PROSPECTING AND GEOCHEMICAL REPORT

ON THE

HEMATITE PROPERTY

S im i l kameen M i n i n g D i v i s i o n

B r i t i s h Co lumb ia

C la ims : HEMATITE (2077C111) FINNEGAN 1 (2194C71) FINNEGAN 2 (2195C71)

L a t i t u d e : 49'36'N. L o n g i t u d e : 120°22'W.

N.T.S. 92H/9W

Owner and O p e r a t o r : VERDSTONE GOLD CORPORATION

P.O. Box 12137 N e l s o n Square S u i t e 501-808 N e l s o n S t r e e t Vancouver , B.C. V6Z 2H2

C o n s u l t a n t : MINOREX CONSULTING LTD. 2391 B o s s e r t Avenue Kamloops, B.C. V2B 4V6 (604 ) 376-8228

G E O L O G I C A L B R A N C H A S S E S S M E N T R F p O 1 ) T

Augus t 7, 1985 J.D. B l a n c h f l o w e r , F.G.A.C. C o n s u l t i n g G e o l o g i s t

TABLE OF CONTENTS

Page No .

INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . 1

. . . . . . . . . . . . . . . . . . . . . . . . . . . SUMMARY 1

. . . . . . . . . . . . . . . . . . . . PROPERTY AND OWNERSHIP 4

. . . . . . . . . . . . . . . . . . . . . LOCATION AND ACCESS 4

PHYSIOGRAPHY . . . . . . . . . . . . . . . . . . . . . . . . . 6

HISTORY . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

GENERALGEOLOGY . . . . . . . . . . . . . . . . . . . . . . . 7

. . . . . . . . . . . . . . . . . . . 1985 EXPLORATION PROGRAM 10

. . . . . . . . . . . . . . . . . . Mineral Claim Survey 10

Additional Survey Control Grid . . . . . . . . . . . . . 11 Geochemical Survey . . . . . . . . . . . . . . . . . . . 11

Soil Sampling . . . . . . . . . . . . . . . . . . . 11 Rock Sampling . . . . . . . . . . . . . . . . . . . 12

Prospecting Program . . . . . . . . . . . . . . . . . . . 13 RESULTS OF THE 1985 EXPLORATION PROGRAM . . . . . . . . . . . 13

Mineral Claim Survey . . . . . . . . . . . . . . . . . . 13 Geochemical Survey . . . . . . . . . . . . . . . . . . . 15

Soil Sampling . . . . . . . . . . . . . . . . . . . 15 Rock Sampling . . . . . . . . . . . . . . . . . . . 16

Prospecting Program . . . . . . . . . . . . . . . . . . . 18 CONCLUSIONS . . . . . . . . . . . . . . . . . . . . . . . . . 19 RECOMMENDATIONS . . . . . . . . . . . . . . . . . . . . . . . 20 STATEMENT OF QUALIFICATIONS . . . . . . . . . . . . . . . . . 21 STATEMENT OF COSTS . . . . . . . . . . . . . . . . . . . . . . 22 BIBLIOGRAPHY . . . . . . . . . . . . . . . . . . . . . . . . . 24

APPENDICES

I . Chemex Labs Ltd.

C e r t i f i c a t e of Ana lys i s - S o i l s

11. Chemex Labs Ltd .

C e r t i f i c a t e of A n a l y s i s - Rocks

111. Kamloops Research and Assay Labora to ry L td .

Geochemical Lab Report - Rocks

I V .

v.

F i g u r e No.

1

2

3

4

5

6

A n a l y t i c a l Procedures f o r t h e

S o i l Geochemical Analyses

Sample D e s c r i p t i o n s and

A n a l y t i c a l Summaries

LIST OF ILLUSTRATIONS

L o c a t i o n Map, 1" = 6 4 m i l e s

Claim Map, 1 :50,000

Regional Geology Map, 1:250,000

P l a n of Chain and Compass Survey, 1 :5 ,000

Rock Sampling P l a n , 1:50

S o i l Geochemical P lan - Gold (p .p .b . )

and S i l v e r (p.p.m.), 1:5,000

S o i l Geochemical P lan - Copper (p.p.m.) ,

1:5,000

S o i l Geochemical P l a n - Lead (p.p.m.)

and Zinc (p.p.m.), 1:5,000

S o i l Geochemical P l a n - Compila t ion

P lan , 1:5,000

P r o s p e c t i n g P lan , 1:5,000

Page No.

2

5

8

1 4

17

I n Pocket

I n Pocket

I n Pocket

I n Pocket

I n Pocket

INTRODUCTION

Verdstone Gold Corpora t ion of S u i t e 501-808 Nelson S t r e e t ,

Vancouver, B.C. owns t h r e e con t iguous M.G.S. m i n e r a l c l a i m s s i t u a t e d

i n t h e Similkameen Mining D i v i s i o n , s o u t h c e n t r a l B r i t i s h Columbia.

T h i s r e p o r t , prepared a t t h e r e q u e s t of t h e d i r e c t o r s of Verdstone

Gold C o r p o r a t i o n , d e s c r i b e s t h e 1985 e x p l o r a t i o n program which

i n c l u d e d : a c h a i n and compass c l a i m survey , t h e e s t a b l i s h m e n t of

a d d i t i o n a l survey c o n t r o l g r i d , s o i l and rock geochemical su rvey ing ,

and p r o s p e c t i n g .

The purpose of t h e 1985 e x p l o r a t i o n program was t o d e f i n e

t h e s o u r c e ( s ) of a s o i l geochemical anomaly d i s c o v e r e d i n October ,

1984. T h i s assessment work, i n c l u d i n g r e p o r t p r e p a r a t i o n , was

c a r r i e d o u t between May 28 th and August 7 t h , 1985.

SUMMARY

The HEMATITE p r o p e r t y i s comprised of t h r e e con t iguous

M.G.S. m i n e r a l c l a ims (46 u n i t s ) , a l l whol ly owned by Verdstone Gold

Corpora t ion . I t i s s i t u a t e d approximate ly 17.5 k i l o m e t r e s n o r t h e a s t

of P r i n c e t o n , B.C. w i t h i n t h e Similkameen Mining D i v i s i o n a t

geographic c o o r d i n a t e s 4g036'N. l a t i t u d e by 120°22'W. l o n g i t u d e

(N.T.S. 92H/9W.).

Veh icu la r a c c e s s t o t h e p r o p e r t y i s p o s s i b l e v i a t h e Osprey

Lake g r a v e l road which l e a d s nor theas tward from P r i n c e t o n t o w i t h i n

1 .6 k i l o m e t r e s of t h e c la im group. A r e c e n t l y c o n s t r u c t e d g r a v e l

l o g g i n g road p rov ides s e a s o n a l a c c e s s from t h e Osprey Lake road

nor theas tward t o t h e s o u t h c e n t r a l p o r t i o n of t h e p r o p e r t y .

The c l a i m group c o v e r s t h e n o r t h w e s t e r l y d r a i n i n g Finnegan

Creek v a l l e y between e l e v a t i o n s of 2,000 f e e t (915 m.) t o 4,000 f e e t

(1 ,220 m.) A.M.S.L. Most of t h e p r o p e r t y i s w e l l f o r e s t e d w i t h p i n e ,

f i r and a l d e r , and t h e r e i s a p a u c i t y of o u t c r o p due t o a t h i c k and

e x t e n s i v e cover of g l a c i a l a l luv ium.

Th i s a r e a was f i r s t exp lo red i n 1927 when g o l d , s i l v e r ,

l e a d and z i n c m i n e r a l i z a t i o n was r e p o r t e d l y d i s c o v e r e d n e a r Finnegan

r - 2 - J

12Sm 120.

R C V C L S T O U C

.- - U. S . A .

MINOREX CONSULTING L T D . -- %GEOLOGICAL C o N s u L T A N T s , X A M L o o P s , c

&

V E R D S T O N E G O L D CORPORATION V A N C O U V E R , B R l T l S H COLUMBIA

L O C A T I O N M A P

HEMATITE PROPERTY SlMlLKAMEEN MINING DIVISION,B.C

Date I A u g . , 1985

D u n b y * P . 3 . M .

S c 9 t e I ' = 64 YoI*.

D u g n o . I

Creek. The d i s c o v e r y was c a l l e d t h e "Hemati te" showing

(B.C.M.M.A.R., 1928) . L a t e r i n 1971, E. L ivgard s u p e r v i s e d a base-

m e t a l e x p l o r a t i o n program on beha l f o f Brewster Lake Mines who t h e n

owned t h e FK c la ims cover ing t h e Hemat i te showing. L a s t y e a r , t h e

w r i t e r s u p e r v i s e d a s o i l geochemical s u r v e y of t h e HEMATITE c l a i m

on b e h a l f of Verdstone Gold C o r p o r a t i o n . R e s u l t s of t h a t su rvey ing

i d e n t i f i e d a l i n e a r and c o i n c i d e n t g o l d , copper , l e a d and z i n c

geochemical anomaly i n t h e v i c i n i t y of t h e known showing.

