2014 Slocan City Arlington Stockpile British Columbia Geochemical Report

Sampling of Mine Stockpile Dumps

on the

Arlington-Silver Leaf- Speculator-Lily B Property

Events 5510821 and 5511390

SLOCAN MINING DIVISION

NTS 82F 14W

BCGS Map: 082F074

Latitude: 49 47’ 116’’ Longitude: 117 22’ 161’’ UTM 11U: 473412E 5514822N

Minfile Numbers: 082FNW152 Arlington and 082FNW151 Speculator

082FNW226 Silver Leaf and 082FNW153 Lily B

For

John Bakus (MLS Mining) : Owner 3-1572 Lorne Street East

V2C 1X6 Kamloops, B.C. FMC: 223385

Prepared

by

Chris Graf, P.Eng.

October 25, 2014

1

TABLE OF CONTENTS Page No. 1.00 INTRODUCTION…………………………………………………………………………. 04 1.10 Objectives………………………………………………………………………….. 04 1.20 Location and Access…………………………………………………………… 04 1.30 Mineral Claims…………………………………………………………………… 04 1.40 Physiography…………………………………………………………………….. 04 1.50 History………………………………………………………………………………. 12-13 2.00 GEOLOGY…………………………………………………………………………………… 14-19 2.10 Regional Geology……………………………………………………………….. 14 2.20 Property Geology History Mineralization………………………….. 14-19 3.00 WORK PROGRAM………………………………………………………………………. 19-23 3.10 Introduction…………………………………………………………………….. 19-20 3.20 Results…………………………………………………………………………….. 20-21 3.30 2014 Work Spreadsheet .............................................................. 22-24 4.00 CONCLUSIONS……………………………………………………………………………. 30-31 5.00 RECOMMENDATIONS…………………………………………………………………. 31-32 6.00 REFERENCES………………………………………………………………………………. 32 7.00 STATEMENT OF QUALIFICATIONS……………………………………………… 33 8.00 TECHNICAL WORK REPORT FORM STATEMENT OF COSTS………... 34-37 9.00 5510821 5511390 TITLE PAGE SUMMARY REPORT........................ 60-61 2

LIST OF FIGURES Page No. FIGURE 1. Arlington Property B.C. Location Index map............................. 05 FIGURE 2. Arlington Property Location and Road Access Map................ 06 FIGURE 3. Arlington Property Road Access and Claim Map..................... 06 FIGURE 4. Metallic Mineral Potential Map..................................................... 07 FIGURE 5. Industrial Mineral Potential............................................................ 08 FIGURE 6. Arlington Property Hillside Relief Map....................................... 09 FIGURE 7. Raster Base Map...............…................................................................ 09 FIGURE 8. Slocan City Area Historic ARIS Reports............…........................ 10 FIGURE 9. Aerial Photo (Orthophoto Mosaic) with Sample Locations.... 10 FIGURE 10. List Mineral Tenures/Crown Grants Arlington Bakus......... 11 FIGURE 11. Arlington Bakus Crown Grant List and Map.................................... 11 FIGURE 12. Regional Geology and Gold/Silver Ratios Contour Map........ 16 FIGURES 13.1-13.9 Sample Location Maps ….................................................. 25-29 13.1 Google Map Bakus Slocan Properties including the Arlington......... 25 13.2 Google Map Showing Tenures 944429 1029267 1029268 …........... 25 13.3 Base Map IMAP B.C. Tenures 944429 1029267 1029268................. 26 13.4 Google Map Arlington Stockpile Dump Sample Locations................ 26 13.5 Google Map Speculator Dump and Stream Silt Sample Locations... 27 13.6 Hand Drawn Map Arlington Stockpile Dump Sample Locations...... 27 13.7 Hand Drawn Map Speculator Stockpile Dump Sample Locations.... 28 13.8 Google Map Lily B Rock Float Sample Locations.…............................... 28 13.9 Arlington and Speculator Dump Sample Silver Assay Map............... 29 APPENDIX 1. Stockpile Dump Samples Analytical Results………………………………….......... 38-43 APPENDIX 2. Arlington 2014 Work Site Photographs........................................................... 44 APPENDIX 3. Arlington Speculator Silver Leaf Lily B Minfile/Inventory Reports........ 45-59 3

1.0 INTRODUCTION

This Report describes a program of investigation, sampling and geochemical analysis of the mine dumps/stockpiles and the additional collection of sediment silt and mineralized float samples on the Slocan Arlington, Speculator and Silver Leaf crown grants mineral claims and mineral tenure property group; that was conducted in June of 2014. (8.00) 1.10 Objective The primary objective was to determine whether the historical mine dumps on the property contain potentially economic quantities of silver mineralization. 1.20 Location and Access The Arlington Property is located approximately 11 km east of the town of Slocan, near the confluence of Springer and Speculator creeks at an elevation of 5,200 feet (1,585 meters). The center of the property is at latitude 49 47’ 30’’/ longitude 117 21’ 40’’and lies on NTS map 82F 14W and BCGS map 082F074 (Figure 1). The Arlington Minfile occurrence number is 082FNW152 and the adjoining Speculator Minfile occurrence number is 082FNW151. Access is via a main arterial forest service logging road that branches off the Slocan New Denver highway near the town of Slocan and runs up the southeast side of Springer creek for 8 km to the property. This road was blocked by a mudslide at the time of the present work program and access was gained via a poorly maintained road which branches off the Slocan highway near Slocan and runs for 6 ½ miles (10 km) up the northwest side of Springer creek to the property. (Figures 2,3).

1.30 Mineral Claims The Arlington mineral property consists of 48 MGS mineral claims and 6 crown granted mineral claims that are all owned 100% by John Bakus (Figures 3 & 10). 1.40 Physiography Topography is steep but not too rugged. Elevations range from 1430 to 2070 meters above sea level. Vegetation consists of alders, jack pine and spruce in the lower elevations to semi-alpine above 1900 meters. The property is drained by Springer creek running southwest and Speculator creek running south. The climate is typical of the Southern Interior of BC. Snow conditions allow the property to be worked from early June to mid October. 4

Figure 1. Arlington Property B.C. Location Index map Scale: 1:10,000,000

5

Map Center: 52.3421N 121.6962W Map Center: 52.3421N 121.6962W Map Center: 52.3421N 121.6962W Map Center: 52.3421N 121.6962W Map Center: 52.3421N 121.6962W

Slocan CitySlocan CitySlocan CitySlocan CitySlocan City

Abbotsford

Armstrong

Burnaby

Castlegar

Colwood

Coquitlam Courtenay

Cranbrook

Dawson Creek

Duncan

Enderby

Fort St. John

Grand Forks

Greenwood

Kelowna Kimberley Merritt

Penticton

Port Alberni

Prince George

Prince Rupert

Quesnel

Revelstoke

Surrey

Terrace

Victoria

Williams Lake

Figure 2. Arlington Property Location and Road Access Map Scale 10.00 KM Google Eye View 44.08 KM Mineral Claims (Brown) Places (White) Access Routes (Blue) Raster Map

Figure 3. Arlington Property Road Access and Claim Map Scale 5.00 KM Google Eye View 22.55 KM Mineral Claims (Brown) Crown Grants (Yellow) Access Route 2014 (Blue)

6

Figure 4. Metallic Mineral Potential Map Scale 10.00 KM Google EV 44.08 KM (Data BC Geographic Data Discovery Service) A seamless polygon coverage depicting the mineral resource assessment tracts defined during the 1992-1997 Mineral Potential project. The tracts (794) are based on common geologic characteristics and are given a relative rank from 1 to 794( highest) based on the likelihood of discovering new metallic and/or industrial mineral resources.

