery included 72,252 grams of silver, 836 kilograms of lead and 797 kilograms of zinc.

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Mineralization: Carmi Property Area (cont’d)

REVENGE past producer (Polymetallic veins Ag-Pb-Zn+/-Au)

Minfile 082ESW197

Six kilometres southeast

Beaverdell silver-rich veins are found in a 3.0 by 0.8 kilometre belt, referred to as the Beaverdell silver-lead-zinc vein camp. Five distinctly separate quartz vein systems are arranged roughly en echelon in this structural zone. The west-half contains the Wellington (Lot 2621), Sally (082ESW075, Lot 2092) and Rob Roy (Lot 2093, also part of Sally) systems which all strike east and dip from 70 degrees south to vertical. The Wellington and Sally each comprise two separate veins and the Rob Roy three. In the central part of the zone, the Bell (082ESW030, Lot 2343) comprises two veins which strike east to northeast and dip south to southeast. The eastern part of the zone contains the upper and lower sections of the Lass (082ESW133) and Highland Lass (Lot 2341, also part of the Bell) vein which strikes northeast and dips 50 degrees southeast.

In general, quartz breccia veins and stockworks are so complex that continuous mineralized sections are a maximum of a few metres before being faulted or disrupted. Nevertheless, some mineralized zones have been found that extend up to 150 metres horizontally.

Faults have been classified into five types based on their orientation, with each type having common orientation, kind of movement and age relationship: (1) high angle, north-striking normal faults, (2) low angle, north trending, strike-slip faults, (3) northeast striking, high angle normal faults (terminal faults), (4) northeast trending, 'slice' faults and (5) crossfaults. The northeast striking, high angle normal faults pose the greatest obstacle to systematic exploration and mining, as these faults are commonly spaced a few metres apart dividing veins into short segments in a northwest-downward direction.

Vein-type mineralization of the Beaverdell camp is characterized by a high silver content. Mineralization is composed of galena, sphalerite and pyrite with lesser amounts of arsenopyrite, tetrahedrite, pyrargyrite, chalcopyrite, polybasite, acanthite, native silver and pyrrhotite. The gangue minerals in veins are mainly quartz with lesser amounts of calcite, fluorite and sericite with rare barite. 'Ore ground' has been described as propylitic altered granodiorite, quartz diorite and quartz monzonite of the Westkettle batholith, up to 15 metres wide. These zones are characterized by sericite, clay minerals, chlorite, calcite, epidote and hematite. The fault-bounded veins commonly have a banded texture defined by outer, crudely parallel sulphide stringers. The wallrocks are brecciated and sheared over 30 to 150 centimetres width adjacent to veins. Weak sericite alteration of feldspars is pervasive in the Westkettle batholith.

The interpretation of galena lead-lead isotope age data coupled with geometrical and age relationships between dikes and veins suggests mineralization was formed around 50 Ma, coeval with Eocene stocks (Canadian Journal of Earth Sciences, Vol. 19, No. 6, pages 1264-1274, 1982).

Mineralization consists of sphalerite, galena and pyrite as nodules in a gangue of mainly quartz. A 13-centimetre pay streak was found in 1917. A sample taken in 1919 from the lower tunnel assayed 4.46 grams per tonne gold, 3504 grams per tonne silver and 5.8 per cent lead (Minister of Mines Annual Report 1919, page N169). The ore was also reported to carry high zinc. A sample from the upper tunnel taken in 1922 yielded trace gold, 5280 grams per tonne silver, 14 per cent lead and 5 per cent zinc (Minister of Mines Annual Report 1922, page N173). Sample 87-19, a 9-centimetre chip sample taken from the No. 2 tunnel in 1987 as part of ongoing property exploration, yielded 1836.3 grams per tonne silver and 1.02 grams per tonne gold (Assessment Report 16771).

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Mineralization: Carmi Property Area (cont’d)

Revenge past producer (cont’d)

The Revenge occurrence has produced 115 tonnes of ore intermittently between 1919 and 1935. A total of 564,053 grams of silver, 310 grams of gold, 5487 kilograms of lead and 3088 kilograms of zinc were recovered. Another 5.4 and 8 tonnes were reported mined in 1917 and 1918 respectively but no records could be found indicating shipment.

