R. W. PHENDLER, P. Eng., GEOLOGICAL CONSULTANT. 830409 EXPLORATION A N D MINING

7360 DECOURCY CRES., RICHMOND, B.C. V 7 C 4 E 8 (604)271-2588

SUMMARY REPORT on the

JAMES PROPERTY, KAMLOOPS MINING DIVISION,

BRITISH COLUMBIA

f o r

AMPAC PETROLEUM RESOURCES, INC.

by R.W. PHENDLER, P. ENG.

Vancouver, Canada June 11, 1984

N O R T H W E S T

T E R R I T O R I E S

PACIFIC U . S . A .

L O C MAP V A N C O U V E R BRITISH C O L U M B I A

&Mf*C PE.TROLE.un RESOURCES IMC.

JAMES PR0PE.RTY.KAMLOOPS HIM. DIV.

N T S .

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| D A T E J U M E l ^ 8 « f 1FI6.NO.

TABLE OF CONTENTS

Page

PART "A"

Summary and C o n c l u s i o n s 1

Recommendations 1

Cost E s t i m a t e 2

PART "B"

I n t r o d u c t i o n 3

L o c a t i o n and A c c e s s 3

P r o p e r t y and Ownership 4

H i s t o r y 4

Geology and M i n e r a l i z a t i o n 6

Diamond D r i l l i n g 7

Geo c h e m i s t r y 8

G e o p h y s i c a l 8

Comment 9

C e r t i f i c a t i o n 10

B i b l i o g r a p h y 11

ILLUSTRATIONS

F i g . 1 - L o c a t i o n Map - S c a l e , 1: 10,000,000 -f r o n t i s p i e c e

F i g . 2 - P r o p e r t y Map &. V i c i n i t y - S c a l e 1: 50,000 - page 12

- i -

PART "A"

SUMMARY AND CONCLUSIONS

The James p r o p e r t y l i e s i m m e d i a t e l y e a s t and a l o n g s t r i k e from

copper and s i l v e r b e a r i n g shear zones t h a t have been known of s i n c e

the 1890's. These shear zones ( a t l e a s t t h r e e ) have been t r a c e d on

s u r f a c e f o r at l e a s t f i v e hundred meters a l o n g s t r i k e and diamond

d r i l l i n g c a r r i e d out i n 1983 showed i n t e r s e c t i o n s t h a t assayed

1.95% Cu and 0.64 oz Ag a c r o s s 11.0 f e e t and a second zone i n the

same h o l e t h a t assayed 2.61% Cu and 0.78 oz Ag a c r o s s 10.0 f e e t .

The zones d e s c r i b e d above are l o c a t e d on the B o r n i t e p r o p e r t y

( f o r m e r l y t h e T e n d e r f o o t p r o p e r t y ) w h ich l i e s i n c e n t r a l B r i t i s h

C o lumbia near Kamloops and appear t o be r e l a t e d t o a s e r i e s of

g r a n i t i c p l u g s known as the Copper Creek I n t r u s i o n s and a s s o c i a t e d

shear zones.

R e c e n t l y completed geochemical s u r v e y s c a r r i e d out on the

B o r n i t e p r o p e r t y and the Edna p r o p e r t y t o the n o r t h show t h a t e l o n ­

gate anomalous copper - s i l v e r s o i l c o n d i t i o n s appear t o t r e n d t o ­

wards the James p r o p e r t y .

P e r m i s s i o n has been g r a n t e d from Mix Resources L t d . t o use

d a t a c o n c e r n i n g t he B o r n i t e p r o p e r t y and from V a l c l a i r R e s ources

L t d . c o n c e r n i n g t h e Edna p r o p e r t y .

I t i s b e l i e v e d t h a t t he James p r o p e r t y i s s u f f i c i e n t l y w e l l

l o c a t e d t o w a r r a n t a modest e x p l o r a t i o n program.

RECOMMENDATIONS

I t i s recommended t h a t :

Phase I

1) A f l a g g e d g r i d be e s t a b l i s h e d on the p r o p e r t y w i t h l i n e s spaced a t 100 m e t e r s . L i n e s s h o u l d be n o r t h - s o u t h .

