Bates and Hunter Project Report

OREM INC.
8952 – 216 A Street, Langley, B.C. V1M 4C7 Tel: (604) 513 - 3134
E-Mail: [email protected] Fax: (604) 513 - 3730
Technical Report
on the
Bates Hunter Project
Central City, Gilpin County, Colorado, U.S.A.
Glenn R. O’Gorman, B.Sc., P. Eng., F.C.I.M.
OREM INC. Page 1 of 78

Table of Contents
Section Description Page
List of Tables 6
List of Figures 7
List of Appendices 8
Executive Summary 9
1.0 Introduction and Terms of Reference 17
1.1 Introduction 17
1.2 Terms of Reference 17
1.3 Scope of Work 17
1.4 Reliance on Other Experts 17
2.0 Property Description and Location 20
2.1 Property Location 20
2.2 Mineral Claims and Agreements 20
2.2.1 Hunter Gold Agreements 20
2.2.2 Mammoth Hill Agreement 26
2.3 Site Facilities 27
2.3.1 Mine 27
2.3.2 Water Treatment Plan 27
3.0 Environmental and Permitting Issues 29
3.1 General Environmental Issues 29
3.2 Permit Status 29
3.2.1 Mine Permit 29
3.2.2 Special Exception Use Permit 30
3.2.3 Water Discharge Permit 30
3.2.4 Surface Drilling Permits 31
3.2.5 Water Rights 31
3.2.6 Permitting Issues 31
4.0 Accessibility, Climate, Local Resources, and Infrastructure 32

4.1 Topography, Vegetation, and Climate 32
4.2 Access, Transportation, Infrastructure and Local Resources 32
5.0 History 33
5.1 Central City Mining District History 33
5.2 Bates Hunter Mine History 34
5.3 Adjacent Mining History 36
6.0 Geologic Setting 37
6.1 Regional Geology 37
6.2 Regional Rock Units 38
6.3 Deposit Types 39
6.4 Mineralization 39
6.5 Ages of Mineralization 40
6.5.1 Pitchblende: Stage 1 40
6.5.2 Quartz-Pyrite Veins: Stage 2 41
6.5.3 Composite Base-Metal Sulfide Veins: Stage 3 41
6.5.4 Telluride: Stage 4 42
6.6 Vein Structure and Ore-Shoot Geometry 43
7.0 Exploration 45
7.1 General 45
7.2 Surface Mapping and Sampling 45
7.3 Underground Mapping and Sampling 45
7.4 Mine Dewatering and Rehabilitation 47
8.0 Drilling 48
8.1 GSR Goldsearch Drilling 48
8.2 Phase I and Phase II Surface Drilling 48
9.0 Sampling Method and Approach 54
9.1 General 54
9.2 Surface and Underground Samples 54
9.3 Drill Core Samples 54

9.4 Independent Sampling 54
10.0 Sample Preparation, Analysis, and Security 56
10.1 General 56
10.2 Sample Preparation 56
10.3 Analysis 56
10.3.1 Gold Analysis 56
10.3.2 Silver Analysis 56
10.3.3 Multi-Element ICP Analysis 56
10.4 Analytical Results and Assay Certificates 56
10.5 Core Storage 56
11.0 Data Verification 58
11.1 General 58
11.2 Drill Hole Location 58
11.3 Drill Hole Orientation 58
11.4 Down-Hole Geology and Drill Logs 58
11.5 Core Photographs 58
12.0 Adjacent Properties 59
13.0 Mineral Processing and Metallurgical Testing 60
14.0 Mineral Resource and Mineral Reserve Estimates 61
14.1 Existing Mineral Resource 61
14.2 Exploration Potential 61
15.0 Other Relevant Data and Information 64
16.0 Interpretation and Conclusions 65
17.0 Project Valuation 66
18.0 Recommendations 67
18.1 General Recommendations 67
18.2 Budget 68
References 69
Certificate of Qualifications – Glenn O’Gorman 71

Letter of Authorization – Glenn O’Gorman 73
Certificate of Qualifications – Brian Alers 74
Letter of Authorization – Brian Alers 76
Appendices 77

List of Tables
Table Description Page
1 Project Land Holdings – Acquired from George Otten et al. 25
2 Project Land Holdings – Optioned from Mammoth Hill 26
3 Stages and Characteristics of Bates Hunter Mineralization 40
4 Average Geochemistry of Mineralization Stages from Selected, 40
Representative Samples
5 Muck Samples from Bates Hunter Underground Workings 47
6 Phase I and Phase II Surface Drill Hole Information 49
7 Selected Surface Drilling Assay Results 53
8 Comparison of Check Sampling Results with Owner’s Results 55
9 Past Production – Bates Hunter Project 61
10 Exploration Expenditures 64
11 Exploration Program Budget - Phase II 68
12 Exploration Program Budget - Phase III 68

List of Figures
Figures Description Page
1 Location Map of the Bates Hunter Project 21
2 Location Map of the Bates Hunter Mine Project 21
3 Mineral Rights of the Bates Hunter Project 22
4 Surface Rights of the Bates Hunter Project 22
5 General Facilities Map, Bates Hunter Mine 28
6 Longitudinal Section, Bates Hunter and Related Mines 35
7 Regional Geology of the Bates Hunter Project 38
8 Generalized Geologic Map of the Bates Hunter Project Area 39
9 Schematic Model of Vein Types 43
10 2005-2006 Gold (Au) Assays of the Bates Hunter Mine 46
11 Plan Map of Drill Holes 50
12 Cross Section of Bates Hunter Project 2006 Diamond Drill Holes 50
15 Cross Section BH-08-10 52
16 Bates Hunter Project – Known Veins 62

List of Appendices
Appendix Description
1 Property Agreements
1.1 - Hunter Gold Agreement
1.2 - Hunter Gold Title Documents
1.3 - Mammoth Hill Agreement
2 Permits
2.1 - Preliminary Permitting Report
2.2 - Colorado State Mine Permit
2.3 - Central City Special Exception Use Permit
2.4 - Water Discharge Permit
2.5 - Stormwater Permit
2.6 - 2006 Drilling Permits
2.7 - 2007 Drilling Permits
3 Environmental Reports
3.1 - Bates Hunter Phase I Environmental Site
Assessment
3.2 - Mammoth Hill Phase I Environmental Site
Assessment
3.3 - EPA Fact Sheet
4 Analytical Results and Sample Notes
5 Assay Certificates
5.1 - Lab Certificates and Assay Procedures
5.2 - Example Sample Submittal
5.3 - Assay Certificates
6 Surface Drill-Hole Logs
7 Technical Credentials of Contributing Consultants
8 Acme Analytical Laboratories Ltd. Certificates

Executive Summary
The author was commissioned to prepare this NI 43-101 compliant Technical Report on
the Bates Hunter Project for internal corporate use to solicit and secure project funding
and to qualify the Bates Hunter Project as a “Property of Merit” for submission to the
TSX Venture Exchange. The author is a “Qualified Person” as defined in NI 43-101 and
has worked in various consulting capacities on the project since December 2003 and is
knowledgeable regarding the Hunter Bates Project and is confident that the technical
data pertaining to it were properly collected and documented, and that they are
representative of the geology and resource potential of the property. In preparing this
report, the author has relied upon data, observations, interpretations, and conclusions of
previous workers on the property and on consultants employed by the company. The
provenance of technical data is clearly indicated within the text of this report; the
respective authors are listed in the bibliography which forms part of this report.
The Bates Hunter Project is located in the historic Central City mining district in Gilpin
County, Colorado, USA, approximately 35 miles west of Denver. Central City, Colorado
is the oldest mining district in Colorado and the most important mining district in the
Front Range mineral belt. The Central City district has produced about 4,134,000
ounces of gold and 118,900,000 ounces of silver, with the vast majority of gold
production (3,397,000 ounces) occurring between 1859 and 1903.
The Mine consists of 30 patented lode mining claims and 6 parcels of land within the
town limits of Central City and Black Hawk, Colorado under two separate agreements
which provide the Mine with mineral and surface rights encompassing areas of 34.12
and 25.16 acres respectively.
The project is located in the Front Range of the Southern Rocky Mountain
physiographic province, characterized at the project area by rugged mountainous terrain
at about 8,500 feet elevation with relatively steep slopes and narrow drainages. The
project’s climate is characterized by cold snowy winters, and warm summers. The Bates
Hunter Mine site is located in an area of excellent infrastructure in a residential district
within the city limits of Central City and adjacent to a modern large casino/hotel
complex. It is currently served by municipal electricity and potable water services.
Access to the Project is excellent, by good paved roads and the city streets of Central
City. The project location within the Central City town limits prohibits open pit mining
activities although small scale underground mining is possible. The surface land area
surrounding the mine site is small and fragmented.
The Central City mining district is part of the 400-square mile Central City/Clear Creek
Superfund site. Historic mining activities in the area have left waste rock and tailings
from which acid drainage has leached heavy metals into the surface water and
groundwater of the Clear Creek watershed. Newfield’s performed a Phase I
environmental site assessment on the claims being acquired from Hunter

Gold, and reported no environmental liens or other known significant environmental
issues on these properties.
Permits for operations at the Bates Hunter Mine and water treatment plant were
reviewed by the author and by permitting consultant Frank Filas, P.E. The mine permit
status was investigated at the Colorado Division of Reclamation Mining and Safety in
Denver, which issued Permit M-90-041 for the Bates Hunter Mine. The permit is
currently active. Exploration activities at the Bates Hunter Mine were approved by
Central City in a Special Exception Use Permit dated April 14, 1986. It is important to
note that the Central City permit does not allow for full-scale mine production or disposal
of waste rock and debris on the surface. The Water Discharge Permit was investigated
at the Colorado Department of Public Health in Denver; Permit #0043168 is in good
standing and allows the Bates Hunter to discharge up to a 30-day average of 300 gpm.
The State of Colorado Division of Reclamation, Mining, and Safety have approved
Notice of Intent Mineral Prospect Permit numbers P-2006-018 and P-2006-033,
authorizing surface exploration drilling on the Bates Hunter Project.
The Bates Vein was close to the center of early mining activity in the area. Production
records indicate that the Bates Hunter Mine produced approximately 154,000 ounces of
gold. Although the Bates Vein was one of the richest and most productive in the early
history of the area, it was never consolidated and mined to any great depth. Large-scale
mine development of the Bates Hunter Project has been greatly inhibited by the
fragmented nature of land ownership created by many small 1860’s era lode claims.
The Bates Hunter shaft is reported to extend to a depth of 745 feet and has been
dewatered and rehabilitated to about 420 feet from the collar. The shaft is equipped with
a 2-compartment 85-foot-tall steel head frame and a single-drum 5-foot hoist suitable for
exploration and/or small-scale production at a rate of 200 tons per day or less. Other
mine-site facilities include compressors, hydro and minimal support infrastructure such
as a small office, a mine dry, toilet facilities with showers, and a small shop. A water
treatment plant has been constructed adjacent to the mine head frame. Its practical
throughput has been approximately 100 gpm which is approximately equal to the mine
water inflow. It may be possible to upgrade this facility to handle substantially more
discharge and accelerate dewatering and rehabilitation activities. Fred Jones, Colorado
Commissioner of Mines from 1943-1950, was probably one of the last men to see the
lower levels of the Bates Hunter Mine. Jones described ore shoots occurring on the
300, 700 and 800 (745??) foot levels. On the 300 foot level, samples taken over a 40
feet strike length ranged from 0.34 to 1.8 opt Au. On the 700-foot level, he states that
the “ore stopes 4 feet wide” and that 50 feet of the ore is exposed near the shaft that
assayed from 0.4 to 4.60 opt Au.
The Buell mine on the Leavitt vein was one of the major producers in the Central City
District and is included in the Hunter Gold mineral claims. Fosset (1876) described the
Buell “The ore body was generally four to ten feet wide, but at a depth of 400 feet
widened to 16 feet. Great pockets and seams of smelting ore were found”.

Technology at that time was primitive compared to today’s standards. Mining was
accomplished by hand. Once mining reached the water table, sulfide ores were hand
cobbed in the stopes and only the high grade, direct-smelting ores were brought to
surface. Prior to 1869, miners were only able to recover gold from oxidized “free gold
ores” which had been weathered to remove base metals and sulfides leaving a enriched
gold bearing iron-oxide-filled quartz vein that could be easily separated; high-grade,
direct smelting ore was sent across the ocean to Swansea, Wales for smelting.
Professor Hill established the Colorado Smelting Works at Black Hawk in 1867-8 and
became the first successful local smelter to treat the sulfide-bearing ores.
The Central City mining district lies within a terrain of Precambrian rocks that comprise
the core of the Front Range portion of the Rocky Mountains in Colorado. Initial
greenschist metamorphism and deformation produced mostly upright, tight isoclinal
folds with a penetrative fabric and associated bodies of pegmatite. Intrusion of the Silver
Plume biotite-muscovite granite was accompanied by thermal metamorphism, minor
deformation, and intrusion of pegmatites. Uplift and erosion of the Precambrian rocks
resulted in a beveled surface upon which terrestrial and marine sediments were
deposited. Tertiary-aged igneous activity and related mineralization occurred throughout
the Front Range region. After a lull in plutonism and volcanism, tectonism was
dominated by basaltic magmatism related to the development of the Rio Grande Rift.
Extensive erosion has exposed the mineralization and caused supergene enrichment of
gold, silver, and copper near the surface. The Precambrain rocks in the Central City
district are an inter-layered and generally conformable sequence of gneiss, migmatite,
and intrusive igneous rocks. Tertiary through Oligocene-aged igneous rocks of the
Central City district consists of leucocratic granodiorite porphyry, quartz monzonite
porphyry, bostonite porphyry and quartz-bostonite porphyry. Precious and base-metal
deposits in the Central City area are mesothermal vein-type deposits formed at 220° to
380° C in the early Tertiary under 2,600 to 4,600 feet of cover possibly above an
alkaline porphyry molybdenum system. Vein textures suggest passive infilling of
fractures. Veins range in thickness from hairline to 8 feet, and are surrounded by wall-
rock alteration envelopes as thick as 80 feet. Grades of vein mineralization detected
during the exploration program range up to 5.9 opt Au. Four distinct stages of
mineralization have been identified in the Central City district based on crosscutting
relations among intrusions and various vein types. The veins grade into one another but
can be classified according to the distinctive mineralogy and geochemistry of each
stage of mineralization. Vein structure and orientation is a separate issue from the
temporal paragenesis of mineralization: veins of different stages do not necessarily
have unique orientations and may share the same orientation as other mineralization
stages. Mineralization at Central City has been dated in Laramide times of the late
Cretaceous and early Tertiary.
Stage 1 mineralization consists of pitchblende and local secondary uranium minerals

that occur sporadically in small pods or lenses along pyrite and composite veins
associated with early uraniferous quartz bostonite porphyry dikes.

Stage 2 mineralization consists of braided networks of 0.1 to 0.8 foot wide sub-parallel
quartz-pyrite veins surrounded by quartz-sericite wall-rock alteration envelopes up to
80 feet thick. Although gold is the predominant economic metal in the quartz-pyrite
veins, the gold grade of Stage 2 veins is spotty at best and ranges from 0 0 to 0.8 opt
Au, with the majority of values around 0.15 to 0.25 opt Au.
Stage 3 composite base-metal sulfide mineralization consists of gray, dark gray, and
black quartz veins 0.1 to 6 feet wide with variable amounts of coarse-grained
chalcopyrite and pyrite, fine-grained tennantite, coarse-grained enargite, fine-grained
marcasite, and a very fine-grained black mineral with lesser bornite, chalcocite,
sphalerite, galena, and possibly goldfieldite(?) or sylvanite. Gold content is highly
variable within the composite base-metal sulfide veins. Typically, the higher gold grades
are found within irregular streaks and lenses of the more chalcopyrite-rich portions of
coarse sulfide veins.
Stage 4 Telluride mineralization consists of braided networks of hairline to 0.5-foot-thick

veinlets of blue-gray cherty silica/chalcedony, ferruginous calcite, white clays, and
sometimes purple fluorite with variable amounts of Au and Ag-bearing telluride minerals,
primarily sylvanite (AuAgTe4) and hessite (AgTe). The telluride-bearing veins in the
Central City district occur in separate veins that are parallel to and crosscut the earlier
vein stages. Gold in the telluride-bearing veins can be coarse and extremely high grade,
but the grades are notoriously erratic. Current assays show that Stage 4 telluride veins
contain from 0.3 to 0.5 opt Au, and 2 to 6.5 opt Ag.
Three orientations of veins have been identified in the area of the Bates Hunter project.
The highly productive northeast-trending veins (azimuth ~055º) contain abundant
coarse sulfides and have complex geochemistry; they contain high gold, silver, copper,
base metals, trace elements, and uranium. The veins and minor stockworks of Central
City are best described as undulatory veins. Undulatory veins are faults (and to a lesser
extent joints) that propagated as curviplanar surfaces and commonly exhibit undulating
or corrugated shapes.
Through surface geologic mapping, compilation of old mine maps, drilling, and three-
dimensional computer modeling, the complex nature of the undulatory veins
characteristic of the Bates Hunter Mine is becoming clearer. The most productive veins
are not a single vein but a complex network of branching undulatory vein segments
between major parallel vein branches spatially located 30 to 60 feet apart. Ore shoots
coincide with undulations in both strike and dip of master veins. Ore shoots generally
have well-defined visual boundaries, high-grade gold and silver concentrations
coinciding with the readily visible base-metal sulfides. Ore shoots in pyrite veins without
the presence of base metals, are less readily visible.
Management has been conducting exploration of the Bates Vein and adjacent veins
since 2004. The company is currently engaged in a Phase II surface drilling program,
planned for 6,000 feet in three holes to test the depth potential of vein intersections
beneath the historic Bates Hunter Mine workings. Management geologist

