Palisades Geologic Report 2002

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Information about Palisades Geologic Report 2002

Published on January 31, 2016

Author: KurtHoffman4

Source: slideshare.net

1. CONFIDENTIAL STRUCTURAL ORE CONTROL EVALUATION PALISADE MINE PROSPECT COUNTY, IDAHO FOR CADENCE RESOURCES, INC. BY DWIGHT S. JURAS, Ph. D Registered Professional Geologist 65-82 160th Street, Ste 4B Flushing, NY 11365 (718) 969-7807 email dsjuras@msn.com June 25, 2002

2. 2 TABLE OF CONTENTS SUMMARY AND CONCLUSIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Location . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Disclaimer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 STRUCTURAL ORE CONTROLS . . . . . . . . . . . . . . . . . . . . . . . 4 Geologic Setting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Palisade Veins . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 The Blacksmith Shop Vein and Similar Veins . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Jersey Type Veins . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 The Big Iron Vein . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Cross Type Veins . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Section D-D (N45W)and Revett - St. Regis Rocks . . . . . . . . . . . . . . . . . . . . . . . 9 Section E-E . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Drill Targeting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 More on the Rocks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Dike Rocks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 DISCUSSION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 REFERENCES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 QUALIFICATIONS AND SIGNATURE . . . . . . . . . . . . . . 13 APPENDIX . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

3. 3 SUMMARY AND CONCLUSIONS The veins within the Palisade mine prospect indicates that this property geologicallyis part of the Coeur d Alene Mining District. The Palisade mine prospect contains the same major vein types that have been prolific for silver and base metal ore in the Coeur d Alene Mining District. Some of the veins may actually be the extensions of the same veins in the Silver Belt. The veins in the Palisade mine prospect also lie in the Precambrian St. Regis Formation, possibly even the transition zone of the Revett Formation, which have been the most prolific rocks of the Coeur d Alene Mining District. At depth the veins zones will enter the more favorable massive quartzites, which dominate the 1800 foot thickness of the shallowly dipping Revett Fm below. The distribution of the veins (vein density) on the property is as high as or higher than many major mines in the Coeur d Alene Mining District. The siderite veins that outcrop on the property are predominately steeply to vertical dipping, Sunshine (WNW to EW-striking) and Jersey (ENE-striking) type veins that have been the most prolific vein types of the Coeur d Alene Mining District for lead (galena) and silver (tetrahedrite). In addition, Bluebird (NW-striking) and Cross (N-striking) type veins, which also are prolific veins of the Coeur d Alene Mining District are also present. Although the veins are not within the silver-bearing tetrahedrite depth zone at the surface, high silver/lead ratios suggests that some veins will have those characteristics within a relatively short depth. Because of vein characteristics, the types of veins, vein density, and evidence for silver-bearing tetrahedrite below, the Palisade mine prospect should be explored to the tetrahedrite depth zone in the Revett Fm. The report provides alternative methods for exploration. INTRODUCTION John Ryan of Cadence Resources sent the data on the Palisade mine prospect in June, 2002, and I evaluated the property data in the course of about 3-4 days. Location The Palisade mine prospect lies southwest of the Pine Creek Mining Segment of the Coeur d Alene Mining District, 8 miles southwest of the Page and the Bunker Hill Mines. The property extends for over 3 miles east-southeast of the Twin Crags Peak, which is at the headwaters of the West Fork of Pine Creek, south of the city of Pinehurst, Idaho. Disclaimer This report represents a summary of the pertinent data supplied to me in private and published reports and includes my own analysis of the data in their maps, sections and sketches. I deem that the data is accurate. This report makes no affirmation of the ownership of the claims.

