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 ===========================================================
Using today’s and projected future estimates of metal prices for gold, silver, copper, molybdenum and tellurium, reasonable exploration target models should be established for the Mount Washington Property. An investigation should be made of current mining and processing techniques and costs at operations exploiting similar deposits worldwide, including both open pit and underground operations. In the author’s opinion, the following combined exploration target models could be used as a starting point: • Underground, flat-dipping, discontinuous but clustered narrow vein deposits totaling 1 million tonnes @ 10 g/t gold, 100 g/t silver, 0.50% copper, 10 g/t tellurium and 5% arsenic, requiring complex processing for optimal recovery of gold, silver, copper and tellurium while suppressing arsenic • Underground, steeply-dipping, bulk mineable, clustered, breccia deposits totaling 100 million tonnes @ 1 g/t gold, 5 g/t silver, 0.50% copper, 0.01% molybdenum, 5 g/t tellurium and 0.5% arsenic, with similar processing requirements as above plus molybdenum recovery The extensive data record available for the Mount Washington Property needs to be assembled into a single G.I.S.-based, 3-D model, and all rock units used by different operators need to be integrated into single, coherent geological legend. Because of the size and variable integrity of the data record, this process will take considerable time, effort and cost. At the end of the process, both property wide and detailed plan and sections views should be available for any selected portions of the property showing any and all combinations of historic geology, geochemistry, geophysics (by type), trenching, drilling, and excavations. Using this georeferenced database, well-conceived exploration programs should be initiated. A phased, systematic exploration program is warranted on the property to achieve the following primary exploration objectives, in the author’s opinion: • Discover new economic mineral deposits of any type on the property through systematic, phased exploration probably commencing with airborne geophysics • Continue systematic and targeted GPS-grid controlled geological mapping and geochemistry field programs in the Murex Breccia, Oyster Breccia and Wolf Lake area • Establish new, bulk-mineable indicated resources of sufficient grades to be mined by underground methods in one or more of the breccia zones by diamond drilling
==================================================== Establish measured resources in the Lakeview-Domineer Zone by re-opening the portal, re-mapping the adit, definition drilling and detailed interpretation Also, the author recommends the following environmental and socio-economic programs be initiated to complement the exploration and environmental objectives: • Establish baseline environmental database using historic and modern data • Identify, negotiate and establish contract, employment and other co-operation agreements with local First Nations bands • Negotiate and establish access road use and other co-operation agreements with local surface rights holders TimberWest and the Mount Washington Alpine Resort • Negotiate and establish work progress update protocols with local recreation and conservation groups and communities The following Phase 1 Year 1 combined compilation, planning, exploration, environmental and socio-economic programs and budgets are proposed for the Mount Washington property: Table 4 – Proposed Work Program and Budget Summary Item Description Units/Timing Unit Cost Item Cost Re-evaluation Mining Geol./Eng. 1 month $10,000 / month $ 10,000 GIS Compilation 2 GIS Technicians 3 months $15,000 / month $ 45,000 Geological Legend Project Geologist 1 month $10,000 / month $ 10,000 Plan Exploration Project Geologist 2 months $10,000 / month $ 20,000 Subtotal Compilation & Planning Months 1-3 $ 85,000 Preliminary Work Geological mapping, geochemistry 1.5 months $20,000 / month $ 30,000 New Discoveries 1000 km. Airborne Geophysics 1 month $150 / km $ 150,000 Explore Breccias 2000 m. Drilling 2 months $200 / metre $ 400,000 Lakeview-Domineer Underground Work 2 months $100,000 /month $ 200,000 Subtotal Exploration Months 4-5 $ 780,000 Environmental Baseline Program 8 months $2,500 / month $ 20,000 Road Use, Surface Agreements 3 months $5,000 / month $ 15,000 First Nations Agreements & Meetings 10 months $5,000 / month $ 50,000 Local Communities Meetings 10 months $5,000 / month $ 50,000 Subtotal Environmental & Socio-Economic Months 4-11 $ 135,000 TOTALS 12 Months $ 1,000,000