D R I L L I N G REPORT

on t h e

CAT Mine ra l C l a i m s

(CAT # 1 - 1 4 u n i t s ) (CAT # 2 - 1 4 u n i t s )

and

BET #1 M i n e r a l C l a i m

Owned and Opera t ed by

BP MINERALS LIMITED

O s l i n k a R i v e r Area

Omineca Mining D i v i s i o n

NTS 94C/3

Located 9 .5 km W S W U s l i k a Lake, B . C .

56O03' L a t . , 1 2 5 ° 2 2 t Long.

October ,1977

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TABLE OF CONTENTS

SUMMARY

STATEMENT OF COSTS

LOCATION MAP - CAT PROPERTY

CAT CLAIMS MAP

ITEMIZED DRILLING COSTS

STATEMENT OF QUALIFICATIONS

DIAMOND DRILLING CONTRACT

DIAMOND DRILL LOCATION MAP

DIAMOND DRILL LOGS

in pocket

in pocket

in pocket

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I ,- S U . M M A R Y

CAT and BET C l a i m s

Diamond D r i l l i n g - Longyear 34-BQ c o r e Wright D r i l l i n g L imi t ed - Kamloops, B . C .

Diamond d r i l l h o l e C D - 7 7 - 1 507 f e e t ( 1 5 4 m)-57' wes t

530 f e e t ( l 6 1 m)-58' e a s t

g r i d l o c a t i o n 99.5N/108E

Diamond d r i l l h o l e C D - 7 7 - 2 g r i d l o c a t i o n 100.5N/106E 3 1 5

E l e v a t i o n o f C D - 7 7 - 1 5480 f e e t (1661 m) C D - 7 7 - 2 5470 f e e t (1658 m)

Diamond d r i l l c o r e s t o r e d on t h e p r o p e r t y . T o t a l c o s t s a p p l i e d $26,OQQ ------- C l a i m c r e d i t appor t ionment : -

1 y e a r @ $100/year t o CAT #1 of 1 4 u n i t s $ 1 , 4 0 0 1 y e a t @ $100/year t o CAT #2 of 1 4 u n i t s 1 , 4 0 0 4 y e a r s @$200 /yea r t o CAT #1 of 1 4 u n i t s 1 1 , 2 0 0 4 y e a r s @$200/year t o CAT #2 of 1 4 u n i t s 1 1 , 2 0 0

$ 2 6 1 O O O - - - - - - -

4 y e a r s @$200 /yea r t o BET #1 8 0 0

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STATEMENT OF COSTS

Summary - Diamond drilling - June 2-June 26, 1977 Wright Drilling Invoice #146

A) Direct Drilling $12,492.75 B) Indirect Drilling 3,704.75 C) Mobilization/Demobilization 9,808.00

$28,0QS,x! _ _ _ - _ _ - _ _ _ A) Detail o f Direct Drilling - $12,492.75

Diamond drill hole CD-77-1 Casing 0'-2' @ $12.75/ft $ 25.50 Coring 2'-500' @ 12.00/ft 5,976 . O O

500'-507' @ 12.75/ft 89.25

$6,090.75 Diamond drill hole CD-77-2

Casing 0'-26' @ $12.75/ft $ 331.50 Coring 26'-500' @ 12.00/ft 5,688.00

500'-530' @ 12.75/ft 382.50 $6,402.00

B) Detail of Indirect Drilling - $3,704.75 Moving from CD-77-1 to CD-77-2

38 hrs @ $16.00/hr $ 608.00 Reamong 12 machines hrs @ $37.00/hr 444.00 Equipment 10s t 886.50 Tractor rental 960.00 BP personnel - meals 600.00 44 core boxes 206.25

$3,704.75

C) Detail of Mobilization/Demobilization - $9,808.00 Kamloops-Discharge Point-Kamloops $ 2,400.00 Moving equipment from Dischar e Point

to CD-77-1 289 man h r s @ f 16.00 4,624.00 Moving equipment from CD-77-2 to Discharge Point

174 man hrs @ $16.00 2,784.00 $9,808.00

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LOCRT&VV M ! P F/GU!E f

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. $d BP Minerals Limited . .

