Happy Creek Minerals Ltd.

Hawk Property

The Hawk property is located approximately 35.8 kilometres northeast of 100 Mile House, and 24 kilometres south of the Boss Mountain moly mine, in the south Cariboo of British Columbia, Canada. The property is a bulk tonnage copper-gold-silver target totalling 1,978 hectares, with 1,378 hectares owned 100 percent and 600 hectares under option to own 100 percent. The property is easily accessible via existing logging roads, and close to resource based infrastructure.

In 2007, positive rock, soil and induced polarization geophysical survey results were obtained. In 2008, exploration consisting of geological mapping, additional soil and rock sampling and induced polarization and magnetic surveys is underway, with trenching and drilling planned for later in the summer.

Geology

The Hawk property is underlain by Nicola Group volcanic and sedimentary rocks, Upper Triassic-Lower Jurassic in age that are cut by several phases of intrusion that are coeval with the volcanic rock, and diorite to monzodiorite in composition. Relatively high grade copper, gold and silver values are associated with dominantly bornite, chalcopyrite copper sulphides, along with k-feldspar, biotite, quartz, magnetite and chlorite, epidote alteration minerals. The geology, structure, alteration and mineralization is consistent with an alkaline intrusion related copper-gold-silver porphyry or skarn system similar to existing BC mines such as Mt. Polley, Afton, Copper Mountain, or Kemess.

Exploration

Historical Exploration

The Hawk property, formerly called the Clay property, was discovered by Alfred and Clay Robinson in 1978. Between 1979 and 1984 the property was explored by several small companies. The first ever diamond drilling on the Hawk property was conducted by the privately held Alclare Resources Inc. in 1983 on the Knob zone. The drilling returned three metres grading 0.79 percent copper, 1.73 g/t gold and 9.43g/t silver in hole 82-4, and 1.83 metres containing 0.93 percent copper, 3.1 g/t gold and 12.34 g/t silver in hole 82-5.

Xstrata plc (formerly Noranda Inc.) optioned the property in 1984. Xstrata conducted geology, soil and rock geochemical surveys, magnetic and induced polarization geophysical surveys. In 1985, Xstrata carried out trenching and diamond drilling of four holes totalling 397 metres to the southwest of the Alclare drill holes with results including 19.66 metres containing 0.119 percent copper, 0.233 g/t gold and 1.92 g/t silver, including 4.5 metres containing 0.27 percent copper, 0.420 g/t gold and 4.2 g/t silver. Xstrata returned in 1986 and extended the soil grid to the south, but later abandoned the property.

In 1990, Princeton Mining Corporation optioned the Hawk property. Princeton Mining extended the Xstrata soil geochemical survey to the north and south, and conducted both soil sampling and geological mapping. This work expanded to the north the copper soil anomalies that were earlier depicted, and identified copper in soil anomalies several hundred metres further south. Rock sampling of one surface exposure returned one metre containing 3.49 percent copper, 7.29 g/t gold and 46.5 g/t silver.

In April 1994, Pioneer Metals Corporation conducted a limited soil sampling survey on one of the copper soil anomalies located previously and reconnaissance soils were taken south of previous work; however, they abandoned the property later that year.

Approximately ten years later, the Hawk property was re-staked in 2004. In 2005, due diligence work by Happy Creek Minerals located several new zones of copper-gold bearing rocks, and by 2006 the Company had acquired a 100 percent interest in the property.

Exploration -- 2005 to 2006
Between 2005 and 2006, Happy Creek conducted detailed prospecting and a review of historical work. The main Knob zone (historically the Clay prospect) was systematically chip sampled three times and returned an average 1.05 percent copper and 0.80 g/t gold across five metres. One of the five metre samples returned 1.82% copper, 1.33 g/t gold and 14.9 g/t silver. In this area boulders returned up to 4.5 percent copper, 18.0 g/t gold. Approximately 250 metres to the northeast, subcrop rock samples returned 2.49% copper, 3.06 g/t gold, 25.7 g/t silver. Approximately 700 metres northeast of the Knob zone, angular rubble returned 1.2 percent copper and 1.3 g/t gold. Between 400 and 600 metres southwest of the Knob zone material grading up to 2.17 percent copper and 5.35 g/t gold, and 0.528 percent copper and 2.55 g/t gold occurs.

Exploration -- 2007 Program
Happy Creek's exploration in 2007 focused on areas that were previously under- explored to the southeast, and also covered a portion of positive radiometric and magnetic geophysical anomalies identified by a 2005 low level airborne geophysical survey.

Results from rock sampling include 2.1 percent copper, 2.38 g/t gold and 17.0 g/t silver from sub angular float, and 0.39 percent copper, 1.31 g/t gold and 12.0 g/t silver from a partially exposed quartz vein. A combination of recent and historical rock sampling have now identified widespread and significant values of copper, gold and silver in rocks over 3.5 kilometres by 1.5 kilometres in area.

Soil sampling in mid 2007 identified several linear and northwest to northeast trending copper anomalies to the southeast of previous exploration, and where surface rock samples have returned positive results. Additionally, a 3D induced polarization (IP) geophysical survey identified a moderate to strong anomaly approximately 1.6 kilometres in length and 600 metres in width in this area.

Diamond drilling in November of 2007 was held back by field conditions and difficulty in moving the drill to selected sites. The drill program was halted after three holes did not achieve the desired depth or location. Although these holes intersected trace chalcopyrite and bornite, overall values were low.

The Hawk property contains widespread and locally high copper, gold and silver values that are believed to be sourced in an underlying bulk tonnage (porphyry) system that is typical of known deposits elsewhere in BC. The positive IP anomaly remains untested by drilling and is a high priority target. Exploration in 2008 consisting of expanding the IP and soil geochemical surveys and property-wide geological mapping is underway, with trenching and diamond drilling planned for later in the year.


Page last updated: July 2008


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