ni 43 101 technical report black water east west

8/2/2019 NI 43 101 Technical Report Black Water East West

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NI 43-101 Technical Report

on

Blackwater Eastand

Blackwater WestProperties

British Columbia

531050''N 124521W

Prepared for:

Box 546, 4 Al Wende, Ave Kirkland LakeON P2N 3J5

January 14th, 2012

Prepared by:

Mike Magrum, P. Eng.


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Table of Contents1 SUMMARY ................................................................................................................................................ 3

2 INTRODUCTION ....................................................................................................................................... 4

3 RELIANCE ON OTHER EXPERTS........................................................................................................... 4

4 PROPERTY DESCRIPTION AND LOCATION ......................................................................................... 5

5 ACCESSIBILTY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE & PHYSIOGRAPHY ............. 9

6 EXPLORATION HISTORY ...................................................................................................................... 12

7 GEOLOGICAL SETTING AND MINERALIZATION ................................................................................ 127.1 REGIONAL GEOLOGY .................................................................................................................... 12

8 LOCAL AND PROPERTY GEOLOGY .................................................................................................... 138.1 NAGLICO FORMATION ................................................................................................................... 148.2 OOTSA LAKE GROUP .................................................................................................................... 14

9 DEPOSIT TYPES .................................................................................................................................... 16

10 EXPLORATION ....................................................................................................................................... 2510.1 FUGRO AIRBORNE SURVEYS DIGHEM .......................................................................................... 2510.2 HELICOPTER-BORNE ZTEMTIPPER AND AEROMAGNETIC SURVEY.................................................. 2910.3 TWO DIMENSIONAL INDUCED POLARIZATION SURVEY ..................................................................... 30

10.4 2011SOIL AND PROSPECTING PROGRAM ...................................................................................... 31

11 DRILLING ................................................................................................................................................ 41

12 SAMPLE PREPARATION, ANALYSES AND SECURITY ...................................................................... 41

13 DATA VERIFICATION ............................................................................................................................. 43

14 ADJACENT PROPERTIES ..................................................................................................................... 43

15 MINERAL PROCESSING & METALLURGICAL TESTING .................................................................... 45

16 MINERAL RESOURCE ESTIMATES...................................................................................................... 45

17 OTHER RELEVANT DATA AND INFORMATION .................................................................................. 45

18 INTERPRETATION AND CONCLUSIONS ............................................................................................. 46

19 RECOMMENDATIONS ........................................................................................................................... 47

20

PROPOSED PROGRAMS & BUDGET................................................................................................... 47

21 REFERENCES ........................................................................................................................................ 48

22 CERTIFICATE OF AUTHOR ................................................................................................................... 52

23 SIGNATURE PAGE................................................................................................................................. 53


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List of Figures

Figure 1: Regional Location Map of the Blackwater West and Blackwater East Properties ............................................. 10Figure 2: Claim Map for the Blackwater East and West Properties .................................................................................. 11Figure 3: Regional Geology of the Blackwater East and West Properties Area .............................................................. 17Figure 4: Regional Geology Map Legend ......................................................................................................................... 18Figure 5: Blackwater East and West Properties Geology ................................................................................................. 19Figure 6: Blackwater West and Blackwater East Properties Property Geology Legend ................................................... 20Figure 7: Schematic section showing location of mineral occurrences ............................................................................ 24Figure 8: Blackwater East Target Zones over Magnetic Data Reduced to Pole ............................................................... 27Figure 9: Blackwater West Target Zones over Magnetic Data Reduced to Pole .............................................................. 28Figure 10: Blackwater East ZTEM...................................................................................................................................... 32Figure 11: Blackwater West ZTEM ..................................................................................................................................... 33Figure 12: Two Dimensional Induced Polarization Grid Locations ..................................................................................... 34Figure 13: Line 618000: 2D Inversion Models, Resistivity and Chargeability, West 1 Grid. ............................................... 35Figure 14: RTP, Magnetic Total Field Intensity Overlaying 2DIP survey grid. .................................................................... 36Figure 15: 3D Inverted Resistivity and Chargeability Models East 1 Grid .......................................................................... 37

Figure 16: Summary Map of Blackwater East Property ...................................................................................................... 38Figure 17: Blackwater West Rocks .................................................................................................................................... 39Figure 18: Blackwater East Rocks ..................................................................................................................................... 40Figure 19: Summary map for Blackwater West Property ................................................................................................... 42

List of Tables

Table 1: Blackwater East Option Claims ............................................................................................................................. 6Table 2: Blackwater West Option Claims ............................................................................................................................ 6Table 3: Blackwater Northeast Option Claims ..................................................................................................................... 7Table 4: Dave 2 Option Claims ........................................................................................................................................... 7Table 5: Characteristic Features of Mineral Occurrences in the Interior Plateau .............................................................. 21Table 6: Discovery Methods for Selected Prospects in the Interior Plateau Project Area, BC .......................................... 23Table 7: Condor Consulting Targets ................................................................................................................................. 26Table 8: East 1 Grid IP Targets ......................................................................................................................................... 31Table 9: ALS Minerals Quality ........................................................................................................................................... 41


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NI 43-101Blackwater East and West Properties January 2012

3

1 SUMMARY

This report was commissioned by RJK Explorations Ltd. (RJK), with offices at, 4 Al WendeAve Kirkland Lake Ontario, and was prepared by Mike Magrum, P. Eng. As an independent

geological Engineer, the author was asked to undertake a review of the available data andrecommend (if warranted) specific areas for further work on the Blackwater East and West claimblocks. This technical report was prepared to support a listing on the TSX Venture Exchangeand an associated equity financing.

The Blackwater East and West Properties, are located in central British Columbia. TheBlackwater East and West Properties are situated on the Nechako Plateau, approximately 110kilometres southwest of Vanderhoof and 160 kilometres west of Quesnel. The claims arelocated within the Omineca Mining Division. The Blackwater West Property is centered at 1252' 41" North and 53 6' 3" West and includes the claims in the Blackwater West option and theDave 2 option totalling 6,481 ha. The Blackwater East Property is centered at 124 43 19" Northand 53 14' 51" West and includes the claims in the Blackwater East option and the Blackwater

Northeast Option totalling 8,463.32 ha.

The Blackwater East and West Properties are within the Stikine Terrane, part of theintermontane tectonic belt. The Stikine Terrane itself is composed of Carboniferous to MiddleJurassic island-arc volcanic and sedimentary rocks plus several related plutonic suites. TheBlackwater West and Blackwater East Properties itself is principally underlain by Mesozoiclayered rocks; the most widespread being clastic volcanic and sedimentary rocks of theJurassic-aged Hazelton Group. These are intruded by plutonic rocks of various ages, such asthe quartz monzonites of the Lower Jurassic Topley Intrusive Suite.

This region is known for its potential to host large porphyry copper, copper/gold andcopper/molybdenum deposits some of which having been discovered in the Nechako plateau,

that includes the Blackwater, Chu, Wolf, 3T and the Capoose deposits. Mineral deposit typespresent in the region are classified as porphyry and epigenetic characterized by disseminated,vein and breccia hydrothermal systems.

In 2010 and 2011, RJK Explorations Ltd. undertook an exploration program on the BlackwaterEast and West Properties. The program was a multi-phase program that included: 1,584.1 linekilometres of Fugro DIGHEM airborne survey; a 1,550 line kilometre ZTEM helicopter EMsurvey; 22.1 line kilometres of ground induced polarization on three grids; and a groundprogram that consisted of 145 soil samples and 56 rock samples on the properties.

It is the opinion of the author that the favourable geological setting and results of the work doneto date show that the Blackwater East and West Properties has the potential to host economic

mineral deposits. The Blackwater East and West Properties are currently at the drill readystage.