- .a OSILiNKA RiVER PROPERTY

CAT -CLAIMS

SCALE .’ 1” = 1/2rnik, . l:31,650 1 PJTS 94 c-3 . DRAWN . DATE * PROJ.

To accompany report: - FIG. 2

.. WRIGHT DRILLING LTD. 1510 - WINDWARD PLACE

KAMLOOPS. B.C. V2E 1A6

146 INVOICE NO.

SHlPPED TO SOLD TO

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STATEMENT OF QUALIFICATIONS

C.D.S. Bates- BA (Oxon), MA (Oxon), MSc, ,DIC.

1968 BA Oxford University (Honours Degree Geology)

1970 MSc Royal School of Mines, Imperial College, London University

(blineral Exploration)

1970 DIC Royal School of Mines, Imperial College, London University

.(Mineral Exploration)

1975 MA Oxford University

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BETWEEN : BP MINERALS LII-IITED a body corporate duly incorporated under the l a w s of. the Province of B r i t i s h Columbia,and having its head Off ice at VANCOUVER B . C.. .

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(here inaf te r ca l led the Company) . AND: . W R I G H T DRILLING LTD.,a body corporate duly incorporated '

under the laws of the Province of Br i t i sh Columbia and having i ts Registered O f f i c e at S u i t e 305 - 186 Victor ia Street, Kamloops, B r i t i s h Columbia.

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(here inaf te r ca l led the Contractor)

WHEREAS : A, The Company has requested tlie Contractor t o complete, a minimum one thousand feet of d r i l l i n g and re la ted serv ices as here inaf te r se t f o r t h on the property of t he Company i n the Onineca Mining Division.

* B . The Contractor has agreed t o do the sa id Diamond d r i l l i n and t o perform the r e l a t e d serv ices requested upon the t e r m condi t ions and provisos here inaf te r contained:

NOW THEREFORE T H I S Agreement witnesseth t h a t i n consideration of the payment of the amounts s t i pu la t ed herein and mutual promise$ and-'-" covenants here in contained, it i s understood and agreed by and between the p a r t i e s as follows:

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1, SCHEDULk OF RATES - CORING

The Company hereby employs the Contractor t o d r i l l a-series of bqre holes on.'the sa id property using a BQ core b a r r e l producing a core of approximately 1 7/16 inches . The Company agrees t o pay the Contractor-on a footage b a s i s f o r a l l d r i l l i n g according to the following schedule of rates:

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To Coring From - 0 ' 500"

;500 ' 8'00'

Overburden 0' 25 '

. 25' 50' 50 plus

Price/f oot . $12.00

$12 . 75

$12.75 $2.3.50

- Field cost

2, TRANSPORTATION AND .MOVES

. A. It i s agreed t h a t t h e moving of d r i l l and camp equipment, suppl ies and personnel t o the t ranspor t discharge point and re turn from the t ranspor t loading point , s h a l l be the Company's account ~

at a lump sum of twenH-four hundred dol lars with seventy-five percent (75%) payable upon completion of the move i n and the *-

remaining twenty-five (25%) payable upon completion of the minimum footage ,

B, I n the . even t access t o the d r i l l i n g area cannot be rea l ized w i t ' t he Contractor 's truck, moving from t h e t r u c k discharge poin t t o t h e d r i l l i n g a rea w i l l be for the Company's account a t the specifi 1 abour 1: ate.

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I ( c , T!:c C ~ ~ t T 3 C t - L - 2 qJ_rees-'tC? er..ct ==it czz- for tho purpo-

of providing room and board for personnel associated with the ckf i i iny operatiGZ, Erect$on and dismantlfng 05 L-he caiiip will bc for the Company's account a t the specif ied labour r a t e .