The c l a i m group i s u n d e r l a i n by g r a n i t i c r o c k s of t h e

Middle J u r a s s i c Pennask b a t h o l i t h . These r o c k s have been i n t r u d e d

by s e v e r a l v a r i e t i e s of dykes . S e v e r a l d i s t i n c t f r a c t u r e sys tems

e x i s t l o c a l l y i n c l u d i n g t h e one r e f l e c t e d by t h e Finnegan Creek

v a l l e y . Most of t h e i n t r u s i v e r o c k s a r e q u i t e f r e s h , e x c e p t i n t h e

v i c i n i t y of major s h e a r i n g where t h e y have been s e r i c i t i z e d and

h e m a t i t i z e d . Hemati te and l o c a l m a l a c h i t e m i n e r a l i z a t i o n i s s t r u c -

t u r a l l y c o n t r o l l e d nea r and w i t h i n zones of i n t e n s e f r a c t u r i n g .

The 1985 e x p l o r a t i o n program i n c l u d e d : a c h a i n and compass

su rvey of t h e Hemati te m i n e r a l c l a i m ' s l e g a l c o r n e r p o s t ; e s t a b l i s h -

ment of 2 l i n e - k i l o m e t r e s o f f i l l - i n c o n t r o l g r i d ; c o l l e c t i o n and

a n a l y s i s of 8 2 "B" ho r i zon s o i l geochemical samples f o r g o l d , s i l v e r ,

copper , l e a d and z i n c ; p r o s p e c t i n g t h e n o r t h w e s t e r n p o r t i o n of t h e

su rvey g r i d and i n t h e v i c i n i t y of t h e Hemat i te showing; c o l l e c t i o n

and a n a l y s i s of 8 rock geochemical samples f o r g o l d , s i l v e r , copper ,

l e a d and z i n c ; and r e p o r t and map p r e p a r a t i o n .

The r e s u l t s of t h e e x p l o r a t i o n work were n e g a t i v e . F ive

rock samples t h a t were c o l l e c t e d a t t h e Hemat i te showing r e t u r n e d

n e g l i g i b l e geochemical r e s u l t s . Two r o c k samples t h a t were c o l l e c t e d

a t a newly d i scovered zone of f r a c t u r i n g , a l t e r a t i o n and h e m a t i t i z -

a t i o n were a l s o b a r r e n .

No s i g n i f i c a n t m i n e r a l i z a t i o n worthy of c o n t i n u e d e v a l u a t i o n

was d i s c o v e r e d . No f u r t h e r e x p l o r a t i o n is w a r r a n t e d .

PROPERTY AND OWNERSHIP

The s u b j e c t p r o p e r t y i s comprised of t h r e e con t iguous

M.G.S. minera l c l a i m s , w i t h t h e FINNEGAN 1 and 2 c l a i m s s h a r i n g a

common Legal Corner Post (L.C.P.). The f o l l o w i n g t a b l e g i v e s a l l

p e r t i n e n t c l a i m d a t a .

Claim Name Record No. U n i t s Record Date -- R e g i s t e r e d Owner

HEMATITE 2077(11) 6 Nov. 24/83 Verdstone Gold Corp.

FINNEGAN 1 2194(7) 2 0 J u l y 24/84 Verdstone Gold Corp.

FINNEGAN 2 2195(7) 20 J u l y 24/84 Verdstone Gold Corp.

Due t o t h e l o c a t i o n of t h e FINNEGAN 1 and 2 c l a i m s e a s t

of p r e - e x i s t i n g c l a i m s , t h e HEMATITE Group, t o t a l l i n g 46 u n i t s ,

c o v e r s a v a l i d a r e a of 43 u n i t s . The c o n f i g u r a t i o n of t h e c l a i m s

and t h e i r r e l a t i o n s h i p t o a d j o i n i n g and p r e - e x i s t i n g c l a i m s i s shown

i n F i g u r e 2 accompanying t h i s r e p o r t . F i g u r e 2 is a r e p r o d u c t i o n

i n p a r t of t h e B.C. Min i s t ry of Mines c l a i m map 92H/9E.

The s u b j e c t c l a i m s were grouped a s t h e "HEMATITE" Group"

on September 25, 1984 (Not ice t o Grouping No. 1640, MR 217596 E) .

LOCATION AND ACCESS

The c l a i m group i s s i t u a t e d 1.0 k i l o m e t r e s o u t h e a s t of

t h e j u n c t i o n of Finnegan and Hayes Creeks , o r approx imate ly 17.5

k i l o m e t r e s n o r t h e a s t of t h e town of P r i n c e t o n , B.C. I t s geographic

c o o r d i n a t e s a r e 4g036'N. l a t i t u d e by 120°22'W. l o n g i t u d e , N.T.S.

92H/9W.

Veh icu la r a c c e s s t o t h e c la ims i s p o s s i b l e v i a t h e Osprey

Lake road nor theas tward from P r i n c e t o n , a d i s t a n c e of 23 k i l o m e t r e s .

Fur thermore , t h e r e i s a r e c e n t l y c o n s t r u c t e d g r a v e l l o g g i n g road

which p rov ides f a c i l e a c c e s s t o t h e s o u t h e r n p o r t i o n of t h e p r o p e r t y

( s e e F i g u r e s 6 t o 103.

2

T o accompany r e p o r t by J.D.Blanchflower

% MINOREX CONSULTING LTD. GEOLOGICAL C O N S U L T A N T S , KAMLOOPS, B.C.

VERDSTONE GOLD CORPORATION V A N C O U V E R , B R I T I S H COLUMBIA

CLAIM MAP

HEMATITE PROPERTY SIMILKAMEEN MINING DIVISION, B.C.

Drawn by: P. J. M.

Data: August, 1 9 8 5 1 Scale: l : 5 0 , 0 0 0

Figure No-: 2

PHYSIOGRAPHY

The c la ims extend northward a c r o s s t h e n o r t h w e s t e r l y

d r a i n i n g Finnegan Creek v a l l e y , on t h e e a s t e r n s i d e of Hayes Creek.

E l e v a t i o n s range from 2,000 f e e t (915 m.) a t t h e nor th -

wes te rn boundary t o 4,000 f e e t (1 ,220 m.) A.M.S.L. a long t h e s o u t h e r n

boundary of t h e p r o p e r t y .

The c l i m a t e i s t y p i c a l of t h e s o u t h c e n t r a l I n t e r i o r r e g i o n

w i t h t empera tu res r a n g i n g between -20°C. and +30°C. P r e c i p i t a t i o n

u s u a l l y t o t a l s 400 mm. a n n u a l l y and s n o w f a l l s a r e g e n e r a l l y 200 t o

300 cm. The e x p l o r a t i o n season may ex tend from May t o November.

The a r e a i s w e l l f o r e s t e d w i t h p i n e , f i r , a l d e r and

dec iduous undergrowth.

There i s a p a u c i t y of o u t c r o p , e x c e p t w i t h i n t h e immediate

Finnegan Creek canyon. Much of t h e a r e a i s covered by e x t e n s i v e

g l a c i a l a l luv ium.

