CANADIAN SUPERIOR EXPLORATION LIMITED

1977 PERCUSSION DRILLING REPORT

on the

RAINBOW PROPERTY

KAMLOOPS M.D., B.C. 92 I / 9 W

50' 38' N Latitude 120' 29' W Longitude

December 7, 1977

CANADIAN SUPERIOR EXPLORATION LIMITED

1977 PERCUSSION DRILLING REPORT

on the

RAINBOW PROPERTY

KAMLOOPS M.D., BRITISH COLUMBIA

9 2 1 / 9 W

LOCATION: 7 miles Southwest of Kamloops, B.C.

Lat . 50' 38' N Long. 120' 29' W

CLAIM NAMES:

RAINBOW NE (318-3)

RAINBOW SE (319-3)

RAINBOW SW (320-3)

RAINBOW PTW (321-3)

WORK PERIOD : July 12 t o October 24, 1977

J.D. Blanchflower, B. Sc.

Kamloops, B r i t i sh Columbia

December 7, 1977

TABLE OF CONTENTS

SUMMARY

COST STATEMEN'P

PERCUSSION DRILL HOLE DATA

ILLUSTRATIONS

Location Map (1:50,000)

Percussion D r i l l Hole Plan (1" = 400' )

Page

- 1 - SUMMARY

The Rainbow property i s a rectangular-shaped block of four

M.G.S. mineral claims located within the southwestern boundary

of the City of Kamloops i n southcentral B r i t i s h Columbia. Under

the August l s h , 1977 agreement between Canadian Superior

Exploration Limited and Nahatlatch Resources Ltd. (N.P.L. )/LMc

Resources Ltd. (N.P.L. 1, C.S.E. has the r i gh t t o conduct mineral

exploration on the claim group.

The property consis ts of four contiguous M.G.S. mineral claims

(Rainbow NE, NW, SE, and sW) and one mineral lease (M-23).

Located 7 miles southwest of the c i t y center, access t o the

property from Kamloops is possible v i a the Trans Canada Highway

west t o the Lac Le Jeune Highway. A gravel road leading t o the

center of the property leaves west of the Lac Le Jeune Highway

three miles south of the Trans Canada junction.

Previous work has included: several shallow sha f t s and t e s t

p i t s , I.P. and magnetometer surveys, geological mapping, and

extensive diamond, rotary and percussion d r i l l i ng .

The present property has no h i s to ry of pas t ore production. The

Rainbow claims a r e underlain by the faul ted contact between the

I ron Mask d i o r i t e s and Sugarloaf d i o r i t e s of the I ron Mask batholi th.

The very prominent NW-SE rlSugarloaf" f a u l t s t ruc ture t ransec t s

the property.

Durhg 1977 Canadian Superior conducted a percussion d r i l l i n g

program involving 9 percussion d r i l l holes t o t a l l i n g 1,870 f ee t o r

569.98 metres. The purpose of this program w a s t o evaluate several

a reas not previously d r i l l ed . Work w a s contracted t o H.N. Horning

Percussion Dr i l l ing Ltd. Total cost of the project f o r 1977 w a s

$6,253.44.

XPLORATION LIMITED

COST STATEMENT

I n support of an Affidavit on Application t o Record Work on the Rainbow group of mineral claims, Kamloops Mining Division.

Percussion Dri l l ing cos t s from July 12 t o October 24, 1977

Percussion Dr i l l ing 1,870 f ee t (569.98 m.) d r i l l e d @ $3.00 per foo t $5,610.00

1,870 fee t (569.98 m.) d r i l l e d with water 8 2 5 ~ per foo t $ 467.50

7.65 batches of AM 9 (chemical grout) O 823.00 per batch 8 175.94

Total Percussion Dr i l l ing Cost $6,253 -44

CANADIAN SUPERIOR ECPLORATION LIMITED

PERCUSSION DRILL HOLE DATA

PERCUSSION ELEVATION DEPTH OF OVERBURDEN TOTAL DEPTH HOLE NUNJ3ER ( f t . A,M.s,L.) Meters Feet Meters Feet A!XClRJTH DIP COPlIMENT

