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MAP: French Gulch 7.5’ Quadrangle Lat: 40 o 43' 24” N Long: 122 o 41’ 19”W SUMMARY REPORT on the FRENCH GULCH PROPERTY French Gulch Mining District Shasta and Trinity Counties, California, USA for BULLION RIVER GOLD CORP Suite 200 - 3500 Lakeside Court Reno, NV, 89509 Tel: 775-324-4881 Fax: 775-324-7893 by Edward Harrington, B.Sc., P.Geo. RELIANCE GEOLOGICAL SERVICES INC 3476 Dartmoor Place Vancouver, BC, V5S 4G2 Tel: 604-437-9538 Fax: 604-437-9531 7 January 2007

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Page 1: SUMMARY REPORT FRENCH GULCH PROPERTYmore-ir.de/download/companies/bullion/Other Information... · MAP: French Gulch 7.5’ Quadrangle Lat: 40o 43' 24” N Long: 122o 41’ 19”W

MAP: French Gulch 7.5’ Quadrangle Lat: 40o 43' 24” N Long: 122o 41’ 19”W SUMMARY REPORT on the

FRENCH GULCH PROPERTY French Gulch Mining District

Shasta and Trinity Counties, California, USA

for

BULLION RIVER GOLD CORP Suite 200 - 3500 Lakeside Court

Reno, NV, 89509 Tel: 775-324-4881 Fax: 775-324-7893

by

Edward Harrington, B.Sc., P.Geo.

RELIANCE GEOLOGICAL SERVICES INC 3476 Dartmoor Place

Vancouver, BC, V5S 4G2 Tel: 604-437-9538 Fax: 604-437-9531

7 January 2007

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TABLE OF CONTENTS – French Gulch Summary Report SUMMARY ........................................................................................................................iv

4.0 INTRODUCTION and TERMS of REFERENCE ................................................... 1

5.0 DISCLAIMER.......................................................................................................... 1

6.0 PROPERTY DESCRIPTION and LOCATION....................................................... 2

7.0 ACCESSIBILITY, CLIMATE, RESOURCES, INFRASTRUCTURE, and PHYSIOGRAPHY................................................................................................... 6

8.0 HISTORY................................................................................................................ 8 8.1 Area History .................................................................................................. 8 8.2 Previous Work ............................................................................................ 10

9.0 GEOLOGICAL SETTING ..................................................................................... 16 9.1 Regional Geology ....................................................................................... 16 9.1.1 Regional Lithology ......................................................................... 17 9.1.2 Regional Structure ......................................................................... 19 9.2 Property Geology........................................................................................ 24 9.2.1 Lithology......................................................................................... 24 9.2.2 Alteration ........................................................................................ 25 9.2.3 Structure......................................................................................... 26

10.0 DEPOSIT TYPE.................................................................................................... 28

11.0 MINERALIZATION ............................................................................................... 30

12.0 EXPLORATION .................................................................................................... 32 12.1 Rock Chip Geochemical Sampling............................................................. 32 12.2 Geophysical Surveys.................................................................................. 34

13.0 DRILLING ............................................................................................................. 34 13.1 Surface Drilling ........................................................................................... 35 13.2 Underground Drilling................................................................................... 38

14.0 SAMPLING METHOD and APPROACH ............................................................. 44

15.0 SAMPLE PREPARATION, ANALYSIS, and SECURITY .................................... 45

16.0 DATA VERIFICATION.......................................................................................... 46

17.0 ADJACENT PROPERTIES .................................................................................. 46

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18.0 MINERAL PROCESSING and METALLURGICAL TESTING............................. 47

19.0 MINERAL RESOURCE and RESERVE ESTIMATES......................................... 50

20.0 OTHER RELAVANT DATA and INFORMATION ................................................ 50

21.0 INTERPRETATION and CONCLUSIONS........................................................... 51 21.1 Interpretation............................................................................................... 51 21.2 Conclusions ................................................................................................ 57

22.0 RECOMMENDATIONS........................................................................................ 58 22.1 Proposed Budget........................................................................................ 59

23.0 REFERENCES..................................................................................................... 60

GLOSSARY..................................................................................................................... 61

CERTIFICATE ................................................................................................................. 64

LIST OF FIGURES

Figure 1 Regional Setting............................................................................................. 4 Figure 2 Claim Locations and Topography.................................................................. 5 Figure 3 Drill Locations............................................................................................... 14 Figure 4 Rock Sampling............................................................................................. 15 Figure 5 Regional Geology ........................................................................................ 21 Figure 6 Regional Cross-section................................................................................ 22 Figure 7 Regional Geology Legend ........................................................................... 23 Figure 8 Property Geology ......................................................................................... 27 Figure 9 Underground – Plan View............................................................................ 40 Figure 10 Underground Drilling .................................................................................... 41 Figure 11 Lucky 7 Vein Long-section........................................................................... 42 Figure 12 Washington Vein Long-section.................................................................... 43 Figure 13 Mill Circuit..................................................................................................... 49

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LIST OF TABLES Table 1 Lion Trail Significant Results - Core............................................................. 10 Table 2 Lion Trail Significant Results - RC ............................................................... 11 Table 3 BLRV Significant Rock Sampling................................................................. 32 Table 4 Significant Drill Intervals BSR-1 to BSR-7 ................................................... 35 Table 5 Significant Drill Intervals BSR-8 to BSR-16 ................................................. 36 Table 6 Re-assay Results......................................................................................... 37 Table 7 Correlation Coefficients................................................................................ 37 Table 8 Smith Resource Estimate – Lucky 7 Vein ................................................... 50

LIST OF APPENDICES

APPENDIX A Claim Information APPENDIX B Historical Drilling APPENDIX C BLRV Surface Drilling APPENDIX D BLRV Underground Drilling APPENDIX E BLRV Rock Sampling APPENDIX F BLRV Quality Assurance Program

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SUMMARY

At the request of Bullion River Gold Corp (“BLRV”), this Summary Report has been

made on the French Gulch Property (the “Property”), French Gulch District, Shasta

and Trinity Counties, California, U.S.A. The report incorporates a summary of

previous and current work, an appraisal of the exploration potential of the Property,

and recommendations for further work. This report is based on a compilation and

analysis of published and unpublished geological and geophysical reports prepared

by cited persons, and field examinations by the writer, a “qualified person” within the

meaning of National Instrument 43-101 of the Canadian Securities Administrators.

French Gulch (Nevada) Mining Corp (FGNMC), a wholly owned subsidiary of Bullion

River Gold Corp, is the owner/operator of the French Gulch Property. The Property

comprises a contiguous block of 122 patented and unpatented lode mining claims

totaling approximately 1,881 acres (761.2 hectares (ha)).

The Property is located approximately 18 miles (30 km) west-northwest of Redding,

in the Trinity Range of the Southern Klamath Mountains of Northern California. The

Property is in rugged, hilly terrain with elevations ranging from 1,760 feet (535

meters) along the southeastern Property boundary to 3,650 feet (1,115 meters) along

the northern boundary.

The French Gulch Mine is located on a mix of BLM land and patented lode mining

claims, and is operating under a pre-existing Plan of Operations and Reclamation

Plan completed by the previous operator.

Placer gold was discovered in the French Gulch Mining District in 1848. In 1852,

lode gold was discovered in the Washington vein, which became the Washington

Mine, and was the district’s largest gold producer.

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District gold production from underground vein and placer mining is estimated at

between 0.8 and 1.5 million ounces, and the district is the richest gold-producing area

within the Klamath Mountains geological province.

The Washington Mine, with a series of six steeply dipping parallel gold mineralized

quartz veins, has been developed over six levels and a vertical range of

approximately 450 feet. The six veins form a system approximately 800 feet (244

meters) wide and 2,000 feet (610 meters) along strike. Production records for the

Washington Mine are incomplete; gold production is estimated at between 50,000

and 100,000 ounces.

From 1984 through 1995, the Washington-Niagara Mining Partnership carried out

exploration and mining programs in the area of the Washington Mine. In 1990, the

Lucky 7 vein was discovered. Production from the Lucky 7 is estimated at 8,800 tons

grading 1.13 opt (38.7 g/t) gold.

In 1995, Lion Trail Minerals acquired the Washington Mine property and carried out

exploration and mining activities until 1998 when the property was acquired by Lucky

Dollar LLC. Lucky Dollar carried out underground development, producing

approximately 120 tons grading 1.0 opt (34.3 g/t) gold from the Lucky 7 vein. In

2002, operations were halted due to permitting infractions. Attempts were made to

comply with regulatory requirements. BLRV acquired the Washington Mine property

in 2004.

The French Gulch Mining District is situated in northwestern California within the

Eastern Klamath Belt of the Klamath Mountains Geologic Province. The Klamath

Mountains area, which overlies a crustal subduction zone, represents the complex

junction of five geologic provinces.

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Within the Klamath Mountains Geologic Province, geologic terranes consist of

predominantly Mesozoic marine sediments added to the continental margin by sea-

floor spreading.

The French Gulch Mining District consists of Mississippian Bragdon Formation

sediments separated from the underlying Devonian Copely Greenstone by the east-

dipping Spring Creek thrust fault. Property geology shows a central area of Copley

Greenstone surrounded by younger Bragdon Formation lower unit sediments.

“Birdseye” porphyry and quartz porphyry occur along the eastern and southern edges

of the disconformable Copley-Bragdon contact. Irregular bodies of “birdseye”

porphyry extend for more than 3 miles (5 kilometers) east-west across the central

Property area On the northwest edge of the Copley Greenstone, a small body of tuff

and/or tuffaceous shale is exposed along a north-dipping thrust fault.

The target deposit on the French Gulch Property is mesothermal gold-bearing quartz

vein mineralization. There are four recognized types of mesothermal lode gold

mineralization within the French Gulch Property:

• Steeply dipping quartz and quartz-calcite veins in Bragdon Formation

rocks. This vein-type carries most of the gold;

• Gently to moderately dipping quartz and quartz-calcite veins along the

thrust faulted contact between the Bragdon Formation and the Copley

Greenstone;

• Veins in porphyry dikes and sills; and

• Steeply dipping quartz veins in Copley Greenstone.

Quartz veins carry free coarse gold, pyrite, arsenopyrite, galena, and sphalerite.

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Since 2004, BLRV has carried out exploration work consisting of rock sampling,

geological mapping, and surface and underground core drilling.

Rock sampling on the Property has consisted of 103 samples taken from outcrop,

float, mine dumps, and underground. Gold values range from trace to 18.375 opt

(630 g/t). Rock sample results generally show a positive correlation between gold,

silver, arsenic, lead, and zinc. Selenium and tellurium results show weaker

correlations with high gold and silver values.

Surface drilling comprises sixteen HQ-core holes totaling 14,109 feet (4,300 meters).

Surface drilling returned gold values ranging from trace to 1.97 opt over 2.3 feet.

The underground drilling program comprises sixty-four HQ-core holes totaling 31,830

feet (9,702 meters), and was designed to test the Washington, Dean, No2, and Lucky

7 vein systems. Lucky 7 drilling shows gold mineralization extending approximately

500 feet (152 meters) east-west along strike and ranging over 300 vertical feet (91

meters).

Drilling on the Washington vein shows gold mineralization to at least 450 feet (137

meters) below historic mine workings and extending to the west, 300 feet (91 meters)

beyond what was considered the western boundary of the historically mined ore

shoot.

BLRV has completed the start-up phase of mining operations at the French Gulch

Mine, consisting of overhauling, upgrading, and commissioning a 220 ton per day

(t/d) mill, setting up of an onsite geochemical lab to carry out mining grade control,

refurbishing existing underground workings, constructing a decline, and installing and

commissioning of a water treatment plant.

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A 1,183-foot long decline from surface has been constructed and is designed to

access both the Washington and Lucky 7 vein systems below historic working levels.

A cross-cut from the decline to the Lucky 7 vein 236 feet (72 meters) to the south is

currently underway: approximately 196 feet (60 meters) has been completed. When

access to the Lucky 7 has been completed, construction will begin on as many as six

production stopes to facilitate ore extraction.

Gold production began at the French Gulch Mine on November 10, 2006. Mill feed is

being taken from the Washington vein, through the rehabilitated I-Level adit, and from

the Lucky 7 vein, through the Robillard and rehabilitated 2630-Level adits.

The recommended work program consists of ground mag, surface rock sampling,

surface core drilling, and refurbishment of the historical underground workings at the

Niagara Mine so that underground core drilling and rock sampling can be carried out.

The cost of the recommended work program is US$1,100,000.

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4.0 INTRODUCTION and TERMS of REFERENCE

At the request of Bullion River Gold Corp (“BLRV”), this Summary Report has been

made on the French Gulch Property (the “Property”), French Gulch District, Shasta

and Trinity Counties, California, U.S.A. The report incorporates a summary of

previous and current work, an appraisal of the exploration potential of the Property,

and recommendations for further work.

This report is based on a compilation and analysis of published and unpublished

geological and geophysical reports prepared by cited persons, and field examinations

by the writer, a “qualified person” within the meaning of National Instrument 43-101 of

the Canadian Securities Administrators. The writer examined the geology and

infrastructure of the Property on November 29 and 30, 2006.

French Gulch (Nevada) Mining Corp (FGNMC), a wholly owned subsidiary of Bullion

River Gold Corp, is the owner/operator of the French Gulch Property.

Because the majority of the information about the property and surrounding areas is

given in American terms and units, this report will use American terminology to maintain

consistency. Metric units will be given as required for clarity.

5.0 DISCLAIMER

This report is based on a review of information provided by published and unpublished

geologic reports, personal communications with Scott Tregaskis, BLRV Senior

Geologist, and observations made during the Property examination and land status

review. All interpretations and conclusions are based on the writer’s research and

personal examination of the French Gulch Property.

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6.0 PROPERTY DESCRIPTION and LOCATION

The French Gulch Property comprises a contiguous block of 122 lode mining claims

totaling approximately 1,881 acres (761.2 hectares (ha)). Claim information is provided

in Appendix A. The following points summarize claim ownership:

• Twenty-eight patented surveyed claims optioned by FGNMC from

Washington-Niagara Mining Partnership (WNMP) totaling approximately 511

acres (206.8 ha);

• One patented surveyed claim optioned by FGNMC from the Stump Family

1990 Trust (SFT);

• Twenty-seven unpatented unsurveyed claims optioned by FGNMC from

WNMP totaling approximately 570 acres (230.7 ha); and

• Sixty-six JD claims located and wholly owned by FGNMC and totaling

approximately 800 acres (323.7 ha).

The Property area is shown on the French Gulch 7.5’ Quadrangle map, centered at

Latitude 40O43’24’’ North and Longitude 122O41’19” West, and UTM coordinates

526,306 E and 4,507,890 N (Figure 1). Claims are located in the French Gulch Mining

District, Shasta and Trinity Counties, California, USA. All claims have been registered

with the relevant county recorders and the Bureau of Land Management (BLM). The

claims cover parts of Sections 7, 8, 9, 12, 13, 16, 17, and 18 in Township 33 North,

Range 7 West, and Sections 12 and 13, Township 33 North, Range 8 West (Figure 2).

On October 6, 2004 FGNMC signed an Exploration Agreement and Option to

Purchase with WNMP for twenty-eight patented and twenty-seven unpatented lode

claims in the French Gulch Mining District of Shasta and Trinity Counties, California.

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The following points summarize FGNMC’s agreement with WNMP:

• The Exploration Agreement with an Option to Purchase granted FGNMC the

right to explore for one year for a single payment of US$25,000;

• If the Option to Purchase is exercised, FGNMC agrees to pay to WNMP bi-

monthly payments of US$50,000 until gold production commences; and

• After production has started, FGNMC agrees to make bi-monthly payments of

US$175,000 to WNMP until the total US$1,500,000 purchase price of the

claims is paid.

On May 19, 2006 FGNMC signed the First Amendment to the Exploration Agreement

with Option to Purchase with WNMP. By this First Amendment FGNMC paid

US$175,000 (234,000 Bullion River Gold Corp common shares with warrants at

US$0.75 per share) to WNMP. WNMP granted to FGNMC the Option to Purchase

WNMP’s twenty-eight patented and twenty-seven unpatented lode claims. The

US$175,000 was the first payment toward the total US$1,500,000 purchase price for

the claims. As of December 22, 2006 FGNMC has made payments totaling

US$653,916 toward the total purchase price of WNMP’s claims.

On August 31, 2005, FGNMC signed a mining lease with the Stump Family 1990

Trust (SFT) for the patented Colorado Quartz lode mineral claim (MS# 3394). The

following summarizes mining lease details:

• FGNMC paid to SFT US$2,500 on signing the lease agreement;

• In each of years 1 to 3 FGNMC pays to SFT US$2,500;

• In each of years 4 to 6 FGNMC pays to SFT US$3,500;

• In each of years 7 to 10 FGNMC pays to SFT US$4,500

• In each of years 11 and beyond FGNMC pays to SFT US$5,000, or until

production proceeds would pay the 2.5% NSR on gold produced from the

Colorado Quartz claim.

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Fig 1

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Fig 2

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7.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE,

and PHYSIOGRAPHY

The French Gulch Property is located approximately 18 miles (30 km) west-northwest

of Redding, in the Trinity Range of the Southern Klamath Mountains of Northern

California. The Property is accessed from Redding west-northwest on paved

Highway 299 for 18 miles (29 km) to the French Gulch turn-off, then north on paved

secondary road for 3 miles (5 km) to the bridge on French Gulch Creek, then 3 miles

(5 km) west-northwest on single-lane paved and graded dirt road to the mine site.

The claims can be accessed by maintained single-lane roads and two-track dirt trails.

The Property is in rugged, hilly terrain with elevations ranging from 1,760 feet (535

meters) along the southeastern Property boundary to 3,650 feet (1,115 meters) along

the northern boundary. Topography imposes some challenges for the construction of

mining and milling facilities. Vegetation is a mixture of deciduous and coniferous

trees, predominantly pine, fir, and oak, with grasses and scrub undergrowth.

Mining and exploration in the region takes place year-round with only occasional

weather-related difficulties. Winters are cool to cold, with moderate snowfalls.

Summer days are warm to hot, with cool nights. Area climate is temperate, with

precipitation coming as winter snow and occasional rain. .

Exploration and mining may have interruptions due to snow in the winter and muddy,

unstable roads in the spring. Redding is the major supply center for the region.

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At the French Gulch mine site, mine offices obtain electrical power from a municipal

power-line, while underground workings are serviced by a diesel generator.

Application has been made to provide the mine site with all of its power requirements

from an upgraded municipal power-line.

The French Gulch Mine is located on a mix of BLM land and patented lode mining

claims, and is operating under a pre-existing Plan of Operations and Reclamation

Plan completed by the previous operator, Lion Trail Mining Corporation. Lion Trail’s

plan was approved in the late 1990’s by the BLM, Shasta County, and the Regional

Water Quality Control Board (RWQCB).

A modified Reclamation Plan, a waste water treatment and discharge permit, and a

spill prevention plan are being developed by Vector Engineering, ENPLAN, Pace

Engineering, Mine Quarry Engineering Services (MQES), and Lawrence and

Associates. Modified permitting consists of a variety of engineering and design plans

that cover waste rock and tailings disposal, waste water treatment and discharge,

underground shop and dry, mill and mechanical shop, office trailer foundation, and

thickener tank cover. Permitting documents will be submitted to the RWQCB, Shasta

County and the BLM for final approval.

Additional permits are being processed by the US Army Corps of Engineers for

approval to improve the Shasta County access road to the mine along French Gulch

creek, and by the BLM for use of a 400-foot-long right of way corridor to install a 12

kV power line to the mine site from the through going main PG &E power line.

The French Gulch Mine currently monitors the water chemistry of the surrounding

streams, old mine water discharge, and mill process waters on a monthly basis, and

samples surface storm water flowage as part of the storm water pollution prevention

plan (SWPPP).

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8.0 HISTORY

8.1 Area History

Placer gold was discovered in the French Gulch Mining District in 1848, and the

district became the richest gold-producing area within the Klamath Mountains

geological province. In 1852, lode gold was discovered in the Washington vein,

which became the Washington Mine, and was the district’s largest gold producer.

From 1900 through 1914 district gold production was estimated at $6,000,000 which,

at an average gold price of $18.90 per ounce, would be approximately 317,000

ounces. Total district gold production from underground vein and placer mining is

estimated at between 0.8 and 1.5 million ounces. District veins have been worked to

vertical extents of over 2,000 feet (610 meters) (BLRV website, December 2006).

The Washington Mine, with a series of six steeply dipping parallel gold mineralized

quartz veins, has been developed over six levels and a vertical range of

approximately 450 feet (BHC, 1996). The six veins form a system approximately 800

feet (244 meters) wide and 2,000 feet (610 meters) along strike (BLRV website,

December 2006). On the Washington vein, the main production vein of the group,

gold mineralization occurs in a steeply dipping ore shoot that is up to 675 feet (206

meters) wide. Production records for the Washington Mine are incomplete, but gold

production is estimated at between 50,000 and 100,000 ounces.

A number of other mines were developed within the French Gulch Property area,

including the Niagara, Montezuma, and Scorpion mines.

The Niagara Mine is located 4,000 feet (1,220 meters) west-northwest of the

Washington Mine. Gold mineralization in the Niagara ore shoot was mined to a

depth of approximately 800 feet (244 meters).

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The Niagara Mine is estimated to have produced approximately 50,000 ounces of

gold. The steeply dipping principal vein was developed over ten levels and a vertical

range of 500 feet (Albers, 1965).

The Montezuma Mine is located approximately 8,800 feet (2,682 meters) west-

northwest of the Washington Mine. Gold mineralization occurs in quartz veins

striking 300o and dipping 70o southwest. Historic gold production is estimated at

7,100 tons grading 2.2 opt (75.4 g/t) (Smith, 1996).

The Scorpion Mine is located approximately 7,700 feet (2,347 meters) west-

southwest of the Washington Mine. Gold mineralization occurs in quartz veins

striking 310o and dipping 70o southwest. Historic gold production is estimated at

5,000 tons grading 1.47 opt (50.4 g/t) (Smith, 1996).

The Montezuma and Scorpion veining are thought to be part of a larger northwest-

trending vein system traceable for over 5,000 feet (1,524 meters) of strike length.

After 1914, mining activity at the Washington Mine was generally sporadic, but

increased in the late 1930s and early 1940s, with underground work covering 450

vertical feet. The Robillard and I levels were constructed during the 1930s and

1940s. Mining operations were shut down completely by the War Order in 1942.

Mining started again after WWII and continued intermittently, predominantly on the

Washington and Brown Bear properties, until the late 1980s. The nearby Wertz and

Government declines were constructed in the late 1950s or early 1960s. Principal

area gold deposits developed were the American/Gladstone (200,000 ounces gold),

Brown Bear (400,000 ounces gold), Franklin/Milkmaid (150,000 ounces gold), and

the Washington/Niagara (200,000 ounces gold) (BHC, 1996).

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Massive sulfide deposits yielding 4.3 million tons grading 4.7% copper and 4-5%

zinc, 27 million ounces of silver, and approximately 300,000 ounces of gold are

located in the Balaklala Rhyolite, and are situated approximately 8 miles (13

kilometers) east of the French Gulch Mining District.

8.2 Previous Work

From 1984 through 1989, the Washington-Niagara Mining Partnership carried out

core and reverse circulation drilling totaling 5,471 feet (1,668 meters) in 29 holes.

Drill data are provided in Appendix B and locations are shown on Figure 3.

In 1989, the Lucky 7 vein on the Robillard Level (located approximately 500 feet (150

meters) south of the Washington vein, and part of the Washington property, was

discovered. From 1989 to 1995, mining was carried out on the Washington property

by the Washington Mining Partnership; production from the Lucky 7 vein was

estimated to be 8,800 tons averaging 1.13 ounces per ton (opt) gold (Smith, 1996).

In 1995, Lion Trail Minerals, an operating subsidiary of Mineral Resources, acquired

the Washington property and carried out exploration and mining activities.

Between 1995 and 1997, Lion Trail carried out core drilling consisting of seven holes

totaling 2,793 feet (851 meters) and reverse circulation drilling consisting of fourteen

holes totaling 6,953 feet (2,119 meters).

Drill data are provided in Appendix B and locations are shown on Figure 3. The

following table shows significant gold values returned from the Lion Trail core drilling:

Table 1: Lion Trail Significant Results - Core Sample Location Gold Assay Hole

From To Interval opt g/t 90.0 96.5 6.5 5.383 184.6 LT-01

185.0 185.5 0.5 0.069 2.4

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Sample Location Gold Assay Hole From To Interval opt g/t 307.0 312.0 5.0 0.275 9.4 157.0 167.0 10.0 0.081 2.8 299.0 302.5 3.5 0.039 1.3

LT-02

302.5 303.0 0.5 0.077 2.6 50.0 57.5 7.5 0.029 1.0 LT-03

57.5 60.5 3.0 0.066 2.3 95.5 96.0 0.5 0.087 3.0 LT-04

96.0 96.5 0.5 0.335 11.5

In DDH-01, the 6.5-foot interval between 90.0 and 96.5 feet returned the highest gold

value of 5.383 opt (184.6 g/t) gold. The sample was taken from a pyritic quartz vein

showing visible gold in quartz porphyry with stringers of Bragdon shale.

Significant gold values returned from reverse circulation drilling follow:

Table 2: Lion Trail Significant Results - RC Sample Location Gold Assay Hole

From To Interval opt g/t L7 97-1 245.0 250.0 5.0 0.034 1.2 L7 97-2 390.0 395.0 5.0 0.038 1.3 490.0 495.0 5.0 0.038 1.3 635.0 640.0 5.0 0.036 1.2 645.0 650.0 5.0 0.048 1.6 2V97-1 128.0 129.0 1.0 0.033 1.1 138.0 139.0 1.0 0.043 1.5 149.0 154.0 5.0 0.200 6.9 171.0 172.0 1.0 0.039 1.3 215.0 220.0 5.0 0.057 2.0 3V97-1 145.0 150.0 5.0 0.067 2.3 150.0 155.0 5.0 0.260 8.9 165.0 170.0 5.0 0.065 2.2 WN97-1 85.0 90.0 5.0 0.049 1.7 WN97-2 120.0 125.0 5.0 1.383 47.4 125.0 130.0 5.0 0.120 4.1

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Sample Location Gold Assay Hole From To Interval opt g/t

765.0 770.0 5.0 0.150 5.1 780.0 785.0 5.0 0.024 0.8 785.0 790.0 5.0 0.034 1.2

In L7 97-2, gold mineralization occurs in quartz veining associated to porphyritic

dikes.

In 2V97-1, gold mineralization occurs in quartz veining with <5% pyrite in well

fractured andesite with some quartz porphyry. Wall rocks show silicification. In

3V97-01, gold mineralization occurs with pyritic quartz in carbonaceous Bragdon

shale. The quartz vein content of the shale was estimated to be 15%.

In WN97-1, gold mineralization occurs with <5 pyrite in quartz veins hosted in green

quartz porphyry. In WN97-2, from 120 feet to 130 feet, gold mineralization occurs in

Bragdon shale in contact with quartz porphyry. Quartz veins in quartz porphyry hosts

gold and arsenopyrite in the deeper intervals from 765.0 to 790.0 feet.

Lion Trail Minerals relinquished the property in 1998. After mining and milling

equipment were removed, reclamation of the site was completed in 2000.

In 2001, Lucky Dollar LLC and the operating partner Goddess Gold LLC acquired the

Washington property through a lease/purchase agreement.

During 2001 mine and mill rehabilitations were carried out. The I Level (the main

access to the Washington vein and the lowest development level) was reopened and

improved for 865 feet (264 meters) to accommodate rubber-tired mining equipment,

and included 405 feet (124 meters) of new drifting to bypass a caved portion of the

old adit.

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13

An attempt was made to re-open H Level but failed due to bad ground at the portal.

A new decline adit was driven at the 2630 elevation to intersect the top of the Lucky 7

vein ore shoot above the level of previous production. This decline adit intersected

the stope worked by Lion Trail Minerals, and a drift was extended to the east to

develop the unmined portion of the Lucky 7 vein from which approximately 120 tons

grading 1 opt were removed (Hembree, 2002)

In 2002, the project operator, Goddess Gold LLC, was halted from conducting any

further mining and milling activities for not having proper environmental permits and

bonding prior to beginning operations.

In July 2002, Lucky Dollar LLC assumed project control and began remediation of

Goddess Gold’s disturbances. While reviewing the mine development plan, Lucky

Dollar began application for the required permits and bonding in order to resume

mining and milling operations (Hembree, 2002).

In 2004, BLRV acquired patented and unpatented claims that form part of the current

French Gulch Property.

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Figure 3

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Fig 4

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9.0 GEOLOGICAL SETTING

The French Gulch Mining District is situated in northwestern California within the

Eastern Klamath Belt of the Klamath Mountains Geologic Province. The Klamath

Mountains area, which overlies a crustal subduction zone, represents the complex

junction of five geologic provinces: the Sierra Nevada, the Klamath Mountains, the

Modoc Plateau, the Cascades volcanic arc, and the Sacramento Valley.

Within the Klamath Mountains Geologic Province, geologic terranes consist of

predominantly Mesozoic marine sediments added to the continental margin by sea-floor

spreading.

9.1 Regional Geology

The French Gulch Mining District consists of Mississippian Bragdon Formation

sediments separated from the underlying Devonian Copely Greenstone by the east-

dipping Spring Creek thrust fault.

Episodic white quartz veining occurs along steeply dipping fractures, along the

margins of porphyry dikes and sills, and along shallow dipping lithological contacts

between sediments and volcanic rocks. Vein fabrics show that movement along host

fractures has continued during mineral deposition (Embree, 2002).

Hydrothermal alteration of greenstone host rocks includes propylitic alteration, with

formation of chlorite, calcite, and clay, and sericite alteration near dikes and quartz

veins, with formation of illite, quartz, and calcite. Dikes and sills are more commonly

altered, and show silicification and stockwork formation. Hydrothermal alteration in

sediments includes silicification near quartz veins and formation of calcite and

ankerite veins associated with the quartz.

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17

9.1.1 Regional Lithology

Bragdon Formation

Bragdon Formation sediments are possibly turbidic in origin and consist of an upper

unit composed of sandstone and cherty conglomerate, with interbedded siltstone and

shale, and a lower unit of dark-gray shale, mudstone, and siltstone, with interbedded

lenses of sandstone, graywacke, tuff, tuffaceous mudstone, and conglomerate. The

upper unit is estimated to be approximately 1,500 feet (460 meters) thick, while the

lower unit is approximately 4,500 feet (1,370 meters) thick. Bragdon sediments are

contact metamorphosed to strongly folded phyllitic gneiss along the margin of the

intruding granitic Shasta Bally batholith to the southwest.

Sediments of the Bragdon Formation are separated from the underlying Copley

Greenstone by the Spring Creek thrust fault and by Late Jurassic intrusive sills and/or

quartz veining along contacts (Albers, 1965). The Spring Creek thrust has crushed

and sheared the less competent Bragdon sediments forming a zone of black

carbonaceous schist and slate.

Copley Greenstone

Copley Greenstone has been divided by Lapierre et al. (1985) into upper and lower

units. The lower unit, more than 4,600 feet (1,400 meters) thick, consists of lapilli

tuffs showing graded bedding, volcanic breccias, and volcanic flows of picritic,

basaltic, and andesitic compositions. The upper unit is approximately 1,300 feet (400

meters) thick and consists of pillow lavas. Pillows range from large, porphyritic, and

vesicular pillows at the unit base to smaller chloritized pillows at the top.

Intermediate and mafic volcanic rocks show feldspar alteration to albite and

ferromagnesian minerals altered to chlorite, but retain their original structures and

textures.

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To the east and southeast of the French Gulch Mining District, Copley Greenstone is

conformably overlain by the Balaklala Rhyolite, with occasional transitional contacts.

Transitional contact would suggest that, for a period of time, felsic lavas of the

Balaklala were erupting at approximately the same time as lavas of the more mafic

Copley. Balaklala Rhyolite is considered to be Middle Devonian as is the upper

Copley; the lower portion of the Copley may be older (Albers, 1965).

Shasta Bally Batholith

The Shasta Bally batholith is located approximately 3 miles (5 kilometers) southwest

of the French Gulch Property. The batholith, interpreted to be Late Jurassic or Early

Cretaceous, is composed of light-colored quartz diorite and granodiorite, trends

northwest, and is exposed over a length of approximately 30 miles (48 kilometers)

and a width of 9 miles (14 kilometers).

Three facies have been observed: course-grained biotite facies; fine-grained biotite

facies; and biotite-hornblende facies.

Intrusives

Area rocks contain dikes and sills of various igneous types, including metagabbro,

lamprophyre, aplite, hornblendite, andesite porphyry, dacite porphyry, diorite

porphyry, and quartz porphyry. Some dacite, diorite, and quartz porphyries,

collectively termed “birdseye” porphyry because of the zoned plagioclase

phenocrysts, are of economic significance as they are closely associated with gold

mineralization in the French Gulch Mining District.

“Birdseye” porphyries vary in composition from non-quartzose diorite porphyry to

dacite porphyry containing abundant quartz phenocrysts.

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19

Mineralogical similarities between the “birdseye” porphyries and the Shasta Bally

batholith suggest a genetic relationship, and an intrusion or intrusions of Shasta Bally

is inferred to extend northeast under the French Gulch Mining District (Albers, 1965).

The “birdseye” porphyry dikes occur along faults, joints, and bedding planes, and are

broadly folded and cut by younger faults, as well as by lamprophyre dikes and quartz

veins. Quartz porphyry dikes are thought to be older than “birdseye” porphyry dikes

due to their more extensive alteration.

9.1.2 Regional Structure

Approximately 6 miles (10 kilometers) east-southeast of the French Gulch district the

regional structure trend changes from predominantly northwest to north-northeast.

The northwest trend is shown by the orientation of the Shasta Bally batholith. The

northwest trend predominates to the south and west of the French Gulch district, and

is interpreted to represent the prevailing trend of the basement rocks. The north-

northeast trend predominates to the east of the district. The juncture of these two

trends has been termed the Klamath arc (Albers, 1965). Three folding trends have

been identified within the district;

• North 40o-80o East;

• North; and

• North 50o-80o West

Northwest-trending folding predominates in the French Gulch district and is most

obvious in Bragdon Formation rocks. “Birdseye” porphyry dikes have been folded

into open, asymmetrical folds in the French Gulch district. The broad folding appears

to be the result of regional northeast-southwest compression associated with local

thrusting but some of the tighter folds could be drag folds related to strike-slip

movement along the French Gulch Fault system (Tregaskis, personal comm., 2006).

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20

The French Gulch fracture zone is approximately 9 miles (14 kilometers) long and up

to 2 miles (3 kilometers) wide. District folding and fracturing may be the result of

intrusions of the Shasta Bally batholith, but folding could also be related to Permian-

Triassic or Jurassic accretionary event (Tregaskis, personal communication, 2006).

Two types of faulting predominate northeast of the Shasta Bally batholith: low-angle

thrusting shown by the Spring Creek thrust; and high-angle normal faults. High-angle

faults are interpreted to have served as conduits for mineralizing fluids that formed

the regions massive-sulfide and precious-metal deposits. The Spring Creek thrust is

also genetically important to mineralization as many of the district’s gold deposits

occur along it. The thrust is irregular and is disrupted by normal faulting.

There are three major normal faults in the French Gulch district: the Hoadley Fault

located approximately 5 miles (8 kilometers) south of the French Gulch Property; the

Shirttail Fault located approximately 2 miles (3 kilometers) east; and the French

Gulch fault which extends through the Property. The French Gulch fault may be the

western extension of the Shirttail fault.

Four types of regional high-angle normal faults have been recognized:

• North 60o-90o East with steep dips. The most numerous type and

commonly mineralized. Displacements generally in the tens of feet and

occasionally a few hundred;

• North 10o-25o West steeply dipping. Rarely mineralized. Displacements

as much as 1,000 feet;

• North 45o-60o West with northeast or southwest dips. Can host quartz

veining and dikes in the Bragdon sediments; and

• North 20o-45o East. Displacements from a few feet to tens of feet.

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Figure 5

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Figure 6

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Figure 7

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24

9.2 Property Geology

9.2.1 Lithology

The French Gulch Property shows a central area of Copley Greenstone surrounded

by younger Bragdon Formation lower unit sediments. “Birdseye” porphyry and quartz

porphyry occur along the eastern and southern edges of the disconformable Copley-

Bragdon contact. Irregular bodies of “birdseye” porphyry extend for more than 3

miles (5 kilometers) east-west across the central Property area On the northwest

edge of the Copley Greenstone, a small body of tuff and/or tuffaceous shale is

exposed along a north-dipping thrust fault.

In 2006, K.V. Ross, Panterra Geoservices Inc, carried out a petrographic study of 21

samples of Property rocks collected from diamond drill core and hand samples. Vein

petrographic observations are presented in section 11.0 Mineralization.

The following observations are taken from her report:

• Bragdon Formation: All Bragdon sediment samples are carbonaceous.

Some samples are cut by carbonate veining. Carbonate veins are

deformed along foliation planes. The sediments are foliated and show

tight micro-folding in mudstones;

• Copley Greenstone: Most samples were identified as vesicular basalt

characterized by amygdules (in-filled spheroids) containing secondary

chlorite, calcite, and quartz. One sample was non-vesicular, and was

interpreted to be an associated dike;

• Porphyritic Intrusions: Porphyries are similar in texture and composition,

and probably belong to one related intrusive suite, however they can be

subdivided into two sets, based on their phenocryst assemblage and

groundmass textures:

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o Quartz Porphyry (Quartz Monzonite to Quartz Monzodiorite): These

porphyries are composed of 10-15% plagioclase, 5-10% quartz and

2-10% biotite phenocrysts, and accessory apatite in a fine-grained,

mosaic-textured plagioclase-quartz-K-feldspar groundmass; and

o Diorite Porphyry (Monzodiorite to Diorite): These porphyries differ

from the previous set in their lack of K-feldspar in the groundmass,

lower quartz content, and possible presence of amphibole

phenocrysts. The phenocryst assemblage consists of 10-20%

plagioclase, 0-3% quartz and 7-10% biotite +/- amphibole, with

accessory apatite. The groundmass predominantly consists of

plagioclase.

9.2.2 Alteration

Ross (2006) reports that there are three main rock types identified in the petrographic

study: the carbonaceous Bragdon Formation; the Copely greenstone, which is

vesicular basalt; and a suite of quartz monzonite to monzodiorite intrusions. Quartz-

carbonate veins and related quartz-sericite-carbonate-chlorite alteration was

observed in all rock types. Quartz-sericite-carbonate-chlorite alteration generally

does not destroy texture. Intense chlorite-epidote alteration in the basalts may be

due to deuteric alteration of the volcanics, and unrelated to the mineralization.

Foliated fragments of mudstone in the Bragdon breccia, indicates that a penetrative

fabric was developed in this unit, prior to the brittle brecciation event. The strained

and fractured nature of early stage vein quartz and the deformation of veinlets in the

Bragdon mudstones suggest that there was some degree of deformation while

mineralization was in progress.

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9.2.3 Structure

The central body of Copley Greenstone is bounded to the north by the Spring Creek

thrust fault and to the south by the French Gulch fault/fracture system. Both groups

of faults generally trend east-west. The Spring Creek thrust is irregular and much

disrupted by normal faults (Albers, 1965).

Numerous high-angle faults cut the French Gulch fracture zone. The most common

strike orientation ranges from east-northeast to east, with steep dips either to the

north or south. Vertical displacement of faults ranges from a few feet to several

hundred feet. Many of the east-northeast- to east-trending faults show gold

mineralization.

A second group of faults strikes north to northeast, with high-angle dips either east or

west. Few of the north- to northeast-trending faults show gold mineralization. Fault

displacement can be as much as 1,000 feet.

A third group of mineralized faults is northwest-trending and shows small

displacements (BHC, 1996).

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Fig 8

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10.0 DEPOSIT TYPE

The target deposit on the French Gulch Property is mesothermal gold-bearing quartz

vein mineralization.

Mesothermal gold mineralization generally occurs in millimeter- to meter-wide quartz

veins hosted by granitic intrusions (equigranular to porphyritic in texture) and

adjacent hornfelsed country rock. Veins form parallel arrays (sheeted) and less

typically, weakly developed stockworks, where the density of veins and veinlets is a

critical element for defining an economic deposit. Native gold occurs associated with

minor pyrite, arsenopyrite, pyrrhotite, scheelite, bismuth, and telluride minerals.

Mineralization is most commonly found in continental margin sedimentary

assemblages intruded by igneous plutons.

Veins are structurally controlled, forming in tensional fractures and shears within and

near the upper portions of small (<3 km2) granitoid intrusions at depths of 2-8

kilometers. Mineralization likely formed from late stage fluids that accumulated in

late-stage melts of differentiating granitic intrusions.

Gold mineralization is hosted in granitic intrusions and variably metamorphosed

sedimentary rocks that have been intruded by the granites.

Granitoid rocks vary lithologically, but are typically granodiorite and quartz monzonite

to granite. Most intrusions have some degree of lithological variation that appear as

multiple phases that can include monzonite, monzo-granite, albite granites, alkali

syenite, and syenite. More differentiated phases commonly contain feldspar and

quartz and less than 5% mafic minerals.

Mineralization can be divided into intrusion-related, epizonal, and shear-veins:

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• Intrusion-related: Mineralization typically occurs in widespread sheeted

vein arrays. Vein arrays typically consist of numerous sheeted or, less

commonly, stockwork, veinlets, and veins that form zones that are 10’s of

meters wide, and continuous for several tens of meters. Individual vein

widths vary from hairline up to tens of meters;

• Epizonal: Mineralization is typically less focused, and may be

disseminated, or occur as replacements; and

• Shear-veins: Veins are typically in fault zones outside of the granitic pluton.

Sulfide minerals are generally less than 3% and can be less than 1%.

Deposits/intrusions can have late and/or peripheral arsenopyrite, stibnite or galena

veins. Native gold, sometimes visible, occurs with associated minor pyrite,

arsenopyrite, pyrrhotite, scheelite, or more rarely wolframite, and sometimes

molybdenite, bismuthinite, native bismuth, telleurides, tetradymite, galena, and

chalcopyrite. Epizonal veins are arsenopyrite-pyrite rich and lack associated

bismuth, tellurium, and tungsten minerals. The thicker, solitary veins typically contain

higher percentages (<20%) of sulfide minerals. Sulfides mineral content is generally

higher in veins hosted in the country-rocks.

Quartz is the dominant gangue mineral with associated minor sericite, alkali feldspar,

biotite, calcite, and tourmaline.

Pathfinder elements related to mesothermal gold mineralization include tungsten,

bismuth, arsenic, and, to a lesser degree, tin, stibnite, silver, molybdenum, copper,

lead, tellurium, and zinc.

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Mesothermal deposits are characterized by relatively restricted alteration zones that

are most obvious as narrow alteration selvages along the veins. Alteration generally

consists of the same non-sulfide minerals that occur in the veins, typically albite,

potassium feldspar, biotite, sericite, carbonate (dolomite), and minor pyrite.

Pervasive alteration, dominated by sericite, occurs in association with the best ore

zones. Wall rocks surrounding the granitoid intrusions are typically hornfelsed and, if

carbonaceous, contain disseminated pyrrhotite. Alteration appears to be more

extensive at shallow emplacement depth or greater distance from the intrusion.

Epizonal deposits may have clay alteration minerals.

