A REPORT ON THE RUGGED GROUP OF MINERAL CLAIMS
(McDAME MOUNTAIN, BRITISH COLUMBIA)

By Wm. V. Smitheringale

PROPERTY AND ACCESS:

The property, consisting of 14 claims and one fractional claim (Rugged No. 1 to 14 inclusive and the
Rugged Fraction) is located on the headwaters of Troutline Creek and the Blue River, in the McDame Lake
area of northern British Columbia. This is about 70 air miles southwest of Watson Lake airport. The
showings are approximately 5,800 to 6,000 feet above sea level.

; A secondary road leaves the Alaskan Highway at mile 648, and has been extended to the showings
via McDame Creek and Troutline Creek, a distance of roughly 100 miles from the highway. From mile 648
on the highway to the White Pass and Yukon Railroad at Whitehorse, Yukon Territory, is 270 miles.

GEOLOGY AND DrscRIPTION OF SHOWINGS:

The rocks underlying the claims are mainly sedimentary, consisting of lower argillites and shales
overlain by limestone, which in turn is overlain with quartzite. Intruding the sediments along the valley
floor is a porphyritic granite and a basic rock has been intruded into the limestone. This latter rock, now
altered to serpentine, contains many veinlets of cross fibre chrysotile.

__ The main asbestos showings occur on the Rugged Nos. 3, 4, 5 and 6 claims, and form a talus slope
of irregular outline of at least 1,000 feet square. The talus slope consists of fragments of serpentine (some
pieces containing narrow veinlets of chrysotile) in a matrix of partly fluffed asbestos fibre. From a visual
examination the amount of asbestos fibre appears to vary from 10% to 30% or more of the talus material.
The thickness of the talus varies from roughly one foot along the upper contact of the serpentine to several
feet further down the hillside.

Protruding through the talus are several outcrops of serpentine containing veinlets of chrysotile. The
percentage of asbestos in some of these outcrops has been estimated at from 5% to 10%. The length of
fibre varies from 4%” to 114” with lengths of 4” and 34” being common.

This talus material has been derived from a body of serpentine rock underlying the upper part of the
talus slope. The amount of asbestos fibre in the talus indicates a relatively high percentage of fibre in the
underlying serpentine.

I consider this to be an outstanding discovery of asbestos containing a high percentage of spinning
and higher quality fibre and I recommend a program of development work to determine the extent and
commercial possibilities of the deposit.

WM. V. SMITHERINGALE.

CERTIFICATE

I, William V. Smitheringale, of 901 Royal Bank Building, Vancouver, British Columbia, hereby
certify as follows :—

1. Iam a qualified Mining Engineer and Geologist, having graduated from the University of British
Columbia in 1924 with the degree of B.Sc. in Mining Engineering and the Massachusetts Institute of
Technology in 1928 with the degree of Ph.D. in Geology. I have practiced my profession in Canada since
1928 with the exception of 1940-1944 when in the R.C.A.F. I am registered as a Professional Engineer of
British Columbia.

2. I have personally examined the claims and showings as described above. I first examined them

in September, 1950; I have since been responsible for the exploration and development work upon the
claims, and I have been on and in the vicinity of them during the months of May and June, 1951.

3. LI have not and never have had, either directly or indirectly, any interest in the property, but I
may be given the opportunity to purchase a small number of shares in the company at some future date at
a price yet to be determined.

4. Conwest Exploration Company Limited has expended money upon and in relation to the said
claims, which expenditures are of a nature which will be of lasting benefit to the continuing operation of the
said claims and have, in my opinion, increased the value thereof by a sum not less than $55,000.00.

DATED this 3rd day of July, 1951.
WM. V. SMITHERINGALE.