H I STORY

According t o Peto (1984) t h e Hemat i te c l a i m c o v e r s a known

m i n e r a l occur rence f i r s t r e p o r t e d i n t h e B.C. M i n i s t e r of Mines

Annual Report (1928). Th i s r e p o r t i s a s fo l lows :

"This c l a i m , owned by W.G. Wilkins e t a l . , of

P e n t i c t o n and P r i n c e t o n , i s s i t u a t e d about 1 m i l e up

Finnegan c r e e k , which f lows i n t o Hayes c r e e k abou t 6 m i l e s

from J e l l i c o e S id ing on t h e K e t t l e Va l l ey . On t h e west

s i d e of t h e c r e e k a n o u t c r o p of g r a n i t e composed

of c o a r s e l y c r y s t a l l i n e f e l d s p a r s h a s been impregnated

w i t h h e m a t i t e over a n a r e a roughly 30 by 40 f e e t . I n t h e

more h i g h l y m i n e r a l i z e d f r a c t u r e s c l o s e t o t h e c r e e k

s e v e r a l samples have been t a k e n , and a s s a y r e t u r n s

c o n t a i n e d g o l d , s i l v e r , l e a d , and z i n c i n s u f f i c i e n t

amounts t h a t seemed t o j u s t i f y deeper e x p l o r a t i o n . Recent

a d v i c e from t h e owners s t a t e s t h a t b e t t e r o r e h a s been

found. The l o c a t i o n of t h e c l a i m , about a m i l e from t h e

road and 2 m i l e s from t h e r a i l w a y , i s i d e a l , and i f a

q u a n t i t y of low-grade o r e i s found t h e r e i s p l e n t y of wa te r

i n Hayes c r e e k f o r use i n a m i l l . "

I n 1971 E. L ivgard , P. Eng. s u p e r v i s e d a n e x p l o r a t i o n

program being conducted over t h e "Hematite" o c c u r r e n c e f o r Brewster

Lake Mines Ltd . T h i s program inc luded : g e o l o g i c a l mapping, photo

i n t e r p r e t a t i o n , magnetic and s o i l geochemical ( c o p p e r , molybdenum)

su rveys . The r e s u l t s of t h i s work, a s r e p o r t e d by Pe to (1984) ,

formed t h e b a s i s of t h e u l t i m a t e a c q u i s i t i o n and e x p l o r a t i o n of t h e

p r o p e r t y by Verdstone Gold C o r p o r a t i o n .

During October , 1984 t h e w r i t e r s u p e r v i s e d a s o i l

geochemical survey of t h e s u b j e c t p r o p e r t y on beha l f of t h e p r e s e n t

owner. R e s u l t s of t h a t e x p l o r a t i o n work i d e n t i f i e d one c o i n c i d e n t

g o l d , copper , l e a d and z i n c anomaly i n t h e r e p o r t e d v i c i n i t y of t h e

o r i g i n a l "Hematite" showing. The w r i t e r recommended f u r t h e r explo-

r a t i o n t o d e f i n e and e v a l u a t e t h e geochemical t a r g e t .

GENERAL GEOLOGY

T h i s p r o p e r t y i s s i t u a t e d r e g i o n a l l y w i t h i n t h e s o u t h e r n

Intermontane Be l t of t h e Canadian C o r d i l l e r a n Orogen. Most of t h e

r e g i o n i s u n d e r l a i n by v o l c a n i c and sed imenta ry r o c k s r a n g i n g i n

age from La te Pa leozo ic t o E a r l y T e r t i a r y . Much of t h e s t r a t a have

been f o l d e d , f a u l t e d , and metamorphosed p r i o r t o and d u r i n g t h e

emplacement of Mesozoic i n t r u s i o n s . See F i g u r e 3 f o r t h e r e g i o n a l

geology of t h e a r e a .

The o l d e s t r o c k s of t h e r e g i o n inc lude : c h e r t y and s l a t y

a r g i l l i t e , a n d e s i t e , l i m e s t o n e , q u a r t z mica s c h i s t , and g n e i s s

be long ing t o t h e Bradshaw, Independence, Shoemaker and Old Tom

Format ions of Carbon i fe rous and Permian age.

I n Upper T r i a s s i c (Karn ian) t i m e , i s l a n d - a r c marine

sed iments and v o l c a n i c s of t h e Nicola Group were d e p o s i t e d . These

After H . M . A . R i c e , 1944 C.G.S. Memoir 243

MINOREX CONSULTING LTD. GEOLOGICAL C O N S U L T A N T S , KAMLOOPS, B.C.

VERDSTONE GOLD CORPORATION

I I REGIONAL GEOLOGY MAP I HEMATITE PROPERTY

SIMILKAMEEN MINING DIVISION. 8 . C .

Drown by: f? J. M. Scale: I: 250,000 I T O accompany r e p o r t by J.D.Blanchflower 1 Date: August, 1985 I Figure No.: 3 I

L E G E N D

TERTIARY MIOCENE o r LATER 1 9 Val ley b a s a l t : v e s i c u l a r , v a r i c o l o u r e d b a s a l t 1 8 P l a t e a u b a s a l t : amygdaloidal , brown b a s a l t EOCENE

PRINCETON GROUP 1 6 Mainly s h a l e , sands tone , and conglomerate : c o a l 17 Var icoloured a n d e s i t e and b a s a l t

CRETACEOUS o r TERTIARY UPPER CRETACEOUS o r LATER 1 4 OTTER INTRUSIONS: p i n k and g r e y g r a n i t e and g r a n o d i o r i t e 1 5 LIGHTNING CREEK INTRUSIONS: g r e y q u a r t z d i o r i t e

CRETACEOUS LOWER CRETACEOUS

KINGSVALE GROUP 12a Mainly v o l c a n i c b r e c c i a 12b Mainly a n d e s i t e and b a s a l t porphyry 1 3 Andesi te and b a s a l t porphyry and v o l c a n i c b r e c c i a

PASAYTEN GROUP 11 Mainly g r i t and s h a l e l l a Mainly purp le l a v a , t u f f , and b r e c c i a

SPENCES BRIDGE GROUP 1 0 Andesi te and b a s a l t f l o w s and b r e c c i a s

JURASSIC ( ? ) and CRETACEOUS UPPER JURASSIC ( ? ) and LOWER CRETACEOUS

DEWDNEY CREEK GROUP 9 T u f f , v o l c a n i c b r e c c i a , g r i t , a r g i l l i t e 9a Mainly conglomerate

TRIASSIC o r LATER 8 COPPER MOUNTAIN INTRUSIONS: syenogabbro, a u g i t e

d i o r i t e , pegmat i te COAST INTRUSIONS

5 Grey, s l i g h t l y g n e i s s i c g r a n o d i o r i t e 6 Mainly r e d d i s h , c o a r s e - g r a i n e d , s i l i c e o u s g r a n i t e and g r a n o d i o r i t e 7 L igh t co loured g r a n o d i o r i t e , q u a r t z d i o r i t e , and gabbro 4 P e r i d o t i t e , p y r o x e n i t e , gabbro

TRIASSIC UPPER TRIASSIC

NICOLA GROUP 3 Varicoloured l a v a ; a r g i l l i t e , t u f f , l i m e s t o n e ; c h l o r i t e and

s e r i c i t e s c h i s t

CARBONIFEROUS o r LATER 2 BRADSHAW, INDEPENDENCE, SHOEMAKER, and OLD TOM FORMATIONS:

Cher ty and s l a t y a r g i l l i t e , g r e e n a n d e s i t e , l imes tone ; quartz-mica s c h i s t and g n e i s s

HOZAMEEN GROUP 1 C h e r t , g r e e n a n d e s i t e , l i m e s t o n e

A f t e r H.M.A. Rice (1946) , G.S.C. Memoir 243

s t r a t a were subsequent ly f o l d e d and f a u l t e d ; r e s u l t i n g i n t h e

development of a s e r i e s of n o r t h e r l y t r e n d i n g f o l d s . Major b lock

f a u l t i n g preceded t h e emplacements of t h e La te T r i a s s i c Copper

Mountain and Middle J u r a s s i c Pennask b a t h o l i t h s .

During Cretaceous t ime non-marine sediments and v o l c a n i c s

of t h e Spences Bridge, Pasayten and Kingsvale Groups were d e p o s i t e d

d u r i n g s u c c e s s i v e p e r i o d s of u p l i f t , volcanism and e r o s i o n . Calc-

a l k a l i n e i n t r u s i o n s of t h e La te Cre taceous L igh tn ing Creek and

Cre taceous o r T e r t i a r y O t t e r s t o c k s were emplaced d u r i n g L a t e

Mesozoic t ec ton i sm.

The P r i n c e t o n Group comprises s h a l e , sands tone , conglom-

e r a t e , c o a l , and a n d e s i t e t o b a s a l t i c v o l c a n i c s . T h i s group was

d e p o s i t e d i n c o n t i n e n t a l b a s i n s d u r i n g Eocene t ime , p r i o r t o t h e

e x t r u s i o n of Miocene p l a t e a u b a s a l t s .

1985 EXPLORATION PROGRAM

A Stage I A e x p l o r a t i o n program t o d e f i n e and e v a l u a t e t h e

r e s u l t s of t h e 1984 geochemical survey was under taken between May

2 8 t h and June 27th . The program was c a r r i e d ou t on beha l f of t h e

company by Minorex Consul t ing Ltd . pe rsonne l . The w r i t e r surveyed

t h e l e g a l c o r n e r pos t of t h e HEMATITE c l a i m , p rospec ted t h e a r e a

of t h e 1984 geochemical anomaly and c o l l e c t e d t h e rock geochemical

samples. Messrs. K. Kaye and T. Robinson, two exper ienced g e o l o g i c a l

/geochemical a s s i s t a n t s , e s t a b l i s h e d t h e a d d i t i o n a l su rvey c o n t r o l

g r i d , c o l l e c t e d t h e s o i l geochemical samples and a i d e d t h e w r i t e r

w i t h h i s d u t i e s . A Statement of Q u a l i f i c a t i o n s f o r t h e w r i t e r

accompanies t h i s r e p o r t .

