Addendum to

Geological Report

Dated December 15, 1969

on the property of

ACACIA MINERAL DEVELOPMENT CORPORATION LTD. (N.P.L.)

49" 14' North Latitude

123* 7 8 West Longitude

Vancouver Mining D i v i s i o n

B r i t i s h Columbia

WiG. STEVENSON & ASSOCIATES LTD.

May 13, 1976

INTRODUCTION During the period 1959 to 1969 I made examinations of

a gold prospect located approximately 2 miles north east of the Daisy Lake dam 50 miles northerly from Vancouver.

My report dated December 15, 1969 provides a history and a description of the geology, property and t i t l e , recommendations for an exploration program and the estimated costs to implement the proposed program.

ADDENDUM

During the period 1970 to date- Acacia Mineral Dev­elopment corporation Ltd. retained the 20 mineral claims described in my report and staked an additional 50 mineral claims contiguous to the original claim blocks. Based on my examination of the records in the gold commissioners office in Vancouver these claims a l l appear to be v a l i d .

During this same period roads have been constructed and the timber removed from most of the claim block.

In addition, Northair Mines Ltd. have made important mineral discoveries on their property 8 miles north oftthe subject claims and production i s scheduled to commence during 1976.

CONCLUSIONS

The assessmejit>;work accomplished over the past ten

W . G . S T E V E N S O N Bt A S S O C I A T E S L I M I T E D

C O N S U L T I N G G E O L O G I S T S

P.2

years on the Acacia claim block has not materially effected the conclusion recommendation and the proposed exploration program that accompanied my report of December 15, 1969.

The discovery and development of commercial mineralization eight miles northerly enhances the exploration potential of the ACACIA property.

In my judgement the exploration program proposed in my report of December 15, 1969 i n the amount of $39,600 is warranted.

Respectfully submitted

W.G. STEVENSON & ASSOCIATES LIMITED

W . G . S T E V E N S O N & A S S O C I A T E S L I M I T E D

C O N S U L T I N G G E O L O G I S T S

C E R T I F I C A T E

I, William G. Stevenson, DO HEREBY CERTIFY:

1. That I am a Consulting Geological Engineer with offices at Suite 609 Stock Exchange Building, 475 Howe Street, Vancouver 1, B.C.

2. That I am a graduate of the University of Utah. 1946, with a B.8. Degree.

3. That X am a registered Professional Engineer i n the Association i n British Columbia.

4. That I have practised my profession for 29 years.

5. That I have no direct, indirect or contingent i n ­terest i n the F.F., Daisy, Ron, J or 8 Mineral claims nor in the securities of Acacia Mineral Development Corporation Ltd. (N.P.L.) nor do I intend to receive any interest.

6. That the report dated December 15, 1969, and this addendum dated May 14, 1976 i s based on my examinations of the property made during 1959, 1966, 1968, and 1969.

DATED a t Vancouver, B.C., the 14th day of May 1976.

W.G. STEVENSON & ASSOCIATES LIMITED Consulting Geologists

tevenson, P. Eng.

W . G . S T E V E N S O N & A S S O C I A T E S L I M I T E D

C O N S U L T I N G G E O L O G I S T S

GEOLOGICAL REPORT

on the property of

ACACIA MINERAL DEVELOPMENT CORPORATION LTD. (N.P.L.)

49° 14' North Latitude

123° 7* West Longitude

Vancouver Mining D i v i s i o n

B r i t i s h Columbia

W.G.STEVENSON & ASSOCIATES LTD.

December 15, 1969-

TABLE OF CONTENTS

Paq;c

Introduction 1

Property and T i t l e . 1

Location and Access 2

History 3

Geology 3

Mineralization 7

Conclusions 8

Recommendations Q

Cost estimate for proposed program 10

A P P E N D I X

A Index Map Scale 1" - 100 miles.

B Geological Map Scale 1" = 1/2 mile.

C Geological Map Scale 1" = 40 feet.