- 1 -

2) A geochemical s u r v e y be c a r r i e d out on the p r o p e r t y w i t h

samples t a k e n on 50 meter c e n t r e s .

Phase I I - (dependent upon f a v o u r a b l e r e s u l t s from Phase I )

1) A VLF e l e c t r o m a g n e t i c s u r v e y s h o u l d be c a r r i e d out over the

g r i d .

2) The p r o p e r t y s h o u l d be p r o s p e c t e d and g e o l o g i c a l l y mapped.

3) Diamond d r i l l i n g of t a r g e t s s h o u l d be c a r r i e d o u t .

COST ESTIMATE - Phase I

1) E s t a b l i s h g r i d $3,000.00

2) Geochemical s u r v e y 3,000.00

3) Assay d e t e r m i n a t i o n of samples 3,100.00

T o t a l - $9,100.00 10% C o n t i n g e n c i e s - 910.00

T o t a l - Phase I - $10,010.00

Phase I I - dependent upon f a v o u r a b l e r e s u l t s from Phase I

1) VLF e l e c t r o m a g n e t i c s u r v e y $10,000.00

2) Diamond d r i l l i n g - 1,000' § $25 / f o o t 25,000.00

3) E n g i n e e r i n g , G e o l o g y , Assays 5,500.00

4) T r a v e l and Accomodation 5,000.00

T o t a l - $45,500.00 10% C o n t i n g e n c i e s - 4,550.00

T o t a l - Phase I I - $50,050.00

The sum of $10,000 s h o u l d be made a v a i l a b l e at t h i s t ime t o c a r r y

out Phase I of the above program. I f r e s u l t s a r e f a v o u r a b l e , ad­

d i t i o n a l funds w i l l be r e q u i r e d t o c a r r y out Phase I I of the

program. R e s p e 9 t ^ i T ^ > ^ s u b m i t t e d ,

R.wi KhendlSx./p. Eng. v - .• •' /

PART "B"

INTRODUCTION

At t h e r e q u e s t of the Board of Ampac P e t r o l e u m R e s o u r c e s

I n c . , t h e w r i t e r c o m p i l e d t h i s r e p o r t on t h e James c l a i m , w h i c h i s

l o c a t e d on t h e n o r t h shore of Kamloops Lake i n c e n t r a l B r i t i s h

C o l u m b i a .

The w r i t e r i s f a m i l i a r w i t h t h e immediate v i c i n i t y of t h e

James c l a i m , h a v i n g examined the nearby B o r n i t e p r o p e r t y on Nov­

ember 9, 1982 and recommended and s u p e r v i s e d the e x p l o r a t i o n p r o ­

gram t h e r e o n . The w r i t e r i s a l s o i n v o l v e d w i t h the Edna c l a i m

one k i l o m e t e r t o the n o r t h , h a v i n g w r i t t e n the q u a l i f y i n g r e p o r t

and s u p e r v i s e d and i n t e r p r e t e d the r e c e n t l y - completed geochem­

i c a l s u r v e y .

The James c l a i m i s w e l l l o c a t e d , b e i n g a l o n g s t r i k e t o t h e

e a s t of the copper s i l v e r b e a r i n g s t r u c t u r e s on the B o r n i t e p r o ­

p e r t y , w h i c h have a g e n e r a l e a s t - west s t r i k e .

LOCATION AND ACCESS

The James p r o p e r t y i s l o c a t e d at an e l e v a t i o n of 400 - 600

m e t e r s about 34 k i l o m e t e r s west - n o r t h w e s t of Kamloops and 250

k i l o m e t e r s n o r t h e a s t of Vancouver i n s o u t h c e n t r a l B r i t i s h C o l u m b i a .