Mineral Claim Survey

When p l o t t i n g and e v a l u a t i n g t h e 1984 geochemical r e s u l t s

t h e w r i t e r noted t h a t t h e most i n t e r e s t i n g g o l d and base-metal v a l u e s

were a p p a r e n t l y s i t u a t e d near t h e unsurveyed boundary of t h e

p r o p e r t y . Thus, i t was recommended i n t h e summary r e p o r t t h a t t h e

company should survey t h e l e g a l c o r n e r p o s t of t h e HEMATITE c l a i m

and e s t a b l i s h i t s p o s i t i o n r e l a t i v e t o t h e a r e a of e x p l o r a t i o n

i n t e r e s t .

A f t e r t h e l e g a l c o r n e r pos t (L.C.P.) was i d e n t i f i e d on

t h e sou thwes te rn bank of Finnegan Creek a c h a i n and compass su rvey

was c a r r i e d o u t t o e s t a b l i s h i t s p o s i t i o n r e l a t i v e t o t h e conf luence

of Finnegan and Hayes Creeks . L a t e r , t h e l e g a l c o r n e r p o s t was

surveyed t o t h e Hematite showing and t h e e s t a b l i s h e d c o n t r o l g r i d .

See F i g u r e s 4 and 9 f o r t h e r e s u l t s of t h i s su rvey ing .

A d d i t i o n a l Survey Cont ro l Grid

S ince t h e 1984 geochemical samples were c o l l e c t e d from

g r i d l i n e s 200 met res a p a r t i t was n e c e s s a r y t o e s t a b l i s h f o u r 500-

metre g r i d l i n e s over t h e s o i l geochemical t a r g e t a r e a p r i o r t o

d e t a i l e d sampling. These l i n e s were b l a z e d and f l a g g e d a t g r i d

c o o r d i n a t e s 99, 101, 103 and 105 N. from 95 t o 100 E. and marked w i t h

t y v e k l a b e l s a t 25-metre i n t e r v a l s . I n t o t a l , 2 k i l o m e t r e s of

a d d i t i o n a l c o n t r o l g r i d were e s t a b l i s h e d . See F i g u r e s 6 t o 1 0 f o r

t h e l o c a t i o n s of t h e s e l i n e s .

Geochemical Survey

S o i l Sampling

S o i l geochemical samples of t h e "B" s o i l h o r i z o n were c o l -

l e c t e d u s i n g a g rub hoe or mat tock. Survey n o t e s of t h e sample

c h a r a c t e r ( i . e . a c t i v e , d r y , o r swamp); t e x t u r e ( i . e . c l a y , s i l t ,

sand, o r g a n i c , o r g r a v e l ) ; o r i g i n ( i . e . r e s i d u a l , c o l l u v i a l ,

a l l u v i a l , o r g l a c i a l ) ; hor izon ; dep th ; c o l o u r ; and l o c a t i o n were

made a t each sample s t a t i o n . From t h e s e n o t e s , t h e s o i l samples

c o n s i s t e d dominant ly of a m i x t u r e of s i l t , c l a y and sand from t h e

c o l l u v i a l and g l a c i a l overburden. The "B" s o i l h o r i z o n was u s u a l l y

sampled 10 t o 20 cm. beneath t h e s u r f a c e t o minimize o r g a n i c c o n t e n t s .

The samples were c o l l e c t e d by Messrs. K. Kaye and

T. Robinson, employed by Minorex Consu l t ing Ltd . A t o t a l of 82 s o i l

samples were c o l l e c t e d over a three-man day p e r i o d .

A l l s o i l samples were p laced i n k r a f t paper enve lopes ,

f i e l d d r i e d , and d e l i v e r e d t o Chemex Labs L t d . i n Vancouver, B.C.

There t h e samples were d r i e d a t 60°C., s i e v e d t o -80 mesh and

ana lysed by atomic a b s o r p t i o n s p e c t r o p h o t o m e t r i c methods under t h e

s u p e r v i s i o n of p r o f e s s i o n a l a s s a y e r s . A l l s o i l samples were ana lysed

f o r go ld (p .p .b . ) , s i l v e r (p.p.m. ) , copper (p.p.m. ) , l e a d (p.p.m. ) and

z i n c (p.p.m.) .

The C e r t i f i c a t e of A n a l y s i s accompanies t h i s r e p o r t a s

Appendix I. Appendix I V documents t h e a n a l y t i c a l p rocedures and

a l l a n a l y t i c a l r e s u l t s a r e p l o t t e d on F i g u r e s 6 t o 9.

Rock Sampling

Eight rock geochemical samples were c o l l e c t e d d u r i n g t h e

program; f i v e of which were c o l l e c t e d a t t h e t r e n c h of t h e o r i g i n a l

Hematite showing. Three o t h e r samples were c o l l e c t e d from i n t e r e s t -

i n g g e o l o g i c a l f e a t u r e s dur ing t h e p r o s p e c t i n g program.

The samples 85-14-1 t o 6 were logged, bagged and d e l i v e r e d

t o Chemex Labs Ltd . i n Vancouver, B.C. The o t h e r two samples

(85-14-7 and 8 ) t h a t were c o l l e c t e d l a t e r i n t h e program were logged ,

bagged and d e l i v e r e d t o Kamloops Research and Assay Labora to ry Ltd .

i n Kamloops, B . C . A t bo th f a c i l i t i e s t h e r e s p e c t i v e samples were

c rushed t o -80 mesh and ana lysed by atomic a b s o r p t i o n s p e c t r o p h o t o -

m e t r i c methods under t h e s u p e r v i s i o n of p r o f e s s i o n a l a s s a y e r s . A l l

rock geochemical samples were ana lysed f o r go ld (p .p .b . ) , s i l v e r

(p.p.m. ) , copper (p.p.m.), l e a d (p.p.m.) and z i n c (p.p.m. ).

The C e r t i f i c a t e of A n a l y s i s and Geochemical Lab Report

accompanies t h i s r e p o r t a s Appendix I1 and 111. The a n a l y t i c a l

r e s u l t s have been p l o t t e d on F i g u r e s 5 and 9 , and Appendix I V c o n t a i n s

d e t a i l e d sample d e s c r i p t i o n s and a n a l y t i c a l summaries.

P r o s p e c t i n g Program

I t was o r i g i n a l l y t h e i n t e n t of t h i s y e a r ' s work t o

e v a l u a t e t h e 1984 geochemical r e s u l t s w i t h d e t a i l e d s o i l geochemical

and g e o p h y s i c a l su rvey ing fo l lowed by hand t r e n c h i n g and sampl ing.

However, a f t e r a p r e l i m i n a r y r e c o n n a i s s a n c e of t h e a r e a of i n t e r e s t

i t became a p p a r e n t t h a t t h e r e was s u f f i c i e n t o u t c r o p i n t h e Finnegan

Creek v a l l e y t o u t i l i z e p r o s p e c t i n g a s a n e f f e c t i v e a s sessment method.

Thus, ove r a f o u r man-day p e r i o d t h e w r i t e r p r o s p e c t e d t h e n o r t h -

w e s t e r n p o r t i o n of t h e g r i d a r e a , i n t h e v i c i n i t y of t h e Hemat i te

showing and from t h e s o u t h e r n a c c e s s road t o t h e Finnegan

Creek v a l l e y .

The r e s u l t s of t h i s work a r e shown on F i g u r e 10. The

a n a l y t i c a l r e s u l t s of t h e rock geochemical samples t h a t were c o l l e c t e d

w h i l e p r o s p e c t i n g have been p l o t t e d and d e s c r i b e d on F i g u r e 9 and

Appendix V , r e s p e c t i v e l y .

RESULTS OF THE 1985 EXPLORATION PROGRAM

The r e s u l t s of t h i s l a t e s t e x p l o r a t i o n work a r e no t

encourag ing , d e s p i t e having d i s c o v e r e d a new zone of m i n e r a l i z a t i o n

i n a d d i t i o n t o t h e o r i g i n a l Hemat i te showing.

Minera l Claim Survey

It was e s t a b l i s h e d by a c h a i n and compass su rvey t h a t t h e

l e g a l c o r n e r p o s t of t h e HEMATITE m i n e r a l c l a i m i s s i t u a t e d 842 metres

a t a n az imuth of 130" from t h e c o n f l u e n c e of Hayes and Finnegan Creeks

( s e e F i g u r e 4 ) .

