phase i assessment report volume i – report and …

PHASE I ASSESSMENT REPORT

Volume I – Report and Appendices I-IV

ON THE

David Sherwood (Moyie Placer)

Property

Ft Steele Mining District

Mapsheet 82F019

Center of Work

UTME 567078, UTMN 5468376

Prepared for:

David Sherwood

15971 109 Ave NW

Edmonton, AB

T5P 1B6

By

Agathe N. Bernard, P.Geo

TerraLogic Exploration Inc.

Suite 200, 44-12th Ave S.

Cranbrook, BC

V1C 2R7

Date

October 26,2012

ldegroot

Text Box

BC Geological Survey Assessment Report 34018

SUMMARY

TerraLogic Exploration Inc. was contacted by David Sherwood to assess his claim for its potential tohost economic gold placer deposits. The scope of work included an evaluation of alluvial deposits andtheir distribution, as well as an assessment of the general topography during a first site visit on August2nd, 2012. Following the discovery of a set of rusty quartz veins, TerraLogic was asked to sample thebedrock and evaluate its potential for gold and base metals.

The claim is situated in the Fort Steele Mining District of south British Columbia; N.T.S. 82F019, Mapsheet, Moyie Lake. The placer claim lies astride the Moyie River, upstream from the junction of NorthMoyie Creek covering an area of 84.16 hectares. The property is located 30 km southwest ofCranbrook and 13km west of Highway #3 on the Lumberton road.

The area of economic interest is located within the auriferous gravels deposited during the Tertiary ageand underlain by sedimentary rocks of the middle division of the Aldridge Formation. The bedrocksediment package is dominated by quartzite and argillite. A series of “en echelon” orangy brown quartzveins are present in the western central part of the claim. These veins were sampled as the potentialsource of the gold placer.

The overburden varies between 2-20m thick towards the eastern side of the claim and thickens upslopefrom the river. It comprises three distinct sediment layers. The seismic survey done by Tiarra in 1983shows potential gold bearing channels on both sides of the river.

It is believed that the Moyie River was one of the largest historic gold placer producer in the EastKootenays. A lot of gold placer development work has been done downstream of the DavidSherwood's claim.

In light of the geomorphological and geological conditions where gold bearing channels werediscovered on the Moyie river; it is favorable to concentrate exploration efforts in areas where:

• tertiary channels are parallel to the north and west banks of the Moyie River valley

• the bedrock gradient varies from 1.51 to 3.88 per cent

• the bedrock/tertiary channel interfaces consist of friable, oxidized (limonitic, hematitic) andfractured argillite

The field investigation along with the review of historical gold placer work on the Moyie River showthat the claim has great potential to host economic placer depostis. The bedrock is fractured andoxydized enough to allow gold to be deposited and the slope gradient in specific areas is less than 4%,making it a favourable environment for gold depositon and placer operations.

The rock samples collected on the western side of the property show gold values that are encouragingand suggest a favorable gold rich bedrock.

After a review of the best geomorphological and geological conditions to accumulate auriferousgravels, four trenches have been outlined as a first step of physical exploration work to test the goldpotential in the surficial material.

Table of Contents

Introduction................................................................................................................................................1Location, access and physiography............................................................................................................1Geology......................................................................................................................................................4Regional Bedrock Geology .......................................................................................................................4Property Bedrock and Surficial Geology ..................................................................................................4Economic Surficial Geology Summary and Historical Work....................................................................8Phase I Exploration Program....................................................................................................................11Conclusions ............................................................................................................................................18Recommendations....................................................................................................................................19References................................................................................................................................................19

List of Figures

Figure 1 – Property Location map.............................................................................................................2Figure 2 – Tenure Map...............................................................................................................................3Figure 3a – Regional Geology Map...........................................................................................................6Figure 3b – Regional Geology Legend......................................................................................................7Figure 4 – Compilation Map....................................................................................................................10

List of Tables

Table 1 – Sample Location and Description............................................................................................14Table 2 – Sample concentration for gold and base metals.......................................................................17

List Of Appendices

Appendix I – Statement of Qualifications

Appendix II – Statement of Expenditures

Appendix III – Sampling Techniques

Appendix IV – Analytical Certificates

Appendix V- Historical Reports

Moyie Placer – Phase I Exploration Report Page 1

INTRODUCTION

TerraLogic Exploration Inc. was contacted by David Sherwood to assess his claim for its potential tohost economic gold placer deposits. The scope of work included an evaluation of alluvial deposits andtheir distribution, as well as an assessment of the general topography during a first site visit on August2nd, 2012. Following the discovery of a set of rusty quartz veins, TerraLogic was asked to sample thebedrock and evaluate its potential for gold and base metals.

This report reviews briefly the regional and local geology and describes the work conducted during the2012 site visits. As a result of the field investigation, potential zones to trench and channel sample aswell as restricted boundaries or areas with low economic potential have been outlined (see Figure 4).

Location, access and physiography

The claim is situated in the Fort Steele Mining District of south British Columbia; N.T.S. Mapsheet82F019, Moyie Lake (Figure 1). The placer claim lies astride the Moyie River, upstream from thejunction of North Moyie Creek and is comprised of four cells covering an area of 84.16 hectares. Thecentral part of the property is situated in UTM NAD (83) Zone 11N, with coordinates 567078E and5468376N and with dimensions of 1km long and 1 km wide (Figure 2). The claim number is 935876and is 100% owned by David Sherwood. It was acquired in December 2011 and has a current expirydate of December 2012.

The property is located 30km southwest of Cranbrook and 13km west of Highway #3 on theLumberton road. An excellent all-weather road allows easy access to the north of the property via ahigh voltage power line and an ATV trail gives access from the road to the river.

The study area is situated in the Moyie Range of the Purcell Mountains at an approximate elevation of1,300m A.S.L. The valley floor varies in elevation from 150 to 300m, with an alluvial plain of 5 to 50mwidth surrounding the creek. Note that some areas of the river banks on the property are steep andexpose bedrock. Most of the property is well vegetated apart from swampy areas at the eastern end ofthe property. The claim is sparsely treed with second growth timber consisting mainly of large whitepoplar and minor small to medium sized pine and spruce.

TerraLogic Exploration Inc. October 26, 2012

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Calgary

BritishColumbia

Alberta

Yukon TerritoryNorthwest Territories

P a c i f i c Oc e a n

Alaska

Washington Idaho

Moyie Placer

_̂

Terrace

Cranbrook

Victoria

Edmonton

Vancouver

WhitehorseYellowknife

Prince George

120°0'0"W

120°0'0"W

130°0'0"W

130°0'0"W60

°0'0"N

60°0'

0"N

50°0'

0"N

50°0'

0"N

0 80 160 240 320

Kilometers

³

Moyie Placer Figure 1 - Property Location Map

Projection - NAD 1983 UTM Zone 11NScale - 1 : 7 500 000

Date - 12/10/2012Drawn By - JKK

T Lerra ogic Exploration Services

GF

GF

4500

5000

5500

5500

UPPER MOYIE

935876

BROOK

565000

565000

566000

566000

567000

567000

568000

568000

569000

569000

54

67

00

0

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Legend

Access Road

Road

River

Contour 100 ft

Tenure

Water Body

Projection - NAD 1983 UTM Zone 11NScale - 1 : 20,000



200 0 200 400 600 800100

Meters


GEOLOGY

Regional Bedrock Geology

The Moyie area is central to the Purcell Anticlinorium, a broad generally north-plunging structure insoutheastern B.C. The claim area is underlain by Aldridge Formation rocks of the Precambrian PurcellSupergroup. The Aldridge Formation is a classic deep water turbidite sequence consisting of finegrained argillitic units strongly cleaved and metamorphosed to lower greenschist facies with theassociated development of pyrite cubes and quartz veinletes (Figure 3a and 3b). The AldridgeFormation is cut by numerous Moyie diorite intrusive sills and stocks consisting of 50% hornblende, 40- 45% plagioclase and 5 - 10% quartz of probable Jurassic age. The claim lies in the hanging wall ofthe Moyie Fault, a major regional right-lateral reverse fault. The area of economic interest is located within the auriferous gravels deposited during the Tertiary age.Gold mineralization associated with sulphide occurrences are common to the north and west of theMoyie River within both the Creston and Aldridge Formations. These occurrences are commonlyassociated with fault intersections in close proximity to igneous intrusives. These hardrock deposits arethe principal sources of the gold found in the Moyie River placer deposits. A large diorite intrusionlocated within the Moyie River acted as a natural dam and impeded the downward erosion of theoriginal Moyie channel. This instrusive plug is also responsible for the injection of numerous sillsparallel to the bedding of the gently dipping sediments above the creek. These sills, varying inthickness from a few meters up to ten meters, resisted erosion and created a network of natural rifflesfavourable for placer gold depostion, (Henrick M.P., 1990).

