Exhibit 10.2
NOVEMBER 2011
SUMMARY REPORT
RED STREAK PROPERTY
NIMPKISH LAKE, BC
TABLE OF CONTENTS
PAGE
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EXECUTIVE SUMMARY 4
1.0 INTRODUCTION 5
1.1 TERMS OF REFERENCE 5
1.2 LOCATION AND ACCESS 5
1.3 TOPOGRAPHY, CLIMATE, VEGETATION 6
1.4 PROPERTY STATUS 7
1.5 PREVIOUS WORK 8
2.0 GEOLOGICAL OVERVIEW 8
2.1 REGIONAL GEOLOGY AND MINERALIZATION 10
2.2 RED STREAK PROPERTY GEOLOGY AND MINERALIZATION 12
3.0 CONCLUSIONS AND RECOMMENDATIONS 15
4.0 REFERENCES 16
2
FIGURES
1. RED STREAK PROPERTY BC LOCATION MAP 5
2. RED STREAK PROPERTY REGIONAL LOCATION MAP 6
3. RED STREAK PROPERTY LOCATION MAP 7
4. REGIONAL GEOLOGY MAP OF THE NIMPKISH AREA 9
5. RED STREAK AREA STRATIGRAPHIC COLUMN 11
6. RED STREAK PROPERTY MAP 12
7. RED STREAK JASPER PHOTO 13
8. LOWER KINMAN CREEK VALLEY PHOTO 14
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EXECUTIVE SUMMARY
1. The Red Streak Property is located near Nimpkish Lake, Northern Vancouver
Island, about 300 kilometers northwest of Vancouver, BC. The Red Streak
Property comprises one MTO cell claim totaling 412.508 hectares. The
original Red Streak claim was staked on August 14, 2002.
2. The Red Streak Property was staked to cover a lapidary-quality red jasper
occurrence. The claims were recently expanded to cover a large area with
skarn and porphyry copper-molybdenum deposit potential, similar to the
Merry Widow Mine, the Nimpkish Iron Mine, and the Island Copper Mine.
3. The Nimpkish Map-Area is underlain by a 5 to 7 km thick stratigraphic
sequence of Upper Triassic to Lower Jurassic Vancouver Group sedimentary
and volcanic rocks. The sequence is composed of Upper Triassic Karmutsen
Formation marine mafic volcanics, overlain by Quatsino Formation limestone
and marble, Upper Triassic to lower Jurassic Parson's Bay Formation
calcareous sediments and tuffs, succeeded by the dominantly andesitic Lower
Jurassic Bonanza Group Volcanics. All of these units have been intruded and
metamorphosed by a large Jurassic granodiorite pluton called the Nimpkish
Batholith.
Skarn-type mineralization in the Nimpkish area is most often found along
the contact of limestone and intrusive rocks, in limestone-hosted sulphide-
rich mantos and replacements, and at the "triple point" contact between the
Karmutsen and Quatsino formations and intrusives. Gem-lapidary grade red
jasper occurs in shear-veins within calcareous sediments and overlying
Bonanza Volcanics. There is geological potential for the area to contain a
porphyry copper/molybdenum deposit similar in characteristics to the large
Island Copper Mine located near Port Hardy.
4. A proposed work program includes prospecting, geological mapping and
sampling, construction of a control grid, soil and silt sampling,
magnetometer and VLF-EM geophysical surveys, and trenching. Based on a
compilation of these results, a diamond drill program will be designed to
explore and define the potential resources.
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1.0 INTRODUCTION
1.1 TERMS OF REFERENCE
This summary report is a compilation of geological data currently available
regarding the Red Streak Property located near Nimpkish Lake, Vancouver
Island, BC. Historical information from Laird Exploration Ltd. files, the
BC Department of Mines, the Geological Survey of Canada, and other sources
has been reviewed and used where pertinent.
[MAP SHOWING PROPERTY BC LOCATION]
FIG. 1 RED STREAK PROPERTY BC LOCATION MAP
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1.2 LOCATION AND ACCESS
The Red Streak Property is located near Nimpkish Lake, BC; about 35 minutes
drive south of the town of Port McNeill on northern Vancouver Island. The
property covers a recently logged area in the vicinity of
Kinman Creek, which flows westward into Nimpkish Lake. The property is
accessible to 4 wheel drive vehicles from the Island Highway via Canfor's
Kinman Creek logging road and by recent spurs which cross most of the
claims. The property contains strong attributes toward cost-effective
property development, including easy access to road, rail, and deep-water
transportation facilities.
