Document:

Mineral Property Option Agreement

    

      MINERAL
        PROPERTY OPTION AGREEMENT 

       

      THIS
        AGREEMENT dated
        for
        reference the 28th
        day of
        September, 2005. 

       

      

      BETWEEN:
        STRIKER ENERGY CORP., a
        company
        incorporated pursuant to the laws of the State of Nevada with an office located
        at Suite 501 Terminal City Club, 837 West St. Vancouver BC V6C 3N6 

       

      ("Striker")
        

       

      

      AND:
         GEE-TEN
        VENTURES INC., a
        company
        incorporated pursuant to the laws of the Province of British Columbia and
        having
        an office at 620 - 475 Howe Street, Vancouver, British Columbia, V6C
        2B1;

       

      (“Gee-Ten")
        

       

      

      WHEREAS:
        

       

      A.
         Gee-Ten
        is the owner of a 100% beneficial right, title and interest in and to the
        Bald
        Mountain Claims, a group of mineral claims prospective for gold, which are
        located in Nye County, Nevada and are more particularly described in Schedule
        "A" attached hereto; 

       

      B.
         Gee-Ten
        wishes to grant to Striker the sole and exclusive right, privilege and option
        to
        acquire a 50% registered beneficial right, title and interest in and to the
        Bald
        Mountain Claims, subject to the terms and conditions hereinafter set forth;
        

       

      NOW
        THEREFORE THIS AGREEMENT WITNESSETH that
        in
        consideration of the mutual covenants and provisos herein contained,
THE
        PARTIES HERETO AGREE AS FOLLOWS: 

       

      

      1. GEE-TEN'S
        REPRESENTATIONS 

       

      1.1. Gee-Ten
        represents and warrants to Striker that: 

       

      
        	 	
                (a)

              	
                it
                  is the beneficial owner of the Bald Mountain Claims and holds the
                  right to
                  explore and develop the Bald Mountain Claims, subject to applicable
                  rules
                  and regulations of the State of Nevada and it is, or will be upon
                  closing
                  of the exercise of the Option granted hereunder, also the registered
                  owner
                  of the Bald Mountain Claims;

              

      

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

      to
        the
        best of Gee-Ten's knowledge, Gee-Ten holds the Bald Mountain Claims and clear
        of
        all liens, charges and claims of others; 

      

      
        	 	
                (b)

              	
                Gee-Ten
                  has a free and unimpeded right of access to the Bald Mountain Claims
                  and
                  has use of the Bald Mountain Claims surface for the purposes described
                  herein; 

              

      

      

      
        	 	
                (c)

              	
                the
                  Bald Mountain Claims have, to the best of Gee-Ten's knowledge,
                  been, or
                  will be prior to the closing of the exercise of the Option granted
                  hereunder,
                  duly and validly located and recorded in a good and miner-like
                  manner
                  pursuant to the laws of the State of Utah and are in good standing
                  in the
                  State of Utah as of the date of this Agreement;

              

      

      

      
        	 	
                (d)

              	
                Gee-Ten
                  is duly incorporated under the laws of Nevada and is a valid and
                  subsisting company in good standing under the laws of
                  Nevada;

              

      

      

      
        	 	
                (e)

              	
                Gee-Ten
                  has the right to transfer, convey, option and assign a 50% interest
                  in the
                  Bald Mountain Claims to Striker as contemplated in this Agreement;
                  

              

      

      

      
        	 	
                (f)

              	
                there
                  are no adverse claims or challenges against or to Gee-Ten's interest
                  in
                  the Bald Mountain Claims nor to the knowledge of Gee-Ten is there
                  any
                  basis therefor, and to Gee-Ten's knowledge, there are
                  no
                  outstanding agreements or options to acquire or purchase the Bald
                  Mountain
                  Claims or any portion thereof; 

              

      

      

      
        	 	
                (g)

              	
                Gee-Ten
                  has the full right, authority and capacity to enter into this Agreement
                  without first obtaining the consent of any other person or body
                  corporate
                  and the consummation of the transaction herein contemplated will
                  not
                  conflict with or result in any breach of any covenants or agreements
                  contained in, or constitute a default under, or result in the creation
                  of
                  any encumbrance under the provisions of any indenture, agreement
                  or other
                  instrument whatsoever to which Gee-Ten is a party or to which it
                  is
                  subject; and 

              

      

      

      
        	 	
                (h)

              	
                no
                  proceedings are pending for, and Gee-Ten is unaware of any basis
                  for, the
                  institution of any proceedings which could lead to the placing
                  of Gee-Ten
                  in bankruptcy, or in any position similar to
                  bankruptcy.