Property Bedrock and Surficial Geology

David Sherwood's property is underlain by sedimentary rocks of the middle member of the AldridgeFormation. This sedimentary package is dominated by medium to thickly bedded fine to mediumgrained quartzite to the west and transitions towards a very fine grained argillite to the east (Figure 3a).The majority of the bedrock exposed is located along the river cut and show evidence of hydrodynamicfeatures (i.e. Pot holes, ripple marks, etc).

A series of “en echelon” orange-brown quartz veins are present in the western central part of the claim.The veins avergage 0.3m in width, typically oriented at 278°/90° and host up to 20% pyrite, 5%chalcopyrite and 5% arsenopyrite. The rocks surrounding the veins are affected by sericite, chlorite,hematite, biotite and argillitic alteration. The veins are repeated every 1-5m and extend over at least700m.

The most prominent bedrock exposures are situated along the Moyie River and form 2-5m steep-sidedwalls represented by the orange colored area on the Trench map (Figure 4). The western side of theproperty has a flat bedrock exposure that slopes easterly between 3-20%.

The overburden varies between 2-20m towards the eastern side of the claim and thickens upslope fromthe river. It comprises of a thin surface layer of loose dry fluvial sands and gravels; a more compactfluvial sands and gravels layer and a fairly consolidated sand and gravels till layer (Mark D.G., 1983).The seismic survey completed by Tiarra in 1983 indicates swelling of the compact fluvial sands



towards the bank which indicates that the river was once a lot larger or has had varied channellocations over time. Note that the overburden cover does not comprise all three layers at all locations.This could be indicative of a lateral travel of the river and represents a higher possibility forpaleochannels to be present.


GF

GF

GF

GF

GF

GF

GF

GF

Mp-Am

Mp-Am

Mp-Am

Mp-Cl

Mp-Am

Mp-Cm

Mp-Am

Mp-Am

Mp-Au

Mp-Cm

Mp-Al

Mp-Afr

Mp-Afr

Mp-Am

Mp-Am

Mp-Afr

Mp-Afr

Mp-Afr

Mp-Am

Mp-Am

Mp-Afr

Mp-Afr

Mp-Afr

Mp-AfrMp-Am

Mp-AmMp-Am

Mp-Am

Mp-Am

1600

1500

1700

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1400

1900

2000

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2000

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1700210 0

1700

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2000 1900

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1800

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ICE

BROOK

DAVID

WEAVER

LEW VENT

MOYIE RIVER

ROYAL CROWN

WEAVER CREEK

563800

563800

565800

565800

567800

567800

569800

569800

571800

571800

5464

040

5464

040

5466

040

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5468

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5472

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040

5474

040

0 500 1,000 1,500 2,000 2,500

Meters

³Legend*See Figure 3a for Geology Legend

GF Mineral Occurrance

Access Road

Contour (100ft)

River

Tenure

Water Body

Moyie Placer Figure 3a - Regional Geology Map

Projection - NAD 1983 UTM Zone 11NScale - 1 : 50 000



Cm-CCRANBROOK FORMATION: Quartzite, limestone,

calcite marble, dolomite marble, calc-silicate.

Cm-EEAGER FORMATION: Grey argillite, silty argillite,

siltstone; buff weathering, silty limestone; rare

bioclastic beds.

Ct-dia

Diatreme: Lamprophyre sills and dykes in the Middle

Aldridge Formation; brown weathering, carbonatized,

large megacrysts and xenocrysts of phlogopite, amphibole, and pyroxene in a fine-grained, dark

chloritic matrix; 10-80 percent by volume xenocrysts;

sedimentary, lower crustal, and mantle xenocysts;possibly Cretaceous in age

Ct-mu

CORN CREEK AND WEST CRESTON GNEISS: “

Mixed unit” (lit-par-lit gneiss): Meta-wacke and semi-pelite (Middle Aldridge Formation) intruded by

mylonitic granite and pegmatite sills

ECt-WC

WEST CRESTON GNEISS: Similar to Corn Creek gneiss; zircon U-Pb date of ~136 Ma (Brown et al.,

1995)

Ec-bx

Chloritic microbreccia; cataclasite; mylonitic granitic rocks; pale green, chloritesericite-clay altered

leucocratic granitoids

LCt-BMS

MOUNT SKELLY PLUTON: hornblende-biotite granite; pale grey to white, massive, medium-grained, and

potassium-feldspar megacrystic; local magmatic layering

occurs.

LCt-Rgn

RYKERT BATHOLITH: Medium-grained, light-grey,

biotite granite, monzogranite, and granodiorite; includes

Shorty Peak pluton and gneissic rocks; zircon U-Pb date of 99 ± 3 Ma (Brown et al., 1995). Note: previously

referred to as Kanisku batholith (Archibald et al.,

1984) and Selkirk Crest complex (Reesor, 1993)

Mp-Afr

ALDRIDGE FORMATION: Fragmental rocks interpreted

as sedimentary debris flows, breccias formed in dewatering

pathways, mud volcano debris, and hydrothermal breccias: stratiform and discordant matrix- and

framework-supported fragmental rocks consisting of

angular to rounded quartzite clasts having a size range of <2mm to >2m.

Mp-Al

ALDRIDGE FORMATION: LOWER: rusty brown

weathering, thin- to medium-bedded, quartz wacke, quartz arenite.

Mp-Alr

ALDRIDGE FORMATION: “Ramparts Facies” member:

light grey weathering, medium to thick-bedded, medium to fine-grained quartzite, quartz arenite and quartz

wacke; locallenticular bedding and cross-bedding;

rare rusty-brown quartz wacke layers towards base of the exposed section.

Mp-Am

ALDRIDGE FORMATION: MIDDLE grey to rusty

weathering, thick- to thin-bedded, quartzofeldspathic wacke, intercalated argillite and siltite,

Mp-Au

ALDRIDGE FORMATION: UPPER: rusty brown

weathering, grey to dark grey, fissile to platy, laminatedsilty argillite and siltite.

Mp-C

CRESTON FORMATION: Undivided meta-sedimentary

rocks: light grey, mauve, or green siltstone and argillite;thin to medium-bedded quartz arenite, quartz wacke

;lenticular bedding, ripples,cross-bedding, and mudcracks

Mp-Cl

CRESTON FORMATION: LOWER: waxy-green to

olive, tan-weathering, thin to thick-bedded to laminated

argillite and siltstone; lesser fine-grained quartz wacke; wavy bedding and abundant mudcracks common.

Mp-Cm

CRESTON FORMATION: MIDDLE: light grey, mauve

, or purple, thin to medium-bedded quartz arenite; quartz wacke; lesser grey siltstone and argillite; white quartzite

interbeds; lenticular bedding, ripples, cross-bedding,

and mudcracks occur locally.

Mp-Cu

CRESTON FORMATION: UPPER: green siltstone;

black or purple argillite and siltstone.

Mp-DC

DUTCH CREEK FORMATION: Sedimentary rocks;

green siltstone, argillite, stromatolitic dolomite, quartz

wacke.

Mp-DCa

DUTCH CREEK FORMATION: Calcareous phyllite;

laminated to microlaminated argillite; phyllitic siltstone;

sericite schist; lenticular sandstone beds.

Mp-DCd

DUTCH CREEK FORMATION: Dolomite; dolomitic

phyllite; clean dolomite with stromatolites; minor quartzite;

mauve phyllite, argillite, and siltstone; dolomite breccia layers at the Leg Property

Mp-DCs

DUTCH CREEK FORMATION: Pale green chlorite-

sericite phyllite with distinctive but minor mauve quartz arenite beds up to 2 m thick.

Mp-K

KITCHENER FORMATION: Undivided meta-sedimentary

rocks: thin-bedded, brown-weathering dolomitic silt stone and green argillite.

Mp-Ka

KITCHENER FORMATION: Graphitic phyllite; pyritic

and rusty brown weathering

Mp-Kd

KITCHENER FORMATION: Dolomitic siltstone; dolomitic

argillite; dolomite, commonly buff-weathering; argillite; siltstone; quartzite; green-tinged dolomitic siltstone near

the base

Mp-Kl

KITCHENER FORMATION: LOWER: green and beige siltstone, dark grey argillite; dolomitic siltstone.

Mp-Kla

KITCHENER FORMATION: LOWER: green and beige siltstone, dark grey argillite; dolomitic siltstone. Grey

carbonate member.

Mp-M

MOYIE INTRUSTIONS: “Moyie sills”: dark-green to black, medium to fine-grained gabbro and hornblende

quartz diorite sills and dikes; several to hundreds of

metres thick.