11.0 MINERALIZATION

There are four recognized types of mesothermal lode gold mineralization within the

French Gulch Property (Smith, 1996):

• Steeply dipping quartz and quartz-calcite veins in Bragdon Formation

rocks. This vein-type carries most of the gold;

• Gently to moderately dipping quartz and quartz-calcite veins along the

thrust faulted contact between the Bragdon Formation and the Copley

Greenstone;

• Veins in porphyry dikes and sills; and

• Steeply dipping quartz veins in Copley Greenstone.

Quartz veins carry free coarse gold, pyrite, arsenopyrite, galena, and sphalerite.

In 2006, BLRV submitted five samples of quartz vein material to Panterra

Geoservices Inc for petrographic study (Ross, 2006).

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One sample was from the Washington vein, three from the Lucky 7 vein, and one

sample was from quartz porphyry containing a quartz veinlet. The following

descriptions are taken from Ross’s report.

All vein material is similar in texture and composition, and consists predominantly of

quartz (78-88%), albite (minor to 5%), carbonate/calcite (5-10%), and

sericite/muscovite (minor to 5%). Sulfide content ranges from 3-7%, and includes

pyrite, arsenopyrite, galena and sphalerite. Native gold was also observed

Veining in the five samples is of a similar formation time. Early veining shows

relatively coarse-grained quartz and minor albite, intergrown with clotty pyrite-

sphalerite-galena. These early veins have been partially deformed resulting in the

straining, fracturing, and recrystallization of the quartz along fractures and in micro-

breccia veinlets. Arsenopyrite and native gold are introduced in this stage. Late

calcite veinlets tend to exploit these micro-breccia veinlets and do not appear to carry

any sulphides or gold. Ross suggests a three-stage quartz vein development cycle:

• Stage 1 – relatively coarse-grained quartz-minor albite + pyrite-sphalerite-

galena;

• Stage 2 – a deformation event resulting in brecciation and recrystallization

of the quartz along fractures, with the addition of sericite, arsenopyrite,

and native gold; and

• Stage 3 – a final veining event of calcite+/-quartz-albite that partially

exploited Stage 2 fractures and does not carry sulfide or gold

mineralization.

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12.0 EXPLORATION

In 2004, BLRV acquired the French Gulch Property. Since 2004, BLRV has carried

out exploration work consisting of rock sampling, geological mapping, and core and

reverse circulation drilling. Drilling information is provided in section 13.0 Drilling.

Development work has consisted of rehabilitation and modification of the existing mill

and support facilities, underground development and drilling, and initial test milling of

mineralized material from the Washington and Lucky 7 veins.

12.1 Rock Chip Geochemical Sampling

Rock sampling on the Property has consisted of 105 rock samples taken from

outcrop, float, mine dumps, and underground. Rock sample information is provided

in Appendix E. Significant rock sample locations are shown on Figure 4.

The following table shows selected significant rock sampling results.

Table 3: BLRV Significant Rock Sampling

Location UTM Assay Results Sample Type

Northing EastingAu g/t

Au opt

Ag ppm

As ppm

Pb ppm

Se ppm

Zn ppm

Mill stockpile - - 16804

quartz veining in altered greenstone

13.05 0.381 7.57 1990

2510 5.00 157

5

UG grab 4507655 527340

JM601

W end I-level; qtz vein grab; 16.80 0.490 8.22 343

0 168

5 4.00 1870

UG grab 4507655 527335

JM602

W end I level; Art Smith sample 103.50 3.019 31.30 120

0 498

0 8.00 7260

JM1002

outcrop 4507302 527633 144.00 4.200 11.85 716 295 1.00 147

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Location UTM Assay Results Sample Type

Northing EastingAu g/t

Au opt

Ag ppm

As ppm

Pb ppm

Se ppm

Zn ppm

adit on H level road; 080/70SW 6" qz vein within diorite dike outcrop 4507303 52763

4 JM101

0 1m sample across JM1002 vein

6.63 0.193 1.66 1210 123 1.00 123

outcrop 4507517 52727

116829

8-10" vert chip across E-NE vein with 10-20deg N dip; local sulfide; vein is 8-10" thick; HW of diorite sill

3.23 0.094 1.63 1065 258 1.00 23

dump 4507351 526939

QB04-01

mixed qtz vein, dp, and shale from road berm above mill

23.40 0.683 0.65 4820 51 2.00 54

outcrop 4507175 52518

5 QB04-

07 outcrop; qp dike w/qtz vein stockwork+FeOx

2.45 0.071 0.63 3970 7 1.00 24

dump 4508638 525955

QB04-09

dump; milky qtz-py vein,3-5% py, poss vg?

32.50 0.948 5.24 114 4 2.00 23

dump 4508652 525990

QB04-10

milky qtz-py vein,1-3% py 8.40 0.245 0.86 185 4 2.00 72

dump 4508573 526749

QB04-18

qtz-cal-py vein, 1-3% py 7.03 0.205 0.58 238 38 2.00 33

dump 4508552 526747

QB04-19

bn-or silica-FeOx "oxd vein?" 13.20 0.385 7.44 265

0 81 3.00 130

UG grab 4507495 527205

QB04-20

muck; "qtz vein ore" from Lucky-7 chute

62.40 1.820 14.40 4830 802 5.00 607

dump 4507352 527431

QB04-22

dump; milky qtz vein, st FeOx 8.54 0.249 1.84 199 125 2.00 6

dump 4507291 527292

QB04-23

dump; milky qtz vein, no sulfides

7.54 0.220 2.18 726 345 2.00 13

JM1014

dump 4507074 527466 630.00 18.37

5 73.7 2400

8280 42 605

0

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Location UTM Assay Results Sample Type

Northing EastingAu g/t

Au opt

Ag ppm

As ppm

Pb ppm

Se ppm

Zn ppm

Hobo2 claim adit dump; minor qtz vn with py-aspy-gn; most of dump is diorite; adit at ~060 Rock 4507639 52758

9 DLE-004

Qtz Vein N72E_72S, 1-3 ft thk, quartz vein and gouge, pinches and swells, 1 ft length

6.81 0.199 0.82 327 30 1 39

Rock 4507850 526268

DLE-025

Diorite porphyry, lt grn gray, strong qtz stkwk, 50% qtz vnlts, QSP and bleaching, 1ft rx

5.53 0.161 1.4 25 119 - 91

Rock 4507810 52613

7 DLE-029

Shale, black, "quartzy", 1.5 ft rx chip at 138 ft in Tunnel No. 1

3.34 0.097 1.4 684 25 - 166

Rock 4507812 52613

9DLE-031

Diorite porphyry, grn gray, mod stkwk, 4.5 ft rx chip at 138 ft in Tunnel No. 1

2.22 0.065 1.7 130 58 - 98

Rock 4507869 52796

9DLE-034

Qtz Vein, white, FeOx, N10E/75 E, 1 ft thick vein sampled,

1.44 0.042 0.27 258 9.1 1 15

Rock sample results generally show a positive correlation between gold, silver,

arsenic, lead, and zinc. Selenium and tellurium results show weaker correlations with

high gold and silver values.

Rock descriptions show that high gold results are associated with quartz veining or

stockwork in the host rock, with gold values being hosted in greenstone, shale, diorite

porphyry, and diorite.

12.2 Geophysical Surveys

In the early 1980s, Cooksley Geophysics conducted an exploration program for

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Niagara Mining General Partnership in the Scorpion Mine area in the western portion

of the Property (BHC, 1996). No details are available to the writer.

BLRV has not carried out any geophysical surveys on the French Gulch Property.

13.0 DRILLING

BLRV has carried out work programs consisting of surface and underground drilling.

Both programs have been carried out by Connors Drilling, Montrose, Colorado.

13.1 Surface Drilling

Surface drilling comprises sixteen HQ-core holes totaling 14,109 feet (4,300 meters).

Holes were drilled by Connors Drilling, Montrose, Colorado. Core was geologically

logged showing lithology, mineralogy, alteration, and structures. Core to be sampled

was sawn in half and one half of the core was sent to ALS Chemex, Reno for gold

assay by Au-SCR21 method and multi-element ME-ICP41. Hole data are provided in

Appendix C: hole locations are shown in Figure 3.

From December 2005 through April 2006, HQ core holes BRS-1 to BRS-7 were

drilled in the area of the Niagara Mine. The seven holes total 7,784 feet (2,373

meters) and were designed to test for possible mineralization extensions in the area

of the Niagara Mine. Significant drill intercepts follow:

Table 4: Significant Drill Intervals BRS-1 to BRS-7 Sample Location Gold

Interval Hole

From To feet meters

opt g/t

Ag g/t

BRS-4 323.5 326.5 3.0 0.9 0.064 2.18 0.5 BRS-5 614.5 618.5 4.0 1.2 0.039 1.34 0.6 BRS-6 461.0 465.0 4.0 1.2 0.018 0.62

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Sample Location Gold Interval

Hole

From To feet meters

opt g/t

Ag g/t

465.0 467.3 2.3 0.7 1.970 67.54 14.8 704.3 706.5 2.2 0.7 0.057 1.95 0.7 706.5 708.8 2.3 0.7 0.082 2.81 0.9

Note: No assay results were available to the writer for BRS-7.

Galena mineralization was observed in drill intervals returning high gold values.

HQ core holes BSR-8 TO BSR-16 were drilled in the area of the Washington Mine

and totaled 6,325 feet (1,928 meters). Significant drill intercepts follow:

Table 5: Significant Drill Intervals BRS-8 to BRS-16

Sample Location Gold Interval

Hole Sample #

From To feet meters

opt g/t

Ag g/t

BRS-11 2618 320.0 323.1 3.1 0.9 0.07 2.43 1.8 2620 323.1 324.3 1.2 0.4 0.06 1.92 2.3 2621 324.3 325.3 1.0 0.3 0.08 2.81 2.2

2623 325.3 326.5 1.2 0.4 0.04 1.38 1.8 323.1 to 326.5 3.4 1.0 0.06 1.99 2.1 BRS-14 3005 135.0 136.3 1.3 0.4 0.11 3.65 2.1 3006 136.3 140.0 3.7 1.1 0.24 8.19 0.3 3029 308.3 310.0 1.7 0.5 0.03 1.05 5.5 3030 310.0 311.9 1.9 0.6 0.27 9.39 75.4 3031 311.9 315.0 3.1 0.9 0.01 0.49 1.8 3032 315.0 316.3 1.3 0.4 0.02 0.78 1.8 3034 320.0 322.8 2.8 0.9 0.03 0.92 0.6 3035 322.8 323.3 0.5 0.2 0.21 7.08 38.6 308.3 to 322.8 15.0 4.6 0.06 1.90 12.2 3306 659.0 662.4 3.4 1.0 0.07 2.25 1.4 3307 662.4 665.2 2.8 0.9 0.13 4.50 0.7 659.0 to 665.2 6.2 1.9 0.10 3.27 1.0 3314 684.7 685.4 0.7 0.2 0.06 2.20 0.8 3315 685.4 689.3 3.9 1.2 0.03 1.04 0.6

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684.7 to 689.3 4.6 1.4 0.04 1.21 0.7 BRS-15 3339 155.6 157.0 1.4 0.4 0.05 1.61 0.5 3340 157.0 160.0 3.0 0.9 0.07 2.49 0.5 155.6 to 160.0 4.4 1.3 0.06 2.21 0.5 BRS-16 3206 124.2 129.6 5.4 1.6 0.09 3.25 <0.2 3263 465.0 470.0 5.0 1.5 0.03 1.07 <0.2 3264 470.0 475.0 5.0 1.5 0.06 2.01 <0.2 465.0 to 475.0 10.0 3.0 0.04 1.54 <0.2 3275 526.0 530.0 4.0 1.2 0.07 2.27 <0.2 3276 530.0 532.5 2.5 0.8 0.09 3.09 <0.2 3277 532.5 535.0 2.5 0.8 0.05 1.55 <0.2 526.0 to 535.0 9.0 2.7 0.07 2.30 <0.2

Samples returning high gold values were re-assayed using the Au-SCR21 process

(for process details see section 15.0 Sample Preparation, Analysis, and Security).

The following table shows re-assay results.

Table 6: Re-assay Results Gold Assay - Screen Hole Sample #

g/t opt 3005 3.6 0.1 3029 1.29 0.0 3030 10.7 0.3 3035 7.49 0.2 3039 0.86 0.0 3085 1.81 0.1 3303 0.38 0.0 3306 3.06 0.1 3307 2.96 0.1 3314 4.1 0.1

BRS-14

3315 0.88 0.0 3339 1.86 0.1 3340 2.04 0.1 3469 <0.05 <0.001

BRS-15

3490 1.26 0.0

Based on sample results from drilling, BLRV has calculated the following correlation

coefficients for selected elements.

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Table 7: Correlation Coefficients

Au Ag As Bi Cu Hg Mo Pb Sb Zn Au 1 Ag 0.70 1 As 0.11 0.07 1 Bi 0.05 0.06 -0.11 1 Cu 0.02 0.05 -0.11 0.25 1 Hg 0.44 0.25 0.02 0.29 -0.05 1 Mo -0.05 -0.04 0.09 -0.20 0.03 -0.16 1 Pb 0.62 0.49 0.08 0.11 0.06 0.23 -0.05 1 Sb 0.08 0.07 0.12 -0.14 0.05 -0.13 0.49 0.13 1 Zn 0.47 0.37 0.07 0.10 0.07 0.11 -0.04 0.97 0.15 1

The correlation coefficient shows the likelihood of a particular element occurring with

another element. Elements that are most closely associated with gold mineralization

are:

• Silver (Ag): 70%

• Lead (Pb): 62%

• Zinc (Zn): 47%

• Mercury (Hg): 44%

13.2 Underground Drilling

The underground drilling program comprises sixty-four HQ-core holes totaling 31,830

feet (9,702 meters), drilled by Connors Drilling, Montrose, Colorado. Drilling was

carried out from a single drift of the Robillard adit midway between the Washington

and the Lucky 7 vein. The drilling was designed to test the Washington, Dean, and

No2 vein systems to the north and the Lucky 7 vein to the south (Figure 9, 10, 11and

12). Significant drill intercepts for RBU-1 to RBU-43 are provided in Appendix D.

Sampled intervals have been marked to show the presence of visible gold. No assay

data are available to the writer for RBU-44 to RBU-64.

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39

Drilling on the Lucky 7 vein shows gold mineralization extending approximately 500

feet (152 meters) east-west along vein strike and ranging over a vertical distance of

300 feet (91 meters). The vertical range extends from the base of historical mining at

the 2300-foot level, down to below the 2000-foot level. Assay results suggest that

high-grade gold mineralization may not continue to the east, but is open to the west

and at depth.

Drilling on the Washington vein shows gold mineralization to at least 450 feet (137

meters) below historic mine workings and extending to the west, 300 feet (91 meters)

beyond what was considered the western boundary of the historical mined ore shoot.

RBU-50 contains a 4-foot (1.2 meter) intersection (a 3-feet true width (0.91 meters))

of massive quartz with visible gold. The quartz vein showing visible gold is situated

approximately 100 feet west of a section of the Washington Mine that produced 3,501

tons at a gold grade of 0.530 opt.

Drilling on the Dean vein, located approximately fifty feet north and parallel to the

Washington vein, shows quartz veining up to five feet in true width. Quartz veining

carries relatively low gold grades of up to 0.5 opt, but has vertical continuity in the

range of 450 feet (137 meters) (Margolis, 2005).

Drilling on the No. 2 vein, located approximately 100 feet south of the Washington

vein, shows several high-grade intervals, but mineralization is discontinuous. In

RBU-21, a 1.4-foot interval from 120.2 to 121.6 feet (1.2 feet true width (0.37

meters)) returned 1.6 opt (54.9 g/t) gold. This 1.4-foot interval was part of the 14.4-

foot interval from 111.8 to 126.2 feet which had a calculated grade of 0.18 opt (6.2

g/t) gold.

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Fig 9

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Fig 10

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Fig 11

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Fig 12

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14.0 SAMPLING METHOD and APPROACH

BLRV has instituted an eight-part quality control program to ensure that core

sampling results are as accurate as possible. Details of the quality control program

are provided in Appendix F. A program outline follows:

1. Drilling procedures: reverse circulation;

2. Drilling procedures: core;

3. Sample security;

4. Laboratory Accreditation;

5. Assay quality assurance;

6. Independent check assays;

7. Metallic screen assays; and

8. Down-hole surveying.

BLRV has set up an on-site geochemical lab used only for internal mill and mine

assay control. The following points outline lab set-up and procedures:

• The BLRV on-site lab is not accredited;

• The chief assayer is Scott Ames, who has 5 years cumulative experience at

the Shasta Geo lab, Baringer Lab, and American assay lab;

• Daniel Belisle, chief assayer for Sigma Gold Mine, Val d’Or Quebec, with 25

years experience, trained BLRV personnel over a two-week period, and

supervised the set-up of BLRV’s sample preparation and assay lab facilities;

• The BLRV lab was audited by SGS labs, Toronto. SGS’s findings were that

BLRV’s lab was functioning to industry standard;

• The lab quality control includes sending selected mill and mine samples to

SGS (Lakefield). for check assaying; and

• During the BLRV assay routine, Rock lab standards (0.1, 0.5 and 0.9 oz/t) are

used. One standard is tested for every 16 samples assayed.

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15.0 SAMPLE PREPARATION, ANALYSIS, and SECURITY

Rock and core samples collected by BLRV were submitted to the Reno, Nevada

office of ALS Chemex. Standard sample preparation for samples involves logging

the sample into the laboratory sample tracking system, drying, crushing, and

pulverizing the entire sample so that greater than 85% passes a 75-micron screen.

Gold was analyzed using the following ALS Chemex procedures:

• Au-AA24 – gold by fire assay (FA) with atomic absorption spectrometry

(AAS) finish, using a 50 gram sample weight, having a result

range from 0.005-10 ppm;

• Au-GRA22 – gold by FA with gravimetric finish, using a 50 gram sample

weight, having a result range from 0.05-1,000 ppm;

• Au-AA25 – ore-grade gold by FA/AAS finish, using a 30 gram sample

weight, having a result range from 0.01-100 ppm;

• Au-AA25D – ore-grade gold duplicate by FA/AAS finish, using a 30 gram

sample weight, having a result range from 0.01-100 ppm; and

• Au-SCR21 – ore-grade gold by dry screening a 1,000 gram (1 kilogram)

sample weight to 100 microns, with duplicate FA on undersize

fraction and FA on entire oversize fraction. Calculate and

report total gold content, individual assays, and weight

fractions. Result range from 0.05-1,000 ppm.

Samples containing ore-grade silver were processed using the Ag-AA46 method

using aqua regia digestion with AAS finish and giving a result range of 1-1,500 ppm.

Thirty-four trace elements were determined by the ME-ICP41 process which uses

aqua regia acid digestion ICPAES (Inductively Coupled Plasma Atomic Emission

Spectrophotometry).

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In North America, ALS Chemex laboratories have achieved ISO 9001:2000

registration and maintain an internal quality control program including the use of

blank, duplicate, and standard samples inserted into the sample stream. ALS

Chemex provides industry-standard sample preparation and analytical methods, and

are deemed by the writer to conform to reasonable data verification controls.

16.0 DATA VERIFICATION

Other than a review of the assay certificates, land status checks, and the Property

examination, the writer did not verify available Property information.

17.0 ADJACENT PROPERTIES

There are no adjacent mineral properties that materially affect the technical opinion

offered in this report.

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18.0 MINERAL PROCESSING and METALLURGICAL TESTING

BLRV has completed the start-up phase of mining operations at the French Gulch Mine,

consisting of overhauling, upgrading, and commissioning a 220 ton per day (t/d) mill,

setting up of an onsite geochemical lab to carry out mining grade control, refurbishing

existing underground workings, constructing a decline to allow mining access to the

unmined portions of the Washington and Lucky 7 veins, and installing and

commissioning of a water treatment plant. The milling facility uses gravity and flotation

circuits, which are shown in Figure 13.

From June through October 2006, BLRV carried out operational testing of the mill.

From June through August, 640 tons of low-grade material from the Washington and

Lucky 7 veins were processed in order to bring mill operation up to acceptable operating

efficiency and to train personnel. Gold produced from the gravity circuit was refined on-

site. Concentrate from the floatation circuit was trucked to Metals Research Group,

Kimberly, Idaho, for cyanide-circuit processing.

From September through October, 3,100 tons of higher-grade material from the Lucky 7

vein was processed. During the start-up phase from June through October, a total of

3,740 tons of mineralized material was processed yielding 1,698 ounces of gold and 350

ounces of silver (0.454 opt (15.57g/t) gold and 0.094 opt (3.22) g/t silver). BLRV

estimates that the mill averaged 90% recovery.

Gold production began at the French Gulch Mine on November 10, 2006. Mill feed is

being taken from the Washington vein, through the rehabilitated I-Level adit, and from

the Lucky 7 vein, through the Robillard and rehabilitated 2630-Level adits.

A 1,183-foot long decline from surface has been constructed and is designed to

access both the Washington and Lucky 7 vein systems below historic working levels.

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48

A cross-cut from the decline to the Lucky 7 vein 236 feet (72 meters) to the south is

currently underway: approximately 196 feet (60 meters) has been completed. When

access to the Lucky 7 has been completed, construction will begin on as many as six

production stopes to facilitate ore extraction (personal communication, Peter Kuhn,

president BLRV).

When the stopes are completed, mined material will be assayed and mixed to supply

mill feed of a constant grade. Grade consistency will increase mill efficiency and allow

gold extraction to be maximized.

In 2005, BLRV requested that McClelland Laboratories Inc carry out metallurgical testing

of high-grade gold-bearing quartz vein material collected from underground workings

(Margolis, 2005). Samples were composed of the following:

• FGMET-1: Washington vein – collected as selected muck from the west end of

the I Level drift. Quartz showed banded texture with visible gold. Samples from

this area have assayed up to 3 opt gold;

• FGMET-2: Lucky 7 vein – collected as selected muck at the base of a raise in the

Robillard adit. A sample of similar material assayed 1.8 opt gold;

• FGMET-3: Lucky 7 vein – collected from a vein exposed in a raise between the

Robillard and A Level. Three foot chip samples were taken across the east and

west faces of the vein; and

• FGMET-4: Lucky 7 vein – collected from 2630 decline 15 feet east of survey

point NE2. Visible gold was observed in the sample.

Results of the metallurgical study of high-grade vein material from the French Gulch

Property showed that gold recovery ranged between 91.8% and 96.0% when a milling

circuit consisting of gravity separation and floatation were used.

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Fig 13

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19.0 MINERAL RESOURCE and MINERAL RESERVE ESTIMATES

In 1996, Smith et al produced a preliminary reserve estimate for the Lucky 7 vein.

Their estimate included:

Table 8: Smith Resource Estimate – Lucky 7 Vein Category Tons Grade

opt g/t

Proven and Probable 2,370.5 2.68 91.9

Possible 1,448.5 3.19 109.4

Total 3819.3 2.87 98.4

Smith also reported an inferred estimate of 18,622 tons grading 3.19 opt (109.4 g/t).

While the reserve estimates prepared by Smith et al are considered relevant, they are

historical, and do not meet NI43-101 standards. BLRV is not treating the reserve

estimates as a NI 43-101 defined resource or reserve verified by the writer. The

writer has not verified assay results or the resource calculations. BLRV has not done

the work necessary to verify the classifications of the resources or reserves. BLRV is

not treating these historical amounts and classifications as a NI 43-101-compliant

defined resource or reserve as the figures have not been verified by a qualified

person. Therefore, the historical estimates should not be relied upon.

20.0 OTHER RELEVANT DATA and INFORMATION

No other relevant data and information is available on the French Gulch Property.

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21.0 INTERPRETATION and CONCLUSIONS

21.1 Interpretation

Mesothermal mineralization is closely related to deep-seated igneous activity, and

deposits can be found in a wide variety of rock types. Host rocks must be structurally

and chemically prepared to create a well-developed fracture system suitable for

permitting access of hydrothermal fluids for a period sufficiently long enough to form

an economic deposit.

Favorable host rocks will be competent (brittle), which are more likely to form

through-going upward-branching open fractures under faulting stresses. Less

competent rocks under similar stresses tend to form stockworks. The introduction of

silica, as host rock replacement and as quartz gangue in vein and breccia fillings, is

an important ground preparation event enhancing the host rock’s ability to fracture

and maintain open fissures.

Some general observations can be made concerning mesothermal mineralization:

• Mesothermal gold mineralization generally occurs in millimeter- to meter-wide

quartz veins hosted by granitic intrusions;

• Veins form parallel arrays (sheeted) and less typically, weakly developed

stockworks;

• Mineralization is most commonly found in continental margin sedimentary

assemblages intruded by igneous plutons

• Veins are structurally controlled by faults, fractures and shears; and

• Mesothermal deposits are characterized by relatively restricted alteration

zones which are most obvious as narrow alteration selvages along the veins.

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52

The following statements are consistent with the above observations:

• Rocks of the Property area have been subjected to structural deformation

through folding and faulting, and observations made of diking and banded

sheared gold mineralized quartz veining suggest that deformational activity

has continued over time;

• In the area of the Washington Mine, the vein system consists of at least six

parallel gold mineralized quartz veins up to 3 feet (0.91 meters) wide;

• Vein systems within the French Gulch Property have been traced along strike

for up to 5,000 feet (1,371 meters);

• Significant gold assays from underground drilling on the Washington vein

suggest that economic gold mineralization may extend to the west, beyond the

boundary of the historically mined ore shoot;

• Underground drilling shows gold mineralization extending at least 450 feet

below historical mine workings on the Washington vein and 350 feet beneath

workings on the Lucky 7 vein;

• Gold mineralization on the French Gulch Property has been interpreted to be

of mesothermal-type with relatively deep mineralization origins, and suggests

that mineralization is more likely to continue at depth rather than be cut off due

to increasing temperature and pressure considerations; and

• Rocks hosting gold mineralization show structural deformation and multiple

episodes of silicification. The area’s complex structure suggests the potential

for a developed feeder system that may have improved gold transport and

deposition.

On the Property, the greatest potential to develop economic gold deposits is in

exploring possible extensions of quartz veining in areas of historic mining.

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53

The relatively recent discovery of the Lucky 7 vein in 1990 supports this observation

on exploration potential.

Due to the generally low technological level of historical mining, to be profitable, only

the richest ore was mined, and mining activity could stop in relatively low grade ore of

0.5 opt gold (Smith, 1996). This high cut-off grade, by today’s standards, would

suggest that there may be economically mineable areas still remaining within historic

workings.

The Niagara and Washington vein systems are parallel, and are situated

approximately 2,000 feet (610 meters) apart. There is potential for gold

mineralization to extend along the trends of the Washington and Niagara veins from

the Franklin Mine, in the east, to the Montezuma-Scorpion vein system in the west, a

distance of 9,000 feet (2,750 meters).

Surface rock samples taken south of the Washington Mine may show another parallel

mineralized structure extending westward from the Milkmaid Mine, and approximately

1,200 feet (365 meters) south of the Washington Mine.

As well, there is the Montezuma-Scorpion vein system in the western portion of the

Property, with a strike length of approximately 5,000 feet (1,500 meters).

Past producing mines in the French Gulch area are;

• 7,100 tons at 2.2 opt produced from the Montezuma Mine;

• 5,000 tons at 1.47 opt produced from the Scorpion Mine;

• 156,000 ounces produced from the Franklin and Milkmaid mines;

• 207,000 ounces from the Gladstone and American mines;

• 400,000 ounces produced from the Brown Bear Mine; and

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• 200,00 ounces from the Washington and Niagara mines.

The following estimates of possible gold grades and tonnage have been included to

give a conceptual idea of the size of the exploration target, and are not to be viewed

or interpreted as NI 43-101-compliant Mineral Reserves or Resources, as currently

defined by C.I.M. terminology. While the figures prepared by or for BLRV are based

on relevant French Gulch-related data from various sources, they are not intended to

and do not meet NI 43-101 standards.

BLRV and the writer are not treating the estimates as a NI 43-101 defined resource

or reserve. The writer’s estimates are intended solely for reference in conceptual

discussion, and therefore should not be relied upon for any other purpose.

Estimates have been based on the following parameters and assumptions:

• Gold mineralized quartz veins are reported ranging in width up to 4 feet (1.2

meters). The average sample width in BLRV’s underground drilling program in

holes RBU-1 to RBU-43 is 3.3 feet (1.0 meter). For estimation purposes, gold

mineralized vein width is assumed to be 3.0 feet;

• The “nugget effect” of coarse gold makes gold mineralization non-

homogeneous. Homogeneity is improved by taking the largest amount of

sample possible. Since drilling only provides a relatively tiny section of rock to

sample, sample results tend to show a great deal of variation in values. Gold

values returned from RBU-1 to RBU-43 range from 0.001 to 185.23 opt, and

the weighted average gold value, using gold grade and sampled width, is

calculated at 2.27 opt. For estimation purposes, it is assumed that overall gold

grade is 1.0 opt; and

• 1 ton of vein material = 11.9 cu. ft.

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On the Washington vein:

• Estimated vein tonnage is 500’ long x 3’ wide x 500’ deep = 63,000 tons; and

• Estimated gold content is 63,000 tons x 1.0 opt = 63,000 ounces.

On the Lucky 7 vein:

• Estimated vein tonnage is 260’ long x 3’ wide x 350’ deep = 22,932 tons; and

• Estimated gold content is 22,932 tons x 1.0 opt = 22,932 ounces.

As BLRV’s underground drilling has shown, there is potential for further gold

mineralization to the west and at depth of the areas of historical mining on the

Washington and Lucky 7 veins. If the length of the mineralized zones on the

Washington and Lucky 7 veins is increased by 50% and the depth is doubled:

• Gold content in the Washington vein is estimated to be 189,000 ounces; and

• Gold content in the Lucky 7 vein is estimated to be 68,800 ounces.

The combined estimated gold content in the Washington and Lucky 7 veins is

257,800 ounces. This combined estimate does not include what may be developed

from the currently discontinuous gold mineralization in the nearby parallel Santa

Maria, No. 2, and Dean veins.

Only up to 750 feet of vein length of the Washington vein system was used. There is

gold mineralization potential along the vein system’s possible 9,000 feet of strike

toward the Montezuma-Scorpion vein system to the west. The whole of the

Washington system may not be economically mineralized, but there is good potential

for discovery of more high-grade ore shoots similar to the Washington Mine.

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The Niagara mine has not been included in the estimates as there has been no

underground drilling completed. BLRV’s surface drilling program in the Niagara area

returned one interval of 1.97 opt (64.5 g/t) gold over 2.3 feet (0.7 meters) in BRS-6,

suggesting that, as at the Washington Mine, gold mineralization may extend beyond

historical workings. The Niagara Mine is also part of another possible 9,000-foot

(2,750-meter) vein system, situated approximately 2,000 feet (610 meters) north of

the Washington system and parallel to it.

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21.2 Conclusions

The objective of this summary report is to assess the potential for the French Gulch

Property to host economic vein-type gold mineralization.

The French Gulch Property is considered to have good potential to host an economic

vein-type gold deposit because:

• the Property area exhibits long-term, possibly episodic, tectonic activity;

• rock sampling and drilling indicate that gold is present in the area’s

hydrothermal mineralizing system;

• The number of historically producing mines within the French Gulch Property,

and in the French Gulch Mining District as a whole, demonstrates that the

mineralizing system in the area carried economic grades and quantities of gold

• Large portions of the three major vein systems on the French Gulch Property

are relatively unexplored along strike and at depth; and

• Gold mineralization in the Lucky 7 and Washington veins extends west beyond

the limit of the historically described gold mineralized ore shoots, and is also

open at depth.

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22.0 RECOMMENDATIONS

The French Gulch Property is of sufficient merit to justify the following exploration

program. There are enough suitable exploration targets identified on the Property

that an individual component of the proposed exploration program is not contingent

on the successful completion of any other component. The only condition would be

whether a particular underground area can be safely accessed.

A ground magnetometer survey should be carried out to help identify surface vein

expressions. As mag survey results may aid in locating future drilling, survey work

should be completed prior to drilling. However, unsuitable or inconclusive mag

results should not affect surface drilling as there may be no vein surface expressions

Surface rock sampling should be carried out to test the existence of gold

mineralization along the inferred strikes of the Washington, Niagara, and

Montezuma-Scorpion vein systems. Underground sampling should also be carried

out as access to historical mining locations becomes available.

Core drilling should be carried out on surface and underground. Drilling should total

approximately 12,000 feet and be carried out in the following areas:

• 4,000 feet: West of the currently identified gold mineralized zones in the

Washington and Lucky 7 veins to test for mineralization extensions;

• 2,000: In the Scorpion Mine area; and

• 6,000 feet: Underground at the Niagara Mine.

The recommended work program is estimated to cost US$1,100,000.

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22.1 Proposed Budget

PROPOSED BUDGET, Drilling French Gulch, Shasta and Trinity Counties, California ALL A$Personnel: Geologists, geotechs, data techs, & supervision $ 150,000 Support Costs 140,000 Drilling & other contracts 720,000 Mag Survey 10,500 Refurbish underground at Niagara 30,000 Assays & analysis 40,000 Report: 43-101-compliant 10,000 Operator fee (5%) 55,000 Contingency 30,000 Rounded to $ 1,100,000

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23.0 REFERENCES

Albers, J.P., 1965, Economic Geology of the French Gulch Quadrangle, Shasta and

Trinity Counties, California, California Division of Mines and Geology, Special Report 85.

BHC (Beacon Hill Consultants (1988) Ltd), 1996, A Review of the Exploration Potential of the Washington Niagara Property, Shasta County, California, for Zore Inc.

Doe, B.R., Delevaux, M.H., and Albers, J.P., 1985, The Plumbotectonics of the West Shasta Mining District, Eastern Klamath Mountains, California, in Economic Geology, Vol. 80, 1985, pp. 2136-2148.

Hembree, D.R.. 2002, Preliminary Economic Evaluation of the Washington `Mine Property, Shasta County, California.

Jenks, J., 2005, Observations and Recommendations, the Washington Niagara Mine, French Gulch Area, Shasta County, California, USA, for Bullion River Gold Corp.

Lapierre, H., Albarede, F., Albers, J., Cabanis, B., and Coulon, C., 1985, Early Devonian volcanism in the eastern Klamath Mountains, California: Evidence for an immature island arc: Canadian Jour. Earth Sci., v. 22, p. 214-226.

Margolis, J., 2005, French Gulch Resources and Exploration Program Status, Bullion River Gold Memorandum to P. Kuhn, President.

Margolis, J., 2005, French Gulch Project Metallurgy, Bullion River Gold Memorandum to P. Kuhn, President, February 4, 2005.

Ross, K.V., 2006, Petrographic Report on the French Gulch Project, Shasta County, California, for Bullion River Gold Corp, 18 May 2006.

Smith, A.L., 1996, Preliminary Examination of the Washington Niagara Property, French Gulch-Deadwood District, Shasta County, California, for Mineral Resources Inc.

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GLOSSARY

Conversion Factors To Convert From To Multiply By Feet Meters 0.305 Meters Feet 3.281 Miles Kilometers ("km") 1.609 Kilometers Miles 0.6214 Acres Hectares ("ha") 0.405 Hectares Acres 2.471 Grams Ounces (Troy) 0.03215 Grams/Tonne Ounces (Troy)/Short Ton 0.02917 Ounces/Ton(opt) Grams/Tonne (g/t) 34.2857 Tonnes (metric) Pounds 2,205 Tonnes (metric) Short Tons 1.1023

Mineral Elements Au Gold Bi Bismuth Pb Lead Ag Silver Cu Copper Sb Antimony As Arsenic Hg Mercury Zn Zinc Ba Barium Mo Molybdenum Alteration: Any change in the mineralogical composition of a rock that is brought

about by physical or chemical means.

Anomaly: A geochemical or geophysical character which deviates from regularity.

Argillic: Pertaining to clay or clay minerals. Disseminated precious metal deposits may exhibit “argillic” alteration characterized by the formation of the clay minerals kaolinite and montmorillonite. Epithermal precious metal deposits may exhibit “advanced argillic” alteration characterized by the clays dickite, kaolinite and pyrophyllite.

Breccia: A rock composed of highly angular course fragments.

Clastic: Consisting of fragments moved from their place of origin.

Conjugate Fractures/Veins: Parallel structures which may have opposite dips.

Cratonic: Pertaining to the relatively immobile part of the earth, the generally large central portion of a continent.

Detachment: Independent styles of deformation in rocks associated with folding and over-thrusting.

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Disconformity: An unconformity between parallel rock strata where strata dip at different angles.

Epigenetic: A mineral deposit formed later than the enclosing rocks. In ore petrology, applied to mineral deposits of later origin than the enclosing rocks or to the formation of secondary minerals by alteration.

Epithermal Deposit: Formed at shallow depths by low-temperature hydrothermal solutions.

Epizonal: Metamorphism created by low to moderate temperatures and pressures.

Felsic: Composed of light-colored minerals such as feldspar and quartz.

Ga: Billion years.

Gangue: Assessory minerals associated with ore in a vein.

Hornfels: A fine-grained non-schistose rock resulting from contact metamorphism.

Hydrothermal: An adjective applied to heated or hot aqueous-rich solutions, to the processes in which they are concerned, and to the rocks, ore deposits and alteration products produced by them.

Hypabyssal: Intrusions which have formed under intermediate temperature and pressure conditions between deep, plutonic, and near surface extrusive.

Ma: Million years.

Mafic: A general term for “dark” rock forming minerals.

Magmatic: Derived from naturally occurring mobile rock material (magma).

Mesothermal: A hydrothermal mineral deposit formed at considerable depth and in the temperature range of 200 to 300 degrees C.

Metamorphic: A process whereby rock is changed in situ by changes to pressure, temperature, and the chemical environment.

Metasomatism: Process whereby rocks are altered when volatiles exchange ions with them and a new mineral may grow inside the body of an old mineral.

Middlings: Particles incompletely liberated into concentrate or gangue.

Normal Fault: A fault in which the hanging wall is lowered relative to the foot wall.

Orogeny: Mountain building, particularly by folding and thrusting.

Orthogneiss: gneissic (foliated metamorphic) rock derived from an igneous rock.

Paragneiss: A gneissic (foliated metamorphic) rock derived from a sediment.

Pluton: Igneous rock formed beneath the surface by consolidation from magma.

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Porphyritic: A rock texture where large crystals are set in a finer ground mass.

Pyroclastic: Volcanic materials explosively or aerially ejected from a volcanic vent.

Reverse/Thrust Fault: A fault in which the hanging wall is raised relative to the foot wall.

Right-lateral Fault: A strike-slip fault in which relative movement is to the right.

Selvage: A thin layer of material.

Sericitic Alteration: Forming sericite from the decomposition of feldspars.

Silicification: The introduction of, or replacement by, silica.

Skarn: Derived from limestone and dolomite by the addition of silica, iron, magnesium, and aluminum to form a suite of lime-bearing silicate minerals.

Stockwork: A rock mass interpenetrated by small veins.

Strike-slip Fault: A fault where displacement is in the strike direction of the fault.

Subduction: Descent of one tectonic unit under another.

Tails: Sectional residue, e.g., table tailings, which is the residue from shaking screens and tables

Terrane: The area or surface over which a rock or group of rocks is prevalent.

Transverse Fault: A fault with a strike which cuts across the general structure.

Unconformity: An erosional surface separating younger and older rock beds.

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64

Edward Harrington, B.Sc., P.Geo. 3476 Dartmoor Place, Vancouver, BC, V5S 4G2

Tel: (604) 437-9538 Email: [email protected]

CERTIFICATE OF AUTHOR I, Edward D. Harrington, do hereby certify that:

1. I graduated with a B.Sc. degree in Geology from Acadia University, Wolfville,

Nova Scotia in 1971.

2. I am a Member in good standing with the Association of Professional

Engineers and Geoscientists of British Columbia, License #23328.

3. I have pursued my career as a geologist for over twenty years in Canada, the

western United States, the Sultanate of Oman, and Mexico.

4. I have read the definition of “qualified person” set out in National Instrument

43-101 (“NI 43-101”) and certify that by reason of my education, affiliation with

a professional association as defined in NI 43-101, and past relevant work

experience, I fulfill the requirements to be a “qualified person” for the purposes

of NI 43-101.

5. I am responsible for the preparation of the technical report titled “Summary

Report on the French Gulch Property, Shasta and Trinity Counties, California,

U.S.A” and dated January 7, 2007 (the “Summary Report”). I inspected the

Property on November 29 and 30, 2006. I have read National Instrument 43-

101 and Form 43-101F1, and the Technical Report has been prepared in

compliance with that instrument and form.

6. I am independent of the issuer applying all of the tests in section 1.4 of

National Instrument 43-101 and I have not had prior involvement with the

Property that is the subject of the Summary Report.

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7. I am not aware of any material fact or material change with respect to the

subject matter of the Summary Report that is not reflected in the Summary

Report, the omission to disclose which makes the Summary Report

misleading. This report is based on geological assessment reports, raw assay

data, personal interviews, and published and unpublished literature

researched by me and/or in the Reliance Geological Services library and

records, and I have visited the subject property personally.

8. I consent to the use of this Summary Report, only in its entirety, in a

prospectus or any similar offering document, for presentation to any stock

exchange or other regulatory authority, and for publication, including electronic

publication accessible by the public. Any use of excerpts must be subject to

my prior written consent.

Dated this 7th day of January, 2007.

Edward D. Harrington, B.Sc., P.Geo.

