geological brancr assessment report

GEOLOGICAL,GEOCHEMlCAL AND GEOPHYSICAL REPORT on the

CUMBERLAND PROPERTY

NTS 104B 6W Latitude 56’ 27’ N Longitude : 130’ 25’ W Mining Division : Skeena Owner Kenrich Mining Corp. and Ambergate Exploration Inc. Operator Placer Dome Exploration Ltd. Author D.J. Brownlee, P.Geol.(Alb) Date January 17, 1992

GEOLOGICAL BRANCR ASSESSMENT REPORT

1. 2. 3. 4.

5. 6. 7.

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11. 12. 13. 14. 15.

TABLE OF CONTENTS

INTRODUCIION SUMMARY RECOMMENDATIONS PROPERTY DEFINITION 4.1 Location, Access and Topography 4.2 Mineral Claims 4.3 History 4.4 Work Completed ECONOMIC ASSESSMENT REGIONAL GEOLOGY PROPERTY GEOLOGY 7.1 Rock Types

7.1.1 Unit 1 7.1.2 Unit 2 7.1.3 Unit 3 7.1.4 Unit 4 7.1.5 Unit 5

7.2 Structural Geology 7.3 Alteration 7.4 Mineralization

7.4.1 Star Showing GEOCHEMICAL SURVEY 9.1 Soil Sampling

9.1 .I Soil Development, Terrain, Vegetation 9.1.2 Sampling Procedure 9.1.3 Treatment and Presentation of Results 9.1.4 Discussion of Results 9.1.5 Interpretation of Results

9.2 Rock Sampling 9.2.1 Sampling Procedure 9.2.2 Discussion of Results

9.3 Bulk Stream Sediment Sampling 9.3.1 Sampling Procedure 9.3.2 Discussion of Results 9.3.3 Interpretation of Results

SAMPLE PREPARATlON AND ANALYTICAL PROCEDURE 10.1 Standard ICP Geochem Package Method 10.2 Geochem Gold Tests 10.3 Bulk Stream Sediment Analysis GEOPHYSICAL SURVEYS STATEMENT OF COSTS CONCLUSIONS LIST OF REFERENCES STATEMENT OF OUALlFlCATlONS

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10 10 IO 10 11 11 11 11 16 16 19 19 20 20 20 20 20 21 21 22 22 22 22 23 23 23 23 23 24 24 25 27 28 30

Figure 1 Figure 2 Figure 3 Figure 4 Figure 5 Figure 6 Figure 7 Figure 8 Figure 9 Figure 10 Figure 11 Figure 12 Figure 13 Figure 14 Figure 15 Figure 16 Figure 17 Figure 18

Table 1 Table 2

FIGURES

Location Map Claim Map Regional Geology Geology Map DDH Plan Map DDH Section; BHl, 2 & 3 DDH Section; BH6 DDH Section; BH4 & 5 Soil Geochemistry Map Au (fine fract.) Soil Geochemistry Map Au (coarse fract.) Soil Geochemistry Map Ag Soil Geochemistry Map Cu Soil Geochemistry Map Pb Soil Geochemistry Map Zn Soil Geochemistry Map P.s Bulk Stream Sediment Location Map Magnetometer Profile Map VLF-EM Fraser Filter Profile Map

TABLES

Claim Data Rock Sample Descriptions

APPENDICES

Appendix A Petrographic Report Appendix B Sample Analysis Results Appendix C Diamond Drill Hole Logs Appendix D Geophysical Report

1:500,000 1:50,000 1: 500,000 1:2,500 I:500 I:500 I:500 I:500 1:2,500 1:2,500 1:2,500 1:2,500 1:2,500 1:2,500 1 z2.500 1: 10,000 1:2,500 1:2,500

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1. INTRODUCTION r

The Cumberland property, consisting of 5 reverted crown grants and 11 modified grid claims, is located at the mouth of Sulphurets Creek, where it flows into the Unuk River. The property is controlled by Kenrich Mining Corporation (50%) and Ambergate Exploration Inc. (50%). Placer Dome Inc. has an exploration agreement with Kenrich Mining Corporation and Ambergate Exploration Inc. to carry out a property evaluation on the Cumberland ground.