In order to evaluate the economic potential of the Blackwater East and West Properties, a drillprogram is warranted. Currently RJK Explorations Ltd. has developed 9 potential drill targets onthe Blackwater East property and 2 potential drill targets on the Blackwater West Property. Theexpected cost to drill the 9 potential drill targets on the Blackwater East property is $535,000


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2 INTRODUCTION

This report was commissioned by RJK Explorations Ltd. (RJK), with offices at, 4 Al WendeAve Kirkland Lake Ontario, and was prepared by Mike Magrum, P. Eng. As an independent

Geologic Engineer, the author was asked to undertake a review of the available data andrecommend (if warranted) specific areas for further work on the Blackwater East and West claimblocks. The technical report was prepared to support a listing on the TSX Venture Exchangeand an associated equity financing.

In the preparation of this report, the author utilized British Columbia and Federal Governmentgeological maps, geological reports and claim maps. Information was also obtained from BritishColumbia Government websites such as Mineral Titles Online (www.mtonline.gov.bc.ca), theMap Place (www.em.gov.bc.ca/mining/Geolsurv/MapPlace), as well as the mineral assessmentwork reports from the Blackwater East and West area that have been historically filed by variouscompanies. Several reports that had been filed with SEDAR (www.sedar.com), were alsoreviewed. A list of reports, maps and other information examined is provided in the Section 21

of this report. The exploration results and the history of exploration on this Blackwater East andWest Properties are discussed in detail in Sections 6 of this report.

The author visited the Blackwater East and West Properties on August 24th, 2010, andDecember 2, 2011 during which time he reviewed the geological setting and carried out athorough examination.

The author was retained to complete this report in compliance with National Instrument 43-101of the Canadian Securities Administrators (NI 43-101) and the guidelines in Form 43-101 F1.The author is a qualified person within the meaning of National Instrument 43-101. This reportis to be filed with the securities commissions in provinces of Canada except for Quebec.

The author has no reason to doubt the reliability of the information provided by RJKExplorations Ltd.

3 RELIANCE ON OTHER EXPERTS

This report is based upon personal examination, by the author, of all available reports on theBlackwater East and West Properties. The author visited the Blackwater East and WestProperties on August 24th, 2010, and December 2, 2011 to appraise the geological environmentand access.

The information, opinions and conclusions contained herein are based on:

Information available to the author at the time of preparation of this report; Assumptions, conditions, and qualifications as set forth in this report; and Data, reports, and other information supplied by RJK Explorations Ltd. and other third

party sources.

For the purpose of the report, the author has reviewed and relied on ownership informationprovided by RJK Explorations Ltd., which to the authors knowledge is correct. A limited searchof tenure data on the British Columbia governments Mineral Titles Online (MTO) web site


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confirms to the data supplied by RJK Explorations Ltd. However, the limited research by theauthor does not express a legal opinion as to the ownership status of the Properties.

The evaluation of the Blackwater East and West Properties is partially based on historical dataderived from B.C. Assessment Files and other regional reports.

As of the date of this report, the author is not aware of any material fact or material change withrespect to the subject matter of this technical report that is not presented herein, or which theomission to disclose could make this report misleading.

4 PROPERTY DESCRIPTION AND LOCATION

The Blackwater East and West Properties, are located in central British Columbia (Figure 1).The Blackwater East and West Properties are situated on the Nechako Plateau approximately110 kilometres southwest of Vanderhoof and 160 kilometres west of Quesnel. The claims arelocated within the Omineca Mining Division. The Blackwater West Property is centered at 125

2' 41" North and 53 6' 3" West and includes the claims in the Blackwater West option and theDave 2 option (see below) totalling 6,481 ha. The Blackwater East is centered at 124 43 19"North and 53 14' 51" West and includes the claims in the Blackwater East option and theBlackwater Northeast Option (see below) totalling 8,463.32 ha.

Blackwater East Option

On December 3rd, 2010 RJK Explorations Ltd. entered into an option to acquire 100% undividedinterest in 13 contiguous mineral claims, totalling 5,611 ha claims (Blackwater East property)with Derrick Strickland (see Table 1). To exercise the option on the Blackwater East property,the company must make cash, share and work commitments over a three-year period totalling$60,000 cash ($15,000 on signing); 500,000 shares (150,000 on signing); and $500,000 in work

commitments ($50,000 in year one). The property is also subject to a 2 percent net smelterreturn royalty, of which 1 percent may be purchased from the vendor for $1 million.

Upon signing pay $15,000, issue 150,000 shares; By December 1st, 2011, pay $20,000 and issue 150,00 shares and incur

$50,000 of exploration expenses; By December 1st, 2012 pay $25,000 issue 200,000 shares, and incur

$200,000 exploration expenses; and By December 1st, 2013 have incurred an additional $200,000 exploration

expenses

Blackwater West Option

On December 1st, 2010, RJK Explorations Ltd. entered into an option to acquire a 100%undivided interest 18 contiguous mineral claims totalling 8,250.02 ha (Blackwater WestProperty) with Derrick Strickland (see Table 2). To exercise the option on the Blackwater Eastproperty, the company must make cash, share and work commitments over a three-year periodtotalling $255,000 cash ($55,000 on signing), 1.2 million shares (500,000 on signing), and$750,000 in work commitments ($250,000 in year one). The property is also subject to a 2percent net smelter return royalty, of which 1 percent may be purchased from the vendor for $1million.


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Upon signing pay $55,000, issue 500,000 shares; By December 1st, 2011, pay $100,000, issue 300,00 shares and incur

$250,000 of exploration expenses;

By December 1

st

, 2012 pay $100,000, issue 400,000 shares and incur$500,000 exploration expenses; and By December 1st, 2013 have incurred an additional $200,000 in exploration

expenses.

Table 1: Blackwater East Option Claims

TENURENUMBER

Area (ha)Issue date Good to date

694164 464.711 2010/Jan/04 2014/Jan/04694188 483.829 2010/Jan/04 2014/Jan/04694203 483.792 2010/Jan/04 2014/Jan/04

694204 484.052 2010/Jan/04 2014/Jan/04694205 483.79 2010/Jan/04 2014/Jan/04694206 464.666 2010/Jan/04 2014/Jan/04694207 387.074 2010/Jan/04 2014/Jan/04694208 464.4 2010/Jan/04 2014/Jan/04694209 483.615 2010/Jan/04 2014/Jan/04694210 464.146 2010/Jan/04 2014/Jan/04694223 464.103 2010/Jan/04 2014/Jan/04694224 289.959 2010/Jan/04 2014/Jan/04694225 193.364 2010/Jan/04 2014/Jan/04

Table 2: Blackwater West Option Claims

TENURE

NUMBER

Area (ha) Issue date

Good to date694243 485.767 2010/Jan/04 2013/Jan/12694245 485.561 2010/JAN/04 2013/Jan/12694263 485.704 2010/JAN/04 2013/Jan/12694264 485.485 2010/JAN/04 2013/Jan/12694265 466.259 2010/JAN/04 2013/Jan/12694283 466.259 2010/JAN/04 2013/Jan/12694284 466.06 2010/JAN/04 2013/Jan/12694285 427.11 2010/JAN/04 2013/Jan/12694286 465.927 2010/JAN/04 2013/Jan/12694288 485.156 2010/JAN/04 2013/Jan/12694289 485.154 2010/JAN/04 2013/Jan/12694290 194.062 2010/JAN/04 2013/Jan/12694291 485.154 2010/JAN/04 2013/Jan/12

694292 465.877 2010/JAN/04 2013/Jan/12694293 484.551 2010/JAN/04 2013/Jan/12694294 484.947 2010/JAN/04 2013/Jan/12694295 465.368 2010/JAN/04 2013/Jan/12694296 465.619 2010/JAN/04 2013/Jan/12


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Blackwater Northeast Option

On August 31st, 2011 RJK Explorations Ltd. announced it had entered into an option with JesseOtto to acquire the Blackwater Northeast property, consisting of three contiguous mineral claimstotalling 870.15 ha (see Table 3). RJK Explorations Ltd. must make cash and share paymentsand complete work commitments over a three-year period totalling $57,500 cash ($7,500 onsigning), 1.75 million shares (250,000 on signing), and $350,000 in work commitments ($50,000in year one). The property is also subject to a 3 percent net smelter return royalty, of which 1.5percent may be purchased from the vendor for $2 million. The terms are:

Upon Signing of the agreement paying $7,500 and issuing 250,000 shares; At the end of year 1 pay an additional $15,000, issue 500,000 shares and

incur exploration expenses of $50,000 within the first year; At the end year 2 pay an additional $35,000, issue an additional 1,000,000

shares while incurring exploration expenses of $100,000 by the end of yeartwo; and

Incur exploration expenses of $200,000 by the end of year three.

