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ASSESSMENT REKlRTON THEAND-ON THECARTHAGE GROUPC)w-\YMIR. B.C.LONGITUDE:ll7O 10' WOWNER : NITHEX J3XPUIRATION LTD.OPERATOR : NITHM EXPIDlUiTION LTD.August 31, 1983

TABLE O F CONTENTSSUMMARYINTRO DUCT I O NLOCATION AND AGCESSCLAIMSPRO P m T Y HISTORYREZIONAL GEDLOGYPROPERTY GE?JMGYV E I N SYSTEHS AND O R E M I N E R A L I U T I O NEXPLORATION APPROACHD I S C U S S I O N O F RESULTSCONCLUSIONSSTATEHENT O F COSTSREFERENCESSTATEMENT 3F QUALIFICATIONS,APPENDICES- GEDCHEMICAL ANALYSIS METJBDAPPENDIX 11 - GMCHEMTCAL ANALYSIS C E R T I F I C A T E SAPPENDIX IAPPENDIX 111- GEDLOGICAL F I E L D NOTES

TABLE OF FIGURESFollowing PageFigure 1LOCATION MAP (1:2,400,000)Figure 2ACCESSMC P(1:50,000)Figure 3C W I M MAP (1:50,000)Figure 4GEOLOGY MAP (1:31,680)Figure 5GEUMGY O F THE CARTHHGE GROUP ( 1 : 2 5 )Figure 6GEDCHINICAL RESULTS FUR COLD ANDS I L V m (1: 2500)Figure 7GEX)CHWICBL RESULTS FOR LFAD ANDZINC (1: 2500)Figure 8GEtICHEMICBL RESULTS FUR QPPElR (1:2500)-.24In Pocket11t

1. YAn exploration programme consisting of s o i l sanpling andgeologic napping was done on the Carthage C l a i m Group, locatednear Y m i r , B.C.The presence of a previously discovered s o i lanomaly was confirmed and a new anomaly was found.INTRODUCTIONIn 1980, Nithex Exploration Ltd. purchased several groupsof claims which l i e i n a north-trending b e l t just east of Y m i r ,The ground acquired a t t h a t time included the CarthageB.C.Group,During the summer of 1981, Nithex conducted line-cutting,s o i l sampling and geological mapping programmes over the CarthageGroup i n order to explore f o r gold and s i l v e r mineralization,This work delineated several anomalous areas and the followingreport describes a programme of d e t a i l s o i l sampling and geologi c a l napping c a r r i e d out over one of these anomalies.3,LOCATION ANI) ACCESSThe Carthage Claim Group i s i n the Nelson Mining Divisiona t l a t i t u d e 49 degrees 20 minutes N, longitude 117 degrees 10minutes W on N.T.S.sheet 8 2 / 6( i g u r e1 ) .Creek, f i v e km NE of Y m i r , B.C.( i g u r e2).It i s on HuckleberryAccess to t h e claimsi s gained v i a f i v e knr of d i r t road which leaves Highway 6 a tYmir, and then on foot f o r approximately two km.A l l roads lead-ing to the property have, apparently, been washed out o r areovergrown.

The Carthage Claim Group i s located on Mineral T i t l e sReference Map 8 2 / (Figure6 3).Pertinent claim data a r el i s t e d i n t h e t a b l e below:Claim-Record NO.CarthagePatBeresfordDuff e r i nWild HorseX-rayRay Fr.Jo p l i nOronocoS oJ.M.RayGolden CalfRamseyMaude Fr.743744750751752753 )753")757758759765766767%)767")Anniversary 198319831983198319831983198319831983*Adjoining reverted Crown-grants which do not collectivelyexceed 61.78 acres a r e combined to form one recorded claim.The above information conforms with the records of theMining Recorder a t Nelson.5.PROPERTY HISTORYThe claims were f i r s t Crown-granted between 1900 and 1905.Prospecting and exploration work was done by many p a r t i e s overt h e years, but production of ore was never achieved.The mostIextensive exploration programme carried out on any of t h e claimswas t h a t done by t h e Y m i r Good-Hope Mining Co.Their work, con-s i s t i n g of road building, surface trenching, d r i f t i n g and u n d e r

