Omincra Region, British Cohrmbia So N., hngitwdt W. WS map ...

c

REPORT

on the

Omincra Region, British Cohrmbia Latitndt So 21' N., hngitwdt 1 2 4 O 37' W.

W S map sheet 93ERE

January 11,2006 Deita, British Columbia

i

TABLE OF CONTENTS

SUMMARY INTRODUCTION LOCATION AND ACCESS TOPOGRAPHICAL AND PHYSICAL ENVIRONMENT PROPERTY AND OWNERSHIP HISTORY REGIONAL GEOLOGY LOCAL GEOLOGY PRESENT WORK PROGRAM CONCLUSIONS RECOMMENDATIONS COST ESTIMATE STATEMENT OF COSTS CERTIFICATE REFERENCES

APPENDICES

1. SAMPLE DESCRWTJONS 2. SAMPLE ANALYSES

FIGURES

1. LOCATION MAP 2. CLAIM MAP 3. REGIONAL GEOLOGY 4. GEOCHEMISTRY-Cu, Zn 8nd GEOLOGY 5. GEOPHYSICAL SURVEY

3 4 4 4 5 5 6 6 7 8 8 8

11 12 13

After

14 15

- &

After

3 4 5

in packet in packet

2

During July - September- 2005 a fieldwork program was conducted over parts of the (Thu mo€ybdenum (copper, tuqpten) propertr situated in the Omineca rqgion in central Wsh Columbia, Canada The program included rock exposure mappmg grid-canlrdlad rock and soil, magnetometer and self potential (SP) surveys. The fieldwork was COndllEted over two parts of the property that are lacking in current field data froro areas that lie either on the periphery or m CoVecBd areas lhat have not been as yet tied-m to the known zone of the quartz stockwork system. The large zone of molybdenum mineralization is mainly contained within the hornfellsed, fm grain sized meta-siltstone units. These mi& are obsenred to be highly fktured and welded with quartz stringem that are part of a large, well developed quartz stockwork which hosts the mo&bdenum mineralization. This stockwork trends NWSE and dips to the NE. The bounding mck unib on the SW and NE are found to be a medium grain sized graoodiorite and a fine to medium grain sized andesitic tue mpxtively. The current approximate size of the zone of molybdenum miwralization, while not mwhing the resource standard of M 43-101, displays dimensions which are 840 m. X 120-240 m. X 2oOm, strike length X apparetlr width X apparwt d e p ~ respectively. It should be noted that this mimdzed zone is open or untested (not closed-off) in all of these directions.

The results obtained to date 6om all of the fidchvork COfidlLcted are very encouraging and the uniter recommends that finther exploration work be carried-out on the proper@. The reconrmended two phase work programs are mainly as diamond core drilling &related analytical studies at an estimated cost of Phase 1: $290,750 and Phase 2: $693,000 for a total preliminary follow-up cost &ate of $983,750 which is expected to take four to five months to complete.

3

a OMEGA D(PLORATION SERVICES IN C.

CHU MOLYBDENUM PROJECT

LOCATION MAP N.T.S. 93 F - 7 E I OMINECA M.D.,B.C.

0 150 300 450 KM.

SCALE : 1:7,500,000 DATE. J U N E 2005 DRAWN BY : J. M. FIGURE N O 1

INTRODIJCTION

The current fieldwork program was cooducted by the author and comprises two areas that underwent grid installation, soil, silt and rock sampling, rock exposure mapping, magnetomekr and self potential (SP) surveys.

The work program was m-ed at the reguest of and on behalf of Omega Exploration Services Inc. of Della, British Columbia, Canada

LOCATION AND ACCESS

The Chu property area may be localed on NTS map sheet, 93E/7E at latitude 53" 21' north and longjtude 124" 37' west The p- is situated approximately 65 air-kilometres south of the Town of Vanderhoot B.C., at the southeast end of the Nechako Range, 7.5 km. wpest of Chutanli Lake. The property lies within the Omineca region, Kluskus-Ootsa area British Columbia, Canada.

