GEOLOGICAL
SAMPLING
REPORT
on the
PASS PROPERTY
Pass, Pass 4 and Pass 9 Mineral Claims
Omineca Mining Division
NTS: 93L/lZE
B.C. Geographic System Map Sheet: 0933.052
Latitude: 54” 33.4’ N;
Longitude 127O41.6 W
UTM (NAD 27): 6 046 000 N; 584 200 E; Zone 09
Owner: Charles William Morris
Operator: TML Ventures Inc.
Author:
Jim Miller-Tait, P.Geo.
Sikanni Mine Development
April l&2004
TABLE OF CONTENTS
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Fort
StJohn
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ALBERTA
PACIFIC
OCEAN
“AN
r~
UNITED STATES
\
TML VENTURES INC.
PASS PROPERTY
OMINECA
i
MINING DIVISION, BRITISH COLUMBIA
B.C. LOCATION
P
Kilometres
50
0
DRAWN BY J.M.T. / Geodraffing
MAP
3
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SECTION A: REPORT
INTRODUCTION:
TML VenturesInc. holdsan option to acquirea 100%interestin the PassProperty(Pass,Pass4
and Pass 9 mineral claims) by virtue of an option agreementwith Charlie Morris dated
November 28, 2003. The property contains a number of gold, silver, copper, lead and zinc
showingsand this report documentsa geologicalsamplingprogramthat was carried out during
the preliminary negotiation stage. The writer conducted the sampling program during an
examinationof the property from September12-14,2003.
PROPERTY:
The PassProperty is comprisedof sevencontiguousmineralclaims totaling 91 claim units and
covering2275 hectares,all being in the OminecaMining Division. The Pass,Pass4 and Pass9
c,
claims(I 1 units) were stakedin 1977, 1983and 1989respectivelyand are recordedin the name
of CharlesWilliam Morris. Four additionalclaims, the Gordon l-4 (80 units) were stakedin
October 2003 and will form part of the property option agreement.They are recordedin the
name of WatershedResourcesLtd. The property location and mineral claims are shown on
FigureNumbersPP-04-2,PP-04-3andPP-04-4.The details of the mineral claimsthat comprise
the Propertyare set out in SectionB of this report. The expiry datesfor the Pass,Pass4 andPass
9 mineral claims are based on the Statementof Work filed on January 30, 2004 (Event
#3205054)and assumethat the work containedin this report will be acceptedfor assessment
purposes.
LOCATION
AND ACCESS:
The PassProperty is locatedat Telkwa Passin the Howson Rangeof the HazeltonMountains,
some42 kilometressouthwestof Smithers,B.C. in the OminecaMining Division. The claimsare
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situated on NTS map sheet 93L/12E and B.C. Geographic System map sheet 093L.052.
,.’
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IlOP
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GOFIDON 4
406028 -\
, GiFtION
406027
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Geographiccoordinatesare 54’ 33.4’ north latitude and 127’ 41.6’ west longitude while the
UTM coordinates(NAD 27) are 6 046 000 N and 584 200 E in Zone 9. The property is also
situatedimmediatelywest of the upperreachesof the TelkwaRiver.
The property can be accessedby vehicle by using a combination of logging, BC Hydro
transmissionline andPacific Northern Gas pipelineserviceroadswhich go through the Telkwa
Pass.
CLIMATE,
TOPOGRAPHY
AND VEGETATION:
The claims cover the steepterrain located south of Top Lake and Telkwa Passand range in
elevationfrom 820 to 2,070 metres.The showingsare locatedmostly abovetree line and are,
therefore, accessibleby helicopter. The topographyis steepto moderate. Outcrop is abundant
alongthe ridgesandthe lack of vegetationmakesfor easymappingat the higherelevations.
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Vegetationis sparseand consistsof widely spaced,sub-alpinespruce,juniper and grassesat
timberlinewith little or no vegetationat the higherelevations.
The climate of the areacan be characterizedaswet mild summersandheavysnowfall during the
winter months. In a normal year, the property can be expectedto be snow-freefrom late May
until mid-September.
HISTORY:
The mining history of the region began in the early 1900’s. A searchof the Department of
Energy, Mines and PetroleumResourcesAnnual Reports show that the PassProperty veins,
probably becausethey are exposed at treeline and above timber, have been known and
prospectedfrom 1906 to 1909. The target on the claims are high-grade gold veins with
associatedsilver, zinc and lead credits. The prospectorsexcavatedseveralsub-parallelwellbanded,ribbon texturedveins approximately2 metresin thicknessin handtrenches. The grades
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are goodat approximately2Og/tgold.
