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Mineral Properties

Athabasca Claims, British Columbia, Canada

In September, 2009, the Company signed an option to purchase the Athabasca group of claims, which includes the historic gold producer the Athabasca Mine. The property consists of ten reverted crown granted claims and five located claims.

Its history begins in 1896, when a gold bearing quartz vein (to become known as the Athabasca vein) was located on the slopes of Toad Mountain. The Athabasca Gold Mining Co. Ltd. secured $1,000,000 from British interests to develop the discovery. Ore was being shipped in 1897 and by 1901, the mine had produced over 435,449 g (14,000 oz) of gold from only 9,979 tonnes (11,000 tons) of ore.

In 1897 the ore was transferred via tram line to the Silver King smelter in Nelson. By 1898, an onsite stamp mill was constructed on Giveout Creek with ore extracted by means of amalgam plates. Recovery averaged less than 80 percent.

The mine was leased intermittently to various contractors between 1904 and 1934. During this interval, operators removed some of the remnant pillars and expanded a number of the old stopes. In 1933, there was an attempt to develop a new level 169 feet (51 meters) below the original workings. They did not reach the contact, but managed to obtain gold by reworking old dump material. There has been no record of mining or development work being carried out since 1943.

Historical records obtained from the British Columbia MINFILE Production Reports from the BC Geological Survey show the Athabasca producing over 622,069 g (20,000 ounces of gold) from approximately 19,958 tonnes (22,000 tons) milled during the late 1800’s and early 1900’s.

There is no evidence that mineralization diminishes with depth. The property has never been drilled.

Investors are cautioned in using any historical estimates or statements contained herein. There has been no major work including drilling that has occurred on the property since the inception of NI-43-101 except as noted in the Hellix news releases on this website.*

In our April 14, 2010 news release, Hellix stated a range of samples recently taken from the underground adit assayed from a low of 7.65 g/t (0.22 oz/ton) gold to a high of 213.0 g/t (6.2 oz/ton). Figures from our recent MD & A showed a different range. To clarify, the range stated in the April 14, 2010 news release was taking into account the two sampling programs that Hellix has recently performed on the Athabasca property including all five samples taken from the underground. The MD & A only referenced the second of the two underground sampling programs involving only three samples from the underground. The April 14, 2010 news release did not provide meaningful details about the number and type of samples collected, the area sampled, or other sample results. We did not state that the results in the news release were from a total of five grab samples collected from narrow vein widths and therefore are not likely representative of average vein grades over mineable widths. We did have a more comprehensive discussion of the sampling program in two prior news releases (October 6, 2009 and December 7, 2009), but did not reference them in the April 14, 2010 as required.

It was previously stated that the sampling from the underground tunnels carried out by Hellix was presumed to be from the #1 tunnel. It has now been established from our most recent program that this is in fact the #2 tunnel. The results below restate and update the sample locations and include all sample assay results.

The two sampling programs referred to above are outlined in detail as follows:

1. In August, 2009, six rock samples were taken from various sites on the property, including one of the Athabasca Mine tunnels. All samples returned gold values.

Sample #Au (Grams)Au (Ounces)
A-1 0.325 0.01
A-2 7.65 0.22
A-3 28.59 0.83
A-3-4N 3.49 0.10
A-3-4S 2.08 0.06
A-4 42.12 1.23

A-1 Grab - Outcrop on road

A-2 Chip - #2Tunnel approx. 120’ from entrance 8” width

A-3 Chip - #2 Tunnel approx. 140’ from entrance 2’ width

A-3-4N Chip – 2’ quartz vein app. 40’ in length North side of adit on GE claim

A-3-4S Chip – 2’ quartz vein app. 40’ in length South side of adit on GE claim

A-4 Grab – Dump

All samples were taken by a Hellix-employed contractor and secured for assay at certified laboratory Acme Analytical in Vancouver. Due to the possible presence of free gold all samples were subjected to a fire assay process. Samples A-1 through A-3-4S were tested for Au + 35 elements by fire assay (FA) and Inductively Coupled Plasma (ICP) with Aqua Regia Digestion (AgR). Sample A-3 was retested as it first assayed greater than 10.0 g/t. Sample A-4 was tested using a metallic fire assay process and larger sample weight. This method is more expensive but gives a more accurate reading, detecting more of the free gold in the rock. These samples were part of our initial due diligence and are not likely representative of average vein grades over mineable widths.

2. In October, 2009, the company commissioned a professional geologist for a site visit. A total of eight grab samples were collected. Only three samples were taken in the Athabasca Mine underground workings, all in the volcanics. The location was the #2 adit. These presented the best gold values and are shown below.

Sample #Au Grams/tAu Ounces/tAg Grams/tPb PPMZn PPM
8R25725928.70.8378.7116104.4
8R257260213.06.212128.0>100001058.6
8R25726151.71.50811.5150.448.9

8R257259 - Quartz vein; taken in adit about 75 metres in; 15cm thick vein with 7-10% fracture controlled pyrite; strong fracture controlled limonite; hosted by coarse grained augite porphyry
8R257260 25cm quartz-sulphide vein; 3-5% fracture-controlled pyrite; <1% fine grained unidentified dark grey sulphide
8R257261 25cm quartz vein; massive white quartz with moderate fracture controlled limonite; 3% fracture controlled pyrite

The five additional samples (not previously disclosed) taken from various sites at a distance from the Athabasca underground but within our property boundary are as follows:

Sample #Au Grams/tAu Ounces/tAg Grams/tPb PPMZn PPM
8R257255<0.03<0.00115.6760.9>10000
8R2572560.200.006100.03542.0>10000
8R2572570.040.0011.565.236.2
8R257258<0.03<0.0011.6127.258.5
8R2572620.700.0201.8668.9473.2

8R257255 - 85 cm thick banded qtz sulphide vein –continuous chip taken with hammer and moil GE adit
8R257256 - Character sample of sulphide-rich qtz vein material consisting of semi-massive to strongly fracture-controlled pyrrhotite, sphalerite in a 10cm thick pod within larger qtz vein described above GE adit
8R257257 - 25cm quartz vein with strong fracture-controlled limonite and 1-2% fracture-controlled pyrite
8R257258 - Same vein as above
8R257262 - Sample taken beside road; 10cm flat lying quartz vein with 3-5% coarse grained euhedral pyrite; vein at 270/40N

All samples were collected and secured by the geologist, then sent for assay to Eco Tech Laboratory Ltd., an established certified lab in Kamloops, British Columbia. Samples were tested for Au via metallic fire assay, and the 46 additional elements via Inductively Coupled Plasma (ICP). Note that these samples are selective and small in number and are not likely to be representative of average grades over mineable widths.

 
 

 

           
   
 

 

 
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