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Vault 246374 Claim Group John Bakus / Chris Graf Event 5544344
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March 5, 2015 Sookochoff Consultants Inc. Page 1 of 39
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JOHN BAKUS / CHRIS GRAF
(Owners)
JOHN BAKUS
(Operator)
GEOLOGICAL ASSESSMENT REPORT
(Event 5544344)
on a
STRUCTURAL ANALYSIS
on
Tenures 246374 & 246382
(Work done from February 20, 2015 to February 23, 2015)
of the two claim
Vault 246374 Claim Group
Osoyoos Mining Division
BCGS Map 082.032/.033
Centre of Work
5,471,550N, 310,812E (NAD 83)
AUTHOR & CONSULTANT
Laurence Sookochoff, PEng
Sookochoff Consultants Inc.
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TABLE OF CONTENTS
page
Summary ----------------------------------------------------------------------------- 4.
Introduction ------------------------------------------------------------------------- 5.
Property Location and Description ----------------------------------------------- 5.
Accessibility, Climate, Local Resources, Infrastructure and Physiography - 7.
Water and Power ------------------------------------------------------------------- 7.
History: Property Area ------------------------------------------------------------- 7.
082ESW006 – MORNING STAR -------------------------------------- 7.
082ESW007 – STEMWINDER ----------------------------------------- 8.
082ESW010 – GRANDORO -------------------------------------------- 9.
082ESW078 – DUSTY MAC ------------------------------------------- 10.
082ESW094 – BEV ------------------------------------------------------- 11.
082ESW113 – ORO FINO MOUNTAIN ------------------------------ 11.
History: Property ------------------------------------------------------------------- 11.
082ESW173 – VAULT --------------------------------------------------- 11.
Geology: Regional ------------------------------------------------------------------ 12.
Geology: Property Area ----------------------------------------------------------- 13.
082ESW006 – MORNING STAR -------------------------------------- 13.
082ESW007 – STEMWINDER ----------------------------------------- 15.
082ESW010 – GRANDORO -------------------------------------------- 16.
082ESW078 – DUSTY MAC ------------------------------------------- 17.
082ESW094 – BEV ------------------------------------------------------- 17.
082ESW113 – ORO FINO MOUNTAIN ------------------------------ 18.
Geology: Property ------------------------------------------------------------------ 18.
082ESW173 – VAULT --------------------------------------------------- 19.
Mineralization: Property Area ---------------------------------------------------- 21.
082ESW006 – MORNING STAR -------------------------------------- 22.
082ESW007 – STEMWINDER ----------------------------------------- 23.
082ESW010 – GRANDORO -------------------------------------------- 25.
082ESW078 – DUSTY MAC ------------------------------------------- 27.
082ESW094 – BEV ------------------------------------------------------- 28.
082ESW113 – ORO FINO MOUNTAIN ------------------------------ 28.
Mineralization: Property ----------------------------------------------------------- 29.
082ESW173 – VAULT --------------------------------------------------- 29.
Structural Analysis ----------------------------------------------------------------- 32.
Interpretation and Conclusions --------------------------------------------------- 34.
Selected References ---------------------------------------------------------------- 37.
Statement of Costs ------------------------------------------------------------------ 38.
Certificate ---------------------------------------------------------------------------- 39.
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Table of Contents (cont’d)
ILLUSTRATIONS page
Figure 1. Location Map -------------------------------------------------- 5.
Figure 2. Claim Location ------------------------------------------------ 6.
Figure 3. Claim Map ------------------------------------------------------ 6.
Figure 4. Geology, Claim, Index & Minfile --------------------------- 13.
Figure 5. Geology of the Okanagan Valley --------------------------- 19.
Figure 6. Epithermal and mesothermal fluid relationships ---------- 21.
Figure 7. Indicated Structures on Tenure 246374 & 246382 ------- 31.
Figure 8. Rose Diagram from Lineaments of Tenure 246374 ------ 31.
Figure 9. Minfile and cross structural locations on Google Earth -- 33.
Figure 10.Vault mineral zone conceptual model ---------------------- 36.
TABLES
Table I Tenures of the Vault 246374 Claim Group ------------------ 5.
Table II Summary of Minfile properties on and peripheral
to the Vault 246374 Claim Group -------------------------- 30.
Table III Approximate UTM locations of Minfiles
& cross-structures --------------------------------------------- 34.
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SUMMARY
The two claim Vault 246374 Claim Group covering a 300. hectare area, is located 252 kilometres east-
of Vancouver, 15 kilometres south of Penticton, and within four kilometres of the past productive
Dusty Mac mine in southern British Columbia.
The Dusty Mac mineral deposit is an epithermal gold-silver, and polymetallic veined silver-lead-zinc
+/- gold past producer which stemmed from exploration in the early 1900’s as evidenced by four short
adits driven on quartz veins hosting chalcopyrite and pyrite mineralization. Sporadic exploration of the
mineral zone resulted in the delineation of reserves sufficient for production. From 1975 to 1976 open-
pit mining and custom milling of 93,295 tonnes resulted in a recovery of 10,552,750 grams silver and
606,006 grams of gold in addition to lesser amounts of copper and lead. Thereafter, periodic
exploration of the Dusty Mac mineral zones continued to 2005 when Ecstall Mining conducted about
1,400 metres of drilling in the mine area.
The Dusty Mac main mineralized zone, a gently dipping northwest trending lens of quartz breccia with
varying admixtures of crushed andesite, appears to be largely controlled by an important system of
reverse faults with quartz veins present in or adjacent to most of the main faults. The main feeder zone
has not been determined but indicated to be a northerly trending structure that may have played a role
in localizing mineralization.
Current Minfile records report an inventory of 1,550,000 tonnes grading 2.49 grams per tonne gold at
the Main Vein and 152,000 tonnes grading 14.00 grams gold at the North Vein.
At the Vault 246374 Claim Group, development of the Vault mineral prospect was initiated in 1983 by
Riocanex after the Vault 1 claim was staked in 1982 based on the prior observance of quartz veining
and an associated gossan zone. Most of the exploration was completed in 1985 when 24,505 metres of
drilling was completed in 72 holes which resulted in the delineation of an epithermal gold area of 2.95
by 1.64 kilometres.
At the Vault developed prospect, it appears that the feeder zone to the epithermal mineralization
has not been determined. Even though the mineralization is structurally controlled by major
northeast and east trending faults and related parallel fracture systems, it is in part lithologically
controlled, confined primarily to tuffaceous, agglomeratic and brecciated rocks. Thus, it appears
that the mineralized structures and rocks were just a suitable host to epithermal fluids sourced from
a potential feeder zone that is yet to be located.
The greatest potential for the central portion of a feeder zone should be at cross-structural
intersection between major structures where the maximum depth would be achieved to tap,
provide open spaces and a main conduit for the hydrothermal system to create an epithermal
and/or related mineral zones (Figure 10)
The three cross-structures delineated within Tenure 246374 (the fourth being in a cultilage area)
would be the prime locations to explore for surficial indications of a potential feeder system for an
epithermal system or for indications of a deep-seated intrusive related copper-gold porphyry.
However, prior to the exploration of the three cross-structural locations: firstly, the Dusty Mac
open-pit should be examined and all relevant information to the mineral deposit should be studied;
secondly, the same procedure would apply to the Vault mineral zone; thirdly, the mesothermal
mineral zones of the Oro Fino and the Fairview Camp should be studied - if not from the field, from
the pertinent reports; finally, the exploration of the three cross-structural locations on Tenure
246374.
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INTRODUCTION
During February 2015 a structural analysis was completed on Tenures 246374 and 246382 of the two
claim Vault 246374 Claim Group (Property). The purpose of the program was to delineate potential
structures which may be integral in geological controls to potentially economic mineral zones that may
occur on Tenures 246374 and 246382.
Information for this report was obtained from sources as cited under Selected References.
Figure 1. Location Map
(Map from MapPlace)
PROPERTY LOCATION AND DESCRIPTION
Location
The Vault 246374 Claim Group is located within BCGS Map 092E.032/.033/.100 of the Osoyoos
Mining Division 252 kilometres east of Vancouver, 15 kilometres south of Penticton, and within four
kilometres of the past productive Dusty Mac Mine.
Description
The Property is comprised of two contiguous claims covering an area of 300 hectares. Particulars are as
follows:
Table I. Tenures of the Vault 246374 Claim Group
Tenure Number Type Claim Name Good Until Area (ha)
246374 Mineral VAULT #1 20230801 200
246382 Mineral VAULT 3 20230801 100
*Upon the approval of the assessment work filing, Event Number 5544344.
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Figure 2. Claim Location
(Base Map from MapPlace & Google Earth)
Figure 3. Claim Map
(Base map from MapPlace)
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ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE
AND PHYSIOGRAPHY
Access
Access to the Vault 246374 Claim Group is southward via Highway 97 from Penticton for 10
kilometres to the northern boundary.
Climate
The Penticton area experiences a semi-arid steppe climate with average yearly temperatures ranging
from -4ºC to 30ºC. The warm season lasts from June 15 to September 6 with an average daily high
temperature above 24°C. The hottest day of the year is July 30, with an average high of 30°C and low
of 15°C.
The cold season lasts from November 16 to February 26 with an average daily high temperature below
6°C. The coldest day of the year is December 28, with an average low of -4°C and high of 0°C.
Over the entire year, the most common forms of precipitation are light rain, light snow, and moderate
rain.
Light rain is the most severe precipitation observed during 46% of those days with precipitation. It is
most likely around May 14, when it is observed during 28% of all days.
Light snow is the most severe precipitation observed during 23% of those days with precipitation. It is
most likely around December 24, when it is observed during 36% of all days.
Moderate rain is the most severe precipitation observed during 15% of those days with precipitation. It
is most likely around June 7, when it is observed during 10% of all days.
Local Resources and Infrastructure
All the resources necessary for a preliminary exploration program would be available at Penticton
Physiography
Most of Tenure 246374 covers an area of gentle to moderate sloped forested hills with elevations
ranging from 434 metres in the southeast to 648 metres in the southeast. Tenure 246382 mainly covers
farmland with some lightly forested slopes in the east with elevations ranging from 420 metres in the
southwest to 528 metres in the northeast.
WATER & POWER
Sufficient water for all phases of the exploration program could be available from lakes and creeks,
which are located within the confines of the Vault 246374 Claim Group.
A 550KV power line is within 13 kilometres south of the Vault 246374 Claim Group.
HISTORY: PROPERTY AREA
The history on some of the more significant mineral MINFILE reported mineral showings and past
producers peripheral to the Vault 246374 Claim Group are reported as follows
MORNING STAR (FAIRVIEW) Past Producer (Polymetallic veins Ag-Pb-Zn+/-Au,
Au-quartz veins, Silica veins)
MINFILE 082ESW006
Eighteen kilometres south
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History: Property Area (cont’d)
Morning Star (Fairview) Past Producer (cont’d)
The former Morning Star mine is located 1.75 kilometres south of Burnell Lake and 4.5 kilometres
west of Oliver, British Columbia.
The Morning Star occurrence is part of the Fairview mining camp, one of the oldest in British
Columbia. The earliest lode vein discoveries were made in the late 1880s with the earliest claims
staked prior to 1891. By 1933, the Morning Star claim group consisted of 10 claims: Morning Star
(Lot 443), Morning Star Fraction, Evening Star (Lot 543), Evening Star Fraction, August (Lot 1050),
Black Diamond (Lot 578), Duchess, Ocean Wave (Lot 854), Star and Princess. The Reco and Quartz
Queen claims are associated with the Morning Star occurrence and were reported to have been
explored by 15-metre tunnels in 1896.
This claim was one of the first to be developed in the Fairview mining camp. The earliest work is
believed to have been conducted on the South vein. The Morning Star occurrence occurs at the
lowest elevation in the Fairview mining camp, the main shaft collar being 244 metres lower than
the adits at the Stemwinder occurrence (082ESW007).
STEMWINDER (FAIRVIEW) Past Producer (Polymetallic veins Ag-Pb-Zn+/-Au,
Au-quartz veins)
MINFILE 082ESW007
Eighteen kilometres south
The Stemwinder claim group was discovered and staked in 1888. The claim group, owned by G.
Sheehan and associates, was composed of the Stemset Fr. (Lot 21s), Gunsite (Lot 25s), Stemwinder
(Lot 384), and Brown Bear (Lot 385) and the Wynn M. (Lot 554) owned by E.D. Reynolds. Claims
owned by Sheehan were Crown granted in 1892, 1896 and 1906. The Wynn M. was Crown granted
in 1894. A small amount of ore were mined and milled in a small 5-stamp mill on Reed Creek and
owned by Strathyre Mining Co. Ltd. Mill operations were expanded in 1896 to a 10-stamp mill and
the Brown Bear and Wynn M. claims were purchased. These claims were held until 1907. The
Stemwinder claim was purchased by the Fairview Consolidated Gold Mines Co. in 1897.
Underground development up to 1901 totalled about 1220 metres. The Tinhorn (082ESW005) and
Joe Dandy (082ESW161) stamp mills were purchased and installed on the Stemwinder. The mill
was expanded to 46 stamps in 1902. In 1903, a cyanide recovery plant was installed to increase
gold recovery. Operations ceased in 1904. In 1906, the Stemwinder Gold and Coal Mining Co. Ltd.
acquired the Stemwinder property and further development work was carried out. The Brown Bear
and Wynn M. claims were also purchased from Strathyre Mining Co. Ltd. in 1906 and operations on
these claims ceased in 1908. By 1930, the claims were owned by Federal Mining Co. Morning Star
(Fairview) Gold Mines, Ltd. optioned the property in 1934. The old workings were dewatered to
the 500 level and sampled. The option was subsequently dropped. Fairview Gold Mines Ltd.
acquired the property.
In 1960, Cominco Ltd. acquired a 10 year lease with a potential 10 year extension on the
Stemwinder. A total of 352 metres of diamond drilling was conducted in 6 holes. The lease was
dropped in 1972.
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History: Property Area (cont’d)
Stemwinder (Fairview) Past Producer (cont’d)
Cominco Ltd obtained a second option on the Stemwinder property from Fairview Mining Co. Ltd.,
a subsidiary of Asarco Inc. Between 1982 to 1984, 27 diamond-drill holes totalling 4155 metres
were drilled, exploring the Stemwinder vein system over a strike length of 1341 metres. In 1985,
Highland Valley Resources Ltd. optioned the Stemwinder claim group. Exploration included drifting
from the Central adit and Brown Bear claim. Solomon Gold Corp. acquired an agreement with
Highland Valley Resources Ltd. to acquire a 50 per cent interest in the property in 1988. In 1991
and 1994 Oliver Gold Corp. conducted exploration drilling on veins on the Brown Bear and Silver
Crown claims. The 1991 drill program consisted of 1472 metres in 21 holes approximately 100
metres apart. Fifteen of these drillholes were on the Brown Bear zone, the remaining on the Silver
Crown and Morning Star claims (082ESW005). The 1994 program consisted of 13 drillholes
totalling 1083 metres to test the HW and Main veins in the vicinity of the Brown Bear and Silver
Crown adits.
In 1960, Cominco Ltd. acquired a 10 year lease with a potential 10 year extension on the
Stemwinder. A total of 352 metres of diamond drilling was conducted in 6 holes. The lease was
dropped in 1972. Cominco Ltd obtained a second option on the Stemwinder property from
Fairview Mining Co. Ltd., a subsidiary of Asarco Inc. Between 1982 to 1984, 27 diamond-drill holes
totalling 4155 metres were drilled, exploring the Stemwinder vein system over a strike length of
1341 metres. In 1985, Highland Valley Resources Ltd. optioned the Stemwinder claim group.
Exploration included drifting from the Central adit and Brown Bear claim. Solomon Gold Corp.
acquired an agreement with Highland Valley Resources Ltd. to acquire a 50 per cent interest in the
property in 1988. In 1991 and 1994 Oliver Gold Corp. conducted exploration drilling on veins on
the Brown Bear and Silver Crown claims. The 1991 drill program consisted of 1472 metres in 21
holes approximately 100 metres apart. Fifteen of these drillholes were on the Brown Bear zone,
the remaining on the Silver Crown and Morning Star claims (082ESW005). The 1994 program
consisted of 13 drillholes totalling 1083 metres to test the HW and Main veins in the vicinity of the
Brown Bear and Silver Crown adits.
GRANDORO (ORO FINO) Past Producer (Polymetallic veins Ag-Pb-Zn+/-Au,
Au-quartz veins)
MINFILE 082ESW010
Twelve kilometres south
The Grandoro occurrence is located 1.5 kilometres north of the peak of Orofino Mountain, 13
kilometres northeast of Keremeos, British Columbia. It is one of three main occurrences forming
the historic Orofino Mountain gold camp.
Orofino Mountain gold camp activity began shortly after the Fairview camp was discovered in the
1880s. Prospecting began in the area in the 1890s. In 1896, Watkin and Winkler trenched and
excavated a 3.6-metre shaft on the Oro Fino claim. By 1898, Oro Fino Mines Ltd. had acquired
the Oro Fino (Lot 1448) and Independence (Lot 1449) claims and carried out more than 122
metres of development work. A 3-stamp mill was erected and a small amount of ore was tested.
The claims were Crown granted in 1900. Oro Fino Mining Co. Ltd. was formed in 1930 and the
property was optioned to Somerville and associates.
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History: Property Area (cont’d)
Grandoro (Oro Fino) Past Producer (cont’d)
Opencuts and a new adit on the Independence claim intersected some high-grade ore. Grandoro
Mining and Milling Co. Ltd. acquired the property in 1931. The new adit was extended and a
winze sunk 73 metres. A lower adit was driven 91 metres. A small amount of ore was tested at
the neighbouring Twin Lakes property (082ESW011). Grandoro Mines Ltd. acquired the property
in 1934 and a winze was sunk 45.7 metres on the Oro Fino claim. A 76.2-metre west drift and a
61.0-metre east drift were driven. Ore was mined in 1934 and tested at the Twin Lakes mill in
1935. Gold Standard Fairview Mining Co. Ltd. leased the property in 1936, with additional ore
milled. The property was leased again from 1938 to 1941 with ore shipped in the latter two
years. Drifting intersected ore in 1941 and 15-metre section of ore was stoped. The claims,
owned by M. Hatfield, and the surrounding Orofino Mountain property, owned by G. Crooker,
were optioned by Brightwork Resources Inc. in 1988.
DUSTY MAC Past Producer (Polymetallic veins Ag-Pb-Zn+/-Au, H05:
Epithermal Au-Ag: low sulphidation)
MINFILE 082ESW078
Four kilometres southwest
Exploration on the Dusty Mac dates back to the turn of the century, as evidenced by four short
adits, driven on quartz veins with chalcopyrite and pyrite, and several opencuts near the western
side of the property, overlooking Okanagan Falls. Native silver was discovered in veins on the
property in 1966 and the property restaked. Dusty Mac Mines Ltd. acquired the property in 1968.
As a result of property exploration in 1968 and 1969, 61,485 tonnes of reserves graded 7.88 grams
per tonne gold and 170.4 grams per tonne silver (Assessment Report 20078). The property was
optioned to Noranda Exploration Ltd. in 1970. In 1974, reserves were estimated to be 120,280
tonnes of ore grading 7.06 grams per tonne gold and 123.4 grams per tonne silver, based on 3319
metres of diamond drilling. An additional 21,521 tonnes grading 4.59 grams per tonne gold and
57.59 grams per tonne silver was indicated. In April 1975, an agreement was reached for custom
milling the Dusty Mac ore at the Dankoe mill (082ESW005; Tinhorn). Open pit production started
August 1, 1975 and ceased in June 1976. Milling was completed June 9, 1976 and reclamation of
the mine area was finished on September 21, 1976. Further exploration was carried out in 1976 by
Amadeus Consultants Ltd. Canex Placer Ltd. and Scintrex Ltd. conducted induced polarization
surveys in 1976 and 1981 respectively. Esso Minerals conducted exploration in 1985 and 1986.
Minnova Inc. optioned the property in 1987 and conducted further property exploration until 1989.
Ecstall Mining Corp. optioned the property in May, 2002.
In 2003, Ecstall Mining Corp. and Eldorado Gold Corp. drilled 513 metres in 5 holes beneath and
adjacent to the mine. The 2003 holes were designed to test a structural reinterpretation of vein
geometries in that area. Unfortunately, several of the holes did not reach bedrock due to thick
overburden and were abandoned. The other holes were unsuccessful in locating the veins and
Eldorado dropped the option.
In 2005, Ecstall Mining Corp conducted about 1400 metres of drilling in the mine area. Results have
not been published.
