For AMAX Potash Limited Work was carried out during June 1 - July

Transcription

1 557 9 Percussion Drilling Report on the CALEDON~A PROPERTY Claims Caledonia 1-27 incl., 29, 31, 33, Cal 1-10 incl., and Cal 14 Located 9 miles SSW of Fraser Lake Latitude 53'56" Longitude 124'54'W Omineca Mining Division 93 F 15 By F.R. Harris For AMAX Potash Limited Work was carried out during June 1 - July 25, "i,

2 Y i Assessment Report TITLE Caledonia Property - Percussion Drilling AUTHOR DATE COMMOD I TY F.R. Harris August, Mo LOCATION-Area Fraser Lake -Mining Division Ornineca -Coordinates Longitude 124'54'W Latitude 53'56" -NTS 93 F 15 AMAX Vancouver Office Department c_ of 7

3 TABLE OF CONTENTS APPENDICES APPENDIX I I1 I11 IV V Statement of Costs Statement of Qualifications - List of Claims Percussion Drill Logs - Contractors Invoices FIGURES

4 1 INTRODUCTION Location And Access The Caledonia Molybdenum Property is located nine miles south-southwest of Fraser Lake. The Francois Lake road and Nithi River logging road (See Figure 1) connect the property with Highway 16 approximately two miles west of Fraser Lake. Property The Caledonia claims (#1-27 inclusive, #29, #31, #33) are under option from Mr. and Mrs. E. Thomson of Vanderhoof, B.C. The Cal #1-10 inclusive and #14 are recorded in the name of AMAX Potash Limited. Location of the claims is shown on Figure 2 and a list of the claims is given in the Appendix. Work Done From June 1 to July 23, the following work was completed on the Caledonia Property. 1. A 15 line mile grid was cut. 2. Ground magnetometer and induced polarization surveys were carried out. 3. Geological mapping of the claims was completed. 4. A total of 5,790 feet of percussion drilling in 22 holes was carried out. and percussion drilling. This report includes road preparation for drill sites

5 SCALE AMAX POTASH LIMITED CALEDONIA OMINECA M LOCATION PROPERTY B. C. MAP d 'SCALE - MIhES 10 0 e.- KILOMETERS I $A" w I 75 aw 2.*,l7 N. I: S. Ref. 93 F 15 f /G. 1.

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7 ^. 2 PERCUSSION DRILL PROGRAM The percussion drilling was carried out by A1 Miller Percussion Drilling Ltd. of Kamloops, B.C. using a truck mounted Atlas Copco percussion drill. F.R. Harris, assisted by B.C. Wright, T.R. Fry, and C.M. Lagatolla all of Vancouver, B.C. supervised the drilling. A total of 5,790 feet was drilled in 22 holes from July 9 to July 21,. Drill hole locations are shown on Figure 3 and logs of the drill chips are provided in Appendix IV. F.R. Harris

8 APPENDIX I STATEMENT OF COSTS Period of Work June 1 - July 25, Summary of Work 5,790 feet Percussion Drilling A1 Miller Percussion Drillina - Ltd.. Box 182, Kamloops, B.C. $19, Bulldozer Rental Eric Thomson, Box 705, Vanderhoof 1, Personnel (Drill site preparation, drill supervision, sampling handling & logging of chips) F.R. Harris Thurlow Street, Vancouver Staff Geologist 11 $93.50/day B.C. Wright W 27th Avenue, Vancouver Sr.Assistant 22 $30.02/day T.R. Fry - Box 12, Mayne Island, B.C. Sr.Assistant 3 $30.02 C.M. Lagatolla Barclay Street, Vancouver Jr.Assistant 2 $28.83 Room and Board 38 man $20.00/day Vehicle Rental, Maintenance & Repairs 25 $20.00/day Drafting and Report Preparation 1, $24, Work to be Applied to 4 years Caledonia #13-18 incl., 20, incl., 29, 31, 33 3 years Caledonia #1-10 incl., 22 2 years CAL #14 1 year CAL #1-10 incl.

