Hawk Property

The Hawk property is located approximately 36 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 100% owned by Happy Creek and totals 2,136 hectares (21 square kilometres) in area. The property is easily accessible via existing logging roads, and close to resource based infrastructure.

The property is thought to represent an alkalic style copper-gold system, similar to others within the central axis of the Quesnel Trough in British Columbia. Widespread, positive values of copper, gold and silver in stream sediment, soil and rocks occur in an area approximately 3.5 kilometres by 1.5 kilometres in dimension.

Under NI43-101 (2001), the reader is cautioned that results or information of a historical nature cannot not be relied upon as the Company‚Äôs QP, a term which was created and defined under NI-43-101 has not prepared nor verified the historical information.
Property 2,495 hectares or 25 square kilometres of mineral tenure
Ownership 100% Happy Creek Minerals Ltd. since 2006
Key minerals present copper, gold, silver
Location 36 km northeast of 100 Mile House, south central British Columbia, Canada
Access Via paved and gravel roads from 100 Mile House
Closest mine Former Boss Mountain molybdenum mine
Surveys completed Prospecting, geology, geochemical, geophysical, machine trenching, diamond drilling
Sample database 57 silt, 109 rock, 691 soil
Best rock samples:

Sample

Cu %

Au g/t

Ag g/t

Sample

Cu %

Au g/t

Ag g/t

HAWK 02 DR3

4.53

18.01

105.7

151756

0.81

0.80

8.3

41577

0.71

1.11

9.1

151776

1.44

2.22

20.6

41583

0.44

0.71

4.2

151777

0.89

1.11

11.0

41589

0.60

2.86

6.5

151780

1.82

0.55

5.5

151639

0.40

0.47

3.7

151782

0.72

1.31

11.1

151640

2.49

3.06

25.7

151784

0.57

0.91

7.0

151643

2.57

3.30

29.6

151785

0.84

1.72

10.2

151644

1.85

3.25

24.4

184339

0.38

0.02

3.0

151646

1.38

0.28

8.4

184381

0.39

0.06

3.6

151647

0.65

0.37

2.5

184388

0.18

0.52

3.0

151648

0.62

0.21

3.3

184389

0.39

1.31

12.0

151689

0.53

2.55

8.0

184391

2.11

2.38

17.0

151690

2.17

5.35

15.0

HS-8

3.49

7.30

44.6

151753

0.98

0.64

9.2

HS-21

0.59

0.50

5.6

151754

0.32

0.77

5.8

HS-40

0.34

0.25

4.0

151755

0.52

0.78

8.8

5826

18.59

30.17

215.3

Geohysics 3D IP and magnetic , airborne radiometric and magnetic
Machine Trenching 2011 -12 trenches totalling 251.5 m
Main/Knobb zone, south and north:
HK12-T1: 0.7m 0.43% Cu, 1.61 g/t Au, 3.44 g/t Ag
HK12-T-5 5.0m of 0.76% Cu, 2.09 g/t Au,8.64 g/t Ag
HK12-T-6 grab 1.18% Cu, 1.11 g/t Au, 14.9 g/t Ag
HK12-T7 grab: 1.93% Cu, 10.5 g/t Au, 18.6 g/t Ag
HK12-T9 grab: 0.33% Cu, 1.18 g/t Au, 3.72 g/t Ag
Drilling Between 2007-2011, 5 holes totalling 1374.3m
Historical 1982 11 holes totalling 821.15 m
Knobb- Main zone 82-3: 4.57m 0.13% Cu, 0.43 g/t Au
82-4: 3.0m 0.79% Cu, 1.73 g/t Au, 9.43g/t Ag
82-5: 1.83m 0.93% Cu, 3.1 g/t Au, 12.34 g/t Ag
Including 0.64m 2.19% Cu, 6.14 g/t Au, 28.11g/t Ag.
Less than 10% of the core was split for sampling. Holes were short.
1985- further South of 1982. DH85-3 19.66m 0.12% Cu, 0.23 g/t Au, 1.92 g/t Ag
Includes 4.5m 0.27% Cu, 0.42 g/t Au, 4.2 g/t Ag. More core samples showing trace Au to end of hole.
2007: further south of 1985. DH 07H2 9.15m 0.093% Cu, 0.13 g/t Au at top of hole
Hawk- east 2010: Julian Resources drills two long holes on the eastern side of property into a high chargeability geophysical target; propylitic alteration and pyrite, with trace copper-gold values, and the last sample of the hole containing 0.03% Cu, 0.20 g/t Au.
Project Stage Exploration. Several targets ready for drilling. Additional targets in exploration stage
Services Hydropower 10 km away, 20 min drive to asphalt, logging and historical roads and trails provide access within property.