A f t e r t h e o r i g i n a l Hemat i te showing and t r e n c h were l o c a t e d

25 m e t r e s s o u t h of Finnegan Creek, s loughed i n and overgrown w i t h

a l d e r , t h e w r i t e r surveyed t h e i r p o s i t i o n t o t h e l e g a l c o r n e r p o s t

and l a t e r t o t h e e s t a b l i s h e d c o n t r o l g r i d . The t r e n c h i s 214 m e t r e s

a t a n az imuth of 136" from t h e l e g a l c o r n e r p o s t , o r 160 metres

i

0 0 3 O / 3 5 m

053O/12 9 8 m

0 L C P H E M A T I T E M I N E R A L C L A I M

( 2 0 7 7 )

A Azimuth, degrees

2 7 4 O

survey station Distance, metres

- SCALE - 1: 5 , 0 0 0

5-0 m e t r e s

To accompany repor t by J.D.Blanchf lower

MINOREX CONSULTING LTD. GEOLOGICAL CONSULTANTS, K A M LOOPS, B . C.

VERDSTONE G O L D CORPORATION V A N C O U V E R , B R I T I S H COLUMBIA

PLAN OF CHAIN AND COMPASS SURVEY OF T H E H E M A T I T E L.C.P.

H EMATITE PROPERTY S l M l L K A M E E N M I N I N G DIVISION, B.C.

Drawn by: P. J. M.

Date: Aug. ,1985

Scale: 1: 5 , 0 0 0

Figure NO. * 4

a t an azimuth of 274" from g r i d c o o r d i n a t e 102N. by 195E. ( s e e F igure

9 ) . Thus, i t i s obvious t h a t t h e e s t a b l i s h e d c o n t r o l g r i d does no t

cover t h e o r i g i n a l showing. T h i s e r r o r i s due t o t h e f a c t t h a t t h e

f i e l d pe rsonne l l a s t yea r were unable t o l o c a t e t h e ve ry i n d i s t i n c t

t r e n c h .

Geochemical Survey

S o i l Geochemical Sampling

F igures 6 t o 8 accompanying t h i s r e p o r t a r e p l o t s of t h e

g o l d , copper , l e a d and z i n c v a l u e s o b t a i n e d from s o i l samples

c o l l e c t e d dur ing t h e 1984 and 1985 s o i l geochemical su rveys . A p l o t

of t h e s i l v e r geochemical r e s u l t s i s not p r e s e n t e d on F i g u r e 6 because

t h e a n a l y t i c a l r e s u l t s r ece ived l a s t y e a r from Kamloops Research

and Assay Laboratory Ltd . and t h i s y e a r from Chemex Labs L td . show

t h a t c o n s i s t e n t l y low s i l v e r geochemical v a l u e s a r e p r e s e n t .

I n 1984, t h e s o i l geochemical r e s u l t s were s u b j e c t e d t o

s t a n d a r d s t a t i s t i c a l c a l c u l a t i o n s t o de te rmine mean, t h r e s h o l d and

anomalous l e v e l s f o r each ana lysed element i n t h e s o i l . The 1985

s o i l geochemical r e s u l t s have been combined w i t h t h e p rev ious r e s u l t s

and t h e v a l u e s have been contoured a t i n t e r v a l s noted on each

i n d i v i d u a l p lan . I n a d d i t i o n , t h e g e o s t a t i s t i c a l r e s u l t s have been

p l o t t e d f o r each e lement .

A summary of t h e g e o s t a t i s t i c a l r e s u l t s i s a s fo l lows :

Element P o s s i b l y Anomalous D e f i n i t e l y Anomalous

Gold (p .p .b . ) 34.1 t o 50.0 > 50.0

Copper (p.p.m.) 41.9 t o 58.9 > 58.9

Lead (p.p.m.) 8 .2 t o 10.0 > 10.0

Zinc (p.p.m.) 66.2 t o 83.0 > 83 .O

From t h e above, a l l p o s s i b l y ( t h r e s h o l d t o d e f i n i t e l y

anomalous v a l u e s ) and d e f i n i t e l y anomalous sample s i t e s were iden-

t i f i e d and a compi la t ion p l a n was p l o t t e d a s F igure 9. R e s u l t s

of t h e 1985 f i l l - i n geochemical su rvey appear t o c o n f i r m t h e 1984

r e s u l t s . I t i s , however, i n t e r e s t i n g t o n o t e t h a t t h e 1985 r e s u l t s

do i d e n t i f y s p e c i f i c nor th-south zones of s h e a r i n g , a l t e r a t i o n and

h e r n a t i t i z a t i o n . These zones , from 101N. t o 105N. by 96+75E. and

from 103 t o 105N. by 95+50E., were l a t e r p rospec ted and sampled a t

t h e w r i t e r ' s d i s c r e t i o n .

Rock Sampling

As p r e v i o u s l y mentioned, e i g h t r o c k geochemical samples

were c o l l e c t e d from t h e fo l lowing s i t e s :

1 ) Samples 84-16-1, 2 , 4, 5 and 6 were c o l l e c t e d a s c h i p samples

from t h e o l d t r e n c h a t t h e Hemat i te showing ( s e e F i g u r e 5 ) .

2 ) Sample 84-16-3 was c o l l e c t e d from a d i s c o n t i n u o u s w h i t e q u a r t z

v e i n d i s c o v e r e d 145 met res a t a n az imuth of 283" from g r i d

c o o r d i n a t e s 103N. by 95E. ( i . e . u l t i m a t e g r i d c o o r d i n a t e s

103+30N. by 93+60E.). See F i g u r e s 9 and 10.

3 ) Samples 84-16-7 and 8 were c o l l e c t e d from a zone of s h e a r i n g , l

s e r i c i t i z a t i o n and h e m a t i z a t i o n a t g r i d c o o r d i n a t e s 102+20

t o 102+30N. by 96+65E. See F i g u r e s 9 and 1 0 .

From t h e a n a l y t i c a l r e s u l t s i t i s a p p a r e n t t h a t none of

t h e samples con ta ined s i g n i f i c a n t p rec ious - o r base-metal v a l u e s

( s e e Appendices 11, I11 and V). Although t h e s e r e s u l t s a r e o b v i o u s l y

d i s a p p o i n t i n g , i t i s i n t e r e s t i n g t o n o t e t h a t t h e l i t h o g e o c h e m i c a l

v a l u e s a r e q u i t e s i m i l a r i n magnitude t o t h e s o i l geochemical r e s u l t s .

T h i s would sugges t t h a t t h e s o i l geochemical r e s u l t s p robab ly r e f l e c t

q u i t e c l o s e l y t h e bedrock geochemis t ry , a t l e a s t i n a r e a s of h i g h e r

r e l i e f and c o l l u v i a l overburden.

HEMATITE SHOWING

Medium - grained pran~te - moderately fractured with 13,3, 8516 -4;

fracture - controlled ser~clt izat ion 71 L10,0.2,31,8,23

and hemat l t~zat ion

- S C A L E - 1:50

.5 2.0 metres

- LEGEND-

8516-1 LIO, 0.1,13,3,71 Chip sample: Sample No., Au.p.p.m., - Ag. p.p.m., Cu.p.p.m.,Pb. p.p.m.

Zn . p.p.m. ROCK SAMPLING P L A N

8516- 4 ~ ~ 1 0 , Grab sample: Sample No.: Au. p.p.b., 0.2 ,31 .8 ,23 Ag. p.p.m., Cu.p.p.m., Pb. p.p.m.,

Zn. p.p.m. HEMATITE PROPERTY

--r Joints

Shear zone

Prospec t ing Program

The w r i t e r prospected north-northwester ly from t h e o l d

t e s t p i t s a t g r i d coo rd ina t e s 93+25N. by 99+60E. and 95+90N. by

100+25E. t o t h e Hematite showing wi th negat ive r e s u l t s . Minor

malachi te mine ra l i za t ion had been r epor t ed by E. Livgard (1971) i n

t h e former t e s t p i t , but t he w r i t e r d i d not f i n d any m i n e r a l i z a t i o n

o r a l t e r a t i o n t o warrant f u r t h e r i n v e s t i g a t i o n . A l l of t he bedrock

exposures i n t he in t e rven ing a r e a were r e l a t i v e l y una l t e r ed medium-

gra ined t o po rphyr i t i c g r a n i t e , bar ren of even minor p y r i t e mineral-

i z a t i o n .