Metallic Mineral Potential by Rank

7

Figure 5. Industrial Mineral Potential Scale 10.00 KM Google EV 44.08 KM (Data BC Geographic Data Discovery Service) A seamless polygon coverage depicting the mineral resource assessment tracts defined during the 1992-1997 Mineral Potential project. The tracts (794) are based on common geologic characteristics and are given a relative rank from 1 to 794( highest) based on the likelihood of discovering new metallic and/or industrial mineral resources.

Industrial Mineral Potential by Rank

8

Figure 6. Arlington Property Hillside Relief Map Scale 10.00 KM Google EV 44.08 KM (ilmbwww.gov.bc.ca) Hill shaded imagery is a simulated cast shadow of sun upon a raised relief map visually representing a digital elevation model (DEM)

Figure 7. Raster Base Map Scale 10.00 KM Google Eye View 44.08 KM (openmaps.gov.bc.ca)

9

Figure 8. Slocan City Area Historic ARIS Reports Scale 5.00 KM Google EV 22.55 KM Mineral Claims (Brown) Crown Grants (Yellow) ARIS Reports (Blue)

Figure 9. Aerial Photo (Orthophoto Mosaic) with Sample Locations Scale 5.00 KM Google EV 22.60 KM (ilmbwww.gov.bc.ca)

10

Figure 10. List Mineral Tenures/Crown Grants Arlington Bakus (Two events filed for 2014 work program EVENTS (5510821 5511390)) Event: 5510821 (Geological, Geochemical, Prospecting, Preparatory Surveys, PAC Withdrawal)

Event #1

5510821

Recorded

2014/jun/29 Work Type: Technical Work (T)

Work Start:

2014/jun/12 Work Stop 2014/jun/29

Total Work:

$ 24175.00

Total Applied Work Value: $34530.32 PAC Name Bakus Debited PAC amount $10355.42 Work credits and PAC were filed on these mineral claims and the claims where work was performed are highlighted in yellow

Tenures

1019239 1023376 1023380 1023389 1023396 1023405 1023408 1023417 1023445 1023446

1023447 1023448 1023450 1023451 1023545 1023651 1023696 1023697 1023698 1025301

1027021 1027540 1027970 1029026 1029257 1029258 1029259 1029260 1029264 1029266

1029267 1029268

Event: 5511390 ( Additional unclaimed expenses and PAC withdrawal related to 1st EVENT 5510821)

Event #2

5511390

Recorded

2014/jul/02 Work Type: Technical Work (T)

Total Work

$ 4702.95

Total Applied Work Value: $ 6207.59 PAC Name Bakus Debited PAC amount: $1504.64 Additional Work credits (Transportation and PAC) were filed on these mineral claims and the claim where work was performed is highlighted in yellow

Tenures

1027826 944429 1027827 1023637 1027886 1021603 1028871 1028870 1027896

1027998 1028034 1027890 1027891 1023461 1028092 1021620

SUMMARY EVENTS 5510821 and 5511390 5510821 Total Value of Work

$ 24175.00

5511390 Total Value of Work

$ 4702.95 5510821 and 5511390 Total Value of Work $ 28877.95

5510821 Debited PAC amount

$ 10355.32

5511390 Debited PAC amount

$ 1504.64 5510821 and 5511390 Debited PAC amount $ 11859.96

5510821 Total Applied Work Value:

$ 34530.32

5511390 Total Applied Work Value:

$ 6207.59 5510821 and 5511390 Total Applied Work Value $ 40737.91

Figure 11. Arlington Bakus Crown Grant List and Map

DL 5763 Silver Leaf,2416 Arlington,2417 Burlington,2356 Arlington No. 1 Fr, 2360 Speculator,2361 Speculator Fr.

11

1.50 Property History The Arlington property was staked in 1894 and was worked extensively from 1899 to 1903. Peak production was achieved during 1901. The operation was closed and reopened during 1905 and operated until 1908. According to records, production up to the end of 1924 is indicated to have been 12,795 tons averaging 72.2 oz/t silver and 5% lead. This material was shipped and lower grade material was rejected by hand sorting in the stopes and on the dumps. The total production to 1980 was 1,900,000 pounds of lead, 250,000 pounds of zinc and 1,010,606 ounces of silver from 22,643 tons of ore for an average grade of 44.6 oz/ton silver. The next major activity occurred in 1961 when Aumaque Gold Mines opened 2 levels and completed 8 underground diamond drill holes with a total length of 600 feet. Between 1965 and 1971, Arlington Silver Mines Ltd. conducted underground and surface exploration and mined small amounts of ore for direct shipping to a smelter. Subsequently during the 1970’s several leasors mined small volumes for direct shipment to a smelter. The last major pulse of activity at the Arlington property was during 1981. During this time Sveinson Way Mineral Services carried out a detailed surface and underground evaluation of the potential of the property including surface and underground drilling and mapping as well as soil sample/VLF grids. This program was cut short due to lack of funds before their evaluation was complete. The adjoining Speculator property had a similar early century discovery and history of development but no work has occurred since 1910 and there is very little known of its development or production. According to assessment report #10,172 written by Sveinson Way Mineral Services, sketches of drifting they had suggested a total development of 1,035 meters in the Speculator workings but then estimated from the amount of material existing on the dumps that possibly 3,200 meters of development had been done if it was all drifting. They felt that some stoping had been done as well and mentioned a surface crater that supports the concept that stoping had been done. Underground tunneling was also conducted on the Silver Leaf claim during 1981 and perhaps earlier, but there is no record of any ore shipments. The hydrothermal mineralized zone occurs within the Arlington shear structure that is approximately 20 meters wide and cuts Nelson granitic rocks striking at 35 degrees northeast and dipping at 65 degrees to the southeast. This is a significant mineralized structure that runs northeast from the Silver Leaf crown grant, across the adjoining Arlington and then the Speculator 12

crown grants. From there the structure continues northeast to the Enterprise Creek drainage for a further 5 km to the Enterprise crown grant and from there on to the Westmont crown grant. In 1981, Sveinson Way Mineral Services took three bulk samples totaling 500 tons, one from each of three existing mine dumps from the Arlington tunnels and assayed the samples for silver. They calculated the three dumps contained a cumulative volume of 49,150 tons of rock averaging 4.08 oz/t silver, or 42,325 tons averaging 4.44 oz/t silver. The company also took bulk samples totaling 60 tons, one from each of 4 mine dumps at the adjoining Speculator tunnels and assayed them for silver, but these samples were lower grade and contained approximately 1 % silver. The company calculated that the Speculator dumps totaled 24,200 tons. The company concluded that important silver reserves occur in the mine stockpile dumps and that their results were not definitive since their sample cuts were unilocational, but were indicative of which dumps could be considered for recovery given a concentrating plant. A government capsule geological description of the Arlington property states that “Ore shipped from the dump between 1937 and 1962 amounted to 434 tons. From this ore 12,930 ounces of silver, 38,180 pounds of lead and 27,076 pounds of zinc were recovered.” The BC Geological Survey Minfile inventory report for the Arlington mine (082FNW152) states: “from previous work there were blocked out 43,110 tonnes of proven surface dump ore at 487.8 grams (15.17 oz/t) per tonne silver, 0.49 % lead and 0.39 % zinc.” Their reference is listed as Vancouver Stock Exchange Statement of Material Facts #108/90, 1990 by Lightning Creek Mines Ltd. The same Minfile inventory report also states there is an indicated underground reserve of 17,470 tonnes grading 700 g/tonne silver, 1.04% lead and 0.85% zinc.

