Property Location and Description

The Extra High property is located 60 km north from Kamloops B.C., Canada (Figure 1). Access to the property is by gravel logging roads to the 1,450 metre elevation. Access may be gained year round providing that the roads are plowed in the winter months. Snowfall averages about 1-2 metres through the winter. Water is readily available from a number of creeks, which run year round. A small 1 hectare pond near the north boundary of the property runs water all year.

Kamloops, which lies less than 1 hour drive south, is a major supply centre as well as manpower centre.

Fig. 1: Location map of the Extra High project.

Ownership

In 2004, Zab Resources Inc. (“Zab”), a company related to Colt Resources Inc. (“Colt”), acquired 35 Extra High claims (“Extra High property” or the “project”).

On January 21, 2008, Colt entered into an option agreement with Zab, whereby Colt has the right and option to acquire, in two separate equal tranches, Zab's 66% undivided interest in the Extra High property.

Pursuant to the Option Agreement, Colt exercised the first tranche of the option by making a cash payment of $250,000 to Zab and acquired from Zab a 33% undivided interest in the property. As a result of exercising the first tranche of the option, Colt now holds a 67% undivided interest in the property and has become the operator of the property.

For a detailed description of land tenure please refer to Murton (2006).

Geological Setting

The Extra High property is underlain by a NW trending package of rocks termed the Rea Assemblage. From east to west, the package consists of limestone, overlain by mafic flows and pyroclastic rocks, overlain by felsic volcanic rocks, chert, and pyritic sediments (which host the massive sulphide mineralization), which is in turn is overlain by turbidites, wackes and conglomerates.

Three mineralized structures cross the Extra High property with a NW to SE orientation. These zones are, from west to east, the Rea Zone, Silver Zone, and Twin Mountain Zone (Figure 2).

Exploration History

The property has had a long history of mineral exploration dating back to the 1890s. The Twin Mountain Zone has been explored intermittently since 1936 for copper, lead, and zinc sulphides with barite. Extensive trenching with two exploration tunnels plus soil sampling on the adjacent property indicated a strike length of over 4.5 km. Exploration programs in the 1980s by Apex Energy Corp / Austin Resources Corp. followed by an option to Falconbridge Copper (later Minova Inc.) disclosed a number of soil geochemical anomalies which trend NW across the property. Soil anomalies contain copper, lead, silver and zinc values with lesser gold values and extend for 1.6 km across the property, all the way to the northern boundary with the now closed Samatosum Mine.

The centrally located Silver Zone was discovered in the 1980s following the discovery of the Rea Gold Zone and the Samatosum Zone adjacent to the north. This ground was owned by the Kamad Silver Company Ltd., which explored up to 1985 and then optioned to Esso Minerals up to 1989. This was followed by Homestake Canada Ltd. acquiring an interest up to 1992.

The Rea Zone was similarly explored during the 1980s and early 1990s as part of a property wide program to attempt to extend the newly discovered Rea Horizon to the south east. The discovery of the Rea GoId volcanogenic massive suiphide lenses in 1983 and the Samatosum massive suiphide deposit in 1986 shifted the focus of exploration from the Homestake Bluffs, SE of the property, to the plateau area.

Geophysical surveys and diamond drilling were carried out on the Kamad 7 claim in 1983 and 1984 and identified massive sulphide mineralization on the Rea Horizon. In 1985, a company called 259146 B.C. Ltd. also drilled 5 holes totalling 369.7 metres into this new zone. In 1986, Esso Minerals Canada conducted an extensive geological, geochemical and geophysical evaluation of the Rea Horizon on the Kamad 7 and 8 claims. This was followed by trenching and 1,814 metres of diamond drilling. An additional 1,125 metres of diamond drilling were completed in 1987. In 1988, 2,094 metres of diamond drilling were completed and resulted in the discovery of the K7 massive sulphide lens.

Homestake Canada Ltd. acquired Esso’s interest in the property in 1989 and completed 4,972 metres of diamond drilling in 25 holes, 785 metres of trenching in 14 trenches, and 11 km of Genie EM geophysical surveys on the Kamad 7 and 8 claims. This work program tested the down dip continuation of the recently discovered K7 lens and successfully located the Rea horizon on the Kamad 8 claim to the east.

Homestake completed 2,961 metres of diamond drilling in 1990 and attempted downhole pulse EM geophysics.
 

Fig. 2: Geology map of the Extra High property (from Murton, 2006).