              

      

      

      
        	
                1.2.

              	
                The
                  representations and warranties of Gee-Ten set out in paragraph
                  1.1 above
                  form a part of this Agreement and are conditions upon which Striker
                  has
                  relied in entering into this Agreement and shall survive the acquisition
                  of any interest in the Bald Mountain Claims by
                  Striker.

              

      

      

      
        	
                1.3.

              	
                Gee-Ten
                  will indemnify Striker all loss, damage, costs, actions and suits
                  arising
                  out of or in connection with any breach of any representation,
                  warranty,

              

      

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

      covenant,
        agreement or condition made by Gee-Ten and contained in this
        Agreement.

      

      2. STRIKER'S
        REPRESENTATIONS 

       

      
        	
                2.1.

              	
                Striker
                  warrants and represents to Gee-Ten that it is a body corporate,
                  duly
                  incorporated under the laws of the Province of British Columbia
                  with full
                  power and a

                bsolute
                  capacity to enter into this Agreement and that the terms of this
                  Agreement
                  have been authorized by all necessary corporate acts and deeds
                  in order to
                  

                give
                  effect to the terms hereof. 

              

      

       

      
        	
                2.2.

              	
                Striker
                  will indemnify Gee-Ten from all loss, damage, costs, actions and
                  suits
                  arising out of or in connection with any breach of any representation,
                  covenant, 

                agreement
                  or condition made by Striker and contained in this Agreement.
                  

              

      

       

      

      3. GRANT
        OF OPTION 

       

      
        	
                3.1.

              	
                Gee-Ten
                  hereby gives and grants to Striker the sole and exclusive right
                  and option
                  (the to acquire a 100% undivided “Option” beneficial right, title and
                  interest in 

                and
                  to the Bald Mountain Claims, subject to any net smelter returns
                  royalty
                  which may apply to the Bald Mountain Claims.

              

      

       

      4. OPTION
        PRICE 

       

      
        	
                4.1.

              	
                Striker
                  shall exercise the Option, and acquire from Gee-Ten a 50% registered
                  beneficial right, title and interest in and to the Bald Mountain
                  Claims,
                  by making the 

                following
                  payments and exploration expenditures:

              

      

       

      
        	 	
                (a)

              	
                an
                  initial cash payment, of US$5,000;

              

      

      
        	 	
                (b)

              	
                making
                  exploration expenditures totaling US$200,000;on the Bald
                  

              

      

      Mountain
        Claims including the following minimum expenditures in the first two years
        of
        this Agreement; 

      
        	 	
                (c)

              	
                making
                  a cash payment of US$10,000 on the second anniversary of this
                  

              

      

      Agreement;
        

      
        	 	
                (d)

              	
                making
                  total exploration expenditures of US$500,000 by the end of the
                  third year
                  of this Agreement; and making all necessary 

                Nevada
                  Bureau of Land Management payments necessary to maintain the Bald
                  Mountain
                  Claims in good standing for the term of this Agreement.
                  

              

      

      

      (the
        payments and expenditures in (d) being, collectively, the Exercise Price"
        or the
“Option Price") 

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

      5.
         CONDITION
        PRECEDENT 

      

       

      5.1
         This
        Agreement is subject to its acceptance for filing with the TSX-Venture Exchange.
        

       

      

      
        	
                6.

              	
                RIGHT
                  TO ABANDON PROPERTY INTERESTS

              

      

       

      
        	
                6.1.

              	
                Should
                  Striker, in its sole discretion, determine that the Bald Mountain
                  Claims
                  no longer warrant exploration, development or production, then
                  Striker may
                  cease all work on the Bald Mountain Claims and, if the Option has
                  not yet
                  been exercised, may cease to make payments under section 4.1 hereof
                  so
                  long as Striker provides Gee-Ten with 90 days notice (the "Abandonment
                  Notice") of its intention to cease all work other than required
                  reclamation work. 

              

      

       

      6.2
         If
        the
        Abandonment Notice is given after the exercise of the Option, Gee-Ten may
        provide Striker with a notice indicating that its wishes to have all rights
        and
        title to the Bald Mountain Claims returned to it. Upon receipt of this notice,
        Striker agrees that it shall undertake all reasonably necessary acts
        to
        right
        and title to the Bald Mountain Claims to Gee-Ten. 

       

      
        	
                7.

