Inspiration Mining Corporation

The Jasper Property consists of three former Minfile occurrences known as the Jasper, Tam and Pan-Easy Prospects. The ground position was consolidated under one ownership in 1994 and 1995. Inspiration optioned the Property in 1995 acquired the Property outright in December, 1996.

Exploration activities on the claims dates back to the early 1970’s, when portions of the Property were explored for porphyry Cu potential and later, during the 1980’s, for Volcanogenic Massive Sulphide (‘VMS’) potential. The majority of the Property was then logged and several new showings were exposed in road-cuts. Some of the Showings were mapped and sampled in 1994 and 1995 by the author and reconnaissance soil sampling encountered highly anomalous results.

The current claims comprising the Jasper Property were located by the author, Arne O. Birkeland, in the summer and fall of 1994, who also staked claims covering the Tam, Easy and Pan Prospects when existing claims were allowed to forfeit. A detailed geologic mapping and sampling program was carried out in August, 1994 on the J Branch Main Showing. The Property was optioned in 1995 to Consolidated Taywin Resources Ltd., (now Inspiration Mining Corp. ‘Inspiration’) who acquired the Property outright by way of a Bill of Sale, Event Number 3086088 dated May 9, 1996.

A field exploration program was conducted by Arnex Resources Ltd. (‘Arnex’), for Inspiration, during December, 1995 to June, 1996. The program consisted primarily of establishing a cut-line grid at the J-Branch Main Showing area and completing a geological, geochemical and geophysical program. The program identified drill targets where mineralized showings and coincident geophysical and geochemical anomalies occur in a favourable geological setting.

A rock and grid soil geochemical sampling program was carried out in the vicinity of the Pan Road Showing by Arnex for Inspiration in December, 1998. A poly-metallic soil anomaly was discovered trending northerly off the soil grid. The program encountered very high base metal coincident anomalies, which extended beyond the sampled grid, and high-grade massive sulphide showings were sampled in outcrop.

In 2000, a soil geochemistry program extended the 1998 grid northward. As was similar to results from the 1998 South Pan Soil Grid, numerous poly-metallic soil geochemical anomalies were detected by the Pan Central and Pan North Grids, many of which were from orange coloured gossanous soils associated with the alteration zone.

In 2001, a similar geochemical program extended the Pan Grid to the north and south. Polymetallic base metal soil anomalies were present. Total length of the then established anomalous zone within the soil grid area was 1.6 kilometres in strike length with the anomalies being open up-slope and along strike.

In 2002 a reconnaissance style soil and stream sediment program was conducted to the north and south of the Pan grids along Caycuse Main logging road which extended the anomalies.

A grid soil geochemical program conducted in August and September, 2003 extended the soil grid to the north, and upslope to the east. Polymetallic soil anomalies appear to be clustered in generally two areas. In the North Pan Grid area, high soil values are present clustered between 2300 N and 2450 N within the drainage area of Camp Creek. High soil values are also clustered in the central portion of the Pan South Grid. Soil anomalies occur over a 2.8 kilometre distance on the combined Pan grids.

A +four kilometre long northward striking pyritic intensive alteration zone is present within rocks mapped as lower Jurassic Bonanza volcanics that underlie the Property. Polymetallic Massive and Semi-Massive Sulphide showings and stream sediment and soil anomalies are present in numerous locations within the alteration zone.

The alteration zone is generally present at the contact between mafic, intermediate and felsic sub-aqueous volcanic rocks, and both footwall stringer type mineralization and layered, concordant mineralization has been exposed by logging road-cuts. The geological setting, ore and gangue mineralogy and alteration assemblages support the classification of the mineralization as being of Volcanogenic Massive Sulphide (‘VMS’) type. It is concluded that the Property offers excellent exploration potential for the discovery of a series of clustered, VMS deposits based on the large-scale size of the hydrothermal system, positive geochemical responses from areas tested to date and the presence of high grade outcrop showings in several localities hosted in a favourable geological environment.

A phased $500,000 exploration program is recommended.