Nithex Exploration Ltd.CMTtWGE GROUP,

NITHEX EXPLORATION LTD.CARTHAGE GROUPACCESS MAPP0 2000 4000 6000 8000 IOOOO

Nithex Exploration Ltd.Carthage GroupCLAIM MAP

ground diamond d r i l l i n g , was carried out on the X-Ray Groupbetween the years1944 and 1950. A t t h a t time, t h e group con-s i s t e d of t h e X-Ray, Wild Horse and Annie Maud Crown-grantedmineral claims.No major work was done on t h e claims u n t i l 1979, when theproperty was prospected by D. R. Cochrane.Nithex Exploration Ltd. purchased the Carthage Group i n1980, and carried out an exploration programme i n 1981 consisting of geochemical s o i l sampling and geologic mapping.6.REGIONAL GEDLOGYThe Y m i r area i s underlain by a s e r i e s of regionally andcontact- etamorphosed sedimentary anu volcanic rocks rangingi n age from Proterozoic t o Upper Jurassic (Figure4). Thisenkire sequence has been intruded by the Cretaceous Nelsongranites and g r a m d i o r i t e s and Tertiary Coryell plutonic rocks( i t t l e ,1960; McAllister, 1951).The non-intrusive rocks s t r i k e roughly north-south andr,dip o r are overturned steeply t o the west ( c l l i s t e 1951).Two phases of deformation have caused extensive crumpling and,locally, the structure can be very complex (F'yles and Hewlet ,1959; McUllister, 1951).Two major folds have been identified,howevsr, and these a r e the Baldy Anticline and the Laib CreekSyncline.Both a r e i s o c l i n a l folds which have axes trending

s l i g h t l y e a s t of north ( c l l i s t e 1951).r,Several faults t r a v e r s e t h e region.Most of t h e s e f a u l t ss t r i k e p a r a l l e l to t h e o v e r a l l formational s t r i k e with s t e e pe a s t e r l y dips (McAllister, 1951; L i t t l e , 1960).Towards t h esouth, near Salmo, t h r e e t h r u s t f a u l t s have been identified.These a l s o s t r i k e p a r a l l e l t o t h e general geology and d i p t ot h e e a s t ( y l e sana Hewlett, 1959).The Carthage Group i s underlain by s c h i s t s and m g i l l i t e sof t h e Ymir Group ana by g r a n i t e s of t h e Nelson I n t r u s i v e s( i g u r e s4 and 5).The Ynir Group sediments c o n s i s t of darkgrey, green, brown and black s l a t e s , shales, a r g i l l i t e s ,q u a r t z i t e s , p h y l l i t e s and schists.Near t h e contact with t h eintrusive, t h e sediments have been metamorphoses t o anaalusitemica s c h i s t s and chlorite-nicas c h i s t s ( c k l l i s t e r ,1951;L i t t l e , 1960).These rocks have been correlated with t h e Slocan Groupsediments by McAllister (1951) and a r e therefore considered t obe T r i a s s i c i n age."L i t t l e (1960) contends, however, t h a t t h elowermost p a r t of t h i s u n i t may be as o l d as Permian and t h euppermost as young as Lower Jurassic.I