D Tabulation of Data pertaining to Mineral Claims.

E C e r t i f i c a t e of W.G.Stevenson, P. Eng.

INTRODUCTION

During 1959 I examined a gold prospect located

50 miles northerly from Vancouver near the border of

Ga r i b a l d i Park. This property was held by Mr. F e l i x

Letain, who accompanied me on t h i s examination. Mr.Letain

died a number of years ago and Mr.Francis B u l l , Chilliwack,

B.C., executor of his estate, restated mineral claims to

cover the known mineralization i n t h i s area.

During July, 1966, August, 1968, and Octobor, 1969,

in company with Mr.Bull, I have made examinations of t h i s

prospect. This report i s based on information collected

during these examinations, from a review of the published

l i t e r a t u r e and from discuss ions with colleagues who are

working in t h i s area. I t i s designed to appraise the

mineral potential of t h i s property, to recommend means of

t e s t i n g t h i s p otential and to present a cost estimate for

the proposed program of exploration.

PROPERTY AND TITLE

The mineral claims held by Mr.Letain near Garibaldi

Park were allowed to lapse. Mr.Bull has staked 2 blocks

of mineral claims to cover the mineralization on the old

Letain property.

I have reviewed the data pertaining to these mineral

claims as shown on the records maintained by the B .C.Depart­

ment of Mines and Petroleum Resources o f f i c e i n Vancouver.

I have i n addition examined a number of posts used to stake

these mineral claims. The posts that I examined were the

i n i t i a l posts of the Daisy 1 and 2, the f i n a l posts of

the Daisy 3 and 4; and the f i n a l post FF 9 and 10 .

These posts were proper size, squared at the top, metal

tags properly inscribed were a f f i x e d and a well blazed

l i n e marked the position of the next set of posts.

I have attached a map marked Appendix B drawn to

a scale of 1" - 1/2 mile to show the outline of the

claims and t h e i r r e l a t i v e p o s i t i o n . I have also attach­

ed, marked Appendix D, a tabulation of the data pertain­

ing to these claims as shown i n the B.C.Department of

Mines Recorder's o f f i c e .

As a r e s u l t of my appraisal I believe these claims

have been staked in accordance with the provisions of the

Mineral Act of B r i t i s h Columbia and are v a l i d .

LOCATION AND ACCESS

These claims are located 50 miles northerly from

Vancouver, B.C.,approximately two miles northeast c f the

Daisy Lake Dam and about one-half mile westerly from

the G a r i b a l d i Park Boundary. They are positioned at

4 9 ° 5 9 ' North Patitude and 123° 0 6 ' West Longitude.

The P a c i f i c Great Eastern Railroad Station at

G a r i b a l d i i s located three miles south-westerly from the

claims, the port at Squamish i s approximately 22 miles

southerly. The northern block of mineral claims are

located along a dozer t r a i l leading from Daisy Lake

i n t o Garibaldi Park along Marble Creek.

3.

The southern block of mineral claims are access­

i b l e by a steep foot t r a i l which extends easterly from

Daisy Lake a distance of approximately one-half mile.

HISTORY

Commencing about the turn of the Century, pros­

pectors tested the streams in t h i s area for placer gold,

and as a r e s u l t many mineral claims have been staked

within a 15-mile radius of Daisy Lake.

Approximately 35 years ago Mr«Letain had a trap

l i n e east of the Cheakamus River into G a r i b a l d i Park.

While trapping i n th i s area he prospected, put down

trenches, and found gold. He eventually staked some

27 mineral claims.

A number of years ago New Jersey Zinc and other

companies acquired mineral claims and are conducting

exploration programs at the present time. These programs

are designed to search for base metals.

The area immediately south was mapped by Dr.W.H.

Mathews in 1946 and 1947. A reconnaissance map was

published i n Volume 69 of Geological Society of America.

A geological map published i n 1963 by the Geological

Survey of Canada as 42 - 1963 extends north to 50° North

Latitude.

