520533

EAGLET MINES LIMITED

EXTENSION OF GEOLOGICAL REPORT

FLUORITE PROPERTY

EAGLET AND EAGLE CLAIMS

CARIBOO MINING DIVISION

QUESNEL LAKE, BRITISH COLUMBIA

N. T. S. 93-A-10 W

SEPTEMBER 8, 1980

BY: CLIVE W. BALL

TABLE OF CONTENTS

PAGE

I. CONCLUSION AND RECOMMENDATIONS 1 - 2

II. INTRODUCTION 2

I I I . PROPERTY AND OWNERSHIP 3

IV. SUMMARY OF WORK COMPLETED ON PROPERTY 3

UNDERGROUND DEVELOPMENT AND DIAMOND DRILLING

V. RESULTS OF UNDERGROUND WORK 3 - 5

VI. PROPOSED WORK PROGRAM 5 - 6

APPENDIX

APPENDIX 'A' PROPOSED WORK PROGRAM-ESTIMATE OF COSTS 7

APPENDIX *B* WRITER'S CERTIFICATE 8

! APPENDIX 'C SURFACE MAP ON SCALE OF 1 INCH

:j =130 METRES APPROX.

] SHOWING UNDERGROUND CROSS-CUT ADIT

! AND DRIFT IN ADDITION TO COMPLETED ! 'I

UNDERGROUND DIAMOND DRILL HOLES

APPENDIX 'D' MINERAL CLAIM MAP - PART OF MAP M93A/W

DEPARTMENT OF MINES AND PETROLEUM

RESOURCES i

I. CONCLUSION AND RECOMMENDATIONS

Since December of 1979, a cross-cut a d i t has been driven

north a distance of 958 feet from the p o r t a l and a d r i f t was completed

a distance of 220 feet west to e s t a b l i s h s t a t i o n s f o r diamond d r i l l i n g

Thus a t o t a l of 1,178 feet of 8 feet by 10 feet t r a c k l e s s tunnel has

been driven to date.

Seven diamond d r i l l holes have been completed underground

fo r a t o t a l footage of 5,000 f e e t .

The gneiss country rock i s very competent and apart from

minor f a u l t zones, the walls and back are free standing. The only

timber required except f o r the p o r t a l i s a 20 foot i n t e r v a l covering

a f a u l t zone. The mine i s e s s e n t i a l l y dry apart from water i s s u i n g

from one diamond d r i l l hole.

The backs of the cross-cut a d i t have been mapped i n d e t a i l

and g e o l o g i c a l p r o f i l e s of both walls are being prepared by the

f i e l d g e o l o g i s t .

Core recovery i n diamond d r i l l i n g i s about 90 per cent and

the holes are d i r e c t e d so as to cut the f l u o r i t e zones at r i g h t angles

Assay r e s u l t s f o r the recent d r i l l core are slow i n

forthcoming. However, the muck samples from the cross-cut a d i t

i n d i c a t e three important zones as follows:

From. 265 feet to 325 feet average assay value = 5.6 oer cent CaF 2

From 500 feet to 595 feet average assay value =4.2 per cent CaF 0

From 700 feet to 795 feet average assay value = 4.4 per cent CaF 2

- 2 -

Diamond d r i l l hole U-l was d r i l l e d due north from the end of

the cross-cut a d i t - Average assay value from the c o l l a r of the hole

0 to 87.7' = 87.7 f e e t i s 6.2 per cent CaF^ .

I t i s recommended that the proposed work program as o u t l i n e d

i n Section VI and Appendix A (Estimate of Costs) be i n s t i t u t e d . The

program involves surface and underground diamond d r i l l i n g and underground

development i n the Canyon area at an estimated t o t a l cost of $6 32,800.00.

II . INTRODUCTION

The wri t e r was commissioned by Mr. Andrew Robertson, President

of Eaglet Mines Limited to v i s i t the mine s i t e and an examination was

made of the underground workings and recent diamond d r i l l core on

August 26th, 1980. Mr. R u s s e l l Davis, Project Manager acted as guide

and Mr. Douglas McLarty, Geologist was a v a i l a b l e f o r discussions on

logging and a n a l y s i s of diamond d r i l l core. This report i s f u r t h e r to my

e a r l i e r report dated May 25, 1979, the^-conclusion and recommendations

of which were published i n the Company's Prospectus dated J u l y 20, 1979.

I I I . PROPERTY AND OWNERSHIP

The 40 mineral claims c o n s t i t u t i n g the Eagle and Eaglet

groups as l i s t e d i n the w r i t e r ' s g e o l o g i c a l report of May 25, 1979 were

abandoned and r e l o c a t e d under the modified g r i d system. Consequently,

the Eaglet claim of 20 units and the Wasko claim of 20 u n i t s were

staked and are now i n good standing. Record date for each of the l a t t e r

claims i s 24th October, 19 79.

The mineral claims are recorded i n the Cariboo Mining

D i v i s i o n and the r e g i s t e r e d owner i s Eaglet Mines Limited.