The i n t r u s i v e rocks consist of porphyritic g r a n i t e (McBUister,1951), and, throughout the area, t h e r e a r e numerous s m a l l late-stagedikes and s t l l s ranging i n composition from a p l i t e t o lamprophym(Drysdale, 1917).3The metamorphism of t h e sediments i s not intense, except nearcontacts with i n t r u s i v e s (McAllister, 1951).During t h e courseof t h i s programme, t h e metamorphic grade was observed t o be modera t e l y intense with well developed f o l i a t i o n and occasional occurrences of porphyroblasts of andalusite.Two small i n t r u s i o n s ofNelson g r a n i t e ware noted on t h e property by Black (1982), andthese i n t r u s i v e s a r e t h e most l i k e l y source of t h e metamorphism.The most common rock-type observed i n t h e survey area i s agrey t o grey-brown o r r u s t y weathering, medium t o caarse-grainedmica-quartz (-graphite-andalusite)developed f o l i a t i o n .s c h i s t with moderate t o wellAlso f a i r l y common, i s a grey weathering,grey fine-grained t h i n l y laminated quartzite.These two rockt y p e s have been grouped together as Y m i r Sediments ( i g u r e5).No outcrops of i n t r u s i v e rocks were seen by t h e w r i t e r ,although boulders and fragments of paragneiss were observed alongt h e e a s t side of l i n e 3 75S (Figure 5).This i s not surprising,as t h e i n t r u s i v e contact has been observed by several geologistsIalong t h e eastern boundary of t h e Carthage Group (Drysdale, 1917;McBllister, 1951; L i t t l e , 1960; Black, 1981) (Figure 4 ) .

One outcrop of grey-green fine-grained c h l o r i t e (?)-nicas c h i s t was noted a t 2 7 5 / 1 5 0(Figure 5).This rock e x h i b i t sa f a i r degree of kaolinization, probably due t o a l t e r a t i o n by anearby quartz vein.Drysdale (1917) reported t h a t quartz veinsi n t h e Y m i r a r e a frequently contained kaonlinite, both i n t h ew a l l rocks and i n t h e veins themselves.The probability of aquartz vein occurring nearby i s f u r t h e r enhanced by t h e presenceof a geochemical anomaly a t 2 755/1 753 (Figures 6, 7 and 8).8,VEIN SYSTEMS AND ORE MINERALIZXTIONGold, s i l v e r , lead, zinc and copper mineralization occurson t h e property i n quartz veins, stockworks ana zones of r e t i c u l a t i n g q u a r t z v e i n l e t s which p a r a l l e l t h e s t r i k e and d i p oft h e country-rock sediments,Sd,phi.de minerals i n these veinsc o n s i s t of fine-to coarse-grained disseminated p i t e , pyrrhot i t e anci s p h a l e r i t e with minor chalcopyrite and galena l lack,1981).These zones can be several f e e t thick, but a r e usuallyq u i t e narrow, i n t h e order of 0.5 t o 1 f o o t wide ( M c l l i s t e r , 1951).The main zone of quartz veining on t h e Carthage Group, asevidenced by t h e l o c a t i o n of geochemical anomalies and o l dworkings, starts a t 4 00S/0 50 and trends northeast t o t h eCarthage Claim on a bearing of approximately 025 degrees ( i g u r e5).There a r e many trenches and a d i t s i n this portion of t h e property,some or' which have dumps containing mineralized boulders.A

sample of vein material taken by t h e w r i t e r from one of thesedumps a t 1 75S/1 00E assayed 0.006 oz Au/ton and 2.37 oz g / t o n .There i s evidence of another mineralized zone on t h eproperty which s t r i k e s approximately 160 degrees and t r a v e r s e st h e X-Ray C l a i m from 3 0 0 / 2 0 0t o 1 0 0 / @ 5 0 .Geochemicalanomalies i n gold, s i l v e r , zinc, copper and, t o a l e s s e r degree,l e a d occur along t h i s zone and w i l l be discussed i n g r e a t e rd e t a i l i n a l a t e r section of -this r e p o r t (Figure 6 , 7 and 8 ) ,9.EXPLORATION APPROACHI n t h e summer 1981, Nithex Exploration Ltd. conducted aprogramme of geochemical' s o i l sampling and geological mappingover t h e Carthage Group claims.A sampling grici was cut overt h e property, consisting of a 1.5 km long base l i n e bearing 025degrees with cross l i n e s 100 metres apart.These c r o s s l i n e swere sampled a t 25 metre i n t e r v a l s and t h e samples were analysedf o r copper, lead, zinc, s i l v e r and gold ( i c h a r d s o nand Black, 1981),This s o i l sampling programme outlined several geochemicalanoiualies.The l a r g e s t of these anomalies i s located on t h eX-Ray and Carthage claims i n a northeast-southwest trending zone.Many trenches and a d i t s a r e present i n t h i s a r e a and it i s pobably t h e main zone of mineralization on t h e property a s described