GEOLOGY

This property i s located naar the southern ex­

tremity of the Coast Range Batholith, which at th i s

l a t i t u d e i s 100 miles wide, and which can be traced

northwesterly for several hundred miles into Alaska.

The g e o l o g i c a l structures and l i t h o l o g y within the

Coast Range Batholith are complex. A wide variety of

volcanic and metamorphic rocks have been intruded by

igneous rocks of i n f i n i t e composition and texture.

Neither the Federal Geological Survey or the

P r o v i n c i a l Department of Mines have mapped the area of

the claim blocks. The most detailed geological mapping

that has been accomplished i n t h i s v i c i n i t y i s by

Dr. W. H. Mathews, Professor of Geology at the Univer­

s i t y of B r i t i s h Columbia, and by Dr. H. Bostock of the

G.S.C. The northern l i m i t of these maps (50° north

l a t i t u d e ) does not include the claim group. One other

map by Dr. J . Roddick, of the G.S.C. published to a

scale of 1" = 4 miles, contributes geological information

though t h i s does not extend to the claim group.

The Bralorne Pioneer Gold Mine i s located near the

northeasterly edge of the Coast Range Batholith, approx­

imately 60 miles northerly.

The ore i n the Britannia Mine, which i s located

approximately 30 miles toward the south i s associated with

a meta-sedimentary-volcanic roof pendant over the Coast

Range B a t h o l i t h as i s the ore i n the Granduc Mine sons

500 miles northwesterly.

New Jersey Zinc Exploration Co. Ltd., holds a

block of Crown Granted mineral claims which are located

5

11 miles northeasterly from Daisy Lake and within the

boundary of G a r i b a l d i Park. New Jersey has accomplish­

ed considerable diamond d r i l l i n g , has driven a tunnr1

to t e s t copper mineralization at depth. This property,

formerly c a l l e d the Green Lake Mining and M i l l i n g Co. i s

described i n the B.C.Minister of Mines' Report for 1930.

M i n e r a l i z a t i o n here i s associated with metamorphic rocks

probably roof pendants, overlying the Coast Range i n ­

t r u s i v e .

My traverse over Acacia's north claim block was

i n general confined to the claim l i n e which coincides with

a t r a i l i n t o G a r i b a l d i Park. That part of the claim

block between claims No.1 to 10 trends southeasterly,

adjacent to a creek which possibly represents the surface

expression of the projection of a f a u l t shown on the

g e o l o g i c a l maps toward the south. This f a u l t i s pos­

i t i o n e d on the contact between an intrusive pluton on

the east and metamorphic rock on the west. My examin­

ation was confined to the west side of t h i s creek, I did

not see the i n t r u s i v e pluton.

The rocks that I saw on the northern claim block

were predominently metamorphic, gneisses, and schists

with minor granodiorite, quartz d i o r i t e , fine-grained

dark dikes, quartz veins and quartz segregations. The

most abundant rock i s blue-grey highly altered with a

g r a n i t i c to porphrytic texture, described as a metamor­

phosed p o r p h y r i t i c meta-dacite. I t apparently correlates

6.

with the Harrison Lake formation described i n G.S.C.

P i t t Lake Map 1151A, and with the undivided metamorphic

rocks, described i n G.S.C. Squamish Map 42 - 19&3-

The i n t r u s i v e rocks for the most part have a

g r a n i t i c texture, classed as quartz d i o r i t e or grano-

d i o r i t e . I t i s believed the batholith was emplaced

during Cretaceous time or e a r l i e r , and penetrated meta­

morphic v o l c a n i c and sedimentary rocks some of which

remain as i s o l a t e d pendants overlying the Batholith.

Light coloured quartz occurs in massive bodies and

i n mineralized veins throughout the property. Numerous

fine-grained volcanic and dike rocks are also exposed

on the property. Strong a l t e r a t i o n and metamorphisn

has made analysis and recognition of rock types d i f f i ­

c u l t . An i n t e r p r e t a t i o n of geology i s further complicat­

ed by recent volcanic a c t i v i t y and g l a c i a t i o n which masko

the underlying rocks of substantial parts of t h i s area.

