Vancouver Island, British Columbia NTS 092F/14 BCGS 092F074 & 092F075 Latitude 490 45’ 23” Longitude 1250 15’ 22” UTM NAD83 Zone 10N 337500E 5514000N For North Bay Resources Inc. PO Box 162 Skippack, PA, USA 19474 By Jacques Houle P.Eng. 6552 Peregrine Road Nanaimo, B.C. V9V 1P8 August 26, 2019 ===========================================================
unspecified width. Rock sample AF05320 taken in 1987 from a mineralized tectonic breccia measuring 15 m. by 30 m. and containing 5-20% chalcopyrite yielded 3.0 g/t gold and 18 g/t silver. • The Faith Lake (MINFILE 092F240) prospect is located 6 km. southwest of the Mount Washington Property, and was also explored extensively by Falconbridge Ltd. in the 1960’s-1980’s. At least 30 quartz-sulphide veins occurring in steeply-dipping, north and east-trending shears and faults and associated with Eocene quartz diorite intrusive stocks and dikes were discovered and explored. Drilling in 1963 yielded an intercept of 0.15 m. @ 25 g/t gold, 120 g/t silver and 3% copper. • The Schev (MINFILE 092F241) prospect is located 5.5 km. southwest of the Mount Washington Property, and was explored by Falconbridge Ltd. as part of the Faith Lake property in the 1960’s-1980’s. A sericitic tectonic breccia containing arsenopyrite, chalcopyrite and pyrrhotite is exposed over an area of 20 m. by 3 m., associated with an Eocene felsic dike. Drilling in 1964 yielded an intercept of 1.5 m. @ 27 g/t gold and 43 g/t silver from a breccia zone with an interpreted orientation of 0800 strike and 450 dip south. • The Jo Anne (MINFILE 092F329) prospect is located 2.5 km. southwest of the Mount Washington Property, was explored by Iron River Resources Ltd., B.P.-Selco, and Noranda from 1984 to 1988. Drilling by Noranda in 1988 yielded multiple wide copper intercepts over an area 200 m. in diameter from quartz-sericite altered breccia associated with Eocene intrusives. This included hole NFP-88-5 which yielded 21.6 m. @ 0.43% copper from 48.4 to 70 m., and 12.4 m. @ 0.42% copper from 100.1 to 112.5 m., and two other holes, NFP-88-2 and NFP-88-3 which yielded wider zones of generally lower grade copper values. The mineral occurrences on the Mount Washington Property and those of the Forbidden Plateau area establish a NE-SW trending belt of Eocene age intrusives with associated goldsilver-copper-arsenic bearing breccia bodies, shown if Figures 1a – 1b, and 2a – 2b. This trend may be projected to the southwest across Strathcona Provincial Park to the west coast of Vancouver Island, where Selkirk Metals Corp. holds the Catface Copper property, located 75 km. southwest of the Mount Washington Property. The Cliff Zone of the Catface Copper property contains an indicated mineral resource estimate of 56,863,000 tonnes @ 0.40% copper and inferred mineral resource estimate of 262,448,000 tonnes @ 0.38% copper (Selkirk Metals Corp., 2009). The Catface (MINFILE 092F120) and adjacent Irishman Creek (MINFILE
=============================================================== 092F251) developed prospects are classified as porphyry copper-molybdenum-gold-rhenium deposits and are associated with multi-phase, Eocene intrusive stocks and dikes. Near the centre of Strathcona Provincial Park along the southwest projection of the same trend lies Nyrstar’s Myra Falls Operation, which until recently has been successfully producing and processing polymetallic sulphide deposits containing copper, zinc, lead, silver and gold since 1966. Myra Falls is located 30 km. southwest of the Mount Washington Property, and is hosted in the older Devonian age Mount Sicker Volcanics which underlie portions of Vancouver Island. Along the northeast projection of the same trend across Georgia Strait, 50 km. northeast of the Mount Washington Property, Eastfield Resources Ltd. and Prophecy Coal Corp. hold the OK Copper property. The North Lake Zone of the OK North developed prospect (MINFILE 092K008) contains an inferred mineral resource estimate of 86,800,000 tonnes @ 0.31% copper and 0.014% molybdenum (Prophecy Coal Corp., 2006). The OK North and adjacent OK South MINFILE 092F057 developed prospects are classified as copper-molybdenum-gold-rhenium deposits and are associated with multi-phase Cretaceous and possibly younger intrusive stocks, dikes and breccia bodies. Other Relevant Data and Information Technically, the Mount Washington Property and adjacent properties represent an attractive advanced exploration project, with many clustered polymetallic mineral occurrences in a geological setting similar to active and successful mining camps elsewhere. However, the social license to develop and operate a mine is not guaranteed to the mineral title holder anywhere, including on Vancouver Island. The last operating metal mine (Myra Falls Operation) on Vancouver Island recently suspended operations and is for sale by the owner, no new metal mine has been permitted since the 1960’s, and several active exploration properties were expropriated during expansion of local provincial parks in the early 1990’s, as was done with the former Falconbridge Ltd. properties, Gem Lake and Faith Lake, and the former Jo Anne property operated by Noranda Exploration Company Ltd. when Strathcona Provincial Park was expanded. It is possible that local surface title holders, recreation/conservation groups and/or communities will actively and successfully oppose future mine development in the Mt. Washington area. The 6 stage treaty process between 14 different negotiating groups of First Nations and federal and provincial governments is still in progress on Vancouver Island with one final agreement completed to Stage 6 (Maa-nulth), another final agreement in negotiation