Table 3: Blackwater Northeast Option Claims

Tenure Claim Issue Date Good to Date Area (ha)

835434 JONECHAKO1 2010/Oct/08 2012/April/08 386.81



Dave 2 Option

On January 5th, 2011 JRJK Explorations Ltd. into an option agreement with Paul Saulnier toacquire an undivided 100 percent interest in the Dave 2 claim consisting of 213.30 hectares(see Table 4).

To exercise the option on the Dave 2 claim, the company must make cash, share and workcommitments over a three-year period totalling: $15,000 cash ($5,000 on signing), 300,000shares (100,000 on signing) and $300,000 in work commitments ($50,000 in year one). Theproperty is also subject to a 2 percent net smelter return royalty, of which 1 percent may bepurchased from the vendor for $1 million.

Table 4: Dave 2 Option Claims

Tenure Claim Issue Date Good to Date Area (ha)

835024 Dave 2 2010/Oct/04 2012/April/04 386.81


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In British Columbia, the owner of a mineral claim acquires the right to the minerals that wereavailable at the time of the claim and location and as defined in the Mineral Tenure Act of BritishColumbia. Surface rights and placer rights are not included. Claims are valid for one year andthe anniversary date is the annual occurrence of the date of record (the staking completion dateof the claim). To maintain a claim in good standing the claim holder must, on or before theanniversary date of the claim, pay the prescribed recording fee and either: (a) record theexploration and development work carried out on that claim during the current anniversary year;or (b) pay cash in lieu of work. The amount of work required in the first 3 years is $4 per hectareper year and $8 per hectare per year in years 4 and forward. Only work and associated costs forthe current anniversary year of the mineral claim may be applied toward that claim unit. If thevalue of work performed in a year exceeds the required minimum, the value of the excess work,in full year multiples can be applied to cover work requirements for that claim for additionalyears (subject to the regulations). A report detailing work done and expenditures must be filedwith and approved by, the B.C. Ministry of Energy and Mines.

The author undertook a search of the tenure data on the British Columbia governments Mineral

Titles Online (MTO) web site that confirms the geospatial locations of the claims boundaries.This is common practice in the mineral exploration industry in British Columbia to located claimboundaries, since the advent of Internet staking.

The company has indicated that there are no environmental liabilities on the property.

Work permits are required to undertake the recommendations. As of the date of this report thecompany has informed the author that they have obtained a dill permit for the Blackwater Eastproperty.

A major supply center in the area is Prince George B.C approximately 200 km north west of theproperty. All supplies and equipment for the recommended exploration programs can be

sourced in Prince George.

The Province of British Columbia owns surface rights over the property. Neither significantsurface disturbance nor any major environmental liabilities were noted during the authors fieldvisits. Exploration permits must be obtained from the British Columbia Ministry of Energy, Minesand Petroleum Resources prior to carrying out further mechanized exploration on the property.


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5 ACCESSIBILTY, CLIMATE, LOCAL RESOURCES,INFRASTRUCTURE & PHYSIOGRAPHY

ACCESS

The Blackwater East and West Properties are located in the forested rolling hills of the southernNechako Plateau of central British Columbia, approximately 120 kilometres southwest ofVanderhoof, which is situated on provincial highway 16 and the main railway line to the oceanport at Prince Rupert. Access to the property is by the all season Kluskus-Malaput forest serviceroad, which crosses the southern portion of the property. Secondary logging roads provideaccess to other parts of the property. Elevations on the Blackwater East and West Propertiesrange from 1100 to 1739 metres. Outcrop exposure is roughly less than 5% at higher elevationsbut glacial deposits mask the bedrock at lower elevations. Recent pine beetle infestations haveseverely damaged the forests in the area resulting in increased activity aimed at timber salvageand economic diversification for the region.

An extensive veneer of glacial debris covers the project area with bedrock exposures being rareand generally restricted to higher elevations. However, clear-cut logging has been recentlyconducted on several blocks within the claim boundary and a combination of this with the roadcuts has resulted in new exposures.

CLIMATE

Brief warm summers and long cold winters characterize the regions climate. The area receiveson average 30 cm of precipitation per annum and temperatures range from a minimum of -40Cin winter to a maximum of 32C in summer. Snowfall can attain 2 metres at higher elevations.The exploration period is between midJune and lateOctober. Year round diamond drilling ispossible given a suitable supply of water and a winterized camp.

Vegetation in the project area is balsam fir and white spruce with lodge pole pine. At higherelevations vegetation is less dense and dominated by subalpine fir and whitebark pine.

INFRASTRUCTURE & LOCAL RESOURCES

Local accommodation is available at the logging camps of Canfor Corporation. These campsare located along the Kluskus forest service road at the 142.5 km marker (Malaput Camp) andat the 102 km marker (Kluskus Camp). Local accommodation is also available at some ranchesand tourist camps in the area. Labour, contractors, fuel and other supplies are available atVanderhoof, which has a population of 4,000 and is located on the CN railroad and a pavedhighway. Prince George, located 100 kilometres east of Vanderhoof, has several daily flights to

Vancouver and other points. The nearest available grid electrical power is 19 kilometres north atKenney Dam.


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Figure 1: Regional Location Map of the Blackwater West and Blackwater East Properties


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Figure 2: Claim Map for the Blackwater East and West Properties


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6 EXPLORATION HISTORY

In the late 1960s Rio Tinto Canadian Exploration Ltd. carried out stream and lake sedimentsampling surveys throughout the Nechako Plateau.

The BC Geological Survey undertook a regional lake-sediment sampling program throughoutportions of the 093F map sheet in 1993 and subsequently analysed the samples for 35elements including; Gold, Arsenic, Barium, Bromine, Cerium, Cesium, Chromium, Cobalt,Europium, Hafnium, Iron, Lanhinum, Lutetium, Molybdenum, Neodymium, Rubidium, Simarium,Scandium, Sodium, Tantalum, Terbium, Thorium, Tungsten, Uranium, Ytterbium, bismuth,Cadmium, Copper, Iron, lead, Manganese, Mercury, Nickel, Silver , Vanadium, and Zinc

There is no direct evidence in the public domain that there has been any mineral explorationundertaken on what are currently the Blackwater East and West Properties for the workundertaken by RJK Explorations Ltd.

7 GEOLOGICAL SETTING AND MINERALIZATION

7.1 Regional Geology

After Diakow 1997

The property is situated along the eastern margin of the Stikine Terrane, west of the structuralcontact with the Cache Creek Terrane and immediately south of the Skeena Arch. Strata of theStikine Terrane in central and east-central British Columbia comprise superposed island andcontinental margin arc assemblages and epicontinental sedimentary sequences.