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History: Property Area (cont’d)
BEV showing (Polymetallic veins Ag-Pb-Zn+/-Au)
MINFILE 082ESW094
Two kilometres east
Line-cutting was done on the claims in 1969 but no record could be found describing any
mineralization. Tectonic breccia, silicification, quartz veins and gossan occur at several locations
northwest from the Dusty Mac and which may occur on the Bev claims (Bulletin 61, Figure 5.1).
ORO FINO MOUNTAIN Past Producer (Au-quartz veins,
Polymetallic veins Ag-Pb-Zn+/-Au, Sedimentary Mn, Rhodonite)
MINFILE 082ESW0113
Twelve kilometres south
The Orofino Mountain occurrence is located 1.5 kilometres north of the peak of Orofino Mountain,
12 kilometres northeast of Keremeos, British Columbia. It is one of three main occurrences forming
the historic Orofino Mountain gold camp.
Orofino Mountain gold camp activity began shortly after the Fairview camp was discovered in the
1880s. Considerable development work was carried out between 1930 and 1941. The occurrence
was part of the King claim group, which in its early days was known as the King showing. The first
reported activity on the King showing occurred in 1938 under lease to J. Wukelick from Gold
Standard Fairview Mining Co. Ltd. Two 9.1-metre shafts and an adit were developed and sorted
ore was shipped. The Lower King adit is about 50 metres length and the Upper King adit is 25
metres long. Another shipment of sorted ore is reported made in 1940. Interest in the property
was revived in 1973 when the King showing was restaked as the Hill 2-5 claims by D.W. Wieweger.
A geochemical soil sampling program was carried out by Cripple Creek Resources Ltd. on the Hill 3
and 5 claims. The property was restaked as the Mo claim in 1976 by G. Crooker. Trenching
revealed rhodonite mineralization. The King claim group was subsequently staked around the Mo
claim. DRC Resources Corp. carried out an extensive exploration program between 1981 and 1984.
In 1986, Grandex resources Ltd. optioned the property and conducted extensive property
exploration in 1986 and 1987. In 1998-99, G.F. Crooker collected stream sediment samples from
the major drainages on the property, and a grid was established over a portion of the King 5
mineral claim and magnetic and VLF-EM surveys carried out. The 1999 work program consisted of
completing the grid and magnetic and VLF-EM surveys on the King 5 mineral claim.
HISTORY: PROPERTY
VAULT Developed Prospect (Epithermal Au-Ag: low sulphidation;
Polymetallic veins Ag-Pb-Zn+/-Au)
MINFILE 082ESW173
Within Tenure 246347
The Vault developed prospect is located 500 metres west of Highway 97 along Skaha Lake, 4
kilometres northwest of Okanagan Falls, British Columbia.
Quartz veining and an associated gossan were observed by B.N. Church of the British Columbia
Geological Survey Branch.
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History: Property (cont’d)
Vault Developed Prospect (cont’d)
The Vault 1 claim was subsequently staked in 1982 by M. Morrison. Riocanex Inc. optioned the
property and staked the Vault 2-5 claims. In 1983, Riocanex Inc. drilled the Discovery zone and
subsequently dropped their option. Dome Mines Ltd. acquired an option, conducted further
property exploration, then also allowed their option to lapse. In 1985, Seven Mile High Resources
Inc. optioned the property conducting further exploration. A drill program was completed,
consisting of 24,505 metres in 72 holes. In 1989, the company name was changed to Seven Mile
High Group Inc. Inco Gold earned a 60 per cent interest in the property.
Drilling by Seven Mile High Resources Inc. outlined an area 2.95 by 1.64 kilometres of epithermal
gold mineralization.
In 1998, Winslow Gold Corp. acquired an option from Aqua Regia Mineral to earn 51% interest in
the Vault property by completing $300,000 exploration, over 4 years.
GEOLOGY: REGIONAL (From Melnyk, 1985)
The interior of British Columbia is characterized by many fault bounded Tertiary basins which
form a belt 160 km s wide and 800 kms long from the Republic mining district to Babine Lake in
central British Columbia. The basins are typically infilled with felsic-mafic volcanic and
sedimentary rocks of Eocene age. The name Penticton Group has been proposed for Eocene
volcanic and sedimentary rocks of the Okanagan-Boundary region. The Group consists of six well-
defined formations having an aggregate thickness of about 2500 meters in the type area near
Penticton. At the base are polymictic conglomerates and breccias referred to as the Springbrook
Formation and coeval beds of the Kettle River Formation consisting of granite boulder
conglomerate, rhyolite, breccia, and tuffaceous sedimentary rocks. Above this is the Marron
Formation composed mainly of thick andesite, trachyte, and phonolitic lava flows, succeeding
upward by dacitic and andesitic domes of the Marama Formation. This is followed by volcanic
breccias and lacustrine and fluvial sedimentary rocks of the White Lake Formation and,
uppermost, the Skaha Formation consisting of a landslide complex and fanglomerate beds. The
Group rests unconformably on pre-Tertiary granitoids, metamorphosed Mesozoic sedimentary and
volcanic rocks, and older schists and gneisses.
GENERAL STRUCTURE
Studies of the Tertiary basins (Church, 1973, 1975) have indicated that they have been influenced
during the course of their development by major normal faults-some of which show vertical
displacement of several hundreds of meters. In general, structural control of the Tertiary outliers
seem to relate to a herring-bone pattern of conjugate shears of NE and NW orientation.
These appear to be important elements in a north/south stress scheme responsible for many
northerly trending graben structures extending across the interior of the Province. Tertiary rocks
in the vicinity of the White Lake map area are intersected by gravity faults. The region is divided
into three structural zones by the Marron fault system which follows Marron Valley southeasterly
to Marron Lake; here it splits into a weak easterly trending branch which passes into the
Okanagan Valley, and a strong southwesterly trending branch which passes near Twin Lakes and
extends into the Similkameen Valley.
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Geology: Regional (cont’d)
Structural zone A, the area west of the Marron fault and the Twin Lakes branch, is relatively
simple. Typically, the strata here are thin, dip gently east, and are displaced mainly by northerly
trending gravity faults with easterly down throw. Structural zone B, the area between the Twin
Lakes branch and the easterly trending branch of t h e Marron fault system, is somewhat complex.
The strata are folded to form the White Lake syncline which is open and plunges gently to the east.
The beds are cut by gravity faults of widely varying trends which show mainly westerly or northerly
down throw. Reverse faults are developed where strata are especially thick such as on the north
limb of White Lake syncline. Some northerly trending faults in the southeast part of zone B show
strike-slip displacement. Rocks only in the southern part of zone C were examined by Church.
The Tertiary pile is thin on the west along the axis of an anticline and thick near the south end of
Skaha Lake, site of t h e Okanagan Falls syncline. Both folds are open and plunge southeastward. A
northerly trending reverse fault, immediately west of the south end of Skaha Lake, is possibly due to
concentric folding of thick strata
GEOLOGY: PROPERTY AREA
The geology on some of the more significant mineral MINFILE reported mineral showings and past
producers peripheral to the Vault 246374 Claim Group are reported as follows
MORNING STAR (FAIRVIEW) Past Producer (Polymetallic veins Ag-Pb-Zn+/-Au,
Au-quartz veins, Silica veins)
MINFILE 082ESW006
Eighteen kilometres south
The Morning Star occurrence lies within the Okanagan Terrane of the Intermontane tectonic belt.
Polydeformed and regionally metamorphosed rocks of the Carboniferous to Permian Kobau Group
dominantly underlie the area. Highly deformed, low grade metamorphic quartzite, phyllite, schist,
greenstone and marble comprise the main units of a 1900-metre structure succession. Three phases
of fold have been identified in the Kobau Group rocks. The initial phase of folding was coincident with
pre-Jurassic regional metamorphism, whereas later phases of folding are related to intrusive activity.
The main intrusions in the Fairview camp are the Jurassic Oliver granite and the Jurassic to Cretaceous
Fairview granodiorite. The Oliver pluton is heterogeneous and is composed of biotite-hornblende
granite, porphyritic biotite granite, garnet-muscovite granite, porphyritic quartz monzonite and
syenite. Other intrusive phases cutting the Kobau Group metasediments and volcanics include aplite
dikes, granitic, dioritic and mafic stocks, auriferous quartz veins related to Jurassic intrusions and
Tertiary northeast-trending mafic dikes.
Auriferous quartz veins occur along a strike length of 4 kilometres within the Fairview mining camp,
with three main areas being mined between 1895 and 1961. The veins are hosted in all rock types but
are thickest and most continuous where they occur in the quartzites of the Kobau Group. Some
significant veining also occurs within the intrusive bodies. Tertiary faults crosscut all lithologies
including the quartz veins.
The Morning Star mine area is underlain by a northwest trending sequence of quartzite layers
separated by biotite-rich layers overlain by a mafic unit consisting of chloritic mica schists with minor
interbedded quartzose layers.
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Figure 4. Geology, Claim, Index & Minfile
(Base Map from MapPlace)
GEOLOGY MAP LEGEND
Pleistocene to Recent
EPeK
Eocene-Penticton Group
Kettle River, Springbrook Formations
mudstone, siltstone, shale fine clastic
sedimentary rocks
EPeMK
Eocene-Penticton Group
Marron, Kettle River, Springbrook,
Manama, & Skaha Formations
undivided volcanic rocks
Cretaceous
Kgd
Unnamed granodioritic intrusive rocks
Proterozoic
Prg
Unnamed granitic, alkalitic feldspar
intrusive rocks
Geology: Property Area (cont’d)
Morning Star (Fairview) Past Producer (cont’d)
A series of dacite porphyry dikes and sills occur parallel to foliation. The stratigraphy is tightly
squeezed and strongly foliated at 100 to 130 degrees between the Oliver Plutonic Complex granite to
the north and the Fairview intrusion granodiorite to the south-southwest. Dips are to the northeast at
50 to 65 degrees. Regional foliation (S1) trends 130 degrees and parallels the quartz veins. A later
fracture cleavage (S2), trends 000 degrees to 020 degrees and dips 50 to 70 degrees west.
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Geology: Property Area (cont’d)
Morning Star (Fairview) Past Producer (cont’d)
Faulting of at least two separate ages is common throughout the area. The oldest faults parallel the
regional foliation. They are commonly graphitic, usually filled with clay and/or sand gouge and often
have associated caving. Direction of movement has not been determined. A large number of younger
faults, possibly Tertiary in age, are also common.
Mineralization is confined to a quartz vein system which is generally conformable to penetrative
fabrics developed in the Kobau Group hostrocks and display a variety of early ductile and later brittle
deformation features. The vein system has been traced over 4 kilometres from the Morning Star
northwest to the former Stemwinder mine (082ESW007) and the former Fairview mine (082ESW008).
The veining consists of two dominant veins, often with a third or fourth present. They occur in the
quartzite sequence, usually near the Fairview intrusion granodiorite contact. Individual veins reach up
to 9.1 metres thick and pinch and swell both along strike and downdip. The East vein was found to be
faulted above the No. 1 level.
Fluid inclusion and stable isotope studies at the Morning Star occurrence indicate mesothermal fluids
were responsible for mineralization events. The fluids are characterized by a high carbon dioxide
content, temperatures of 280 to 330 degrees Celsius, salinities of 4 to 6 weight per cent NaCl and
oxygen del 18 values of 4 to 6 per mil (relative to standard mean ocean water). The mineralization
occurred at depths of 3 to 4 kilometres.
At the former Morning Star mine two quartz veins, the West (Main) vein and East vein, are 27 to 61
metres apart and occur locally concordant to the regional foliation but cut lithologic contacts at very
low angles. The veins are fractured and irregular with quartz stringers and iron oxide staining in
opencuts and outcrop. The principal vein, the West vein, strikes 315 degrees and dips 45 to 55
degrees northeast and outcrops just west of the main shaft. It has a maximum width of 9.1 metres
and has been traced over about 76 metres on surface and in underground workings. The East vein is
northeast of and parallel to the West vein and has been traced over 427 metres on surface and in
underground workings. The vein width is considerably variable; the maximum being about 4.2
metres. Locally it consists of several quartz stringers comprising a zone 0.6 metre wide.
STEMWINDER (FAIRVIEW) Past Producer (Polymetallic veins Ag-Pb-Zn+/-Au,
Au-quartz veins)
MINFILE 082ESW007
Eighteen kilometres south
Regionally, the area is underlain by a northwest trending, narrow elongate belt of complexly
deformed, regionally metamorphosed Carboniferous to Permian Kobau Group metasedimentary
and metavolcanic rocks which separate two large intrusive bodies; the Jurassic Oliver Plutonic
Complex granite to the northeast and the Jurassic to Cretaceous Fairview intrusion granodiorite to
the southwest. Both plutons cut the lithologies and structures of the Kobau Group. The Kobau
Group rocks comprise banded and foliated quartzitic lithologies with minor mafic schists, and thick,
compositionally layered mafic schist units with intercalated quartzite bands. Minor meta-
carbonates and mafic metavolcanic flows or sills occur within the quartzites and schists which have
undergone at least three phases of folding and later brittle faulting.
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Geology: Property Area (cont’d)
Stemwinder (Fairview) Past Producer (cont’d)
The metasedimentary-volcanic package is cut by aplite dikes, small granitic, dioritic and mafic
stocks, and Tertiary northeast trending mafic dikes. Dacite dikes occur in swarms and are parallel
to the regional compositional layering within the Kobau Group rocks east of the Fairview intrusion.
Auriferous quartz veins occur in all lithologies but are thickest and most continuous where they
occur in the quartzites. Some significant veining also occurs in the intrusive bodies. Tertiary faults
crosscut all lithologies including the quartz veins.
The Stemwinder mine area is underlain by a northwest trending sequence of three distinct
lithologic units: an upper 'green argillite' primarily composed of chlorite with variable amounts of
biotite and narrow quartzite laminations; an underlying central grey quartzite that varies from
cherty quartzite to banded quartzite, laminated with fine and coarse biotite; and a lower, 'dark
argillite' that is essentially a massive greenstone. A series of intermediate to felsic dikes parallel to
foliation occur in this sequence.
The stratigraphy is tightly squeezed and strongly foliated at 100 to 130 degrees between Oliver
Plutonic Complex granite to the north and Fairview intrusion granodiorite to the south. Dips are to
the northeast at 50 to 65 degrees. Small scale isoclinal folding can be seen in the sedimentary and
volcanic units as well as the quartz veins. Regional foliation (S1) which trends 130 degrees,
parallels both the quartz veins and the sericite-biotite-graphite-sulphide- filled fractures commonly
found within the veins. These vein fractures may represent axial planar cleavage related to the
small scale isoclinal folding and regional foliation developed during emplacement of the Fairview
granodiorite. A later fracture cleavage (S2), trends 000 degrees to 020 degrees and dips 50 to 70
degrees west. It is especially evident in quartz veins and is possibly related to late faulting.
Faulting of at least two separate ages is common throughout the Stemwinder mine area. The
oldest faults parallel the regional foliation and are best developed in the area of quartz veining
where they are located on both the top and bottom of the quartz veins. They are commonly
graphitic, usually filled with clay and/or sand gouge and often have associated caving. Slickensides
on fault planes within the quartz veins typically have a southeast plunge at 30 to 40 degrees.
Direction of movement has not been determined. A large number of younger faults, possibly
Tertiary in age, are common throughout the mine workings. Many of the larger faults are left-
lateral reverse faults that offset the quartz veins approximately 18 metres horizontally. The
vertical component of movement is unknown. The faults, like the quartz veins, have a considerable
roll, often flattening substantially over short distances. Normal faults which seem to be about the
same age or slightly younger than the reverse faults occur throughout the mine and may reflect a
'relaxing' of compressional forces.
GRANDORO (ORO FINO) Past Producer (Polymetallic veins Ag-Pb-Zn+/-Au,
Au-quartz veins)
MINFILE 082ESW010
Twelve kilometres south
The Grandoro property is located within the Intermontane Belt near its eastern boundary with the
Omineca Belt.
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Geology: Property Area (cont’d)
Grandoro (Oro Fino) Past Producer (cont’d)
The property is underlain by complexly deformed metamorphic rocks of the Carboniferous to
Permian Kobau Group, and west and northwest trending sequences of quartzite, chert and
greenstone belonging to the Carboniferous to Triassic Shoemaker and Old Tom formations. These
are intruded by gabbroic to granitic rocks of the Middle Jurassic Nelson plutonic complex and
Similkameen batholith, Jurassic Oliver plutonic complex and Jurassic to Cretaceous Fairview
intrusion. Eocene vesicular basalts of the Marron Formation, Penticton Group are block-faulted
against older rocks on the north and west sides of the property.
On the northwestern slopes of Orofino Mountain, the oldest rocks are quartzite of the Kobau
Group. Light grey, massive to thinly bedded quartzites of the Shoemaker Formation form two
relatively narrow bands which strike west and northwest, and dip mainly to the southwest at 70 to
80 degrees.
DUSTY MAC Past Producer (Polymetallic veins Ag-Pb-Zn+/-Au, H05:
Epithermal Au-Ag: low sulphidation)
MINFILE 082ESW078
Four kilometres southwest
The Dusty Mac property lies within the eastern part of the White Lake basin, a thick accumulation
of Eocene Penticton Group volcanic rocks, interlayered with clastic sedimentary rocks which are
largely of volcanic derivation. The Eocene rocks rest unconformably on Triassic metavolcanic and
metasedimentary rocks of the Independence, Old Tom and Shoemaker formations, and Jurassic
granitic intrusions. The White Lake basin forms a topographic low and is truncated by early gravity
faults. The units generally dip to the east and are folded and faulted.
The hostrocks at Dusty Mac belong to the Eocene White Lake Formation of the upper part of the
Penticton group. This unit consists of light coloured pyroclastic rocks, thick feldspathic andesite
lahar deposits, minor andesitic lavas, and minor sandstones and carbonaceous shales. In the
immediate area, these overlie older Eocene Marama Formation volcanics, composed mainly of
massive rhyodacite lava.
These units are on the south limb of a southeasterly trending syncline. The beds have variable dips
ranging from about 30 to 55 degrees northeast. A strong cross fracture system strikes
approximately 010 degrees dipping about 80 degrees westerly almost perpendicular to the
synclinal axis.
BEV showing (Polymetallic veins Ag-Pb-Zn+/-Au)
MINFILE 082ESW094
Two kilometres east
The northern portion of the property is underlain by the Okanagan Gneiss complex. The Okanagan
gneiss consists dominantly of strongly foliated, hornblende, biotite granodiorite orthogneiss. The
orthogneiss is massive, resistant and weathers medium grey. The strong foliation locally grades to
mylonitic gneiss, mylonite and blastomylonite. Minor amphibolite and paragneiss are also present.
The gneiss is strongly chloritized along the Okanagan fault.
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Geology: Property Area (cont’d)
Bev showing (cont’d)
To the south, the Eocene Penticton Group consists of the Kitley Lake Member of the Marron
Formation and the overlying White Lake Formation. The Kitley Lake Member consists of massive,
yellow to buff, trachyte to trachyandesite. The White Lake Formation consists of light coloured
pyroclastic rocks, thick feldspathic andesite lahar deposits, minor andesitic lavas, and minor
sandstones and carbonaceous shales.
These units are on the south limb of a southeasterly trending syncline. The beds have variable dips
ranging from about 30 to 55 degrees northeast. A strong crossfracture system strikes
approximately 010 degrees dipping about 80 degrees westerly almost perpendicular to the
synclinal axis.
ORO FINO MOUNTAIN Past Producer (Au-quartz veins,
Polymetallic veins Ag-Pb-Zn+/-Au, Sedimentary Mn, Rhodonite)
MINFILE 082ESW0113
Twelve kilometres south
The Orofino Mountain property is located within the Intermontane tectonic belt near its eastern
boundary with the Omineca crystalline belt. The property is underlain by complexly deformed
metamorphic rocks of the Carboniferous to Permian Kobau Group, and west and northwest
trending sequences of quartzite, chert and greenstone belonging to the Carboniferous to Triassic
Shoemaker and Old Tom formations. These are intruded by gabbroic to granitic rocks of the
Middle Jurassic Nelson plutonic complex and Similkameen batholith, Jurassic Oliver plutonic
complex and Jurassic to Cretaceous Fairview intrusion
On the northwestern slopes of Orofino Mountain, the oldest rocks are quartzite of the Kobau
Group. Light grey, massive to thinly bedded quartzites of the Shoemaker Formation form two
relatively narrow bands which strike west and northwest, and dip mainly to the southwest at 70 to
80 degrees. These rocks are adjacent to altered dioritic rocks, varying from massive coarse-grained
hornblende gabbros and biotite diorite, to fine-grained biotite schist. Near the quartzite-diorite
contact, mineralized quartz veins strike north to northeast and dip moderately to steeply to the
southeast or steeply to the west.