D, It is agreed t h a t moves between d r i l l s i tes s h a l l be a t the agreed labour rate, Moving.time s h a l l be from t h e t i m e of completion of pu l l ing t o set - up t i m e a t t he next d r i l l s i te , No'machine r e n t a l charge w i l l be made unless t h e r ig is used to move itselfobloving between properties w i l l carry-out an a f i e ld

c o s t basis,

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3, WATER SUPPLY- If the source of water supply is a t a g r e a t e r dis tance than twc

thousand ( 2 0 0 0 ) feet from the d r i l l i n g ' s i t e , or over three hundrec

cost of supplying water to the d r i l l s i te i n addi t ion to t h e othei .(300) feet v e r t i c a l lift, the Contractor w i l l be paid the extra

* contract charges,

4, MUD AND ADDITIVES: If ever required t o help penetrate the overburden and o r a id i i

core recovery, would be supplied a t cos t -on t h e job s i te p l u s t en - percent, . T i m e s p e n t mixing mud and s t a b i l i z i n g t h e hole would be

, charged on a f ie ld cos t basis ,

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REAMING CASING AND CEFENTING: -

If ever necessary t o help prevent cave-ins, would be performed on a f i e l d cost bas-is, k,. -

. . *:DIRECTIONAL AND -CONTROLLLED DRILLING>-. --- . i-4 . . - It is mutually'agreed-that-directional d r i l l i n g ' t o change the

'd i rec t ion of a bore hole and controlled d r i l l i n g t o maintain the angle of a bore hole s h a l l not be p a r t of t h i s agreement,

SECURITY

d r i l l r e s u l t s or access t o any person other than t o the Coinpany's representative,

BOARD AND LODGING

men a t its own expense, and t o provide meals t o a l imited number of the Company's representatives a t the r a t e of $6.00 - - p e r meal,

expediting c o s t s be charged t o the Company's account, -

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The Contractor w i l l not give out any information regarding

The-Contractor agrees t o provide board and lodging for i ts own

The Company agrees on f ly- in jobs t h a t a l l t ransportat ion and

CORE BOXES .

It is m u t u a l l y agreed, t h a t i f requested, core boxes would be supplied on t h e job s i t e a t cost , plus t e n percent (10%)-

STANDBY

It is agreed t h a t standby, dip tes t ing , de lay t i m e & o t h e r time which the' Contractor 's c r e w s a r e performing services fo r the Company, no t otherwise covered herein, s h a l l ' b e performed a t a f i e l d c o s t basis. . .

. . .. HELICOPTER PROJECTS AID REI4OTE AREA . -

The Company agrees t h a t on hel icopter j o b s they w i l l supply al: fuels and t ranspor ta t ion cos t from truck discharge poin t t o d r i l l sites a t no cost t o the C o n t r a c t o r - All f u e l s on renote area projects are charged t o the Company's account . .

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\ - . nR J f*T.,TNG S 1 TE S The Contractor agrees t o case and d r i l l on t h e si tes and a t

angles and azimuths selected by t h e Company representative and t o follow the ins t ruc t ions of the said representa t ive r e l a t i n g to place and t i m e of d r i l l i n g .

CAVES

I n the event t h a t c a v i t i e s ox loose and caving materials are encountered of a nature as t o prevent t he successful completion of any hole, t h e Contractor does not, under such conditions, guarantee t o drill t o a predetermined depth and, i n t he event t h a t it becomes necessary t o abandon the hole, t he Company agrees t o pay f o r such uncompleted holes a t t h e ra te here in spec i f ied for a l l footage completed,

.- reaming of casing or mud c i r c u l a t i o n in- bedrock, the Company agrees to reimburse the Contractor a t f i e ld cos t ,

i n s t ruc t ion of the Company's engineer, t h e Company agrees t o pay t h e Contractor f o r such pipe o r cas ing a t cos t , f ,o.b, drill si te,

I n the event it becomes necessary to r e s o r t t o cementing,

Wherever pipe or casing is los t .o r l e f t i n a hole on the

TRACTOR ,

If required, the Contractor w i l l supply a t t h e Company's c o s t a t r a c t o r for the construction and maintenance of access roads, dri l l 's i te p r e p s a t i o n and cleanup and t h e moving of the diamond drill, Tractor ren ta l of $1,800,00 per month,plus cosk.of operator when used, FIEIS COST