13

2.00 GEOLOGY 2.10 Regional Geology

The property lies in the southern part of the Selkirk Mountains in a region of the Nelson batholith and other stock size intrusions. Strata of the region include the Precambrian Horsethief Creek Group that lie to the west of Slocan lake and the Slocan and Kaslo Groups that lie on the east of the lake.

The Slocan Group is Triassic in age and consists of argillites, phyllites and quartzites, with minor amounts of limestone, conglomerate and andesitic

volcanic rocks. The Kaslo Group consists of metamorphosed andesitic rocks of Mesozoic age. The Precambrian rocks are separated from the Mesozoic strata and the Nelson Batholith by a persistent crush zone. The Slocan area lies within the core of the Kootnay arc and is dominated by the Nelson Batholith that underlies a greater part of the region. The Slocan Group that crops out to the north of the Nelson Batholith is characterized by a major synclinorium called the Slocan Syncline.

2.20 Property Geology and Mineralization

The Arlington Property is underlain by a porphyritic granitic phase of the Nelson Batholith. The rock is regionally described as granite but on the property it borders on granodiorite in composition. The rock is melanocratic medium grained and porphyritic. Phenocrysts of white to pinkish colored K-feldspar regularly occur in sizes 2-5 cm. Mafic minerals are hornblende and biotite.

Narrow pegmatite and lamprophyre dikes also occur in the porphyry and these along with diabase to lamprophyre dikes also occur in the alteration zone. Zenoliths of sedimentary rocks, mainly siltstone, are common within the batholith.

Broad areas of the granitic rock have been argillically altered, causing the rock to decompose into a sandy material that through solifluction has moved downslope and along with glacial material forms an extensive overburden cover at least 10 meters thick that masks the underlying bedrock. The decomposition mainly affected the groundmass of the granite and the large K-feldspar crystals have largely remained intact. 14

Interestingly, the Sveinson Way Mineral Services assessment report #10,172 states “The intensity of alteration and the number and character of certain dikes suggest the possibility of a second intrusive. If such a body is responsible for alteration, silver and sulfides, a zoning concept should be investigated; a concept where Cu/Mo might be located at some depth or laterally. Molybdenite is known to occur to the south of the Meteor property. Valhalla intrusives are known to cut the Nelson Batholith to the north.”

The Arlington mineralization occurs within an approximately 20 meter wide structural zone that has an orientation of 035 and a dip of 60-70 SE and was prepared by crushing, shearing and hydrothermal alteration. Other similar zones have been established on the property but little is known of those. Hydrothermal alteration within the zone probably occurred during the structural event and the silver, lead, zinc sulfide mineralization appears to have accompanied the hydrothermal event. Syn and post mineralization faulting appears to be common and in general parallels the original structural zone.

The Sveinson Way report states “On the Arlington property, galena, sphalerite, native silver and stephanite along with minor amounts of tetrahedrite, pyrite and chalcopyrite occur as replacements in chloritized, granitic rock within the shear structure. A large shallow dipping ore pod, dipping 5 to 10 degrees to the northeast with horizontal dimensions of 400 meters and vertical dimensions of 100 meters provided the bulk of the production. The main economic minerals are native silver and stephanite (Ag5SbS4), a silver sulfosalt.”

15

Figure 11. Regional Geology and Gold/Silver Ratios Contour Map (B.C. Ministry of Mines) Ministry Website: (http://www.empr.gov.bc.ca/Mining/Geoscience/MINFILE/ProductsDownlo ads/PublicationsList/Pages/sloccity.aspx#geological setting) Geological Bedrock Map 082FNW

"The Slocan is one of the areas in British Columbia where small scale mining remained viable for many years because of the richness of the ores. In the Slocan City area, more than half of the 125 occurrences were mineral producers - 13 mines have produced more than 1 million grams of silver. The Ottawa (082FNW155), Enterprise (082FNW148), Arlington (082FNW152) and Molly Gibson (082FNW121) mines have each produced more than 30 million grams of silver plus significant amounts of lead and zinc. The first comprehensive descriptions of the mineral deposits of the region were by Cairnes (1934), Maconachie (1940), Little (1960) and Brown and Logan (1989)". 16

http://www.empr.gov.bc.ca/Mining/Geoscience/MINFILE/ProductsDownloads/PublicationsList/Pages/sloccity.aspx#ottawa

http://www.empr.gov.bc.ca/Mining/Geoscience/MINFILE/ProductsDownloads/PublicationsList/Pages/sloccity.aspx#enterprise

http://www.empr.gov.bc.ca/Mining/Geoscience/MINFILE/ProductsDownloads/PublicationsList/Pages/sloccity.aspx#arlington

http://www.empr.gov.bc.ca/Mining/Geoscience/MINFILE/ProductsDownloads/PublicationsList/Pages/sloccity.aspx#molly gibson

The hydrothermal assemblage includes propylitic alteration, which affects the granitic rock and varies from weak to strong chloritic alteration and moderate to strong epidote alteration. As well weak to strong argillic alteration of the granitic rock has occurred and altered the plagioclase feldspar and mafic minerals to a soft white aggregate of sericite and clays but has commonly left the K-feldspars intact and the granitic texture preserved. Weak to strong silicification commonly overprints previous alteration facies and is generally associated with quartz veining and brecciation.

The sulfide minerals present in the alteration zone include galena, sphalerite, stephanite (Ag5SbS4), tetrahedrite, and minor amounts of pyrite and chalcopyrite. Native silver is also present. Most of the ore grade mineralization occurs in irregular lenses in chloritic alteration, although mineralization in the Speculator workings appears to usually be a quartz-carbonate breccia association. Crude banding of the sulfides tends to parallel the alteration zone.

Ore shoots are podiform, tabular bodies of varying widths and often kidney shaped. Common widths are 1m to 2m, but widths up to 7m are known. In the ore quality sections native silver, stephanite and tetrahedrite are usually present. Some galena and sphalerite are almost always present with silver, but the presence of galena and sphalerite does not necessarily indicate appreciable silver grade and silver-lead ratios are in no way consistent.

Native silver occurs as leaf silver along microfractures and partings in chloritic aggregates and the color of the native silver tends to be pale yellowish.

Quartz-carbonate sulfide veins and zones are usually narrow and only occasionally are they sufficiently well enough mineralized to be considered as ore. These veins are podiform, small and tend to parallel the zone.

The ore zone defined by previous mining and diamond drilling lies in a vertical interval of up to 65 meters, over a 400 meter strike length. Toward the southerly end the ore shoots occurred on the footwall of the zone in general. Toward the north, the mineralization appears to have a greater tendency to occur within or on the hanging wall contact of the zone.

A shallow rake to this potential ore horizon is suggested to plunge at about 5 degrees to the northeast. Slickensides on fault planes also have dips of 5 to 10 degrees to the northeast. No fundamental change has been mapped to explain the near horizontal aspect of the mineralized zone, nor has important silver mineralization been found outside its projection, however galena-sphalerite occurrences are known both above and below. 17

In 1970, R.A. Dujardin collected rock samples from several silver deposits and prospects in the Slocan area to investigate whether disseminated silver deposits might occur around the historic silver veins. His study appears to have been a BC government funded project.

During his work he visited the Arlington mine and collected a 10 foot wide chip sample of relatively unaltered brecciated granite from the north wall of the #2 adit that assayed 1.78 oz/ton silver. He wrote that this high silver assay only shows that silver values can be obtained in non vein material but does not indicate widespread dissemination of silver but he did not do a larger sampling program.