The best mineralized veins in the Orofino Mountain gold camp appear to strike north to northeast
and dip 45 degrees southeast to near vertical. Trenching and drilling in 1987 have revealed a
complex fault pattern which displaces veins left-laterally by steep northeast faults or shallow
faults. The intersection of these faults with veins appears to structurally control gold values.
GEOLOGY: PROPERTY
The entire Vault 246374 Claim Group is underlain by the Eocene Penticton Group with a central
north-northwesterly band of the Kettle River and Springbrook Formations comprised of mudstone,
siltstone, shale, and fine clastic sedimentary rocks in fault contacts with the Marron, Kettle River,
Springbrook, Manama, and Skaha Formations of undivided volcanic rocks.
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Figure 5. Geology of Okanagan Valley showing location of Past Producers
(Map from Economic Geology Vol.84, 1989, pp 410-424)
Geology: Property (cont’d)
VAULT Developed Prospect (Epithermal Au-Ag: low sulphidation;
Polymetallic veins Ag-Pb-Zn+/-Au)
MINFILE 082ESW173
Within Tenure 246347
The Vault occurrence lies within the eastern part of the White Lake basin, a thick accumulation of
Eocene Penticton Group volcanic rocks, interlayered with clastic sedimentary rocks which are
largely of volcanic derivation. The Eocene rocks rest unconformably on Triassic metavolcanic and
metasedimentary rocks of the Independence, Old Tom and Shoemaker formations, and Jurassic
granitic intrusions. The White Lake basin forms a topographic low and is truncated by early
gravity faults. The units generally dip to the east and are folded and faulted.
The stratigraphic sequence on the Vault property includes the Kitley Lake Member at the base,
overlain by the Marama Formation, with the White Lake Formation at the top.
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Geology: Property (cont’d)
Vault Developed Prospect (cont’d)
The rocks are gently folded about northeasterly trending synclinal and anticlinal axes and offset
by northerly and northeasterly trending faults which form a step-like down dropped pattern.
Precious metal mineralization is related to an east-west oriented fracture system confined largely
to the lower Marama Formation.
The Kitley Lake Member consists of purplish brown to grey, fine grained, plagioclase porphyritic
lavas of trachyte to trachyandesite composition. The upper contact of this unit is strongly
weathered.
The overlying Marama Formation is the favourable host unit in which gold-silver mineralization
occurs, and is subdivided into upper and lower sections. At the base of the lower Marama is a
coarse pyroclastic and/or epiclastic unit. The section grades upward into a crudely alternating
sequence of coarse and fine grained, tuffaceous and fragmental rocks, believed to reflect repeated
explosive events. Much of this section varies from lapilli to ash tuff, with coarse fragments and
massive fine grained, trachyte porphyry flows intercalated with thin laminated mudstone and
siltstone. The flows display abundant, irregular clay and zeolite(?)-filled amygdules. In some areas
the tuff is broken into larger subrounded clasts that are probably the result of epiclastic processes.
At other localities the breccia has a random chaotic appearance, characteristic of laharic slumping
or debris flow.
The upper Marama is a massive, aphanitic dacite flow unit that is plagioclase porphyritic, with
alkali feldspar, minor hornblende and biotite. Some outcrops display flow banding and platy brittle
fracture. Sheeted dacite feeder dikes, averaging about 1 metre in width, intrude the dacite in the
central part of the property.
At the top of the Vault sequence the White Lake Formation consists of coarse agglomeratic and
laharic rocks interlayered with andesitic and trachytic flows, conglomerates and carbonaceous
mudstones.
Drill information indicates that alteration is dominated by an elongate zone of intense silicification
and stockwork veining occurring above the Kitley Lake Member/lower Marama Formation contact.
In drill core, the intensity of silicification appears to increase with the frequency of quartz veining.
Within the area of mineralization, silicification is pervasive and the replacement of wallrock by
chalcedonic quartz is locally evident. Clay alteration is common adjacent to fault zones and is
particularly notable as feldspar alteration in trachytic flows and breccias. Minor muscovite and
green micaceous minerals are also present in altered sections. Hematite, calcite and chlorite
alteration are poorly developed in all units and are usually confined to fractures, vein margins and
breccia matrix or fragments. Calcite veinlets usually crosscut silicic alteration and veining.
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MINERALIZATION: PROPERTY AREA
Genetic Models for Mineralization (From Zhang, et al, 1989)
From a comparison of the isotopic characteristics of the ore-forming fluids (Fig. 7), two distinct
mineralizing processes can be recognized. At Dusty Mac, the fluids had extremely low salinities, low

 and D, and very low CO2 contents. At Fairview and Oro Fino, the fluids had low salinities and

 values but substantially higher 
 values and CO2 contents. Two general terms, epithermal
(Dusty Mac) and mesothermal (Fairview and Oro Fino) are used here to describe these two styles of
mineralization in the Okanagan Valley area.
Figure 6. Epithermal and mesothermal fluid relationships
(Map from Economic Geology Vol.84, 1989, pp 410-424)
Mineralization: Property Area (cont’d)
The history on some of the more significant mineral MINFILE reported mineral showings and past
producers peripheral to the Vault 246374 Claim Group are reported as follows
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Mineralization: Property Area (cont’d)
MORNING STAR (FAIRVIEW) Past Producer (Polymetallic veins Ag-Pb-Zn+/-Au,
Au-quartz veins, Silica veins)
MINFILE 082ESW006
Eighteen kilometres south
Mineralization includes pyrite, visible gold, sphalerite and galena in a gangue of blue quartz. Gold
and silver values are closely associated with the presence of galena and sphalerite and appear to
increase with depth. However, spectacular gold values were reported near surface in 1930
(Minister of Mines Annual Report 1930, page A219). For the most part, the highest gold and silver
values occur in the hangingwall parts of the veins associated with bunches and narrow bands of
galena and sphalerite over widths of 1.2 to 1.5 metres, although significant values have been
obtained throughout the vein. Elsewhere, mineralization is disseminated.
In 1930, rough general sampling across 38 to 152 centimetres from underground workings were
reported to yield from 2.74 grams per tonne gold and 43.88 grams per tonne silver to 24.00 grams
per tonne gold and 153.60 grams per tonne silver (Minister of Mines Annual Report 1930, page
A219). In 1933, several samples were taken from the 200 level of the West shaft area on the East
vein. The average yield of these samples was 9.86 grams per tonne gold and 40.11 grams per
tonne silver over the width of the drift and along 54.9 metres length (Minister of Mines Annual
Report 1933, page A165).
By 1934, 6 ore shoots had been discovered. The first orebody commences 15 metres north of the
main shaft on the 101 level and extended 44 metres along a 1.4-metre wide drift. The average
grade, based on ore shipped, was 21.60 grams per tonne gold (Minister of Mines Annual Report
1934, page D13). The second shoot was located 19.8 metres south of the main shaft, was 22.86
metres long and averaged 1.16 metres wide. The ore averaged 22.28 grams per tonne gold
(Minister of Mines Annual Report 1934, page D13). The third shoot occurred 97.5 metres north of
the main shaft, was 3.65 metres long and averaged 1.5 metres wide. The average gold grade of
this ore shoot was 8.57 grams per tonne gold (Minister of Mines Annual Report 1934, page D13).
The fourth shoot was 164.6 metres north of the main shaft. The shoot was 13.40 metres long and
averaged 3.96 metres wide, producing gold values averaging 12.68 grams per tonne gold (Minister
of Mines Annual Report 1934, page D13).
The sixth ore shoot was discovered in 1934 and its length is unknown. The average width was 1.8
metres and face samples yielded 39.77 grams per tonne gold (Minister of Mines Annual Report
1934, page D13). A composite of 6 channel samples across 10.05 metres of quartz vein on No. 1
level assayed 11.07 grams per tonne gold and 30.50 grams per tonne silver (Property File - plan
map of underground sampling). The date this sample was taken is uncertain, but estimated to be
the late 1930s.
In 1991, a diamond-drill hole was completed as part of a 21 drillhole program by Fairview Gold
Corp. The hole was drilled to test the continuity of gold mineralization along the Fairview vein
system. Both the footwall and main veins were intersected but the hole was stopped short of the
hangingwall vein. The footwall vein is interpreted to host high grade gold mineralization at the
Morning Star occurrence.
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Mineralization: Property Area (cont’d)
Morning Star (Fairview) Past Producer (cont’d)
The main and hangingwall veins are barren. However, the highest drillhole intersection was over
the 4.71 metre interval between 107.49 and 112.2 metres yielding 0.17 gram per tonne gold and
1.71 grams per tonne silver (Assessment Report 21501). The vein was interpreted to correlate with
the main vein in underground workings.
A sample taken near the collar of the Black Diamond shaft in 1923 yielded 11.66 grams per tonne
gold and 102.86 grams per tonne silver (Minister of Mines Annual Report 1923, page A185).
Preliminary lead isotope studies indicate the mineralization is associated with quartz veins is
younger than or as young as the Oliver pluton (circa 155 Ma) (Fieldwork 1988, pages 19-25).
Early production records for the former Morning Star mine are conflicting. However in 1892, 349
tonnes of ore from the Morning Star was tested in the Strathyre mill. The owners of the Morning
Star occurrence were Mangott, McEachern and Leferve. The mill was leased in the following year
and another 907 tonnes of ore produced 7.25 tonnes of concentrate that was sent to the Tacoma
smelter. In 1895, 1814 tonnes was mined and produced 18 tonnes of concentrate. The provincial
records report 2450 tonnes of ore milled between 1892 and 1895 (Minister of Mines Annual Report
1897,
STEMWINDER (FAIRVIEW) Past Producer (Polymetallic veins Ag-Pb-Zn+/-Au,
Au-quartz veins)
MINFILE 082ESW007
Eighteen kilometres south
Mineralization is confined to a quartz vein system which is generally conformable to penetrative
fabrics developed in the Kobau Group hostrocks and display a variety of early ductile and later
brittle deformation features. The vein system has been traced over 4 kilometres from the Morning
Star mine (082ESW006) in the southeast through the Stemwinder to the Fairview mine
(082ESW008) in the northwest. The veining consists of two dominant veins often with a third or
fourth present. They occur in the middle quartzite sequence, usually within 60 metres of the
Fairview granodiorite contact. Veins intersected in drillholes usually occur within grey laminated
quartzite. Individual veins range from 0.30 up to 9 metres in thickness and pinch and swell rapidly
along short distances, both along strike and downdip. The quartz is white and either massive or
fractured and ribbon-textured.
The vein system is composed of the principal Main vein, the HW vein (Hangingwall or North vein)
and the FW vein (Footwall or South vein) and is evident at the Fairview mine and continues through
to the Stemwinder mine in the southeast. Several high-grade shoots occur within these veins.
Fluid inclusion and stable isotope studies at the Stemwinder occurrence indicate mesothermal
fluids were responsible for mineralization events. The fluids are characterized by a high carbon
dioxide content, temperatures of 280 to 330 degrees Celsius, salinities of 4 to 6 weight per cent
NaCl and oxygen del 18 values of 4 to 6 per mil (relative to standard mean ocean water). The
mineralization occurred at depths of 3 to 4 kilometres.
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Mineralization: Property Area (cont’d)
Stemwinder (Fairview) Past Producer (cont’d)
Gold and silver values occur in portions of the vein that contain pyrite, sphalerite, galena and
chalcopyrite, which occur along ribbon-textured fractures or as disseminations in quartz. Precious
metal grades show little preference for the hangingwall or footwall of the veins. Strong fracturing
parallel to foliation with graphite, sericite, chlorite and biotite fracture-fillings accompanies the
mineralized zones. Faulting parallel to the quartz vein zone may account for the rapid thickening
and thinning of the veins.
Gold and silver values are closely associated with the presence of galena with or without
chalcopyrite, sphalerite or pyrite. Galena, chalcopyrite, sphalerite and rare pyrrhotite are fracture-
controlled with most occurring along S1 fractures in quartz veins. A very small percentage also
occur along S2 fractures. For the most part, the best galena-chalcopyrite-sphalerite mineralization
and highest gold and silver values occur in the hangingwall parts of the veins, although significant
values have been obtained throughout the vein. Gold values are higher where the vein has well-
developed S1 fractures lined with sericite-biotite-chlorite-graphite and sulphides.
Three high-grade gold zones or shoots have been discovered within the complex vein system. The
Fairview Extension zone is located at the common boundary between the Fairview and Stemwinder
mines, namely on the Wynn M claim (Lot 554); the Stemwinder zone is located on the east edge of
the Stemwinder workings, namely the Stemwinder claim (Lot 384); and the Brown Bear zone
located in the north drift near the centre adit on the Brown Bear claim (Lot 385). These high-grade
gold zones are thought to plunge 60 degrees to the east on the Stemwinder property.
Drilling on the Fairview Extension zone over 427 metres strike length suggests it is an eastward and
downward extension of the Fairview ore zone. The zone appears to plunge eastward 20 to 30
degrees. Diamond drilling in 1982 on the Fairview Extension zone yielded 4.79 grams per tonne
gold, 44.22 grams per tonne silver across 1.37 metres (Main vein) and 1.64 grams per tonne gold,
25.02 grams per tonne silver across 1.06 metres (HW vein) (Property File - Cooke, D.L. (1987):
Report on the Stemwinder Mine Property).
The Stemwinder zone was intersected by drillholes to the east of the 200 level of the Stemwinder
workings. The zone is poorly defined due to faulting but has a defined strike length of 152 to 183
metres. The average grade of seven drill intersections yielded 4.04 grams per tonne gold and 45.60
grams per tonne silver (Cooke D.L., 1987). A channel sample across 0.97 metre of quartz vein
assayed 7.02 grams per tonne gold and 10.62 grams per tonne silver (Assessment Report 16779).
Channel samples from the Main vein and the HW vein in the Stemwinder zone assayed 5.89 grams
per tonne gold, 114.15 grams per tonne silver across 1.0 metre (true width) and 10.28 grams per
tonne gold, 185.11 grams per tonne silver across 0.87 metre, respectively (Assessment Report
16779).
The Brown Bear zone (Centre adit) differs somewhat from the other mineralized zones in that there
is a lack of dikes or sills and biotite is absent in hangingwall and footwall quartzites and along S1
fractures in quartz veins where sericite is more prevalent. Graphite is also less prevalent in S1
fractures and there is little folding evident in the quartz veining. The major left-lateral reverse fault
has apparent horizontal strike-slip offset of 110 metres.
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Mineralization: Property Area (cont’d)
Stemwinder (Fairview) Past Producer (cont’d)
In 1982, three intersections from two drillholes approximately 61 metres apart yielded an average
of 3.33 grams per tonne gold and 29.48 grams per tonne silver (Cooke, D.L., 1987). The results of
the 1991 drill program were as follows. On the Main vein, the average of six intersections in six
drillholes was 0.48 gram per tonne gold and 3.43 grams per tonne silver over an average true
thickness of 3.07 metres (Assessment Report 21501). On the HW vein, the average of 14
intersections from 13 drillholes was 0.99 gram per tonne gold and 6.17 grams per tonne silver over
a true thickness of 3.74 metres (Assessment Report 21501). The results of three drillholes in 1994
yielded an average of 2.67 grams per tonne gold and 10.97 grams per tonne silver over an average
true thickness of 1.83 metres on the HW vein. Intersections on the Main vein yielded 1.37 grams
per tonne gold and 4.11 grams per tonne over a true thickness of 0.91 metre (Assessment Report
23404).
Drilling by Cominco Ltd. and Asarco Exploration Company of Canada Ltd. between 1982 and 1984
outlined reserves of 640,000 tonnes of ore from the Main vein grading 3.8 grams per tonne gold
and 51.4 grams per tonne silver (Mineral Exploration Review 1986, page 63). The North vein was
estimated to contain reserves of 185,000 tonnes of ore grading 9.2 grams per tonne gold and 103
grams per tonne silver (Mineral Exploration Review 1986, page 63). In 1982, Cominco estimated
635,000 tonnes of reserves grading 3.43 grams per tonne gold in the Fairview Extension zone. The
Stemwinder zone was estimated to contain 181,000 tonnes of ore grading 4.11 grams per tonne
gold (Cooke, D.L., 1987).
Total recorded production between 1893 and 1956 from the former Stemwinder mine includes
27,947 tonnes mined and 27,666 tonnes milled from which 100,310 grams of gold, 532,797 grams
of silver, 3670 kilograms of lead and 249 kilograms of zinc were reported recovered. The amount of
gold recovered in 1893 and 1894 is calculated.
GRANDORO (ORO FINO) Past Producer (Polymetallic veins Ag-Pb-Zn+/-Au,
Au-quartz veins)
MINFILE 082ESW010
Twelve kilometres south
The best mineralized veins in the Orofino Mountain gold camp appear to strike north to northeast
and dip 45 degrees southeast to near vertical. Trenching and drilling in 1987 have revealed a
complex fault pattern which displaces veins left laterally by steep northeast faults or shallow faults.
The intersection of these faults with veins appears to structurally control gold values.
Fluid inclusion and stable isotope studies at the Grandoro occurrence indicate mesothermal fluids
were responsible for mineralization events. The fluids are characterized by a high carbon dioxide
content, temperatures of 280 to 330 degrees Celsius, salinities of 4 to 6 weight per cent NaCl and
oxygen del 18 values of 4 to 6 per mil (relative to standard mean ocean water). The mineralization
occurred at depths of 3 to 4 kilometres. In the 1930s, two underground workings, the Orofino adit
and the Lower and Upper Independence adits, were developed.
They exposed two northeasterly trending quartz veins within chloritized hornblende- rich gabbro
and diorite, and fine-grained biotite schist.
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Mineralization: Property Area (cont’d)
Grandoro (Oro Fino) Past Producer (cont’d)
In the Upper Independence adit, one vein strikes 160 degrees and dips 45 degrees southwest and
the other strikes 208 degrees and dips 30 degrees northwest. A shear at the south end of the adit
strikes 030 degrees and dips 60 degrees southeast. In the Orofino inclined adit the quartz vein
strikes 105 degrees and dips 50 degrees southwest. The vein width is variable, from 30 to 50
centimetres where exposed in the adit, but appears to pinch out in either direction. Veins are
reportedly highly fractured and lenticular, varying in width from 30 centimetres to 2.0 metres.
Mineralization consists of pyrite, lesser amounts of galena, and occasional rich pockets of free
gold.
In 1988, six trenches were excavated near the Upper Independence adit to trace the vein along
strike. Quartz veins were observed in trenches 1 and 16. The vein in Trench 16 was shear hosted
and was oriented different than other veins. Samples from Trench 1 yielded the best results.
Sample 16701 yielded 1.78 grams per tonne gold from a 1.0-metre channel sample of barren
quartz. Sample 16702 yielded 71.86 grams per tonne gold (Property File - Brightwork Resources
Inc. (1988): Prospectus). This sample, a 0.7-metre chip sample, was taken from the same location
as sample K-31 in 1981 which yielded 37.71 grams per tonne gold (Property File - Brightwork
Resources Inc. (1988): Prospectus). The remaining samples yielded up to 0.24 gram per tonne gold
(Property File - Brightwork Resources Inc. (1988): Prospectus). Three trenches were excavated on a
small quartz vein near the Orofino adit. Gold values obtained from trench samples ranged up to
0.03 gram per tonne (Property File - Brightwork Resources Inc. (1988): Prospectus). Samples from
several other trenches on the property yielded values ranging from 1.06 grams per tonne gold
(Property File - Brightwork Resources Inc. (1988): Prospectus).
Five samples were taken from the portal of the Lower Independence adit in 1988. The best results
were from sample 16895, which yielded 1.10 grams per tonne gold (Property File - Brightwork
Resources Inc. (1988): Prospectus). The sample was taken across a 10-centimetre barren quartz
vein, striking 124 degrees and dipping 10 degrees southwest. The vein is intersected by a shear
striking 035 degrees and dipping 10 degrees southeast. A total of 8 samples were taken from the
Upper Independence adit in 1988. Three of these samples yielded significant gold values. Sample
15630 yielded 0.89 gram per tonne gold, sample 15631 yielded 3.84 grams per tonne gold and
sample 15601 yielded 25.23 grams per tonne gold. Eight samples were taken from the Orofino adit
in 1988. The highest gold values were from four samples taken from the northwest face of the
adit. Sample 15607 yielded 4.35 grams per tonne. Sample 15623 yielded 3.02 grams per tonne;
sample 15625, 7.30 grams per tonne and sample 15626, 6.99 grams per tonne (Property File -
Brightwork Resources Inc. (1988): Prospectus).