I n August of 1983, a s e r i e s of d e t a i l s o i l samples weretaken i n order t o more f u l l y define t h e continuity and extentof t h i s anomaly.These samples were taken a t 25 metre i n t e r -v a l s along cross l i n e s c u t 25 metres a p a r t between t h e recorenaissance lines.A total of 85 samples were taken betweenl i n e s 1 OCS and 4 00S and between 0 5W and 2 00E (Figures 5,6 , 7 and 8).The r e s u l t s have been p l o t t e d on 1:2500 scale maps( i g u r e s6, 7 and 8).Gold and s i l v e r have been p l o t t e dtogether (Figure 6) as have lead and zinc ( i g u r e7).Copperwas plotted on a separate map ( i g u r e8).10.DISCUSSION OF RESULTSA s was mentioned befbre, most of t h e work done, t o date, ont h e property has been confined t o a zone which starts a t 4 0 0 /B50E and trends northeast t o t h e Carthage Claim.Several p i t sand a t l e a s t four a d i t s have been excavated along t h i s zoneindicating t h e probable existence of sulphide mineralization.Not surprisingly, there a r e a number of geochemical anomaliesi n t h i s area.These anomalies, detected by both t h i s y e a r ' sprogramme and t h e reconnaissance programme conducted i n 1981,a r e probably due t o naturally high metal occurrences i n t h es o i l and t o contamination from previous exploration a c t i v i t i e s .Consequently, care was taken t o minimize possible contamination

caused by sampling too close t o waste dumps and roads.High values were obtained f o r gold and zinc near t h ebase l i n e between l i n e s 2 00S and 2 50S.This anomaly l i e svery close t o a small plug of Nelson Intrusive and t h e r e a r esome mineralized quartz boulders s c a t t e r e d throughout t h e a r e awhich may account f o r t h e high metal content of t h e s o i l .There i s an a d i t a t 1 7 5 / 0 t 2 5 but, since it l i e s downhillfrom t h e anomalous samples, no conta.mination from t h e wastedump i s suspected.There i s another anomalous zone on t h e pmperty whichs t r i k e s approximately 160 degrees and t r a v e r s e s t h e X-2ay C l a i mfrom 3 00S/2 00 t o 1 00S/O 50 .Anomlously high values f o r gold and s i l v e r were detectedalong t h i s zone i n a s e r i e s of d i s c r e e t , r e l a t i v e l y discontinuousoccurrences.The geochemical r e s u l t s f o r copper and zinc suggest,however, t h a t t h i s is, i n f a c t , one continuous zone.Thesemetals, due t o t h e i r g r e a t e r mobility, b e t t e r r e f l e c t t h e l e n t i c u l a r s t r u c t u r e of t h e anomaly.It appears t h a t t h e r e may bepods of h i g h e r g r a d e mineralization along the zone which a r edetectable by gold and s i l v e r geochemistry.The lower-gradesections of t h e s t r u c t u r e a r e detectable by base-netal geoc,hemi s t r y only.

The geochemical r e s u l t s f o r l e a d do not r e f l e c t t h i sanomaly as c l e a r l y , although t h e r e i s a general trend observa b l e between l i n e s 2 W and 1 75S,The existence of a mineralized zone which caused t h egeochemical anomaly i s supported by an outcrop of kaolinizedp y r i t i f erous c h l o r i t e-nica s c h i s t a t 2 7 5 / l 5 0(Figure 5)Xaolinite was noted by Drysdale (1917) as a common ganguemineral i n veins and f a u l t s in t h e Y m i r area.The k a o l i n i t eoccurs i n both t h e veins and t h e wall-rocks.CO NCLUSIU NS--1.The d e t a i l s o i l sampling programme conducted over t h eCarthage Group Claims confirmed t h e existence of a northeastsouthwest trending geochemical anomaly located i n t h e v i c i n i t yof t h e g r i d base l i n e .The source of t h i s anomaly i s probablydue t o t h e quartz veins described by previous workers althought h e s e veins have y e t to be investigated by t h e writer,2.Another anomaly, locat3d between 3 0 0 / 2 0 0and 1 00 /0 25W, w s s detected on t h e property.The source o f t h i sanomaly i s not known,3,Both anomalies a r e open-ended and require more d e t a i lsoil-sampling, geologic mapping and,d r i l l - t a r g e t s can be defined,-x--,possibly, trenching before-