Island arc volcanism and associated sedimentation in central Stikine Terrane spans Late

Triassic to Middle Jurassic time. Elsewhere in Stikinia, remnants of Early Devonian to Permianarc volcanic rocks are known (Monger, 1977). The oldest strata exposed in east-central Stikiniaare fossiliferous Upper Triassic sediments, sporadically exposed in the Smithers (Tipper andRichards, 1976b; MacIntyre et al., 1996) that closely resemble flows of the Stuhini Group, cropout near fine-grained marine sediments containing the Carnian to early Norian bivalve Halobiain the Fulton Lake map area. These rocks are possibly coextensive with fossil-bearing UpperTriassic marine sediments mapped along the western margin of the Stikine Terrane in theWhitesail Lake (van der Heyden, 1982) and Terrace (Mihalynuk, 1987) map areas, where theycrop out in close proximity to Lower Permian carbonates (van der Heyden, 1982). Early andMiddle Jurassic rocks of the Hazelton Group stratigraphically overlie the Stuhini Groupthroughout much of Stikinia. The Hazelton Group is a lithologically varied island arc successioncomposed of subaerial and submarine volcanics locally inter-layered with marine sediments

(Tipper and Richards, 1976a).

Island arc volcanism commenced in Middle Jurassic time, broadly coincident with a protractedevent of terrane accretion and the subsequent overlap of older arc strata by widespread UpperJurassic and Lower and mid-Cretaceous flysch and molasse deposits. Terrane accretion beganpossibly as early as Bajocian time, resulting in structural juxtaposition of oceanic Cache CreekTerrane onto Stikinia, and led to early development of the Bowser Basin and shale deposited ina starved marine environment (Ricketts and Evenchick, 1991; Tipper and Richards, 1976a).Overlying coarser elastic rocks, consisting largely of conglomerate shed from the uplifted Cache


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8.1 Naglico Formation

Augite-phyric mafic flows, lesser tuffs, and scarce intervolcanic marine sediments dominate theNaglico Formation.

Within the internal lithologic variability in rocks of the Naglico formation, no single section isrepresentative, however, certain lithological features persist over broad areas. The primarylithologies include dark green and sometimes maroon, massive weathered flows of basalt andandesite. Augite phenocrysts are a diagnostic feature of these flows, commonly comprising 1 to3 volume percent as vitreous prisms averaging between 1 and 2 millimetres long (in rareinstances, 5 to 15 millimetres in length). Despite partial to complete replacement of augite bychlorite, epidote, carbonate and opaque granules, they generally retain their prismatic habit.Plagioclase is the primary constituent in all flows that include a number of textural varietiessuch as sparsely porphyritic, fine-grained crowded plagioclase porphyry to coarse-grainedporphyry. Plagioclase is slender, less than 2 millimetres long, in amounts up to 35 volumepercent in the crowded varieties.

Dense aphanitic basalts are commonly interlayered with the more voluminous porphyritic flow

varieties. They are lava flows with fine granular aphanitic textures that sometimes displaymillimetre-thick resistant laminae protruding from smooth weathered surfaces. Thin sections ofthese rocks reveal olivine and augite grains occupying interstices between plagioclasemicrolites. A representative suite, comprised of both pyroxene-bearing and aphanitic lavas, hasa compositional range of basalt to basaltic andesite. Major and trace elements indicate they aresubalkaline with a low-potassium tholeiitic to calcalkaline trend of island arc affinity.

Generally, sedimentary rocks tend to comprise thin recessive beds that rarely crop out andare commonly found as angular sedimentary debris churned up in road cuts and logging cutblocks, near more diagnostic lithologies of the Naglico formation. The main feature of theseintervolcanic sediments is their immaturity, characterized by the high proportion of angularplagioclase and volcanic-lithic detritus. The dominant lithologies include feldspathic sandstoneand siltstone, tuffaceous argillite, locally prominent volcanic conglomerate and scarcelimestone. Fossils are nearly always present, varying in abundance from a few indeterminatebelemnites and bivalves to zones containing a rich and varied fauna. A solitary sonninidammonite extracted from limestone suggests a probable early Bajocian age for the Naglicoformation underlying much of the Entiako Spur (Collection GSC C-143394; H.W. Tipper, Report72-1994-HWT).

8.2 Ootsa Lake Group

The Ootsavolcanic field in map area is against older basement of the Nechako uplift. South ofthe fault, Ootsa Lake volcanic strata form outliers that cap high-standing Jurassic rocks alongthe Fawnie Range and Entiako Spur.

Ootsa Lake strata unconformably overlie Upper Cretaceous volcanics and have an estimatedminimum composite thickness of 450 metres. The lowermost unit consists of dark grey, massiveand amygdaloidal andesite flows with amygdules infilled by silica, calcite and epidote. Theseflows are minor members, within a gradationally overlying bladed-feldspar porphyritic andesite


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section that is locally up to 100 metres thick. Typically these rocks are dark grey-green andcontain diagnostic plagioclase laths between 5 and 15 millimetres long (20-40% by volume) andpyroxene (5-10% by volume). These units generally appear beneath an upper, conformablesection of felsic rocks made up of volumetrically minor dacite flows and more prevalent rhyoliteflows and tuffs. The dacitic rocks, which commonly weather to flaggy porcellaneous fragments,are light green or grey and contain tabular feldspar phenocrysts 2 to 3 millimetres long (5-10%by volume) and slender hornblende phenocrysts 1 to 3 millimetres long. Rhyolitic rocks occupythe stratigraphic top of the Eocene sequence north of the Natalkuz fault. The flows are typicallychalky white and pink coloured and display a variety of textures that includes porphyritic andthinly laminated flows, massive flows and flow breccias, and rare interlayered pitchstones.Spherulites are common in rocks that have undergone varying degrees of devitrification.Phenocrysts up to 3 millimetres in diameter comprise up to 20% of the rhyolite flows andinclude, in order of abundance, plagioclase, potassium feldspar, quartz (


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Davidson ridge. These deposits are only a few to 10 metres thick and consist of poorly sortedblocks and lapilli beds, and less common mudstone and siltstone interbeds. The fragments aresubangular to subrounded and consist of coarse-grained plagioclase and pyroxene thatresemble andesitic flows characteristic of the Naglico formation. Quartz and some biotite grainsare found with plagioclase in the matrix of the coarse deposit and some of the finer grainedbeds. These remnants are interpreted as post-subsidence fill, derived in part from high-standingJurassic rocks and deposited with thin lacustrine mudstone and siltstone over locally subsidedash-flow tuff.

9 DEPOSIT TYPES

The Interior Plateau contains a number of present and past-producing mines, includingBlackdome, Gibraltar, Endako and Equity Silver, all of which lay outside the current project area.Lane and Schroeter carried out a survey of mineral occurrences in the northern part of theInterior Plateau in order to document characteristics and to establish local geologic setting andcontrols. These data are integrated in a conceptual model, repeated below in both graphical and

table form (see table 5 and table 6).