              	
                TERMINATION
                  OF OPTION 

              

      

       

      
        	
                7.1.

              	
                Subject
                  to paragraph 7.2, the Option shall terminate if Striker fails to
                  make the
                  required cash payments or exploration expenditures in paragraph
                  4.1 within
                  the time periods specified therein.

              

      

       

      
        	
                7.2.

              	
                If
                  Striker shall be in default of any requirement set forth in paragraph
                  4.1,
                  Gee-Ten shall give written notice to Striker specifying the default
                  and
                  Striker shall not lose any rights granted under this Agreement,
                  unless
                  within 20 days the giving of notice of default by Gee-Ten, Striker
                  has
                  failed to cure the default by the appropriate performance.
                  

              

      

       

      
        	
                7.3.

              	
                If
                  the Option is terminated in accordance with paragraphs 7.1, 7.2
                  and 7.4
                  herein, Striker shall have no interest in or to the Bald Mountain
                  Claims,
                  and all expenditures and payments made by Striker to or on behalf
                  of
                  Gee-Ten under this Agreement, shall be non-refundable by Gee-Ten
                  to
                  Striker for which Striker shall have no recourse.
                  

              

      

       

      
        	
                7.4.

              	
                The
                  Option, and this Agreement, shall terminate if the Option is not
                  exercised
                  on or before that date which is three (3)
                  years
                  the date of this Agreement. 

              

      

       

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

      8. ACQUISITION
        OF INTERESTS IN THE PROPERTY 

      

       

      
        	
                8.1.

              	
                At
                  such time as Striker has paid the Option Exercise Price, within
                  the time
                  periods specified herein, then the Option shall be deemed to have
                  been
                  exercised by Striker, and Striker shall have thereby, without any
                  further
                  act, acquired an undivided 50% beneficial right, title and interest
                  in and
                  to the Bald Mountain

              

      

       

      
        	
                8.2.

              	
                Claims.
                  Upon the exercise of the Option, Gee-Ten shall assign 50% of its
                  rights to
                  the Bald Mountain Claims to Striker and agrees to perform all reasonably
                  necessary acts to register Striker's beneficial right, title and
                  interest
                  in and to 50% of the Bald Mountain Claims with the State of Nevada.
                  

              

      

       

      
        	
                8.3.

              	
                The
                  Property shall include, in addition to the Bald Mountain Claims
                  described
                  in Schedule "A" attached hereto, any claims registered by Gee-Ten,
                  its
                  directors, employees, agents and consultants which are contiguous
                  to the
                  Bald Mountain Claims or within a five (5) mile radius of the Bald
                  Mountain
                  Claims and shall further include any claims which are contiguous
                  to the
                  Bald Mountain Claims or within a five (5) mile radius of the Bald
                  Mountain
                  Claims which Gee-Ten or any of its directors, employees, agents
                  and
                  consultants have an interest, including a pecuniary interest.
                  

              

      

       

      
        	
                9.

              	
                RIGHT
                  OF ENTRY 

              

      

       

      
        	
                9.1.

              	
                For
                  so long as the Option continues in full force and effect, Striker,
                  its
                  employees, agents, permitted assigns and independent contractors
                  shall
                  have the sole and exclusive right and option to:
                  

              

      

       

      
        	 	
                (a)

              	
                enter
                  upon the Bald Mountain Claims; 

              

      

      

      
        	 	
                (b)

              	
                have
                  exclusive and quiet possession of the Bald Mountain Claims;
                  

              

      

      

      
        	 	
                (c)

              	
                incur
                  expenditures as described in paragraph 4.1;

              

      

      

      
        	 	
                (d)

              	
                bring
                  upon and erect upon the Bald Mountain Claims such mining facilities
                  as
                  Striker may consider advisable; and

              

      

      

      
        	 	
                (e)

              	
                remove
                  the
                  Bald Mountain Claims and sell or otherwise dispose of mineral products.
                  

              

      

      

      
        	
                9.2.

              	
                Nothwithstanding
                  paragraph 9.1, Gee-Ten shall have the right to enter upon the Bald
                  Mountain Claims and to review all of Striker's exploration and
                  development
                  work and have access to the Bald Mountain Claims at its own expense.
                  

              

      

       

      

      

      

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

      

      
        	
                10.

              	
                NET
                  SMELTER RETURNS ROYALTY

              

      
        	
                10.1.

              	
                The
                  parties hereto agree
                  that,
                  should commercial production occur on the Bald Mountain Claims,
                  they will
                  pay any net smelter royalties or State or Federal royalties and
                  taxes
                  which are applicable. 

