You are on page 1of 6

CONTRACT PROPOSAL

INDUCED POLARIZATION AND MAGNETOMETER SURVEYS

HOLY CROSS PROPERTY, FRASER LAKE AREA, B.C.

on behalf of

GOLDEN CROSS RESOURCES INC. Suite 804 – 750 West Pender Street Vancouver, B.C. V6C 2T7

Tel

Fax 604 685 6905

604 644 9829

contact: Jim Chapman

by

Tel 604 687 2038 Cell 778 228 2676 jchapman@dcm.ca

SCOTT GEOPHYSICS LTD. 4013 West 14 th Avenue Vancouver, B.C. V6R 2X3

Contact:

Alan Scott

Tel

Fax 604 228 0254 alanscott@telus.net

604 228 0237

August 27, 2007

TABLE OF CONTENTS

page

1. INTRODUCTION

1

2. SURVEY AREA AND SURVEY TIMING

1

3. INSTRUMENTATION AND EQUIPMENT

1

4. PERSONNEL

1

5. TECHNICAL SPECIFICATIONS

2

6. DATA PRESENTATION AND REPORTING

2

7. PROVISIONS BY GOLDEN CROSS

2

8. INSURANCE

3

9. PRICE PROPOSAL

3

10. CONFIDENTIALITY

3

11. COST ESTIMATE

4

12. PAYMENT TERMS

4

13. ACCEPTANCE

4

Page 1

INDUCED POLARIZATION AND MAGNETOMETER SURVEYS HOLY CROSS PROPERTY, FRASER LAKE AREA, B.C. ON BEHALF OF GOLDEN CROSS RESOURCES INC.

1.

INTRODUCTION Induced Polarization (IP) and magnetometer surveys will be executed by Scott Geophysics Ltd., hereinafter referred to as SCOTT, on behalf of Golden Cross Resources Inc., hereinafter referred to as GOLDEN CROSS.

2.

SURVEY AREA AND SURVEY TIMING Present plans are for the survey to consist of 20 km of IP and magnetometer surveys at the Holy Cross Property, Fraser Lake Area, B.C. Final coverage will be as directed by GOLDEN CROSS in consultation with SCOTT, subject to site and equipment limitations.

Present plans are for SCOTT personnel and equipment to mobilize to the job site on October 13,

2007.

3.

INSTRUMENTATION AND EQUIPMENT

3.1

SCOTT will provide the following instrumentation and equipment:

One (1) GDD TXII IP transmitter/motor generator One (1) Scintrex IPR12 time domain IP receiver Two (2) Garmin GPS receivers All ancillary equipment as necessary for the effective execution of the surveys. (Computer, radios, electrodes, wire, tools, etc.).

3.2

Two (2) Scintrex ENVI magnetometers.

3.3

One 4x4 Suburban. A second vehicle may be used for mob/demob. Charges for that vehicle will only apply for days it is used.

4.

PERSONNEL

4.1

SCOTT will assign the following personnel to the project:

Crew Chief: An experienced IP survey operator/crew chief.

Technician:

An experienced operator/technician.

4.2

A minimum of three assistants are required for this survey. This proposal and cost estimate assumes that SCOTT provides all three assistants.

page 2

5.

SPECIFICATIONS

A

Scintrex IPR12 receiver and a GDD transmitter will be used for the IP survey. Readings will

be

taken in the time domain using a 2 second pulse.

The

IP survey will be performed with the pole dipole array. Present plans are for survey at an “a”

spacing of 25 metres and at “n” separations of 1 to 5 (25/1-5). SCOTT will be prepared to utilize other arrays at the request of GOLDEN CROSS, subject to site and equipment limitations.

The chargeability will be measured at eleven delay times after cessation of the current pulse. The time delay to the first window will be 50msecs. Subsequently, window widths will be 20,

40,

40, 80, 80, 140, 140, 230, 230, 360, and 360 msecs, labelled as M4 to M14 respectively. A

user definable window (Mx) will also be measured, which SCOTT will set to 690 to 1050 msecs unless otherwise requested. These values, along with grid coordinates, primary voltage, current, resistivity, and SP gradient, will be recorded in memory.

Two Scintrex ENVI magnetometers will be used for the magnetometer survey, one as the field

unit

and the other as a fixed base station. Readings will be taken at 12.5 metre intervals.

6.