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Minor physical work was performed from between 1925 to 1969.
The Pass Property was optioned and worked by Teck Exploration in 1989-1990 who completed
rock, silt and soil sampling, VLF and magnetic geophysical surveying. There were 98 rock, 7
silt and 606 soil samples collected, and 13.4 km of VLF and Magnetic surveying completed.
REGIONAL
GEOLOGY:
The Pass Property is located on the eastern flank of the Coast Plutonic Complex. Rocks of the
Lower Jurassic Telkwa Formation (Hazelton Group), mainly breccias, tuffs and flows of basaltic
to rhyolitic composition, are intruded by quartz monzonite, quartz diorite, granodiorite and
monzonite of the Jurassic Topley Intrusions.
Steep normal faults striking north, northwest and northeast dominate the structural framework
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PROPERTY
GEOLOGY:
At the Pass Property the mineralization is associated with quartz veining in a quartz monzonite
intrusion of the Eocene Nanika Intrusions, The contact with andesitic to rhyolitic tuff, flows and
breccias of the Lower Jurassic Telkwa Formation (Hazelton Group) occurs a short distance to the
east.
The intrusive rocks can be divided into two suites: 1) matic rich, quartz-poor monzodiorites to
diorites and 2) felsic porphyritic monzonites and quartz monzonites. Numerous andesitic dikes
intrude the matic rich, quartz-poor monzodiorites to diorite rocks.
Faults on the property lie along two average trends striking 020 degrees dipping 42 degrees
northwest and 175 degrees dipping 69 degrees southwest.
The former commonly displays
mineralization comprising specularite-magnetite-pyrite and chalcopyrite. Quartz veining occurs
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along an approximately linear zone trending 035 to 215 degrees and is approximately 1000
metres long.
Several types of quartz-sulphide vein mineralization occur on the claims, all hosted by intrusive
rocks. The most important veins carry good values in gold, silver, lead, zinc and copper and are
of mineable widths of 1.5 to 2.0 metres. The best gold veins strike at 030 and dip southeast from
25 to 50 degrees and have mineralization consisting of well-banded quartz-galena-pyritesphalerite and chalcopyrite. A second type of vein, only one discovered to date, consists of a
quartz-tourmaline-chalcopyrite-magnetite vein carrying copper values in the range from l.O2.0% range.
MINERALIZATION:
Detailed mapping completed by past operators on the Pass Property revealed five types of quartz
veins which are summarized as follows:
Type 1) quartz-sulphide veins hosted by porphyritic monzonite to quartz monzonite. Veins are
from 1.5 to 2 metres wide displaying vertically zoned, banded sulphides of lo-15 per cent
combined pyrite and galena with 5 per cent sphalerite and minor (l-2 per cent) chalcopyrite.
Type 2) quartz-sulphide veins hosted by monzodiorite to diorite. Veins are from 1 to 1.5 metres
wide displaying vertically zoned, weakly banded and disseminated sulphides of 5-7 per cent
combined pyrite and galena, minor (l-2 per cent) sphalerite and trace (less than 1 per cent)
chalcopyrite.
Type 3) quartz-pyrite veins hosted by monzodiotite to diorite. Veins are from 1 to 2 metres wide
and carry up to 5 per cent coarse, subhedral pyrite and minor (less than 2 per cent) galena and
sphalerite as disseminations, pods and stringers.
Type 4) barren quartz veins hosted by monzodiorite to diorite in contact with monzonite to
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quartz monzonite. Veins are 1 to 1.5 metres wide and milky white.
Type 5) quartz-pyrite-tourmaline veins hosted by monzodiorite to diorite in contact with
monzonite to quartz monzonite. Veins are 1 to 1.5 metres wide and display vertically zoned
mineralization with 1-4 per cent combined pyrite and tourmaline.
Type 1 veins are the most significant as they yield the highest gold, silver, lead and zinc values.
SAMPLING
PROGRAM:
The author located, mapped, photographed and rock sampled the main showings (Areas A, B, C,
D and Cu Area), Figure PP-04-5, as the main areas of interest which were identified by previous
workers.
The samples were collected from approximately the same area as where previous
workers had sampled the showings. The sample results correlate well with the sample grades
and widths of the previous samples so the author is confident of the representative grades from
the gold, silver, zinc, lead and copper showings. There were a total of sixteen samples collected
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from the five zones of interest on the Pass Property during the field examination. As mentioned
above the results correlate well with the results documented by previous workers. The samples
were collected across the true width of the vein with a rock hammer, the width measured,
mapped and approximately 2 kg of representative material collected for analysis.
