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A Report on Ground Geophysical Survey on the Nipigon Plate Property,

ofEAST WEST RESOURCE CORPORATION

CANADIAN GOLDEN DRAGON RESOURCES LTDHele Claim Group

Thunder Bay Mining Division, Ontario Province of Ontario

RECEIVED

APR 2 B 2002

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forEast West Resource Corporation 402 - 905 W Pender Street Vancouver, British Columbia V6C 1L6

Canadian Golden Dragon Resources Ltd500 - 20 Maud StreetToronto, Ontario M5V 2M5andTeck Cominco Ltd600 - 200 Burrard StreetVancouver, British Columbia V6C 3L9

April 24th , 2002

Roger J Caven, BASc, P Eng, Consulting GeophysicistRR# 5, 479 Ocean View Drive, Gibsons, British Columbia, CANADA VON l V5 Tel/Fax: (604) 886-0479, e-mail: roger caven@telus.net (Sunshine Coast)

TABLE OF CONTENTSSummary Page 3Introduction 3Location and Access 4Previous Work 4Property - Description and Location 4Geological Setting of Host Rocks and Ore 5 General Geology of the Lake Superior - Nipigon Area 6Geology of the Claim Group 6Ground Geophysical Survey 6Distribution of Work Performed 6Conclusions and Recommendations 7References 8Certificate of Author 10

APPENDIXInterpretation report, with data presentation explanation, equipment description, and 16 datamaps.

Location Map Scale 1:1.600,000 Index map of PGE properties in the Nipigon PlateClaim Map Scale 1.50,000 Map of claim group with airborne EM anomalies, reduced Scale 1:50,000 Map of location of ground survey Scale 1:25,000 Detail map of grid and loop Scale 1:20,000

SUMMARY

East West Resource Corporation holds together with Canadian Golden Dragon Resources Ltd, several groups of claims, including the 240 claim units in 17 claims within the Hele Township area within the Nipigon Plate on the west side of and bordering the Black Sturgeon Fault south of Lake Nipigon, Ontario. The Companies have later entered into an agreement on joint exploration of the Hele claims group with Teck Cominco Ltd.

On August 4th ,2001, Fugro Airborne Surveys flew the Hele property with the Megatem as part of a larger survey over the Nipigon Plate. This survey was intended to find if electromagnetic conductors were present. On August 17th - 20th , 2001, a high resolution magnetic survey was flown over the Hele property by Terraquest Ltd to obtain detail magnetic information for the purpose of outlining the subsurface geology, and for further processing. This report deals with a recent UTEM ground geophysical survey over some of the airborne anomalies found on the Hele claims group.

The following information has been abstracted from the "Report on the Nipigon Plate Platinum Group Element - Nickel - Copper Properties, Thunder Bay Mining Division, Ontario, for Canplats Resources Corporation", October 16th , 2000, by R Caven and K Gunnison ("Canplats Report"):

"The Nipigon Plate - Lake Superior area has been interpreted to be a favourable setting for Noril'sk type PGE bearing massive sulphide deposits. The tectonic setting and geological host rock types are identical to the Noril'sk region. The existence of major copper - nickel deposits in the region such as the Duluth Gabbro complex deposits, and the Great Lakes Nickel deposit within the Crystal Lake Gabbro, as well as the presence of PGE values in a previously unknown ultramafic body (Seagull Pluton) on the south side of Lake Nipigon, suggests that favourable mafic intrusive bodies occur in the Nipigon Plate.

INTRODUCTION

The Nipigon Plate is one of the largest areas of Proterozoic rocks in the world and it includes the second most extensive area mafic intrusions after the Bushveld Complex in South Africa. Between Thunder Bay in the south to Armstrong in the north, widespread diabase (dolerite) sills of olivine - tholeiite composition called the Logan Sills cover a 200 km by 250 km area (over 40,000 square kilometres). Adjacent to this area, beneath Lake Superior, the Keweenawan flood basalts occur with up to 30 km of thickness. These lavas and the diabase (dolerite) sills are similar in geological setting to the Noril'sk - Talnakh nickel - copper - platinum group metal producing region of north central Siberia.

Within Lake Superior, the Mid-continental Rift extends south-westward to Texas and is the tectonic setting for the flood basalts. A failed arm of the Mid-continental Rift extends northward through the Nipigon Plate and takes the form of the Black Sturgeon Fault. The importance of this fault has now been recognized and has been extended northward another 150 km, by re- interpretation of the aeromagnetic data. It is now apparent that this fault and a series of parallel faults are the main structures that are related to the mafic intrusives of the Logan Sill event, as well as older and younger intrusives. Evidence for the presence of an older rift system in the Lake Nipigon Area was discovered during the course of this investigation which suggests the presence of an early basin, graben, or trough which controlled the deposition of the Sibley sediments and is related to a series of alkali felsic intrusions. This setting should also be explored for Olympic Dam- type mineralization in addition to exploring for Noril'sk type mineralization in the younger mafic

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EAST WEST RESOURCE CORPORATIONPGE PROPERTIES

NIPIGON PLATE AND QUETICO BELTONTARIO Kilometres

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intrusions. The older rift system was likely reactivated during the formation of the Mid-ContinentalRift.

