REPORT ON GEOPHYSICAL GROUND SURVEYS

ON THE REG 2 AND 3 MINERAL CLAIMS

MAGNETIC A N D ELECTROMAGNETIC PULSE SURVEYS

BY

HEIKKI LIMION

L o c a t i o n :

C l a i m s owned by :

Work d o n e by:

Work d o n e b e t w e e n :

Kamloops M i n i n g D i v i s i o n B r i t i s h Co lumbia NTS: 8 2 MI 2E

Newmont E x p l o r a t i o n o f C a n a d a L i m i t e d

Newmont E x p l o r a t i o n o f C a n a d a L i m i t e d

May 29 - September 20 , 1985

A geophysical survey in the roclcs of the Paleozoic

Eagle Bay formation revealed magnetic highs and two discrete

electromagnetic pulse (EMP) conductors. Both are recommended for

diamond drilling, to determine the cause for the anomalous

conductivity.

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TABLE OF CONTENTS

Summary Introduction Location, Access, Topography Geology and Previous Work EMP Instrumentation Geophysical Coverage Results and Interpretation Conclusions and Recommendations References Statement of Qualifications Cost Statement

Figures 1. Claim Index Map - 2. Location Map 3/4. EMP Field Survey Set-Up 5. Loop 5 - X Component at 4.37 ms - 6. Loop 6 - Resultant at 4.37 ms

( 7. Decay plot at .1100~/50S 8. Loop 7 - Resultant at 4.37 ms 9. Decay plot at 2500~/125S

Maps at 1 : 2500 1 . Clearwater Project REG Claims

~agnetic-contour Map, including Claim Location

2. Clearwater Project REG Claims Geophysical Interpretation

Appendix I

EMP Profiles and Plans Loops 5,6 and 7

(ii) (iii)

in pocket

Under separate cover

I n t r o d u c t i o n

The REG c l a i m s are east o f Vavenby, B.C., i n t h e

Kamloops Mining D i v i s i o n . They l i e i n t h e Shuswap Highland i n

t h e s o u t h e r n p a r t o f t h e C a r i b o o Moun ta ins , and are mapped t o be

a t t h e n o r t h w e s t e r n end o f t h e P a l e o z o i c E a g l e Bay Forma t ion .

The r o c k s a r e p o t e n t i a l h o s t s f o r v o l c a n o g e n i c mass ive

s u l p h i d e s o r e x h a l i t e h o s t e d m a s s i v e s u l p h i d e s which may c o n t a i n

g o l d .

The g e o p h y s i c a l s u r v e y w a s s e t up t o h e l p i n mapping o f

t h e claims, and t o l o o k f o r c o n d u c t i n g m a s s i v e s u l p h i d e d e p o s i t s .

- A g r i d w a s e s t a b l i s h e d o v e r t h e claims. The l i n e s have been r ead i w i t h a magnetometer . Three l o o p s were s e t up and r e a d w i t h t h e

( Newmont EMP ( E l e c t r o m a g n e t i c P u l s e ) sys t em.

L o c a t i o n , Access, Topography - F i g u r e s 1 a n d 2

The c l a i m s s t a r t 4km E o f t h e town o f Vavenby, s o u t h

o f t h e N . Thompson R i v e r . A r oad f rom Vavenby t o Adams Lake

p a s s e s t h r o u g h t h e c l a i m s . The c l a i m s t o t a l 118 u n i t s i n 6

m o d i f i e d g r i d claims, and t h e y are r e c o r d e d i n t h e Kamloops

Mining D i v i s i o n . The c l a i m s a r e 1 0 0 s owned by Rewmont

E x p l o r a t i o n o f Canada L imi t ed and are d e s c r i b e d as f o l l o w s :

CLAIM U N I T S RECORD NO. RECORD DATE

R E G 1 20 REG 2 20 REG 3 20 REG 4 20 REG 5 20 REG 8 1 8

May 29, 1984 May 29 , 1984 May 29, 1984 May 29 , 1984 May 29, 1984 Aug 9 , 1 9 8 4

Claims 2 and 3 were g r i d d e d f o r g e o p h y s i c s , f o r t h e y

a r e t h e more r e a d i l y a c c e s s i b l e , and t h e most l e v e l .