              

      

       

      
        	
                11.

              	
                FURTHER
                  ASSURANCES 

              

      

       

      11.1 The
        parties hereto agree to do or cause to be done all acts or things reasonably
        necessary to implement and carry into effect the provisions and intent of
        this
        Agreement. 

       

      
        	
                12.

              	
                FORCE
                  MAJURE

              

      

       

      
        	
                12.1.

              	
                If
                  Striker is prevented from or delayed in complying with any provisions
                  of
                  this Agreement by reasons of strikes, labour disputes, lockouts,
                  labour
                  shortages, power shortages, fires, wars, acts
                  of
                  God, governmental regulations restricting normal operations or
                  any other
                  reason or reasons beyond the control of Striker, the time limited
                  for the
                  performance of the various provisions of this Agreement as set
                  out above
                  shall be extended by a period of time Nothing contained in this
                  Agreement
                  shall, except to the extent specifically authorized hereunder,
                  be deemed
                  to constitute either party hereto a partner, joint venture partner,
                  agent
                  or legal representative of the other party. equal in length to
                  the period
                  of such prevention and delay, and Striker, insofar as is possible,
                  shall
                  promptly give written notice to Gee-Ten of the particulars of the
                  reasons
                  for any prevention or delay under this paragraph, and shall take
                  all
                  reasonable steps to remove the cause of such prevention or delay
                  and shall
                  give written notice to Gee-Ten as soon as such cause ceases to
                  exist.

              

      

       

      

      
        	
                13.

              	
                ENTIRE
                  AGREEMENT 

              

      

       

      
        	
                13.1.

              	
                This
                  Agreement constitutes the entire agreement to date between the
                  parties
                  hereto and supersedes every previous agreement, communication,
                  expectation, negotiation, representation or understanding, whether
                  oral or
                  written, express or implied, statutory or otherwise, between the
                  parties
                  hereto with respect to the subject matter of this Agreement.
                  

              

      

       

      

      
        	
                14.

              	
                NOTICE
                  

              

      

       

      
        	
                14.1.

              	
                Any
                  notice required to be given under this Agreement shall be deemed
                  to be
                  well and given if delivered, or if mailed by registered mail, in
                  the case
                  of Gee-Ten addressed to them as
                  follows:

              

      

       

      Gee-Ten
        Ventures

      Suite
        620
        -475 Howe Street

      Vancouver,
        BC V6C 2B1

      

      and
        in
        the case of Striker addressed as
        follows:

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

      

      Striker
        Energy

      Suite
        501
        Terminal City Club, 837 West St.

      Vancouver
        BC V6C 3N6

      

      and
        any
        notice given shall be deemed to have been given, if delivered, when delivered,
        or if mailed by registered mail, on the fourth business day after the date
        of
        mailing thereof.

      

      
        	
                14.2.

              	
                Either
                  party hereto may time to time by notice in writing change its address
                  for
                  the purpose of this paragraph.

              

      

       

      

      
        	
                15.

              	
                OPTION
                  ONLY 

              

      

       

      
        	
                15.1.

              	
                Until
                  the Option is exercised, this is an option only and except as specifically
                  provided otherwise, nothing herein contained shall be construed
                  as
                  obligating Striker to do any acts or make any payments hereunder
                  and any
                  acts or payments made hereunder shall not be construed as obligating
                  Striker to do any further acts or make any further
                  payments.

              

      

       

      

      
        	
                16.

              	
                RELATIONSHIP
                  OF PARTIES

              

      

       

      
        	
                16.1.

              	
                Nothing
                  contained in this Agreement shall, except to the extent specifically
                  authorized hereunder, be deemed to constitute either party hereto
                  a
                  partner, joint venture partner, agent or legal representative of
                  the other
                  party.

              

      

      
        	
                16.2.

              	
                The
                  parties agree that, should the Option be exercised, they will forthwith
                  enter into a joint venture agreement the terms of which will be
                  mutually
                  agreeable and in accordance with resource industry standards.
                  

              

      

      

      
        	
                17.

              	
                TIME
                  OF ESSENCE 

              

      

       

      
        	
                17.1.

              	
                Time
                  shall be of the essence of this Agreement.

              

      

       

      

      
        	
                18.

              	
                CURRENCY
                  

              

      

       

      
        	
                18.1.

              	
                All
                  funds referred to under the terms of this Agreement shall be funds
                  designated
                  in the currency of the United States of America.
                  