Mp-MN

MOUNT NELSON FORMATION: Undivided sedimentary

rocks

Mp-MNa

MOUNT NELSON FORMATION: Thin-bedded to

laminated argillite, phyllitic argillite, and siltstone; brown

phyllite with quartz pebbles and granules; mauve to purple wacke and phyllitic siltstone; pale green sericitic phyllite;

intercalated quartz gritstone of unit m MNq

Mp-MNcMOUNT NELSON FORMATION: Calc-silicate

Mp-MNdl

MOUNT NELSON FORMATION: Lower dolomite:

buff dolomite and minor grey limestone; thin-bedded

to laminated

Mp-MNdu

MOUNT NELSON FORMATION: Upper dolomite:

buff to grey dolomite, dolomite with quartz lenses and

pods; minor blue-white, coarse to medium-grained quartzite and quartz gritstone layers up to 2 m thick

Mp-MNp

MOUNT NELSON FORMATION: Phyllitic argillite and

siltstone with flattened siliceous quartz veins (or clasts?)

Mp-MNq

MOUNT NELSON FORMATION: Medium to thin-bedded d

quartzite, white, grey, and green, blue quartz granules, rare white potassium-feldspar fragments; argillite; argillaceous

siltstone; medium-bedded, wavy, lenticular bedding

(possible equivalent to the Buffalo Hump Formation, Deer Trail Group, Washington; cf. Miller and Whipple, 1989)

Mp-V

Unnamed Volcanic Unit: Basalt to andesite flows

(and sills?); dull to olive-green volcanic wacke siltstone; thin to medium-bedded

Qt-al

Unconsolidated sediments: alluvium; colluvium;

diamictiteMoyie Placer Geology Legend

GeologicContacts

Amphibolite

Contact Approx

Contact Arbitrary

Contact Assumed;

Contact Compiler

Contact Defined

Contact Quaternary

Contact Subdivided

Fault Approximate

Fault Assumed

Fault Defined

Fault Normal Approximate

Fault Normal Assumed

Fault Normal Defined

ªª ª

ª ª ªFault Reverse Assumed; Fault Thrust Ass

ªªªª Fault Thrust Defined

Granitic

Quaternary

Tertiary

Lower Cretaceous

Early Cretaceous

Cretaceous

Cambrian

Middle Proterozoic

Folds

Anticline Approximate

ÝAnticline_Approximate p

Anticline defined

ÝAnticline defined p; Syncline defined p

Anticline overturned

ÝAnticline overturned p

Syncline approx

ÝSyncline approx p

Syncline defined

Syncline overturned

ÝSyncline overturned p

Moyie Placer

Figure 3b - Regional Geology Legend

TerraLogic Exploration Services


Economic Surficial Geology Summary and Historical Work

It is believed that the Moyie River was one of the largest historic gold placer producers in the EastKootenays. The area has seen placer exploration and mining work since 1890. A list of pertinentexploration reports is included in Appendix V for reference. Note that some of these reports aredescribing hard rock exploration work for areas that are outside the present zone of investigation; thesereports are useful to provide a regional geological context of the area.

One of the reports describes the results of a 575 meter seismic refraction survey completed on theproperty by Tiara Resources Limited. Relevant information regarding potential channel locations andoverburden thickness have been extracted and taken into consideration for the proposed trenchlocations.

Historical reports of the Moyie area attribute the presence of gold rich channels to gentle bedrockgradients ranging from one to four percent, creating a geomorphological environment that is favourablefor trapping gold. It is believed that the Moyie River eroded a narrow canyon drainage similar inconfiguration to the present valley during the late Cenozoic Era (Henrick M.P., 1990). It is a commonpractice to refer to the gold bearing placer channel as a "Tertiary Channel", as this age of alluvialdeposition is so commonly associated with gold bearing placer deposits throughout the westernCordillera.

During the Pleiocene period, glaciation cut a very broad "U" shaped valley, generally following theearly drainage. The bedrock walls bordering the original channel protected portions of the gold-bearingalluvial material from glacial scouring. Glacial till filled the valley and has only been partially removedto present levels by subsequent post glacial, high energy stream flows. The historical preglacial goldbearing channel (paleo channel) varies from 1-2m thick and lies in a bedrock trough somewhatparalleling the present drainage pattern.

A lot of gold placer mining work has been completed downstream of the David Sherwood's claim.Among them, Cominco historically reported 243,125 cubic meters of material valued at $0.66 per cubicmeter at a gold price of $31.50 per ounce, giving an overall grade of 0.021 fine ounces per cubic meterover 1.5 claim lengths. Reported reserves based on incomplete drill lines gave 1,556,634 cubic metersvalued at $0.556 per cubic yard at $31.50 gold giving an overall grade of 0.018 fine ounces per cubicyard over 2.5 claim lengths. During 1941 and 1942, G. Taylor, under agreement with Cominco, wasallowed to mine by shaft and drifting method on the Helen placer claim (Queenstake's former claim).It is reported that he produced 28.6 crude ounces in 1941 and 18.6 crude ounces in 1942. The MoyieMining Company began mining operations in 1980 and mined through to the end of 1984. During1982, 112,390 cubic meters of gravel was excavated and 14,527 cubic meters of gravel washed. Thewashed material consisted of 2.15m depth of gravel and bedrock mined over a area of 7,154 squaremeters. The gravels consistently averaged a width of 13m with a stripping ratio of 5.3 to 1. The totalgold reportedly collected from this operation was 1,141 ounces averaging 925 fine with 85% beingnuggets greater than number four mesh. The overall grade for the material washed was 0.072 fineounces per cubic yard. A total strike length of 378m was excavated during the four years of mining.The channel throughout this section averaged 53m in width with a constant 2% longitudinal gradient.Bedrock throughout this section consisted of shallow dipping middle Aldridge sediments, mainlyargillites (Henrick M.P., 1990).



In light of the geological and geomorphological conditions where gold bearing channels werediscovered on the Moyie river; it is favorable to concentrate exploration efforts in areas where:

• Tertiary channel are parallel to the north and west banks of the Moyie River valley.

• Bedrock gradient varies from 1.51 to 3.88 per cent. A steep gradient to the channel andnarrowness are negative factors for particulate gold entrapment.

• Bedrock/tertiary channel interfaces consist of friable, oxidized (limonitic, hematitic) andfractured argillite. Hydrodynamic features such as pot holes, ripple marks, etc are actingsimilarly to fractures and are favorable environments for gold to deposit. Ultimatly, argillites incontact with upper Purcell Moyie diorites are the best environments to find gold. Massive,competent diorite, quartzite or silicified argillite bedrock surfaces have a tendency to cause theTertiary channel to narrow.


!=

#*#*#*#*#*#*#*#*#*#*#*#*#*#*#*#*#*#*#*#*#*#*#*#*#*#*#*

Trench 1

Trench 2 Trench 3

Trench 4

See Inset A

See Inset A

ABWPG001

ABWPG008

ABWPG007

ABWPG006

ABWPG005

ABWPG004

ABWPG002

ABWPG009

ABWPG010

ABWPG003

4500

5000

5500

566000

566000

567000

567000

5468

000

5468

000

5469

000

5469

000

LegendGeo Stations

#* Rock Samples, Au ppb, Ag ppm

!= cabin

Access RoadTrailRiverTenure

Suggested Work PlanPotential gold placer areaNo overburdenProposed trench locationRestricted Area

Moyie Gold PlacerFigure 4 - Compilation Map

Projection - NAD 1983 UTM Zone 11NScale - 1 : 10,000



100 0 100 200 300 40050

Meters

³

#*

#*

#*

#*

#*

#*

#*

#*

#*

#*

#*

#*

#*

#*

#*

#*

#*

#*

#*

#*

#*

#*

#*#*

#*

#*

#*

ABWPR-012, 5, 0.4

ABWPR-024, 69, 0.3 ABWPR-008, 52, 7.8

ABWPR-027, 771, 1.9

ABWPR-023, 2.5, 0.1

ABWPR-021, 2.5, 0.1

ABWPR-018, 2.5, 0.2ABWPR-017, 2.5, 0.2ABWPR-015, 2.5, 0.3

ABWPR-014, 2.5, 0.3

ABWPR-013, 2.5, 0.4

ABWPR-011, 2.5, 0.9

ABWPR-010, 2.5, 1.9ABWPR-009, 2.5, 4.6

ABWPR-007, 2.5, 8.1ABWPR-006, 2.5, 1.8

ABWPR-005, 2.5, 8.8

ABWPR-028, 2.5, 0.001

ABWPR-026, 2.5, 0.001

ABWPR-025, 2.5, 0.001

ABWPR-022, 2.5, 0.001

ABWPR-020, 2.5, 0.001

ABWPR-019, 2.5, 0.001ABWPR-016, 2.5, 0.001

ABWPR-004, 2.5, 0.001ABWPR-003, 2.5, 0.001ABWPR-002, 2.5, 0.001

566728

566728

566730

566730

566732

566732

566734

566734

566736

566736

566738

566738

5467

798

5467

798

5467

800

5467

800

5467

802

5467

802

5467

804

5467

804

5467

806

5467

806

Rock Sample LocationScale 1:100

Inset A


Phase I Exploration Program

TerraLogic Exploration was contracted by David Sherwood in July 2012 to investigate the gold placerpotential on his claim The scope of work consisted of a one day site visit with the claim owner todetermine potential trench areas and inform the claim owner about the local geology. A series ofstations were evaluated to determine the topography, the bedrock geology and the sedimentcomposition (see description below). After a review of the historical work in the area and taking intoconsideration the best factors involved the production of auriferous gravel deposition, a trench mapwas produced to show the highest prospective areas to conduct further exploration work. (Figure 4).