[MAP SHOWING PROPERTY REGIONAL LOCATION]
FIG. 2 RED STREAK PROPERTY REGIONAL LOCATION MAP
1.3 TOPOGRAPHY, CLIMATE, VEGETATION
The climate of the Nimpkish area is mild and wet, with about 400 cm of
precipitation falling annually, mostly as rain. Snowfall covers the higher
areas from November to April, but seldom persists at lower elevations for
more than a few weeks in mid-winter. First-growth conifer forest formerly
covered all of the claims, but recent clear-cut logging has exposed more
than half the ground covered by the claims. Karst topography and cave
systems are commonly developed in the limestone near watercourses.
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[MAP SHOWING PROPERTY LOCATION]
FIG. 3 RED STREAK PROPERTY LOCATION MAP
1.4 PROPERTY STATUS
The Red Streak Property currently consists of 412.51 hectares of mineral
title, in good standing until August 7, 2007. The original 2-post Red
Streak claim was staked on August 14, 2002.
BC Tenure # Work Due Date Staking Date Total Area (Ha)
----------- ------------- ------------ ---------------
928870 Nov. 10, 2012 Nov. 10, 2011 412.51
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1.5 PREVIOUS WORK
The Nimpkish Lake area has been explored for mineral deposits since the
early 1800's. The Nimpkish Iron Mine on the Nimpkish River was discovered
in the late 1800's, followed by the Kinman Creek Copper and Storey Creek or
Smith Copper deposits in the 1920's. After an initial flurry of development
including short underground workings, numerous surface trenches, and
diamond drilling in the late 1920's and early 1930's, activity in the area
slowed greatly. Exploration for magnetite in the 1950's and 1960's brought
about a resurgence of exploration. The Nimpkish Iron Mine was put into
production from 1959 to 1963, producing 1.275 million tonnes of iron from
2.17 million tonnes of ore.
Exploration in the 1980's and 1990's concentrated on copper and gold
skarns. Prospecting by James Laird in 1988 - 1990 located several promising
skarn deposits and a large resource of high-grade white marble on what is
now the CBL Property. Initial prospecting was also done over parts the
ground covered by the Red Streak Property. A large area of highly altered
rusty sediments intruded by granitic rocks in the lower Kinman Creek valley
was found to contain widespread small deposits of pyrite, chalcopyrite,
sphalerite and galena (BC AR#20092, 1990).
The Red Streak Jasper occurrence was located and staked in the summer of
2002 and has produced a limited amount (<1 tonne) of commercial
lapidary-grade red jasper for test marketing. The Nimpkish area has more
recently been the subject of several geological assessment reports and a
2005 BC GSB mapping project.
2.0 NIMPKISH AREA GEOLOGICAL OVERVIEW
The Nimpkish map-area is underlain by a 5 to 7 km thick stratigraphic
sequence of Upper Triassic to Lower Jurassic Vancouver Group sedimentary
and volcanic rocks. Mineralization in this stratigraphy generally occurs as
skarn-type metal deposits forming in limestone or marble at or near the
contact with younger intrusive granitic bodies.
Historically, skarn-type deposits on Vancouver Island have been
economically important producers of base and precious metals, and several
past mines have been in the multi-million tonne class. Marble deposits of
good colour and purity are also presently being mined at several locations
on Vancouver and Texada Islands.
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[MAP SHOWING REGIONAL GEOLOGY OF THE NIMPKISH AREA]
FIG. 4 NIMPKISH AREA GEOLOGICAL MAP
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2.1 REGIONAL GEOLOGY AND MINERALIZATION
The Nimpkish map area is underlain by a 5 to 7 km thick stratigraphic
sequence of Upper Triassic to Lower Jurassic Vancouver Group sedimentary
and volcanic rocks. The sequence is composed of Upper Triassic Karmutsen
Formation marine mafic volcanics, overlain by Quatsino Formation
limestone/marble, and Parson's Bay Formation calcareous sediments and
tuffs, succeeded by the dominantly andesitic Lower Jurassic Bonanza Group
Volcanics. All of these units have been intruded and metamorphosed by a
large Jurassic granodiorite pluton called the Nimpkish Batholith. Major
uplift, folding and faulting preceded and accompanied emplacement of the
multi-phase granitic rocks and related skarn mineralization. Marble
development is common in the Quatsino limestone proximal to intrusions.
