Geological & Financial                                                                          1500 Bishop St.

            Consulting Services                                                                               White Rock, BC V4B 3K7

                                                                                                                                                                Tel/Fax 604-542-2691N

November 18, 2001

 

Osvaldo Contini, Director

Lakewood Explorations Inc.

2245 West 13th Avenue
Vancouver, British Columbia
V6K 2S4

Re: Beaton Claims, Kamloops British Columbia

 

Dear Sir,

 

I have reviewed the data with respects to the Mobile Metal Ion (MMI) survey conducted on your company’s claims and its relationship to the Geophysical Report prepared by Robert B. K. Shives, and herewith present a brief analysis with respects to continued exploration of the property.

 

The new and unique MMI geochemical technique is gaining more respect as an efficient and valid exploration tool in mineral exploration. Developed in Australia, it is based on the theory that metallic ions from a buried source are continually being “shed” and will migrate to the surface where they will be weakly bounded to the surface soils. By using a weak solution these “migratory ions” can be extracted and measured and in theory will be directly over the source. Simplistically, it is much like the theory that is employed by using trained dogs to “sniff out” and locate avalanche victims immediately after they have been buried often under metres of freshly “deposited” snow.

 

The developers of the technique have developed “packages” of extractions that are specific to various types of deposits. In the case of the Beaton Claims, the Au-Co-Ni-Pd-Ag extraction package is most consistent with region’s deposit type (Afton’s Copper, gold silver mine which has now been found to contain both nickel and palladium). In analysis the total package is analysed and compared to a relative background for each element. The “number of times background” for each element is then added – “stacked” together to give a profile of each sample site. In this analysis, I have selected the 1^st Quartile as the background and prepared histograms for each line and analysis.

 

In general, the Au-Co-Ni-Pd-Ag extraction package has worked quite well as expected and the Cu-Zn-Cd-Pb extraction package was noticeably poor in definition of anomalies (This is to be expected as that latter package was designed for volcanic or sedex type massive sulphide terrains which are not ubiquitous to the areal geology of the Beaton Claims).

 

Beaton Claims MMI Survey Results

 

The limited MMI survey has identified discreet anomalies on each line that form consistent line to line anomalies that are concordant to the geological and interpreted geophysical trend over the grid area.

 

Specifically, four and possibly five discreet parallel anomalous trends can be interpreted across the grid based on using a “15 times background stacked value” as a cutoff with respects to an anomaly and with a report of “10 times background staked value” to assist in analysis. Of significance is that these parallel anomalous trends are juxtaposed to the interpreted favourable geophysical area, which is very encouraging.

 

Of particular observation, one trend is intimately related to three of the five geophysical anomaly sites selected by Shives in his report (Anomaly E – Line 1000; Anomaly A – Line 500; and Anomaly C – Line 0). The two other geophysical anomalies are associated with the flanking trends the harbour some the highest “stacked value” results. The anomalous trends and associated geophysical anomalies are presented on Map 1.

 

The association of discreet MMI anomalies from the MMI technique package pertinent to the region’s “deposit type,” with the geophysical signature that Mr. Shives has identified as “distinguish[ing] the known deposits in the survey area” on the Beaton Claims enhances the property as a very attractive exploration target.

 

In my opinion, further exploration is warranted and required to fully evaluate the potential of the property hosting mineralization akin to that found throughout the area. That work should consist of more detailed MMI surveying and expanding the grid to cover more area by MMI work, as well as geophysical surveying to update and enhance the data base prior to drilling.

 

With respects to drilling, the area around Anomaly A (Trend 3) represents the most advantageous target outlined to date. The coincidence of the geophysical target and the MMI trend (Trend 3) with flanking MMI highs (some of the highest responses) enhances the potential that mineralization is related to these anomalies. Although further defining MMI and geophysics could be undertaken to better define the stratigraphy and dip of the zone, three 200 metre drill holes could be completed across this zone to give a subsurface charactor to the zones.

 

The drill sites recommended on an initial observation basis are: Line 500W 450N, drilled grid south at 45º for 200 metres; Same site, drilled grid North at 45º for 200 metres; and  Line 500W 700N, drilled grid south at 45º for 200 metres.

 

Respectfully submitted,

 

 

Laurence Stephenson B.Sc. M.B.A. P.Eng.

President

GeoFin Inc.

 

References:       Shives, Robert B. K.  “Helicopter Multisensor Geophysical Survey Results over the Beaton Claims, Kamloops, British Columbia” Lakewood Mine Inc. Internal Report, November, 2001.

 

              XRAL Laboratories Work order 065738; October 2001

 

              Beaton #1 and Beaton #2 MMI Survey Plot Internal Company report.

 

 

Attachments:             5 (Lines 0 - 1000W) Stacked Value Histograms

                        Map 1 – MMI Survey Analysis – Beaton Claims