To:

Green Valley Mine Incorporated                                                  November 14, 2003   

and Lakewood Mining Co. Ltd

1756-246th St.

Langley, B.C., V2Z 1G4

Phone: 604-514-0041

Fax: 604-514-9702

 

Preliminary Report: Diamond Drilling on the Monarch Zone within the Wood Group Claims, near Kamloops, B.C.

 

Green Valley Mining Incorporated recently completed a drilling program on its Woods Group Property southwest of Kamloops, B.C.  From late September to early November of 2003 the Company drilled a total of 8 diamond drill holes with a combined overall length of 3,102.7metres/10,177feet.

 

This drilling program was carried out in order to investigate potential gold-copper mineralization across parts of the property that have been recently identified as consisting of both elevated geochemical MMI values and geophysical IP anomalies.

 

Induced Polarization chargeability anomalies were discovered on the Monarch Zone of the Wood Group Property by Geotronics Surveys Ltd. in late 2002 and early 2003 (Geophysical Report on IP and Resistivity Surveys on the Monarch Zone, David G. Mark, P.Geo, August 27, 2003).  During these surveys two strong chargeability anomalies (A and B), and a weaker IP anomaly 200 metres southeast of anomaly B, were identified by Mr. David Mark, P.Geo. (see Lakewood Mining Ltd. News Release September 16 2003).  The geophysical field data reported by the Company demonstrated that IP anomaly A correlates with strong anomalous gold, silver and copper MMI soil geochemistry (important cobalt, palladium and nickel values are also noted).  As well, IP chargeability anomaly B correlates with strong gold and nickel MMI soil anomalies.  It was recommended by Mr. D. Mark, P.Geo. that in order to investigate the potential for gold-copper mineralization in these parts of the property approximately 2150 metres of diamond drilling be carried out by the Company.

 

This drilling program has revealed that the property is underlain by Nicola Group Volcanic rocks (dacites, andesites and basalts—flows, breccias, agglomerates and tuff/lapilli tuff), and cross-cut by porphyritic dykes (possibly Sugarloaf phase intrusions).  Structurally the rock units have all been well-faulted and brecciated indicating that numerous tectonic events have occurred in the region.  All rocks intersected through drilling exhibit variable degrees of alteration—weak to very-strong pervasive clay-calcite-chlorite-sericite-hematite-quartz+/-albite+/-K-spar.  Although no significant metal-bearing mineralization was recorded in drill-core, drilling did intersect numerous zones of rock displaying strong pervasive alteration, fracturing and hydrothermal brecciation, with 1-3% pyrite locally. The results of this drilling program have not adequately explained, nor resolved, all of the IP chargeability anomalies or the elevated MMI metal values identified on the property.

Diamond drill holes 03-01, 03-02 and 03-03 were drilled to test the northwest portion of IP anomaly A; and area with elevated cobalt, copper, silver and gold values in MMI soil geochemistry.  All three drill-holes intersected zones of albite, K-feldspar, chlorite and quartz alteration, veining and hydrothermal brecciation.  Locally these zones contain up to 1% disseminated and fractured-filled pyrite.  DDH-03-03 encountered altered Quartz-Hornblende-Feldspar Porphyritic dykes (possibly Sugarloaf phase intrusions) cross-cutting well-altered Nicola Group volcanic rocks.  These dykes also contained trace amounts of pyrite.

 

Hole 04 was drilled on Line 2000E to test an area containing anomalous copper, cobalt, silver and nickel MMI geochemistry.  The hole locally intersected up to 2% pyrite in highly fractured and altered volcanic rocks and in cross-cutting intrusions.  Alteration and pyrite mineralization in Nicola Group volcanics was greatest adjacent to dyke contacts and where faulting/brecciation is strongest.

 

Holes 03-05 and 03-06 were drilled to investigate a portion of IP anomaly B along line1600E. This area of drilling also returned elevated MMI geochemistry values for gold, silver and palladium.  The upper 35 metres of DDH-03-05 contained strongly altered and brecciated volcanic rocks cross-cut by quartz-carbonate-pyrite veining.  From 375-421 metres DDH-03-06 intersected a strongly altered intrusive dyke containing 1-4 % pyrite (replacing mafics and disseminated along quartz-carbonate veinlets).  This unit was sampled and assayed but returned insignificant metal values.  This mineralized intrusion may be responsible for the southeast portion of IP anomaly B.  The northwest part of the anomaly along Line 1500E was not drilled during this program.

 

Holes 03-07 and 03-08 were drilled to explore an IP anomaly located along Line 2000E in an area with stronger copper and gold MMI geochemistry.  DDH-03-07 intersected quartz-feldspar porphyry dykes containing trace disseminated pyrite locally. Trace pyrite also occurs within the wall rock of well-altered volcanic units near intrusion contacts.  DDH-03-08 contains zones of strong quartz-pyrite+/-albite+/-K-Spar alteration/veining, and abundant chlorite-calcite-pyrite (1-2% average) veinlets and alteration zones.  As well, ‘pre-mineralized’ volcanic breccia fragments locally contain trace chalcopyrite and pyrite.  Down section in hole 03-08 small, well-altered quartz-feldspar porphyry dykes with trace pyrite were intersected.  Note: due to technical difficulties DDH-03-08 was abandoned before reaching and satisfactorily testing the IP chargeability anomaly at depth.

 

 

 

 

 

 

 

 

 

 

Fall 2003 drilling on the Woods Group Property is summarized in the table below:

 

DDH No.                     Length (metres/feet)             

03-01                           285.7/937

03-02                           364.9/1197

03-03                           413.7/1357

03-04                           492.9/1617

03-05                           257.5/845

03-06                           444.2/1457               

03-07                           398.5/1307

03-08                           445.1/1460   

Total             3,102.7/10,177

 

Three main areas of potential mineralization on the Monarch Zone that were not fully explored during this drilling program are as follows: the south-southeast portion of IP Anomaly A on Lines 2400E and 2500E between 5000N and 5350N (this area also contains elevated gold, silver, and palladium values in soils), and the northwest portion of IP Anomaly B on Line 1500E between 4900N and 5100N (an area with elevated copper, cobalt, silver and nickel). Note that both of these zones remain open as they are on the outer boundaries of the geophysical and geochemical survey work carried out by the Company.  The third zone would test the mineral potential of the southeast portion of IP Anomaly B between 4900N to 5100N on Lines 1800E and 1900E.  Two drill-holes were recommended for this zone by Mr.David Mark, P.Geo, but at the end of this drill program had remained undrilled.   

 

It should be noted that in order to investigate the deep-seated nature of the IP anomalies and any related potential mineralization that underlying the property longer, angled drill-holes should be considered in any future drilling program. 

 

During the 2003 soil survey Line 1600E (between 5000N-5400N) was found to contain strong copper, cobalt, gold, silver and palladium values, but Lines 1500E and 1400E to the northwest were not soil sampled.  With the aim of identifying future drill targets further geochemical sampling along Lines 1400E and 1300E would be beneficial. This would assist in understanding the nature and distribution of the metals in soils on this part of the property.

 

 

From:

Robin J. Whiteaker, B.Sc.

Geologist

Whiteaker Geoscience

Kamloops, B.C.