The topography is mounta inous , a l t h o u g h t h e g r i d is on

a p l a t e a u . E l e v a t i o n s range from 4000' t o 4300' on t h e g r i d .

The c l a i m s a r e wooded, and q u i t e t h i c k w i t h undergrowth i n s p o t s .

Geology and Previous Work

The g e o l o a h a s been d e s c r i b e d i n a r e p o r t by Nebocat

(1985). Most of t h e p r o p e r t y is covered by overburden.

The REG 1-8 c l a i m s a r e u n d e r l a i n by t h e Upper P a l e o z o i c

Eagle Bay Formation - a h i g h l y c o n t o r t e d and metamorphosed

assemblage of f e l s i c t o i n t e r m e d i a t e v o l c a n i c s , l i m e s t o n e , s h a l e , - and minor cong lomera te . The Eagle Bay r o c k s g r a d e i n t o t h e

Shuswap Metamorphic Complex t o t h e e a s t and a r e i n t r u d e d by t h e

Cre taceous Baldy and R a f t B a t h o l i t h s n e a r t h e n o r t h - c e n t r a l

p o r t i o n of t h e i r o c c u r r e n c e .

The G.S.C. Map (O.F.637) shows a sequence of c h l o r i t i c

s c h i s t and g r e e n s t o n e ; s e r i c i t i c p h y l l i t e , s c h i s t , and q u a r t z i t e ;

l i m e s t o n e ; and a r g i l l i t e u n d e r l y i n g t h e Reg c l a i m s . A c o n t o r t e d

a n t i f o r m a l s t r u c t u r e , shown t o u n d e r l i e p o r t i o n s of t h e Reg 1-3 c l a i m s , s u g g e s t s t h a t m u l t i p h a s e f o l d i n g h a s t a k e n p l a c e . Our

mapping a l o n g t h e p r o j e c t e d s o u t h e r n l imb o f t h i s s t r u c t u r e

r e v e a l e d a v a r i e t y o f d i p s r a n g i n g from SW t o SE which may

s u p p o r t t h i s i n t e r p r e t a t i o n .

The geology mapped by Newmont correlates well with the

G.S.C.'s classification and stratigraphy, except for some slight

variations in lithological description. The paucity of outcrops

throughout much of the area hampers accurate correlation between

units and in sorting out the stratigraphy. A tentative sequence

in the western part of the property is as follows: siliceous

metasediments overlain by andesite and chlorite schist; grey-

black argillite and phyllite; interbedded chlorite schists and

carbonate; andesite; massive limestone; and chlorite schist and

andesite. Whether or not some of these repetitions are due to

folding, thrusting, or interfingering is not clear.

The Chi claim, owned by CIMA Resources Limited, is

enveloped by the REG 1 claim. The Chi claim is staked on a

stratabound zone of disseminated copper mineralization discovered

- by Nicanex Mines Ltd., in 1969. After drilling three short holes on the showing in 1970, they allowed the claims to lapse; Barrier

Reef Resources acquired the ground as the Pipe and Exhalite

claims in July, 1977. Cima Resources staked the ground in

August, 1 983.

The Upper Paleozoic Eagle Bay Formation hosts major

stratabound Cu and Pb-Zn deposits, such as the Harper Creek and

Mt. McLennan deposits, respectively, as well as numerous small

deposits. The Rexspar uranium deposit, located 4km south of

Birch Island, occurs in a brecciated trachyte believed to be a

contemporaneous volcanic vent. The recent discovery of the Rea

gold deposit, west of Adams Lake, shows that the Eagle Bay

Formation has good potential for hosting precious metal, as well

as base metal, stratabound deposits.

-4-

The REG c l a i m s were s t a k e d i n May-Aug 1984, and l i m i t e d

g e o l o g i c a l and geochemica l s u r v e y s were comple ted t h a t y e a r

(Nebocat ( 1 9 8 5 ) ) . The g e o p h y s i c a l s u r v e y s t a r t e d i n August of

1985-

EMP I n s t r u m e n t a t i o n - F i g u r e s 3 and 4 A c a r t o o n ( F i g u r e 3 ) d e p i c t s t h e f i e l d l a y o u t .