Before t h e f i l l - i n g r i d l i n e s were e s t a b l i s h e d t h e w r i t e r

prospected t h e s o i l geochemical anomaly discovered dur ing l a s t y e a r ' s

program. I t was dur ing t h i s work t h a t t h e o r i g i n a l Hematite t r e n c h

was l o c a t e d . Once t h i s t r ench had been surveyed t o both t h e l e g a l

corner post and t h e e s t a b l i s h e d c o n t r o l g r i d prospec t ing was c a r r i e d

out both no r th and south of t he showing t o t r a c e t h e e x t e n t of t h e

r epo r t ed mine ra l i za t ion .

I t was found t h a t t h e s i t e of t h e t r e n c h was t h e only

l o c a t i o n where s i g n i f i c a n t hemati te mine ra l i za t ion occurs , e i t h e r

t o t h e no r th o r south . Within t h e t r ench h e m a t i t i z a t i o n , wi th

a s s o c i a t e d ep ido te , c h l o r i t e and minor s i l i c i f i c a t i o n , occurs

dominantly a s f r a c t u r e f i l l i n g s w i th in a f a u l t zone o r i e n t e d 013"

and d ipping -22" eastward. This zone pinches and s w e l l s from 7 t o

30 cen t ime t r e s wide. The foo twa l l po r t ion of t h e f a u l t zone i s

p r o p y l l i t i c a l l y - a l t e r e d , medium-grained g r a n i t e t h a t has been

minera l ized wi th diseminated specu la r hemati te . The hos t rock i s

w e l l f r a c t u r e d and moderately a l t e r e d next t o t h e f a u l t , but q u i t e

massive and unal te red beyond 3 metres .

The most important f e a t u r e of t he showing i s t h a t t h e

m i n e r a l i z a t i o n appears t o be a s s o c i a t e d wi th a r e l a t i v e l y shal low

d ipping , l o c a l s t r u c t u r e ; not w i th t h e more r e g i o n a l f r a c t u r e zone

a s i n f e r r e d by previous workers. The s t r i k e ex t ens ions , both no r th

and south of t h e showing, were we l l prospected and found no tab ly

ba r r en . Based on t h e l o c a l topography and l i m i t e d mapping, t h e

hemat i te mine ra l i za t ion , e i t h e r a s a hos t o r an accessory minera l

t o t h e prec ious metal va lues , i s l o c a l i z e d near t h e i n t e r s e c t i o n

of two shea r zones - one along Finnegan Creek and i t s con juga t e s e t

s t r i k i n g northeastward.

Near g r i d coo rd ina t e s 103+30N. by 93+60E. a wh i t e q u a r t z

ve in was d i scovered wi th in u n a l t e r e d , massive g r a n i t e . This ve in

was found t o be d i scont inuous beyond 4 metres . The sample t h a t was

c o l l e c t e d r e tu rned n e g l i g i b l e go ld , s i l v e r , o r base-metal va lues .

On June 27th t h e w r i t e r r e tu rned t o t h e p rope r ty a f t e r

t h e s o i l and rock geochemical r e s u l t s were rece ived from Chemex Labs

Ltd . The p l o t t e d r e s u l t s had confirmed t h e 1984 geochemical anomaly

and i t was obvious t h a t t h i s anomaly d i d n o t cover t h e Hematite

showing and t rench . The w r i t e r prospected along t h e southwestern

s i d e of Finnegan Creek, from t h e t r ench t o t h e b a s e l i n e , t hen north-

westward along t h e c l i f f s on t h e n o r t h e a s t e r n s i d e of t h e d ra inage .

A t g r i d coo rd ina t e s 102N. by 96+75E. t h e w r i t e r d i scovered a second

zone of f r a c t u r i n g , a l t e r a t i o n and h e m a t i t i z a t i o n . Th i s zone i s

hos ted by medium-grained g r a n i t e w i th p o r p h y r i t i c g r a n i t e t o t h e

e a s t and wes t . The zone i t s e l f t r e n d s due no r th and i t i s w e l l

r e f l e c t e d by t h e anomalous s o i l geochemistry.

Two rock geochemical samples were c o l l e c t e d w i t h i n t h e

second zone of h e m a t i t i z a t i o n . Both samples were t y p i c a l examples

of t h e m i n e r a l i z a t i o n and both r e tu rned low metal va lues .

CONCLUSIONS

The r e s u l t s of t h e prospec t ing and geochemical survey a r e

not encouraging. No economic mine ra l i za t i on worthy of cont inued

e x p l o r a t i o n was discovered.

The prospec t ing undertaken beyond t h e l i m i t s of t h e survey

g r i d , wi thout s o i l geochemical coverage, l oca t ed t h e o r i g i n a l Hematite

showing but rock geochemical r e s u l t s were nega t ive . A second zone

of s t r u c t u r a l l y c o n t r o l l e d hemat i te m i n e r a l i z a t i o n , w e l l r e f l e c t e d

by s o i l geochemistry, a l s o r e tu rned nega t ive geochemical r e s u l t s .

Based on the above results it is the writer's opinion that

no further exploration is warranted.

Submitted by,

MINOREX CONSULTING LTD.

August 7, 1985 Kamloops, B.C.

J.D. Blanchflower, F.G.A.C. Consulting Geologist

STATEMENT OF QUALIFICATIONS

I , J . DOUGLAS BLANCHFLOWER, of t h e C i t y of Kamloops, Province of B r i t i s h Columbia, DO HEREBY CERTIFY THAT:

1 ) I am a Consul t ing Geologis t w i th bus ines s o f f i c e a t 2391 Bosser t Avenue, Kamloops, B r i t i s h Columbia, V2B 4V6; and P re s iden t of Minorex l c o n s u l t i n g Ltd.

2 ) I am a gradua te i n geology wi th a Bachelor of Sc ience , Honours Geology degree from t h e Un ive r s i t y of B r i t i s h Columbia i n 1971.

3 ) I am a Fellow of t h e Geological Assoc i a t i on of Canada.

4 ) I have p r a c t i s e d my p ro fe s s ion a s a g e o l o g i s t f o r t h e pas t t h i r t e e n yea r s .

Pre-Graduate experience i n Geology - Geochemistry - Geophysics i n B r i t i s h Columbia, Yukon and Northwest T e r r i t o r i e s (1966 t o 1970) .

Three yea r s a s Geologis t w i th t h e B .C . Min i s t ry of Energy, Mines and Petroleum Resources (1970 t o 1972) .

Seven yea r s a s Explora t ion Geologis t w i t h Canadian Superior Explora t ion Limited (1972 t o 1980).

Three yea r s a s Explora t ion Geologis t w i t h S u l p e t r o Minerals Limited (1980 t o 1982).

Two y e a r s a s Consul t ing Geologis t w i th Minorex Consul t ing Ltd.

Act ive e x p l o r a t i o n and development exper ience i n Western North America.

5 ) Th i s r e p o r t i s based on a prospec t ing and geochemical survey undertaken on t h e proper ty between May 28 znd June 27 , 1985; and on a v a i l a b l e publ ished r e p o r t s and maps.

6 ) I own no d i r e c t , i n d i r e c t o r con t ingen t i n t e r e s t i n any of t h e s u b j e c t c la ims , nor sha re s i n o r s e c u r i t i e s of VERDSTONE GOLD CORPORATION

7 ) I consent t o t h e use of t h i s r e p o r t i n a Prospec tus o r Statement of Ma te r i a l Fac t s .

J.D. Blanchflower, F.G.A.C.

Dated a t Kamloops, B r i t i s h Columbia, t h i s 7 t h day of August, 1985.

STATEMENT OF COSTS

Re: Chain and compass survey from t h e l e g a l co rne r post of t h e HEMATITE mineral c la im t o t h e conf luence of Hayes and Finnegan Creeks.

Establ ishment of 2 k i l ome t r e s of f i l l - i n c o n t r o l g r i d .

C o l l e c t i o n and a n a l y s i s of 82 "B" hor izon s o i l geochemical samples. A l l samples were ana lysed f o r go ld , s i l v e r , copper , l e ad and z inc a t Chemex Labs Ltd. i n Vancouver, B.C.

P rospec t ing of t h e northwestern p o r t i o n of t h e c o n t r o l g r i d and i n t h e v i c i n i t y of t h e Hematite showing.

C o l l e c t i o n and a n a l y s i s of 8 rock geochemical samples f o r go ld , s i l v e r , copper , l e ad and z i n c a t Chemex Labs Ltd . , Vancouver and Kamloops Research and Assay Laboratory Ltd . , Kamloops, B.C.

C o l l a t i o n , p l o t t i n g , d r a f t i n g , i n t e r p r e t a t i o n and documentation of a l l r e s u l t a n t d a t a .

