Properties

INTRODUCTION

• 1,500 hectares, 100% owned
• High grade silver prospect
• 350 km NW of Prince George, BC
• Silver bearing quartz veins and breccias
• 22 channel samples returned average grade of 53.6 oz/t Ag over 41cm
• Metallurgical testing indicates 94%-98% Ag recovery
• Silver vein mineralization to be drill tested

LOCATION AND MINERALIZATION

The 100% owned LIL claims comprise 20 units covering 500 hectares, located in the Swannell River area in the Aiken Lake district of the Omineca Mining Division, 350 kilometres northwest of Prince George, British Columbia.Previously access to the property is by helicopter from a base on the Omineca Resource Access Road at Blackpine Lake. Logging roads now provide four whell drive access to within 2km of the property. The elevation ranges from 1,225m to 1,375m.Mineralization on the property consists of narrow high grade, silver bearing quartz veins and breccia zones, which are hosted in quartzite and a granitic dyke near fault intersections. The silver-bearing structures have been identified over a distance of 300 metres. Two types of silver bearing floats have been identified in the drift fan of LIL creek. Smaller floats from narrower veins contain arsenopyrite in addition to silver-bearing sulphides, corresponding well with the vein outcrops along LIL creek. Larger floats, indicating greater widths contain no arsenopyrite, very little sphalerite and more polybasite and ruby silver. Their internal structure also shows less quartz and more quartzite inclusions. As this structure is not seen in the outcrops, it is assumed that the larger floats come from other veins not outcropping in the canyon.

1998 CHANNEL SAMPLING

Channel sampling of the exposed silver veins along LIL Creek in 1998 returned values ranging from 4.3 ounces/ton silver to 325.4 ounces/ton silver over widths ranging from 0.20 to 0.90 metres. The average grade and width of 22 vein samples is 53.6 ounces/ton over 0.41 metres. Silver mineralization consists primarily of argentite, pyrargyrite (ruby silver), and friebergite in quartz vein and breccia zones developed within a quartzite host. Results of the 1998 channel sampling program are listed below.

2001 METALLURGICAL TESTING

In September 2001 a series of laboratory bench tests were carried out by BC Research Inc., Vancouver, on a sample of silver ore from the LIL property. The test work showed that the composite sample contained a very high silver grade of over 100 oz/ton and that high rates of recovery were readily obtained through flotation.Silver recoveries of 94 – 98% were obtained with grinds ranging from 37 – 96% passing 200 mesh, with recoveries increasing with finer grinding. A single bulk concentrate grading 7 – 10% silver could be obtained, with potential contaminants such as mercury, cadmium and selenium well below problem levels. Arsenic is also low, and may be further suppressed in the concentrate cleaning stages. BC Research Inc. concluded that the economic potential of this ore appears to be very high using a very simple processing flowsheet.

EXPLORATION POTENTIAL

The property is considered to have the potential to host a high-grade silver deposit and further exploration work and diamond drilling is recommended for the LIL claims.

1998 CHANNEL SAMPLING

Results of 1998 channel sampling program on exposed veins along LIL creek: