ASSESSMENT REPORT

ON

GEOCHEMICAL WORK

ON THE FOLLOWING CLAIMS RECEIVED

HJl .......... #J680(6) HJ2 .......... #3681(6)

GROUPED TO H GROUP (32 UN

located 6 km north of Hope

British Columbia

49 degrees 23.5 minutes latitude 121 degrees 24 minutes longitude

N.T.S M92H/6W NEW WESTMINSTER MINING DIVISION

PROJECT PERIOD: - Z P Geol. Fieldwork: Oct. 7, 1990 - June 14, 1991 (WDG)

Met. work Sept. 11 - 13,1991 (L. Blackman + WDG) W Z

ON BEHALF OF MR. HAROLD JONES

295 Tomahawk Ave. North Vancouver, BC

V6PlC4

\ ui".J REPORT BY 9-4- 2%

W.D. GROVES, Ph.D., P.Eng. (Geol. + Chem.Eng.) L7 x, 207-1425 Marine Drive 3 West Vancouver, BC .d

trr J Q3

and 4 r z * 4'

L. BLACKMAN, METALLURGIST Box 195

LOOMIS, WA

Date: September 15, 1991

"Jy"

TABLE OF CONTENTS

1. INTRODUCTION

A. B. Status of Property

D. References E. Summary of Work Done $. Technical Data and Interpretation

Property, Location, Access and Physiography

c. History

A. Geology B. Metallurgical Testwork, Lab Procedure,

Observations, Results

CONCLUSIONS

APPENDICES

I - WORKCOSTSTATEMENT

I1 - CERTIFICATE, W.D. Groves & L. Blackman

TABLES

Table 1 - Summary Bead Data, 500 gram Leach tests

2

3

6

5

- 1.

Name

HJ1

HJ2

1. INTRODUCTION

Record No. No. of Units Record Date

3680(6) 16 Jun.15, 1989

368 l(6) 16 Jun.15, 1989

A. Property, Location, Access and Physiography

The H-Group (HJ1 and HJ2 claim group) forms a 2 x 16 = 32 unit NS strip extending up the lower east side of the Fraser River Canyon from Kokawa Lake just north of Hope B.C. to 1 km south of Squeah Creek, extending from near Fraser River level to the cliffy upper levels of the valley wall, along lineaments of the NS/steep Yale fault, a major NS fault zone marked for over 20 miles on Monger’s GSC regional geology map.

Access is by 2-lane gravel logging main road along the lower elevations of the Fraser’s east side, north from Hope. The road was built by the Pretty Logging Co. to log the area: it has now been upgraded by the IAND to service the Squeah Indian reservation just north of the property.

The road contours just along the western side of the HJ2 claim (the more northerly of the two claims) for over 2 km; this was the main area of rock cuts blasted by the loggers and sampled for the 1990-91 bulk sampling and metallurgical study of this report. Vegetation is re-growing over logging clearcut: consisting of brambles, willow and alder and small conifer seedlings. Rock exposure is intermittent in creek cuts, knobs (glaciated), and in logging road blast cuts along the shear.

B. Status of Property

Relevant claim information is summarized below:

The claims are shown on Fig.2 and are held in the name of Harold Jones, FML No. 278148, operator of the 1990-91 assessment work program was Dr. W.D.Groves, P.Eng., plus Mr. L. Blackman (Metallurgist) on behalf of owner Harold Jones, owner of the claims.

C. History

There is no record of early work on the claims. Regional geological data to 1969 is summarized on the 1:250,000 scale map compilation by J.W.H. Monger of the GSC. The Yale fault and shear cuts a N-S corridor of gneissic rock facies, Monger’s unit (C), contiguous to unit (20), foliated granodiorite and quartz diorite of Early tertiary to Upper Cretaceous age. This unit in turn intrudes Upper Paleozoic folded volcanosedimentary Chilliwack and Hozameen units in the area. Locally (in the claim area) foliatiodshear attitudes dip steeply eastward. No mineral occurrences are marked in the claim area on Monger’s map.

2 .

The present owner became interested in the claim area when previous samples taken from the fine grained rusty weathering mafic gneiss in the shear gave qualitative indications of precious metal values, following up on initial prospecting of the Yale Fault by Phillips Petroleum Ltd. in the 1970s (Pers. comm., H. Jones, and Dr. Tibor Klobasuki of Spokane, Wash.)