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APPENDIX A

Claim Information

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Claim Information - French Gulch Property

Claim CAMC# Claimant County Location

Date Sec. Twn. Range BACON 29964 WNM Shasta 2/6/1974 18/T33N/R7W BADLEM 29966 WNM Shasta 2/6/1974 18/T33N/R7W BARNEY COLEMAN 29965 WNM Shasta 2/6/1974 18/T33N/R7W BISMARK 29969 WNM Shasta 10/31/1974 18/T33N/R7W CALIFORNIA 29963 WNM Shasta 2/6/1974 18/T33N/R7W COLD SPRING NO 2 29967 WNM Shasta 10/31/1974 18/T33N/R7W CROSS ROADS 29991 WNM Shasta 1/5/1933 17/T33N/R7W EAST SIDE FRACTION 29978 WNM Shasta 1/23/1946 18/T33N/R7W EVENING STAR 29985 WNM Shasta 11/21/1887 17/T33N/R7W GANNON 29968 WNM Shasta 10/31/1974 18/T33N/R7W GLOBE 29980 WNM Shasta 12/22/1941 17/T33N/R7W HALCYON 29979 WNM Shasta 12/22/1941 18/T33N/R7W HOBO #3 44436 WNM Shasta 7/1/1953 17/T33N/R7W HOBO #4 44437 WNM Shasta 7/1/1953 17/T33N/R7W ILLINOIS 29961 WNM Shasta 3/2/1974 18/T33N/R7W J J MORAN QUARTZ 51888 WNM Shasta 8/24/1971 8/T33N/R7W LONE PINE 72109 WNM Shasta 8/27/1980 17/T33N/R7W MIDWAY 29982 WNM Shasta 12/22/1941 17/T33N/R7W MIDWAY FRACTION 29977 WNM Shasta 1/16/1942 17/T33N/R7W MISSOURI 29962 WNM Shasta 3/2/1974 18/T33N/R7W RUBY PEARL 29981 WNM Shasta 12/22/1941 18/T33N/R7W SCORPION EXTENSION 29970 WNM Shasta 3/2/1974 18/T33N/R7W SILVER GRAY 29992 WNM Shasta 10/6/1922 17/T33N/R7W SILVER GRAY EXT. 29988 WNM Shasta 11/15/1937 18/T33N/R7W SOUTH SIDE MINE 29975 WNM Shasta 4/2/1935 17/T33N/R7W SPRING #2 72108 WNM Shasta 8/27/1980 18/T33N/R7W TRI-COON 266529 F. Pollack

and WNM Shasta 9/21/1995 17/T33N/R7W

Washington Mill Site WNM Shasta 16/33N/7W Washington Quartz and Placer Mine

WNM Shasta 17/33N/7W

Washington Quartz and Placer Mine

WNM Shasta 16,17/33N/7W

Washington Quartz and Placer Mine

WNM Shasta 17/33N/7W

Bell Gold Quartz Mine WNM Shasta 17,18/33N/7W Brown Gold Quartz Mine WNM Shasta 18/33N/7W Chinn Gold Quartz Mine WNM Shasta 7,8,17/33N/7W Coleman Quartz Mine WNM Shasta 17,18/33N/7W Ike Wertz Parcel of Combination Gold Quartz Mine

WNM Shasta 17/33N/7W

Comet Gold Quartz Mine WNM Shasta 18/33N/7W North Star Gold Quartz WNM Shasta 18/33N/7W

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Claim CAMC# Claimant County Location

Date Sec. Twn. Range Western Extension Gold Quartz Mine

WNM Shasta 17/33N/7W

William T Quartz Claim WNM Shasta 17,18/33N/7W Yosemite Quartz Mine WNM Shasta 7,8,17,18/33N/7W Eastern Extension Quartz WNM Shasta 8,17/33N/7W

Montezuma Gold Quartz WNM Shasta / Trinity

7,18/33N/7W; 12,13/33N/8W

Scorpion Mine WNM Shasta 18/33N/7W Cold Spring Quartz Mine WNM Shasta 18/33N/7W Spring Quartz Mine WNM Shasta 18/33N/7W Summit Gold Quartz WNM Shasta /

Trinity 18/33N/7W; 13/33N/8W

Centennial Gold Quartz WNM Shasta 7,8/33N/7W

Shea Placer WNM Shasta 8/33N/7W Jumbo Gold Quartz Mine WNM Shasta 7/33N/7W Locke Gold Quartz Mine WNM Shasta 7/33N/7W Polaris Quartz Mining WNM Shasta 7/33N/7W Honey Comb Gold Quartz

WNM Shasta 7,8/33N/7W

Shea Gold Quartz Mine WNM Shasta 7/33N/7W Victory Gold Quartz Mine WNM Shasta 7/33N/7W

JD1 282502 BLRV Shasta 8/33N/7W JD2 282503 BLRV Shasta 8/33N/7W JD3 282504 BLRV Shasta 8/33N/7W JD4 282505 BLRV Shasta 8/33N/7W JD5 282506 BLRV Shasta 8/33N/7W JD6 282507 BLRV Shasta 8/33N/7W JD7 282508 BLRV Shasta 8/33N/7W JD8 282509 BLRV Shasta 8,9/33N/7W JD9 282510 BLRV Shasta 9/33N/7W JD10 282511 BLRV Shasta 9/33N/7W JD11 282512 BLRV Shasta 17/33N/7W

JD12 - Colorado Quartz (Stump)

282513 BLRV Shasta 17/33N/7W

JD13 282514 BLRV Shasta 17/33N/7W JD14 282515 BLRV Shasta 17/33N/7W JD15 283018 BLRV Shasta 16/33N/7W JD16 283019 BLRV Shasta 16/33N/7W JD17 283020 BLRV Shasta 16/33N/7W JD18 283021 BLRV Shasta 16/33N/7W JD19 283022 BLRV Shasta 16/33N/7W JD20 283023 BLRV Shasta 16/33N/7W JD21 283024 BLRV Shasta 16/33N/7W JD22 283025 BLRV Shasta 16/33N/7W JD23 283026 BLRV Shasta 17/33N/7W

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Claim CAMC# Claimant County Location

Date Sec. Twn. Range JD24 283027 BLRV Shasta 17/33N/7W JD25 283028 BLRV Shasta 17/33N/7W JD26 283029 BLRV Shasta 17/33N/7W JD27 283030 BLRV Shasta 17,18/33N/7W JD28 283031 BLRV Shasta 17,18/33N/7W JD29 283032 BLRV Shasta 17,18/33N/7W JD30 283033 BLRV Shasta 17,18/33N/7W JD31 283034 BLRV Shasta 18/33N/7W JD32 283035 BLRV Shasta 18/33N/7W JD33 283036 BLRV Shasta 18/33N/7W JD34 283037 BLRV Shasta 18/33N/7W JD35 283038 BLRV Shasta 18/33N/7W JD36 283039 BLRV Shasta 18/33N/7W JD37 283040 BLRV Shasta 18/33N/7W JD38 283041 BLRV Shasta 18/33N/7W JD39 283042 BLRV Shasta 13/33N/8W; 18/33N/7W JD40 283043 BLRV Shasta 13/33N/8W; 18/33N/7W JD41 283044 BLRV Shasta 13/33N/8W; 18/33N/7W JD42 283045 BLRV Shasta 8, 17/33N/7W JD43 282516 BLRV Shasta 7/33N/7W JD44 282517 BLRV Shasta 7/33N/7W JD45 282518 BLRV Shasta 7/33N/7W JD46 282519 BLRV Shasta 7,8/33N/7W JD47 282520 BLRV Shasta 7,8/33N/7W JD48 282521 BLRV Shasta 7,8/33N/7W JD49 282522 BLRV Shasta 7,8/33N/7W JD50 282523 BLRV Shasta 7,8/33N/7W JD52 283046 BLRV Shasta 7, 18/33N/7W JD53 283047 BLRV Shasta 7, 18/33N/7W JD54 283785 BLRV Shasta 8/33N/7W JD55 283786 BLRV Shasta 8/33N/7W JD56 283787 BLRV Shasta 8/33N/7W JD57 283788 BLRV Shasta 8/33N/7W JD58 283789 BLRV Shasta 8/33N/7W JD59 283790 BLRV Shasta 8/33N/7W JD60 283791 BLRV Shasta 8/33N/7W JD61 283792 BLRV Shasta 8/33N/7W JD62 283793 BLRV Shasta 8/33N/7W JD63 283794 BLRV Shasta 8/33N/7W JD64 283795 BLRV Shasta 8/33N/7W JD65 283796 BLRV Shasta 8/33N/7W JD66 283797 BLRV Shasta 8/33N/7W JD67 283798 BLRV Shasta 8/33N/7W

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APPENDIX B

Historical Drilling

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Washington-Niagara Mining Partnership Location UTM Hole Depth Hole

Easting Northing Elevation

feet Elevation

meters Dip Az.

feet meters

WNDH-01 527736.

0 4507397.0 2150 655.3 -90o - 190 57.9

WNDH-02 527744.

0 4507562.0 2150 655.3 -90o - 180 54.9

WNDH-03 527718.

0 4507604.0 2175 662.9 -90o - 95 29.0

WNDH-04 527648.

0 4507275.0 2330 710.2 -900 - 200 61.0

WNDH-05 527656.

0 4507487.0 2330 710.2 -900 - 200 61.0

WNDH-06 527416.

0 4507505.0 2680 816.9 -900 - 200 61.0

WNDH-07 527459.

0 4507655.0 2605 794.0 -90O - 240 73.2

WNDH-08 527509.

0 4507779.0 2530 771.1 -90O - 160 48.8

WNDH-09 527552.

0 4507741.0 2500 762.0 -90O - 180 54.9

WNDH-10 527527.

0 4507646.0 2480 755.9 -90O - 140 42.7

WNDH-11 527363.

0 4507782.0 2580 786.4 -90O - 240 73.2

WNDH-12 527444.

0 4507610.0 2600 792.5 -90O - 120 36.6

WNDH-13 527495.

0 4507543.0 2600 792.5 -90O - 190 57.9

WNDH-14 527134.

0 4507345.0 2470 752.9 -90O - 220 67.1

WNDH-15 527169.

0 4507343.0 2505 763.5 -90O - 65 19.8

WNDH-16 526922.

0 4507515.0 2720 829.1 -90O - 240 73.2

WNDH-17 526923.

0 4507479.0 2665 812.3 -90O - 97 29.6

WNDH-18 525770.

0 4507155.0 2930 893.1 -90O - 140 42.7

WNDH-19 525890.

0 4507197.0 2915 888.5 -90O - 85 25.9

WNDH-20 525377.

0 4507500.0 3410 1039.4 -90O - 140 42.7

WNDH-21 525171.

0 4507173.0 3390 1033.3 -90O - 240 73.2

WNDH-22 525180.

0 4507176.0 3395 1034.8 -90O - 45 13.7

WNDH-23 526152.

0 4507862.0 3270 996.7 -90O - 200 61.0

WNDH-24 526085.

0 4507833.0 3255 992.1 -90O - 220 67.1

WNDH-25 524954.

0 4507641.0 3920 1194.8 -90O - 220 67.1

WNDH-26 526056. 4507327.0 2870 874.8 -90O - 180 54.9

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2

Location UTM Hole Depth Hole Easting Northing

Elevation feet

Elevation meters

Dip Az. feet meters

0

WNDDH-1 527467.

0 4507566.0 2601 792.8 -90O - 219 66.8

WNDDH-2 527360.

0 4507600.0 2707 825.1 -90O - 213 64.9

WNDDH-3 525172.

0 4507182.0 3390 1033.3 -53O 130O 612 186.5 Lion Trail Minerals

Location UTM Hole Depth Hole Easting Northing

Elev. feet

Elev. meters

Dip Az. feet meters

L7-97-01 527086.9 4507605.0 2780 847.34 -56O 162o 675 205.7

L7-97-02 527084.8 4507603.2 2780 847.34 -58O 177o 780 237.7

LTDDH-1 527319.0 4507374.0 2614 795.53 -90O 351o 341 103.8

LTDDH-2 527332.0 4507370.0 2611 795.83 -90O 358o 327 99.1

LTDDH-3 527283.6 4507516.6 2730 832.10 -75O 180o 236 71.9

LTDDH-4 527210.0 4507525.0 2710 826.01 -63.5O 167o 215 65.5

LTDDH-5 527211.0 4507528.0 2710 826.01 -70O 167o 219 66.8

NV97-01 525866.6 4507870.9 3410 1039.37 -50O 115o 800 243.8

NV97-02 525866.6 4507870.9 3410 1039.37 -68O 140o 715 217.9

2V97-01 527210.0 4507525.0 2710 826.01 -50O 040o 200 61.0

3V97-01 527090.0 4507565.0 2780 847.34 -50O 290o 500 152.4

3V97-02 - - - - -50O 1602o 500 152.4

WN97-01 527209.0 4507526.0 2710 826.0 -56O 320o 640 195.1

WN97-02 527209.0 4507530.0 2710 826.0 -53O 297o 805 245.4

Location UTM Hole Depth Hole Easting Northing

Elevation feet

Elevation meters

Dip Az feet meters

FG87-01 527954.

0 4507666.

0 2035 620.27 -45o - 427 130.2

FG87-02 527955.

0 4507666.

0 2035 620.27 -37o - 339 103.3

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3

Location UTM Hole Depth Hole Easting Northing

Elevation feet

Elevation meters

Dip Az feet meters

FG87-03 527926.

0 4507900.

0 2170 661.42 -35o - 153 46.5

FG87-04 527928.

0 4507901.

0 2170 661.42 -25O - 123 37.3

FG87-05 527896.

0 4507953.

0 2200 670.56 -30O - 189 57.6

3V97-01 527210.

0 4507525.

0 2710 826.01 -50O - 200 61.0

3V97-02 527090.

0 4507565.

0 2780 847.34 -50O - 500 152.4

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APPENDIX C

BLRV Surface Drilling

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Location Hole Northing Easting

Length Azimuth Dip

BRS-1 4507555 525850 1243 340o -55o BRS-2 4507555 525850 1344 343o -47o BRS-3 4507555 525850 458 007o -48o BRS-4 4507755 526080 1186 360o -71o BRS-5 4507755 526080 1102 358o -57o BRS-6 4507755 526080 1149 030o -53o BRS-7 4507755 526080 1303 327o -51o BRS-8 4507605 527085 663 128o -72o BSR-9 4507605 527085 680 141o -80o BRS-10 4507605 527065 615 137o -70o BRS-11 4507605 527085 600 162o -77o BRS-12 4507605 527085 715 162o -82o BRS-13 540 BRS-14 760 BRS-15 852 BRS-16 900

Sample Location Gold Interval

Hole Sample #

From To feet meters

opt g/t

Ag g/t

BRS-4 323.5 326.5 3.0 0.9 0.064 2.18 0.5 BRS-5 614.5 618.5 4.0 1.2 0.039 1.34 0.6 BRS-6 461.0 465.0 4.0 1.2 0.018 0.62 465.0 467.3 2.3 0.7 1.970 67.54 14.8 704.3 706.5 2.2 0.7 0.057 1.95 0.7 706.5 708.8 2.3 0.7 0.082 2.81 0.9 BRS-7 No data BRS-8 No data BSR-9 2362 315.9 318.0 2.1 0.6 0.07 2.28 1 2371 342.5 345.7 3.2 1.0 0.11 3.79 6.2 BRS-10 2446 140.0 145.0 5.0 1.5 0.05 1.56 0.7 2496 345.0 350.0 5.0 1.5 0.04 1.28 1.2 BRS-11 2618 320.0 323.1 3.1 0.9 0.07 2.43 1.8 2620 323.1 324.3 1.2 0.4 0.06 1.92 2.3 2621 324.3 325.3 1.0 0.3 0.08 2.81 2.2 2623 325.3 326.5 1.2 0.4 0.04 1.38 1.8 323.1 to 326.5 3.4 1.0 0.06 1.99 2.1 2688 575.0 576.0 1.0 0.3 0.28 9.50 1.2 BRS-12 2915 170.0 172.2 2.2 0.7 0.05 1.80 1 2930 285.0 290.0 5.0 1.5 0.03 1.09 <0.2 3123 694.1 699.0 4.9 1.5 0.04 1.44 0.4 BRS-13 3141 0.18 6.00 4.5 3142 0.08 2.67 1 3143 0.06 2.16 2.8 3144 0.06 1.96 2.5 3145 0.11 3.64 1.7

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2

Sample Location Gold Interval

Hole Sample #

From To feet meters

opt g/t

Ag g/t

3146 0.03 0.95 1 3147 0.02 0.53 0.3 210.0 to 245.0 0.52 17.83 3179 330.5 331.0 0.5 0.2 0.04 1.43 0.6 3185 426.0 427.0 1.0 0.3 0.15 5.26 3.5 BRS-14 3005 135.0 136.3 1.3 0.4 0.11 3.65 2.1 3006 136.3 140.0 3.7 1.1 0.24 8.19 0.3 3029 308.3 310.0 1.7 0.5 0.03 1.05 5.5 3030 310.0 311.9 1.9 0.6 0.27 9.39 75.4 3031 311.9 315.0 3.1 0.9 0.01 0.49 1.8 3032 315.0 316.3 1.3 0.4 0.02 0.78 1.8 3034 320.0 322.8 2.8 0.9 0.03 0.92 0.6 3035 322.8 323.3 0.5 0.2 0.21 7.08 38.6 308.3 to 322.8 15.0 4.6 0.06 1.90 12.2 3039 322.8 323.9 1.1 0.3 0.03 1.09 0.3 3085 560.0 565.4 5.4 1.6 0.08 2.63 0.3 3303 650.0 651.8 1.8 0.5 0.07 2.48 0.2 3306 659.0 662.4 3.4 1.0 0.07 2.25 1.4 3307 662.4 665.2 2.8 0.9 0.13 4.50 0.7 659.0 to 665.2 6.2 1.9 0.10 3.27 1.0 3314 684.7 685.4 0.7 0.2 0.06 2.20 0.8 3315 685.4 689.3 3.9 1.2 0.03 1.04 0.6 684.7 to 689.3 4.6 1.4 0.04 1.21 0.7 BRS-15 3339 155.6 157.0 1.4 0.4 0.05 1.61 0.5 3340 157.0 160.0 3.0 0.9 0.07 2.49 0.5 155.6 to 160.0 4.4 1.3 0.06 2.21 0.5 3469 704.3 706.5 2.2 0.7 0.10 3.32 <0.2 3490 784.0 788.3 4.3 1.3 0.04 1.26 0.6 BRS-16 3206 124.2 129.6 5.4 1.6 0.09 3.25 <0.2 3229 300.0 301.2 1.2 0.4 0.03 1.08 <0.2 3263 465.0 470.0 5.0 1.5 0.03 1.07 <0.2 3264 470.0 475.0 5.0 1.5 0.06 2.01 <0.2 465.0 to 475.0 10.0 3.0 0.04 1.54 <0.2 3271 505.0 510.0 5.0 1.5 0.03 1.04 <0.2 3275 526.0 530.0 4.0 1.2 0.07 2.27 <0.2 3276 530.0 532.5 2.5 0.8 0.09 3.09 <0.2 3277 532.5 535.0 2.5 0.8 0.05 1.55 <0.2 526.0 to 535.0 9.0 2.7 0.07 2.30 <0.2

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APPENDIX D

BLRV Underground Drilling Significant Drill Intercepts RBU-1 to RBU-43

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i

Hole From to Length Au opt

Cutoff (opt)

Au g/t Visible Gold

RBU-1 379.0 389.0 10.0 1.317 0.01 45.1

including 382.1 389.0

0 6.90 1.901 0.2 65.2

including 382.1 384.3

0 2.20 5.403 0.5 185.2 X RBU-2 359.5 391.0 31.5 0.215 0.01 7.4 X

including 364.0 365.5 1.5 1.260 0.5 43.2 X and

including 372.5 386.0 13.5 0.298 0.1 10.2 X RBU-3 459.3 462.0 2.7 0.016 0.01 0.5

493.5 517.5 24.0 0.269 0.01 9.2 X including 497.0 506.5 9.5 0.636 0.1 21.8

with 497.0 499.2 2.2 2.179 0.5 74.7 X 572.5 580.2 7.7 0.017 0.01 0.6 201.5 202.5 1.0 0.017 0.01 0.6

RBU-4 392.5 433.0 40.5 0.140 0.01 4.8 X including 411.5 414.0 2.5 0.877 0.5 30.1 X

and including 420.5 428.2 7.7 0.248 0.1 8.5 X RBU-5 458.9 463.4 4.5 0.012 0.01 0.4 RBU-6 no values > 0.01 opt Au 0.0 RBU-7 431.2 441.2 10.0 0.018 0.01 0.6

447.4 466.0 18.6 0.155 0.01 5.3 X including 452.0 455.0 3.0 0.827 0.50 28.4

470.1 477.0 6.9 0.020 0.01 0.7 RBU-8 no values > 0.01 opt Au; hole did not reach target 0.0 RBU-9 204.8 216.0 11.2 0.102 0.01 3.5

including 208.5 212.3 3.8 0.248 0.2 8.5 X 453.0 465.0 12.0 0.028 0.01 1.0 473.0 478.0 5.0 0.013 0.01 0.4 481.0 483.5 2.5 0.021 0.01 0.7 488.7 493.0 4.3 0.086 0.01 2.9

RBU-10 257.0 261.0 4.0 0.020 0.01 0.7 337.5 345.5 8.0 0.072 0.01 2.5

RBU-11 315.0 331.0 16.0 0.069 0.01 2.4 319.0 321.8 2.8 0.215 0.1 7.4

RBU-12 218.0 223.0 5.0 0.019 0.01 0.7 449.6 454.5 4.9 0.039 0.01 1.3

RBU-13 371.9 388.9 17.0 0.356 0.01 12.2 including 380.7 381.4 0.7 7.060 0.5 242.1 X RBU-14 343.0 373.0 30.0 0.839 0.01 28.8 X including 348.0 361.0 13.0 1.886 0.2 64.7 X

with 350.6 353.8 3.2 5.221 0.5 179.0 X RBU-15 373.0 377.3 4.3 0.017 0.01 0.6

406.8 411.0 4.2 0.011 0.01 0.4 417.0 424.0 7.0 0.031 0.01 1.1

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ii

Hole From to Length Au opt

Cutoff (opt)

Au g/t Visible Gold

437.5 447.5 10.0 0.243 0.01 8.3 including 442.5 447.5 5.0 0.474 0.2 16.3 X

454.5 462.5 8.0 0.054 0.01 1.9 502.5 505.5 3.0 0.279 0.01 9.6

including 502.5 504.3 1.8 0.437 0.2 15.0 RBU-16 530.0 558.0 28.0 0.032 0.01 1.1 including 531.7 534.2 2.5 0.203 0.2 7.0 RBU-17 217.0 224.3 7.3 0.024 0.01 0.8

240.0 245.0 5.0 0.014 0.01 0.5 248.0 258.0 10.0 0.024 0.01 0.8 263.0 267.0 4.0 0.017 0.01 0.6 313.4 318.0 4.6 0.065 0.01 2.2

including 317.0 318.0 1.0 0.181 0.1 6.2 X RBU-18 418.5 424.0 5.5 0.077 0.01 2.6 including 418.5 420.1 1.6 0.233 0.2 8.0

426.0 430.5 4.5 0.178 0.1 6.1 X 452.4 454.7 2.3 0.805 0.5 27.6 459.5 461.6 2.1 0.014 0.01 0.5

RBU-19 207.5 209.5 2.0 0.052 0.01 1.8 493.0 495.6 2.6 0.033 0.01 1.1

RBU-20 215.4 223.5 8.1 0.050 0.01 1.7 including 222.5 223.5 1.0 0.174 0.1 6.0

237.0 242.5 5.5 0.048 0.01 1.6 X 256.3 261.5 5.2 0.385 0.01 13.2

including 257.8 261.5 3.7 0.537 0.5 18.4 266.0 272.0 6.0 0.024 0.01 0.8 277.0 278.0 1.0 0.028 0.01 1.0 325.8 329.8 4.0 0.024 0.01 0.8 339.3 350.0 10.7 0.074 0.01 2.5

including 344.0 347.0 3.0 0.135 0.1 4.6 RBU-21 111.8 126.2 14.4 0.184 0.01 6.3 including 120.2 121.6 1.4 1.611 0.5 55.2 X

200.8 212.0 11.2 0.015 0.01 0.5 277.5 279.2 1.7 0.054 0.01 1.9 282.5 286.5 4.0 0.047 0.01 1.6 315.0 319.0 4.0 0.025 0.01 0.9

RBU-22 253.0 255.0 2.0 0.016 0.01 0.5 403.5 407.8 4.3 0.066 0.01 2.3 X 461.5 462.5 1.0 0.016 0.01 0.5 527.5 531.1 3.6 0.154 0.01 5.3

including 530.1 531.1 1.0 0.520 0.5 17.8 552.0 557.0 5.0 0.014 0.01 0.5 575.8 576.8 1.0 0.081 0.01 2.8 593.7 596.2 2.5 0.020 0.01 0.7

RBU-23 109.5 112.0 2.5 0.269 0.1 9.2 119.5 125.0 5.5 0.038 0.01 1.3 X

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iii

Hole From to Length Au opt

Cutoff (opt)

Au g/t Visible Gold

135.0 138.4 3.4 0.015 0.01 0.5 207.0 212.0 5.0 0.018 0.01 0.6 217.0 221.1 4.1 0.028 0.01 1.0 X 228.0 232.9 4.9 0.132 0.01 4.5 X

including 230.5 232.9 2.4 0.251 0.1 8.6 X 241.0 250.8 9.8 0.692 0.01 23.7 X

including 245.5 247.0 1.5 4.196 0.5 143.9 X and

including 249.8 250.8 1.0 0.371 0.1 12.7 X 274.0 279.5 5.5 0.034 0.01 1.2

including 274.0 275.5 1.5 0.100 0.1 3.4 311.5 317.0 5.5 0.012 0.01 0.4

RBU-24 165.0 172.5 7.5 0.055 0.01 1.9 X including 166.8 168.3 1.5 0.158 0.1 5.4 X

210.3 219.5 9.2 0.090 0.01 3.1 including 214.5 219.5 5.0 0.126 0.1 4.3

235.5 243.7 8.2 0.236 0.01 8.1 X including 237.7 239.0 1.3 1.251 0.5 42.9

and including 242.0 243.7 1.7 0.143 0.1 4.9 X

402.8 406.7 3.9 0.014 0.01 0.5 423.5 426.2 2.7 0.011 0.01 0.4

RBU-25 195.0 200.0 5.0 0.014 0.01 0.5 457.0 458.4 1.4 0.013 0.01 0.4

RBU-26 256.1 259.9 3.8 0.092 0.01 3.2 293.3 298.3 5.0 0.012 0.01 0.4 337.8 338.6 0.8 0.027 0.01 0.9 364.7 367.2 2.5 0.922 0.5 31.6 X

RBU-27 175.7 177.0 1.3 0.015 0.01 0.5 280.0 283.0 3.0 0.011 0.01 0.4 384.1 388.0 3.9 0.011 0.01 0.4 396.9 399.0 2.1 0.023 0.01 0.8 425.0 432.0 7.0 0.027 0.01 0.9 468.9 472.8 3.9 0.010 0.01 0.3 475.0 482.0 7.0 0.011 0.01 0.4 524.1 526.0 1.9 0.011 0.01 0.4

RBU-28 217.5 220.5 3.0 0.010 0.01 0.3 263.0 292.8 29.8 0.045 0.01 1.6

including 285.5 287.5 2.0 0.194 0.1 6.7 312.0 318.0 6.0 0.047 0.01 1.6 327.5 329.4 1.9 0.116 0.1 4.0 360.5 362.5 2.0 0.052 0.01 1.8 371.7 372.7 1.0 0.034 0.01 1.2 381.6 383.8 2.2 0.010 0.01 0.3

RBU-29 211.0 222.4 11.4 0.017 0.01 0.6 246.5 249.0 2.5 0.043 0.01 1.5

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iv

Hole From to Length Au opt

Cutoff (opt)

Au g/t Visible Gold

251.2 258.0 6.8 0.026 0.01 0.9 265.0 269.0 4.0 0.024 0.01 0.8 318.5 319.5 1.0 0.051 0.01 1.7

RBU-31 478.2 481.5 3.3 0.012 0.01 0.4 485.5 486.5 1.0 0.010 0.01 0.3 569.7 587.7 18.0 0.035 0.01 1.2 x

RBU-32 no values > 0.01 opt Au 0.0

RBU-33 291.0 305.5 14.5 0.052 0.01 1.8 356.0 357.0 1.0 0.169 0.1 5.8 X

RBU-34 260.0 265.5 5.5 0.018 0.01 0.6 314.0 316.3 2.3 0.021 0.01 0.7 346.0 352.0 6.0 0.019 0.01 0.7 366.5 369.0 2.5 0.011 0.01 0.4 392.7 402.8 10.1 0.014 0.01 0.5 407.0 411.8 4.8 0.050 0.01 1.7 536.4 538.0 1.6 0.013 0.01 0.4

RBU-35 361.7 362.6 0.9 0.013 0.01 0.4 493.0 506.0 13.0 0.030 0.01 1.0 x 592.5 598.8 6.3 0.036 0.01 1.2

RBU-36 249.3 254 4.7 0.018 0.01 0.6 459.2 471.4 12.2 0.017 0.01 0.6

RBU-37 243.7 247.0 3.3 0.012 0.01 0.4 256.0 258.5 2.5 0.013 0.01 0.4 269.8 286.0 16.2 0.027 0.01 0.9

RBU-38 236.8 270.0 33.2 0.179 0.01 6.1 x including 251.7 258.5 6.8 0.756 0.2 25.9 x

and including 251.7 253.5 1.8 1.849 0.5 63.4 x RBU-39 206.5 216 9.5 0.059 0.01 2.0 including 206.5 209.5 3.0 0.156 0.1 5.3

283 284.8 1.8 0.021 0.01 0.7 359.1 365.8 6.7 0.085 0.01 2.9 X

including 359.1 361 1.9 0.265 0.2 9.1 x RBU-40 295.1 300 4.9 0.022 0.01 0.8

305.5 310.5 5.0 0.021 0.01 0.7 315.5 321 5.5 0.055 0.01 1.9 x

including 317.3 318.4 1.1 0.115 0.1 3.9 x RBU-41 358 360 2.0 0.012 0.01 0.4

364.5 367 2.5 0.010 0.01 0.3 RBU-42 no values > 0.01 opt Au RBU-43 no values > 0.01 opt Au

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APPENDIX E

BLRV Rock Sampling

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i

Location UTM Gold and Silver Results Sample Description Type

Northing Easting Au ppm Au opt

Ag ppm

16804 quartz veining in altered greenstone Mill stockpile - - 13.050 0.381 7.57

16805 porphyry dike with qz veinlets Mill stockpile - - 1.190 0.035 0.42

16806 altered sulfidic porphyry w/o qz veinlets Mill stockpile - - 0.124 0.004 0.01

16807 wkly altered greenstone with minor qz veinlets

Mill stockpile - - 1.235 0.036 1.32

16808 wkly altered greenstone w/o qz veinlets Mill stockpile - - 0.064 0.002 0.41

16809 Black argillite with qz veinlets Mill stockpile - - 2.230 0.065 0.79

16810 Black argillite w/o qz veins Mill stockpile - - 0.190 0.006 0.27

JM601 W end I-level; qtz vein grab; UG sample UG grab 4507655 527340 16.800 0.490 8.22 JM602 W end I level; Art Smith sample UG grab 4507655 527335 103.50

0 3.019 31.30

JM1001 Franklin mineqz vein on dumps; minor sulf

dump 4507820 527916 7.030 0.205 0.92

JM1002 adit on H level road; 080/70SW 6" qz vein within diorite dike

outcrop 4507302 527633 144.00

0 4.200 11.85

JM1003 3m qz vein SW side of tailings dump; 060? trend

outcrop 4507637 527320 0.443 0.013 0.22

JM1004 bleached Mb shale on S side of vein outcrop 4507635 527320 0.261 0.008 1.60 JM1005 adit dump qz vein chips (rare); qtz porph

dike/sill in roadcut dump

4507345 525765 0.350 0.010 0.36

JM1006 deeply weathered roadcut; bleached qz porphyry dike

outcrop 4507870 526015 0.022 0.001 0.05

JM1007 sheared limonitic Mb shale in NW corner of pit

outcrop 4507930 526112 0.002 0.000 0.16

JM1008 qz vein float block; 1ft; pyrite float 4507910 526147 2.330 0.068 3.85 JM1009 bleached qz porph in roadcut; limonitic outcrop 4507830 526168 0.037 0.001 0.06

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ii

Location UTM Gold and Silver Results Sample Description Type

Northing Easting Au ppm Au opt

Ag ppm

JM1010 1m sample across JM1002 vein; includes alt dike

outcrop 4507303 527634 6.630 0.193 1.66

JM1011 white quartz porphyry with abundant qz veinlets; roadcut

outcrop 4507947 526715 0.015 - 0.02

JM1012 white qz veining; dump + high on cliff above shack; at ctc between qz porphy and Mb; includes wallrock

outcrop 4507945 526620 0.094 0.003 0.52

JM1013 abundant vuggy qz + sil'd dike on dump of western tunnel 6? at Niagara dump 4507743 525964 0.005 - 0.04

16823 quartz vein (orient?) with local vugs and qz xls in int. altered greenstone outcrop 4507541 527924 0.020 0.001 0.08

16824 similar to 23; int altered greenstone with gray mesothermal qz outcrop 4507565 527919 0.017 0.000 0.12

16825 4ft vert chip along 080?/70S ctc between diorite porph and seds in roadcut; bleaching and Fe stain

outcrop 4507065 527506 0.075 0.002 0.29

16826 select 8ft chip across qtz stringer zone in diorite porph; very weathered; NE trend outcrop 4507342 527133 1.195 0.035 0.65

16827 E-NE? trending 2ft wide qtz vein zone along diorite/sed contact; strong limonite outcrop 4507570 527460 0.026 0.001 0.33

16828 massive qz vein in greenstone and seds; trenches; possible sphalerite; trend?; trenches along 340

dump 4507391 527446 0.263 0.008 0.38

16829 8-10" vert chip across E-NE vein with 10-20deg N dip; local sulfide; vein is 8-10" thick; HW of diorite sill

outcrop 4507517 527271 3.230 0.094 1.63

16830 080/70S vein in diorite; 4ft select chip across roadcut; NE side of Niagara mine; roadcut

outcrop 4507946 526243 0.043 0.001 0.3

16831 18" chip across N75-80W/steepN vein ; local qz xls; in seds within 10ft of diorite outcrop 4508249 524741 0.013 0.000 0.23

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iii

Location UTM Gold and Silver Results Sample Description Type

Northing Easting Au ppm Au opt

Ag ppm

contact

QB04-01 dump; mixed qtz vein, dp, and shale from road berm above mill dump 4507351 526939 23.4 0.683 0.65

QB04-02 dump; fxd milky qtz vein, no sulfides; Scorpion dump 4507169 525256 0.056 0.002 0.49

QB04-03 outcrop; diorite porphyry dike w/trace py outcrop 4507168 525256 0.022 0.001 0.15 QB04-04 dump; fxd-vuggy milky qtz vein, no

sulfides dump 4507077 525518 2.21 0.064 0.37

QB04-05 dump; blue-grey qtz vein w/grey hairline fx's dump 4507170 525165 0.006 0.000 0.06

QB04-06 outcrop; flt bx, sheared shale+qp outcrop 4507190 525155 0.034 0.001 0.22 QB04-07 outcrop; qp dike w/qtz vein

stockwork+FeOx outcrop 4507175 525185 2.45 0.071 0.63

QB04-08 dump; fxd milky qtz vein, no sulfides dump 4507412 525429 0.241 0.007 0.39 QB04-09 dump; milky qtz-py vein,3-5% py, poss

vg? dump 4508638 525955 32.5 0.948 5.24

QB04-10 dump; milky qtz-py vein,1-3% py dump 4508652 525990 8.4 0.245 0.86 QB04-11 dump; fxd milky qtz vein, st FeOx dump 4508806 525984 0.026 0.001 0.07 QB04-12 dump; milky qtz-py vein, >5% py dump 4508860 525998 0.237 0.007 2.24 QB04-13 dump; milky qtz vein, no sulfides dump 4508595 525925 1.085 0.032 3.92 QB04-14 outcrop; fxd milky qtz vein, no sulfides outcrop 4508533 526022 0.013 0.000 0.07 QB04-15 dump; grey-white qtz vein, mod FeOx dump 4508601 527085 0.007 0.000 0.05 QB04-16 outcrop; milky qtz vein, no sulfides outcrop 4508693 527074 0.006 0.000 0.03 QB04-17 outcrop; milky qtz vein, st FeOx outcrop 4508735 527089 0.006 0.000 0.05 QB04-18 dump; qtz-cal-py vein, 1-3% py dump 4508573 526749 7.03 0.205 0.58 QB04-19 dump; bn-or silica-FeOx rock,"oxd vein?" dump 4508552 526747 13.2 0.385 7.44 QB04-20 Muck; "qtz vein ore" from Lucky-7 chute UG grab 4507495 527205 62.4 1.820 14.40 QB04-21 dump; milky qtz-py vein,1-2% py+ 1%

asp? dump 4507326 527290 1.26 0.037 0.25

QB04-22 dump; milky qtz vein, st FeOx dump 4507352 527431 8.54 0.249 1.84

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iv

Location UTM Gold and Silver Results Sample Description Type

Northing Easting Au ppm Au opt

Ag ppm

QB04-23 dump; milky qtz vein, no sulfides dump 4507291 527292 7.54 0.220 2.18 QB04-24 dump; milky qtz vein, wk FeOx dump 4507215 527308 0.147 0.004 0.50 QB04-25 dump; qtz-py vein, 1-2% py+ 1% asp? dump 4507215 527308 1.69 0.049 0.36 QB04-26 Mill stockpile Mill

stockpile 115.50 3.369 37.90

QB04-27 Mill stockpile Mill stockpile 6.88 0.201 3.38

QB04-28 Mill stockpile Mill stockpile 43.00 1.254 2.54

JM1014 Hobo2 claim adit dump; minor qtz vn with py-aspy-gn; most of dump is diorite; adit at ~060

dump 4507074 527466 630.00 18.38 73.7

JM1015 caved adit dumps; select grabs across wide area of qz vein; trace sulfide but oxidized

dump 4507090 527225 5.57 0.162 2.62

QB-29 UG grab 98.60 2.876 15.80 DLE-001 Qtz Stockwork, footwall in Bragdon shale,

50% qtz, 5 ft length rock 4507627 527317 0.968 0.028 0.15

DLE-002 Qtz Vein N60E_80N, 3 ft thk, 3 ft length. Washington vein outcrop (?) rock 4507628 527317 0.324 0.009 0.06

DLE-003 Bragdon gritty ss/shale, 4 ft length rock 4507639 527589 0.023 0.001 0.07 DLE-004 Qtz Vein N72E_72S, 1-3 ft thk, quartz

vein and gouge, pinches and swells, 1 ft length

rock 4507639 527589 6.810 0.199 0.82

DLE-005 Bragdon gritty ss/shale, 1 ft length, hanging wall rock 4507640 527589 0.282 0.008 0.41

DLE-006 Diorite porphyry, weathered, plag to 10 mm, 6 ft length rock 4507638 527589 0.011 0.000 0.01

DLE-007 Dp, w/ 5% qtz vnlts, Niagara, 5 ft length (horz) rock 4507936 526231 0.106 0.003 0.42

DLE-008 Dp, w/ 10-20% qtz vnlts, Niagara, 5 ft length (horz), hanging wall N60E/85N rock 4507937 526231 0.392 0.011 0.73

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v

Location UTM Gold and Silver Results Sample Description Type

Northing Easting Au ppm Au opt

Ag ppm

DLE-009 Dump qtz vn and porphyry dump-select 4507914 526145 1.505 0.044 1.94

DLE-010 Dump qtz vn, Niagara dump-select 4507940 526169 0.570 0.017 1.06

DLE-011 Qtz vein, in diorite porphyry dump-select 4507768 526143 0.278 0.008 0.36

DLE-012 Qtz vein - float rock-float 4507957 525990 0.010 0.000 0.08 DLE-013 Qtz vein, trace galena dump-

select 4507983 525910 0.009 0.000 0.01

DLE-014 Qtz vein, from collasped adit now a "Spring"

dump-select 4507745 525680 0.012 0.000 0.03

DLE-015 Scorpian Qtz Vein,tr VG (?) dump-select 4507185 525178 0.051 0.001 0.01

DLE-016 Scorpian dp & qp w/ qtz vnlts - QSP alteration

dump-select 4507180 525181 0.799 0.023 0.20

DLE-017 Quartz vein, hosted by Bragdon shale dump-select 4507803 525682 0.012 0.000 0.02

DLE-018 Quartz vein, float concentration rock - float 4507825 525680 0.012 0.000 0.01 DLE-019 Qtz vein, "ORE" from large dump

complex, limonite and hematite dump-select 4507830 526084 4.790 0.140 1.10

DLE-020 Qtz porphyry, "Sill" intruding seds, exposed in road cut, 5 ft length rock 4507896 526176 0.012 0.000 0.01

DLE-021 Qtz vein, white, poorly exposed in Bragdon, 1 ft rx rock 4507821 525627 0.018 0.001 -0.5

DLE-022 Qtz vein, white, locally FeOx stained, hematite, in shale near porphyry contact dump 4507953 525483 0.003 0.000 -0.5

DLE-023 Qtz vein, white, w/ limonite, some drusy qtz, tr oxidized galena dump 4507799 526139 1.270 0.037 -0.5

DLE-024 Diorite porphyry, lt grn gray, strong qtz stkwk, 25% qtz vnlts, QSP and bleaching dump 4507799 526139 3.460 0.101 2.7

DLE-025 Diorite porphyry, lt grn gray, strong qtz stkwk, 50% qtz vnlts, QSP and bleaching, rock 4507850 526268 5.530 0.161 1.4

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vi

Location UTM Gold and Silver Results Sample Description Type

Northing Easting Au ppm Au opt

Ag ppm

1ft rx

DLE-026 Qtz vein, white, mod FeOx, dump 4507872 526138 0.484 0.014 -0.5 DLE-027 Qtz vein, white, w/ limonite, tr oxidized

galena dump 4507730 525962 0.356 0.010 -0.5

DLE-028 Shale, gray, sheared and "quartzy", 2 ft rock-chip at 111-113 ft in Tunnel No. 1 rock 4507805 526138 1.100 0.032 -0.5

DLE-029 Shale, black, "quartzy", 1.5 ft rx chip at 138 ft in Tunnel No. 1 rock 4507810 526137 3.340 0.097 1.4

DLE-030 Diorite porphyry, grn gray, wk stkwk, 2 ft rx chip at 138 ft in Tunnel No. 1 rock 4507812 526136 0.036 0.001 -0.5

DLE-031 Diorite porphyry, grn gray, mod stkwk, 4.5 ft rx chip at 138 ft in Tunnel No. 1 rock 4507812 526139 2.220 0.065 1.7

DLE-032 Quartz Vein, white, very little qtz on dump, select sample dump 4507338 525761 0.065 0.002 0.24

DLE-033 Qtz vein, white, mod FeOx, in thrust fault in Bragdon argillite, some remant sulfides, 0.8 ft

rock 4507658 527275 0.016 0.000 0.72

DLE-034 Diorite porphyry, white to tan, FeOx, strong argillic (supergene) overprint on QSP w/ qtz stkwk, 5 ft horz lgt

rock 4507672 527279 2.660 0.078 0.1

DLE-035 Qtz Vein, white to gray, wk FeOx, nil sulfides, 2 ft rock 4508254 525847 0.020 0.001 0.04

DLE-036 Quartz porphyry, white to tan, with quartz veinlets and stockwork, 5 ft, Franklin mines

rock 4507861 527971 0.823 0.024 0.24

DLE-037 Qtz Vein, white, FeOx, N10E/75 E, 1 ft thick vein sampled, rock 4507869 527969 1.435 0.042 0.27

DLE-038 Shale, lt grn, Bragdon, bleached, 1 ft rock 4507883 526313 0.631 0.018 0.5 DLE-039 Diorite porphyry, lt orn brn, qtz stockwork,

5%, 3 ft. Contact with shale is N55E/80SE, 3 ft horz lgt

rock 4507883 526312 0.033 0.001 0.4

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vii

Location UTM Gold and Silver Results Sample Description Type

Northing Easting Au ppm Au opt

Ag ppm

DLE-040 Qtz Vein, white, strong FeOx, hem, breccia w/ lithic clast up to 2", Vein & outcrop, Vein 3-4 ft thick

rock 4508076 527850 0.011 0.000 0.05

DLE-041 Qtz Vein, white and lt gray, sparse on dump, dump contains Bragdon shale and qp unweathered.

dump 4508036 527839 3.350 0.098 0.14

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APPENDIX F

Quality Assurance Program

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1

EIGHT-PART QUALITY CONTROL PROGRAM

1.0 Drilling Procedures: Reverse-circulation

Assay samples are collected on a 5-foot interval basis using a splitter that is placed

beneath the cyclone for dry holes and a rotary wet splitter for wet holes. The sample

stream is dispersed as uniformly as possible across the splitter and protected from

strong winds. The sample stream is stopped at the end of a sample interval to allow

for changing of bags and collectors without losing sample material. When water

flows are high, a rotary splitter is used. The splitter is cleaned between samples

using compressed air when dry or clean water when wet.

Two samples are collected from the splitter:

- one to be delivered to the assay lab

- one to be left on site as a duplicate.

The remaining sample is discharged onto the ground or in a containment sump.

Sample weights are kept as constant as possible, with adjustments to the splitter

made if necessary to ensure a consistent flow of material. Samples are put into

olefin or polypropylene bags to allow for water drainage without loss of fine particles.