It has been proposed for the last 10 years that there is a similarity between the Lake Nipigon - Lake Superior region and the Noril'sk area (Naldrett, A J, and Lightfoot, P C (1993), Duzhikov, O A, Distler, V V, Strunin, B M M, Krtychyan, A K, Sherman, M L, Sluzhenikin, S S, and Lurje, A M (1993), Society of Economic Geologists, Special Publication No 2, Giant Ore Deposits. Ed: Whiting, B H, Hodgson, C J, and Mason, R). Naldrett (1993) establishes this fact in a paper presented at Queens University as part of a symposium on Giant Ore Deposits and he concludes: "The Lake Superior area has the correct regional tectonic setting (triple junction and associated rifting), has a widespread development of basalt, and some of the basalts show evidence of chalcophile element depletion. What then is missing from the equation in the Lake Superior area that so far has precluded a "Giant", Noril'sk - type deposit being found there? One obvious point is the lack of recognition of major faults of trans-crustal magnitude, that have served as the locus for ore-bearing magma."

LOCATION AND ACCESSThe Nipigon Plate Hele property is road accessible via a road from Hwy 11-17 near Hurkett partly following the Black Sturgeon River, and joins Hwy 527, which links Thunder Bay, Ontario, to Armstrong, Ontario. Local and forestry roads branch off the highway.

PREVIOUS WORK

The only government geophysical surveys are the aeromagnetic surveys shown in the aeromagnetic maps listed in the references of this report, and regional geological mapping by M E Coates (1972).

Earlier East West carried out ground geophysical work on some of the Hele claims, consisting of line cutting, ground magnetic and induced polarization surveys.On August 4^,2001, Fugro Airborne Surveys flew the Hele property with the Megatem® as part of a larger survey over the Nipigon Plate, and on August 17th - 20th, a high resolution magnetic survey was flown over the Hele property by Terraquest Ltd.

PROPERTY - DESCRIPTION AND LOCATION

The Companies have acquired a 240 claim unit group on the Hele claim map, at 480 56' N latitude and 880 26' W longitude (SE corner), approximately 90 km NNE of Thunder Bay, in the Thunder Bay Mining Division. The property is accessed from Hwy 11-17 via a road from near Hurkett following the Black Sturgeon River.

Claim Units1224124 1229587 1229588 1229589 1233022 1233023 1239664 1239665

16 14 16 16 16 16 8 16

1239666 16

Recording DateDec 23, 1999 Dec 23, 1999 Dec 23, 1999 Dec 23, 1999 Apr 28, 1999 Apr 28, 1999 Jun 27, 2000 Jun 27, 2000 Jun 27, 2000

Claim Units Recording DateJun 27, 2000 Jun 27, 2000 Jun 27, 2000 Jun 27, 2000 Jun 27, 2000 Jun 27, 2000 Jun 27, 2000 Jun 27, 2000

Total 17 claims with 240 units, covering 3840 ha

1239667 1239668 1239669 1239670 1239671 1239672 1239673 1239674

8 8 16 16 16 16 16 10

GEOLOGICAL SETTING OF HOST ROCKS AND ORE.An extensive area of flood basalt covering and flanking widespread sediments containing sulphate evaporites and local coal measures (methane sources), which are in turn intruded by 30 - 350 m thick dolerite (diabase) sills, characterizes the geological setting of the Noril'sk camp. A major northeast trending fault known as the Noril'sk - Kharayelakh Fault is the main controlling feature that localized the mafic to ultramafic intrusions and dolerite sills. This fault is steeply dipping and is deep seated and may have tapped the mantle. The overall setting is a rift tectonic environment and is proximal to a triple junction of faults where two rift systems meet. All of the above characteristics are found in the Lake Superior - Nipigon area, including a major fault structure (the Black Sturgeon Fault) and a triple junction in Lake Superior associated with the Midcontinental Rift of North America.

GENERAL GEOLOGY OF THE LAKE SUPERIOR - NIPIGON AREA

Sibley SedimentsThe Sibley Group of sediments occur on the north shore of Lake Superior and extend north-ward as far as Armstrong, Ontario, and form the base for the Nipigon Plate. This would be roughly a 200 km by 150 km area that has subsequently been intruded and capped by the Logan diabase sills. Age dating by Rb/Sr methods have suggested an age of 1339 +I- 33 Ma, Franklin (1970), however, mapping by Sutcliffe (1987) suggests that an older date is possible for the base of the Sibley. In the vicinity of English Bay on Lake Nipigon fragments of Sibley have been observed by Sutcliffe to be mixed with felsic volcanic fragments that are related to a high level alkali intrusion that yields an age of 1537 Ma. Fragments of a quartzite and grit - shale units were observed in the alkaline porphyry intrusive by Gunnison (Canplats Report), suggesting the Sibley or lower sections existed when the alkali body was intruded. Therefore this suggests that an older rift system existed, as old as 1537 Ma. Tanton (1931), Franklin (1970, 1980, 1982), Cheadle (1986), Mcilwaine and Wallace (1976), Wallace (1981), and Sutcliffe (1991) have described the stratigraphy and geological setting of the Sibley in detail.