OBSERVATORY past producer (Polymetallic veins Ag-Pb-Zn+/-Au)

Minfile 082ESW237

Two kilometres east

A small high grade silver vein was reported discovered on the Observatory claim in 1904. It was reported that two or three carloads of ore would be ready for shipment that winter. The claim was Crown granted to J. Dale and A.S. Black in 1911. No further records are found until 1940 when 12 tonnes of ore were shipped by J. P. Gachain. A total of 6283 grams silver were recovered.

MINERALIZATION: CARMI PROPERTY

The mineralization on the MINFILE reported prospects within the Carmi Property are reported as follows. The descriptions herein are copied from Minfile.

MAY prospect (Polymetallic veins Ag-Pb-Zn+/-Au)

Minfile 08ESW103

Within Tenure 1060416

Mineralization is confined to shear planes and quartz veins hosted in quartzitic chlorite schists. A 5 to 10 centimetre wide silicified shear is located on a steep face immediately east of the lower adit portal. The shear contains galena with significant silver values. The mineralization was traced over 1.5 metres along the shear. A chip sample taken over 1.2 metres of this mineralization yielded 6362 grams per tonne silver (Assessment Report 3740).

A trench, located east of the adits, exposed disseminations of pyrite and veinlets of galena and native silver, similar to mineralized veins at the lower adit portal.

A number of shears containing streaks of grey gouge, intersected in the adits, are believed to carry native silver and galena. Fine streaks of pyrite were visible in quartzitic chlorite schists. Samples taken from the upper and lower adits in 1971, however, yielded minor gold, silver, copper and lead values (Assessment Report 3740).

CAPCO prospect (Polymetallic veins Ag-Pb-Zn+/-Au)

Minfile 08ESW104

Within Tenure 1060416

Mineralization is confined to shear zones exposed by blast trenches. In Trench 1, a strongly fractured shear zone contains scattered blebs of chalcopyrite in massive pyrrhotite over 30 centimetres width. The shear zone is 1.2 metres wide, strikes 030 degrees and dips steeply to the south. Mineralization in Trench 3, 23 metres to the northwest, is less massive. Assay samples from this sheared and fractured zone yielded 0.32 per cent copper, 9 parts per million molybdenum, 38 parts per million nickel and 460 parts per million cobalt (Assessment Report 3740). Trench 1 samples yielded 0.16 per cent copper (Assessment Report 3740). Diamond-drill hole #11, drilled in 1970 by International Minerals Corp., yielded massive pyrite and pyrrhotite between 21.6 and 41.4 metres.

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Mineralization: Carmi Property (cont’d)

Capco prospect (cont’d)

Assay samples yielded 0.17 gram per tonne gold and 6.86 gram per tonne silver between 27.1 and 33.5 metres (Assessment Report 3740).

BUTCHER BOY prospect (Polymetallic veins Ag-Pb-Zn+/-Au)

Minfile 08ESW132

Within Tenure 1060416

Mineralization consists of pyrite with lesser sphalerite and galena carrying gold and silver values. Minor chalcopyrite and molybdenite are also present. The gangue is quartz and ankerite and in places intensely sericitized andesitic dike.

A general sample of unsorted ore taken in 1930 from the shaft dump yielded 11.66 grams per tonne gold, 85.71 grams per tonne silver and 1.6 per cent lead (Minister of Mines Annual Report 1930, page 220). In the following year shipped ore averaged 17.14 grams per tonne gold, 102.86 grams per tonne silver and 3 per cent zinc (Minister of Mines Annual Report 1931, page A126).

The Butcher Boy has produced 2000 tonnes of ore intermittently between 1904 and 1940. Recovery included 21,337 grams of silver, 5195 grams of gold, 361 kilograms of lead and 634 kilograms of zinc.

2018 EXPLORATION PROGRAM

Prospecting and Rock Sampling

Purpose The purpose of the program was to locate any location of a geological prospect that may have the potential to be developed to an economic resource. Any indication of mineralization may indicate a potential concealed polymetallic or porphyry type deposit.

Prospecting Prospecting of area; orange flagging and marking of sample sites. Multiple photos taken of samples, and areas. GPS coordinates were taken, and all samples recorded and mapped. Prospecting notes, operating with equipment (Truck, GPS, Tools and sampling). Eighteen samples were taken. Field notes on the samples are shown in Appendix II

Sampling Bakus, McKinney, Mewton, and Dahl selected 33 samples six of which were assayed. Samples were taken from various locations throughout the property area as indicated on Figure 7. Laurence Sookochoff BSc., PEng. performed the historic research data compilation, mapping and technical report preparation.