During the work program described in this report the author examined chlorite altered granite samples from the mine dumps and observed that although the alteration appeared to be pervasive throughout the rock, it was largely developed along closely spaced microfractures. If silver mineralization accompanied the hydrothermal fluids that produced the chlorite alteration then zones of bulk tonnage silver mineralization could have formed in chloritized alteration zones within the granite. Future exploration work should include collecting samples of this rock type and analyzing them for silver.

In 1981 Sveinson Way Mineral Services drilled 7 surface diamond drill holes totalling 536 meters on the Arlington and Speculator zones. Drill hole 81-5 was drilled below one of the Speculator adits while drill hole 81-7 was drilled into a separate alteration zone about 1 km further east and both holes intersected galena-sphalerite mineralization. There is no record of whether these drill core intersections were ever assayed and the core was stored on site but has now been destroyed.

A soil sample survey was previously conducted over most of the property in 1981 and smaller follow up grids were soil sampled in 1986, 1987 and 1990. VLF-EM surveys were also conducted on all of the soil grids during these programs.

The 1981 soil and VLF-EM survey indicated the possible existence of a hanging wall structure either parallel to or splaying from the Arlington shear.

The purpose of the 1986 program was to test for the possible existence of these structures. The area to the north of the Speculator workings was chosen because the Arlington shear starts to widen considerably in this area and the VLF-EM indicated a structure may exist there.

18

The soil survey conducted in 1987 was done during early June when over 1 meter of snow covered the area and the samples were mainly taken from melted tree wells which is not ideal. The analytical results from these soil surveys outlined a lead-zinc-silver anomaly approximately 1 km northeast of the Speculator workings.

The 1990 program was designed to follow-up the exploration for a mineralized zone in the hanging wall of the Arlington shear and focused in part on a logged off area east of the Speculator adit where there are areas of red mineral soils. This work outlined a multi element soil anomaly that apparently has never been investigated further.

The 10 meter thick overburden cover over most of the area of potential interest masks most of the underlying bedrock, so areas where no soil sample anomalies were found does not mean conclusively that there is no underlying mineralization in bedrock. The results of the previous soil sample surveys are not conclusive and collection of 50 stream sediment samples from streams that occur in the area upslope of the Arlington and Speculator workings is recommended for the next work program.

3.00 WORK PROGRAM IN 2014

3.10 Introduction

The work program discussed in this report in part consisted of collecting twenty-three samples from stockpile dumps that had been excavated from the Silver Leaf, Arlington and Speculator tunnels (Figure 6). These samples weighed between 7.02 kg and 9.82 kg and were prepared and analyzed by Aqua Regia (14 elements) and ICP-MS (31 elements) at Acme Labs in Vancouver, B.C. All samples that contained >50 ppm silver were subsequently fire assayed for both silver and gold.

Three samples were collected from the Silver Leaf dump (AD2-01-14, AD2-02-14 & AD2-03-14). Eight samples were collected from three separate portions of the main Arlington stockpile dump (labeled Dumps AD1, AD2 & AD3) that is located about 70 meters below the main Arlington adit. Samples AD1-01-14 & AD1-02-14 were collected below the road at the bottom of the main stockpile dump, samples AD1-03-14, AD1-04-14 & AD1-05-14 were taken above the road at the bottom of the main stockpile dump and samples AD1-06-14, AD1-07-14 & AD1-08-14 were taken along the south side of the large trench that was excavated across the main stockpile dump by Sveinson Way Mineral Services in 1981. 19

Three samples (AD3-01-14, AD3-02-14 & AD3-03-14) were collected from the second largest Arlington stockpile dump that is located about 70 meters southwest of the main Arlington adit. Two samples AD4-01-14 & AD4-02-14) were collected from the stockpile dump that is below the main road at the next highest Arlington adit and one sample (AD5-01-14) was collected from the dump below the main road at the highest Arlington adit. Two samples (SPD14-01 & SPD14-02) were collected from the dump below the lowest Speculator adit, three samples (SPD14-03, SPD14-04 & SPD14-05) were collected from the dump at the next highest Speculator adit and one sample (SPD14-06) was collected from the dump at the highest Speculator adit (Figure 6). Twenty silt samples (SSA-01-14 to SSA-20-14) were collected from above the Speculator workings. These samples may be assayed with the results included in a future report Twenty five float samples (LB-01-14 to LB-24-14) were taken from in and around the former recorded producer Lily B. which lays just south of the Arlington workings across Springer Creek. These samples may be assayed with the results included in a future report.

The present owner requested this program be conducted so as to acquire data regarding the silver content of the mine dumps in order to evaluate whether the silver contents would be high enough to make a decision to file applications to extract two 10,000 tonne bulk samples of the dump material for processing.

3.20 Results The 14 elements analyzed by Aqua Regia were Mo, Cu, Pb, Zn, Ni, As, Cd, Sb,

Bi, Ag, Au, Hg, Tl and Se. The elements that had anomalous values are Cu, Pb, Zn and Ag. All of the other elements were only in low background level concentrations.

The highest copper (Cu) values were 95.7ppm, 84.6 ppm and 55.4 ppm. All of

the other samples contained <50 ppm Cu. The highest zinc (Zn) values were 7,133 ppm, 5,367 ppm, 4,429 ppm, 3,657

ppm and 3,516 ppm. All of the other Zn values ranged between 220 ppm Zn and 2,803 ppm Zn.

20

The highest lead (Pb) values were >10,000 ppm, 7,859.1 ppm, 6,262.5 ppm, 6,055.4 ppm, 5,877.8 ppm and 5,052.5 ppm. All of the other Pb values ranged between 167.6 ppm Pb and 4,975.4 ppm Pb.

The highest fire assay silver (Ag) values were 554 g/t, 428 g/t, 303 g/t, 301 g/t, 183 g/t, 150 g/t, 116 g/t, 104 g/t, 99 g/t, 90 g/t, 63 g/t and 62 g/t.

All of the gold (Au) values were low, the highest being 13.5 ppb Au and 12.0

ppb Au. The highest silver values were in samples collected from the two dumps that

were excavated from the main Arlington adit. As well a sample collected from dump AD4 that was excavated from a caved adit ~ 200 meters above the main Arlington adit, contained 90 g/t Ag.

The highest silver value in samples collected from the Silver Leaf dump was

29.6 ppm Ag (~1 oz/t Ag). The highest silver value in samples collected from the Speculator dumps was

104 g/t Ag. All of the other Ag values ranged between 4.4 ppm Ag and 46.4 ppm Ag.

The 17 elements analyzed by ICP-MS were Ba, Be, Co, Cs, Ga, Hf, Nb, Rb, Sn,

Sr, Ta, Th, U, V, W, Zr, Y, La, Ce, Pr, Nd, Sm, Eu, Gd, Tb, Dy, Ho, Er, Tm, Yb and Lu.

Of these elements only Ba and Sr were in anomalous concentrations. All of

the other elements were only in low background level concentrations. The highest Ba values were 4,701 ppm and 4,548 ppm. All of the other values

ranged between 212 ppm Ba and 1,923 ppm Ba. The highest Sr sample values were 588.6 ppm, 529.6 ppm and 500.8 ppm. All of the other sample values ranged between 195.7 ppm Sr and 447.6 ppm Sr.

