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Monte Cristo
Platinum, Palladium, Gold, Silver

The Monte Cristo and Chilco Properties (collectively referred to as the Monte Cristo Property) are located in a wide section of the Lillooet River Valley, approximately 31 kilometers northwest of the north end of Harrison Lake, BC, and comprise three contiguous staked claims covering approximately 4 kilometers of placer resources along the Lillooet River. Historical assessment of the mineralization of the property describes precious metal bearing sands that cover a 400 to 800 meter wide section of the Lillooet River valley. These post-Pleistocene sands are said to contain gold and platinum in submicron sized particles. As recorded by the BC Ministry of Mines MINFILE No 092GNE013 and 092GNE019, the sands are estimated to contain inferred reserves of 22.7 million tonnes down to a depth of 30 meters, and that a 1.4 kilogram sample of sand, taken at least a meter below surface, assayed 2.47 grams per tonne gold, 4.80 grams per tonne silver, 2.77 grams per tonne platinum, and 2.71 grams per tonne palladium.

On February 14, 2012, our JV partner, Devlin's Bench Mining Ltd and P. Wright Contracting Ltd (PWC) began an exploration and sampling program on the Monte Cristo property under the supervision of Ms. Agathe Bernard, B.Sc.. The initial goal of the work program was to verify the presence of submicron size metals in the sand material along the Lillooet River, which was previously indicated by work conducted in 1970 by G.L. Kirwin, B.Sc., and J.M. Ashton, P.Eng., as documented in BC Assessment Report 2589. Instead, the crew unexpectedly found an abundance of visible gold, with some particles as large as one millimeter.

In her initial report from the field, Ms. Bernard stated, "The first round of soil sampling was exceptionally promising, showing visible gold flakes in 10 out of 17 samples collected. Most of the samples consisted of 60-90% fine to medium grained dark gray sand, with 10-30% sub angular light gray fine gravel. Most of the darker fraction correlated with high magnetite concentration, which is a favorable indication for gold accumulation at the site and is almost invariably present in placer gold deposits."

The first 17 samples of black sand were concentrated on site using a Keen concentrator and reduced in volume by approximately 20 to 1000 times to concentrate the fine part of the sample. The concentration was supervised by Ms. Bernard, and the samples were sent to ALS Labs in Vancouver for analysis. The assay results are reported as follows:

SAMPLE Weight Au Au Ag Ag Pt Pd
DESCRIPTION kg g/t g/t (diluted)** g/t g/t (diluted)** g/t g/t
PS17-120216 0.12 75.30 3.77 20.20 1.01 nil 0.003
PS01-120215 0.04 NSS* NSS NSS NSS NSS NSS
PS02-120215 0.06 79.80 3.99 0.06 0.00 nil 0.002
PS03-120215 0.04 71.70 3.59 nil nil nil 0.001
PS04-120215 0.08 5.66 0.28 23.00 1.15 0.012 0.005
PS05-120215 0.16 3.32 0.17 1.84 0.09 nil 0.003
PS06-120215 0.12 27.40 1.37 nil nil nil 0.003
PS07-120215 0.02 65.30 3.27 2.18 0.11 nil 0.006
PS08-120215 0.02 71.30 3.57 nil nil nil 0.004
PS09-120215 0.08 9.47 0.47 4.13 0.21 nil 0.002
PS10-120215 0.06 0.76 0.04 0.09 0.00 nil 0.003
PS11-120215 0.08 1.76 0.09 0.24 0.01 0.005 0.004
PS12-120216 0.14 112.50 5.63 nil nil nil nil
PS13-120516 0.04 60.80 3.04 nil nil nil 0.003
PS14-120216 0.06 8.94 0.45 nil nil 0.067 0.004
PS15-120516 0.1 114.00 5.70 nil nil nil nil
PS16-120216 0.08 74.80 3.74 65.10 3.26 nil nil

* NSS is non-sufficient sample size
** As the samples were concentrated, only the very fine and heavy particulate were analyzed.
This magnifies the values from real concentration 20 to 1000 times. The estimated diluted values
indicate what would be expected from a raw bank cubic yard of material prior to concentration
processing.

The Company notes that metal values in placer deposits often increase substantially with increase in depth towards bedrock, which in the case of the Monte Cristo is expected to be well over 100 feet below the surface. These assay results from near-surface samples are therefore considered quite significant.

Historical Assessment

As reported in BC Ministry of Mines Assessment Report 2589 in 1970, "An estimated 25 million tons of alluvial sand underlie the property to a depth of 100 feet from the surface, and although depth of the sands is unknown at this point, indications are that this figure can be increased substantially". The report goes on to say that "precious metal values persist to a depth of 100 feet and, in fact, values increase with increasing depth". Another section of the same report postulates that probable reserves are 50 million tons. The assessment report can be accessed directly at ARIS 2589

The following are among the formal conclusions stated by G.L. Kirwin, B.Sc., and J.M. Ashton, P.Eng., the geologists who authored and certified the Assessment Report:

  • That silver, gold, platinum, and allied metals exist in submicron size particles along with the possibility of sponge iron in economic proportion and values in the raw sand of the Lillooet River area.
  • That many producing mines in the world today derive source from submicron size metals in sand material.
  • That metal values are reasonably consistent throughout the sand having been derived from a common source and deposited under similar conditions, and thus it is highly probable the subject property contains vast quantities of precious metals.
  • That original samples show very low grade gold values, while more recent findings show an ounce of gold per ton from many assays.
  • That metal values increase substantially with increase in depth.
  • That sand is alluvial, not glacial, indicating full contributions of metals throughout.
  • That sands are amenable to open cut operations in an area of easy access with abundant water supply and source of electric power with direct access to Pacific Ocean ports.
  • That a probable 50 million tons of sand to depth 100 feet from surface underlie the Chilco property. Inferred faulting adds further depth potential.

The report closes with the following statement:

"The depth of alluvium is unknown at this time. However, as the Lillooet River occupies a probable fault zone, potential for a deep alluvium deposit exists. Samples have been taken as deep as 130 feet elsewhere along the River without encountering bedrock. As concentrations of metals in alluvial deposits normally increase with depth reaching a maximum on or close to underlying bedrock, it becomes significant that values were obtained near surface. Deeper sampling would probably yield higher metal value."