12.STATEMENT OF COSTSPre-fieldFieldAssistantVehicle.50 d a y s @ 210.90/day3.00 days 8 210.90/day3.00 days 8 I 90,00/day3.90 days 8 30.00/day 105.00630.00270.9090. 00 100.90Equipment and SuppliesReproduction and Office Costs333.75Assays12. 50Geochemical Analyses 85.90 SanplesTotal 2,842*751.COCHRAN, D. R., (1979), llProspecting Assessment P-aport onPortions of the Carthage Group and Gibralter and InkemanReveFted Crown-pant ed Mineral Claims. 'I2.COCKFIELD, W. 3., (1936) !!Lode Gold Deposits of Y m i r Nelson Area, B r i t i s h Coltrmbial', Geological Survey ofCanada Memoir 191.3.BLACK, R. G., (l981), Unp iblishedmemos and progressreports t o Nithex Exploration Ltd.4.DRYSUiLE, C. !J.,(1917), I1Ymir Mining Camp, B r i t i s hColumbiatt Geological Survey of Canada Memoir 94.5.LITTLE, H. !J., (1%0), ItNelson Map Area, West Half,Geological Survey ofBritish Columbia (82F/id1/2)Canada Memoir 308.,,",,

6.McALLISTHl, A. L., (1951), I1Ymir b p Area, B r i t i s hColumbiaM,Geological Survey of Canada Paper 51-47.MINISTRY OF MINES ANNUAL REPORTS, 190011903, 1905,1917, 1930, 1934, 1944-1750.8.RICHARDSON, P. W. and BLACK, R. G., (1982), uAssessment Report Describing t h e S o i l Geochemistry Programmeon the Carthage Claim Groupft.9.IJALKER, J. Fa, (1934), llGeology and l i n e r a l Depositsof the Salmo Map Area, British Columbia1', Geological.Survey of Canada Memoir 172.10.(1980), "A Summary of Ecploration Potentialof Claims i n t h e Y m i r Gold Campu, -Private Report t oNithex Exploration Ltd.WOLFE, R.,

l, , STATEMENT OF yUALIFICATIONSI, David W. Iiennie, hereby c e r t i f y :1. That I am a geological engineer residing a t #313505 Second S t r e e t , Nelson, B.C.-2. That I am a r e g i s t e r e d Professional Engineer i nt h e Province of B r i t i s h Columbia (1982).3. That I a m a graduate of t h e University of B r i t i s hColumbia and hold a bachelor of Applied Sciencedegree i n Geological Engineering (1979).4. That I have practiced my profession continuouslys i c egraduation.5. That I have not received d i r e c t l y o r i n d i r e c t l y ,nor do I expect t o receive, any i n t e r e s t i n t h eCarthage Property o r Nithex Exploration Ltd.6 . That I, personally, c a r r i e d o u t t h e f i e l d work andprepared t h i s r e p o r t on t h e request of NithexExploration Ltd.