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Figure 3: Regional Geology of the Blackwater East and West Properties Area

Diakow 1997


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Figure 4: Regional Geology Map Legend


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Figure 5: Blackwater East and West Properties Geology

After Diakow 1997


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Figure 6: Blackwater West and Blackwater East Properties Property Geology Legend


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Occurrence Minfile Metallic MineralsGangueMinerals

Style of Mineralization Alteration

Au-Ag Base Metal

April 093F 060 sph, gln, py, po, aspy,cpy

qtz, chl,calc

coarse-grained disseminations to semi-massive, crudely banded veins/shears phyllic, propylitic

Ben 093F 059aspy, py, po, cpy, gln,sph, mo qtz, bio

semi-massive veins, layered to laminatedor foliated phyllic, potassic

Blackwater-Davidson

093F 037sph, py, po, gln, aspy,cpy, lei, bou, marc

qtz, ser,bio

disseminated and fracture-controlled;replacements phyllic, potassic

Buck - XmasCake

093F 050 sp, py, po, ga, cpqtz, carb massive to semi-massive sulphide breccia argillic

Buck-Rutt 093F 050 sph, py, poqtz, ser,chl, clay

disseminated, laminated to layered,stratabound

argillic, phyllic,silicic

Capoose 093F 040sph, gln, py, aspy,cpy, tel, po, pyg, el,Au

qtz, gnl,mus

disseminated, replacement and fracture-controlled phyllic, hornfels

Au-Cu (-Fe) Skarn

Fawn 5 093F 053mag, po, py, cpy,aspy, gln

bio, chal,ep, dp,calc

massive to semi-massive magnetite;disseminated sulphides in metasomatizedandesite tuffs

hornfels, calc-silicate;metasomatism

Porphyry Mo-Cu

CH, C 093F 004 py, cpy, po, moqtz, K-fld,bio, mag

disseminated in veinlets and weaklydeveloped stockworks

silicic, hornfels,potassic,propyllitic, phyllic

Paw 093F 052 py, mo, cpydisseminated and fracture-controlled silicic

Chu 093F 001 mo, py, po, cpy

qtz, bio disseminated and fracture-controlled hornfels, potassic

Ned 093F 039 mo, py, cpyqtz disseminated and fracture-controlled silicic


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Table 6: Discovery Methods for Selected Prospects in the Interior Plateau Project Area, BC

Discovery Methods for Selected Prospects in the Interior Plateau Project Area, BC (Lane and Schroeter, 1997)Property Deposit Type Discovered By: Year Discovery Method

April Mesothermal vein?Granges Expl.Ab. 1982

Regional geochemical stream sediment sampling: Znanomalies followed by prospecting and grid-based sampling

Baez Epithermal Au Phelps Dodge 1992Reconnaissance stream sediment and soil sampling, sampling, geophysics, diamond drilling

Ben Mesothermal vein BHP-UtahReconnaissance exploration for volcanogenic massulphide mineralization in Hazelton Group rocks

Blackwater-Davidson(Pem)

Porphyry-related Au-Ag

Granges Expl.Ab. 1973

Reconnaissance silt sampling: Pb-Zn-Ag stream sedimanomalies led to subsequent soil sampling and staking ofPem claim

Buck(Range) Mesothermal vein? BP Minerals Ltd. 1981

Reconnaissance geochemical sampling and prospecoutlined several base metal - silver anomalies; trenching rock sampling followed

CapoosePorphyry-related Ag-Au

Rio TintoCanadian Expl.Ltd.


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Figure 7: Schematic section showing location of mineral occurrencesand spatially and/or genetically-related intrusions (Lane and Schroeter, 1997)

Analogies to mineralization surrounding (e.g., Mount Davidson, Capoose and Chu) suggest thatany mineralization on the Nechako property may be related to the emplacement of Cretaceousintrusives into the Jurassic Hazelton and the Bowser Lake Groups. Sulphide mineralization asexists on the property may likely be associated with phyllic to potassic or kaolinite alteration offelsic and intermediate volcanic rocks, with secondary quartz. Specific mineralization is anticipatedto consist of pyrite, sphalerite, tetrahedrite, and arsenopyrite; gold and silver mineralization zones

are not expected to be confined to a particular lithologic unit.


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10 EXPLORATION

In 2010 and 2011 RJK Explorations Ltd. undertook an exploration program on the Blackwater Eastand West Properties. The program was a multi-phase program that included: 1,584.1 linekilometres of Fugro DIGHEM airborne survey flew a 1,550 line kilometre ZTEM helicopter EMsurvey, 22.1 line kilometres of ground induced polarization on three grids, and a ground programthat consisted of 145 soil samples and 56 rock samples on the properties

10.1 Fugro Airborne Surveys DIGHEM

Fugro Airborne Surveys was contracted to fly an airborne electromagnetic and magnetic DIGHEMsurvey for RJK Explorations Ltd. over the Blackwater East and West Properties. Data acquisitionoccurred during the period December 19th, 2010 to January 11th, 2011. Final survey coverageconsisted of 1,584.1 km line-kilometres, including tie lines. Flight lines were flown east-west (090270) with a line separation of 100 m. Tie lines were flown orthogonal to the traverse lines (180

360) at intervals of 1,000 m.

An airborne electromagnetic and magnetic DIGHEM survey was conceived and designed by RJKExplorations Ltd. to cover the property and aid in the design of the 2011 exploration program.Original objectives of this survey were two-fold:

provide high resolution electromagnetic and magnetic data for the direct detection anddelineation of sulphide-associated gold-silver occurrences; and

facilitate the mapping of bedrock lithologies and structure that in turn may influence theemplacement or hosting of economic mineralization.

RJK Explorations engaged the services of Condor Consulting of Lakewood Colorado to undertake

a detailed analysis of data collected by Fugro. Condor was commissioned to carry outcomprehensive processing, analysis and interpretation of the EM and magnetic data from theDIGHEM survey and to identify new zones of potential gold mineralization that could then befollowed up by detailed ground geophysical work, soil sampling, geological mapping and/or bydrilling.

Condor Consulting identified a number of Target Zones based on the recognition of discreteconductive features and an analysis of the conductivity and magnetic outcomes and concluded

"The Dighem system appears to not have seen below the conductive glacial tills. Potentialconductors, due to alteration or graphite along structures, were not identified. A deeperpenetrating EM system, such as VTEM, would have a better chance of seeing through the

surface conductors.

However, the magnetic data was clean and revealed a host of possible structures, seen asmagnetic lows. The lows were selected as the important feature in the magnetics, as theymay represent magnetite destruction in the otherwise magnetic volcanic rocks.

Not only were linear magnetic lows observed, but also localized areas that appeared tohave undergone alteration. These areas, particularly where supported by the presence ofstructures seen by the magnetic low lineations, are considered targets for mineralization.


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Based on the criteria above, 20 TZs were identified and listed below. The targets are allmagnetic lows, possibly due to alteration. The ranking of the targets is the estimatedchance that mineralization exists based on the geophysical data. About half of the targetzones are ranked low, reflecting substantial uncertainty. Five targets were ranked mediumand two were ranked high, TZW-6 and TZE-3. The scarcity of high-ranking targets does notnecessarily reflect an absence of mineralization within the survey area, only the

geophysical nature of the mineralization, making it difficult to select the most promisingtargets without additional information.

Figures 8 and 9 show the TZs over the magnetic reduced to pole data with the magneticlineations. These figures are shown below the following list of TZs. The TZ polygons aremeant to show the best area to drill test the target based on the anomaly extent, not thelimits of a potential ore body."

Table 7: Condor Consulting Targets

Number Priority Description

TZW-1 Medium Strong magnetic low located along a NNE structure on the mapped geology.TZW-2 Low Along a NW trending structure as seen in the magnetics.

TZW-3 Low Along two NW trending structures as seen in the magnetics.TZW-4 Low Mild magnetic low trending east-west.TZW-5 Low Mild low over to NW trending magnetic lineations.TZW-6 High Strong magnetic low, has an amorphous shape. Appears to be at

anintersection of NW, NE, and east-west structures as seen in themagneticlineations. Seen on line 10830.