The importance of the Sibley to the search for PGE - nickel deposits in the Nipigon Plate area is that a source of sulphur is desirable for the generation of sulphide deposits within the mafic - ultramafic bodies. Franklin (1970, 1982) notes that barite occurs in the lower and middle formations (Pass Lake and Rossport) and that gypsum and anhydrite occur in the middle and upper formations (Rossport and Kama Hill). In addition methane gas and hydrogen sulphide occur, particularly in association with stromatolite horizons in the Rossport and Kama Hill formations. It is therefore concluded that abundant sources of sulphur were available to later mafic - ultramafic intrusions to generate sulphide bodies. This same geological setting occurs at the Noril'sk and Talnakh PGE - Ni - Cu mining camps in northern Siberia, C l S (formerly USSR), where sulphate-bearing sediments and coal measures are in contact with mafic intrusions.

Mid Proterozoic Mafic IntrusionsThe mid Proterozoic mafic intrusions in the vicinity of the Nipigon Plate consist of two known suites of rocks, an early stage ultramafic - picrite event, the full extent of which is unknown, and the diabase - dolerite Logan Sills which are very extensive, 200 km x 120 to 250 X 200 km. These two events are followed by other mafic intrusives southwest of Thunder Bay, namely the Pigeon River dykes, which cut the Logan Sills and the Crystal Lake gabbro - Mollic dyke which cut the Pigeon River dykes. Further away to the east of the Nipigon Plate a series of carbonatite syenite complexes occur such as the Coldwell complex which contain phases of gabbro - norite hosting large low grade copper - PGE values. These intrusions are also related to a failed arm structure that trends northeast from the Midcontinental Rift beneath Lake Superior and are dated at 1.05 billion years, Good P J, and Crockett J H (1994).

The geology of the picrites and Logan sills in the Thunder Bay region has been described by Pye (1953), Blackadar(1954), Geul (1970, 1973).

GEOLOGY OF THE CLAIM GROUP

The property covers a complex set of magnetic anomalies due to several faults intersecting the area. The Hele claims are set adjacent to the Black Sturgeon Fault, which forms the boundary to the northeast. The regional geology was reconnaissance mapped by ME Coates 1967, and published in 1972 (Coates, ME, 1972) as Map 2236, Shillabeer Creek Sheet. The area covering the property is shown on the appended geology map. In general the area is covered by diabase underlain by Sibley sediments, but in detail a series of olivine rich ultramafic outcrops have been found, surrounded and partly covered by an olivine-pyroxene rich diabase (Logan Sill).

GROUND GEOPHYSICAL SURVEY

During March 20 - 26th , 2002, a ground geophysical survey was carried out investigate some of the airborne anomalies found in the airborne survey. The equipment used was UTEM (University of Toronto EM), a deep penetrating time domain system. The survey charges the ground by means of a large current loop, and the response is measured with a receiver coil along lines perpendicular to one of the sides of the loop. The loop location and the survey lines are shown on the accompanying maps. No significant conductors were found to explain the airborne responses. The interpretation was done by Dr Jules Lajoie of teckcominco. It may be useful to consider the directions in which the surveys were carried out. The airborne Megatem® survey was flown in a north west direction, white the UTEM survey lines were laid out in a north-northeast direction, and therefore almost perpendicular to the airborne survey direction. Dr Lajoie remarked that a relatively narrow conductor parallel to the survey direction may not have been detected. The airborne survey with wide line separation is not necessarily a good indicator of conductor strike. The ground survey was also based on geological considerations.

The survey and equipment has been described in the appended report by Dr Jules Lajoie, and the survey results are included on 16 data maps.

DISTRIBUTION OF WORK PERFORMED

The work covered the following seven claims, including the loop layout as shown on theaccompanying map:Claim Units Recording Date1229589 16 Dec 23, 19991233023 16 Apr 28, 19991239665 16 Jun 27, 20001239666 16 Jun 27, 20001239669 16 Jun 27, 20001239673 16 Jun 27, 20001239674 10 Jun 27, 2000

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ROGER J C AVEN. P ENG

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HELE PROPERTY CLAIHS. NIPIGON AREA , . , , GROUND GEOPHYSICS - UTEH Survay

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Hele Property Hele Area, Thunder Bay Mining Division

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Hele PropertyBlack Sturgeon River Area

UTEM Loop and Suivey Lines

CONCLUSIONS AND RECOMMENDATIONS

The existence of airborne EM conductors in the absence of known graphitic occurrences points to the possible presence of massive sulphide deposits on the property. The preliminary interpretation presented immediately after the survey also indicates that the anomalies would be at depths of 37 -113 metres. In order to locate such conductors on the ground would require an EM system capable of penetration to the depths indicated. The conductors may be located with a MaxMin instrument, or mapped with a time-domain EM system (pulse EM) such as UTEM.