              

      

       

      

      

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

      

       

      

       

      
        	
                19.

              	
                APPLICABLE
                  LAW 

              

      

       

      
        	
                19.1.

              	
                Except
                  as
                  applies
                  to the mineral claims laws of the State of Nevada, this Agreement
                  shall be
                  governed by the laws of the Province of British Columbia and the
                  parties
                  hereto agree to the courts thereof.

              

      

       

      

      20. ARBITRATION
        

      

      
        	
                20.1.

              	
                In
                  the event of a dispute between the parties regarding any provision
                  of this
                  Agreement, the parties hereto agree to submit the dispute to binding
                  arbitration under the terms of the Commercial Arbitration Act of
                  the
                  revised statutes of the Province of British Columbia [R.S.B.C.
                  1996
                  Chapter 55] or its successor. 

              

      

      

      
        	
                21.

              	
                ENUREMENT

              

      

       

      
        	
                21.1.

              	
                This
                  Agreement shall to the benefit of and be binding upon the parties
                  hereto
                  and their respective successors and assigns.

              

      

       

      

      
        	
                22.

              	
                ASSIGNMENT
                  

              

      

       

      
        	
                22.1.

              	
                Striker
                  shall have the right to assign, in whole or in part, its rights
                  under the
                  terms of this Agreement provided that any person to whom it makes
                  an
                  assignment agrees to be bound by the terms of this Agreement.
                  

              

      

       

      IN
        WITNESS WHEREOF this
        Agreement has been executed as
        of
        the
        day and year first above written. 

      

      GEE-TEN
        VENTURES     STRIKER
        ENERGY CORP. 

       

      /s/
        Lee
        Balak, Authorized Signor          /s/
        Shawn
        R. Perger, President 

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

      SCHEDULE
        "A" 

       

      THE
        BALD
        MOUNTAIN CLAIMS 

       

      

       

      
        	
                Name
                  of Claim

              	
                BLM
                  Serial #

              
	
                AAA
                  5-96

              	
                NMC-747383

              
	
                AAA
                  6-96

              	
                NMC-747384

              
	
                AAA
                  7-96

              	
                NMC-747385

              
	
                AAA
                  8-96

              	
                NMC-747386

              
	
                AAA
                  49-96

              	
                NMC-747387

              
	
                AAA
                  50-96

              	
                NMC-747388

              
	
                AAA
                  3-97

              	
                NMC-781094

              
	
                AAA
                  4-97

              	
                NMC-781095

              
	
                AAA
                  9-97

              	
                NMC-781096

              
	
                AAA
                  10-97

              	
                NMC-781097

              
	
                AAA
                  11-97

              	
                NMC-781098

              
	
                AAA
                  46-97

              	
                NMC-781099

              
	
                AAA
                  56-97

              	
                NMC-781100

              
	
                AAA
                  58-97

              	
                NMC-781101

              
	
                AAA
                  60-97

              	
                NMC-781102

              
	
                AAA
                  62-97

              	
                NMC-781103

              
	
                A101

              	
                NMC-849901

              
	
                A102

              	
                NMC-849902

              
	
                A103

              	
                NMC-849903

              
	
                A104

              	
                NMC-849904

              
	
                A105

              	
                NMC-849905

              
	
                A106

              	
                NMC-849906

              
	
                A107

              	
                NMC-849907

              
	
                A108

              	
                NMC-849908

              
	
                A109

              	
                NMC-849909

              
	
                A110

              	
                NMC-849910

              
	
                A111

              	
                NMC-849911

              
	
                A112

              	
                NMC-849912

              
	
                A113

              	
                NMC-849913

              
	
                A114

              	
                NMC-849914

              
	
                A115

              	
                NMC-849915

              
	
                A116

              	
                NMC-849916

              
	
                A117

              	
                NMC-849917

              
	
                A118

              	
                NMC-849918

              
	
                A119

              	
                NMC-849919

              
	
                A120

              	
                NMC-849920

              
	
                A121

              	
                NMC-849921

              
	
                A122

              	
                NMC-849922

              
	
                A123

              	
                NMC-849923

              
	
                A124

              	
                NMC-849924

              
	
                A125

              	
                NMC-849925

              
	
                A126

              	
                NMC-849926

              

      

      

       

      

      
        
          
          

        

        
          9Bald Mtn. Geological Report

    SUMMARY
      of the following for BALD MOUNTAIN WASH (BMW) GOLD PROPERTY, NYE COUNTY, NEVADA.
      