1 ) Personnel

J.D. Blanchflower - g e o l o g i s t May 28 - p r o j e c t l o g i s t i c s 1 day May 29 t o June 1 - prospec t ing and surveying 4 days June 27 - prospec t ing 1 day August 3 t o 7 - r e p o r t and map p r e p a r a t i o n 4 days

10 days

10 days @ $300./day $3,000.00

K. Kaye - geological /geochemical a s s i s t a n t May 29 t o June 1 -

4 days @ $187./day 748 .OO

T. Robinson - geochemical a s s i s t a n t May 29 t o June 1 -

4 days @ $ 1 5 0 . / d a ~

2) Vehicle Expense

a ) '83 Ford P/U 4WD (Minorex) 5 days @ $35./day p lus 1 ,078 km. @ $.35/km.

b ) Mobi l iza t ion expenses f o r K. Kaye 63 -00 $615.30

3) Room and Board

a) Room - 9 man days @ $20.69/man day $186.18

b) Board - 13 man days @ $18.50/man day 240.50 $426.68

4) Expendable Field Supplies

7 rolls of flagging 82 tyvek labels 82 soil sample bags 3 rolls of topofil thread 8 plastic sample bags

5) Analyses

a) 82 soil and 6 rock samples for Au, Ag, Cu, Pb and Zn plus preparation (Chemex)

b) 2 rock samples for Au, Ag, Cu, Pb and Zn plus preparation (K.R.A.L . )

6) Office Expenses

a) Drafting and Report Collation (P. Mason) Drafting - 6 hrs. @ $18./hr. Collation - 3 hrs. @ $12./hr.

b) Typing (J & L Enterprises) 7 hrs. @ $18./hr.

c) Report photocopying and map printing (Universal Reproductions)

d) Miscellaneous expenses - purchase of assessment report and top0 map, telephone charges on client's behalf, postage, etc.

Total Cost of Exploration Program from May 28 to Aug. 7, 1985 $6,833.20

To be applied for assessment credit as follows:

Claim Name Record No. Units Record Month Years Applied

HEMATITE 2077 6 Nov. (11) 6 ($6,600.)

August 7, 1985 Kamloops , B. C .

J . D. Blanchf lower, F .G . A.C . Geologist

BIBLIOGRAPHY

Blanchf lower , J.D. (1984) : Geochemical Repor t on t h e Hemat i te

P r o p e r t y , Similkameen Mining D i v i s i o n ,

B . C . ; p r i v a t e r e p o r t f o r Verdstone

Gold C o r p o r a t i o n , November 9 , 1984.

B.C. M i n i s t e r of Mines Annual Repor t ( 1 9 2 8 ) , p. C263.

L i v g a r d , E. (1971):

P e t o , P. (1984):

R i c e , H.M.A. (1946) :

P h o t o i n t e r p r e t a t i o n , G e o l o g i c a l Map-

p i n g , Magnetic Survey and Geochemical

Survey of FK Cla ims , B . C . ; B .C.D.M.

Assessment Repor t Il3450.

G e o l o g i c a l Repor t on t h e Hemat i te

Minera l Claim, Similkameen Mining

D i v i s i o n , B . C . ; p r i v a t e r e p o r t f o r

Verds tone Gold C o r p o r a t i o n , February 6,

1984.

Geology and Minera l D e p o s i t s of t h e

P r i n c e t o n Map-Area, B .C . ; G.S.C.

Memoir 243.

APPENDIX I

C h e m e x L a b s L t d .

C e r t i f i c a t e of A n a l y s i s - S o i l s

Chemex Labs Ltd. 212 Brooksbank Ave.

N o r t h Vancouver, B.C. Canada V7J 2C1

Analytical Chemists Geochemists Registered Assa yers Telephone:(604) 984-0221 Telex. 043-52597

I* C e r t i f i e d by ......,............,,.

1

ATTN: DOUG BLANCHFLUWE R CC: VEKDSTONE GOLD CORP. S a m p l e P r e p Cu Pb Z n Ag Au-AA

d e s c r i p t i on code P P ~ PPm PPm P pin P P ~ 99M + 95000E 202 7 5 57 0.1 (10 - - 99N + 95.25E 202 5 5 5 3 0.1 (10 -- 99N + 95.50E 2 02 85 8 6 0 011 < 1 0 - - 99N + 95075E 202 7 3 4 5 2 0 - 1 < l o -- 99N + 96o00E 202 1 8 7 4 3 0.1 (10 -- 99N + 96.25E 202 7 5 6 2 0 - 1 (10 -- 99N + 96.50E 202 6 3 4 0 0.1 (10 -- 99M + 96075E 202 11 2 4 4 0 0 1 < 1 0 -- 99N + 97.00E 202 6 3 5 2 0 - 1 (10 - - 99N + 97.25E 202 7 2 6 5 0 - 1 (10 -- 99N + 97050E 202 5 3 3 8 0 - 1 < l o - - 99N + 97.75E 202 9 3 4 7 0 - 1 < 1 0 -- 99N + 9BoOOE 202 8 2 5 8 0.1 (10 - - 99N + 98.25f 202 5 3 85 0 0 1 (10 -- : \ 99N + 9B.50E 202 6 5 6 5 0.1 < l o - -

CER

1 I ,'

L

TO : MINOREX CONSULTING LTD. * 4. -- CERT. # : A8512646-001-A INVOICE # : I 8 5 1 2 6 4 6

2 3 9 1 BOSSERT AVE. DATE : 17-JUN-85 KAMLOOPS* 0-CI P - 0 0 # : 84-16 V2B 4V6 HEMATITE

99N + 9 8 0 7 5 E 202 5 3 6 8 0 -1 (10 -- Q9N + 99o00E 202 4 3 7 5 0.1 (10 - - 99N + 99025E 202 1 3 5 1 4 7 0.1 (10 -- 99N + 99050E 202 27 7 120 0.1 (10 - - 99N + 99075E 2 02 3 3 5 5 0.1 (10 -- 99N + lOOoOOE 202 5 3 4 3 0.1 (10 -- l O l N + 95 -00E 202 5 1 4 2 00 1 < l o -- l O l N + 95025E 202 5 3 5 4 0.1 (10 -- l O l N + 95-50E 202 4 1 6 2 0.1 (10 -- l O l N + 95075E 202 1 0 4 8 5 0 - 1 (10 - - l O l N + 96000E 202 1 4 4 9 7 0.1 (10 -- l O l N + 96025E 202 4 0 6 1 3 8 0 0 1 < l o - - l O l N + 96050E 202 23 7 6 5 0 - 1 (10 -- I O l N + 96075E 202 8 6 6 5 7 0.1 < l o - - l O l N + 97 -00E 202 3 7 2 4 7 0.1 (10 -- l O l N + 97025E 202 3 1 4 5 3 0 - 1 (10 -- l O l N + 97 -50E 202 1 9 5 5 5 0 - 1 (10 - - l O l N + 97075E 202 12 3 4 6 O i l (10 -- l O l N + 9 8 - 0 0 E 202 7 5 5 8 0.1 (10 -- l O l N + 9 8 0 2 5 E 2 02 6 2 4 7 0 - 1 < l o -- l O l N + 98050E 202 3 3 5 0 0.1 (10 -- l O l N + 98075E 202 7 3 5 2 0.1 < l o -- l O l N + 99.00E 2 02 6 1 3 5 0.1 (10 -- l O l N + 99.25E 202 3 1 3 1 0.1 (10 -- l O l N + lOO.OOE 202 4 2 3 8 0.1 (10 --

Chemex Labs Ltd. 212 Brooksbank Ave.