The p r o p e r t y i s a c c e s s i b l e by c a r by l e a v i n g the T r a n s -

Canada Highway (Highway 1 or 97) between Kamloops and Cache Creek

about s i x k i l o m e t e r s west of Savona. The w e l l m a i n t a i n e d C r i s s

Creek - Red Lake Road i s f o l l o w e d i n a n o r t h e a s t e r l y d i r e c t i o n f o r

24.3 k i l o m e t e r s t o a p oor, but p a s s a b l e d i r t road t h a t heads s o u t h ­

e a s t e r l y f o r two k i l o m e t e r s p a s t the B o r n i t e showings t o the p r o ­

p e r t y . A s m a l l a c c e s s road c r o s s e s t h e Edna p r o p e r t y , w h i c h i s l o -

- 3 -

c a t e d j u s t n o r t h w e s t of the James p r o p e r t y and p r o v i d e s a c c e s s t o

the n o r t h e a s t c o r n e r o f the James p r o p e r t y .

V e g e t a t i o n c o n s i s t s of g r a s s y , open r a n g e l a n d on moderate,

s o u t h e r l y f a c i n g s l o p e s , w h ich drop o f f down t o Kamloops Lake

(see f i g u r e 2 ) . There i s no road a c c e s s from t h e l a k e , a l t h o u g h

the main l i n e of t h e C a n a d i a n N a t i o n a l R a i l w a y p a s s e s a l o n g the

n o r t h s h o r e .

A number of s m a l l , i n t e r m i t t e n t streams c r o s s t h e James

c l a i m , but b e f o r e u t i l i z i n g t h i s s u p p l y f o r an e x p l o r a t i o n program,

arrangements would have t o be made w i t h t h e h o l d e r s of the water

r i g h t s , as water i s i n somewhat s h o r t s u p p l y i n t h e a r e a .

PROPERTY AND OWNERSHIP

The James p r o p e r t y c o n s i s t s of the 20 u n i t James c l a i m which

was s t a k e d on March 21, 1984 and r e c o r d e d at Kamloops on A p r i l 16,

1984.

Record number i s 005609.

The c l a i m i s b e i n g a c q u i r e d by Ampac P e t r o l e u m Resources I n c .

HISTORY

Some s p l e n d i d samples of n a t i v e copper were r e p o r t e d by

B r i t i s h C olumbia Government agents from l o c a t i o n s on Copper Creek

as e a r l y as 1890 but i t was not u n t i l 1893 when t h e showings on the

T e n d e r f o o t P r o p e r t y ( p r e s e n t l y B o r n i t e ) were m e n t i o n e d . T h i s p r o ­

p e r t y , which i s l o c a t e d 700 meters e a s t of t h e James p r o p e r t y was

d e s c r i b e d as t h e most p r o m i s i n g copper p r o p e r t y i n the a r e a , y i e l d ­

i n g samples of 15% copper and t e n ounces of s i l v e r a c r o s s a w i d t h

of t e n f e e t . A c o n s i d e r a b l e amount of s u r f a c e work had been c a r ­

r i e d out at t h a t t i m e and i n the f o l l o w i n g y e a r a f i f t e e n f o o t

- 4 -

s h a f t was sunk.

In 1899 a shipment of f o u r t o n s was made a v e r a g i n g 21.79%

Cu, 0.16 oz Au and 7.5 oz Ag per t o n . Work c o n s i s t e d of a 43

f o o t d e c l i n e , a 30 f o o t l o n g a d i t , a 23 f o o t s h a f t and numerous

open c u t s .

Development work was c a r r i e d on i n t e r m i t t e n t l y between 1900

and 1930 w i t h numerous hundreds of f e e t of underground work c a r ­

r i e d o u t . About 100 t o n s of m i n e r a l i z e d m a t e r i a l was s h i p p e d t o

a s m e l t e r at L a d y s m i t h , Vancouver I s l a n d .

In 1969 t h e B o r n i t e p r o p e r t y was o p t i o n e d t o G i a n t E x p l o r ­

a t i o n s L t d . by K. Rousseau of A l b e r n i . Work c o n s i s t e d of an

e l e c t r o m a g n e t i c s u r v e y , a magnetometer s u r v e y and the c o m p l e t i o n of

two diamond d r i l l h o l e s (171 and 166 f e e t ) under the p r i n c i p a l

w o r k i n g s . One h o l e r e p o r t e d b o r n i t e and c h a l c o p y r i t e a c r o s s 9.0

f e e t .