The samples that contain the highest silver contents also contain the highest barium, lead and zinc contents, however the highest lead value is only ~10,000 ppm Pb which indicates that most of the silver is not contained in the lead mineral galena. The highest copper value being only 95.7 ppm Cu also indicates that little of the silver is likely contained in tetrahedrite (Cu2Sb2S7). The antimony Sb values are all low with the highest value being 0.5 ppm Sb which suggests that little of the silver occurs in the silver sulphosalt mineral Stephanite. The chemical formula for Stephanite is Ag5SbS4 or 5Ag2S.Sb2S3 = 16.3% sulphur, 15.2% antimony and 68.5% silver. It therefore appears likely that most of the silver may occur as native silver. 21

3.30 2014 Work Spreadsheet

Sample X 11U Y 11U Lat Lon Alt Notes

AD1-01-14 473958 5515231 49.788976

-117.3617818 5120

Stockpile Bulk Sample AD1 #1 Ore dump is approx 242 ft around it, about 11 ft down slope. A road has cut it off from the main dump.

AD1-02-14 473974 5515230 49.788969

-117.3615658 5126 Stockpile Bulk Sample AD1 #2

AD1-03-14 473990 5515261 49.789248


AD1-04-14 473975 5515262 49.789257


AD1-05-14 473955 5515265 49.789283


AD1-06-14 473991 5515283 49.789447 -117.361336 5186 Stockpile Bulk Sample AD1 #6 AD1-07-14 473973 5515289 49.789495


AD1-08-14 473875 5515161 49.789546


AD2-01-14 473957 5515294 49.789546

-117.3617999 5187

Stockpile Bulk Sample AD2 #1 Sample taken from ore pile below the ore cart rails, this ore is from the A level of the mine, the adit is marked 036

AD2-02-14 473864 5515148 49.788222


AD2-03-14 473859 5515144 49.78819

-117.3631594 5068

Stockpile Bulk Sample AD2 #3 Approx 153 ft around pile, NW side 9 ft tall, SE side slopes down 20 feet

AD3-01-14 473892 5515327 49.789841


AD3-02-14 473887 5515322 49.789794


AD3-03-14 473872 5515319 49.789763


AD4-01-14 473985 5515404 49.790532


AD4-02-14 473974 5515399 49.790489


AD5-01-14 473956 5515494 49.791344

-117.3618319

Stockpile Bulk Sample AD5 #2

AD5-02-14 473962 5515515 49.791528

-117.3617487

Stockpile Bulk Sample AD5 #1

SPD1-01-14 474429 5516107 49.796873

-117.3553022 5804 Stockpile Bulk Sample SPD1 #1

SPD1-02-14 474425 5516121 49.796998


SPD1-03-14 474421 5516129 49.797072


SPD2-01-14 474389 5516265 49.798298


SPD2-02-14 474394 5516271 49.798352

-117.3557922

Stockpile Bulk Sample SPD2 #2

SPD3-01-14 474477 5516385 49.799375

-117.3546497 5883

Stockpile Bulk Sample SPD3 #1 Very small dump, Elevation 5929 ft, another dump across the creek from this dump appears to be larger

SSA-01-14 474621 5516608 49.801386 -

117.3526731 6063 Stream sediment sample

SSA-02-14 474612 5516624 49.80153 -


22

SSA-03-14 474593 5516642 49.801691 -


SSA-04-14 474572 5516669 49.801933 -


SSA-05-14 474560 5516693 49.802148 -


SSA-06-14 474543 5516681 49.802039 -


SSA-07-14 474538 5516659 49.801841 -


SSA-08-14 474545 5516646 49.801725 -


SSA-09-14 474555 5516622 49.801509 -


SSA-10-14 474567 5516593 49.801249 -


SSA-11-14 474523 5516538 49.800752 -


SSA-12-14 474521 5516552 49.800878 -117.354059 6055 Stream sediment sample

SSA-13-14 474517 5516562 49.800968 -


SSA-14-14 474511 5516573 49.801067 -


SSA-15-14 474504 5516519 49.800581 -


SSA-16-14 474416 5516404 49.799543 -


SSA-17-14 474416 5516432 49.799794 -


SSA-18-14 474401 5516447 49.799929 -


SSA-19-14 474385 5516450 49.799955 -


SSA-20-14 474386 5516471 49.800144 -


LB-01-14 473311 5514452 49.7819383

-117.3707288 4755

Pegmatite quartz fb with lots of oxidization

LB-02-14 473543 5514407 49.7815438 -

117.3675031 4843 Quartz w lots of iron some layering of the quartz FB

LB-03-14 473570 5514416 49.7816259 -

117.3671287 4815 Pegmatite with very large crystals FB

LB-04-14 473599 5514411 49.7815822 -

117.3667256 4859 Pegmatite with large crystals up to 24 mm FB

LB-05-14 473624 5514416 49.7816283 -

117.3663786 4877 Fine grained granite with large felspar crystals FB

LB-06-14 473658 5514416 49.7816298 -

117.3659064 4862 Granite with large felspar crystals FB

LB-07-14 473688 5514414 49.7816131 -

117.3654895 4837 Pink colored granite with quartz crystals up to 6mm FB

LB-08-14 473712 5514414 49.7816142 -

117.3651562 4863 Pegmatite with large quartz pieces up to 12 m FB

LB-09-14 473737 5514412 49.7815973 -

117.3648088 4895 Hornblend and quartz mixture FB

LB-10-14 473760 5514417 49.7816433 -

117.3644896 4905 Fine grained pegmatite with large felspar pieces FB

23

LB-11-14 473790 5514420 49.7816716 -

117.3640731 4919 Granite pegmatite decomposing felspar and quartz pieces up to 10 mm FB

LB-12-14 473819 5514437 49.7818257 -

117.3636714 4919 Brecciated quartz with rust coloring in the vuggy section FB

LB-13-14 473847 5514454 49.7819798 -

117.3632837 4937 Brecciated quartz with iron pockets in it very fine grained FB

LB-14-14 473872 5514465 49.7820799 -

117.3629371 4922 Very grainy quartz about 4mm FB

LB-15-14 473895 5514490 49.7823057 -

117.3626193 4963 Same as above but with larger quartz pieces up to 12mm FB

LB-16-14 473917 5514510 49.7824866 -

117.3623151 4960 Very fine grained quartz with the dark minerals forming dark lines FB

LB-17-14 473962 5514541 49.7827673 -

117.3616921 4991 Granite diorite with large crystals FB

LB-18-14 473984 5514570 49.7830291 -

117.3613884 4987 Quartz with some mineralization FB

LB-19-14 474014 5514576 49.7830844 -

117.3609721 4967 Granite diorite FB

LB-20-14 474044 5514594 49.7832476 -

117.3605566 5011 Rust quartz small quartz vein with iron pockets FB

LB-21-14 473816 5514475 49.7821674 -

117.3637157 4976 Brown/white quartz with some location mineralization FB

LB-22-14 473816 5514475 49.7821674 -

117.3637157 4976 Same as above but more oxidized FB

LB-23-14 473816 5514475 49.7821674 -


LB-24-14 473816 5514475 49.7821674 -


SPEC 1 Adit 474398 5516196 49.797677

-117.3557413 5847

POI Adit, ore dump approx 445 ft around it, about twenty ft in height

SPEC 2 Adit 474378 5516292 49.798636

-117.3561712 5908

POI Adit, ore dump is approx 168 ft around it, fifteen ft in height

SPEC 3 Adit 474492 5516459 49.800048

-117.3544534 5973

POI Adit, caved in, ore from here went to the small pile at # 030 place mark

SPEC 4 Adit 474522 5516449 49.799854

-117.3541489

POI Adit, the creek has been diverted to go around this adit, the ore looks like it was piled on the SE side of the creek, dump was still covered with snow size unknown