Access to the property is gained by meling approximately 26.5 km southwest of the Town of Vanderhooc B.C. on the Kenney Dam road and then southerly for about 100 km. on the Blue road, which can be described as a wide, good all weather, gravel active logging road Just north of the cutoff to Chutanli Lake, the Kluskus-Ootsa road branches off the Blue road toward the west, it is taken 7 km. to tbe junction with the main Chu property road. Several property roads traverse much of the claims. One traverses north to the site of the Asarco ( h c o joint venture) exploration camp and the main mineralized zone as it is presently outlined.

TOPOGRAPHICAL AND PHYSICAL ENVLRONMENT

The property lies within the Intermontane (physiographic) belt between the Coastal mountains on the west and the Rocky mountains on the east- More particularly the Chu property is found to occur in the transition zone on the south end of the Nechako mge b e e n the northwesterly trending Nechako and Fraser plateaux The claim area g e n d y is fluvial-glacial covered, rounded mountainous terrain exhibiting a low percentage of rock exposures, less than 5%. The claim area ranges in elevation from 1,160 metres (3,800') to 1,430 metres (4,700") mean sea level. The area is conifer c o v d with lodgepole pine and spce. Mu& of the claim and g& area has

4

L E G E N D

SCALE : I - - 100,000 DRAWN B Y : J. M.

---- '...a

DATE: JUNE 2005 FIGURE NO. 2

Logging road

C r e e k , lake

3M EGA D(PLORATI0N SERVICES IN C

CHU MOLYBDENUM PROJECT

CLAIM MAP OMINECA M.D.,B.C. N.T. S. 93 F - 7E:

undergone clearcut logging of the coniferous f m t cover to try and salvage some goodness h m widespread and m a s k insect infestation. The general area lies within the sub-alpine biotic zone and experiences greater than 100 cm. of precipitation annually, of which 15%-25% may occur as a snow equivalent i.e. about 20 an. The summers are generally mild with moderate precipitation and the winters can be very cold, but usually not for extended periods.

PROPERTY AND OWhXRSALP

Tenure No. HectrrCS Anoiversarv Date

chuachua 507782 694 October 15,2006 Chu 390574 500 October 15,2006 chu 1 390575 400 October 15,2006 chu 2 390576 400 October 15,2006 Chu 3 507793 ]93 February 24,2007

Total 2,187

The claim area totals approximately 2, I87 hectares or 5,407 acres. The above listed lode mineral claims are owned by Omega Exploration Services Inc. and G. R. Delome as to 50% each.

HISTORY

The recorded minii exploration history of the property area dates from 1969 when a helicopter supported pmpcting and regional reumnaissance geochemical silt survey indicated the anomalous copper, molybdenum and tungsten values in the immediate area. Apparently> coincident rec~nnaissan~e silt surveys were conducted by Rio Tinto Canadian ExploratiOns Ltd. and Asarco (American Smelting and Refining Company) dunng 1969-70 Zed to a concurrent discovery of what is now known as the Chu molybdenum property.

During this early period, both companies undertook some shallow diamond core drilling. Note: the author, during a fieldwork progrim he was conducting in 2003 located the remains of some of the drill axe, B 1-6 h r n Rio Tinto’s 1 %9-70 diamond drilling program.

5

,r-

3M EGA URWATlON SERVIClES I N C .

CMU MOLYBDENUM PROJECT REGIONAL G W Y

I ' ra" hi:;

The construction of the IUuskus-oOtsa logging road in the mid-1970”s saw Asarco consolidate the two project areas and cany-out a number of geological, geochemical, geophysical surveys and some shallow diamond core drilling. They wetie joined by Armco Mineral Exploration Ltd. in a joint venture in 1979 which Armco managed. They conducted core drilling

rather extensive fieldwork has partially ourlined a large northwest-southeast trending zone of strong molybdenum-bearing mineralization in a quartz stockwok

program^ in 1980: DDH 1-3, 1981: DDH 1-7 and 1982: DDH 1-2. This

From 1982 the property did not undergo further fieldwork until 2001 and 2002 when portions of the present pr- underwent magnetometer ground work. In 2003 some prospechg and rock exposure sampling as well as some SP work in the area east of the L,o+oo (Ns), at which time some very old A-standard core of Rio Tinto Canadian Explorations, BIB6 was discoverd During 2004 a shallow XRT core hole was drilled with a hand- held JKS Packsack drill.