Eight samples were taken from the Grandoro property in 1981. Chip sample K-31 over 0.70 metre
yielded 37.71 grams per tonne gold and 3.8 grams per tonne silver (Assessment Report 9933).
Ore mined and shipped to the Trail smelter in 1933 averaged 60.68 grams per tonne gold (Minister
of Mines Annual Report 1933, page 168). Intermittent total recorded production for the Grandoro
occurrence between 1899 and 1941 was 12,048 tonnes mined and 10,228 tonne milled. From this,
37,853 grams of silver, 123,698 grams of gold, 79 kilograms of lead and 5 kilograms of zinc were
recovered.
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Mineralization: Property Area (cont’d)
DUSTY MAC Past Producer (Polymetallic veins Ag-Pb-Zn+/-Au, H05:
Epithermal Au-Ag: low sulphidation)
MINFILE 082ESW078
Four kilometres southwest
At Dusty Mac, mineralization appears to be largely controlled by an important system of reverse
faults. The system trends southeast with interwoven eastern and southern striking segments and
splays. The direction and magnitude of movement on these faults are indicated by large thrust
slices of Marama lava which have been thrust outward and upward from the core of the syncline
through several hundreds of metres of White Lake strata. In the White Lake basin, reverse faulting
is thought to be the result of concentric folding and accommodation of the stratigraphic pile to
bedding plane slip (Bulletin 61). Quartz veins and gossans are present in or adjacent to most of the
main faults. The deposit consists of a lens-like zone of silicified volcanic rocks and sedimentary
debris containing minor disseminated pyrite, native silver, chalcopyrite, galena and sphalerite.
Also, some quartz veins on the property carry minor bornite and tetrahedrite.
The main mineralized zone is a gently dipping lens of quartz breccia with varying admixtures of
crushed andesite. The body is exposed over a length of approximately 213 metres striking roughly
140 degrees with a central cross-section width of about 48 metres and a maximum thickness of 9
metres. A similar large lens of quartz breccia is located approximately 762 metres northwest of the
main ore zone. Epithermal fluids from the Dusty Mac had a temperature of about 240 degrees
Celsius, a low salinity of about 0.5 weight per cent and an oxygen del 18 value between minus 7
and minus 9 per mil (relative to standard mean ocean water). The mineralization process probably
occurred at a depth of more than 380 metres (Zhang, 1986).
In 1989, five areas of mineralized and highly altered fault zones were diamond drilled (A, Adit,
Chalcedony, Sawmill and the Pit zones). Alteration consists of a distal propylitic assemblage
(chlorite, epidote) and more intense central alteration assemblages consisting of combinations of
sericitic, argillic (clay) and potassic alteration. These inner envelopes are generally well foliated
and have 2-15 per cent disseminated pyrite present. Various forms of multi-episodic silicification is
present in these fault zones. Silicification varies from discrete laminated chalcedony veins to quartz
breccia bodies and pervasive wallrock silicification. Commonly silicification contains pyrite,
chalcopyrite, galena, sphalerite, tetrahedrite and fluorite.
In the Chalcedony zone, laminated and brecciated chalcedonic quartz veins assayed as high as 7.73
grams per tonne gold and 7.4 grams per tonne silver over 1.5 metres in drill core (Assessment
Report 20078).
Total production from the Dusty Mac mine was 93,295 tonnes, grading 6.89 grams per tonne gold
and 146.59 grams per tonne silver with 10 per cent dilution (Assessment Report 20078). Recovery
included 606,006 grams of gold, 10,552,750 grams of silver, 2432 kilograms of copper, 2313
kilograms of lead and 242 kilograms of zinc.
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Mineralization: Property Area (cont’d)
BEV showing (Polymetallic veins Ag-Pb-Zn+/-Au)
MINFILE 082ESW094
Two kilometres east
Line-cutting was done on the claims in 1969 but no record could be found describing any
mineralization. Tectonic breccia, silicification, quartz veins and gossan occur at several locations
northwest from the Dusty Mac and which may occur on the Bev claims (Bulletin 61, Figure 5.1).
ORO FINO MOUNTAIN Past Producer (Au-quartz veins,
Polymetallic veins Ag-Pb-Zn+/-Au, Sedimentary Mn, Rhodonite)
MINFILE 082ESW0113
Twelve kilometres south
The Lower King adit was driven 50 metres in a southerly direction. The vein strikes 042 degrees,
dips nearly vertical and varies from 0.6 to 1.5 metres width. Approximately 30 metres inside the
adit a 2-metre wide fault, west striking and dipping 57 degrees to the north, offsets the vein 5
metres. Quartz veins host pyrite, chalcopyrite, galena and native gold. In 1987, trenching has
established a strike length of 400 metres.
The Upper King adit is 27 metres long and follows a vertical, 0.1 to 1.4 metre wide quartz vein
striking 015 degrees along a shear zone. On the surface the vein is up to 2.7 metres wide and can
be traced for 95 metres. The vein is mainly white quartz with pyrite. Chalcopyrite, galena and
native gold are also present. The vein has been traced over a strike length of 100 metres by
trenching in 1987.
A 0.9-metre chip sample from the Lower King adit assayed 370 grams per tonne gold and 48 grams
per tonne silver (Assessment Report 9933). A similar sample from the Upper King adit, S2, assayed
8.4 grams per tonne gold (Assessment Report 11480). The sample was taken 20 metres from the
upper adit portal. Several significant intersections were encountered in seven drillholes during
1987 diamond drilling. Drillhole 87-1 intersected 0.23 metre of 9.22 grams per tonne gold over the
interval 50.65 to 50.88 metres (Assessment Report 16648). Drillhole 87-2 intersected 3.46 grams
per tonne gold over the 1.53 metre interval between 63.26 and 64.79 metres (Assessment Report
16648). The best intersection was from drillhole 89-5, which yielded 22.28 grams per tonne gold
over the 1.00 metre interval between 23.00 and 24.00 metres (Assessment Report 16648). Values
of up to 38.0 grams per tonne gold (30-003) were obtained in surface trenches (Assessment Report
16648). Geophysical and geochemical surveys indicated the extension of the structure.
In 1976, rhodonite was discovered on the Mo claim. The rhodonite occurs with quartz as irregular
replacement zones in the Shoemaker Formation. The largest lens is 75 metres long by up to 1
metre wide.
The total production from the Orofino Mountain occurrence is unknown. An estimated 1000 to
2000 tonnes ore was mined from the Lower King adit in 1933 and/or 1934 but not recorded.
Production in 1938 and 1940 is included with Grandoro (082ESW010). Production records indicate
a 3-tonne ore shipment to the Trail smelter in 1976. Recovery included 31 grams of gold, 69 grams
of silver, 3 kilograms of lead and 3 kilograms of zinc.
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MINERALIZATION: PROPERTY
VAULT Developed Prospect (Epithermal Au-Ag: low sulphidation;
Polymetallic veins Ag-Pb-Zn+/-Au)
MINFILE 082ESW173
Within Tenure 246347
Gold-silver mineralization is associated with a discontinuous, east trending, steeply dipping
quartz vein system on the north limb of a northeast-trending syncline. Veining is concentrated
primarily in lower Marama rocks, where the porosity and permeability of the volcanic breccias
and tuffs are highest, although a few minor gold-bearing veins have been encountered in the
Kitley Lake and upper Marama formations. Intense silicification and weak, very fine grained
pyritization accompanies much of the mineralization.
Near-surface mineralization, where silicification is less intense, is generally anomalous in precious
metals, but below an estimated economic grade of less than 3 grams per tonne gold. With
increased depth, silicification becomes more intense and the average grade increases to the 5-10
grams per tonne range, in places over substantial widths. Gold and silver are typically not visible
to the naked eye, but are considered likely to occur as native elements, or possibly as electrum.
Silver-gold ratios in the mineralized zones are highly variable, averaging 9.8:1. The ratios tend to
be lowest with higher gold values.
Veins in the main mineralized zone have typical adularia- sericite-type epithermal textures and
mineral assemblages. Finely banded and bladed chalcedonic quartz, ankeritic carbonate and
minor alkali feldspar (adularia) are the main vein components. Veins range in size from fine
irregular anastomosing veinlets a few millimetres thick, to larger veins about 10 centimetres
wide. Some exceptionally large veins are up to about 30 centimetres in width. They commonly
display multistage growth textures, such as scalloped colloform banding, bladed cockscomb
intergrowths and drusy cavities. Where the vein minerals occur as breccia matrix, some breccia
fragments are rimmed with finely banded quartz and occur in a matrix of black, grey and white
silica. Some of the most significant gold values are associated with complex multistage veining.
In a number of intersections the veins have been brecciated and subsequently rehealed by the
addition of banded silica. In other areas, banded quartz clasts are a significant component of the
breccia.
The sulphide content associated with mineralization is typically low, although some sections are
highly oxidized, with 5 to 10 per cent pyrite which is very fine grained and may occur as
disseminations, fracture or vein-breccia fillings and thin veinlets. Minor pyrrhotite with sphalerite
intergrowths is also associated with pyrite. Native gold is observed associated with pyrrhotite.
On a regional and vein scale, mineralization is structurally controlled by major northeast and
east-trending faults and related parallel fracture systems. It is, in part, lithologically controlled,
confined primarily to tuffaceous, agglomeratic and brecciated rocks of the lower Marama
Formation (Exploration in British Columbia 1988, pages B5-B13). Fluid inclusion and stable
isotope studies at the Vault occurrence indicate epithermal fluids were responsible for
mineralization events. The fluids are characterized by homogenization temperatures of 143 to
347 degrees Celsius, salinities of 0 to 3.4 weight per cent NaCl and oxygen del 18 values of minus
0.2 to 6.6 per mil (relative to standard mean ocean water).
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Table II. Summary of Minfile properties on and
peripheral to the Vault 246374 Claim Group
(see Figure 4 and 5 for property locations)
Property Dominant
host rock
Type Structure
VAULT
(Tenure
246374)
Volcanic
breccia & tuffs
of the Marama
Formation
Epithermal Au-Ag: low
sulphidation;
Polymetallic veins Ag-Pb-
Zn+/-Au)
Structurally controlled by
major northeast and east
trending faults
DUSTY MAC
(Four km
southwest)
Volcanic-
White Lake
Formation of
the Penticton
Group
Polymetallic veins Ag-Pb-
Zn+/-Au
Epithermal Au-Ag: low
sulphidation
Quartz breccia zone with
varying admixtures of
crushed andesite striking at
140 º
ORO FINO
(12 km south)
Grandoro Quartzites of
the Shoemaker
Formation of
the Kobau
Group
Polymetallic veins Ag-Pb-
Zn+/-Au
Au-quartz veins
Veins N-NE/45-90 SE
The intersection of northeast
trending faults with veins
appears to structurally
control gold values
Oro Fino Mtn. Quartzites of
the Shoemaker
Formation of
the Kobau
Group
Polymetallic veins Ag-Pb-
Zn+/-Au
Au-quartz veins
Veins N-NE/45-90 SE
The intersection of northeast
trending faults with veins
appears to structurally
control gold values
FAIRVIEW
CAMP
(18 km south)
Stemwinder Meta-
Sedimentary
Kobau Group
Polymetallic veins Ag-Pb-
Zn+/-Au,
Au-quartz veins
Quartz veins parallel
regional foliation at 130º;
Ribbon textured quartz
Morning Star Meta-
Sedimentary
Kobau Group
Polymetallic veins Ag-Pb-
Zn+/-Au, Silica veins,
Au-quartz veins
Quartz veins parallel
regional foliation at 130º;
Ribbon textured quartz
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Mineralization: Property(cont’d)
Vault Developed Prospect (cont’d)
The mineralization occurred at depths of 3 to 4 kilometres. Early stage homogenization
temperatures indicate the deposit likely formed around 270 degrees Celsius. Calculated oxygen-
18 isotope values suggest three types of fluids were involved with mineralization formation at the
Vault occurrence.
The Main zone is 600 metres long, 40 to 125 metres wide and 5 to 30 metres thick. The top of the
mineralization is 170 metres below surface at the west end and 500 metres below surface at the
east end.
Table II (cont’d) Summary of Minfile properties on and
peripheral to the Vault 246374 Claim Group
(see Figure 4 and 5 for property locations)
Property Production Recovery
tonnes g/Ag g/Au kg/Cu kg/Pb
DUSTY MAC 93,295 10,552,750 606,006 2,432 2,312
ORO FINO
Grandoro 10,228 37,853 123,698 79 5 kg Zn
Oro Fino Mtn. 3 29 31 3 kg Zn 3
FAIRVIEW CAMP
Stemwinder 27,666 532,797 100,310 249 kg Zn 3,670
Morning Star 22,143 965,530 252,687 926 1,894 kg Zn
Property Inventory
Tonnes Ag g/t Au g/t Cu % Pb%
VAULT- Main Vein 1,550,000 2.49
VAULT- North Vein 152,000 14.00
DUSTY MAC
ORO FINO
Grandoro Assay 3.84 g/t
Orofino Mountain No inventory
data
FAIRVIEW CAM
Stemwinder
(Combined)
816,000 3.77
Stemwinder
(North Vein)
185,000 103.00 9.20
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STRUCTURAL ANALYSIS
The structural analysis was performed on a DEM image hillshade map of Tenures 246374 & 246382
downloaded from MapPlace and marking the lineaments, or indicated structures, thereon. A total of 72
lineaments were marked, compiled into a 10 degree class interval, and plotted as a rose diagram.
The centre of Tenure 246374 and the work area is 5,471,550N, 310,812E (NAD 83).
Figure 7. Indicated Structures on Tenures 246374 & 246382
Figure 8. Rose Diagram from lineaments (Figure 7.) of Tenures 246374 & 246382.
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Structural Analysis (cont’d)
STATISTICS
Axial (non-polar) data
No. of Data = 72
Sector angle = 8°
Scale: tick interval = 3% [2.2 data]
Maximum = 20.8% [15 data]
Mean Resultant dir'n = 140-320
[Approx. 95% Confidence interval = ±19.0°]
(valid only for unimodal data)
_________________________
Mean Resultant dir'n = 139.9 - 319.9
Circ.Median = 135.5 - 315.5
Circ.Mean Dev.about median = 29.3°
Circ. Variance = 0.18
Circular Std.Dev. = 35.84°
Circ. Dispersion = 1.99
Circ.Std Error = 0.1662
Circ.Skewness = -0.94
Circ.Kurtosis = -19.32
kappa = 1.03
(von Mises concentration param. estimate)
Resultant length = 32.92
Mean Resultant length = 0.4572
'Mean' Moments: Cbar = 0.0777; Sbar = -0.4506
'Full' trig. sums: SumCos = 5.5925; Sbar = -32.4418
Mean resultant of doubled angles = 0.1684
Mean direction of doubled angles = 022
(Usage references: Mardia & Jupp,
'Directional Statistics', 1999, Wiley;
Fisher, 'Statistical Analysis of Circular Data',
1993, Cambridge University Press)
Note: The 95% confidence calculation uses
Fisher's (1993) 'large-sample method'
Figure 9. Minfile and cross structural locations on Google Earth
(Base Map: Google Earth)
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Structural Analysis (cont’d)
Table III Approximate UTM locations of cross-structures & Minfiles
(UTM-NAD 83)
Location UTM East UTM North Elevation (m)
A 310,863 5,471,210 477
B 312,178 5,471,489 413
C 310,716 5,471,600 503
D 310,300 5,471,660 496
Vault 310,485 5,471,835 518
Dusty Mac 315,090 5,468,926 457
INTERPRETATION and CONCLUSIONS
Four cross-structures that were delineated on the two claims of the Vault 246374 Claim Group would
be the most prospective areas to explore for surficial geological indicators of a concealed potential
economic mineral resource. The prime type of mineral deposit to be sought would be for a Dusty Mac
epithermal type with a bonanza gold and/or silver zone.
Although structures are important in the structural controls to mineralization as evidenced at the Vault
developed prospect where,
” … mineralization is structurally controlled by major northeast and east-trending faults and related
parallel fracture systems. (Minfile).,
cross-structures are more significant. A structural intersection can create a breccia or pseudo breccia
zone with an enveloping zone of increased fracture density which enhances the area for hydrothermal
fluid deposition and commonly is the central portion of a mineralized zone due to its increased
porosity and permeability. These structural controls are exemplified at the Grandoro past producer
(082ESW010) where,
“The intersection of these faults with veins appears to structurally control gold values.”(Minfile).
At the Dusty Mac (082ESW010), northwest, northeast, north, and west-northwest trending faults are
reported with an indicated larger north-south fault zone that,
“Although it may not represent the main feeder to the shallowly-dipping breccia ore that was
mined, its intersection with either northwest or west-northwest faults may have played a role in
localizing mineralization. (Bowen, 2003)”
In the search for potential gold-bearing structures,
“Hole 03-05 was designed to test for the presence of possible gold-bearing structures in an area
where two structural trends intersect.” (Bowen, 2003).
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2015 Vault Gold Okanagan Falls British Columbia tech MLS Mining

  • 1. __________________________________________________________________________________ Vault 246374 Claim Group John Bakus / Chris Graf Event 5544344 __________________________________________________________________________________ __________________________________________________________________________________ March 5, 2015 Sookochoff Consultants Inc. Page 1 of 39 __________________________________________________________________________________ JOHN BAKUS / CHRIS GRAF (Owners) JOHN BAKUS (Operator) GEOLOGICAL ASSESSMENT REPORT (Event 5544344) on a STRUCTURAL ANALYSIS on Tenures 246374 & 246382 (Work done from February 20, 2015 to February 23, 2015) of the two claim Vault 246374 Claim Group Osoyoos Mining Division BCGS Map 082.032/.033 Centre of Work 5,471,550N, 310,812E (NAD 83) AUTHOR & CONSULTANT Laurence Sookochoff, PEng Sookochoff Consultants Inc.
  • 2. __________________________________________________________________________________ Vault 246374 Claim Group John Bakus / Chris Graf Event 5544344 __________________________________________________________________________________ __________________________________________________________________________________ March 5, 2015 Sookochoff Consultants Inc. Page 2 of 39 __________________________________________________________________________________ TABLE OF CONTENTS page Summary ----------------------------------------------------------------------------- 4. Introduction ------------------------------------------------------------------------- 5. Property Location and Description ----------------------------------------------- 5. Accessibility, Climate, Local Resources, Infrastructure and Physiography - 7. Water and Power ------------------------------------------------------------------- 7. History: Property Area ------------------------------------------------------------- 7. 082ESW006 – MORNING STAR -------------------------------------- 7. 082ESW007 – STEMWINDER ----------------------------------------- 8. 082ESW010 – GRANDORO -------------------------------------------- 9. 082ESW078 – DUSTY MAC ------------------------------------------- 10. 082ESW094 – BEV ------------------------------------------------------- 11. 082ESW113 – ORO FINO MOUNTAIN ------------------------------ 11. History: Property ------------------------------------------------------------------- 11. 082ESW173 – VAULT --------------------------------------------------- 11. Geology: Regional ------------------------------------------------------------------ 12. Geology: Property Area ----------------------------------------------------------- 13. 082ESW006 – MORNING STAR -------------------------------------- 13. 082ESW007 – STEMWINDER ----------------------------------------- 15. 082ESW010 – GRANDORO -------------------------------------------- 16. 082ESW078 – DUSTY MAC ------------------------------------------- 17. 082ESW094 – BEV ------------------------------------------------------- 17. 082ESW113 – ORO FINO MOUNTAIN ------------------------------ 18. Geology: Property ------------------------------------------------------------------ 18. 082ESW173 – VAULT --------------------------------------------------- 19. Mineralization: Property Area ---------------------------------------------------- 21. 082ESW006 – MORNING STAR -------------------------------------- 22. 082ESW007 – STEMWINDER ----------------------------------------- 23. 082ESW010 – GRANDORO -------------------------------------------- 25. 082ESW078 – DUSTY MAC ------------------------------------------- 27. 082ESW094 – BEV ------------------------------------------------------- 28. 082ESW113 – ORO FINO MOUNTAIN ------------------------------ 28. Mineralization: Property ----------------------------------------------------------- 29. 082ESW173 – VAULT --------------------------------------------------- 29. Structural Analysis ----------------------------------------------------------------- 32. Interpretation and Conclusions --------------------------------------------------- 34. Selected References ---------------------------------------------------------------- 37. Statement of Costs ------------------------------------------------------------------ 38. Certificate ---------------------------------------------------------------------------- 39.