The samples were collected by the author and then transported by helicopter, plane and truck
directly to Acme Analytical Laboratories of Vancouver for analysis. The samples were analyzed
using a 15 gram split using industry standard ICP-MS methods. Overlimits were analyzed by
using a 1.0 gram split by ICP-ES methods and gold by fire assay from 1 A.T. sample.
The author is confident that samples were collected in an adequate method and the security
methods and analyses of the samples were by modem industry standards, The analytical results
for the five main elements are set out in Table 1 and the complete analytical reports are appended
in Section D. The sample locations are shown on Figure PP-04-5.
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PASS4
!
PASS
r“.
GORDON
1
GORDON
3
‘:,
GORDON
2
GORDON
4
LEGEND
Rock chip sample location
T
k.._--
Traverse Line
0
Helicopter Pad
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TML VENTURES
INC.
PASS PROPERTY
OrnlnsoH”lngDNbion.
eHsoh
coIumb(a
Sample
Location
NT%93LmE
Mm ay J.M.T,GaobrnW sale:
mum
Dale: WR11.2W
Plan
I:IIJpP
PPOCS
bd
_
152664
152665
152666
B
B
B
INTFXPRETATION
1.0
1.0
0.6
60.0
8.82
11.73
0.9
39.2
70.6
2334
3354
2.54
251.9
1672.7
527.4
563.9
2.64
4.48
AND CONCLUSIONS:
The property is located on the east flank of the Coast Mountain Complex. Rocks of the Lower
Jurassic Telkwa Formation (Hazelton Group), mainly breccias, tuffs and flows of basaltic to
rhyolitic
composition are intruded by quartz monzonite, quartz diorite, granodiorite and
monzonite of the Jurassic Topley Intrusions. Steep normal faults striking north, northwest and
northeast dominate the structural framework.
The Pass Property is located in a favorable geological environment for epithermal and
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mesothermal veins in B.C., on the east side of the Coast Mountain Complex, an important heat
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driving component of mineral deposition in B.C.
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The host rocks are competent and should
fracture and hold “open” space well and not “horse-tail” such as the case in sediment hosted gold
deposits.
Several types of quartz-sulphide vein mineralization occur on the claims, all hosted by intrusive
rocks, The most important veins carry good values in gold, silver, lead, zinc and copper and are
of mineable widths of 1.5 to 2.0 metres. The best gold veins strike at 030 and dip southeast from
25 to 50 degrees and have mineralization consisting of well-banded quartz-galena-pyritesphalerite and chalcopyrite.
A second type of vein (Cu Area), only one discovered to date,
consists of a quartz-tourmaline-chalcopyrite-magnetite
vein carrying non-economical copper
values based on the preliminary sampling completed by the author.
RECOMMENDATIONS:
The Pass Property is of sufficient merit to host an economical mineral deposit and therefore an
exploration program consisting of detailed geological mapping, hand trenching, rock sampling
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and diamond drilling focusing on Areas A-D is recommended.
The following table is a cost estimate for the recommended program:
j ITEM DESCFUPTION
COST
Trenching (labour)
3,000
Drill site construction
5,000
Drill Mob & Demobilization
7,500
Diamond Drilling (1,SOOmBQTK core size @ $75/m)
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1ESTIMATED
135,000
Helicopter Support
40,000
Sample Analyses (400 @ $25/sample)
10,000
Geologist (45 days @ $400/day)
18,000
Geologist assistant (45 days @ $25O/day)
11,250
Geological Room & Board
5,000
1
10
/ Truck and Fuel (45 days @ $125/day)
5,625 1
/
Field Supplies (core splitter, bags, tags etc.. .)
5,000
Camp supplies
3,000
5,000
Drafting
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5,000
Final Report
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2,000
Surveying
1Management Fee @ 10%
TOTAL
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26,037 1
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$286,412
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REFERENCES:
bd
Berger, Tom, (1990): Geochemical, Geophysical and Geological Report on the Pass Claims,
Omineca Mining Division, for Teck Exploration Ltd.; NTS 93L/12E; B.C. Assessment Report
#20520
British Columbia Minister of Mines: Annual Reports for 1909, 1911, 1914, 1925, 1929, 1931.
Mintile: Capsule Geology and Bibliography Report, 093L 196 Pass: Zap: Kitchener: Helen.