Brian Alers conducted geologic mapping and sampling which included extensive
compilation and integration of pre-existing and recent geologic work. Brian Alers also
conducted detailed surface and underground mapping and sampling.
Underground muck sample assays taken in the Bates Hunter workings suggest that
stope fill in this mine may be rich: twelve muck samples averaged 1.3 opt Au, 2.9 opt
Ag, and 0.28% Cu. Neither the recent sampling by Alers nor the historical sampling and
anecdotal information are adequate to support that an economic mine can be
established. However, the indicated high grade nature and vein widths up to 24 inches
or more, imply that further exploration is warranted.
GSR Goldsearch Resources drilled two reverse-circulation holes on the property in
1990 beneath the Bates Hunter shaft bottom, and intercepted a zone of 0.48 opt Au
over 10 feet. Phase I drilling consisted of 7,739 feet of core drilling in seven holes
ranging in depth from 50 to 2,265 feet. Management has completed two holes in their
Phase II drilling totaling 4,289 feet. These mine holes intersected more than 16 different
veins all of which were narrow but assayed anomalous gold ranging from 0.004 opt Au
to 3.43 opt Au. A number of vein intersections were significant. In BH-06-04 a
4.0 foot section of the Hartford vein averaged 0.81 opt. In BH-07-08 a 0.6-foot section of
the Leavitt vein assayed 3.43 opt Au. In BH-08-09 the Groundhogg vein averaged 0.68
opt Au over 3.6 feet.
During the author’s recent site visit to the property (July 2nd to 3rd, 2008), independent
chip samples were taken by the author from the underground workings and select
sections of drill core were quartered under the author’s supervision. All samples were in
the author’s personal possession until they were delivered to ACME Labs in Vancouver
for analysis. The author’s independent sampling confirms the presence of high grade
gold. The reproducibility of the silver assays is good while gold assays were quite
variable. Given that the quantity of sample obtained by quartering very short core
intervals was only about 150 grams per sample, it is not unreasonable to see significant
differences between the author’s and Management’s assay results for gold and silver
over the same interval.
The Bates Hunter Project is surrounded by numerous adjacent properties. Many of

these adjacent claims have had historic gold production. In addition to the
approximately 154,000 ounces of gold produced from seven mines on the Bates Vein,
compilations of historic production records indicate that the immediate vicinity around
the Bates Hunter Project encompasses approximately 16,100 linear feet of past
producing veins that have historically produced about 1,135,000 ounces of gold from six
veins to an average depth of 670 feet, or in excess of 1,700 ounces Au per vertical foot.
No modern mineral processing or metallurgical testing has been done on the Bates
Hunter Project. Based on historical methods of processing, it is expected that the
mineralization would be amenable to recovery by sulfide flotation followed by smelting
of the flotation concentrates to remove gold. The presence of sporadic but appreciable
amounts of copper in the veins (in the 0.50% Cu range) precludes using cyanide
leaching as a recovery technique since copper is a voracious cyanide consumer that

would make cyanidation cost prohibitive. The nearby Cash Mine at Gold Hill in Boulder
County is producing a gold-in-sulfides flotation concentrate which they are shipping to
Juarez, Mexico for smelting.
Past Production – Bates Hunter Project
Vein # Mines Gold Produced Mined Depth (Ft.) Au Ounces per Potential Ounces
(Ounces) (Averages) Vertical Foot to 2000’ Depth
Bates 7 154,000 476 323 490,000
Fisk 7 448,000 1,050 427 400,000
Gregory 2 342,000 843 406 470,000
German 1 113,000 745 152 190,000
Leavitt 5 63,000 487 129 200,000
Gaston 1 15,000 400 38 60,000
Totals 23 1,135,000 667 1,702 1,810,000
The author has reviewed Management’s sampling methods and approach, sample
preparation, analysis, data verification and security procedures, carried out by
Management, during its exploration program and is of the opinion that they are sufficient
and that the data produced is valid for the mineralization being explored.
There are currently no mineral reserves or resources of any category on the Bates
Hunter claim group. However, historical data leaves no doubt that a significant amount
of high-grade gold still remains on the claim group. Information gleaned from historical
Bates Hunter reports indicate that there were several known and defined ore shoots in
the mine prior to closure. Samples taken during the recent dewatering efforts to the 163
foot depth in the shaft range from trace to 6.0 opt Au.
It is the author’s opinion that from 20% to 80% of the known vein systems could result in
exploration success. The Bates vein produced 154,000 ounces to an average depth of
476 feet or 323 ounces per vertical foot. A rule of thumb for underground mining is that
one can mine comfortably at a rate of approximately 50% to 65% of the reserves
tonnage (or ounces) per vertical foot. Based on this, historical data suggests that the
Bates Vein alone could produce between 160 and 210 ounces of gold daily (55,000 to
75,000 ounces annually). Based on historic records, it is roughly estimated that the
Bates vein alone represents an exploration target that could host approximately 500,000
ounces of gold to a depth of 2,000 feet. The 16,100 feet strike lengths of all the veins
covered by the project claims could increase this potential substantially. Acquisition of
other contiguous properties could again multiply this potential. If one extrapolates the
historical production data to 2,000 feet depth, the Bates Hunter Project could host 1.8
million ounces of gold. Given that historical records are very fragmented, incomplete
and not NI 43-101 compliant, it is the author’s opinion that the project may eventually
discover 1 to 3 million ounces of gold on the property. Based on the historical 1,702
ounces of gold per vertical foot, gold production at a rate of 850 to 1,100 ounces daily
(300,000 to 400,000 ounces annually) is theoretically possible. Based on historical data
and recent “remnant” and muck sampling underground, it is expected that “mineable”

vein segments may be narrower than 5 feet but with correspondingly higher grades.
What will ultimately be discovered is unknown and unpredictable; the potential for
discovering and developing an economic gold mine on the Bates Hunter Project is a
distinct possibility.
The small claim sizes, metallurgical complexities, and production constraints were the
historically limiting factors that caused previous operations mines to close. Past
production data and reported grades and widths indicate that the project may be able to
support a production rate of around 400 TPD at a grade of about 0.50 oz/ton Au. The
long-term potential of the Bates Hunter Project is the depth and strike continuation of
known veins and others that may be discovered from underground exploration activities.
Through June 30, 2008, Management has spent almost $5 million in diamond drilling,
geological sampling, mapping, data compilation, rehabilitation, operation and
maintenance on the project.
Although the project currently has no reserves, it is the author’s opinion that the project
presents an excellent exploration target. Judging from past production, historic mine
maps and assays, modern assay results, and recent exploration by Management, the
Project could find as much as 500,000 additional ounces of gold above the present
bottom of the Bates Hunter shaft. The results from recent drilling indicate that the veins
on the Bates Hunter Project continue to depth. The Bates Hunter Project is a “Property
of Merit” that would qualify a junior resource company for listing on the TSX Venture
Exchange.
Assessing a value for the Bates Hunter Project is very subjective since it is based on
either assumed reserves or resources or the value a willing buyer wishes to assign to
the project. It is the author’s opinion that the Bates Hunter Project has a value of $50 to
$100 million in today’s market based on the resource POTENTIAL. Assuming
successful completion of dewatering and underground resource definition whereupon a
feasibility study could be completed, this value could increase substantially.
The Bates Hunter Project represents a real exploration target that could yield significant
gold production. A staged systematic approach should be used to establish mineable
reserves prior to attempting to develop the property through to commercial production.
Management should continue to dewater and rehabilitate the shaft and explore the
property with both surface and underground drilling to confirm the existence of
mineralization near the abandoned workings and undertake metallurgical test work.
Priority should be given to dewatering activities.
The assay results from BH 08-10 indicate that low cost underground bulk tonnage
mining may be conceivable and heretofore neither contemplated nor investigated. It is
recommended that Management assay a number of 100 foot intervals of drill core
straddling the Bates Vein to determine if there is potential for bulk mining.
A Phase II Budget of $2 million (in progress) encompassing a 6,000 foot drilling
program of three or more deep holes along with continuation of dewatering activities is
recommended. The Phase II Budget includes a recommended expenditure allowance of
$500,000 to undertake upgrading of the water treatment plant to increase its throughput
and accelerate dewatering activities. Contingent upon successful completion of Phase II

activities further exploration in Phase III, budgeted at $1.5 million, should concentrate
on underground definition drilling and exploration. If successful, upon completion of
Phase III activities, Management could be in a position to conduct a feasibility study and
consider making a production decision.
Phase II – 2008 Budget
Item Cost
Diamond Drilling (6,000 feet @ $100/ft) $600,000
Dewatering Plant Upgrades Allowance $500,000
Dewatering and Rehabilitation (12 months @ $60,000/mo) $720,000
Miscellaneous and Contingency $180,000
Total Phase II $2,000,000
Phase III – Budget

Item Cost
Crosscut on 745 ft level (150’ feet @ $1000/ft) $150,000
Underground Diamond Drilling (40 holes @ 200 ft @ $50/ft) $400,000
Project Overheads (12 months @ $60,000/mo) $720,000
Metallurgical Test Work $100,000
Total Phase III $1,500,000

1.0 Introduction and Terms of Reference
1.1 Introduction
The author was commissioned by Mr. Stephen D. King to prepare this NI 43-101
compliant Technical Report on the Bates Hunter Project located in Central City, Gilpin
County, Colorado, USA for internal corporate use to solicit and secure project funding.
Management intends to also use this report to qualify the Bates Hunter Project as a
“Property of Merit” for submission to the TSX Venture Exchange. Glenn R. O’Gorman,
P. Eng., President of Orem Inc., is the “Independent Qualified Person” as defined in NI
43-101 responsible for the preparation and content of this Report.
1.2 Terms of Reference
In preparing this report, the author has followed the guidelines and formats to comply
with the Canadian Securities Administrators National Instrument 43-101 (NI 43-101)
“Standards of Disclosure for Mineral Projects” and form 43-101 FI (NI 43-101 FI) “The
Technical Report.” It is based, in part, on previous reports by the author dating from
January 15, 2004 to April 15, 2008 as itemized in the References to this report. The
author is familiar with the project and has worked as a consultant for both the previous
and present Optionors of the project in various consulting capacities on the project since
December 2003 and has undertaken no less than 7 site visits, the most recent being
July 2nd to 3rd, 2008.
1.3 Scope of Work
This Technical Report has considered the following in its compilation and preparation:
- Property Ownership, Land Title and Option Agreements
- Regional and local geology, structure, alteration, mineralization, historical
production records and archived data dating back to the 1860’s
- Quality control and assurance (QA/QC)
- Sample collection, preparation, security and assaying
- Data collection and management procedures
- Environmental and permitting issues
1.4 Reliance on Other Experts

The author is knowledgeable regarding the Bates Hunter project and is confident that
the technical data pertaining to it were properly collected and documented, and that
they are representative of the geology and resource potential of the property. In
preparing this report, the author has relied upon data, observations, interpretations, and
conclusions of previous workers on the property and on consultants employed by the
company. The author has not independently verified the historical data pertaining to
past production, and cannot accept responsibility for them. The provenance of technical
data is clearly indicated within the text of this report; the respective authors are listed in
the bibliography which forms part of this report.
In addition, the following people have been relied upon or have provided significant
technical input in the preparation of this report.

Mr. David S. Smith, B.A. (Geol.), M.Sc. (Geol.), MBA
3803 NE 120th Street, Seattle, Washington
USA 98125
Tel: (206) 390-2575
Resume attached in Appendix 7
Mr. Smith is a Consulting Exploration Geologist who is employed as a Consulting
Geologist and the Project Manager for the Bates Hunter Project. He is responsible for
directing and supervising all geological activities on the property and has provided a
significant portion of the technical reports and factual current data included in or
appended to this report or cited in the bibliography and whose geological opinions and
interpretations of the Bates Hunter Project have been relied upon by the author of this
report. Such data, opinions and interpretations have been reviewed and accepted by
the author as having been prudently collected and presented and are considered to be
reliable. In addition, Mr. Smith’s views, opinions and recommendations were relied upon
for planning the work program contained in this report.
Mr. Brian Alers, B.A. (Geol.), M.Sc. (Geol.), P. Geo. (PG-2951)
P.O. Box 775, Nederland, Colorado
USA 80466
Tel: (303) 258-7242
Mr. Alers is a Consulting Geologist employed as the Project Geologist for the Bates
Hunter Project and is responsible for the collection and assembly of all geological
mapping, core logging, sampling and assay data included in this report and appended
to it. Mr. Alers is a “Qualified Person” as defined in NI 43-101. The author has
independently viewed and re-sampled some of the drill core and underground workings
described in this report and concurs that the data presented herein is reasonably
accurate and verifiable and has been relied upon by the author as factual.
Mr. John M. Shallow, B.A. (Geol.), M.Sc. (Geol.)
3742 Wonderland Hill Avenue, Boulder, Colorado
USA 80304
Tel: (303) 444-0947
Mr. Shallow is a specialized Geological Consultant employed for the preparation of 3-D
Models, geological database management and compilation and production of all maps
and figures used in this report. The author has reviewed these documents and accepts
them as reliable and factually representative.
In addition, the author has relied upon the reports of specialized consultants hired to
investigate specific aspects of this report. In particular:
• Bensing and Associates of Franktown, Colorado is a land management company
that has investigated land and claim tenure issues; a land title report for the
Bates Hunter Property prepared for Bensing by First American Heritage Title
Company is attached in Appendix 1

• Mr. Frank Filas, P.E. was contracted to investigate and report on the status of all
project permits; his report is attached in Appendix 2
• Mr. Brian Hanson of Newfield is an environmental engineer who has investigated
environmental issues pertaining to the Bates Hunter project; their report is
attached in Appendix 3

2.0 Property Description and Location
2.1 Property Location
The Bates Hunter Project is located in the historic Central City mining district in Gilpin
County, Colorado, USA. Central City lies in the central Front Range region of the Rocky
Mountains, approximately 35 miles west of Denver, Colorado (Figures 1 and 2). The
property is specifically located within Section 12, Township 3 South, Range 72 West, 6th
Principal Meridian, centered at 39°48’02” North Longitude, 105°30’11” West Latitude.
The Project’s UTM metric coordinates are approximately 456,900E, 4,405,500N (North
American Datum 1927, zone 13). The project falls on both the Central City and the
Black Hawk U.S. Geological Survey 7.5-minute topographic maps.
2.2 Mineral Claims and Agreements
Management has acquired an interest in 30 patented lode mining claims and 6 parcels
of land within the town limits of Central City and Black Hawk, Colorado, as shown on
Figures 3 and 4 and listed in Table 1. Management is also pursuing acquisition of
additional claims and surface land packages through agreements with owners of
adjacent claims. A land title insurance company was engaged to verify ownership of all
claims acquired in the area based on the final negotiated property acquisition terms in
order to specifically define limitations that exist with respect to land use and mining
issues. Mineral title and surface ownership issues are complex in the project area:
claims date back to the 19th century, and surface lots of Central City and Black Hawk
have been platted over pre-existing mineral claims. In some cases, mining is restricted
to that portion of the vein commencing at 300 feet or 400 feet below surface depending
on restrictions imposed by the State County or Municipality on each specific title. These
are not considered to be critical mining issues but they do need to be well defined. The
Bates Hunter Project lands within the City Limits are generally
zoned for mining or industrial use.
2.2.1 Hunter Gold Agreement
Management entered into an agreement dated September 20, 2006 with Central City
Consolidated Mining Corp., Hunter Gold Mining Inc., Hunter Gold Mining Corp. and
George Otten to purchase all of the shares of Hunter Gold Mining Corporation and/or
acquire all of George Otten’s and these companies assets, consisting of the Bates
Hunter Mine and associated infrastructure, water rights, a water treatment plant, 17
mining claims encompassing an area of 21.23 acres and 4 surface land tenure parcels
plus patented mineral claims surface rights covering approximately 14.09 acres, along
with all associated permits and all ancillary equipment. The acreages as defined on
Table 1 and on Figures 3 and 4 represent the net acreages owned after incorporating all
exceptions, exclusions and rights of way. Land Titles and Mining Rights in Colorado are
exceptionally complex and although Tables 1 and 2 and Figures 3 and
4 have been diligently assembled, minor errors or misinterpretations may exist. All
mining claims have been patented, surveyed and are recorded in the Gilpin County and
Central City registers and plans and are subject to the State Apex Laws, vested and
accrued water rights and easements.

Management exercised their option to acquire a 100% beneficial ownership of the Bates
Hunter Project and consummated the Agreement during the period of June 6th to 11th,
2008.
Land titles for the Hunter Gold claims were investigated by the author at the Gilpin
County Courthouse in Central City in December 2003. The claims and properties at that
time were found to be owned in whole or in part by Hunter Gold Mining Inc. or by
George Otten personally as a result of Otten having paid tax arrears on particular
parcels. Tax sale ownership is subject to being returned to the original owner upon
payment of all tax arrears within specified times and conditions. It is understood from
discussions with Otten that land owned by him personally under these terms was
previously owned by Hunter Gold and was acquired by him in order to keep the land
package intact. At least one minor clerical error existed in these records at that time that
according to the Courthouse clerical staff could easily be rectified.
Land title for these mineral claims and land tenures has subsequently been reviewed by
company personnel and by personnel of the land management company Bensing and
Associates of Franktown, Colorado, whose report is appended hereto in Appendix 1.