4. 4 STRUCTURAL ORE CONTROLS Geologic Setting The Palisade mine prospect lies on the SW side of the large Pine Creek anticline on the east dipping limb of a broad NS trending syncline (neither shown on Figure 1). As expected, the Revett quartzites lie up-dip to the west and where faults have brought it to the surface elsewhere, i.e. to the east on the east side of the West Fork Fault. Generally, the east dipping rocks in the Palisade workings area show a broad curvature that is due to a broad E-plunging, EW trending synclinal fold, in addition to the surface traces of NW and NE to ENE trending folds on the USGS map by Campbell and Good (1963, Fig. 1). A very large, EW-trending synclinal fold (marked incorrectly as WNW-trending) also lies just north of the Schmidt fault to the north. Understanding the various vein types on the property is essential for understanding the prospect. The associations of veins to folds in the Coeur d Alene Mining District suggests that Bluebird (NW), Sunshine (EW), Cross (NS), and Jersey (ENE) type veins mayexpectedly occur on the property. Palisade Veins The Palisade mine prospect contains the major vein types that have been prolific for silver and base metal ore in the Coeur d Alene Mining District. The distribution of the veins (vein density) on the property is as high as or higher than manymajor mines in the Coeur d Alene Mining District. Schmidt and Schmidt estimated up to 41 veins on the property, though only 17 are indicated on maps. The siderite veins that outcrop on the property are predominately steeply to vertical dipping, Sunshine (WNW to EW-striking), and Jersey (ENE-striking) type veins that have been the most prolific vein types of the Coeur d Alene Mining District for lead (galena) and silver (tetrahedrite). In addition, Bluebird (NW-striking) and Cross (N-striking) type veins, also prolific veins of the Coeur d Alene Mining District are also present. The Main NW-Striking Vein The data on the Palisade mine prospect presents some confusion about the Main NW-striking vein on the property. The various maps of the Palisade property show the NW trace of a Main vein zone (Fig. 2), referred to as the Blacksmith Shop vein by Campbell and Good, but others have questioned whether a NW trending vein exists where shown. Campbell and Good state that this Blacksmith Shop siderite vein is exposed in nearly continuous outcrop for 400 feet eastward from a point about 200 feet east of the Twin Crags lookout tower and is known from surface and underground exposures to be nearly 900 feet long. Schmidt and Schmidt (1954) indicated that the NW trending Main vein was in error and that the vein zone consisted of 3-4 E-W striking veins, arranged en echelon (parallel and staggered in position, Fig. 3). Laczay reported that at

5. 5 least four southeasterly striking parallel siderite veins are exposed, ranging in width from 0.5 to 4 feet, for a length of 3000 feet within the St. Regis formation , but the veins on his map (Fig. 4) are not really NW-SE striking veins. Lacsay s hand drawn map (Fig. 4) shows an x on the road to mark where the Main vein zone crosses it about 250 feet N of the Upper Adit portal, but this also coincides with the strike extension of the two veins that are north of the Upper Adit. Continuing SE along the trace of the Main vein on Lacsay s map (Fig. 4) in the Goliath claim no.4, uphill from the N75W vein in the Middle Adit, is a heavy float area. The presumption is that this heavy float area represents numerous oxidized fragments of a siderite vein. This heavy float area could possibly derive from erosion of the veins exposed above around the Upper Adit or even as mine waste from those workings. The heavy float area , however, does not lie within the ravine which lies a short distance to the NE, as would be expected in erosion or mine waste dumping. The heavy float area trends N35-50W along the possible extension of the Main vein. The veins in the upper working do not correlate with the veins in the Middle Adit. An EW striking, vertical vein can not make a NW trace on such topography; a N75W vein in the Middle Adit with a 70-75°S dip would make a N65W trace. The USGS map (Fig. 1) shows a NW trending vein mapped in three points in the SW corner of Section 9 at a hair-pin turn in the road, but Lacsay s map does not show it. Campbell and Good, however in verification, report a 6 foot wide, N45W-striking, vertical, siderite vein in a trench near the Schmidt Cabin, which presumably is the house symbol on Section line B-B (Fig. 4 and Fig. 3). Campbell and Good also state that this trench is 600 feet SE of another trench with a 6 inch thick vein in another trench but do not give the vein s orientation. This last trench would be in the heavy float area in Goliath No. 4 claim. The absence of barite in this float may be confirmatory that the float did not come from the Upper Adit and needs checking. The presence of N45W vein strikes (above) supports that strike as valid for the Bluebird type in this area. There is no question that major NW-striking Bluebird type veins exist on the Palisade property. The Blacksmith Shop Vein and Similar Veins Lacsay s property map (Fig. 4) shows that the adit workings are on veins that are N75-85W striking. Campbell and Good state that, in the Blacksmith Shop workings (presumably the Upper Adit), the vein strikes E and is 3 to 48 inches thick, consisting of varying proportions of barite, specularite, magnetite, quartz and oxidized siderite. In places, barite or siderite predominates. The N85W vein in the Upper adit is unmarked with respect to vein dip (Fig. 4), but the sketches by Schmidt and Schmidt (Fig. 3) indicate that the vein dips very steeply N. Underground, Campbell and Good reported that the vein included minor amounts of chalcopyrite, pyrite, and galena. Lacsay shows an assay of 18 oz Ag/ton , 4.9% Pb and 2.6% Zn at the barite pit, which Schmidt and Schmidt (Fig. 3) show is on the EW striking vein in the Upper Adit. The silver to lead ratio (oz Ag/ton to % PB) is 3.7, which is diagnostic that the vein is in the transitional depth

