81206 082FSW229 082F6 W1 Nelson STEWART 2, MAIN, STEWART, YMIR, SALMO, PHASE I BRECCIA, PHASE II BRECCIA 082F024 082F06W Developed Prospect 49° 16' 55'' 117° 15' 56'' 49.281944 -117.265556 11 5458625 480766 Molybdenum, Tungsten, Gold, Silver, Lead, Zinc, Rhenium Omineca Quesnel, Plutonic Rocks L05 : Porphyry Mo (Low F- type), K05 : W skarn, I05 : Polymetallic veins Ag-Pb-Zn+/-Au The Stewart property is located at approximately 1524 metres elevation on the south side of Stewart Creek, 3.2 kilometres west-northwest of Ymir. The Stewart 2 showing is located 4 kilometres west of Ymir and 28 kilometres south of Nelson. The area is underlain by the Lower Jurassic Elise and Hall Formations of the Rossland Group, which hosts a multi-stage intrusive complex. The complex comprises Middle to Late Jurassic Nelson quartz monzonite porphyries, Middle Eocene biotite augite monzonite and Coryell Intrusions with related aplite, diabase and lamprophyre dykes. The intrusive complex, surrounding sediments and volcanics locally host, sometimes overlapping, silica flooding, potassium metasomatism, quartz-stockwork development, argillic, sericitic, and propylitic alteration. The volcanic rocks comprise intermediate to mafic flows, fine pyroclastic units, augite porphyry, agglomerate and volcanic breccias. Tungsten-bearing skarns and pyrite-pyrrhotite veins with lead-zinc-silver values have been documented around the margins of the complex. Gold has been identified only in trace amounts within the intrusives but occurs as free gold and with pyrite within quartz veins peripheral to the intrusive complex. Molybdenite has been identified as sparse disseminations and selvages on fracture surfaces within quartz-stockwork zones and in the Phase I Breccia unit. It is most extensive within the Phase II Breccia on the northwest margin of the complex, where it occurs in a pipe-like breccia body as fine disseminations within the matrix, as selvages on fractures and within quartz veinlets. Molybdenite is also disseminated within the quartz-monzonite porphyry breccia fragments and more rarely forms quartz-molybdenite fragments within the molybdenum-rich matrix of the Phase II Breccia. Powellite is a common alteration mineral on surface of the Phase II Breccia and the breccia is associated with strong pyrite-sericite alteration. Early work on the showings, for which there is no record, included an 8-metre adit. Drysdale, 1917 (GSC Memoir 94) reported molybdenum on a claim towards the headwaters of Stewart Creek. The Stewart group of eight claims and the Stewart No. 2 group of 13 claims were staked in 1942 by E.P. Harkedahl, O.P. Anderson and E. Emilson of Ymir. Premier Gold Mining Company Limited optioned the property in July 1942. Work by the company included prospecting, stripping, trenching, reopening the old adit and sampling. The option was given up in November 1942. The Consolidated Mining and Smelting Company of Canada Limited optioned the property in 1943 and sampled the showings. A bulk sample was taken for a mill test. The option was dropped in July 1943. The showings were restaked by Harkedahl and Associates in approximately 1948 as the Scheelite and Scheelite 2 (six claims) and the adjacent N.H. group of eight claims. The 14 claims were optioned to K.J. Springer and Associates, who incorporated Arrow Tungsten Mines Limited in March 1951 to acquire the property. Mineralization in trenched zones A, B and C was estimated at 330 tons per vertical foot averaging 0.50 per cent tungsten trioxide. If this continued down dip for 61 metres the probable reserve would be 66 000 tons (DM Cannon 5/04/51 in Arrow Tungsten Mines Limited Prospectus 30/04/51). The company drove an adit south for 140 metres. At 58 metres from the portal a raise was driven 27 metres to old surface workings. Diamond drilling at right angles to the adit was done in three holes to the east and seven to the west. Only spotty scheelite and powellite was found in the narrow skarn band which the adit followed for 62 metres until it became indistinguishable. No mineralization was reported to be encountered during the diamond drilling. Work ceased in March 1952 and did not continue until 1967. In 1967, Copper Horn Mining Ltd. explored the property for molybdenum by soil geochemistry sampling, mapping and magnetometer geophysical surveys. In 1969, Quintana Minerals Corp. conducted geological and geochemical investigations throughout the Stewart property. In 1977, Union