TZW-7 Medium East-west along a magnetic linear.TZW-8 Low Mild magnetic low.TZW-9 Low East-west along a magnetic linear.TZW-10 Medium NW trending along a magnetic linear. Located within more magnetic material.TZE-1 Low Circular magnetic low.TZE-2 Low Circular magnetic low.TZE-3 High Magnetic low that appears associated with the intersection of a north-south

and an east-west structure as see from the magnetic data. Seen onLine

20240.TZE-4 Low NW trending magnetic low.TZE-5 Low Along a NW trending magnetic linear.TZE-6 Low Circular magnetic low.TZe-7 Medium Located along a magnetic linear that has a north-south component and aENE

component.TZE-8 Medium Along a north-south magnetic low that is coincident with a drainage.TZE-9 Low Along a north-south magnetic low that is coincident with a drainage.TZE-10 Low Very small circular magnetic low.


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Figure 8: Blackwater East Target Zones over Magnetic Data Reduced to Pole

N

)

N


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Figure 9: Blackwater West Target Zones over Magnetic Data Reduced to Pole

N


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10.2 Helicopter-borne ZTEM Tipper and Aeromagnetic Survey

In July of 2011 RJK Explorations Ltd. engaged the services of Geotech Ltd. to undertake a 1,550line kilometre ZTEM helicopter EM survey over the Blackwater East and West Properties. TheZTEM survey comprised airborne Tipper AFMAG (audio frequency electromagnetics)measurements at six frequencies in the 30 to 720 Hz band, as well as aeromagnetics using acaesium magnetometer. The West Block was flown in a north to south (N 0E azimuth) direction,with a flight line spacing of 150 metres. Tie lines were flown in an east to west (N 90E azimuth).The East Block was flown in an east to west (N 90E azimuth) direction, with a flight line spacing on150 metres. Tie lines were flown in a north to south (N 0E azimuth) (Figures 10 and 11). TheZTEM is useful in mapping geology to depth based on lateral resistivity contrasts, which is ofparticular interest, as this can relate to hydrothermal alteration processes associated with golddeposits (Williams, 1987). Geotech undertook and interpretation of the ZTEM data.

Blackwater East Block

Three magnetic domains: ME1, ME2, and ME3 characterize the Blackwater East survey block.Domains ME1 and ME3 appear regional; whereas ME2 is a circular, localized anomaly high. ME1runs northerly along eastern side; ME3 is located in the south- and north-western corners,respectively. By using both the Reduced-to-pole and the Magnetic Analytic Signal maps, variousmagnetic structural were interpreted that might be responsible for the lateral offset of the magnetichighs and lows (see Figure 10).

In Blackwater East Block, ZTEM features of interest (Anomalies A-E) were identified and computer-modeled using 2D inversion with topographic correction. The Blackwater East Block has anundifferentiated conductivity (A), suggesting a porous volcanic or sedimentary unit, juxtaposed tomore resistive unit, possibly an intrusive or felsite, to the west. The latter is characterized by acentral cluster of circular resistive zones (D-E-F) surrounded by more conductive rocks (B-C)

resembling a central, potassic altered volcanic epithermal center and surrounding clay-chloritealtered halo. The Blackwater East block therefore represents an area of exploration interest.

Blackwater West Block

As in the other block, the aeromagnetic data was also gridded and is displayed on the topographicmaps in Figure 11. Three magnetic domains MW1, MW2, and MW3 characterize this survey block.Domain MW1 is a major regional magnetic high occupying a great portion of the southwest part ofthe grid with a SW-NE trend. However, the highest magnetic values have a preferential E-W alongsouthern side of the block. MW2 and MW3 are circular, localized magnetic highs located at thenorthwest end of the survey. By using both the Reduced-to-pole and the Magnetic Analytic Signalmaps, various magnetic structures were interpreted that might be responsible for the lateral offset

of the magnetic highs and lows (see segmented wavy lines overlaying maps in Figure 11).

Over the Blackwater West Block, ZTEM features were defined (Anomalies H-M) and alsosuccessfully modeled using 2D inversion. Two conductive trends (H-I) characterize the block, withthe larger one (I) reflecting a major conductive E-W trending unit in the center of the grid. The outeredges of the conductive units also feature interesting circular, resistive zones (J-M). Areas ofinterest are outlined from the ZTEM survey results and locations for potential targets or zones ofinterest, both resistive (1st priority) and conductive (2nd priority).


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Magnetic data proved very useful in both a) identifying potential geological structures and b)defining the final location of these areas or interest, based on favourable resistivity anomalies withassociated low magnetic strength, in both the Blackwater East and West blocks. Both blocksfeature characteristic high resistivity & lower magnetic anomalies that are in turnflanked/surrounded by magnetic highs, analogous to the Richfield deposit geophysical targetmodel.

10.3 Two Dimensional Induced Polarization Survey

A two-dimensional Induced Polarization (2DIP) survey was conducted by SJ Geophysics Ltd. onthe Blackwater East and West project for RJK Explorations Ltd., from September 20 th to October13th, 2011

The 2011 project consisted of three grids, West1, East1, and East 2. A total of approximately 2.7,11.4, and 8 line kilometers on the West 1, East 1, and East 2 grids respectively were surveyed(Figure 12). The initial quality control of data collected in the field was performed on site by the fieldgeophysicist, while the final data processing was carried out in the office of S.J.V. Consultants Ltd.

in Delta, BC.

Blackwater West

West 1 grid consists of three north-south trending lines. The three lines are located to theimmediate north of a large quartz monzonitic to monzogranitic intrusive rock unit and underlain byvolcaniclastic rocks of the Hazelton Group, Naglico Formation or Entiako Formation. The West 1grid is bounded by a north-east trending fault to the southeast and a north-northeast trending faultto the northwest.

On Blackwater West, the 2DIP results on West 1 grid reveal a flat lying layered resistivity pattern inall three short lines. The models for the west most line capture a signature resembling the

response from a epithermal system: a small localized chargeability high feature appears in theresistivity contact zone and is accompanied by a resistive cap. This anomaly is open to the west.All lines show a resistive bottom layer in the models. This layer contains zones of coincidentelevated chargeability and decreased resistivity. These anomalies likely reflect facies changeswithin this layer (Figure 13).

Blackwater East

The East 1 and 2 grids are situated in an area with thick coverage of quaternary glacialoverburden, colluvial and fluvial deposits, which makes geologic mapping difficult (Figure 5).Helicopter-borne magnetometer survey results were used to assist in understanding the structurecontrol of the IP responses. Figure 12 shows the airborne magnetometer survey result as a RTP

(reduced to pole) magnetic total field intensity false color contour plan map, superimposed with2DIP survey lines. In the airborne survey area, western and eastern portions exhibit differentmagnetic patterns. The eastern portion of the survey area is characterized with a higher magnetictotal field intensity background value compared to that of the western portion. The 2DIP lines aresituated in the western portion of the airborne survey area where two distinct isolated circularmagnetic highs and a few magnetic low lineaments are evident. Examples of the magnetic lowlineaments in the western portion of the airborne survey area are denoted as bold dashed lines inFigure 14. The circular magnetic highs may imply intrusion occurrences while the lineaments mayshed light on fault/contact structures.


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East 1 Grid

On Blackwater East, the helicopter-borne magnetometer survey result (surveyed by Geotech Ltd.,September 2011) is integrated with the IP results to better interpret the geophysical anomalies. Themost prominent chargeability anomalies occur on the East 1 grid where four areas of interest areoutlined based on the occurrences of chargeability anomalies accompanied by resistive cap/plug

and magnetic lineaments. The four geophysical target areas surround a circular magnetic high thatis situated in the western portion of the grid (Figure 15).

The most prominent chargeability anomalies occur on the East 1 grid where four areas of interestare outlined based on the occurrences of chargeability anomalies accompanied by resistivecap/plug and magnetic lineaments. The four geophysical target areas surround a circular magnetichigh that is situated in the western portion of the grid (Figure 15). Descriptions of these areas ofinterest are listed in the following table.