Table 1. Project Land Holdings
Acquired from George Otten, Hunter Gold et al.
Patented Surface Land Ownership Claims Surface Notes
Claim Tenure Parcel Percent Acreage Acreage
#37 Ellieth 100 0.57 Mineral Rights Only
#73 Kip 100 0.36 0.36 Surface and Mineral Rights with
Exclusions
#76 Leavitt 100 0.67 Mineral Rights Only
#77 Elliot 100 0.03 Mineral Rights Only with Exclusions
#204 67 0.14 0.14 Surface Rights Patented with Claim
Discovery
German
#204 0.73 Surface Rights Easement to access
German and Erect a Headframe and Hoisting
Facilities
Bates with Exclusions
#235 100 1.05 Mineral Rights Only
McCallister
#252 Hope 100 0.11 Surface Rights Only
#2
(See Hope
#2
Mammoth
Hill also)
Hunter with Exclusions
#442 Carr 100 5.12 5.12 1% NSR to Goldsearch Resources
Surface Rights Exclude Claim #173
Ontonagon
Hunter
#675 Mosell 100 1.01 1.01 Surface and Mineral Rights with
Exclusions
#730 Saxon 100 2.92 2.92 Surface and Mineral Rights with
Exclusions
#734 Kitty 34 4.35 Mineral Rights Only with Exclusions
Hartford
Parcel: Block 47, 100 0.26 Surface Rights Only
lot 3, 4, 5, Central
City
lot 1-11, Central
City
lot 1, Central City
Conrad Lot 100 0.10 0.10
Total George Otten - Hunter Gold Acreages 21.23 14.09

2.3 Site Facilities
2.3.1 Mine
The Bates Hunter Mine site is located in a residential district within the city limits of
Central City and adjacent to a modern large casino/hotel complex.
The Bates Hunter Shaft is reported to extend to a depth of 745 feet and has been
dewatered and rehabilitated to about 420 feet from the collar. The shaft has been
examined in detail underground to about the 400 foot depth by the author during a
recent visit. The shaft is equipped with a 2-compartment 85-foot-tall steel head frame
and a single-drum 5-foot hoist capable of using a 7/8-inch diameter rope to hoist 2-ton
skips from at least 1,000 feet depth. The vertical to inclined shaft, driven down the vein,
dips at an average of about 82 degrees and has been rehabilitated and re-timbered to
the 400-foot level. Stoping was conducted adjacent to both sides of the shaft without
leaving any lateral pillar support. The shaft is suitable for exploration and/or small-scale
production at a rate of 200 tons per day or less. Speed limitations due to a few jogs in
alignment and dip variations due to having driven the shaft down the vein make it
unsuitable for mining to depth.
Historical information indicates that some difficulty was encountered at the 300-foot and
500-foot levels when the mine was last dewatered in the mid 1930’s; however,
rehabilitation undertaken to the 400-foot level to date has not encountered any serious
difficulties. Rehabilitation work undertaken in the mid 30’s should still be in good
condition since the shaft has been flooded ever since. Other mine-site facilities include
compressors, hydro and minimal support infrastructure such as a small office, a mine
dry, toilet facilities with showers, and a small shop all incorporated into the hoist house
(Figure 5).
2.3.2 Water Treatment Plant
A water treatment plant has been constructed adjacent to the mine head frame.
Although designed for 300 gallons per minute (432,000 gallons per day) of mine water
discharge, its practical throughput has been approximately 100 gpm (144,000 gallons
per day) due to the presence of more sludge in the mine water than was anticipated by
the plant design. Mine water inflow is approximately 100 gpm which means that
dewatering is proceeding very slowly. The plant has been in operation since August,
2005. This is a significant asset given the mine site location and environmental
concerns. Nearby similar plants being constructed by the State of Colorado are reported

to cost in the range of $8 million. It may be possible to upgrade this facility to handle
substantially more discharge and accelerate dewatering and rehabilitation activities.
Discussions are in progress whereby the State of Colorado and Environmental

Protection Agency are considering operating the plant themselves (and paying all
operating costs) to clean up local stream water and undertaking to treat any waters
pumped from the mine in return for providing the State and EPA with the right to use the
plant. Their engineering consultants have inspected the plant and have concluded that
unless its throughput capacity is increased or mine dewatering ceases there is no
excess capacity available for their use. Management is in the process of investigating
how to increase the plant capacity to accelerate dewatering efforts so that once
dewatering is complete, the excess capacity would be available for State use and
discussions could resume.

3.0 Environmental and Permitting Issues
3.1 General Environmental Issues
The Central City mining district is part of the 400-square mile Central City/Clear Creek
Superfund site. Superfund is the federal government program that cleans up the
country’s abandoned hazardous waste sites. The Central City/Clear Creek site is
administered by a partnership between the Colorado Department of Public Health and
the Environmental Protection Agency. Historic mining activities in the area have left
waste rock and tailings from which acid drainage has leached heavy metals into the
surface water and groundwater of the Clear Creek watershed which serves as a
drinking water source for Denver. Contaminants of concern for humans are arsenic and
lead, and for aquatic life are zinc, copper, cadmium, and manganese. Appendix 3.3
includes a 2006 fact sheet on the Central City/Clear Creek Superfund site.
Waste rock from historic mines is present on the Bates Hunter project claims, and could
be a potential source of acid drainage and heavy metals. As part of the Superfund
effort, several old mine shafts on the project have been capped for safety and to
minimize water inflow and outflow. Tailings in Gregory Gulch, likely on portions of
project claims, have been capped (Newfields, 2008).
Newfields performed a Phase I environmental assessment in 2008 on the claims being
acquired from Hunter Gold et al. and reported no environmental liens or other known
significant environmental issues on these properties. Newfields’ Phase I Environmental
Assessment Report is included in Appendix 3.1.
3.2 Permit Status
Permits for operations at the Bates Hunter mine and water treatment plant were
reviewed by the author and by permitting consultant Frank Filas, P.E. in 2006. His
report is included as Appendix 2.1.
3.2.1 Mine Permit
The mine permit status was investigated at the Colorado Division of Reclamation Mining
and Safety in Denver, which issued Permit M-90-041 for the Bates Hunter Mine.
According to Filas, “The permit is for a limited impact operation at the Bates Hunter
Mine (1 acre). The permit does not require the removal of buildings during reclamation
and allows for the extraction of up to 70,000 tons of ore and waste per year. The permit
provides for protection of structures owned by adjacent landowners and has a

reclamation bond of $5,000.” The permit is currently active and is included in Appendix
2.2.
Colorado permitting regulations allow for transfer of ownership or relocating the mine
site. The process is the same whether applying for a transfer or a new permit. The state
is obligated to grant the permit based on technical considerations only. The Colorado
Division of Reclamation, Mining, and Safety advised that permits for using cyanide have
been granted recently with the codicil that the tailings pond must be lined with an
impermeable synthetic liner and that cyanide destruction must be incorporated into the
process. They also advised that they have not refused to issue a permit and that any
permit application which has failed has been due to the applicant abandoning the
permitting process. Metallurgical information is insufficient to predict the actual process
flow sheet that will ultimately be adopted. If the project does go into production, it is
probable that froth flotation will be used to produce metal sulphide (gold) concentrates
which will be sent to a smelter.
3.2.2 Special Exception Use Permit
Filas reports that, “Exploration activities at the Bates Hunter Mine were approved by
Central City in a Special Exception Use Permit dated April 14, 1986” (Appendix 2.3).
The permit allows for shipping or handling of up to 25 tons of ore/waste per day.
Blasting is limited to clearing of debris from the shaft. It also requires that all state
permits be obtained including an exploration permit from the Mined Land Reclamation
Board. The term of the Special Exception Use Permit was for one year but the permit
states that a ‘Permit extension will not be denied except for cause.’ The permit was to
be reviewed on a semiannual basis by the city’s planning commission, but George
Otten stated that this has never been done. It is important to note that the Central City
permit does not allow for full-scale mine production or disposal of waste rock and debris
on the surface. The permit can also be revoked for cause (i.e., noncompliance or
perceived noncompliance with the terms of the permit).”
3.2.3 Water Discharge Permit
The Water Discharge Permit was investigated at the Colorado Department of Public
Health in Denver; Permit #0043168 is in good standing until March 31, 2013 and allows
the Bates Hunter to discharge up to a 30-day average of 300 gpm (432,000 gpd;
Appendix 2.4). The Stormwater Permit was investigated at the Colorado Department of
Public Health in Denver (Appendix 2.5); Permit #COR-040229 is in good standing until
December 2008, and is renewed annually. Transfer of permit ownership requires an
amendment showing the new owner and takes about 30 days to process.
The Bates Hunter Mine wastewater treatment facility (WWTF) discharges into Gregory
Gulch at a point approximately 0.75 mile upstream from the confluence of Gregory
Gulch and North Clear Creek. This area of Colorado has been heavily mined in the past
and the mainstem of North Clear Creek is currently listed in the Colorado’s 303(d) list of
water quality impacted streams for the parameters cadmium, iron, manganese, and
zinc. The Water Quality Control Division of the Colorado Department of Public Health in
Denver has determined that Gregory Gulch has a low flow of zero and that the Bates
Hunter Mine WWTF is the sole known point source contributor to Gregory Gulch
upstream of the confluence with North Clear Creek. Therefore there is no dilution, no

other sources of pollutants of concern, and the assimilative capacities are equal to the
in-stream standards applied to the Bates Hunter Mine WWTF effluent discharge.
3.2.4 Surface Drilling Permits
The State of Colorado Division of Reclamation, Mining, and Safety has approved Notice
of Intent Mineral Prospect Permit numbers P-2006-018 and P-2006-033, authorizing
surface exploration drilling on the Bates Hunter Project. Both permits and associated
correspondence can be found in Appendices 2.6 and 2.7.
3.2.5 Water Rights
Substantial water rights are attached to the mine permits. Any water pumped out of the
mine can be used by the project prior to discharging to the environment; the mine
currently produces about 100 gpm (110,000 gal/day). There is ample water to meet both
present and future project needs.
3.2.6 Permitting Issues
Several issues present challenges to permitting a modern mining operation in the
Central City district. These may or may not impede permitting progress but should be
accounted for in an assessment of project risk.
• The project’s location within the city limits of Central City and Black Hawk
• Local, regional, and state land-use planning and zoning, including resolutions
that may apply directly to mining
• Historic designations in Central City and Black Hawk
• Superfund site status and water quality issues in the Clear Creek watershed
• Local, state, and federal environmental regulations
• Local, state, and federal political realities, including a public sentiment against
mining in Colorado and the local focus on tourism and gambling

4.0 Accessibility, Climate, Local Resources, and
Infrastructure
4.1 Topography, Vegetation, and Climate
The project is located in the Front Range of the Southern Rocky Mountain
physiographic province, characterized at the project area by rugged mountainous terrain
with relatively steep slopes and narrow drainages. Elevations at the project range from
8,400 to 8,800 feet above sea level. The project straddles Gregory Gulch approximately
0.75 mile upstream from its confluence with North Clear Creek. Gregory Gulch is an
intermittent stream, carrying substantial flows of water during snow melt or heavy rains
and running dry during several months of the year.
Vegetation on the project is Rocky Mountain Montane Forest, dominated by Douglas fir
and quaking aspen trees. The Central City first-growth forests were denuded in the late
19th century to provide timbers for mining; because of this and slow growth due to the
high altitude, the existing trees are relatively small.
The project’s climate is characterized by cold snowy winters, with January temperatures
averaging 30°F, and warm summers averaging 72°F in July. Annual precipitation is
16 inches per year. The geological field season is typically April through November and
although snow and freezing temperatures pose a challenge in the winter, mining work
and exploration drilling can be conducted year-round.
4.2 Access, Transportation, Infrastructure and Local Resources
The Bates Hunter Mine is in an area of excellent infrastructure. It is currently served by
municipal electricity and potable water services. Access to the Bates Hunter Mine is
excellent, by good paved roads and the city streets of Central City. Dirt roads serve
other portions of the project and allow access for drilling and exploration work. Interstate
70 is approximately 8 miles by paved road from the project. Existing paved roads are
capable of handling semi-trailers to the mine site. Central City is a small town
(population 514); the nearest full-service community is Denver, a major metropolitan
area about one hour’s drive east that serves as the projects’ support hub for supplies
and equipment.
The Central City area was a major centre of historical mining activities in Colorado
during the late 1800’s and early 1900’s and although mining activity is currently being
conducted on a much reduced scale, skilled mining labor and technical staff are locally
available.
The project location within the Central City town limits, the limited surface acreage of
the project and complicated land ownership issues prohibits considering any open pit
mining activities without anticipating a long and possibly prohibitive permitting, land
acquisition and public approval process. Small scale underground mining is possible.

5.0 History
5.1 Central City Mining District History
Central City, Colorado is the oldest mining district in Colorado and the most important
mining district in the Front Range mineral belt. The Central City district produced about
4,134,000 ounces of gold and 118,900,000 ounces of silver, with the vast majority of
gold production (3,397,000 ounces) occurring between 1859 and 1903 (Simms, Drake,
and Tooker, 1963). The total annual production for the Central City district exceeded
$1,000,000 (50,000 ounces of gold) from 1868 to 1913 and peaked at a little less than
$3.3 million dollars (165,000 ounces of gold) in 1871 (Bastin and Hill, 1917).
The Gregory vein, 750 feet southeast of the Bates vein, was the first lode gold discovery
in the state of Colorado and was located on May 6, 1859. This discovery started a
frenzy of mining activity in the summer of 1859; by June 1859, some 100 sluices were
operating in the vicinity of the Gregory vein and men reportedly made from $100 to
$400 per day (5 to 20 ounces gold per day; Bastin and Hill, 1917). In September 1859,
some 890 men worked in Gregory Gulch. Early placer gravels and weathered sub-crops
of vein material were said to have yielded $100/day (5 ounces gold per day) for months
(Bastin and Hill, 1917). The amount of creek and gulch mining steadily declined as time
passed and the easily accessible pockets and pay streaks were worked out. In a year
or two the more productive gulches had been worked over, and the decomposed vein
matter in the leading lodes had been exhausted (Fossett, 1876, pg. 287).
Technology at that time was primitive compared to today’s standards. Prior to 1869,
miners were only able to recover gold from oxidized “free gold ores” which had been
weathered to remove base metals and sulfides leaving a enriched gold bearing iron-
oxide-filled quartz vein that could be easily separated. Processing technology of that
era incorporated wet crushing, gravity separation and mercury amalgamation of “free
gold ore”, and direct smelting of high-grade ores. Prior to 1869, high-grade, direct
smelting ore was sent across the ocean to Swansea, Wales for smelting. From 1859 to
1869, primitive mills were only recovering between 15% and 40% of the gold from
sulfide ore being processed and none of the silver or copper (Fossett, 1880, pg. 143). At
these recoveries, nothing less than $100 per ton (5 ounces per tone gold) could be
mined (Bastin and Hill, 1917). Professor Hill established the Colorado Smelting Works
at Black Hawk in 1867-8 and became the first successful local smelter to treat the
sulfide-bearing ores. From 1869-1877 recoveries improved to between 50% to70% of
the value in the sulfide ore and ore paying $15 to $20 per ton (0.75-1 opt Au) could be
mined with success (Fossett, 1876).
Mining was accomplished by hand. Once mining reached the water table, sulfide ores
were hand cobbed in the stopes and only the high-grade, direct-smelting ores were
brought to surface. As a result, stope fill in many of these old mines can grade as high
as 0.5 opt Au and is commonly in the 0.25 opt Au range. Two assays found by the
author on an old map of the 475 level of the Becker-Bates showed that the waste fill
assayed 0.16 and 0.24 opt Au. Underground muck sample assays from the Bates
Hunter workings are shown on Figure 6. The average of 12 muck samples is 1.3 opt Au,
2.7 opt Ag, and 277 ppm Cu. A sample of muck from the 112 foot Bates Hunter mine
(sample # BH-5050) contained 5.9 opt Au, 15 opt Ag, and 2.5% Cu.

Large-scale development has been greatly inhibited by the fragmented nature of land
ownership created by many small lode claims. The 1859 Miner’s Law of Central City
allowed the discoverer of a vein to claim 200 feet along the vein, and any other person
100 feet along the vein (Fossett, 1876). The division of the vein into so many small
claims was good for the division of wealth within the mining camp, but it eventually
restricted the growth of the district once underground mining was required. The
substantial outlay of capital required to purchase steam powered hoisting equipment
required the consolidation of many claims for a mine to turn a profit. It did not help the
situation when veins regularly migrated off claim boundaries at depth, or worse,
intersected at depth leading to many disagreements and lawsuits over ownership. The
most successful consolidation of a land position in the area was done by the Fifty Gold
Mines Co., on the Gregory (700 feet deep), O’Neal (986 feet deep), Fisk (1,250 feet
deep), Cook (1,450 feet deep), Bobtail, and Mammoth veins. The venture became one
of the most productive in the district and resulted in production of over $5,138,837
(256,941 ounces) of gold before 1887 (Bastin and Hill, 1917). The group of veins
belonging to the Fifty Gold Mines Co. lies about 2,000 feet southeast of the Bates
Hunter mine.
Central City production increased gradually after the Civil War in 1864 and reached its
peak in 1871. A steady decline in production began in 1914 and continued until 1921
and remained at a low level until 1935. Annual production in 1935 and 1936 reached
levels the district hadn’t seen since 1913, ($800,000 or 40,000 ounces of gold). Annual
production declined until 1942 when restrictions were placed on the mining of gold
during World War II (Simms, Drake, and Tooker, 1963).
5.2 Bates Hunter Mine History
The Bates vein was the second vein discovered in the Central City district. It was
located by John H. Gregory on May 19, 1859, 13 days after his discovery of the Gregory
vein, (Fossett, 1876). The Bates vein was close to the center of early activity, it is
parallel to and 750 ft to the northwest of the Gregory vein. Production from the Gregory
vein is estimated at 500,000 ounces of gold (Fossett, 1876; Callbreath, 1899). Although
the Bates vein was one of the richest and most productive in the early history of the
area, it was never consolidated and mined to any great depth and has only been
operated in intervals. In 1863-4 ten Eastern companies were formed on different parts
of the Bates, but little work has been done since 1869-70 (Fossett, 1876). “The surface
dirt was extremely rich and so was much of the vein” (Fossett, 1876). Production
records indicate that the Bates Hunter Mine produced approximately 153,651 ounces of
gold: 30,000 ounces were mined prior to 1880, another 120,000 ounces from 1880-
1899, and 3,651 ounces from 1908-1918 (Fossett, 1876; Callbreath, 1899). The Bates
shaft was sunk to 745 feet before 1910. During 1930-35, the mine was dewatered and
the lower stopes opened up; no production records have been found from this period.
Published and unpublished geologic information has been compiled into a longitudinal
vein section map for the Bates Hunter Mine (Figure 6). This longitudinal vein section
shows gold assay values for 64 rock samples taken by Harry Williams from sometime
during 1930-35 (Williams, 1934?). The locations and grades are presented as they were
shown on Mr. Williams’ map with little information on the thickness of the veins
sampled. The average gold assay for the 64 vein samples shown on the Harry