ARL A Adit 473867 5515198 49.788566

-117.3631846 5098 POI A level adit, caved in

ARL B Adit 473930 5515337 49.789932

-117.3621899

POI B level adit of the mine, the ore dump is approx 990 ft around it, it is various levels, max height is about fifty ft. A small creek used to flow past this adit but now it drops POI down into A level and comes out of A level adit

ARL C Adit 473897 5515351 49.790053

-117.3626462 5249

C level adit, ore dump is approx 472 ft around it, highest point about thirty ft, Elevation 5249, entrance is caved in

ARL D Adit 473968 5515439 49.790849

-117.3616609

POI D level adit, ore dump is approx 425 ft around it, thirty ft down slope

The rock material in the samples collected from the stockpile dumps, (AD1-01-14 to AD1-08-14, AD2-01-14 to AD2-03-14, AD3-01-14 to AD3-03-14, AD4-01-14 and AD4-02-14, AD5-01-14 and AD5-02-14, SPD1-01-14 to SPD1-03-14, SPD2-01-14 and SPD2-02-14) all had the same composition. The dump material was almost entirely variably sized pieces Nelson granite up to a foot across and the samples were randomly collected across the dumps from finer sand sized pieces of this rock which were small enough to be assayed.

24

Figure 13. Sample Location Maps 13.1 Google Map Bakus Slocan Properties including the Arlington

13.2 Google Map Showing Tenures 944429 1029267 1029268

25

13.3 Base Map IMAP B.C. Tenures 944429 1029267 1029268

13.4 Google Map Arlington Stockpile Dump Sample Locations

26

13.5 Google Map Speculator Dump and Stream Silt Sample Locations

13.6 Hand Drawn Map Arlington Stockpile Dump Sample Locations

27

13.7 Hand Drawn Map Speculator Stockpile Dump Sample Locations

13.8 Google Map Lily B Rock Float Sample Locations

28

13.9 Arlington and Speculator Dump Sample Silver Assay Map

29

4.00 CONCLUSIONS The silver contents in the eight samples collected from the main Arlington stockpile dump (AD1-01-14 to AD1-08-14) were 428 g/t Ag, 303 g/t Ag, 183 g/t Ag, 150 g/t Ag, 116 g/t Ag, 99 g/t Ag, 63 g/t Ag and 44.7 g/t respectively. The average silver content in these eight samples is 173.3 g/tonne Ag (5.57 oz/tonne Ag). The silver contents in the three samples collected from the Arlington stockpile dump located ~70 meters southwest of the main Arlington adit (AD3-01-14, AD3-02-14 & AD3-03-14) were 554 g/t Ag, 301 g/t Ag and 62 g/t Ag respectively. The average silver content in these three samples is 305.7 g/tonne Ag (9.83 oz/tonne Ag). In 1981 Sveinson Way Mineral Services measured the volume of the Arlington stockpile dumps with a theodolite and stadia survey and used a volume factor of 17 cubic feet per ton. The main Arlington stockpile dump was estimated at 35,900 tons +/- 500 tons (31,875 tonnes +/- 446.5 tonnes) and the second stockpile dump ~70 meters southwest of the main Arlington adit was estimated at 6,425 tons +/- 650 tons (5,737.5 tonnes +/- 580.5 tonnes). The samples collected from rock in the main Arlington stockpile dump averaged 5.57 oz/tonne silver which indicates the dump may contain (31,875 tonnes X 5.57 oz/tonne silver = 177,544 oz of silver) +/- (446.5 tonnes X 5.57 oz/tonne silver = 2,487 oz silver). At the current price of ~ $US20/oz silver, the gross value of the silver in the main Arlington dump may be 177,544 oz silver X $US20/oz silver = $US3,550,875 +/- 2,487 oz silver X $US20/oz silver = $US49,740, ($US3,550,875 +/- $US49,740). The samples collected from the second Arlington dump averaged 9.83 oz/tonne silver which indicates this dump may contain (5,737.5 tonnes X 9.83 oz/tonne silver = 56,400 oz silver) +/- (580.5 tonnes X 9.83 oz/tonne silver = 5,706 oz silver). At the current price of ~ $US20/oz silver, the gross value of the silver in the second dump may be 56,400 oz silver X $US20/oz silver = $US1,128,000 +/- 5,706 oz silver X $US20/oz silver = $US114,126, ($US 1,128,000 +/- $US 114,126). The total gross value of the silver contained in the two Arlington stockpile dumps may be $US3,550,875 +/- $US49,740 + $US1,128,000 +/- $US114,126 = $US4,678,875 +/- $US163,866. 30

This information indicates there is a significant silver resource contained in the Arlington stockpile dumps, however the economic potential of this resource will depend whether the costs of processing the rock and extracting the silver can be low enough for the operation to be profitable. 5.00 RECOMMENDATIONS

The present author observed that there was very little quartz or calcite veined material in the dumps and most of the rock was porphyritic granite that varied from being relatively fresh to intensely chloritically altered material. The dark greenish colored chlorite alteration appeared to be controlled/introduced along numerous, thin, pervasive microfractures from which it spread out into and altered the intervening rock. It appears that most of the material in the Arlington dumps may not be rejected vein material but wall rock that was excavated adjacent to the veins to provide sufficient mine width openings. If most of the Arlington dump material actually is wall rock and given that it has an average silver contents of 5.57 oz/tonne and 9.83 oz/tonne, then future work should be directed towards exploring for a bulk tonnage silver deposit at Arlington. The dump samples collected in this present program were relatively small samples taken from a large tonnage of dump material and the silver assay results are only indications of the possible silver contents in the dumps. In order to more confidently evaluate the overall silver contents in the dumps, larger samples need to be taken and analyzed. The simplest way to accomplish this would be to file a government application to extract up to a 10,000 tonne bulk sample from the dumps for analysis. The dumps do not show any signs of reddish colored leaching and there are no reddish colored drainages coming out of the dumps and the iron contents in the samples collected during this program were all relatively low. The present author did not observe any quantity of samples containing pyrite in the dumps. As well, the analytical results of the samples collected during the present program showed that maximum values of the deleterious elements were very low, for example arsenic (As) 2.6 ppm, cadmium (Cd) 42.5 ppm, selenium (Se) <0.5 ppm, thallium (Tl) 0.4 ppm and mercury (Hg) 0.68 ppm. 31

All indications are that the dump material is non acidic rock however it is expected that the government will require acidity testing of the dump material if a bulk sample permit application is made. This requirement would be accomplished by submitting the present samples to ???? lab for acidity etc. testing.

6.00 REFERENCES BC Geological Survey Minfile Report for the Arlington Property #082FNW152 BC Geological Survey Minfile Report for the Speculator Property #082FNW151 Cairnes, C. E. 1935: Description of Properties, Slocan Mining Camp B.C., GSC Memoir 184. Chapman, John 1991: Arlington Silver Project, Slocan Mining Division, B.C. BCMEMPR Assessment Report #20,384. Dujardin, R.A. 1970: Progress Report: The Search for a Disseminated Silver Deposit – Slocan Area BC Geological Survey Minfile Report #082FNW152-07 page 5. Freeze, Joanne, 1987: Geochemical Report on the Arlington Property, Slocan Mining Division, B.C., BCMEMPR Assessment Report #16,218. Henneberry, Tim, 1986: Soil Geochemistry of the Arlington Shear Hanging Wall, Slocan Mining Division, B.C., BCMEMPR Assessment Report #15,053. Way, Barry, 1982: Arlington Project, Slocan Mining Division, B.C., BCMEMPR Assessment Report #10,172. 32

