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ASSE!SMENT REPORT on PRLOSPECTING .I, Gold Commissioner’sOffice VANCOUVER, B.C. ro PROPERTY Deer Creek Area Nelson Mining Division NTS 82E050 TOM KENNED January, 2007 TABLE OF CONTENTS Page 1 .OO INTRODUCTION 1.10 Location and Access 1.20 Property 1.30 Physiography 1.40 History of Previous Work 1.50 Purpose of Work 2.00 GEOLOGY 3 .OO PROSPECTING 4.00 CONCLUSIONS and RECOMMENDATIONS 5.00 STATEMENT OF EXPENDITURES 6.00 AUTHOR’S QUALIFICATIONS 7.00 REFERENCES APPENDIX 1 APPENDIX 2 SAMPLE DESCRIPTIONS ASSAY RESULTS 10 11 LIST OF ILLUSTRATIONS Figure 1. Figure 2. Figure 3. Figure 4. Property Location Map Claim Map Regional Geology Map Prospecting Map 1 1.00 INTRODUCTION This report describes the prospecting program on the DYNO mineral claim during the 2005/2006 year. 1.10 Location and Access The DYNO claim is centered at UTM Co-Ordinates 0425896E, 5476079N (Fig. 1) in the southern reaches of the Valkyr Mountain range. The property is accessed fiom Castlegar via the traveling approximately 14km west on the Deer Park Road f?om the junction with the Broadwater Road, then going on the Deer Park haul road to the Blacktail haul road and proceeding roughly 3km to the property boundary. 1.20 Property The DYNO claim comprises a 25 1.89 Ha block of ground owned by Tom Kennedy (Fig.2). 1.30 Physiography The DYNO mineral property covers a moderately rugged roughly north-south trending plateau like feature bounded by steep clim hillsides to the East and West. Elevations on the claims range &om 1120m to 820m. The majority of the property has been logged with only small patches of Fir, Pine, and Larch forest remaining. Cedar, Hemlock and deciduous species are found in damper low areas. 1.40 History of Previous Exploration The DYNO claims cover an area that has been held under tenure at various times. During the prospecting program a small shaft was encountered with no known historical reference. 1.50 Purpose of work The purpose of the 2005/2006 prospecting program was to investigate a contact zone between a granitic intrusive and a meta-sedimentary package. 2.00 GEOLOGY The DYNO claim is underlain by Nelson Plutonic rocks of grano-diorite to granite composition in contact with a sequence of volcano-sediments of Ordovician to Devonian in age (Fig.3). Intrusive dykes ranging in composition &om lamprophyre to syenite cut both the volcano-sedimentary sequence and granitic rocks. The dykes generally trend northhouth with steep dips. Occasional northwest trending dykes were also encountered. 2 flap Center:54.4781N 124.7082W N SCALE 1 : 11,707,830 rw13, 100 0 ! I I 100 200 300 MILES A 3.00 PROSPECTING Prospecting on the DYNO claims during the 200516 field season was focused on the contact of a Nelson granitic intrusive with a volcang-sedimentary sequence of rocks. The contact trends roughly EasWest and is gradational with a more mafic phase developed close to the contact. Erratic zones of sulfide flooding (pyrite and pyrrhotite with rare chalcopyrite) are developed within this more mafic contact phase. Both the granite and sediments are cut by a number of younger dykes ranging in composition fi-omquartz feldspar porphyry, syenite to lamprophyric basalts that typically strike to within a few degrees of NorthlSouth. Both dykes and host rocks are cut by a series of roughly north trending breccias consisting of narrow milled zones cemented and veined with open spaced quartz crystal veining and calcite. Bleaching, weak pyrite flooding and argillic alteration was common in the host rock adjacent to areas of more intense silicification. These zones range in width fi-om a few centimeters to 1.5m in width. Propolytic alteration was encountered within the granodiorite consisting of fiactures and flooding of chlorite, epidote and pyrite in a number of places associated with erratically developed crystalline to milky quartz veining. Rarer zones of potassic alteration were also encountered associated with pyrite and oxide alteration of the granite. Two styles of quartz milky bull type quartz veining were encountered within the granitic intrusive: Broken quartz veining and mylonitic quartz shears. The broken quartz veining occurs as erratically developed zones of quartz that pinch and swell in size fioni a few centimeters to 1 meter in width. These zones trend northeast to northwest and are fairly steeply dipping. The quartz is milky white to crystalline in texture with