Williamson map is 1.141 opt Au, ranging from 0.13 to 8.6 opt Au with a few in the range
of 3 to 5 opt Au.
Fred Jones, who was the Colorado Commissioner of Mines from 1943-1950, was
probably one of the last men to see the lower levels of the Bates Hunter Mine. Jones
wrote a report dated June 15, 1939 on the condition of the Bates Hunter Group of Mines
(Jones, 1939). In this report, he noted that 3 ore shoots were open in the lower levels of
the mine and mentions the importance of cross-cutting veins in localizing ore. These ore
shoots appear to be the same ones shown on Figure 6, and his assay values are
comparable to those reported by Harry Williams. Jones described ore shoots occurring
on the 300, 700 and 800 (745??) foot levels. On the 300 foot level, samples taken over
a 40 feet strike length ranged from 0.34 to 1.8 opt Au. On the 700-foot level, he states
that the “ore stopes 4 feet wide” and that 50 feet of the ore is exposed near the shaft, in
the bottom of the drift, that assayed from 0.4 to 4.60 opt Au. Figure 6 also shows assay
values from United States Geological Survey publications, previous drill programs and
samples taken during the current drilling and exploration program. This figure was
adapted from several generations of material from both published and unpublished
sources.
In 1984, George Otten purchased the Bates Hunter Mine and surrounding claims, and
added several contiguous claims over the next few years. Otten installed the present
mine headframe and hoist, built the hoist house, and rehabilitated the mine shaft to a
depth of 217 feet. In 1993 he commissioned the construction of the present water
treatment plant. On September 20, 2006, Management entered into an agreement with
George Otten, and a group of companies either owned or controlled by him, to purchase
the physical assets, mineral claims and land tenure parcels held by

George Otten et al. Closing on this agreement occurred on June 12th, 2008 Adjacent
Mining History
In addition to the approximately 154,000 ounces of gold produced from seven mines on
the Bates Vein, compilations of historic production records indicate that the immediate
vicinity around the Bates Hunter project has produced 1,135,000 ounces of gold from
six veins. These include the Fisk vein (448,000 ounces of gold from seven mines), the
Gregory vein (342,000 ounces from two mines), the German vein (113,000 ounces from
one mine), the Leavitt vein (63,000 ounces from five mines), and the Gaston vein
(15,000 ounces from one mine).
The Buell mine on the Leavitt vein was one of the major producers in the Central City
District and is included in the Hunter Gold mineral claims. The Leavitt vein is parallel to,
and 150 feet northwest of the Bates vein. Complete production records have not been
located. Pockets of very high grade ore were frequently encountered during mining
activities and stoping widths up to 16 feet were encountered as described by Fossett,
1876, pg. 319.
“The Leavitt was reopened in 1871, at a point beneath Gregory
street and gulch, Central City. At a depth of 50 feet an ore body
of soft gangue rock was entered, ten feet wide, of an average
value of $10 a ton. Subsequent work continued in the ore, the vein
widening and closing, but never giving out for long distances. At a
depth of 130 feet a rich body of black, decomposed sulphurets
was entered having a width of four feet. Thousands of dollars
were obtained at the Black Hawk smelting works for single lots of
this ore-there being many tons in each shipment. Several tons
were sent across the ocean to Swansea, and brought $300 per
ton. The gangue rock, lying beside this in the vein, was worth $80
a cord. In one place there were over four feet of ore carrying 15%
of copper. The ore body was generally four to ten feet wide, but
at a depth of 400 feet widened to 16 feet, averaging $10 under the
stamps. Great pockets and seams of smelting ore were found.
Unbroken masses of ore, weighing over one thousand pounds
each and assaying $200, were occasionally raised.”
To put this into perspective, the price of gold at that time was $18.93/oz. The gangue
rock (waste) described above graded approximately 0.30 oz. Au/ton. Run of mine ore
processed through the stamp mills using gravity and amalgamation recovery techniques
RECOVERED about 0.53 oz Au/ton.
The German mine on the German vein, part of the Bates vein system, is located 1,500
feet southwest of the Bates Hunter mine and is included in the Hunter Gold mineral
claims. The German mine is 745 feet deep and produced approximately 113,170
ounces of gold: 112,500 ounces were mined prior to 1899 (Fossett, 1876; Callbreath,
1899).

6.0 Geologic Setting
6.1 Regional Geology
The Central City mining district lies within a terrane of Precambrian rocks that comprise
the core of the Front Range portion of the Rocky Mountains in Colorado. The 1,800 to
1,750 Ma sequence of bimodal volcanic and clastic sedimentary rocks accumulated on
the southern edge of a 2,200 Ma Archean craton along what is now the Wyoming-
Colorado border. Initial greenschist metamorphism and deformation produced mostly
upright, tight isoclinal folds with a penetrative fabric and associated bodies of pegmatite.
Rootless folds and boudinage features are characteristic of this deformation. This
sequence of rocks was then deformed and metamorphosed to upper amphibolite grade
during syn- and post-tectonic intrusion of the Boulder Creek granodiorite at 1,750 to
1,700 Ma, resulting in large-scale northeast trending upright open parallel folds.
Intrusion of the 1,400 Ma Silver Plume biotite-muscovite granite was accompanied by
thermal metamorphism, minor deformation, and intrusion of pegmatites. The northeast
trending Idaho Springs-Ralston ductile shear zone (trending 055°), which lies just
southeast of Central City, most likely is related to this event. Later in Proterozoic time,
long northwest and north-northeast trending faults or “breccia reefs” were developed
(Tweto and Simms, 1963; Lovering and Goddard, 1950).
Uplift and erosion of the Precambrian rocks resulted in a beveled surface upon which
terrestrial and marine sediments were deposited. Kimberlites, carbonatites, and other
mafic intrusions were emplaced sporadically prior to an erosional period during the
Silurian. Extensional block faulting occurred during the Permian, creating the Ancestral
Front Range. This was followed by the complete erosion of the uplift and the
transgression of the Intercontinental Cretaceous Seaway, resulting in the deposition of
more than 15,000 feet of terrestrial and marine sediments. Uplift of the current Front
Range began in Late Cretaceous time (Tweto, 1975), creating a series of north-
northwest trending uplifts and basins that reactivated pre-existing north-northwest
trending faults in Colorado (Chapin and Cather, 1981).
Tertiary-aged igneous activity and related mineralization occurred throughout the Front
Range region from 54.4 to 66.5 Ma (Rice, Lux, and Macintyre, 1982). Various porphyry
dikes and small plutons were emplaced along pre-existing weaknesses in the
Precambrian rocks. The location of these Tertiary intrusives defines the northern portion
of the northeast-trending Colorado Mineral Belt. Principle stress directions in the Central
City area during Laramide time were oriented northeast-southwest at 068° (Caine et al.,
2006).
After a lull in plutonism and volcanism during the Oligocene (55-38 Ma), tectonism was
dominated by basaltic magmatism related to the development of the Rio Grande Rift in
the Eocene (Lipman, 1983). Wide-scale regional uplift brought the area to its current
elevation. Repeated cycles of alpine glaciation occurred during the Pliestocene.
Extensive erosion has exposed the mineralization and caused supergene enrichment of
gold, silver, and copper near the surface.

6.2 Regional Rock Units
The Precambrain rocks in the Central City district are an inter-layered and generally
conformable sequence of gneiss, migmatite, and intrusive igneous rocks (Simms and
Gable, 1964; Figure 7). The lithologic succession in the area consists dominantly of an
inter-layering of thick units of biotite gneiss and microcline-bearing gneiss (Moench and
Drake, 1966). These gneisses are deformed into a broad, northeast trending, open
asymmetric fold that verges to the southwest, called the Central City anticline.
Numerous sub-parallel asymmetric folds with the same asymmetry can be found at
every scale. A major unit of microcline gneiss, about 1,500 feet thick, is exposed along
the axis of the Central City anticline. It is overlain and underlain by biotite gneiss units
and contains thin units of biotite gneiss, amphibolite, biotite-sillimanite gneiss, garnet-
biotite gneiss, quartzite, granodiorite, and biotite-quartz gneiss. The lower biotite gneiss
unit was penetrated in some of the deeper mines in the district.
Tertiary through Oligocene-aged igneous rocks of the Central City district consist of
leucocratic granodiorite porphyry, quartz monzonite porphyry, bostonite porphyry and
quartz-bostonite porphyry (Sims, Drake and Tooker, 1963). The older intrusions tend to
form small irregular stocks and the younger ones form long thin dikes that trend
northwest, northeast, and due east. Field relations clearly indicate that the quartz
bostonite porphyry and bostonite porphyry are the oldest Tertiary intrusive rock, and
these early bostonites show a close spatial association with uranium mineralization that
dates at 58±1 Ma (Phair, 1979). The Laramide intrusive rocks of the region are among
the most radioactive igneous rocks in the world (Larsen and Phair, 1954); the quartz
bostonite porphyry, for example, is about 15 times as radioactive as the average granitic
rock (Sims, 1982).

6.3 Deposit Types
Precious and base-metal deposits in the Central City area are mesothermal vein-type
deposits formed at 220° to 380° C in the early Tertiary under 2,600 to 4,600 feet of
cover (Lovering and Goddard, 1950), possibly above an alkaline porphyry molybdenum
system (Rice et al., 1985). Vein textures suggest passive infilling of fractures. Angular
clasts of previous vein stages are common inclusions within vein breccias. Vein
mineralogy is dominated by quartz with base-metal sulfides (pyrite, chalcopyrite,
chalcocite, bornite, tennantite, and enargite); four stages of mineralization have been
identified. Veins range in thickness from hairline to 8 feet, and are surrounded by wall-
rock alteration envelopes as thick as 80 feet. Grades of vein mineralization detected
during the exploration program range up to 5.9 opt Au. A project geology map is
included as Figure 8.
6.4 Mineralization
The discussion of mineralization below is the work of project geologists Brian Alers, a
“qualified person” and John Shallow, a consulting geologist. The author has not
personally corroborated all of the evidence presented, but it is consistent with his
observations and knowledge of the project’s geology.
Four distinct stages of mineralization have been identified in the Central City district
based on crosscutting relations among intrusions and various vein types (Tables 3 and
4; Sims, Drake and Tooker, 1963). The veins grade into one another but can be
classified according to the distinctive mineralogy and geochemistry of each stage of
mineralization. They are referred to below as Stages 1 through 4. Further refinement of
the vein paragenesis was achieved by identifying specific structural relationships and

defining the mineralogy and trace element geochemistry of each of the three main post-
uranium vein stages. Note that vein structure and orientation is a separate issue from
the temporal paragenesis of mineralization: veins of different stages do not necessarily
stages.
Table 3. Stages and Characteristics of Bates Hunter Mineralization
Stage Vein Type Thickness Vein Minerals Anomalous
(ft) Elements
Stage 1 Pitchblende -- pitchblende, secondary U minerals U
Stage 2 Quartz- 0.1 – 0.8 quartz, pyrite, chalcopyrite, tennantite, sphalerite Au, Ag, Cu (Pb,
pyrite Zn, As, Bi, Sb)
Stage 3 Base-metal 0.1 - 6 quartz, chalcopyrite, pyrite, tennantite, enargite, Au, Ag, Cu, Te,
sulfide marcasite, bornite, chalcocite, sphalerite, galena, Pb, Zn, As, Bi, Mo,
goldfieldite(?)/sylvanite U, Vn
Stage 4 Telluride hairline – 0.5 chert/chalcedony, calcite, clay, fluorite, sylvanite, Au, Ag, Cu, Pb,
hessite Zn, As, Bi, Sb
Table 4. Average Geochemistry of Mineralization Stages from Selected,

Representative Samples
Stage Number of Au Ag Au/Ag Cu Te Pb Zn As Bi Sb Mo U V
Samples opt opt ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm
Stage 2 17 0.710 1.04 0.87 2804 <5 206 181 171 61 17 4 0 4
Quartz-pyrite
Stage 3 18 1.500 3.78 0.66 9225 0 1229 441 531 394 164 21 25 9
Base-metal
sulfide
Stage 4 7 0.289 3.53 0.03 6839 18 902 1236 376 340 73 10 3 9
Telluride
6.5 Ages of Mineralization

Mineralization at Central City has been dated at between 65 and 58 Ma, placing it
squarely in Laramide times (70 to 55 Ma) of the late Cretaceous and early Tertiary.
Recent age dates on sericite related to precious and base metal mineralization (Stages
2 and 3) range from 65.4±1.5 to 61.9±1.3 Ma (Caine et al., 2006) and 59±1 Ma (Rice,
Lux, and Macintyre, 1982). Although the age date of 58±1 Ma (Phair 1979) suggests
that uranium mineralization is later, cross-cutting relations clearly indicate that uranium
predates precious and base-metal mineralization (Sims, Drake and Tooker, 1963).
6.5.1 Pitchblende: Stage 1
Stage 1 mineralization consists of pitchblende and local secondary uranium minerals
that occur sporadically in small pods or lenses along pyrite and composite veins
associated with early uraniferous quartz bostonite porphyry dikes, (Phair 1979). The
largest known ore shoots are rarely larger than 50 tons, but they can grade as high as
10% uranium (Sims, Drake, and Tooker, 1963). The pitchblende deposits are all
clustered on the Quartz Hill and upper Russell Gulch area (Sims, Drake, and Tooker,
1963); the deposits on Quartz Hill were of national importance prior to World War I.
Management is not targeting uranium mineralization in its exploration.

6.5.2 Quartz-Pyrite Veins: Stage 2
Stage 2 mineralization consists of braided networks of 0.1 to 0.8 foot wide sub-parallel
quartz-pyrite veins surrounded by quartz-sericite wall-rock alteration envelopes up to
80 feet thick. Stage 2 veins contain light gray to clear quartz with variable amounts of
coarse to fine-grained pyrite alone, or with variable quantities of fine-grained
chalcopyrite, very-fine-grained “black-tar” tennantite, and fine-grained sphalerite. Stage
2 veins rarely contain any galena or enargite. Open-space filling, crustiform textures,
and clear euhedral quartz crystals are characteristic vein textures. Pervasive quartz-
sericite wall-rock alteration accompanied this stage of mineralization, and wall-rock
alteration style and intensity are strongly influenced by the host rock composition. Stage
2 quartz-pyrite veins are found in the hangingwall of composite-type veins or as distinct
braided networks of veins that trend northeast. Examples include the Bates, German,
McAllister, Gregory, O’Neil, Branch, Mosell, and Cousin Jack veins, as shown in red on
Figure 8.
Although gold is the predominant economic metal in the quartz-pyrite veins (Au/Ag
ratios range from 0.2 to 0.8), and were an important source of gold ore in the Central
City district, the gold grade of Stage 2 veins is spotty at best and ranges from 0 to 0.8
opt Au, with the majority of values around 0.15 to 0.25 opt Au. The higher gold grades
accompany increases in chalcopyrite and tennantite content of the veins. Lead, zinc,
arsenic, bismuth, and antimony are weakly anomalous in Stage 2 mineralization;
tellurium, molybdenum, uranium, and vanadium are not anomalous (Table 4).
6.5.3 Composite Base-Metal Sulfide Veins: Stage 3
Stage 3 composite base-metal sulfide mineralization consists of gray, dark gray, and
black quartz veins 0.1 to 6 feet wide with variable amounts of coarse-grained
chalcopyrite and pyrite, fine-grained tennantite, coarse-grained enargite, fine-grained
marcasite, and a very fine-grained black mineral with lesser bornite, chalcocite,
sphalerite, galena, and possibly goldfieldite(?) or sylvanite. Coarse-grained sulfides,
sharp vein margins, and silicificaton are characteristic vein textures. Stage 3 alteration
is limited to silicification adjacent to veins because of the intense earlier quartz-sericite
alteration of wall rocks related to Stage 2 quartz-pyrite mineralization. The composite
base-metal sulfide veins occupy the footwall of many Stage 2 quartz-pyrite braided vein
networks. Examples include the Bates, German, McAllister, Gregory, O’Neil, Branch,
Mosell, and Cousin Jack veins, as shown in red on Figure 8. Stage 3 base-metal-sulfide
veins were the primary source of the gold, silver, and copper ore mined in the Central
City district. This vein type was termed “composite ores” by Bastin and Hill (1917),
because they felt that it represented two superimposed stages of mineralization: Stage
2 quartz-pyrite veins cut and filled by base-metal sulfides characteristic of Stage 3
veins.
Gold content is highly variable within the composite base-metal sulfide veins. Typically,
the higher gold grades are found within irregular streaks and lenses of the more
chalcopyrite-rich portions of coarse sulfide veins. Locally, Stage 3 veins contain broken
coarse chalcopyrite or pyrite grains that have been re-healed by black very fine-grained
sulfides, tennantite, and quartz of Stage 4 mineralization. The composite base-metal
sulfide veins can contain up to 5.89 opt Au, 15.36 opt Ag, and 2.58% copper (Table 4).
Au/Ag ratios in Stage 3 mineralization are variable and range from 0.2 to 1. Many trace
elements in Stage 3 composite base-metal sulfide mineralization are anomalous

including tellurium, lead, zinc, arsenic, bismuth, molybdenum, uranium, and vanadium
(Table 4).
6.5.4 Telluride: Stage 4
Stage 4 Telluride mineralization consists of braided networks of hairline to 0.5-foot-thick
veinlets of blue-gray cherty silica/chalcedony, ferruginous calcite, white clays, and
sometimes purple fluorite with variable amounts of Au and Ag-bearing telluride minerals,
primarily sylvanite (AuAgTe4) and hessite (AgTe). The telluride-bearing veins in the
Central City district occur in separate veins that are parallel to and crosscut the earlier
vein stages (Bastin and Hill, 1917). The Ag-telluride veins have been observed parallel
to and cross-cutting thin dikes of a younger tan to buff-colored Tertiary intrusive. The
telluride-bearing veins of Central City are subtle in appearance, and their role in
boosting gold grades in many of the older mines may not have been fully recognized by
the old-time miners. Examples of Stage 4 veins include the Hartford, Groundhog,
Simmons, and North Maine veins, as shown in green on Figure 8.
Gold in the telluride-bearing veins can be coarse and extremely high grade, but the
grades are notoriously erratic. Ag-telluride bearing veins have not been described
anywhere in the Central City District literature, but the Ag telluride hessite (AgTe) has
been found in diamond drill core from the Bates Hunter Mine area. Current assays show
that Stage 4 telluride veins contain from 0.3 to 0.5 opt Au, and 2 to 6.5 opt Ag. The
veins are silver rich with low Au/Ag ratios that range from 0.01 to 0.1. Copper, lead,
zinc, arsenic, bismuth and antimony are anomalous; molybdenum, uranium and
vanadium are not anomalous (Table 4).
Telluride mineralization occurs in many other sites in the region. The largest producers
of telluride ores in the Central City district were the War Dance and East Notaway
mines. In the War Dance mine production came from two distinct veins: sulfide ore
averaged 0.2 opt Au and 30 opt Ag, while the telluride ore nearby ran 20 opt Au and
3.5 opt Ag (Bastin and Hill, 1917). The telluride veins at the War Dance mine are
included in a 3-foot-wide massive purple fluorite vein. The telluride veins of the East
Notaway mine (about 2 miles south of the Bates Hunter mine) are characteristically 1 to
3 inches wide and consist of dark-gray cherty silica, fine-grained pyrite, some
antimoniacal tennantite, and varying amounts of telluride, probably sylvanite (Bastin and
Hill, 1917). Small amounts of tellurides have been found in the Casino, Gem, Kokomo,
Sleepy Hollow, and Gregory mines. Pierce (1890) first noted the presence of tellurium in
certain ores from the Gregory Mine, but the nature of the tellurium mineral from which it
came is unknown (Bastin and Hill, 1917). Sims, Drake, and Tooker, (1963) determined
that the tellurides may be more widespread than previously recognized, but they note
that their only source of information is limited to that reported by Bastin and Hill (1917).
They do cite additional telluride mineral occurrences at the New Brunswick, Powers,
and Pittsburgh mines. The Treasure Vault and Gem mines produced significant
amounts of telluride ore from the Idaho Springs district, 10 miles southwest of Central
City, and some ore contained coarse sylvanite crystals. At the Boulder County telluride
mines, some 20 miles northeast of the Bates Hunter project, hessite (AgTe) is
considered to be the latest-stage telluride mineral, often encrusting earlier telluride
minerals such as sylvanite (AuAgTe4). Banded hessite and petzite (AuAg3Te2) was a
common ore type in the Boulder County telluride mines.