9 APPENDIX I1 STATEMENT OF QUALIFICATIONS F.R. Harris T.R. Fry B.C. Wright B.Sc. Honour Geology, University of Western Ontario M.Sc. Geology, University of New Brunswick Experience includes; student summer employment with Geological Survey of Canada and New Brunswick Department of Lands and Mines , party chief for Ontario Department of Mines at Thunder Bay 1964 to Currently staff geologist with AMAX Exploration, Inc. Third year geology student at University of British Columbia. Geophysical operator (induced polarization) for Hudsons Bay Oil and Gas during 1973 field season. Two field seasons experience as a geological assistant for AMAX Exploration, Inc. during 1974 and. Completed High School in Chomeday, Laval, Quebec in 1968 and attended two semestres at Vancouver City College. Two field seasons experience as a geological assistant for AMAX Exploration, Inc. during 1974 and. C.M. Lagatolla Holds a degree in geology from an Italian University. Assisted on resistivity surveys for Swam Progette (Italy) in Irag during Geophysical/geological assistant for AMAX Exploration, Inc. during field season.

10 APPENDIX I11 LIST OF CLAIMS Name Record Number Expiry & Rental Date Group Caledonia October 5, August 13, October 5, August 13, October 5, August 13, October 5, August 13, October 5, August 13, October 5, August 13, October 5, August 13, October 5, August 13, October 5, August 13, October 5, August 13, October 5, August 13, October 5, August 13, October 5, August 13, October 5, October 5, October 5, October 5, North North North CAL 1-10 incl incl. January 7, June 16, 1976 North

11 APPENDIX IV PERCUSSION DRILL LOGS

12 HOLE COORDINATES DIP TOTAL DEPTH ELEVATION CLAIM GROUP REMARKS CP P 3+00N, 2+20w goo Caledonia 1 Overburden Quartz diorite Quartz monzoni t e

13 HOLE COORDINATES DIP TOTAL DEPTH ELEVATION CLAIM GROUP REMARKS 0-36' CP-75-2P 5+20E, 4+50N goo 300' 2885' Caledonia 3 Overburden

14 HOLE COORDINATES DIP TOTAL DEPTH ELEVATION CLAIM GROUP REMARKS 0-90' CP P 17+30N, 2+17W goo 300' 2640' Caledonia 13 Overburden

15 HOLE COORDINATES DIP TOTAL DEPTH ELEVATION CLAIM GROUP REMARKS 0-51 ' CP-75-4P 14+50N, 4+20W goo 300' 2670' Caledonia 14 Overburden

16 HOLE COORDINATES DIP TOTAL DEPTH ELEVATION CLAIM GROUP REMARKS CP-75-5P 11+90N, 7+70W goo Caledonia 14 Overburden

17 HOLE COORDINATES DIP TOTAL DEPTH ELEVATION CLAIM GROUP REMARKS 0-36' CP-75-6P 8+00N, 1o+oow goo 300' 2720' Caledonia 14 Overburden

18 HOLE COORDINATES DIP TOTAL DEPTH ELEVATION CLAIM GROUP REMARKS 0-22 ' CP-75-7P 5+35N, 12+60\V goo 300' 2740' Caledonia 1 Overburden..

19 HOLE COORDINATES DIP TOTAL DEPTH ELEVATION CLAIM GROUP REMARKS 0-110' CP-75-8P 13+40N, 12+20E 9oo 110' 2720' Caledonia 8 Overburden - could not reach bedrock

20 HOLE COORDINATES DIP TOTAL DEPTH ELEVATION CLAIM GROUP REMARKS 0-36' CP P 11+50N, 9+40E goo 300' 2755' Caledonia 18 Overburden

21 HOLE COORDINATES DIP TOTAL DEPTH ELEVATION CLAIM GROUP REMARKS 0-90' CP OP 13+60N, 4+30E goo ' Caledonia 15 Overburden - could not reach bedrock

22 HOLE COORDINATES DIP TOTAL DEPTH ELEVATION CLAIM GROUP REMARKS 0-70 CP P 16+10N, 4+65E goo Caledonia 15 Overburden - could not reach bedrock

23 HOLE COORDINATES DIP TOTAL DEPTH ELEVATION CLAIM GROUP REMARKS 0-49' CP-75-12P 10+35N, 0+15E 9oo 300' 2755' Caledonia 16 Overburden

24 HOLE COORDINATES DIP TOTAL DEPTH ELEVATION CLAIM GROUP REMARKS 0-15' CP-75-13P 8+20N, 3+00W 9oo 300' 2780' Caledonia 16 Overburden