6. 1 Hybridization is the addition of an intersecting, younger vein's mineralogies with that of the older vein s mineralization. 2 Lacsay s observation is answered by my discussion of Section D-D 6 zonation level between galena and tetrahedrite. The mineralogy may turn to all tetrahedrite in a relatively short depth. Even if the vein reaches the tetrahedrite depth zonation level, the total amount of silver-bearing tetrahedrite in the vein still has to make ore. The N75W vein in the Middle Adit is neither of the veins in the Upper Workings. Only an intervening NW-striking strike slip fault could possibly offset them, if they were the same veins. The vein in the Middle adit is marked with a dip of 74°S (Lacsay states 70-75°S). It is uncertain whether the numbers on the vein in the Middle Adit refer to the width of vein or vein zone because very few veins in the Coeur d Alene Mining District are 10 feet thick, though some are. Schmidt and Schmidt also state that the best assays were from this Middle adit area, but they did not report any assays. The Middle Adit is 1100 feet below the Upper Adit and could readily show better silver values. Although numerous WNW-striking siderite veins are typical of Bluebird type veins in the Bunker Hill area in the overturned limb of the Big Creek anticline, the normal strike of the Bluebird veins in upright younger fold limbs (upright bedding, as in this prospect) is about N45W. Most likely these N85W veins are Sunshine type veins. If these veins were Bluebird type veins (as identified above), their mere presence would be important as possible bearers of hybrid1 mineralogy from the intersection of four other younger vein types. As Sunshine type veins, the possibility of hybridization can only be from the Jersey type veins. The 1963 USGS map (Fig. 1) shows that the veins on the Palisade mine prospect are in the St. Regis formation, but that was prior to the new revisions in the St. Regis/Revett contact after the 1975 Bunker Hill research. The 4 foot thick vein in the lower, short adit (Elev. 5700 ft., Fig. 4) in Goliath claim No. 2 is most likely in a quartzite, but that is something that needs checking. Lacsay states that these veins seem to weaken to the west but getting wider and stronger to the southeast, indicating a possible easterly rake for the siderite zones2 . Vein rake is the line of intersection of the vein with bedding, which here defines about a 20-30° down to the east vein rake (S 85E), but that would not necessarily be the ore shoot rake, which maydepend on other vein intersections. The vein zones, however, should be thicker in any quartzite, especiallyin the Revett formation, which is mapped to the west on vein strike. A New Vein Type Several veins in the Coeur d Alene Mining District are difficult to distinguish because of their very similar orientations in rocks that have been deformed and rotated. Several veins on the Palisade mine prospect have orientations in a range that are questionable as to their vein type (i.e.