Geological Stations

Station ABWPG001 (UTM: 566861E, 5468122N)

The bedrock in the river bed consists of a light grey quartzite, highly fractured and smooth. There aretwo sets of fractures; one oriented at 90° and one oriented at 180°. Abundant large quartz veins arepresent in the river bedrock or in boulders. The veins have a rusty orange brown color with a coarsematrix and host 5-10% chalcopyrite by volume. Sericitic and argilitic alteration are present locally.Rock sample ABWPR-001 was collected at this locality.

The north side of the river, on the western side of the claim, is composed of large angular to semi-rounded boulders, with gravel and sand. This area consists of a depositional bank and could be a goodarea to perform a hand test pit.

Station ABWPG002 (UTM:566820E, 5468047N)

The semi-angular boulders, gravel, sand and rusty brown color silt are indicative of an old river bed,which sits on a argillite bedrock. Note that the softness of argillite is favorable for gold to deposit dueto the mount of fractures and hydrodynamic features (i.e. pot hole, ripple marks) present at the interfaceof the bedrock and sediments. This area is highlighted as Trench 4 on the Moyie Gold Placer map(Figure 3a). Due to the steepness of the terrain above, hand work is recommended and is thereforeconsidered as a low priority to investigate.


A large quartzite outcrop is located in the Moyie river bed with fracture sets oriented at 45° and 120°.The quartzite is fine grained with sericitic alteration. The bedrock slopes at 18° downstream, which istoo steep for coarse gold to settle. Some angular quartzite boulders are present and host 5-10cm orangebrown quartz veins with 5% chalcopyrite and 2% pyrite.


Quartzite bedrock is located in the river bed and on surrounding river banks with fracture sets runningat 45° and 135°, creating a favorable texture to intercept and deposit gold.


There are multiple small creeks located 20m north of the Moyie River. Historical geophysical worksuggests this is a location of a potential gold rich channel with bedrock at a depth of approximately3.5m. This area would be a potential good test pit location. Note that heavy equipment could be usedhere as the location is adjacent to the current access trail.




A flat area and the sediments below suggest this is could be an old river channel location. This area hasno exposed bedrock and is mainly cleared of trees besides a few alders. Historical geophysical worksuggests this is a location of a potential gold rich channel with a bedrock depth of approximately 5m.This area is the highest priority trench location (Trench 1).

Note that a potential road could be built from this location up to the power line or branching with theexisting access trail to avoid disturbance near the hunting guides cabin and allow closer access to theother side of the river (Trench 3).


Similar to station ABWPG006, this area is flat and the sediments below suggest it could be the locationof an old river channel. This area has no exposed bedrock and is mainly cleared of trees besides a fewalders. It could be a good trench location, although it is located at the edge of the claim boundary.

A one meter deep test pit showed the sediments to be comprised of rounded cobbles with abundant darkbrown color clay and silt.


Located on the south side of the Moyie River, this is another flat area where the sediments belowsuggest its a potential location of an old river channel. There is no outcrop at this station and the groundsediments are composed of light brown sub angular to angular boulders, cobbles, gravel, sand and silt.Although not highlighted as a potential gold rich channel in historical geophysical work, the surveyshows “V” shape features that can be linked on all the geophysical lines, which could be indicative of asouthern channel. This area would be a good trench location (Trench 3) after assessing the results fromTrench 1 and 2, which are easier to access. This location would require appropriate authorizations andpreparation to be accessed.


Similar to station ABWPG008, this area is flat and the sediments below suggest it could be the locationof an old river channel. There is no outcrop at this station and the ground sediments are composed oflight brown sub angular to angular boulders, cobbles, gravel, sand and silt. This area could also be apotential good trench location.


This area is flat and covered with fluvial sediments. Historical geophysical work indicates that achannel could potentially link to this location, making it a good trench location (Trench 2),with existingaccess. There is no outcrop or exposed ground available. Note that the terrain becomes too steep forheavy machinery further west. Any work westerly of that location needs to be done manually unless aroad is built from the power line down.



Trench work and geochemical results:

Following the site visit, the owner of the property contacted TerraLogic Exploration to investigate rustyquartz veins located on the western edge of the claim. The quartz veins were sampled along with theiralteration envelopes to determine their metal concentrations, including gold, to determine if it could bea potential upstream gold source that could be eroded and redeposited within river channels. Table 1below shows the location of the rock samples with their corresponding descriptions. The geochemicalresults can be found in Table 2 and Figure 4.



Table 1 – Sample Location and Description

Sample ID UTME* UTMN* Sample Description

ABWPR-001 566861 5468122Very rusty quartz vein hosts 20% Py,trace to 5% Ccp and trace to 5% AsPy. Therock is greenish where sericite alteration is present, blueish and bleachedlocally. Biotite alteration appears in occasional clots with minor hematite.

ABWPR-002 566737 5467803Alteration zone in quartzite adjacent to mineralized qzt vein. Alteration wallconsist of massive biotite cloths and sericite/chlorite flooding.


















*UTM are in NAD 83 projection, zone 11N

As highlighted in Table 2 below, the results of the sampling indicate that the bedrock has someinteresting gold values as a first round of sampling. The quartz vein sampled by ABWPR-027 returneda gold value of 0.771 ppm. In most cases, gold concentration is directly related to the presence ofquartz veining but the alteration vein envelopes in some localities also contained anomalous goldvalues. In the case of silver, the highest results were found in samples ABPR-005, ABPR-007 andABPR-008 and are associated with the vein envelope on the northern side of the sampling area.Elevated copper values were also associated with the veining and vein envelopes. The veins sampledaveraged approximately 35cm wide with a 35cm alteration envelope on either side of the vein.

Though the gold results are not economic, the structure of the veins, the alteration of the bedrock andthe mineral composition are good indicators that the geological context is favorable for goldmineralization.



Table 2 – Sample concentration for gold and base metals

Sample IDGold*

(PPM)Gold** (PPM) Copper (PPM)

Lead

(PPM)

Zinc

(PPM)

Silver

(PPM)

ABWPR-001 0.000 0.000 46.900 2.600 2.000 0.000

ABWPR-002 0.000 0.000 9.400 8.900 27.000 0.000

ABWPR-003 0.000 0.000 324.300 1.400 7.000 0.000

ABWPR-004 0.000 0.000 15.300 5.400 21.000 0.000

ABWPR-005 0.000 0.002 100.600 7.900 29.000 8.800

ABWPR-006 0.000 0.000 46.400 10.700 68.000 1.800

ABWPR-007 0.000 0.000 21.400 15.400 71.000 8.100

ABWPR-008 0.052 0.006 120.800 39.600 29.000 7.800

ABWPR-009 0.000 0.000 69.600 13.800 15.000 4.600

ABWPR-010 0.000 0.004 20.600 5.200 15.000 1.900

ABWPR-011 0.000 0.000 22.600 15.600 60.000 0.900

ABWPR-012 0.005 0.003 16.400 4.800 12.000 0.400

ABWPR-013 0.000 0.000 22.300 8.600 31.000 0.400

ABWPR-014 0.000 0.000 8.100 11.900 29.000 0.300

ABWPR-015 0.000 0.000 10.000 4.500 56.000 0.300

ABWPR-016 0.000 0.000 6.000 12.400 17.000 0.000

ABWPR-017 0.000 0.000 17.600 9.000 23.000 0.200

ABWPR-018 0.000 0.000 41.700 5.000 24.000 0.200

ABWPR-019 0.000 0.000 12.800 9.100 22.000 0.000

ABWPR-020 0.000 0.000 15.800 7.800 16.000 0.000

ABWPR-021 0.000 0.003 27.900 1.500 7.000 0.100

ABWPR-022 0.000 0.002 9.000 6.700 16.000 0.000

ABWPR-023 0.000 0.000 24.700 20.300 51.000 0.100

ABWPR-024 0.069 0.011 23.700 30.300 15.000 0.300

ABWPR-025 0.000 0.001 15.200 25.900 51.000 0.000

ABWPR-026 0.000 0.000 25.700 23.000 80.000 0.000

ABWPR-027 0.771 0.628 604.700 171.100 34.000 1.900

ABWPR-028 0.000 0.004 15.700 16.700 40.000 0.000

*Using 30g digestion analytical technique-overwrite 0.5g digestion technique.** Using 0.5g digestion analytical technique.