It is agreed t h a t the hourly rate s h a l l be in te rpre ted here and here inaf te r t o be thirty-seven dol la rs per hour! per d r i l l - o u t f i t , It is a lso agreed t h a t t h e Contractor s h a l l include i n the hourly ra te the cos t of supplying a regular two man d r i l l c r e w , supervision and maintenance as required, d r i l l i n g machinery and associated equipment, fue ls , and board and lodging f o r the d r i l l c r e w ,

I n the event labour over and above the regular two m a n t c r e w and supervis ion are required, the Contractor agrees t o supply such addi t iona l labour a t the rate of sixteen dollars .per man per hour, It is f u r t h e r agreed and understood t h a t when the Contractor

is working a t the f ie ld cos t rate, t h e c o s t of pipe o r casing l o s t o r l e f t i n the hole, diamond articles and mater ia l s -and suppl ies consumed i n the work s h a l l be for t he Company's account a t cos t , p lus 10%

PAYMENT

The Company agrees t o pay the Contractor, i n Canadian funds the above prices, Payment t o be made wi th in 15 days of the da t e of t h e account rendered, Invoices shal l be submitted t w i c e monthly,

COMPENSATION AND INSURANCE The Contractor agrees t h a t t he men employed by him i n the

perfoxmance of t h i s Contract s h a l l be f u l l y covered under Worker's Compensation laws according t o t h e Pr0vinc.e of B r i t i s h Columbia and w i l l keep such men covered and w i l l pay the assessment required and w i l l p r o t e c t t h e Company from any ac t ion a r i s i n g therefrom, excluding however, c l a i m s a r i s i n g out of any negJigent act or omission of t h e Company, its servants o r agents,

The Cpntractor sha l l , a t h i s own cos t , maintain L i a b i l i t y and Property damage insurance i n t h e amount of f i v e hundred thousand (500,000,OO) dol la rs ,

The Contractor ca r r i e s an a l l per i ls insurance pol icy l imi ted t o $20,000,00 per d r i l l i n g o u t f i t at h i s own cos t , The Company agrees t h a t addi t ional insurance c o s t incrued f o r f ly ing o r b a r g i n g of equipment will be to t h e i r account,

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18, RIGHT OF ENTRY AND REMOmL OF EQUIPMENT, I

? Company w i l l prsvicie at its own expense, a l l r igh ts of way,

both ingress and agress, and the peaceable possession of a l l r e a l property tha t may be required i n connection with sa id work i n c l u d i n g r e a l property upon which a l l necessary temporary buildings and other f a c i l i t i e s may be erected, or placed, and w i l : save the Contractor harmless from any and a l l damages, claims, demands, costs o r charges of whatsoever'kind or character inciden' t o the occupation and use of sa id r e a l property,

s h a l l have the r i g h t t o remove, within a reasonable length of t i m e , a l l temporary buildings and other f i x t u r e s , t rade fixtures, machinery, equipment, appliances and f a c i l i t i e s furnished by and placed upon such r e a l property by Contractor,

* Upon completion of such work by the Contractor, the Contractor

19, LIENS ..

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The Contractor-shall be responsible f o r and w i l l pay promptly a l l cos ts and charges, incurred by i tself fo r labour, machinery,

. tools and supplies used i n completing the work hereunder so t ha t no l i e n o r other such charge relative. t o t h e Contractor, may be regis tered against the Company o r the property,

. - FORCE MAJEURE .

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Neither party t o the agreement s h a l l be l i a b l e fo r any loss or damage caused by reason of s t r ikes , ac t s of God, action of the elements, o r any other causes beyond its control,

LAWS APPLICABLE T h i s agreement s h a l l be-interpreted and any dispute ar is ing

hereunder s h a l l be determined i n 'accordance with the 'laws'of the Province of Brit ish Columbia,

ASSlGNrJENTS

benefit of the pa r t i e s hereto, t h e i r respective successors and assignees, provided, however, t h a t the same s h a l l not be assignable by e i the r party u n t i l the consent i n writ ing of the other sha l l - have first been had and obtained thereto,

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, . This agreement s h a l l be binding upon and s h a l l i n u r e to the

IN WITNESS THEREOF, t h i s .agreement has been executed bv the pa r t i e s hereto the day and the year first herein k i t t e n ' :

B a PIINEpALS LIMITED

WRIGHT DRILLING LTD.

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