Report of Field Work Preliminary Exploration Program

Gould Property Arnador Gold Corporation

By Delio Tortosa

October, 2007

2·36785

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Table of Contents

1. Introduction ..................................................................................... 1

2. Property Description and Location.. .. . .. .. .. . .. .. . .. .. . . .. .. . . .. .. .. .. .. .. . .. .. .. .... ..... 1

3. Accessibility, Land Rsources, Infrastructure, and Physiography ................... 2

4. History of Exploration .......................................................................... 3 4.1. Cheney Copper Mine ....................................................................... 3 4.2. Gould Copper Mine ......................................................................... 5

4.2.1. Blue Heaven Resources Corporation ............................................ 5 4.2.2. Huston Lake Mining ............................................................... 7

5. Geological Setting ..................................................... '" ....................... 8 5.1. Regional Geology ........................................................................... 8 5.2. Local Geology .............................................................................. 9

6. Geophysical Setting .......................................................................... 10

7. Vein Systems and Mineralization .......................................................... 10 7.1. Vein Systems .............................................................................. 10

7.1.1. Vein Zone 1 (Gould Copper Mine) ............................................. 10 7.1.2. Vein Zone 5 ........................................................................ 11 7.1.3. Cheney Mine ....................................................................... 13

7.2. Mineralized Prospects .................................................................... 14 7.3. Baseline Surveying and Line Cutting ................................................. 15

8. Sampling, Analysis and Security ........................................................... 16

9. Summary and Discussion ..................................................................... 20 9.1. Vein Zone 1 ............................................................................... 20 9.2. Vein Zone 2 ............................................................................... 20 9.3. Cheney Mine Area ........................................................................ 21 9.4. Baseline Surveying ........................................................................ 21

10.Geological and Structural Model .......................................................... .22

11.Recommendations for Exploration ........................................................ 23

I2.References ..................................................................................... 25

Appendices

List of Figures

Figure 1: Location Map, Gould Property

Figure 2: Property Location & Topography (from Claim Map, Gould Township)

Figure 3: Regional Geological Map (after Geology of Ontario, 1991)

Figure 4: Geological Map M2331, Ontario Geological Survey (after Chandler, 1976)

Figure 5: Gould Property Geology, Mineralized Zones, & Magnetic Linears

Figure 6: Gould Property Ground VLF-EM, HLEM, and Magnetic Surveys

Figure 7: Location of Stripped Areas, Gould Property

Figure 8: Geology and Mineralization, Vein Zone 5, Gould Property

Figure 9: Geology and Mineralization, Vein Zone 5, Gould Property

Figure 10: Cheney Mine & Highway 129 Geology and Channel Assays

Figure 11: Rose Diagrams for Major Vein Orientations, Gould Property

Figure 12: Prospects Visited, Gould Property

Figure 13: Structural Model for Gould Property and Regional Copper Vein Systems

Figure 14: Prospects and Showings Recommended for Stripping

Figure 15: Proposed Vein Zone 1 Grid (Cross Lines)

Figure 16: Proposed Vein Zone 5 Grid (Cross Lines & Tie Lines)

Figure 17: Gould Prospects: Assay Results

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List of Tables

Table 1: Claims comprising the Gould Property

Table 2: 1928-29 Diamond Drilling by Cheney Copper Mines Ltd.

Table 3: Summary of previous work completed on the Gould Property

Table 4: Summary of Anomalous Copper in soils along mineralized vein systems

Table 5: Weighted average assay values for selected high-grade intersections

Table 6: Cobalt Group Stratigraphy, Upper Huronian SuperGroup

Table 7: Plunge of undulations on vein and fracture surfaces

Table 8: Baseline and Cross Line directions

Table 9: Benchmark Survey; Averaged GPS UTM coordinates; NAD83 Datum

Table 10: Duplicate Sample Analyses, Gould Property

Table 11: Sampling of Vein Zones and Prospects, Gould Property

Table 12: Vein Deposits types in Proterozoic age rocks (in part after Pearson, 1979)

Table 13: Gould Property Sample Descriptions and Assays

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1. Introduction

A preliminary exploration program was initiated on the Gould Property consisting of baseline surveying and line cutting, mapping of structural features along selected vein systems, detailed mapping in the Cheney Mine area, and the location, sampling, and description of high priority prospects. The work was undertaken over a 2-3 week period in the summer of 2007 under the supervision of D. Tortosa, with V. Venn providing baseline surveying. and J. Ralph. B. Clavet, and J. Walmsley who provided prospecting and line cutting support.

Other sources of information used in this report include published papers, Sault District Geologist Assessment Files, and Ontario Geological Survey and Ontario Department of Mines published reports. Where applicable these sources are referenced and a full citation is included in the references.

The writer is familiar with the geology and mineral deposits of this area, having completed geological and geochemical surveys in the Huronian Supergroup and Archean granitic and gneissic terrains to the north.

2. Property Description and Location

The Gould Property is located in Gould and Haughton Townships, Sault Ste. Marie Mining Division, about 35 kilometres north of Thessalon. It consists of 14 unpatented contiguous claim blocks (Table 1). The surface rights are privately owned on portions of several claim blocks as noted in Table 1 and Figure 2. Claim block SSM 4240230 contains two privately owned patented claims (SSM5634, SSM5635).

Table 1: Claims comprisin}? the Gould Property Claim Number Units Ownership Due Date 4210230 7 AGe April 7, 2008 4210231 8 AGC April 7. 2008 4210232 14 AGC April 7. 2008 4210233 14 AGC April 5,2008 4210234 12 AGC April 5,2008 4210235 16 AGC April 5, 2008 4210236 16 AGC April 7, 2008 4210237 12 AGC April 7, 2008 4210238 8 AGC April 7, 2008 4210239 16 AGC AprilS, 2008 4211850 5 AGC Se.Et 7. 2008 1192395 10 GL&JR June 28, 2007 1192396 7 GL&JR Au.g 25, 2007 4219188 6 AGC/GL&JR Oct 19,2009

AGC: Amador Gold CorporatIOn GL&JR: George Lucuik and Jim Ralph (optioned to Amador Gold Corporation) PASR: Surface rights privately owned over part of claim block

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Notes SRPO SRPO SRPO

SRPO SRPO

SRPO

Figure 1: Location Map, Gould Property

Location Map Gould Property

Sault Ste. Marie

HINY 12~

Michigan, USA

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Amador Gold Cor ration

3. Accessibility, Land Resources, Infrastructure, and Physiography

The Gould property is accessible from Highway 129, about 35 kilometres north of the town of Thessalon (Figure 1). From Highway 129 there are a number of forest access roads that are suitable for a four-wheel drive vehicle and provide access to the north central and northwestern parts of the property. There are a number of bush roads suitable for ATV travel, which provides access to the south central and southwestern parts of the property.

Topography in the area is strongly influenced by linear valleys, streams and lakes that trend east west to west-northwest and reflects the dominant direction of major faults and fractures in the region (Figure 2). Topographic ridges between these linear topographic lows display a similar trend and have up to 50 metres of relief. Topographic ridges and hills are truncated by northeast trending lineaments (fractures or faults). The Gould Mine adit was driven into one such ridge that provided access to the mineralized vein system. The tops of ridges and hills tend to have a subdued relief due to the shallow-dipping nature of the sedimentary rocks.

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There are a number of small lakes and streams on the property that can provide sources of water for hydraulic stripping, however many interconnecting streams are shallow and have low water flow and would not be suitable sources. Drainage is towards the Mississaugi River in the west and towards Chub Lake, Joba Lake and Tunnel Lake in the east and south parts of the property.

An old power line running from Highway 129 accesses the site of the former mill located near the Gould Mine adit, but it is in a state of disrepair. Two small tailings ponds are located north of the Gould Mine adit. The former Cheney Mine is situated 50 metres west of Highway 129 near Cheney Lake and has a capped shaft.

Immediately east of the property and Highway 129 there are a number of cottages and lodges on Chub Lake and Joba Lake. The lodges have cottages available for weekly rental that provide suitable accommodation and kitchen facilities~ one of the lodges provides meals.

4. History of Exploration

The Gould Property includes the former Cheney Copper Mine and the Gould Copper Mine. The Cheney Mine dates back to 1914 (Knight, 1915, Moore, 1929, Chandler, 1976) and the Gould Mine was developed by and adit-drift in the early ]970's and mid-1980s (Table 3).

4.1. Cheney Copper Mine

Early mining in 1916 to the 70-foot (20 metre) level on the inclined shaft recovered 33,468 lbs of copper (Chandler, 1971). In 1928-29, the Cheney Copper Mine was developed by Sudbury Basin Mines Ltd. using an inclined shaft to the ISO-foot level. Underground development consisted of east and west drifts driven 940 feet and 460 feet respectively. Short crosscuts were driven north and south of the main drift at about 60-foot intervals and amounted to about 700 feet of development. No production figures are available.

In 1928-29, diamond drilling on the Cheney Mine property by Sudbury Basin Mines Ltd. intersected the main mineralized vein over a distance of 2450 feet with significant intersections of copper mineralization at the 180, 360 and 390 feet below surface (Table 2). Historical inferred mineral resource was estimated at 39,405 tons @ 3.97 % Cu in the Cheney Mine (Sault Ste. Marie Assessment Files). This resource estimate is not compl iant with NI 43-101 standards.

a e : - tamon T, bi 2 1928 29 D· d D 'Il" b Ch n mg y enel C opper mes t . M· Ld DDH ID Location Width (ft) Cu% Level (ft) DDH#l 450' west of shaft IS 10.9 360 DDH#2 2450' west of shaft 5 2.7 390 DDH#3 550' west of shaft 1 3 180 DDH#4 550' west of shaft 3 <1 180 I DDH#5,6,7 650-900' west of shaft ? <1 ? I

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Diamond Drilling in 1955-56 by Pioneer Consultants indicate that 3 drill holes intersected >2% Cu over 8-11 feet; 1 ddh intersected 8.45% Cu over 1 foot; and 1 ddh oriented to intersect the mineralized vein at WOO feet below surface. did not intersect the vein (Sault Ste. Marie Assessment Files, Gould Township).

Table 3: Summary of previous work compJeted on the Gould Property Year Company Work Com~leted

1914 Cheney Copper I -shaft sunk to 70 feet in the location of the Cheney Mine (Knight, 1914). Mines No information available in assessment files

1928 Sudbury Basin - Inclined shaft at Cheney Mine location was sunk to 150 feet with 940 Mines feet east drift, 460 foot west drift, a total of 700 feet of short crosscuts

(Moore, 1929) 1955-56 Pioneer Diamond Drilling in 1955-56 by Pioneer Consultants indicate that 3 drill

Consultants holes intersected >2% Cu over 8-11 feet; 1 ddh intersected 8.45% Cu over 1 foot (Duff, 1959)

1960 Rothsay Mines Magnetic and Electromagnetic Surveys Ltd.

1966 L. Pellerin - Drilled a 50 foot diamond drill hole under the Urquhart Lake Prospect. Due to breakdowns the hole did not reach the intersection depth of 65 feet; only minor amounts of chalcopyrite were found in thin quartz stringers within para conglomerate and feldspathic sandstone. No samples were taken.