6.6 Vein Structure and Ore-Shoot Geometry
Three orientations of veins have been identified in the area of the Bates Hunter project
(Figure 9). As mentioned above, vein structure and orientation is a separate issue from
the temporal paragenesis of mineralization: veins of different stages do not necessarily
stages.
The highly productive northeast-trending veins (azimuth ~055º) contain abundant
coarse sulfides and have complex geochemistry, implying that they were open during all
stages of mineralization: they contain high gold, silver, copper, base metals, trace
elements, and uranium. Examples include the Bates, German, McAllister, Gregory,
O’Neil, Branch, Mosell, and Cousin Jack veins, as shown in red on Figure 9.
There are two varieties of generally east-west trending veins. The first type contains
high-grade gold, some silver, and anomalous copper, arsenic, and molybdenum.
Examples include the Hartford and Simmons veins. The other east-west trending vein
type are thin veins of generally Stage 4 mineralization containing very fine-grained black
Ag-telluride (hessite) and anomalous copper, bismuth, arsenic, antimony, molybdenum,
and lead. These Ag-telluride veins occur next to and parallel with thin tan Tertiary
intrusive dikes with tan banded chalcedonic quartz. Examples include the Groundhog,
North Maine, and Hartford veins (shown in green on Figure 9).
The veins and minor stockworks of Central City are best described as undulatory veins,
as discussed by Wise (2005). Undulatory veins are faults (and to a lesser extent joints)
that propagated as curviplanar surfaces and commonly exhibit undulating or corrugated
shapes. They result from local stress field variations related to the interaction of

propagating parallel braided fractures. In these systems, ore shoots generally constitute
only a small part of any given vein, occupying what were the open parts of the faults
during vein formation. The observed vein patterns in Central City are not the result of a
simple conjugate set of fractures, but are braided segments of low-displacement left-
lateral faults with less than 3 feet of oblique slip.
Through surface geologic mapping, compilation of old mine maps, drilling, and three-
dimensional computer modeling, the complex nature of the undulatory veins
characteristic of the Bates Hunter Mine is becoming clearer. The most productive veins
are not a single vein but a complex network of branching undulatory vein segments
between major parallel vein branches spatially located 30 to 60 feet apart (Figure 9).
Ore shoots consist of a series of smaller dilational en-echelon vein sets (ladder veins)
between and at acute angles to two major parallel master veins. The dilational jogs and
resulting ore shoots were localized by undulations in the master veins due to changes in
rock type, folds in host rock, vein intersections, and local stress field variations. Ore
shoots coincide with undulations in both strike and dip of master veins. Important
examples of two master vein branches that interact with each other to create a braided
vein network include the Gregory/O’Neal veins and the Bates/German Veins.
Within any given braided vein network at Central City, the vein in the footwall generally
has higher gold grades than the vein in the hanging wall. Ore shoots generally have
well-defined visual boundaries, high-grade gold and silver concentrations coinciding
with the readily visible base-metal sulfides. In contrast, ore shoots in pyrite veins without
the presence of base metals, are less readily visible; historic miners based cutoff on
assays rather than visual mineralogy (Collins, 1904).

7.0 Exploration
7.1 General
Management has been conducting exploration of the Bates Vein and adjacent veins
since 2004. This exploration program has included:
• surface mapping and sampling of the project and surrounding area
• underground mapping and sampling in accessible workings of the Bates Hunter
Mine
• researching historic mining and production records
• researching academic literature on the geology of the Central City mining district
and surrounding region
• detailed research and interpretation of structural geology of the precious-metals
vein systems in the district
• computer modeling of veins, vein intersections, and structural geology to
generate exploration targets
• surface diamond drilling and associated core logging, assaying, and
interpretation of data
• surveying mineral claims, mine workings, and physical features of the project
• dewatering the Bates Hunter shaft in anticipation of underground drilling
• permitting activities and water sampling/analysis requirements related to the
water treatment plant
The company is currently engaged in a Phase II surface drilling program, planned for
6,000 feet in three or more holes to test the depth potential of vein intersections beneath
the historic Bates Hunter Mine workings. Exploration mapping and sampling results to
date are outlined below.
7.2 Surface Mapping and Sampling
Geologist Brian Alers has conducted geologic mapping and sampling on a scale of 1
inch to 200 feet. This mapping included extensive compilation and integration of pre-
existing and recent geologic work. Sample notes and analytical results for surface
samples are included in Appendix 4; assay certificates for all surface assays are
included in Appendix 5.
7.3 Underground Mapping and Sampling
Brian Alers has also conducted detailed surface and underground mapping and
sampling by tape and Brunton survey on a scale of 1 inch to 10 feet for the 93, 112,
120, 130 and 163 foot levels of the Bates Hunter mine. Selected analytical results from
underground samples are tabulated on Table 5 and shown on Figure 10. Sample notes
and analytical results are included in Appendix 4, and assay certificates for all
underground assays are included in Appendix 5.

Underground muck sample assays taken in the Bates Hunter workings suggest that
stope fill in this mine may be rich as suggested by historical records: twelve muck
samples averaged 1.3 opt Au, 2.9 opt Ag, and 0.28% Cu; the highest-grade sample was
from the 112-foot level, and assayed 5.9 opt Au, 15 opt Ag, and 2.6% Cu (Table 5).
Table 5. Muck Samples from Bates Hunter Underground Workings
Sample # Location Type Au (opt) Ag (opt) Cu (%)
BH-5055 Bates 163 level west muck 2.071 2.46 0.092

BH 5082 Bates 163 level west muck 1.631 3.36 0.069
BH-5007 Bates 112 level east muck 0.090 0.41 0.021
BH-5014 Bates 112 level east muck 0.340 0.30 0.032
BH-5017 Bates 112 level east muck <0.01 <0.01 0.002
Average 1.294 2.92 0.278
Figure 10 illustrates that vein sampling by Alers from un-mined remnants of the
historical workings confirms the presence of high grade but variable gold content in the
veins. Alers’ limited sampling, of the upper 163 feet of the mine, generally corroborate
historical sampling data for these levels and add credibility to the potential for defining
“mineable” high grade shoots on the lower levels indicated by historic documentation
and assays as shown on Figure 10. Neither the recent sampling by Alers nor the
historical sampling and anecdotal information are adequate to support that an economic
mine can be established. However, the indicated high grade nature and vein widths up
to 24 inches or more, imply that further exploration is warranted.
7.4 Mine Dewatering and Rehabilitation
The Bates Hunter mine workings, which extend to a depth of about 745 feet, are
currently flooded to a depth of about 420 feet. Management has been dewatering the
workings in order to provide access for further underground mapping and sampling, and
ultimately underground drilling. At the time of the author’s visit on July 3rd, 2008
dewatering had reached and exposed the floor of the 424-foot level shown on Figure
10. This level is open in both directions from the shaft and may provide Management
with their first opportunity to acquire substantial underground sampling data. The
company has been rehabilitating the Bates shaft as the water level lowers, adding
timbers, ladders, lighting, ventilation, communication, safety features, and other
improvements as necessary.

8.0 Drilling
8.1 GSR Goldsearch Drilling
GSR Goldsearch Resources drilled two reverse-circulation holes on the property in
1990. The first hole intersected the Bates Hunter mine workings at approximately the
230 foot level just west of the Bates shaft, as verified by current Bates Hunter miners
(Figure 6). The second hole was targeted beneath the Bates Hunter shaft bottom, and
intercepted a zone of 0.48 opt Au over 10 feet. There is some confusion about the
location of this intercept; previous reports indicate that the hole pierced the Bates vein
at a depth of 900 feet below surface, either below the shaft or below the Bates
“workings.” Based on the surveyed location of the drill collar, as identified by George
Otten, and the description of the orientation of the hole in GSR Goldsearch’s report,
Current 3-D modeling shows that this hole appears to have intersected the Bates vein at
a depth of about 1,000 feet below surface and about 600 feet west of the shaft (Figure
5).
8.2 Phase I and Phase II Surface Drilling
Phase I drilling consisted of 7,739 feet of core drilling in seven holes ranging in depth
from 50 to 2,265 feet (Table 6). The seven holes were drilled from two surface drill
setups southeast and southwest of the Bates Hunter Mine. Drilling for Phase I began on
September 8, 2006 and ended on December 20, 2007. Drilling was performed by G&O
Diamond Drilling Contractors Ltd., of Hay Lakes, Alberta.
Core sizes included HQ, NQ, and BTK. In order to maintain drill circulation after drilling
through old mine workings, drilling contractors reduce rod diameters in successive
stages. Drillers also used wedges to keep drill holes on target. All holes were
abandoned by grouting with neat cement grout from total depth to the surface as
specified in the drilling permit authorized by the Colorado Division of Reclamation,
Mining, and Safety.
The intention of the Phase I surface drilling program was to test the mineralization
below the existing Bates Hunter Mine workings. Holes were aimed at several targets
approximately 1,000 feet below the Bates Hunter Mine collar elevation, and about
300 feet beneath the deepest levels of the mine workings. Due to difficult drilling
conditions, several holes were lost or stopped before hitting their targets; five (5) of the
seven holes hit their intended targets.
As of the date of this report Phase II surface drilling is underway, with 6,000 feet of core
planned in three holes targeted at locations where the Bates Vein system is interpreted
to intersect other cross-cutting veins. As in Phase I, target depths are 1,000 feet below
the Bates Hunter Mine shaft collar. Two of the planned three holes have been
completed for a total of 4,289 feet and their results have been included in this report.
Drilling is being performed by Advanced Drilling Inc., the American subsidiary of Cabo
Drilling Corporation of Vancouver, British Columbia, and began on February 27, 2008
and temporarily stopped on July 3, 2008.
A long section (Figure 6), plan map (Figure 11), and four cross sections of the Bates
vein system Figures 12 through 15 (BH-06-02 x-section; BH-07-07 and BH-07-08 x-
section; BH-08-09 x-section; BH-08-10 x-section) show all completed Phase I and
Phase II drill holes. Table 7 lists selected assay results for Phase I and Phase II surface
drilling. Sample notes and analytical results for drill samples are included in Appendix 4;
assay certificates for all drill samples are included in Appendix 5 and drill logs are in
Appendix 6.
Table 6. Phase I and Phase II Surface Drill Hole Information
Hole Setup E N Elev Az Dip Start End Depth Notes
Date Date
Phase I
BH-06-01 Gregory 50623 49556 8353 292 -52 9/8/06 9/23/06 405 Twisted off drill string at 405
BH-06-02 Gregory 50648 49557 8353 292 -52 9/26/06 11/24/06 2025
BH-06-02A Gregory -- -- -- Abandoned part of BH-06-
02 Created by wedge at 520
BH-06-03 Gregory N 50626 49621 8356 280 -62 11/25/06 11/27/06 50 Down-hole survey off target;
called hole at 50
BH-06-04 Gregory N 50626 49621 8356 280 -62 11/28/06 12/11/06 291 Wedge set wrong; called
hole, moved to E. Mammoth
BH-07-05 Mammoth E 50338 48755 8613 305 -60 2/11/07 2/14/07 51 Down-hole survey off target;
called hole at 51
BH-07-06 Mammoth E 50338 48755 8613 305 -60 2/15/07 2/23/07 184 Down-hole survey off target;
called hole at 184
BH-07-07 Mammoth E 50338 48755 8613 302 -58 2/23/07 9/1/07 1945 Twisted off drill string at
1945
BH-07-08 Mammoth E 50338 48755 8613 302 -58 9/28/07 12/20/07 2265 Wedged off BH-07-07 at
823
feet
Phase II
BH-08-09 Packard 49742 49060 8427 6 -62 2/27/08 5/20/08 2353 Completed
Gulch
BH-08-10 Packard 49755 49044 8427 295 -59 5/24/08 7/3/08 1936 Completed
Gulch
Note: E/N coordinates are in feet relative to the Bates Hunter Mine shaft collar at E50,000/N50,000.
Surface drilling results to date indicate good potential for developing a resource on the
Bates Hunter Project. These results show anomalous gold in the Branch, Hartford
German, Foot & Simmons, Groundhogg, Gregory, Dump, Leavitt and Mosell veins
(Figures 12 - 15). It is characteristic of the deposits at Central City and vein deposits in
general, to be variable in grade and width. Although not all these intercepts are of “ore
grade” or mineable widths, they do indicate that these veins are mineralized at the
locations drilled and that they may have potential ore grades elsewhere, warranting
more exploration of these veins.
Table 7 shows that many potential “ore grade” intercepts were identified in the Phase I
and II drilling programs. These results confirm that the high-grade historical samples at
the bottom of the Bates Hunter workings (Figure 10) may extend to depth below the
workings and that mineralization on all veins appears to extend to depth as well.
Although other vein intercepts were below ore grade, this is not unexpected given the
variable nature of the Central City veins.

Three drill intercepts on the project contain “ore grade” Au over “mineable widths”. The
first is in the Hartford vein, encountered in drill hole BH-06-04 with a weighted average
of 0.81 opt Au over 4 feet. The second is the Leavitt, which was drilled in BH-07-08 and
returned 3.43 opt Au over 0.6 feet, which dilutes to a weighted average of 0.54 opt Au
over 3.9 feet. The third is in the Groundhogg vein drilled in BH-08-09 which returned
0.68 opt over 3.6 feet. These are good early-stage results and suggest that the project
shows promise for containing an economically viable precious-metal resource.
The Phase II surface drilling program further defined the location, nature, and continuity
of the Groundhogg Vein. The Groundhogg vein was intersected in both Phase II drill
holes, BH-08-09 and BH-08-10. The two intersections are 645 feet apart. The
Groundhogg vein in BH-08-09 contained 0.401 ounces per ton gold over a sampled
width of 5 feet and the Groundhogg vein in BH-08-10 contained 0.27 ounces per ton
gold over a sampled width of 2.5 feet. The BH-08-09 intercept correlates geologically,
geochemically, and texturally with the BH-08-10 intercept indicating that the
Groundhogg vein may contain significant gold mineralization over at least 645 feet of
strike length. Phase II drilling provided further evidence that the east-west trending
structures are continuous at depth, and have a role in the boosting of gold grades in the
northeast trending composite veins such as the Bates or Gaston/Cousin Jack veins.
Detailed computer modeling of the Phase II drill data indicates that the intersection of
the Groundhogg vein with the Bates vein exists approximately 150 feet northeast of the
intersection of the Groundhogg vein in BH-08-10.