D. References

1. Map 12-1969. Paper 69-47. Geology of Hope (West Half) B.C. 1:250,000. Compilation by J.W.H. Monger, GSC. 1969.

E. Summary of Work Done

On Oct. 7, 1990, the author accompanied Mr. Harold Jones, claim owner, for an inspection and sampling tour of logging road blast cuts along the main access road going north through the claims. Along a 1-km long section of the road cuts north of the HJ1 and HJ2 legal post (see Fig.2) a 120 pound bulk sample was cobbed from the blast faces, about an equal mixture of gneiss, limonitic iron dyke and quartz sulphide pod material.

On June 14, 1991 the author made a short reconnaissance of the property to check rock types, en route to delivering the bulk sample to metallurgist L. Blackman at Nighthawk, Wash., (just south of Osoyoos, B.C.)

On Sept. 11-13, 1991, the author and Mr. Blackman carried out three separate types of leach tests on three 500 gram samples subsampled from 25 pounds cobbed from the 120 pound bulk sample then pulverized, using a small high-speed chainsaw driven chainflail pulverizer. Leaches were carried out on the 12th. On the 13th, leach precipitates were fired and cupelled to precious metal beads. Metallurgical work was carried out by Mr. Blackman, metallurgist and Washington State licensed assayer, while the author was present.

1 Technical Data and Interpretation

A. Geology

The intrusive gneiss of the Yale fault zone is contiguous/adjacent to sheared Upper Cretaceous Coast Range age granodiorite; the whole may have been tectonized after intruding older Hozameen and Chilliwack group volcanosedimentary rocks. The seabottom rocks are metalliferous. (cf Carolin gold mine in Ladner slates and serpentines). The intrusives thus has had a chance to distil precious metal values into volatile sulphides which could be expected to permeate upward in shear zones such as the Yale fault. Besides fine white pyrrhotite type sulphides disseminated in the gneiss, limonitic-weathering Feco3 rich veins and quartz sulphide pods are enclosed in the foliation planes in the shear crossing the claims.

The CO, content indicates a high drive pressure behind the vein material: Quartz sulphide pods showed fine dark grey sulphides in factures and pale yellowish green weathering colors. The high-iron

3 .

nature of the disseminated pyrrhotite phase is a favourable PGE collector. Decision to leach whole pulverized pulp was made to collect values from both oxidized and fresh sulphides in the sample.

B. Metallurgical Testwork - Lab Procedure, Observations, Results

25 pounds were cobbed from the 120 pound bulk sample, about equally from finegrained mafk gneiss, iron dyke and quartz sulphide pod material. Sample was crushed to 1/2 inch in a pestle and mortar, then pulverized to estimated 80% minus 200 mesh in a small chainsaw-motor driven high speed chain flail impact mill. The mill was new, so perfectly clean. The 25 pound sample was dry-mixed before the three 500 gram leach pulp samples were weighed out of it.

The three leaches are 1) NaOCl - N%S203. 2) H2S04 - N&NO,. 3)Aqua Regia. Metal recovery from each was by steel wool. Precipitates were lead fired, and lead buttons cupelled to bright precious metal beads. In the cupellation stage, 200 milligrams of 7-nines purity assay grade silver were inquarted (see Table 1) to prevent bead loss into the bone. Consequently, silver values are to be disregarded, the object being to maximize Au + PGE extraction by the use of silver inquarts.

LEACH 1. NaOCl - NaS,kO,

On Sept. 12, a 500 gram pulverized sample of the pulp was first boiled in 500 ml of water in a Pyrex pot with lid, on low heat on a propane stove. 100 ml of commercial bleach (5% NaOH, 5% NaOC1) was added and simmered for 1/2 hour.

At the same time, a concentrated solution of alkaline N%S203 was made up by boiling together 200 ml of water, 100 grams of dry NaOH prills, 60 grams of dry sodium sulphite, (NqSO,), and 15 grams of dry powdered sulphur, simmered 15 minutes until the sulphur color disappeared. This leach solution was then added to the by-now bleached pulp (in which free oxygen and chlorine had been largely consumed by reaction and boiling). Since thiosulphate is a light-sensitive ion (it is the 'hypo' solution used to dissolve silver chloride in photographic film developing), reaction was carried out in subdued light. Leaching reaction was extremely rapid: within a few minutes, the leach solution turned dark greenish black. Leach was maintained for an hour. Then the supernatant solution was decanted and filtered, and the pulp washed with water through the filter into the leach. Mafics had been attacked by the leach as well as sulphides and oxides. 20 grams or so of an inky dark precipitate was decanted off the leach solution to be fired separately (two beads; 4 and 4 prime). Remaining solution was left overnight with a 20 gram fine steel wool 'brillo' pad dropped in it to cement precious metal values. The following day (Sept. 13), free precipitate, and iron-cemented precipitates were fired in 2 separate crucibles.