Table 8: East 1 Grid IP Targets

East 2 Grid

The 3D inversion shows on the East 2 Grid the resistivity changes between the western (high) andeastern (low) portions of the grid. The resistivity transition line seems to coincide with the north-northwest trending magnetic contact lineament. This may suggest a rock type change across thecontact. Two areas of interest (C1-9000 and C1-9300) are identified and marked on Figure 16. The

large south western corner chargeability high (C1-9000) is situated immediately north of a circularmagnetic high and coincides with a large resistivity high. It is possibly related to lithology oralteration such as silicification. The chargeability anomalies in the eastern edge area (C1-9300) areweak responses and not well defined by the 2D models. However, they appear to follow a north-northeast trend and are accompanied by resistive caps. The area seems to be alteration related.

10.4 2011 Soil and Prospecting Program

In the summer RJK Explorations Ltd. engaged the services of Minconsult Exploration Services ofColdstream, British Columbia to undertake a ground exploration program. The program consistedof 145 soil samples on three grids on the Blackwater East property and general prospecting and

the collection 56 rock samples on the Blackwater East and West Properties. Figure 17 and 18illustrate the rock sample locations. No significant assays were encountered in the rock samples,however the soils samples gave rise to anomalous gold values. Minconsult Exploration Service didnot generate a sampling report on the sampling methods or methodology, therefore the author isunable to comment on that part of the program.

Figure 16 is a summary map for Blackwater East Property that illustrates anomalous gold in soils,along with ZTEM resistivity highs and lows, Magnetic highs and lows, IP Chargeability andResistivity highs and any outcrops found during the sampling program.


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Figure 10: Blackwater East ZTEM


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Figure 11: Blackwater West ZTEM


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Figure 12: Two Dimensional Induced Polarization Grid Locations


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Figure 13: Line 618000: 2D Inversion Models, Resistivity and Chargeability, West 1 Grid.

Line 62100E: 2D Inversion Models, Resistivity and Chargeability, West 1 Grid.


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Figure 14: RTP, Magnetic Total Field Intensity Overlaying 2DIP survey grid.


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Figure 15: 3D Inverted Resistivity and Chargeability Models East 1 Grid

3D Inverted Resistivity and Chargeability Models East 2 Grid


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Figure 16: Summary Map of Blackwater East Property


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Figure 17: Blackwater West Rocks


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Figure 18: Blackwater East Rocks


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Figure 19 is a summary map for the Blackwater West Property that illustrates the ZTEM resistivityhighs and lows, Magnetic highs and lows, IP Chargeability and Resistivity highs and any outcropsfound during the sampling program.

11 DRILLING

No drilling has been undertaken on the Blackwater East or West Properties at the date of thisreport by RJK Explorations Ltd.

12 SAMPLE PREPARATION, ANALYSES AND SECURITY

The author is unable to comment for the previous operators on the sample preparation, analysis, andsecurity of samples due to the lack of recorded information. The author is also unable to comment

the sample preparation, analysis and security for RJK Explorations Ltd. due to the lack of information.

RJK Explorations Ltd. sent all the 2011 soil and rock to samples to Stewart Group Eco TechLaboratory Ltd. of Kamloops British Columbia an ALS Minerals Laboratory (an accredited labpursuant to NI 43-101). All samples underwent 45-element Inductively Coupled Plasma - MassSpectrometry (ICP-MS) analysis. In addition, samples were submitted to Fire Assay Fusion forGold.

ALS Minerals routinely screen tests and sample preparation quality is monitored through theinsertion of sample preparation duplicates. For every 50 samples prepared, an additional split istaken from the coarse crushed material to create a pulverizing duplicate. The additional split isprocessed and analyzed in a similar manner to the other samples in the submission. It should be

noted that the precision of the preparation duplicate results is highly dependent on the individualsample.

ALS Minerals inserts quality control samples (reference materials, blanks and duplicates) on eachanalytical run, based on the rack sizes associated with the method. The rack size is the number ofsamples including QC samples included in a batch. The blank is inserted at the beginning,standards are inserted at random intervals, and duplicates are analysed at the end of the batch.Quality control samples are inserted based on the following rack sizes specific to the method(Table 9).

Table 9: ALS Minerals Quality


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Figure 19: Summary map for Blackwater West Property


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Based on the size of the property, and the fact that it is an early stage explorationprogram, the author is of the opinion that the nature, spacing and density of the samplestaken to date are appropriate for this type of exploration project.

At the current stage of exploration the geological controls and true widths of mineralized

zones are not known.

13 DATA VERIFICATION

The author has carried out property visits on the Blackwater East and West Propertieson August 24th, 2010, and December 2, 2011.

No samples were collected from the property, so no verification was completed.Convention would be to collect duplicate samples (none collected) and insert blank andknown standards into the sample stream (none were inserted). Additionally, separatelaboratories would be used to check for inter-laboratory variations (none were used).These would be examined statistically to see if the blanks returned true zeros (nonewere tested), the duplicate samples returned reasonably similar results (none werereturned) and that the laboratory standards were reported within reasonable accuracy(none were tested).

The effect of the author not conduction a data verification program has no effect on theproject as no samples were collected (see sections Sampling Method and Approach,Sampling Preparation, Analyses and Security).

Based on the available data all samples appear to be representative and there are noapparent sample biases. The author is unaware of any environmental liabilitiesassociated on the Blackwater East and West Properties.

14 ADJACENT PROPERTIES

The Blackwater West property is southeast of Silver Quest Resources Capoose Deposit(see Figure 3), Silver Quest Resources announced on January 20th, 2010 a newresources estimate for the Capoose: The resource estimate at a gold equivalent("AuEq") cut-off grade of 0.40 grams per tonne ("g/t") is 31.22 million tonnes grading0.38 g/t gold and 26.5 g/t silver for 383,823 contained ounces of gold and 26,593,915contained ounces of silver in an Indicated category and 37.23 million tonnes grading0.37 g/t gold and 24.6 g/t silver for 443,206 contained ounces of gold and 29,517,933

contained ounces of silver in an Inferred category

Cautionary statement: Investors are cautioned that the potential quantity indicated above has notbeen verified by the author and may not be indicative of the Blackwater East or West Propertieswhich are subject of this report. It has been provided only for illustration purposes.

The Blackwater East and West Properties are directly east and west (see Figure 3) ofthe recent Blackwater gold discovery of Richfield Ventures Ltd. (now owned by NewGold), which announced on March 2nd, 2011:


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At a base case cut-off grade of 0.40 g/t Au, the estimated global Indicated resource is53.46 million tonnes at an average grade of 1.06 g/t Au containing 1.83 million ouncesgold, with an additional 75.45 million tonnes at an average grade of 0.96 g/t Aucontaining 2.34 million ounces gold in the Inferred category. The table belowsummarizes the Geosim resource estimates at selected cut-off grades:

Blackwater Deposit - Indicated and Inferred Resource EstimatesINDICATED INFERRED

CUT-OFFG/T AU

TONNES 000'SGRADE CONTAINED

AU M OZTONNES000'S

GRADE CONTAINEDAU M OZ

AU G/T AG G/T AU G/T AG G/T

0.3 54,136 1.06 5.6 1.84 78,653 0.94 4.0 2.380.4 53,460 1.06 5.6 1.83 75,452 0.96 4.0 2.340.5 49,914 1.11 5.7 1.78 68,001 1.02 4.2 2.23


The Blackwater West Property is directly north of Silver Quest Resources Ltd. 3Tsproject (see Figure 3). Silver Quest Resources Ltd. reports on their web site "The 3TsProject covers an epithermal quartz-carbonate vein system within which more than 12individual mineralized veins, ranging up to 650 metres in strike length and up to 15metres in true width, have been identified to date. The 3Ts Project is locatedapproximately 120 kilometres southwest of Vanderhoof and consists of ten mineralclaims covering approximately 3,164 hectares. A total of 1,645 metres of diamonddrilling has been completed in ten holes, with assay results pending.