Table 7. Selected Surface Drilling Assay Results
Drill Hole Vein Depth (ft) Width (ft) True Width Au (opt) Ag (opt) Cu (%)
(ft)
BH-06-02 Branch 388.2-389.2 1.0 0.183 1.78 1.58
Hartford 459-460 1.0 0.391 1.18 0.23
Mosell 1121-1121.5 0.5 0.839 0.50 0.01
Bates 1159-1161 2 0.040 0.70 0.04
BH-06-03 Dump 19-20 1 0.099 1.00 0.03
BH-06-04 Hartford 145-146 1 0.939 0.62 0.64
“ 146-146.5 0.5 1.776 1.08 1.09
“ 146.5-147.5 1 1.166 1.11 1.01
“ 147.5-148.5 1 0.204 1.90 1.19
Foot & Simmons 148.5-149 0.5 0.067 6.51 2.27
Weighted Average 145-149 4.0 0.81 9.19 0.49
BH-07-07 Gregory 958-960.5 2.5 0.029 0.95 1.40
Branch 964.5-966 1.5 0.025 1.09 0.07
?? 1582.6-1583 0.4 0.110 0.40 0.05
?? 1647.8-1648.5 0.7 0.110 2.13 0.01
Groundhogg 1655.5-1656 0.5 0.028 2.27 0.40
Groundhogg 1656-1657.5 1.5 0.047 4.31 0.02
German 1815-1815.4 0.4 0.119 0.80 0.98
McAllister/Bates 1844.1-1844.6 0.5 0.235 1.06 0.71
BH-07-08 Gregory 951.2-954 2.8 0.113 1.23 0.01
Mosell 1797.5-1798 0.5 0.099 2.02 1.19
Middle 1867.5-1869 1.5 0.061 1.71 1.90
Leavitt 2146.4-2147 0.6 3.434 5.37 4.48
BH-08-09 Cousin Jack 130-130.4 0.4 0.106 -0.20 0.000
Cousin Jack 160.2-161.8 0.6 0.004 1.90 1.780
Groundhogg 493-493.8 0.8 0.017 0.80 0.003
Groundhogg 501.5-503.5 2.0 0.749 0.28 0.020
Groundhogg 503.5-504.6 1.1 0.552 0.62 0.070
Weighted Average 501.5-504.6 3.6 0.679 0.40 0.038
Atlantic 508.8-509.8 1.0 0.033 0.50 0.078
McAllister 1479.5-1480.5 1.0 0.097 0.40 0.150
Hartford 1844.5-1845.5 1.0 0.031 0.50 0.055
BH-08-10 Atlantic 442.8-444 1.2 0.034 0.80 0.290
German 1197-1197.5 0.5 0.037 0.50 0.002
Middle 1197.5-1198.2 0.7 0.158 0.30 0.002
Weighted Average 1197.0-1198.8 1.8 0.143 0.356 0.002
Groundhogg 1389.5-1390 0.5 0.228 0.58 0.007
Groundhogg 1395-1395.5 0.5 0.256 -0.20 0.022
Groundhogg 1395.5-1396 0.5 0.388 -0.20 0.015
Groundhogg 1396-1397 1.0 0.286 -0.20 0.050
Groundhogg 1397-1397.5 0.5 0.112 -0.20 0.030
Weighted Average 1395.0-1397.5 2.5 0.266 -0.20 0.033
Groundhogg 1400-1400.5 0.5 0.168 -0.20 0.060
Groundhogg 1406.5-1407.8 1.3 0.170 -0.20 0.020

9.0 Sampling Method and Approach
9.1 General
The author has reviewed Management’s sampling methods and approach, which are
summarized below. The author is of the opinion that they are suitable for the
mineralization being explored and finds them acceptable.
9.2 Surface and Underground Samples
Consulting project geologist, Brian Alers, took 99 samples in an initial surface and
underground sampling program in 2006. Samples included continuous channel samples
up to 4 feet in extent and grab samples from both surface outcrops and underground
workings.
9.3 Drill Core Samples
Since 2006, Management has drilled seven diamond-drill core holes on the project
during the Phase I drilling program. Phase II drilling is currently underway with two holes
completed to date. Drill core samples for both phases were taken directly from the drill
rig by the Project Geologist Brian Alers, Professional Geologist #2951, and a “Qualified
Person” as defined in NI 43-101, and transported to a steel cargo crate at the Golden
Gilpin Mill site about 1.5 miles northeast of the Bates Hunter Mine. There, the core was
logged, sample intervals selected, and the core cut onsite by Brian Alers using a
diamond tile saw.
Drill core sample intervals were selected based on visual inspection of the core by the
project geologist. All suitable vein intercepts were sent for gold and silver fire assay with
69-element geochemical analysis, along with samples of intense wall-rock alteration
and apparently barren sections between or adjacent to veins in order to check for
possible disseminated mineralization.
9.4 Independent Sampling
During the author’s recent site visit to the property from July 2nd to 3rd, 2008 three (3)
independent chip samples were taken by the author from the underground workings in
an attempt to replicate previous sampling by Mr. Alers for. In addition, seven
(7) select sections of drill core were quartered under the author’s supervision and
personally collected, bagged, tagged and tied by the author. All samples were in the
author’s personal possession at all times until they were delivered to ACME Labs in
Vancouver for analysis. The samples were analyzed using acid digestion followed by
ICP analysis. Gold and Silver assays were undertaken using 30 gram samples for fire
assay coupled with a gravimetric finish. The certification for ACME Labs along with their
assay certificates are appended hereto as Appendix 8.
The results of the author’s independent check sampling are tabulated on Table 8 along
with coincident sampling results. The author’s samples #01 to #03 attempted to
replicate previous underground sampling by Alers; samples #04 to #10 represent
duplicate sampling by quartering the remaining core from previous sampling. The
author’s independent sampling confirms the presence of high grade gold. The
reproducibility of the silver assays is good while gold assays were quite variable. Given
that the quantity of sample obtained by quartering very short core intervals was only

about 150 grams per sample, it is not unreasonable to see significant differences
between the author’s and Management’s assay results for gold and silver over the same
interval. While the individual assays for BH 06-04 vary considerably, the weight
averages over the 4.0-foot interval sampled is very good; the author’s assays averaged
0.78 opt Au and 1.50 opt Ag over 4.0 feet while the Management assays averaged 0.81
opt Au and 1.86 opt Ag over the same interval. It is not clear if the variability of the
individual gold assays is the result of the small sample not being representative or is the
result of nugget effect. The limited quantity of check assaying undertaken by the author
is insufficient to statistically confirm or deny either of the above. It is the author’s opinion
that sample representivity is the most likely culprit responsible for the gold grade
variability between duplicate samples. However, the wide discrepancies in gold grades
between some of the duplicate samples suggest that nugget effect may be present as
well.
Author's Results * Management Results

No Sample From To Interval Au Ag Cu No. Au Ag Cu
Description (ft.) (ft.) (ft.) (oz/t) (oz/t) (ppm) (oz/t) (oz/t) (ppm)
Shaft 177'-
01 12West Pillar BH 5085 grab-HG 1.69 1.75 4,760
4" Vein
Channel BH 5087 grab-HG 2.48 2.63 3,740

Sample
AVERAGES 2.19 7.73 6,016 2.09 2.19 4,250
Shaft 163' SW
02 Wall Stringers BH 5067 grab 0.01 0.13 448
Chip-Channel BH 5068 grab 0.13 0.46 1,830

Sample
BH 5069 grab 0.16 0.28 399
BH 5070 grab 0.18 0.31 539
BH 5071 grab 0.60 0.76 990
AVERAGES 0.00 0.09 44 0.21 0.39 841

Shaft 163' SE
03 of Shaft HG 0.45 2.01 2,067 BH 5051 grab 3.21 2.91 691
Vein
04 BH 07-07 1844.1 1844.6 0.5 0.07 0.73 5,854 0.24 1.06 7,100
05 BH 06-04 145.0 146.0 1.0 0.25 0.44 1,246 0.94 0.62 6,400
06 BH 06-04 146.0 146.5 0.5 1.27 1.14 6,499 1.78 1.08 10,900
07 BH 06-04 146.5 147.5 1.0 0.44 0.76 7,110 1.17 1.11 10,100
08 BH 06-04 147.5 148.5 1.0 0.61 1.66 3,370 0.20 1.90 11,900
09 BH 06-04 148.5 149.0 0.5 2.39 5.16 >10,000 0.07 6.51 22,700
AVERAGES 4.0 0.78 1.50 >4,994 0.81 1.86 11,300
10 BH 07-08 2146.4 2147.0 0.6 9.21 7.44 >10,000 3.43 5.37 44,800
Table 8. Comparison of Check Sampling Results with Management Results

*Note: The Author’s Results have utilized ICP assays for Ag and FA-Gravimetric for Au. Over limit Cu assays were not re-run

10.0 Sample Preparation, Analysis, and Security
10.1 General
The author has reviewed the sample preparation, analysis, and security procedures,
carried out by Management, during its exploration program and finds them to be
acceptable for the mineralization being explored.
10.2 Sample Preparation
Selected intervals of drill core were cut onsite by the Project Geologist, Brian Alers
using a diamond tile saw, and one-half of the sawed core from the sampled intervals
was shipped for analysis by commercial carrier to American Assay Laboratories Inc. in
Sparks, Nevada. American Assay Labs’ sample preparation included drying, crushing,
pulverizing, and splitting, all done in American Assay’s facility in Sparks, Nevada.
Coarse rejects and pulps are in storage at American Assay. American Assay Labs is an
accredited assayor; their certification documents can be found in Appendix 5.
10.3 Analysis
10.3.1 Gold Analysis
All hand and drill-core samples were analyzed for gold with a standard fire assay on 30-
gram samples with atomic absorption spectrophotometry (AAS) or inductively coupled
plasma (ICP) finish. Samples with grades higher than approximately 10 parts per million
Au (0.29 opt) were re-assayed with gravimetric finish. Results were generally reported
in ounces per ton.
10.3.2 Silver Analysis
Silver analysis was performed by aqua regia digestion with AAS determination. Results
were generally reported in ounces per ton.
10.3.3 Multi-Element ICP Analysis
Most samples were analyzed for 69 major and trace elements using aqua regia
digestion with ICP determination. Early in the exploration program, some samples were
analyzed for 30 elements by the same method; this was later expanded to the full 69-
element suite. Results were reported in parts per million.
10.4 Analytical Results and Assay Certificates
Analytical results were emailed to Management personnel and consultants, followed by
hard copy assay certificates mailed to David Smith, a consulting geologist. Mr. Smith
then forwarded the original assay certificates to the company’s main office in
Minneapolis, where they are on file. Assay results for selected samples on the project
are included in Appendix 4; assay certificates can be found in Appendix 5.
10.5 Core Storage
Core was transported from the drill rig by the Project Geologist, Brian Alers to a steel
cargo crate secured by multiple padlocks, located at the Golden Gilpin Mill site about
1.5 miles northeast of the Bates Hunter Mine. Until recently, only the Project Geologist,
Brian Alers has had access to the core; a junior geologist was recently hired who now

also has access. All core is stored at this location, including the one-half remaining core
in the sampled intervals.

11.0 Data Verification
11.1 General
The author has reviewed the data verification procedures used at the Bates Hunter
Project, and is of the opinion that they are sufficient and that the data produced is valid.
11.2 Drill Hole Location
All drill holes were surveyed by a professional survey company, RCMS Surveying of
Boulder, Colorado, to within 0.1 foot accuracy.
11.3 Drill Hole Orientation
The orientation of drill holes was determined using a digital down-hole survey
instrument at intervals of 50 to 100 feet in all holes. Apart from some measurements
that suffered magnetic interference in selected rock types, down-hole surveys are
generally accurate to less than 1 degree. Drill-hole orientation data were used to plot
drill-hole directions on longitudinal and cross-sections and to guide holes to their
intended targets.
11.4 Down-Hole Geology and Drill Logs
Project consulting geologist Brian Alers logged all drill core and has produced written
logs at a scale of 1 inch to 10 feet for all holes. Alers gathered information on rock type;
vein mineralogy, width, morphology, texture, angle relative to core, and age relations;
sample intervals; structure, including faults, breccias, and stockworks; wall-rock
alteration mineralogy, style, texture, and intensity; and selected drilling information such
as wedge locations. Drill logs can be found in Appendix 6.
11.5 Core Photographs
A photographic record of all drill core was made to accompany the drill logs.

12.0 Adjacent Properties
The Bates Hunter Project is surrounded by numerous adjacent properties, and the land
situation in Central City is complex. Being the oldest mining camp in Colorado, the
district contains hundreds of small, fractional, and overlapping claims. The Bates Hunter
Project claims are bordered on all sides by adjacent mineral claims, many of which
Management is negotiating to acquire. Many of these adjacent claims have had historic
gold production.

13.0 Mineral Processing and Metallurgical Testing
No modern mineral process or metallurgical testing has been done on the Bates Hunter
Project. Based on historical methods of processing, it is expected that the mineralization
would be amenable to recovery by sulfide flotation followed by smelting of the flotation
concentrates to remove gold. The nearby Cash Mine at Gold Hill in Boulder County is
producing a gold in sulfides flotation concentrate which they are shipping to Juarez,
Mexico for smelting.
Historical production records for some of the veins on the Bates Hunter Project cite
significant by-product base metal production, copper in particular. The presence of
sporadic but appreciable amounts of copper in the veins (in the 0.50% Cu range)
precludes using cyanide leaching as a recovery technique since copper is a voracious
cyanide consumer that would make cyanidation cost prohibitive.

14.0 Mineral Resource and Mineral Reserve Estimates
14.1 Existing Mineral Reserves and Resources
There are currently no mineral reserves or resources of any category on the Bates
Hunter claim group. However, historical data leaves no doubt that a significant amount
of high-grade gold still remains on the claim group.
14.2 Exploration Potential
The Bates-Hunter Project claim group encompasses approximately 16,100 linear feet of
past producing veins that have historically produced about 1,135,000 ounces of gold to
about 667 feet average depth below surface, or in excess of 1,700 ounces Au per
vertical foot as shown on Table 9.
Table 9. Past Production – Bates Hunter Project
Vein # Mines Gold Produced Mined Depth (Ft.) Au Ounces per Potential Ounces
(Ounces) (Averages) Vertical Foot to 2000’ Depth
Bates 7 154,000 476 323 490,000
Fisk 7 448,000 1,050 427 400,000
Gregory 2 342,000 843 406 470,000
German 1 113,000 745 152 190,000
Leavitt 5 63,000 487 129 200,000
Gaston 1 15,000 400 38 60,000
Totals 23 1,135,000 667 1,702 1,810,000
The gold production cited on Table 9 represents only the RECOVERED and
REPORTED production subsequent to initiation of smelting activities in 1868.
Production data from 1859 to 1968 representing early production from non-sulfide ores
was never recorded. In addition, the above gold production ounces only represent what
the author has been able to glean from historical literature and is incomplete. Figure 16
shows that the Bates Hunter Project includes 11 additional veins that were mined to
varying extents for which production data has NOT been found.
Historical and current exploration data suggests that there is exploration potential for
high-grade gold on the claim group. Information gleaned from historical Bates Hunter
reports indicate that there were several known and defined ore shoots in the mine prior
to closure. The Bates Hunter mine was last opened in the late 1930’s. Fred Jones, M.E.,
who later became the Colorado Commissioner of Mines, worked at the Bates Hunter in
1936. He stated in a letter dated 1939 that “there were three shoots of ore opened on
the 300, 700 and 800 (745??) levels. One shoot on the lower level was continuous for a
length of 440 feet with the west breast still in ore averaging 0.58 oz. Au over a 4 foot
width.” Samples taken during the recent dewatering efforts to the 163 foot depth in the
shaft range from trace to 6.0 opt Au (Figure 10). Sampling by Fred Jones and the author
is shown on Figure 10 as well, showing comparable grades. His notation of a zone
about 60 feet long indicates that it consists of parallel veins averaging about 10 feet
wide and assaying between 0.80 to 8.6 opt Au.

Past production records and reports indicate mineable shoots on the veins might
average in the range of 5 feet wide and grade from 0.50 to 1 opt Au or better. The
longitudinal section on Figure 6 was used as a rough measure to estimate open
potential. Based on historical information it appears that a large percentage of the strike
lengths of the veins were mined. It is unknown what percentage would be economic
today. It is the author’s opinion that from 20% to 80% of the known vein systems could
result in exploration success. The Bates vein produced 154,000 ounces to an average
depth of 476 feet (Table 9) or 323 ounces per vertical foot. A rule of thumb for
underground mining is that one can mine comfortably at a rate of approximately 50% to
65% of the reserves tonnage (or ounces) per vertical foot. Based on this, historical data
suggests that the Bates Vein alone could produce between 160 and 210 ounces of gold
daily (55,000 to 75,000 ounces annually). Based on historic records, it is roughly
estimated that the Bates vein alone represents an exploration target that could host
approximately 500,000 ounces of gold to a depth of 2,000 feet. The 16,100 feet strike
lengths of all the veins covered by the project claims could increase this potential
substantially. Acquisition of other contiguous properties could again multiply this
potential. If one extrapolates the historical production data to 2,000 feet depth, the
Bates Hunter Project could host 1.8 million ounces of gold (Table 9). Given that
historical records are very fragmented, incomplete and not NI 43-101 compliant, it is the
author’s opinion that the project may eventually discover 1 to 3 million ounces of gold on
the property. Based on the historical 1,702 ounces of gold per vertical foot, gold
production at a rate of 850 to 1,100 ounces daily (300,000 to 400,000 ounces annually)
is theoretically possible.

Based on historical data and recent “remnant” and muck sampling underground, it is
expected that “mineable” vein segments may be narrower than 5 feet but with
correspondingly higher grades. What will ultimately be discovered is unknown and
unpredictable; the potential for discovering and developing an economic gold mine on
the Bates Hunter Project is a distinct possibility.
Consolidation of the claims is the key to profitability. Economics of scale will allow one
to mine and process much more tonnage at much lower costs. The veins and high-
grade shoots apparently still exist at the bottom of the mine, and they apparently did not
die out at depth as has been confirmed by recent drilling. The small claim sizes,
metallurgical complexities, and production constraints were the historically limiting
factors that caused previous operations to close. Based on the above, it should be
possible to develop and access about 500,000 ounces of gold above the present bottom
of the Bates-Hunter shaft by exploring beneath the other shallower producers. Further
exploration and development to depth could provide an additional 1 million ounces or
more. Acquisition of more mining claims covering past producers could significantly
increase this potential by multiple factors. The nearby Fifty Mines property ceased
production at a depth of 1,400 feet; it is still open to depth and could possibly be
reached and mined from the Bates Hunter workings.
Past production data and reported grades and widths indicate that the project may be
able to support a production rate of around 400 TPD at a grade of about 0.50 oz/ton Au.
Should the actual in-situ grades prove to be substantially higher (as is suspected), a
much smaller production rate could be considered upon completion of detailed
underground drilling. There is a potential in the short term of developing about 500,000
ounces of mineable reserves above the present Bates-Hunter shaft bottom which would
be sufficient for at least 3 years production at 400 TPD. The down dip potential and
lateral expansion possibilities is many times larger. Lateral and depth extension
possibilities exist within the current claim holdings along with the possibility of
discovering additional and previously unknown veins. The recent acquisition of
additional past producing mines adjacent to the existing holdings will provide an
excellent opportunity to significantly expand the operation and/or increase the mine
operating life.
The long-term potential of the Bates-Hunter Project is the depth and strike continuation
of known veins and others that may be discovered from underground exploration
activities. If the known veins continue to the 2,400 foot level as they did on the adjacent
Fifty Mines Property which produced over 1 million ounces, the Bates Hunter Project
could produce in the order of 1 to 3 million ounces of gold to that depth as well.

