Schroeter - Prospectors and Developers Association of Canada

“Golden” Opportunties inBritish ColumbiaTom Schroeter, P. Eng./P. Geo.Senior Regional GeologistBC Ministry of Energy and MinesBRITISH COLUMBIAMinistry of Energy and Mines

1992–2002 2002 (Downside)• Huge decrease in exploration expenditures(i.e. $228 million in 1990 to $25 million in 1999)• Globalization (~1992) – greener pastures elswehere• Real / perceived poor business climate• Depressed metal prices• General lack of meaningful Fed./Prov. Tax incentives‣ Very little “systematic” explorationBRITISH COLUMBIAMinistry of Energy and Mines

1992–2002 2002 (Upside)• Superior database systems enhanced• Extensive network of new logging roads• Dramatic glacial retreat• “People Power” in Vancouver: Gateway to discoveries• New discoveries made‣ Great opportunitiesBRITISH COLUMBIAMinistry of Energy and Mines

2002-?? Bigger and Better Future• Metal prices recovering (esp. gold and copper)• New Gov’t tax incentives(e.g. METC and Super Flow-Through)• Vancouver: major international exploration centre• Free web based access to information (MapPlace)• Mining friendly Gov’t = improving investment climate• Lots of discoveries and new developmentsBRITISH COLUMBIAMinistry of Energy and Mines

Operating Mines In British Columbia2002Kemess South(Cu, Au)67MetalCoalEskay Creek(Au, Ag)Endako(Mo)BullmooseHuckleberry(Cu, Mo)Fording RiverGreenhillsLine CreekQuinsamMyra Falls(Cu, Zn, Au, Ag)Highland ValleyCopper (Cu, Mo)ElkviewCoal Mountain

G O L D:G O L D:G O L D::::G O L D:G O L D:G O L D::::

Gold Production in British Columbia• Placer (1858-2001)~ 5.6 million oz• Lode (1890-2001)~ 30 million oz– Nearly 1000 lode and 100 placerdeposits– > 7 major types of deposits• Lode production for 2002~ .67 million oz

BC Lode Gold Production (1890-2001)28,588,544 ozPorphyry –calcalkalic 11%Porphyry –alkalic 6%Veins –epithermal7%VMS 13 %Skarns 15%Veins –mesothermal 48%

BC Lode Gold Resources (2002)78,433,330 ozPorphyry –alkalic 12%Sedex1%Veins –epithermal 3%Veins -mesothermal35%Porphyry –calcalkalic 44%VMS 4%Skarns 1%

Auriferous Deposits in British ColumbiaDEPOSIT TYPESGalore CreekEskay CreekKerrPremierGolden BearToodoggoneCampKemessMt. MilliganPORPHYRY – CALCALKALICPORPHYRY – ALKALICVEIN – MESOTHERMALVEIN – EPITHERMALSKARNVMS / SUBAQ. HOT SPRINGSEDEXCariboo - BarkervilleBridge RiverIsland CopperAftonHighland ValleyCopperMyra FallsHedley0 100 200 300Kilometres(Schroeter and Pinsent, 2000)

Top Gold Producers in BC (1890-2001)DepositBridge River CampRossland CampHedley CampPremier CampEskay CreekGreenwood CampCariboo-BarkervilleCampIsland CopperSnipMyra Falls CampKemessTotal for top 25 producersAu production- oz4,160,0142,685,5502,467,1022,086,2041,973,1501,285,3101,232,0641,133,8771,071,160794,634780,80725,668,427 ozAg production- oz952,0843,544,296604,52542,997,52990,121,4989,974,194149,5219,455,705414,52226,243,931792,194322,031,554 oz

Gold Resources in BC (2002)DepositAu Production- ozAu Resources- ozTotal AuProsperity9,483,7569,483,756Kemess Camp780,8078,642,4879,423,294Bridge River4,160,014447,6804,607,694Mt. Milligan4,511,6934,511,693Sulphurets Camp4,433,5934,433,593Schaft Creek4,372,7974,372,797Galore Ck Camp4,036,1054,036,105Eskay Creek1,973,1501,775,4513,748,601Rossland Camp2,782,002502,8023,284,804Hedley Camp2,467,1026,7892,473,891Total for Top 2518,182,422 oz58,157,400 oz76,340,000 oz