Three tunnels have been driven on the south block

of claims. These are designed to explore an east-westerly

trending f a u l t which contains quartz containing variable

amounts of copper and s i l v e r .

The rocks enclosing these veins are chlorate s c h i s t s

and p h y l l i t e s , probably much older than the intrusives and

quartz veins • The quartz veins appear to be conformable

with the s c h i s t o s i t y .

Because of the s p a r c i t y of outcrop, and the post

mineral v o l c a n i c flows that ma-jk the mineralization i t w i l l

7

be d i f f i c u l t to e s t a b l i s h the s t r u c t u r a l pattern, the

frequency of mineral occurrence and the precious metal

content of the quartz bodies.

I have attached a geological map marked Appendix B.

This; map drawn to a scale of 1" = l / 2 mile i s traced fron

a i r photo BC5, 103-126, which covers the claim block. I t

i s based on the geology that has been published south of

the 50° north l a t i t u d e onto t h i s map, and the geology I

have mapped on the property.

MINERALIZATION

The mineralization that I saw on the north block

of mineral claims was associated with veins, lenses and

i r r e g u l a r bodies of quartz. These appear to be related

to f a u l t i n g that projects northwesterly through the claim

block, and which form at the contact between a t e r t i a r y

i n t r u s i v e and older rocks.

I n 1 9 5 9 I c o l l e c t e d two samples which assayed

0.28 and 0 . 2 2 oz.gold over widths up to 4 feet. I have

been unable to determine the precise l o c a t i o n of these

sample l o c a t i o n s , although they are within the North

Block of Acacia's Mineral Claims. In 1966 I c o l l e c t e d

_3_samples from other mineralized quartz veins. The assay

results and p o s i t i o n of these samples i s shown on the

attached map marked Appendix B.

The south block of mineral claims have been staked

to cover an east-west rending quartz vein which contains

8

copper and s i l v e r with minor gold. These quartz veins

are possibly 10 feet wide i r r e g u l a r and o f f s e t by f a u l t ­

i n g .

While on the property I mapped the underground

workings which were accessible and c o l l e c t e d 13 rock

samples. You w i l l f i n d attached a sketch map, drawn

t o a scale of l n = 1000 feet, and marked Appendix D, to

show the l o c a t i o n of the samples that were c o l l e c t e d ,

and geology.

CONCLUSIONS

The area has not been mapped by the Geological

Survey of Canada or the P r o v i n c i a l Department of Mines,

and the mineral claims have not been mapped or adequately

prospected.

While geological information i s limited, i t would

appear that the s t r u c t u r a l conditions and rock types here

are s i m i l a r to those found i n many of the bodies of copper

and molybdenum which are located within the Coast Range

B a t h o l i t h .

I have c o l l e c t e d samples which contained gold

values up to $10.00 per ton and i n addition have mapped

and sampled workings which contain s i g n i f i c a n t copper

s i l v e r values.

The recent discoveries of both copper and molyb­

denum within the Coast Range Ba t h o l i t h suggests the mineral­

i z a t i o n of t h i s Marble Creek property warrants i n v e s t i g a t i o n .

9.

RECOMMENDATIONS

1. Compile a contour map to a scale of 1" = 1000 feet

from e x i s t i n g photography to include a l l of the

property.

2. Survey the claims, e s t a b l i s h a base l i n e with picket

l i n e s at 400-foot i n t e r v a l s .

3 . Conduct a program of geological mapping and pros­

p e c t i n g over the property.

4 . Conduct a program of geochemical sampling along

pic k e t l i n e s .

5. I n i t i a t e a program of geophysics over the property

to include magnetic, electromagnetic and induced

p o l a r i z a t i o n surveying to test responses of each

o f these systems.