GEXlCHEMICBL AIUiLYSI3 METHOD

ACME ANALYT IC4L LABORATOR IES LTD.852 East Hast i n g s Street,V a n o u v e r , 6. C.GEOCHEM I CAL ANALYSES PROCEDUREC o e rL .e a d . Z i n c a n d S i l v e rThe s o i l samples a r e p r e p a r e d b y d r y i n g t h e sampleSamples60 c, a n d s i e v i n g the sample t o m i n u s 80 mesh.w e i g h i n g 0.5 grams a r e d i g e s t e d i n hot d i l u t e a q u a r e g i a in aat-b o i l i n g w a t e r b a t h a n d d i l u t e d t o 10 ml w i t h d e m i n e r a l i z e d water.T h e e x t r a c t e d s o l u t i o n i s a n a l y z e d b y atomic a b s o r p t i o n for Cu, Pb,Zn a n d 49.GoldThe m i n u sT h e samples a r e i g n i t e d o v e r n i g h t a t 600' .80 mesh p o r t i o n i s g r o u n d i n a r i n g g r i n d e r a n d 10 grams a r ed i g e s t e d w i t h d i l u t e hot aqua r e g i a .The c l e a r s o l u t i o n i s e x t r a c t e dw i t h methyl i s o b u t y l ketone.Gold i s determined i n the m e t h y l isob u t y l ketone e x t r a c t b y atomic a b s o r p t i o n .

APPENDIX 11GEUCHENICXL ANALYSIS C E X T I F I C A T E S

ACME ANALYTICAL LABORATORIES LTD.852 E. HASTINGS, VANCOUVER B.C.PH: 253-3158TELEX :04-53124DATE RECEIVED AUG 151383DATE REPORTS MAILEDA ,500 GM SAMPLE I S DIGESTED WITH 3 !L OF 3:1:3 HCL TO HN03 TO HZ0 AT 90 DE6.C. FOR 1 HOUR.THE SAMPLE I S DILUTED TO 10 MtS WITH HATER. ELEMENTS ANALYSED BY AA : CU, PB, ZN, M.SAHPLE TYPE : SOIL - DRIED hT 0 DEG C., -80 MESH.REGIA LEACH MIBK EXTRACTION, AA ANALYSIS,--ASSAYEHr; {,' pif::) 1.1:-.:i:t.J:F::' :1',. .I.".,".,'.ji::f.!." ,".A,.,. .J b ,i, ,.i.;,2"5:; f::j.t.251/J.l, .I,, 1:::; *. ::; (1):I, ,,I,.,-,,:r.I r-.("j.,;., K:::::i.I:.1, , , l'c::":; Ci . . '75,. .,. .-. %.%. :.'.L.rD E b N TOYE, CERTIFIED B.C.I.1:;:A:.A,.4.(::.I-.FBZ h1l' l/A6PF'M1!3 I (13[35 )(:6 5Q1 1SO1.3.71 '7r-l4F:* I 1F::,F-1. .ai,, .:%LtL-. (5.:y,-,.'L.q a', 662846474:.*-"-"Q-.IiASSAYERau*f3 'f:'.J:'i 0.525. i sC?I75eLI.55L-;J5c::.I2 (2251 (1165.-,L (1) ,&.I.f3 1:j r:'".:,Ib ,.:, -,i::!Wi:) 2?i [:2 .2I.5 r.; (1) .I.5 (:I) E2 .I"2 5 S 0 .I.'i' 5 F'.,:,.".I c-.L.):, ::. "[" .'Y,&,.1;: J,.)(:\1.Ec4" .:s,. 42('j"42 . ti25--1(11. (3

AhlG S Nf,LRESOUF2C:IESPROJECT # X-RAYCUp p PBPPMZNPPMHGPPffALI*f3PB

ANG I NEL HESOLJRCESF R O J E C T # X-RAYCUFPMF I L E 83- 1 6 4 8 APBINF'PMPPMAGFPMPAGE# 3AU*F'FB

ACME ANALYTICAL LABORATORIES LTD.852 E HAST I NGS, VANCOUVER 8. C.PH: 253-3158TELEX :04-53124DATE R

765 766 767%) 767") Anniversary Date August 22, 1983 August 22, 1983 August 22, 1983 August 22, 1983 . In August of 1983, a series of detail soil samples were taken in order to more fully define the continuity and extent of this anomaly. These samples were taken at 25 metre inter- vals alo

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