G. Poirier - Drilled an 80 foot ddh approximately 500 feet west of the adit on strike. Negligible mineralization was found in paraconglomerate, no samples were taken.

L. Pellerin - Excavated a 5 x 7 x 10 foot shalt (100 feet east and 10 feet north of #3 post of SSM77526). No results were recorded.

1967 Gould Copper - Stripped the quartz vein immediately west of the present adit. Gould Mine Ltd. Copper drilled a 325 foot ddh across the Lord Prospect. A five foot

quartz ven with II very minor cpy, bornite" was intersected at 58 - 63 feet. No samples were collected.

1968 Gould Copper - Gould Copper drilled a 222 foot ddh on strike and 350 feet west of the Mine Ltd. adit. Only minor chalcopyrite seen in quartz veins up to 5 feet thick. No

samples were taken. 1970-73 Gould Copper - Gould Copper Mine Ltd. constructed a small leach plant on the present

Mine Ltd. mill site; Gould Copper adit was approximately 170 feet long; Gould Copper drilled two ddh's 450 and 650 feet along strike west from adit portal. No records remain.

1975-76 Gould Copper Gould Copper built a 250 tpd concentrator on the property; Gould Mine Ltd. Copper drilled 8 dd holes under the supervision of A.D. Devlin along adit

zone, total footage 1900. R. J. Worsfold visited the site on 11 June and wrote a brief report. Assay certificates indicate mining activity and shipping of concentrates to Sudbury from 14 May to 20 July. Adit extended from 338 feet to 476 feet.

1980 M. Jensen - Visited site for CME, 24 November. She estimated 6600 tons of rock removed from the adit of which 1000 tons remain in stockpile and 5600 tons were processed to produce 240 tons of 35% copper concentrate.

1986 Elsa Don - Optioned the property. A small amount of are was mined and milled. Exploration

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1989 Blue Heaven - Optioned the 51/eased-claim property from Gould Copper Mine Ltd. An Resources Corp orientation MagNLF-EMlIP survey was carried out by Exsics Exploration

Ltd. of Timmins over claim SSM 77523 which encloses the underground workings (Meikle 1989).

1990 Blue Heaven A 201 line-kilometre grid was cut over the entire grid and was surveyed Resources Corp by Exsics crews using Mag and VLF-EM. Prospects 1 through 5 were

stripped, trenched, sampled and mapped. Fourteen diamond drill holes were put down in the vicinity of the Adit (Prospect #1)."

1994 McBeau A surface percussion drilling program was undertaken on the Gould Minerals Ltd. Copper Property for McBeau Minerals Ltd. by G. Griesbach

1996 Houston Lake A horizontal loop (MCLtMin) survey was completed on the Gould i Mining Inc properJY for Houston Lake Mining Inc. by G. Lambert.

4.2 Gould Copper Mine

In the early 1970's, Gould Copper Mine Ltd. drove an adit into the main vein (Vein Zone 1) and drifted west along the vein for a distance of 476 feet. The company constructed a 250-ton per day concentrator that produced a small amount of copper concentrate. The main vein was tested by II drill holes.

In 1980. M. Jensen estimated that 6600 tons of rock had been removed from the adit of which 1000 tons remain in stockpile and 5600 tons were processed to produce 240 tons of 35% copper concentrate (Sault Ste. Marie Geologist District Office Assessment Files). A small amount of ore was mined and milled by Elsa Don Explorations in 1980.

4.2.2 Blue Heaven Resources Corporation

Blue Heaven Resources Corporation completed a comprehensive exploration program in 1989-90 which included geological mapping. mechanical and hydraulic stripping over 5 vein systems, geochemical and geophysical surveys, and diamond drilling on the main vein (Vein Zone 1).

It is significant to note that the exploration completed by Blue Heaven Resources did not include the Cheney Mine area since the property was still under patent and was not part of their option agreement.

Geological Surveys

Blue Heaven Resources completed detailed geological mapping at a scale of 1 :2500 over the northern half of the Gould Property (Cant, 1990). Geological mapping of five stripped vein systems was completed by Mills (1990) along with blasting and channel sampling over the mineralized sections of the veins.

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Geophysical Surveys

A geophysical orientation survey was completed by Sears (L990) over the main vein (Vein Zone 1) and Vein Zone 5. Sears concluded that VLF-EM survey at 12.5 m stations is capable of detecting the mineralized veins. The Total Field Ground Magnetometer survey results were inconclusive, but did identify the presence of diabase dikes with high magnetically susceptibility.

Magnetometer and VLF-EM surveys were completed over the northern half of the property by Exsics Exploration Ltd (Grant, 1990). The purpose was to expand on an orientation survey conducted by Exsics in 1989 in the central part of the property that suggested that VLF-EM and Magnetometer surveys could help delineate the mineralized vein systems.

Exsics Exploration indicated that the VLF-EM was greatly influenced by the linear water and drainage systems and was not recommended as a follow-up method for delineating mineralized zones. It was suggested that IP surveys be used to locate and outline legitimate sulphide targets and then use HLEM or VLEM as a follow-up on the sulphide zones located by IP.

Geochemical Surveys

B-horizon soil samples were analyzed for copper over known zones of mineralization and quartz veining by J.W. Cant for Blue Heaven Resources (1990). Soil samples were taken straddling, and along strike of several mineralized vein zones. The soil geochemistry survey was primarily an orientation survey to see how well mineralization can be delineated by this method (Table 4).

Table 4: Summary ofAnomalolls Copper in soils along mineralized vein systems North of Vein Zone 1 & 2: There is a grouping of anomalous copper values in soil between showings C6-1 and C7 -1; The westward extension of Vein Zone 3 has three anomalous copper in the soil. Vein Zone 5 West: Al-3: Reflected by anomalous copper in soils; Al~2 has anomalous copper nearby. #6 Prospect: The prospect has anomalous copper in soils over a 300 metre distance and

I reflects the east-west orientation of the mineralized vein system. NOTE: Glacial direction throughout the area is from the north and north-northwest.

Channel Sampling

Vein Zone 5 was channel sampled by Blue Heaven Resources (Mills, 1990). Channel sample widths range from 20 to 60 centimetres. Where appropriate, the channel widths have been integrated into one weighted assay average ranging from 30 cm to 4 metres long (Figure 9). The weighted assay average for all channels is 1.54% copper and the average width is 1.5 metres. Lower grades range from 0 - 0.25 % Cu and high grades range from 1 - 3.5 % Cu .. Most of the higher-grade mineralization is associated with the specularite - quartz veins at the western end of the exposed vein.

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Blue Heaven Resources did not channel sample Vein Zone 1 due to the highly fractured nature of the rock and the strong weathering and flooding, which did not allow for normal trenching and channel sampling.

Diamond Drilling

Blue Heaven Resources completed 14 diamond drill holes in the Adit Zone (Vein Zone 1). All the holes intersected the quarts vein system in the Adit Zone; BH-9 intersected 12.22% eu over 3.3 metres. Some of the higher-grade intersections are noted in Table 5. Notably, a new mineralized vein system discovered during the exploration program (Vein Zone 5) was not drilled either due to lack of time or a change in the company's priorities.

Table 5: Weighted average assay values for selected high-grade intersections DDHID From - To (metres) Width (metres) Average Co % BH-5 54.99 - 56.94 1.95 2.51 BH-7 55.23 - 58.43 2.90 2.82 BH-9 55.05 - 58.25 3.20 12.22 BH-l1 25.87 - 43.72 1.57 0.47 BH-12 48.34 - 49.29 0.43 3.44

49.53 - 50.69 1.16 2.07

4.2.2 Houston Lake Mining Inc.

A Gerard Lambert conducted a Horizontal Loop EM survey (Max Min) for Houston Lake Mining Inc. in 1996. The HLEM survey identified fewer conductors than the previous VLF-EM survey, but those identified are closely associated with the linear lake systems and valleys and generally coincide with the VLF conductors in these areas.

Lambert concluded that the HLEM conductors were likely due to bedrock fractures or shear zones combined with their eroded valleys, partly filled with overburden or lake bottom sediments. There is no definite indication that the bedrock structures carry significant amounts of conductive metallic sulphides. A recommendation was made that IP surveys should be conducted over the HLEM conductors.

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5. Geological Setting

5.1 Regional Geology

The Gould Property claim group is underlain by rocks of PaleoProterozoic and Archean age. PaleoProterozoic rocks of the Huronian Supergroup, consisting primarily of Cobalt Group Gowganda Formation, occupy most of the property. The Gowganda Formation paracoglomerates and argil!lites unconformably overly Archean felsic intrusive and metamorphic rocks (Figures 3). Cobalt Group stratigraphy is summarized in Table 6.

a e oat r, bl 6 C biG roup St ratlgrapJ y, tpper h U H uroman S rG upe roup Group Formation Member

Cobalt Group Lorrain Formation Upper White Quartzite Upper Red Quarztite Middle Conglomerate (Puddingstone) Lower Red Quartzite Arkose J

Gowganda Formation Argillite J Paraconglomerate

Both the Archean basement and overlying Gowganda Formation are intlUded by Nippissing Diabase «(:a. 2200 My) as dikes and sills. The Huronian rocks and Nipissing Diabase are broadly folded into open synclines and anticlines and were affected by low-grade (sub-greenschist) metamorphism during the Penokean Orogeny (ca. 1750-1840 My). Regional tectonics during the Penokean orogenic event has been compared to the fold and thlUst belt tectonics similar to the front ranges of the Rocky Mountains (Zolnai, 1982; 201nai et. al 1983).

Major Faults such as the Murray Fault are regional stlUctures that extend from Echo Bay to Sudbury and juxtapose higher-grade metamorphic rocks to the south, with low-grade metamorphic rocks to the north (Figures 3 & 4). The Murray Fault trends in a WNW-ESE orientation, 20 kilometres south of the Gould Property, and there are sev(~ral parallel subsidiary faults with similar orientation situated between the Murray Fault and the Gould Property. Rocks of the Cobalt Group also strike in a WNW-ESE orientation, west and southwest of the property.

There are a number of regional-scale NE-SW trending reverse faults, which in places tlUncate the earlier WNW stlUctures and are believed to be due to compressive tectonic forces that affected this area during the Grenville Orogenic event (ca 900-1000 My).

These two major stmctural orientations are reflected on the property by the WNW-ESE tending vein systems, lineaments, faults, linear valleys, and the orientation of linear lake systems such as Urquhart and Huston Lakes, and NE-SW trending lineaments.

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5.2 Local Geology

The detailed geological mapping completed over the northern half of the Gould property by Blue Heaven Resources in 1990 was reviewed by the author during the 2007 exploration program, at a reconnaissance scale and a generalized geological map was produced (Figure 5).

Most of the property is underlain by paraconglomerates of the Gowganda Formation of the Cobalt Group. The paraconglomerate consists of matrix supported granitic and some gneissic clasts ranging from pebble to boulder-size. The Gowganda paraconglomerates are stratigraphically overlain by argillites of the upper Gowganda Formation. Bedding tends to be near flat lying, with dips ranging from 5° to 10° to the northeast and striking generally east­southeast. The argillite is grey, thinly layered to laminated and contains 'drop-stones' of granitic pebbles and cobbles, which are considered to be evidence of a glacial origin for the Gowganda Formation.