1.1. Logging, Sample Recordation and Handling

Representative chips from each 5-foot sample are rinsed and placed by the geologist

into plastic chip trays for reference. The geologist completes a down-hole log of the

rocks intersected during drilling. The log includes all pertinent information related to

the hole: orientation, length, location, dates drilling took place, the contractor's and

driller's names, and depth to and flow-rates of water. Down-hole geologic

characteristics are recorded and include types and abundance of rock type,

alteration, specific minerals, veining, degree of oxidation.

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2

Sample bags, including the assay sample, are numbered by drill hole number and

footage, such as : TC1 25-30. Assay standards and duplicates are inserted as

described under part 3.

Sample bags are laid out neatly in footage order far enough from the rig and upwind

to avoid contamination, foot traffic and drilling fluids. The two sample sets - assay

and duplicate - should be kept in separate areas. During freezing conditions, a

plastic sheet is placed under the bags to prevent bags from freezing to the ground,

which can result in torn bags during sample pickup.

1.2 Insertion of Assay Standards and Duplicates

Through all intervals where assays will be obtained, assay standards and blind

duplicates are inserted into the sample stream prior to delivery to the assay lab.

Two assay standards are alternated, one every 100 feet starting at the 100-foot

mark. Standards are supplied by the Nevada Bureau of Mines and Geology and are

30g powdered samples within plastic envelopes. An outer envelope is labeled with

the Bureau's number, and the inner sample envelope itself is left unlabeled so that it

may be labeled as noted below. The two standards are:

NBM-4a: 75 ppb Au (+ 16 ppb) from Mesquite

NBM-4b: .012 opt Au (410 + 70 ppb) from Mesquite

Standard envelopes are placed in large ziploc plastic bags and labeled as follows:

TC1 295-300 normal assay sample for this interval;

TC1 295-300A assay standard (standard name – NBM-4a – recorded on the

drillhole summary page but not on the drill log);

TC1 300-305 normal assay sample for this interval

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3

TC1 495-500 normal assay sample for this interval

TC1 495-500A assay standard (standard name – NBM-4b – as above).

The standard samples are given to the assay lab during sample pickup.

A blind duplicate is inserted into the assay sample stream every 100 feet starting at

the 50-foot mark. The secondary duplicate sample set is used for this. A bedrock

sample that is likely to be unmineralized is randomly selected from the duplicate set,

say TC1 235-240. It is placed into a new bag with a new label, TC1 445-450A (the

"A" is important as it denotes a check sample and not the actual assay interval for

445-450). As with the standard samples, the blind duplicate is placed in the sample

stream behind the real TC1 445-450. The duplicate information is recorded on the

drill hole summary page: the actual footage used (235-240) and the new assay

sample number (445-450A). Additional blind duplicates are inserted every 100 feet.

When assays are received, this sample is then compared to the other (normal) 235-

240 sample for lab accuracy.

2.0 Drilling Procedures: Core

2.1. Logging

Drill core is stored in waxed core boxes labeled with hole name, box# and footage

interval. Markers are placed within the boxes to note length in feet. Drill core boxes

are laid out on tables for logging, and a geologist logs the core prior to its being cut

for sampling. This phase of core logging makes note of the most important features

of the rock, including rock type, contacts, alteration, alteration/mineralization

minerals, important structure, and veins. A graphic log is also produced. Core

recovery is also noted in the log (footage of core divided by actual marked interval

drilled).

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4

2.2. Assay samples

Intervals are selected for sampling and marked with sample tags. Where necessary,

the geologist marks the exact line along which the core should be cut/split. Assay

intervals are less than or equal to 3 feet in length, with assay sample breaks where

possible placed along geologic contacts and at the contacts between differing

mineralization types: i.e., strongly-mineralized intervals or veins are sampled

separately. A sample-number tag is attached to the core box within the sample

interval and the sample interval is clearly marked along the box dividers.

2.3 Photos

The core boxes are photographed with a digital camera after logging and assay

intervals are marked but prior to splitting.

2.4 Core Splitting and Sample Preparation

Assay intervals are split with a hydraulic splitter or cut with a water-based diamond

core saw. Where sawed, the cut is made perpendicular to important features, such

as veins. One-half of the core and a sample-number tag are placed in cloth bags

and tied closed. The bags are also labeled. The core saw is cleaned between

samples to reduce the possibility of contamination.

2.5 Core Storage

Cores are stored in such a manner that they remain as dry and safe as possible;

methods may include stacking on palettes and covering with tarps, or storing within a

shed or other container. High-grade vein intervals are stored in a locked container.

2.6 Standards

Assay samples are delivered to the assay lab as described in Section 3.

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5

Standards (see section 1.2) are inserted at a rate of at least one every 10th sample,

and the numbering sequence and number tags are continuous with the actual core

sample number sequence ensuring that standards are assayed within the sample

stream. In the case where a single core hole contains fewer than 5 samples, one

standard is still inserted within the sample stream. In addition to the low-grade

standards described in section 1.2, two high-grade standards are used in conjunction

with core drilling. Standards are supplied by Analytical Solutions Ltd and are:

OREAS 62Pa 9.64+0.014 ppm Au

OREAS 62Pb 11.31+0.016 ppm Au.

High-grade standards are alternated and used with high-grade veins.

In addition, a blank core sample is inserted in the sample stream after each sample

likely to contain high-grade gold (i.e., visible gold is noted during logging). The blank

sample is taken from barren intervals of shale known to be unmineralized.

3.0 Sample Security

Assay samples and duplicates left on the ground between drill shifts are inspected on

a daily basis for tampering and damage. Normally, the assay lab picks up samples at

the drill site. Samples are submitted by complete hole only, and each submittal sheet

corresponds to a full single drill hole. Assay standards and blind duplicates are given

to the lab representative during pickup.

4.0 Laboratory Accreditation

Bullion River Gold Corp uses only those laboratories that have an ISO (International

Organization for Standardization) accreditation level of at least ISO 9002, in

accordance with the Mining Standards Task Force (Toronto stock exchange and

Ontario Securities Commission, 1999).

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6

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7

5.0 Assay Quality Assurance

Once assay results are received by BLRV, the standards and duplicates are

compared to their actual values. Any discrepancies are investigated, and depending

on the severity of the problem, the hole may be re-assayed or submitted to a different

lab. Any laboratory used has internal QAQC procedures in place during sample

preparation and analysis, and these provide additional assurances. These data are

also supplied with the assay reports.

6.0 Independent Check Assays

A selection of mineralized samples from drill holes may be sent to a second assay

laboratory for check assays using, as far as possible, the same preparation and

analytical procedures used by the primary lab.

7.0 Metallic Screen Assays

Cored high-grade veins are subjected to metallic screen analysis at the assay

laboratory. This process yields a more accurate final assay where coarse gold is

present.

8.0 Down-hole surveying

Reverse-circulation (RC) and core holes are surveyed upon completion, unless for

some logistical reason surveying cannot be performed. For RC drilling, a qualified

independent contractor is used. For underground core drilling, the drilling contractor

surveys the holes. Data are usually gathered every 100 feet down hole. The survey

instrumentation and methods are also provided.

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BULLION RIVER GOLD CORP

French Gulch Property

Regional Location

Scale: As shown Drawn by: EH

Date: Dec 2006 QP: E. Harrington Figure: 1

E. Harrington, B.Sc., P.Geo.

T33N R7W, 8W

Redding

100 miles

100 kilometers0

0

N

French Gulch Property

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1

1619

18

12

6

8

2523

24

5

13

9

14

21

26

22

715

17

2011

10

2728

2, 3, and 4

Map ID Patented Claims1 W ashington Mill Site2 W ashington Quartz and Placer Mine3 W ashington Quartz and Placer Mine4 W ashington Quartz and Placer Mine5 Bell Gold Quartz Mine6 Brown Gold Quartz Mine7 Chinn Gold Quartz Mine8 Coleman Quartz Mine9 Ike W ertz Parcel of Combination Gold Quartz

10 Comet Gold Quartz Mine11 North Star Gold Quartz Mine12 W estern Extension Gold Quartz Mine13 W illiam T Quartz Claim14 Yosemite Quartz Mine15 Eastern Extension Quartz Mine16 Montezuma Gold Quartz Mine17 Scorpion Mine18 Cold Spring Quartz Mine19 Spring Quartz Mine20 Summit Gold Quartz Mine21 Centennial Gold Quartz Mine22 Shea Placer23 Jumbo Gold Quartz Mine24 Locke Gold Quartz Mine25 Polaris Quartz Mining Claim26 Honey Comb Gold Quartz Mine27 Shea Gold Quartz Mine28 Victory Gold Quartz Mine29 Colorado Quartz

29

BULLION RIVER GOLD CORP

French Gulch PropertyClaim Locations

Scale: As shown Drawn by: EH

Date: Jan 2007 QP: E. Harrington Figure: 2

E. Harrington, B.Sc., P.Geo.

T33N R7W, 8W

Map ID Optioned Unpatented Claims30 Bacon31 Badlem32 Barney Coleman33 Bismark34 California35 Cold Springs No. 236 Cross Roads37 East Side Fraction38 Evening Star39 Gannon40 Globe41 Halcyon42 Hobe #343 Hobo #444 Illinois45 JJ Moran Quartz46 Lone Pine47 Midway48 Midway Fraction49 Missouri50 Ruby Pearl51 Scorpion Extension52 Silver Gray53 Silver Gray Extension54 South Side Mine55 Spring #256 Tri-coon

1 kilometer0

0.5 mile0

30

31

33

3234

35

36

37

38

39

40

4243

44

45

46

4748

49

50

52

53

54

55

56

N

French Gulch Property Boundary

French Gulch Property Boundary

Internal claims not part of the French Gulch Property

Internal claim not part of the French Gulch Property

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BULLION RIVER GOLD CORP

French Gulch Property

Drill Locations

Scale: As shown Drawn by: EH

Date: Dec 2006 QP: E. Harrington Figure: 3

E. Harrington, B.Sc., P.Geo.

T33N R7W, 8W

Drill hole: historical

WN-13◉◉

WN-7WN-12

WN-10

WN-9WN-8WN-11

WN-16

WN-17

LT-4,5WN97-1,2

WN-27,28

LT-1

WN-6

LT-2

LT-3

BRS-8 LT-7

WN-29WN-4

WN-1WN-5

WN-2WN-3

WN-24

WN-22

WN-21

WN-23

WN-25

WN-15WN-14

WN-28

WN-26

WN-19WN-18

3V97-1,2

NV97-1,2

BRS1,2,3

BRS4,5,6,7

Approximate Property Boundary

1 kilometer0

0.5 mile0

USGS French Gulch Quadrangle 7.5’ SeriesContour interval 80 feet

N

◉ BRS drill hole: location and designationBRS 1

FG87-5FG87-3,4

FG87-1,2

Historical DrillingWashington-NiagaraWN-1 to 29(Includes WNDDH-1 to 3 as WN-27 to 29) Lion TrailLT-1 to 7(Includes L7 97-1 and 2 as LT-6 and 7)

FG87-1 to 5 Not knownNV97-1 to 2 Lion Trail3V97-1 to 2 Lion Trail

WN97-1, 2 Lion Trail

Internal claim not controlled by BLRV

Internal claim not controlled by BLRV

Internal claim not controlled by BLRV

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BULLION RIVER GOLD CORP

French Gulch Property

Significant Rock Sample Locations

Scale: As shown Drawn by: EH

Date: Dec 2006 QP: E. Harrington Figure: 4

E. Harrington, B.Sc., P.Geo.

T33N R7W, 8W1 kilometer0

0.5 mile0 USGS French Gulch Quadrangle 7.5’ Series

Contour interval 80 feet

N

QB04-19

Approximate Property BoundaryQB04-18

QB04-10

QB04-09

QB04-01

QB04-07

QB04-23

QB04-22JM1002

JM1010

QB04-20

JM1014

16829

JM601JM602

DLE-029

DLE-025

DLE-031

DLE-034

DLE-004

Rock sample: location and designationDLE-025

French Gulch Property Boundary

Claim not controlled by BLRV

Claim not controlled by BLRV

Claim not controlled by BLRV

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BULLION RIVER GOLD CORP

French Gulch Property

Regional Geology

Scale: As shown Drawn by: EH

Date: Dec 2006 QP: E. Harrington Figure: 5

E. Harrington, B.Sc., P.Geo.

T33N R7W, 8W

N

French Gulch Property

40O 43’ -

-122

O41’

(Geology after Albers, 1965)

B

1 kilometer0

0.5 mile0

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BULLION RIVER GOLD CORP

French Gulch Property

Regional Geology

Scale: As shown Drawn by: EH

Date: Dec 2006 QP: E. Harrington Figure: 5

E. Harrington, B.Sc., P.Geo.

T33N R7W, 8W

N

French Gulch Property

40O 43’ -

-122

O41’

(Geology after Albers, 1965)

B

1 kilometer0

0.5 mile0

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BULLION RIVER GOLD CORP

French Gulch Property

Regional Geology Cross-section

Scale: As shown Drawn by: EH

Date: Dec 2006 QP: E. Harrington Figure: 6

E. Harrington, B.Sc., P.Geo.

T33N R7W, 8W

Approximate Location of French Gulch Property

A’B

(Geology after Albers, 1965)

Looking Southwest NWSE

Approximate axis of broad arch

0

0

3 miles

5 kilometers

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BULLION RIVER GOLD CORP

French Gulch Property

Regional Geology Legend

Scale: As shown Drawn by: EH

Date: Dec 2006 QP: E. Harrington Figure: 7

E. Harrington, B.Sc., P.Geo.

T33N R7W, 8W

(Geology after Albers, 1965)

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BULLION RIVER GOLD CORP

French Gulch Property

Property Geology

Scale: As shown Drawn by: EH

Date: Dec 2006 QP: E. Harrington Figure: 8

E. Harrington, B.Sc., P.Geo.

T33N R7W, 8W

N

qp

Mb

dp

Dc

Quartz Porphyry

Diorite Porphyry

Bragdon Formation Shale

Copely Greenstone

(Geology provided by Bullion River Gold Corp)

1 kilometer0

0.5 mile0

- 4508000 N

5270

00 E

-

Niagara MineUnderground Workings

I LevelPortal

Robillard Adit

French Gulch Property Boundary

French Gulch Property Boundary

qp

Dc

Mb

Mb

Mb

dp

Washington MineUnderground Workings

Mill SiteDecline Portal

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BULLION RIVER GOLD CORP

French Gulch Property

Underground – Plan View

Scale: As shown Drawn by: EH

Date: Jan 2007 QP: E. Harrington Figure: 9

E. Harrington, B.Sc., P.Geo.

T33N 7W, 8W

0

500 feet0

200 meters

Washington AditI Level

Robillard Adit

BLRV Decline Portal

Washington Vein

Lucky 7 Vein

Dean Vein

No 2 Vein

New construction around caved portion of adit

Lucky 7 Vein Located 850 feet (260 meters) north from the Robillard Adit portal. The vein was not recognized as economic until 1989, when high-grade gold mineralization was found 30 feet (9 meters) west of the cross-cut

Washington Vein Located 1,150 feet (350 meters) north from the Robillard Adit portal. The vein, 4 feet (1.2 meters) wide dipping 70O N., has been worked for approximately 350 feet vertically from the Robillard Level.

No. 2 Vein Located 1,050 feet (320 meters) north from the Robillard Adit portal.

Dean Vein Located 1,210 feet (368 meters) north from the Robillard Adit portal.

Santa Maria Vein

Santa Maria Vein A possible new undeveloped vein set (Scott Tregaskis (BLRV General Manager), personal communication).

Approximate areaof Figure 10

(Plan view provided by Bullion River Gold Corp)

Approximate areaof Figure 11

N

Approximate areaof Figure 12

Underground drill holes

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BULLION RIVER GOLD CORP

French Gulch Property

Underground Drilling

Scale: As shown Drawn by: EH

Date: Jan 2007 QP: E. Harrington Figure: 10

E. Harrington, B.Sc., P.Geo.

T33N R7W, 8W

N

(Plan view of drilling provided by Bullion River Gold Corp)

Washington Vein

Lucky 7 Vein

Robillard Adit

Q fill, sand, alluviumg gouge, faultMb Bragdon shaleMbbx Bragdon shale brecciaMbcbx Bragdon shale; sandy or coarse units brecciaMb/dp bx Bragdon shale breccia with diorite porphyryMbcg Bragdon shale sandy or coarse gouge/fault zoneMbc Bragdon shale; sandy or coarse unitsMbg Bragdon shale gouge/fault zoneDc Copley greenstoneDcg Copley greenstone gouge/fault zoneDct Copley greenstone bedded tuffDcbx Copley greenstone brecciadp diorite porphyry (low quartz content)qp quartz poprhyryv veinqv quartz veinqv/Mb quartz vein in Bragdonqv/dp quartz vein in diorite porphyry

Underground drill hole (RBU) and hole identifier

RBU-

20

Surface hole intercept and hole identifier

LTDD

H-1

Lithology Legend

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BULLION RIVER GOLD CORP

French Gulch Property

Lucky 7 Vein Long-section

Scale: As shown Drawn by: EH

Date: Jan 2007 QP: E. Harrington Figure: 11

E. Harrington, B.Sc., P.Geo.

T33N R7W, 8W

Gold Assay (opt)

Underground drill hole (RBU) and holeidentifier With gold assay indicator

RBU-

20

(Lucky 7 long-section provided by Bullion River Gold Corp)

Robillard Adit Level

Historical underground working on the Lucky 7 vein

Looking North-northwest

Looking north-northwest

- gold opt/sampledinterval

0.03/2.5

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BULLION RIVER GOLD CORP

French Gulch Property

Washington Vein Long-section

Scale: As shown Drawn by: EH

Date: Jan 2007 QP: E. Harrington Figure: 12

E. Harrington, B.Sc., P.Geo.

T33N R7W, 8W

RBU-17

RBU-24

RBU-27

RBU-31

RBU-26

RBU-20

RBU-23

RBU-28RBU-29

I Level

H Level

RBU-48

RBU-49

RBU-19RBU-22RBU-25

RBU-48

2003 grab sample of stope muck returned 3.803 opt gold

2100 Feet

2200 Feet

2000 Feet

1900 Feet

1800 Feet

Approximate boundaries of ore shoot rake

(Washington long-section provided by Bullion River Gold Corp)

3,501 tons @ 0.530 opt gold mined from this area. Calculated from indicated historic production.

Historic stope

Drift

Note: Drill intervals are projected across 250 feet of long section width.

1986 tons @ 0.44 opt gold mined 790 tons @ 0.13 opt gold mined

Stope produced 649 tons @ 1.2 opt gold in 1940s

Parallel vein 50 ft to north 56 tons @ 1.64 opt mined.

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BULLION RIVER GOLD CORP

French Gulch Property

Mill Circuit

Scale: As shown Drawn by: EH

Date: Dec 2006 QP: E. Harrington Figure: 13

E. Harrington, B.Sc., P.Geo.

T33N R7W, 8W

(Mill circuit diagram provided by Bullion River Gold Corp, 2006)

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MAPS: San Bernardino 7.5’ Quadrangle New Dale 7.5’ Quadrangle

Lat: 34o 0' 00” N Long: 115o 41’ 0”W SUMMARY REPORT on the

MISSION PROPERTY Dale Mining District

Riverside and San Bernardino Counties, California, USA

for

BULLION RIVER GOLD CORP Suite 200 - 3500 Lakeside Court

Reno, NV, 89509 Tel: 775-324-4881 Fax: 775-324-7893

by

Edward Harrington, B.Sc., P.Geo.

RELIANCE GEOLOGICAL SERVICES INC 3476 Dartmoor Place

Vancouver, BC, V5S 4G2 Tel: 604-437-9538 Fax: 604-437-9531

1 January 2007

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i

TABLE OF CONTENTS – Mission Property Summary Report

SUMMARY ........................................................................................................................ iii

4.0 INTRODUCTION and TERMS of REFERENCE ................................................... 1

5.0 DISCLAIMER.......................................................................................................... 1

6.0 PROPERTY DESCRIPTION and LOCATION....................................................... 2

7.0 ACCESSIBILITY, CLIMATE, RESOURCES, INFRASTRUCTURE, and PHYSIOGRAPHY................................................................................................... 9

8.0 HISTORY.............................................................................................................. 11 8.1 Area History ................................................................................................ 11 8.2 Previous Work ............................................................................................ 13 9.0 GEOLOGICAL SETTING ..................................................................................... 21 9.1 Regional Geology and Structure ................................................................ 21 9.1.1 Regional Geology .......................................................................... 21 9.1.2 Regional Structure ......................................................................... 22 9.2 Property Geology........................................................................................ 23

10.0 DEPOSIT TYPES................................................................................................. 28 10.1 Mesothermal Deposits................................................................................ 28 10.2 IOCG Deposits ........................................................................................... 30

11.0 MINERALIZATION ............................................................................................... 33

12.0 EXPLORATION .................................................................................................... 34 12.1 Rock Chip Geochemical Sampling............................................................. 34 12.2 Geophysical Surveys.................................................................................. 35

13.0 DRILLING ............................................................................................................. 37

14.0 SAMPLING METHOD and APPROACH ............................................................. 37

15.0 SAMPLE PREPARATION, ANALYSIS and SECURITY ..................................... 37

16.0 DATA VERIFICATION.......................................................................................... 38

17.0 ADJACENT PROPERTIES .................................................................................. 38

18.0 MINERAL PROCESSING and METALLURGICAL TESTING............................. 39

19.0 MINERAL RESOURCE and RESERVE ESTIMATES......................................... 39

20.0 OTHER RELAVANT DATA and INFORMATION ................................................ 39

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ii

21.0 INTERPRETATIONS and CONCLUSIONS......................................................... 40 21.1 Interpretations............................................................................................. 40 21.2 Conclusions ................................................................................................ 46

22.0 RECOMMENDATIONS........................................................................................ 47 22.1 Proposed Budgets Stage 1 and Stage 2.................................................... 48

23.0 REFERENCES..................................................................................................... 50

GLOSSARY..................................................................................................................... 51

CERTIFICATE ................................................................................................................. 54

LIST OF FIGURES

Figure 1 Regional Location .......................................................................................... 5 Figure 2 Northern Claims ............................................................................................. 6 Figure 3 Central Claims................................................................................................ 7 Figure 4 Southern Claims............................................................................................. 8 Figure 5 Mission Mine - Rock Sampling Asamera and USMX.................................. 14 Figure 6 Regional Geology - South............................................................................ 26 Figure 7 Regional Geology - North ............................................................................ 27 Figure 8 Surface Rock Sampling ............................................................................... 36 Figure 9 Compilation .................................................................................................. 45

LIST OF TABLES

Table 1 Kohler-Antablin Rock Sampling 1994.......................................................... 16 Table 2 Significant Surface Chip Sampling (Copenhaver 1997) ........................... 18 Table 3 Significant Underground Channel Sampling (Copenhaver 1997)............ 19 Table 4 IOCG Trace Elements ................................................................................ 34 Table 5 Selected BLRV Rock Sampling ................................................................... 34

LIST OF APPENDICES

APPENDIX A Claim Information APPENDIX B Asamera Rock Sampling APPENDIX C USMX Rock Sampling APPENDIX D Copenhaver Underground Rock Sampling APPENDIX E BLRV Rock Sampling

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iii

SUMMARY

At the request of Bullion River Gold Corp (BLRV), this Summary Report has been

prepared on the Mission Property, Dale Mining District, Riverside and San Bernardino

Counties, California, USA to summarize previous work, appraise the exploration

potential of the Property, and make recommendations for future work.

This report is based on geological reports, a compilation of published and unpublished

data, maps, reports made by cited persons, and field examinations of the Property. The

author is a “qualified person” within the meaning of National Instrument 43-101 of the

Canadian Securities Administrators. The writer examined the geology and infrastructure

of the Mission Property on December 2nd and 3rd, 2006.

The Mission Property is located in the Dale Mining District situated within the Pinto

Mountain Range 35 miles (58 kilometers (km)) east-southeast of Twentynine Palms,

California, and approximately 70 miles (112 km) east-northeast of Palm Springs.

The Property comprises ninety-seven unpatented lode mineral claims totaling

approximately 1,997 acres (808.2 hectares (ha)). Claims are grouped into three non-

contiguous blocks: two claims in the area of the Carlysle Mine to the north, two

claims in the area of the Gold Crown Mine to the west, and the main block of ninety-

three claims. BLRV has optioned twenty-six claims from TKM Corporation and thirty-

two claims from Nevada Eagle Resources. The remaining thirty-nine claims are

owned wholly by BLRV.

Gold was discovered in the Dale District in 1861 and at what was to become the

Mission Mine in 1887. Mining activity continued until the early 1900s, then

sporadically into the 1980s. There were at least twelve producing mines within the

immediate vicinity of the Mission Property. Production records are incomplete but

district gold production has been estimated at 185,000 ounces.

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iv

Fine- to coarse-grained locally porphyritic Jurassic hornblende-biotite monzonitic

granite is the most abundant rock type on the Mission Property. Granitic rocks are

cut by sets of conjugate faults, fractures, and dikes that host alteration and gold

mineralization in quartz veins. Mineralized quartz veins trend predominantly

northwest, with minor northeast and east-northeast orientations. High-temperature

minerals, including magnetite, specular hematite, pyrite, and mafic rock-forming

minerals, and a corresponding lack of lower-temperature assemblages, suggest

hypothermal mineral deposition forming at depth with high temperatures and

pressures.

Mines in the district have reached depths of over 1,000 feet (300 meters). At the

Mission Mine, underground work has been carried out on five levels to a depth of 600

feet (183 meters). Historical underground sampling in the Mission Mine, which has

returned values up to 4.49 ounces of gold per ton (691.2 grams per tonne(g/t)),

suggests that gold mineralization continues beneath current mine workings as well as

along strike in both directions.

Based on regional geology and local mineral assemblages, the targeted deposit

types on the Mission Property are mesothermal vein-type gold and possibly IOCG-

type multi-element similar to the Olympic Dam deposit in Australia.

Work carried out by BLRV in 2006 included forty-three geochemical rock samples

that returned results ranging from trace to 77.9 g/t gold.

A two-stage work program has been recommended for the Mission Property. Stage 1

work should comprise surface and underground geological mapping in conjunction

with a rock sampling program designed to systematically cover the Mission Property

on surface and underground. Stage 1 work is estimated to cost US$90,000.

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v

Stage 2 work should comprise approximately 10,000 feet (3050 meters) of core

drilling in as many as twenty-five holes. Timely results of Stage 1 work may be used

to modify Stage 2 drilling, but there are sufficient drill targets on the Mission Property

so that Stage 2 drilling is not contingent on Stage 1 results. Stage 2 work is

estimated to cost US$960,000.

BLRV has begun the permitting process for two drill programs: a thirteen-hole

program in the area of the Brooklyn and Los Angeles mines, and a twelve-hole

program in the area of the Mission Mine. Two “plans of operation” (POO) have been

submitted to the Bureau of Land Management (BLM), Barstow, California, and are

currently being processed.

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1

4.0 INTRODUCTION and TERMS of REFERENCE

At the request of Bullion River Gold Corp (BLRV), this Summary Report has been

prepared on the Mission Property, Dale Mining District, Riverside and San Bernardino

Counties, California, USA to summarize previous work, appraise the exploration

potential of the Property, and make recommendations for future work.

This report is based on geological reports, a compilation of published and unpublished

data, maps, reports made by cited persons, and field examinations of the Property.

The author is a “qualified person” within the meaning of National Instrument 43-101 of

the Canadian Securities Administrators. The writer examined the geology and

infrastructure of the Mission Property on December 2nd and 3rd, 2006.

5.0 DISCLAIMER

This report is based on a review of information provided by published and unpublished

geologic reports, personal communications with Scott Tregaskis, BLRV Project

Manager, and observations made during the Property examination and land status

review.

All interpretations and conclusions are based on the writer’s research and personal

examination of the Mission Property.

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2

6.0 PROPERTY DESCRIPTION and LOCATION

The Mission Property is located in the Dale Mining District as shown on the San

Bernardino and New Dale 7.5’ Quadrangle map sheets. The Property area is centered

at latitude 34o0' North, longitude 115o41' West, and UTM 3,762,750 m North, and UTM

621,650 m East (Figures 1, 2, 3, and 4).

The Property area is situated within the Pinto Mountain Range 35 miles (58

kilometers (km)) east-southeast of Twentynine Palms, California, and approximately

70 miles (112 km) east-northeast of Palm Springs.

The Mission Property comprises a group of ninety-seven unpatented lode mineral

claims totaling approximately 1,997 acres (808.2 hectares (ha)). Claims are grouped

into three non-contiguous blocks: two claims in the area of the Carlysle Mine to the

north, two claims in the area of the Gold Crown Mine to the west, and the main block

with ninety-three claims (Figures 2, 3, and 4). Claim information is provided in

Appendix A.

A block of thirty-two Los Angeles (LA) claims is owned by Nevada Eagle Resources,

P.O. Box 18127, Reno, Nevada (NE). The “LA” claims total approximately 640 acres

(259 ha). The following summarizes the Exploration and Option to Purchase for the

“LA” claims with Nevada Eagle:

• On November 10, 2006, BLRV signed an Exploration Agreement with Option

to Purchase thirty-two unpatented lode claims known as the Los Angeles Mine

Group from Nevada Eagle Resources LLC, Jerry Baughman, President.

Exploration payments scheduled as:

o $10,000. on signing;

o $15,000. on 1st anniversary of verbal agreement April 27, 2007;

o $20,000. on 2nd anniversary April 27, 2008;

o $25,000. on 3rd anniversary April 27, 2009;

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3

o $30,000. on 4th anniversary April 27, 2010;

o $50,000. on 5th anniversary April 27, 2011; and

o Upon payment of the 5th anniversary payment of $50,000. the

purchase price of Los Angeles block of claims shall have been paid

and the owner shall sign over a Quit claim deed for the claims with a

retained royalty of 3% NSR. The company has the right to purchase

two (2) of the three (3) percent NSR for $1,000,000. per percentage

point.

Twenty-six unpatented claims are wholly owned by TKM Corporation, 1155 Paseo El

Mirador, Palm Springs, California (TKM), and are currently being optioned by BLRV.

The 26 optioned claims total approximately 577 acres (233.5 ha) and have been

surveyed (Baša, 2003).

BLRV negotiated a Letter of Intent for the right to acquire a Purchase Option for the

twenty-six TKM claims. The following summarizes the Purchase Option Agreement

between BLRV and TKM:

• On February 18, 2006 BLRV entered into an Exploration Agreement with an

Option to Purchase with TKM for the 26 unpatented lode claims known as the

Mission Mine. Exploration payments scheduled as:

o February 18, 2006 signing date $10,000.

o February 24, 2006 $40,000.

o September 1, 2006 $50,000. for period extending to September 1,

2009

• Grant of Purchase Option

o $1,500,000. until August 31, 2007

o $2,000,000. until August 31, 2008

o $2,500,000. until August 31, 2009

o Purchase price shall include a 2.5% NSR for the first three years of

production.

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4

• Grant of first right of refusal

o If BLRV has not exercised its option to purchase by September 7, 2007.

TKM shall have the right to sell the property to a third party as long as

the deal is first offered to BLRV.

In the TKM agreements, BLRV agrees to also:

• comply with all applicable federal, state, and local environmental

requirements;

• maintain claims in good standing;

• remove all old equipment from the claims;

• refrain from active mining until the Purchase Agreement has been initiated;

and

• notify TKM in writing within 30 days of terminating the Exploration Agreement.

The remaining thirty-nine unpatented lode mining claims, totaling approximately 780

acres (315.7 ha), were staked by BLRV. All BLRV and NE claims are unsurveyed.

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Fig 1

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Fig 2

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Fig 3

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Fig 4

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9

7.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE,

and PHYSIOGRAPHY

The Mission Property lies within the southern Pinto Mountains on the western edge of

the Mojave Desert. Access to the Property area is by road from either Twentynine

Palms or Palm Springs, California.

Access to the northern portion of the Mission Property is by road from Twentynine

Palms for 27 miles east on paved Highway 62, then southeast for 17 miles along the Old

Crown Road to the Property.

The southern portion of the Mission Property can be accessed from both Twentynine

Palms and Palm Springs. From Twentynine Palms east on paved Highway 62 for 2

miles (3 km) to the turn-off for the Joshua Tree National Park entrance, then 6 miles (10

km) to the park entrance (fee is US$15 and is good for 7 days), then 45 miles (72 km)

southeast along a two-lane paved secondary road to the Old Dale Road turn-off, then 18

miles (30 km) north on a maintained dirt road to the Property.

Alternatively, access from Palm Springs is southwest along paved Highway 10 for 50

miles (80 km) to the southern entrance to Joshua Tree National Park (currently there is

no guard station to collect the entrance fee), then 18 miles (30 km) north on a paved

secondary road to the Old Dale Road turn-off, then 18 miles (30 km) north on a

maintained dirt road to the Property.

The Property is on flat to moderately hilly terrain with elevations ranging from 1,500 feet

(450 meters) along the southern Property boundary to 3,000 feet (900 meters) in the

northeastern portion of the Property.

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10

Vegetation is sparse and generally consists of a variety of low shrubs and grasses.

The region has a desert climate, and mining and exploration may take place year-

round with only occasional weather-related difficulties.

Winters are cool to cold, with little precipitation. Summer days are warm to hot, with

cool nights. The area is fairly dry, with infrequent rains. Most precipitation comes as

winter snow and spring rains, although locally intense storms may develop any time

of year.

Twentynine Palms and Palm Springs are the major supply centers for the region.

The Property area is uninhabited, but is used recreationally.

The moderate topography imposes some challenges for the construction of mining or

milling facilities. Electric power would have to be supplied by generator.

Project permitting standards are well established by both federal and state statutes,

along with informal local policies and procedures. Permits are required for all

exploration or mining activities that disturb the surface. Reclamation bonds are also

required prior to any disturbance.

Because of the proximity to Joshua Tree National Park, any work programs requiring

permitting would entail more detailed information dissemination and review among

local stakeholders. Further discussion of permitting and bonding is beyond the scope

of this report, except to say that the process may become tedious but is not

particularly difficult.

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8.0 HISTORY

8.1 Area History

In 1861, gold was discovered in the Mule Mountains, located approximately 65 miles

(104 km) southeast of the Property. The Mission Mine was discovered in 1887. In

1895, the mines of Riverside County, which included the Pacific, Arica, Bendigo,

Gold Park, and Dale mining districts, produced 13,793 ounces of gold. Silver,

copper, and lead were also produced from many of the districts as byproducts of gold

production.

In the early 1900s, cyanide processing was developed and area mining activity

increased as mine dumps were reworked and formerly unprofitable mines were

reopened. Mining continued until 1914, then became sporadic until the 1930s.

There is little information available on exploration and mining within the Dale Mining

District prior to 1930.

Early Dale district producing mines included the Golden Rod, Los Angeles, Gold

Rose, Moose, Golden Egg, Rusty Gold, Pinto, Rose of Peru, Frank Hill, Gold

Standard, Brooklyn, Desert King, Gold Crown, Mission, and Sunrise that, prior to

1930, collectively produced at least 17,000 ounces of gold. The deepest mine of the

group was the Los Angeles at 750 feet (230 meters).

From the early to mid 1930s, mining activity increased, with most gold production

coming from the mines of the southern Dale district. The largest producer was the

Gold Crown mine. From 1935 to 1937, Gold Crown produced 31,448 tons of ore

yielding 10,921 ounces of gold and 12,524 ounces of silver (0.35 ounces per ton (opt)

gold and 0.4 opt silver).

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From the late1930s until the 1980s, gold mining in the district was again sporadic. In

1960, the California Division of Mines reported 1933-1955 production figures for the

Mission Mine showing a total of 1,142 ounces of gold produced from 1,418 tons of

ore giving an average grade of 0.805 opt (27.6 g/t) (CDMG, 1960). Total gold

production from the Dale District is estimated to be 185,000 ounces (Baša, 2003).

Beginning in the early 1980s, a number of mining companies attempted to develop

the Mission Mine by placement of a steel headframe and a variety of accessory

mining and processing equipment (Copenhaver, 1997). In 1981, a shaft was sunk to

650 feet (200 meters) and approximately 2,300 feet (700 meters) of development

drifts were constructed on 5 levels (the 129-, 319-, 400-, 490-, and 600-foot levels).

In the mid to late 1800s, iron was discovered in the northern Eagle Mountains located

approximately 12 miles (19 km) southeast of the Mission Property. The iron deposit

consists of magnetite and pyrite, with pyrite commonly containing 1.5 to 3% cobalt.

Iron ore replaces a variety of host rocks along the two unconformities, forming

massive to globular bodies. Associated mineralization included silver, copper, and

zinc. From 1923 until 1940, approximately 1.5 million pounds of lead, 126,327

pounds of copper, 32,482 ounces of silver, and 59 ounces of gold were produced

from the Black Eagle mine.

In 1944, production switched to iron, and from 1948 through 1986, Kaiser Steel

Corporation’s Eagle Mountain Mine produced approximately 100 million tons of high-

grade iron concentrate. Following the cessation of mining in 1982, Kaiser reported

that an estimated 238.8 million tons of measured reserves averaging 39.9% iron and

96.7 million tons of indicated reserves averaging 39.5% iron remained in the deposit,

of which 170 million tons were considered to be economically recoverable.

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During the 1950s, high radioactivity was discovered in the Music Valley area of the

Pinto Mountains, approximately 14 miles (24 km) west of the Mission Property. Only

traces of uranium were found, and it was determined that radioactivity was due to the

presence of thorium, which is related to the rare earth minerals xenotime (an yttrium

phosphate) and monazite (a cerium phosphate) hosted in gneisses intruded by

granite and diorite, and aplite and basaltic dikes. This rare earth mineralization was

mined and approximately 550 tons grading 35% xenotime was produced.

8.2 Previous Work

In the mid 1970s, a California state geologist estimated that 350,000 tons of

mineralized rock was still present at the Mission Mine, however no estimate of gold

grade was given.

In the 1980s, Asamera Minerals carried out a work program at the Mission Mine

consisting of seventy-four underground channel samples on the 125-, 319-, 400-, and

600-foot levels. Sample information is provided in Appendix B and shown in Figure

5.

In 1991, USMX Inc carried out a reconnaissance rock sampling program in the area

of the Mission Property, including the area around the Mission Mine and the Carlysle

Mine to the north (Cox, 1991). USMX’s work program consisted of sixty-eight rock

samples taken from surface and underground at the Mission Mine (Appendix C,

Figure 5). Locations for USMX’s surface samples were not available to the writer.

There is poor correlation between Asamera and USMX underground sampling, which

may be due to the coarse gold “nugget effect” that makes the taking of homogeneous

reproducible samples difficult.

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Fig 5

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In 1994, Susan Kohler-Antablin, a California state geologist, carried out a mineral

land classification study, which included regional rock sampling, on the eastern half

of Riverside County, California (Kohler-Antablin, 1994). The study was carried out in

accordance with the Surface Mining and Reclamation Act of 1975, and covered

approximately 3,057 square miles (79,760 ha). Kohler-Antablin designated

approximately 25 square miles (6,475 ha) of the southern Dale Mining District, which

includes the area of the Mission Property, as classification MRZ-2b.

The MRZ-2 classification denotes “areas of identified mineral resource significance”;

MRZ-2a applies to areas where geologic data indicate significant measured or

indicated mineral resources; and MRZ-2b applies to areas where geologic data

indicate significant inferred mineral resources.

The Mission Property is immediately adjacent to Joshua Tree National Park and will

probably be under increased scrutiny during work permitting. As the Mission

Property falls within an area determined by the State of California to be economically

significant for mining, the permitting process may be easier.

Kohler-Antablin also reported that a 3.2 square mile area in the Pinto Mountains, 5

miles (8 km) west of the Property, was prospective for regional metamorphic deposits

of the rare earth elements yttrium and cerium. As well, five areas totaling 110 square

miles were identified as being prospective for metasomatic deposits including iron,

copper, gold, silver, lead, zinc, and tungsten. The nearest area is located in the

Eagle Mountains surrounding Kaiser’s iron mine

Rock sample results from the area of the Mission Property (Section 14, Township 2S,

Range 12E) supporting the MRZ-2b classification follow:

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Table 1: Kohler-Antablin Rock Sampling 1994

Gold Silver Location Sample

opt g/t opt g/t

Not known S-141b 0.178 6.103 0.020 0.686 S-143a 0.755 25.886 0.260 8.914 Near Sunset Mine

S-143b 0.107 3.669 0.170 5.829 S-136b 0.165 5.657 0.010 0.343 S136c 0.002 0.069 0.160 5.486 S-136d 0.140 4.800 0.030 1.029 S-136e 0.100 3.429 0.050 1.714

Golden Egg

S-136g 0.118 4.046 0.200 6.857 Not Known S-138 0.118 4.046 0.080 2.743 Desert King Mine S-146 0.218 7.474 0.100 3.429 Duplex Mine S-387 1.492 51.154 4.730 162.171 Gold Crown

(S15, T2S, R12E) S-368 0.591 20.263 0.020 0.686

In 1996 and 1997, at the request of New Gold Inc, G. Copenhaver, a Registered

California Certified Engineering Geologist, carried out an exploration work program at

the Mission Mine designed to determine the structural and lithologic framework of

gold mineralization and to define targets for further exploration.

Copenhaver’s work program covered the southern three-quarters of Section 14,

Township 2S, Range 12E and consisted of the geological mapping and rock

sampling of the Mission Mine as well as the surrounding mines and mineral

properties. Available sample information is provided in Appendix D and selected

sample information is shown in Figure 8. Approximately 3,000 feet of underground

workings at the Mission Mine were mapped and rock sampled.

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As well, some of the mining equipment available on-site was refurbished and

serviced to facilitate the underground work program.

During the program the following work was completed:

• 129 surface reconnaissance rock chip samples;

• construction of a control baseline, with surface mapping at 1”=50’ and detailed

mapping at 1”=20’;

• 72 rock chip channel samples from selected portions of each Mission Mine

underground level;

• underground mapping;

• marking of mineralized areas for bulk sampling; and

• selection of “type” specimens for thin-section study and metallurgical testing.

The following observations are taken from Copenhaver’s 1997 report on the Mission

Mine:

• Gold mineralization at the Mission Mine occurs in steeply dipping northwest-

trending structures, with at least three sub-parallel vein faults. The structures

have a strike length of over 3,000 feet (915 meters) and a vertical depth of at

least 600 feet (183 meters). The highest gold value of 4.449 opt (152.537 g/t)

returned during the program was from a channel sample taken on the 600-foot

level (see Table 3);

• These sub-parallel structures occur in sheets ranging in width from 50 to 150

feet (15 to 45 meters) and show left- and right-lateral strike-slip movement in

conjunction with gouge and brecciation;

• Older shears, both low- and high-angle, as well as intrusive dikes in the

monzonite wallrock, show lateral offsetting;

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• Repetitive widening and narrowing of veins and faults at the Mission Mine

suggest cymoid tensional structure with multiple vein and fault branching;

• The greatest mineralized widths occur at depth;

• Typical gold mineralization occurs with iron sulfide minerals in intensely

fractured and silicified andesite, diorite, and monzo-granite;

• There have been at least two mineralization episodes;

• There are three identified structural trends affecting mineralization;

o North-northwest: The main structural trend at the Mission Mine with a

strike lengths of up to 4,000 feet (1,200 meters) with steep to vertical

dips;

o North-northwest to north-northeast: Observed in the area of the Pinto

and Duplex mines extending approximately 1,800 feet (550 meters)

with steep westerly dips; and

o East-west to east-northeast: In the area of the Desert King Mine

extending for up to 1,600 feet (490 meters) with steep to vertical dips.

