Mineral Assessment Report 19980014

Metallic and industrial mineral assessment report on the West Peace River Trend, diamond indicator geochemistry anomalies and the Hawk Hills Magnetic anomaly

Permit Holder: TUL Petroleums Ltd.

Authors: Stapleton, Murray J.

Executive Summary

Since 1993 TUL Petroleums Ltd. has been working the Peace River area - about fiveyears. Initially, the presence of Monopros/DeBeers working on a fifteen township block northwest of Peace River and a fifty-five township block between High Prairie and Teepee Creek was enough to encourage exploration in the region. At that time, locations of kimberlites were only rumoured to exist.

In 1994 Monopros filed Assessment Work Report ID19940001 which stated that a kimberlite had been delineated by ground magnetic survey at Mountain Lake in Township 74, Range24, West of the 5th Meridian northwest of Valleyview. A complete mineralogy investigation was done on the pipe by GSC.

By 1994 serious diamond exploration was underway by a number of companies, between Pelican Mountains and the Alberta-B.C. border, and in the Hinton-Rocky Mountain Foothills area.

TUL Petroleums acquired its first Alberta Metallic and Industrial Minerals Exploration Permits covering about 20 townships or 500,000 acres from Spirit River northeast towards Buffalo Head Hills. The Peace River lowlands and uplands Exploration Permits are located in townships 80 to 89 and ranges 1 to 13W6, or NTS map sheet 84D. The Hawk Hills Exploration Permits are in Townships 96 and 97; ranges 24 and 25W5, NTS mapsheet 84F/5. Most permits were staked along well defined faults like the Montagneuse Fault. These were mainly aligned in a southwest/northeast direction.

Conventional exploration methods included; soil sampling, stream sediment sampling and aero magnetic surveying; and picking and microprobe, for diamond indicator minerals Dims).

The results of TUL exploration over the first four year period was the discovery of good diamond indicator minerals and associated anomalous magnetic targets. Dims were centered on Montagneuse River Valley and Many Islands Creek, west of Fairview. It was thought that a new West Peace River Diamond Indicator Geochemistry Trend had been discovered. Good geochemistry near deep basement faulting and magnetic surveys suggested a broad northeast DIMs trend.

In 1997 Ashton Mining of Canada farmed in on a block of permits northwest of Pelican Mountains between Peerless Lake and Buffalo Head Hills. In that area the Alberta Geological Survey recovered soil sample NAT95-134, about 50 km northwest of Red Earth, which contained 27 G9 kimberlitic indicators. This location was in the Wabasca Dims Trend, near the centre of the Ashton lands. To date, Ashton has drilled at least24 kimberlites in the trend, several of which have proven to be diamond bearing. Some are thought to be associated with the northeast aligned South Peace River Fault.

By 1998 TUL had continued to work at Hawk Hills, and southwest toward Spirit River, to extend the West Peace River Trend north and south. Westward exploration up Peace River, west of Montagneuse and Many Islands, led to geochemistry and magnetic anomalies at Alces and Beaton rivers near Fort St. John.

TUL collected and researched geological and geochemistry information available for the region and did a gravel pit inventory and investigations. Whole-rock sampling and Rare Earths analysis followed. Exploration then was focused on the geochemical anomalies. Mapping and sampling of volcanic ashes, geochemistry and mineralogy were stacked onto magnetometer surveys and air photos. In November 1997, Montagneuse M3K1was drilled and interpreted as an intrusive. Likewise, near Beaton River.

Conclusions reached by TUL are; that volcanic events occurred in the Peace River District periodically since the Mid-Cretaceous. These were mainly associated with deep basement structure and northeast faulting. The axis of the Peace River Archway be the south boundary of diamondiferous intrusives. Ashes and indicator mineral geochemistry can be used to localise targets. GPS systems and GIS applications allow data stacking. Air photography and accurate magnetic surveys narrow the area of effort. The result is the possibility of interpreting pipe fabric and selecting correct drill targets.