7. 3 Campbell and Good also report a stub drift along a zone of quartz stringers 70 feet from the face. 7 N60-75W), as either Bluebird or Sunshine type. A structural evaluation must not overlook the possibility of a totally different vein type in this area with a N60-75W strike. Campbell and Good show a 1500+ foot N63W vein trace in Section 16, south of the words Lower Palisade Mine on the USGS map (Fig. 1). They estimated a N60W trend for the same vertical vein as it extends across the creek, south of the Lower Adit portal. Lacsay mapped a N67W trace of this same vein in the Goliath claim No. 8 (Fig. 4). The same vein shows up on Fig. 2, south of the Lower adit. This vein can not be the same vein that was encountered in the workings of the Lower Adit (Elev. @4300 ft Elev.) and north of the portal. The old Palisade Mining and Milling Co. claim map (Fig. 2) shows a N74W siderite vein that was intersected and ignored3 , 200 feet from the face in the Lower Adit (Schmidt and Schmidt). Schmidt and Schmidt also state that those workings encountered the tip of the vein - possibly indicating the vein s end at the upper part of another quartzite unit in the St. Regis. That vein intersect in the crosscut lies west of two basic dikes, which in other workings were on faults. Lacsay mapped the probable eastward extension of this vein in the Goliath claim No. 7 with a N67W trace (Fig. 4). Jersey Type Veins One of the most numerous outcropping veins on the claim map (Fig. 4) are N78E, 72-84°NW dipping. Their orientation and their relationship to the Sunshine type veins implies that at least 7 of the mapped veins (one in the upper workings area) are Jersey type veins. The vein density of the Jersey type veins at the Middle Level Adit is probably the main reason for the drill targeting alone in section B-B. Lacsay s map does not show any extension of the Jersey type veins N of the Middle Adit, but that slope is marked No float , which also may mean no outcrop. Section B-B (Fig. 5) shows the intersepts of these 6 Jersey type veins from intersept to surface. Lacsay s map (Fig. 4) shows the horizontal extent of the DH 8-54 from collar to end, but the location of the drill collar (and its elevation) on Lacsay s map can not be correct, otherwise the drill holes would never have intersected the northern four of the Jersey type veins, nor the N74W vein in the Middle Adit. The elevation of the collar in section BB has to be above the 5,000 foot Elev. This would imply that these drill holes intersected the Jersey type veins at about the 4900+ foot elevation, which is only about 100+ feet above the Middle Adit. The Middle adit must have seen the intersection of these Jersey type veins with the N74W vein in the Middle adit. Drilling these veins to this depth was questionable. The results of the Drill Hole 8-54 and 8-56 are mixed.. They show that the Smith Cabin vein (most likely the N74W vein in the Middle adit) is at the siderite-sphalerite depth zonation level, a depth zonation level that is different from the descriptions of the EW striking Sunshine type vein in the Upper Adit, suggesting again that the N74W vein type may be a different vein type from the Sunshine type. The drill intercepts could mean that this vein type is below the tetrahedrite

8. 4 The author's study of the whole district shows that each vein type is vertically zoned across the whole district. Each ore mineralogy zone (depth zonation level) extends for thousands of feet, i.e galena above tetrahedrite. 5 This does not mean that a 300 foot thick quartzite extends from the surface, but that two quartzites might occur in this distance. 8 zone or just above it, as the galena depth zone could go into a red sphalerite/galena depth zonation level as in the Bunker Hill mine. I interpret the mineralogy, though, as below the tetrahedrite depth zonation level, similar to a Bluebird type because there is no galena. The drilling showed that the Jersey type veins are siderite quartz. This information somewhat allows an analysis of their depth zonation level4 for favorable ore mineralogy. Reasonably, the siderite-quartz of the Jersey type veins is somewhere near the transition depth zonation level between quartz-galena and siderite- quartz - tetrahedrite. This suggests that the Jerseytype veins will also be in the tetrahedrite depth zone at a relatively short distance below. Anyassay of lead and/or silver in any of these veins could provide corroboration. Drill section B-B does not indicate the rock type in which the drill holes intersected the veins, but the vein thicknesses suggest that the rock type was similar to the surface5 except for the intersepts at the lowest elevations in the last veins encountered. The reduction in the thickness of the veins at these lowest intercepts suggests that they are probably in siltite, and not quartzite, which probably exists at the surface. The sphalerite (66% ) vein zone is probably a lot better in quartzite. The Big Iron Vein The Big Iron vein lies to the south of the Goliath No. 8 claim in section 22 and 23. Campbell and Good indicate that the vein zone is 30-40 feet wide with a vein trace trending N60E to EW to N80W. They state that the vein strikes ENE and dips 75°S to vertical, which indicates that the Big Iron vein is a Jersey type vein. Reconnaissance should explore an adit on it on the west side of the Middle Fork (Fig. 1) to try and establish its depth zonation level, which should be lower than the Jersey type veins on the Palisade property. The trace of this vein is not offset by the West Fork nor the Middle Fork faults, though those faults show significant offsets. Cross Type Veins Cross type veins do not specifically show up as veins on the Palisade property, however, the structural trends are present in the N-striking dikes. In particular, Campbell and Good describe siderite along walls of dikes and veins thickening abruptly that the dikes cut, suggesting some dikes may have intruded along Cross type veins. Their siderite gangue suggests like the Jersey type veins that they are just above the tetrahedrite depth zone. Campbell and Good also reported on the K.C. and the Patricia No. 1 prospects with maps that show N-trending veins that bear