     

    Quick
      Points:

    
      	·  	
              Owner
                is Gee-Ten Ventures Ltd. (a royalty is held by Verley, Godwin &
                Sinitsin). 

            

    

    
      	·  	
              BMW
                is strategically close to the Round Mountain gold mine, the largest
                volcanic hosted deposit in the world (Figs. 1 and 3)!
                

            

    

    
      	·  	
              Property
                consists of claims, each 1500 feet by 600 feet (Fig.
                2).

            

    

    
      	·  	
              Past
                drilling by Algom yielded significant gold intersections in the Nern
                part
                

            

    

    of
      the
      claim group (Table 2 and point "A" in Fig. 5). 

    
      	·  	
              Total
                of past exploration expenditures is about Cdn$300,000
                (Table 1). 

            

    

    
      	·  	
              High
                level volcanic geology is compatible with epithermal gold deposits
                (Figs.
                3, 4
                and
                7). 

            

    

    
      	·  	
              Coincident
                geochemistry and resistivity anomalies (Figs. 5,6 and 7) allows
                

            

    

    targeting
      of drill holes (Table 3). 

    
      	·  	
              Roughly,
                Phase 1 drilling should cost about US$300,000 (Cdn$200,000) low ball
                estimated using reverse circulation drilling in Table 4). Phase 2
                drilling, 

            

    

    contingent
      on success in Phase 1 program, should cost about US$300,000-500,000 (Table
      5).
      (Some, at least, of the drilling should be of the more expensive diamond
      drilling type-hence the higher suggested costs.)

    
      	·  	
              Mineralization
                model involves: (i) US$300-500,000 gold replacement [currently known
                mineralization] and (ii) deep bonanza grade mineralization, as at
                the Ken
                Snyder mine in northern Nevada, along silicified profound structures;
                as
                supported by the continuous, strong resistivity anomaly, and continuous,
                coincident geochemical anomalies. 

            

    

    

    The
      following figures have been cut out of a lengthy Technical Report that can
      be
      used in any effort made to raise money. The Technical Report is entitled:
      "Report on 2004 Exploration on the Bald Mountain Wash Gold Property, Nye County,
      Nevada, USA". It is authored by Peter A. Christopher, PhD, PEng of Peter
      Christopher & Associates Inc., and is dated 29th
      July
      2003.

     

    

    

    Summary
      prepared by

    

    /s/“Colin
      I. Godwin”

    ____________________________

    Colin
      I.
      Godwin, PhD, PEng, PGeo

    Professor
      Emeritus

    Department
      of Earth and Ocean Services

    The
      University of British Columbia

    2005-07-19

     

     

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    TABLE
      1.
      MAJOR
      PAST EXPLORATION COSTS ON BALD MOUNTAIN 

    WASH
      GOLD
      PROPERY. 

     

    

     

    
      	
              COMPANY

               

            	
              YEAR

               

            	
              EXPLANATION

               

            	
              US$

               

            	
              CDN$

               

            
	
              Ricafuerte

               

            	
              1989

               

            	
              Mapping
                and geochemical sampling

               

            	 	
              $5,300

               

            
	
              Ricafuerte

               

            	
              1991

               

            	
              Reverse
                circulation drilling (5 holes), assaying, etc.

               

            	 	
              63,550

               

            
	
              Rio
                Algom

               

            	
              1992

               

            	
              Reverse
                circulation drilling (10 holes), assaying, mapping and geochemical
                sampling, etc.

               

            	
              $70,557

               

            	
              111,475

               

            
	
              Rio
                Algom

               

            	
              1993

               

            	
              Reverse
                circulation drilling (2 holes), assaying, etc.

               

            	
              15,000*

               

            	
              23,700

               

            
	
              Gee-Ten

               

            	
              1997

               

            	
              Induced
                polarization/resistivity/magnetic surveys

               

            	
              10,450

               

            	
              16,511

               

            
	
              Gee-Ten

               

            	
              2003

               

            	
              Soil
                and vegetation geochemical surveys & induced
                polarization/resistivity/magnetic surveys

               

            	 	
              100,000

               

            
	
              TOTAL
                IN CANADIAN DOLLARS

               

            	 	 	 	
              317,500

               

            

    

    

     

    

    Notes:
      *
      is
      estimated cost; conversion factor for US$ to CDN$ used was 1.58.

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    TABLE
      2.
Significant
      drill intercepts of gold in the area marked "A"
      in
      Figure
      5. 

     

    
      	
              Hole
                No.