  • 3. __________________________________________________________________________________ Vault 246374 Claim Group John Bakus / Chris Graf Event 5544344 __________________________________________________________________________________ __________________________________________________________________________________ March 5, 2015 Sookochoff Consultants Inc. Page 3 of 39 __________________________________________________________________________________ Table of Contents (cont’d) ILLUSTRATIONS page Figure 1. Location Map -------------------------------------------------- 5. Figure 2. Claim Location ------------------------------------------------ 6. Figure 3. Claim Map ------------------------------------------------------ 6. Figure 4. Geology, Claim, Index & Minfile --------------------------- 13. Figure 5. Geology of the Okanagan Valley --------------------------- 19. Figure 6. Epithermal and mesothermal fluid relationships ---------- 21. Figure 7. Indicated Structures on Tenure 246374 & 246382 ------- 31. Figure 8. Rose Diagram from Lineaments of Tenure 246374 ------ 31. Figure 9. Minfile and cross structural locations on Google Earth -- 33. Figure 10.Vault mineral zone conceptual model ---------------------- 36. TABLES Table I Tenures of the Vault 246374 Claim Group ------------------ 5. Table II Summary of Minfile properties on and peripheral to the Vault 246374 Claim Group -------------------------- 30. Table III Approximate UTM locations of Minfiles & cross-structures --------------------------------------------- 34.
  • 4. __________________________________________________________________________________ Vault 246374 Claim Group John Bakus / Chris Graf Event 5544344 __________________________________________________________________________________ __________________________________________________________________________________ March 5, 2015 Sookochoff Consultants Inc. Page 4 of 39 __________________________________________________________________________________ SUMMARY The two claim Vault 246374 Claim Group covering a 300. hectare area, is located 252 kilometres east- of Vancouver, 15 kilometres south of Penticton, and within four kilometres of the past productive Dusty Mac mine in southern British Columbia. The Dusty Mac mineral deposit is an epithermal gold-silver, and polymetallic veined silver-lead-zinc +/- gold past producer which stemmed from exploration in the early 1900’s as evidenced by four short adits driven on quartz veins hosting chalcopyrite and pyrite mineralization. Sporadic exploration of the mineral zone resulted in the delineation of reserves sufficient for production. From 1975 to 1976 open- pit mining and custom milling of 93,295 tonnes resulted in a recovery of 10,552,750 grams silver and 606,006 grams of gold in addition to lesser amounts of copper and lead. Thereafter, periodic exploration of the Dusty Mac mineral zones continued to 2005 when Ecstall Mining conducted about 1,400 metres of drilling in the mine area. The Dusty Mac main mineralized zone, a gently dipping northwest trending lens of quartz breccia with varying admixtures of crushed andesite, appears to be largely controlled by an important system of reverse faults with quartz veins present in or adjacent to most of the main faults. The main feeder zone has not been determined but indicated to be a northerly trending structure that may have played a role in localizing mineralization. Current Minfile records report an inventory of 1,550,000 tonnes grading 2.49 grams per tonne gold at the Main Vein and 152,000 tonnes grading 14.00 grams gold at the North Vein. At the Vault 246374 Claim Group, development of the Vault mineral prospect was initiated in 1983 by Riocanex after the Vault 1 claim was staked in 1982 based on the prior observance of quartz veining and an associated gossan zone. Most of the exploration was completed in 1985 when 24,505 metres of drilling was completed in 72 holes which resulted in the delineation of an epithermal gold area of 2.95 by 1.64 kilometres. At the Vault developed prospect, it appears that the feeder zone to the epithermal mineralization has not been determined. Even though the mineralization is structurally controlled by major northeast and east trending faults and related parallel fracture systems, it is in part lithologically controlled, confined primarily to tuffaceous, agglomeratic and brecciated rocks. Thus, it appears that the mineralized structures and rocks were just a suitable host to epithermal fluids sourced from a potential feeder zone that is yet to be located. The greatest potential for the central portion of a feeder zone should be at cross-structural intersection between major structures where the maximum depth would be achieved to tap, provide open spaces and a main conduit for the hydrothermal system to create an epithermal and/or related mineral zones (Figure 10) The three cross-structures delineated within Tenure 246374 (the fourth being in a cultilage area) would be the prime locations to explore for surficial indications of a potential feeder system for an epithermal system or for indications of a deep-seated intrusive related copper-gold porphyry. However, prior to the exploration of the three cross-structural locations: firstly, the Dusty Mac open-pit should be examined and all relevant information to the mineral deposit should be studied; secondly, the same procedure would apply to the Vault mineral zone; thirdly, the mesothermal mineral zones of the Oro Fino and the Fairview Camp should be studied - if not from the field, from the pertinent reports; finally, the exploration of the three cross-structural locations on Tenure 246374.
  • 5. __________________________________________________________________________________ Vault 246374 Claim Group John Bakus / Chris Graf Event 5544344 __________________________________________________________________________________ __________________________________________________________________________________ March 5, 2015 Sookochoff Consultants Inc. Page 5 of 39 __________________________________________________________________________________ INTRODUCTION During February 2015 a structural analysis was completed on Tenures 246374 and 246382 of the two claim Vault 246374 Claim Group (Property). The purpose of the program was to delineate potential structures which may be integral in geological controls to potentially economic mineral zones that may occur on Tenures 246374 and 246382. Information for this report was obtained from sources as cited under Selected References. Figure 1. Location Map (Map from MapPlace) PROPERTY LOCATION AND DESCRIPTION Location The Vault 246374 Claim Group is located within BCGS Map 092E.032/.033/.100 of the Osoyoos Mining Division 252 kilometres east of Vancouver, 15 kilometres south of Penticton, and within four kilometres of the past productive Dusty Mac Mine. Description The Property is comprised of two contiguous claims covering an area of 300 hectares. Particulars are as follows: Table I. Tenures of the Vault 246374 Claim Group Tenure Number Type Claim Name Good Until Area (ha) 246374 Mineral VAULT #1 20230801 200 246382 Mineral VAULT 3 20230801 100 *Upon the approval of the assessment work filing, Event Number 5544344.
  • 6. __________________________________________________________________________________ Vault 246374 Claim Group John Bakus / Chris Graf Event 5544344 __________________________________________________________________________________ __________________________________________________________________________________ March 5, 2015 Sookochoff Consultants Inc. Page 6 of 39 __________________________________________________________________________________ Figure 2. Claim Location (Base Map from MapPlace & Google Earth) Figure 3. Claim Map (Base map from MapPlace)
  • 7. __________________________________________________________________________________ Vault 246374 Claim Group John Bakus / Chris Graf Event 5544344 __________________________________________________________________________________ __________________________________________________________________________________ March 5, 2015 Sookochoff Consultants Inc. Page 7 of 39 __________________________________________________________________________________ ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY Access Access to the Vault 246374 Claim Group is southward via Highway 97 from Penticton for 10 kilometres to the northern boundary. Climate The Penticton area experiences a semi-arid steppe climate with average yearly temperatures ranging from -4ºC to 30ºC. The warm season lasts from June 15 to September 6 with an average daily high temperature above 24°C. The hottest day of the year is July 30, with an average high of 30°C and low of 15°C. The cold season lasts from November 16 to February 26 with an average daily high temperature below 6°C. The coldest day of the year is December 28, with an average low of -4°C and high of 0°C. Over the entire year, the most common forms of precipitation are light rain, light snow, and moderate rain. Light rain is the most severe precipitation observed during 46% of those days with precipitation. It is most likely around May 14, when it is observed during 28% of all days. Light snow is the most severe precipitation observed during 23% of those days with precipitation. It is most likely around December 24, when it is observed during 36% of all days. Moderate rain is the most severe precipitation observed during 15% of those days with precipitation. It is most likely around June 7, when it is observed during 10% of all days. Local Resources and Infrastructure All the resources necessary for a preliminary exploration program would be available at Penticton Physiography Most of Tenure 246374 covers an area of gentle to moderate sloped forested hills with elevations ranging from 434 metres in the southeast to 648 metres in the southeast. Tenure 246382 mainly covers farmland with some lightly forested slopes in the east with elevations ranging from 420 metres in the southwest to 528 metres in the northeast. WATER & POWER Sufficient water for all phases of the exploration program could be available from lakes and creeks, which are located within the confines of the Vault 246374 Claim Group. A 550KV power line is within 13 kilometres south of the Vault 246374 Claim Group. HISTORY: PROPERTY AREA The history on some of the more significant mineral MINFILE reported mineral showings and past producers peripheral to the Vault 246374 Claim Group are reported as follows MORNING STAR (FAIRVIEW) Past Producer (Polymetallic veins Ag-Pb-Zn+/-Au, Au-quartz veins, Silica veins) MINFILE 082ESW006 Eighteen kilometres south
  • 8. __________________________________________________________________________________ Vault 246374 Claim Group John Bakus / Chris Graf Event 5544344 __________________________________________________________________________________ __________________________________________________________________________________ March 5, 2015 Sookochoff Consultants Inc. Page 8 of 39 __________________________________________________________________________________ History: Property Area (cont’d) Morning Star (Fairview) Past Producer (cont’d) The former Morning Star mine is located 1.75 kilometres south of Burnell Lake and 4.5 kilometres west of Oliver, British Columbia. The Morning Star occurrence is part of the Fairview mining camp, one of the oldest in British Columbia. The earliest lode vein discoveries were made in the late 1880s with the earliest claims staked prior to 1891. By 1933, the Morning Star claim group consisted of 10 claims: Morning Star (Lot 443), Morning Star Fraction, Evening Star (Lot 543), Evening Star Fraction, August (Lot 1050), Black Diamond (Lot 578), Duchess, Ocean Wave (Lot 854), Star and Princess. The Reco and Quartz Queen claims are associated with the Morning Star occurrence and were reported to have been explored by 15-metre tunnels in 1896. This claim was one of the first to be developed in the Fairview mining camp. The earliest work is believed to have been conducted on the South vein. The Morning Star occurrence occurs at the lowest elevation in the Fairview mining camp, the main shaft collar being 244 metres lower than the adits at the Stemwinder occurrence (082ESW007). STEMWINDER (FAIRVIEW) Past Producer (Polymetallic veins Ag-Pb-Zn+/-Au, Au-quartz veins) MINFILE 082ESW007 Eighteen kilometres south The Stemwinder claim group was discovered and staked in 1888. The claim group, owned by G. Sheehan and associates, was composed of the Stemset Fr. (Lot 21s), Gunsite (Lot 25s), Stemwinder (Lot 384), and Brown Bear (Lot 385) and the Wynn M. (Lot 554) owned by E.D. Reynolds. Claims owned by Sheehan were Crown granted in 1892, 1896 and 1906. The Wynn M. was Crown granted in 1894. A small amount of ore were mined and milled in a small 5-stamp mill on Reed Creek and owned by Strathyre Mining Co. Ltd. Mill operations were expanded in 1896 to a 10-stamp mill and the Brown Bear and Wynn M. claims were purchased. These claims were held until 1907. The Stemwinder claim was purchased by the Fairview Consolidated Gold Mines Co. in 1897. Underground development up to 1901 totalled about 1220 metres. The Tinhorn (082ESW005) and Joe Dandy (082ESW161) stamp mills were purchased and installed on the Stemwinder. The mill was expanded to 46 stamps in 1902. In 1903, a cyanide recovery plant was installed to increase gold recovery. Operations ceased in 1904. In 1906, the Stemwinder Gold and Coal Mining Co. Ltd. acquired the Stemwinder property and further development work was carried out. The Brown Bear and Wynn M. claims were also purchased from Strathyre Mining Co. Ltd. in 1906 and operations on these claims ceased in 1908. By 1930, the claims were owned by Federal Mining Co. Morning Star (Fairview) Gold Mines, Ltd. optioned the property in 1934. The old workings were dewatered to the 500 level and sampled. The option was subsequently dropped. Fairview Gold Mines Ltd. acquired the property. In 1960, Cominco Ltd. acquired a 10 year lease with a potential 10 year extension on the Stemwinder. A total of 352 metres of diamond drilling was conducted in 6 holes. The lease was dropped in 1972.
  • 9. __________________________________________________________________________________ Vault 246374 Claim Group John Bakus / Chris Graf Event 5544344 __________________________________________________________________________________ __________________________________________________________________________________ March 5, 2015 Sookochoff Consultants Inc. Page 9 of 39 __________________________________________________________________________________ History: Property Area (cont’d) Stemwinder (Fairview) Past Producer (cont’d) Cominco Ltd obtained a second option on the Stemwinder property from Fairview Mining Co. Ltd., a subsidiary of Asarco Inc. Between 1982 to 1984, 27 diamond-drill holes totalling 4155 metres were drilled, exploring the Stemwinder vein system over a strike length of 1341 metres. In 1985, Highland Valley Resources Ltd. optioned the Stemwinder claim group. Exploration included drifting from the Central adit and Brown Bear claim. Solomon Gold Corp. acquired an agreement with Highland Valley Resources Ltd. to acquire a 50 per cent interest in the property in 1988. In 1991 and 1994 Oliver Gold Corp. conducted exploration drilling on veins on the Brown Bear and Silver Crown claims. The 1991 drill program consisted of 1472 metres in 21 holes approximately 100 metres apart. Fifteen of these drillholes were on the Brown Bear zone, the remaining on the Silver Crown and Morning Star claims (082ESW005). The 1994 program consisted of 13 drillholes totalling 1083 metres to test the HW and Main veins in the vicinity of the Brown Bear and Silver Crown adits. In 1960, Cominco Ltd. acquired a 10 year lease with a potential 10 year extension on the Stemwinder. A total of 352 metres of diamond drilling was conducted in 6 holes. The lease was dropped in 1972. Cominco Ltd obtained a second option on the Stemwinder property from Fairview Mining Co. Ltd., a subsidiary of Asarco Inc. Between 1982 to 1984, 27 diamond-drill holes totalling 4155 metres were drilled, exploring the Stemwinder vein system over a strike length of 1341 metres. In 1985, Highland Valley Resources Ltd. optioned the Stemwinder claim group. Exploration included drifting from the Central adit and Brown Bear claim. Solomon Gold Corp. acquired an agreement with Highland Valley Resources Ltd. to acquire a 50 per cent interest in the property in 1988. In 1991 and 1994 Oliver Gold Corp. conducted exploration drilling on veins on the Brown Bear and Silver Crown claims. The 1991 drill program consisted of 1472 metres in 21 holes approximately 100 metres apart. Fifteen of these drillholes were on the Brown Bear zone, the remaining on the Silver Crown and Morning Star claims (082ESW005). The 1994 program consisted of 13 drillholes totalling 1083 metres to test the HW and Main veins in the vicinity of the Brown Bear and Silver Crown adits. GRANDORO (ORO FINO) Past Producer (Polymetallic veins Ag-Pb-Zn+/-Au, Au-quartz veins) MINFILE 082ESW010 Twelve kilometres south The Grandoro occurrence is located 1.5 kilometres north of the peak of Orofino Mountain, 13 kilometres northeast of Keremeos, British Columbia. It is one of three main occurrences forming the historic Orofino Mountain gold camp. Orofino Mountain gold camp activity began shortly after the Fairview camp was discovered in the 1880s. Prospecting began in the area in the 1890s. In 1896, Watkin and Winkler trenched and excavated a 3.6-metre shaft on the Oro Fino claim. By 1898, Oro Fino Mines Ltd. had acquired the Oro Fino (Lot 1448) and Independence (Lot 1449) claims and carried out more than 122 metres of development work. A 3-stamp mill was erected and a small amount of ore was tested. The claims were Crown granted in 1900. Oro Fino Mining Co. Ltd. was formed in 1930 and the property was optioned to Somerville and associates.
  • 10. __________________________________________________________________________________ Vault 246374 Claim Group John Bakus / Chris Graf Event 5544344 __________________________________________________________________________________ __________________________________________________________________________________ March 5, 2015 Sookochoff Consultants Inc. Page 10 of 39 __________________________________________________________________________________ History: Property Area (cont’d) Grandoro (Oro Fino) Past Producer (cont’d) Opencuts and a new adit on the Independence claim intersected some high-grade ore. Grandoro Mining and Milling Co. Ltd. acquired the property in 1931. The new adit was extended and a winze sunk 73 metres. A lower adit was driven 91 metres. A small amount of ore was tested at the neighbouring Twin Lakes property (082ESW011). Grandoro Mines Ltd. acquired the property in 1934 and a winze was sunk 45.7 metres on the Oro Fino claim. A 76.2-metre west drift and a 61.0-metre east drift were driven. Ore was mined in 1934 and tested at the Twin Lakes mill in 1935. Gold Standard Fairview Mining Co. Ltd. leased the property in 1936, with additional ore milled. The property was leased again from 1938 to 1941 with ore shipped in the latter two years. Drifting intersected ore in 1941 and 15-metre section of ore was stoped. The claims, owned by M. Hatfield, and the surrounding Orofino Mountain property, owned by G. Crooker, were optioned by Brightwork Resources Inc. in 1988. DUSTY MAC Past Producer (Polymetallic veins Ag-Pb-Zn+/-Au, H05: Epithermal Au-Ag: low sulphidation) MINFILE 082ESW078 Four kilometres southwest Exploration on the Dusty Mac dates back to the turn of the century, as evidenced by four short adits, driven on quartz veins with chalcopyrite and pyrite, and several opencuts near the western side of the property, overlooking Okanagan Falls. Native silver was discovered in veins on the property in 1966 and the property restaked. Dusty Mac Mines Ltd. acquired the property in 1968. As a result of property exploration in 1968 and 1969, 61,485 tonnes of reserves graded 7.88 grams per tonne gold and 170.4 grams per tonne silver (Assessment Report 20078). The property was optioned to Noranda Exploration Ltd. in 1970. In 1974, reserves were estimated to be 120,280 tonnes of ore grading 7.06 grams per tonne gold and 123.4 grams per tonne silver, based on 3319 metres of diamond drilling. An additional 21,521 tonnes grading 4.59 grams per tonne gold and 57.59 grams per tonne silver was indicated. In April 1975, an agreement was reached for custom milling the Dusty Mac ore at the Dankoe mill (082ESW005; Tinhorn). Open pit production started August 1, 1975 and ceased in June 1976. Milling was completed June 9, 1976 and reclamation of the mine area was finished on September 21, 1976. Further exploration was carried out in 1976 by Amadeus Consultants Ltd. Canex Placer Ltd. and Scintrex Ltd. conducted induced polarization surveys in 1976 and 1981 respectively. Esso Minerals conducted exploration in 1985 and 1986. Minnova Inc. optioned the property in 1987 and conducted further property exploration until 1989. Ecstall Mining Corp. optioned the property in May, 2002. In 2003, Ecstall Mining Corp. and Eldorado Gold Corp. drilled 513 metres in 5 holes beneath and adjacent to the mine. The 2003 holes were designed to test a structural reinterpretation of vein geometries in that area. Unfortunately, several of the holes did not reach bedrock due to thick overburden and were abandoned. The other holes were unsuccessful in locating the veins and Eldorado dropped the option. In 2005, Ecstall Mining Corp conducted about 1400 metres of drilling in the mine area. Results have not been published.