Results Two assayed samples from the Butcher Boy dump, CD-07 and CD-20, showed elevated lead, zinc, silver, and gold values.

Assay results are provided within the 2018 Carmi report. Prospecting descriptions, and mapping are

additionally included.

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Figure .6 Index Map showing sample locations on Carmi Property (Base map: Google Earth)

Figure 7. Sample locations*and selected assays** (Base map from MapPlace)

* see Figure 6 for location on Carmi Property

** see Appendix I for complete assays

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INTERPRETATION & CONCLUSIONS

The 2018 exploration program of prospecting and sampling predominantly in the area of the May mineral showing on the Carmi Property was successful in that the descriptions of all eight rock samples collected in the prospecting program revealed potential gold/silver type mineral zones such as at the Butcher Boy prospect (Minfile 082ESW132) located on the Carmi property or at the Beaverdell past producer (Minfile 082ESW030) located nine kilometres southeast of the Carmi property.

As production from the Beaverdell mine, also referred to as the Highland Bell, was 1,076,005,759 grams of silver, 520,197 grams of gold, 11,598,238 kilograms of lead, 13,900,078 kilograms of zinc and 58,171 kilograms of cadmium from 1,198,829 tonnes of ore mined between 1913 and 1991, a comparable, if not a larger polymetallic, or potentially a deeper copper-gold porphyritic mineral zone, should be explored for on the Carmi property.

Moreover, as the Butcher Boy prospect, where 21,337 grams of silver, 5195 grams of gold, 361 kilograms of lead and 634 kilograms of zinc were produced from 2,000 tonnes of ore, may be an indication of a Beaverdell type mineral deposit in the comparable Wallace Formation and the Westkettle batholith geology, and controls of mineralized quartz veins occupying fault fissures, the Butcher Boy and the 549 metre shear zone between the Butcher Boy and Carmi workings, which appear to be on the same faulted east-west trending vein (Minfile), should be explored.

The May prospect, located between the Carmi and the Butcher Boy, may be on the structure although,

"The exact relationship between the shear zone on the May claim and the Carmi-Butcher Boy shear is unknown."

As assay of the eight rock samples taken between the Carmi and the Butcher Boy in the area of the May prospect (Figure 7) and which revealed potential gold/silver type mineral zones may help in locating, or a potential mineral zone within or associated with, the prospective mineral controlling structure.

RECOMMENDATIONS

It is recommended to assay the eight rock samples taken in the area of the May prospect.

In addition, the Butcher Boy area and the rock samples should be examined for the type of alteration, mineralization, and any pertinent geological aspects, with the resulting information used in the exploration for a potential mineral resource on the Carmi property.

A follow-up exploration program will be based on the results of the recommended program.

Respectfully submitted

Sookochoff Consultants Inc.

Laurence Sookochoff, PEng

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SELECTED REFERENCES

Bakus, J.N. - Geochemical and Physical Prospecting Report on the Carmi Butcher Boy Property., 2014.

AR 35057.

Corbett, G. – Geological Models in Epithermal-Porphyry Exploration: Terry Leach’s Legacy.

(Undated). [email protected].

MapPlace – Map downloads

082ESW029 – CARMI

082ESW030 – BEAVERDELL

082ESW059 – INYO ACKWORTH

082ESW073 – SALLY

082ESW103 – MAY

082ESW104 – CAPCO

082ESW132 – BUTCHER BOY

082ESW133 – HIGHLAND LASS

082ESW145 – HIGHLAND CHIEF

082ESW197 – REVENGE

082ESW237 – OBSERVATORY

MtOnline - MINFILE downloads.