The t r a n s m i t t e r l o o p i s u s u a l l y 400m x 800m, a l t h o u g h

i t s d imens ions w i l l v a r y depending on topography and t a r g e t . I t

is t h i c k , u n i n s u l a t e d aluminum w i r e . The t r a n s m i t t e r is powered

by a small g e n e r a t o r . A t y p i c a l t r a n s m i t t e r c u r r e n t waveform is

shown i n F i g u r e 4. C u r r e n t s h u t - o f f t a k e s p l a c e o v e r a q u a r t e r

s i n e wave shape i n 0 . 3 t o 0 .4 msec., and a common p e r i o d is 112

s e c . The t r a n s m i t t e r and r e c e i v e r a r e s y n c h r o n i z e d by r a d i o .

- The ground s u r v e y r e c e i v i n g c o i l is a i r c o r e d , measur ing 4 ' x 3 ' . The d r i l l h o l e c o i l is a narrow f e r r i t e c o r e d

u n i t . The r e c e i v e r i t s e l f w i l l measure 28 samples of t h e decay

c u r v e ove r f i f t e e n p e r i o d s . S e v e r a l r e p l i c a t i o n s a r e made. The

c h a n n e l s measured w i l l t y p i c a l l y cove r a range from 0 .5 msec t o

160 msec a f t e r t u r n - o f f . Data a r e r e c o r d e d i n i n t e r n a l s o l i d

s t a t e memory.

I n t h e f i e l d , t h r e e modes o f o p e r a t i o n a r e i n u s e . I n

t h e r e c o n n a i s s a n c e mode, v e r t i c a l component r e a d i n g s ove r w i d e l y

spaced g r i d p o i n t s w i l l g i v e a g e n e r a l i d e a of back-ground and

h e l p t o l o c a t e a n o m a l i e s . D e t a i l e d s u r v e y s which r e c o r d one

v e r t i c a l and two h o r i z o n t a l components map anomalous a r e a s .

Dr i l l h o l e s u r v e y s measur ing t h e a l o n g h o l e component a r e t h e

t h i r d f i e l d method. On t h e REG c l a i m s , t h e d e t a i l e d mode is

u s e d .

TRAVERSE LINES

MOVING RECEIVER

LOOP 0 c!

EMP FIELD PROCEDURE FIGURE 3

N E W M O N T T l M E DOMAIN

EMP S Y S T E M

CURRENT

TRANSMITTED

VOLTAGE

MICRO- 1 I lL MEASURED V O L T S -

0 20 40 6 0 8 0 IOC M

kuu..." . ' ' ' , SEC

2 8 CHANNELS

EMP MEASUREMENT PRINCIPLE FIGURE 4

-6-

The operator is critical to the success of field

surveys. He monitors the magnetic field decay and decides

whether data is acceptable. He will do the preliminary editing.

He can observe the anomalous decay, and can monitor the migration

of smoke rings (~abighian (1979)).

Field data will consist of about 15,000 numbers daily.

These numbers are recorded in instrument memory and are

transcribed onto a computer tape in the evening. Editing of data

is followed by the production of plots in the office, showing

sectional profiles, contour maps, vector plans or profiles, decay

plots, and combinations of the above.

Once the computer data has been viewed, it is possible

to remove regional effects and to automatically fit rectangular

or circular current distributions to explain field results.

- (Barnett (1984)).

Geophysical Coverage

Magnetic coverage was with the EDA OMNI IV total field recording magnetometer. There were 2402 field readings along the

30km of grid lines at 12-1/2m intervals. Data were corrected for

diurnal variations, using a tie line with repeated checks and the

OMNI IV tie line correcting procedure. The data are plotted on

the two Magnetic Contour Map.

Three EMP loops were laid out, and the 30km of grid

line are read at approximately 600 sites. Three components of

the decay of the induced magnetic field are measured. The

locations of the three loops are on the Geophysical

Interpretation map. Data from the first 16 channels of the

decay, contour plans of selected channels and components, and the

shape of the decay curve for selected readings are plotted in

- Appendix I.

Results and Interpretation - Geophysical Interpretation Maps Two d i s c r e t e , c o n d u c t i n g , anomal i e s a r e o u t l i n e d on EMP

Loops 6 and 7. Both a r e i n t e r p r e t e d t o be from f a i r l y deep

s o u r c e s . The magne t i c s u r v e y does n o t show any c l e a r magne t i c

t r e n d s , b u t t h e r e is some magnet ic a c t i v i t y i n t h e v i c i n i t y of

t h e EMP r e s p o n s e s .