CONCLUSIONS

The field inverstigations along with the review of historical gold placer work on the Moyie Riverindicate that David Sherwood's claim has strong potential to host significant gold placer mineralizationand warrants future exploration work. The bedrock is fractured and oxydized and the slope gradient inspecific areas is less than 4%, both favorable environments for gold deposition.

The bedrock samples collected on the western side of the property returned gold values that areencouraging and suggest a favorable geological environment for gold mineralization. In most cases,the gold concentration is directly related to the presence of quartz veins but the vein alterationenvelopes also contain anomalous gold values. In the case of silver, the highest concentrations wereassociated with the vein envelope on the northern side of the sampling area. Elevated copper valueswere also associated with the veining and vein envelopes.

After a review of the best geomorphological conditions to accumulate placer gold, four trenches tosample the surfical sediement have been outlined as the next phase of physical exploration work. Asnoted on the Compilation Map (Figure 4), some areas are unfavorable for channel development andshould be avoided.



RECOMMENDATIONS

In light of the field investigations, four trenches are proposed to evaluate the gold placer potential ofthe property. The trenches have been numbered according to their priority. The factors taken intoconsideration to prioritize the trenches included :

• the presence of potential old river channels on the historic seismic survey,

• the depositional environment (bedrock, slope, fracturation, oxydation, etc.),

• the surface area available to allow a maximum volume of pay dirt in case of discovery

• the access to the location.

As shown on Figure 4, work on the south side of the Moyie river (Trench 3) is suggested because thisarea consists of a large flat surface that could be economic to develop if gold concentrations were highenough. Since access exists on the north side of the river, it is suggested to investigate Trenchs 1 and 2first. Trench 4 could also be a potential target though this area is well vegetated and would be moredifficult to access with heavy machinery.

To evaluate the economic placer potential of the surficial sediments on the property, it is recommendedto grid the proposed trenches in m intervals. The maximum allowable trench dimensions are 15 mlong, 5 m wide and 3 m deep (BC regulations). Once the trench has been dug out using an excavatordown to bedorck or 3 m if bedrock is not encountered by then, hand sampling can proceed using atrowel or shovel, systematically taking samples 1 m long, 1 m wide and 10 cm deep into the trenchwall. Each sample would then consist of 0.1 cubic metres of material. All samples should be processedwith common sluicing equipment or by gold pan. In between the collection of each sample, it isimportatnt to clean the sampling equipment to avoid any contamination across samples. These samplesshould be labelled according to their location and described in terms of overall color, sedimentcomposition, presence of gold flakes, etc.

All physical exploration work should be conducted in accordance with the rules and regulations setforth by the BC goverment and permitting.

REFERENCES

Henrick M.P. (1990) Moyie River Project; prepared for Queenstake Resources Ltd

Mark D.G. (1983) Seismic Refraction Survey; prepared for Tiara Resources Ltd.


Appendix I – Statement Of Qualifications

CERTIFICATE OF AGATHE N. BERNARD, P.Geo.

I, Agathe N. Bernard, P. Geo., of 44-12 th Avenue South, Cranbrook, B.C., hereby certify that:

I graduated from of Laval University, Quebec City with a Bachelor Degree in Geology, 2006.

I have worked a collective total of 6 years as an Exploration geologist and as aenvironmental scientist since graduation.

I have been actively involved in mining and exploration geology, primarily in theProvince of British Columbia, for the past 5 years.

I am a member of the Association of Professional Engineers and Geoscientists of theProvince of British Columbia (#152234).

I have been employed by TerraLogic Exploration Inc. Since 2012.

I was the Project Manager for the Moyie Gold Placer project, and conducted the fieldwork on the property.

I am the author of this report titled, “Phase I Exploration Report on the David Sherwood(Moyie Placer) Property”..

Dated this 18th day of October, 2012 at Cranbrook, B.C.

Agathe N. Bernard

Agathe N. Bernard, P.GeoQualified PersonDated this 18th day of October, 2012, in Cranbrook, B.C.

Appendix II – Statement of Expenditures

Personnel/Item Description Days Rate Subtotal Totals

Field

Project Management Agathe Bernard 2.00 $675.00 $1,350.00

Field geology James Price 1.00 $450.00 $450.00

$1,800.00 $1,800.00

Office Pre field (preparation)

and post field (reporting) Days

Project overview Jesse Cambell 0.40 $725.00 $290.00

Project Management, field work

preparation and report writing Agathe Bernard 7.65 $575.00 $4,398.75

Project data specialist Chris Galagher 0.27 $725.00 $195.75

Report review Aaron Higgs 0.60 $625.00 $375.00

GIS compilation Jason Kolcun 2.0 $350.00 $700.00

$5,669.50 $5,669.50

Transportation No. Rate Subtotal

Truck rental/insurance $0.00 $159.76

Milleage 65.00 $0.30 $19.50

$179.26 $179.26

Geochemical Analysis

Number of

Samples No. Rate Subtotal

Rock 28 $0.00 $873.24

$873.24 $873.24

Geological and Geochemical

Map Plotting $0.00 $62.40

Geological Supplies

Sampling Consumables

sample bags, tags,

flagging, etc…

$62.40 $62.40

Equipment Rentals per day

Field Gear (Specify)

pack with gear,

GPS, palm, etc… 3.00 $35.00 $105.00

Rock Saw 1.00 $15.00 $15.00

$120.00 $120.00

Freight

Rock shipment $0.00 $64.59

$64.59 $64.59

TerraLogic Exploration

Handling and Adminstration

Fees

$64.59 $64.59

TOTAL Expenditures $8,833.58

Moyie Gold Placer 2012

Phase I Exploration

Appendix II – Sampling Techniques

3.1 Handling and Sampling Protocol

All rock samples were collected by TerraLogic Exploration Services Inc. employees directly at therespective sample sites. The rock sample were then transported from the field to the TerraLogicfacilities at 2779-13th Street South, Cranbrook, B.C.

The rock samples were sampled on 0.35 meter intervals and were 5cm wide.

The analytical samples were put into a poly bag with the sample number written on the side of the bagand on a strip of flagging was inserted in the bag. Standards were inserted every 10th sample interval.Standards were from West Coast Minerals Ltd.

For shipping, all samples were placed in a large rice bag along with the completed shipping form andanalytic request form. Once the list of samples matched the database records, the rice bags were sealedwith a tamper-proof cable tie. Sample shipments were taken to Greyhound bus station by TerraLogicemployees and send to ACME Laboratories in Vancouver, BC.

3.2 Analytical Techniques

Acme Labs Ltd. of Vancouver, B.C. performed the geochemical analysis for the 2012 Moyie GoldPlacer project. The entire sample was crushed to 80% passing 10 mesh and then approximately 1000gof sample was pulverized to 85% passing 200 mesh. Analysis included a 0.5g aqua-regia / ICP-MSmulti-element scan (36 elements) and a 30g fire assay fusion / AAS Au analysis.

QAQC

Quality assurance and quality control of the analytical data was done internally by TerraLogicExploration. Both external QAQC data (submitted by TerraLogic) and internal QAQC data (submittedby ACME) we analyzed. Blanks showed no evidence of cross contamination and all standards returnedAu values within acceptable limits. One repeat of ABWPR027 returned a highly variable result (138%difference) which could be consistent with the presence of nuggety gold.

3.3 Software Used

The following is a list of software used in the field and writing of this report:

Arc GIS 9.3

Microsoft Office

Open Office

Adobe Acrobat 9

Appendix IV – Analytical Certificates

1020 Cordova St. East Vancouver BC V6A 4A3 Canada

Client:

Submitted By:

Receiving Lab:

Received:

Report Date:

Page:

Suite 200, 44 - 12th Ave. S.

Cranbrook BC V1C 2R7 Canada

Jesse Campbell

Canada-Vancouver

September 06, 2012

Method

Code

Code Description Report

Status

SAMPLE PREPARATION AND ANALYTICAL PROCEDURES

Test

Wgt (g)

Number of

Samples

Lab

R200-1000 Crush, split and pulverize 1kg of sample to 200 mesh28 VAN

G601 Fire Assay Fusion Au - AAS Finish Completed3030 VAN

1DX1 1:1:1 Aqua Regia digestion ICP-MS analysis Completed0.530 VAN

ADDITIONAL COMMENTS

Chris GallagherCC:

Invoice To:

This report supersedes all previous preliminary and final reports with this file number dated prior to the date on this certificate. Signature indicates final approval; preliminary reports are unsigned and should be used for reference only.All results are considered the confidential property of the client. Acme assumes the liabilities for actual cost of analysis only. Results apply to samples as submitted.“*” asterisk indicates that an analytical result could not be provided due to unusually high levels of interference from other elements.