A follow-up using the UTEM system has been carried out over a limited area, although not finding significant conductivity. The airborne anomalies thus remain unexplained at this time.

Further ground electromagnetic and induced polarization surveys are recommended for this claim group prior to eventual drilling.

Respectfully submitted April 24th , 2002. ,;

Roger J Caven, P Eng, FGAC

8

REFERENCES

Blackadar, R G (1954). Differentiation and assimilation in the Logan Sills. Ph D thesis, University of Toronto.

Canplats Report: "Report on the Nipigon Plate Platinum Group Element - Nickel - Copper Properties, Thunder Bay Mining Division, Ontario", for Canplats Resources Corporation, formerly International Colby Resources Corporation, by R Caven and K Gunnison, October 16th , 2000.

Cheadle, Burns A (1986). Alluvial - playa sedimentation in the lower Keweenawan Sibley Group, Thunder Bay District, Ontario. Canadian Journal of Earth Sciences, Vol 23, No 4, p 527 - 542.

Coates, M E (1972). Geology of the Black Sturgeon River Area, District of Thunder Bay; Ontario Department of Mines and Northern Affairs, Report 98, 41 p, incl maps 2233, 2234, 2235, and 2236, scale 1^ 172 mile.

Duzhikov, O A, Distler, V V, Strunin, B M M, Krtychyan, A K, Sherman, M L, Sluzhenikin, S S, and Lurje, A M (1993), Society of Economic Geologists, Special Publication No 2, Giant Ore Deposits. Ed: Whiting, B H, Hodgson, C J, and Mason, R

Franklin, J M (1970). Metallogeny of the Proterozoic rocks of the Thunder Bay district, unpublished Ph D thesis, University of Western Ontario, London, 317 p.

Franklin, J M, Mcilwaine, W H, Poulsen, K H, and Wanless, R K (1980). Stratigraphy and depositional setting of the Sibley Group, Thunder Bay district, Ontario, Canada, Canadian Journal of Earth Sciences, Vol 17, No 5, p 633 - 651.

Franklin, J M (ed. 1982). Proterozoic geology of the northern Lake Superior area, Geol Assoc of Canada Field Trip Guide Book 4, 71 pages.

Geul, J J C (1970). Geology of Devon and Pardee Townships and the Stuart Location. Ont Dept of Mines Geology Report 87, accompanying map 2207, re:Great Lakes Nickel Deposit.

Geul, J J C (1973). Geology of Crooks Township, Jarvis and Prince locations and offshore islands, District of Thunder Bay, Ontario Division of Mines, Geological Report 102, 46 p.

Good, D J, and Crockett, J H (1994). Genesis of the Marathon Cu - platinum group elementdeposit, Port Coldwell alkalic complex, Ontario: A mid-continent rift related magmatic sulphide deposit. Economic Geology, Vol 89, p 131 - 149.

Mcilwaine, W H, Wallace, H (1976). Geology of the Black Bay Peninsula Area, District of Thunder Bay, Ontario. Ontario Division of Mines, GR 133 incl map 2304, scale 1'-1 mile.

Naldrett, A J (1993). Ni - Cu - PGE Ores of the Noril'sk Region, Siberia: A Model for Giant Magmatic Sulphide Deposits Associated with Flood Basalts,in Society of Economic Geologists, Special Publication No 2, Giant Ore Deposits. Ed: Whiting, B H, Hodgson, C J, and Mason, R.

Naldrett, A J, and Lightfoot, P C (1993), Society of Economic Geologists, Special Publication No 2, Giant Ore Deposits. Ed: Whiting, B H, Hodgson, C J, and Mason, R

Pye, E G (1953). A petrographic study of the textures of basic and ultrabasic igneous rocks; unpublished PhD thesis, University of Toronto, Toronto, Ontario, 93p.

Sage (1998). Operation Ignace- Armstrong, Obonga Lake - Lac des Iles Area, Geology of Area II: Part 1 - Super crustal rocks, Part 2 - Granites, Granite-Super crustal Relationships, OGS Open File Report 5978, 443 p, maps P. 962, and P. 963.

Sutcliffe, R H (1987). PhD Thesis, University of Western Ontario, London, Ontario.

Sutcliffe, R H (1991). Proterozoic Geology of the Lake Superior Area in Geology of Ontario, OGS Special Volume 4 pt 1, p 627 - 660.

Tanton, T L (1931). Fort William, Port Arthur, and Thunder Cape map areas, Thunder Bay District, Geological Survey of Canada, Memoir 167, 222 p.

Wallace,H (1981). "Keweenawan geology of the Lake Superior Basin", in Proterozoic Basins of Canada, Ed: F H Campbell, GSC Paper 81-10, pp 399-418.

Gupta, V K (1991) Shaded image of total magnetic field of Ontario, east-central sheet, Ontario Geological Survey, Map 2586, scale 1:1,000,000

Aeromagnetic Maps Scale 1:63,360 2117G NTS 52A/152118G 52H/22125G 52A/162126G 52H/1

10

CERTIFICATE OF QUALIFICATIONS

l, Roger J Caven, of 479 Ocean View Drive, Gibsons, British Columbia, hereby certify that:

1. l am a graduate of the University of Toronto, Faculty of Applied Science and Engineering, Engineering Science Course, Geophysics Option (1967). l have also studied "Geology of Mineral Deposits" at the graduate level, leading to certificates, at the University of Toronto.