  • 11. __________________________________________________________________________________ Vault 246374 Claim Group John Bakus / Chris Graf Event 5544344 __________________________________________________________________________________ __________________________________________________________________________________ March 5, 2015 Sookochoff Consultants Inc. Page 11 of 39 __________________________________________________________________________________ History: Property Area (cont’d) BEV showing (Polymetallic veins Ag-Pb-Zn+/-Au) MINFILE 082ESW094 Two kilometres east Line-cutting was done on the claims in 1969 but no record could be found describing any mineralization. Tectonic breccia, silicification, quartz veins and gossan occur at several locations northwest from the Dusty Mac and which may occur on the Bev claims (Bulletin 61, Figure 5.1). ORO FINO MOUNTAIN Past Producer (Au-quartz veins, Polymetallic veins Ag-Pb-Zn+/-Au, Sedimentary Mn, Rhodonite) MINFILE 082ESW0113 Twelve kilometres south The Orofino Mountain occurrence is located 1.5 kilometres north of the peak of Orofino Mountain, 12 kilometres northeast of Keremeos, British Columbia. It is one of three main occurrences forming the historic Orofino Mountain gold camp. Orofino Mountain gold camp activity began shortly after the Fairview camp was discovered in the 1880s. Considerable development work was carried out between 1930 and 1941. The occurrence was part of the King claim group, which in its early days was known as the King showing. The first reported activity on the King showing occurred in 1938 under lease to J. Wukelick from Gold Standard Fairview Mining Co. Ltd. Two 9.1-metre shafts and an adit were developed and sorted ore was shipped. The Lower King adit is about 50 metres length and the Upper King adit is 25 metres long. Another shipment of sorted ore is reported made in 1940. Interest in the property was revived in 1973 when the King showing was restaked as the Hill 2-5 claims by D.W. Wieweger. A geochemical soil sampling program was carried out by Cripple Creek Resources Ltd. on the Hill 3 and 5 claims. The property was restaked as the Mo claim in 1976 by G. Crooker. Trenching revealed rhodonite mineralization. The King claim group was subsequently staked around the Mo claim. DRC Resources Corp. carried out an extensive exploration program between 1981 and 1984. In 1986, Grandex resources Ltd. optioned the property and conducted extensive property exploration in 1986 and 1987. In 1998-99, G.F. Crooker collected stream sediment samples from the major drainages on the property, and a grid was established over a portion of the King 5 mineral claim and magnetic and VLF-EM surveys carried out. The 1999 work program consisted of completing the grid and magnetic and VLF-EM surveys on the King 5 mineral claim. HISTORY: PROPERTY VAULT Developed Prospect (Epithermal Au-Ag: low sulphidation; Polymetallic veins Ag-Pb-Zn+/-Au) MINFILE 082ESW173 Within Tenure 246347 The Vault developed prospect is located 500 metres west of Highway 97 along Skaha Lake, 4 kilometres northwest of Okanagan Falls, British Columbia. Quartz veining and an associated gossan were observed by B.N. Church of the British Columbia Geological Survey Branch.
  • 12. __________________________________________________________________________________ Vault 246374 Claim Group John Bakus / Chris Graf Event 5544344 __________________________________________________________________________________ __________________________________________________________________________________ March 5, 2015 Sookochoff Consultants Inc. Page 12 of 39 __________________________________________________________________________________ History: Property (cont’d) Vault Developed Prospect (cont’d) The Vault 1 claim was subsequently staked in 1982 by M. Morrison. Riocanex Inc. optioned the property and staked the Vault 2-5 claims. In 1983, Riocanex Inc. drilled the Discovery zone and subsequently dropped their option. Dome Mines Ltd. acquired an option, conducted further property exploration, then also allowed their option to lapse. In 1985, Seven Mile High Resources Inc. optioned the property conducting further exploration. A drill program was completed, consisting of 24,505 metres in 72 holes. In 1989, the company name was changed to Seven Mile High Group Inc. Inco Gold earned a 60 per cent interest in the property. Drilling by Seven Mile High Resources Inc. outlined an area 2.95 by 1.64 kilometres of epithermal gold mineralization. In 1998, Winslow Gold Corp. acquired an option from Aqua Regia Mineral to earn 51% interest in the Vault property by completing $300,000 exploration, over 4 years. GEOLOGY: REGIONAL (From Melnyk, 1985) The interior of British Columbia is characterized by many fault bounded Tertiary basins which form a belt 160 km s wide and 800 kms long from the Republic mining district to Babine Lake in central British Columbia. The basins are typically infilled with felsic-mafic volcanic and sedimentary rocks of Eocene age. The name Penticton Group has been proposed for Eocene volcanic and sedimentary rocks of the Okanagan-Boundary region. The Group consists of six well- defined formations having an aggregate thickness of about 2500 meters in the type area near Penticton. At the base are polymictic conglomerates and breccias referred to as the Springbrook Formation and coeval beds of the Kettle River Formation consisting of granite boulder conglomerate, rhyolite, breccia, and tuffaceous sedimentary rocks. Above this is the Marron Formation composed mainly of thick andesite, trachyte, and phonolitic lava flows, succeeding upward by dacitic and andesitic domes of the Marama Formation. This is followed by volcanic breccias and lacustrine and fluvial sedimentary rocks of the White Lake Formation and, uppermost, the Skaha Formation consisting of a landslide complex and fanglomerate beds. The Group rests unconformably on pre-Tertiary granitoids, metamorphosed Mesozoic sedimentary and volcanic rocks, and older schists and gneisses. GENERAL STRUCTURE Studies of the Tertiary basins (Church, 1973, 1975) have indicated that they have been influenced during the course of their development by major normal faults-some of which show vertical displacement of several hundreds of meters. In general, structural control of the Tertiary outliers seem to relate to a herring-bone pattern of conjugate shears of NE and NW orientation. These appear to be important elements in a north/south stress scheme responsible for many northerly trending graben structures extending across the interior of the Province. Tertiary rocks in the vicinity of the White Lake map area are intersected by gravity faults. The region is divided into three structural zones by the Marron fault system which follows Marron Valley southeasterly to Marron Lake; here it splits into a weak easterly trending branch which passes into the Okanagan Valley, and a strong southwesterly trending branch which passes near Twin Lakes and extends into the Similkameen Valley.
  • 13. __________________________________________________________________________________ Vault 246374 Claim Group John Bakus / Chris Graf Event 5544344 __________________________________________________________________________________ __________________________________________________________________________________ March 5, 2015 Sookochoff Consultants Inc. Page 13 of 39 __________________________________________________________________________________ Geology: Regional (cont’d) Structural zone A, the area west of the Marron fault and the Twin Lakes branch, is relatively simple. Typically, the strata here are thin, dip gently east, and are displaced mainly by northerly trending gravity faults with easterly down throw. Structural zone B, the area between the Twin Lakes branch and the easterly trending branch of t h e Marron fault system, is somewhat complex. The strata are folded to form the White Lake syncline which is open and plunges gently to the east. The beds are cut by gravity faults of widely varying trends which show mainly westerly or northerly down throw. Reverse faults are developed where strata are especially thick such as on the north limb of White Lake syncline. Some northerly trending faults in the southeast part of zone B show strike-slip displacement. Rocks only in the southern part of zone C were examined by Church. The Tertiary pile is thin on the west along the axis of an anticline and thick near the south end of Skaha Lake, site of t h e Okanagan Falls syncline. Both folds are open and plunge southeastward. A northerly trending reverse fault, immediately west of the south end of Skaha Lake, is possibly due to concentric folding of thick strata GEOLOGY: PROPERTY AREA The geology on some of the more significant mineral MINFILE reported mineral showings and past producers peripheral to the Vault 246374 Claim Group are reported as follows MORNING STAR (FAIRVIEW) Past Producer (Polymetallic veins Ag-Pb-Zn+/-Au, Au-quartz veins, Silica veins) MINFILE 082ESW006 Eighteen kilometres south The Morning Star occurrence lies within the Okanagan Terrane of the Intermontane tectonic belt. Polydeformed and regionally metamorphosed rocks of the Carboniferous to Permian Kobau Group dominantly underlie the area. Highly deformed, low grade metamorphic quartzite, phyllite, schist, greenstone and marble comprise the main units of a 1900-metre structure succession. Three phases of fold have been identified in the Kobau Group rocks. The initial phase of folding was coincident with pre-Jurassic regional metamorphism, whereas later phases of folding are related to intrusive activity. The main intrusions in the Fairview camp are the Jurassic Oliver granite and the Jurassic to Cretaceous Fairview granodiorite. The Oliver pluton is heterogeneous and is composed of biotite-hornblende granite, porphyritic biotite granite, garnet-muscovite granite, porphyritic quartz monzonite and syenite. Other intrusive phases cutting the Kobau Group metasediments and volcanics include aplite dikes, granitic, dioritic and mafic stocks, auriferous quartz veins related to Jurassic intrusions and Tertiary northeast-trending mafic dikes. Auriferous quartz veins occur along a strike length of 4 kilometres within the Fairview mining camp, with three main areas being mined between 1895 and 1961. The veins are hosted in all rock types but are thickest and most continuous where they occur in the quartzites of the Kobau Group. Some significant veining also occurs within the intrusive bodies. Tertiary faults crosscut all lithologies including the quartz veins. The Morning Star mine area is underlain by a northwest trending sequence of quartzite layers separated by biotite-rich layers overlain by a mafic unit consisting of chloritic mica schists with minor interbedded quartzose layers.
  • 14. __________________________________________________________________________________ Vault 246374 Claim Group John Bakus / Chris Graf Event 5544344 __________________________________________________________________________________ __________________________________________________________________________________ March 5, 2015 Sookochoff Consultants Inc. Page 14 of 39 __________________________________________________________________________________ Figure 4. Geology, Claim, Index & Minfile (Base Map from MapPlace) GEOLOGY MAP LEGEND Pleistocene to Recent EPeK Eocene-Penticton Group Kettle River, Springbrook Formations mudstone, siltstone, shale fine clastic sedimentary rocks EPeMK Eocene-Penticton Group Marron, Kettle River, Springbrook, Manama, & Skaha Formations undivided volcanic rocks Cretaceous Kgd Unnamed granodioritic intrusive rocks Proterozoic Prg Unnamed granitic, alkalitic feldspar intrusive rocks Geology: Property Area (cont’d) Morning Star (Fairview) Past Producer (cont’d) A series of dacite porphyry dikes and sills occur parallel to foliation. The stratigraphy is tightly squeezed and strongly foliated at 100 to 130 degrees between the Oliver Plutonic Complex granite to the north and the Fairview intrusion granodiorite to the south-southwest. Dips are to the northeast at 50 to 65 degrees. Regional foliation (S1) trends 130 degrees and parallels the quartz veins. A later fracture cleavage (S2), trends 000 degrees to 020 degrees and dips 50 to 70 degrees west.
  • 15. __________________________________________________________________________________ Vault 246374 Claim Group John Bakus / Chris Graf Event 5544344 __________________________________________________________________________________ __________________________________________________________________________________ March 5, 2015 Sookochoff Consultants Inc. Page 15 of 39 __________________________________________________________________________________ Geology: Property Area (cont’d) Morning Star (Fairview) Past Producer (cont’d) Faulting of at least two separate ages is common throughout the area. The oldest faults parallel the regional foliation. They are commonly graphitic, usually filled with clay and/or sand gouge and often have associated caving. Direction of movement has not been determined. A large number of younger faults, possibly Tertiary in age, are also common. Mineralization is confined to a quartz vein system which is generally conformable to penetrative fabrics developed in the Kobau Group hostrocks and display a variety of early ductile and later brittle deformation features. The vein system has been traced over 4 kilometres from the Morning Star northwest to the former Stemwinder mine (082ESW007) and the former Fairview mine (082ESW008). The veining consists of two dominant veins, often with a third or fourth present. They occur in the quartzite sequence, usually near the Fairview intrusion granodiorite contact. Individual veins reach up to 9.1 metres thick and pinch and swell both along strike and downdip. The East vein was found to be faulted above the No. 1 level. Fluid inclusion and stable isotope studies at the Morning Star occurrence indicate mesothermal fluids were responsible for mineralization events. The fluids are characterized by a high carbon dioxide content, temperatures of 280 to 330 degrees Celsius, salinities of 4 to 6 weight per cent NaCl and oxygen del 18 values of 4 to 6 per mil (relative to standard mean ocean water). The mineralization occurred at depths of 3 to 4 kilometres. At the former Morning Star mine two quartz veins, the West (Main) vein and East vein, are 27 to 61 metres apart and occur locally concordant to the regional foliation but cut lithologic contacts at very low angles. The veins are fractured and irregular with quartz stringers and iron oxide staining in opencuts and outcrop. The principal vein, the West vein, strikes 315 degrees and dips 45 to 55 degrees northeast and outcrops just west of the main shaft. It has a maximum width of 9.1 metres and has been traced over about 76 metres on surface and in underground workings. The East vein is northeast of and parallel to the West vein and has been traced over 427 metres on surface and in underground workings. The vein width is considerably variable; the maximum being about 4.2 metres. Locally it consists of several quartz stringers comprising a zone 0.6 metre wide. STEMWINDER (FAIRVIEW) Past Producer (Polymetallic veins Ag-Pb-Zn+/-Au, Au-quartz veins) MINFILE 082ESW007 Eighteen kilometres south Regionally, the area is underlain by a northwest trending, narrow elongate belt of complexly deformed, regionally metamorphosed Carboniferous to Permian Kobau Group metasedimentary and metavolcanic rocks which separate two large intrusive bodies; the Jurassic Oliver Plutonic Complex granite to the northeast and the Jurassic to Cretaceous Fairview intrusion granodiorite to the southwest. Both plutons cut the lithologies and structures of the Kobau Group. The Kobau Group rocks comprise banded and foliated quartzitic lithologies with minor mafic schists, and thick, compositionally layered mafic schist units with intercalated quartzite bands. Minor meta- carbonates and mafic metavolcanic flows or sills occur within the quartzites and schists which have undergone at least three phases of folding and later brittle faulting.
  • 16. __________________________________________________________________________________ Vault 246374 Claim Group John Bakus / Chris Graf Event 5544344 __________________________________________________________________________________ __________________________________________________________________________________ March 5, 2015 Sookochoff Consultants Inc. Page 16 of 39 __________________________________________________________________________________ Geology: Property Area (cont’d) Stemwinder (Fairview) Past Producer (cont’d) The metasedimentary-volcanic package is cut by aplite dikes, small granitic, dioritic and mafic stocks, and Tertiary northeast trending mafic dikes. Dacite dikes occur in swarms and are parallel to the regional compositional layering within the Kobau Group rocks east of the Fairview intrusion. Auriferous quartz veins occur in all lithologies but are thickest and most continuous where they occur in the quartzites. Some significant veining also occurs in the intrusive bodies. Tertiary faults crosscut all lithologies including the quartz veins. The Stemwinder mine area is underlain by a northwest trending sequence of three distinct lithologic units: an upper 'green argillite' primarily composed of chlorite with variable amounts of biotite and narrow quartzite laminations; an underlying central grey quartzite that varies from cherty quartzite to banded quartzite, laminated with fine and coarse biotite; and a lower, 'dark argillite' that is essentially a massive greenstone. A series of intermediate to felsic dikes parallel to foliation occur in this sequence. The stratigraphy is tightly squeezed and strongly foliated at 100 to 130 degrees between Oliver Plutonic Complex granite to the north and Fairview intrusion granodiorite to the south. Dips are to the northeast at 50 to 65 degrees. Small scale isoclinal folding can be seen in the sedimentary and volcanic units as well as the quartz veins. Regional foliation (S1) which trends 130 degrees, parallels both the quartz veins and the sericite-biotite-graphite-sulphide- filled fractures commonly found within the veins. These vein fractures may represent axial planar cleavage related to the small scale isoclinal folding and regional foliation developed during emplacement of the Fairview granodiorite. A later fracture cleavage (S2), trends 000 degrees to 020 degrees and dips 50 to 70 degrees west. It is especially evident in quartz veins and is possibly related to late faulting. Faulting of at least two separate ages is common throughout the Stemwinder mine area. The oldest faults parallel the regional foliation and are best developed in the area of quartz veining where they are located on both the top and bottom of the quartz veins. They are commonly graphitic, usually filled with clay and/or sand gouge and often have associated caving. Slickensides on fault planes within the quartz veins typically have a southeast plunge at 30 to 40 degrees. Direction of movement has not been determined. A large number of younger faults, possibly Tertiary in age, are common throughout the mine workings. Many of the larger faults are left- lateral reverse faults that offset the quartz veins approximately 18 metres horizontally. The vertical component of movement is unknown. The faults, like the quartz veins, have a considerable roll, often flattening substantially over short distances. Normal faults which seem to be about the same age or slightly younger than the reverse faults occur throughout the mine and may reflect a 'relaxing' of compressional forces. GRANDORO (ORO FINO) Past Producer (Polymetallic veins Ag-Pb-Zn+/-Au, Au-quartz veins) MINFILE 082ESW010 Twelve kilometres south The Grandoro property is located within the Intermontane Belt near its eastern boundary with the Omineca Belt.
  • 17. __________________________________________________________________________________ Vault 246374 Claim Group John Bakus / Chris Graf Event 5544344 __________________________________________________________________________________ __________________________________________________________________________________ March 5, 2015 Sookochoff Consultants Inc. Page 17 of 39 __________________________________________________________________________________ Geology: Property Area (cont’d) Grandoro (Oro Fino) Past Producer (cont’d) The property is underlain by complexly deformed metamorphic rocks of the Carboniferous to Permian Kobau Group, and west and northwest trending sequences of quartzite, chert and greenstone belonging to the Carboniferous to Triassic Shoemaker and Old Tom formations. These are intruded by gabbroic to granitic rocks of the Middle Jurassic Nelson plutonic complex and Similkameen batholith, Jurassic Oliver plutonic complex and Jurassic to Cretaceous Fairview intrusion. Eocene vesicular basalts of the Marron Formation, Penticton Group are block-faulted against older rocks on the north and west sides of the property. On the northwestern slopes of Orofino Mountain, the oldest rocks are quartzite of the Kobau Group. Light grey, massive to thinly bedded quartzites of the Shoemaker Formation form two relatively narrow bands which strike west and northwest, and dip mainly to the southwest at 70 to 80 degrees. DUSTY MAC Past Producer (Polymetallic veins Ag-Pb-Zn+/-Au, H05: Epithermal Au-Ag: low sulphidation) MINFILE 082ESW078 Four kilometres southwest The Dusty Mac property lies within the eastern part of the White Lake basin, a thick accumulation of Eocene Penticton Group volcanic rocks, interlayered with clastic sedimentary rocks which are largely of volcanic derivation. The Eocene rocks rest unconformably on Triassic metavolcanic and metasedimentary rocks of the Independence, Old Tom and Shoemaker formations, and Jurassic granitic intrusions. The White Lake basin forms a topographic low and is truncated by early gravity faults. The units generally dip to the east and are folded and faulted. The hostrocks at Dusty Mac belong to the Eocene White Lake Formation of the upper part of the Penticton group. This unit consists of light coloured pyroclastic rocks, thick feldspathic andesite lahar deposits, minor andesitic lavas, and minor sandstones and carbonaceous shales. In the immediate area, these overlie older Eocene Marama Formation volcanics, composed mainly of massive rhyodacite lava. These units are on the south limb of a southeasterly trending syncline. The beds have variable dips ranging from about 30 to 55 degrees northeast. A strong cross fracture system strikes approximately 010 degrees dipping about 80 degrees westerly almost perpendicular to the synclinal axis. BEV showing (Polymetallic veins Ag-Pb-Zn+/-Au) MINFILE 082ESW094 Two kilometres east The northern portion of the property is underlain by the Okanagan Gneiss complex. The Okanagan gneiss consists dominantly of strongly foliated, hornblende, biotite granodiorite orthogneiss. The orthogneiss is massive, resistant and weathers medium grey. The strong foliation locally grades to mylonitic gneiss, mylonite and blastomylonite. Minor amphibolite and paragneiss are also present. The gneiss is strongly chloritized along the Okanagan fault.
  • 18. __________________________________________________________________________________ Vault 246374 Claim Group John Bakus / Chris Graf Event 5544344 __________________________________________________________________________________ __________________________________________________________________________________ March 5, 2015 Sookochoff Consultants Inc. Page 18 of 39 __________________________________________________________________________________ Geology: Property Area (cont’d) Bev showing (cont’d) To the south, the Eocene Penticton Group consists of the Kitley Lake Member of the Marron Formation and the overlying White Lake Formation. The Kitley Lake Member consists of massive, yellow to buff, trachyte to trachyandesite. The White Lake Formation consists of light coloured pyroclastic rocks, thick feldspathic andesite lahar deposits, minor andesitic lavas, and minor sandstones and carbonaceous shales. These units are on the south limb of a southeasterly trending syncline. The beds have variable dips ranging from about 30 to 55 degrees northeast. A strong crossfracture system strikes approximately 010 degrees dipping about 80 degrees westerly almost perpendicular to the synclinal axis. ORO FINO MOUNTAIN Past Producer (Au-quartz veins, Polymetallic veins Ag-Pb-Zn+/-Au, Sedimentary Mn, Rhodonite) MINFILE 082ESW0113 Twelve kilometres south The Orofino Mountain property is located within the Intermontane tectonic belt near its eastern boundary with the Omineca crystalline belt. The property is underlain by complexly deformed metamorphic rocks of the Carboniferous to Permian Kobau Group, and west and northwest trending sequences of quartzite, chert and greenstone belonging to the Carboniferous to Triassic Shoemaker and Old Tom formations. These are intruded by gabbroic to granitic rocks of the Middle Jurassic Nelson plutonic complex and Similkameen batholith, Jurassic Oliver plutonic complex and Jurassic to Cretaceous Fairview intrusion On the northwestern slopes of Orofino Mountain, the oldest rocks are quartzite of the Kobau Group. Light grey, massive to thinly bedded quartzites of the Shoemaker Formation form two relatively narrow bands which strike west and northwest, and dip mainly to the southwest at 70 to 80 degrees. These rocks are adjacent to altered dioritic rocks, varying from massive coarse-grained hornblende gabbros and biotite diorite, to fine-grained biotite schist. Near the quartzite-diorite contact, mineralized quartz veins strike north to northeast and dip moderately to steeply to the southeast or steeply to the west. The best mineralized veins in the Orofino Mountain gold camp appear to strike north to northeast and dip 45 degrees southeast to near vertical. Trenching and drilling in 1987 have revealed a complex fault pattern which displaces veins left-laterally by steep northeast faults or shallow faults. The intersection of these faults with veins appears to structurally control gold values. GEOLOGY: PROPERTY The entire Vault 246374 Claim Group is underlain by the Eocene Penticton Group with a central north-northwesterly band of the Kettle River and Springbrook Formations comprised of mudstone, siltstone, shale, and fine clastic sedimentary rocks in fault contacts with the Marron, Kettle River, Springbrook, Manama, and Skaha Formations of undivided volcanic rocks.