pods of sulfide mineralization: generally pyrite, pyrrhotite, and chalcopyrite. Chlorite and pyrite flooding of the granite was also associated with this veining. Quartz mylonites with garnet, epidote, chlorite and carbonate alteration haloes were also encountered in several meas along the contact of the granite and sedimentary-volcanic unit. They trend roughly 80 to1 10 degrees dipping steeply to the northeast. Widths range fkom a few centimeters to 2m. Mineralization consisting of pyrite, pyrrhoite, chalcopyrite, galena, sphalerite, and molybdenite were found within and along the quartz mylonites During the prospecting program a number of rock samples were collected with locations plotted on (Fig. 4) and descriptions and results in Appendix 1 and 2 respectively. Anomalous gold values up to 827 ppb were obtained as well as silver values greater than 100 ppm with associated high copper. Elevated lead, zinc, molybdenum, antimony, bismuth and tungsten were also obtained. 6 . 4.00 CONCLUSIONS and RECOMENDATIONS The Prospecting program on the DYNO property identified a number of zones of quartz veining and shearing within a granite host that is anomalous in gold and silver with elevated base metals. Follow up sampling, geological mapping, and geophysics should be considered in the next phase of work. 5.00 STATEMENT OF EXPENDITURES Prospecting Tom Kennedy 4days @ $400.00/day(vehicle inclusive) -$1600.00 -$3 50.00 Craig Kennedy 1 days @ $350.00/day Report 1 day @ $250.00/day -$250.00 TOTAL COST 6.00 $2200.00 AUTHOR’S QUALIFICATIONS As author of this report I, Tom Kennedy certify that: 1) I am an independent consulting prospector residing at 404 22nd Ave North, Cranbrook, B.C. 2) I have been actively involved in mining and mineral exploration for the past 16 years. 3) I have been employed by individuals, as well as Junior and Major mining companies. 4) I have created and optioned numerous grass-roots mineral exploration properties. Tom Kennedy Prospector 7.00 REFERENCES Templeman-Kluit, D.J. 1989: Geology, Penticton, British Columbia; Geological Survey of Canada, Map 1736A 8 APPENDIX 1 ASSAY RESULTS 9 Sample No UTM Co-Ordinates Description 2-6 inch wide quartz vein in granodiorite with some limonite and pyrite DYTK-10 422723,5481344 330 degree strike dip 85 degrees to NE Narrow quartz vein in granodiorite with sheared sericitic margins DYTK-11 422679,5481355 DYTK-12 DYTK-13 422632,5481470 422675,5481690 DYTK-14 422590,5482005 some limonite and pyrite -310 degree strike dip 80 degrees to NE Quartz blowout in milled granite with chlorite, epidote alteration some limonite and pyrite in quartz Narrow quartz vein with lots of pyrite in granodiorite 80 degree trending mylonite zone in granodiorite with limonite/pyrite, epidote, carbonate and molybdenite 1 foot wide milled quartz breccia with vuggy epithermal quartz vesicles, and some limonite and pyrite 340 degree strike dip 85 degrees to NE 1 foot wide bull type quartz vein wth limonite pyrite and yellow oxide in granodiorite Same as Above Quartz stock-work in diorite unit with limonite and pyrite -10 degree strike dip 80 degrees to E Mylonite zone in granodiorite with some quartz with pods of limonite and pyrite -100 degree strike dip 80 degrees to S Milled granite with white broken quartz veins and Lim/Py -some manganese Limonite altered patches in granite with white quartz veinlets with some vugs and Lim/Py Series of quartz shears in granite with limonite and pyrite -300 degree strike dip 80 degrees to SE 2 inch wide flat laying milky quartz vei with limonite and pyrite 280 degree trending 2 inch wide quartz mylonite with limonite and pyrite Narrow quartz vein with massive pyrite in fmer-grained diorite phase some manganese alteration Flat shears in cbloritic granite with patches of quartz with Pykim l m wide mylonite with Py/Lim, PbS and MoS -295 degree strike dip 75 degrees to SE Broken quartz veins with Py/Lim, CuPy, Cu oxide and chlorite in granite Same as Above - DYTK06-20 422395,5481 215 DYTK06-21 522395,5481215 DYTK06-22 422395,5481 215 DYTKO6-27 423718,5480642 DYTKO6-28 423327,5481637 DYTK-01 423352,5481227 DYTK-02 ' 423352,5481227 1 DYTK-03 DYTK-04 423426,5481204 ' 423425,5481194 DYTK-05 ' 423531,5480941 DYTK-06 423527,5480901 DCWO5-20 423264, 5481472 DCWO5-21 423511,5480951 I DCWO5-22 423290,5481168 DCWO5-23 423290,5481 168 - - APPENDIX 2 ASSAY RESULTS 10 __.--, ORATORIES LTD. 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