6. The caved tunnel should be opened, geologically

mapped and sampled.

10.

COST ESTIMATE OF PROPOSED EXPLORATION PROGRAM:

Phase Number 1

1. E s t a b l i s h a camp $ 2 ,000.00

2. Topographic map 1 ,000.00

3 . Survey claims, e s t a b l i s h i n g base and

picket l i n e s 4 , 0 0 0 . 0 0

4 . Geological mapping and prospecting 4 , 0 0 0 . 0 0

5 . Geochemical program Sampling 3 , 0 0 0 . 0 0 Assaying 2 ,000.00 5 , 0 0 0 . 0 0

6 . Geophysical program 7 , 0 0 0 . 0 0

7. Open caved tunnel, map, sample and d r i l l 10 ,000.00

8. Contingencies @ 20% 6 , 6 0 0 . 0 0

Total Phase No.l 3 9 , 6 0 0 . 0 0

Depending on results obtained during the f i r s t phase of the program addit i o n a l exploration may be necessary.

Provision for additional geological mapping, geochemical and geophysical programs, surface and underground diamond d r i l l i n g , road con­struc t i o n 50 ,000.00

TOTAL Phase Numbers 1 & 2 $ 89,600.00

Respectfully submitted

W. G. STEVENSON & ASSOCIATES LIMITED

V s J l J ^ ST.G. Stevenson, P~.Kng.

INDEX MAP Showing location of

Mineral Claims held by ACACIA MINERAL DEVELOPMENT CORPORATION LIMITED (N.P.L. Vancouver Mining Division

B r i t i s h Columbia Scale 1" * 100 feet

| APPENDIX~A

OZ. OZ. % SAMPLE MO. ELEVATION WIDTH GOLD SILVER COPPER

1 2400 3' TR .3 .46 2 2400 2« .05 1.4 .93 3 2400 .07 7.5 4.15 4 2400 2' TR .1 .07 5 2400 3' TR .1 .67 6 2400 5' TR .05 .25 7 2400 2' .14 3.3 2.15 8 2400 2 V .05 1.25 .43 9 2300 1' TR .05 .01 10 2300 1' TR TR .01 11 2300 21 TR .2 .14 12 2300 2 V TR TR .01 13 2400 SPECIAL .005 3.6 7.70

/ *M0*>K iruiDM <F w a n t !

ifPMHMm l a m O I ' I K

To accompany report of W, G. Stevenson December 15, 1969, for Acacia Mineral Development, Corporation Ltd.(N.P.L.)

CLAIM Name

RECORD Number STAKED BY DATE STAKED DATE RECORDED EXFIRY DATE

FF #1 11271 Francis B u l l , Agent for Oct.18,1965 Oct.27, 1965 Oct.27 ,1970 FF #2 11272 Estate of FELIX LETAIN it tt 11

FF HZ 11273 11 (t it tt

FF #4 11274 11 it 11 tt

FF #5 11275 i t i t tt 11

FF #6 11276 11 t? t i

FF 07 11277 Francis B u l l Oct. 19,1965 tt t i

FF #8 11278 i t it tt II

FF #9 11279 i t 11 tt 11

FF #10 11280 i t i t tt It

FF #11 11281 M tt n It

FF #12 11282 i t « 11 t l

FF #13 11283 11 it 11 II

FF #14 11284 » t i t i II

Daisy #1 15847 Francis W. B u l l Apr. 2, 1969 Apr, 3, 1969 Apr.3, 1971 Daisy #2 15848 i t tt 11 tt

Daisy #3 15849 i t n t i tt Daisy #4 15850 i t 11 ti t i

Daisy #5 15851 H i t t i 11

Daisy #6 15852 It 11 11 11

Recorded B i l l of Sale dated October 22, 1969, and August 22, 1969 transferred t i t l e to Acacia Mineral Development Corporation Ltd.(N.P.L-)

- C E R T I F I C A T E

I, William G. Stevenson, DO HEREBY CERTIFY:

1. That I am a Consulting Geological Engineer with

o f f i c e s at Suite 209 Stock Exchange Building, 475 Howe

Street, Vancouver 1, B.C.

