The Canoe Reach Geothermal Project is situated approximately 32 kilometers south-east of Valemount, B.C. along the banks of Kinbasket Lake which lies in the Rocky Mountain Trench between the Monashee Mountains and the Rocky Mountains. The Project is covered by Permit # 55274, consisting of 7 PNG grids. The geothermal permit area measures 550 hectares and includes a series of high-temperature geothermal manifestations, consisting of a series of high-temperature hot-springs and mud – pools extending over a 1,500 metre strike length. The Canoe Reach geothermal project is approximately 7 kilometers from a substation on the BC Hydro Power lines and is accessible via forestry road off the Yellowhead Highway just south of Valemount, and is also accessible via boat on Kinbasket Lake (a journey of approximately 22 km.).

In a technical report (non NI 43-101 compliant) on the Project, dated June 15, 2007, Dr. Mory M. Ghomshei, P.Eng., P.Geo., noted temperatures as high as 70 to 80 degrees C. at the bottom of several mud pots, and stated that, based on silica, sodium/potassium and sodium/lithium geo-thermometers, “the deep reservoir temperature may be as high as 230 degrees C. to 260 degrees C.” This estimate needs to be confirmed by hydro-geochemical and geophysical surveys.

Christopher James Gold contracted Quantec Geoscience Ltd. to conduct a Titan – 24 magnetotelluric (MT) resistivity survey which was completed in August 2008. The data from that geophysics survey shows a series of resistivity lows under the hot-spring zones which are interpreted as potential reservoirs (see CJG News Release Sept.22, 2008). As a result of these encouraging preliminary results the Company has contracted Quantec Geoscience to conduct several additional lines of Titan – 24 in October 2008 to better define the extent of the resistivity lows already identified. The geophysical surveys will be complemented by a 3 – 4 hole (1000 metre) diamond drill program, combined with down-hole geophysics, planned for 2009. Assuming sufficient reservoir capacity and the high temperatures of the deep reservoir are confirmed, the Company will look at the viability of developing a flash steam (or binary cycle) power generation plant.

Canoe Reach Qualifying Report

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by Dr. Mory M. Ghomshei P.Eng P.Geo
dated June 15, 2007