Auriferous Porphyry DepositsSchaft CreekGalore CreekSulphuretsKerrRed-ChrisPineBellKemessLorraineMt. MilliganAURIFEROUSPORPHYRYDEPOSITS IN BCAlkalineCalcalkalineHuckleberryMount PolleyIsland CopperProsperityAftonHighland Valley CopperWillaSimilco

Cu/Mo/Au Ratios in Porphyry DepositsHighland Valley CopperNorth and SouthAmericanPorphyry CopperDepositsCuNormal range of Cu/Auratio for Cu porphyry depositsHigher AuSouth and West PacificPorphyry CopperDepositsMt. MilliganKemessCuMoCuAuMoAu

Porphyries - Calcalkaline• Island Copper (1971 - 1995)– 1.14 M oz Au• Highland Valley Copper– average 12,000 to 15,000 oz Au/yr• Kemess South (1998 - ?)– 300,000 oz Au/yr

Porphyries - CalcalkalineHIGHLAND VALLEY COPPERISLAND COPPER

KEMESS SOUTH (Au, Cu)Northgate Exploration• Continued improved mining, milling and transportationoperations significantly = first positive cash flow• 2002 Production: 282 300 oz Au, 73 million lbs Cu @ cash cost ~US$203/oz Au (net of Cu credits)• Life of mine operating costs @ US$150/oz Au(contained metals = 3.1 M oz Au and 1.6 B lbs Cu)• Milling rate = 48 000 TPD. 3 rd Qtr. production record Au. 50,300 tpdand 91% mill availability.• Jan. 1, 2002 Reserves: 132.6 MT @ 0.704 g/t Au; 0.233% Cu• Sig. Expl’n success @ Kemess North (5.5 km to N) expected toadd to overall “Kemess” mine life

KEMESS SOUTH (Au, Cu)Northgate ExplorationLooking NW over Kemess South

KEMESS SOUTH (Au, Cu)Northgate Exploration

KEMESS NORTH (Au, Cu)Northgate Exploration• 5.5 km N of Kemess South mine infrastructure• Current resource – 442 Mt @ 0.23% Cu and 0.4 g/t Au,incl. 185 Mt @ 0.275% Cu and 0.511 g/t Au• 2002: $5 million, 34 000m drilling program confirmedcontinuity and discovered Nugget zone(87 Mt @ .38g/t Au + 0.16% Cu)• Similar geol. setting to Kemess South, but withpotentially higher grades (hypogene)

KEMESS NORTH (Au, Cu)Northgate ExplorationNugget ZoneOpenInferred Resource ~ 6.6 M oz Au2.4 B lbs Cu

Porphyries – CalcalkalicRe-evaluations evaluations in progress / planned• Kerr/Sulphurets Gold(Noranda)• Willa (Orphan Boy)• Schaft Creek(TeckCominco / ??)• Gibraltar (Taseko Mines)

Porphyry Cu+/+/-Au+/+/-PdPd - Alkaline66 GoldZoneSouthernStar ZoneDWBX-WBXZoneMBX Zone

Porphyries – Alkaline• Galore Creek (Kennecott / Anglo American)– 284 Mt @ .67% Cu + .38 g/t Au, includingCentral Zone 125 Mt @ 1.06% Cu, .4 g/t Au + 7.7 g/t Ag

Porphyries – Alkalinev Mt. Milligan• Resource: 445 Mt @ .415 g/t Au + .215% Cu• Reserve: 257 Mt @ .51 g/t Au + .24% Cu(3.21 M oz Au + 1.1 B lbs Cu)• Mine Development Certificate (Placer Dome)• Bioleaching potential?

Porphyries – AlkalineMt. MilliganDeposits

Porphyries – Alkalinev Afton (Cu, Au, Pd) - DRC Resources• 34.3 million tonnes @ 1.55% Cu, 1.14 g/t Au, 3.42g/t Ag and 0.125 g/t Pd outlined prior to 2002• 2002 Drilling: 25 ddh ~ 10 000 metres• Mineralization traced > 1000m length and depths> 300m and extended to NE and SW• Pre-feasibility study in progress