A pink. to orange feldspathic sandstone occurs as irregular discontinuous lenses within the paraconglomerate. Similarly, discontinuous beds and lenses of argillite occur within poorly bedded paraconglomerates. The orange feldspathic sandstone appears to be similar to the lower arkose member of the Lorrain Formation that conformably overlies the argillites of the Gowganda Formation.

Large block faulting was interpreted by J. W. Cant (1990) to occupy the, Urquhart Huston Lakes lineament and the Footprint and Cheney Lake lineaments. A strike slip fault with about 150 metres of left lateral displacement (Cant, 1990) runs NE-SW along the two small lakes at the northwest end of the property (#5 Pond, beside Vein Zone 5). Ontario Geological Survey mapping (Chandler, 1976) identified a NW-SE fault/lineament that intersects the structure under the #5 Pond beside Vein Zone 5. A WNW trending lineament was identified by the OGS geological mapping, running through Footprint Lake (Figure 4).

Gowganda argillite exposed at the edge of Urquhart Lake displays a penetrative fabric or cleavage oriented at 290° 50° SW. Similarly, at Footprint lake the argillaeoues matrix of the paraconglomerate displays a penetrative fabric or cleavage oriented at 2700 dipping steeply south. Elsewhere on the property the paraconglomerate and argillite units show little deformation unless they are associated with zones of shearing or faulting.

Gowganda paraconglomerates unconformably overly granitic rocks of Archean age west of the #5 Pond. The granite is pink. to white, medium-grained and is intruded by fine-grained grey­green diabase dikes that are slightly magnetic. The two main dike orientations are 110° and 070° with a near vertical dip. These orientations are similar to dikes found elsewhere on the property and which were previously identified by the ground magnetic surveys (Figure 5).

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6. Geophysical Setting

The provincial airborne magnetic survey (Gupta, 1991) indicates that the Huronian Supergroup in the area of the Gould property generally has a low magnetic susceptibility (0 to -200 Nanoteslas). The provincial airborne magnetic survey does not have a sufficient resolution to delineate detailed features at the scale of the Gould Property.

Ground geophysical surveys in the property area during previous exploration consisted of magnetometer, VLF-EM and Horizontal Loop EM (Grant, 1989, Lambert, 1996). Several linear magnetic trends were identified by the ground magnetometer survey trending WNW-ESE in the northern half of the property (Figure 5). The linear magnetic trends follow diabase dikes that were found to be slightly magnetic. The VLF-EM survey identified numerous VLF conductors throughout the area. Many of the more significant ones follow the WN'W and EW trending linear lake systems such as Urquhart - Huston Lakes, or valleys which trend in these orientations. The HLEM survey identified fewer conductors than the VLF-EM survey, but those identified are closely associated with the linear lake systems and valleys and generally coincide with the VLF conductors in these areas (Figure 6).

7. Vein Systems and Mineralization

There are a number of mineralized veins and veins systems throughout the property (Figure 7). During the current exploration program the more significant vein systems and prospects were investigated and sampled. Of the five main vein systems that were identified during prior exploration, only Vein Zone 1 (Adit Zone) and Vein Zone 5 were investigated for further work due to the presence of significant copper mineralization. The Cheney Mine area and related mineralized (copper) vein systems were mapped and sampled by the author in 2007. A number of prospects identified during previous exploration (Cant, 1990) were visited, sampled and prioritized for future mechanical and hydraulic stripping.

7.1 Vein Systems

7.1.1 Vein Zone 1 (Gould Mine)

Vein Zone 1 is situated near the top of a small hill and is bounded at the east end by a small cliff trending north-northeast. An ad it-drift was driven into the cliff-side following the vein system for a distance of 145 metres (Sault Ste. Marie Assessment Files). The vein is stripped over a distance of 250 metres with an average trend of about 285° and dipping 75° south (Figure 8).

Most of the: higher-grade copper mineralization occurs in the quartz - iron carbonate veins and consists of chalcopyrite, chalcocite, pyrite, specularite, and some bornite. Assays of grab samples vary from 4.7 to 27.7 % copper. The high copper values are due to the presence of

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chalcocite. which is hard to detect due to the presence of specular hematite (Table 13). Two samples returned slightly anomalous gold values (128 and 156 ppb).

A white quartz vein dominates the eastern portion of the vein system, is up to 4 metres wide, and is cut by quartz-iron carbonate veins and quartz-specular hematite veins. The quartz - iron carbonate veins are up to a metre wide and characterized by recessive weathering, brown iron­carbonate stain, and are vuggy with well-tenninated quartz crystals at the vein contact.

A number of structural measurements were taken along the vein system and the results are depicted as a frequency-azimuth Rose diagram (Figure 11). The quartz - iron carbonate vein(s) have an average orientation of 280-285° dipping 65-80 ° south. Quartz veins vary from 265 0

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275 0 dipping steeply south.

At the ea.stern-most end of Vein Zone 1, the vein splits or forks into two veins; the southern vein changes orientation to a southeast trend and a shallow 55-600 dip to the southwest, which can be seen at the portal. The northern vein continues at 2850 with an 85° dip south, but is much thinner (0.5 metres). At one location, the quartz - iron carbonate vein is oriented at 265 0 dipping 75 0

south and cuts across the larger quartz vein.

In the central part of Vein Zone 1, the quartz - iron carbonate vein is most prevalent. It varies from 0.5 - 2 metres in width and is recessively weathered, characterized by a brown carbonate stain. Tht:~ average orientation is 280-2850 dipping 65-80° south. A mineralized surface displays a well-defined undulation plunging at 550 at 150° . The quartz - iron carbonate vein system thins just west of a large blast pit and the rock is characterized by closely spaced fracturing of argillite oriented at 2800 dipping near verticaL

Much of the western end of the vein system is filled with water. The quartz - iron carbonate vein is 1-2 metres wide and recessively weathered. Quartz iron carbonate veinlets cutting paraconglomerate are oriented at 2800 dipping 80° south. Broad undulations on a fracture surface have a plunge of 250 at 0850

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Host rocks to the vein system are primarily arkosic sandstones and paraconglomerates to the south of the vein system and paraconglomerates with argillite beds to the north. The argillite beds are oriented at 3200 dipping 15-300 northeast. It is difficult to determine whether there has been significant displacement across the vein since the arkosic sandstone units appear to occur as discontinuous and irregular lenses and are not useful markers of displacement.

7.1.2 Vein Zone 5

Vein Zone 5 is located at the western end of a series of vein systems exposed by stripping during past exploration (Mills, 1990) and situated at the southeastern end of a small pond (Figure 7). The vein system is exposed over a distance of 130 metres and has and average trend of about 295-300° dipping 65-80° southerly. The vein system crosscuts shallow dipping

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paraconglomerates, argillites, and arkosic sandstones of the Gowganda Formation. Thinly bedded argillite lenses in the para conglomerate trend at 300° and dip 12° nOlth.

The vein system consists of massive white quartz with specular hematite ranging in width from less than 1 metre up to 5 metres. Vein stockworks and vein breccia occur adjacent to the vein system. At the eastern end of the exposed area the main quartz vein divides into two vein systems leaving a lithon of the host rock that is cut by a network of quartz veins and veinlets.

The main vein system is cut by a mineralized specularite - quartz vein that is characterized by the presence of thin continuous seams of specular hematite giving it a "striped' appearance. This specularite - quartz vein can be traced along most of the vein system, but is predominant in the western end. The specularite - quartz vein ranges in width from less than a metre in the east to about 2 metres in the western end.

Mineralization within the specularite-rich sections consists of chalcopyrite, pyrite, and chalcocite. The chalcocite is difficult to detect within specularite-rich zones due to similar dark grey colour, but is identified by green malachite stain on a dark surface or fracture. The specularite has a flakey texture, whereas the chalcocite has a fine-grained grey-blue metallic texture. Assay values range from 0.65 to 20.8% copper with the high copper content likely due to the presence of chalcocite. One sample returned slightly anomalous gold (156 ppb Au,) and moderate (17.8 ppm Ag) silver values (Table l3).

A number of structural measurements were taken along the vein system and the results are depicted as a frequency - azimuth Rose diagram (Figure 11). The main quartz vein contains a specularite - quartz vein and both are oriented at about 295° dipping 65-70° SW. Quartz breccia veins trend at 2750 and stockwork veins trend at 2550 and 300° .

Undulations occurring on fractures and vein surfaces were measured in an attempt to determine any prefened plunge direction to the vein system and provide a potential plunge direction for the mineralized zones. The best expression of a plunge direction on a mineralized fracture surface is 48° at 282° . Other undulations range from 25-30° in a westerly direction. Table 7 summarizes the plunge: observations; no slickensides were observed.

Tab Ie 7: Plunge of undulations on vein andfracture surfi. aces Confidence Level Plunge Azimuth

Fair 25 306 Fair 25 306 Fair 30 132 Fair 5 274

I Fair 5 110

I Fair 30 270 Good 48 282

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Host rocks consist of Gowganda paraconglomerates, argillite, and arkosic sandstone. The argillite and arkosic sandstone occur as lenses within the paraconglomerate. The Paraconglomerate consists of pink to orange-coloured, medium grained pebbles, cobbles and boulders of granite with the occasional granitic gneiss clast. The paraconglomerate clasts are predominantly matrix supported with the matrix consisting of fine-grained argillite and in places arkosic sandstone. The pink-orange sandstone is arkosic in composition occurring as massive beds which grade stratigraphically upward into thinly bedded section of fine-grained reddish­brown siltstone. Both the sandstone and siltstone are highly indurated.

Adjacent to the vein system are zones where the grey argillaceous matrix to the paraconglomerate has been altered to a light green colour suggestive of sericite. These zones may be gradational into grey argillite, but are also abruptly truncated against quartz veinlets, and often occur where there is an interlocking network of quartz veinlets. The argillaceous matrix to the paraconglomerate is variably hematized adjacent to larger quartz veins. In places, some of the hematization may be masked due to the presence of the arkosic sandstone.

7.1.3 Cheney Mine

The Cheney Mine vein system is exposed along Highway 129 along with several additional parallel vein systems immediately to the south of the main vein (Figure 10 and 12). The Gowganda Formation exposed along the rock cut consists of shallow dipping paraconglomerate with lensl;::s of orange arkosic sandstone and argillite.

The main Cheney Mine vein is exposed in a trench about 20 metres west of the capped shaft. The quartz vein system is about 2 metres wide and contains quartz, specularite, chalcopyrite, malachite stain, and possible chalcocite. The vein system is oriented at 2780 dipping 580 south and hosted by Gowganda paraconglomerate.

Detailed mapping and sampling was completed along Highway 129 in the Cheney Mine area. Some of the veins and vein stockworks immediately south of the Cheney main vein (0+50 N) and at 1 +50 S have widths of 15-20 metres and are characterized by the hematization of the grey argillaceous matrix in the paraconglomerate giving the rocks a purplish hue.