Toohey, J.R., (1989): Prospecting Report on the Pass Mineral Claims, Omineca Mining
Division, for Teck Exploration Ltd.; NTS 93L/12E; B.C. Assessment Report #19088
Toohey, J.R., (1991): Pass Property, Omineca Mining Division; Exploration Summary dated
March 13, 1991; unpublished.
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STATEMENT
OF OUALIFICATIONS:
For: Jim Miller-Tait of 828 Whitchurch Street, North Vancouver, B.C. V7L 2A4
I graduated from the University of British Columbia with a Bachelor of Sciences Degree in
Geology ( 1987);
I have been practicing my profession as a geologist in mineral exploration and mining
continuously since 1987;
I am a fellow in good standing with the Geological Association of Canada;
I am a registered member in good standing as a Professional Geoscientist with the Association of
Professional Engineers and Geoscientists of British Columbia;
The observations, conclusions and recommendations contained in the report are based on field
examinations, personal sampling and the evaluation of results of the exploration program
completed by the operator of the property.
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SECTION B: PROPERTY
PASS PROPERTY
SCHEDULE
PROVINCE:
British Columbia
MINING
DIVISION:
Omineca
LOCATION:
immediately south of Telkwa
Pass and Top Lake and 42 km southwest of
Smithers
CLAIMS:
7
1 UNITS:
NTS: 93LllZE
LATITUDE:
54O33.4’
UTM:ZONE09
( NAD 27 (
PROPERTY INTEREST:
Charles William Morris - 100%
TML Ventures Inc. - 0%
MAP SHEET
OFMINERAL
CLAIMS
91
1 AREA: 2275 ha
) BCGS: 093L.052
1 LONGITUDE:
127O41.6’
6046OOON
1 584 200E
(1:250 000): 93L - Smithers
(1:50 000): 93L/12 - Milk Creek
AGREEMENT
SUMMARY:
Option Agreement dated November 28,2003 between Charles William Morris
and TML Ventures Inc. whereby TML may acquire a 100% interest in the Pass Property, subject to a 2% Net
Smelter Return Royalty.
CLAIM
NAME
TENURE
NUMBER
UNITS
237963
4
4
3
20
20
20
20
RECORD
DATE
DUE DATE
(yyjy-mm-dd)
T
ANNUAL
WORK
1REQUIRED
Cyyyy-mm-dd)
Pass
Pass 4
Pass 9
Gordon
Gordon
Gordon
Gordon
238617
241176
1
2
3
4
406025
406026
406027
406028
1977-09-13
1983-02-04
1989-08-29
2003-10-14
2003-10-14
2003-10-14
2003-10-14
_.
1 ASSESSMENT
Date of
Filing
(yyyy-mm-dd)
2004-01-30
2004-01-30
WORK
SUMMARY
Work
New Work
Filed
Applied
%
$
Notice to Group (3 claims)
PAC
Credits
Applied
2006-09-13
2007-02-04
2006-08-29
2005-10-14
2005-10-14
2005-10-14
2005-10-14
t
I
-II
PAC
Credits
800.00
800.00
600.00
2000.00
2000.00
2000.00
2000.00
RECORDED
HOLDER
Charles William Morris
Charles William Morris
Charles William Morris
Watershed Resources Ltd.
Watershed Resources Ltd.
Watershed Resources Ltd.
Watershed Resources Ltd.
$10200.00
Event
Number
Saved
3205053
3205054
14
SECTION C: EXPENDITURES
Geodrafhg Services
Ltd.
Total
Expenditure Apportionment:
(2003)
plus plot files
$5382.62
15
SECTION D: ANALYTICAL
RESULTS
1. Analyses carried out by Acme Analytical Laboratories Ltd. of Vancouver, B.C
-
Certificate of Analysis #A304263 dated September 25, 2003
Certificate of Analysis #A304263R dated October 9, 2003
Statement of Analytical Procedures
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Mr. Jii Miller-T& P&o.
May 23,2OC2
DearJim,
Tback you for comidaing Acme Laboratoryfor your analyticalrcquircments.Acme Labs
rcspcctfidlysubmitathisproposalfor samplepreparationandanalysisfor your evaluation.
cRIJOco
e
Rock andcorepreparation,includingdrying; crushing(I$! 4 kg) in a “Rhino Jaw Crusher”to
70% passing-10 mesh(2 mm). splitting 25Ogand pulvctizingusing a “Ring and Puck’
pulvcrizcrto95% passing-150 mesh(106mictons).