2. That I am a graduate of the University of Utah,

1946, with a B.S.Degree.

3. That I am a registered Professional Engineer i n

the Association i n B r i t i s h Columbia.

4< That I have practised my profession for 22 years.

5. That I have no d i r e c t , i n d i r e c t or contingent i n ­

t e r e s t i n the F.F. or the Daisy Claims nor i n the secur­

i t i e s of Acacia Mineral Development Corporation Ltd.(N.P.L.)

nor do I intend to receive any i n t e r e s t .

6. That the report dated December 15, 1969, i s based

on my examinations of the property made during 1959, 1966,

1968 and 1969.

DATED at Vancouver, B.C., the 15th.day of December, 1969.

W.G.STEVENSON 6 ASSOCIATES LIMITED Consulting Geologists

W.G.&tevtirison, P. Eng.

APPENDIX E•

- 3 -

(a) To c a r r y o u t t h e recommendations c o n t a i n e d i n t h e r e p o r t o f W i l l i a m G. S t e v e n s o n , P.Eng., d a t e d t h e 1 5 t h day o f December, 1969, but w i t h an Addendum t h e r e t o d a t e d t h e 13th day of May, 1976, c o n c e r n i n g t h e second phase o f a d d i t i o n a l g e o l o g i c a l map­p i n g , g e o c h e m i c a l and g e o p h y s i c a l program, s u r f a c e and underground diamond d r i l l i n g , r o a d c o n s t r u c t i o n on t h e D a i s y Lake c l a i m s , a copy o f whi c h i s a t t a c h e d . $ 50,000.00

(b) To pay c o r p o r a t e d e b t s i n the amount o f a p p r o x i m a t e l y . 25,00 0.00

(c) To a p p l y t o purcha s e o f new t r u c k . 7,000.00

(d) P u r c h a s e o f used camp t r a i l e r a p p r o x i m a t e l y 7,000.00

(e) A d m i n i s t r a t i o n and g e n e r a l w o r k i n g c a p i t a l 8,125.00

$ 97,125.00

5. GIVE THE FULL NAME, HOME ADDRESS AND CHIEF OCCUPATION, THE NUMBER OF SHARES OF THE ISSUER BENEFICIALLY OWNED, DIRECTLY OR INDIRECTLY, BY EACH SENIOR OFFICER OR DIRECTOR OF THE ISSUER AND I F EMPLOYED DURING THE PAST FIVE YEARS, THE NAME OF EACH EMPLOYEE

NO. OF SHARES OF ISSUEF NAME AND ADDRESS: CHIEF OCCUPATION BENEFICIALLY OWNED

FRANCIS WORTHINGTON BULL Businessman 568,750 45385 Westvxew Avenue S e l f - E m p l o y e d C h i l l i w a c k , B. C.

JESSIE BULL 45385 Westview Avenue C h i l l i w a c k , B. C.

ERLING REIDAR HAGELIN 4976 E c k e r t Road Yarrow, B. C.

Housewife & C a t e r e r

R e t i r e d

256,000

18,000

J a c k O. M a r t i n R e t i r e d 50,000 3290 Thompson C r e s . West Vancouver, B. C.

PARTICULARS OF THE CORPORATE STANDING OF THE ISSUER The I s s u e r was i n c o r p o r a t e d i n B r i t i s h Columbia on

September 23, 1965. The l a s t a n n u a l r e p o r t was f i l e d w i t h t h e R e g i s t r a r o f

Companies f o r t h e P r o v i n c e o f B r i t i s h Columbia on September 23, 1976. A l l f i l i n g s r e q u i r e d t o be made by t h e I s s u e r under t h e S e c u r i t i e s

anfl rc«*nn«ri4 o f B r i t i s h Columbia a r e up t o d * t e .