P 7 7 - 1 3 107' > U.34 7 70' 21.34 70' -go0 Abandoned P 7 7 - 2 3 105' > 27-43 7 90' 27-43 90' -go0 Abandoned

p 7 ? - 3 3 , 150' 7 30.48 7 110' 0 4 8 100' -90° Abandoned p 7 7 - 4 3, 130' 21 -34 70' 33-53 110' -go0 Abandoned

P 7 7 - 5 3,161' 3-05 10' 91-44 3 0 ' -90° P 7 7 - 6 3,218' 6.1 20' 91-44 300' -90°

P 7 7 - 7 3,142' 6.1 20' 91-44 3 0 ' -90° ~ n - 8 3,198' 3-05 10' 91-44 300' -90°

P 7 7 - 9 3,241' 3-05 10' 91-44 300' -90O

- 6 -

CERTIFICATE

I, J. Douglas Blanchflower, of the City of Kamloops, i n the

Province of Br i t i sh Columbia, do hereby ce r t i f y :

That I a m a practicing Geologist and employed by Canadian Superior

Fxploration Limited, with o f f i c e s located at 2201 - 1177 West

Hastings S t r ee t , Vancouver, B r i t i s h Columbia.

I fur ther ce r t i fy :

1. That I am a graduate of the University of B r i t i s h Columbia

(1971) and hold a B. Sc. (Honours) degree i n Geology.

2. I have been pract is ing my profession f o r the past s i x years,

3. This report is based on information obtained by the wr i te r

from personal supervision of the percussion d r i l l i n g program.

J .'D. Blanchflower, B. Sc.

Geologist

Kamloops , B .C . December 7, 1977

ORANDUM OF A G R t t m t N 1

CANADIAN SUPERIOR EXPLORATION

#5 - 465 VICTORIA ST. (hereinafter called "the Companyu)

KAMLOOPS, B,C. V2C 2A9

And

H.N. HORNING PERCUSSION DRILLING LTD.

c/o JARRETT, GOOLD & ELLIOTT

Ste. 200 - 186 Victoria Street

(hereinafter cal led "Horning")

KAMLOOPS , B . C. WHEREAS the Company has requested Horning to proceed to the Company's mineral property in the KAMLOOPS area of 8 c. and there carry out a programme o f percussion drilling totalling approximately

5,000 feet.

NOW THEREFORE IT IS AGREED AS FOLLOWS:

1. Horning will provide all the equipment, supplies, fuel and labour t o carry out the said programme and will, at its expense, have these available and in good order at the drill site on a date to be stated by the Company.

2. The Company will construct all necessary access roads and drilling sites and will provide on request and without delay such transport, bulldozers, equipment, labour or assistance as may be necessary in moving the said drilling equipment to or from o r on or about the drill site and will bear the cost thereof.

---3. The Company will determine the location of all drill holes, the order of . -. drilling the said holes; and the method of obtaining samples but in all .

other respects the drilling operations shall be carried out under the direction and control o f Horning. Horning will carry out the drilling as expeditiously as possible but shall not be liable for delays due to weather, mechanical failures o r other circumstances beyond its control nor shall Horning be obliged t o drill at any site or move its equipment by any route which it considers unsafe for its equipment or personnel.

4. Horning will hold the Company harmless from all and any demand claims, writs, suits or causes o f action arising' out of the operations conducted by Horning saving always those attributable in whole o r in part to the acts or omissions, negligent o r otherwise, of the Company, its servants or employees. For the greater certainty of this undertaking, Horning shall maintain-public liability insurance in the amount of $500,000.00 and in a form acceptable to the Company.