D u r i n g l a t e 1982 a geochemical s u r v e y and a VLF e l e c t r o ­

m agnetic s u r v e y was c a r r i e d out over p a r t of the B o r n i t e p r o p e r t y

i n t he v i c i n i t y o f the o l d workings c o v e r i n g an a r e a one k i l o m e t e r

by 700 m e t e r s . T h i s was f o l l o w i n g an e x a m i n a t i o n of the p r o p e r t y

by the w r i t e r when some s i g n i f i c a n t copper - s i l v e r assays were

r e t u r n e d from samples t a k e n at t h a t t i m e .

In l a t e 1982 and e a r l y 1983 f o u r d r i l l h o l e s were put down

by Mix R esources L t d . , o p t i o n e r of the B o r n i t e p r o p e r t y . Two h o l e s

were d r i l l e d beneath the p r i n i c p a l e a s t - w e s t s t r i k i n g m i n e r a l zone

and two were d r i l l e d about 300 meters a l o n g s t r i k e t o the west.

D u r i n g March, 1984 a g r i d was e s t a b l i s h e d over the Edna

p r o p e r t y t o the n o r t h w e s t of the James p r o p e r t y and a geochemical

s u r v e y was c ompleted f o r copper and s i l v e r . T h i s work was c a r r i e d

- 5 -

out on t h e i n s t r u c t i o n s of the w r i t e r and were p a r t of the r e c -

commendations made i n h i s o r i g i n a l r e p o r t on the Edna p r o p e r t y d a t e d

F e b r u a r y 20, 1984.

Four copper a n o m a l i e s were d i s c o v e r e d , the most s i g n i f i c a n t

l y i n g i n t h e s o u t h e a s t c o r n e r of the p r o p e r t y and b e i n g open i n

t h i s d i r e c t i o n . I t i s expected t o e x t e n d unto the James p r o p e r t y .

The g e o c h e m i c a l and g e o p h y s i c a l work c a r r i e d out on t h e Born­

i t e p r o p e r t y d i s c l o s e d the presence of t h r e e west - n o r t h w e s t e r l y

s t r i k i n g c opper s o i l anomalies (Spence, T e n d e r f o o t (Main) and

M y s t e r y Zones) t h a t have c o - i n c i d e n t e l e c t r o m a g n e t i c r e s p o n s e . They

appear t o be s t r i k i n g towards the James p r o p e r t y .

GEOLOGY AND MINERALIZATION

The a r e a i n which the James p r o p e r t y i s l o c a t e d i s u n d e r l a i n

by mixed v o l c a n i c s of Creta c e o u s or T e r t i a r y Age o v e r l y i n g e a r l i e r

s e d i m e n t a r y r o c k s t o the west and w i t h l a t e r v o l c a n i c s and s e d i m e n t s

of t h e Kamloops Group of Miocene Age i n t h e e a s t p a r t of t h e pr o p ­

e r t y .

G e n e r a l s t r i k e of a l l f o r m a t i o n s i s n o r t h w e s t e r l y w i t h a

number o f s m a l l g r a n i t i c p l u g s known as t h e Copper Creek I n t r u s i o n s

s c a t t e r e d t h r o u g h o u t the a r e a .

M i n e r a l i z a t i o n on the B o r n i t e p r o p e r t y c o n s i s t s of v e i n l e t s ,

b l e b s and d i s s e m i n a t i o n s of b o r n i t e , c h a l c o p y r i t e and m a l a c h i t e

g e n e r a l l y c o n f i n e d t o a number of w e s t - n o r t h w e s t e r l y s t r i k i n g

shear zones. These shear zones are s t e e p l y d i p p i n g and range up t o

about t e n f e e t i n w i d t h and c o n t a i n v a r y i n g amounts of c a l c i t e and

q u a r t z gangue. M i n e r a l i z a t i o n i s not e n t i r e l y c o n f i n e d t o t h e

shear zones as copper s u l p h i d e s a l s o o c c u r w e l l o u t s i d e t h e zones.