The following table shows significant results from Copenhaver’s surface chip

sampling program.

Table 2: Significant Surface Chip Sampling (Copenhaver, 1997) Location (approx) Sample Width Gold Assay Sample Easting Northing in. ft. m. opt g/t

Description

GC-8 620916 3761893 24 2.0 0.6 0.166 5.700 from 5 ft wide vein fault GC-39 621394 3760779 48 4.0 1.2 0.530 18.171 Tailings south Mission GC-42 620484 3762210 12 1.0 0.3 0.408 13.989 prospect NW of Sunset GC-45 620187 3762518 36 3.0 0.9 0.471 16.149 shaft with E-W vein fault

GC-49 621490 3762372 6 0.5 0.2 0.761 26.091 EW at Pinto/Duplex mines

GC-54 621133 3762648 36 3.0 0.9 0.284 9.737 Desert King adit back

GC-56 621133 3762648 24 2.0 0.6 0.309 10.594 Desert King hanging wall

GC-58 621200 3762619 60 5.0 1.5 0.166 5.691 incline 30+ feet deep GC-59 621233 3762600 24 2.0 0.6 0.140 4.800 incline with NW shear GC-62 621541 3762461 24 2.0 0.6 0.207 7.097 Pinto Mine, EW branch

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Location (approx) Sample Width Gold Assay Sample Easting Northing in. ft. m. opt g/t

Description

adit

GC-63 621151 3761181 24 2.0 0.6 0.235 8.057 Mission southern extension

GC-68 621642 3762535 24 2.0 0.6 1.557 53.383 Tailings, Pinto shaft GC-72 621015 3762669 18 1.5 0.5 0.458 15.703 West of Desert King GC-77 620823 3762547 36 3.0 0.9 0.251 8.606 South of Desert King GC-82 621526 3762124 48 4.0 1.2 0.508 17.417 South of Pinto vein fault GC-98 620526 3761387 12 1.0 0.3 1.198 41.074 shaft with NE shear GC-105 620952 3761827 18 1.5 0.5 0.384 13.166 Mission north extension GC-107B - - 15 1.3 0.4 0.416 14.263 Mission sheared quartz GC-114 - - 2 0.2 0.1 0.608 20.846 NE Sunset

The following table shows significant results from Copenhaver’s underground

channel sampling program at the Mission Mine.

Table 3: Significant Underground Channel Sampling (Copenhaver, 1997) Sample Width Gold Assay Level Feet from

Main Shaft inches feet

meters opt g/t

Description

00+108S 18 1.5 0.5 0.454 15.566 vein fault 125 00+340N 22 1.8 0.6 0.351 12.034 vein fault in back 00+103S 24 2.0 0.6 0.885 30.343 vein fault in hanging

wall 00+108S 40 3.3 1.0 0.527 18.069 vein fault in back 00+113S 30 2.5 0.8 0.556 19.063 vein fault in back 00+125S 30 2.5 0.8 0.362 12.411 vein fault in face 00+264N 18 1.5 0.5 0.626 21.463 vein fault in stope

back, 12 feet above level

00+278N 18 1.5 0.5 0.299 10.251 vein fault in stope face 00+300N 12 1.0 0.3 2.552 87.497 footwall with cross-

cutting fractures 00+305N 48 4.0 1.2 0.301 10.320 vein fault in back 00+310N 36 3.0 0.9 0.190 6.514 vein fault in back 00+310N 30 2.5 0.8 0.390 13.371 vein fault in stope

face, 25 ft above level 00+315N 36 3.0 0.9 0.239 8.194 vein fault in back 00+320N 22 1.8 0.6 0.968 33.189 vein fault in back 00+324N 20 1.7 0.5 3.098 106.217 vein fault in back

319

00+325N 24 2.0 0.6 0.580 19.886 vein fault in face, 10 feet below level

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Sample Width Gold Assay Level Feet from Main Shaft inches fee

t meter

s opt g/t

Description

00+320N 20 1.7 0.5 0.724 24.823 vein fault in face, 24 feet below level

00+380N 14 1.2 0.4 0.132 4.526 vein fault in face 00+060S 20 1.7 0.5 0.369 12.651 vein fault in back 00+265N 30 2.5 0.8 0.463 15.874 vein fault in stope

face, 25 feet above level

400

00+341N 12 1.0 0.3 0.476 16.320 vein fault in back 00+46N 30 2.5 0.8 0.206 7.063 vein fault in back

00+211N 36 3.0 0.9 0.129 4.423 vein fault in face, 25 feet below level

00+211N 40 3.3 1.0 0.504 17.280 vein fault in floor, 30 feet below level

00+250N 26 2.2 0.7 0.710 24.343 vein fault in back, 5 feet below level

00+255N 26 2.2 0.7 1.058 36.274 vein fault in back, 6 feet below level

600

00+265N 30 2.5 0.8 4.449 152.537 vein fault in back, 4 feet below level

In 1997, McClelland Laboratories Inc, 1016 Greg Street, Sparks, Nevada (McClelland),

carried out bottle roll (agitated cyanidation) and gravity tests on bulk ore samples from

the Mission Mine for New Gold Inc. Bottle roll results showed that after 6 hours of

cyanide leaching, 79.2% of the gold was extracted. Extraction increased to 88.8% after

96 hours of leaching. Gravity tests showed that gold recovery was 5.6%-17.2% from

concentrates, 4.0%-20% from middlings, and 70.5%-78.8% from tails.

In 2003, Elaine and Frank Baša (Baša) carried out a work program consisting of fifty-

eight underground rock samples and the writing of a technical report on TKM’s

claims. Baša samples were never submitted for assay and were not included in their

technical report. In 2006, BLRV submitted the Baša samples to ALS Chemex for

analysis. Baša could not provide sample descriptions or locations, and therefore the

writer has not included information on the Baša sampling in BLRV’s Mission Property

summary report. In 2006, BLRV submitted the Baša assay reject material to

McClelland for metallurgical study.

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9.0 GEOLOGICAL SETTING

The Dale Mining District is situated in the Mojave Desert at a major structural break

between the Central Mojave detachment terrane and the San Andreas and Pinto

Mountain Fault segments. The region may also be near Tertiary low-angle shearing

between middle- and upper-crustal plates (Copenhaver (1997)).

The Mojave Desert consists of mountain ranges separated by desert plains. Primary

mineral deposits occur as either mesothermal gold-quartz veins in Precambrian,

Paleozoic, and Mesozoic metamorphic and granitic rocks, or Tertiary epithermal

veining associated with silicification and/or brecciation (Baša, 2003).

Within the Central Mojave detachment terrane, bedded rocks exhibit independent

deformation styles that are usually the result of folding and/or overthrusting. The

oldest exposed rocks in the region are Proterozoic metamorphic augen gneisses

dated at 1.67 billion years (Ga) (Kohler-Antablin, 1994).

9.1 Regional Geology and Structure

9.1.1 Regional Geology

West of the Mission Property, exposed rocks consist primarily of Proterozoic and

younger Mesozoic rocks. To the east, rocks consist of younger Cretaceous and

Jurassic rocks (Figures 6 and 7).

Proterozoic rocks consist of quartzofeldspathic gneisses, orthogneiss, and

paragneiss of the San Gabriel and Joshua Tree terranes. Mesozoic rocks consist of

felsic plutonic rocks ranging from granite to quartz diorite (some may be Proterozoic)

and mafic plutonic rocks, mainly diorite and gabbro.

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Joshua Tree terrane consists of Proterozoic granite and granite gneiss capped by

schist and overlain by a group of metasedimentary rocks termed Pinto gneiss.

The San Gabriel terrane consists of:

• a higher unit of upper-amphibolite-grade metasedimentary gneiss intruded by

granodiorite augen gneiss;

• a middle unit of granulite gneiss which intrudes upper level rocks; and

• a lower unit of syenitic complex which intrudes the granulite.

Jurassic rocks consist of a variety of volcanic and hypabyssal rocks consisting of

massive rhyolite to dacite porphyries.

Cretaceous plutonic rocks were emplaced during a period of active plate collision

resulting in the Pacific oceanic crust being subducted beneath the North American

continental margin. Cretaceous rocks range in composition from granite to

granodiorite, and are unmetamorphosed to strongly foliated (Kohler-Antablin, 1994).

9.1.2 Regional Structure

The region has undergone east-directed thrust faulting due to crustal shortening,

folding, and strike-slip and normal faulting.

Three Mesozoic thrust systems have been identified in the Mission Property region:

• The Red Cloud thrust system – at least two main episodes likely Late Triassic

or older;

• The Orocopia-Chocolate Mountains thrust system – late Cretaceous to early

Paleocene; and

• The Mule Mountains thrust system – late Cretaceous.

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The Mission Property is situated on the up-thrusted portion located between the Red

Cloud system to the west and the Mule Mountains system to the east.

High-angle faulting is common in the region and may represent strike-slip faults that

were activated during or between Mesozoic thrusting events (Burchfiel et al (1981),

as reported by Kohler-Antablin, 1994). Resulting breaks and shears likely provided

the plumbing system for the deposition of base and precious metals in the region.

Cenozoic uplift deformation was controlled by east-west-trending compressional

transverse faulting, and by northwest-trending right-lateral strike-slip faults including

the San Andreas Fault system located approximately 35 miles (56 km) southwest of

the Property.

9.2 Property Geology

Fine- to coarse-grained locally porphyritic Jurassic hornblende-biotite monzo-granite

is the most abundant rock type on the Mission Property. Granitic rocks are cut by

sets of conjugate faults, fractures, and dikes that host alteration and mineralization

(Copenhaver, 1997).

Observed major structures related to gold mineralization are:

• Northwest- to north-northwest-trending faults and veins at the Mission Mine;

• North-northeast faulting and veining in the area of the Pinto and Duplex mines;

and

• East-west and east-northeast faulting and veining at the Desert King Mine.

Alteration occurs where granitic rocks are cut by faulting and/or diking, and consists

of fracture-hosted pyrite, quartz, magnetite, hematite, manganese, calcite, and clay.

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On the Mission Property, granitic rocks are intruded by a variety of dikes including

younger sometimes porphyritic dikes of andesitic to dioritic composition, and also by

older rhyolitic dikes. Within the Dale Mining District, gold production has been

generally higher in areas cut by porphyritic dikes of andesitic composition

(Copenhaver, 1997). Older dikes may also be cut by younger dikes.

Younger dikes are steeply dipping and typically strike northwest to north-northeast.

Older dikes intrude low-angle (5o-45o) shears in host granitic rocks, and generally

strike east-west to east-northeast. Where the two dike types intersect, alteration

consisting of silicification along with deposition of pyrite, magnetite, and/or

manganese can occur (Copenhaver, 1997).

Zones of gold mineralization are generally found in contact with highly fractured or

sheared dike rocks. In turn, dikes have been faulted, showing shears and gouging,

which shows that area structures have been active over time, with multiple episodes

of deformation.

At the Mission Mine, gold mineralization occurs in the main Water Well vein, and in

two secondary veins, the Lone Star and Verde. The Lone Star and Verde are now

within Joshua Tree National Park. The Water Well vein ranges from several inches

to over 4 feet wide (1.2 meters), strikes north-northwest, dips 85o east to vertical, and

can be traced on surface for over 3,300 feet (1,000 meters).

Historical gold production was from an ore-shoot approximately 260 feet long, 2 feet

wide, and 600 feet deep (79 by 0.61 by 183 meters respectively). Sub-parallel veins

lie east and west of the main vein (Smit, 1982).

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At the Sunset Mine, the main vein trends north-northwest, ranges from 1 to 2 feet

wide (0.3 to 0.6 meters), and can be traced for approximately 2,000 feet (610

meters). Sub-parallel secondary veins were also observed (Netolicky, 1982).

At the Duplex Mine, the depth of the shaft sunk on the main vein is reported to be

1,000 feet (305 meters). The vein ranges from 1.5 to 3 feet (0.5 to 0.9 meters) in

width, and consists of brecciated quartz with diorite, sphalerite, and clay. The vein

has been traced for 900 feet (275 meters) (Netolicky, 1982).

At the Brooklyn Mine, the surface expression of the mineralized vein can be traced

for 4,500 feet (1,370 meters) on surface. Underground, the production vein ranges

from 2 to 4 feet (0.61 to 1.2 meters) wide. Two ore-shoots were mined: one shoot

was 100 feet long and 4 feet wide (30 by 1.2 meters), the second was 200 feet long

and 4 feet wide (60 by 1.2 meters). Four levels were worked down to approximately

300 feet (91 meters) below surface.

The Los Angeles Mine has been developed to a depth of 750 feet (230 meters) on a

vein parallel to the Brooklyn Mine vein and approximately 1,000 feet (305 meters) to

the west. The production vein ranges from 2 to 6 feet (0.61 to 1.8 meters) wide.

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Fig 6

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Fig 7

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10.0 DEPOSIT TYPES

Historically, the principal target on the Mission Property has been mesothermal gold-

bearing quartz vein mineralization. However, a regional study by Kohler-Antablin

(1994) suggests that the region within which the Mission Property is situated may

have been affected by iron oxide-copper-gold-rare earth (IOCG) mineralization

exemplified by the Olympic Dam deposit in Australia.

10.1 Mesothermal Deposits

Mesothermal gold mineralization generally occurs in millimeter- to meter-wide quartz

veins hosted by granitic intrusions (equigranular to porphyritic in texture) and

adjacent hornfelsed country rock. Veins form parallel arrays (sheeted) and less

typically, weakly developed stockworks, where a higher density of veins and veinlets

improves the economic potential of the deposit. Native gold occurs associated with

minor pyrite, arsenopyrite, pyrrhotite, scheelite, bismuth, and telluride minerals.

Mineralization is most commonly found in continental margin sedimentary

assemblages intruded by igneous plutons.

Veins are structurally controlled, forming in tensional fractures and shears within and

near the upper portions of small (<3 km2) granitoid intrusions at depths of 2 to 8

kilometers. Mineralization likely formed from magmatic fluids that accumulated in

late-stage melts of differentiating granitic intrusions.

Gold mineralization is hosted in granitic intrusions and variably metamorphosed

sedimentary rocks that have been intruded by the granites.

Granitoid rocks vary lithologically but are typically granodiorite and quartz monzonite

to granite.

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Most granitic intrusions have lithological variations that appear as multiple phases

including monzonite, monzo-granite, albite granites, alkali syenite, and syenite. More

differentiated phases commonly contain feldspar and quartz, and less than 5% mafic

minerals.

Mineralization can be divided into intrusion-related, epizonal, and shear-veins:

• Intrusion-related: Mineralization typically occurs in widespread sheeted

vein arrays. Vein arrays typically consist of numerous sheeted or, less

commonly, stockwork, veinlets, and veins that form zones that are 10’s of

meters wide, and continuous for several tens of meters. Individual vein

widths vary from hairline up to tens of meters;

• Epizonal: Mineralization is typically less focused, and may be

disseminated, or occur as replacements; and

• Shear-veins: Veins are typically in fault zones outside of the granitic pluton.

Sulfide minerals are generally less than 3% and can be less than 1%. Native gold,

sometimes visible, occurs with associated minor pyrite, arsenopyrite, pyrrhotite,

scheelite, or more rarely wolframite, and sometimes molybdenite, bismuthinite, native

bismuth, telleurides, tetradymite, galena, and chalcopyrite. Epizonal veins are

arsenopyrite-pyrite rich and lack associated bismuth, tellurium, and tungsten

minerals. Quartz is the dominant gangue mineral, with associated minor sericite,

alkali feldspar, biotite, calcite, and tourmaline.

Pathfinder elements related to mesothermal gold mineralization include tungsten,

bismuth, arsenic, and, to a lesser degree, tin, stibnite, silver, molybdenum, copper,

lead, tellurium, and zinc.

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Mesothermal deposits are characterized by relatively restricted alteration zones that

are most obvious as narrow alteration selvages along the veins. Alteration generally

consists of the same non-sulfide minerals that occur in the veins, typically albite,

potassium feldspar, biotite, sericite, carbonate (dolomite), and minor pyrite.

Pervasive alteration, dominated by sericite, occurs in association with the richest ore

zones. Wall rocks surrounding the granitoid intrusions are typically hornfelsed and, if

carbonaceous, contain disseminated pyrrhotite. Alteration appears more extensive at

shallow emplacement depth or greater distance from the intrusion. Epizonal deposits

may have clay alteration minerals.

10.2 IOCG Deposits

Olympic Dam-type iron oxide-copper-gold-uranium-rare earth elements deposits

(IOCG) are characterized by iron-rich, low-titanium rocks formed in extensional

tectonic environments. IOCG deposits are formed in crustal environments as

expressions of deeper-seated, volatile-rich igneous-hydrothermal systems, tapped by

deep crustal structures. Deposits occur as magnetite+/-hematite breccias, veins, and

tabular bodies hosted by continental volcanics, sediments, and intrusive rocks

(Lefebure, 1995).

The following observations are based on Hitzman et al (1992):

• Age: Early to mid-Proterozoic host rocks (1.1 - 1.8 billion years (Ga)),

however, examples are recognized into the Tertiary. Ages in the 1.8-1.4 Ga

range suggest a relationship to the global rifting that preceded the break-up of

the mostly amalgamated Proterozoic super-continental land masses and

subsequently led to continental drift.

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• Tectonic Setting: Located in cratonic or continental margin environments

associated with extensional tectonics and major structural zones. Deposits

can be elongated parallel to regional or local structural trends.

• Mineralogy: Ores are generally dominated by iron oxides (magnetite or

hematite). Magnetite is found at deeper levels than hematite. Calcium

carbonate, barium, phosphorus, or fluorine minerals are common. The

deposits contain anomalous rare earth elements (REE); and

• Alteration: Alteration mineralogy depends on host rock lithology and depth of

deposit formation. Generally, the alteration trend is from sodic alteration at

deep levels, to potassic alteration at intermediate to shallow levels, to sericitic

alteration and silicification at very shallow levels.

The Olympic Dam Breccia Complex is located in southern Australia approximately

520 km northwest of Adelaide, and has a reported mineral resource of 2,320 million

tonnes (Mt) grading 1.3% copper, 0.4kg/t U3O8, 2.9 g/t silver and 0.5g/t gold.

IOCG-type deposits occur as discordant veins and breccias cutting across local host-

rock bedding, or as massive concordant bodies paralleling host-rock bedding.

Deposits occur in crustal environments, generally between 4 and 6 kilometers, and

are thought to be expressions of deeper-seated, volatile-rich igneous-hydrothermal

systems, tapped by deep crustal structures.

IOCG-type deposits are products of hydrothermal processes acting in the upper

crust. Alteration patterns associated with IOCG deposits are zoned and extend

beyond areas of massive to semi-massive iron mineralization. Alteration mineral

suites occur as host-rock replacement and veining. Iron oxides occur as

disseminations in wall-rocks, as well as in massive bodies and stockworks.

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The size of IOCG-type deposits suggests large quantities of mineralizing

hydrothermal fluids that could be generated by the removal of water from magmatic

solutions at depth, and by the deep circulation of ground water.

These two fluid sources likely became mixed. Deposits are located in tectonically

active areas undergoing extensional fracturing and faulting. This spatial relationship

between deposit location and crustal deformation suggests that physical deformation

provided the plumbing system through which mineralizing fluids moved.

While mineralization at Olympic Dam is not necessarily indicative of mineralization in

the Mission Property, mineralization in the Property region and similarities in element

chemistry and structural setting suggest exploration potential.

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11.0 MINERALIZATION

The monzonitic granite hosting gold mineralization on the Property shows local

silicification as well as the presence of magnetite and/or hematite, pyrite, and quartz

carbonate veining.

At the Mission Mine, the rock alteration assemblage consists of quartz + pyrite +

magnetite + hematite, along with calcite, siderite, manganese, and chlorite. Calcite

veinlets occur in shears and breccias.

Secondary copper minerals such as chrysocolla and malachite were observed in

prospect pits and in underground workings. On the 600-foot level of the Mission

Mine, secondary copper mineralization occurs and replaces primary quartz and

sulfides.

Ore-shoots plunge steeply through all levels of the Mission Mine, with some of the

widest mineralized widths and highest grades coming from the deeper levels

(Copenhaver, 1997).

Gold- and silver-bearing hydrothermal fluids, traveling along faults, fractures, and

shears, likely resulted from Jurassic-Cretaceous late-stage magmatic plutonic activity

(Kohler-Antablin, 1994).

High-temperature minerals including magnetite, specular hematite, pyrite, and mafic

rock-forming minerals, with a corresponding lack of lower-temperature assemblages,

suggest hypothermal mineral deposition that forms at high temperatures and

pressures (Copenhaver, 1997).

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12.0 EXPLORATION

In 2006, BLRV carried out a work program on the Mission Property consisting of

forty-three rock geochemical samples. Rock sample information is provided in

Appendix D. Selected rock sampling information is shown in Figure 8.

12.1 Rock Chip Geochemical Sampling

The following table shows assay results suggesting an IOCG-deposit mineral

assemblage.

Table 4: IOCG Trace Elements Assay Results ppm Sample Au Ag Co Cu La Mo P

ST022806-1 0.02 23.2 14 749 10 13 340 ST022806-2 0.00 3.3 265 30 160 134 3850 ST030106-1 0.01 1.6 261 33 160 135 3970 ST030106-2 0.01 4.8 176 5360 30 11 610 ST030106-3 0.00 1.9 14 45 20 12 1070 ST030106-4 0.02 5.4 47 2990 110 132 400

Samples ST022806-2 AND ST030106-1 returned anomalous phosphorus as well as

elevated cobalt, lanthanum, and molybdenum values. None of the samples returned

anomalous gold, however sample ST022806-1 is anomalous in silver.

The following table shows selected assay results from BLRV rock sampling.

Table 5: Selected BLRV Rock Sampling Assay Results ppm Sample Gold Silver Copper Phosphorus Lead

ST042206-1 19.55 33.1 2440 550 171 ST042306-2 3.44 2.2 30.4 340 169.5 ST042306-3 77.90 0.4 36.4 770 12 ST042306-5 5.60 2.57 377 530 42.6 ST042506-2 7.83 72.1 1010 180 546 ST042506-3 3.53 5.59 1680 150 2020 ST042506-4 2.20 14.3 118 390 101

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Assay Results ppm Sample Gold Silver Copper Phosphorus Lead ST042506-5 26.00 5.52 430 550 266 ST042506-6 11.05 7.14 966 4070 530 ST042506-7 2.22 1.43 201 500 83.1 ST042606-2 18.75 5.05 264 820 33 ST042606-3 10.05 2.47 19.8 410 37.5 ST042806-1 41.20 >100 2890 8730 419 ST042806-2 1.93 2.51 1325 4050 90.2 ST042806-4 5.76 4.92 1140 2510 441 ST042906-1 3.20 5.35 435 50 396 ST042906-2 3.05 1.36 173.5 170 53.5 ST042906-3 2.23 7.02 798 380 450 ST042906-4 12.25 8.74 861 370 72.9 ST042906-5 4.01 0.71 33.5 540 12.2 ST042906-6 11.35 5.84 750 190 96.5 ST042906-7 7.70 17.6 427 450 114.5 ST043006-1 1.72 0.74 526 1080 40.3 ST043006-2 8.76 4.62 3500 570 729 ST043006-4 34.40 21 4190 350 326

Sample ST042806-1 returned the second highest gold value of 41.2 g/t and the

highest silver value of >100 g/t. The sample was re-assayed using an ore-grade

assay method and returned 207 g/t silver.

12.2 Geophysical Surveys

In April 2006, Zonge Geophysical Services conducted a ground magnetic survey.

The survey covered three non-contiguous portions of the southern claim area around

the Mission Mine. Total coverage was approximately 264 acres (106 ha); 62 acres

(25 ha) over the Sunset Mine; 62 acres (25 ha) over the Duplex Mine; and 140 acres

(56 ha) over the Mission Mine.

Survey results are interpreted to show that mineralized veining, indicated by historical

workings and by surface rock sampling, is generally located within areas of low

magnetic response (Figure 9).

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Fig 8

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13.0 DRILLING

Some drilling was carried out in the Property area previous to BLRV acquiring control

of the Mission Property but no information is available to the writer.

14.0 SAMPLING METHOD and APPROACH

Rock sampling of the Mission Property has been limited to reconnaissance scale

surface and underground rock geochemical samples. Available results are discussed

in Sections 8.2 and 12.1. No program has been initiated to systematically sample the

Property.

15.0 SAMPLE PREPARATION, ANALYSIS and SECURITY

Rock samples collected by BLRV were submitted to the Reno, Nevada office of ALS

Chemex. Standard sample preparation for samples involves logging the sample into

the laboratory sample tracking system, drying, crushing, and pulverizing the entire

sample so that greater than 85% passes a 75-micron screen.

Gold was analyzed using the following ALS Chemex procedures:

• Au-AA25 – ore-grade gold by FA/AAS finish, using a 30 gram sample

weight, having a result range from 0.01-100 ppm; and

• Au-AA26 – ore-grade gold duplicate by FA/AAS finish, using a 50 gram

sample weight, having a result range from 0.01-100 ppm.

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Samples containing ore-grade silver were processed using the Ag-AA46 method

using aqua regia digestion with AAS finish giving a result range of 1-1,500 ppm.

Trace elements were determined by the ME-ICP41 process which uses aqua regia

acid digestion ICPAES (Inductively Coupled Plasma Atomic Emission

Spectrophotometry).

In North America, ALS Chemex laboratories have achieved ISO 9001:2000

registration and maintain an internal quality control program including the use of

blank, duplicate, and standard samples inserted into the sample stream. ALS

Chemex provides industry-standard sample preparation and analytical methods, and

is deemed by the writer to conform to reasonable data verification controls.

16.0 DATA VERIFICATION

Other than a review of land status and the Property examination, the writer did not

attempt to verify the information available for the Mission Property. The limited

geochemical sampling did not warrant independent check sampling.

17.0 ADJACENT PROPERTIES

There are no adjacent mineral properties that materially affect the technical opinion

offered in this report.

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18.0 MINERAL PROCESSING and METALLURGICAL TESTING

In July 2006, BLRV requested McClelland to carry out metallurgical tests on assay reject

sample material from underground samples taken by Baša in 2003. Baša’s samples

were analyzed but no location or description information is available.

A total of four composites were prepared for preliminary metallurgical testing, and a

gravity concentration test, a flotation test, and a milling/cyanidation test was conducted

on each composite. Metallurgical tests are underway and no information is currently

available to the writer.

19.0 MINERAL RESOURCE and MINERAL RESERVE ESTIMATES

No Mineral Reserves or Resources, as currently defined by C.I.M. terminology, have

been outlined on the Mission Property.

20.0 OTHER RELEVANT DATA and INFORMATION

No other relevant data and information is available on the subject area.

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21.0 INTERPRETATIONS and CONCLUSIONS

21.1 Interpretations

IOCG-type mineralization and mesothermal mineralization are closely related to

deep-seated igneous activity, and deposits can be found in a wide variety of rock

types. Host rocks must be structurally and chemically prepared to create a well-

developed fracture system suitable for permitting access of hydrothermal fluids for a

period sufficiently long enough to form an economic deposit. Favorable host rocks

will be competent (brittle), which are more likely to form through-going upward-

branching open fractures under faulting stresses. Less competent rocks under

similar stresses tend to form stockworks. The introduction of silica, as host rock

replacement and as quartz gangue in vein and breccia fillings, is an important ground

preparation event enhancing the host rock’s ability to fracture and maintain open

fissures.

Some general observations can be made concerning IOCG-type mineralization:

• Polymetallic IOCG-type mineralization tends to occur in Proterozoic rocks

(between 1.1 and 1.8 billion years old);

• IOCG-type deposits are generally located in cratonic or continental margin

environments associated with extensional tectonics and major structural

zones;

• Mineralization is generally dominated by the iron oxides magnetite and/or

hematite. Calcium carbonate is common. The IOCG geochemical signature

can include copper, gold, silver, uranium, cerium, lanthanum, cobalt,

phosphorus, fluorine, and barium; and

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• Alteration type generally varies upward from sodic at depth, to potassic, then

to sericitic alteration and silicification at very shallow levels.

Some general observations can be made concerning mesothermal mineralization:

• Mesothermal gold mineralization generally occurs in millimeter- to meter-wide

quartz veins hosted by granitic intrusions;

• Veins form parallel arrays (sheeted) and less typically, weakly developed

stockworks;

• Mineralization is most commonly found in continental margin sedimentary

assemblages intruded by igneous plutons

• Veins are structurally controlled by faults, fractures and shears; and

• Mesothermal deposits are characterized by relatively restricted alteration

zones which are most obvious as narrow alteration selvages along the veins.

The following statements are consistent with the above observations:

• Rocks hosting gold mineralization on the Mission Property are Jurassic

granites with Proterozoic sediments to the west and southeast;

• Mineralization associated with nearby Proterozoic rocks include rare earth

elements yttrium and cerium to the west of the Property and an historically

producing iron (magnetite-pyrite) mine to the southeast;

• Rocks of the Property area have been subjected to extensional tectonics, and

observations made of diking on the Property suggest that tectonic activity has

continued over time;

• Ground magnetic surveys show that gold mineralization is associated with

magnetic lows that are possibly due to clay and/or silica alteration in structural

zones;

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• Sub-parallel quartz veining occurs in close association with a number of gold-

producing quartz veins on the Mission Property;

• Mineralized quartz veins have been traced along strike on surface for up to

4,500 feet (1,371 meters);

• Gold mineralized quartz veins range up to 4 feet (1.2 meters) wide and have

been mined to depths of approximately 1,000 feet (300 meters);

• Significant gold assays from the lowest level of the Mission Mine shows that

mined ore-shoots are open at depth;

• High-temperature gangue including magnetite, specular hematite, pyrite, and

mafic minerals, with a corresponding lack of low-temperature mineral

assemblages, indicates a relatively deep mineralization origin and suggests

that mineralization is more likely to continue at depth rather than be cut off due

to increasing temperature and pressure considerations;

• Rocks hosting gold mineralization show structural deformation and multiple

episodes of silicification. The area’s complex structure suggests the potential

for a developed feeder system that may have improved gold transport and

deposition; and

• Quartz veining hosting gold mineralization on the Mission Property generally

trends northwest with secondary northeast and east-northeast orientations;

Claims comprising the Mission Property vary in status from grassroots prospects to

past producing mines. Work indicates gold mineralization occurs in quartz veins

closely associated with granitic dikes both spatially and in time.

IOCG-type signature elements, such as copper, gold, silver, phosphorus, cobalt, and

rare earth elements, are present in the hydrothermal system or systems affecting the

Property area.

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The following estimates of possible gold grades and tonnage have been included to

give a conceptual idea of the size of the exploration target, and are not to be viewed

or interpreted as NI 43-101-compliant Mineral Reserves or Resources, as currently

defined by C.I.M. terminology.

While the figures prepared by or for BLRV are based on relevant Mission-related data

from various sources, they are not intended to and do not meet NI 43-101 standards.

BLRV and the writer are not treating the estimates as a NI 43-101 defined resource

or reserve. The writer’s estimates are intended solely for reference in conceptual

discussion, and therefore should not be relied upon for any other purpose.

Estimates have been based on the following parameters and assumptions:

• Historical gold grade at the Mission Mine based on CDMG (1960) production

records is calculated to be 0.805 opt (27.6 g/t);

• Average gold grade at the Mission Mine based on the average gold values

returned from Copenhaver’s underground rock sampling is calculated to be

0.416 opt (14.26 g/t);

• Average gold grade at the Mission Mine based on the average gold values

returned from Asamera’s underground rock sampling is calculated to be 1.078

opt (36.9 g/t);

• Historical information reports that mined quartz veins range in width from 2 to

4 feet (0.61 to 1.2 meters). Underground rock sample widths from

Copenhaver averaged 2.1 feet. A general vein width of 2 feet (0.6 meter) has

been used;

• 1 ton of vein material = 11.9 cu. ft.

• Sampled underground length at the Mission Mine as 500 feet (152 meters);

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• Vein surface expressions within the Property area have been reported to be as

long as 4,500 feet (1,370 meters);

• Rock sampling by Copenhaver and Asamera on the 600-foot level at the

Mission Mine returned gold values ranging from 0.009-4.49 opt gold

(Copenhaver) and 0.9 to 3.5 opt gold (Asamera) showing that gold

mineralization extends deeper than has historically been mined;

• Underground rock sampling also suggests that gold mineralization continues

north and south along vein strike; and

• The California Division of Mines and Geology reported an estimated overall

tonnage for the Mission Mine of 350,000 tons.

Average Mission Mine gold grade = (1.078+0.416+0.805)/3 = 0.766 opt (26.3 g/t).

Mission Mine vein tonnage = 500’ long x 2’ wide x 600’ deep = 50,400 tons.

• Estimated gold content = 75,600 x 0.766 = 38,600 ounces.

Historical underground sampling suggests that gold mineralization continues at depth

and along strike. Therefore, if vein strike length is increased by 50% in each

direction and vein depth is also increased by 50%:

• Vein tonnage = 1,000’ long x 2’ wide x 900’ deep = 151,200 tons; and

• Estimated gold content = 226,800 x 0.766 = 115,820 ounces.

No details were given concerning the CDMG estimate of 350,000 tons. If this figure

could be substantiated, estimated gold content would be approximately 268,000

ounces (350,000 x 0.766).

As shown on Figure 9, there may be as many as ten northwest-trending vein systems

on the Mission Property, some which have already demonstrated mining activity to

1,000 feet (300 meters) in depth. The presence of these other mineralized vein

systems could potentially increase the Property’s gold content.

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Fig 9

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21.2 Conclusions

The objective of this summary report is to assess the potential for the Mission

Property area to host vein-type gold mineralization and/or polymetallic mineralization

associated with an IOCG-type deposit.

The Mission Property is considered to have good potential to host an economic vein-

type gold deposit and possibly an IOCG-type deposit because:

• the Property area exhibits long-term, possibly episodic, tectonic activity;

• rock sampling indicates that gold, silver, cobalt, and rare earth elements are

present in the area’s hydrothermal mineralizing system;

• The number of historically producing mines within the Mission Property, and in

the Dale Mining District as a whole, demonstrates that the mineralizing system

in the area carries economic grades and quantities of gold;

• Gold is one of the signature elements in a IOCG-type deposit;

• The Property area is situated in a region partially consisting of Proterozoic age

rocks similar in age to the host rocks of the Olympic Dam type deposit; and

• Historical rock sampling within the Mission Property area, and underground at

the Mission Mine in particular, shows potentially economic gold grades.

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22.0 RECOMMENDATIONS

The following two-stage exploration program is recommended for the Mission

Property. Timely results of Stage 1 work may be used to modify Stage 2 drilling, but

there are sufficient drill targets on the Mission Property so that Stage 2 drilling is not

contingent on Stage 1 results.

Stage 1

A Stage 1 work program should consist of surface and underground geological

mapping in conjunction with a rock sampling program designed to systematically

cover the Mission Property on surface and underground. Stage 1 work is estimated

to cost US$90,000.

Stage 2

A Stage 2 work program should consist of approximately 10,000 feet (3,050 meters)

of core drilling in as many as twenty-five holes. Drilling should be designed to test

gold mineralization at depth and along strike at locations where there has been

historical mining activity. As underground workings at the Mission Mine extend to a

depth of 600 feet (184 meters), drill hole lengths may occasionally be as deep as

1,000 feet (305 meters). Stage 2 work is estimated to cost US$960,000.

BLRV has begun the permitting process for two drill programs: a thirteen-hole

program in the area of the Brooklyn and Los Angeles mines, and a twelve-hole

program in the area of the Mission Mine. Two “plans of operation” (POO) have been

submitted to the Bureau of Land Management (BLM), Barstow, California, and are

being processed.

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22.1 Proposed Budgets: Stage 1 and Stage 2

PROPOSED BUDGET, Stage 1 Exploration Program Mission Property, California ALL US$Project preparation $ 6,000Mobe/Demobe (incl transportation and wages) 5,000 Field Crew: Rate Days Totals Project Geologist $ 550 30 $ 16,500 Geotechnician 300 30 9,000 25,500 Field Costs: Food & Accomm $ 125 60 $ 7,500 Communications 25 30 750 Supplies 25 30 750 Shipping 1,000 Vehicle Rental 150 30 4,500 Other Rentals 50 30 1,500 16,000 Rate Units Rock Sampling: $ 40 500 20,000 Report: Report preparation and editing $ 3,800 Data Processing, copying, binding 700 4,500 Administration, incl Contractor Overheads and Profit (15%), 11,550 $ 88,550 Rounded to $ 90,000

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PROPOSED BUDGET, Stage 2 Exploration Program Mission Property, California ALL US$Project preparation $ 5,600Mobe/Demobe (incl freight, transportation and wages) 5,000 Field Crew: Rate Days Totals Project Geologist $ 550 70 $ 38,500 Geotechnician 300 70 21,000 59,500 Field Costs: Food & Accommodation $ 125 140 17,500 Communications 25 70 1,750 Shipping 1,000 Supplies 25 70 1,750 Vehicle Rental 150 70 10,500 Other Rentals 50 70 3,500 36,000 Assays & Analysis: Rate Units Core Samples $ 40 1,500 60,000 Core storage: $ 250 12 mon 3,000 Contracts Core Drilling – includes site prep, mobe and demobe, accommodation/food, and field costs

$ 58 10,000 580,000

Reclamation, incl refundable bond 75,000 655,000 Report: Report preparation and editing $ 4,800 Data Processing, copying, binding 800 5,600 Administration, including Contractor Overheads and Profit (15%) 124,455 $ 954,155 Rounded to $ 960,000

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23.0 REFERENCES

Baša, E., and Baša, F., 2003, Technical Report for The Mission Mine, Riverside County, California.

CDMG, 1960, California Division of Mines and Geology, Preliminary Manuscript, Mission (Huff-Lane) Mine.

Copenhaver,. G.C., 1997, Mission Mine, Riverside County, California, New Gold Inc.

Goad, R.E., Mumin, A.H., Duke, N.A., and Neale, K.L., (1999): The Nico and Sue-Dianne Proterozoic, Iron-oxide-hosted, Polymetallic Deposits, Northwest Territories: Application of the Olympic Dam Model in Exploration.

Hennessey, B.T., and Puritch, E., (2004): An Updated Mineral Resource Estimate for the Nico Cobalt-Gold-Bismuth

Deposit, Mazenod Lake District, Northwest Territories, Canada, for Fortune Minerals Limited.

Hitzman, M.W., Oreskes, N., and Einaudi, T., (1992): Geological characteristics and tectonic setting of Proterozoic iron oxide (CU-U-

Au-REE) deposits, in G.G. Gaál and K. Schulz (Editors), Precambrian Metallogeny Related to Plate Tectonics, Precam. Research, 58: pp. 241-287.

Howard, K.A., 2002, Geologic Map of the Sheep Hole Mountains, 30’x60’, San Bernardino and Riverside Counties, California, for USGS.

Kohler-Antablin, S., 1994, Mineral Land Classification of the Eastern Half of Riverside County, California, California Department of Conservation, Division of Mines and Geology, Open File Report 94-11.

Lefebure, D.V. (1995): Iron Oxide Breccias and Veins P-Cu-Au-Ag-U, in Selected British Columbia Mineral Deposit Profiles, Volume 1 - Metallics and Coal, Lefebure, D.V. and Ray, G.E., Editors, British Columbia Ministry of Energy of Employment and Investment, Open File 1995-20, pages 33-36.

Netolicky, S.W., 1982, Dale Mining Prospects, Township 2 South, Range 12 East, Riverside County, California.

Powell, R.E., 2002, Geologic Map and Digital Database of the San Bernardino Wash, USGS Open File 02-498, Version 1.0.

Smit, W., 1982, Preliminary Report and Status, Mission Mine, Dale Mining District, Riverside County, California.

Cox, J.W., 1991, USMX Memorandum to D. Lance re: Dale District (Mission Mine), San Bernardino and Riverside Counties, California.

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51

GLOSSARY Conversion Factors To Convert From To Multiply By Feet Meters 0.305 Meters Feet 3.281 Miles Kilometers ("km") 1.609 Kilometers Miles 0.6214 Acres Hectares ("ha") 0.405 Hectares Acres 2.471 Grams Ounces (Troy) 0.03215 Grams/Tonne Ounces (Troy)/Short Ton 0.02917 Ounces/Ton (opt) Grams/Tonne (g/t) 34.2857 Tonnes (metric) Pounds 2,205 Tonnes (metric) Short Tons 1.1023

Mineral Elements Au Gold Ce Cerium La Lanthanum Ag Silver Co Cobalt P Phosphorus Cu Copper Ga Gallium Se Selenium Ba Barium Ge Germanium U Uranium Alteration: Any change in the mineralogical composition of a rock that is brought

about by physical or chemical means.

Anomaly: A geochemical or geophysical character which deviates from regularity.

Argillic: Pertaining to clay or clay minerals. Disseminated precious metal deposits may exhibit “argillic” alteration characterized by the formation of the clay minerals kaolinite and montmorillonite. Epithermal precious metal deposits may exhibit “advanced argillic” alteration characterized by the clays dickite, kaolinite and pyrophyllite.

Breccia: A rock composed of highly angular course fragments.

Clastic: Consisting of fragments moved from their place of origin.

Conjugate Fractures/Veins: Parallel structures which may have opposite dips.

Cratonic: Pertaining to the relatively immobile part of the earth, the generally large central portion of a continent.

Detachment: Independent styles of deformation in rocks associated with folding and over-thrusting.

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52

Epigenetic: A mineral deposit formed later than the enclosing rocks. In ore petrology, applied to mineral deposits of later origin than the enclosing rocks or to the formation of secondary minerals by alteration.

Epithermal Deposit: Formed at shallow depths by low-temperature hydrothermal solutions.

Epizonal: Metamorphism created by low to moderate temperatures and pressures.

Felsic: Composed of light-colored minerals such as feldspar and quartz.

Ga: Billion years.

Gangue: Assessory minerals associated with ore in a vein.

Hornfels: A fine-grained non-schistose rock resulting from contact metamorphism.

Hydrothermal: An adjective applied to heated or hot aqueous-rich solutions, to the processes in which they are concerned, and to the rocks, ore deposits and alteration products produced by them.

Hypabyssal: Intrusions which have formed under intermediate temperature and pressure conditions between deep, plutonic, and near surface extrusive.

Ma: Million years.

Mafic: A general term for “dark” rock forming minerals.

Magmatic: Derived from naturally occurring mobile rock material (magma).

Mesothermal: A hydrothermal mineral deposit formed at considerable depth and in the temperature range of 200 to 300 degrees C.

Metamorphic: A process whereby rock is changed in situ by changes to pressure, temperature, and the chemical environment.

Metasomatism: Process whereby rocks are altered when volatiles exchange ions with them and a new mineral may grow inside the body of an old mineral.

Middlings: Particles incompletely liberated into concentrate or gangue.

Normal Fault: A fault in which the hanging wall is lowered relative to the foot wall.

Orogeny: Mountain building, particularly by folding and thrusting.

Orthogneiss: gneissic (foliated metamorphic) rock derived from an igneous rock.

Paragneiss: A gneissic (foliated metamorphic) rock derived from a sediment.

Pluton: Igneous rock formed beneath the surface by consolidation from magma.

Porphyritic: A rock texture where large crystals are set in a finer ground mass.

Pyroclastic: Volcanic materials explosively or aerially ejected from a volcanic vent.

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Reverse/Thrust Fault: A fault in which the hanging wall is raised relative to the foot wall.

