Exhibit 10.2
SEPTEMBER 2011
SUMMARY REPORT
JERVIS INLET, BC
MENDELLA
PROPERTY
TABLE OF CONTENTS
Page
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EXECUTIVE SUMMARY 3
1.0 INTRODUCTION 4
1.1 Terms of Reference 4
1.2 Location and Access 5
1.3 Topography, Climate, Vegetation 5
1.4 Property Status 6
1.5 Previous Work 7
2.0 GEOLOGICAL OVERVIEW 7
2.1 Regional Geology 7
2.2 Property Geology 7
3.0 CONCLUSIONS AND RECOMMENDATIONS 11
4.0 REFERENCES 12
FIGURES
1. Mendella Property BC Location Map 4
2. Mendella Property Regional Location Map 5
3. Mendella Property Map 6
4. Regional Geology of the Mendella Property 8
5. Mendella Property Photo 9
6. Mendella Open-Cut and Old Wheelbarrow Photo 10
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EXECUTIVE SUMMARY
1. The Mendella Property is located on Jervis Inlet, about 100 km northwest of
Vancouver, BC. Access is by helicopter or float plane from Vancouver or
Sechelt, or by boat from Egmont or Pender Harbour on the Sechelt Peninsula.
The Mendella Property comprises one MTO mineral claim containing six cell
claim units totaling 124.551 hectares.
2. The Jervis Inlet area is underlain by a variety of Jurassic to Tertiary age
granitic intrusives of the Coast Plutonic Complex. The granitic rocks
intrude and metamorphose Jurassic to Lower Cretaceous argillaceous
sediments and andesitic to felsic volcanics of the Gambier Group.
3. The Gambier Group hosts the 60 million tonne Britannia volcanogenic copper,
zinc, lead, silver, gold deposit on Howe Sound about 80 km to the
southeast. The Mendella Property is predominantly underlain by
metamorphosed sediments and volcanics of the Gambier Group with zinc, lead,
silver and copper mineralization in a geological setting similar to the
Britannia Mine. Two areas of mineralization were explored by prospectors in
the early 1900's. More recent exploration includes geological mapping, rock
sampling and soil geochemistry by Newmont Exploration Ltd. and James Laird
in 1984. No other work has been recorded.
4. A two-phase proposed work program includes construction of a control grid,
geological mapping and rock sampling, additional silt geochemical sampling
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 Mendella Property located on Jervis Inlet, about 100 km
northwest of Vancouver, 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 MENDELLA PROPERTY BC LOCATION MAP
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[MAP SHOWING PROPERTY REGIONAL LOCATION]
FIG. 2 MENDELLA PROPERTY REGIONAL LOCATION MAP
1.2 LOCATION AND ACCESS
The Mendella Property is located on the shore of Jervis Inlet near Britain
River, approximately 100 km northwest of Vancouver, BC, and 65 km north of
Sechelt, BC. The area is presently accessible by boat, helicopter or float
plane from the Sechelt Peninsula or Powell River. Several campsite
locations with good water supplies can be found on the property. Supplies
and services are available in Egmont or Pender Harbour.
1.3 TOPOGRAPHY, CLIMATE, VEGETATION
The topography along Jervis Inlet extends from sea level to mountain peaks
in excess of 2000 metres elevation. The known showings and workings on the
Mendella Property are located between sea level and 250 metres of
elevation. The climate is typical of the West Coast of BC,
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generally mild and wet overall with significant snowfall in the winter
months. The summers are usually warm with less rainfall. Vegetation at
lower elevations is a dense growth of coniferous forest, with cedar, fir,
spruce, alder and maple trees.
[MAP SHOWING PROPERTY LOCATION]
FIG. 3 MENDELLA PROPERTY MAP
1.4 PROPERTY STATUS
The Mendella Property comprises one MTO mineral claim containing 6 cell
claim units totaling 124.551 hectares. The property was originally staked
March 18, 2006. The property was previously owned and explored by James
Laird during the 1980's.
BC Tenure # Work Due Date Staking Date Total Area (Ha.)
----------- ------------- ------------ ----------------
903289 Sept. 28, 2012 Sept. 28, 2011 124.551
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1.5 PREVIOUS WORK
The original Mendella Property was discovered in the early 1900's by
prospector Thomas Lillie of Pender Harbour. A series of open-cuts were
blasted to expose the mineralization, the largest was 5 metres long by 3
metres wide by 3 metres high. An average sample chipped across the face of
the cut by the District Mining Engineer in 1917 gave values of 6% zinc, 2%
lead and 0.8 oz/t silver.
The Mendella Property was re-staked in 1984 by James Laird and optioned to
Newmont Exploration Ltd. A Newmont fieldwork program done in 1984 included
prospecting, geological mapping, and soil geochemistry. No work has been
done since this time.