Structural measurements of the various veins systems are depicted as a frequency - azimuth Rose diagram in Figure 11. All the vein systems have an east - west trend with 50% averaging 265 0 with steep dips 60 0

- 90 0 south (Figure 11).

A grab sample obtained from the main trench returned modest assays for copper (0.23% Cu). A grab sample from the waste pile contains a significant amount of iron carbonate and 6% copper. Results from channel assays of the veins along Highway 129 south of the Cheney Mine indicate that three of the five veins sampled range from 2 - 8% copper with most of the copper occurring as chalcopyrite (Table 13). One channel sample had a slightly anomalous gold value (185 ppb).

13

7.2 Mineralized Prospects

Prospects visited during the course of the fieldwork, including the stripped zones, are identified in Figure 12 and assay results are noted on Figure 13 and Table 13. Showings and prospects identified during previous work (Cant, 1990) were re-assessed and prioritized based on anomalous soil geochemistry, assay values, and proximity to known areas of mineralization.

E12 Showing

The showing occurs about 500 metres northwest of the Cheney Mine and is accessible by a bush road from the Cheney Mine area. The showing consists of several trenches containing quartz, pyrite, specularite, and chalcopyrite. The quartz vein in places is a breccia vein containing fragments of paraconglomerate and is oriented at 270° 60° south. Blue Heaven Resources did no stripping in the area. The showing was flagged for stripping and sampI(~d. Grab samples assayed form 0.23 to 4.5% copper with anomalous gold (592 ppb).

D6 Showing

A quartz vein with an apparent width of 3-4 metres occurs in a dry creek bed. No gossan or copper mineralization was found. No samples were taken and the showing was not flagged for stripping. A second occurrence along strike to the east was not located (D7 showing).

C7 Showing

The showing occurs in an area with high copper in soil (geochem). A quartz vein is exposed in outcrop and in rubble over about 30 metres, orientated at 275°, 70-90° south, and consists of vuggy quartz with specular hematite. The area was flagged for stripping and sampled. A grab sample contain 0.14% copper.

Ai Showing

A quartz vein is exposed on top of the hill west of the #5 Pond, roughly on-strike with Vein Zone 5. The exposed vein is 2 metres wide over a length of 8 metres. The vein consists of quartz with specular hematite seams. The quartz vein orientation is 2950

- 800 south. A grab sample assayed 0.31 % copper. Further east 100 metres, a quartz vein is exposed alongside a small scarp. The full length was flagged for stripping.

An unconformity between the Gowganda Formation paraconglomerate and the Archean granite is exposed at the top of the hill.

14

#8 Showing

Several pits were found on the north shore of Urquhart Lake and on an outcrop just offshore. The host ro<:k appears to be argillite with an undulating fabric or cleavage oriented at 290D 50° SSW. Quartz veins occur parallel to the cleavage planes. Trenches contain mineralized quartz veins with malachite stain and Fe-carbonate. The showing was not flagged for stripping. A grab sample contained 2.63% copper.

#6 Showing

The showing is in an area of high copper in soil (Cant, 1990). The quartz vein is about 1-2 metres wide and is exposed over about 100 metres oriented at 280° 70° SSW. The vein system forms a small scarp on the north side of an east-west trending ridge at the top of the hill. Old trenches were found across the vein system at several locations as well as a in a small mineralized pit. The area was flagged for stripping and sampled. Grab samples contained 0.1 -0.18% copper

7.3 Baseline Surveying and Line Cutting

Baseline~ were cut and surveyed on Vein Zone 1 and Vein Zone 5 (Table 8). Magnetic Declination in the area is 8° west.

Table 8: Baseline and Cross Line directions Vein Zone Baseline Cross Lines Cross Lines

Vein Zone 1 280 190 010 14 km linecutting 750 metres About 400 metres A bout 400 metres

Vein Zone 5 288 198 018 7 km linecutting 225 metres 500 metres 500 metres

Baseline intervals were marked with a small X cut into the rock. Each 50-metre location is identified with a white and green ribbon and scratched on a round metal tag. Three to four pickets were used to identify the direction of the cross-lines.

In forested areas the baseline was cut 1-2 metres wide with distances measured at 50 metres and marked with 2"x 2" pickets identified with white and green flagging tape and scratched on a round metal tag. Distances are accurate to within a few centimeters.

A Total Station was used to determine direction and distance on Vein Zone 5. A transit and tape measure was used on Vein Zone 1 due to technical problems encountered with the total station.

15

For each baseline 100-metre station, GPS readings were collected on different days and averaged. The averaged UTM Easting, Northing and Elevation are noted in Table 9. The referen<:e system used is the NAD83 Datum.

Accuracy of the GPS averages was calculated to be +1- 2 metres for the Easting, +/- 3 metres for the Northing and +/- 4.5 metres for the elevation. The Geodetic Survey of Canada Benchmark 84U087, located near the Cheney Mine on Highway 129, is accurate to +/- 2 metres for the Easting, +/- 1 metres for the Northing, and +/- 2.5 metres for the elevation.

Table 9: Benchmark Survey; Averaged GPS UTM coordinates; NAD83 Datum

B h kS enc mar ummary Vein Zone Easting Northing Elevation

Vein Zone 1 Station 0+00 312908 5154461 383 Vein Zone 1 Station 1+00E 313008 5154437 377 Vein Zone 1 Station 2+00E 313110 5154421 352 Vein Zone 1 Station 2+50E 313155, 5154407 358 Vein Zone 1 Station 1 +OOW 312811 5154481 380 Vein Zone 1 Station 2+00W 312713 5154497 386 Vein Zone 1 Station 3+00W 312612 5154519 400 Vein Zone 1 Station 4+00W 312411 5154543 393 Vein Zone 1 Station 5+00W 312411 5154543 393

I IVein Zone 5 Station 0+00 311104 5155500 353 Vein Zone 5 Station 1 +OOE 311196 5155464 352 Vein Zone 5 Station 0+50W 311058 5155518 349 Vein Zone 5 Station 1 +OOW 311012 5155539 352

Geodetic Benchmark GSC84U087 315773 5152442 355

The UTM data will be used as georeference points for digital maps and future surveys. These reference positions can be linked to geodetic points found along Highway 129 when a higher level of accuracy is needed.

8. Sampling, Analysis and Security

Grab samples were collected from the prospects visited and at selected locations along Vein Zone 1 and Vein Zone 5. Five mineralized veins were channel sampled along Highway 129 near the Cheney Mine. Each channel was cut across the width of the vein (approximately 30 cm). All samples Wf~re placed in identified plastic sample bags.

16

Samples were then hand split into two separate batches (A and B) with approximately equal representations of the mineralized rock, and placed in plastic sample bags. Sample tags from Expert Laboratory, Rouyn-Noranda, were placed in each set of sample bags and the plastic bags were also identified by the field sample identification and batch identification (Table 11 and 13). Sample bags from both batches were tied with nylon cable ties and placed in white plastic pales that were then sealed. Samples from butch B were shipped to Expert Laboratory by Greyhound bus and samples from batch A were stored for future use.

Samples were analysed by fire assay for gold and by atomic absorption for copper and silver by Expert Laboratory, Rouyn-Noranda. Quality control consisted of four duplicate lab samples. Duplicate analyses are within acceptable limits (Table 10).

Table 10: Duplicate Sample Analvses, Gould Property Sample Duplicates: Gould Property

Au Au-Dup Ag Ag-Dup Cu Cu Cu-Dup FA-GEO FA-GEO AAT-7 AAT-7 AAT-7 AAT-8 AAT-8

ppb ppb ppm ppm ppm % % 5 5 0.2 0.2 2 0.01 0.01 i

Sample Tag ======== ======== ======== ======== ======== -_ ...... _---- ====::::=== I --------118001 592 606 0.3 0.2 >DL 4.5 4.55 118013 137 149 <0.2 <0.2 9209 0.91 0.9 118016 62 58 4.9 4.8 >DL 8.75 8.74 118028 23 28 0.4 0.3 1 >DL 4.86 4.81

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Table 11: Sampling of Vein Zones and Prospects, Gould Propertv Vein ZonelProspect Sample Number Description

Vein Zone 5 DT-V5-001 Quartz-specularite-chalcopyrite (Grab sample)

Vein Zone 5 DT-V5-002A Quartz with sericitized argillite clasts

I Veil1 Zone 5

(Grab sample) DT-V5-002B Quartz fragments with specularite-(Grab sample) chalcopyrite-pyrite matrix

Vein Zone 5 DT-V5-003 Purple quartz with specular hematite

~---(Grab sample)

-seams, malachite, possible chalcocite

Vein Zone 5 DT-V5-004 Quartz-specularite-chalcopyrite-chal coche (Grab sample) (?)

Cheney Mine DT-CM-OOl Mineralized trench sample (Grab sample)

Cheney Mine DT-CM-002 Quartz-Fe carbonate-Chalcopyrite (Grab sample)

El2 DT-EBl2-00l Mineralized trench sample (Grab sample)

El2 DT-EBI2-002 Mineralized trench sample (western (Grab sample) trench)

El2 DT-EBl2-003 Mineralized trench sample (eastern trench) (Grab sample)

D6 No sample C7 DT-C7-001 Quartz with specular hematite

(Grab sample) Al DT-AI-OOI White quartz with specular hematite

(Grab sample) seams A2 DT-A2-002 Quartz grab sample

(Grab sample) Vein Zone 3 DT-VZ3-001 Quartz-speculari hematite-iron gossan

(Grab sample) #6 DT-6-001 Mineralized grab sample from pit

(Grab sample) #8 DT-8-001 Quartz with malachite stain, Fe-carbonate,

(Grab samjJle) pyrite and chalcopyrite #7 No sample Vein Zone 1 DT-VZI-OOI Quartz-Fe Carbonate-sulphides

(Grab sample) Vein Zone I DT-VZI-002 Quartz-Fe Carbonate-sulphides

(Grab sample) -.

Vein Zone 1 DT-VZI-003 Quartz-Fe Carbonate-sulphides (Grab samjJle)

Vein Zone 1 DT-VZI-004 Quartz-Fe Carbonate-sulphides

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Vein ZonelProspect Sample Number Description (Grab sample)

Vein Zone 1 DT-VZI-005 Massive specularite··chalcocite (Grab sample)

CIO DT-CIO-OOI Quartz-iron gossan (Grab sample)

CIO DT-CIO-002 Argillite float with cleavage similar to #8 (Grab sample) showing

Granite Lake DT-GL-OOI Sample of granite Granite Lake DT-GL-002 Quartz float with quartz-specular hematite

(Grab sample) and chalcopyrite Footprint Lake DT-FP-OOI Grab sample, mineralized

(Grab sample) Cheney Mine Area DT-CM-VO Quartz vein with Fe-Carbonate; Cpy

(30 cm channel) grains and masses irregularly distributed. Cheney Mine Area DT-CM-Vl Quartz-Fe-Carbonat{! vein 30-60 em wide;

(30 cm channel) I specular hematite, Cpy, malachite stain.