  • 19. __________________________________________________________________________________ Vault 246374 Claim Group John Bakus / Chris Graf Event 5544344 __________________________________________________________________________________ __________________________________________________________________________________ March 5, 2015 Sookochoff Consultants Inc. Page 19 of 39 __________________________________________________________________________________ Figure 5. Geology of Okanagan Valley showing location of Past Producers (Map from Economic Geology Vol.84, 1989, pp 410-424) Geology: Property (cont’d) VAULT Developed Prospect (Epithermal Au-Ag: low sulphidation; Polymetallic veins Ag-Pb-Zn+/-Au) MINFILE 082ESW173 Within Tenure 246347 The Vault occurrence lies within the eastern part of the White Lake basin, a thick accumulation of Eocene Penticton Group volcanic rocks, interlayered with clastic sedimentary rocks which are largely of volcanic derivation. The Eocene rocks rest unconformably on Triassic metavolcanic and metasedimentary rocks of the Independence, Old Tom and Shoemaker formations, and Jurassic granitic intrusions. The White Lake basin forms a topographic low and is truncated by early gravity faults. The units generally dip to the east and are folded and faulted. The stratigraphic sequence on the Vault property includes the Kitley Lake Member at the base, overlain by the Marama Formation, with the White Lake Formation at the top.
  • 20. __________________________________________________________________________________ Vault 246374 Claim Group John Bakus / Chris Graf Event 5544344 __________________________________________________________________________________ __________________________________________________________________________________ March 5, 2015 Sookochoff Consultants Inc. Page 20 of 39 __________________________________________________________________________________ Geology: Property (cont’d) Vault Developed Prospect (cont’d) The rocks are gently folded about northeasterly trending synclinal and anticlinal axes and offset by northerly and northeasterly trending faults which form a step-like down dropped pattern. Precious metal mineralization is related to an east-west oriented fracture system confined largely to the lower Marama Formation. The Kitley Lake Member consists of purplish brown to grey, fine grained, plagioclase porphyritic lavas of trachyte to trachyandesite composition. The upper contact of this unit is strongly weathered. The overlying Marama Formation is the favourable host unit in which gold-silver mineralization occurs, and is subdivided into upper and lower sections. At the base of the lower Marama is a coarse pyroclastic and/or epiclastic unit. The section grades upward into a crudely alternating sequence of coarse and fine grained, tuffaceous and fragmental rocks, believed to reflect repeated explosive events. Much of this section varies from lapilli to ash tuff, with coarse fragments and massive fine grained, trachyte porphyry flows intercalated with thin laminated mudstone and siltstone. The flows display abundant, irregular clay and zeolite(?)-filled amygdules. In some areas the tuff is broken into larger subrounded clasts that are probably the result of epiclastic processes. At other localities the breccia has a random chaotic appearance, characteristic of laharic slumping or debris flow. The upper Marama is a massive, aphanitic dacite flow unit that is plagioclase porphyritic, with alkali feldspar, minor hornblende and biotite. Some outcrops display flow banding and platy brittle fracture. Sheeted dacite feeder dikes, averaging about 1 metre in width, intrude the dacite in the central part of the property. At the top of the Vault sequence the White Lake Formation consists of coarse agglomeratic and laharic rocks interlayered with andesitic and trachytic flows, conglomerates and carbonaceous mudstones. Drill information indicates that alteration is dominated by an elongate zone of intense silicification and stockwork veining occurring above the Kitley Lake Member/lower Marama Formation contact. In drill core, the intensity of silicification appears to increase with the frequency of quartz veining. Within the area of mineralization, silicification is pervasive and the replacement of wallrock by chalcedonic quartz is locally evident. Clay alteration is common adjacent to fault zones and is particularly notable as feldspar alteration in trachytic flows and breccias. Minor muscovite and green micaceous minerals are also present in altered sections. Hematite, calcite and chlorite alteration are poorly developed in all units and are usually confined to fractures, vein margins and breccia matrix or fragments. Calcite veinlets usually crosscut silicic alteration and veining.
  • 21. __________________________________________________________________________________ Vault 246374 Claim Group John Bakus / Chris Graf Event 5544344 __________________________________________________________________________________ __________________________________________________________________________________ March 5, 2015 Sookochoff Consultants Inc. Page 21 of 39 __________________________________________________________________________________ MINERALIZATION: PROPERTY AREA Genetic Models for Mineralization (From Zhang, et al, 1989) From a comparison of the isotopic characteristics of the ore-forming fluids (Fig. 7), two distinct mineralizing processes can be recognized. At Dusty Mac, the fluids had extremely low salinities, low   and D, and very low CO2 contents. At Fairview and Oro Fino, the fluids had low salinities and   values but substantially higher   values and CO2 contents. Two general terms, epithermal (Dusty Mac) and mesothermal (Fairview and Oro Fino) are used here to describe these two styles of mineralization in the Okanagan Valley area. Figure 6. Epithermal and mesothermal fluid relationships (Map from Economic Geology Vol.84, 1989, pp 410-424) Mineralization: Property Area (cont’d) The history on some of the more significant mineral MINFILE reported mineral showings and past producers peripheral to the Vault 246374 Claim Group are reported as follows
  • 22. __________________________________________________________________________________ Vault 246374 Claim Group John Bakus / Chris Graf Event 5544344 __________________________________________________________________________________ __________________________________________________________________________________ March 5, 2015 Sookochoff Consultants Inc. Page 22 of 39 __________________________________________________________________________________ Mineralization: Property Area (cont’d) MORNING STAR (FAIRVIEW) Past Producer (Polymetallic veins Ag-Pb-Zn+/-Au, Au-quartz veins, Silica veins) MINFILE 082ESW006 Eighteen kilometres south Mineralization includes pyrite, visible gold, sphalerite and galena in a gangue of blue quartz. Gold and silver values are closely associated with the presence of galena and sphalerite and appear to increase with depth. However, spectacular gold values were reported near surface in 1930 (Minister of Mines Annual Report 1930, page A219). For the most part, the highest gold and silver values occur in the hangingwall parts of the veins associated with bunches and narrow bands of galena and sphalerite over widths of 1.2 to 1.5 metres, although significant values have been obtained throughout the vein. Elsewhere, mineralization is disseminated. In 1930, rough general sampling across 38 to 152 centimetres from underground workings were reported to yield from 2.74 grams per tonne gold and 43.88 grams per tonne silver to 24.00 grams per tonne gold and 153.60 grams per tonne silver (Minister of Mines Annual Report 1930, page A219). In 1933, several samples were taken from the 200 level of the West shaft area on the East vein. The average yield of these samples was 9.86 grams per tonne gold and 40.11 grams per tonne silver over the width of the drift and along 54.9 metres length (Minister of Mines Annual Report 1933, page A165). By 1934, 6 ore shoots had been discovered. The first orebody commences 15 metres north of the main shaft on the 101 level and extended 44 metres along a 1.4-metre wide drift. The average grade, based on ore shipped, was 21.60 grams per tonne gold (Minister of Mines Annual Report 1934, page D13). The second shoot was located 19.8 metres south of the main shaft, was 22.86 metres long and averaged 1.16 metres wide. The ore averaged 22.28 grams per tonne gold (Minister of Mines Annual Report 1934, page D13). The third shoot occurred 97.5 metres north of the main shaft, was 3.65 metres long and averaged 1.5 metres wide. The average gold grade of this ore shoot was 8.57 grams per tonne gold (Minister of Mines Annual Report 1934, page D13). The fourth shoot was 164.6 metres north of the main shaft. The shoot was 13.40 metres long and averaged 3.96 metres wide, producing gold values averaging 12.68 grams per tonne gold (Minister of Mines Annual Report 1934, page D13). The sixth ore shoot was discovered in 1934 and its length is unknown. The average width was 1.8 metres and face samples yielded 39.77 grams per tonne gold (Minister of Mines Annual Report 1934, page D13). A composite of 6 channel samples across 10.05 metres of quartz vein on No. 1 level assayed 11.07 grams per tonne gold and 30.50 grams per tonne silver (Property File - plan map of underground sampling). The date this sample was taken is uncertain, but estimated to be the late 1930s. In 1991, a diamond-drill hole was completed as part of a 21 drillhole program by Fairview Gold Corp. The hole was drilled to test the continuity of gold mineralization along the Fairview vein system. Both the footwall and main veins were intersected but the hole was stopped short of the hangingwall vein. The footwall vein is interpreted to host high grade gold mineralization at the Morning Star occurrence.
  • 23. __________________________________________________________________________________ Vault 246374 Claim Group John Bakus / Chris Graf Event 5544344 __________________________________________________________________________________ __________________________________________________________________________________ March 5, 2015 Sookochoff Consultants Inc. Page 23 of 39 __________________________________________________________________________________ Mineralization: Property Area (cont’d) Morning Star (Fairview) Past Producer (cont’d) The main and hangingwall veins are barren. However, the highest drillhole intersection was over the 4.71 metre interval between 107.49 and 112.2 metres yielding 0.17 gram per tonne gold and 1.71 grams per tonne silver (Assessment Report 21501). The vein was interpreted to correlate with the main vein in underground workings. A sample taken near the collar of the Black Diamond shaft in 1923 yielded 11.66 grams per tonne gold and 102.86 grams per tonne silver (Minister of Mines Annual Report 1923, page A185). Preliminary lead isotope studies indicate the mineralization is associated with quartz veins is younger than or as young as the Oliver pluton (circa 155 Ma) (Fieldwork 1988, pages 19-25). Early production records for the former Morning Star mine are conflicting. However in 1892, 349 tonnes of ore from the Morning Star was tested in the Strathyre mill. The owners of the Morning Star occurrence were Mangott, McEachern and Leferve. The mill was leased in the following year and another 907 tonnes of ore produced 7.25 tonnes of concentrate that was sent to the Tacoma smelter. In 1895, 1814 tonnes was mined and produced 18 tonnes of concentrate. The provincial records report 2450 tonnes of ore milled between 1892 and 1895 (Minister of Mines Annual Report 1897, STEMWINDER (FAIRVIEW) Past Producer (Polymetallic veins Ag-Pb-Zn+/-Au, Au-quartz veins) MINFILE 082ESW007 Eighteen kilometres south Mineralization is confined to a quartz vein system which is generally conformable to penetrative fabrics developed in the Kobau Group hostrocks and display a variety of early ductile and later brittle deformation features. The vein system has been traced over 4 kilometres from the Morning Star mine (082ESW006) in the southeast through the Stemwinder to the Fairview mine (082ESW008) in the northwest. The veining consists of two dominant veins often with a third or fourth present. They occur in the middle quartzite sequence, usually within 60 metres of the Fairview granodiorite contact. Veins intersected in drillholes usually occur within grey laminated quartzite. Individual veins range from 0.30 up to 9 metres in thickness and pinch and swell rapidly along short distances, both along strike and downdip. The quartz is white and either massive or fractured and ribbon-textured. The vein system is composed of the principal Main vein, the HW vein (Hangingwall or North vein) and the FW vein (Footwall or South vein) and is evident at the Fairview mine and continues through to the Stemwinder mine in the southeast. Several high-grade shoots occur within these veins. Fluid inclusion and stable isotope studies at the Stemwinder occurrence indicate mesothermal fluids were responsible for mineralization events. The fluids are characterized by a high carbon dioxide content, temperatures of 280 to 330 degrees Celsius, salinities of 4 to 6 weight per cent NaCl and oxygen del 18 values of 4 to 6 per mil (relative to standard mean ocean water). The mineralization occurred at depths of 3 to 4 kilometres.
  • 24. __________________________________________________________________________________ Vault 246374 Claim Group John Bakus / Chris Graf Event 5544344 __________________________________________________________________________________ __________________________________________________________________________________ March 5, 2015 Sookochoff Consultants Inc. Page 24 of 39 __________________________________________________________________________________ Mineralization: Property Area (cont’d) Stemwinder (Fairview) Past Producer (cont’d) Gold and silver values occur in portions of the vein that contain pyrite, sphalerite, galena and chalcopyrite, which occur along ribbon-textured fractures or as disseminations in quartz. Precious metal grades show little preference for the hangingwall or footwall of the veins. Strong fracturing parallel to foliation with graphite, sericite, chlorite and biotite fracture-fillings accompanies the mineralized zones. Faulting parallel to the quartz vein zone may account for the rapid thickening and thinning of the veins. Gold and silver values are closely associated with the presence of galena with or without chalcopyrite, sphalerite or pyrite. Galena, chalcopyrite, sphalerite and rare pyrrhotite are fracture- controlled with most occurring along S1 fractures in quartz veins. A very small percentage also occur along S2 fractures. For the most part, the best galena-chalcopyrite-sphalerite mineralization and highest gold and silver values occur in the hangingwall parts of the veins, although significant values have been obtained throughout the vein. Gold values are higher where the vein has well- developed S1 fractures lined with sericite-biotite-chlorite-graphite and sulphides. Three high-grade gold zones or shoots have been discovered within the complex vein system. The Fairview Extension zone is located at the common boundary between the Fairview and Stemwinder mines, namely on the Wynn M claim (Lot 554); the Stemwinder zone is located on the east edge of the Stemwinder workings, namely the Stemwinder claim (Lot 384); and the Brown Bear zone located in the north drift near the centre adit on the Brown Bear claim (Lot 385). These high-grade gold zones are thought to plunge 60 degrees to the east on the Stemwinder property. Drilling on the Fairview Extension zone over 427 metres strike length suggests it is an eastward and downward extension of the Fairview ore zone. The zone appears to plunge eastward 20 to 30 degrees. Diamond drilling in 1982 on the Fairview Extension zone yielded 4.79 grams per tonne gold, 44.22 grams per tonne silver across 1.37 metres (Main vein) and 1.64 grams per tonne gold, 25.02 grams per tonne silver across 1.06 metres (HW vein) (Property File - Cooke, D.L. (1987): Report on the Stemwinder Mine Property). The Stemwinder zone was intersected by drillholes to the east of the 200 level of the Stemwinder workings. The zone is poorly defined due to faulting but has a defined strike length of 152 to 183 metres. The average grade of seven drill intersections yielded 4.04 grams per tonne gold and 45.60 grams per tonne silver (Cooke D.L., 1987). A channel sample across 0.97 metre of quartz vein assayed 7.02 grams per tonne gold and 10.62 grams per tonne silver (Assessment Report 16779). Channel samples from the Main vein and the HW vein in the Stemwinder zone assayed 5.89 grams per tonne gold, 114.15 grams per tonne silver across 1.0 metre (true width) and 10.28 grams per tonne gold, 185.11 grams per tonne silver across 0.87 metre, respectively (Assessment Report 16779). The Brown Bear zone (Centre adit) differs somewhat from the other mineralized zones in that there is a lack of dikes or sills and biotite is absent in hangingwall and footwall quartzites and along S1 fractures in quartz veins where sericite is more prevalent. Graphite is also less prevalent in S1 fractures and there is little folding evident in the quartz veining. The major left-lateral reverse fault has apparent horizontal strike-slip offset of 110 metres.
  • 25. __________________________________________________________________________________ Vault 246374 Claim Group John Bakus / Chris Graf Event 5544344 __________________________________________________________________________________ __________________________________________________________________________________ March 5, 2015 Sookochoff Consultants Inc. Page 25 of 39 __________________________________________________________________________________ Mineralization: Property Area (cont’d) Stemwinder (Fairview) Past Producer (cont’d) In 1982, three intersections from two drillholes approximately 61 metres apart yielded an average of 3.33 grams per tonne gold and 29.48 grams per tonne silver (Cooke, D.L., 1987). The results of the 1991 drill program were as follows. On the Main vein, the average of six intersections in six drillholes was 0.48 gram per tonne gold and 3.43 grams per tonne silver over an average true thickness of 3.07 metres (Assessment Report 21501). On the HW vein, the average of 14 intersections from 13 drillholes was 0.99 gram per tonne gold and 6.17 grams per tonne silver over a true thickness of 3.74 metres (Assessment Report 21501). The results of three drillholes in 1994 yielded an average of 2.67 grams per tonne gold and 10.97 grams per tonne silver over an average true thickness of 1.83 metres on the HW vein. Intersections on the Main vein yielded 1.37 grams per tonne gold and 4.11 grams per tonne over a true thickness of 0.91 metre (Assessment Report 23404). Drilling by Cominco Ltd. and Asarco Exploration Company of Canada Ltd. between 1982 and 1984 outlined reserves of 640,000 tonnes of ore from the Main vein grading 3.8 grams per tonne gold and 51.4 grams per tonne silver (Mineral Exploration Review 1986, page 63). The North vein was estimated to contain reserves of 185,000 tonnes of ore grading 9.2 grams per tonne gold and 103 grams per tonne silver (Mineral Exploration Review 1986, page 63). In 1982, Cominco estimated 635,000 tonnes of reserves grading 3.43 grams per tonne gold in the Fairview Extension zone. The Stemwinder zone was estimated to contain 181,000 tonnes of ore grading 4.11 grams per tonne gold (Cooke, D.L., 1987). Total recorded production between 1893 and 1956 from the former Stemwinder mine includes 27,947 tonnes mined and 27,666 tonnes milled from which 100,310 grams of gold, 532,797 grams of silver, 3670 kilograms of lead and 249 kilograms of zinc were reported recovered. The amount of gold recovered in 1893 and 1894 is calculated. GRANDORO (ORO FINO) Past Producer (Polymetallic veins Ag-Pb-Zn+/-Au, Au-quartz veins) MINFILE 082ESW010 Twelve kilometres south The best mineralized veins in the Orofino Mountain gold camp appear to strike north to northeast and dip 45 degrees southeast to near vertical. Trenching and drilling in 1987 have revealed a complex fault pattern which displaces veins left laterally by steep northeast faults or shallow faults. The intersection of these faults with veins appears to structurally control gold values. Fluid inclusion and stable isotope studies at the Grandoro occurrence indicate mesothermal fluids were responsible for mineralization events. The fluids are characterized by a high carbon dioxide content, temperatures of 280 to 330 degrees Celsius, salinities of 4 to 6 weight per cent NaCl and oxygen del 18 values of 4 to 6 per mil (relative to standard mean ocean water). The mineralization occurred at depths of 3 to 4 kilometres. In the 1930s, two underground workings, the Orofino adit and the Lower and Upper Independence adits, were developed. They exposed two northeasterly trending quartz veins within chloritized hornblende- rich gabbro and diorite, and fine-grained biotite schist.