History

The property was intermittently explored between its discovery in 1978 and 1994.

Historically called the Clay prospect (Minfile 092P155) or "Knob" zone surface samples from the Main zone returned 1.0 metre containing 3.49% copper, 7.29 g/t gold and 46.5 g/t silver.

In 1982, 11 small diameter and shallow drill holes totaling 424 metres tested around the Main zone and to the north. Results from holes around the Main zone are not known, however two holes to the north are reported to contain 3.0 metres grading 0.79% copper, 1.73 g/t gold and 9.43g/t silver, and 1.83 metres containing 0.93% copper, 3.1 g/t gold and 12.34 g/t silver, respectively. In 1985, Noranda drilled four widely spaced holes totaling 397 metres. None of the holes were targeted directly at the Main zone, however one hole located along trend approximately 100 metres south intersected 20.0 metres containing 0.12% copper, 0.23 g/t gold and 1.92 g/t silver, including 4.5 metres containing 0.27% copper, 0.42 g/t gold and 4.2 g/t silver. This hole and two others contain elevated gold values, strong epidote alteration and sulphides to around 90 metres at their end.

In 2005, the Hawk property was covered by an airborne radiometric and magnetic geophysical survey. Between 2005 and 2010, Happy Creek completed systematic prospecting, stream sediment, soil and rock geochemistry, geology, a three dimensional induced polarization (3D IP) and magnetic geophysical survey, a detailed technical review of regional airborne radiometric and magnetic surveys, and drilling of three short reconnaissance holes. During 2009 and 2010, the property was optioned to Jiulian Resources Inc. that completed geological mapping, stream sediment, soil and rock sampling and two drill holes totalling 975 metres located on the east side of the property. Julian returned the property back to Happy Creek Minerals. In 2012, Happy Creek conducted machine trenches in areas where previous surface samples containing positive copper and gold occur. Trenching has confirmed the bedrock source of the numerous surface samples conducted on the property.

Overall positive copper, gold and silver values in rock, silt and soil occur in numerous zones over a 3.5 kilometre distance. Historical shallow drilling along the Main zone has returned positive copper-gold-silver values near surface, and drilling completed to the east and southeast of the Main zone returned positive alteration and anomalous copper-gold values consistent with the periphery of a porphyry system.

Geology

The Hawk property is underlain by Nicola Group volcanic breccia of the volcaniclastic succession, Late Triassic in age. Rocks consist predominantly of pyroxene phyric volcanic breccia and volcanic sandstone, along with siltstone, marble or limestone, tuff, conglomerate and basalt. These rocks include a breccia subunit comprised of pyroxene phyric volcanic breccia and massive pyroxene feldspar porphyry. These rocks are cut by diorite, gabbro, monzodiorite and monzonite believed to be the southern end of the Iron Lake Complex, late Triassic to early Jurassic in age, to the north and east. Tonalite, granodiorite and granite of the Takomkane Batholith, early Jurassic in age, occurs in contact with Nicola volcanic rocks along the western side of the Hawk property. Leucocratic quartz feldspar phyric dykes are cut by quartz veins that contain pyrite and chalcopyrite and occur in proximity to several mineralized zones including the Main zone.

The dominant alteration on the property that covers large areas is chlorite, epidote and carbonate with more localized zones of k-feldspar, magnetite, hematite, calc-silicate (diopside and actinolite?), quartz and albite. Pink to orange colour calcite also occurs with copper-gold mineralization that is similar to portions of the Mount Polley mine to the north. Mineralization at the Main zone occurs in proximity to monzonite dykes in a north-northeast trending zone and is largely fracture controlled in veins, veinlets and breccia, and locally replaces the rock matrix where calc-silicate occurs. The copper, gold and silver values are associated with predominantly bornite, digenite and variable concentrations of chalcopyrite, with minor malachite and azurite occurring near surface. Variable concentrations of pyrite, magnetite and hematite occur and are widespread on the property. Pyrite concentration can reach up to 15% locally. An historical petrographic report identified telluride minerals, coloradoite and hessite, present within mineralized samples.

Airborne and ground geophysical surveys, geology, alteration and mineralization support a large scale alkalic copper-gold model and the Main zone as well as several other target areas is thought to warrant drill testing.