COMINCO LTD.Sullivan Mine Kimberley, B.Cj

iDRILLING REPORTCHDD NO. 6405

NORTH STAR MTN. AREA i

October, 1975

Klmberley OpwaUona October 17th 1975

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This is to certify that I. James H.H. Heal,

am a graduate geologist with a degree from

University of Alberta in 1974, and that I have

been practicing my profession in geology and

the mining industry since that time.

JHHH:SS

Cominco Ltd.lP.0. Box 2000/Kimberley, British Columbia, Canadai

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BETWEEN : CONING” LIM*TgD : i .“;P.G. Box 2000 ,i ~<;:,~Kimberley, B . C .

:._(h:ereinef ter refr~irdd t&i:~ra the “COMPANY”)

AND: CG;RNORS DRILLTNG,~$T% ‘+j,2GY-1201 Weit P&+@‘SV-ancouver, B . C . : VtjE,.

~,:j,(h’ereinaf ter rcfcrrmd g&&a, the “CONTRACTOR”)

WHLREAS ~thc COMPA$Y ;her& requests that the CORTRACTOR

carry out cr,rtain Surface d$adom& :llling and other serv ices , on

the COMPAITV property in t,Be :ar~ ‘f. Sullivan Mine. Kimberley, B.C.

ABD WHEREAS the C%RUI’RA hereby a g r e e s t o p e r f o r m; ji

said diamond drilling and other ~I;l,“irices requested, under the

terms and con~ditions hereintifter &@tnined..~,

1. SCOPB: OP. WORK

The work ’ is to c o n s i s t ef’;se of , dr i l l holes , dr i l led ,atl.ocatiob;e.’ l pecified by (ha C A total minimum frotageoff 5000 feet shal l be drille ut tota l footage m a y b eextended beyond that a@ount,‘.; y mutual consent.b’ Holes shal lbe dri l led with NQ or B9 too,?+producing l-7/8” and l-7/16”diameter core, a s f a r 11’ i;s g#&ronably p r a c t i c a l . Maximumdepth ~of, any hole m a y h# ~$:OOG,‘j@eet,. and minimum depth shallbe around: 800 feet: Hoie ~ang:$&i, shal l be between -55 and -90degrees. ,:’

2. COMMElWKtSRNT A N D BXECUTfOb, O~?$@R&

Work shall be com~~nc&~ :Ar the f i rst week o f August , 1975.Work wi l l be carr ied o&& ,v)ig o ten hour shi f ts working sevendays a week or as near $hlit dule as can rqaoonably bemaintaina:d.

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diamond set items, oi

drilling ‘machinery .adnot limited to: Drill outfit '~

casing, fuel,

(b) That dtglling crsw u&lahal& use due cek.. and,/&

good drilling practice andaa #hall enable them to

tecow/:es high a$er.*#h core ao th& nature of theground.!~b.ing driX:l$d &a,% t . All core. shall bedelivesod to the COXP&!f, es provided by'ths COMPAWYet the'drill sit... .~,

(c) That it shall be ~vesp.&hl and will pay promptly allcosts~ @Id charges, ia tsslf for labor, machinery,toola,,,,+d .upplfrO u ting the vork hcrsund,erso thit,,no lien or, ot .stge~ relative to th.. COWTRACTOR,may b? @gidtersd aga PAWY or the proparty. T h eCONTRAVRgR ahall b;r reients ‘f&t Workmen’* C

or the payment of a11 assess-

Unemptr$msnt InaurmcHoliday Pay, Canada Pension,

charg..'!rslative tn ifror other such opplic,abla

or and supplies purchsssd.

(d) The Cfb+ACTOR sb.11, &t aand ssistain good orde$ ah

se enforce strict disciplinets employees and shall not

retain o,n the. work l ny,",umfin the Wrk assignsd to hi

Tyson or anyone not sk~i$led

or unratiafactory to t& ,$sy employee who is objectionableY

work and replaced by & l 9shall be removed from the

L satisfactory to the COMPANY.

(e) The, CWTRACTOR alm&l &+p:and robb,i.h, aad .# tuw;: e@

ill sitea'free :from xisteion of his work he shall leave

the dsfll sitea s. cl... 9

(f) The COUT:RACTOR or its Phr..concsrn~iag drilling rs*hli

shall not divulge ray informst$oa,p~ermit access to, or sxemination

of tha &ill core by say pets&notthe C&fFARY.

specifically authorized by

(8) CORTRACCOR will .upply,,b&Obole cu~htinga and .ludg.,sla

t of lin. and pump to kespof water supply reservoir.

Installation and ramovia ~.ha$g::be at Field Cost.,:p,4. THE C.-ANY HEREBY: AGR$&S, I..;

(a) Should eavfties, loose ,br;cflow6 ,+r ,~encountered ifi: 4 I!h‘*

ground or excessive water

that hole is deemed img~rsdtio thst further drilling in

consea*, 'be abandomed':smd,'e,.that hole may by mutual

ao sphktied her.%. fozRsl;&.WRTRACTOR be paid at rates

Howsvi.r, should the C@@ARYspa completed in that hole.sit that further work be

carried out in the hol.:biyoshall coatinuc work in the h

hi. point, then the CORTRACTORbut

be et FIELD COST Retes.such continuing work shall

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(b) T h a t hit w i l l p r o v i d e ecgeCe +&bdo to aa neer a l l dri l l mitesa s ispractical, cud pr@paro :@tom s u i t a b l e f o r drills met u p .