15.0 Other Relevant Data and Information
Through March 31, 2008, Management has spent almost $5 million in diamond drilling,
geological sampling, mapping, data compilation, rehabilitation, operation and
maintenance on the project as summarized below:
Table 10. Exploration Expenditures
Year Expenditures
2004 $70,380
2005 $415,775
2006 $1,236,965
2007 $1,943,012
2008 $1,064,055
Total $4,666,887

16.0 Interpretation and Conclusions
The Bates Hunter Project is located in the oldest mining district in Colorado, the Central
City district, which produced over 4 million ounces of gold and almost 120 million
ounces of silver. Although the project currently has no reserves, it is the author’s opinion
that the project presents an excellent exploration target. Judging from past production,
historic mine maps and assays, modern assay results, and recent exploration, the Bates
Vein alone could host as much as 500,000 additional ounces of gold worth
approximately $450 million at today’s gold price. Other veins covered by the project
could increase this potential by a factor of two to ten. Acquisition of other contiguous
properties could again double or triple this potential.
Management has completed a Phase I exploration program that consisted of 7,739 feet
of drilling and has recently completed another 2 holes for a total of 4,289 feet of a
6,000- foot diamond drilling program designed to provide information regarding the
continuity of mineralization to depth and to test an important concept developed by Mr.
Alers and Mr. Shallow that may help define the locations of potential high grade vein
intersections and other priority targets. Alers and Shallow have identified that the
intersection of Type 4 (East-West) Telluride Veins with Types 2 and 3 veins may
localize “ore” shoots. This information may have a significant impact regarding targeting
mineralized areas.
The results from recent drilling indicate that the veins on the Bates Hunter Project
continue to depth. The Bates Hunter Project is a “Property of Merit” that would qualify a
junior resource company for listing on the TSX Venture Exchange. Expenditures on the
project ($1,064,055 in 2008) have exceeded the minimum of $100,000 expenditure
requirement over the preceding 12 month period and the recommended exploration
program included herein (Phase II $2,000,000 and Phase III $1,500,000) is in excess of
the minimum $200,000 required by the Exchange to meet listing requirements.

17.0 Project Valuation
Assessing a value for the Bates Hunter Project is very subjective since it is based on
either assumed reserves or resources or the value a willing buyer wishes to assign to
the project.
Case A - Production Scenario
Assume that Management is able to define 1 million ounces of reserves and resources
as described in previous sections of this report and also assume that Management is
able to place the property into production at a rate of 300 to 500 tons per day. Assuming
that the “ore” grades 0.50 oz Au/ton or better, the author estimates that the operating
costs at this rate would be in the order of about $200 to $250 per ounce. At present
gold prices, the gross value of “operating profit” over the life of the operation could be in
the range of $500 to $700 million spread out over a 10 to 20 year mine life (assuming
favourable metallurgical recoveries, etc).
Case B - Sale to a Willing Buyer
Assume that Management is able to sell the project to a willing buyer based on the
POTENTIAL in-ground gold content. In today's market, a willing buyer will pay anywhere
from $50 to $100 per ounce of POTENTIAL Reserves and Resources. On this basis, a
willing buyer would pay somewhere from $50 to $100 Million for the project.
Case C - Share Value Basis
Another common methodology for evaluating a property is to assign a value of 5% to

10% of the gross value of the in-ground resource POTENTIAL to the value of the
company’s stock. On this basis, the assumed 1 million ounces at the present gold price
equates to about $45 to $90 million.
Based on the above, it is the author’s opinion that the Bates Hunter Project has a
value of $50 to $100 million in today’s market based on the resource POTENTIAL.
Assuming successful completion of dewatering and underground resource
definition whereupon a feasibility study could be completed, this value could
increase substantially.

18.0 Recommendations
18.1 General Recommendation
The Bates Hunter project represents a real exploration target that could yield significant
gold production. A staged systematic approach should be used to establish mineable
reserves prior to attempting to develop the property through to commercial production.
Management should continue to dewater and rehabilitate the shaft and explore the
property with both surface and underground drilling to confirm the existence of
mineralization near the abandoned workings and undertake metallurgical test work.
During this phase, Management should pursue investigations in preparation for
production such as locating and acquiring additional surface rights in the immediate
area around the mine site for constructing new processing facilities. Tailings disposal
will be an issue. Most of the tailings can be sent back underground as stope fill but
about 30% will need to be disposed of in other old workings on the property or at a new
tailings site.
Very few samples have been assayed from the Bates Hunter drill core: essentially only
very short lengths of vein material. Because of this, there is limited data on which to
evaluate nugget effect on assaying. It is recommended that metallics screening of pulps
be initiated as standard procedure for all future assaying. In addition, it is recommended
that all stored pulps be re-assayed utilizing metallics screening as well. The cost to
undertake this study will be minor and may resolve the nugget effect uncertainty.
The assay results from BH 08-10 indicate that, while the general consensus is that the
alteration halo flanking the veins is not mineralized, it may be weakly so. BH 08-10
averaged 0.084 opt Au over 19.3 feet from 1389.5 to 1407.8 feet. At prevailing gold
prices, this represents a gross contained metal value in the $80 to $85 per ton range.
Low cost underground bulk tonnage mining may be conceivable and heretofore neither
contemplated nor investigated. It is recommended that approximately 200 to 300 feet of
“altered” core flanking one of the veins be sampled in 10 foot increments and assayed
using metallics screening and fire assaying. The cost and effort to undertake this
investigation is minimal and will provide definitive data.
The author recommends continuing the exploration program that Management is
currently performing on the project. Priority should be given to dewatering activities.
• Continue to dewater the Bates Hunter mine workings and rehabilitate the shaft in
preparation for further underground mapping, sampling, and drilling.
• Prepare a station for and begin underground drilling to test the potential of veins
nearby and adjacent to the Bates vein.
• Complete the current Phase II of surface exploration drilling consisting of 6,000
feet in three holes; based on results, develop additional drill targets and perform
Phase III drilling on an additional 10,000 feet of core drilling. The objectives of
the surface drilling programs are to drill sufficient holes and obtain sufficient vein
intersects to be able to develop a statistical confidence in the potential grades
and widths that could be developed for mining. Drill testing at shallower depths
beneath the McAllister, German and other veins is encouraged.
• Continue to acquire mineral claims and surface rights adjacent to the current land
package in order to enlarge the prospective area of the project.
• Undertake metallics screening of all existing pulps and incorporate it as standard
procedure for all future assaying until sufficient data has been acquired to rule
out nugget effect.
• Assay a number of 100 foot intervals of drill core straddling the Bates Vein
(utilizing metallics screening) to determine if there is a potential for bulk mining.
18.2 Budget
A Phase II Budget of $2 million (Table 11) encompassing a 6,000 foot drilling program
of 3 deep holes along with continuation of dewatering activities is recommended. The
Phase II Budget includes a recommended expenditure allowance of $500,000 to
undertake upgrading of the water treatment plant to increase its throughput and
accelerate dewatering activities.
Table 11. Phase II – 2008 Budget
Item Cost
Diamond Drilling (6,000 feet @ $100/ft) $600,000
Dewatering Plant Upgrades Allowance $500,000
Dewatering and Rehabilitation (12 months @ $60,000/mo) $720,000
Total Phase II $2,000,000
Contingent upon successful completion of Phase II activities further exploration in

Phase III should concentrate on underground definition drilling and exploration. This
would include driving an exploration crosscut approximately 150 feet into the hanging
wall of the Bates Vein on the 745 foot level from which underground definitional drilling
of Bates Vein ore shoots (and other veins) could be undertaken. A budget of $1.5
million for Phase III is itemized on Table 12.
Table 12. Phase III – Budget
Item Cost
Crosscut on 745 ft level (150’ feet @ $1000/ft) $150,000
Underground Diamond Drilling (40 holes @ 200 ft @ $50/ft) $400,000
Project Overheads (12 months @ $60,000/mo) $720,000
Metallurgical Test Work $100,000
Total Phase III $1,500,000
If successful, upon completion of Phase III activities, Management could be in a position

to conduct a feasibility study and consider making a production decision.

References
Ashbaugh, Lewis E., 1931, Report on the Bates Bonanza Mines
Bastin, E.S., and Hill, J.M., 1917, Economic geology of Gilpin County and adjacent parts of Clear Creek
and Boulder Counties, Colorado: U.S. Geological Survey Professional Paper 94, 379 p.
Billings, R.S., 1912, Report on the Mines and Mills of the U.P.R. Milling and Mines Company of Gilpin
County, Colorado. (Private Co. Report)
Caine, J.S., Nelson, E.P., Beach, S.T., and Layer, P.W., 2006, Structural fabrics, mineralization, and
laramide kinematics of the Idaho Springs-Ralston Shear Zone, Colorado Mineral Belt and Central Front
Range Uplift: The Mountain Geologist, Special Issue on the Structural Geology of the Colorado Front
Range, v. 43, no. 1, p. 1-24.
Callbreath, J.F., Jr., 1899, The mineral resources of Clear Creek County, Colorado: Mining Reporter, v.
40, Denver, Colo.
Chapin, C.E. and Cather, S.M., 1981, Eocene tectonic and sedimentation in the Colorado Plateau Tocy
Mountain area: in Dickenson, W.R., and Payne, W.D., eds., Relations of tectonics to ore deposits in the
southern Cordillera: Arizona Geological Society Digest v. 14, p. 173-198.
Collins, G.E., 1904, The relative distribution of gold and silver values in the ores of Gilpin County,
Colorado: Transactions of the Institute Mining and Metallurgy Vv. 12, p. 480-495.
Endlich, F.M., 1874, Preliminary report upon the mining districts of Colorado, in Hayden, F.V., Annual
Report of the United States Geological and Geographical Survey of the Territories, embracing Colorado,
being a report of progress of the exploration for the Year 1873: Washington, U.S. Government Printing
Office, p. 276-301.
Filas, F., 2006, Preliminary Environmental Permitting Assessment, Bates Hunter Project, Central City,
Colorado: September 22.
Fossett, F., 1876, Colorado, its gold and silver mines, farms and stock ranges and health and pleasure
st
resorts: 1 ed., Crawford, N.Y.
James, L.P., 1986, Dregs 1986 Spring Field Guide Book: Denver Region Exploration Geologists Society,
86 p.
Jones, F., 1937, Letter to Mr. Harry M. Williamson
Jones, F., 1939, Report on the Bates-Hunter Group of Mines: March 20, 1961.
Larson, E.S., Jr. and Phair, G., 1954, The distribution of uranium and thorium in igneous rocks, in Faul,
H., ed., Nuclear Geology: New York, John Wiley and Sons, p. 75-88.
Lipman, P.W. 1982, Tectonic setting of the mid to late Tertiary in the Rocky Mountain Region—A Review,
in Proceedings of the Denver Region Exploration Geologists Society Symposium, The Genesis of Rocky
Mountain Ore Deposits: Changes with Time and Tectonics: Denver Region Exploration Geologists
Society, Denver, Colorado, p. 125-131.
Lovering, T.S., and Goddard, E.N., 1950, Geology and ore deposits of Front Range, Colorado: U.S.
Geological Survey Professional Paper 223, 319 p.
May, David L., (May 1996) Bates Hunter Mine and Golden Gilpin Mill, Geologic Report for Hunter Gold
Mining Corp.
Minsearch Inc. 1989, The Bates Hunter Mining Property, Central City Mining District, Colorado, (Private
Company Report for Central City Consolidated Mining)
Moench, R.H., and Drake, A.A., Jr., 1966, Economic geology of the Idaho Springs district, Clear Creek
and Gilpin counties, Colorado: U.S. Geological Survey Bulletin 1208, 91 p.

Newfields, April 25, 2008, Phase I environmental site assessment, Bates Hunter Mine properties, Gilpin
County, Colorado: Boulder, Colorado, 298 p.
O’Gorman, Glenn R., January 15, 2004, Preliminary Assessment Report for the Bates Hunter Project
prepared for Kenneth Swaisland.
O’Gorman, Glenn R., March 1, 2004, Exploration and Development Plan for the Bates Hunter Project
prepared for Kenneth Swaisland.
O’Gorman, Glenn R., March 1, 2005, Exploration and Development
O’Gorman, Glenn R., April 15, 2007, Independent Engineers Report for the Bates Hunter Project
Phair, 1979, Interpretation of lead-uranium ages of pitchblende deposits in the central Front Range,
Colorado: Geol. Soc. America Bull., v. 90, p. 858-870.
Pierce, R., 1890, The association of gold with other metals in the West: Am. Inst. Min. Eng. Trans., v. 18,
p. 449.
Rice, C.M., Lux, D.R., and Macintyre, R.M., 1982, Timing of mineralization and related intrusive activity
near Central City, Colorado: Economic Geology, v. 77, p. 1655-1666.
Simms, P.K., 1982, Geology of the Central City area, Colorado—A Laramide mining district, in
Proceedings of the Denver Region Exploration Geologists Society Symposium, The Genesis of Rocky
Mountain Ore Deposits; Changes with Time and Tectonics: Denver Region Exploration Geologists
Society, Denver, Colorado, p. 95-100.
Simms, P.K., Drake, A.A., and Tooker, E.W., 1963, Economic geology of the Central City district, Gilpin
County, Colorado: U.S. Geological Survey Professional Paper 359.
Simms, P.K., and Gable, D.J., 1964, Geology of Precambrian rocks of the Central City district, Colorado:
U.S. Geological Survey Professional Paper 474-C.
Stewart Environmental Consultants, 1994, Report of a Phase I environmental site assessment performed
at the proposed Mammoth Hill mixed use development, Central City, Colorado: Fort Collins, Colorado, 49
p.
Tedesco, S. A., 1997, Geological report on the Bates Hunter Mine and Golden Gilpin Mill: prepared for
Hunter Gold Mining Corp., 28 p.
Tweto, O., 1975, Laramide (late Cretaceous-early Tertiary) orogeny in the southern Rocky Mountains, in
Curtis, B. F., ed., Cenezoic history of the southern Rocky Mountains: Geological Society of America
Memoir 144, p. 1-44.
Tweto, O., and Sims, P.K., 1963, Precambrian ancestry of the Colorado mineral belt: Geological Society
of America Bulletin, v. 74, p. 991-1014.
Williams, Harry, 1934?, Stope, sample, and section map of the Bates Hunter Mine: unpublished map,
scale 1 inch = 30 feet.
Williamson Mine Correspondence, March 20, 1961
Wise, J.M., 2005, Undulatory silver-rich polymetallic veins of the Castrovirreyna District, Central Peru:
fault growth and mineralization in a perturbed local stress field: Economic Geology, v. 100, p. 680-795.
Various unpublished private companies maps and data.
Various Unpublished Maps and Data located in the Archives of The Colorado School of Mines

OREM INC.
Certificate of Qualifications
Glenn R. O’Gorman, B. Sc., P. Eng., FCIM
I, Glenn R. O’Gorman, President of OREM Inc., do hereby certify that:
1. I am an Independent Consulting Professional Mining Engineer and a “qualified person” as defined
in Canadian Securities Administrators National Instrument 43 – 101 (NI 43 - 101), residing at
8952 - 216A Street, Langley, B.C., Canada V1M 4C7.
2. I am a graduate of Queen’s University of Kingston, Ontario, 1974, with the degree of Bachelor of
Applied Science in Mining Engineering.
3. I have been practicing mining engineering and have worked as a miner, Mine Operator,
Consulting Engineer and Corporate Executive over a span of 35 years since 1974. I have been a
Registered Member in good standing of the British Columbia Association of Professional
Engineers and Geoscientists since 1995, (Member #18191), a member of the Association of
Professional Engineers of Ontario since 1974, (Member #34599506) and a Member of the Order
of Engineers of the Province of Quebec since 1979 (Member #34442). I have been a member of
both the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) (Member #96091) and the
Society of Mining Engineers of the American Institute of Mining Engineers (Member #2406590)
for over 30 years and am a Fellow of the CIM.
4. This report is based on a number of field visits made to the Bates-Hunter Gold Project from
December 2003 to July 2008, and on reports, maps, and other documents examined or acquired
while examining the Bates-Hunter operations and in various state and county archives in the
State of Colorado.
5. This report has been prepared as an Independent Engineers Report of the Bates-Hunter Project.
6. No limitation has been imposed upon my access to the property or to persons, information, data
or documents relevant to the subject matter of this report.
7. As of the date of this certificate, I have disclosed all relevant material of a technical nature which
to the best of my knowledge might have a bearing on the viability of the project or the
recommendations contained within this report. I am not aware of any material fact or material
change not reflected in this report, the omission to disclose which makes this report misleading.
8. I neither have any interest or securities, directly or indirectly, nor do I expect to receive any direct
or indirect interest or securities in Hunter Gold Mining Inc. or any affiliate thereof that is the
subject of this report.
9. I am responsible for all sections of this report entitled “Technical Report on the Bates Hunter
Project” dated July 15, 2008. Geological interpretations, geological mapping, core logs, assaying
and underground sampling data and information have been provided by Brian Alers, Project
Geologist for the Bates Hunter Project, a “qualified person” as defined in Canadian Securities
Administrators National Instrument 43 – 101 (NI 43 - 101). Mr. Alers interpretations and data were
reviewed by an independent geological consultant (Mr. Dave Smith, M. Sc., P. Eng., P. Geo.),
Project Manager of the Bates Hunter Project. Mr. Smith’s views, opinions and recommendations
were relied upon for planning the work program contained in this report. All maps and figures
have been provided by Management or third parties and have been verified for accuracy and the
sources are duly noted on them.
10. I consent to the filing of this Report with any stock exchange or other regulatory authority and any
publication by Management including electronic publication in publicly accessible company files
or websites.