N o r t h Vancouver, B.C. Canada V7J 2C1

Analytical Chemists Geochemists Registered Assayers Telephone:(604) 984-0221 Telex. 043-52597

TO : MINOREX CONSULTING LTD. ** CERTo # : A8512646-002-A INVOICE # : 1 8 5 1 2 6 4 6 EAT€ : 17-JUN-85 P - 0 - # : 84-16 HEMATITE

ATTN: DOUG BLANCHFLOWER CC: VEKDSTONE GOLD CORP- Samp l e P r e p C u Pb L n Ag Au-AA I

d e s c r i p t i o n 1 0 3 N + 95.00E 1 0 3 N + 9 5 0 2 5 E 1 0 3 N + 9 5 - 5 0 E 1 0 3 N + 9 5 0 7 5 E 1 0 3 N + 96.00E 1 0 3 N + 9 6 0 2 5 E 1 0 3 N + 9 6 - 5 0 E 1 0 3 N + 9 6 0 7 5 E 1 0 3 N + 9 7 0 0 0 E 103N + 9 7 0 2 5 E 1 0 3 N + 9 7 0 5 0 E 1 0 3 N + 9 7 - 7 5 E 1 0 3 N + 9 8 0 0 0 E 1 0 3 N + 9Ro25E 1 0 3 N + 9 8 - 5 0 E 1 0 3 N + 9 8 o 7 5 E 103N + 9 9 0 0 0 E 1 0 3 N + 9 9 - 2 5 E 103N + 9 9 - 5 0 E 1 0 3 N + 9 9 0 7 5 E 1 0 3 N + lOOoOOE 1 0 5 N + 9 5 - 0 0 E 105N + 95.25E 1 0 5 N + 9 5 - 5 0 E 105N + 9 5 0 7 5 E 105N + 9 6 0 0 0 E 105N + 9 6 - 2 5 E 1 0 5 N + 9 6 - 5 0 E 105N + 9 6 0 7 5 E 1 0 5 N + 9 7 - 0 0 E 105N + 9 7 - 2 5 E 1 0 5 N + 9 7 0 5 0 E 1 0 5 N + 9 7 0 7 5 E 1 0 5 N + 9 8 0 0 0 E 105N + 9 8 - 2 5 E 1 0 5 N + 9 8 0 5 0 E 1 0 5 N + 9 8 0 7 5 E 1 0 5 N + 9 9 - 0 0 E 1 0 5 N + 9 9 0 2 5 E 1 0 5 N + 9 9 0 5 0 E

code 2 0 2 2 0 2 2 0 2 2 0 2 2 0 2 2 0 2 2 0 2 2 0 2 2 0 2 2 0 2 2 0 2 2 0 2 2 0 2 2 0 2 2 0 2 2 0 2 2 0 2 2 0 2 2 0 2 2 0 2 2 0 2 2 0 2 2 0 2 2 0 2 2 0 2 2 0 2 2 0 2 2 0 2 2 0 2 2 0 2 2 0 2 2 0 2 2 0 2 2 0 2 2 0 2 2 0 2 2 0 2 2 0 2 2 0 2 2 0 2

ppm 7

pprn o m P P ~ 7 3 8 0 - 1

1- C e r t i f i e d by ...-o.........-.......

Chemex Labs Ltd. 2 1 2 B r o o k s b a n k A v e .

N o r t h V a n c o u v e r , B.C. Canada V7J 2C1

Analytical Chemists Geochemists Registered Assayers Telephone:(604) 984-0221 Telex 043-52597

I I C E R T I F I C A T E UF ANALYSIS

L I TO : MINOREX CONSULTING LTD. ** CERT- # : A8512646-003 -A

I N V O I C E # : 1 8 5 1 2 6 4 6 2 3 9 1 BOSSERT AVE- DATE : 17-JUN-85 KAMLOOPSr 0.C. P -0 - # : 8 4 - 1 6 V 2 0 4 V 6 HEMATITE

ATTN: DOUG BLANCHFLOWER LC: VEROSTONE GOLD CORP- I S a m ~ l e P r e~ Cu Pb Zn Ag Au-AA 1

descr i p t i on code P P ~ P P ~ P P ~ P P ~ P P ~ 1 0 5 N + 9 9 0 7 5 E 2 0 2 5 4 102 0 - 1 (10 --

APPENDIX I1

Chemex Labs Ltd.

C e r t i f i c a t e of Analysis - Rocks

Chemex Labs Ltd. 212 Brooksbank Ave. Nor th Vancouver, B.C. Canada V7J 2C1

Analytical Chemists Geochemists Registered Assa yers Telephone:(604) 984-0221 Telex. 043-52597

TO : MINOREX CONSULTING LTD.

2 3 9 1 BOSSERT AVEw KAMLODPS, BeCw VZB 4Vb

+.* CERT. # : A8512647-001-A

INVOICE # : I 8 5 1 2 6 4 7 DATE : 17-JUN-85 P.0, # : 8 4 - 1 6 HEMATITE

ATTN: DOUG BLANCHFLOWER CC: VERDSTQNE GOLD CORPw Samp l e P r e p C u P b Zn A 9 Au-AA

d e s c r i ~t i o n code ppm ppm pp m P P ~ P P ~ 9 5 1 6 - 0 1 2 0 5 1 3 3 7 1 0.1 ( 1 0 -- 8 5 1 6 - 0 2 2 0 5 2 7 3 6 4 0 - 1 < 1 0 -- 8 5 1 6 - 0 3 2 0 5 5 1 60 0.1 ( 1 0 -- 8 5 1 6 - 0 4 2 0 5 3 1 8 2 3 0 - 2 < l o -- 8 5 1 6 - 0 5 2 0 5 4 2 2 8 0.1 (10 -- 8 5 1 6 - 0 6 205 4 3 2 2 001 < 1 0 --

I* C e r t i f i e d by .... ...............,.,

APPENDIX I11

Kamloops Research & Assay Laboratory Ltd .

Geochemical Lab Report - Rocks

I GEOCHEMICAL LAB REPORT

KAMLOOPS RESEARCH & ASSAY < LAt3ORATORY LTD.

Minorex Consul t ing Ltd. 200-1 56 V i c t o r i a S t . , Kamloops , B. C . V2C 127

B.C. CERTIFIED ASSAYERS '

912 LAVAL CRESCENT- KAMLOOPS, B.C. v2c 5P5

PHONE: (604) 372-2784 - TELEX: 048-8320

FILE NO. --

DATE J u l y 4 , 1985.

ANALYST

FlLE NO. G 1318

APPENDIX IV

Analytical Procedures

for

Geochemical Analyses

GEOCHEMICAL ANALYSIS

Gold Method

a) The samples are dried in a geochemical drying oven and then

screened through a stainless steel 80 mesh sieve. The minus

80 fraction is reserved for analysis and the plus 80 mesh

fraction is discarded.

b) 29.17 grams of sample are weighed, silver added, along with

fluxes and the sample is started as a fire assay. After

cupellation the bead is dissolved and the samples are then mixed

to insure homogeneity and are read, upon settling, on a Varian

Techtron AA 5 or 475 atomic absorption spectrophotometer using

an air-acetylene flame.

c) All additions of liquid reagents are from Oxford Model S -

A pipettors.

GEOCHEMICAL ANALYSIS

S i l v e r , Copper, Lead and Zinc Method

a ) The samples a r e d r i e d i n a geochemical d ry ing oven and t h e n

screened through a s t a i n l e s s s t e e l 80 mesh s i e v e . The minus

80 f r a c t i o n i s reserved f o r a n a l y s i s and t h e p l u s 80 mesh f r a c -

t i o n i s d i sca rded .

b ) The samples a r e t hen weighed i n t o t e s t t u b e s , n i t r i c a c i d i s

added, and they a r e p laced i n a ho t water b a t h f o r t h i r t y minutes .

Hydrochlor ic a c i d i s t h e n added and t h e samples a r e d i g e s t e d

f o r a f u r t h e r 90 minutes i n t h e water ba th . The samples a r e

t hen d i l u t e d w i t h de ion ized water .

c ) The samples a r e t hen mixed t o i n s u r e homogeneity and a r e r e a d ,

upon s e t t l i n g , on a Var ian Techt ron AA 5 o r 475 a tomic a b s o r p t i o n

spectrophotometer . An a i r - a c e t y l e n e flame i s used f o r t h e

a n a l y s i s of s i l v e r , copper , l e a d and z i n c .

d ) A l l a d d i t i o n s of r e a g e n t s a r e from Oxford Model S-A p i p e t t o r s .

e ) S tandards and re -assay checks a r e c a r r i e d a long w i t h each run

of 35 samples.

APPENDIX V

Sample Descriptions

and

Analytical Summaries

APPENDIX V

Sample Descriptions and Analytical Summaries I

Analysis Sample Location C u Pb Zn Ag Au No. N. E. p.p.m. p.p.m. p.p.m. p.p.m. p.p.b.

Description

8516-1 102+10 93+05 13 3 7 1 0.1 <lo Chip sample across 0.3 m. fault gouge zone oriented 013"/-22"E. Zone pinches and swells 0.1 to 0.3 m, wide,

Chip sample across 2 m. of footwall below 013"/22E. fault zone. Disseminated to semi-massive hematite in propyllitically- altered granite.

0.1 (10 Grab sample of white quartz vein material from a discontinuous lense in porphyritic granite.

0.2 < 10 Grab sample of hematitized granite on hanging wall side of fault zone.

0.1 < 10 Chip sample across 1 m. of fracture-filling hematite mineralization in altered (Ep, ,

C1) granite.

0.1 <lo Grab sample of hematitized granite at west end of trench.

(0.1 < 5 Chip sample across 1 m. of propyllitically- I

altered granite with fracture controlled I specular hematite.

(0.1 (5 Chip sample across 1 m. of altered granite with specular hematite disseminations.