Right-lateral Fault: A strike-slip fault in which relative movement is to the right.

Selvage: A thin layer of material.

Sericitic Alteration: Forming sericite from the decomposition of feldspars.

Silicification: The introduction of, or replacement by, silica.

Skarn: Derived from limestone and dolomite by the addition of silica, iron, magnesium, and aluminum to form a suite of lime-bearing silicate minerals.

Stockwork: A rock mass interpenetrated by small veins.

Strike-slip Fault: A fault where displacement is in the strike direction of the fault.

Subduction: Descent of one tectonic unit under another.

Tails: Sectional residue, e.g., table tailings, which is the residue from shaking screens and tables

Terrane: The area or surface over which a rock or group of rocks is prevalent.

Transverse Fault: A fault with a strike which cuts across the general structure.

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54

Edward Harrington, B.Sc., P.Geo. 3476 Dartmoor Place, Vancouver, BC, V5S 4G2

Tel: (604) 437-9538 Email: [email protected]

CERTIFICATE OF AUTHOR I, Edward D. Harrington, do hereby certify that:

1. I graduated with a B.Sc. degree in Geology from Acadia University, Wolfville,

Nova Scotia in 1971.

2. I am a Member in good standing with the Association of Professional

Engineers and Geoscientists of British Columbia, License #23328.

3. I have pursued my career as a geologist for over twenty years in Canada, the

western United States, the Sultanate of Oman, and Mexico.

4. I have read the definition of “qualified person” set out in National Instrument

43-101 (“NI 43-101”) and certify that by reason of my education, affiliation with

a professional association as defined in NI 43-101, and past relevant work

experience, I fulfill the requirements to be a “qualified person” for the purposes

of NI 43-101.

5. I am responsible for the preparation of the summary report titled “Summary

Report on the Mission Property Dale Mining District, Riverside and San

Bernardino Counties, California, USA,” and dated 1 January 2007 (the

“Summary Report”). I inspected the Property on December 2nd and 3rd, 2006. I

have read National Instrument 43-101 and Form 43-101F1, and the Summary

Report has been prepared in compliance with that instrument and form.

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55

6. I am independent of the issuer applying all of the tests in section 1.4 of

National Instrument 43-101 and I have not had prior involvement with the

Property that is the subject of the Summary Report.

7. I am not aware of any material fact or material change with respect to the

subject matter of the Summary Report that is not reflected in the Summary

Report, the omission to disclose which makes the Summary Report

misleading. This report is based on geological assessment reports, raw assay

data, personal interviews, and published and unpublished literature

researched by me and/or in the Reliance Geological Services library and

records, and I have visited the subject property personally.

8. I consent to the use of this Summary Report only in its entirety for filing with

any stock exchange or other regulatory authority and any publication, including

electronic publication, in the public company files on their websites accessible

by the public.

Dated this 1st day of January 2007

Edward D. Harrington, B.Sc., P.Geo.

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APPENDIX A

Claim Information

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Claim Name CAMC# Claimant

Location Date

County Sec. Twn.

Range

MISSION MINE 113882 TKM 1982 Riverside 14 2S 12E WARD 1 113883 TKM 1982 Riverside 14 2S 12E WARD 2 113884 TKM 1982 Riverside 14 2S 12E MISSION MINE APEX (WARD 3)

113885 TKM 1982 Riverside 14 2S 12E

WARD 4 113886 TKM 1982 Riverside 14 2S 12E WARD 5 113887 TKM 1982 Riverside 14 2S 12E WARD A 113888 TKM 1982 Riverside 14 2S 12E WARD B 113889 TKM 1982 Riverside 14 2S 12E WARD C 113890 TKM 1982 Riverside 14 2S 12E STAR 9 (WARD 9)

113891 TKM 1982 Riverside 14 2S 12E

STAR 10 (WARD 10)

113892 TKM 1982 Riverside 14 2S 12E

NEW DUPLEX 113893 TKM 1982 Riverside 14 2S 12E NEW DUPLEX 1 113894 TKM 1982 Riverside 14 2S 12E NEW DUPLEX 2 113895 TKM 1982 Riverside 14 2S 12E STAR 1 116957 TKM 1982 Riverside 14 2S 12E STAR 2 116958 TKM 1982 Riverside 14 2S 12E STAR 3 116959 TKM 1982 Riverside 14 2S 12E STAR 4 (AMENDED LOCATION)

116960 TKM 1982 Riverside 14 2S 12E

WARD 6 116961 TKM 1982 Riverside 14 2S 12E WARD 7 116962 TKM 1982 Riverside 14 2S 12E WARD 8 116963 TKM 1982 Riverside 14 2S 12E NEW DAWN 2 24370 TKM 1958 Riverside 14 2S 12E PINTO 1 271608 TKM 1997 Riverside 14 2S 12E PINTO 2 271609 TKM 1997 Riverside 14 2S 12E PINTO 3 271610 TKM 1997 Riverside 14 2S 12E PINTO 4 271620 TKM 1997 Riverside 14 2S 12E MM-1 0285479 BLRV 3/1/2006 Riverside 14, 15 2S 12E MM-2 0285480 BLRV 3/1/2006 Riverside 14 2S 12E MM-3 0285481 BLRV 3/1/2006 Riverside 14 2S 12E MM-4 0285482 BLRV 3/1/2006 Riverside 14, 15 2S 12E MM-5 0285483 BLRV 3/1/2006 Riverside 14, 15 2S 12E MM-6 0285484 BLRV 3/1/2006 Riverside 15 2S 12E MM-7 0285485 BLRV 3/1/2006 Riverside 15 2S 12E MM-8 0285486 BLRV 3/1/2006 Riverside 15 2S 12E MM-9 0285487 BLRV 3/1/2006 Riverside 15 2S 12E

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ii

Claim Name CAMC# Claimant

Location Date

County Sec. Twn.

Range

MM-10 0285488 BLRV 3/1/2006 Riverside 15 2S 12E MM-11 0285489 BLRV 3/1/2006 Riverside 14, 15 2S 12E MM-12 0285490 BLRV 3/1/2006 Riverside 10, 11

14, 15 2S 12E

MM-13 0285491 BLRV 3/1/2006 Riverside 14, 15 2S 12E MM-14 0285492 BLRV 3/1/2006 Riverside 10, 15 2S 12E MM-15 0285493 BLRV 3/1/2006 Riverside 15 2S 12E MM-16 0285494 BLRV 3/1/2006 Riverside 10, 15 2S 12E MM-17 0285495 BLRV 3/1/2006 Riverside 10, 11 2S 12E MM-18 0285496 BLRV 3/1/2006 Riverside 10, 11, 14 2S 12E MM-19 0285497 BLRV 3/1/2006 Riverside 10, 11 2S 12E MM-20 0285498 BLRV 3/1/2006 Riverside 11, 14 2S 12E MM-21 0285499 BLRV 2/28/2006 Riverside 11, 14 2S 12E MM-22 0285500 BLRV 2/28/2006 Riverside 11 2S 12E MM-23 0285501 BLRV 2/28/2006 Riverside 11 2S 12E MM-24 0285502 BLRV 2/28/2006 Riverside 11 2S 12E MM-25 0285503 BLRV 2/28/2006 Riverside 11, 12 2S 12E MM-26 0285504 BLRV 2/28/2006 Riverside 11 2S 12E MM-27 0285505 BLRV 4/1/2006 Riverside 11 2S 12E MM-28 0285506 BLRV 2/28/2006 Riverside 11 2S 12E MM-29 0228807 BLRV 4/26/2006 Riverside 11 2S 12E MM-30 0285508 BLRV 4/26/2006 Riverside 11, 12 2S 12E MM-31 0285509 BLRV 4/26/2006 Riverside 11, 12 2S 12E MM-32 0285510 BLRV 4/26/2006 Riverside 11, 14 2S 12E MM-33 0285511 BLRV 4/26/2006 Riverside 11 2S 12E MM-34 0285512 BLRV 4/26/2006 Riverside 11 2S 12E MM-35 0285513 BLRV 4/26/2006 Riverside 11, 14 2S 12E MM-100 0285514 BLRV 4/21/2006 Riverside 15 2S 12E MM-101 0285515 BLRV 4/21/2006 Riverside 15 2S 12E MMC-1 0285477 BLRV 4/28/2006 San

Bernardino

NE 1/4 22 NW 1/4 23

MMC-2 0285478 BLRV 4/28/2006 San Bernardin

o

NE 1/4 22 NW 1/4 23 SE 1/4 15 SW 1/4

14

LA-1 0285516 BLRV 3/22/2006 Riverside 1 2S 12E LA-2 0285517 BLRV 3/22/2006 Riverside 1 2S 12E

LA-3 0285518 BLRV 3/22/2006 Riverside

1 1S

2S 12E LA-4 0285519 BLRV 3/22/2006 Riverside 1 2S 12E LA-5 0285520 BLRV 3/22/2006 Riverside 36

1 1S

2S 12E

LA-6 0285521 BLRV 3/22/2006 Riverside 1 2S 12E

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iii

Claim Name CAMC# Claimant

Location Date

County Sec. Twn.

Range

LA-7 0285522 BLRV 3/22/2006 Riverside 1 2S 12E LA-8 0285523 BLRV 3/22/2006 Riverside 1 2S 12E LA-9 0285524 BLRV 3/22/2006 Riverside 1 2S 12E LA-10 0285525 BLRV 3/22/2006 Riverside 1 2S 12E LA-11 0285526 BLRV 3/22/2006 Riverside 1 2S 12E LA-12 0285527 BLRV 3/22/2006 Riverside 1 2S 12E LA-13 0285528 BLRV 3/22/2006 Riverside 1, 12 2S 12E LA-14 0285529 BLRV 3/23/2006 Riverside 1, 12 2S 12E LA-15 0285530 BLRV 4/26/2006 Riverside 1 2S 12E LA-16 0285531 BLRV 4/30/2006 Riverside 1 2S 12E LA-17 0285532 BLRV 4/30/2006 Riverside 1 2S 12E LA-19 0285533 BLRV 3/23/2006 Riverside 1 2S 12E LA-20 0285534 BLRV 3/23/2006 Riverside 1 2S 12E LA-21 0285535 BLRV 3/22/2006 Riverside 1 2S 12E LA-22 0285536 BLRV 3/22/2006 Riverside 1 2S 12E LA-23 0285537 BLRV 3/23/2006 Riverside 1 2S 12E LA-24 0285538 BLRV 3/22/2006 Riverside 1 2S 12E LA-25 0285539 BLRV 3/22/2006 Riverside 1 2S 12E LA-26 0285540 BLRV 3/22/2006 Riverside 1 2S 12E LA-27 0285541 BLRV 3/23/2006 San

Bernardino

36 2S 12E

LA-28 0285542 BLRV 3/23/2006 Riverside 36 1

1S 2S

12E

LA-29 0285543 BLRV 3/23/3006 San Bernardin

o

36 2S 12E

LA-30 0285544 BLRV 3/23/3006 San Bernardin

o

36 2S 12E

LA-31 0285545 BLRV 4/26/2006 Riverside 1, 12 2S 12E LA-32 0285546 BLRV 3/23/3006 San

Bernardino

36 2S 12E

LA-33 0285547 BLRV 3/23/2006 Riverside 36 2S 12E

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APPENDIX B

Asamera Underground Sampling

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Gold Sample Width Level Location From Main

Shaft opt g/t inches feet meters

00+380N 0.70 24.00 21.00 1.75 0.53 00+350N 0.60 20.57 20.00 1.67 0.51 00+320N 0.90 30.86 18.00 1.50 0.46 00+280N 1.10 37.71 18.00 1.50 0.46 00+265N 0.60 20.57 18.00 1.50 0.46 00+235N 0.35 12.00 20.00 1.67 0.51 00+205N 0.71 24.34 18.00 1.50 0.46 00+180N 2.20 75.43 18.00 1.50 0.46 00+160N 1.30 44.57 18.00 1.50 0.46 00+130N 1.10 37.71 16.00 1.33 0.41 00+110N 0.92 31.54 20.00 1.67 0.51 00+080N 0.90 30.86 19.00 1.58 0.48 00+050N 0.30 10.29 12.00 1.00 0.30 00+025N 0.50 17.14 20.00 1.67 0.51

125

00+005N 0.60 20.57 15.00 1.25 0.38 00+340N 0.75 25.71 11.00 0.92 0.28 00+330N 0.90 30.86 10.00 0.83 0.25 00+320N 0.30 10.29 10.00 0.83 0.25 00+310N 0.80 27.43 10.00 0.83 0.25 00+280N 1.33 45.60 12.00 1.00 0.30 00+265N 0.30 10.29 11.00 0.92 0.28 00+250N 0.98 33.60 15.00 1.25 0.38 00+225N 0.53 18.17 18.00 1.50 0.46 00+200N 0.35 12.00 18.00 1.50 0.46 00+175N 0.52 17.83 16.00 1.33 0.41 00+145N 0.40 13.71 12.00 1.00 0.30 00+120N 1.00 34.29 22.00 1.83 0.56 00+090N 0.00 0.00 36.00 3.00 0.91 00+075N 0.00 0.00 24.00 2.00 0.61 00+065N 0.10 3.43 16.00 1.33 0.41 00+035N 0.70 24.00 12.00 1.00 0.30 00+010N 2.70 92.57 12.00 1.00 0.30 00+010S 2.97 101.83 17.00 1.42 0.43

319

00+030S 0.65 22.29 18.00 1.50 0.46 00+320N 0.93 31.89 6.00 0.50 0.15 00+310N 0.43 14.74 12.00 1.00 0.30 00+290N 0.95 32.57 11.00 0.92 0.28 00+260N 0.65 22.29 12.00 1.00 0.30 00+240N 0.73 25.03 12.00 1.00 0.30 00+225N 0.60 20.57 29.00 2.42 0.74 00+210N 0.55 18.86 17.00 1.42 0.43 00+200N 0.45 15.43 24.00 2.00 0.61 00+190N 0.40 13.71 12.00 1.00 0.30 00+180N 0.35 12.00 14.00 1.17 0.36 00+160N 0.10 3.43 12.00 1.00 0.30 00+130N 0.63 21.60 10.00 0.83 0.25 00+105N 0.61 20.91 12.00 1.00 0.30

400

00+075N 0.11 3.77 7.00 0.58 0.18

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2

Gold Sample Width Level Location From Main

Shaft opt g/t inches feet meters

00+050N 0.25 8.57 17.00 1.42 0.43 00+035N 0.80 27.43 23.00 1.92 0.58 00+020N 0.35 12.00 31.00 2.58 0.79 00+005N 0.31 10.63 22.00 1.83 0.56 00+005S 0.48 16.46 22.00 1.83 0.56 00+020S 0.33 11.31 12.00 1.00 0.30 00+060S 1.67 57.26 16.00 1.33 0.41 00+080S 0.30 10.29 20.00 1.67 0.51 00+335N 1.83 62.74 19.00 1.58 0.48 00+310N 1.60 54.86 35.00 2.92 0.89 00+285N 1.40 48.00 15.00 1.25 0.38 00+275N 1.30 44.57 21.00 1.75 0.53 00+250N 1.25 42.86 12.00 1.00 0.30 00+220N 1.45 49.71 12.00 1.00 0.30 00+190N 2.95 101.14 21.00 1.75 0.53 00+175N 2.75 94.29 18.00 1.50 0.46 00+165N 3.10 106.29 16.00 1.33 0.41 00+150N 2.30 78.86 17.00 1.42 0.43 00+135N 2.40 82.29 15.00 1.25 0.38 00+110N 0.90 30.86 15.00 1.25 0.38 00+080N 1.20 41.14 11.00 0.92 0.28 00+055N 0.95 32.57 9.00 0.75 0.23 00+035N 1.10 37.71 14.00 1.17 0.36 00+025N 1.70 58.29 15.00 1.25 0.38 00+005N 2.80 96.00 25.00 2.08 0.64

600

00+020S 3.50 120.00 36.00 3.00 0.91

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APPENDIX C

USMX Rock Sampling

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USMX Rock Sampling 1991

Assay Results Location UTM gold silver

Sample Type

Easting Northing opt g/t g/t

Description

D-001 chip 620,988

3,761,687

0.290 9.943 4.5 limonite-stained quartz 1.4" wide, sheared, strike N23OW, vertical

D-002 chip 620,965

3,761,752

<0.005

0.4 2.0 ' wide vein in wash. Massive limonite+gossan+sulfide. Strike N90oW

D-003 chip 620,946

3,761,775

0.141 4.834 1.4 1" of quartz in sheared qtz and wall rock, N10OW/85OE, 5' wide shear

D-004 chip 620,881

3,761,931

<0.005

<0.171 0.1 1' zone, chlorite with white quartz, sheared footwall. N22oW/vertical

D-005 chip 620,832

3,762,045

<0.005

<0.171 0.4 2' limonite+magnetite gossan vein-flt, moderate quartz, chlorite flooding N10oW/vertical

D-006 chip 620,759

3,762,125

<0.005

<0.171 0.1 1' chip mag-lim gossan with quartz flooding. N17oW/vertical

D-007 chip 620,615

3,762,285

0.500 17.143 1.4 vein material from dump

D-008 chip 620,535

3,762,354

0.417 14.297 1.9 vein material from dump

D-009 chip 621,479

3,762,156

0.242 8.297 1.4 Duplex Mine. 2' sheared quartz + granodiorte N7OE/78OSW

D-010 chip 621,506

3,762,030

1.796 61.577 11.2 1' sheared quartz N20OW/72OSW

D-011 chip 621,502

3,761,988

1.073 36.789 311.0 dump Duplex Mine. Qtz with gossan altered pyrite and copper oxide

D-012 chip 617,898

3,770,336

0.060 2.057 5.5 Supply Mine. Vein N5oW with 3' crushed rounded qtz, minor fresh py.

D-013 chip 618,035

3,770,240

0.099 3.394 4.4 Supply Mine. Vein 2.5-5' wide, goethite quartz, shear.

D-014 chip 618,207

3,770,458

0.191 6.549 2.1 Vein dump.

D-015 chip 618,671

3,769,254

0.298 10.217 10.3 2' shear with qtz vein, gossan, N12O/vertical

D-016 chip 619,010

3,769,867

0.822 28.183 8.8 1' wide shear, goethite with minor qtz, N20OE/80-85OW

D-017 chip 619,205

3,770,157

0.005 0.171 1.0 1' wide shear, moderart competent quartz. N32oE/73oE

D-018 chip 619,193

3,770,107

0.568 19.474 2.5 multi-eposode qtz vein with goethite

D-019 grab n/a n/a <0.005

<0.171 0.1 Shear zone, no quartz

D-020 grab n/a n/a 0.181 6.206 37.7 Quartz with copper oxide D-021 chip n/a n/a <0.00

5 <0.171 0.1 magnetite+hematite rock

D-022 chip n/a n/a 0.015 0.514 42.2 Dump. Quartz with limonite and minor py. N10oE/82oW

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2

Assay Results Location UTM gold silver

Sample Type

Easting Northing opt g/t g/t

Description

D-023 chip 619,628

3,770,976

0.289 9.909 880.0 massive qtz with galena and copper oxide from ore pile

D-024 chip 619,628

3,770,976

0.191 6.549 96.0 massive qtz with green-brown gossan and copper oxide from ore pile

D-025 chip 619,628

3,770,976

0.470 16.114 188.0 quartz and glassy goethite at ore bin

D-026 chip 619,742

3,770,949

0.009 0.309 2.3 Dump. Sugary quartz with minor limonite

D-027 chip 619,810

3,771,159

1.794 61.509 30.1 qtz, copper oxide, goethite, limonite in altered wallrock, thin branching qtz veins, N12OE/85OW

D-028 chip 619,810

3,771,159

0.023 0.789 0.4 3' shear in hanging wall, trace CuOx

D-029 chip 620,359

3,762,670

0.012 0.411 0.3 1' wide shear 360o/85oE, with 0.5" quartz vein with limonite

D-030 chip 620,367

3,762,719

<0.005

<0.171 0.3 n/a

D-031 chip 620,367

3,762,788

<0.005

<0.171 0.1 n/a

D-032 chip 620,500

3,762,818

0.047 1.611 0.8 n/a

D-033 chip 620,500

3,762,818

0.079 2.709 0.5 n/a

D-034 chip 620,508

3,762,757

<0.005

<0.171 0.6 n/a

D-035 chip 620,546

3,762,677

0.295 10.114 1.3 n/a

D-036 chip 620,573

3,762,605

0.007 0.240 0.2 n/a

D-037 chip n/a n/a 1.379 47.280 29.1 n/a D-038 chip n/a n/a 0.462 15.840 5.4 n/a D-039 chip n/a n/a 0.617 21.154 28.5 n/a D-040 chip n/a n/a 0.075 2.571 1620.

0 n/a

D-041 chip n/a n/a 0.103 3.531 7.3 n/a D-042 chip n/a n/a 0.162 5.554 7.7 n/a D-043 chip n/a n/a 0.139 4.766 3.3 n/a D-044 chip n/a n/a 0.066 2.263 1.2 n/a D-045 chip n/a n/a 0.707 24.240 4.5 n/a D-046 chip n/a n/a 0.080 2.743 0.7 n/a D-047 chip n/a n/a 6.162 211.26

8 19.3 n/a

D-048 chip n/a n/a 0.232 7.954 1.2 n/a D-049 chip n/a n/a 0.436 14.949 2.2 n/a

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3

Assay Results Location UTM gold silver

Sample Type

Easting Northing opt g/t g/t

Description

D-050 chip n/a n/a 0.060 2.057 0.5 n/a D-051 chip n/a n/a 0.158 5.417 0.8 n/a D-052 chip n/a n/a 0.045 1.543 0.1 n/a D-053 chip n/a n/a 0.028 0.960 0.1 n/a D-054 chip n/a n/a 0.638 21.874 2.9 n/a D-055 chip n/a n/a 0.425 14.571 3.9 n/a D-056 chip n/a n/a 0.030 1.029 1.0 n/a D-057 chip 621,00

7 3,761,62

6 0.013 0.446 0.1 n/a

D-058 chip 620,996

3,761,653

0.385 13.200 1.7 n/a

D-059 chip 620,988

3,761,672

0.124 4.251 0.6 n/a

D-060 chip 620,797

3,761,595

<0.005

<0.171 <0.1 n/a

D-061 chip n/a n/a 0.201 6.891 4.6 n/a D-062 chip n/a n/a 0.518 17.760 15.1 n/a D-063 chip n/a n/a 0.074 2.537 3.1 n/a D-064 chip n/a n/a 0.019 0.651 0.2 n/a D-065 chip n/a n/a 0.061 2.091 10.9 n/a D-066 chip 620,48

9 3,761,81

3 <0.00

5 <0.171 0.4 n/a

D-067 chip n/a n/a <0.005

<0.171 0.4 n/a

D-068 chip n/a n/a 1.531 52.491 40.1 n/a

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APPENDIX D Copenhaver Underground Rock Sampling

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Sample Width Gold Assay Level Location from Main

Shaft

Sample #. in Series

inches feet

meters opt g/t

Description

00+000 1 18 1.5 0.5 0.08 15.566 west footwall, parallel vein 00+061S 2 32 2.7 0.8 0.067 2.297 vein fault, stope face 00+061S 3 24 2.0 0.6 - - hanging wall 00+108S 4 18 1.5 0.5 0.454 15.566 vein fault 00+067N 5 6 0.5 0.2 0.018 0.617 00+268N 6 12 1.0 0.3 0.004 0.137 footwall parallel vein 00+330N 7 18 1.5 0.5 - - vein fault in back 00+340N 8 22 1.8 0.6 0.351 12.034 vein fault in back

125

00+480N 9 26 2.2 0.7 0.034 1.166 vein fault in back 00+103S 1 24 2.0 0.6 0.885 30.343 vein fault in hanging wall 00+103S 2 30 2.5 0.8 0.025 0.857 footwall 00+108S 3 40 3.3 1.0 0.527 18.069 vein fault in back 00+113S 4 30 2.5 0.8 0.556 19.063 vein fault in back 00+125S 5 30 2.5 0.8 0.362 12.411 vein fault in face 00+264N 6 18 1.5 0.5 0.626 21.463 vein fault in stope back, 12 feet above level 00+278N 7 18 1.5 0.5 0.299 10.251 vein fault in stope face 00+278N 8 36 3.0 0.9 0.032 1.097 footwall stope face 00+300N 9 41 3.4 1.0 0.081 2.777 vein fault in back 00+300N 10 12 1.0 0.3 2.552 87.497 footwall with cross-cutting fractures 00+305N 11 48 4.0 1.2 0.301 10.320 vein fault in back 00+310N 12 36 3.0 0.9 0.190 6.514 vein fault in back 00+310N 13 30 2.5 0.8 0.390 13.371 vein fault in stope face, 25 ft above level 00+315N 14 36 3.0 0.9 0.239 8.194 vein fault in back 00+320N 15 22 1.8 0.6 0.968 33.189 vein fault in back 00+324N 16 20 1.7 0.5 3.098 106.217 vein fault in back 00+325N 17 24 2.0 0.6 0.580 19.886 vein fault in face, 10 feet below level 00+320N 18 20 1.7 0.5 0.724 24.823 vein fault in face, 240 feet below level

319

00+380N 19 14 1.2 0.4 0.132 4.526 vein fault in face 00+60S 1 20 1.7 0.5 0.369 12.651 vein fault in back 00+255N 2 24 2.0 0.6 0.011 0.377 vein fault stope face (15 ft above level) 00+265N 3 30 2.5 0.8 0.463 15.874 vein fault in stope face, 25 feet above level

400

00+341N 4 12 1.0 0.3 0.476 16.320 vein fault in back

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2

Sample Width Gold Assay Level Location from Main

Shaft

Sample #. in Series

inches feet

meters opt g/t

Description

00+341N 5 18 1.5 0.5 0.004 0.137 footwall 00+026N 1 30 2.5 0.8 0.028 0.960 vein fault in back 00+020N 2 18 1.5 0.5 0.009 0.309 footwall breccia 00+46N 3 30 2.5 0.8 0.206 7.063 vein fault in back 00+211N 4 36 3.0 0.9 0.129 4.423 vein fault in face, 25 feet below level 00+211N 5 40 3.3 1.0 0.504 17.280 vein fault in floor, 30 feet below level 00+216N 6 26 2.2 0.7 0.070 2.400 vein fault, 15 feet below level 00+220N 7 36 3.0 0.9 0.070 2.400 vein fault, 10 feet below level 00+250N 8 26 2.2 0.7 0.710 24.343 vein fault in back, 4 feet below level 00+255N 9 26 2.2 0.7 1.058 36.274 vein fault in back, 5 feet below level 00+260N 10 30 2.5 0.8 4.449 152.537 vein fault in back, 6 feet below level 00+265N 11 26 2.2 0.7 0.179 6.137 vein fault in face, 10 feet below level

600

00+353N 12 18 1.5 0.5 0.106 3.634 west wallrock fracture

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APPENDIX E

BLRV Rock Sampling

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i

Location Sample Northing Easting

Type Description Gold g/t

STMM 20806-1 3,761,834 620,921 CHIP 2' QTZ-MAG-PY VN 200' N OF MISSION MAN SHAFT 0.02 STMM 20806-2 3,761,919 620,914 CHIP 2" QTZ VN IN SHEAR ALONG MISSION TREND 500' N OF MAN SHAFT 13.90 STMM 20806-3 3,761,577 620,687 GRAB QTZ VN IN SHEAR RUNNING 70/80S 500' SE OF SUNSET 0.03 ST022806-1 3,763,349 621,769 GRAB GOLDEN ROD MINE-010/80W 1-3' VN-SHEAR IN HRNBL QTZ MONZ 0.02

ST022806-2 3,763,993 621,500 GRAB MOOSE MINE DUMP GRAB-SELECT QTZ-MAG FROM 340/75W SHEAR 0.00

ST030106-1 3,762,907 620,083 CHIP SHAFT ON 360/85W FEOX IN CHLR SHEAR ON MM 11-12 0.01 ST030106-2 3,762,514 619,440 GRAB SHAFT ON 350/85E SHEAR W/ QTZ-MAG-TR CU 0.01 ST030106-3 3,762,255 619,616 CHIP 5-7 SHEAR @ 065/70NW W/ 4' QTZ-MAG VN ON 40' SHAFT 0.00 ST030106-4 3,761,584 620,140 CHIP GOLDEN EGG-4' SHEAR W/ ST MAG-QTZ-CAL VNS 0.02 ST042106-1 3,762,890 618,464 GRAB GOLD CROWN-PILE FROM TRENCH OF SILICIF, FEOX 4' SHEAR 0.11 ST042206-1 3,770,360 618,180 SELECT SUPPLY MINE DUMP-FEOX-QTZ VEIN 19.55 ST042306-1 3,762,668 620,364 CHANNEL FOUR SQUARE-12' SHEAR W/ WK SILICA ON MARGINS 0.05 ST042306-2 3,762,709 620,521 GRAB E FOURSQUARE-QTZ-FEOX (3') IN 8' SHEAR 3.44 ST042306-3 3,762,328 620,662 COMPOSITE N SUNSET- WASTE PILES FROM RECENT RATHOLING 77.90 ST042306-4 3,762,408 621,241 COMPOSITE 080/85S FELSIC DIKE 0.13 ST042306-5 3,762,122 621,489 GRAB DUPLEX MINE-S SHAFT 4' QTZ-FEOX VEIN 5.60 ST042506-1 3,762,484 618,598 COMPOSITE GOLD CROWN TAILING 0.69 ST042506-2 3,762,282 618,473 GRAB SOTH MM-100, 2' QTZ-MAG VN IN PROSPECT 7.83 ST042506-3 3,762,281 618,447 GRAB STATE SEC, 100' ALONG 1.6-2.5' VEIN 3.53 ST042506-4 3,762,713 618,531 CHIP GOLD CROWN CUT BETWEEN SHAFTS, 6' SHEAR 2.20 ST042506-5 3,762,735 618,623 GRAB PROSPECT-SOUTH GOLD CROWN VEIN-2' QTZ-CALC-FEOX VEIN 26.00 ST042506-6 3,762,814 619,574 GRAB GOLD CROWN MILL FEED-QTZ STKWK TUFF BRX 11.05 ST042506-7 3,762,750 619,363 GRAB N EXT SAN BERDU-10" QTZ-FEOX VEIN 2.22 ST042606-1 3,762,585 621,688 COMPOSITE FELSIC DIKE-APLITE CUT 0.01 ST042606-2 3,763,063 621,313 GRAB MOOSE-100' SHAFT O 2-4' QTZ-FEOX SHEAR 18.75 ST042606-3 3,763,188 621,443 GRAB 5' SHATTER-SHEAR IN QMONZ, GOETH ON FRACT 10.05 ST042706-1 3,763,784 621,583 GRAB N EXT GOLDENROD-4' SHEAR W/ MOD FEOX-QTZ 0.04 ST042706-2 3,764,220 621,411 GRAB N EXT MOOSE- MOD ARGILL SHEAR W/ WK QTZ 0.03 ST042806-1 3,771,225 619,853 SELECT CARLYLE-MAIN DUMP-QTZ/FEOX VN 41.20 ST042806-2 3,764,367 622,286 GRAB CARLYLE-EAST/HW QTZ/FEOX VN STOPE ZONE 1.93

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ii

Location Sample Northing Easting

Type Description Gold g/t

ST042806-3 3,764,515 622,625 CHIP CARLYLE-WEST/FW STOPE 15' SHEAR,300' S OF PORTAL 0.88 ST042806-4 3,765,010 622,583 CHIP CARLYLE-550' S OF PORTAL, 2.5' QTZ-FEOX FW BRX 5.76 ST042906-1 3,764,986 622,435 GRAB PROSPECT WITH VUGGY QTZ VEIN 3.20 ST042906-2 3,765,429 622,521 GRAB ROSE OF PERU-HG PILE BY SHAFT OF >FEOX-QTZ 3.05 ST042906-3 3,765,138 622,370 CHIP ROSE OF PERU-2' VEIN IN 4' SHEAR ON FACE OF 50' (10X10')ADIT 2.23 ST042906-4 3,765,307 622,228 SELECT ROSE OF PERU-HG FROM DUMP/CUT, ST FEOX 12.25 ST042906-5 3,766,127 622,297 CHIP GOLD STANDARD-400' WORKINGS,HW SHEAR, 2.5' FEOX ZONE 4.01 ST042906-6 3,766,510 621,626 GRAB PROSPECT N OF LOS ANGELES-ST QTZ-FEOX 11.35 ST042906-7 3,766,212 621,958 CHIP LOS ANGELES- +5' FEOX SHEAR AT DECLINE COLLAR 7.70 ST043006-1 3,761,473 620,843 COMPOSITE MISSION TAILINGS FROM NEW MILL-CHLORITIC DIORITE 1.72 ST043006-2 3,766,724 622,048 CHIP BROOKLYN-2' HW VEIN, 180' SE OF PORTAL 8.76 ST043006-3 3,765,637 621,420 GRAB LIL PRINCESS-DUMP GRAB OF FEOX QTZ VEIN FROM 4.5' SHEAR 0.18 ST043006-4 3,761,460 620,830 GRAB MISSION MINE DUMP GRAB OF QTZ-MAG-FEOX-CALC VN 34.40

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BULLION RIVER GOLD CORP

Mission Property

Regional Location

Scale: As shown Drawn by: EH

Date: Dec 2006 QP: E. Harrington Figure: 1

E. Harrington, B.Sc., P.Geo.

T25N R47E

Mission PropertySan Bernardino County

100 miles

100 kilometers0

0

N

Riverside County

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BULLION RIVER GOLD CORP

Mission Property

Northern Claims

Scale: As shown Drawn by: EH

Date: Dec 2006 QP: E. Harrington Figure: 2

E. Harrington, B.Sc., P.Geo.

T2S R12E

1 kilometer0

0.5 mile0

N

USGS New Dale Quadrangle 7.5’ SeriesContour interval 40 feet

R 1

2 E

R 1

3 E

T 2 S

6220

00 E

6200

00 E

3771000 N

3770000 N

3769000 N

Area of LA Claims3767000 N

3768000 N

6210

00 E

6230

00 E

Carlysle Claims

Figure 2 area

Figure 3 area

Figure 4 area

San Bernardino County

Riverside County

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BULLION RIVER GOLD CORP

Mission Property

Central Claims

Scale: As shown Drawn by: EH

Date: Dec 2006 QP: E. Harrington Figure: 3

E. Harrington, B.Sc., P.Geo.

T2S R12E

1 kilometer0

0.5 mile0

N

USGS New Dale Quadrangle 7.5’ SeriesContour interval 40 feet

Approximate northern boundary of Figure XX

R 1

2 E

R 1

3 E

T 2 S

6220

00 E

6230

00 E

3765000 N

3766000 N

3767000 N

San Bernardino County

Riverside County

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Patented claims notcontrolled by BRGC

N

Contour interval 40 feet62

0000

E

6210

00 E

3762000 N

3763000 N

3764000 N

Joshua Tree National Park

1 kilometer0

0.5 mile0

USGS San Bernardino Quadrangle 7.5’ SeriesContour interval 40 feet

6220

00 E

Joshua Tree National Park

BULLION RIVER GOLD CORP

Mission Property

Southern Claims

Scale: As shown Drawn by: EH

Date: Dec 2006 QP: E. Harrington Figure: 4

E. Harrington, B.Sc., P.Geo.

T2S R12E

USGS New Dale Quadrangle 7.5’ Series

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BULLION RIVER GOLD CORPMission Property

Mission Mine – Rock SamplingAsamera and USMX

Scale: As shown Drawn by: EH

Date: Dec 2006 QP: E. Harrington Figure: 5

E. Harrington, B.Sc., P.Geo.

T2S R12ENote: Asamera sampling data is taken from the 1991 USMX memorandum. No further details of the Asamera sampling were available to the writer.

Figure 5a

300 feet

100 meters0

0

Figure 5b

125 Level

490 Level

400 Level

600 Level

319 Level

Northwest Southeast

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BULLION RIVER GOLD CORP

Mission Property

Regional Geology - South

Scale: As shown Drawn by: EH

Date: Dec 2006 QP: E. Harrington Figure: 6

E. Harrington, B.Sc., P.Geo.

T2S R12E

QuaternaryLoose to slightly consolidated alluvial depositsQ

MioceneTb Basalt flowsTs Arkosic sandstone, siltstone, minor conglomerate

JurassicPorphyritic granitic plutonic rocks - may be foliatedJsbp

ProterozoicDolomite

Ppqw White to light-grey quartzitePpqp

Pld

Argillaceous rocks – schistose to unfoliated

Undifferentiated dikes

Quartz latite dikes

(Geology after R.E. Powell, USGS Open File 02-498

Version 1.0)

N

6200

00 E

2 kilometers0

1 mile0

6220

00 E

3760000 N

3762000 N

Mission Property Southern Boundary

Eagle Mountain Mine approximately 7 km east-southeast of map corner

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MAPS: Wenban Spring 7.5’ Quadrangle Dugout Spring 7.5’ Quadrangle

Lat: 40o 03' 59” N Long: 116o 38’ 43”W SUMMARY REPORT on the

WENBAN SPRING PROPERTY Cortez Mining District

Lander County, Nevada, USA

for

BULLION RIVER GOLD CORP Suite 200 - 3500 Lakeside Court

Reno, NV, 89509 Tel: 775-324-4881 Fax: 775-324-7893

by

Edward Harrington, B.Sc., P.Geo.

RELIANCE GEOLOGICAL SERVICES INC 3476 Dartmoor Place

Vancouver, BC, V5S 4G2 Tel: 604-437-9538 Fax: 604-437-9531

9 January 2007

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i

TABLE OF CONTENTS – Wenban Spring Summary Report SUMMARY ........................................................................................................................ iii

4.0 INTRODUCTION and TERMS of REFERENCE ................................................... 1

5.0 DISCLAIMER.......................................................................................................... 1

6.0 PROPERTY DESCRIPTION and LOCATION....................................................... 2

7.0 ACCESSIBILITY, CLIMATE, RESOURCES, INFRASTRUCTURE and PHYSIOGRAPHY................................................................................................... 3

8.0 HISTORY................................................................................................................ 8 8.1 Area History .................................................................................................. 8 8.2 Previous Work .............................................................................................. 9

9.0 GEOLOGICAL SETTING ..................................................................................... 13 9.1 Regional Geology ....................................................................................... 13 9.2 Property Geology........................................................................................ 17 9.2.1 Stratigraphy.................................................................................... 17 9.2.2 Structure......................................................................................... 19

10.0 DEPOSIT TYPES................................................................................................. 21 10.1 Carlin-typee Deposits ................................................................................. 21 10.1 Epithermal Vein-hosted Deposits ............................................................. 22

11.0 MINERALIZATION ............................................................................................... 24

12.0 EXPLORATION .................................................................................................... 24 12.1 Rock Chip Geochemical Sampling............................................................. 24 12.2 Geophysical Surveys.................................................................................. 25

13.0 DRILLING ............................................................................................................. 25

14.0 SAMPLING METHOD and APPROACH ............................................................. 27

15.0 SAMPLE PREPARATION, ANALYSIS and SECURITY ..................................... 27

16.0 DATA VERIFICATION.......................................................................................... 28

17.0 ADJACENT PROPERTIES .................................................................................. 28 17.1 Newmont - Midas Mine............................................................................... 29 17.2 Newmont - Mule Canyon............................................................................ 30 17.3 CJV Crescent Valley and Cortez Area....................................................... 32

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ii

17.4 CJV Toiyabe Property ................................................................................ 34

18.0 MINERAL PROCESSING and METALLURGICAL TESTING............................. 36

19.0 MINERAL RESOURCE and RESERVE ESTIMATES......................................... 36

20.0 OTHER RELAVANT DATA and INFORMATION ................................................ 36

21.0 INTERPRETATIONS and CONCLUSIONS......................................................... 37 21.1 Interpretations............................................................................................. 37 21.2 Conclusions ................................................................................................ 41

22.0 RECOMMENDATIONS........................................................................................ 42 22.1 Proposed Budget - Drillling Program.......................................................... 43

23.0 REFERENCES..................................................................................................... 44

GLOSSARY..................................................................................................................... 46

CERTIFICATE ................................................................................................................. 48

LIST OF FIGURES Figure 1 Regional Setting............................................................................................. 5 Figure 2 WS Claim Locations....................................................................................... 6 Figure 3 CS and GV Claim Locations.......................................................................... 7 Figure 4 Regional Compilation - Gravity .................................................................... 11 Figure 5 Regional Compilation - Magnetic................................................................. 12 Figure 6 Regional Geology ........................................................................................ 15 Figure 7 Regional Stratigraphy CJV Area.................................................................. 20 Figure 8 Compilation .................................................................................................. 26

LIST OF TABLES

Table 1 Legend - Regional Geology ......................................................................... 16 Table 2 Drilling Data.................................................................................................. 25

LIST OF APPENDICES APPENDIX A Claim Information APPENDIX B Drilling Summary APPENDIX C Rock Sampling

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iii

SUMMARY

At the request of Bullion River Gold Corp (the “Company” or “BLRV”), this Summary

Report has been prepared on the Wenban Spring Property (the “Property”), Cortez

Mining District, Lander County, Nevada, USA.

This Summary Report is based on geological reports, a compilation of published and

unpublished data, maps, reports made by cited persons, and field examinations of the

Property. The author is a “qualified person” within the meaning of National Instrument

43-101 of the Canadian Securities Administrators. The writer examined the geology and

infrastructure of the Property on July 24th and 27th and September 29th and 30th, 2004,

and September 20th, 2005

The Wenban Spring Property comprises a contiguous block of 293 unpatented and

unsurveyed lode mining claims, and totals 5,860 acres (2,371 hectares (ha)).

The Wenban Spring Property is located 71 miles (114 km) southwest of Elko on the

northeastern edge of the Toiyabe Range and is generally flat sagebrush-covered

desert, with elevations gradually increasing westward. The climate is favorable for

year-round mining, with all supplies and services needed for successful exploration

and mining programs available in the area.

The Wenban Spring Property is situated along the Northern Nevada Rift (“NNR”), a

Miocene-age structural zone that hosts Newmont’s Mule Canyon and Midas (Ken

Snyder) mines. The Property is also situated in the southwestern part of the Battle

Mountain-Eureka gold trend which hosts Carlin-type sedimentary hosted deposits

(Pipeline and Cortez Hills), porphyry deposits, and epithermal vein/stockwork

deposits.

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iv

From 2004 through 2005, BLRV carried out exploration programs consisting of

geological mapping, a CSAMT geophysical survey, and reverse circulation drilling.

The CSAMT survey results show that the alluvial fill in Grass Valley, on the east side

of the Property, is relatively thin, less than 500 feet (152 meters), for up to 1.5 miles

(2.4 km) east of the range-front fault.

During 2005, BLRV carried out a reverse circulation drilling program on the Wenban

Spring Property comprising three drill holes totaling 1,885 feet (575 meters). Drilling

results were inconclusive as two of three holes were abandoned due to drilling

problems, and the third hole failed to intersect lower plate rocks.

Intersecting the northwest fault on the north side of the Property is a regional east-

trending fault separating the upper-plate rocks to the south from Tertiary volcanic

rocks to the north. The volcanics (Caetano Tuff, 35 Ma) are contemporary with or

post-date mineralization with respect to the Carlin-type gold systems, and are older

than the productive volcanic-hosted systems in the region. The intersection of the

two structures under alluvial cover is considered a favorable setting for

mineralization.