9. 9 quartz, siderite, galena, sphalerite and pyrite, but at present the location of those prospects is uncertain. Section D-D (N45W)and Revett - St. Regis Rocks The veins in the Palisade Mine Prospect lie at the surface in the St. Regis rocks as defined and mapped by Campbell and Good. The Revett Formation lies up dip and at higher elevation to the NW. The N55W Section D-D (Figs. 6 and 1) shows a reasonable interpretation for the relationship of the rock units below the Palisade Mine Prospect, according to map bedding dips. Projection of the top of the Revett contact southeastward on the section shows that the contact about parallels the hill slope SE of Twin Crags Peak where the workings lie. The change in the lower slope profile also occurs where ENE trending Jersey type ENE-trending folds occur, strongly indicating the rock units are effecting the topography. My interpretation of the position of the Revett contact (as defined on the map) in Section D-D suggests that the St. Regis in the Prospect area is at least about 2000 feet thick as opposed to Campbell and Good s estimate of 1800 feet. Any expectation of ore or depth zonation level changes would have to occur at least about 2000 feet from the surface to be in the more favorable Revett rocks, anywhere under the claims, that is, if there are no other quartzites in the Revett/St. Regis transition zone. Campbell and Good s stratigraphic section of the St. Regis shows an abundance of impure quartzites, which are probably siltites. Their stratigraphic section in the St. Regis, however, though not at the mine site, includes subvitreous quartzites which are good hosts for District veins. Some field work would be necessary to realize just where in the St Regis these favorable quartzite units are on the propertyand their thickness below within the St. Regis. This reconnaissance should check on the immediate west side of Twin Crags Peak. An aerial photo of the property would be helpful. The thickness of the veins in the surface exposures suggests, as mentioned above, that they are in quartzite and yet the drill intercepts showed that not all the vein intercepts were in quartzite. The section implies that a quartzite bed forms possibly the whole slope down from Twin Crags. Vein descriptions in the upper working suggest a calculation that this quartzite is about 60-80 feet thick. This would answer why the veins pinch to the west as mentioned in Schmidt and Schmidt s descriptions of the Upper Workings. It also would provide the basis of the sketch that Schmidt and Schmidt (Fig. 3) made to describe the en echelon appearance of the veins, that is, the sketch is really in section not in plan and is what the veins would look like in this surficial quartzite. A 3 foot thick vein in quartzite at the entrance of the adit , but may be 2- 4 inches thick in argillaceous siltite to the west. Farther at depth (3000-4000 ft elevation), the veins will enter the more massive Revett quartzites, which have been the most prolific rocks of the Coeur d Alene Mining District (i.e. the Bunker Hill, Crescent and Sunshine mines).