Magnetic Survey - Magnetic Contour Map No d e f i n i t e g e o l o g i c a l t r e n d s a r e found on t h e magnet ic

su rvey . A g e n e r a l mag low t r e n d s n o r t h e a s t t h r o u g h 0 0 / 9 0 0 ~ . It

is c u t by a n o r t h wes t t r e n d i n g mag f e a t u r e which goes t h r o u g h

0 0 / 1 0 5 0 ~ . A g e n e r a l n o r t h - e a s t e r l y t r e n d o f mag h i g h s is e v i d e n t

on t h e wes t end of t h e g r i d .

Loop 5 EMP Figure 5

- A l a r g e anomalous i n d i c a t i o n on t h e nor th-wes t c o r n e r

of t h e l o o p is e v i d e n t . T h i s anomaly is e v e n t u a l l y r e s o l v e d from

l o o p 6 d a t a , and is d i s c u s s e d t h e r e . A s m a l l e r anomalous

i n d i c a t i o n is s e e n on t h e nor th-wes t c o r n e r o f t h e s u r v e y a r e a .

I t is t e n t a t i v e l y p l a c e d a t 3 0 8 ~ / 8 1 7 ~ , b u t canno t b e d e f i n i t e l y

l o c a t e d because t h e i n f l u e n c e of t h e o t h e r c o n d u c t o r is t o o

s t r o n g .

An EMP l o o p ove r t h a t c o n d u c t o r w i l l be r e q u i r e d t o

d e f i n e i t .

Loop 6 EMP - Figures 6 and 7 Loop 6 shows two c o n d u c t o r s . One, n e a r t h e n o r t h -

e a s t e r n edge of t h e l o o p is t h e same one t h a t w a s e v i d e n t f rom

l o o p 5. A second , n e a r t h e n o r t h e r n edge o f t h e s u r v e y a r e a is ,

a g a i n , n o t d e f i n a b l e ; and needs a l o o p t o t h e n o r t h .

The anomaly n e a r t h e l o o p edge is c e n t e r e d n e a r t h e

b a s e l i n e i n e a r l y t i m e (4 .37 msec ) , and m i g r a t e s n o r t h w i t h t i m e

(8 .27 msec) . I t a l s o shows a n e a r v e r t i c a l d i p (85') i n e a r l y

t i m e and f l a t t e n s o u t t o 34' w e s t e r l y w i t h l a t e r t i m e . A l l o f

t h i s i n d i c a t e s a c o n d u c t i v e body t h a t is n o t f l a t i n one

d imens ion , b u t r a t h e r h a s no w e l l d e f i n e d s t r i k e and d i p . A t

l a t e r t i m e , t h e eddy c u r r e n t s w i l l t e n d t o l o c a t e on t h e p l a n e

w i t h t h e most c o n d u c t i n g m a t e r i a l .

The decay h a s a t i m e c o n s t a n t o f 3.6 msec ( ~ i g u r e 7), when model led w i t h a n e x p o n e n t i a l c u r v e . T h i s g i v e s a

c o n d u c t i v i t y wid th of 357 mhos t o t h e body.

The ' b e s t ' model f o r t h e c o n d u c t i v e body a t 8 .27 msec

i s drawn on t h e Geophys ica l I n t e r p r e t a t i o n map. A d r i l l h o l e at

- 1 1 0 0 ~ / 0 0 d r i l l i n g 360' a t -55' s h o u l d i n t e r s e c t t h e c o n d u c t o r ; - bo th t h e conduc to r a t e a r l y t i m e and a t l a t e t i m e .

Loop 7 EMP - Figures 8 & 9 On l o o p 7 , we a g a i n s e e a n i ll d e f i n e d c o n d u c t i n g

h o r i z o n on t h e n o r t h end of t h e s u r v e y a r e a , and a b e t t e r d e f i n e d

conduc to r n e a r t h e w e s t e r n edge ( ~ i g u r e 8 ) .