2. l am a registered Professional Engineer in the Provinces of British Columbia and Ontario.

3. l am a Fellow of the Geological Association of Canada, and an Active Member of the Society of Exploration Geophysicists, the Australian Society of Exploration Geophysicists, the European Association of Geoscientists and Engineers, the Society of Economic Geologists, and IEEE.

4. l am presently employed as an independent Consulting Geophysicist, with address in Gibsons, British Columbia.

5. l have been employed in my profession since graduation, by Barringer Research Inc as a Senior Geophysicist, and with UMEX Inc as Chief Geophysicist in charge of exploration from 1974, and as a Consulting Geophysicist since 1983.

6. The information contained in this report was obtained through a study of information listed in the references, airborne surveys over the property, as well as having worked extensively in the Canadian Shield, particularly in northwestern Ontario on the Thierry Ni-Cu-PGE deposit near Pickle Lake, on exploration for nickel sulphides and other mineralization in that region. An insight into the UTEM system operation was obtained early when working with Dr Yves Lamontagne during the initial stages of system testing.

Dated at Gibsons, British Columbia, this 24th day of April, 2002

Roger J Caven, P Eng, FGAC Consulting Geophysicist

HELE Property Utem Survey

The objective of the Hele Utem survey was to search for deep conductive bodies that may be associated to base metal sulphide systems.

The field portion of the Utem survey on the Hele property was completed between March 20 and 26, 2002, including loop laying and retrieving. The operator was Kim Bilquist of Teck Cominco Ltd., assisted by Roger Netamegesic and Chris King of Thunder Bay. As shown in Figure 8, a 2 km by 2 km transmitter loop of 15 guage enamel coated copper wire was installed. Eight lines were surveyed up to 1800 meters from the loop. Short descriptions of the Utem system and data presentation scheme can be found elsewhere in this report.

The data profiles are shown in the attached Data Sections (DS). All are channel 1 reduced and normalized. For each line, continuously normalized and point normalized plots are given. Station separation is 50M. Data quality is excellent as is clearly evident from the extremely low station to station data variability.

All the data sections show a similar normal background response. No significant anomalous conductors are observed in this data. A contact (fault?) is indicated separating slightly more conductive lithology to the south from that to the north. It's location ranges from 350N to 550N on most lines and is indicated on a data section by a contact symbol consisting of a triangle pointing toward the more conductive portion, and enclosing the latest anomalous channel on which the contact is observed.

It is important to note that a thin (say less than 100M) conductor, with or without depth extend, whose strike parallels the survey lines would not produce an anomaly in this survey. In the latter case, the survey geometry would have to be turned by 90 degrees so that the survey lines cross the strike of the target ideally perpendicularly.

r\c rue i ITPM

UTEM is an acronym for "University of Toronto E!ectroMannstQmeter" (West et 2!., 1984\ Or Y Lamontagne (1975) developed the system in 1971 as part of his doctoral thesis at that university. It wasdeSSTied tn OQhigyg thg eonoitiyitw grvjj jntgrnrgtohjlitv/ ngQgocap/ *Q h3HC!!9 rTOb!emS Of dee" SX^IOfatJOn

conductive environments, and a variety of terrain conditions in an economically viable manner. One of the essential characteristics that distinguishes it from other systems is that its system function closely approximates a step function response measurement which has an inherent advantage in exploration for deep conductors. The UTEM II! version of the system has been in use since 1981, but with numerous firmware, processing software, and hardware upgrades since that time.

The field procedure consists of first laying out a large transmitter loop (usually 1 to 2 km) of single strand enamel insulated wire. For this survey, 15 gauge wire (bare copper diam. z 1.45mm) was used. Survey lines are usually oriented perpendicular to one side of the loop and surveying can be performed both inside and outside the loop.

The Utem II! transmitter energizes the loop with a precise triangular waveform at a carefully controlled base frequency (30.974Hz for this survey), chosen to minimize power line interference. Power is supplied by a 22QQW motor generator. The Utem Iff receiver system includes a sensor coil and backpack portable receiver which has a digital recording facility on solid state memory. Time synchronization between transmitter and receiver is achieved through highly accurate quartz crystal clocks in both units.

The sensor coil measures one or more components of the electromagnetic field and responds to its time derivative. All three components may be measured, although, in this survey, only the vertical component was used. The receiver can stack any preset number of cycles (most commonly 1000 to 4000 cycles) to increase the signal to noise ratio. The transmitter current waveform is triangular and hence, the receiver coil will sense a perfect square wave in the absence of conductors. In the presence of electrical conductors that may be geologic or cultural in origin, deviations from the perfect square wave are observed.

Large scale current systems are induced in the earth and these produce the typical "half-space" Utem background profiles, where each Utem channel in turn crosses zero with increasing distance from the loop. This obviously varies from area to area depending on the resistivity of the rocks. Other currents may bs induced in locally more conductive zones, and these anomalies are superimposed on the background response.