10. 10 Section E-E Section E-E (Figs. 7 and 1) shows an interpretation of projection of the top of the Revett Fm on the slope just northeast of the claims. There, the top of the Revett is only about 800 feet from the surface at a shallower dip than in the Palisade mine area. The surface of the slope probably does not bear a favorable quartzite as no significant veins were mapped, but that does not necessarily mean that the Palisade mine veins can not be traced or continue across the area. Anyone in the Coeur d Alene Mining District must realize that standing on apparent barren siltite is no reflection of the number of veins in the quartzite below. Drill Targeting Drill targeting the main veins of interest below the property will depend on what depth target would be sufficient to test the property. This can be done in four alternative ways. 1) Drilling either for the veins in the quartzites in the transition zone above the Revett contact shown in Section D-D , which might require a drill hole of about 2000-2500 feet, 2) continuing 1) to the deeper quartzites of the Revett, which requires about a 3500+ foot hole, 3) locating the the projection of the veins to the east below the slope SE of Mount Wiessner, where the a drill hole could be collared at the 3600 -4200 ft. elevation (Fig. 7). There, the set of 6 Jersey type veins will intersect the Sunshine type vein (in the Upper Adit) in the Revett quartzites possibly within 800 feet of depth (@ 1000+ ft on a 45° angled hole). If this drilling is successful in finding silver ore, it probably would establish the 5000- 6000 foot strike length of a subhorizontal ore zone within the Revett rocks on each of the thicker of 7 veins to the Palisade workings. Mining would require driving about 3000 feet north to intersect the zone at about the 3400 ft elevation level, then drifting east and west on the vein zones, 4) exploring the EW-striking Sunshine type vein and Big Iron vein (Jersey type) in the Revett quartzite on the east side of the West Fork fault (east of Palisade claim on east side of the West Fork of Pine Creek) reconning the surface without any deep drilling. In this fault block the veins represent what is over 4000-5000 feet (Fig. 6) below the vein/Revett contact under the Palisade Prospect, unless the veins formed after the fault offset, which I do not think happened as it is inconsistent with the structural history. The aim would be merely to establish what depth zonation level the veins types are in this fault block. Actually similar work could done in the fault block north of the Schmidt fault, but no conspicuous vein is shown on the USGS map in this block. We could probably find some small ones. More on the Rocks The Revett/St. Regis boundary to the west parallels contours which requires either that the contact is horizontal, which does not agree with the strike and dip of nearly bedding orientations, or possibly is a thrust fault separating the two units. The N-trending dike, passing thru the contact, suggests that a thrust does not exist. Possibly, rock outcrop and mapped bedding does

11. 11 not portray the true horizontal dip of the contact at this site. Campbell and Good refer to brick red quartzite beds within the Revett and some with brown rinds. Revett quartzite beds with brown rinds were typical of weathering of the Snowstorm type mineralization (Cu-Ag). Sometimes, breaking open boulders at least 1-2 feet in diameter were needed to see the true mineralization within. Bear Creek geologists used special long handled, light weight sledge hammers in the field to accomplish this. Whatever is causing the brick red color could be oxidized disseminated galena or massicot (PbO). Campbell and Good do not locate the beds. It may be interesting to find these beds and sample them, especially if they are up-dip to the west of these Palisade veins. Most of the stratiform mineralization that I have studied in the District is the result of wall penetration outward from the veins. Not all quartzites allow it. Russell F. Collins refers to the Lower Tunnel as never reaching the main siderite vein, but crossing a minor EW striking siderite vein that shows promise not only in the vein but in the wall rocks, suggesting that the veins here are also disseminating mineralization into the wall rocks. The red altered Revett units that Campbell and Good mention (above) are strong indication of nearby source veins. Dike Rocks Russell F. Collins reported two ages of basic dikes an older EW type and presumably the other is NS, as those shown on the property maps. If fresh dikes are encountered in the exploration, they should be reported to the USGS, as possible age determiners of the mineralization in the Coeur d Alene Mining District. DISCUSSION The Goliath claim block is such that the surface showings of the major veins are contained but any ore vein discovery would most likelyrake from within the claim group boundaries and be very difficult to mine without the adjoining claims. Any drilling must be preceded by staking more claims around the Goliath claim block at least just putting in the discovery markers a few days before drilling the holes and filing the claims if the drilling is successful. Dwight S. Juras Registered Professional Geologist

12. 12 REFERENCES Campbell, A. B., and Good, S.E., 1963, Geology and mineral deposits of the Twin Crags quadrangle, Idaho: U.S. Geol. Survey Bull. 1142-A, p. A1-33. Laczay, Peter W., 1971, Geological Report on the Palisade Mine Property, unpub. Property report. April 5,1971. 3 p.

13. 13 QUALIFICATIONS AND SIGNATURE Dated at New York City, New York on June 25, 2002 I, Dwight S. Juras, of New York City, New York, do hereby certify that: I am a geologist, with a business at the above address. I am a graduate of the University of Idaho School of Mines: M. S., 1973; Ph. D., 1975. I am a registered geologist in the states of California, Oregon and Idaho, I have practiced my profession for a period of twenty five years as a geologist under mining, exploration and consulting companies and as an independent consultant. I have no interest either directly or indirectly, nor do I expect to receive an interest in the Palisade mine prospect, nor anyproperty near the Palisade mine prospect. Dwight S. Juras, Ph. D. Registered Geologist

14. 14 APPENDIX

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