To each crucible, 60 grams PbO (Litharge). 100 grams N%CO, (soda ash) and 15 grams of borax (sodium tetraborate) were added as firing flux. A 3-1/2 x 1/2 inch iron bolt was stood up in each crucible.

Firing was for an hour, gently heating to yellow-white (ca. 20OO0F), and lead buttons cupelled gently for two hours to llOO°C, until the beads went bright. To avoid excessive sprouting or soaking into the bone by the beads, a weighed 200 milligram inquart of assay silver prills (7- nines purity grade) was added to each cupel.

4 .

fii Cupel 1, single cupel (Fe-wool precipitate), r was Iea4 heavily sprouted. Cupels 4 and 4' - 2 cupels, each containing 1/2 the lead button from the assay, each inquarted with a 200 mg Ag. Beads were lightly sprouted. Cupels 4 and 4" held the free precipitate from the leach solution (i.e. that precipitated BEFORE the steel wool was added).

Net precious metal balance is

1) (from Fe wool cement) 310 gm - .395 gm tare = .415 gm .415 - .200 gm (inquart) = .215 Em

4)

4)'

(from Fe ppt) .605 gm - .395 ton = .210 gm .210 - .200 (inquart) = +.010 Em

(from Fe ppt) .660 gm - .395 ton = .265 gm .265 - .200 (inuart) = .065 gm

Total incr. .210 + .010 + .065 = .290 gm

Net weight gain in oz/t PGE(29.2/5O$x 290 = 16.94 oz/t

Most of the precious metal precipitated on the steel wool. Cupels were rufous when hot, signalling tellurium.

LEACH 2. H7S0,- NHAN03

On the 12th, 500 ml of water, 50 ml of 98% H2S04 and 50 grams of dry NH4N0, (Nitropills) were mixed and held at 160°F until the reaction stopped. Reaction makes highly corrosive nitro- sulfamic acid. Leach has to be carried out in a Pyrex pot. The solution was then poured onto 500 grams of the pulverized sample, and simmered in the Pyrex pot with a loose lid on the gas stove on low heat for two hours. Yellow sulphur immediately formed in the solution, signalling nitrate attack on mineral sulphides. After 2 hours, mixture was cooled and decanted and the pulp filtered with a small water wash through the filter to clean the barren pulp. Late on the 12th, a total of 2-1/2 20 gram brillo pads were dropped into the solution (ie. 50 grams of steel wool) before the reaction slowed. On the 13th, a small trace of steel wool remained. Solution was blackish, a sign of some Fe-plus3 ion remaining, but copperas crystals (ferrous sulphate) had begun to form on the bottom of the pot, along with a black 'cement' precipitate. Sulphur had oxidized to sulphate. Precipitate (copperas crystals and all), plus filter paper was then put into a 40 gram size assay crucible along with the 60 gram PbO, 100 gm NaJO,, 15 gram borax mixture, along with a 3-1/2 x 1/2 inch iron bolt. Crucible was fired as in 1 above. Lead button was inquarted with 200 milligrams of assay silver, and cupelled two hours until bead went bright. Bead sprouted heavily, a sign of PGE.

Cupel was rufous while hot signifying presence of tellurium in the precipitate.

Net weight gain of bead (see Table 1)

.690 gm - .295 gm (tare) = .295 gm .295 = .200 (inquart) = .095 Em

As oz/t,[29.2 / 500)x 95 = 5.548 oz/t

5 .

Table 1

Summary Bead Data

Leaches of 500 gram Pulp Samples

Leach No. Type No. of Beads

1. NaOCl-Na&O,

3. Aqua Regia (HC1-HNO,

3 beads No@(Fe woovppt) patterned, sprouted No@ - pre-ppt. patterned, sprouted No.@’ - pre-ppt patterned, sprouted

I6

oz/t equivalent of gain

1 bead, NOD patterned, sprouted oz/t equivalent of gain

1 bead N o B smooth, unsprouted oz/t e#(ivalent of gain

Net Weinht Gain (mg)

215 mg

10 mg

65 mq +290 mg (16.936 odt)

95 mg (5.548 oz/t)

100 mg (5.84 odt)

r

6 .