               

            	
              Interval
                in ft
                (m)

               

            	
              Width
                in ft
                (m)

               

            	
              True
                Width in ft
                (m)

               

            	
              Au
                ppb*

               

            	
              Au
                ozlt

               

            	
              Composites
                Au ozlt

               

            
	
              91-2

               

            	
              70-1
                20

              (21.3-36.6)

            	
              50

              (15.2)

            	
              same

               

            	
              709

               

            	
              0.021

               

            	
              0.012

               

            
	
              91-2

               

            	
              220-280

              (67.1-85.4)

            	
              60

              (18.3)

            	
              same

               

            	
              858

               

            	
              0.025

               

            	
              0.034

               

            
	
              91-3

               

            	
              75-125

              (22.9-38.1)

            	
              50

              (15.2)

            	
              same

               

            	
              1142

               

            	
              0.033

               

            	
              0.019

               

            
	
              91-5

               

            	
              0-35

              (0-10.7)

            	
              35

              (10.7)

            	
              same

               

            	
              553

               

            	
              0.016

               

            	
              -

               

            
	
              91-5

               

            	
              105-170

              (32.0-51.8)

            	
              65

              (19.8)

            	
              same

               

            	
              884

               

            	
              0.026

               

            	
              0.023

               

            
	
              91-5

               

            	
              225-260

              (68.6-79.2)

            	
              35

              (10.7)

            	
              same

               

            	
              593

               

            	
              0.017

               

            	
              -

               

            
	
              91-6

               

            	
              0-35

              (0-10.7)

            	
              35

              (10.7)

            	
              same

               

            	
              989

               

            	
              0.029

               

            	
              -

               

            
	
              BMW-3

               

            	
              260-290

              (79.3-88.4)

            	
              30

              (9.1)

            	
              same

               

            	
              458

               

            	
              0.013

               

            	
              -

               

            
	
              BMW-9

               

            	
              290-300

              (88.4-91.4)

            	
              10

              (3.0)

            	
              same

               

            	
              670

               

            	
              0.020

               

            	
              -

               

            

    

    

    *
      Fire
      assay from 2 assay ton sample. **True width is approximately the same in
      vertical holes, based on shallow 10 degree dip of
      beds;
      inclined holes are approximately perpendicular to bedding, and therefore, width
      are true.

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    WORK
      RECOMMENDATIONS 

     

    Summary
      Recommendation of Two Phases of Work

     

    A
      two-phase reverse circulation drill program with drill holes targeted mainly
      on
      geophysical criteria is proposed. The total cost of the two phases is estimated
      at CDN$ 750,000 (CDN$ = Canadian dollars). 

     

    The
      first
      phase program consists of seven reverse circulation drill holes totaling 8,000
      feet (2440 m) is proposed. These holes are targeted mainly on anomalous induced
      polarization/resistivity/magnetic geophysical survey results (Table 18.3).
      In
      addition, surface mapping and sampling should be carried out in order to gain
      an
      understanding of structural and alteration controls affecting mineralization.
      The cost of the first phase is estimated at CDN$250,000. 

     

    

     

    TABLE
      3.
      First phase drill holes selected on geophysical and geochemical data.

     

    
      	
              HOLE
                

              Grid

              Coordinates
                

            	
              LENGTH

              FEET
                

              (meters)

            	
              ORIENT-

              ATION
                

            	
               

              SELECTION
                CRITERIA

            
	
              2003-1

              17200N,
                8200E

            	
              1000

              (305)

            	
              -60O/090O

            	
              High
                geophysical priority. Coincident resistivity high and gold is soils
                high:
                Test vertical gold-bearing vein.

            
	
              2003-2

              17200N,
                8600E

            	
              1000

              (305)

            	
              -60O/090O

            	
              High
                geophysical priority. Coincident resistivity high and gold is soils
                high.
                Test vertical structure/vein and associated gold
                mineralization.

            
	
              2003-3

              16700N,
                7900E

            	
              1000

              (305)

            	
              -60O/090O

            	
              High
                geophysical priority. Coincident resistivity high and gold is soils
                high.
                Test vertical structure/vein and associated gold mineralization.
                

            
	
              2003-4

              16200N,
                7900E

            	
              1000

              (305)

            	
              -60O/090O

            	
              High
                geophysical priority. Coincident resistivity high and gold is soils
                high.
                Test vertical structure/vein and associated gold mineralization.
                