The recommended core drilling program includes completing BLRV’s drilling of

targets defined by surface mapping and the CSAMT survey. As drill holes are

expected to reach vertical depths of up to 2,000 feet, it is estimated that a minimum

of five holes, with a combined length of 10,000 feet, may be necessary.

This program is estimated to cost approximately US$884,000.

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4.0 INTRODUCTION and TERMS of REFERENCE

At the request of Bullion River Gold Corp (the “Company” or “BLRV”), this Summary

Report has been prepared on the Wenban Spring Property (the “Property”), Cortez

Mining District, Lander County, Nevada, USA (Figure 1), to summarize previous work,

appraise the exploration potential of the Property, and make recommendations for future

work.

This report is based on geological reports, a compilation of published and unpublished

data, maps, and reports made by cited persons, and field examinations of the Property.

The author is a “qualified person” within the meaning of National Instrument 43-101 of

the Canadian Securities Administrators. The writer examined the geology and

infrastructure of the Property on July 24th and 27th, 2004, September 29th and 30th, 2004,

and September 20th, 2005.

Because the majority of the information about the property and surrounding areas is

given in American terms and units, this report will use American terminology to maintain

consistency. Metric units will be given as required for clarity.

5.0 DISCLAIMER

This report is based on a review of information provided by BLRV, published and

unpublished reports, observations made during the Property examinations, and land

status review. All interpretations and conclusions are based on the writer’s research

and personal examination of the Wenban Spring Property.

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6.0 PROPERTY DESCRIPTION and LOCATION

The Wenban Spring Property comprises a contiguous block of 293 unpatented and

unsurveyed lode mining claims. Claims are listed in Appendix A.

The claims total 5,860 acres (2,371 hectares (ha)) and are located in the Cortez Mining

District, Lander County, Nevada, USA. The claims cover parts of Sections 1, 2, 3, 10,

11, 12, 14, 15, 23 and 26 in Township 25 North, Range 47 East, and Sections 34, 35,

and 36 in Township 26 North, Range 47 East (Figures 2 and 3).

The WS 1 to WS 238 (238 claims) are registered to Bullion River Gold Corp who

acquired a 100% interest in the claims through staking. The Gold Valley property,

consisting of GV 4 to GV 15 and GV 22 to GV 33 (25 claims) are registered to Senator

Minerals US Inc, 491 4th Street, Elko, NV (Senator). The Cortez South property,

consisting of CS 3 to CS 14 and CS 17 to CS 34 (30 claims) are also registered to

Senator. BLRV is proposing to acquire a 51% interest in the Gold Valley and Cortez

South properties through option agreements dated January 20, 2006. Option details

follow:

• A cash payment of US$10,000 for each of the Gold Valley and Cortez South

properties has been made;

• 125,000 Bullion River Gold Corp common shares to Senator for each of the

Gold Valley and Cortez South properties has been delivered;

• A work commitment by Bullion River Gold Corp to spend US$200,000 on each

of the Gold Valley and Cortez South properties within one year of signing the

option agreement; and

• In the event that BLRV earns its 51% interest, BLRV has the right to earn a

further 25% interest by financing additional work programs of US$200,000 on

each of the Gold Valley and Cortez South properties.

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The writer is not aware of any particular environmental, political, or regulatory problems

that would adversely affect mineral exploration and development on the Wenban Spring

Property.

7.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE,

and PHYSIOGRAPHY

The Wenban Spring Property is located 71 miles (114 km) southwest of Elko on the

northeastern edge of the Toiyabe Range. The Property is accessed from Elko,

driving west on paved Highway 80 for 42 miles (67 km) and south on paved Highway

306 for 32 miles (51 km), then 18 miles (29 km) southeast on a graded dirt Cortez-

Beowawe Road, and 5 miles (8 km) southwest on an unimproved two-track dirt road

to the Property.

Alternate access from Elko is by driving 22 miles (35 km) west on paved Highway 80,

then 50 miles (80 km) southwest on Highway 278, west on the Cortez-Beowawe

Road for 24 miles (38 km) and 5 miles (8 km) along an unimproved two-track dirt

road to the Property. The claims can be accessed by a number of unimproved “two

track” dirt trails.

The Property is generally flat sagebrush-covered desert. Elevations in the area are

between 5,700 feet (1,740 meters) in the southeastern Property area and 6,800 feet

(2,070 meters) along the western claim boundary.

Winters are cool to cold, with moderate snowfalls. Summer days are warm to hot,

with cool nights. The area is fairly dry, with infrequent rains during the summer.

Most precipitation comes as winter snow and spring rains, although locally intense

storms may develop any time of year.

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Exploration may be conducted year-round, with some interruptions due to snow in the

winter, and muddy, unstable roads in the spring. Elko is the major supply center for

the region and can provide almost any mining-related supply or service. Electrical

power on the Property would have to be generator-produced.

Mining is a major element in the region’s economy, so new exploration and

development projects are welcomed by the majority of the local residents. The

topography does not impose any significant challenges for the construction of mining

or milling facilities.

The political climate of the area is pro-mining. Project permitting standards are well

established by both federal and state statutes, along with informal local policies and

procedures. Permits are required for all exploration or mining activities that disturb

the surface. Reclamation bonds are also required prior to any disturbance. Further

discussion of permitting and bonding is beyond the scope of this report, except to say

that the process may become tedious but is not particularly difficult.

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Fig 1

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Fig 2

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Fig 3

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8.0 HISTORY

8.1 Area History

The Cortez Mining District straddles the boundary between Lander and Eureka

Counties in north-central Nevada. Silver was discovered in the Cortez District of

Eureka County in the early 1880s. Mining began in 1863 and continued until 1903.

From 1903 until 1958, mining and exploration were sporadic. During the period from

1863 to 1958, approximately US$14 million in gold, silver and minor base metals

(copper, lead and zinc) were produced (Stager, 1977). At an average estimated gold

price of US$20 an ounce, gold-equivalent production would have been 700,000

ounces.

In 1960, geochemical exploration by the U.S. Geological Service (USGS) indicated

anomalous values of lead, molybdenum, silver, zinc, arsenic, bismuth and

manganese in the western portion of the Cortez District in Lander County. In 1966,

gold values were discovered in silicified zones in Roberts Mountains Formation rocks

on the western slope of the Cortez Mountains in the area that would become the

Buckhorn mine. More detailed exploration was carried out and, in 1969, open-pit

mining commenced at the Cortez mine, which produced 166,000 ounces of gold at

an average grade of 0.285 ounces of gold per ton in its first year of operation.

A chronological summary of the development of the Cortez area by the Cortez Joint

Venture (CJV – Placer Dome 60% and Kennecott 40%) follows:

• 1964 CJV was formed to explore the Cortez area;

• 1969 Gold Acres deposit was acquired 8 miles northwest of Cortez;

• 1969-1973 Cortez deposit mined (1 million ounces of gold produced);

• 1973-1976 Gold Acres deposit mined;

• 1976 Horse Canyon deposit discovered 3 miles southeast of Cortez;

• 1983-1987 Horse Canyon deposit was mined (deposit size reported as 3.94 million tons grading 0.055 ounces per ton gold);

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• 1987-1996 Gold Acres re-activated (deposit size reported as 5.4 million tons grading 0.093 ounces per ton gold);

• 1988-1993 Mining of the Cortez deposit was re-activated;

• 1991 Pipeline and South Pipeline deposits discovered 8 miles northwest of Cortez (+8 million ounces of gold produced from 1991-2004);

• 1994 Mining of the Crescent pit, a shallow oxide portion of the South Pipeline deposit, commenced;

• 1998 Cortez Pediment discovered 4 miles southeast of Cortez;

• 2000 South Pipeline Extension deposit discovered (Crossroads Area); and

• 2003 Cortez Hills deposit discovered 3 miles southeast of Cortez.

Another area of interest, the Toiyabe Property (consisting of the 401, Middle and

South deposits), is located approximately 20 miles southwest of Cortez and 3 miles

west of the Wenban Spring Property. A mineral resource of 813,400 tons grading

0.066 ounces of gold per ton was reported in 1988. From 1988 to 1991, mining

operations extracted 52,480 ounces of gold and 25,425 ounces of silver from the

three deposits (NBMG, 1994).

8.2 Previous Work

Kotlyar et al, 1998, concluded that in northeastern Nevada, regional-scale distribution

patterns of arsenic in stream-sediments have similar orientations to gold trends and

region-scale geophysical and magnetic anomalies. A variety of regional geophysical

data for central and northeastern Nevada are available at the USGS website:

http://crustal.usgs.gov/geophysics

Existing geophysical data were re-interpreted, and standard Bouguer gravity and

magnetic data were corrected to emphasize anomalies originating in the middle and

upper crust. A second correction was made to eliminate gravity lows created by

younger overlying Cenozoic-age rocks.

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Kotlyar noted that gravity anomalies were characterized by three major trends,

northwest, northeast and east-northeast, which are orientations similar to known gold

trends and regional arsenic anomalies (Figure 4).

Interpretation of magnetic data (Figure 5) showed that:

• North-northwest anomalies correspond with the occurrence of Tertiary-age

volcanic dike rocks. The Northern Nevada Rift exhibits Tertiary (Miocene-age)

hot-spring deposits along its length. The NNR also coincides with the axis of

an arsenic anomaly;

• Local highs coincide with a number of Mesozoic-age plutons with nearby

sediment-hosted gold deposits; and

• Some gold deposits in the northern Independence Trend, southern Battle

Mountain-Eureka (Cortez) Trend, near the town of Austin, and sediment-

hosted gold-silver deposits near Ely, are located in areas with regionally

extensive magnetic lows.

The Wenban Spring Property area was previously controlled by Placer Dome. The

writer is not aware of any exploration work carried out on the subject Property prior to its

being staked by BLRV.

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Fig 4

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Fig 5

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9.0 GEOLOGICAL SETTING

The Property is located in the central part of the Great Basin province of Nevada, on the

western margins of the Northern Nevada Rift (”NNR”) and the Battle Mountain-Eureka

gold trend. Within the Great Basin province, exposed rock units range from late Pre-

Cambrian meta-sediments to Pleistocene cinder cones. Tectonic events include

alternating periods of continental scale compression, extension, and shearing.

The Great Basin is most noted as an extensional terrain, with the eastern and western

edges of the region, roughly the current sites of Reno, Nevada and Salt Lake City, Utah,

having moved apart by some 100 kilometers in the past 40 million years. Prior to this

period of extensional movement, the region had seen at least three major periods of

compression. Each of these events is evidenced by thrust faults which have stacked

age contemporaneous sheets of rock over one another and deposited them in different

sedimentary environments: deep-water siliceous rocks to the west; and shallow-water

carbonate rocks to the east.

9.1 Regional Geology

The geology of the Battle Mountain-Eureka Gold Belt is dominated by rocks of the

Roberts Mountains allochthon rocks that have moved from their depositional site,

which consists of mid-Palaeozoic siliceous rocks (upper plate – western assemblage)

to the west, in thrust-faulted contact with autochthonous (rocks generally unmoved

since deposition) mid-Palaeozoic carbonate rocks (lower plate - eastern assemblage)

on the east. (Stewart, et al, 1977) (Figure 6).

During the late-Devonian and early-Mississippian Antler Orogeny, upper plate rocks

were transported eastward along the Roberts Mountains thrust and pushed on top of

lower plate eastern assemblage rocks.

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This thrusting caused folding in affected rocks. Intrusion of granitic rocks during the

Mesozoic age caused localized doming throughout the region.

Tertiary events include the intrusion of quartz porphyry dikes and quartz latite and

rhyolitic tuffs (Caetano Tuffs), extensive basaltic volcanism and subsequent deep

erosion which removed paleo-highs along the crest of regional fold structures. These

events resulted in structural “windows” in upper plate rocks through which lower plate

rocks were exposed. High-angle faults with northerly, northeasterly and

northwesterly strikes are both pre- and post-Antler ages (Gilluly and Gates, 1965).

The most recent structural activity is associated with Tertiary-age Basin and Range

block faulting.

Eastern assemblage rocks are composed of Cambrian-age Hamburg Dolomite,

Ordovician-age Hanson Creek Formation and Eureka Quartzite, late Silurian- to early

Devonian-age Roberts Mountains Formation, Devonian-age Wenban Limestone, and

the limy Mississippian/Devonian-age Pilot Shale. Western assemblage rocks consist

of Ordovician-age Valmy and Vinini Formations, Silurian-age Elder Sandstone and

mid- to upper-Devonian-age Slaven Chert. Oligocene-age (Tertiary) Caetano Tuff

crops out north of the Property in fault-contact with Valmy Formation rocks.

Subduction-related intermediate composition volcanic activity started approximately

41 million years (Ma) ago during the Eocene in the northeast corner of Nevada and

progressed southwesterly until the Middle Miocene, about 16 Ma. Later events are

related to regional extension and crustal thinning starting about 17 Ma and the

Northern Nevada Rift/Yellowstone Hot Spot events starting about 15.6 Ma. (John and

Wallace, 2000).

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Fig 6

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Table1: Geology Legend Quaternary Qf - Alluvial fan Qoa - Older alluvial deposits Qtvu - Volcanic rocks, undivided Tertiary Tvu - Volcanic rocks, undivided Tc - Caetano tuff

Ts1/Ts5 - Tuffaceous sedimentary rocks

Eocene and/or Oligocene Tg - Granitic intrusive rocks Jurrasic, Cretaceous, Tertiary Ir - Intrusive rocks Jurassic, Cretateous Kn - Newark Canyon Formation (silt, shale, sandstone, conglomerate and limestone) Jurassic Jg - Granitic rocks (mostly qtz monzonite) Devonian Western Assemblage Eastern Assemblage Ds - Slaven Chert Deu - Sedimentary rocks, undivided (dark-gray to black chert, sparse siltstone) (includes the Wenban Limestone and Pilot Shale in the Cortez area) Dl - Limestone (massive limestone, silty limestone - Wenban Limestone north of 40th parrallel) Silurian Western Assemblage Eastern Assemblage Swu - Sedimentary rocks, undivided Sr/Dsrm - Roberts Mountains Formation (Silurian / Devonian) Se - Elder Sandstone (minor chert and shale) (silty limestone and minor dolomite) Ordovician Western Assemblage Eastern Assemblage Ova - Valmy Formation Oh - Hanson Creek Formation (chert, quartzite, greenstone, lava and shale) (dolomite and bluish-gray platy limestone) Ov - Vinini Formation Oe - Eureka Quartzite (chert, shale, limestone, qtzite and greenstone) Cambrian Eastern Assemblage Ch/Cha - Hamburg Dolomite

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Miocene volcanic rocks and related sediments fill extensional basins that started

opening about 17 Ma and are still active, particularly in the western part of the state

(Stewart, 1980). This episode of volcanism continued to about 6 Ma., mainly north

and west of the Property. A change in the extension direction, from east-northeast to

northwest, occurred at approximately 8 Ma and resulted in a series of northeast

trending grabens (Goldstrand and Schmidt, 2000).

The Wenban Spring property is situated along the Miocene-age Northern Nevada Rift

(”NNR”) approximately 6 miles (10 km) southwest of the CJV’s Cortez Mine.

Regional high-angle north-, northeast- and northwest-striking faults served as

conduits, allowing mineralized hydrothermal solutions to form mercury deposits in

sinter and silicified tuffs, disseminated gold deposits in various Paleozoic-age rocks,

and high-grade gold-silver veins in Paleozoic-age and deeply buried rhyolitic rocks

(Wallace, 2003). Northwest-striking Miocene-age faults are consistent with the

middle Miocene-age west-southwest extension direction (Zoback and Thompson,

1978; Zoback et al, 1994), and northeast-striking faults are related to younger (<8

Ma) northwest-directed extension (Zoback and Thompson, 1978; Wallace, 1991).

9.2 Property Geology

The Property has not been the subject of published detailed geologic mapping. Rock

descriptions and general stratigraphic relationships described below are taken from

the published Geology and Mineral Deposits of Lander County (Stewart et al, 1977).

9.2.1 Stratigraphy

Stratigraphy consists of Paleozoic-age upper and lower plate sedimentary rocks

(Figure 7).

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Paleozoic- Ordovician

The Valmy Formation, which consists of chert, quartzite or sandstone, and siltstone,

argillite or shale, is approximately 2,500 meters (8,200 feet) thick. Chert is mostly

black to dark-gray. Quartzite commonly occurs in massive units. Siltstone, argillite

and shale generally occur as minor components of either the chert or quartzite.

Vinini Formation rocks consist of quartzite, gray sandy limestone, chert, clay shale,

organic shale, and minor andesitic volcanic rocks. The Vinini Formation has not

been mapped in the Toiyabe Range west of the Property but is described in the

Simpson Park Mountains to the east, and the Cortez Hills to the northeast.

The distinction between Valmy and Vinini rocks is not clear, and rock types found in

one formation can be found in the other. The structural base of both formations is

the Roberts Mountains thrust.

Paleozoic- Silurian

The Elder Sandstone consists of 1,200 meters (4,000 feet) of fine-grained feldspathic

silty sandstone, with minor shale, chert, and siliceous tuffite.

Paleozoic- Devonian

The Slaven Chert consists of 1,200 meters (4,000 feet) of thinly-bedded black chert.

Thin beds of sandstone, siltstone, and limestone occur locally.

Wenban Limestone, stratigraphicaly above the Roberts Mountains Formation in the

area of the Cortez mine but still below the Roberts Mountains thrust, is approximately

700 meters (2,300 feet) thick, consisting of dark-gray thick-bedded limestone

interbedded with thin-layered argillaceous limestone. Wenban Limestone crops out

two miles west of the Wenban Spring Property.

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Tertiary-Oligocene

The crystal-rich quartz-latite ash-flow Caetano Tuff crops out four miles north of the

Property. In the same area, tuffaceous sedimentary rocks are exposed along a

northwest- to north-trending valley.

Quaternary Overburden

Much of the Property area is overlain by alluvial sand and gravel deposits.

9.2.2 Structure

In the northeastern Toiyabe Range, upper plate western assemblage rocks

consisting of the Valmy Formation, Slaven Chert, and Elder Sandstone are in thrust-

faulted contact. Lower plate Wenban Limestone is in thrust fault contact with Slaven

Chert approximately two miles west of the Wenban Spring property.

The faulted contact north-northwest of the Property, between the Caetano Tuff and

the Valmy Formation, has an east-west orientation. The eastern edge of the Toiyabe

Range is cut by generally north-northwest- to northwest-trending valleys. As well,

thrust fault contacts have a northwesterly orientation.

The regional NNR structural zone also strikes north-northwest and is likely the root

cause of the north-northwest fault alignment. As regional structure appears to

influence mineralization, any structurally controlled mineralization or alteration on the

Wenban Spring property is likely to follow this same regional trend.

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Fig 7

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10.0 DEPOSIT TYPES

There are two deposit types targeted on the Wenban Spring Property. The main

focus of exploration will be a tabular Carlin-type gold deposit, with finely disseminated

gold in carbonate rocks. The secondary focus will be the low-sulfidation epithermal

vein-hosted gold-silver “bonanza” deposit found within the Northern Nevada Rift

structural system.

10.1 Carlin-type Deposits

Carlin-type gold deposits are mainly hosted in sedimentary carbonate rocks. Ores

typically have low gold concentrations but are present world-wide as large tonnage

masses containing up to 30 million ounces of gold (USGS Open-File, Rpt 98-466).

Carlin-type mineralization occurs as finely disseminated sub–micron-sized gold and

pyrite (arsenic-rich), with variable degrees of silicification, argillization, and

decalcification. Minor amounts of silver can accompany gold mineralization.

Although carbonate rocks are the most common host, host rocks can include skarns,

metamorphosed mafic volcanics and felsic intrusive rocks. Within the Carlin trend,

most known gold occurrences are hosted within a 350-meter-thick (1,100-feet-thick)

stratigraphic interval composed of Devonian- and Silurian-age lower plate eastern

assemblage carbonate rocks located beneath the regional Roberts Mountains thrust.

Ore deposition is thought to be at depths of 1 to 3 kilometers (0.6 to 1.8 miles).

Ore mineralogy can include gold-bearing arsenopyrite, arsenic-rich pyrite, pyrite,

marcasite, stibnite, realgar, orpiment, cinnabar, thallium-sulfide minerals, rare silver-

antimony-mercury and lead-antimony sulfosalt minerals, sphalerite, chalcopyrite, and

galena. Barite, calcite and fine-grained quartz are common gangue minerals.

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Silica replacement of carbonate is accompanied by volume loss so that brecciation of

host rocks is common. Tectonic brecciation adjacent to steep normal faults is also

common. Generally less than 1% fine-grained sulphides are disseminated

throughout the host rock (Schroeter, et al, 1996).

In harder, more siliceous rocks, mineralization consists of jasperoid and veining

ranging from millimeter-sized stockwork quartz veinlets to meter-sized vitreous quartz

veins.

Mineralization controls include a mixture of faults, folds, and favorable stratigraphic

horizons. Regionally, gold mineralization is concentrated along northwest- and

northeast-trending, medium- to low-angle, regional, Jurassic-age shear zones, and

north-northwest-trending low-angle shear zones of post-Jurassic age.

General structural controls affecting Carlin-type mineralization are:

• selective replacement of carbonaceous carbonate rocks adjacent to and along

high-angle faults, regional thrust faults, or bedding;

• the presence of small felsic plutons or dikes that may have imposed a thermal

gradient allowing groundwater to circulate; and

• deep structural controls possibly related to Precambrian crystalline basement

structures and/or continental margins.

10.2 Epithermal Vein-hosted Deposits

Low-sulfidation epithermal gold-silver deposits are typically found primarily as quartz-

adularia-calcite veins in volcanic rock. Veins are the typical “bonanza” type, carrying

significant gold and silver. Gold grades in the percent range have been recorded for

select samples from this class of deposit, including the Midas and Sleeper deposits.

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By the end of 2005, the Midas deposit had produced over 1.47 million ounces of gold

and 16.5 million ounces of silver (NBMG, 2004: NBMG 2006). Between 1986 and

1996, the Sleeper deposit produced more than 1,600,000 ounces of gold and

1,900,000 ounces of silver (NBMG).

Typically, veins fill open spaces and show rhythmic bands of quartz and adularia,

with occasional bands of dark sulfides or selenides. Calcite may be present as

individual bands or may be replaced by quartz. Bladed calcite, often replaced by

quartz, is another common feature in these deposits and is thought to indicate

solution boiling. Multiple episodes of brecciation and cementation are common.

Deposits form at low temperatures, generally less than 200°C, although some deeper

systems may show temperatures approaching 300°C. Mineralization often shows

abrupt tops and bottoms, while barren quartz-adularia-calcite veins continue. These

veins rarely contain significant quantities of base metals, usually less than 200 ppm

in total. Silver to gold ratios for the Midas-type veins are somewhat higher than for

the sediment hosted gold deposits, running in the 2:1 to 12:1 range.

Associated trace elements for the Midas-type veins include arsenic, antimony,

selenium and mercury +/- molybdenum, thallium, and tungsten. While arsenic is

usually present in the veins, it is found at much lower values than is seen in the

sediment hosted deposits, usually <300 ppm at most. Selenium is a strong indicator

for this type of system, as silver selenides such as naumannite are common in this

type of vein but are rare on other types of deposits. At Midas, veins occupy the same

structures that host mafic dikes, with the veins commonly found in the footwall of the

dikes. This arrangement is probably due to the mafic dikes acting as buttresses,

maintaining open space as the faults continued to move.

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11.0 MINERALIZATION

The Wenban Spring Property is at an early stage in the exploration process, with no

specific mineralization types having been identified. Summaries of rock chip assay

results from BLRV’s drilling program are provided in Section 13.0 Drilling.

Stewart et al, 1977, indicates a small barite deposit in Section 16, Township 25N,

Range 47E, one and a half miles west of the Property, approximately half way

between the Toiyabe and Wenban Spring properties.

12.0 EXPLORATION

From 2004 through 2005, BLRV carried out exploration programs consisting of

geological mapping, rock sampling, a CSAMT geophysical survey, and reverse

circulation drilling.

BLRV’s mapping shows that:

• A range-front fault with an atypical north-northwest-trend cuts the Property;

• South of the Property, range-front orientation has a typical northeast trend;

and

• An altered northwest-trending dike has been identified on the Property.

12.1 Rock Chip Geochemical Sampling

In 2004, BLRV took six rock samples during their work program. Sample locations

are shown on Figure 8. Assay results were not significant.

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12.2 Geophysical Surveys

Pearson, deRidder and Johnson, Inc (PRJ) flew an airborne magnetic survey over

the region in the mid-1990s. PRJ sells this information on a non-exclusive basis.

In 2004, Zonge Geosciences Inc, Sparks, Nevada (Zonge) carried out a CSAMT

survey comprising three lines totaling 12 km. Survey results show that the alluvial fill

in Grass Valley, on the east side of the Property, is relatively thin, less than 500 feet

(152 meters), for up to 1.5 miles (2.4 km) east of the range-front fault.

13.0 DRILLING

During 2005, BLRV carried out a reverse circulation drilling program on the Wenban

Spring Property comprising three drill holes totaling 1,885 feet (575 meters). A drill

log summary is provided in Appendix B and locations are shown in Figure 8. The

following table provides drill data.

Table 2: Drilling Data

Location UTM Hole Easting Northing

Dip Depth feet

WS-1 530,343 4,435,433 -90o 950 WS-2 530,870 4,435,389 -90o 295 Ws-3 529,517 4,435,523 -90o 640

For WS-1, assay results include:

• 440-950’- gold ranges from 6-25 ppb;

• 440-950’- low arsenic ranges from 10-17 ppm;

• 640-740’- mercury ranges from 1-1.7 ppm;

• 560-600’- calcium at 3.8%;

• 560-700’- molybdenum ranges from 6-15 ppm; and

• 440-740’ – phosphorus ranges from 1,200-1,600 ppm.

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Fig 8

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WS-2 was abandoned in Quaternary alluvium at 265 feet (81 meters) and no

samples were taken.

WS-3 was terminated at 640 feet (195 meters) due to mechanical problems. For

WS-3, assay results include:

• 70-640’ – low gold ranges from 7-22 ppb;

• 70- 210’- arsenic ranges from 6-11 ppm;

• 70-640’- mercury ranges from 0.06-0.36 ppm;

• 170-530’- calcium ranges from 1.4-3.1%;

• 150-350’- molybdenum ranges from 3.1-19 ppm; and

• 170-230’- phosphorus ranges from 810-2,450 ppm.

14.0 SAMPLING METHOD and APPROACH

Rock chip samples were taken for analysis from each five-foot interval of reverse

circulation drilling. No samples were taken while drilling overburden.

15.0 SAMPLE PREPARATION, ANALYSIS, and SECURITY

Rock chip samples were submitted to the Reno, Nevada office of ALS Chemex.

Standard sample preparation for samples involves logging the sample into the

laboratory sample tracking system, drying, crushing, and pulverizing the entire

sample so that greater than 85% passes a 75-micron screen.

Gold was analyzed using the following ALS Chemex procedures:

• Au-AA23 – trace-level gold by FA/AAS finish, using a 30 gram sample

weight, having a result range from 0.005-10 ppm;

• ME-MS61 – 47 element four acid “near-total” digestion; and

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• Hg-CV41 – mercury by Aqua Regia digestion/cold vapor, AAS, having a

result range of 0.01-100 ppm.

In North America, ALS Chemex laboratories have achieved ISO 9001:2000

registration and maintain an internal quality control program including the use of

blank, duplicate, and standard samples inserted into the sample stream. ALS

Chemex provides industry-standard sample preparation and analytical methods, and

is deemed by the writer to conform to reasonable data verification controls.

16.0 DATA VERIFICATION

Other than land status checks and the Property examinations, the writer did not

attempt to verify the information available for this specific property.

17.0 ADJACENT PROPERTIES

Gold deposits at Midas, Mule Canyon, Toiyabe, and the CJV properties of the

Crescent Valley and Cortez area offer good examples of possible mineralization

types. The Midas and Mule Canyon mines are located approximately 80 miles (128

km) and 35 miles (56 km) respectively north of the Wenban Spring Property, the

Cortez Hills deposit (part of the CJV group of properties) lies approximately 6 miles

(10 km) north-northeast, and the Toiyabe mine is located 3 miles (5 km) west.

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17.1 Newmont – Midas Mine

The Midas or Ken Snyder mine, discovered in 1994, is a volcanic-hosted, low-

sulfidation, selenium-rich, gold-silver bearing quartz-adularia vein deposit located in

the Midas district of north-central Nevada, on the eastern flank of the NNR, and is on

the northwest-trending strike continuation of the Carlin trend.

By the end of 2005, the Midas deposit had produced over 1.47 million ounces of gold

and 16.5 million ounces of silver (NBMG, 2004: NBMG 2006).

Host rocks are mid-Miocene felsic tuffs, sediments and gabbro sills and dikes. Wall

rock alteration is predominantly propylitic, and hydrothermal alteration is widespread.

Vein mineralogy consists of gold and silver selenides (naumannite and aguilarite),

electrum; rare lead-, copper- and iron-selenides; and a gangue of banded quartz (at

least eleven precipitation events), calcite and adularia containing pyrite, marcasite,

chalcopyrite and sphalerite.

Geochemical soil profiles in the Midas district indicate anomalous gold, silver,

selenium, mercury, arsenic and lead values. Deposit age is estimated to be 15.23+/-

0.05 Ma.

Fluid inclusion data indicate a mean temperature during ore formation of 240oC and

very low salinities, possibly reflecting a strong groundwater influence on the

epithermal system. The dominance of quartz, calcite and adularia in the open-space

filling veins is indicative of a low-sulfidation system (Goldstrand et al, 2000).

Mineralization on the main Colorado Grande vein occurs over a strike distance of

6,500 feet (1,981 meters) and a vertical range of 1,700 feet (518 meters) and exhibits

remarkable continuity (Goldstrand et al, 2000).

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Veining occupies faults oriented north-south to north-northwest and west-northwest,

dipping steeply northeast. Mineable reserves have been defined on seven veins.

In the Midas district, siliceous sinters, always occurring in the Esmeralda mudstones

and siltstones, are reported to overlie main mineralized structures.

Examples of overlying Esmeralda sinters show continuous laminations. Although not

conclusive, the laminations are thought to suggest that the sinters were the product

of intense silica flooding of the Esmeralda mudstones and siltstones rather than

being true hot spring sinters (Goldstrand et al, 2000).

17.2 Newmont - Mule Canyon

This low-sulfidation epithermal gold-silver deposit lies near the west side of the

northern Nevada rift. The deposit consists of six small deposits in a north-northwest-

elongated zone 2.5 kilometers long and 0.6 kilometers wide, and shows high iron

sulfide content, low silicification, and narrow discontinuous gold-bearing veins.

Pre-mining reserves of 9 million tons at an average grade of 0.111 ounces per ton

gold at a cut-off grade of 0.097 ounces per ton gold were reported (John and Wruke,

2003).

The writer considers the reserve estimate to be historical and non-compliant with

current NI 43-101 standards, and therefore should not be relied upon. From 1996

through 2005, sporadic mine production included 207,493 ounces of gold and 29,270

ounces of silver (NBMG, 2004: NBMG 2006).

Mule Canyon is atypical of low-sulfidation gold-silver deposits as the deposit is

hosted by mafic flows and dikes of the Mule Canyon sequence of volcanic rocks.

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Host rocks are dated at 16.4 to 15.8 Ma. Hydrothermal alteration and mineralization,

controlled by north-northwest- to north-striking steeply dipping faults and breccia

zones, occurred at approximately 15.6 Ma. Mafic dikes that intruded faults are also

brecciated and mineralized. Hydrothermal alteration assemblages are zoned

outward from fluid conduits in the sequence silica-adularia, intermediate argillic and

propylitic. Pyrite is a common constituent of the alteration types.

Fifteen units, with an estimated aggregate thickness of 400 meters, comprise the

Mule Canyon sequence of mafic volcanic rocks. The Mule Canyon sequence

overlies mid-Tertiary-age sedimentary and volcanic rocks, and Paleozoic

sedimentary rocks, and is in turn overlain by andesite of the Horse Heaven

sequence.

The upper unit of the Mule Canyon sequence consists of basalt and andesite with

flow-banded textures. Mineralization occurs in the middle and upper units of the

Mule Canyon sequence and the lower units of Horse Heaven.

Two types of mineralization have been identified: early replacement, and later open-

space filling. Replacement ores consist of disseminated and vesicle-filling pyrite,

marcasite, and arsenopyrite in argillically altered or weakly silicified rocks. Open-

space filling ores include narrow stockwork quartz-adularia veins, banded and

crustiform opaline and chalcedonic silica-adularia veins, silica-adularia cemented

breccias, and sparse carbonate-pyrite and/or marcasite veins (John et al, 2003).

It is estimated that the Mule Canyon deposits formed at relatively shallow depth,

probably 100 meters below paleosurface.

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17.3 CJV Crescent Valley and Cortez Area Properties

The Cortez Joint Venture (CJV – Barrick Gold Corporation (Barrick) 60%, Kennecott

Minerals Company 40%) is situated along the Battle Mountain-Eureka trend in north-

central Nevada, in the areas of Crescent, Grass, and Pine Valleys.

Mineralization is mainly sedimentary rock-hosted and consists of micron-sized free

gold particles disseminated throughout the host rock, commonly in association with

secondary silica, iron oxides or pyrite.

Leriche, 1996, interpreted north- to northwest trending faults, including the Cortez,

Corral and Gold Quartz faults, as extending across the CJV area and controlling gold

mineralization.

The CJV core properties include the Pipeline, South Pipeline and South Pipeline

Extension (collectively “Pipeline”), Gap, Gold Acres, Cortez, Horse Canyon, Cortez

Hills, and Pediment gold deposits.

At Pipeline, the principal lithologic unit hosting the deposits is the Silurian-age lower

plate eastern assemblage Roberts Mountains Formation, located beneath the

Roberts Mountains thrust. The Roberts Mountains Formation thinly bedded

calcareous siltstone is a silty carbonate unit that is sheared and variably altered, with

thickness exceeding 2,000 feet (600 meters) in the deposit areas. Devonian-age

Wenban Limestone is exposed approximately 1,500 feet (460 meters) to the west.

The Pipeline deposits consist of two mineralized zones: a shallow zone ranging in

depth from 30 feet to 650 feet (10 meters to 200 meters) below the pre-mining

surface, and a deeper zone that begins approximately 1,000 feet (300 meters) below

the pre-mining surface.

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Both mineralized zones are low-angle and tabular, ranging from 50 feet to 360 feet

(15 meters to 110 meters) thickness, and dipping to the east.

Gold mineralization at the Cortez mine occurs in faulted, brecciated, and

hydrothermaly altered rocks of the Roberts Mountains Formation adjacent to a

Tertiary-age porphyry intrusive (Leriche, 1996).

At Horse Canyon, gold mineralization occurs within the upper Wenban Limestone and

the lower Vinini Formation, and is structurally and lithologically controlled as follows:

• Pre-mineralization north-northwest faults broadly bound the ore body;

• Higher grades are locally concentrated along east-northeast faults within the

deposit;

• The Roberts Mountains thrust localizes mineralization; and

• Stratiform Wenban mineralization tends to parallel the thrust contact.

Gold and accompanying silica are interpreted to have migrated along a north-northwest

high-angle fault. Gold mineralization is associated with calcite/quartz, crystalline jarosite

and hematite, as well as alunite within jasperoid breccias associated with the fault zones

(Mitchell, 2001).

The Cortez Hills deposit is hosted by chert and laminated siltstone in the upper

portion of the Devonian-age Wenban Limestone. The deposit has a strike length of

more than 1,000 feet (300 meters) and is approximately 650 feet (200 meters) wide.

Mineralization extends from a depth of 400 feet (120 meters) to 1,500 feet (460

meters). The deposit remains open to the west and at depth. A mine feasibility study

was commenced in 2004.

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The Cortez Pediment deposit has one primary mineralized zone approximately 150

feet (45 meters) below surface on the southern portion of the deposit, and

approximately 560 feet (170 meters) below surface in the northern portion of the

deposit. The average thickness of the low angle tabular zone is approximately 246

feet (75 meters) (Barrick website, November 2006).

Including 2005 production, the CJV has produced approximately 10.2 million ounces

of gold (NBMG 2004, and Barrick website, November 2006).

17.4 CJV – Toiyabe Property

The Toiyabe deposit, consisting of three mineralized bodies, is located 3.5 miles west

of the Wenban Spring Property and approximately 20 miles south-southwest of the

Cortez mine.

The geology of the Toiyabe deposit is dominated by lower Paleozoic-age carbonate

eastern assemblage rocks of the Silurian/Devonian-age Roberts Mountains

Formation and siliceous/volcanic western assemblage rocks of the Devonian-age

Slaven Formation, placed in contact by the Roberts Mountains thrust.

Other rocks include Tertiary-age alluvium and aphanitic quartz feldspar intrusive

dikes and sills, and dolostone. At least four deformation episodes make the structure

of the Toiyabe property complex.

From oldest to youngest, the episodes are:

• Low-angle shear zones and thrust faults, and northwest-trending folds

indicating a generally northeasterly directed orogenic force;

• Extension in a northeast-southwest direction producing northwest-trending

normal faults;

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• East-northeast- to northeast-trending, steeply to moderately dipping faults (the

main 401 Fault); and

• North- to north-northwest-trending normal faults dipping steeply west, probably

related to Basin and Range extension.

Mineralization consists of finely disseminated gold in Roberts Mountains Formation

carbonates, typical of a Carlin-style gold deposit. The tabular nature of the

mineralization indicates that the Roberts Mountains thrust was an important control of

gold deposition.

Gold deposition was controlled by the moderate- to high-angle northeast- and

northwest-trending structures intersecting low-angle shear zones within the Roberts

Mountains thrust. The northeast-trending north-dipping 401 Fault is thought to be the

primary ore fluid conduit (R.J. Roberts, 1999).

Alteration consists of weak to strong decarbonatization (decalcification), weak to

moderate silicification, and argillization. Silicification is the predominant alteration

type and consists of fine quartz-filled veinlets and vugs. From 1988 to 1991,

combined production from the 401, Middle and South pits totaled 52,480 ounces of

gold and 25,425 ounces of silver (NBMG, 1994).

While mineralization suggested by information on the Midas, Mule Canyon, and CJV

properties is not necessarily indicative of mineralization on the subject Property,

similarities in lithology, alteration, and structure indicate exploration potential.

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18.0 MINERAL PROCESSING and METALLURGICAL TESTING

No mineral processing or metallurgical testing has been conducted on material taken

from the Wenban Spring Property

19.0 MINERAL RESOURCE and MINERAL RESERVE ESTIMATES

No Mineral Reserves or Resources, as currently defined by C.I.M. terminology, have

been outlined on the Wenban Spring Property.

20.0 OTHER RELEVANT DATA and INFORMATION

No other relevant data and information is available on the Wenban Spring Property.

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21.0 INTERPRETATION AND CONCLUSIONS

21.1 Interpretation

Necessary conditions for both a Carlin-type disseminated gold deposit and a Midas-

type high-grade bonanza-style gold-silver deposit include a well-developed fracture

system and a physical and chemical environment that will permit efficient gold-silver

precipitation sufficiently long to form an economic deposit.

Favorable host rocks for a Carlin-type deposit are sedimentary carbonate rocks,

which have developed sufficient porosity, through chemical and/or mechanical

means, to allow mineralizing fluids to deposit gold.

Favorable host rocks for a Midas-type deposit will be competent (brittle), which under

faulting stresses are more likely to form through-going upward-branching open

fractures. Less competent rocks under similar stresses tend to form stockworks.

The introduction of silica, as host rock replacement and as quartz gangue in vein and

breccia fillings, is an important ground preparation event enhancing the host rock’s

ability to fracture and maintain open fissures.

The physical and chemical mechanisms under which gold-silver in solution will be

deposited include oxidation, temperature decrease, and decrease in H2S content.

These changes can be brought about by the hydrothermal transporting solution

reaching a boiling point or the mixing of the hydrothermal solution with cooler more

oxygenated water. Under hydrostatic conditions, the gold-silver solution (250oC at

3% wt. NaCl) would boil at a depth below surface of approximately 450 meters

(Romberger, 1993). Given temperature, pressure, and fluid composition variability,

the possible hydrothermal solution boiling point, and subsequent gold-silver

deposition, could range from as little as 100 to more than 1,000 meters below

paleosurface.

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Arehart, 2002, observed that bedded Paleozoic-age barite deposits, locally

containing abundant organic matter, generally overlap Eocene-age Carlin-type

deposits. The theory is that bedded barite and organic matter are important in the

development of bisulfide-bearing fluids, which are capable of transporting unusually

high concentrations of gold, and that the characteristic high Au:Ag ratio observed in

Carlin-type deposits resulted from this extreme enrichment in bisulfide relative to

most hydrothermal fluids. The bisulfide-enriched ground water either dissolved gold

from surrounding rocks as it descended or accepted gold from deep crustal

magmatic or metamorphic sources upon ascent along crustal-scale faults.

The following statements are consistent with the above observations:

• The Wenban Spring Property is situated in the western part of the north-

northwest-trending North Nevada Rift megastructure, which hosts the Midas

and Mule Canyon low-sulfidation epithermal gold-silver deposits.

Mineralization at Midas is in a vein system 200-300 meters below surface

silica-mercury sinters. A suite of metallic gangue minerals and silica flooding

of wall rock accompanies gold-silver mineralization;

• The Property is also situated in the southwestern part of the Battle Mountain-

Eureka gold trend, which hosts both Carlin- and Midas-type gold deposits;

• Work carried out by CJV on the Cortez Hills and Toiyabe properties suggests

gold-silver mineralization may be controlled by both northwest- and northeast-

trending structures, indicating that any areas where these structures intersect

would be a prime exploration site;

• Gold mineralization at CJV’s Horse Canyon deposit occurs in Wenban

Limestone, located below the Roberts Mountains thrust, and in sediments of

the Vinini Formation, located above the Roberts Mountains thrust;

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• The presence of barite in close proximity to the Wenban Spring property

suggests that mineralizing fluids capable of extreme gold enrichment could

have been present in any fluid transport system affecting the Property; and

• In the Toiyabe range immediately west of the Property, valley and range-front

orientations suggest the presence of northwest- and northeast-trending faults

respectively. As some of these valleys angle toward the Wenban Spring

Property, fault systems with similar orientations are interpreted to exist on the

Property, providing a possible conduit system for the transport of mineralized

hydrothermal fluids.

Due to its relatively close spatial relationship to known disseminated gold deposits in

carbonate rocks, the primary target on the Wenban Spring Property is Carlin-style

mineralization. However, as the Property is predominantly alluvium covered, the

presence of buried Miocene-age volcanic rocks capable of hosting Midas-style

mineralization can not be discounted.

Low-sulfidation epithermal veins are typically high-risk, high-reward exploration

situations. The veins are often physically small, but occasionally are large and high-

grade such as Sleeper and Midas. Veins often do not show large alteration aureoles,

and may be completely hidden due to post-mineral cover. The potential profitability

of bonanza-type deposits makes them attractive exploration targets.

Regional structural analysis and project-scale geologic data indicate that a north-

northwest trending range-front fault zone and prominent WNW trending normal faults

pass through and intersect within the property. Fault systems of this orientation are

the dominant control to gold deposits in the Cortez region, both Carlin-type sediment-

hosted and volcanic-hosted epithermal systems.

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Intersecting the northwest fault on the north side of the property is a regional east-

trending fault separating the upper-plate rocks to the south from Tertiary volcanic

rocks to the north. The volcanics (Caetano Tuff, 35 Ma) are contemporary with or

post-date mineralization with respect to the Carlin-type gold systems, and are older

than the productive volcanic-hosted systems in the region. The intersection of the

two structures under alluvial cover is considered a favorable setting for mineralization

(BLRV website, January 2007).