Privepersample:S4.25Canadii
CodedSS80- Soiland Sedi~arMioa
Samples
will bedriedat 60%. sieved(up to) 100gams to -80 mesh(180tniorons)
Pricepa aample:S’l.28Canadian
I/
Grout IDA - 35-clementICFMS anam with an Aau
B*
Bi
Cd
Cr.
FC’
HI!
La*
Mn*
Na’
P*
s
SC
V=
Zn
0.1pprato looppm
0.5pptnto 10,000ppm
1 ppmto ZOO0ppm
0.1 ppmto 2$XJO
ppm
O.lppmtoZOOOppm
1 ppmto 10,000ppm
0.01%to 40??
0.01ppmto 100ppm
1 ppmto 10,000ppm
1 ppmto lO.OOO
ppm
o.OOl%m10%
o.ool%m5%
O.OS%
toloo/
0.1 ppmto 100ppm
0.1 ppmto 5000 ppm
O.lppmm1OOOppm
1 ppmto 10,000pj3m
1 ppmto 10,000ppm
Priceper sample:
$9.78 Canadian
Ba*
Ca*
co
CU
Ga
IL*
M6’
MO
Ni
Pb
Sb
Sr*
lx*
U’
W*
10eranl snlit
1 ppmto 1,OUO
ppm
0.01%to 40%
0.1 ppmto ZOO0ppm
0.1 ppmto 10.000ppm
1 ppmto 1000ppm
0.01%m 10%
o.o1%m3(Ph
0.1 ppmto ZJI0Oppm
0.1 ppmm 10,000ppm
0.1ppmto lO$OOppm
0.1 ppnm ;5oooppm
1 ppmm 10,000ppm
O.oul%to 10%
0.1 ppmto &OOO
ppm
0.1 ppmto 100ppm
The averageturnaroundfor the aboveanalysiswill be C daysfrom whenthe samplesarrivein
Vancouv~ we will do everythingin our powerto prof.4~ your samplesin the leart amountof
timepossible.
1mo lem etat
II ion of Is0 9002 / IS0 Guide 25
AcmeLaboratories.Vancouver, is an IS0 9002tegi~e~I companyasof 1996andcurrentlyis
working towardsKS0Guide25 accreditationfor specific:methods,IS0 9002is a set of general
standardsfor quality systemmanagementwhile 1SD Guide 25 is specific to the technical
competencyof caiibrationandtestinglaboratories.Implementation
of theseIS0 quality systems
will ensurea formal documentedquality systemthat %cuseson achieving,maintainingand
conthntallyimprovingthe quehtyof analysis.Acme labc~ratories
usesinternationally~~Efkd
methodologies.
b
sq
All pulpsare storedfor 1 year(no chsrge)prior to disposal.Clientamay purchaseadditional
storagetime of rejectsandpulps.Thestorageratefor anadditional3 yearsis S7.90per 1.2fi’.
1 hopeyou find the aboveof interest.This quotationis s&id for one yearS-amissue;all prices
arein Canadiantbnds.Pleaserefer to quotation numln:r 02-070.if you haveany questionsor
would like moreinformationon anyaspectoftbis quotaion,pleasedon’t hesitateto contaotme
at (604)2533158or by emailat vgl
Thankyou for invitingus to bid on this project.
Rick Mocaffrey
BusinessDevelopment
Manager
16
SECTION E: PHOTOGRAPHS
Ld
Date of Photography: September 13, 2003
Photography by: .I. Miller-Tait, P.Geo.
Photo Description by: J Miller-Tait, P.Geo.
rnoro ijo.
P-03-1
c
Yr.TLn,pLa”nn
Area B: Quartzvein containingpyrite, arsenopyrite,galenaand sphalerite
P-03-2
Area D: Author, Jim Miller-Tait, collecting rock chip channel samples. Well-banded,
slickensidedquartzvein containing pyrite, arsenopyriteand galena.
P-03-3
Area D: Close-upview of plunging slickensideson quartzvein.
P-03-4
Area A: Old dynamited trench exposing oxidized quartz vein with pyrite, arsenopyrite,galena
and sphalerite.
P-03-5
Area A: Close-upof exposedoxidized quartzvein
P-03-6
Area C: Close-upof semi-massivesulphidesof pyrite, arsenopyrite,galenaand sphalerite.
A
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.,.
k,
.,!,
~.
.-”
17
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SECTION F: ILLUSTRATIONS
Title
B.C. Location Plan
General Location Plan
Location Plan
Mineral Claims
Sample Location Plan
Scale
1:5 000 000
1:250 000
1:50 000
1:50 000
1:12 500