Cheney Mine Area DT-CM-V2 Quartz-Fe-carbonate vein, layered; (30 cm channel) stringers and patches of Cpy; some

puplish alteration of para conglomerate Cheney Mine Area DT-CM-V3 One metre south ofDT-CM-V2; Quartz-

(30 cm channel) Fe-Carbonate vein 30-60 em wide; irregular masses of Cpy, spec hematite

Cheney Mine Area DT-CM-V4 Quartz-carbonate vein with Cpy belbs and (30 em channel) disseminations.

Cheney Mine Area DT-CM-V5 Quartz-Fe carbonate vein; layered, vuggy, (30 em channel) comb texture; euhedral quartz crystals in

vugs; spec hematite and Cpy/malachite;

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9. Summary and Discussion

9.1 Vein Zone 1

Vein Zone 1 is characterized by two types of veins: white quartz veins +/- specularite +/­malachite stain, and quartz iron carbonate specularite - chalcopyrite +/- bornite +/- chalcocite veins.

Generally the quartz - iron carbonate vein cuts the massive white quartz at an acute angle. Based on limited structural data, the quartz - iron carbonate veins are oriented at 285° dipping 70° south. Throughout the central and western sections of the stripped area the white quartz veining and quartz stockwork straddle quartz - iron carbonate veining. There are few indications of plunge in the vein system; the clearest undulation on a mineralized surface plunges at 55° @

150°. Bedding in the immediate area of Vein Zone 1 is oriented at 320° dipping 15-30° NE.

The quartz iron carbonate vein displays open space-filling textures. The contact with massive white qua.rtz consists of well-terminated quartz crystals on both sides of the vein. The vein weathers to a rusty brown colour and has a vuggy, rotted texture that res,ults in recessive weathering of the vein. Assays of grab samples vary from 4.7 to 27.7% copper; the high copper values are due to the presence of chalcocite, which is hard to detect due to the presence of specular hematite (Table 13). Two samples returned slightly anomalous gold values (128 and 156 ppb).

9.2 Vein Zone 5

Vein Zone 5 is generally characterized by white, massive quartz veining which is split or separated by a large lithon of argillite-sandstone-paraconglomerate at the eastern end of the stripped area, and joins together in the central and western end. Bedding of the argillite­sandstone··paracongomerate is oriented at 3000 and dip 12° NE. This orientation is similar to the regional shallow dip of the Gowganda Formation throughout the area.

The main quartz vein contains a specularite - quartz vein and both are oriented at about 2950

dipping 65-70° SW. Quartz breccia veins trend at 2750 and stockwork veins trend at 2550 and 3000

• Undulations on fracture or vein surfaces are few. The best expression of a plunge direction is 48° @ 2820

•

Quartz veins with specularite-rich seams appear to cut the main qua11z vein system and are most closely associated with the mineralized zones consisting of specularite, chalcopyrite, and chalcocite. Assay values range from 0.65 to 20.8% copper with the high copper content likely due to the presence of chalcocite. One sample returned slightly anomalolls gold and moderate silver values (Table 13).

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9.3 Cheney Mine Area

The Cheney Mine has a history of exploration dating back to the early 1900' s. Prior exploration in the area identified and extensive east-west trending, steeply dipping vein system containing high vai~ues of copper in quartz - iron carbonate veins. The main Cheney Mine vein was traced over a distance of 4,780 feet (1457 m) and underground development at the 150-foot level totaled about 2100 feet (640 m) consisting of east-west drifting and short north-south crosscuts.

It is apparent from the preliminary mapping and sampling that the vein system consists of sub­parallel veins trending east west, dipping steeply to the south over a distance of 125 metres south of the capped shaft. Outcrops north of the shaft along Highway 129 do not display a similar array of veins.

Results from channel assays indicate that three of the five veins sampled range from 2 - 8% copper with most of the copper occurring as chalcopyrite. One channel had slightly anomalous gold values (Table 13).

The orientation, mineralization, and vein mineralogy of the Cheney Mine vein system is similar to that found in other vein systems on the property such as Vein Zone 1 (Adit Zone) north of Huston Lake and Vein Zone 5 (northwest of Urquhart Lake). These vein systems extend for long distances and are primarily tensional stmctures that likely have a significant depth extent.

9.4 Baseline Surveying

The baseline survey for Vein Zone 5 was completed using a Total Station at 50 metre intervals and is accurate to within a few centimetres. The baseline for Vein Zone 1 was completed with a transit and chain at 50 metre interals and is accurate to within 5-10 centimetres. GPS averages were collected at each 100-metre location in UTM Easting and Northing coordinates and Elevation in metres using the NAD83 Datum.

The GPS averages can be used for the current accuracy requirements for georeferencing purposes. l[f required at a future date. geodetic survey accuracy can be determined on the surveyed baselines from the Geodetic Benchmark on Highway 129.

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10. Geological and Structural Model

Pearson (1980) completed a detailed review of the copper metallogeny in the north shore region. of Lake Huron, including copper deposits in the Batchewana and Mamainse Point areas. He subdivided vein deposits into five categories as noted in Table 12.

Table 12: Vein Deposits tvpes in Proterozoic age rocks (in part after Pearson, 1979) , i

Vein De~osit Tn~e I Example 1. Quartz-Carbonate-Chalcopyrite-Pyrite+I-S pecularite Gould, Cheney, Bruce Mines 2. Zinc-Lead-Silver-Copper Jardun, Prace Mines 3. Copper-Cobalt+I-Bismuth+I-Uranium+I-Nickel Otter Twp Showin~ K' Chalcocite-Bomite-Chalcopyrite-Native Copper Coppercorp, Mamainse Mines 5. Gold-bearing Quartz-Arsenopyrite-Pyrite Ranson Prospect

Pearson (1980) noted that 70% of the vein deposits are Type 1: Quartz-Carbonate-Chalcopyrite­Pyrite+l- Specularite, similar to those on the Gould Property, and that there is a lack of vein occurrences in most areas underlain by pre-Cobalt Group rocks. The vein orientation is commonly east - west and steeply dipping (70-90° south) and occurring within tensional fracture zones. The close association between these vein deposits and Nipissing Diabase suggested to Pearson that these deposits formed as a result of Nipissing Diabase intrusion acting as a 'heat' engine, leaching metals and sulphur from the country rock and depositing the minerals into tensional fracture zones (Pearson, 1980).

Regional tectonics during the Penokean orogenic event has been compared to the fold and thrust belt tectonics similar to the front ranges of the Rocky Mountains (Zolnai, 1982; Zolnai et. al 1984). Both the Archean basement and overlying Gowganda Formation were intruded by Nippissing Diabase (ca. 2200 My) as dikes and sills, and later broadly folded into open synclines and anticlines and were affected by low-grade (sub-greenschist) metamorphism during the Penokean Orogeny (ca. 1750-1840 My).

Major Faults such as the Murray Fault are regional structures that extend from Echo Bay to Sudbury and juxtapose higher-grade metamorphic rocks to the south, with low-grade metamorphic rocks to the north (Figure 3). The Murray Fault and related splay faults trend in a WNW-ESE orientation. Within the Gould Property the major structures are reflected by the WNW-ESE faults, linear valleys, and the orientation of linear lake systems such as Urquhart and Huston Lakes. At Urquhart, Huston and Footprint Lakes there is evidence of a penetrative fabric in the argillites and paraconglomerates that underlie these linear lake systems which is absent elsewhere on the property.

ZoInai (1982) found evidence for right lateral strike slip along the Murray Fault Zone, which he attributed to northwest - southeast compression. The offset of Sudbury Dikes (ca. 1250 Ma) suggested that the right lateral movement reflects northwest - southeast compression during the Grenville Orogeny. This is consistent with reverse movement along northeast southwest faults

22

throughout the Mamainse - Sault Ste. Marie - Blind River Area that have been attributed to compression due to the Grenville Orogenic event (Halls and Manson _).

It would be consistent within this structural framework to develop tensional structures that could host the copper vein systems (Figure 13). The Highway Occurrence, which is typical of Type 1 vein deposits, was dated lIsing Lead/Lead method and a two-stage lead model which gave an age of 1047 Ma (Pearson 1980), suggesting that these vein Type 1 copper deposits may be coincident with Keweenawan-age events. Notably, little to no detailed studies have been done on these vein deposits since the work by Pearson in 1980.

An important characteristic of the Type 1 vein deposits is that they can extend over long distances (up to five kilometers), but are generally discontinuous or disposed 'en echelon', as appears to be the case on the Gould Property. These large vein distances at different locations throughout the region reflect a regional structural regime that would likely also have significant depth extent.

11. Recommendations For Exploration

1. Line cutting on cross lines for Vein Zones 1 and 5. The cross lines should be identified at 25 metre intervals and marked with metal tags at 50 and 100 metre intervals. Turn-offs should be re-checked in case line pickets fall or get moved. Tie lines should be added at the ends of the cross lines for Vein Zone 5 for improved accuracy. The cross lines for Vein Zone 1 end at Huston and Urquhart Lake to the southwest and along an east-west bush road for the northeast cross lines (Figure 15 & 16).

2. Complete IP geophysical surveys over Vein Zone 1 and Vein Zone 5 once the line cutting is complete. Assess whether the plunge direction for Vein Zone 1 (550

@ 1500) and for Vein

Zone 5 (48 0 @ 282° ), is reflected in the IP interpretation.

3. Further prospecting should be carried out east towards Cheney Lake where there are historical vein exposures, and to the west where the main Cheney vein was intersected by DDH#2 2,450 feet (748 m) west of the shaft. Mineralized veins exposed along the Highway 129 road cuts should be prospected to the east and west; outcrops to the north of the Cheney Mine should be checked for potential mineralized veins.

4. Diamond drilling has not tested Vein Zone 5. A drill program similar to that for Vein Zone 1 is recommended with drill holes oriented at -45° and _60° to the north to intersect the steep southward dipping and WNW trending mineralized quartz vein system. The drill program should be dependent on results of an IP survey conducted to identify targets at depth in addition to the mineralized zones on surface. Further drilling of Vein Zone 1 should be dependent on the results of an IP survey over the vein system.

23

5. Initiate mechanical and hydraulic stripping in priority sequence for the following recommended areas (Figure 14):

• Cheney Mine: there are underground workings recorded with drifting at the ISO-foot level for several 100 feet both east and west. The vein system is ex.posed from the capped shaft to the west for about 100 metres. The vein zone is easily accessible and there are water sources nearby.

• Vein Zone 6: This quartz vein system is ex.posed at the top of the hill along an east-west ridge. Copper in soil anomalies reflects the east-west trend and there is good copper mineralization exposed in one of the pits. Access to water would be from Huston Lake and the showing is less than 500 metres from a good bush road.

• "Vein Zone E12: the vein system is roughly on strike from the Cheney Mine area and contains copper mineralization in several trenches over a distance of 50-75 metres. The showing is easily accessible and occurs beside a bush road originating at the Cheney Mine.

• Vdn Zone C7: The quartz vein is exposed adjacent to the tailings access road. There are se:veral copper in soil anomalies in the immediate area, and the tailings pond and creek can provide a water source.

• Vein Zone Ai: The quartz vein is exposed near the top of the hill west of #5 Pond and has shallow overburden. The vein system continues to the east for about 100 metres where it is exposed along a small scarp trending east - west. The vein system appears to be on strike with Vein Zone 5 and there are several copper anomalies in soil within the areas. The area is accessible over a skidder trail and the #5 Pond can provide a water source.