~ 3 ~

IV. SUMMARY OF WORK COMPLETED ON PROPERTY

The cross-cut a d i t has been advanced a t o t a l distance of

958 fe e t from the p o r t a l and a d r i f t was completed a distance of

220 feet due west to e s t a b l i s h s t a t i o n s for underground diamond

d r i l l i n g . Thus a t o t a l of 1,178 fe e t of 3 feet by 10 feet underground

t r a c k l e s s t u n n e l l i n g has been completed.

Seven diamond d r i l l holes (AQ wire-line) have been completed

underground f o r a t o t a l footage of approximately 5,000 feet . The

loca t i o n s of the diamond d r i l l holes are shown on the accompanying

map (Appendix C). A l l of the d r i l l holes are f l a t .

V. RESULTS OF UNDERGROUND WORK

(1) Cross-cut a d i t

The walls of the cross-cut a d i t are being mapped i n d e t a i l

and the r e s u l t a n t p r o f i l e s show that the f l u o r i t e m i n e r a l i z a t i o n i s

widespread. The backs of the underground workings have also been

mapped.

F o l i a t i o n of the gneiss country-rock, s i l i c i f i c a t i o n ,

s e r i c i t i z a t i o n and zones of f r a c t u r i n g are a l l depicted on the

ge o l o g i c a l p r o f i l e s .

One very important feature of the country-rock i s i t s

competent nature. Very l i t t l e timbering i s required. Five sets of

timber or 60 feet i s i n s t a l l e d at the p o r t a l and timbering was noted i n

a f a u l t zone over a 20 foot i n t e r v a l from 440 feet to 460 feet from

the p o r t a l .

- 4 -

The mine i s e s s e n t i a l l y dry except that diamond d r i l l hole

U-2 makes a considerable amount of water and diamond d r i l l holes

U-l and U-4 make s l i g h t amounts of water.

Three main zones of f l u o r i t e m i n e r a l i z a t i o n have been

estab l i s h e d i n the cross-cut a d i t as follows:

From 265 feet to 325 feet average assay muck samples = 5.6 per cent CaF2

From 500 feet to 595 feet average assay muck samples =4.2 per cent CaF^

From 700 feet to 795 feet average assay muck samples = 4.4 per cent CaF2

The muck samples are based on grab samples taken from each

scoop-tram load le a v i n g the p o r t a l f or the mine dump-.

Both walls were channel sampled s y s t e m a t i c a l l y over 10 foot

i n t e r v a l s as a d i r e c t check on the muck samples.

(2) Underground diamond d r i l l i n g

The gneiss country-rock cores very well and good core

recovery i s in d i c a t e d , probably about 90 per cent.

Diamond d r i l l hole U-l/80 c o l l a r e d from the end of the cross­

cut a d i t and driven due north was completed at 989 fe e t . From 0 to 87.7

fee t = 87.7 feet average assay value i f 6.2 per cent CaF2 .

Assay r e s u l t s are not yet at hand for the remaining

underground diamond d r i l l holes. Since i t i s d i f f i c u l t to make r e l i a b l e

v i s u a l estimates of the grade of f l u o r i t e , r e l i a n c e has to be made on

assays. I t i s expected that further assay r e s u l t s w i l l be forthcoming

within the next 2 to 3 weeks.

- 5 -

The gneiss country-rock has a strong f o l i a t i o n trending north­

eastwards and since the f l u o r i t e m i n e r a l i z a t i o n tends to follow f r a c t u r e

zones and planes s t r i k i n g north-east, the underground diamond d r i l l

holes are drive n i n such a d i r e c t i o n (north-west and south-east) so as

to cut the favorable f l u o r i t e zones at r i g h t angles.

Underground diamond d r i l l holes completed as at September 1, 1980

DIAMOND DRILL HOLE NO. AZIMUTH

LOCATION (DISTANCE FROM PORTAL)

TOTAL DEPTH (FEET)

U-l/80 Due north End of cross-cut 959'

U-2/80 135! 893' cross-cut 948'

U-3/80 135" 656' cross-cut 293'

U-4/80

U-5/80

U-6/80

Due east

N45°W

N45°W

423' cross-cut

End of stub d r i f t

550' cross-cut

1,306'

657 '

665'

U-7/80 Due west End of stub d r i f t 488 '

VI PROPOSED WORK PROGRAM

In view of the very encouraging r e s u l t s obtained to date,

further work i s warranted beyond the current work program.

I t i s considered e s s e n t i a l to dr i v e a cross-cut a d i t from the

east of Barr e t t Canyon to t e s t the f l u o r i t e m i n e r a l i z a t i o n i n the Canyon.

Proposed cross-cut a d i t i s to be driven a t o t a l distance of 1,000 feet.

- 6 -

An accurate contour map i s to be prepared from a i r photographs

and surface and underground diamond d r i l l i n g w i l l compliment the r e s u l t s

from the work i n the e x i s t i n g and proposed a d i t s .