The main conduc to r n e a r t h e w e s t e r n edge moves w i t h

t i m e , i n d i c a t i n g t h a t i t is n o t a p l a n a r f e a t u r e . A t l a t e r t i m e ,

t h e b e s t f i t t i n g conduc to r model d i p s a t 41' t o t h e s o u t h e a s t .

The conduc to r is shown t o b e f a i r l y deep (153m). It h a s a t ime

c o n s t a n t of 3 . 9 msec, and an i n t e r p r e t e d c o n d u c t i v i t y - w i d t h o f

770 mhos.

Because o f t h e small s i z e o f t h e model t a r g e t , t h e

- recommended d r i l l h o l e i s a t 1803/251 g ~ , and d r i l l i n g v e r t i c a l l y

f o r 180m.

Conclusions and Recommendations

The northern part of the grid area, from 2000W to 800W

remains as an area of ill-defined EMP responses. Any

encouragement found in the drill holes means that the area should

be explored with further EMP.

Two good conductors are interpreted to lie at 100m-150m

depth. These are both prime drill targets. Magnetic survey data

show magnetic anomalies in the region of those conductors, but

there is no definite correlation established between magnetic and

EMP anomalies.

- 1 0 -

EMP PLRN-VIEW PLOTS

TX LOOP NO. . 5

CHANNEL : 4 .37 MS

COMPONENT . L I V E R T . DOWN1 63

VERT. U N I T S . PICROVOLTS

HORZ . SCALE : 1 CM = 100 METERS 1

L

r

NEWMONT EXPLR. OF CRNRDR

AREA : CLEARWATER

PROJECT : REG

OPERATOR . PMO/OGL./LM

DATE . 4UGUST 1985

SURVEY TYPE : SURFACE EMP

CONTOUR INTERVAL

100 M I C R O V O L - T S

475N

275N

L

75N

125s

3255

5255

7255

9'25s

N E W M O N T E K P L R . OF C A N A D A

EMP SURVEY

AREA : CLEARHATER

PROJECT : QEG

OPERATOR : PMD/DGL

DATE : 9UGUST 1 9 8 5

SURVEY TYPE : SURFACE EI iP

TX LOOP NO. . G

RX COIL NO. : 1 0 5

STAT I ON : 1100H /5CS a

X-COMPONENT 335'

T-COHPONENT 65'

Z -COMPONENT DOHN

V) I- J 0 > '-3

3 w

IZ

0 2 4 6 8 A 0 12 1 4

MILLISECONDS

C O N T O U R I N T E R V A L

2 0 0 H 1 CROVOL.TS

-

FIG. 8 -

NEWMONT EXPLR. OF CANRDR

EMP SURVEY -

RRER : CLEQRHRTER

PROJECT : 9EG

OPERATOR : PMD/DGL

DATE : SEPTERBER 1 9 8 5

SURVEf TYPE : 5URFACE ERP

TX LOOP NO. : 7

RX COIL NO. : 105

STAT I ON : LSGOH/1255

M I L.L I SECONDS

References

Nabighian, M. N., 1979: Quasi-static transient response of a

conducting half-space: -an approximate representation.

Geophysics, vo1.44, no. 10, pp 1700-1 705.

Turner, J.A., and Nebocat, J., 1985: Geological and Geochemical

Report on the REG 1-9 Claims. Newmont Exploration of

Canada Limited, Vancouver, British Columbia.

Barnett, C.T., 1984: Simple inversion of time-domain

electromagnetic data. Geophysics, vo1.49, no.7, pp925-

933.

STATEMENT OF QUALIFICATIONS

I, Heikki timion, received my B.A.Sc degree in Engineering Science (Geophysics option) from the University of Toronto in 1965.

I spent two summers in qeophysical field work; one with Hudson's Bay Oil and Gas, and one with INCO Exploration.

In 1965-66 I worked for one year with Hudson's Bay Oil and Gas as a Junior Geophysicist in seismic field work.

From 1967-1976 I worked with INCO Exploration, on ground and airborne geophysical surveys. I was in charge of airborne geophysical operations for four years and worked on research and development of airborne qeophysical systems. I conducted qround geophysical surveys in Canada, U.S.A., and

II Brazil. i

In 1977 and 1978 I was head of the qeophysics sections in the Kenya Department of Mines and Geology. During this time, I was under contract to CJDA (the Canadian International Development Agency) .