REGIONAL GEOLOGY

The oldest rocks in the general area are volcanics and sediments which have been assigned to the Hazelton Group of Jurassic age. These rocks in places have been intruded by late Jurassic and early Cretaceous aged Coast Range intrusive rocks of granitic to dioritic COLIIPOGitioTI, which are ref& to in the property area as the Nechako intrusions. More than one period of intrusive activity has affected the area and some intrusive rocks observed in the general area may be younger than the Nechako intrusions. The youngest rocks observed in the area are the andesite to basalt flow volcanics which are thought to be of Oligocene age. The host rocks of the mineral m e which is the focus of OUT attention, the homfelsed quartz stockwork is considered to be contained in Hazelton Group unils ahhough some of the quartz stockwork host rock units have the appearance of fine gained intrusive rocks of possibly granitic cornpasition.

LOCAL GEOLOGY

The different rock units observed within the mineral claims are found to OCCUT as northwesterly striking and mrkask& dipping sediments and volcanics. The oldest undertying bedded rocks are found to occur on the

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westside of the properly as homfelsed siltstm, mudstone and quarlzite and (conformably?) overlain on the n d d y side by dipping clastic andesitic tuffs. The bedded mela-sediments and volcanics are contacted and/or intruded by granitic rocks thought to be Coast m e intrusions of Jurassic age or younger. The mineral host units appear to occuc as a large package of older rocks which resembles a roof pendant lying on the younger intruding granodiorik.

The molybdenum minedimtion is related to a quartz vein stockwd that is best developed in the homfelsed (sidtstones) that have undergone varying degrees of biotitization following structural preparation (brittle fmcture) and subsequent quartz-welding and minedization Pyrite and pynhotite are found widespread throughout the moiybdenite (MoS2) mineralized zones and the core in general. The iron minerals on contacts of the homfels unit appear to have undergone modwately smng oxidation in the sub-surface weathered zone hence the SP response. Local concentrations of minor chalcopyrite and possibly scheelite may offer the copper and tungsten values observed, respectively. The o v d trend of the molybdenum mineralized zone appears to dip at varying degrees toward the northeast The contact on the northeast side of the homfels host appears to be along the northwest trend with Hazelton Group andesite volcanic units. The contact of the same zone of mineralization on the southwesl side of the homfels is with Coast range intrusive units, ie. granodiorite.

PRESENT WORK PROGRAM

The current fieldwork program was undertaken during the period July 8 - September 6, 2005. Two separate areas we^ chosen to undergo field surveying that might reveal the nature of the underlying rock units andor the alteration effkcts to which they had been subjected. The areas named CHUNEGD and SECHU (see Figures M) underwent prospectin& grid installation, rock exposme mapping and sampw soil sampling and SP and magnetometer surveying. These methods were chosen because of the known occurrence of rock alteration and sulphi& oxidation in area, CHUNEGD and the close proximity to the intrusive and the meta-sedhent (homfek) contact area, SECHU.

The gridded areas were measured and marked by blazing and fl-g The rock and soil samples were logged and bagged (type and location nod) and

taken to Global Discovery Laboratories in Vanmuver~ BC. The samples underwent multi-element induction coupled plasma (ICP) analyses and atomic absorption (AA) detection for gold (Appendix 2). The magnetometer used was a Sharpe, MF- 1, serial no. 609235 and the self potential (SP) survey was conducted with a HEW 200, serial no. 1, induced polarization unit. The magnetometer data a plotted in nanoteslas (nT) and the self potential in millivolts (mv) (see Figure 5).

CONCL IJSIONS

The areal extent of the property and more particularly the indicated zone of molybdenum mineralization is large and appears to dip into the southwest facing slope of the hill. The zone has excellent patential to be expanded from its present indicated size toward the northwesf soukast, downdip toward the northeast and possibly in as apparent wridfh toward the southwest. The SP survey data suggests an irregular west-east trending contact, possibly between the homfels unit on the south and the andesite Unit on the north that may be reflected in the in- oxidation of pyrite-pyrrhotite along the contac4 between the two Hazelton units.

RECOMMENDATIONS

Both areas returned some enmuragement from the current work. The author recommends that reconnaissance induced polarization surveying be undertaken to assist in pin-pointing driIl targets within the two survey areas.