(c) T h e CD#BANY s h a l l prov+( tt&o coast to the CONTRACTOR,a l l rlthts o f w a y off iqrde d l g,re.ss to all lands thatmay be- sequired to ene@,e.:.twork as ,specified. The: C&t

DUTRACTOR t o csrry o u t t h eTQR s h a l l b e pernitted t o

c u t a n d ,fell e n y timber: ou COMPANY’S property es mey be,requirr,d i n t h e c o u r s e ,,Pf ‘t ark hereunder, end the COMPANYs h a l l i n d e m n i f y uod a& .@szssseemme~nt f o r stumpa& oi

l a th,e CONTRACTOR from euyr charges of every kind and

n a t u r e .

5.

(a 1

y the CONTRACTOR for footageraed a s f o l l o w s :

Mobili~so*ion a n d domobiliuatfrom CORTRACTOR’S bese ,of op

P o r equipment a n d crevm,tione

p o i n t a n d r e t u r n . a totsal rtdeft o t r a n s p o r t d i s c h a r g e

$3,000.00.

(b) Drillin@:o- 1000 ft

1000 - 1500,ft 1 3 . 7 5 ,1500 - 2000,‘ft

‘~:’ .J4. 75

2000 - ‘, 2500 ( f,t ,‘:, ~15. 752500 - 300.0: rc

35oa,:yg:’ 17.00

3000 - ‘ A - -3500 - ~000 yt ,:” - - -

BQ12.CO a f o o t13.00 a f o o t14.00 a f o o t15.00 s f o o t16.25 a f o o t17.50 a f o o t19.00 a f o o t

(c) Overburdna pcnetretionr: 0 - $@ f e e t , e t $ 1 2 . 7 5 a f o o t .B e y o n d 50 f ee t a t Pield~:Coet,$12 .75 . foot .

,y$f t h e c o s t o f p e n e t r a t i o n e x c e s s:,

(d) Reamins h o l e , f o r casipi atid &sing h o l e . i f r e q u i r e d , a tF i e l d Coat.

(e) S t a n d b y , dip-testinp, o r dml&time, o r o t h e r t i m e d u r i n g whi&‘hthe COIITitACTOR’S crova~ 4:re: p~e&erming services , ~ for the COMPANYn o t otharwise covtrmd hereiar~-~:~-at F i e l d C o s t .

(f) Cementing o f d r i l l holee, end~i#edri’lling o f c e m e n t e d s e c t i o n o fhole : i f r e q u i r e d , e t lrield Cest.

(g) W a t e r s u p p l y : COWTRAC*R vUf_i,rupply up to 4000 f ee t o f we terl i n e at&pump f o r a mixfmufa ‘Eqica1 i i f t o f 2 5 0 f e e t .I n s t a l l a t i o n a n d remova t i m e i.11 b e i n c l u d e d i n d r i l l m o v ea n d s e t u p . . ‘ < .

(h) Moving o f d r i l l a n d aqufp*pudfscharec p o i n t t o firq dkS

e t o site: F r o m t r a n s p o r tmoving f r o m s i t e t o s i t e

a n d ‘retittn to traanPorttlo,pd, Moving time in excess’o f 2 0 m a n h o u r s f o r each- mpv ,~ ,ell b e a t F i e l d C o s t .

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) DrillinS'mud, edditivee !&ndDrillMg mud and edditiacr."

a8 ?ud. if required:

Mfxinfg t3sle, if drillis# e6Field-Coi,t. ,: .,:

) Truck re~ntsl: The Scot&@& 1 provide a service vehicle :for it0 zpersonnel. :

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(k) Tr8ctorr The COMP&llY r&1(1, ""'de a tractor for moviqg drilling'equiplc*atto and f,ror d+iIR' e et no cost to the CINTIACTOR.

(1) Core biege: If ,Irppli& bp &jj,CORTRACTOR, at $3.15 s ,box,plus f~refght. ,. :

(m) Camp: The CONTRAVfDR wfll;p ~ ge housing and boetd,forits personnel, at 80 cost :ke, COMFANY. : ‘f

(n) Field Wwt, where. nppl .ll be: Labour at $,13.50a man ~,hnnzr, equip-t 10.00 l drill shift hour and 4#$l the "&,,,,, the :hole supplies lost or consumedduring th:e Field Wet pan the work at cost plus tenpercent.~ ,'-w

(0) Welkilr;g e,r travel tioe4.h ml or welking time for theCBNTRkik%N'S crew8 'Cxc@ rlf hout per man day, thenail soehwelking ti&e .&e hargeable at $i’!.cifi a man hour. '~ .J

/o.u+$&4c&J a%.6. I,RSUR&W& AND CERRtiL 2

(a) The C&#!ACTOR, ~ti ,it8,: l hall maintain insurance tothe fellWring limits; ind Property Damage $2,UUD,UUD:,Automobile Insurmlae cove~t+# ,ooo,ooo.oo.

(b) The C&%&&CTOR shaX1 IIsuffered; by remon ofads rio:tl:,, strikes, lotportotioll.

or any loso or damages active congr,ol suchor failure or tram-

(c) Under rhie~ foregoit& te:@e ~;:e&*'i“ nditions the CONTRACTOR doesnot gb+Tlmtee to dtilLl*nJ h ~to clay specified depth. TheCONTldClVR will hewove*;, gxp every reesonable .effort tocomplete all holes ,:to the;sr ,ection of the COMPANY.

,": .;,,(d) The WWPRACTOR shell iqvoice COMPANY semi-monthly. for

foot8Sedrllled and otSrJr ;s~ es performed. Such invoiresshall bm due and peyebl) i$t 30 days of the invoice date.

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j’ Diamond: Drill ~Geological Log ,‘,4oac.wCJbJadive: Sampled:

~2:;~oollMFlMa’LnP8

-: E#amond. Drill @ological LogsObjective:

Lo&ecmy:BWL:

I’. . ,” Diamond- Driil @ological Log

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d&nond. Drill ‘Geological Log 4c