- 6 -

i n unsheared r o c k s .

The p r i n c i p a l m i n e r a l i z e d shear zone on the B o r n i t e p r o p e r t y

has been t r a c e d over a s t r i k e l e n g t h of 160 meters (525 f e e t ) by

t h r e e s h a f t s and two h o r i z o n t a l a d i t s . About 1,000 f e e t t o the

e a s t - s o u t h e a s t of t h e p r i n c i p a l s h a f t a s m a l l showing c o n t a i n i n g

m a l a c h i t e , c a l c i t e and q u a r t z was observed by the w r i t e r d u r i n g h i s

1982 e x a m i n a t i o n . T h i s appeared t o be p a r t of the same m i n e r a l i z e d

f r a c t u r e system and c o n t a i n e d e n c o u r a g i n g m i n e r a l i z a t i o n . Host

r o c k s are a u g i t e p o r p h y r y .

Samples t a k e n by the w r i t e r on the B o r n i t e p r o p e r t y i n 1982

are as f o l l o w s :

Sample No. Width % Cu oz Ag oz Au L o c a t i o n

17209 1.0 23.40 7.16 .052 S h a f t a r e a

17210 3.0 5.24 1.61 .033

17211 3.0 2.69 0.81 .005 underground winze

17213 2.5 1.76 0.48 .009

17212 1.0 0.46 0.12 .006 1 ,000 ' t o the e a s t

The l a s t sample i s about 500 meters e a s t of t h e James p r o p e r t y

DIAMOND DRILLING

As as example of what k i n d of v a l u e s can be e x p e c t e d on

the B o r n i t e (and p o s s i b l y the James) p r o p e r t y , d r i l l h o l e number

83-1 i n the B o r n i t e s h a f t a r e a i n t e r s e c t e d a m i n e r a l i z e d zone from

59.2' t o 68.0' t h a t averaged 3.84% Cu,0.53 oz Ag and 0.002 oz Au

per t o n a c r o s s 8.8 f e e t . A d d i t i o n a l m i n e r a l i z e d zones i n t e r s e c t e d

i n the h o l e were as f o l l o w s :

Footage Width % Cu oz Au oz Au

77-80' 3.0' 1 .88 0. 48 .001

87-90' 3.0' 2 .84 0. 53 .007

- 7 -

D r i l l h o l e No. 83-2 c u t two i n t e r e s t i n g zones as f o l l o w s :

Footage Width % Cu oz Ag oz Au

32' - 43' 11.0 1 1.95 0.64 .001

90 - 100' 10.0' 2.61 0.78 .005

GEOCHEMISTRY

Geochemical s u r v e y i n g f o r copper on the B o r n i t e p r o p e r t y

d i s c l o s e d t h e presence of t h r e e anomalous zones w i t h v a l u e s i n

ex c e s s of 90 ppm Cu, where a v a l u e of 30 ppm i s c o n s i d e r e d t o be

background. These zones s t r i k e s o u t h e a s t e r l y and at l e a s t t h e

no r t h e r n m o s t two (the M y s t e r y and the T e n d e r f o o t ) may e x t e n d i n t

e r m i t t e n t l y unto the James p r o p e r t y .

The g e o c h e m i c a l s u r v e y c a r r i e d out on the a d j o i n i n g Edna

c l a i m showed f o u r copper a n o m a l i e s , w i t h one (D zone) l o c a t e d i n

the s o u t h e a s t c o r n e r and e x t e n d i n g unto the James c l a i m . T h i s

anomaly i s t h r e e hundred meters square and has a h i g h v a l u e of

150 ppm.