Acme does not accept responsibility for samples left at the laboratory after 90

days without prior written instructions for sample storage or return.

Dispose of Reject After 90 days

Store After 90 days Invoice for Storage

DISP-RJT

STOR-PLP

30

WP2012-1

WP2012-1

Mayre Gold Placer

Number of Samples:

P.O. Number

Shipment ID:

Project:

SAMPLE DISPOSAL

CERTIFICATE OF ANALYSIS VAN12004243.1

CLIENT JOB INFORMATION


Suite 200, 44 - 12th Ave. S.

Cranbrook BC V1C 2R7

Canada

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CERTIFICATE OF ANALYSIS VAN12004243.1 CERTIFICATE OF ANALYSIS VAN12004243.1

MDL

Unit

Analyte

Method WGHT G6 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX

Wgt Au Mo Cu Pb Zn Ag Ni Co Mn Fe As Au Th Sr Cd Sb Bi V Ca

kg ppm ppm ppm ppm ppm ppm ppm ppm ppm % ppm ppb ppm ppm ppm ppm ppm ppm %

0.01 0.005 0.1 0.1 0.1 1 0.1 0.1 0.1 1 0.01 0.5 0.5 0.1 1 0.1 0.1 0.1 2 0.01

G1 Prep Blank <0.01 <0.005 <0.1 2.3 2.5 46 <0.1 4.0 4.1 574 2.05 <0.5 1.6 4.6 48 <0.1 <0.1 <0.1 35 0.60

G1 Prep Blank <0.01 <0.005 <0.1 4.0 2.4 48 <0.1 3.7 4.2 578 2.00 <0.5 <0.5 4.8 56 <0.1 <0.1 <0.1 34 0.42

ABWPR-001 Rock 3.05 <0.005 0.1 46.9 2.6 2 <0.1 3.6 5.8 70 1.12 <0.5 <0.5 <0.1 <1 <0.1 <0.1 <0.1 <2 0.01

ABWPR-002 Rock 1.08 <0.005 0.5 9.4 8.9 27 <0.1 5.8 3.6 217 1.39 <0.5 <0.5 12.2 6 <0.1 <0.1 0.1 16 0.09

ABWPR-003 Rock 0.63 <0.005 0.4 324.3 1.4 7 <0.1 99.0 58.7 131 9.51 1.0 <0.5 0.9 2 <0.1 <0.1 0.3 <2 0.04

ABWPR-004 Rock 1.65 <0.005 0.3 15.3 5.4 21 <0.1 6.7 5.0 151 1.23 1.0 <0.5 7.0 9 <0.1 <0.1 0.2 7 0.18

ABWPR-005 Rock 0.71 <0.005 0.2 100.6 7.9 29 8.8 7.7 138.9 156 1.57 0.7 1.6 7.6 9 <0.1 0.1 0.2 12 0.16

ABWPR-006 Rock 0.90 <0.005 0.3 46.4 10.7 68 1.8 4.7 41.1 346 3.37 0.6 <0.5 4.7 8 <0.1 0.1 0.2 30 0.14

ABWPR-007 Rock 1.12 <0.005 0.3 21.4 15.4 71 8.1 4.6 26.7 342 1.99 <0.5 <0.5 23.0 17 <0.1 0.1 0.1 28 0.29

ABWPR-008 Rock 0.52 0.052 0.4 120.8 39.6 29 7.8 6.2 146.3 142 1.92 1.9 5.6 8.7 6 <0.1 <0.1 0.7 8 0.12

ABWPR-009 Rock 1.69 <0.005 0.2 69.6 13.8 15 4.6 10.2 58.1 98 2.35 1.4 <0.5 0.6 1 <0.1 <0.1 0.2 4 0.03

ABWPR-010 Rock 1.16 <0.005 0.3 20.6 5.2 15 1.9 5.0 20.6 136 0.97 1.5 3.5 12.0 11 <0.1 <0.1 <0.1 7 0.31

ABWPR-010S Rock Pulp 0.04 0.772 248.4 5818 108.3 162 19.4 12.3 29.3 314 7.16 33.6 730.3 0.7 106 0.7 18.0 3.8 230 1.24

ABWPR-011 Rock 1.72 <0.005 0.6 22.6 15.6 60 0.9 4.6 26.0 352 2.18 0.6 <0.5 25.2 14 <0.1 <0.1 <0.1 24 0.31

ABWPR-012 Rock 1.20 0.005 0.3 16.4 4.8 12 0.4 13.9 58.0 141 3.12 1.6 2.6 2.1 6 <0.1 0.1 0.5 7 0.07

ABWPR-013 Rock 1.18 <0.005 0.5 22.3 8.6 31 0.4 11.1 15.9 171 1.78 1.1 <0.5 7.0 6 <0.1 0.1 0.2 12 0.10

ABWPR-014 Rock 1.34 <0.005 0.5 8.1 11.9 29 0.3 4.2 9.3 190 1.20 0.8 <0.5 18.2 6 <0.1 <0.1 0.3 15 0.17

ABWPR-015 Rock 1.38 <0.005 0.2 10.0 4.5 56 0.3 5.0 14.5 347 2.28 0.7 <0.5 0.3 2 <0.1 0.1 0.2 35 0.02

ABWPR-016 Rock 1.02 <0.005 0.5 6.0 12.4 17 <0.1 3.4 5.5 137 0.79 0.6 <0.5 15.5 8 <0.1 <0.1 0.2 12 0.14

ABWPR-017 Rock 0.96 <0.005 0.4 17.6 9.0 23 0.2 3.6 10.8 161 1.38 <0.5 <0.5 24.0 5 <0.1 <0.1 <0.1 8 0.15

ABWPR-018 Rock 2.03 <0.005 0.3 41.7 5.0 24 0.2 3.5 15.4 166 2.14 1.1 <0.5 1.7 2 <0.1 0.1 0.1 15 0.04

ABWPR-019 Rock 2.12 <0.005 0.5 12.8 9.1 22 <0.1 9.5 7.8 129 1.21 0.6 <0.5 11.3 3 <0.1 <0.1 0.1 8 0.05

ABWPR-020 Rock 1.45 <0.005 0.7 15.8 7.8 16 <0.1 5.7 12.6 95 1.05 0.8 <0.5 9.3 3 <0.1 <0.1 0.3 7 0.05

ABWPR-020S Rock Pulp 0.04 0.817 210.4 5589 100.0 151 18.8 11.7 28.6 303 6.82 33.1 879.3 0.7 99 0.8 17.5 3.6 223 1.19

ABWPR-021 Rock 0.43 <0.005 0.4 27.9 1.5 7 0.1 7.0 30.0 107 1.81 1.1 2.6 0.4 <1 <0.1 0.1 0.2 6 <0.01

ABWPR-022 Rock 0.77 <0.005 1.0 9.0 6.7 16 <0.1 3.3 9.1 113 1.00 0.5 2.2 11.8 4 <0.1 0.1 0.2 12 0.08

ABWPR-023 Rock 1.21 <0.005 0.4 24.7 20.3 51 0.1 8.1 15.6 301 2.05 0.9 <0.5 10.5 11 0.1 0.1 0.5 22 0.26

ABWPR-024 Rock 1.51 0.069 0.2 23.7 30.3 15 0.3 10.9 53.4 176 3.40 4.5 10.5 2.0 4 0.1 0.1 2.7 7 0.10

ABWPR-025 Rock 0.69 <0.005 0.3 15.2 25.9 51 <0.1 5.5 9.5 332 2.14 0.7 1.0 11.6 8 0.1 0.2 0.3 22 0.21

ABWPR-026 Rock 1.00 <0.005 0.6 25.7 23.0 80 <0.1 9.3 6.8 385 2.99 1.4 <0.5 13.8 10 <0.1 <0.1 0.5 33 0.15

This report supersedes all previous preliminary and final reports with this file number dated prior to the date on this certificate. Signature indicates final approval; preliminary reports are unsigned and should be used for reference only. This report supersedes all previous preliminary and final reports with this file number dated prior to the date on this certificate. Signature indicates final approval; preliminary reports are unsigned and should be used for reference only.