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21.2 Conclusions

The objective of this Summary Report is to assess the potential for the Wenban

Spring Property to host either Carlin- or Midas-type gold mineralization similar to the

Midas or the nearby CJV deposits.

The Property is considered to have potential to host an economic gold-silver deposit

because:

• Mines and prospects in the Cortez district have demonstrated economic gold-

silver mineralization in carbonate and siliceous sedimentary rocks. Similar rock

types have been identified within three miles of the Property;

• Several sets of north-northeast-, northwest- and northeast-trending faults that

could act as conduits for mineralizing fluids have been identified within a few

miles of the Property;

• The Property is situated along the north-northwest-trending North Nevada Rift,

which hosts the Midas low-sulfidation epithermal gold-silver deposit; and

• The Property is also situated along the northwest-trending Battle Mountain-

Eureka gold trend, which hosts the Mule Canyon and Buckhorn low-sulfidation

epithermal gold-silver deposits, as well as the Pipeline, Cortez, and Cortez Hills

disseminated gold deposits.

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22.0 RECOMMENDATIONS

The Wenban Spring Property is of sufficient merit to justify the following exploration

drill program.

The core drilling program includes completing BLRV’s drilling of targets defined by

surface mapping and the CSAMT survey.

As drill holes are expected to reach vertical depths of up to 2,000 feet, it is estimated

that a minimum of five holes, with a combined length of 10,000 feet, may be

necessary.

This program is estimated to cost approximately US$884,000.

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22.1 Proposed Budget Drilling Program

PROPOSED BUDGET, Drilling Program Wenban Spring Property, Nevada ALL US$Project preparation $ 4,600Mobe/Demobe (incl freight, transportation and wages) 3,800 Field Crew: Rate Days Totals Project Geologist $ 480 75 $ 36,000 Geotechnician 250 75 18,750 54,750 Field Costs: Food & Accommodation $ 125 150 18,750 Communications 25 75 1,875 Shipping 1,000 Supplies 25 75 1,875 Vehicle Rental 150 75 11,250 Other Rentals 50 75 3,750 38,500 Assays & Analysis: Rate Units Core Samples $ 40 1,500 60,000 Contracts Site preparation $ 5,000 Drilling core $ 57 10,000 570,000 Drill mobes, demobes, field costs 4,800 Reclamation, incl refundable bond 15,000 594,800 Report: Report preparation and editing $ 4,500 Data Processing, copying, binding 800 5,300 Administration incl. Contractor overhead and profit (8%) 60,940Operator Fee (8%) 60,940 $ 883,630 Rounded to $ 884,000

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23.0 REFERENCES

Arehart, G. B, 2002, The Link Between Bedded Barite and Carlin-Type Gold Deposits

in Nevada, Paper 63-3, Geological Society of America, Denver Annual Meeting, October 27-30, 2002.

Gilluly, J. and Gates, O, 1965, Tectonic and Igneous Geology of the Northern Shoshone Range, Nevada, U.S. Geological Survey Professional Paper 465, pp. 153

Goldstrand, Patrick M. and Schmidt, Kirk W., 2000, Geology, mineralization, and ore controls at the Ken Snyder Gold-Silver Mine, Elko County, Nevada, in Cluer, J.K., Price, J.G., Struhsacker, E.M., Hardyman, R.F., and Morris, C.L., eds. Geology and Ore Deposits 2000: The Great Basin and Beyond Symposium Proceedings, Geological Society of Nevada, Reno, Nevada, pp.265-287.

John, D.A., Hofstra, A.H., Fleck, R.J., Brummer, J.E. and Saderholm, E.C., 2003, Geologic Setting and Genesis of the Mule Canyon Low-Sulphidation Epithermal Gold-Silver Deposit, North-Central Nevada, in Economic Geology, Vol 98, 2003, pp 425-463.

John, David A. and Wallace, Alan R., 2000, Epithermal gold-silver deposits related to the northern Nevada rift, in Cluer, J.K., Price, J.G., Struhsacker, E.M., Hardyman, R.F., and Morris, C.L., eds., Geology and Ore Deposits 2000: The Great Basin and Beyond Symposium Proceedings, Geological Society of Nevada, Reno, Nevada, pp.155–175.

Kotlyar, B.B, Singer, D.A., Jachens, R.C. and Theodore, T.G., 1998, Regional Analysis of the Distribution of Gold Deposits in Northeast Nevada Using NURE Arsenic Data and Geophysical Data, in Contributions to the Gold Metallogeny of Northern Nevada, Open-File Report 98-338.

Leriche, P.D., 1996, Summary Report on the Bullion Mountain, CVP and East Cortez Properties, Lander and Eureka Properties, Central Nevada, USA, for Pallaum Minerals Lid.

Mitchell, M.A., 2001, Geological Compilation Report on the Gold Trend Project, for J-Pacific Gold Inc.

Nevada Bureau of Mines and Geology (NBMG), The Nevada Mining Industry 1994, Special Publication MI-1994.

Nevada Bureau of Mines and Geology (NBMG), The Nevada Mining Industry 2002, Special Publication MI-2002.

Nevada Bureau of Mines and Geology (NBMG), 2006, Special Publication P-17, Major Mines of Nevada 2005, University of Nevada, Reno.

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Romberger, S.B., 1993, A model for bonanza gold deposits, in Sheahan, P.A., and Cherrey, M.E., Geoscience Canada Reprint Series 6, Ore Deposit Models Vol. 2, p. 77-86.

Schroeter, T. and Poulsen, H. (1996): Carbonate-hosted Disseminated Au-Ag, in Selected British Columbia Mineral Deposit Profiles, Volume 2 - Metallic Deposits, Lefebure, D.V. and Hõy, T, Editors, British Columbia Ministry of Employment and Investment, Open File 1996-13, pages 9-12.

Smith, L., 2004, Technical Report and Qualified Persons Review, Cortez Joint Venture, Nevada, Placer Dome Inc, 26 February 2004.

Stewart, J.H., McKee, E.H., and Stager, H.K., 1977, Geology and Mineral Deposits of Lander County, Nevada, Nevada Bureau of Mines and Geology, Bulletin 88.

Stewart, John H., 1980, Geology of Nevada: A discussion to accompany the Geologic Map of Nevada. NBMG Special Publication 4. 136 p.

USGS Open-File Report 98-466, Part 2

Wallace, Alan R., 1991, Effect of late Miocene extension on the exposure of gold deposits in north-central Nevada, in Raines, G.L., Lisle, R.E., Schafer, R.W., and Wilkinson, W.H., eds., Geology and ore deposits of the Great Basin, Geological Society of Nevada, Symposium Proceedings, p. 179-183.

Wallace, Alan R., 2003, Geology of the Willow Creek Reservoir SE Quadrangle, Nevada Bureau of Mines and Geology Map 136, 15 p., 1 plate.

Zoback, M.L., and Thompson, G.A., 1978, Basin and Range rifting in northern Nevada: clues from a mid-Miocene rift and its subsequent offsets: Geology, v. 6, p. 111-116.

Zoback, M.L., McKee, E.H., Blakely, R.J., and Thompson, G.A., 1994, The northern Nevada rift – Regional tectonomagnetic relations and middle Miocene stress

direction: Geological Society of America Bulletin, v. 106, p. 371-382.

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GLOSSARY Conversion Factors To Convert From To Multiply By Feet Meters 0.305 Meters Feet 3.281 Miles Kilometers ("km") 1.609 Kilometers Miles 0.6214 Acres Hectares ("ha") 0.405 Hectares Acres 2.471 Grams Ounces (Troy) 0.03215 Grams/Tonne Ounces (Troy)/Short Ton 0.02917 Ounces/Ton(opt) Grams/Tonne (g/t) 34.2857 Tonnes (metric) Pounds 2,205 Tonnes (metric) Short Tons 1.1023 Allochthon: Rocks that have been moved a long distance from their original place of

deposition by some tectonic process generally related to thrusting or folding.

Alluvium: Stream deposits of comparatively recent time.

Autochthon: Rocks that have been had little movement from their original deposition site although the rocks may be intensely folded and/or faulted.

Argillic: Pertaining to clay or clay minerals. Disseminated precious metal deposits may exhibit “argillic” alteration characterized by the formation of the clay minerals kaolinite and montmorillonite. Epithermal precious metal deposits may exhibit “advanced argillic” alteration characterized by the clays dickite, kaolinite and pyrophyllite.

Bioclastic: Rocks consisting of fragmental organic remains.

Chalcedony: Quartz consisting of crystals that are extremely fine-grained. Grain texture is only visible using a microscope.

Colloform: A textural term applied to finely crystalline, concentric mineral layering. Layers commonly feature radial crystal growth (example: chalcedony).

Colluvium: Loose or incoherent deposits, usually at the foot of a slope or cliff and brought there chiefly by gravity.

Hydrothermal: An adjective applied to heated or hot aqueous-rich solutions, to the processes in which they are concerned, and to the rocks, ore deposits and alteration products produced by them.

Ignimbrite: A fine-grained rhyolitic tuff composed of viscous volcanic glass shards that when cooling wrapped around crystals of quartz, feldspar and amphiboles (hypersthene and/or hornblende) creating a “welded” texture.

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Jasperoid: Silicified limestone, usually accompanied by brecciation.

Orogeny: Mountain building, particularly by folding and thrusting.

Paleosurface: A ground surface that existed in the past.

Phenocrysts: The relatively large crystals in a porphyritic rock. Size usually indicates a longer growing time, so phenocrysts are generally the first minerals formed in magma.

Pluvial: Pertaining to deposits by rain water or ephemeral streams. Deposition due to the action of rain water.

Porphyritic: A textural term igneous rocks in which large crystals (phenocrysts) are set in a finer groundmass which may be crystalline, glassy or both.

Propylitic: Alteration characterized by the mineral assemblage chlorite + epidote + calcite. Due to the presence of the green minerals chlorite and epidote, propylitic alteration is usually easily recognized by its color. Often this zone is quite large, forming a halo around mineralization centers.

Pyroclastic: A general term applied to volcanic materials that have been explosively or aerially ejected from a volcanic vent. Also, a general term for the class of rocks made up of these materials.

Sinter: A chemical sediment deposited by a mineral spring, either hot or cold.

Stockwork: A rock mass interpenetrated by small veins.

Subduction: Descent of one tectonic unit under another.

Tuffite: Rocks composed of pyroclastic and sedimentary detritus, especially ash and fine sediment.

Vitrophyre: Porphyritic volcanic glass.

Xenolith: Rock fragments foreign to the body of igneous rock in which they occur. An inclusion.

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Edward Harrington, B.Sc., P.Geo. 3476 Dartmoor Place, Vancouver, BC, V5S 4G2

Tel: (604) 437-9538 Email: [email protected]

CERTIFICATE OF AUTHOR I, Edward D. Harrington, do hereby certify that:

1. I graduated with a B.Sc. degree in Geology from Acadia University, Wolfville,

Nova Scotia in 1971.

2. I am a Member in good standing with the Association of Professional

Engineers and Geoscientists of British Columbia, License #23328.

3. I have pursued my career as a geologist for over twenty years in Canada, the

western United States, the Sultanate of Oman, Mexico and Australia.

4. I have read the definition of “qualified person” set out in National Instrument

43-101 (“NI 43-101”) and certify that by reason of my education, affiliation with

a professional association as defined in NI 43-101, and past relevant work

experience, I fulfill the requirements to be a “qualified person” for the purposes

of NI 43-101.

5. I am responsible for the preparation of the summary report titled “Summary

Report on the Wenban Spring property, Cortez Mining District, Lander County,

Nevada, U.S.A” and dated January 9, 2007 (the “Summary Report”). I

inspected the Property on July 24th and 27th, and September 29th and 30th, 2004,

and September 20th, 2005. I have read National Instrument 43-101 and Form

43-101F1, and the Summary Report has been prepared in compliance with

that instrument and form.

6. I am independent of the issuer applying all of the tests in section 1.4 of

National Instrument 43-101, and I have not had prior involvement with the

Property that is the subject of the Summary Report.

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49

7. I am not aware of any material fact or material change with respect to the

subject matter of the Summary Report that is not reflected in the Summary

Report, the omission to disclose which makes the Summary Report

misleading. This report is based on geological assessment reports, fieldwork,

and published and unpublished literature researched by me and/or in the

Reliance Geological Services library and records, and I have visited the

subject property personally.

8. I consent to the filing of the Summary Report, in its entirety, with any stock

exchange or other regulatory authority and any publication, including

electronic publication, in the public company files on their websites accessible

by the public, of the Summary Report.

Dated this 9th day of January 2007.

Edward D. Harrington, B.Sc., P.Geo.

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APPENDIX A

Claim Information

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Claim Information - Wenban Spring Property CLAIM NAME

LOCATION DATE

FILING NAME

FILE NO. BLM

SECTION

TWP.

RANGE

CS 3 20 Sep 2005 Senator 915679 23 25N 47E CS 4 20 Sep 2005 Senator 915680 23 25N 47E CS 5 20 Sep 2005 Senator 915681 23 25N 47E CS 6 20 Sep 2005 Senator 915682 23 25N 47E CS 7 20 Sep 2005 Senator 915683 23 25N 47E CS 8 20 Sep 2005 Senator 915684 23 25N 47E CS 9 20 Sep 2005 Senator 915685 14 25N 47E CS 10 20 Sep 2005 Senator 915686 14 25N 47E CS 11 20 Sep 2005 Senator 915687 14 25N 47E CS 12 24 July 04 Senator 879328 14 25N 47E CS 13 20 Sep 2005 Senator 915688 14 25N 47E CS 14 20 Sep 2005 Senator 915689 14 25N 47E CS 17 20 Sep 2005 Senator 915690 14 25N 47E CS 18 29 Sept 04 Senator 886922 14 25N 47E CS 19 20 Sep 2005 Senator 915691 14 25N 47E CS 20 29 Sept 04 Senator 886924 14 25N 47E CS 21 20 Sep 2005 Senator 915692 14 25N 47E CS 22 29 Sept 04 Senator 886926 14 25N 47E CS 23 20 Sep 2005 Senator 915693 14 25N 47E CS 24 29 Sept 04 Senator 886928 14 25N 47E CS 25 20 Sep 2005 Senator 915694 14 25N 47E CS 26 29 Sept 04 Senator 886930 14 25N 47E CS 27 20 Sep 2005 Senator 915695 14 25N 47E CS 28 29 Sept 04 Senator 886932 14 25N 47E CS 29 20 Sep 2005 Senator 915696 14 25N 47E CS 30 29 Sept 04 Senator 886934 14 25N 47E CS 31 20 Sep 2005 Senator 915697 14 25N 47E CS 32 29 Sept 04 Senator 886936 14 25N 47E CS 33 20 Sep 2005 Senator 915698 14, 15 25N 47E CS 34 29 Sept 04 Senator 886938 14, 15 25N 47E

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ii

CLAIM NAME

LOCATION DATE

FILING NAME

FILE NO.BLM

SECTION

TWP.

RANGE

GV 4 30 Sep 2004 Senator 886939 26 25N 47E GV 5 20 Sep 2005 Senator 915665 26 25N 47E GV 6 30 Sep 2004 Senator 886941 26 25N 47E GV 7 20 Sep 2005 Senator 915666 26 25N 47E GV 8 30 Sep 2004 Senator 886943 26 25N 47E GV 9 20 Sep 2005 Senator 915667 26 25N 47E GV 10 20 Sep 2005 Senator 915668 23 25N 47E GV 11 20 Sep 2005 Senator 915669 23 25N 47E GV 12 30 Sep 2004 Senator 886945 23 25N 47E GV 13 20 Sep 2005 Senator 915670 23 25N 47E GV 14 30 Sep 2004 Senator 886947 23 25N 47E GV 15 20 Sep 2005 Senator 915671 23 25N 47E GV 22 27 July 04 Senator 879330 23 25N 47E GV 23 27 July 04 Senator 879331 23 25N 47E GV 24 27 July 04 Senator 879332 23 25N 47E GV 25 20 Sep 2005 Senator 915673 23 25N 47E GV 26 30 Sep 2004 Senator 886950 23 25N 47E GV 27 20 Sep 2005 Senator 915674 23 25N 47E GV 28 20 Sep 2005 Senator 915675 23 25N 47E GV 29 20 Sep 2005 Senator 915676 23 25N 47E GV 30 30 Sep 2004 Senator 886952 23 25N 47E GV 31 20 Sep 2005 Senator 915677 23 25N 47E GV 32 30 Sep 2004 Senator 886954 23 25N 47E GV 33 20 Sep 2005 Senator 915678 23 25N 47E

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iii

Claim NMC# Claiman

t Location

Date Sec. Twn. Range

WS 1 876256 BLRV 2/17/2006 34/26N/47E WS 2 920586 BLRV 2/17/2006 34/26N/47E WS 3 920587 BLRV 2/17/2006 34/26N/47E WS 4 920588 BLRV 2/17/2006 34/26N/47E WS 5 920589 BLRV 2/17/2006 34/26N/47E WS 6 920590 BLRV 2/17/2006 34/26N/47E WS 7 920591 BLRV 2/17/2006 34/26N/47E WS 8 920592 BLRV 2/17/2006 34/26N/47E WS 9 920593 BLRV 2/17/2006 34/26N/47E/35/26N/47E WS 10 920594 BLRV 2/17/2006 35/26N/47E WS 11 920595 BLRV 2/17/2006 35/26N/47E WS 12 920596 BLRV 2/17/2006 35/26N/47E WS 13 920597 BLRV 2/17/2006 35/26N/47E WS 14 920598 BLRV 2/17/2006 35/26N/47E WS 15 920599 BLRV 2/17/2006 35/26N/47E WS 16 920600 BLRV 2/17/2006 35/26N/47E WS 17 920601 BLRV 2/17/2006 35/26N/47E WS 18 920602 BLRV 2/17/2006 35,36/26N/47E WS 19 920603 BLRV 2/17/2006 36/26N/47E WS 20 920604 BLRV 2/17/2006 36/26N/47E WS 21 920605 BLRV 2/17/2006 36/26N/47E WS 22 920606 BLRV 2/17/2006 36/26N/47E WS 23 920607 BLRV 2/17/2006 36/26N/47E WS 24 920608 BLRV 2/17/2006 36/26N/47E WS 25 920609 BLRV 2/17/2006 36/26N/47E WS 26 920610 BLRV 2/17/2006 36/26N/47E WS 27 920611 BLRV 2/17/2006 34/26N/47E WS 28 920612 BLRV 2/17/2006 34/26N/47E WS 29 920613 BLRV 2/17/2006 34/26N/47E WS 30 920614 BLRV 2/17/2006 34/26N/47E WS 31 920615 BLRV 2/17/2006 34/26N/47E WS 32 920616 BLRV 2/17/2006 34/26N/47E WS 33 920617 BLRV 2/17/2006 34/26N/47E WS 34 920618 BLRV 2/17/2006 34/26N/47E WS 35 920619 BLRV 2/17/2006 34,35/26N/47E WS 36 920620 BLRV 2/17/2006 35/26N/47E WS 37 920621 BLRV 2/17/2006 35/26N/47E WS 38 920622 BLRV 2/17/2006 35/26N/47E WS 39 876119 BLRV 6/19/2004 35/26N/47E WS 40 920623 BLRV 2/17/2006 35/26N/47E WS 41 920624 BLRV 2/17/2006 35/26N/47E WS 42 920625 BLRV 2/17/2006 35/26N/47E WS 43 920626 BLRV 2/17/2006 35/26N/47E WS 44 920627 BLRV 2/17/2006 35,36/26N/47E

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iv

Claim NMC# Claimant

Location Date

Sec. Twn. Range

WS 45 920628 BLRV 2/17/2006 36/26N/47E WS 46 920629 BLRV 2/17/2006 36/26N/47E WS 47 920630 BLRV 2/17/2006 36/26N/47E WS 48 920631 BLRV 2/17/2006 36/26N/47E WS 49 920632 BLRV 2/17/2006 36/26N/47E WS 50 920633 BLRV 2/17/2006 36/26N/47E WS 51 920634 BLRV 2/17/2006 36/26N/47E WS 52 920635 BLRV 2/17/2006 36/26N/47E WS 53 920636 BLRV 2/17/2006 34/26N/47E WS 54 920637 BLRV 2/17/2006 34/26N/47E WS 55 920638 BLRV 2/17/2006 34/26N/47E WS 56 920639 BLRV 2/17/2006 34/26N/47E WS 57 920640 BLRV 2/17/2006 34/26N/47E WS 58 920641 BLRV 2/17/2006 34/26N/47E WS 59 920642 BLRV 2/17/2006 34/26N/47E WS 60 876140 BLRV 2/18/2006 34, SE WS 61 920643 BLRV 2/17/2006 34,35/26N/47E WS 62 920644 BLRV 2/17/2006 35/26N/47E WS 63 920645 BLRV 2/17/2006 35/26N/47E WS 64 876144 BLRV 2/18/2006 35, SW WS 65 920646 BLRV 2/17/2006 35/26N/47E WS 66 920647 BLRV 2/17/2006 35/26N/47E WS 67 876147 BLRV 2/18/2006 35, SE WS 68 920648 BLRV 2/172006 35/26N/47E WS 69 920649 BLRV 2/17/2006 35/26N/47E WS 70 920650 BLRV 2/17/2006 35,36/26N/47E WS 71 920651 BLRV 2/17/2006 36/26N/47E WS 72 876152 BLRV 2/18/2006 36, SW WS 73 920652 BLRV 2/17/2006 36/26N/47E WS 74 920653 BLRV 2/17/2006 36/26N/47E WS 75 920654 BLRV 2/17/2006 36/26N/47E WS 76 920655 BLRV 2/17/2006 36/26N/47E WS 77 920656 BLRV 2/17/2006 36/26N/47E WS 78 920657 BLRV 2/17/2006 36/26N/47E WS 79 920658 BLRV 2/17/2006 34/26N/47E 3/25N/47E WS 80 920659 BLRV 2/17/2006 34/26N/47E 3/25N/47E WS 81 920660 BLRV 2/17/2006 34/26N/47E 3/25N/47E WS 82 920661 BLRV 2/17/2006 34/26N/47E 3/25N/47E WS 83 920662 BLRV 2/17/2006 34/26N/47E 2,3/25N/47E WS 84 920663 BLRV 2/17/2006 34/26N/47E 2/25N/47E WS 85 920664 BLRV 2/17/2006 34/26N/47E 2/25N/47E WS 86 920665 BLRV 2/17/2006 34/26N/47E 2/25N/47E WS 87 920666 BLRV 2/17/2006 34,35/26N/47E 2/25N/47E WS 88 876168 BLRV 2/18/2006 5, SW WS 89 920667 BLRV 2/17/2006 35/26N/47E 2/25N/47E

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v

Claim NMC# Claimant

Location Date

Sec. Twn. Range

WS 90 920668 BLRV 2/17/2006 35/26N/47E 2/25N/47E WS 91 920669 BLRV 2/17/2006 35/26N/47E 2/25N/47E WS 92 920670 BLRV 2/17/2006 35/26N/47E 1,2/25N/47E WS 93 920671 BLRV 2/17/2006 35/26N/47E 1/25N/47E WS 94 876174 BLRV 2/18/2006 35, SE WS 95 920672 BLRV 2/17/2006 35/26N/47E 1/25N/47E WS 96 920673 BLRV 2/17/2006 35,36/26N/R47E 1/25N/47E WS 97 920674 BLRV 2/17/2006 36/26N/47E 1/25N/47E WS 98 920675 BLRV 2/17/2006 36/26N/47E 1/25N/47E WS 99 876179 BLRV 2/18/2006 35, SW WS 100 920676 BLRV 2/17/2006 36/26N/47E 1/25N/47E WS 101 920677 BLRV 2/17/2006 36/26N/47E 6/25N/48E WS 102 920678 BLRV 2/17/2006 36/26N/47E 6/25N/48E WS 103 920679 BLRV 2/17/2006 36/26N/47E 6/25N/48E WS 104 920680 BLRV 2/17/2006 36/26N/47E 6/25N/48E WS 105 920681 BLRV 2/17/2006 3/25N/47E WS 106 920682 BLRV 2/17/2006 3/25N/47E WS 107 920683 BLRV 2/17/2006 3/25N/47E WS 108 920684 BLRV 2/17/2006 3/25N/47E WS 109 920685 BLRV 2/17/2006 2,3/25N/47E WS 110 920686 BLRV 2/17/2006 2/25N/47E WS 111 920687 BLRV 2/17/2006 2/25N/47E WS 112 920688 BLRV 2/17/2006 2/25N/47E WS 113 920689 BLRV 2/17/2006 2/25N/47E WS 114 920690 BLRV 2/17/2006 2/25N/47E WS 115 920691 BLRV 2/17/2006 2/25N/47E WS 116 876196 BLRV 2/18/2006 2, NE WS 117 920692 BLRV 2/17/2006 2/25N/47E WS 118 920693 BLRV 2/17/2006 1,2/25N/47E WS 119 876199 BLRV 6/21/2004 1/25N/47E WS 120 920694 BLRV 2/17/2006 1/25N/47E WS 121 920695 BLRV 2/17/2006 1/25N/47E WS 122 920696 BLRV 2/17/2006 1/25N/47E WS 123 920697 BLRV 2/17/2006 1/25N/47E WS 124 920698 BLRV 2/17/2006 1/25N/47E WS 125 920699 BLRV 2/17/2006 1/25N/47E WS 126 920700 BLRV 2/17/2006 1/25N/47E 6/25N/48E WS 127 920701 BLRV 2/17/2006 3/25N/47E WS 128 920702 BLRV 2/17/2006 3/25N/47E WS 129 920703 BLRV 2/17/2006 3/25N/47E WS 130 920704 BLRV 2/17/2006 3/25N/47E WS 131 920705 BLRV 2/17/2006 2,3/25N/47E WS 132 920706 BLRV 2/17/2006 2/25N/47E WS 133 920707 BLRV 2/17/2006 2/25N/47E WS 134 920708 BLRV 2/17/2006 2/25N/47E

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vi

Claim NMC# Claimant

Location Date

Sec. Twn. Range

WS 135 920709 BLRV 2/17/2006 2/25N/47E WS 136 920710 BLRV 2/17/2006 2/25N/47E WS 137 876217 BLRV 6/22/2004 2/25N/47E WS 138 920711 BLRV 2/17/2006 2/25N/47E WS 139 920712 BLRV 2/17/2006 2/25N/47E WS 140 876220 BLRV 2/18/2006 1, NW, SW WS 141 920713 BLRV 2/17/2006 1/25N/47E WS 142 920714 BLRV 2/17/2006 1/25N/47E WS 143 920715 BLRV 2/17/2006 1/25N/47E WS 144 920716 BLRV 2/17/2006 1/25N/47E WS 145 920717 BLRV 2/17/2006 1/25N/47E WS 146 920718 BLRV 2/17/2006 1/25N/47E WS 147 920719 BLRV 2/17/2006 1/25N/47E WS 148 920720 BLRV 2/17/2006 1/25N/47E 6/25N/48E WS 149 920721 BLRV 2/17/2006 12/25N/47E 7/25N/48E

13/25N/47E 18/25N/48E WS 150 920722 BLRV 2/17/2006 2,3/25N/47E WS 151 920723 BLRV 2/17/2006 2/25N/47E WS 152 920724 BLRV 2/17/2006 2/25N/47E WS 153 920725 BLRV 2/17/2006 2/25N/47E WS 154 920726 BLRV 2/17/2006 2/25N/47E WS 155 920727 BLRV 2/17/2006 2/25N/47E WS 156 876236 BLRV 2/18/2006 2, SE WS 157 920728 BLRV 2/17/2006 2/25N/47E WS 158 920729 BLRV 2/17/2006 2/25N/47E WS 159 920730 BLRV 2/17/2006 1,2/25N/47E WS 160 920731 BLRV 2/17/2006 1/25N/47E WS 161 876241 BLRV 2/18/2006 1/25N/47E WS 162 920732 BLRV 2/17/2006 1/25N/47E WS 163 920733 BLRV 2/17/2006 1/25N/47E WS 164 920734 BLRV 2/17/2006 1/25N/47E WS 165 920735 BLRV 2/17/2006 1/25N/47E WS 166 920736 BLRV 2/17/2006 1/25N/47E WS 167 920737 BLRV 2/17/2006 1/25N/47E 6/25N/48E WS 168 920738 BLRV 2/17/2006 2,3,10,11/25N/47E WS 169 920739 BLRV 2/17/2006 2,11/25N/47E WS 170 920740 BLRV 2/17/2006 2,11/25N/47E WS 171 920741 BLRV 2/17/2006 2,11/25N/47E WS 172 920742 BLRV 2/17/2006 2,11/25N/47E WS 173 876253 BLRV 2/18/2006 2,11/25N/47E WS 174 920743 BLRV 2/17/2006 2,11/25N/47E WS 175 920744 BLRV 2/17/2006 2,11/25N/47E WS 176 876256 BLRV 2/18/2006 2, SE WS 177 920745 BLRV 2/17/2006 1,2,11,12/25N/47E WS 178 920746 BLRV 2/17/2006 1,12/25N/47E WS 179 920747 BLRV 2/17/2006 1,12/25N/47E

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vii

Claim NMC# Claimant

Location Date

Sec. Twn. Range

WS 180 920748 BLRV 2/17/2006 1,12/25N/47E WS 181 920749 BLRV 2/17/2006 1,12/25N/47E WS 182 920750 BLRV 2/17/2006 1,12/25N/47E WS 183 920751 BLRV 2/17/2006 1,12/25N/47E WS 184 920752 BLRV 2/17/2006 1,12/25N/47E WS 185 920753 BLRV 2/17/2006 1,6,7,12/25N/47E WS 186 920754 BLRV 2/17/2006 10,11/25N/47E WS 187 920755 BLRV 2/17/2006 11/25N/47E WS 188 920756 BLRV 2/17/2006 11/25N/47E WS 189 920757 BLRV 2/17/2006 11/25N/47E WS 190 920758 BLRV 2/17/2006 11/25N/47E WS 191 920759 BLRV 2/17/2006 11/25N/47E WS 192 920760 BLRV 2/17/2006 11/25N/47E WS 193 876273 BLRV 2/17/2006 11/25N/47E WS 194 920761 BLRV 2/17/2006 11/25N/47E WS 195 920762 BLRV 2/17/2006 11,12/25N/47E WS 196 876276 BLRV 2/17/2006 12/25N/47E WS 197 920763 BLRV 2/17/2006 12/25N/47E WS 198 920764 BLRV 2/17/2006 12/25N/47E WS 199 920765 BLRV 2/17/2006 12/25N/47E WS 200 920766 BLRV 2/17/2006 12/25N/47E WS 201 920767 BLRV 2/17/2006 12/25N/47E WS 202 920768 BLRV 2/17/2006 12/25N/47E WS 203 920769 BLRV 2/17/2006 12/25N/47E 7/25N/48E WS 204 920770 BLRV 2/17/2006 10,11/25N/47E WS 205 920771 BLRV 2/17/2006 11/25N/47E WS 206 920772 BLRV 2/17/2006 11/25N/47E WS 207 920773 BLRV 2/17/2006 11/25N/47E WS 208 920774 BLRV 2/17/2006 11/25N/47E WS 209 920775 BLRV 2/17/2006 11/25N/47E WS 210 876290 BLRV 2/17/2006 11, NE, SE WS 211 920776 BLRV 2/17/2006 11/25N/47E WS 212 920777 BLRV 2/17/2006 11/25N/47E WS 213 920778 BLRV 2/17/2006 11,12/25N/47E WS 214 920779 BLRV 2/17/2006 12/25N/47E WS 215 920780 BLRV 2/17/2006 12/25N/47E WS 216 876296 BLRV 2/17/2006 12/25N/47E WS 217 920781 BLRV 2/17/2006 12/25N/47E WS 218 920782 BLRV 2/17/2006 12/25N/47E WS 219 920783 BLRV 2/17/2006 12/25N/47E WS 220 920784 BLRV 2/17/2006 12/25N/47E WS 221 920785 BLRV 2/17/2006 7,12/25N/47E,48E WS 222 920786 BLRV 2/17/2006 10,11,14,15/25N/47E WS 223 920787 BLRV 2/17/2006 11,14/25N/47E WS 224 920788 BLRV 2/17/2006 11,14/25N/47E

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viii

Claim NMC# Claimant

Location Date

Sec. Twn. Range

WS 225 920789 BLRV 2/17/2006 11,14/25N/47E WS 226 920790 BLRV 2/17/2006 11,14/25N/47E WS 227 920791 BLRV 2/17/2006 11,14/25N/47E WS 228 920792 BLRV 2/17/2006 11,14/25N/47E WS 229 920793 BLRV 2/17/2006 11,14/25N/47E WS 230 920794 BLRV 2/17/2006 11,14/25N/47E WS 231 920795 BLRV 2/17/2006 11,12,13,14/25N/47E WS 232 920796 BLRV 2/17/2006 12,13/25N/47E WS 233 920797 BLRV 2/17/2006 12,13/25N/47E WS 234 920798 BLRV 2/17/2006 12,13/25N/47E WS 235 920799 BLRV 2/17/2006 12,13/25N/47E WS 236 920800 BLRV 2/17/2006 12,13/25N/47E WS 237 920801 BLRV 2/17/2006 12,13/25N/47E WS 238 920802 BLRV 2/17/2006 7,12,13,18/25N/47E,48E

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APPENDIX B

Drilling Summary

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i

2005 WENBAN SPRINGS DRILL LOG SUMMARIES WS-1 UTM ZONE 11, NAD 27 4435433N 530343E ELEV. 1745 M SEC 1 T25N R47E TD-950 FT -90 DEG DELONG DRILLING START 04-06-05 COMPLETION 04-16-05 0-480 QAL, GRAVELS 480-530 INTERBD BLK-OLIVE GRN SILTSTONE W/ WK FEOX 530-590 INTERBD SLTST/CHERT/ARGILL W/ FAULT 590-665 BK MUDSTONE , MOD SILICIF, WK DECALC, WK-MOD FEOX,

FGRND DISS PY 665-740 INTERBD CHT/MUDST/SILTST, BLK TO TAN, WK QTZ VNLTS 740-800 MED GREY CHERT W/ MICROFRACT OF CARBON/ FNGRND

SULFIDES 800-900 INTERBD CHERT/MUDST 900-950TD BLK SLTST-SHALE, MINOR FELSIC DIKES, WK SILICIF NOTES: WATER TABLE AT 100 FT, 60 GPM AT 660’, 100 GPM AT 810’ WS-2 UTM ZONE 11, NAD 27 4435389N 530870E ELEV. 5680 FT

SEC 1 T25N R47E TD-265 FT -90 DEG DELONG DRILLING START 04-21-05 COMPLETION 04-26-05

0-265 QAL, GRAVELS NOTES: SET CASING AT 40’, BLEW OUT CASING AND RESET CASING TO

100’, 120’, 160’, CONTINUED TO BLOW OUT. LOST HOLE IN QAL AT 265 FT

GEOCHEM: NO SAMPLES TAKEN WS-3 UTM ZONE 11, NAD 27 4435523N 529517E ELEV. 5875 FT

SEC 2 T25N R47E TD-640 FT -90 DEG DELONG DRILLING START 04-27-05 COMPLETION 05-11-05

0-115 QAL, GRAVEL 115-170 DK GREY CHERT W/ WK-MOD FEOX 170-225 BLK CARBONACEOUS SILTST, LOCALLY SHALEY 225-250 DK GREY CHERT W/ INTERBD SILTST 250-370 GREY SILICIF SILTST W/ INTERBD BLK CARBONAC SILTST 370-390 GREY CHERT INTERBD GREY SILICIF SILTST

390-640 GREY SILICIF SILTST W/ INTERBD BLK CARBONAC SILTST AND GREY CHERT. WK-MOD QTZ-CAL VNLTS @ 395-465’ AND 565-640’.

NOTES: WATER TABLE AT 25 FT, 50 GPM @ 600 FT, 150 GPM @ 640’, STUCK RODS AT 560’, ATTEMPTED TO BLAST PIPES FOUR TIMES, STILL LEFT PIPE IN HOLE.

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i

APPENDIX C

Rock Sampling

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i

Location Sample Northing Easting

Gold ppm

Description

BK-1 4,435,112.0

0 527,210.0

0 0.005 Float. Moderate iron oxide in chert and quartzite.

BK-2 4,437,078.00

524,931.00

<0.005 Quartzite, strong iron staining. Structure 320o/vert appears to control staining as host rock is gray.

BK-3 4,434,571.00

528,223.00

<0.005 Interbedded quartzite and chert. Moderate iron stain along NW trend.

BK-4 4,434,518.00

528,132.00

0.007 Float. Siliceous breccia with limonite after pyrite. Quartz after calcite.

BK-5 4,434,662.00

528,109.00

<0.005 Chert. Bedding 330o/75o N. Weak iron staining on bedding planes. Breccia, clast-supported,

BK-6 - - <0.005 Drill cuttings. Black limestone and chert with calcite veinlets.

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BULLION RIVER GOLD CORP

Wenban Spring Property

Regional Location

Scale: As shown Drawn by: EH

Date: Nov 2006 QP: E. Harrington Figure: 1

E. Harrington, B.Sc., P.Geo.

T25N, 26N R47E

CARLIN TREND

BATTLE MOUNTAIN-EUREKA TREND 40o -

I116o

I117o

GETC

HELL

TRE

ND

N

⋆WENBAN SPRING

Midas

CortezBuckhorn

Copper Canyon

Fire Creek

Gold Acres

Pipeline

Cortez Hills

VolcanicSedimentary

Gold Deposit Dominant Host Rock

Getchell

Pinson

Mule Canyon

Toiyabe

Marigold

Lone Tree

Ruby Hill

Gold Bar

Copper Basin

Gold Strike

Gold Quarry

Carlin

Rain/Emigrant Springs

Genesis/Blue Star

20 40 Kilometers

20 Miles0

0

North N

evada Rift

North Nevada Rift

Skarn Hill &Northwest Genesis

Keystone

Tonkin Springs

Twin Creeks

Betze Post

Map area

Map area

Nevada

Pediment

Page 274: SUMMARY REPORT FRENCH GULCH PROPERTYmore-ir.de/download/companies/bullion/Other Information... · MAP: French Gulch 7.5’ Quadrangle Lat: 40o 43' 24” N Long: 122o 41’ 19”W

BULLION RIVER GOLD CORP

Wenban Spring Property

WS Claim Locations

Scale: As shown Drawn by: EH

Date: Jan 2007 QP: E. Harrington Figure: 2

E. Harrington, B.Sc., P.Geo.

T25N, 26N R47E

5290

00 E

4432000 N

5300

00 E

4434000 N

4433000 N

N

1000 Meters

3000 Feet2000 10000

0 200 400 600 800

Topography USGS 7.5’ Quad. Wenban Spring, Dugout SpringContour Interval 40 feet

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BULLION RIVER GOLD CORP

Wenban Spring Property

CS and GV Claim Locations

Scale: As shown Drawn by: EH

Date: Jan 2007 QP: E. Harrington Figure: 3

E. Harrington, B.Sc., P.Geo.

T25N, 26N R47E

876543

91011121314

242322212019181734

252627282930313233

CSCSCS

CSCSCSCSCSCSCSCSCS

CSCSCSCS

CSCSCSCSCSCS

CSCSCSCS

CSCS

CSCS

282930313233

987654

101112131415

272625242322GVGVGVGV

GVGVGVGVGVGV

GVGV

GVGVGVGVGVGV

GVGV

GV GV GV GV

N

1000 Meters

3000 Feet2000 10000

0 200 400 600 800

WS Claim Group

5290

00 E

4432000 N

4431000 N

4430000 N

4429000 N

5300

00 E

Topography USGS 7.5’ Quad. Wenban SpringContour Interval 40 feet

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Wenban Spring

Map areaMap area

Nevada

(After B.B. Kotlyar, et al, 1998)

NI

116oI

117o

40o

Note: Color shading indicates rock density; warm colors indicate relativelydenser rocks, cool colors indicate relatively less dense rocks.

0

0

60 Miles

100 Kilometers

North N

evada Rift

Midas

BULLION RIVER GOLD CORP

Wenban Spring Property

Regional Compilation - Gravity

Scale: As shown Drawn by: EH

Date: Nov 2006 QP: E. Harrington Figure: 4

E. Harrington, B.Sc., P.Geo.

T25N, 26N R47E

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Map areaMap area

Nevada

(After B.B. Kotlyar, et al, 1998)

Note: Color shading indicates residual magnetic potential; warm colors indicate relatively more magnetic rocks, cool colors indicate relatively less magnetic rocks.

0

0

60 Miles

100 Kilometers

North N

evada Rift

Wenban Spring ⋆

Midas

116o

40o

117o

N

BULLION RIVER GOLD CORP

Wenban Spring Property

Regional Compilation - Magnetic

Scale: As shown Drawn by: EH

Date: Nov 2006 QP: E. Harrington Figure: 5

E. Harrington, B.Sc., P.Geo.

T25N, 26N R47E

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Land

er C

ount

y

Eure

ka C

ount

yOvi

Ovi

OviOvi

Ovi

Ovi

Ovi

Ov

10 Kilometers

6 Miles0

0

3

5

Gology of Lander County after: J. H. Steward and E. H. McKee, 1997

Geology of Eureka County after: R.J. Roberts, R.E. Lehner and M.M. Bell, 1967

N

Toiyabe⋆

Cortez Mine

Cortez Hills

Pediment

Wenban Spring Property

⋆Buckhorn

I116o30’

- 40o 00’

Horse Canyon

BULLION RIVER GOLD CORP

Wenban Spring Property

Regional Geology

Scale: As shown Drawn by: EH

Date: Nov 2006 QP: E. Harrington Figure: 6

E. Harrington, B.Sc., P.Geo.

T25N, 26N R47E

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Slaven ChertD

evon

ian

Silu

rian

Ord

ovic

ian

Dev

onia

nSi

luria

nO

rdov

icia

nC

ambr

ian

Roberts Mountains Formation

Wenban Limestone

Valmy / VininiFormations

Elder Sandstone

Hanson Creek Dolomite

Hamburg Dolomite

Eureka QuartziteRoberts Mountains Thrust - RMT

Horse Canyon

Pipeline

Cortez

Gold Acres

Toiyabe

Cortez Hills

RMT

Note: No vertical or horizontal scale implied

Stratigraphic location of gold deposit

BULLION RIVER GOLD CORP

Wenban Spring Property

Regional Stratigraphy CJV Area

Scale: As shown Drawn by: EH

Date: Nov 2006 QP: E. Harrington Figure: 7

E. Harrington, B.Sc., P.Geo.

T25N, 26N R47E

(After L. Smith, 2004)

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1000 Meters

3000 Feet0

0

BULLION RIVER GOLD CORP

Wenban Spring Property

Compilation

Scale: As shown Drawn by: EH

Date: Jan 2007 QP: E. Harrington Figure: 8

E. Harrington, B.Sc., P.Geo.

T25N, 26N R47E

N

Topography USGS 7.5’ Quad. Wenban Spring, Dugout SpringContour Interval 40 feet

CSAMT Line

Fault: mapped and inferred

◉WS-1

◉ Drill hole: location and designation

WS-1

◉ ◉WS-2

WS-3

Drill hole: proposed

7

6

5

4 3

Wenban Spring Property

Wenban Spring Property

◬◬◬◬

◬ Rock sample:location and numberBK-1

BK-1

BK-2

BK-3BK-4

BK-5