25 HOLE COORDINATES DIP TOTAL DEPTH ELEVATION CLAIM GROUP REMARKS CP-75-14P 7+05N, 7+05E goo Caledonia 16 Overburden

26 HOLE COORDINATES DIP TOTAL DEPTH ELEVATION CLAIM GROUP CP P 17+33N, 17+28E goo 300' 2830' Caledonia 18 Sout b REMARKS 0-15' Overburden

27 HOLE COORDINATES DIP TOTAL DEPTH ELEVATION CLAIM GROUP CP P 10+80N, 20+00E goo 300' 2790' Caledonia 18 REMARKS 0-90' Overburden Di0rit.e dyke Aphanitic felsic dyke

28 HOLE COORDINATES DIP TOTAL DEPTH ELEVATION CLAIM GROUP CP-75-17P 13+00N, goo 120' 2775' Caledonia 17 REMARKS 0-120' Overburden - could not reach bedrock

29 HOLE COORDINATES DIP TOTAL DEPTH ELEVATION CLAIM GROUP REMARKS CP-75-18P 0+69N, 3+30E Caledonia 3 Overburden

30 HOLE COORDINATES DIP TOTAL DEPTH ELEVATION CLAIM GROUP REMARKS 0-14 ' CP P 4+20N, 14+23E goo 300' 2890' Caledonia 5 Overburden

31 HOLE COORDINATES DIP TOTAL DEPTH ELEVATION CLAIM GROUP REMARKS 0-6 ' CP OP 1+89N, 7+70E goo 300 ' 2920' Caledonia 3 Overburden

32 HOLE COORDINATES DIP TOTAL DEPTH ELEVATION CP-75-21P 23+00N, goo 300' 2740' CLAIM GROUP REMARKS Caledonia North ' Overburden Light grey porphyry andesite

33 HOLE COORDINATES DIP TOTAL DEPTH ELEVATION CLAIM GROUP REMARKS 0-50' CP-75-22P 21+10N, goo 300' 2725' Caledonia 21 North Overburden Light grey andesite porphyry

34 APPENDIX V CONTRACTORS INVOICES

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39 A SUBSIDIARY OF AMERICAN METAL CLIMAX, INC. PHONE [AREA CODE 604) TELEX X THURLOW STREET VANCOUVER, BRITISH COLUMBIA V6E 3L6 AGREEMENT ENTERED INTO THIS 26th DAY OF MAY, BETWEEN AMAX Potash Limited, Thurlow Street, Vancouver, B.C. V6E 3L6 the party of the first part, hereinafter referred to as the Client, AND A1 Miller Percussion Drilling, Ltd., P.O. Box 182, Kamloops, B.C. V2C 5K6 the party of the second part, hereinafter referred to as the Contractor. WHEREAS the Client wishes to have performed certain percussion drilling on its Caledonia Property, British Columbia and whereas the Contractor, in consideration of payments hereinafter contained, undertakes to do the said percussion drilling commencing on or about the 1st of July,. NOW THEREFORE IT IS WITNESSED: GUARANTEED FOOTAGE 1. The Client guarantees a minimum of fivethousand (5,000) feet of percussion drilling in a series of vertical holes of a minimum depth of one hundred (100) feet, and a maximum depth of three hundred (300) feet. All measurements to be taken from top of casing.

40 -2- BOLE SIZE 2. The Contractor guarantees to drill the minimum footage by drilling 2 inch holes utilizing a truck mounted drill capable of both wet and dry percussion drilling, and to supply forthwith cne drill outfit along with necessary associated equipment and labour to commence the work within the time limits specified by the Client. FOOTAGE RATE 3. The basic footage rate is Two Dollars and Ninety Cents ($2.90) per foot drilled. If holes of a greater depth than three hundred and fifty (350) feet are desired, such drilling shall be performed only upon such conditions and at such rates as may be agreed upon before commencement of such drilling. PENETRATION OF OVERBURDEN 4. Wherever overburden is encountered on a set up, it is agreed that the Contractor's charge for penetrating such overburden shall be Two Dollars and ninety Cents ($2.90) per foot. In the case of any hole requiring over 50 feet of casing, the cost of casing lost will be or the Client's account at the rate of Two Hundred and Eighty-Nine' Dollars ($289.00) per 10 foot length plus the cost of couplings. CHEMICAL GROUT 5. Cost of chemical grout if requested shall be for the Client's account at Cost per batch application. Mud circulation if required at cost of materials. WATER 6. A water truck is to be supplied by the Contractor. TRANSPORTATION AND MOVES 7. The Client will construct all necessary access roads and drilling sites and will provide on request and without delay one bulldozer with operator to assist in moving the said drilling equipment to and from or on or about the drill site and will bear the cost thereof. The Client will determine the location of all drill holes, the order of drilling the said holes, and the method of obtaining samples but in all other respects the drilling operations shall be carried out under the direction and control of the Contractor. The Contractor will carry out