Since the beginning of 1979, J have held the position of Chief Geophysicist of Newmont Exploration of Canada Limited.

I am a member of the Society of Exploration Geophysicists, the Association of Professional Engineers of Ontario, the Prospectors and Developers Association, and the Canadian Exploration Geophysical Society.

In my absence, the surveys were carried cut by party chief, David I,eask, who qraduated from University of Toronto in 1984 with a R.Sc. in Geolocry, and who has five season's prior experience as a geophysical technician.

STATEMENT OF COSTS

A. PERSONNEL 1985

P r o j e c t G e o l o g i s t s

1. May 29 J i m T u r n e r ( L i n e c u t t i n g ) J u n e 5-8, 10-16 J u l y 12, 13, 15

1 5 d a y s @ $128.13 $1,921.95

2. May 29 J o h n Nebocat ( L i n e c u t t i n g ) J u n e 5-8, 10, 11, 1 8

8 d a y s @ $129.17 $1,033.36

G e o p h y s i c i s t s

1. May 1 3 H. L i m i o n J u l y 3 1 Aug. 5, 1 9 S e p t . 2 4 O c t . 16, 22 Mov. 5, 6, 8.

1 0 d a y s @ $201.25

2 . J u l y 1 7 G . Boyd

1 d a y @ $201.25

3. Aug 14-31 D. L e a s k S e p t . 1-5

23 days @ $115.00

F i e l d A s s i s t a n t s

1. May 2 9 H . K l a t t ( L i n e c u t t i - n g ) J u n e 6-16 J u l y 1 5

1 3 d a y s @ $80 .00 $1,040.00

2. May 29 I a n C a s i d y ( L i n e c u t t i n g ) J u n e 7, 8, 10, 11

5 d a y s @ $101.00 $ 505.00

3 . May 29 G. R o s t e ( L i n e c u t t i n g ) J u n e 5 -8 , 10-16

1 2 d a y s @ $ 8 2 . 5 0

4 . May 29 K. McNei l ( L i n e c u t t i n g ) J u n e 6 , 8 , 1 0 - 1 2 , 14 -16 Aug. 21 -25 , 27-31 S e p t . 1, 2 , 4

2 3 d a y s @ $ 1 0 0 . 0 0

5 . Aug. 1 4 - 1 9 , L. M a r c h a k A u ~ . 22-29

1 4 d a y s @ $ 8 7 . 0 0

6 . Aug. 14-19 P . Dunn S e p t . 1 -13 S e p t . 1 6 - 2 0

3 2 d a y s @ $ 8 4 . 7 5

B. FOOD A N D ACCOMMODATION i n c . H y d r o , p r o p a n e

1. T r a i l e r R e n t a l 40 d a y s @ $ 1 3 . 4 1 $ 5 3 6 . 4 0

2 . Cook 1 3 1 . 5 h r s @ 1 2 . 5 0 1 h r $ 1 , 6 4 3 . 7 5 '

3 . Food 1 4 2 man-days @ $ 1 0 . 5 8 $ 1 , 5 0 2 . 3 6 $ 3 , 6 8 2 . 5 1

C . TRANSPORTATION

1. 4 x 4 s u b u r b a n 40 d a y s @ $ 6 5 . 0 0 $ 2 , 6 0 0 . 0 0

2. T r a v e l E x p e n s e

D. CONTRACT

1. L i n e c u t t i n g 6 . 5 5 k m @ $ 5 0 6 . 5 6 o r May 3 1 - J u n e 6

1 4 d a y s @ $ 2 3 7 . 0 0

E . INSTRUMENT RENTAL

Aug. 1 4 - S e p t . 9 1 . Magnetometer 8 d a y s @ $ 9 9 . 0 0 $ 7 9 2 . 0 0

(Edna Omni IV t o t a l f i e l d w i t h b a s e s t a t i o n )

2 . P u l s e EM 23 d a y s @ $ 3 3 3 . 0 0 $ 7 , 6 5 9 . 0 0 $ 8 , 4 5 1 . 0 0

F. SUPPLIES

1 . F l a g g i n g , f r e i g h t , e t c .

G. REPORT PREPARATION

1. T y p i n g , d r a f t i n g , e t c .