The UTEM receiver samples each half cycle of the waveform in ten channels or time windows. The delay time to the start of each channel window is equal to the width of the time window over which the signal is averaged. For a base frequency of 31 Hz, the delay times range from 1 5.8 microseconds for channel 10, to 8.07 milliseconds for channel 1. Therefore, the higher numbered channels (10-7) correspond to short time or high frequency while the lower numbered channels (4-1) correspond to late time or low frequency. Poor and/or small conductors will respond on channels 10, 9, 8, and 7. Better and/or larger conductors will give responses on progressively lower numbered channels as well. For example, large, massive, highly conducting sulphide or graphite bodies should produce a response on all channels.

At the end of a survey day, the data stored in the memory of the receivers are transferred to a laptop computer. The data are processed incorporating the chainage data, then printed and/or plotted using TeckCominco Ltd. proprietary software. In this report, the data are portrayed on Data Sections (DS) as profiles of each of the channels.

REFERENCES -

Lamontagne, Y., 1975, Applications of Wideband, time-domain EM measurements in mineral exploration: Ph.D. thesis, U. of Toronto.

West, G. F., Macnae, J. C., and Lamontagne, Y., 1984, A Time- Domain EM System Measuring the Step Response of the Ground: Geophysics, vol. 49, pp. 1010-1026.

DATA PRESENTATION

The results of this survey are presented in 8 Data Sections (DS), each consisting of 2 plots, continuous and point normalized. On each DS, the earliest time channels (8 to 5) are presented in the top graph, the middle time channels (5 to 2) are presented in the middle graph, and the latest time channel 1 is presented in the lower graph. The profiles can be identified by symbols resembling somewhat the channel number (i.e. eh. 4 is a small square, eh. 3 is a slash (top left), ch.2 is a slash (top right), etc.)

The magnetic field amplitudes from both the transmitter loop (primary field) and from the electric currents induced in the ground (secondary field) vary considerably from stations near the transmitter loop to stations far from the transmitter loop. Various data presentation schemes can be used, each having advantages and disadvantages.

A) Channel 1 Reduced and Normalized Plots

This is the standard "general purpose" type of data presentation, applicable to the widest variety of data sets when there is no anomalous channel 1 response. With this scheme, errors from miscalculation of the primary field due to chainage errors are displayed in Ch. 1 only.

1. Continuously normalized plots.

a) For channel 1:

CM -P Vo Ch.1 response = ———— x 100*26

Pwhere P is the primary field from the loop at the station, and Ch.1 is the observed amplitude for

channel 1.

b) The remaining channels (ns2 to 10) are channel 1 reduced and channel 1 normalized:

Ch.n-Ch.1Oh Ch.n response = -————— x ^QO%

Ch.1

where Ch.n is the observed amplitude of Channel n (0=2 to 10).

2. Point normalized plots.

These plots display an arrow at the top of the Data Section indicating the station to which all data on the line are normalized. The purpose of point normalized plots is to display only the relative amplitude variation of the SECONDARY field along the survey line, that is, only that portion of the magnetic field resulting from electric currents induced in the ground. They typically display strong amplitudes close to the loop front, often off scale, and very low amplitudes at the ends of the lines.

a) For Channel 1:

Ch.1 - Ppn"/o Ch.1 response s ————— x 10007o

Ppn

where Ppn is the primary field from the loop at the point norm station and Ch.1 is the observed amplitude for Channel 1.

b) The remaining channels ^2 to 10) are channel 1 reduced and channel 1 normalized:

Ch.n-Ch.1pn•ft Ch.n response = ——————— x 100%

Ch.lpn

where Ch.n is the observed amplitude of Channel n and Ch.lpn is the observed channel 1 amplitude at the point norm station.

Point normalized plots are usually shown for each survey line in addition to the continuously normalized plots. This helps interpretation by providing a different perspective to the data. For Utem channels 2 to 10, point normalization is equivalent (within a constant factor) to the data presentation scheme used in most pulse type time domain EM systems. The station used for point normalization is usually chosen at a constant distance from the loop for the whole grid, or, if there is an anomaly, at a station near the center of the anomalous response, for quantitative interpretation.

B) Primary Field Reduced and Normalized Plots.

With the normalizing procedures described in the previous section, errors from miscalculations of the primary field due to chainage errors, are displayed in Channel 1 only. However, if there is a channel 1 response and the above normalizing scheme is used, then one must add the channel 1 response to the other channels to obtain the actual profile amplitudes. Therefore, in cases where responses are observed in channel 1, it is common practice to include PRIMARY FIELD reduced and normalized plots, defined as follows:

1) Continuously Normalized Plots:

Ch. n-P % Ch. n response * —————— X 100"Xo

P where P is the primary field from the loop at the station.

2) Point Normalized Plots:

Ch. n - Ppn% Ch. n response = ————~—— X IOQ.%

Ppnwhere Ppn is the primary field from the loop at the station used for point normalization (see last

section).