Each copper s o i l anomaly has a c o - i n c i d e n t s i l v e r s o i l

anomaly but i n each case the s i l v e r anomaly i s d e c i d e d l y s m a l l e r

Anomaly D i s c o n s i d e r e d t o be one of the two s t r o n g e s t a n o m a l i e s

GEOPHYSICAL

The VLF E l e c t r o m a g n e t i c s u r v e y c a r r i e d out on t h e B o r n i t e

p r o p e r t y gave i n d i c a t i o n s of a number of s m a l l h i g h l y c o n d u c t i v e

zones. The t h r e e p r i n c i p a l copper ge o c h e m i c a l a n o m a l i e s have co

i n c i d e n t EM c o n d u c t o r s and w a r r a n t a deeper p r o b i n g t y p e of geo­

p h y s i c a l i n v e s t i g a t i o n - p o s s i b l y Induced P o l a r i z a t i o n or Max -

Min e l e c t r o m a g n e t i c s .

- 8 -

COMMENT

A l t h o u g h no work has y e t been c a r r i e d out on the James

c l a i m , t h e encouragement r e c e i v e d t o d a t e on b o t h the B o r n i t e and

the Edna p r o p e r t y , w i t h which t h e w r i t e r i s c l o s e l y a s s o c i a t e d ,

i n d i c a t e t h a t s i m i l a r type m i n e r a l i z a t i o n may e x i s t at l e a s t , on

the w e s t e r n p a r t of the c l a i m . The o v e r l y i n g Kamloops Group v o l ­

c a n i c s a r e f e l t t o have l e s s chance of the pr e s e n c e of copper -

s i l v e r m i n e r a l i z a t i o n but s h o u l d not be e n t i r e l y i g n o r e d a t t h i s

t i m e .

A modest e x p l o r a t i o n program on t h e James p r o p e r t y i s war­

r a n t e d .

R e s p e c t f u l l y s u b m i t t e d ,

Eng.

- 9 -

C E R T I F I C A T I O N

I , R.W. PHENDLER, P. Eng., of the M u n i c i p a l i t y of Richmond, i n

the P r o v i n c e o f B r i t i s h Columbia, do he r e b y c e r t i f y :

1) THAT I am a member of the A s s o c i a t i o n o f P r o f e s s i o n a l E n g i ­

n e e r s of B r i t i s h Columbia.

2) THAT I am a g r a d u a t e of M c G i l l U n i v e r s i t y , M o n t r e a l , w i t h a

B a c h e l o r of S c i e n c e degree i n Ge o l o g y .

3) THAT I have p r a c t i c e d my p r o f e s s i o n of g e o l o g i s t f o r the

p a s t 29 y e a r s i n Canada, the U.S.A., M e x i c o , P e r u , C o l o m b i a

and C h i l e .

4) THAT I have no i n t e r e s t i n the James p r o p e r t y nor do I h o l d

any s h a r e s o f Ampac Pe t r o l e u m R e s o u r c e s I n c .

6) THAT I h e r e b y g r a n t p e r m i s s i o n f o r t h e use of t h i s r e p o r t

i n a p r o s p e c t u s or i n a st a t e m e n t of m a t e r i a l f a c t s .

6) THAT t h e i n f o r m a t i o n c o n t a i n e d i n t h i s r e p o r t was c o m p i l e d

as a r e s u l t of my e x a m i n a t i o n of t h e a d j o i n i n g B o r n i t e

p r o p e r t y on November 9, 1982 and my f a m i l i a r i t y w i t h t he

program c a r r i e d out t h e r e o n .

BIBLIOGRAPHY

1) PHENDLER, R.W., P. Eng. - "Report on t h e B o r n i t e p r o p e r t y ,

Kamloops M i n i n g D i v i s i o n , B r i t i s h C o l u m b i a " f o r Mix Re­

s o u r c e s L t d . - November 22, 1982.

2) PHENDLER, R.W., P. Eng. - " P r o g r e s s Report on the B o r n i t e

P r o p e r t y , Kamloops, B.C." - J u l y 15, 1983.

3) GAME, R. - "Report on the B o r n i t e P r o p e r t y , Savona, B.C."

August 26, 1983.

4) PHENDLER, R.W., P. Eng. - "Report on the Edna P r o p e r t y ,

Kamloops M i n i n g D i v i s i o n , B r i t i s h C o l u m b i a " f o r V a l c l a i r

R e s o u r c e s L t d . - February 20, 1984.

5) PHENDLER, R.W. - "Geochemical S u r v e y , Edna C l a i m , Kamloops

B.C." - A p r i l 9, 1984.