  • 26. __________________________________________________________________________________ Vault 246374 Claim Group John Bakus / Chris Graf Event 5544344 __________________________________________________________________________________ __________________________________________________________________________________ March 5, 2015 Sookochoff Consultants Inc. Page 26 of 39 __________________________________________________________________________________ Mineralization: Property Area (cont’d) Grandoro (Oro Fino) Past Producer (cont’d) In the Upper Independence adit, one vein strikes 160 degrees and dips 45 degrees southwest and the other strikes 208 degrees and dips 30 degrees northwest. A shear at the south end of the adit strikes 030 degrees and dips 60 degrees southeast. In the Orofino inclined adit the quartz vein strikes 105 degrees and dips 50 degrees southwest. The vein width is variable, from 30 to 50 centimetres where exposed in the adit, but appears to pinch out in either direction. Veins are reportedly highly fractured and lenticular, varying in width from 30 centimetres to 2.0 metres. Mineralization consists of pyrite, lesser amounts of galena, and occasional rich pockets of free gold. In 1988, six trenches were excavated near the Upper Independence adit to trace the vein along strike. Quartz veins were observed in trenches 1 and 16. The vein in Trench 16 was shear hosted and was oriented different than other veins. Samples from Trench 1 yielded the best results. Sample 16701 yielded 1.78 grams per tonne gold from a 1.0-metre channel sample of barren quartz. Sample 16702 yielded 71.86 grams per tonne gold (Property File - Brightwork Resources Inc. (1988): Prospectus). This sample, a 0.7-metre chip sample, was taken from the same location as sample K-31 in 1981 which yielded 37.71 grams per tonne gold (Property File - Brightwork Resources Inc. (1988): Prospectus). The remaining samples yielded up to 0.24 gram per tonne gold (Property File - Brightwork Resources Inc. (1988): Prospectus). Three trenches were excavated on a small quartz vein near the Orofino adit. Gold values obtained from trench samples ranged up to 0.03 gram per tonne (Property File - Brightwork Resources Inc. (1988): Prospectus). Samples from several other trenches on the property yielded values ranging from 1.06 grams per tonne gold (Property File - Brightwork Resources Inc. (1988): Prospectus). Five samples were taken from the portal of the Lower Independence adit in 1988. The best results were from sample 16895, which yielded 1.10 grams per tonne gold (Property File - Brightwork Resources Inc. (1988): Prospectus). The sample was taken across a 10-centimetre barren quartz vein, striking 124 degrees and dipping 10 degrees southwest. The vein is intersected by a shear striking 035 degrees and dipping 10 degrees southeast. A total of 8 samples were taken from the Upper Independence adit in 1988. Three of these samples yielded significant gold values. Sample 15630 yielded 0.89 gram per tonne gold, sample 15631 yielded 3.84 grams per tonne gold and sample 15601 yielded 25.23 grams per tonne gold. Eight samples were taken from the Orofino adit in 1988. The highest gold values were from four samples taken from the northwest face of the adit. Sample 15607 yielded 4.35 grams per tonne. Sample 15623 yielded 3.02 grams per tonne; sample 15625, 7.30 grams per tonne and sample 15626, 6.99 grams per tonne (Property File - Brightwork Resources Inc. (1988): Prospectus). Eight samples were taken from the Grandoro property in 1981. Chip sample K-31 over 0.70 metre yielded 37.71 grams per tonne gold and 3.8 grams per tonne silver (Assessment Report 9933). Ore mined and shipped to the Trail smelter in 1933 averaged 60.68 grams per tonne gold (Minister of Mines Annual Report 1933, page 168). Intermittent total recorded production for the Grandoro occurrence between 1899 and 1941 was 12,048 tonnes mined and 10,228 tonne milled. From this, 37,853 grams of silver, 123,698 grams of gold, 79 kilograms of lead and 5 kilograms of zinc were recovered.
  • 27. __________________________________________________________________________________ Vault 246374 Claim Group John Bakus / Chris Graf Event 5544344 __________________________________________________________________________________ __________________________________________________________________________________ March 5, 2015 Sookochoff Consultants Inc. Page 27 of 39 __________________________________________________________________________________ Mineralization: Property Area (cont’d) DUSTY MAC Past Producer (Polymetallic veins Ag-Pb-Zn+/-Au, H05: Epithermal Au-Ag: low sulphidation) MINFILE 082ESW078 Four kilometres southwest At Dusty Mac, mineralization appears to be largely controlled by an important system of reverse faults. The system trends southeast with interwoven eastern and southern striking segments and splays. The direction and magnitude of movement on these faults are indicated by large thrust slices of Marama lava which have been thrust outward and upward from the core of the syncline through several hundreds of metres of White Lake strata. In the White Lake basin, reverse faulting is thought to be the result of concentric folding and accommodation of the stratigraphic pile to bedding plane slip (Bulletin 61). Quartz veins and gossans are present in or adjacent to most of the main faults. The deposit consists of a lens-like zone of silicified volcanic rocks and sedimentary debris containing minor disseminated pyrite, native silver, chalcopyrite, galena and sphalerite. Also, some quartz veins on the property carry minor bornite and tetrahedrite. The main mineralized zone is a gently dipping lens of quartz breccia with varying admixtures of crushed andesite. The body is exposed over a length of approximately 213 metres striking roughly 140 degrees with a central cross-section width of about 48 metres and a maximum thickness of 9 metres. A similar large lens of quartz breccia is located approximately 762 metres northwest of the main ore zone. Epithermal fluids from the Dusty Mac had a temperature of about 240 degrees Celsius, a low salinity of about 0.5 weight per cent and an oxygen del 18 value between minus 7 and minus 9 per mil (relative to standard mean ocean water). The mineralization process probably occurred at a depth of more than 380 metres (Zhang, 1986). In 1989, five areas of mineralized and highly altered fault zones were diamond drilled (A, Adit, Chalcedony, Sawmill and the Pit zones). Alteration consists of a distal propylitic assemblage (chlorite, epidote) and more intense central alteration assemblages consisting of combinations of sericitic, argillic (clay) and potassic alteration. These inner envelopes are generally well foliated and have 2-15 per cent disseminated pyrite present. Various forms of multi-episodic silicification is present in these fault zones. Silicification varies from discrete laminated chalcedony veins to quartz breccia bodies and pervasive wallrock silicification. Commonly silicification contains pyrite, chalcopyrite, galena, sphalerite, tetrahedrite and fluorite. In the Chalcedony zone, laminated and brecciated chalcedonic quartz veins assayed as high as 7.73 grams per tonne gold and 7.4 grams per tonne silver over 1.5 metres in drill core (Assessment Report 20078). Total production from the Dusty Mac mine was 93,295 tonnes, grading 6.89 grams per tonne gold and 146.59 grams per tonne silver with 10 per cent dilution (Assessment Report 20078). Recovery included 606,006 grams of gold, 10,552,750 grams of silver, 2432 kilograms of copper, 2313 kilograms of lead and 242 kilograms of zinc.
  • 28. __________________________________________________________________________________ Vault 246374 Claim Group John Bakus / Chris Graf Event 5544344 __________________________________________________________________________________ __________________________________________________________________________________ March 5, 2015 Sookochoff Consultants Inc. Page 28 of 39 __________________________________________________________________________________ Mineralization: Property Area (cont’d) BEV showing (Polymetallic veins Ag-Pb-Zn+/-Au) MINFILE 082ESW094 Two kilometres east Line-cutting was done on the claims in 1969 but no record could be found describing any mineralization. Tectonic breccia, silicification, quartz veins and gossan occur at several locations northwest from the Dusty Mac and which may occur on the Bev claims (Bulletin 61, Figure 5.1). ORO FINO MOUNTAIN Past Producer (Au-quartz veins, Polymetallic veins Ag-Pb-Zn+/-Au, Sedimentary Mn, Rhodonite) MINFILE 082ESW0113 Twelve kilometres south The Lower King adit was driven 50 metres in a southerly direction. The vein strikes 042 degrees, dips nearly vertical and varies from 0.6 to 1.5 metres width. Approximately 30 metres inside the adit a 2-metre wide fault, west striking and dipping 57 degrees to the north, offsets the vein 5 metres. Quartz veins host pyrite, chalcopyrite, galena and native gold. In 1987, trenching has established a strike length of 400 metres. The Upper King adit is 27 metres long and follows a vertical, 0.1 to 1.4 metre wide quartz vein striking 015 degrees along a shear zone. On the surface the vein is up to 2.7 metres wide and can be traced for 95 metres. The vein is mainly white quartz with pyrite. Chalcopyrite, galena and native gold are also present. The vein has been traced over a strike length of 100 metres by trenching in 1987. A 0.9-metre chip sample from the Lower King adit assayed 370 grams per tonne gold and 48 grams per tonne silver (Assessment Report 9933). A similar sample from the Upper King adit, S2, assayed 8.4 grams per tonne gold (Assessment Report 11480). The sample was taken 20 metres from the upper adit portal. Several significant intersections were encountered in seven drillholes during 1987 diamond drilling. Drillhole 87-1 intersected 0.23 metre of 9.22 grams per tonne gold over the interval 50.65 to 50.88 metres (Assessment Report 16648). Drillhole 87-2 intersected 3.46 grams per tonne gold over the 1.53 metre interval between 63.26 and 64.79 metres (Assessment Report 16648). The best intersection was from drillhole 89-5, which yielded 22.28 grams per tonne gold over the 1.00 metre interval between 23.00 and 24.00 metres (Assessment Report 16648). Values of up to 38.0 grams per tonne gold (30-003) were obtained in surface trenches (Assessment Report 16648). Geophysical and geochemical surveys indicated the extension of the structure. In 1976, rhodonite was discovered on the Mo claim. The rhodonite occurs with quartz as irregular replacement zones in the Shoemaker Formation. The largest lens is 75 metres long by up to 1 metre wide. The total production from the Orofino Mountain occurrence is unknown. An estimated 1000 to 2000 tonnes ore was mined from the Lower King adit in 1933 and/or 1934 but not recorded. Production in 1938 and 1940 is included with Grandoro (082ESW010). Production records indicate a 3-tonne ore shipment to the Trail smelter in 1976. Recovery included 31 grams of gold, 69 grams of silver, 3 kilograms of lead and 3 kilograms of zinc.
  • 29. __________________________________________________________________________________ Vault 246374 Claim Group John Bakus / Chris Graf Event 5544344 __________________________________________________________________________________ __________________________________________________________________________________ March 5, 2015 Sookochoff Consultants Inc. Page 29 of 39 __________________________________________________________________________________ MINERALIZATION: PROPERTY VAULT Developed Prospect (Epithermal Au-Ag: low sulphidation; Polymetallic veins Ag-Pb-Zn+/-Au) MINFILE 082ESW173 Within Tenure 246347 Gold-silver mineralization is associated with a discontinuous, east trending, steeply dipping quartz vein system on the north limb of a northeast-trending syncline. Veining is concentrated primarily in lower Marama rocks, where the porosity and permeability of the volcanic breccias and tuffs are highest, although a few minor gold-bearing veins have been encountered in the Kitley Lake and upper Marama formations. Intense silicification and weak, very fine grained pyritization accompanies much of the mineralization. Near-surface mineralization, where silicification is less intense, is generally anomalous in precious metals, but below an estimated economic grade of less than 3 grams per tonne gold. With increased depth, silicification becomes more intense and the average grade increases to the 5-10 grams per tonne range, in places over substantial widths. Gold and silver are typically not visible to the naked eye, but are considered likely to occur as native elements, or possibly as electrum. Silver-gold ratios in the mineralized zones are highly variable, averaging 9.8:1. The ratios tend to be lowest with higher gold values. Veins in the main mineralized zone have typical adularia- sericite-type epithermal textures and mineral assemblages. Finely banded and bladed chalcedonic quartz, ankeritic carbonate and minor alkali feldspar (adularia) are the main vein components. Veins range in size from fine irregular anastomosing veinlets a few millimetres thick, to larger veins about 10 centimetres wide. Some exceptionally large veins are up to about 30 centimetres in width. They commonly display multistage growth textures, such as scalloped colloform banding, bladed cockscomb intergrowths and drusy cavities. Where the vein minerals occur as breccia matrix, some breccia fragments are rimmed with finely banded quartz and occur in a matrix of black, grey and white silica. Some of the most significant gold values are associated with complex multistage veining. In a number of intersections the veins have been brecciated and subsequently rehealed by the addition of banded silica. In other areas, banded quartz clasts are a significant component of the breccia. The sulphide content associated with mineralization is typically low, although some sections are highly oxidized, with 5 to 10 per cent pyrite which is very fine grained and may occur as disseminations, fracture or vein-breccia fillings and thin veinlets. Minor pyrrhotite with sphalerite intergrowths is also associated with pyrite. Native gold is observed associated with pyrrhotite. On a regional and vein scale, mineralization is structurally controlled by major northeast and east-trending faults and related parallel fracture systems. It is, in part, lithologically controlled, confined primarily to tuffaceous, agglomeratic and brecciated rocks of the lower Marama Formation (Exploration in British Columbia 1988, pages B5-B13). Fluid inclusion and stable isotope studies at the Vault occurrence indicate epithermal fluids were responsible for mineralization events. The fluids are characterized by homogenization temperatures of 143 to 347 degrees Celsius, salinities of 0 to 3.4 weight per cent NaCl and oxygen del 18 values of minus 0.2 to 6.6 per mil (relative to standard mean ocean water).
  • 30. __________________________________________________________________________________ Vault 246374 Claim Group John Bakus / Chris Graf Event 5544344 __________________________________________________________________________________ __________________________________________________________________________________ March 5, 2015 Sookochoff Consultants Inc. Page 30 of 39 __________________________________________________________________________________ Table II. Summary of Minfile properties on and peripheral to the Vault 246374 Claim Group (see Figure 4 and 5 for property locations) Property Dominant host rock Type Structure VAULT (Tenure 246374) Volcanic breccia & tuffs of the Marama Formation Epithermal Au-Ag: low sulphidation; Polymetallic veins Ag-Pb- Zn+/-Au) Structurally controlled by major northeast and east trending faults DUSTY MAC (Four km southwest) Volcanic- White Lake Formation of the Penticton Group Polymetallic veins Ag-Pb- Zn+/-Au Epithermal Au-Ag: low sulphidation Quartz breccia zone with varying admixtures of crushed andesite striking at 140 º ORO FINO (12 km south) Grandoro Quartzites of the Shoemaker Formation of the Kobau Group Polymetallic veins Ag-Pb- Zn+/-Au Au-quartz veins Veins N-NE/45-90 SE The intersection of northeast trending faults with veins appears to structurally control gold values Oro Fino Mtn. Quartzites of the Shoemaker Formation of the Kobau Group Polymetallic veins Ag-Pb- Zn+/-Au Au-quartz veins Veins N-NE/45-90 SE The intersection of northeast trending faults with veins appears to structurally control gold values FAIRVIEW CAMP (18 km south) Stemwinder Meta- Sedimentary Kobau Group Polymetallic veins Ag-Pb- Zn+/-Au, Au-quartz veins Quartz veins parallel regional foliation at 130º; Ribbon textured quartz Morning Star Meta- Sedimentary Kobau Group Polymetallic veins Ag-Pb- Zn+/-Au, Silica veins, Au-quartz veins Quartz veins parallel regional foliation at 130º; Ribbon textured quartz
  • 31. __________________________________________________________________________________ Vault 246374 Claim Group John Bakus / Chris Graf Event 5544344 __________________________________________________________________________________ __________________________________________________________________________________ March 5, 2015 Sookochoff Consultants Inc. Page 31 of 39 __________________________________________________________________________________ Mineralization: Property(cont’d) Vault Developed Prospect (cont’d) The mineralization occurred at depths of 3 to 4 kilometres. Early stage homogenization temperatures indicate the deposit likely formed around 270 degrees Celsius. Calculated oxygen- 18 isotope values suggest three types of fluids were involved with mineralization formation at the Vault occurrence. The Main zone is 600 metres long, 40 to 125 metres wide and 5 to 30 metres thick. The top of the mineralization is 170 metres below surface at the west end and 500 metres below surface at the east end. Table II (cont’d) Summary of Minfile properties on and peripheral to the Vault 246374 Claim Group (see Figure 4 and 5 for property locations) Property Production Recovery tonnes g/Ag g/Au kg/Cu kg/Pb DUSTY MAC 93,295 10,552,750 606,006 2,432 2,312 ORO FINO Grandoro 10,228 37,853 123,698 79 5 kg Zn Oro Fino Mtn. 3 29 31 3 kg Zn 3 FAIRVIEW CAMP Stemwinder 27,666 532,797 100,310 249 kg Zn 3,670 Morning Star 22,143 965,530 252,687 926 1,894 kg Zn Property Inventory Tonnes Ag g/t Au g/t Cu % Pb% VAULT- Main Vein 1,550,000 2.49 VAULT- North Vein 152,000 14.00 DUSTY MAC ORO FINO Grandoro Assay 3.84 g/t Orofino Mountain No inventory data FAIRVIEW CAM Stemwinder (Combined) 816,000 3.77 Stemwinder (North Vein) 185,000 103.00 9.20
  • 32. __________________________________________________________________________________ Vault 246374 Claim Group John Bakus / Chris Graf Event 5544344 __________________________________________________________________________________ __________________________________________________________________________________ March 5, 2015 Sookochoff Consultants Inc. Page 32 of 39 __________________________________________________________________________________ STRUCTURAL ANALYSIS The structural analysis was performed on a DEM image hillshade map of Tenures 246374 & 246382 downloaded from MapPlace and marking the lineaments, or indicated structures, thereon. A total of 72 lineaments were marked, compiled into a 10 degree class interval, and plotted as a rose diagram. The centre of Tenure 246374 and the work area is 5,471,550N, 310,812E (NAD 83). Figure 7. Indicated Structures on Tenures 246374 & 246382 Figure 8. Rose Diagram from lineaments (Figure 7.) of Tenures 246374 & 246382.
  • 33. __________________________________________________________________________________ Vault 246374 Claim Group John Bakus / Chris Graf Event 5544344 __________________________________________________________________________________ __________________________________________________________________________________ March 5, 2015 Sookochoff Consultants Inc. Page 33 of 39 __________________________________________________________________________________ Structural Analysis (cont’d) STATISTICS Axial (non-polar) data No. of Data = 72 Sector angle = 8° Scale: tick interval = 3% [2.2 data] Maximum = 20.8% [15 data] Mean Resultant dir'n = 140-320 [Approx. 95% Confidence interval = ±19.0°] (valid only for unimodal data) _________________________ Mean Resultant dir'n = 139.9 - 319.9 Circ.Median = 135.5 - 315.5 Circ.Mean Dev.about median = 29.3° Circ. Variance = 0.18 Circular Std.Dev. = 35.84° Circ. Dispersion = 1.99 Circ.Std Error = 0.1662 Circ.Skewness = -0.94 Circ.Kurtosis = -19.32 kappa = 1.03 (von Mises concentration param. estimate) Resultant length = 32.92 Mean Resultant length = 0.4572 'Mean' Moments: Cbar = 0.0777; Sbar = -0.4506 'Full' trig. sums: SumCos = 5.5925; Sbar = -32.4418 Mean resultant of doubled angles = 0.1684 Mean direction of doubled angles = 022 (Usage references: Mardia & Jupp, 'Directional Statistics', 1999, Wiley; Fisher, 'Statistical Analysis of Circular Data', 1993, Cambridge University Press) Note: The 95% confidence calculation uses Fisher's (1993) 'large-sample method' Figure 9. Minfile and cross structural locations on Google Earth (Base Map: Google Earth)
  • 34. __________________________________________________________________________________ Vault 246374 Claim Group John Bakus / Chris Graf Event 5544344 __________________________________________________________________________________ __________________________________________________________________________________ March 5, 2015 Sookochoff Consultants Inc. Page 34 of 39 __________________________________________________________________________________ Structural Analysis (cont’d) Table III Approximate UTM locations of cross-structures & Minfiles (UTM-NAD 83) Location UTM East UTM North Elevation (m) A 310,863 5,471,210 477 B 312,178 5,471,489 413 C 310,716 5,471,600 503 D 310,300 5,471,660 496 Vault 310,485 5,471,835 518 Dusty Mac 315,090 5,468,926 457 INTERPRETATION and CONCLUSIONS Four cross-structures that were delineated on the two claims of the Vault 246374 Claim Group would be the most prospective areas to explore for surficial geological indicators of a concealed potential economic mineral resource. The prime type of mineral deposit to be sought would be for a Dusty Mac epithermal type with a bonanza gold and/or silver zone. Although structures are important in the structural controls to mineralization as evidenced at the Vault developed prospect where, ” … mineralization is structurally controlled by major northeast and east-trending faults and related parallel fracture systems. (Minfile)., cross-structures are more significant. A structural intersection can create a breccia or pseudo breccia zone with an enveloping zone of increased fracture density which enhances the area for hydrothermal fluid deposition and commonly is the central portion of a mineralized zone due to its increased porosity and permeability. These structural controls are exemplified at the Grandoro past producer (082ESW010) where, “The intersection of these faults with veins appears to structurally control gold values.”(Minfile). At the Dusty Mac (082ESW010), northwest, northeast, north, and west-northwest trending faults are reported with an indicated larger north-south fault zone that, “Although it may not represent the main feeder to the shallowly-dipping breccia ore that was mined, its intersection with either northwest or west-northwest faults may have played a role in localizing mineralization. (Bowen, 2003)” In the search for potential gold-bearing structures, “Hole 03-05 was designed to test for the presence of possible gold-bearing structures in an area where two structural trends intersect.” (Bowen, 2003).