Skarn-hosted mineralization in the Nimpkish area is most often found along
the contact of limestone and intrusive rocks (exoskarn); in
limestone-hosted sulphide-rich mantos and replacements; and at the "triple
point" contact between the Karmutsen and Quatsino formations and
intrusives. Numerous greenstone dikes and small intrusive stocks are found
in the limestone adjacent to the major contact zones, and commonly have a
"rind" or contact metasomatic zone of skarn minerals and sulphides.
The common skarn minerals present include; green grossularite and red-
brown andradite garnet, epidote, diopside, manganese alteration
(bustamite), calcite and quartz; with magnetite, chalcopyrite, sphalerite,
pyrite, pyrrhotite, limonite and occasionally marcasite, hematite, bornite,
covellite, tetrahedrite, galena, molybdenite, malachite, azurite, and
greenockite. Other minerals noted in the altered zones include; sericite,
biotite, k-feldspar and chlorite and occasionally red jasper, jade-green
serpentine, blue to lavender dumortierite, lemon-yellow vesuvianite, and
green to black tourmaline.
The Kinman and Smith properties have drill-inferred (non 43-101) mineral
resources containing copper, zinc, lead, silver and gold. On the Kinman
property, several small (~5000 tonnes) ore-grade massive sulphide deposits
have been found in limestone-hosted skarns and mantos near granitic
intrusions. Production from the Hazel open-pit on the Kinman property in
the 1970's amounted to about 3000 tonnes of high-grade copper-zinc ore with
some gold and silver credits.
The adjoining Smith Copper Property hosts inferred reserves of
approximately 85,000 tonnes of 12.5% zinc with copper, lead, silver and
minor gold values. The Smith deposit occurs as a stratiform
skarn/replacement of a regional volcanic/limestone formational contact
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proximal to a large granodiorite intrusion, the Noomas Pluton. Along the
Nimpkish River south of Nimpkish Lake, the Nimpkish Iron Mine magnetite
skarn produced 1.275 million tonnes of iron from 2.17 million tonnes of ore
in the 1950's and 1960's in a similar geological environment.
The recent discovery on the adjoining CBL property of several new well-
mineralized Zn, Cu, Fe skarns, and a large area of pure white marble shows
that significant surface exploration potential still exists in the Nimpkish
area.
[MAP OF THE RED STREAK AREA STRATIGRAPHIC COLUMN]
FIG. 5 RED STREAK AREA STRATIGRAPHIC COLUMN
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[MAP SHOWING RED STREAK PROPERTY]
FIG. 6 RED STREAK PROPERTY MAP
2.2 RED STREAK PROPERTY GEOLOGY AND MINERALIZATION
The main rock units exposed on the Red Streak Property are Parson's Bay
Formation sediments and volcaniclastics, granodiorite of the Island
Intrusions Plutonic Suite, and a limited area of Karmutsen Formation Basalt
along the eastern edge of the property.
The Parson's Bay Formation is a complex limestone and volcaniclastic
sediment package with rapid vertical and lateral changes in facies. Rock
types include black limestone, thin-bedded cherty tuffaceous limestone,
agglomeratic limestone, grey coralline limestone reefs, thin-bedded
calcareous argillite, and quartzite. Marine fossils are common in some
units and are usually well preserved. Andesite flows, sills, breccias and
dikes representing the earliest stages of the Bonanza Volcanics are locally
present. The Parson's Bay Formation is generally fractured and faulted
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near the numerous intrusives of the Island Intrusions, and is very rusty
due to abundant pyritization. Minor mineral deposits containing pyrite,
chalcopyrite, sphalerite, galena and tetrahedrite are common in shear zones
near the intrusives.
The intrusive plutonic suite regionally known as the Island Intrusions
includes stocks, sills, and dikes of granodiorite, with some diorite,
quartz diorite, greenstone, hornblende-feldspar porphyry, felsite and
quartz- feldspar porphyry. The contact-altered granitic rocks can host
minor occurrences of pyrite, chalcopyrite and molybdenite in endoskarn
zones, vein systems, shears, breccias and disseminations.
The limited area of Karmutsen basalt on the eastern boundary was found to
contain minor amounts of pyrite, magnetite and chalcopyrite.
[PHOTO SHOWING RED STREAK JASPER]
FIG. 7 RED STREAK JASPER
The original mineral deposit located on the Red Streak Property is a
lapidary-quality red jasper deposit located close to a major logging road.