- 11 -

PROPERTY I Com* CEOCKEMicAl

J/VMES PROPERTY of

AMPAC PETROLEUM RESOURCES MC

SCALE l'-?O0OO

R.W. PHENDLER, P. Eng., GEOLOGICAL CONSULTANT. EXPLORATION A N D MINING

7360 DECOURCY CRES.. RICHMOND, B.C. V 7 C 4 E 9 (804)271-2588

Nov 3,1984

Ampac P e t r o l e u m R e s o u r c e s , I n c . , 860 - 625 Howe S t . , Vancouver,B.C.

A t t e n t i o n M r . R . P e t e r s e n

Re: P r o g r e s s Report (Geochemical SurveyYJames P r o p e r t y .

D u r i n g September,1984 a ge o c h e m i c a l s u r v e y (copper and

s i l v e r ) was c a r r i e d out over about f o u r w e s t e r n u n i t s of the twenty-

u n i t James p r o p e r t y of Ampac P e t r o l e u m R e s o u r c e s , I n c . . w h i c h i s

l o c a t e d 34 k i l o m e t e r s northwest o f Kamloops i n c e n t r a l B r i t i s h

C o l u m b i a .

i m m e d i a t e l y e a s t o f and a l o n g s t r i k e from c o p p e r - s i l v e r b e a r i n g

shear zones w h i c h a r e l o c a t e d on t h e a d j o i n i n g B o r n i t e p r o p e r t y .

spaced e a s t - w e s t l i n e s . The g r i d t o t a l l e d 10.5 k i l o m e t e r s and

s o i l samples were t a k e n on 50 meter c e n t e r s .

R e s u l t s a r e as f o l l o w s :

COPPER

Kamloops M i n i n g D i v i s i o n , B r i t i s h C o l u m b i a

Gentlemen:

The p r o p e r t y l i e s on the n o r t h shore of Kamloops Lake

A f l a g g e d g r i d was e s t a b l i s h e d w i t h one hundred meter

C a t e g o r y Range Number of samples

Background 0 - 2 9 ppm 129

T h r e s h o l d 30 - 39 ppm 45

Anomalous above 40 ppm 21

T o t a l 195

The p r i n c i p a l copper s o i l anomaly c o n s i s t s of n i n e

anomalous samples c o v e r i n g an a r e a 500 meters l o n g (N-S) by

150 meters (E-W). I t i s a s s o c i a t e d w i t h t h r e e s m a l l e r a n o m a l i e s

which a r e a l l e n c l o s e d by an a r e a of t h r e s h o l d v a l u e s m e a s u r i n g

800 meters (E-W) by 400 - 600 meters (N-S). T h i s a r e a of i n t e r e s t

i s open t o the so u t h and i s l o c a t e d on the eastward s t r i k e e x t e n ­

s i o n of the B o r n i t e v e i n system.

F i v e s i n g l e anomalous v a l u e s o c c u r i n the n o r t h p a r t of the

a r e a s u r v e y e d and appear t o l i e w i t h i n a s m a l l c r e e k v a l l e y .

SILVER C a t e g o r y Range No. o f samples

Background 0 - 0 . 8 ppm 185

Anomalous 0.9 and above 10

T o t a l - 195 The t e n anomalous s i l v e r v a l u e s are grouped on the

e a s t l i m i t t o the a r e a of i n t e r e s t d e s c r i b e d above and a r e

un d o u b t e d l y r e l a t e d .

CONCLUSIONS

Phase I of the w r i t e r ' s o r i g i n a l recommendations (June 11,

1984) a r e now completed over t h e f a v o u r a b l e N i c o l a v o l c a n i c s w i t h

s u f f i c i e n t l y e n c o u r a g i n g r e s u l t s t o war r a n t a d d i t i o n a l work.

RECOMMENDATIONS

Phase I I 1) The g e o c h e m i c a l s u r v e y s h o u l d be completed

w i t h p r i o r i t y p l a c e d on the a r e a s o u t h of the s o i l

a n o m a l i e s .