            
	
              2003-5

              15800N,
                8200E

            	
              1000

              (305)

            	
              -60O/090O

            	
              High
                geophysical priority. Resistivity high. Test vertical 

              Structure/vein
                and associated gold mineralization. 

            
	
              2003-6

              15800N,
                8200E

            	
              1000

              (305)

            	
              -60O/090O

            	
              High
                geophysical priority. Resistivity high. Test vertical 

              Structure/vein
                and associated gold mineralization. 

            
	
              2003-7

              13800N,
                8400E

            	
              1000

              (305)

            	
              -60O/090O

            	
              High
                geophysical priority. Resistivity high. Test vertical 

              Structure/vein
                and associated gold mineralization. 

            
	
              2003-8

              13800N,
                8400E

            	
              1000

              (305)

            	
              -60O/270O

            	
              High
                geophysical priority. Resistivity high. Test vertical 

              Structure/vein
                and associated gold mineralization.

            

    

    

    The
      second phase 15,000 foot (4,600 m) follow-up reverse circulation drilling
      program, 

    contingent
      upon success of the Phase 1 program, is proposed to further explore and
extend
      the potential of the property as established by Phase 1.
      The
      cost
      of the second phase is estimated at CDN$500,000. 

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    Recommendation
      of Phase One Work 

     

    Table
      4
      estimates costs of the first phase drilling of holes proposed in Table 4. The
      eight reverse circulation holes will cost about CN$250,000. 

     

    TABLE
      4.
      Estimated
      costs of first phase drilling. 

     

    
      	
              DRILL
                HOLES 

            	
               DESCRIPTION
                

            	
               TOTAL
                LENGTH 

            	
              APROXIMATE
                COST

            
	
              FIRST
                PHASE REVERSE CIRCULATION HOLES

            	
               8
                HOLES
                

            	
              8,000
                FT 

            	
              CN$225,000

            
	
               

            	
               

            	
               

            	 
	
              PERMITTING,
                RECORDING FEES, ETC.

            	
               

            	
               

            	
              10,000

            
	
              CONTINGENCY
                

            	
               

            	
               

            	
              15,000

            
	
              FIRST
                PHASE TOTAL IN CANADIAN DOLLARS

            	 	 	
              250,000

            

    

     *Drilling,
      assaying and supervision estimated at about US$2 1.00Ifoot (CN$ 

    

     

    Recommendation
      of Phase Two Work 

     

    A
      second
      phase of reverse circulation drilling is contingent upon success in the first
      phase drilling (Tables 4). The objective will be to define, by step-out
      drilling, tonnage potential of discoveries identified in the first phase
      drilling program. A minimum of ten holes is recommended. 

     

    Table
      5
      of estimated costs of the second phase drilling totals about CN$ 180,000.
A
      somewhat
      high contingency allows for a
      slightly
      expanded program, given success during the program. 

     

    TABLE
      5.
      Estimated costs of contingent second phase. 

     

    
      	
              DRILL
                HOLES

               

            	
              DESCRIPTION

               

            	
              TOTAL
                LENGTH

               

            	
              APROXIMATE
                COST

               

            
	
              SECOND
                PHASE REVERSE CIRCULATION HOLES

               

            	
              15
                HOLES

               

            	
              15,000
                FT

               

            	
              CN$4,600,000*

               

            
	
              PERMITTING,
                ETC.

               

            	 	 	
              10,000

               

            
	
              CONTINGFNCY

               

            	 	 	
              30,000

               

            
	
              SECOND
                PHASE TOTAL IN CANADIAN DOLLARS

               

            	 	 	
              500,000

               

            

    

    *Drilling,
      assaying and supervision estimated at about US$22.72/foot
      (CN$30.70/foot).

    

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    Opinion
      that Property is of Sufficient Merit to Justify Work 

    Recommended
      

     

    A
      geological model for the property has been proposed that indicates significant
      tonnage could be found in either replacement, manto-type gold deposits or
      associated with higher grade low sulphidation epithermal veins. Past sampling
      of
      soils, surface rocks in trenches and samples from drilling indicate that
      significant gold grades occur locally. Blind vein deposits have not been
      adequately tested for on the property, despite results that are interpreted
      as
      indicating their existence. Thus, it is believed that there is good potential
      for locating an economic gold deposit on the Bald Mountain Wash gold property.
      The writer is of the opinion that the recommended program is warranted, and
      has
      sufficient merit to justify the investment.

    

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    

      

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

       

      
        8

        
          

        

      

      
        
        

      

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

      

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

      

       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

      

       

    

    
      
        
        

      

      
        13

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