Three of these holes were drilled in the Ted Vein area. The best hole from previousdrilling on the Ted Vein intersected 8.88 g/t gold and 393.6 g/t silver across a true width

of 15.4 metres. The remaining seven holes were drilled in the area between the MintVein and the Ringer Target. Previous diamond drill holes on the Mint Vein structureintersected up to 8.08 g/t gold and 80.4 g/t silver across 2.0 metres. Previous resultsfrom the Ringer Zone included eight samples collected from boulders that returned anaverage of 19 g/t gold and 140 g/t silver. Six new mineralized veins, ranging from 4 to117 centimetres wide, were intersected in the latest seven drill holes."


The Blackwater East property is directly west of TTM Resources Inc.s ChuMolybdenum deposit (Figure 3).On May 21, 2011 TTM Resources announced it had

received an updated Resource Estimate from Giroux Consultants Inc., of Vancouver,B.C. The revised estimate was calculated by incorporating the 2009 and 2010 drillingcampaigns (13 drill holes totalling 5,894 meters) that occurred subsequent to theprevious resource estimate announced in the Companys Feb 27, 2009 press release,which incorporated all holes drilled to the end of 2008. The Mineral Resource Estimate atthe Companys 100% owned Chu Molybdenum project using a 0.04% Mo cut-off nowstands at: Measured 159 million tonnes at an average grade of 0.061% Mo and 0.035%Cu (214 million lbs. molybdenum, 122.8 million lbs. copper), Indicated 211 million tonnes


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at an average grade of 0.057% Mo and 0.035% Cu (265.9 million lbs. molybdenum, 163million lbs. copper), and Inferred 256 million tonnes at an average grade of 0.052% Moand 0.036% Cu (294.2 million lbs. molybdenum, 203 million lbs. copper). The Measuredplus Indicated resource totals 370 million tonnes at a grade of 0.059% Mo and 0.035%Cu (482.2 million lbs. of molybdenum, 286.1 million lbs. copper). The Measured andIndicated resource tonnage has increased by 18% while the contained molybdenum and

copper have increased by 16% and 12% respectively over the previous estimate."


15 MINERAL PROCESSING & METALLURGICALTESTING

To the best of the authors knowledge, there has been no metallurgical testing done onmaterial from the Blackwater East and West Properties.

16 MINERAL RESOURCE ESTIMATES

This is an early-stage exploration project and to date no resource or reserves have beenestablished.

17 OTHER RELEVANT DATA AND INFORMATION

The author is unaware of any further information and data relevant to the Blackwater

East and West Properties.


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18 INTERPRETATION AND CONCLUSIONS

In 2010 and 2011, RJK Explorations Ltd. carried out an exploration program on the

Blackwater East and West Properties. The program was a multi-phase program thatincluded: 1,584.1 line kilometres of Fugro DIGHEM airborne survey, a 1,550 linekilometre ZTEM helicopter EM survey, 22.1 line kilometres of ground inducedpolarization on three grids, and a ground program that consisted of 145 soil samples and56 rock samples on the properties.

The DIGHEM survey identified 12 targets are all magnetic lows, possibly due toalteration. Five targets were ranked medium and two were ranked high, TZW-6 and TZE-3.

The Blackwater East Block, ZTEM features of interest (Anomalies A-E) were identified.The Blackwater East Block has an undifferentiated conductivity (A), suggesting a porousvolcanic or sedimentary unit, juxtaposed to a more resistive unit, possibly an intrusive orfelsite, to the west. The latter is characterized by a central cluster of circular resistivezones (D-E-F) surrounded by more conductive rocks (B-C) resembling a central,potassic altered volcanic epithermal center and surrounding clay-chlorite altered halo.

Over the Blackwater West Block, ZTEM features were defined (Anomalies H-M). Twoconductive trends (H-I) characterize the block, with the larger one (I) reflecting a majorconductive E-W trending unit in the center of the grid. The outer edges of the conductiveunits also feature interesting circular, resistive zones (J-M). Areas of interest are outlinedfrom the ZTEM survey results and locations for potential targets or zones of interest,both resistive (1st priority) and conductive (2nd priority).

The most prominent chargeability anomalies occur on the East 1 grid where four areasof interest are outlined based on the occurrences of chargeability anomaliesaccompanied by resistive cap/plug and magnetic lineaments. The four geophysicaltarget areas surround a circular magnetic high that is situated in the western portion ofthe grid.

The 3D inversion shows on the East 2 Grid, the resistivity changes between the western(high) and eastern (low) portions of the grid. The resistivity transition line seems tocoincide with the north-northwest trending magnetic contact lineament. This maysuggest a rock type change across the contact. The large south western cornerchargeability high (C1-9000) is situated immediately north of a circular magnetic highand coincides with a large resistivity high. It is possibly related to lithology or alterationsuch as silicification. The chargeability anomalies in the eastern edge area (C1-9300)

are weak. However, they appear to follow a north-northeast trend and are accompaniedby resistive caps. The area seems to be alteration related.

It is the opinion of the author that the favourable geological setting and results of thework done to date show that the Blackwater East and West Properties have the potentialto host economic mineral deposits. The Blackwater East and West Properties arecurrently at the drill ready stage.


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The author is of the opinion that the present study has met its original objectives andprovides the basis for listing on the TSX Venture Exchange.

19 RECOMMENDATIONS

In order to evaluate the economic potential of the Blackwater East and West Properties,a drill program is warranted. Currently, RJK Explorations Ltd. has developed 9 potentialdrill targets on the Blackwater East property (Figure 16) and 2 potential drill targets onthe Blackwater West Property (Figure 19). The current recommendation is to drill testthe Blackwater East property and then evaluate the results.

20 PROPOSED PROGRAMS & BUDGET

The following budget covers an initial program of drilling on the Blackwater East Property

Phase 1: Budget - Blackwater East

Item No. Of Units Rate Total

Bond and Permitting 1 $10,000$10,000

Exploration Planning 10 $500 $5,000

Diamond Drilling (9 drill holes) 2000 $150 $300,000

Geological Fieldwork (1 geologists) 40 $600 $24,000

Core Cutter 40 $300 $12,000

Assaying rock samples 300 $100 $30,000

Excavator for Drilling 30 $1,200 $36,000

Accommodation and Meals (Man days) 140 $200 $28,000

Vehicles : 2 40 $200 $8,000

ATV Rentals 40 $100 $4,000

Supplies and Rentals Lump Sum $10,000 $10,000

Reports Lump Sum $20,000 $20,000

Subtotal $487,000

Contingency 10% $48,000

TOTAL (CANADIAN DOLLARS) $535,000


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21 REFERENCES

Anderson, R.G. and Thorkelson, D.J. (1990): Mesozoic Stratigraphy and Setting for some Mineral Depositsin Iskut River Map Area, Northwestern British Columbia; in Current Research, Part E, Geological Survey of

Canada, Paper 90-1E, pages 131-139.

Andrew, K.P.E. (1988): Geology and Genesis of the Wolf Precious Metal Epithermal Prospect and theCapoose Base and Precious Metal Porphyry-style Prospect, Capoose Lake Area, Central British Columbia;unpublished M.Sc. thesis, The University of British Columbia, 334 pages.

Armstrong, J.E. (1949): Fort St. James Map-area, Cassiar and Coast Districts, British Columbia; GeologicalSurvey of Canada, Memoir 252, 210 pages.

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ni 43 101 technical report black water east west

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