7.00 STATEMENT OF QUALIFICATIONS

33

8.00 TECHNICAL WORK REPORT FORM STATEMENT OF COSTS

34

35

36

37

APPENDIX 1. Stockpile Dump Sample Analytical Results 23 Samples were tested by Acme Laboratory in Vancouver, B.C. by ICP-MS and ICP/MS Aqua Regia with 12 samples being additionally fire assayed for AG Preparation: PRP70-250 Rock crushed to 70% passing 10 mesh (2mm), homogenized, riffle split (250g, subsample) and pulverized to 85% passing 200 mesh (75 microns). Crusher and pulverizer are cleaned by brush and compressed air between routine samples. Granite/Quartz wash scours equipment after high-grade samples, between changes in rock colour and at end of each file. Granite/Quartz is crushed and pulverized as first sample in sequence and carried through to analysis. Analysis: LF100-EXT: Fusion ICP-MS Standard suite Trace Elements ICP-MS (45 elements) LF100 + AQ200 add on. LF 100 ELEMENT DETECTION LIMIT UPPER LIMIT Be 1 ppm 10,000 ppm Ce 0.1 ppm 50,000 ppm Co 0.2 ppm 10,000 ppm Cs 0.1 ppm 10,000 ppm Dy 0.05 ppm 10,000 ppm Er 0.03 ppm 10,000 ppm Eu 0.02 ppm 10,000 ppm Ga 0.5 ppm 10,000 ppm Gd 0.05 ppm 10,000 ppm Hf 0.1 ppm 10,000 ppm Ho 0.02 ppm 10,000 ppm La 0.1 ppm 50,000 ppm Lu 0.01 ppm 10,000 ppm Nb 0.1 ppm 50,000 ppm Nd 0.3 ppm 10,000 ppm Ni 20 ppm 10,000 ppm Pr 0.02 ppm 10,000 ppm Rb 0.1 ppm 10,000 ppm Sc 1 ppm 10,000 ppm Sm 0.05 ppm 10,000 ppm Sn 1 ppm 10,000 ppm Sr 0.5 ppm 50,000 ppm Ta 0.1 ppm 50,000 ppm Tb 0.01 ppm 10,000 ppm Th 0.2 ppm 10,000 ppm Tm 0.01 ppm 10,000 ppm U 0.1 ppm 10,000 ppm V 8 ppm 10,000 ppm W 0.5 ppm 10,000 ppm Y 0.1 ppm 50,000 ppm Yb 0.05 ppm 10,000 ppm Zr 0.1 ppm 50,000 ppm

38

AQ200: Aqua Regia ICP/MS (Add on Elements from LF100-EXT) Samples are leached in hot modified aqua regia then analyzed by ICP-MS. AQ200 ELEMENT DETECTION LIMIT UPPER LIMIT Ag 0.1 ppm 100 ppm As 0.5 ppm 10,000 ppm Au 0.5 ppb 100,000 ppb Bi 0.1 ppm 2,000 ppm Cd 0.1 ppm 2,000 ppm Cu 0.1 ppm 10,000 ppm Hg 0.01 ppm 50 ppm Mo 0.1 ppm 2,000 ppm Ni 0.1 ppm 10,000 ppm Pb 0.1 ppm 10,000 ppm Sb 0.1 ppm 2,000 ppm Se 0.5 ppm 100 ppm Tl 0.1 ppm 1,000 ppm Zn 1 ppm 10,000 ppm

FA530-AG Gravimetric Fire Assay ICP/MS Lead collection fire assay fusion - gravimetric finish digestion of the Ag dore bead and this analysis by ICP-MS. 39

40

41

42

43

APPENDIX 2. Arlington 2014 Work Site Photographs

Arlington Main Trench Arlington Main Adit

Speculator Adit View from Arlington looking West

ARH-01-14 AD-01-14 44

APPENDIX 3. Arlington Speculator Silver Leaf Lily B Minfile/Inventory Reports Arlington Slocan Minfile Reports Arlington Minfile Detail

45

Arlington Capsule Geology The Arlington property comprises the Arlington, Burlington No. 2 and Stephanite Crown granted claims and fractions situated on the north slope of the valley, near the confluence of Speculator and Springer creeks, 8 kilometres east-northeast of Slocan. Access to the property from the Slocan highway is via the Springer Creek road. The mine was developed by eight adits over a vertical range of about 200 metres. In the early years, the bulk of the ore was taken from the fifth to seventh levels and from the original discovery at surface near the shaft. In the latter years, underground work was confined to the lowest two levels. Production between 1897 and 1979 totalled 20,592 tonnes, yielding 31,429,872 grams of silver, 861,487 kilograms of lead, 118,863 kilograms of zinc, 743 grams of gold, 834 kilograms of copper and 46 kilograms of cadmium. In 1962, 576 tonnes was used as a silica flux. The Arlington lode is a mineralized crushed zone, about 20 metres wide, in coarse-grained hornblende granite or granodiorite of the Nelson batholith; the zone contains basic monzonite inclusions. The zone includes a number of parallel fissures and maintains a uniform strike of 040 degrees, dipping 60 to 70 degrees southeast. The sear zone is chloritic to talcose altered. The ore is largely replacement of the country rock, occurring as scattered breccia lenses on continuous fractures. The chief ore minerals are galena and sphalerite, with associated disseminated pyrite, chalcopyrite, stephanite, tetrahedrite and native silver. A sample of the dump taken in 1987 assayed 1280 grams per tonne silver, 0.03 grams per tonne gold, 0.0215 per cent copper, 5.7 per cent lead and 11.47 per cent zinc (Open File 1988-11). The Arlington mine was worked extensively from 1899 through 1903, then intermittently until 1979. In 1969 and 1970, Arlington Silver Mines Ltd. stoped and shipped ore, which was mainly salvages from the old workings; they also explored, by diamond drilling, what appears to be the northern extension of the vein system. The property was staked in about 1894 and comprises the Stephanite fraction, Burlington No. 2, Arlington No. 1 fraction, and Arlington No. 2 Crown-granted claims. The first shipment of ore was made in 1897. The property was worked extensively from 1899 to 1903, production reaching a maximum in 1901. During this period the property was developed by three tunnels over a vertical range of 46 metres. Most of the stoping was done in the upper 15 metres. In 1919 the property was owned by the Rithet Estate and leasers began shipping ore from the dump. During 1928 the Bayview Mining Co. held an option on the property and began driving a 4th level, the direction of the tunnel being determined by a Radiore survey. In 1937 the Slocan-Arlington Mines Development Co. of Penticton made a shipment of ore from the dump. Leasers shipped from the dump in 1939 and 1948. In 1951 the Ottawa Silver Mining & Milling Co. made a small shipment from the dump. 46