COST ESTIMATE

The author has developed the following two phase work cost estimate to correlate with and to serve as a guide in the possibly design ofa cost effective approach to further explore this large, encouraging mineral prospect:

Phase 1

Diamond core drilling 1,525 metres, all inclusive i.e. mobdemob, core boxes, bulldozer% etc. @ $90/metre $ 137,250

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Geology, supervision, core loggin& sample preparation, transport to the assayers

Ground preparation regarding road and grid Rehabilitation

Assistants

Trmportation

Camp and board

Assaying and analyses

Reclamation bond and insutmce

Reports, maps and

Contingency

sub-total

Phase 2

Diamond core d r i l l i 4,500 metres, all inclusive @ $90/metn:

Geology and supervision

Assistant

Transportation

Camp and Board

10,000

20,000

10,000

7,500

5 1.500

15,000

15,000

6,500

18.000

$290,750

$405,000

24,000

12,000

15,000

125,000

9

Assaying and Analyses

Reports, maps and filings

Contingency

35,000

30,000

47.000

sub-total $693,000

Total $983,750

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STATEMENT OF COSTS

Grid line instal la ti^ I. W. McLeod $ 4,300

Assistants, J.A. McLeod and S.C McLeod 1,400

AnalySeS 900

Campandboard 600

Transportation 300

1,100 Equipment rental: trailer, 4 Trac, magnetometpa and IP unit

Report, maps and filing 1.400

Total $10,000

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CERTIFICATE

I, JAMES WAYNE McLEOD, of the Municipality of Delta, Province of British Columbia, hereby cemfjr as follows:

I am a Consulting Geologist with an office at 5382 Aspen Way> Dela B.C., V4K 3s3.

I am a Professional Geoscientist registered in the Province of British Columbia and a Fellow of tbe Geological Association of Canada.

I graduated with a degree of Bachelor of Science, Major Geology from the University of British Columbia m I %9.

I have practiced my pmfssion since 1969.

I have no direct interest m the Chu molybdenum property although my wife is Secretery of Omega Exploration Services Inc. a 50% owner of the property.

The above report is based on personal field experience gained by the author during the period 2001 45 .1 have researched private and public reports written about the Chu property and discussed the property in detail with knowledgeable parties.

DATED at Delta, Province of British Columbia this 1 lth day of January, 2006

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REFERENCES

British Columbia Ministry of Energy, Mines and Petroleum Resources Assessment R e p d s - 8476 and 969 1.

McLeod, J.W., January 7,2002-04. Magmomtw Sunrey Reports on the Chua Chua Claim for Chris Deiom and a drilling assessment report on the Chu propem in 2005.

Ostensoe, E.A., 1980-82. Private Chu Project. Progress Reports to Armco Mineral ExplOration Ltd.

Ostensoe, E.A., February 15,2002. Private Chu Property Repott fix Javeim Capital Corp.

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Appendix 3

Sampk Dcseriptions

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Commnv: Omega Services Proiecc Chu Molybdenum Project Location: 93FRE, Omineca Region, B.C.

ROCK LOG

Arecr: Kiuskus-Ootsa @& December 12,2005

Sample Number

Description

W35N LO W30N

I fine grained volcano-sediment? %leached rack contain8 muawvite mica end poasible pyrite. Lab No. 80541896. I Fine grained white coloured, dioritic intrusive. No minernlization or alteration.

Appcadix 2

SECHU soil mad silt sampk LCP SECHU soil and silt AA gold CHUNEGD soil sampk ICP

CHuEylEGD soil sampk A4 gold CHZNEGD rock srmpk ICP

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OMEGA SERVICESS(O8 SECHU PROJ,

SO520040 so5208M) 80620851 80620852 80520852 rpt 80520853 80520854 80520856 b05208MI sQ520857 bob20858 80510858 80520860 W20061 80620862 80520862 rpt 80520863 80620W 80620668 8OcI2086a so520867 80520088 80520669