LEACH 3. AQUA REGIA

On the 12th, to 500 grams of pulverized sample, 500 ml water plus 75 ml of conc. HC1 was added and simmered 1/2 hour. Then 25 ml of conc. HNO, (nitric acid) was added in small stages. A yellow sulphur reaction began immediately. Leach was boiled 2 hours, after which it was filtered and rinsed with a small amount of water, and on cooling, one 20 gram brillo pad was added. On the 13th, solution was pale clear copperas green, the sulphur having oxidized to sulphate. The iron - cement was then filtered from the clear solution, and fired with its filter (filters weigh about 2 grams). The same flux charge was used, i.e. 60 grams PbO, 100 gm Na$O,, 15 gm borax, plus a 3-1/2 x 1/2 inch iron bolt placed in the crucible. Crucible was fired 1 hour up to 2000°F. Resulting lead button was cupelled carefully for 2 hours to around 1000°C, until the bead went bright. Bead was round and smooth on cooling, signifying low PGE pickup (Esp of Ir and Rh) by the leach. Hot cupel was rufous, signifying tellurium present.

Net weight gain by bead was for bead 3)

.695 gm - .395 (tare) = .300 gm .300 - .200 (inquart) = .lo0 Em

As odt, (29.2 / 500)x 100 = 5.84 odt

CONCLUSIONS

Visual observation of the beads from the three types of leach test show indications of PGE content in leaches 1 and 2 - patterned surface and sprouted margins (10 to 20%of volume). The slight yellow cast and smooth round aspect of the button from the aqua regia leach suggests a possible gold content. Recovery by the NaOCl - Na,S,O, leach was approximately 3 times that by the other two. Rufous color of hot cupels suggests tellurium content. Lead buttons should be boiled in molten NaCl to extract this before cupellation.

The author recommends a careful precious metal analysis on the beads to corroborate the above observations.

Respectfully submitted

W.D. Groves, Ph.D., P.Eng. # 8082

September 15, 1991

APPENDIX I --WORK COST STATEMENT

Field Personnel $ CDN

W.D. Groves Oct. 7/90 + June 14, 1991 2 days @ $400/day 800

Transportation, Food, Mileage 2 round trips Vancouver - Hope, WDG vehicle 2 x 150 - 300

1,100

Metallurgical Testwork

1. L. Blackman

2. WDG

2 days @ 250/day (Sept. 12, leaching, Sept.13 filtration, firing, cupellation) 500 (CDN)

2 days @ $400 800 Transporation Vancouver-Nighthawk- Vancouver - 200

1,500

Report

WDG 2 days @ 400 Accutype Word Processor Map Blowup,Xerox

TOTAL

800 150 - 50

1.000

$ 3,600 (CDN)

APPENDIX I1 -- CERTIFICATE - WDG + L.B.

I, William D. Groves, do hereby certify that:

1. I am a Professional Engineer with an office at 207-1425 Marine Drive, West Vancouver, BC

2. I am a graduate of the University of British Columbia (B.A.Sc. in Geological Engineering, 1960, U of A (Edmonton) Chemical Engineering (1962), Ph.D. (1960), chemical Engineering, UBC (197 1)

3. I am a Professional Engineer registered with the Association of Professional Engineers of the Province of British Columbia as a resident member, #8082.

4. I have practised my profession since 1960.

5. This report is based upon work carried out by the author on the HJ1 and HJ2 mineral claims, New Westminster Mining Division on October 7, 1990 and June 14, 1991, and metallurgical testwork by the author and Mr. L. Blackman, Sept. 11 - 13, 1991.

6. I will fully stand behind the metallurgical work of Mr. L. Blackman. His qualifications: B.Sc. (Berkely) honours chemistry. Worked: E.O. Lawrence Radiation Lab, AEC Hanford (daughter- element isotope chemistry), Grad. 4 yr. Ore Dressing Course, Colorado School of Mines, Licensed Assayer State of Washington. 2 years Mine Assayer, Hecla Republic G o l F n e .

Dated at Vancouver, B.C., this 15th day of September 1991

W. D. Groves, P.Eng.