The channel 10 window has such a small delay time, equivalent to very high frequency, that in most geological environments, it becomes completely saturated at a very short distance from the transmitter loop. In such cases, it provides no valuable information and is annoying by overwriting other useful channels on the plot. This often applies also to channel 9. As this is the case in this survey, channels 10 and 9 are not presented in this dataset.

j g

HELE PROPERTY JV /Area TECK COMINCO LTD H ZOp: KMB /P Freq{Hz): 30.974 #Stns: 34 Loop: 2 Line: OWChl reduced. Chl normofzed. Tgtala-.P- 1650M. /L-2XXXM. U'rie Azim.: O . Rx Lobd: Q

l 200®O*

1BOON

1600M

1400N -l

1200N H

1000N H

800N -^

SOON H

400N i

200N 4

HELE PROPERTY JV //Ved TECK COMINCO LTD H Z Op: KMB /P FrecKHz): 30.974 #Stns: 34 Loop: 2 Line: OW DS:1pChl reduced. Chl nonnafaed. TcrtalaiP— 16SOM. A— 2000M. Li'ne Azim.: O . Hx Lob-Hi: Q Point Mormofegd.

HELE PROPERTY JV /Area TECK COMINCO LTD Hz Op: KMB /P FrectfHz): 30.974 #Stns: 33 Loop: 2 Line: 4DOE DS:2Chl neduced. Chl normalized. TotolsrP- 1600M. /L-2SXXJU. Lj'ne Arim.: O . Rx Lobe): 4

1SOON -

1600N -

140ON -

1200N -

Q OCCS:

1000N -

HELE PROPERTY JV /Area TECK COMINCO LTD Hz Op: KMB /P Freq{Hz): 30.974 #Stns: 33 Loop: 2Chl reduced. Chl normab'zed. Total gf— 1600M. A- 200OM. b'ne Azim..- O . R:

Line: 400ELabel: 4. Point Normalized.

DS:2p

HELE PROPERTY JV /Area TECK COMINCO LTD Hz Op: KMB /P Freq{Hz): 30.974 fStns: 36 Loop: 2 Line: 300E

Loop' ' ' —

DS:3Cbl reduced. Ch l normalized. TototeP- 17SOM./1-20OOM. Line Azim.: O . Rx Label: 8

o(N

1SOON -

160ON -

14OON -

1200N -

1000N -

SOON -

600N -

400 N -

200 N -

HELE PROPERTY JV /Area TECK COMINCO LTD HzOp; KMB /P Freq(Hz): 30.974 #Stns: 36 Loop: 2 Line: 800EOil reduced. CM normalized. TotdaiP- 1750M. /L- 2000M. Une Azim.r O . Rx Lobd: 8 Point Normalizgd.

HELE PROPERTY JV /firea TECK COM1NCO LTD H ZOp: KMB /P Freq{Hz): 30.974 fStns: 35 Loop: 2 Line: 1200ECbl reduced. Chl normolized. rotalsJ1-175OM. A-200QM. line Azim.: O . Rx Label: 12

160ON -

1200N -

M CN

JC2 O

OL

HELE PROPERTY JV /Area TECK COMINCO LTD HzOp: KMB /P Freq(Hz): 30.974 #3tns: 35 Loop: 2 Line: 1200ECbl reduced. Chl normaSzal. TaktxP- 1750M- A-20OOM- line Alim.: O . Rx Labd: 12 Pont Normoli'red-

DS:4p

HELE PROPERTY JV /Area TECK COMINCO LTD HzOp: KMB /P Freq(Hz): 30.974 #Stns: 32 Loop: 2 Line: 1400EChl reduced. Chl normalized. TotolaiP- 15SOM. /L-2QCGU. Urie Azim.: O . Rx Labeh 1-4______

1BOON l

1SOON H

14OON H

1200N -\

SOON H

400 N H

HELE PROPEFrrr JV /Area TECK COMINCO LTD HzOp: KMB /P Freq{Hz): 30.974 fStns: 32 Loop: 2 Line: 1400EChl reduced. Chl normalized. TotalaiP- 1550M.A-20OOM. Line Aiirn.: O . Rx Lofaefc 1 A Pont Normoliied.

Ittf ' ' —

DS:5p

Loop ' ' —HELE PROPERTY JV /Area TECK COWINCO LTD Hz nc r: Op: KMB /P Freq(Hz): 30.974 #Stns: 32 Loop: 2 Line:1600E UoiOChl reduced. Chl normaffzed. TotdiiJ'- 155pM.A-20CX)M. Une Azim.; O . Rx Label: IS___________

1SOON -

C-4toott.

HELE PROPERTY JV /Area TECK COMINCO LTD HzOp: KMB /P Freq(Hz): 30.974 #Stns: 32 Loop: 2 Lirw:1600EOil reduced. CM normalized. TbtoteP- 1550M. /[.-20QOU. Labeh 1S Point Normogied.