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MDL

Unit

Analyte

Method 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX

P La Cr Mg Ba Ti B Al Na K W Hg Sc Tl S Ga Se Te

% ppm ppm % ppm % ppm % % % ppm ppm ppm ppm % ppm ppm ppm

0.001 1 1 0.01 1 0.001 20 0.01 0.001 0.01 0.1 0.01 0.1 0.1 0.05 1 0.5 0.2

G1 Prep Blank 0.080 9 9 0.66 223 0.120 <20 0.90 0.059 0.47 <0.1 <0.01 2.1 0.3 <0.05 5 <0.5 <0.2

G1 Prep Blank 0.081 8 6 0.57 236 0.125 <20 0.92 0.064 0.47 <0.1 <0.01 2.1 0.3 <0.05 5 <0.5 <0.2

ABWPR-001 Rock 0.002 2 6 0.01 <1 <0.001 <20 0.03 0.005 <0.01 <0.1 <0.01 0.2 <0.1 0.47 <1 <0.5 <0.2

ABWPR-002 Rock 0.007 14 16 0.22 49 0.072 <20 0.48 0.036 0.31 0.2 <0.01 2.4 0.2 0.14 2 <0.5 <0.2

ABWPR-003 Rock 0.005 2 5 0.03 4 0.007 <20 0.15 0.007 0.02 1.1 <0.01 0.3 <0.1 5.79 <1 0.8 <0.2

ABWPR-004 Rock 0.009 12 9 0.15 20 0.038 <20 0.36 0.030 0.07 0.1 <0.01 1.2 <0.1 0.31 1 <0.5 <0.2

ABWPR-005 Rock 0.011 15 15 0.18 42 0.058 <20 0.51 0.046 0.24 1.9 <0.01 2.0 0.2 0.41 2 <0.5 <0.2

ABWPR-006 Rock 0.022 8 8 0.71 89 0.123 <20 1.18 0.017 0.77 0.3 <0.01 3.4 0.6 0.30 5 <0.5 <0.2

ABWPR-007 Rock 0.026 26 30 0.50 93 0.131 <20 1.05 0.045 0.70 0.4 <0.01 3.5 0.5 0.16 4 <0.5 <0.2

ABWPR-008 Rock 0.009 11 12 0.14 20 0.041 <20 0.39 0.023 0.09 2.0 <0.01 1.4 <0.1 0.46 1 <0.5 <0.2

ABWPR-009 Rock 0.002 <1 5 0.08 7 0.011 <20 0.14 0.006 0.07 0.5 <0.01 0.5 <0.1 1.19 <1 <0.5 <0.2

ABWPR-010 Rock 0.009 14 16 0.12 20 0.054 <20 0.42 0.034 0.07 0.5 <0.01 1.4 <0.1 0.16 1 <0.5 <0.2

ABWPR-010S Rock Pulp 0.139 6 8 0.99 355 0.141 <20 1.56 0.202 0.20 2.3 1.00 4.2 <0.1 0.57 9 3.7 1.9

ABWPR-011 Rock 0.024 19 30 0.42 71 0.117 <20 1.09 0.057 0.61 0.4 <0.01 2.5 0.5 0.10 3 <0.5 <0.2

ABWPR-012 Rock 0.006 6 5 0.11 9 0.014 <20 0.17 0.012 0.10 0.7 <0.01 0.5 <0.1 2.12 <1 <0.5 <0.2

ABWPR-013 Rock 0.009 14 14 0.21 38 0.060 <20 0.50 0.039 0.32 0.2 <0.01 1.4 0.2 0.40 2 <0.5 <0.2

ABWPR-014 Rock 0.037 30 20 0.23 47 0.060 <20 0.57 0.033 0.35 0.2 <0.01 1.8 0.2 0.06 2 <0.5 <0.2

ABWPR-015 Rock 0.004 <1 11 0.49 70 0.132 <20 0.82 0.007 0.72 0.2 <0.01 4.6 0.6 0.30 4 <0.5 <0.2

ABWPR-016 Rock 0.009 15 16 0.13 45 0.047 <20 0.37 0.045 0.25 0.4 <0.01 1.4 0.2 0.09 1 <0.5 <0.2

ABWPR-017 Rock 0.041 16 15 0.21 66 0.069 <20 0.70 0.023 0.42 0.2 <0.01 1.0 0.2 0.06 2 <0.5 <0.2

ABWPR-018 Rock 0.013 2 10 0.24 30 0.065 <20 0.47 0.009 0.27 0.2 <0.01 1.9 0.2 0.13 2 <0.5 <0.2

ABWPR-019 Rock 0.008 14 12 0.14 35 0.049 <20 0.38 0.026 0.27 0.2 <0.01 0.9 0.2 0.21 1 <0.5 <0.2

ABWPR-020 Rock 0.009 14 9 0.10 32 0.028 <20 0.30 0.031 0.20 0.2 <0.01 0.9 0.2 0.23 1 <0.5 <0.2

ABWPR-020S Rock Pulp 0.134 6 8 0.95 338 0.134 <20 1.50 0.191 0.20 1.8 0.95 4.0 <0.1 0.54 9 3.5 1.9

ABWPR-021 Rock 0.001 <1 6 <0.01 3 0.001 <20 0.02 0.006 0.01 0.3 <0.01 0.2 <0.1 0.86 <1 <0.5 <0.2

ABWPR-022 Rock 0.023 16 15 0.14 26 0.031 <20 0.31 0.029 0.20 <0.1 <0.01 1.3 0.1 0.21 1 <0.5 <0.2

ABWPR-023 Rock 0.017 15 24 0.40 87 0.111 <20 0.87 0.044 0.39 0.5 <0.01 3.2 0.2 0.35 3 <0.5 <0.2

ABWPR-024 Rock 0.006 4 5 0.08 10 0.014 <20 0.18 0.009 0.04 0.4 <0.01 0.5 <0.1 2.45 <1 <0.5 0.3

ABWPR-025 Rock 0.014 15 25 0.42 63 0.103 <20 0.91 0.049 0.28 0.5 <0.01 2.2 0.2 0.26 3 <0.5 <0.2

ABWPR-026 Rock 0.027 7 35 0.58 79 0.115 <20 1.24 0.044 0.60 0.1 <0.01 3.6 0.4 0.26 5 <0.5 <0.2

This report supersedes all previous preliminary and final reports with this file number dated prior to the date on this certificate. Signature indicates final approval; preliminary reports are unsigned and should be used for reference only.

3 of 3

Mayre Gold Placer

Suite 200, 44 - 12th Ave. S.


Project:

Page:

Report Date:

Phone (604) 253-3158 Fax (604) 253-1716


1Part:

September 27, 2012

www.acmelab.com



of 1

CERTIFICATE OF ANALYSIS VAN12004243.1 CERTIFICATE OF ANALYSIS VAN12004243.1

MDL

Unit

Analyte

Method WGHT G6 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX



0.01 0.005 0.1 0.1 0.1 1 0.1 0.1 0.1 1 0.01 0.5 0.5 0.1 1 0.1 0.1 0.1 2 0.01

ABWPR-027 Rock 2.04 0.771 0.8 604.7 171.1 34 1.9 85.9 83.9 148 12.35 0.7 628.0 1.9 4 0.5 0.6 313.9 8 0.08

ABWPR-028 Rock 0.52 <0.005 0.3 15.7 16.7 40 <0.1 2.2 3.5 156 1.46 0.6 3.5 3.5 11 0.3 <0.1 0.6 6 0.22

This report supersedes all previous preliminary and final reports with this file number dated prior to the date on this certificate. Signature indicates final approval; preliminary reports are unsigned and should be used for reference only. This report supersedes all previous preliminary and final reports with this file number dated prior to the date on this certificate. Signature indicates final approval; preliminary reports are unsigned and should be used for reference only.

3 of 3

Mayre Gold Placer

Suite 200, 44 - 12th Ave. S.


Project:

Page:

Report Date:

Phone (604) 253-3158 Fax (604) 253-1716


2Part:

September 27, 2012

www.acmelab.com



of 1


MDL

Unit

Analyte

Method 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX



0.001 1 1 0.01 1 0.001 20 0.01 0.001 0.01 0.1 0.01 0.1 0.1 0.05 1 0.5 0.2

ABWPR-027 Rock 0.014 5 7 0.15 8 0.018 <20 0.32 0.013 0.08 0.2 <0.01 0.9 <0.1 5.14 1 1.8 18.1

ABWPR-028 Rock 0.011 6 8 0.18 13 0.036 <20 0.48 0.015 0.07 0.1 <0.01 1.0 <0.1 0.19 1 <0.5 <0.2


Mayre Gold Placer

Suite 200, 44 - 12th Ave. S.