6. Two claim blocks that cover the Lord Zone immediately north of the property should be staked as soon as they become available (due date December 5,2007; Figure 2).

7. There are other long vein systems in the region that are of a similar deposit type and should be considered for staking or acquisition, based on the results of the current exploration on the Gould Property.

24

12. References

Cant, J. W., 1990. Geology of the Gould Copper Property for Blue Heaven Resources Corporation; Assessment Files, Gould Township, Sault Ste. Marie District Office, Ministry of Northern Development and Mines.

Chandler, F.W. 1976. Geology of the Saunders Lake Area, District of Algoma; Ontario Division of Mines, GR 155,46 p. Accompanied by Map 2331, Scale 1 inch to Y;! mile (1:31,680).

Grant, J.e., 1989. Geophysical interpretation of a VLF/Magnetometer survey on the Gould Property for BLue Heaven Resources Corporation, accompanied by maps for VLF and Mag, Scale 1:2500, 13 p.; Assessment Files, Gould Township, Sault Ste. Malie District Office, Ministry of Northern Development and Mines.

Gupta, V.K. 1991. Shaded image total magnetic field of Ontario, east-central sheet, Ontario Geological Survey, Map 2586, scale 1:1,000,000

Knight, C.W. 1915. The North Shore of Lake Huron, Summary Report on Geology and Mineral Industry; Ontario Bureau of Mines, Volume XXIV, Part I, pp 216-241.

Lambert, G., 1996. Report on ground geophysical investigations: Horizontal Loop (MaxMin) electromagnetic survey, Gould Property for Houston Lake Mining Inc.; Assessment Files, Gould Township, Sault Ste. Marie District Office, Ministry of Northern Development and Mines.

Manson, M.L. & Halls, Re., 1993, Post-Keweenawan compressional faults in the eastern Lake Superior region and their tectonic significance; Canadian Journal of Earth Science, Vol 31, p640-651.

Mills, J.P., 1990. The Gould Copper Mine Property: A Geological Report on Mapping, Diamond Drilling, and Trenching Programs for Blue Heaven Resources Corporation, Ontario; Assessment Files, Gould Township, Sault Ste. Marie District Office, Ministry of Northern Development and Mines.

Moore, E.S., 1929. Ore Deposits near the North Shore of Lake Huron; Ontario Department of Mines, Volume XXXVIII Part VII. pp 1-51.

Ontario Geological Survey 1991. Bedrock Geology of Ontario, East-Central Sheet; Ontario Geological Survey Map2543, scale 1: 1,000,000.

Pearson, W. N. 1979. Copper Metallogeny, North Shore Region, Lake Huron, Ontario; in Current Research, Part A, Geological Survey of Canada, Paper 79-Al, p. 289-304.

25

Zolnai, Andrew, S, 1982. Regional cross section of the Southern Province adjacent to Lake Huron, Ontario: Implications for the significance of the Murray Fault Zone; Unpublished, M.Sc. Thesis, Queen's University, 1982, 93 P

Zolnai, A.S., Price, R.A., Helmstaedt, H. 1983. Regional cross section of the Southern Province adjacent to Lake Huron, Ontario: Implications for the significance of the Murray Fault Zone; Canadian Journal of Earth Science, Vo121, pp 447-456.

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AUTHOR'S CERTIFICATE

Delio JU. Tortosa 99 Pine Street. Unit 408 Sault Ste. Marie. Ontario P6A 3Y3 Telephone: (705) 946-1040

I, Delio Tortosa, do hereby certify that::

I) I am a consulting geologist, carrying on business from the above address.

2) I have practiced my profession as a geologist for over 15 years.

3) I am a graduate of Queen's University, Kingston, Ontario, Canada with the degree of B.Sc.(App.Sc., 1974) Geological Engineering. I am also a graduated of the University of Saskatchewan, Saskatoon, Saskatchewan, Canada with the degree of M.Sc. (Geology, 1983).

4) I am a Professional Engineer registered with the Professional Engineers of Ontario, Registration No. 46764015.

5) I have read the definition of a "qualified person" set out in National Im,trument 43-10 I ("NI 43-10 I ") and certify that by reason of my education, affiliation with a professional association (as defined in NI 43-10 I) and past relevant work experience, I fulfill the requirements to be a "qualified person" for the purposes of N143-IOl.

6) I am responsible for the preparation of the report titled "Report of Fieldwork, Preliminary Exploration Program. Gould Property, Gould Township, Sault Ste. Marie Mining Division, Ontario" and dated October, 2007.

7) I am independent of the issuer, applying all the tests in section 1.5 of National Instrument 43-10 I, and hold no securities of the issuer.

Dated this twenty fourth day of October, 2007

Delio Tortosa, P.Eng., M.Sc.

27

Figures

I

Appendix

Table 13: Gould Property Sample Descriptions and Assays

II

Ta hi e 13: G ldP ou SID roperty ampe escrp}wns an dA ssays Field ID Sample Auppb Agppm Cu% Sample Description

-DT-EB12-1- 118001 592 0.3 4.50 Vuggy quartz, white to orange (hematite) with malachite and azurite 002-B (Grah) stain; cpy-py 2-3%

I DT-VZI-OOS-B I i 1800'2 128 18.2 18.96 Massive specular hematite +/- chalcocite; fine grained with blebs of I (Grab) cpy-py~ malachite stain; high specific gravity

I DT-CM-OOI-B 118003 49 <0.2 0.23 White quartz; < 1 % sulphides; slight malachite stain (Grab)

DT-EBI2-1- 118004 81 3.8 22.50 Massive py-cpy; med-fine grained; vuggy quartz with purplish-orange 003-B (Grab) fragments (~ec hematite?) DT-VZI-OOI-B 118005 92 6.7 27.70 Grey fine-grained, vuggy, massive specular hematite and chalcocite

(Grab) I with malachite stain; high specific gravity DT-06-1-001-B 118006 6 <0.2 0.18 White to orange-red quartz with flakey specular hematite

(Grab) DT-VS-003-B 118007 12 <0.2 0.66 White quartz with purple siltstone sections; specular hematite 1 %,

(Grab) malachite stain. DT-VZI-003-B 118008 144 0.7 4.70 Vuggy white quartz with brown Fe-carbonate stain; sections with

(Grab) specular hematite, cpy, malachite --DT-VS-OOI-B 118009 156 17.8 20.80 White quartz with semi-massive cpy-specular hematite containing

I (Grab) I I quartz fragments < Yz em; malachite stain DT-A1-002-B 118010 I 41 I <0.2 0.39 White quartz with granitic fragments; specular hematite seams, < 1 %

(Grab) cpy; malachite stain DT-C 10-00 I-B 118011 63 <0.2 0.21 White quartz with minor Fe carbonate; malachite stain

(Grab) DT -06-001-B 118012 73 0.2 0.10 Layered quartz vein and argillite wallrock; purplish seams due to I (Grab) specular hematite; minor cpy <1 %; malachite stain DT-GL-002-B 118013 137 <0.2 0.91 White quartz, vuggy, with flakey specular hematite and sections with

(Grab) disseminated py and cpy; minor malachite stain. DT-EB12-1- 118014 22 <0.2 2.03 White quartz with purplish & specular hematite seams; specular 001-B (Grab) hematite contains cpy blebs and py/cpy patches; malachite stain and Fe

gossan stain. DT-FP-OOI-B 118015 44 <0.2 0.86 Showing near Footprint Lake; White vuggy quartz vein with

(Grab) disseminated sulphides (py/cpy) and spec hematite; possible chalcocite;

I

Field ID . Sample Auppb Agppm Cu% Sample Description .

1-2% sulphides. DT-V5-002-B 118016 62 4.9 8.75 White quartz containing 3 cm veinof cpy-bn-spec hem-IX; veL.'1

(Grab) contains fragments of white quartz <1 cm. . DT-VZI-002-B 118017 37 1.4 18.33 Brown-red Fe gossan sample contains bornite, py/cpy, Fe carbonate;

(Grab) 15% suphides DT-CM-002-B 118018 40 <0.2 5.96 Quartz vein material contains 20-30% massive to disseminated

(Grab) sulphides - cpy-bn, some specular hematite; quartz contains sections of Fe carbonate.

! DT-C7-1-001-B 118019 <5 <0.2 0.14 White vuggy quartz containing flakey specular hematite; vugs are (Grab) brown stained possibly from Fe carbonate.

DT-VZ1-004-B 118020 28 <0.2 10.91 White quartz as fragments surrounded by sulphides - cpy-bn; Brown-(Grab) red gossan from Fe carbonate; 40-50% sulphides; small sample, high

specific gravity DT-V5-004-B 118021 14 0.2 0.65 White to pinkish quartz with purple (silicified) argillite; disseminated

, (Grab) py-cpy as blebs; s2ecular hematite veinlet (+/- cc?) I DT-8-001-B 118022 24 0.6 2.63 . White vuggy quartz with Fe carbonate patches; cpy as blebs and

(Grab) i i disseminations; 1-2% ulphides; malachite stain. DT-CM-V4-B 118023 185 I <0.2 2.00 I Quartz-carbonate vein with disseminated blebs of Cpy (5%); carbonate

(Channel) is subhedral, large crystals DT-CM-V5-B 118024 12 <0.2 0.32 Quartz vein with 2-3% cpy; specular hematite blebs; Fe carbonate

(Channel) . , crystals in quartz. DT-CM-VO-B 118025 18 2.8 8.03 I Qu~z-Fe carbonate vein with semi massive cpy (30%); malachite

(Channel) . stam DT-CM-V2-B 118026 18 0.2 ! 2.51 Vuggy quailz with fragments and lenses of purple siltstone; 3-5% cpy;

(Channel) I spec hematite seam contains grains/fragments of quartz <112 cm. DT-CM-VI-B 118027 <5 <0.2 0.11 Quartz-Carbonate (dolomite?) vein cut by specular hematite seams;

(Channel) minor blebs of cpy; vein quartz is vuggy containing euhedral quartz crystals.

DT-CM-V3-B 118028 23 0.4 4.86 Quartz vein with semi-massive to massive sections of cpy (15-20% ); (Channel) vein has a layered texture from incorporating sections of wallrock

(argillite); quartz is vuggy with euhedral crystals.