AFTON ( Cu, Au, Pd)DRC Resources

Porphyries – Alkalinev Lorraine (Cu, Au) - Eastfield Resources• Large Alkaline Porphyry Copper–Gold target; strike lengthof known mineralization > 1.4km• 3 ‘centres’ of mineralization (Upper Main, Lower Main andBishop zones) may coalesce and continue to depth• DDH–01–60 intersected 113 m @ 0.76% Cu & 0.49g/t Au• 1998 resources: 32 MT @ 0.66% Cu and 0.17 g/t Au•Revision expected in 2003

LORRAINE (Cu, Au)Eastfield ResourcesLower Main ZoneUpper Main Zone

Auriferous Massive Sulphide DepositsTulsequah ChiefEskay CreekGranducAURIFEROUS MASSIVESUPHIDE DEPOSITS IN BCVOLCANOGENICBesshiCyprusKurokoSub-aqueous Hot-springGoldstreamSEDIMENTARY EXHALATIVEMyra FallsBritanniaSullivan

ESKAY CREEK (Au, Ag)Barrick Gold• ‘World-Class’ sub-aqueous hot-spring deposit type• 2002 Production: 366 000 oz Au, 16 M oz Ag• > than $1 800 per tonne (5 th largest Ag producer)• Cash operating cost ~ US$ 51/oz. Au, net of Ag credits• Jan. 1, 2002 Reserves:a) Direct Ship – 705 200 @ 65.5 g/t Au and 3036 g/t Agb) Mill – 761 800 @ 25.8 g/t Au and 1092 g/t Ag• Total inventory ~ 7.3 M oz. gold equivalent Mine Life: mid - 2008• Sig. drill intersection in FW rhyolite (22 zone): 64.1 g/t Au Equiv. over4.7m (part of 80.1m zone @ 6.2 g/t Au Equiv.)

ESKAY CREEK (Au, Ag)Barrick GoldLooking SW over Eskay Creek

ESKAY CREEK (Au, Ag)Barrick GoldEskay Creek Subaqueoushot-spring deposit model

ESKAY CREEK (Au, Ag)Barrick Gold

ESKAY CREEK (Au, Ag)Barrick GoldFinely banded oreBedded / laminated oreFolded oreBroken ore

FOREMORE (Pb,, Zn, Ag, Au, Cu)Roca Mines Inc.• Polymetallic volcanic-hosted massive sulphide• Devonian age (~ 350 Ma)• New discovery: SG zone• Alteration: Quartz, sericite, carbonate• Ore mineralogy: PbS, ZnS, py, cpy, tetrahedrite• Recent ice/snow melt = new exposures

FOREMORE - SG Zone

FOREMORE (Pb,, Zn, Ag, Au, Cu)Roca Mines Inc.SG Zone

MYRA FALLS (Cu, Zn, Au, Ag)Boliden-Westmin(Canada) Ltd.• 6 km long trend of VMS deposits,total inventory of ore > 30 Mt• Since 1996: > 22 Mt milled, > 800,000 oz Au,26 M oz Ag, 46 M kg Cu plus Pb + Zn• Looking for investment to increase production

MYRA FALLS (Cu, Zn, Au, Ag)Boliden-Westmin

Auriferous Mesothermal Vein DepositsPolarisTakuJohnnyMountainPorcher IslandTaurusTable MtnSnipRed MountainEquity SilverSELECTED AURIFEROUSMESOTHERMAL VEINDEPOSITS IN BCCariboo - BarkervilleSurf InletZeballosNorthairHarrison GoldBridge RiverElkYmirSheep CreekRosslandGreenwood veinsCoquihalla

Designated PlacerAreasHistoric GoldMining CampsPremierCaribooRosslandSheepCreekBralorneHedleyGreenwood

Bralorne - Pioneer• ~ 4.2 M oz produced• Current exploration, future mine development

CARIBOO GOLD QUARTZ (Au)International Wayside• Target: Auriferous replacement and vein mineralization• 2002 drilling tested several targets between the Bonanza Ledgezone and Mosquito Creek Gold mine.• Total indicated resource for the Bonanza Ledge, BC vein, andCow Mountain (Saunders, Pinkerton and Rainbow zones)= 6 645 600 tonnes @ 2.67 g/t Au• Total inferred resource = 1 858 000 tonnes @ 2.02 g/t Au• IWA preparing to re-enter the Environmental AssessmentProcess• Examining the possibility of open-pit mining all 3 areas, usinga central milling facility