5. Horning will comply with all laws of the state, province or country having jurisdiction and shall d o all things necessary t o prevent the mineral property o f the Company being subjected to charges o r liens or in any way imperilled by reason of the act, omission or default o f Horning. Without restricting the generality o f the foregoing it is expressly provided that Horning shall maintain registration with the Workers' Compensation Board o f British Columbia and shall promptly pay all levies and assessments made by that Board.

6 . Horning will maintain a daily record of the drilling operation and will furnish to the Company a copy thereof duly signed by the Company's representative at the drill site. In the report the hole identification number shall be those prescribed by the Company if any.

7. The remunerat ion payable by the Company to Horning shall be - - $3.00 - . - per foot drilled:.

8. The Company shall reimburse Horning for addi t ionai costs according to the following Schedule "Ao8.

- 2 -

SCHEDULE "A"

Addi t iona l Cost

(a) Chemi~al grout and mud used.

(b) Casing l o s t by Horning i n any ho le r equ i r i ng over 50 feet o f casing.

(c) Time d r i v i n g casing i n excess o f 50 f ee t and excessive t ime recovering any casing.

(d) Rods l o s t by Horning i n any ho le exceeding 300 f ee t i n depth.

(e) Excessive time requ i red t o draw rods from any ho le exceeding 300 f ee t i n depth.

( f ) Wait ing t ime ( i nc lud ing Saturdays, Sundays and S ta tu to ry Holidays, i f a designated working day).

(9) On s i t e moving time.

(h) T rave l l i ng t ime i n excess o f one (1) hour.

( i ) Water suppl ied w i t h water truck.

Reimbursement 1

AT COST

t l

AT COST I I ' i

FIELD COST 1 I AT COST

Fl ELD COST

Fl ELD COST

NIL

MAN HOURS

NIL

NIL

For the purpose o f t h i s Agreement "wai t ing time" includes on ly t ime l o s t by Horning through delays occasioned by the Company, i t s servants o r employees, . through f a i l u r e t o prov ide i n s t r u c t ~ o n , permits, l icences, access roads, t ranspor ta t ion and the l i k e when required. It i s understood and agreed t ha t i tem ( f ) i n the foregoing schedule i s intended t o reimburse Horning f o r delays beyond i t s con t ro l and tha t if a normal working day i s l o s t the reimbursement sha l l be the s t i pu la ted r a t e f o r each hour which would normal ly have been worked. ( i .e. 8 hours f o r s i ng le s h i f t operat ion and 16 hours f o r double s h i f t operat ion).

Also f o r the purposes o f t h i s agreement Iton s i t e moving time" sha l l mean time requ i red t o move the d r i l l i n g equipment on and about the company's property from camp t o d r i l l p l a t f o rm o r landing and from one d r i l l p l a t f o rm o r landing t o another but not inc lud ing moving t o o r from the proper ty i t s e l f .

F i e l d cost i s def ined as the aggregate o f the fo l lowing: . 1. Labour - per man hour

2. Equipment r en ta l - per hour

3. Mater ia ls used o r l o s t on j o b t o which f i e l d r a t e i s app l ied a t de l i ve red cos t t o j o b s i t e .

4. Overhead a t 10% o f labour and renta ls .

9. Horning sha l l render statements o f account a t weekly o r greater i n t e r v a l s ..-

and the amount due t o Horning as shown by the statement s h a l l be payable seven days a f t e r presentation.-.- - .

10. On o r before a r r i v a l o f Horning's equipment a t the Company's property. the company as secu r i t y f o r payment o f the cont ract p r i c e s h a l l deposi t i n t r u s t w i t h Horning's sol i c i t o r s , N/A and accompany the depos i t w i t h a l e t t e r of i n s t r u c t i o n i n the form se t out i n Schedule "B" appended hereto.

I N WITNESS WHEREOF the p a r t i e s have caused these presents t o be signed on t h e i r behal f by t h e i r respect ive o f f i c e r s a t the places and on the dates s ta ted below.

--. - AT: Kamloops, B.C. . G PERCUSSI 3N DRILLING LTD. i . . .