11. This report may be used in a Statement of Material Facts, Prospectus or similar document, but
may not be abbreviated or excerpted without my written consent.
12. In my professional opinion, the Bates Hunter Project is a property of merit that warrants
undertaking the exploration program recommended in this report.
13. I have read Canadian Securities Administrators National Instrument 43-101 “Standards of
Disclosure for Mineral Projects” and have prepared this report in compliance with NI 43-101 with
NI form 43 – 101 F1. This report may be used as a “Property of Merit Report” to qualify the Bates
Hunter Project for meeting stock exchange listing requirements.
th
Signed at Vancouver B.C. this 15 day of July, 2008.

OREM INC.
Letter of Authorization
Management has the Author’s consent to the filing of this NI 43-101 compliant Technical Report on the
Bates Hunter Project dated July 15, 2008 with any stock exchange or other regulatory authority and any
publication by Management including electronic publication in publicly accessible company files or
websites. This report may be used in a Statement of Material Facts or similar document, but may not be
abbreviated or excerpted without my written consent.
th
Signed at Vancouver, B.C., this 15 day of July, 2008.
Glenn R. O’Gorman, B.Sc., P. Eng., F.C.I.M.

President, OREM INC.

Certificate of Qualifications
Brian Alers

Letter of Authorization
Brian Alers

Appendices
APPENDIX CONTENT # of Pages

1: Property Agreements
1.1 Hunter Gold Agreement
1.2 Hunter Gold Title Documents
1.3 Mammoth Hill Agreement
2: Permits
2.1 Preliminary Permitting Report
2.2 Colorado State Mine Permit
2.3 Central City Special Exception Use Permit
2.4 Water Discharge Permit
2.5 Stormwater Permit
2.6 2006 Drilling Permits
2.7 2007 Drilling Permits
3: Environmental Reports
3.1 Bates Hunter Phase I Environmental Site
Assessment
3.2 Mammoth Hill Phase I Environmental Site
Assessment
3.3 EPA Fact Sheet
4: Analytical Results and Sample Notes

Surface and Underground Results
Drill Results Summary
Vein Classification and Geochemistry
5: Assay Certificates
5.1 Lab Certificates and Assay Procedures
5.2 Example Sample Submittal
5.3 Assay Certificates
6: Surface Drill-Hole Logs
Drill Hole Log Lithology and Abbreviation Key
BH-06-01 Drill Log BH-07-06 Drill Log
7: Technical Credentials of Contributing Consultants
Bensing & Associates Company Profile
Jerome Bensing
Brian Alers
Brian Hansen, Newfields
David S. Smith

Frank Filas
Glenn O’Gorman
John M. Shallow
8: Acme Analytical Laboratories Ltd. Certificates
Certificate of Registration
Certificate of Analysis
Quality Control Report

Figure 1. Location Map of the Bates-Hunter Project, Central City, Colorado. 39° 48' 1.42" N, 105° 30' 13.0" W
Figure 2. Location map of the Bates-Hunter Mine Project, Central City, Colorado.
l
BATES-HUNTER
MINE
I
MINERAL RIGHTS I I
500 FEET
D HUNTER GOLD
I 100 METERS
D MAMMOTH
HILL LLC
I
I
rt contour interval = 40 feet
Figure 3. Mineral Rights of the Bates-Hunter Project (most claims are approximately located).
topography from
USG$ 7.5' Quads
Black Hawk
Central City
I
,...,_.,
I
SURFACE RIGHTS I I
500 FEET
HUNTER
I 100 METERS
rt
contour interval = 40 feet
MAMMOTH I
topography from
HILL LLC
I USG$ 7.5' Quads
Black Hawk
Central City
Figure 4. Surface Rights of the Bates-Hunter Project, (some claims are approximately located).
----30feet
Figure 5. General Facilities Map, Bates Hunter Mine.
8600
8500 ft
NE
8400 ft
BATES - HUNTER
0.75 opt Au MINE
8300 ft
ft
8200 ft
' 8100
"-..
Q)Q)> ' '-
,-==::::=:;;::::::::::::::::=;:::::m-
c:::::::::==::::::== =
•
STOPE S
BOBTAlL
TUNNEL
LEVEL
=====."-. 0.46 to 1.16
STOP
8000 ft -
co
Q)
, r opt Au / 0.5' - 300 ft
(/) II 11
7900 ft cA-LLI-STE-RM-INE- - - \
- 400 ft
.0
7800 ft
-
co
Q)
0
1:8] through tunnel
[III] out of section tunnel
\
\ - 500 ft
7700 ft C:
IZI into section tunnel - 600 ft
collapse
7600 ft m D stopes from Schumann Section - 700 ft
stope 727 ft level
7500 ft
5.78 opt Au 0.76 opt Au/ 0.75' - 800 ft
o---- 0.74 opt Au/ 0.5'
7400 ft
0.16 to 3.8 opt Au
BH08-10 -o BH06-02 - 900 ft
Golden Mile drill hole GOLD ASSAYS
7300 ft 0.215 opt Au / 0.6'
(approximate)o
7200 ft
0.48 opt
Au/ 10'
0 0.1 - 0.5 oz/ton -
.c
c..
Q)
-1000 ft
0 0.5 - 1.0 oz/ton "O

Q) -1100 ft
BH0?-07 0
C>8H08-09 C:
7100 ft 0.235 opt Au/ 0.4'
BH0?-08 0.097 opt Au / 1.0' e 1 - 5.0 oz/ton . E._
0.066 opt Au / 0.9'
e > 5.0 oz/ton - C:
Q) -1200 ft
7000 ft EXPLORATION Sources: I

:::,
AREA Sims, et.al., 1963 -1300 ft
6900 ft Tedesco, 1997

Williamson, 1930?
- (/)
Q)
co
al
-1400 ft
6800 ft Section Plane = 050/90 Looking 320° N40W 250 FEET

-1500 ft
All features projected to section plane from Bates Vein. 100 METERS
6IOO'-'- '- - - - - - - - - - - - - - - - - - -
Figure 6. Longitudinal section, Bates-Hunter and related mines.
I I
Xgns Sillimanite-biolite gneiss
r::::;-i Monzonite, granodiorite, & syenite

(Early Tertiary to Late Cretaceous)
I I
XgncsCale-silicate gneiss
t
r;;:::;7 Boulder Creek granodiorite - Contact
(1.7ga) - Fault
Hornblende diorite to
quartz diorite Synform: axial trace
Antiform: axial trace
- Amphibolite NORTH Antiform, Overturned: axial trace
Synform, Overturned: axial trace
0 Feldspar-rich gneiss
Plunge of fold element
redrawn from:
Feldspar-rich gneiss & homblede gneiss USGS MAP 1-2605
(interlayered) ---1kilometer
43
---A.._
Figure 7, Regional Geology of the Bates-Hunter Mine Project, Central City, Colorado.
Contact
Quaternary alluvium Fault
-- NE Sulfide vein _E foliation, inclined
-- E-W Sulfide vein -+- foliation, vertical
0 Tertiary intrusive
XX:'.'::,._ foliation with lineation
0
Q Pegmatite
j Synform: axial trace
granodiorite (1.7 ga) Antiform: axial trace
Antiform, Overturned: axial trace
MINOR FOLDS
Felsic gneiss -=+ Zfold
}-- symmetric fold
...s=-+ Sfold
Biotite gneiss
fold axis
-E-+ open synform
- Amphibolite ++ open antiform
100 METERS
redrawn from:
Sims and Gable, 1964
USGS PP-474-C, Plate 1
Figure 8, Generalized Geologic Map of the Bates-Hunter Project Area. From Sims and Gable, 1964.
Model based upon mine mapping and sampling,
by Brian Alers, 2005-2006.
Levels 93' and 119'
I TYPE 2 VEINS: QUARTZ - PYRITE

I TYPE 3 VEINS: COMPOSITE
BASE-METAL SULFIDES
3XVIEW
I TYPE 4 VEINS: TELLURIDE
I SERICITE ALTERATION
Figure 9. Schematic model of vein types. Alers, 2008

Looking 320° N40W NE
KLEIN-GERMAN SHAFTS
BATES-HUNTER MINE, CENTRAL CITY, COLORADO
0 ft
GOLD ASSAYS (oz/ton)
D 6 0 0.5- 1.0 oz/ton
?
D 6 0 1 - 5.0 oz/ton
• .A. e > 5.0 oz/ton - 100 ft
SQUARES = O'GORMAN ASSAYS
TRIANGLES= MANAGEMENT
ASSAYS CIRCLES= HISTORIC
ASSAYS
= = = =163][1evfil::
- 200 ft
202 ft level
278 ft level
400 ft? II I I 400 ft? pump

station
361 ft level
[] fill
tsZI decline shaft towards viewer 430 ft level
D tunnel or shaft 424 ft level
cutout 0.17
D stope FW 3" 0.12
IZI through tunnel HW 18" 0.96
C
am tunnel away from viewer
0
:.::;
IZI tunnel towards viewer
ro -cribbing 498 ft level
>
Q) caved
iii
Cross Vein 1.10

left right
0.80 0.40- 600 ft
0.42 1.08 ------------ I
2
. 4.60
[= = ;; ; Q {l 630 ft level 4".3 20 .3 58
8" 3.38
e.end 3.82
grab 1.32 / 0.24
FW 12" 0.40
?" 0.80 - 700 ft
grab 0.90, peacock 0.28 I I

HW 0.44, FW 6' 0.24 1 1
727 ft sump
grab 0.30
3" 1.04 X-V ein 8" 0.76 right 0.36
Chinaman Chute
peacock = 16" 3.80 NW1 0.16
broken muck = 2.16 coarse 1.60
16" Bt 0.28
10·· in 0.72
100 feet
Figure 10. Gold (Au) assays of the Bates-Hunter Mine.

90 11"'1
Contact
/ _E
Fault
foliation, inclined
-+- foliation , vertical

xx foliation with lineation
l
Synform: axial trace
Antiform: axial trace
ENE sulfide veins Antiform, Overturned: axial trace
(types 1 & 2)
MINOR FOLDS
3 E-W veins z fold
(types 3 & 4) }--.
•
symmetric fold
fold axis
Diamond drill holes ---s=-+ s fold
I
open synform
++ open antiform
25
'f BH07-
g . OOJ-
fgn
----- /
,
13
50 METERS

/Ti
--- ------
redrawn from:
Sims and Gable, 1964
USGS PP-474-C, Plate 1
80
Figure 11, Plan map of drill holes.

Plane of section = 295°
8500ftNW View to 025° SE
Gregory Bobtail
Gulch Gulch
8300 ft
0 ft
8200 ft
E-W TRENDING VEINS

8100 ft
NE TRENDING VEINS
8000 ft
ALL VEINS INFERED FROM
- 00 ft
SURFACE AND DRILL DATA.
7900 ft ASSAY DATA REPORTED IN (!)
(!) 00 ft
OUNCES PER TON (opt) 0
7800 ft GREGORY MINE J:
.....
STOPES .::, 00 ft
7700ft
0
0:
(!) 00 ft
7600 ft r
r
0 - 00 ft
7500 ft
- 00 ft
7400 ft
00 ft
7300 ft
CP -1 00 ft
1400'
7200 ft
G)
m 0 1000 FT LEVEL
(/)
zmr= -1 00 ft
7100 ft
-1 00 ft
C
7000 ft
6900 ft 06-0 -1 00 ft
-1 0 ft
6800 ft
Figure 12. Cross-section of Bates Hunter Project 2006 diamond drill holes.
8600 ft
NW Plane of section: 304/90
view towards 034 N MAMMOTH
8500 ft Packard Gulch DRILL SITE
8400 ft
.8
C/)
1e
0 ft
a.
8200 ft
ine - 100 ft
nnel Le I Bobtail tunnel
8100 ft
?
s:
0
- 200 ft
en
8000 ft
rm ? - 300 ft
r
7900 ft
- 400 ft
u, 0.39 Ag / 1.0'
7800 ft
u, 1.36 Ag / 1.2'
- 500 ft
u, 1.11 A / 1 .6'
,-..;
7700ft co
0 - 600 ft
.c
..._o_
7600 ft
iE - 700 ft
0
75001 I
I
7 4;0 0 ft 0.0
0.
1
- 800 ft
0.012 - 900 ft
hooft 0.119 A ,
0.235 Au, 1 E-W TRENDING VEINS
-1000 ft
0.018 Au, .
7200 ft NE TRENDING VEINS
-1100 ft
ALL VEINS INFERED FROM
7100 ft SURFACE AND DRILL DATA.
-1200 ft
ASSAY DATA REPORTED IN
7000 ft
u, 5.37 A / 0.6' OUNCES PER TON (opt)
U , 1 .40 Ag / 0.5' -1300 ft
250 feet
6900 ft s/o?-oa
-1400 ft
Figure 13. Cross-section of Bates Hunter Project 2007 diamond drill holes.
8600 ft SECTION PLANE= 006/90
s VIEW TO 276° (WEST)
N
PACKARD GULCH DRILL SITE
GREGORY GULCH
8300 ft
0
8200 ft
- 100 ft
8100 ft
I - 200 ft
8000 ft
0.017 Au, 0.8 Ag / 0. POSSIBLE - 300 ft
0.749 Au, 0. 8 Ag/ 2. BUELL MIN
q 0.552 Au, 0. 2 Ag / 1 '
7900 ft ffi 0.033 Au, 0 0 Ag/ 1.
STOPES
- 400 ft
p
7800 ft
- 500 ft
7700 ft
- 600 ft
7600 ft
- 700 ft
0 BH07-08
7500 ft 1265'
- 800 ft
7400 ft
- 900 ft
7300 ft
-1000 ft
7200 ft
-1100ft
7100 ft
-1200 ft
7000 ft
-1300 ft
6900 ft
-1400 ft
6800 ft
600 ft
6700 ft
X-W TRENDING VEINS
6500 ft
NE TRENDING VEINS
6400 ft ALL VEINS INFERED FROM

ASSAY DATA REPORTED IN
6300 ft
OUNCES PER TON (opt)
6200 ft
250 feet
Figure 14. Cross-section of BH08-09

8600 ft PLANE OF SECTION = 206/90, VIEW TO N26E
MAMMOTH HILL
NW SE
8500 ft
GE AN MINE
8400 ft
8300 ft
_J 0 ft
_J
8200 ft
w
(/)
100 ft
Z O c:::::J
<(
8100 ft BOBTAIL TUNNE
200 ft
w I 1.2'
8000 ft (!)
300 ft
7900 ft C'·
() - 400 ft
;:=
7800 ft z
? 5
f
- 500 ft
7700 ft <(
- 600 ft
BH08- 0
(!)
7600 ft (!)
- 700 ft
0
7500 ft r
Cl - 800 ft
z
:::>
7400 ft C'· 0 d- , - 0.037 Au, .50 Ag 0.5'
- 900 ft
w 0.158 Au, .30 Ag 0.7'
-z
(!)
7300 ft 0.215 Au, .30 Ag 0.6'
-1000 ft
.,_ _ 0.053 Au, 0.39 I 1.0'
7200 ft 0.256 Au, 0.00 I 0.5'
0.338 Au, 0.00 g I 0.5' -1100 ft
7100 ft
0.286 Au, 0.00 g / 1.0'
0.112 Au, 0.00 g I 0.5'
0.168 Au, 0.00 g I 0.5' -1200 ft
7000 ft 0.170 Au, 0.00 g I 1.3'

-1300 ft
6900 ft
E-W TRENDING VEINS -1400 ft
6800 ft NE TRENDING VEINS

ALL VEINS INFERED FROM -1500 ft
6700 ft 1936' ASSAY DATA REPORTED IN
i----200 feet -1600 ft
OUNCES PER TON (opt)
Figure 15. Cross-section of BH08-10

r:entrat
VEIN: APPROXIMATE STRIKE LENGTH
1. LEAVITT: 800'
TOTALS s: = ::::;;;;; ==--- 2. GETTYSBURG: 1050'
3. BATES: 1000'
4. McALLISTER: 1200'
LENGTH: 5. MIDDLE: 800'
6. GERMAN: 1800'
-16,100 LINEAR FEET 7. HOPE #2: 1600'
-4907 METERS 8. MOSELL: 1000'
9. GASTON: 750'
10. BRANCH: 700'
11. SIMMONS: 400'
12. FOOT & SIMMONS: 200'
13. HARTFORD: 1400'
14. MAINE: 950'
15. GROUNDHOGG: 850'
16. CARR: 1200'
I
I
17. WHITESIDE:
MINERAL RIGHTS II
D HUNTER GOLD
21 ACRES
I I
500 FEET
100 METERS
D MAMMOTH HILL LLC

13 ACRES
I topography from
USGS 7.5' Quads
Black Hawk
---
Central City
Figure 16. controlled veins.

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OREM INC.

Central City, Gilpin County, Colorado, U.S.A.

Glenn R. O’Gorman, B.Sc., P. Eng., F.C.I.M.

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Stage 1 mineralization consists of pitchblende and local secondary uranium minerals

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Stage 4 Telluride mineralization consists of braided networks of hairline to 0.5-foot-thick

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The Bates Hunter Project is surrounded by numerous adjacent properties. Many of

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Fisk 7 448,000 1,050 427 400,000

Gregory 2 342,000 843 406 470,000

German 1 113,000 745 152 190,000

Leavitt 5 63,000 487 129 200,000

Gaston 1 15,000 400 38 60,000

Totals 23 1,135,000 667 1,702 1,810,000

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Diamond Drilling (6,000 feet @ $100/ft) $600,000

Dewatering Plant Upgrades Allowance $500,000

Dewatering and Rehabilitation (12 months @ $60,000/mo) $720,000

Miscellaneous and Contingency $180,000

Total Phase II $2,000,000

Phase III – Budget

Crosscut on 745 ft level (150’ feet @ $1000/ft) $150,000

Underground Diamond Drilling (40 holes @ 200 ft @ $50/ft) $400,000

Project Overheads (12 months @ $60,000/mo) $720,000

Metallurgical Test Work $100,000

Miscellaneous and Contingency $130,000

Total Phase III $1,500,000

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1.4 Reliance on Other Experts

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Discussions are in progress whereby the State of Colorado and Environmental

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