CARIBOO GOLD QUARTZ (Au)International Wayside

CARIBOO GOLD QUARTZ (Au)International Waysidevein mineralizationreplacementmineralization

British Columbia Epithermal Model1985

Auriferous Epithermal Vein DepositsEngineerPaydirtSulphurets(BrucejackLake, Goldwedge)Golden BearHankTodd CreekToodoggoneCampSELECTED AURIFEROUSEPITHERMAL VEINDEPOSITS IN BCSpecognaPremierNew MoonLinquistTsachaBlackdomeWatson BarBrettMountWashingtonVaultDusty Mac

Toodoggone DistrictAl

Toodoggone District

TOODOGGONE DISTRICTLawyers Mine• 1989 millfeed – 0.32 opt Au & 7.24 opt Ag]• ’89 Original Reserve ~ 1.4MT @ 0.208 opt Au & 7.08 opt Ag

TOODOGGONE DISTRICTAl (Ranch)Thesis zonesBV

Toodoggone - AL (Ranch)36.8 ft @ 1.54 oz/t72.8 ft @0.81 oz/t

GOLDEN BEAR (Au)Wheaton River Minerals•Carlin - type deposit; localized high-grade native Au•Very successful seasonal (5 months) HEAP LEACH•Total heap leach prod. (1996 – 2001) = 265 000 oz Auat a cash cost of ~ $US 170/oz Au•Production peaked in 2000 at 94 000 oz Au•Good regional exploration potential

GOLDEN BEAR (Au)Wheaton River MineralsUrsa lst brecciaUrsa visible goldUrsa pit

Interior Plateau

INTERIOR PLATEAU- ClisbakoClassic epithermal textures

THORN (Ag, Au, Cu)Rimfire / First Au Strategies• High sulphidation epithermal vein / breccia(El Indio, Chile target – 6.2 M oz Au + 2 B lbs Cu)• > 30 massive sulphide veins, quartz-sulphideveins and vuggy silica-alunite veins over 5 x 5km area• Hosted by late Cretaceous granodiorite stock• Discovery of Oban Breccia pipe in 2002• Surface samples incl. 22.1 g/t Au and 2413 g/tAg (Tamdhu Vein)

THORN132 o 48’ WProperty Geology2 km1 mileLa Jaune CreekCamp CreekTHORNPROPERTYCirqueZone58 o 33’ NThornZoneOutlaw SoilAnomaly

High Sulphidation Veins (Sulphide-rich)2.1 m of 1.26% Cu,4.2 g/t Au, 320 g/t AgTamdhu VeinGrab -20.39 g/t Au,2580 g/t Ag, 23.9% CuGlenlivetVein12.05% Cu22.1 g/t Au2413 g/t Ag5 metresGrab – 2.97 g/t Au,1298 g/t Ag, 12.4% Cu15 cm

Oban Breccia Mineralization1.85 g/t Au, 1983 g/t Ag14.2% Pb, , 0.3% Zn1.92 g/t Au, 3206 g/t Ag,24.8% Pb, 19.6% Zn

KENA (Au)Sultan / Kinross• Approximately 20 km S of Nelson, by road• NEW intrusion-related gold prospect; one of five Au ± Cuzones within a 6 km long gold-in-soil anomaly• ‘Favourable’ Silver King monzodiorite porphyry traced for17 km; associated minerals – native Au, py, cpy, magnetite• Metallurgical tests indicate gold is non-refractory, withestimated recoveries 92-97%• Potential for large-tonnage, potentially heap leachable goldoperation, and high-grade (>1 opt Au) vein mining.

KENA (Au) - Sultan / Kinross

“BC – A Good GREATPlace toExplore and Develop”BRITISH COLUMBIAMinistry of Energy and Mines

‘Golden Opportunities’• Access to superior databases- e.g. MapPlace at www.em.gov.bc.ca/geology• GSB Geoscience Partnership Program• Gov’t tax incentive programs, e.g. METC and Super Flow-Through - net cost of $1000 investment = $383 – 2 nd lowest inCanada• Mining friendly Gov’t = Improving investment climate.• Infrastructure - roads, rail, ship, power• People - world leaders in expl’n/mining• $ - access to markets• Dramatic glacial retreat in past decade

Hope you find a pot of gold or whatever your target may be!