Three separate jasper-bearing shear zones cross an andesite flow or sill.
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The jasper has been hand-trenched and test sampled, removing about one
tonne of material for test-marketing. The jasper is a striking bright red
colour with patches of pyrite and green epidote. It has been successfully
fashioned into cabochons, polished slabs and tumbled stones by various
lapidary shops and mineral clubs. An approximate price the raw material
sold for in <1 kg.-sized pieces was $5.00/kg. Given the visible trenched
length of the known deposits and assuming a similar depth and width, in
excess of ten tonnes of jasper is approximated to be present.
On the north side of Kinman Creek along the access road, a one-metre wide
shear-hosted deposit containing sphalerite, galena, chalcopyrite and
tetrahedrite has been located. Assays from this zone give values up to 38
ppm silver, 9.74% zinc, 4.34% lead, 3.51% copper, 388 ppm molybdenum, and
811 ppm cadmium.
The rock units present in the lower Kinman Creek area are highly altered
and pyritized by stocks and dikes of granodiorite. The style of
mineralization present is possibly related to a porphyritic phase of the
Nimpkish intrusion, which is similar to the geological setting of the
Island Copper Mine located near Port Hardy. The Island Copper Mine produced
approximately 345 million tonnes of ore from 1971 to 1994 having an average
head-grade of 0.41% copper, 0.017% molybdenum, 0.19 g/t gold and 1.4 g/t
silver.
[PHOTO SHOWING LOWER KINMAN CREEK VALLEY]
FIG 8 LOWER KINMAN CREEK VALLEY
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3.0 CONCLUSIONS AND RECOMMENDATIONS
A proposed work program includes reconnaissance prospecting, geological
mapping and rock sampling, construction of a control grid, EM and
magnetometer geophysical surveys, and soil geochemical sampling. The
anticipated costs of this development are presented in three results-
contingent stages.
PHASE 1 COST ESTIMATE
Consultant/Project Manager - 7 days @ $450/day $ 3,150.00
Geologist - 7 days @ $450/day $ 3,150.00
Sampler/Geological Assistant - 7 days @ $250/day $ 1,750.00
Truck rental - 1500 km @ 0.75/km inclusive $ 1,125.00
Rock assay samples - 50 @ $50.00 per sample $ 2,500.00
Soil and silt samples - 150 @ $25.00 per sample $ 3,750.00
BC Ferries $ 250.00
Per diem - 21 man-days @ $125.00 m/day $ 2,625.00
Misc. sampling and field supplies $ 500.00
Report and reproduction costs $ 1,500.00
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SUBTOTAL $ 14,000.00
Management Fee @ 15% $ 2,100.00
Contingency @ 10% $ 1,400.00
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TOTAL $ 17,500.00
GST@ 6% $ 1,050.00
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NET TOTAL $ 18,550.00
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PHASE 2
Detailed geological mapping and rock sampling,
grid construction, soil and silt geochemical survey,
IP and magnetometer surveys, establish drill and trenching
targets, four-man crew with supplies, transportation, report;
est.14 day program. $ 90,000.00
PHASE 3
1000 metres of diamond drilling @ $100.00 per metre, plus
geological supervision, assistant, supplies, transportation,
assays, report and other ancillary costs; est. 21 day program. $170,000.00
-----------
TOTAL $278,550.00
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4.0 REFERENCES
Gunning, H.C., (1930); Geology and Mineral Deposits of the Quatsino-
Nimpkish Area, Vancouver Island, BC. Geological Survey of Canada Summary
Report 1929 Part A, P. 94-107.
Laird, J.W., (1990); Geological Report on the Nimpkish Group. BC Assessment
Report #20,092. Laird Explorations Ltd. Prospector and Mining Exploration
Contractor provided prospecting notes on the geology of the Red Streak
Property area and Nimpkish Lake mining camp.
Nixon, G.T., Kelman, M.C., Stevenson, D., Stokes, L.A., Johnson, K.A.,
(2006); Preliminary Geology of the Nimpkish Map Area, Northern Vancouver
Island, BC. Geological Fieldwork 2005, Paper 2006-1 p.135- 152.
Thomson, Gregory R., Geoscientist & Consulting Geologist of 25 years
Provided notes and personal experience of mineral exploration and local
geology gained while employed as a consulting geologist in the Nimpkish
Lake region of BC.
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