2) An e l e c t r o m a g n e t i c s u r v e y s h o u l d be c a r r i e d out over

the g e o c h e m i c a l a n o m a l i e s .

- 2 -

3) Diamond d r i l l i n g o f c o - i n c i d e n t s o i l a n o m a l i e s and

E-M c o n d u c t o r s s h o u l d be c a r r i e d o u t .

Phase I I I (dependent on f a v o u r a b l e r e s u l t s from Phase I I )

1) A d d i t i o n a l diamond d r i l l i n g s h o u l d be c a r r i e d o u t .

COST ESTIMATE

Phase I I

1) Geochemical s u r v e y $4,000

2) VLF e l e c t r o m a g n e t i c s u r v e y 4,000

3) Diamond d r i l l i n g - 500 f e e t 6 $ 2 0 / f o o t . . . 10,000

4) E n g i n e e r i n g , G e o l o g y . A s s a y s 3,000

5) T r a v e l and accomodation 2,000

T o t a l 23,000

C o n t i n g e n c i e s (Approx 1 0 % ) . . 2,000

T o t a l , P h a s e I I $25,000

Phase I I I (dependent on f a v o u r a b l e r e s u l t s from Phase I I )

1) Diamond d r i l l i n g -1,000 f e e t e $ 2 0 / f o o t . $20,000

2) E n g i n e e r i n g . G e o l o g y . A s s a y s 2,000

3) T r a v e l and accomodation 1,000

T o t a l 23,000

C o n t i n g e n c i e s (Approx 1 0 % ) . . 2,000

T o t a l , P h a s e I I I . . . $ 2 5 ,000

The sum of $25,000 s h o u l d be made a v a i l a b l e at t h i s time

t o c a r r y out Phase I I of the above program. A l t h o u g h the w r i t e r ' s

o r i g i n a l r e p o r t (June 11,1984) recommended a $50,000 Phase I I ,

s o f t e r s i l v e r p r i c e s and the modest r e s u l t s from Phase I d i c t a t e

t h a t t he $25,000 recommended f o r Phase I I i n t h i s p r o g r e s s r e p o r t cis-

i s more r e a l i s t i c .

P^MMpf .P.Eng. 3 ^ G T N T ^

C E R T I F I C A T I O N

I , R.W. PHENDLER, P. Eng., o f t h e M u n i c i p a l i t y of Richmond, i n

th e P r o v i n c e of B r i t i s h C o l u m b i a , do hereby c e r t i f y :

1) THAT I am a member o f t h e A s s o c i a t i o n o f P r o f e s s i o n a l E n g i ­

n e e r s o f B r i t i s h C o l u m b i a .

2) THAT I am a g r a d u a t e o f M c G i l l U n i v e r s i t y , M o n t r e a l , w i t h a

B a c h e l o r of S c i e n c e degree i n Geology.

3) THAT I have p r a c t i c e d my p r o f e s s i o n of g e o l o g i s t f o r t h e

p a s t 29 y e a r s i n Canada, the U.S.A., M e x i c o , P e r u , C o l o m b i a

and C h i l e .

4) THAT I have no i n t e r e s t i n t h e James p r o p e r t y nor do I h o l d

any s h a r e s o f Ampac P e t r o l e u m Resources I n c .

6) THAT I hereby g r a n t p e r m i s s i o n f o r the use o f t h i s r e p o r t

i n a p r o s p e c t u s o r i n a s t a t e m e n t of m a t e r i a l f a c t s .

6) THAT t h e i n f o r m a t i o n c o n t a i n e d i n t h i s r e p o r t was c o m p i l e d

as a r e s u l t o f my e x a m i n a t i o n of the a d j o i n i n g B o r n i t e

p r o p e r t y on November 9, 1982 and my f a m i l i a r i t y w i t h the

program c a r r i e d out t h e r e o n .

-4 -

CltTC* CEOCMEMfCflL

JAMES PROPERTY o f

AMPAC PETROLEUM RESOUlCeilC K^LOOPS Mf ^ DlV.*K A S H GOLDMfclfc

?.W.PUENDIER.PEN6

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