Amaque Gold Mines Ltd. obtained an option on the property in 1961 from B.I. Nesbitt of Vancouver. The old "A" level was rehabilitated by stripping the first 24 metres, which was caved, and retimbering 73 metres of drift. The level was reopened for a length of 213 metres. The portal of "D" level was opened up and some surface stripping was done. On "A" level eight diamond drill holes were completed, with a total length of 182.8 metres. The holes were drilled along the drift at intervals to explore the shear from footwall to hanging wall. In 1962 B.I. Nesbitt made a shipment of ore from the dump. Arlington Silver Mines purchased 16 claims including the Arlington mine in 1964. The road and two adits were reopened. In 1969, Arlington became Western Arlington Resources Ltd. and in 1986 changed its name to Lightning Creek Mines Ltd. In 1981, Svienson Way Mineral Services Ltd. purchased 50 per cent interest in the property. From previous work there were blocked out 43,114 tonnes of proven surface dump ore at 487.8 grams per tonne silver, 0.49 per cent lead and 0.39 per cent zinc; 17,470 tonnes of indicated underground at 699.4 grams per tonne silver, 1.04 per cent lead and 0.85 per cent zinc (Vancouver Stock Exchange Statement of Material Facts (#108/90, 1990). In 1988, Lightning Creek Mines Ltd. listed proven, probable and indicated resources at 62,252 tonnes averaging 396 grams per tonne silver and 0.54 per cent zinc (CMH 1988-89, page 290). During 1989 and 1990, Cazador Explorations limited purchased the property. Cazador amalgamated in 1993 to become Granduc Mining Corporation, which amalgamated in 1996 with Black Hawk Mining Inc. Bibliography EMPR AR 1896-72; 1897-535; 1898-1076; 1899-689; 1900-829,988; 1901- 1024,1026; 1902-150; 1903-138; 1904-165,168,203; 1905-162; 1906- 146,248; 1907-101,214; 1908-100,247; 1911-154; 1918-171; 1919-155; 1921-139,170; 1925-99; 1927-87; 1928-97,297; 1929-95, 318; 1930-442; 1933-53; 1937-A38,E56; 1938-A37; 1939-39,96; 1948-148; 1951-178; 1961- 79; 1962-A49; 1963-A50,79; 1964-A55,129; 1965-196; 1966-219; 1967-250; 1968-A54,249; 1969-A55, 1970-A55; 1971-A55; 1975-A95; 1976-104; 1978- 128; 1979-130 EMPR ASS RPT *10172, 15053, 16218, 20384 EMPR BC METAL MM01115: EMPR FIELDWORK 1987, pp. 31-48: EMPR GEM 1969-324; 1970-448; 1971-410: EMPR INDEX 3-188; 4-119, EMPR MINING 1975-1980, Vol. 1, pp. 33, 56, 60, 67, 71: EMPR OF 1988-11; 1998-10; EMPR P 1989-5 EMPR PF (Starr, C.C. (1930): Notes on Mines on Springer and Ten- Mile Creeks; Cross Section, 1"=100'; Dujardin, R.A. (1970): Progress Report) EMR MP CORPFILE (Arlington Mining Co.; Lightning Creek Mines Ltd.; Cazador Explorations Ltd.) GSC MAP 272A; 1091A: GSC MEM 184, p. 168; 308, p. 149, CMH 1988-89, p. 289-290 GCNL Dec.29, 1986, V STOCKWATCH Apr.13, 1987, N MINER May 21, 1964; Apr.27, 1992 47

Arlington Production Report Metric Imperial Mined 20,592 tonnes 22,698 tons Recovery Silver 31,429,872 grams 1,010,494 ounces Gold 743 grams 24 ounces Lead 861,487 kilograms 1,899,254 pounds Silica 575,881 kilograms 1,269,600 pounds Zinc 118,863 kilograms 262,048 pounds Copper 834 kilograms 1,839 pounds Cadmium 46 kilograms 101 pounds 48

Arlington Inventory Report

49

Silver Leaf Minfile Detail

50

Silver Leaf Capsule Geology The Silver Leaf claim adjoins the Arlington mine (082FNW152) on Speculator Creek, 8 kilometres east northeast of Slocan. Access is from the Slocan highway via the Springer Creek road, to just east of the confluence of Springer and Speculator creeks. The property is underlain by what is considered to be the extension of the Arlington shear. The principal workings are a 76- metre prospect crosscut adit to the shear on the Silver Leaf No. 2 and Argentite claims. The mineralization consists of small stringers that could not be extracted for a profit. Small ore shipments for the period 1947 to 1951 were from a reserve that is reported to have been mined from the Arlington workings and dumped on the Silver Leaf No. 2 claim. Recovery from 40 tonnes of ore totalled 23,949 grams of silver, 2631 kilograms of lead and 2843 kilograms of zinc. Bibliography EMPR AR *1947-A38,173; 1948-A39,148; 1951-43,178 EMPR BC METAL MM01398 EMPR INDEX 3-213 EMPR P 1989-5 51

Silver Leaf Production Report

52

Speculator Minfile Detail

53

Speculator Capsule Geology The Speculator property, consisting of the Speculator (Lot 2360), Mineral Mountain (Lot 2362), Eda Fr. (Lot 2363) and Nancy (Lot 5259) Crown granted claims and fractions, is located 8.5 kilometres east northeast of Slocan. Access from the Slocan highway is via the Springer and Speculator creek roads. The workings consist of three adits that explore the northeast extension of the Arlington mine zone (082FNW152), which on the Speculator is crushed hornblende granite or granodiorite about 50 metres wide, within which mineralization occurs chiefly in a series of parallel fissures striking 034 degrees and dipping 65 to 70 southeast. The ore is largely replacement of the crushed Nelson granite. The chief ore minerals are galena and lesser sphalerite, associated with disseminated stephanite, grey copper and native silver. The recorded shipments of ore in 1901, 1941 and 1951, totalled 26 tonnes that yielded 25,661 grams of silver, 5947 kilograms of lead and 413 kilograms of zinc. A sample taken in 1987 assayed 119 grams per tonne silver, 1.55 per cent lead and 0.46 per cent zinc (Open File 1988-11). Another sample returned 4.3 grams per tonne gold, 2300 grams per tonne silver, 0.03 per cent copper, 0.135 per cent lead and 0.08 per cent zinc (Open File 1988-11). Bibliography EMPR AR 1900-824,988; 1901-1027,1227; 1902-150; 1903-138; 1904- 165,168,203; 1906-252; 1940-81; 1947-27,75; 1951-43,71 EMPR ASS RPT 10172, 15053, 16218, 20384 EMPR BC METAL MM01415 EMPR EXPL 1987-C62 EMPR FIELDWORK 1987, pp. 31-48 EMPR INDEX 3-214 EMPR OF 1988-11 EMPR P 1989-5 GSC MAP 272A, 1091A GSC MEM 184, p. 185; 308, pp. 119, 132 54

Speculator Production Report

55

Speculator Inventory Report

56

Lily B Minfile Detail

57

Lily B Capsule Geology The Lily B claim is located at about 1600 metres elevation on the south slope of the valley of Springer Creek, 7.5 kilometres east-northeast of Slocan. Access is via the Springer Creek and Bettina Creek roads from the Slocan highway. The workings, consisting of a shaft and adit, explore a fault fissure lode cutting coarse grained Nelson granite, on a strike that varies from 075 to 105 degrees, dipping 55 degrees south. The mineralized zone consists of crushed country rock and gouge, up to 1.5 metres wide, containing small lenses of ore, up to 1 metre wide. The ore consists of galena and sphalerite accompanied by a small amount of pyrite and chalcopyrite in a quartz gangue. Some native silver occurs along the fissure planes in the ore. Shipments of ore from this mine were intermittent beginning in 1913. Altogether up to and including 1922, this mine has produced 41 tonnes of ore yielding an average of 2748 grams per tonne silver and 5.6 per cent lead. Bibliography EMPR AR 1898-1076; 1900-830; 1911-154; 1912-150; 1917-168,448; 1918- 171; 1921-170; 1922-204 EMPR BC METAL MM01271 EMPR INDEX 3-203 EMPR P 1989-5 GSC MAP 272A, 1091A GSC MEM 184, p. 178; 308, p. 149 58

Lily B Production Report

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5510821 5511390 TITLE PAGE SUMMARY REPORT

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2014 Slocan City Arlington Stockpile British Columbia Geochemical Report

Engineering

claim map

google map speculator

arlington property location

road access map

location index map

082fnw152 arlington

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