'0: DA

FOX 0 FOX 1 FOX 2 FOX 3

FOX 4 88 4430 FOX 6 FOX 6 FOX 7 FOX 0 FOX 9 FOX 10 FOX 11 FOX 12

FOX 13 FOX 14 FOX 16 88 16+20 FOX 16 FOX 17 FOX 10

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132

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34 a 4

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220

87 94 3s

190 187 61 36 so 35 35 29 34 36 48 29 28 42 48 82 31 27 34 26

694

e.4 c.4 q.4 c,4 e.4 e.4 e.4 e.4 e.4 c.4 *,4 e.4 e,4 e.4 C.4 e.4 e.4 **4 e.4 **4 e.4 e.4 e.4 6.4

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26 29 42 42 42 3

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:2 c2 c2 <2 42 4 c2 42 e 4 42 e uo

100 194 102 193 191 98

143 131 113 85 n 80 86 90 75 70 88 88 58

110 49 74 84

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1 41

1 41 41 (1 41 4

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6 12 6

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11 1.79 21 2.93 15 2.16 18 3.Ul 17 3.39 14 2.30 27 2.83 14 2.37 13 2.20 10 1.67 7 1.62 7 1.54 8 1,61 9 3100 6 146 6 137 8 1.89

10 1.84 7 1.69

20 2.24 6 1.61

10 2.20 11 2.08 42 3.55

12 30 17 33 32 17 18 18 18 16 13 11 13 15 11 I 0 14 13 10 17 12 15 16 40

c6 e6 0

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c8 c6 0 6 U 6

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CS 35 45 45 45

37 77 61 Q6 92 56 09 04

68 48 38 4u 49 41 38 46 40 40 86 46 66 00 SU

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<2 C2 42 e2 42 <2 C2 C2 24 42 42 (2 (2 c2 42 16 42 e2 42 <2 (2 <2 <2 42

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5 c2 42 42 <2 <2 42 e2 CP 42 42 42 42 c2 c2 42 c2 c2 c;c <2 c2

28 32 20 23 23 17 20 27 19 27 24 27 24 26 16 10 17 10 12 23 13 19 16 40

a 2 3

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*2 e2 e2 7 4 2 3 0

16 14 18 12 13 16 2s 19 19 20 20 16 17 17 14 17 13 12 13 20 16 21 20 27

199 0.38 0.08 1.39 461 0,W 0.16 2.36 199 0.34 0.13 1.38 ?M 0.66 0.20 2.62 720 0.64 0,20 2.60 10U 0.31 0.10 1.51 560 0,34 0.08 1.61 333 0.41 0.12 q.60 lQ9 0828 0.12 1 4 4 6 204 0,M OP12 1.44 247 0,27 0,12 1.09 266 028 0.10 0.99 166 0,2D 0 , l l 1,24 166 0.27 0.12 1.66 276 0,ZO 0.09 1.07 248 0.21 0.09 1.07 347 0.10 0.09 1.37 237 0.28 0.10 1.31 lo0 0.14 0.05 1.01 279 0.27 0.07 1.36 96 0,lU 0109 4.02

130 0.22 0.09 1.41 131 0.22 0.10 4.18 716 0.62 0.07 2.09

0.26 0.06 0.07 0.35 0.07 0.18 0.26 0.06 0.07 0.28 0.07 0.16 0.28 0.07 0.16 0.27 0,w 0.08 0.69 0,07 0.11 0.96 0.00 0.08 0.27 0.08 0.06 0,311 0,07 0.07 0.96 0.08 0.08 0137 0.07 0.08 0131 0'06 0.07 0.27 0,w 0.M 0.24 0.07 0.05 0.51 0.08 0,w 0.22 0.07 0.08 0.24 0.07 0.07 0.18 0.06 0.04 0.66 0.08 0.09 0.20 0.07 0.05 0.30 0.07 0.05 0.30 0.07 0.05 0.68 0.07 0.15

1656 1 818 Ob?

1420 1374 1721 1182 102u 91 u 931 761 702 706 7?4 606 6411

1148 1037 1627 921

1090 1731 1073 1048

ANALYTICAL METHODS ICP PACKAGE : 0.6 gram rampl+ dlge8ted In hot rmorrs aqua ngla (roll,rltt) or hot Aqur R.glr(rockr).

Tock Cornlmo Ltd. Global Discovery labs 1486 East Pender Street Vancouver, B.C. Canada V5L tV8 Phone: (604) 685-3032 Fax: (604) 844-2886

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