2.0 GEOLOGICAL OVERVIEW
2.1 REGIONAL GEOLOGY
The Upper Jervis Inlet area is underlain by a variety of Jurassic to
Tertiary granitic intrusives of the Coast Plutonic Complex. The granitic
rocks intrude and metamorphose Jurassic to Lower Cretaceous argillaceous
sediments and andesitic to felsic volcanics of the Gambier Group. The
Gambier Group hosts the 60 million tonne Britannia volcanogenic (VMS)
copper, zinc, lead, silver, gold deposit on Howe Sound about 80 km to the
southeast. The Mendella Property is predominantly underlain by
metamorphosed sediments and volcanics of the Gambier Group with zinc, lead,
silver and copper mineralization in a geological setting similar to the
Britannia Mine.
2.2 PROPERTY GEOLOGY
The property is underlain by Lower Cretaceous Gambier Group metamorphic
schists bounded between two distinct phases of the Coast Plutonic Complex.
The schists are banded in a northwest direction with steep westerly to
vertical dips. Approximate dimensions of the metamorphic rock package are
600 metres in width at the shoreline by
1400 metres along strike. Mineralization consists of massive and
disseminated pyrite, pyrrhotite, marcasite, sphalerite, galena and
chalcopyrite associated with quartz-sericite alteration and intense
silicification.
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[MAP SHOWING REGIONAL GEOLOGY OF THE MENDELLA PROPERTY]
FIG. 4 REGIONAL GEOLOGY OF THE MENDELLA PROPERTY
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[PHOTO SHOWING THE MENDELLA PROPERTY]
FIG. 5 MENDELLA PROPERTY
The work by Newmont included detailed geological mapping, which divided the
metamorphic rocks into a series of units within the metamorphic package.
The showings of lead and zinc on the shoreline and at the Mendella
open-cuts at 250 metres elevation were inferred to be hosted by the same
units, thereby establishing significant strike length.
The geochemical survey showed corresponding zinc, lead, silver and copper
anomalies persisting and strengthening uphill from the known showings. This
area is largely unexplored. Rock chip sample values were low. It is likely
that extensive oxidization of the faces of the open-cuts leached metal
values and would require blasting to take a fresh sample. No grab-samples
of the fresh massive sulphides on the dump were assayed.
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[PHOTO SHOWING MENDELLA OPEN-CUT AND OLD WHEELBARROW]
FIG. 6 MENDELLA OPEN-CUT AND OLD WHEELBARROW
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3.0 CONCLUSIONS AND RECOMMENDATIONS
A proposed work program includes GPS-controlled geological mapping,
blasting fresh rock samples of surface showings and trench workings,
construction of a control grid, and a geochemical sampling program. Based
on a compilation of these results, a diamond drill program will be designed
to explore and define the potential resources. The anticipated costs of
this development are presented in two results-contingent stages.
PHASE 1
Reconnaissance geological mapping, prospecting, rock and geochemical sampling.
Five days on site, two days travel, three days report preparation.
Geologist -10 days @ $450/day $ 4,500.00
Consultant/Project Manager - 10 days @ $450/day $ 4,500.00
Blaster/Geological Assistant - 7 days @ $300/day $ 2,100.00
Truck rental - 1000 km @ 0.75/km inclusive $ 750.00
Boat Rental with fuel - 7 day@ $150.00/day $ 1,050.00
Rock samples - 50 @ $50.00 per sample $ 2,500.00
Geochemical samples - 100 @ $30.00 per sample $ 3,000.00
BC Ferries $ 300.00
Per Diem (with camp rental) - 21 man-days @ $125.00/day $ 2,625.00
Misc. sampling and field supplies $ 500.00
Report and reproduction costs $ 2,000.00
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SUBTOTAL $ 23,825.00
Management Fee @ 15% $ 3,573.75
Contingency @ 10% $ 2,383.00
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TOTAL $ 29,781.75
GST @ 6% $ 1,786.90
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NET TOTAL $ 31,568.65
PHASE 2
1000 metres of diamond drilling @ 100.00 per metre, plus
geological supervision, camp and supplies, transportation,
assays, report and other ancillary costs. $230,000.00
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TOTAL $261,568.65
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4.0 REFERENCES
BC Department of Mines Annual Report for 1917, pages 281, 282. Mendella
Group.
Boyle, H. C. (1984) Geology and Geochemistry of the Mendella Claim Group,
BC Assessment Report #13626
James Laird, Laird Explorations Ltd. Prospector and Mining Exploration
Contractor for more than 25 years, provided prospecting notes on Lausmann
Creek placer gold 1981, 1984 and 1992. Provided notes and photographs on
the geology of the Jervis Inlet project area and exploration of the Canyon
Gold Property area.
Gregory R. Thomson, Geoscientist & Consulting Geologist of 25 years
Provided notes and personal experience of mineral exploration and local
geology gained while working in the Coastal region of in the Province of
British Columbia.
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