HELE PROPERTY JV /Area TECK COMtNCO LTD Hz Op: KMB /P Freq{H2): 30.974 #Stns: 33 Loop: 2 Line: 1800E DS:7•Oil reduced. Oil Totals:P- 1600M. A-20OOM. Line Aam.: O . RK Label: 1S

180ON -

1600N

1400N -

1200M -

1000N -

SOON -

BOON -

400N -

200N -

00ac

l

HELE PROPERTY JV /Area TECK COMINCO LTD Hz no "7 Op: KMB /P Freq{Hz): 30.974 #Stns: 33 Loop: 2 Line: 1800E Uo! /' PCh1 reduced. Chl nonnuh'^ed. Torials-.P- 1&X3M./L-2QQQM. Lfne Azirn.: O . Rx Lobefc 18 Pant Normalized._____

1800N -

ISOONw-

1400N -

1ZOON -

rs o

HELE PROPERTY JV /Area TECK COMINCO LTD Op: KMB /P Freq{Hz): 30.974 #Stns: 27

Hz Loop: 2 Line: 2000E DS:8

Chl reduced. Chl normoliied. TotolB:P-1300M.A.-20OOM. Urie Azim.;0 . Rx Lafcd: 2O

200(gl

—l OlQg

130ON

160ON

14OON -

1200N -

1000N -

800N -

SOON

400 N -

200 N -

HELE PROPERTY JV /Area TECK COMINCO LTD HzOp: KMB /P Freq(Hz): 30.974 #Stns: 27 Loop: 2 Line: 2DOOEChl reduced. Chl normalized. TotdsrP- 1300M. A-20QOM. Line Aiim.: O . Rx Lobd: 2O Pant hkymdfzed.

DS:8p

ONTARIO MINISTRY OF NORTHERN DEVELOPMENT AND MINES

Work Report Summary

Transaction No: W0240.00790 Status: APPROVED Recording Date: 2002-APR-25 Work Done from: 2002-MAR-19 Approval Date: 2002-JUL-18 to: 2002-MAR-27

Client(s):128645 EAST WEST RESOURCE CORPORATION

137526 CANADIAN GOLDEN DRAGON RESOURCES LTD.

Survey Type(s):

EM LC

Work Report Details:

Claim*

TB 1229588

TB 1229589

TB 1233022

TB 1233023

TB 1239665

TB 1239666

TB 1239669

TB 1239673

TB 1239674

External Credits:

Reserve:

Perform

30S6.712

SO

52,237

54,475

S2.238

52,238

S1 3,425

SO

831,325

Perform Approve

soS6.712

SO

52,237

54,475

52,238

52,238

S13.425

50

531,325

SO

Applied

56,400

56,400

51,725

56,400

SO

SO

SO

56,400

54,000

531,325

SO Reserve of Work

SO Total Remaining

Applied Approve

56,400

56,400

51,725

56,400

SO

SO

SO

56,400

54,000

531,325

Assign

SO

S312

soso

54,475

52,238

S2.238

57,025

50

516,288

Assign Reserve Approve Reserve Approve Due Date

0

312

0

0

4,475

2,238

2,238

7,025

0

516,288

SO

SO

SO

SO

SO

50

SO

SO

SO

so

SO 2003-DEC-23

SO 2003-DEC-23

SO 2003-APR-28

SO 2004-APR-28

SO 2002-JUN-27

SO 2002-JUN-27

SO 2002-JUN-27

SO 2003-JUN-27

50 2003-J UN-27

SO

Report*: W0240.00790

Status of claim is based on information currently on record.

52A16NW2004 2.23505 HELE 900

2002-Jul-26 11:17 McAuleyJ Page 1 of 1

Ministry ofNorthern Developmentand Mines

Date:2002-JUL-19

Ministere duDeveloppement du Nord et des Mines Ontario

GEOSCIENCE ASSESSMENT OFFICE 933 RAMSEY LAKE ROAD, 6th FLOOR SUDBURY, ONTARIO P3E 6B5

EAST WEST RESOURCE CORPORATION905 WEST RENDERAPT 402VANCOUVER, BRITISH COLUMBIAV6C 1L6 CANADA

Tel: (888)415-9845 Fax:(877)670-1555

Dear Sir or Madam

Submission Number: 2.23505 Transaction Number(s): W0240.00790

Subject: Approval of Assessment Work

We have approved your Assessment Work Submission with the above noted Transaction Number(s). The attached Work Report Summary indicates the results of the approval.

At the discretion of the Ministry, the assessment work performed on the mining lands noted in this work report may be subject to inspection and/or investigation at any time.

If you have any question regarding this correspondence, please contact STEVEN BENETEAU by email at steve.beneteau@ndm.gov.on.ea or by phone at (705) 670-5855.

Yours Sincerely,

Ron GashinskiSenior Manager, Mining Lands Section

Gc: Resident Geologist

East West Resource Corporation (Claim Holder)

Assessment File Library

East West Resource Corporation (Assessment Office)

Canadian Golden Dragon Resources Ltd. (Claim Holder)

Robert Stuart Middleton (Agent)

Visit our website at http://www.gov.on.ca/MNDM/LANDS/mlsmnpge.htm Page: 1 Correspondence 10:17288

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