WOOD GROUP

Kamloops, British Columbia

ANALYSIS AND INTERPRETATION OF A MULTISENSOR AIRBORNE SURVEY

The WOOD GROUP represents 60 square kilometers of mineral claims. 100% owned and operated on a 50/50 basis by Lakewood Mining Co. Ltd. and Green Valley Mine Incorporated. The property is located south of AFTON MINE on the western flank of the IRONMASK BATHOLITH (Figure 1).

The following information is based on results of a 1993 Airborne Geophysical Survey carried out by the Geological Survey of Canada over the Ironmask Batholith area of Kamloops, B.C. (GSC Open file 2817, 1994) The multisensor survey combined GAMMA RAY SPECTROMETRIC and MAGNETIC sensors, and was funded by Teck Exploration Limited.

The multisensor airborne survey covers a large portion of the WOOD GROUP. The data from this survey has been analyzed and interpreted for Lakewood and Green Valley by:

Robert B.K. Shives,

Head Radiation Geophysics Section,

Geological Survey of Canada,

Ottawa

Wood Group Property

Based on the 1993 airborne survey, more than a dozen eTh/K ratio lows appear within the Wood Group property (Figure 2). These lows are generally coincident with 11 zones of interest identified by the companies, and with a “MINFILE” occurrence west of zone D (small purple triangle in Figure 2). Due to positional inaccuracies, some of the zones may actually have a closer spatial relationship to the airborne eTh/K lows than depicted in the figures. However, for discussion purposes and future reference, ten airborne anomalies have been defined, and labeled 1 to 10 in Figure 3.

Previously flown regional aeromagnetic patterns show that the two northeastern Wood Group property corners flank the regional magnetic high associated with the Iron Mask Batholith, located north of the property. In these areas, Zones A, B and C, and Anomalies 2, 9 and 10 offer geophysical targets that are similar to the typical known Afton area Cu-Au porphyry deposits, where low eTh/K ratios coincide with flanking or nearby magnetic highs. The remaining portion of the Wood Group property overlies much lower amplitude variations in the aeromagnetic patterns. Although the magnetic values are subdued, patterns are still apparent and are better defined on the more detailed 1993 helicopterborne survey. These patterns may provide similar exploration guidance, for deposits related to, but more distal from the Batholith and should be considered during follow-up planning. If these potential deposits exist they will likely have different styles with different geophysical signatures than the Afton-style deposits.

The effect of topography (Figure 4) on the magnetic total field values must also be considered, as the effective distance from magnetic sources within the Nicola volcanic rocks increases, to the south. Thus, magnetic features at depth may generate less obvious airborne anomalies in the southern property areas.

A summary of the zones and the airborne anomalies is provided in Table 1, along with a crude prioritization based on geophysical characteristics. The priority indicated in the table is subjective, and is based on relative intensity of the airborne eTh/K ratio low combined with the relative intensity of associated residual magnetic total field anomaly. While this ranking may help prioritize follow-up, it must be combined with all available geological, geophysical, and geochemical information.

Table 1.

Summary of Zone (a) and Anomaly (b) characteristics, with prioritization based on airborne signature. See explanatory note at bottom of table.

(a) Zone	GRS	MAG	Zone Description*	Priority**
A	low eTh/K	on SE flank of strong local high, within regional “Ironmask” high	MMI: Au, Co, Cu IP: N and NW trends dd: fractures, dykes, alteration A-star is shown east of the actual zone location	1+
B	local eTh/K high	directly over weak E-W linear mag high extending from regional “Ironmask” high	EM conductors dd: alteration, Cu	1
C	mod. eTh/K		VLF: N-S conductor MMI: Cu, Au (east side)	1
D			IP: high Soil geochem: Cu dd: 3 holes west of IP, cut native Cu	2
E			MaxMin: 1 strong trend parallel to Cherry Creek + 2 weaker trends	2
F			dd: diatreme, volcanic breccia associated with native copper (0.33%/0.5m assays) over 275 m downhole, 10.5 m zone of quartz filled fractures with epidote alteration. IP: anomalous MMI: Au, Pd, Ag	3
G			IP + soil geochem dd: native Cu in several sections, epidote + silicification in intrusive margin.
H			Soil Cu anomalous (1100ppm)	1
I			Soil Cu anomalous	3
J			Soil Cu anomalous	3
K			Airborne eTh/K low	?
(b) Anomaly	GRS	MAG	Airborne Anomaly Notes	Priority**
1	Deep eTh/K low	Flanks weak high to west	This is probable location of Zone K	1
2	low eTh/K, mod. K,	diffuse, along broad NE arch		2
3	low eTh/K	on N-side of elliptical high	good combination of GRS and flank of circular mag feature.	1
4	low eTh/K	on W-side of elliptical high	coincidence with Zone H soil copper	1
5	Deep eTh/K low	Flanks circular high to east		2
6	low eTh/K	large low area	coincident Minfile occurrence, zones D and E near	2
7	low eTh/K	S. flank of weak E-W high		3
8	low eTh/K	N. flank of weak E-W high		3
9	Deep eTh/K low	flank mod.E-W high	Both lie along projection SW from Afton Mine, along Cherry Creek	1
10				1
* Zone descriptions derived from Summary Report on Target Areas, by David G. Mark, dated March 16, 2004, and Summary of Drilling in Zone G (Lyons Creek) by Rod Husband, Reynolds Geological, Nov. 1993 ** All zones/targets listed may warrant additional follow-up. The priority indicated is subjective, and is based on relative intensity of the airborne eTh/K ratio low combined with the relative intensity of associated residual magnetic total field anomaly. (Caution must be exercised when using the ratio data, which may generate false anomalies in areas where count rates are extremely low, such as over lakes or swamps.) While this ranking may help prioritize follow-up, it must be combined with all available geological, geophysical, and geochemical information.

Conclusion

Patterns resulting from a multisensor airborne geophysical survey in the area north of the Wood Group Property have been shown to provide direct vectoring to known, intrusion-related, economic mineralization. Similar patterns are evident within the Wood Group Property, suggesting potential for similar styles of intrusion-related mineralization, in areas identified as zones A, B, C and anomalies 9 and 10 particular.

Airborne equivalent thorium/potassium ratio lows elsewhere on the Property have also been identified. These lack the strong aeromagnetic signatures that typify the known Afton-style deposits, but do have several less intense aeromagnetic features, such as linear, circular and elliptical highs. The known presence of altered, mineralized intrusions, pyritic zones, extensive native copper in drill core, conductive zones, conventional and MMI soil geochemical anomalies (including base, precious metal and palladium anomalies) offer high potential for mineral exploration success on the Property. The airborne anomalies may provide significant initial focus for new exploration, using the suggested prioritization as a guide.

Local Wood Group Property Scale

Figure 1.

Wood Group property location. Heavy black square delineates location of airborne data figures, which follow.

Figure 2.

Airborne eTh/K patterns over Wood Group claims, with the company-defined zones indicated..

eThorium/Potassium

Figure 3.

Existing zones (lettered) and ten airborne anomalies (circles labeled 1 to 10) overlain onto the eTh/K map. Note that the close proximity of some of the zones with the airborne anomalies suggests they may be considered as the same areas. For example, Zone H = Anomaly 4; Zone D = Anomaly 6.

eThorium/Potassium

Figure 4.

Topography of the Wood Group claims.

Topographic Map