II

... . .. ~;:(

S15:..x>ON -LO~t;

-:.."" "

{ IlrIJK/L..l '" l OT ' ,COt.;)

Figure 2: Property Location & Topography (from Claim Map, Gould Township)

/ ,

LOT lO. ('CHJ I:t

. -. LflYa COH ) -/ '.,

3 iSOOCrf

Figure 3: Regional Geological Map (after Geology of Ontario, 1991)

Regional Geology & Structure (from Geology of Ontario, 1990)

Geologic a UnllS

D 33 Jacobsville Gp. O,onlO Gp 32 CarbonCitJt&-alka t in trusIVe SUitG 31 Mane and related Intru St ve rocks

o 27 F&lslC InlfUS"& rocks ~ 24Ca-boname-all<aI InUUSIV6 SU II. _ 21 Manc and related InlruSIV'; rocks c::J :IQ Fel SIC lmrusf;,e rockS o 19 Coball Gp o 1':3 Ou rrke. Hou gh, & Ollot Ldke Gps _ 17 Mafic and ul trama.fIC If'I TrUSIV& rocks

16 uonte-napl1 ame ~/en lte surle o 15 Mass". g,anoriom.!O g' ''' ,le _ 14 Doril&.moozonlle-9ranoct onte sul e o 13 MuscO'IIta-beanng ganrt lC rocks o 12 Foliated lonail l e su~e o 11GneissIC tonalitE: sUi te o 10 Mafic 10 ullramafic ,ockS o 9 O asDc melds.;dlm&n1ary rocks 0 8 Mignarrzed suprac ruS1al rocks o 7 Ivletasedlmenlary Roc ks o 6 F~"c 10 int mela<oIcam: rocks o 5 Mafic to tnt mtatavolcanlc rocks ~ 4 Manc to ullTamt metavolcanIC roclo. 'S

Am ador Golu Corpora lion GO Uld Property

o o o <D lD ~

lD

0 0 0 u; l!")

ID

0 0 0

'" l!") ~

l!")

o o o

'" te, ~

l!")

C) C) C)

N en ~

l!")

'\~

Figure 4: Geological Map M2331 , Ontario Geological Survey (after Chandler, 1976) 110000 311000

Proterozoic

312000 313000 31 4000

Geological Map M2331 Ontario Geological Survey

315000

[2J Nipissing or Mafic Intrusive + W Gowganda Formation ') -

315000

CO Mississagi Formation .I-~ m Ramsey Lake Formation \ _ ~ y \\ m Matinenda Formation / -~, : _~-=i' _ \ '.\

Archean ' --o m Felsiclnlrusive&Metamorphic ")A~- G IA 'C~- t'N' - , J I ' ,~

r-;::-o '_ or 0"" orpora I 500 / j 0: ', coOo;' ",M" I" rS ~, ~ t.:...LJ Mafic Intrusive Goold P " 0 l.1l

~ L-____ ~~~ __________ ~)~~ ________ ~~ ___ --~---~-~-~t_~~--~~~_~ ____ r_o_p_e_rty ___ +~~, _______ o __ ~I __ 12=~~_-_-_____ -1~, ___ -,j~! ~_~~ ______ ~--~, _, __ ,,-_;_I-J g 310000 31 1000 312000 313000 314000 315000 3160 00

Figure 5: Gould Property Geology, Mineralized Zones, & Magnetic Linears 310000 311000 31 20 00 31300 0 314000 315000 318000

. N i \. --\ \ 1,, ___ J~ /' Ie. Gould Property i---

g r---~A~~~~~~~~~-LM~in~e~ra~l~iz~e~d~Z~o~n~e~S~&~M~a~g~n~e~ti~c~L~in~e=a~r3sL-____ ~ ______ ~I ~\ . 0:0 If) ~

lD

<=> Q co LD 'D ~

LO

o o o

"" LO

<:)

o o N U'

LD

Local Geology o Diabase o Nipissing Diabase o Sandstone D Argillite

Showings • D ( >/=2%Cu) • C (>/= 1 % to < 2 % CU) A B ( >/= 0.1 % to < 1,0% Cu) / A « 0.1% Cu)

Features

/ Mineralized Zones (Estimated/Projected)

<J1

o o o

Ul ~

U1

" <=> o o

o Paraconglomerate " Granitic Rocks o ~ ~

X (no sample/assay) / / Magnetic Linear

a ~

~~=:~~;:~=:=:~~;:=:~=:~~=:~=:=:~~;:=:=:=:~~~~~=:~~=:=:~=:~~------~~~ LO 310000 311000 31 2000 313000 314000 315000 31 6000 0

o o o (D

ID

o C> o w.") w., ~

w.-;

o o o N w.;

w.-;

Figure 6: Gould Property Ground VLF-EM, HLEM. and Magnetic Surveys 31GOOO 311 000 312000 31300 0 3 14000 315000

~. Ground Geophysical Surveys ) t- VLF-EM, HLEM, Magnetic

~--~~~-'r---~~~~==~~--~~~--~t--..../

Showings • D • C ... B

A X

HLEM Survey N HLEM Conductor N HLEM Survey Boundary

t-

:) 113000

U1 ~

Ul J)

o o o

v-, ~

U1 V

o VLF EM Su rvey .Iv VLF-EM Conductor '-------t------------~~~T_--~~~----1-_J g / /

.' VLF Survey Boundary ( - !

Figure 7 : Lucation of Stripped Areas, Gould Property C> U1

~ co 3110CO 31~500

~~----~~~------~--~~--~~--------~~--~~------~~~-----------.-~~~~--~ " . .....,,----------:0 130 00 'J1 ,

Ln

C> C> C>

". Ln

... -, +

. ,-------- -...

+

31 1000

" .

r---~------~----~------~

Gould Property Stripped Vein Zone Locations

", . ", "-- , '~

/ /

, \+ .

'\Urquhart ' ~a e\ / "" \ - ..... \ '., -------..

3 1150D 312000

\ 1/

/ ) -'

.'

~- _.' -;-.. :.--

-- '- 'i;" --~ . / -

'r. , " , ,

312500

- -~ .

.--", -

, ......

, \

.. - ....

-.-

+

+

;-

C> 0 C> ,

'~ N ......

A

! ' .

U1

U1

U1 C)

<:.>

U1

U1

o o

- - 0

U1

U1

'-" o C>

o o u-, u ") l{) ~

LD

\ \

\ \ \

Figure 9: Geology and Mineralization, Vein Zone 5, Gould Property 311000

Baseline (288)

\ DT-V5-004-B

\ (118021)

\ Au 14 ppb \ Ag t .2 ppm

\ Go: 0.65%

\ o 10 Meters

311050

Gould Property Vein Zone 5

Geology & Mineralization

311100

+

N

A

DT -V5-002B-B DT-V5-001-B (118009)

DT -V5-003-B (118007) Au : 12 ppb Ag : <0.2 ppm Cu 0.66%

Features • Grid Point • Pit

iii Raise L:. Sample

+ DT-V5-002Av Not Assayed

Channel assays % Cu 0-0.25 0.25 - 0.5

N, 0.5-1 N.1-1.5 /\/1 .5-3.5

3 11050

Geology

Au 156 ppb Ag : 17.8 ppm Cu: 20.80 %

I

o Paraconglomerate o Sandstone

Veins ~ Quartz Veins

Zl Quartz - Specula rite Veins

311 100

(Jl

(]1

U1 o o

Figure 8: Geology and Mineralization, Vein Zone 1, Gould Property 312800 313850 312900 312950 313000

Gould Property N Vein Zone 1 A a Baselinj- (280)

~ Geology & Mineralization

<J1 a LC>

/ +8 + + (jl

'" + + .t--U, LJl ~ + e> LD 0

JC~_~._

l.LJ Q

DT-VZ1-003 ./ <::> "l-

e> (118008) /'

LJl

". Au 144 ppb + DT-VZ1-002

~

'" ,n

-qo + Ag 0.7 ppm + LC> (11801 7) -------- .c-~ Cu: 4.7 % LJl In Au: 37 ppb <::)

DT-VZ1-004 (118020) Ag 1.4 ppm

\ Au 28 ppb Cu: 18.33 %

DT-VZ1-005 DT-VZ1-001 Ag <.2 ppm (118002) (118005) Cu 10.91 % Au 128 ppb Au : 92 ppb

Ag: 18.2 ppm Ag 6.7 ppm <::) Cu: 18.96 % Cu 277%

Ul <::) ~

'" + + LJl

'" + + + "'-LD "'" ~ a Lei

Geology <=>

Features o Paraconglomerate • Grid Point D Sandstone • Pit Veins .. Raise r- I Quartz/Carbonate ~ Sample

a Veins en ", ~ ,,, + 0-

LJl

'" + + s:t Meters LD w .-. en u; e>

312800 312850 312900 312950 313000

Figure 10: Cheney Mine & Highway 129 Geology ancl Channel Assays

QU;:U12 V eh1 .. P aratonO tornefale

\ J ~)

DT- eM - 0018 (Grabl

StOCkW0rt< Vein System

Oiaba se DI ~ e

/ DT.CM •. ~------;::::e;~iU.

Au: 12 ppb Ag: <0.2 ppm I Cu: 0.32 %

OT - eM - 0028 (Grabl

e .

Ch8ney Mine

capid Shaft ,~u. rtz V.,n. \fI Jlin'"

~ <---I; / )

o

/ /

/ /

OT·CH·VO i

'-'.~'-~~'1

l on e 0 1 Pt.,lIple ArgWlt e (H em&h~ed )

Scale

I)IJ3 rtZ 'Iem Ex tenSion N O' S J mlll e d

Cheney Mine area Geology & Sampling

Legend

-

Gowganda Paracong lomerate

Diabase Dll<e

Minera liz ed I::J-C V')Jn

Foliati on Rock Fabri c

Fra cura

NOTE: Veins are not 10 scale; channel samples averaged 30 cenUmaU88.

50 metres

o o o

\

311000

l '.

~ r------r~--~--~ rl

""

o o o

'''' ,,, rl

'D

o C)

o ,y) ... -. rl LD

)

311000

Figure 12: Prospects Visited, Gould Property 3120 00

Prospects Visited Gould Property

+

\

\ vz ~~.~ .. '-- \

3~2000

313000 31 4000

\

+ / , ..1<,

j " + .,.,- .. -

~--.

.,._ ----

'!'iDD Meters ----. . ~,/

.~~. - .. --

31:C00G 314000

315000

- --"

E12 Vein ...

316000

IN

A +

~ fv'::,

~

Cheney Mine Vein./ .- ..

Highway 129 V~~ c:'

' ,I :. i' II r----.L...I

315C~0 316000

lJl ~

lJl , 0 0 0

c­o o

o o o

•

Figure 13: Structural Model for Gould Property and Regional Copper Vein Systems

/ Reverse Faults Structura I Model Gould Property

Flack Lake Fault

~\

N

A

.-, .... ..,... ....................... .,.~--f -f • • ....... Quirke Lake Syncline

Murray Fault or Splay Faults

5 0 5 10 Kilometers Grenville Compression (900 - 1000 Ma) r-

•

\.

-:'~~J' ~:)

\. ' . , (

Figure 14: Prospects and Showings Recommended for Stripping

Gould Property

/ .'

Showings Recommended for Stripping

.. ':... ....

'. \,:-~

\

.'= ;I';! .