The program involves 1,000 feet of cross-cut a d i t ; 2,000 feet

of underground diamond d r i l l i n g and 5,000 fe e t of surface diamond

d r i l l i n g . T o t a l cost of the program i s estimated at $632,800.00, as

scheduled i n Appendix A.

Resp e c t f u l l y submitted,

C l i v e W. B a l l , P. Eng. Consulting Geologist

Vancouver, B.C.

September 3, 1980

APPENDIX 'A'

ESTIMATE OF COSTS

Bulk sampling program, proposed underground work

and surface diamond d r i l l i n g

1. Underground diamond d r i l l i n g

2,000 f e e t at $24.00/ft. $ 48,000.00

2. Surface diamond d r i l l i n g

5,000 feet at $40.00/ft. 200,000.00

3. Underground development

Canyon area - east side

1,000 f e e t cross-cut at $250.00/ft. 250,000.00

4. Preparation of contour map

2 claim groups each of 20 un i t s

- 2,000 acres

Contour i n t e r v a l = 10 metres 2,000.00

5. Engineering and assaying 40,000.00

6. M e t a l l u r g i c a l t e s t i n g 25,000.00

Contingencies 67,800.00

TOTAL $632,800.00

- 8 -

APPENDIX 'B'

WRITER'S CERTIFICATE

I, C l i v e W. B a l l of 3191 West 36th Avenue, Vancouver, B. C. hereby c e r t i f y as follows:

1. I am a con s u l t i n g g e o l o g i s t r e s i d i n g at the above address.

2. I am an Honours graduate of the U n i v e r s i t y of Queensland, Brisbane, A u s t r a l i a , holding a M.Sc. degree i n Geology and Mineralogy.

3. As a g e o l o g i s t , I have p r a c t i s e d my p r o f e s s i o n since 1935 i n mining geology and e x p l o r a t i o n . For 30 years, I was employed as a geologist on the s t a f f of Placer Development Limited, r e t i r i n g as Chief Geologist i n February, 1978.

4. I am r e g i s t e r e d as a member of the A s s o c i a t i o n of P r o f e s s i o n a l Engineers (Geological) of the Province of B r i t i s h Columbia.

5. P h y s i c a l inventory and knowledge of the property i s based on a mapping and survey program supervised by the w r i t e r i n the f i e l d from May 16th to 24th, 1966 f o r Canex A e r i a l E x p l o r a t i o n Limited. This e a r l y f i e l d examination was supplemented by a v i s i t to the property on May 7th, 1979 when the p r i n c i p a l f l u o r i t e showings were c l o s e l y checked.

6. The l a t e s t report i s based on the f i e l d examination of underground workings and diamond d r i l l core completed i n the current exploration program of 1980, at the time of the w r i t e r ' s v i s i t on August 26, 1980.

7. I hold no i n t e r e s t whatsoever i n the Company or i n the property of Eaglet Mines Limited, as encompassed i n my report.

8. I hereby consent to the use of t h i s report i n a Statement of M a t e r i a l Facts of the Company.

Res p e c t f u l l y submitted,

C l i v e W. B a l l , P. Eng. Consulting Geologist

Vancouver, B. C.

September 8, 1980

20. S T A T U T O R Y R I G H T S O F R E S C I S S I O N

Sections 61 and 62 of the Securities Act (British Columbia) provides in effect, that where a security is offered to the public in the course of primary distribution:

(a) A purchaser has a right to rescind a contract for the purchase o f a security, while still the owner thereof, if a copy of the last Statement of Material Facts, together with financial statements and a summary o f engineering reports as filed with the Vancouver Stock Exchange, was not delivered to him or his agent prior to delivery to either of them of the written confirmation o f the sale of the securities. Written notice of intention to commence an action for rescission must be served on the person who contracted to sell within 60 days of the date of delivery o f the written confirmation, but no action shall be commenced after the expiration o f three months from the date o f service o f such notice.

(b) A purchaser has the right to rescind a contract for the purchase of such security, while still the owner thereof, i f the Statement of Material Facts or any amended Statement of Material Facts offering such security contains an untrue statement of materia! fact or omits to state a material fact necessary in order to make any statement therein not misleading in the light of the circumstances in which it was made, but no action to enforce this right can be commenced by a purchaser after expiration o f 90 days from the later of the date o f such contract or the date on which such Statement o f Material Facts or amended Statement of Material Facts is received or is deemed to be received by him or his agent.

Reference is made to the said Act for the complete text o f the provisions under which the foregoing rights are conferred.

21. C E R T I F I C A T E O F T H E D I R E C T O R S A N D P R O M O T E R S O F T H E I S S U E R :

The foregoing constitutes full , true, and plain disclosure o f all material facts relating to the securities offered by this Statement of Material Facts.

E a r l F. Hammond, Director C E R T I F I C A T E O F T H E U N D E R W R I T E R ( S ) :

To the best o f our knowledge, information, and belief, the foregoing constitutes ful l , true, and plain disclosure of all material facts relating to the securities offered by this Statement of Material Facts.

September 16, 1980 (Date)

EAGLET MINES LTD.

September I~l , 19 80 ~"7 (Date)