TerraLogic Exploration Inc.Client:

Project:

Report Date:

www.acmelab.com

Phone (604) 253-3158 Fax (604) 253-1716

1020 Cordova St. East Vancouver BC V6A 4A3 Canada September 27, 2012


Page: 1 of 2 1Part: of 1

QUALITY CONTROL REPORT VAN12004243.1 QUALITY CONTROL REPORT VAN12004243.1WGHT G6 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX



0.01 0.005 0.1 0.1 0.1 1 0.1 0.1 0.1 1 0.01 0.5 0.5 0.1 1 0.1 0.1 0.1 2 0.01

Pulp Duplicates

ABWPR-003 Rock 0.63 <0.005 0.4 324.3 1.4 7 <0.1 99.0 58.7 131 9.51 1.0 <0.5 0.9 2 <0.1 <0.1 0.3 <2 0.04

REP ABWPR-003 QC <0.005

ABWPR-004 Rock 1.65 <0.005 0.3 15.3 5.4 21 <0.1 6.7 5.0 151 1.23 1.0 <0.5 7.0 9 <0.1 <0.1 0.2 7 0.18

REP ABWPR-004 QC 0.4 15.7 5.3 20 <0.1 7.0 5.2 151 1.22 0.8 <0.5 6.7 8 <0.1 <0.1 0.2 7 0.16

ABWPR-027 Rock 2.04 0.771 0.8 604.7 171.1 34 1.9 85.9 83.9 148 12.35 0.7 628.0 1.9 4 0.5 0.6 313.9 8 0.08

REP ABWPR-027 QC 1.0 598.6 175.4 33 1.6 83.2 83.1 146 12.29 <0.5 870.2 1.9 4 0.5 0.7 335.9 8 0.08

Core Reject Duplicates

ABWPR-001 Rock 3.05 <0.005 0.1 46.9 2.6 2 <0.1 3.6 5.8 70 1.12 <0.5 <0.5 <0.1 <1 <0.1 <0.1 <0.1 <2 0.01

DUP ABWPR-001 QC <0.01 <0.005 0.3 49.6 2.8 3 <0.1 3.4 5.1 71 1.08 <0.5 <0.5 <0.1 2 <0.1 <0.1 <0.1 <2 0.01

Reference Materials

STD DS9 Standard 12.0 110.7 122.0 296 1.6 41.2 7.8 555 2.26 23.9 100.1 5.9 62 2.2 4.0 6.3 40 0.67

STD DS9 Standard 11.4 103.9 122.3 305 1.9 38.7 7.4 560 2.25 27.0 135.5 6.4 70 2.3 5.0 6.8 37 0.69

STD OREAS45CA Standard 1.0 444.4 18.1 49 0.2 214.0 87.0 846 14.82 3.6 37.8 6.2 13 0.1 0.2 0.1 203 0.41

STD OREAS45CA Standard 0.9 493.4 20.4 57 0.3 245.4 89.4 940 16.47 3.6 36.0 7.1 16 <0.1 0.1 0.2 205 0.44

STD OXG99 Standard 0.932

STD OXG99 Standard 0.863

STD OXK94 Standard 3.320

STD OXK94 Standard 3.368

STD DS9 Expected 12.84 108 126 317 1.83 40.3 7.6 575 2.33 25.5 118 6.38 69.6 2.4 4.94 6.32 40 0.7201

STD OREAS45CA Expected 1 494 20 60 0.275 240 92 943 15.69 3.8 43 7 15 0.1 0.13 0.19 215 0.4265

STD OXK94 Expected 3.562

STD OXG99 Expected 0.932

BLK Blank <0.1 0.3 <0.1 <1 <0.1 <0.1 <0.1 <1 <0.01 <0.5 <0.5 <0.1 <1 <0.1 <0.1 <0.1 <2 <0.01

BLK Blank <0.1 <0.1 <0.1 <1 <0.1 <0.1 <0.1 <1 <0.01 <0.5 <0.5 <0.1 <1 <0.1 <0.1 <0.1 <2 <0.01

BLK Blank <0.005

BLK Blank <0.005

BLK Blank <0.005

BLK Blank <0.005

MDL

Unit

Analyte

Method


Mayre Gold Placer

Suite 200, 44 - 12th Ave. S.



Project:

Report Date:

www.acmelab.com

Phone (604) 253-3158 Fax (604) 253-1716




QUALITY CONTROL REPORT VAN12004243.11DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX



0.001 1 1 0.01 1 0.001 20 0.01 0.001 0.01 0.1 0.01 0.1 0.1 0.05 1 0.5 0.2

Pulp Duplicates

ABWPR-003 Rock 0.005 2 5 0.03 4 0.007 <20 0.15 0.007 0.02 1.1 <0.01 0.3 <0.1 5.79 <1 0.8 <0.2

REP ABWPR-003 QC

ABWPR-004 Rock 0.009 12 9 0.15 20 0.038 <20 0.36 0.030 0.07 0.1 <0.01 1.2 <0.1 0.31 1 <0.5 <0.2

REP ABWPR-004 QC 0.009 11 9 0.15 19 0.037 <20 0.37 0.029 0.08 <0.1 <0.01 1.2 <0.1 0.31 1 <0.5 <0.2

ABWPR-027 Rock 0.014 5 7 0.15 8 0.018 <20 0.32 0.013 0.08 0.2 <0.01 0.9 <0.1 5.14 1 1.8 18.1

REP ABWPR-027 QC 0.014 5 8 0.16 8 0.018 <20 0.34 0.014 0.08 0.2 <0.01 0.9 <0.1 5.24 1 2.2 20.2

Core Reject Duplicates

ABWPR-001 Rock 0.002 2 6 0.01 <1 <0.001 <20 0.03 0.005 <0.01 <0.1 <0.01 0.2 <0.1 0.47 <1 <0.5 <0.2

DUP ABWPR-001 QC 0.002 2 6 0.02 <1 <0.001 <20 0.03 0.005 <0.01 <0.1 <0.01 0.2 <0.1 0.43 <1 <0.5 <0.2

Reference Materials

STD DS9 Standard 0.076 10 123 0.60 297 0.102 <20 0.89 0.076 0.39 2.8 0.18 2.0 5.3 0.17 4 5.0 4.4

STD DS9 Standard 0.083 11 114 0.60 316 0.103 <20 0.89 0.076 0.38 2.6 0.20 2.2 5.3 0.16 4 4.5 5.4

STD OREAS45CA Standard 0.035 13 682 0.12 150 0.117 <20 3.03 0.006 0.07 <0.1 0.02 37.0 <0.1 <0.05 17 <0.5 <0.2

STD OREAS45CA Standard 0.041 16 699 0.16 172 0.139 <20 3.57 0.015 0.07 <0.1 0.04 44.8 <0.1 <0.05 19 <0.5 <0.2

STD OXG99 Standard

STD OXG99 Standard

STD OXK94 Standard

STD OXK94 Standard

STD DS9 Expected 0.0819 13.3 121 0.6165 330 0.1108 0.9577 0.0853 0.395 2.89 0.2 2.5 5.3 0.1615 4.59 5.2 5.02

STD OREAS45CA Expected 0.0385 15.9 709 0.1358 164 0.128 3.592 0.0075 0.0717 0.03 39.7 0.07 0.021 18.4 0.5

STD OXK94 Expected

STD OXG99 Expected

BLK Blank <0.001 <1 <1 <0.01 <1 <0.001 <20 <0.01 <0.001 <0.01 <0.1 <0.01 <0.1 <0.1 <0.05 <1 <0.5 <0.2

BLK Blank <0.001 <1 <1 <0.01 <1 <0.001 <20 <0.01 <0.001 <0.01 <0.1 <0.01 <0.1 <0.1 <0.05 <1 <0.5 <0.2

BLK Blank

BLK Blank

BLK Blank

BLK Blank

MDL

Unit

Analyte

Method


Mayre Gold Placer

Suite 200, 44 - 12th Ave. S.



Project:

Report Date:

www.acmelab.com

Phone (604) 253-3158 Fax (604) 253-1716




QUALITY CONTROL REPORT VAN12004243.1 QUALITY CONTROL REPORT VAN12004243.1WGHT G6 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX



0.01 0.005 0.1 0.1 0.1 1 0.1 0.1 0.1 1 0.01 0.5 0.5 0.1 1 0.1 0.1 0.1 2 0.01

Prep Wash

G1 Prep Blank <0.01 <0.005 <0.1 2.3 2.5 46 <0.1 4.0 4.1 574 2.05 <0.5 1.6 4.6 48 <0.1 <0.1 <0.1 35 0.60

G1 Prep Blank <0.01 <0.005 <0.1 4.0 2.4 48 <0.1 3.7 4.2 578 2.00 <0.5 <0.5 4.8 56 <0.1 <0.1 <0.1 34 0.42


Mayre Gold Placer

Suite 200, 44 - 12th Ave. S.



Project:

Report Date:

www.acmelab.com

Phone (604) 253-3158 Fax (604) 253-1716




QUALITY CONTROL REPORT VAN12004243.11DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX 1DX



0.001 1 1 0.01 1 0.001 20 0.01 0.001 0.01 0.1 0.01 0.1 0.1 0.05 1 0.5 0.2

Prep Wash

G1 Prep Blank 0.080 9 9 0.66 223 0.120 <20 0.90 0.059 0.47 <0.1 <0.01 2.1 0.3 <0.05 5 <0.5 <0.2

G1 Prep Blank 0.081 8 6 0.57 236 0.125 <20 0.92 0.064 0.47 <0.1 <0.01 2.1 0.3 <0.05 5 <0.5 <0.2


phase i assessment report volume i – report and …

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