:1 ,

. ., '. .

~~~~-~-_--_' ____ ~~C--W~ ____ L-~i_' --, ' I

~ \;

, :1

Legend i, . \',

_, Showings -;', .- .J

,:r.~--"

\ :'

l , \..

• 0 ( > /= 2 % Cu) • C ( >/= 1 % to < 2 % Cu) & B ( >/= 0 1 % to < 1.0% Cu) y A « 0.1 % Cu)

o X (no sample/assay)

Recommended Area for stripping

'~ , -._ ':-'

'. , r---'-­I,

o.

---'~ ..........

-. " ~ -~---

/ '

50 -0 .

~ ,"" 1: 5000 Scale

Figure 15: Proposed Vein Zone 1 Grid (Cross Lines)

Vein Zone 1 Grid Gould Property

\ N

/\ .- ......

/

-'1

.... .-'.,:jJJ'\ .. . . I

. . ----.' /: '. ,.~'-... .

( . .: ' , ,, ---/ . / .

Hu~ton Lake

•

..

· ..

Figure 16: Proposed Vein Zone 5 Grid (Cross Lines & Tie Lines)

N

/\

, ,

------.... '

" '"

.' / /

/ I

'.

., \

"-"

\ \ \ i

! I

/

( \ \

\ \

, \

~, > .. - -.......... ------~ ...

' 50 0 50 Meters - ) - ' ~ I

1:5000 Scale

Vein Zone 5 Grid Gould Property

i <tl ....

0 Ol

"€ ~ ,

OJ

1 \ § \~

"

'" \

\ \

\

(

I

'. , \

..... . ......... '. ~.-.. --

.,/ ~' ~.//-;' ,. f I' /

f .-' I ! I Ii

I \ \ \ I

\ \ I \ I

\

\ , '.

",

\

-.. .... -- ._- ..........

, / /

// "",._--. .-, ! / /

/ / " ,

I ( ,-1 1,1

\ \ \. \ , '. I 1 •

\ \ \ ... \ \ .. \ '

Not Assayed

310689

)

DT-GL-002 (1 180 13)

137 ppb <02 ppm 091 0/0

I'j .

J j "

31Ll08

/

+

-~ .~.-

See Ac,say M3P

DT-8-0 01 (1 18022) Au 24 ppb Ag 0.6 ppm Cu 2 63 %

\ (~~' --

"-. ,; , n

\ /' ,,--.. j

Figure 17: Gould Prospects Assay Results 312687

Gould Property Showing Visited Assay Results

OT-Cl-001 (118019) Au <5 ppb Ag <0 2 ppm CU . 014%

.---.-~~-.

OT-FP -001 (118015)

Huston La e

313686

\ \ \

01-C 1 0-001 (118011 )

\.

Au 63 ppb Ag ( 02 pp m Cu. 0.21 %

Footprint Lak Au 44 ppb Ag <0.2 ppm Cu 0 .86 %

+ ./ +

310689

\ "\

I I

I

I

"'-----......... _ _____ L-__ --- ~,----- .........

+ 200 0 200 400 Met ers

312687 313686

314685

OT -EB 1 2-002 ( 118001) Au '5lr2 flPb. Ag 03 ppm Cu : 4 .5 %

OT-E~ 2-003

( 1180(4) Au. 81 ppb Ag 38 ppm Cu 22.5 %

314685

N

A

E12 Vein ---.

315684

'-'-.

----,,--,~'-' ...... , ,,

'-

, ( 'l; ~06~ :" "'-",.J' Au : 49 ppb~'------- ', "

Ag:, <0.2 ppm ". Cu 0'.'2 3-%

DicCM -002 -(118018')-, .----..y.--Au. 40 ppb / Ag -<:t3:-Hlpffi~ Cu 5 .96 %

Cheney Mine \Vein , HWY 1 29 'Vetr$;

(See Assay Mar:l { ,,,$. ' i II , J'

I "

315684

(Jl

~ (Jl (Jl

co w (Q

(Jl

...... (Jl

N co .l:>­N

Laboratoire Expert Inc. 127, Boulevard Industriel

Rouyn-Noranda Quebec Canada J9X 6P2

*** Certificate of analysis ** ..

Telephone: (819) 762-710 Fax: (819) 762-7510

Client: Amador Gold Corporation

Addressee: Peter Caldbick

Telephone: Fax :

Au Au-Dup Ag Ag-Dup FA-GEO FA-GEO AAT-7 AAT-7

ppb ppb ppm ppm 5 5 0.2 0.2

Designation ======::::::::: ======== ========

118001 592 606 0.3 0.2 118002 128 18.2 118003 49 <0.2 118004 81 3.8 118005 92 6.7 118006 6 <0.2 118007 12 <0.2 118008 144 0.7 118009 156 17.8 118010 41 <0.2 118011 63 <0.2 118012 73 0.2 118013 137 149 <0.2 <0.2 118014 22 <0.2 118015 44 <0.2

Cu Cu AAT-7 AAT-8 ppm 0/0

2 0.01 ======== ========

>DL 4.5 >DL 18.96

2285 >DL 22.5 >DL 27.7

1754 6887 0.66 >DL 4.7 >DL 20.8

3944 2105

982 9209 0.91 >DL 2.03

8653 0.86

.. I ..

•

Laboratoire Expert Inc. 127, Boulevard Industriel

Rouyn-Noranda Quebec Canada J9X 6P2

*** Certificate of analysis -**

Telephone: (819) 762-710 Fax : (819) 762-7510

Client: Amador Gold Corporation

Addressee: Peter Caldbick

Telephone: Fax:

Au Au-Dup Ag Ag-Dup FA-GEO FA-GEO AAT-7 AAT-7

ppb ppb ppm ppm 5 5 0.2 0.2

Designation ======== ======:;;;;= ========= =====::::=:;

118016 62 58 4.9 4.8 118017 37 1.4 118018 40 <0.2 118019 <5 <0.2 118020 28 <0.2 118021 14 0.2 118022 24 0.6 118023 185 <0.2 118024 12 <0.2 118025 18 2.8 118026 18 0.2 118027 <5 <0.2 118028 23 28 0.4 0.3

Cu Cu AAT-7 AAT-8 ppm %

2 0.01 ======== ========

>DL 8.75 >DL 18.33 >DL 5.96

1371 >DL 10.91

6680 0.65 >DL 2.63 >DL 2

3249 >DL 8.03 >DL 2.51

1106 >DL 4.86

;;t .D ..... 1")

o D .D ;;t !;) D

n 0

>l -4

0 >l ;:)"

" , ,. ;:) , r . ;)

, ;

Laboratoire Expert Inc. 127, BDulevard Industnel RDU)'n-Noranda, Quebec Canada, J9X 6P2 Telepbone : (819} 762-7100, Fax: (819) 762-7510

Client ; Amador Gold Corporation

Addressee : John Keating

l 711 - 675 West Hastings street Vancouver B.C_ V6B1N2

Au FA-GF.o

ppb Dcsi!!I!arion 5

U8DDI ~92

11101n 128

1ll4lD3 49 lll8O~ III

llBOOS 92

JlllKlfi , 111007 12

118.0S 144

1180119 156

11.010 <II lUl(\H 6l

11lO1l 73

111013 131

llitll4 22

118IUS 44

>DL Valu.: greater 1hIIII delrttion lintil

*** Certificate of analysis -*

Folder

YourG~rn&gnber

19877

Project GOULD Teiaphane : (613} 831-9916

FlU[ : (81:1) 831-0482 -----------------

Au-DIIJI FA-GEO

ppb 5

149

Ag AAT-1

I'JIOl 0.2

OJ·

18.2

<D.2

3.1

6_1

<XI.1

<0_1

t,i

17.8

<0.2

<0.2

0.2

<0.2

-:(}.2

<0_'2

\ T atal ntllllber of samples ; 15

A~-Dup MT-1 ppm 0.2

... .i

<0.2

~~! •

- .

en MT-;

ppm. 2

->VI. >DL

nls -->DL

>D1-

1134

6187

>DL

>DL

~944

210S

912

9209

>DL

I16S3

i I

\ . ~

.. i ! \

Cu AAT-8

% 0.010

-I.jyU

18.960

2HOO

27.7&3

0.600

4.7011

20JO!!

0.910

1.030

0.8&0

Cu-DII)) AA'f-8

% 0.010

.... ..i:;u

0.9110

Date 2007/10104

Page 1 of 1

I::t D ""-,., n D D I::t s:> D

Laboraloire Expert Inc. - Certificate of analysis --

127, IIoiIlevard Industrje/ RoIIfIl-NOOlua, Quebec Canada. J9X 6P2.

e: 81 762·1100, Fax: (StU) 762-1~1O

Client : Amador Gold Corporation

f------------------.. -- ~-~

Addfessee : John Keating

711 - 675 West Hastings street Val'lwuver B.C. Telephone: (613) 1131-9976 V6B 1N2 FIX" : (613) 831-0492

~--------------------

Ibignatioo

111116

UlIIU?

1IlOta

111019

1.110'41 lI8IIl1

11.12

IJlil\ll3

1I1i11124

UIIJS 1181}J6

!1m' llllDlII

61

31

40

<s 28

14 24

liS

12

18

UI

<j

23

AI MT-? IIPIIl 0.2

4.9

1.'­<i1..2

<02

<0.2-

•. 1

•. 6

<0.2

<0.2

2.11

0.2

<.ill

0,4

IF'~' 19878 ; YOII!' older nu mber

IPRIjeCt GOULD

Total "limber of samples: 13

AB-Dup MT·'

pp<ll 0.2

0.3

ell AA'I·7

ppDl 2

"OL

-- >DL --::oOL

1311

--- >DL 66110

--- >Ill. -->DL

u'" -- >ilL --- ;>DL

110ft

-- >DL

cu AAT-I

% •. 010

&.1'sU

ULna :i.9fiO

1O.9tcl

O.65e 2.6l&

2.001

8.0~1)

2..510

U60

Cu-DIIp MT ...

% 0.010

Date

Page

2Q07f{0I04

1 of 1

::t D ...... T)

D :0 D ;:t 5:) D

n D

~ -4

0 ;;),

~" . .. " \

~r ~ ~

" \

Laboratoire Expert Inc. 1 Z1, BIlLIIENWd Industrial ROU)'floHoranda. Quebec canada, J9X 6P2 ~ : 18191762-7100. Fax' ('8t!) 762-7510

Client : Amador Gold Corporation

Addressee : John Keating

l 711 - 675 West Hastings Street Vanc;ouvar B.C. V6B 1N2

Au FA-GF.o

ppb Drsim!!lion , 11801. ~92 -- 128

1U4la.! 49

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111\181 12

11.08 144

118009 156

11:1010 "I UI()H 6!

lllOll 11

1111113 131

UIN'4 22

H81ns 41

*** Certificate of analysis ***

Folder 19877 Your order IIIJIJIb&r

Project GOt! LD Telaphane : (613}1I3t-9818 fair : (813}831-0482

------------------

606

149

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I T oI8t number of samples : '15

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0.910

Date 2001110104

Page 10fl

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Laboratoire Expert [nco - Certificate of analysis _to«'

127. I:loIIIS'I<1rd Industrlel ROI¥I-Noralllde. Quebec Canada. J9X 6P2 Te1e hone: 819 762-11110. Fax: (8191 762·7S10

Client : Amador Gold Corporation

Addlessee : John Keating

711 ·675 west Hastings Street Vancouver B.C. I*phone : (613) 831-99111 V6B 1N2 Fax: (613}1I31-04B2

~---------------------------------

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1._ 19878 \ Your Older number

I Project : GOULD

I Total number Oh~1es : 13

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Date 20071(0104

Page 1 of 1

Cu AAT.a

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