Gary Nordin, P.Geo. B.C. is the designated Qualified Person for the Company in accordance with National Instrument 43 101.
LOCATION AND MINERALIZATION
The 100% owned Granite Gold-Silver claims comprise 76 units covering 1,900 hectares in the Johansson Lake area, Omineca Mining Division of British Columbia, located 360 km northwest of Prince George. The Omineca Resource Access Road and auxiliary roads provide four-wheel drive access to the property.
Early exploration work done in 1936 and 1937 by Cominco consisted of hand trenching and underground workings, reporting encouraging assays from trenches across widths of as much as 15 meters, with grades of up to 10.3 g/t Gold across 10 meters. The B.C. Department of Mines records indicate sampling in the old underground workings with a grade of 6.86 g/t gold over 12.2 metres including 14.4 g/t gold over 3.0 metres.
Three mineralized shear zones with gold/silver mineralization have been identified to date on the property. Values from rock sampling in 1993 returned Gold and Silver grades ranging from 1.99 g/t to 43.88 g/t Gold and 9.94 g/t to 546.77 g/t Silver. Soil and rock geochemistry completed in 1994 outlined a broad 300 meters by 2.0 kilometer Gold soil anomaly within the auriferous shears in the center of the anomalous area. Rock samples from Zone 1 contained up to 10.7 g/t Gold and 14.8 g/t Silver over 0.5 meters.
A program of mapping, rock sampling and 190m diamond drilling in 2 holes was completed by Hemlo Gold Mines Inc. in 1995. Trench sampling within Zone #1 returned assays averaging 6.8 grams/tonne gold over 7.5 metres. DD hole 95-2 (88.4 meters) intersected Zone 2 with 9.1 meters of mineralization averaging 3.36 g/t Gold and 11.7 g/t Silver of which 3.1 meters showed values of 8.9 g/t Gold and 28.4 g/t Silver.
In 1996 further trenching and channel sampling was carried out to test the grades and extent of the previously identified Gold-Silver anomalous zones. Average gold and Silver values from the three mineralized zones ranged between 1.82 g/t to 9.44 g/t Gold and 19.87 g/t to 43.10 g/t Silver over widths of 3.0 to 11.0 meters. Two grab samples from shear Zone 2 returned 10.22 g/t and 16.99 g/t Gold and 274.6 g/t and 492.0 g/t Silver respectively. Chip samples from Zone 3 contained 3.8 g/t Gold and 23.0 g/t Silver over 5.0 meters. It is possible that Zones 2 and 3 are part of the same structure and that these may connect at depth with Zone 1. If this is the case, the strike length of the shear hosted Gold-silver mineralization on this property could be 600 meters.
A 500m diamond drill program by Canasil in 1997 within Zone #1 and #2 intersected several sections with anomalous gold and silver values (best section in GB 97-01 5.0 metres with 2.37 g/t gold and 5.85 g/t silver) however failed to locate sections corresponding in grade to the many samples recovered from these zones.
Further drilling is recommended to investigate these structures, which are presumed to occur relatively close to the surface.