41 -3- the drilling as expeditiously as possible but shall not be liable for delays due to weather, or other circumstances beyond its control nor shall the Contractor be obliged to drill at, or move its equipment or personnel, to any site. Mobilization to the property from Kamloops and demobilization from the property to Kamloops shall be for the Client's account, at a rate of One Dollar and Twenty-Five Cents ($1.25) per mile. Interim service trips in connection with the maintenance of drill camps and the drilling operation shall be for the Contractor's account. WAITING TIME FOR ORDERS 8. It is understood and agreed that time lost waiting for orders rom the Client's Resident Engineer, or Representative, shall be charged to the Client at Twenty-five Dollars ($25.00) per hour. For the purpose of this Agreement "waiting time" includes only the time lost by the Contractor through delays occasioned by the Client, its servants or employees, through failure to provide instruction, permits, licences, access roads, transportation and the like when required. If a normal working day is lost the reimbursement shall be the stipulated rate for each hour which would normally have been worked (i.e. 8 hours for single shift operation and 16 hours for double shift operation). SAMPLING 9. Samples will be taken on standard ten foot runs and will be delivered to the Client's representative at the drill sites in suitable containers. Containers will be provided by Client. The Contractor will maintain a daily record of the drilling operation and will furnish to the Client a copy thereof duly signed by the Client's representative at the drill site. In the report the hole identification number shall be that prescribed by the Client. CAMPS 10. The Contractor agrees to provide board and lodging for its own men, and at its own expense. DISCIPLINE 11. The Contractor shall, at all times, enforce strict discipline and maintain good order among its employees, and shall not retain on the work any unfit person or anyone not skilled in the work assigned to him.

42 -4-, Any employees of the Contractor who are objectionable or unsatisfactory to the Client, shall be removed from the work and replaced by an employee satisfactory to the Client. INSURANCE 12. The Contractor will carry and maintain during the continuance of this Agreement the following insurance: a) Workers' Compensation Insurance in accordance with the laws of the Province of British Columbia, and b) Comprehensive Public Liability Insurance with minimum limits of Five Hundred Thousand Dollars ($500,000) for general liability property damage, bodily injury or death. Comprehensive insurance in the amount of $200,000 shall be maintained on each vehicle operated by the Contractor. Such insurance shall not be cancelled, altered or amended without ten (10) days prior written notice having been furnished to the Client. Before commencing drilling operations hereunder, the Contractor shall furnish the Client certificate or certificates evidencing insurance coverage in accordance with the requirements of this ' sect ion. The Contractor shall indemnify and hold the Client harmless from and against all claims, demands, causes of action, losses, liabilities and expenses arising in favour of Contractor's employees, the Client's employees or third parties on account of bodily injury, death or property damage resulting from Contractor's operations under this Agreement. The Contractor shall also indemnify and hold the Client harmless from and against all claims and liens for and in respect of labour, materials and services and supplies furnished the Contractor for its performance under this Agreement. PAYMENT FOR WORK 13. The Contractor shall render statements of account at weekly intervals and the amount due him shall be payable within seven days. Payments are to be made payable to: A1 Miller Percussion Drilling, Ltd., P.O. Box 182, Kamloops, B.C. V2C 5K6 THIS Agreement may be altered only by written consent both parties hereto. of

43 *, This Contractor shall be an independent Contractor in the performance of work hereunder and neither the Contractor nor any one employed by him shall be deemed for any purpose to be the employee, agent or servant of the Client. The Contractor shall not assign any right nor delegate any duty under this Agreement without the prior written consent of the Client. The Client will withhold Five Hundred Dollars ($500.00) from the final invoice until all drill sites have passed inspection by the Client's representative for cleanliness. IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year above written. A1 Miller Percussion Drilling, Ltd. I;'.1 \ AMAX Potash Limited

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