In 2004, Zab Resources Inc. acquired 35 Extra High claims. A diamond drilling program was carried out at the end of 2007 with successful results. A total of 1,293.59 metres of NQ diamond drilling were completed on the Rea Zone in the area of the K7 lens.

Since January 2008, when the partial ownership and exploration responsibility were transferred to Colt, no exploration work has been carried out.

Conclusions and Recommendations

J.W. Murton of J.W. Murton & Associates was contracted by Bronx Ventures Inc. in 2005 and by Zab Resources Inc. and Colt Resources Inc. in 2007 to design and implement exploration programs on the Extra High property to assess and verify earlier diamond drill results as well as, if possible, increase the geologically indicated mineralization revealed by previous operators. These exploration programs were completed during the periods May to December, 2005 and November to December, 2007.

In his Technical Report (NI 43-101) on the Extra High property dated February 28, 2006, J.W. Murton summarized past exploration, detailed the exploration program completed during 2005, and recommended further exploration on the property.

In his Report titled “Report on the 2007 Diamond Drilling Program Extra High Property” dated February 28, 2008, J.W. Murton summarized past exploration, detailed the exploration program completed during 2007, and recommended further exploration on the property.

Extracts of the Technical Report by J.W. Murton (2006) (currently a Director of Colt) are as follows:

“The primary exploration target on the Extra High claims remains the K7 lens and its lateral and depth extensions. Additional mineralized areas on strike to the south host earlier intercepts of important mineralization that warrant detailed drilling and trenching.”

“The interpretation of the recently acquired data plus consideration and inclusion (where appropriate) of historical data has resulted in a better understanding of the massive sulphide mineralization and its continuity, especially on the K7 lens.”

“Work completed on the K7 area of the Rea Zone including trenching and diamond drilling revealed good continuity of mineralization within the K7 lens over a strike length of 175 metres with a fault offset section of the same zone extending an additional 100 metres to the south at a 75 metre lower elevation…”

“The semi massive to massive polymetallic sulphide interval reaches thicknesses of up to 12.54 metres in hole 05-10 and 14.0 metres in an older hole (88047) which lies 10 metres higher in elevation than 05-10.”

“Faulting has played an important role in the disruption of the K7 lens and further work involving trenching and diamond drilling is required to more accurately locate these faults and their effect on continuity of the sulphide zones as well as the surrounding lower grade mineralized intervals.”

“The 2005 program of exploration both in the area around the K7 lens and on the K7 lens itself was very successful. It defined additional mineralization on the K7 lens and increased the confidence in the existing mineralization. The program also indicated new areas requiring further work to attempt to locate new zones of mineralization. In the writer’s opinion, the property remains an excellent exploration target with the potential to host one or more small open pit deposits in a near surface environment.”

Recommendations

Extracts of the Technical Report by J.W. Murton (2006) (currently a Director of Colt) are as follows:

“A Phase 1 program consisting of additional close spaced diamond drilling is warranted to further define the polymetallic massive K7 sulphide lens and its lower grade halo of mineralization. A number of step out holes are also recommended to attempt to extend the K7 mineralization to the south where earlier drill holes returned anomalous results.”

“If the Phase 1 program is successful and results are positive, a Phase 2 program would be justified. This program would entail additional diamond drilling to evaluate other areas of the property that are known to contain potentially important mineralization, particularly the Twin 3 lens, which lies 1.2 km to the south of the K7 lens. Some additional drilling may be justified to add to the confidence of the K7 lens.”

“An independent resource study should be completed to define the potential resource that may be outlined by the Phase 1 and previous drill programs. At the same time, metallurgical test work should be initiated to ascertain the possibility of developing a potential flow sheet and possible recoveries for a small, near surface high grade deposit like the K7 lens. The arsenic content of the mineralization requires careful study.”

Extracts of the Report on the 2007 Diamond Drilling Program on the Extra High Property by J.W. Murton (Murton 2008) (currently a Director of Colt) are as follows

“A diamond drilling program was carried out during Nov. 12 – Dec. 16, 2007 with successful results. A total of 1,293.59 metres of NQ diamond drilling were completed on the Rea Zone in the area of the K7 lens.

The positive results generated by the 2007 diamond drilling program warrant additional drilling on the property to further define the K7 mineralized structure to enable a resource calculation to be completed.” 

References

Murton, J.W., 2006, NI 43-101 Technical Report on the Extra High property 2005 Exploration Program, dated February 28, 2006.

Murton, J.W., 2008, Report on the 2007 Diamond Drilling Program Extra High Property, dated February 28, 2008.