Carbide explored the Arrow Tungsten area (MINFILE 082FSW311) of the property with a geochemical survey for tungsten, molybdenum, copper and zinc. The property was held in 1978 as the Stewart 1-4 claims (66 units) by Eric and Jack Denny of Nelson. A geochemical soil and silt survey was carried out over Stewart 1-3. In 1979 to 1980, Asamera Oil Corporation carried out a geochemical exploration program for molybdenum on the Bobbi claims on the eastern part of the Stewart property. From 1979 to 1981 Shell Canada Resources Ltd. optioned the property and carried out a detailed evaluation over large areas that included geological mapping, magnetometer and impulse EM geophysics, soil geochemistry and diamond drilling. Drilling in 1980 at the Stewart 2 showing (DDH 80-3) resulted in a sample that assayed 0.036 per cent tungsten trioxide across 57 metres (Assessment Report 12251). Sampling indicates three ore shoots with an aggregate length of 188 metres and an average grade of 0.50 per cent tungsten trioxide across 2 metres (National Mineral Inventory Card 082F6 W1). From 1982 to 1984, Selco Inc., a division of BP Exploration Canada Ltd., conducted exploration on the property including airborne EM and magnetic surveys, rock chip sampling, geological evaluations, ground geophysics and core drilling. In 1987, Lacana Mining Corp. conducted geochemical sampling but failed to find new targets. From 1989 to 1990, Minnova Inc. explored the Stewart property for gold using soil geochemistry and re-assayed historic drillcore samples. From 1992 to 1993, Cameco Corp. completed two exploration programs, including geological mapping, soil and rock sampling, IP and magnetic geophysical surveys, trenching and a small drill program. In 1995, Orvana Minerals acquired the Stewart property to classify existing showings and find new targets with a focus on gold and copper. From 1996 to 1997, Orvana Minerals conducted geologic mapping; rock, soil and moss mat geochemical sampling and ground magnetic and EM surveys. In 2001, Emgold Mining Corp. acquired the Stewart property from Jack and Eric Denny. In 2002, Emgold Mining Corp. conducted soil geochemical sampling to verify historical findings followed by airborne magnetic, resistivity and EM surveys in 2003. In 2004, Emgold Mining Corp. completed a program of prospecting, rock and soil sampling and diamond drilling. In 2005, Emgold Mining Corp. drilled five holes testing historic drill results at the Stewart 2 showing. Drillhole SM0505 returned 35.91 metres grading 0.358 per cent molybdenum (Assessment Report 28202). In 2007, Emgold Mining Corp. conducted trenching and diamond drilling over several areas of the property, the main focus being the Arrow Tungsten showing (MINFILE 082FSW311). In 2011, Emgold Mining Corp. completed a 19-hole drill program on the Stewart 2 showing to get a better understanding of the extent of mineralization within the breccia. Highlights of this program include drillhole 11SM07, which returned 0.6 metres grading 0.587 per cent molybdenum and 1.751 grams per tonne rhenium, as well as drillhole 11SM12, which returned 0.21 metres grading 7.0949 grams per tonne gold (Assessment Report 33456). In 2012, Emgold Mining Corp. completed an 11 drillhole program focusing on the Stewart 2 showing, Free Silver showing (MINFILE 082FSW277) and Stewart Creek showing. EMPR AR 1902-298; 1908-108; 1912-154; 1915-155; 1920-134; 1921-172; 1929-351; 1942-79; 1943-80; 1951-137; 1952-145 EMPR ASS RPT 1083, 2301, 7074, 7722, *10072, *11670, *12251, 13166, 19704, 228929, 23092, 24123, 26863, 27454, 27640, *28202, 29755, *33456 EMPR BULL 9; 10 (Rev), p. 150; 41; 109 EMPR EXPL 1977-E46; 1978-E55; 1979-57; 1980-51; 1983-57,65; 1984-40,1986 EMPR FIELDWORK 1980, pp. 149-158; 1981, pp. 28-32, pp. 176-186; 1987, pp. 19-30; 1988, pp. 33-43; 1989, pp. 247-249; 1990, pp. 291-300 EMPR MAP 7685G; RGS 1977; 8480G EMPR OF 1988-1; *1989-11; 1991-16; 1991-17 EMPR PF (082FSW311-1:480 Scale Sketch Plan of workings and assays, Premier Gold Mining Co. Ltd., 1942) EMR MIN BULL MR 223 B.C. 30 EMR MP CORPFILE (Premier Gold Mining Company Ltd.; Arrow Tungsten Mines Ltd.) GSC EC GEOL 1959, #17, p. 115 GSC MAP 1090A; 1144A GSC MEM 77; 172; 308 GSC OF 1195 GSC P 51-4; 52-13 PR REL Emgold Mining Corp., Apr. 8, 2013 WWW http://www.emgold.com EMPR PFD 3675, 908726, 884393, 884394, 884395, 884396, 822497, 823036, 823037, 823038, 823039, 823040, 822649, 822979, 822999, 823000, 700110, 895189, 520043