DATA PRESENTATION AND REPORTING

All

data will be processed at the end of each survey day and archived to floppy disk. On site

presentation will consist of pseudosections of the chargeability and resistivity with profiles of the magnetic field, and will be available to the GOLDEN CROSS representative.

Final black and white pseudosections and contour plans of the chargeability and resistivity; contour, profile, and data posting plans of the magnetic field; and a brief logistical report with a

CD

archive of all final data and maps will be delivered to GOLDEN CROSS within two weeks

of

completion of the surveys.

Additional presentation, such as colour plots and/or IP/resistivity inversion, will be provided at the request of GOLDEN CROSS.

7.

PROVISIONS BY GOLDEN CROSS

A designated representative for any aspect of this survey.

A map of the survey areas showing access, grid location, lines to be surveyed, and topographical

features.

Travel expenses, fuel, accommodations, and meals or groceries, or costs thereof per section 9.4. The cost estimate assumes that GOLDEN CROSS provides meals and accommodations at the site.

Any expenses charged to GOLDEN CROSS will be for the efficient performance of the survey

and will not be of a solely personal nature.

page 3

8. INSURANCE SCOTT covenants to carry and maintain throughout the currency of this agreement the following insurance:

Workmen’s compensation

Public liability, including employers, covering bodily injury and property damage

9. PRICE PROPOSAL

9.1 Fixed fee

9.2 Survey day charges per sections 3.1 and 4.1 (For crew chief, technician, IP survey system)

BC – WCB Employer No. 340570-142

$2,000,000.

$600.

$1340./day

A survey day is any day SCOTT personnel and equipment are on site performing IP survey work.

9.3 Travel or standby charges per sections 3.1 and 4.1 (For crew chief, technician, IP survey system)

$890./day

A travel day is any day SCOTT personnel and equipment are travelling and no IP survey work is performed. A standby day is any day they are unable to perform survey work due to the survey area being inaccessible or telluric storms. Standby for any other cause, such as equipment damage, injury, or theft by third parties will be: $530./day

9.4 Expenses per section 7.0 (unless charged directly to the account of GOLDEN CROSS)

(cost – GST)

+10%

4x4 Suburban (per section 3.3)

$110./day

9.5 Charges per assistant (per section 4.2)

$220./day

9.6 Additional reporting, presentation, interpretation:

Geophysicist

$500./day

Plotter charges, copying, materials

(cost – GST)

+10%

Inversion and colour plots of maps and sections will be provided at the request of GOLDEN CROSS.

9.7 Magnetometer survey

$150./km

10. CONFIDENTIALITY All data and materials resulting from this survey will be the property of GOLDEN CROSS and will be held confidential.

page 4

11. COST ESTIMATE The costs for performing this work will be as defined in section 9. Average progress is estimated at 1.8 km/day @ 25/1-5 plus ½ day each towards equipment setup and takedown. If the work is scheduled with another SCOTT project in Northern BC the charges for mob/demob will be prorated with that other project. The cost estimate assumes that is the case.

11.1

Cost estimate: 20 km p-d IP at 25/1-5 plus mag @ 12.5m. Fixed fee

Mob/demob (assume split with another project)

$600.

For crew chief, technician, equipment:

 

2 travel days

@ $890

1780.

IP survey

12 survey days @ $1340

16080.

Assistants

3 assistants

@ $220/day x 14 days

9240.

Expenses (during mob/demob)

(est $420/day) x 14 days

5880.

4x4 Suburban

14 days @ $110

1540.

second 4x4 Suburban (mob/demob)

2 days @ $110

220.

Magnetometer survey (optional)

20 km @ $150

3000.

SCOTT charges for survey, logistical report with b&w maps and data disk:

$38340.

11.3 Other Costs to GOLDEN CROSS

Additional presentation and reporting, such as Inversion, colour maps, or merging this data with other surveys, will be charged per section 9.6.

GST will be charged at 6 percent. SCOTT’s GST number is 10475 4106.

12. PAYMENT TERMS An advance payment of $7000 is due on execution of this agreement. Thereafter, invoices will be submitted bimonthly for services provided to the invoice date. All charges are due in full on the invoice date. Payments in arrears beyond 30 days will accrue interest at 12% per annum.

13. ACCEPTANCE If the above terms and conditions are acceptable to GOLDEN CROSS, please sign and return this page, along with the advance payment, and we will proceed with the necessary arrangements.

SCOTT GEOPHYSICS LTD

“Alan Scott”

Alan Scott, President

GOLDEN CROSS RESOURCES INC.

“Geoffrey Goodall”

per