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STATEMENT OF COSTS

Field work was performed on the Carmi Property between June 8, 2018 and June 29, 2018 to the value as follows:

Prospecting and Sampling

Labour C. Dahle: June 17, 2018 1 day @ $250.00/day -------------------------- 250.00 J. Mewton: June 16,17, 2018 2 days @ $250.00/day -------------------------- 500.00 B. McKinney: June 16-17, 2018 2 day @ $350.00/day --------------------------- 700.00 J. Bakus: June 15,17, 19, 2018 2 days @ $250.00/day -------------------------- 500.00 1,950.00

Travel/Transportation Vancouver to Beaverdell return 900 km Kamloops to Beaverdell return 480 km 1,380 kilometres @ $0.65 919.50

Exploration Equipment GPS, , clinometer, electronics, radios, etc ----- 20.00 Spot Locator's safety equipment and supplies - 20.00 Bear spray, axes, mallets, pry bars, etc -------- 20.00 Chainsaw ---------------------------------------------- 20.00 80.00

Food/Lodging

6 man days @ $ 100.00 ------------------ 600.00

Assays -------------------------------------------------- 358.86

Report

L. Sookochoff, PEng --------------------------------- 3,000.00

Maps --------------------------------------------------- 500.00

$ 6,488.86

=======

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CERTIFICATE

I, Laurence Sookochoff, of the City of Vancouver, in the Province of British Columbia, do hereby certify:

That I am a Consulting Geologist and principal of Sookochoff Consultants Inc. with an address at 120 125A-1030 Denman Street, Vancouver, BC V6G 2M6.

I, Laurence Sookochoff, further certify that:

1) I am a graduate of the University of British Columbia (1966) and hold a B.Sc. degree in Geology.

2) I have been practicing my profession for the past fifty-two years.

3) I am registered and in good standing with the Association of Professional Engineers and Geoscientists of British Columbia.

4) The information for this report is based on information as itemized in the Selected Reference section of this report, from exploration work done in the general area of the Greenwood Mining Camp.

5) I have no interest in the Carmi Property as described herein.

Laurence Sookochoff, P. Eng.

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FIELD CREW QUALIFICATIONS

John Bakus 12 years prospecting experience.

Bill McKinney: 10 years prospecting experience.

John Mewton: four years prospecting experience

Curtis Dahle: two years prospecting experience

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Appendix I

Sample Assays

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Appendix II

Sample Locations and Descriptions

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Carmi 2018 Assayed

Yellow designates assayed samples

Sample X 11U Y 11U Lat Lon Notes

CD-01-20 345867 5484212 49.490952 -119.12837 Butcher Boy Dump Area (center)

Assayed CD-03,07,11,15,19,20

Characteristics of CD-01-20 Butcher Boy samples include

quartz veining with massive pyrites, metased, sulphides,

sulphide stringers, massive crystalline quartz veining

shattered, med graining granodiorite pyritic cubing.

The dump material was almost entirely variably sized

up to a foot across and the samples were randomly

collected across the dump.

C-01 345723 5484132 49.490195 -119.130342 FB Massive brecciated quartz vein

C-02 345733 5484133 49.490208 -119.130188 FB Sheared granodiorite with quartz stringers

C-03 345737 5484130 49.490182 -119.130131 FB Granite quartz oxidized

C-04 345795 5484218 49.490988 -119.129357 FB Granite with chlorite shear

C-05 345797 5484225 49.491052 -119.129332 FB Granite and milky white quartz

C-06 345802 5484226 49.491062 -119.12927 FB Medium grained granodiorite

C-07 345873 5484135 49.490266 -119.128256 FB Brecciated with veining and staining

C-08 345826 5484154 49.490426 -119.128905 HM heavy mineral soil sample

C-09 345814 5484132 49.490228 -119.129066 HM heavy mineral soil sample

C-10 345841 5484120 49.490124 -119.12868 HM heavy mineral soil sample

C-11 345740 5484037 49.489347 -119.130053 FB Granite with quartz stringers

C-12 345808 5484004 49.489071 -119.129092 HM heavy mineral soil sample

C-13 345818 5484008 49.489108 -119.128961 HM heavy mineral soil sample

PC-01 346323 5485326 49.50109 -119.12249 HGY 33 Rd W to property

PC-02 346008 5485033 49.49836 -119.12674 Cattle-guard old railway bed

PC-03 345362 5484379 49.49233 -119.13539 Rd North to Carmi Moly

PC-04 345244 5484362 49.49214 -119.13701 Rd South to Butcher Boy Carmi mine area

PC-05 345588 5484044 49.48937 -119.13214 Forest road East to Butcher Boy Carmi mine area

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Appendix III

Photos

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Butcher Boy Adit

Left turn Access Road PC-04

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Butcher Boy Dump Sample Area CD-01-20

Reference Map Field Carmi 2018