2. SUMMARY

A property evaluation on the Cumberland Property was carried out during September 1991 by personnel and contractors of Placer Dome Explorations Ltd. This program consisted of surveying and cutting 1.65 line km of baseline and 4.7 line km of crosslines. This grid was geologically mapped at a scale of 1:2500, the Star showing at a scale of 1: 150 and the adit at a scale of 1: 100. The core from the 1987 diamond drilling program, which is stored at the Star showing, was re-examined. Additionally. a total of 25 rock samples were collected and analyzed by ICP for 28 elements. The grid was soil sampled at 20 metre intervals for a total of 218 soil samples. The samples were analyzed by ICP for 28 elements and assayed for gold. The grid was also surveyed by magnetometer and VLF-EM on 10 metre stations.

The geological mapping shows that the Cumberland is underlain by Betty Creek Formation andesitic pillow lavas and pillow breccias with minor greywacke, shale and pebble conglomerate interbeds. The mineralization at the Star showing is a gold enriched Kuroko type volcanogenic massive sulphide. The mapping of the main showing and reexamination of the drill core indicated that the massive sulphide is a sliver of mineralization that has been faulted off from the main body which is most likely located to the north and slightly west of the Star showing.

The soil sampling, indicates that the sedimentary sequences are anomalous in gold and possibly in silver, copper, lead, zinc and arsenic. The alteration zones associated with the faults and quartz carbonate veining are anomalous in silver, copper, lead, zinc and arsenic.

The magnetometer survey outlined a magnetite bearing unit, while the VLF-EM survey indicates numerous subparallel conductors which may be normal faults.

The bulk stream sediments collected north of Sulphurets Creek indicate that the sedimentary sequence mapped by Alldrick (1989) may be anomalous in gold.

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3. RECOMMENDATIONS

The main recommendation for the property is that the area north of Sulphurets Creek and the area surrounding the grid be mapped at a scale of I:5000 along with detailed stream sediment sampling and reconnaissance rock sampling. The purpose of this would be to provide a strong base for determining areas of good potential for hosting Eskay Creek type deposits.

4. PROPER-IY DEFINITION

4.1 Location, Access and Topography

The Cumberland property is located on the north slope of Mt. Madge, on the south side of Sulphurets Creek (approx. 56” 27’ N latitude and 130” 25’ W longitude; NTS 1048 9). The property is approximately 70 kilometres north of Stewart, B.C. and 12 kilometres east of the Kerr property (see figures 1 & 2).

Access to the property is by helicopter from Stewart B.C. (70 kms), or from Bell II (45 kms) or Bob Quinn (65 kms), both located on the Stewart Cassiar Highway.

During the 1991 program, the project was mobilized from and demobilized to the Tide Lake Strip at the end of the Granduc road (45 kms north of Stewart B.C.). The Kerr camp was utilized as the base of operations, with the crew flying into the property via helicopter.

4.2 Mineral Claims

The Cumberland property as referred to in this report consists of 5 reverted crown grants and 16 modified grid claims (table 1) (figure 2).

4.3 History

The Cumberland property was initially staked in 1898 by H.W. Ketchum. who subsequently sold the property to the Unuk River Mining and Dredging Company in 1900. This company carried out some initial development work including driving two short adits, however when the construction of a wagon trail up the Unuk River and concurrent transportation of machinery failed, the operations ceased.

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TABLE 1

Record # Claim/Crown Grant Area/Units ‘Anniversarv Date

5473 Cumberland L265 13.86 ha August 1, 1994 5474 Silver Pine L266 15.97 ha August 1, 1994 5475 Middlesex L267 20.85 ha August 1, 1994 5476 Ziphis L268 11.63 ha August 1, 1994 5477 Ougma L269 12.98 ha August 1, 1994 5880 Corey 15 16 units February 11, 1993 5885 Corey 20 16 units February 11, 1993 5886 Corey 21 4 units February 11, 1993 5887 Corey 22 4 units February 11, 1993 5888 Corey 23 16 units February 11, 1993 5890 Corey 25 4 units February 11, 1993 5891 Corey 26 4 units February 11, 1993 5893 Corey 28 16 units February 11, 1993 5894 Corey 29 8 units February 11, 1993 5895 Corey 30 8 units February 11, 1993 5896 Corey 31 16 units February 11, 1993 5898 Corey 33 20 units February 11, 1993 5899 Corey 34 20 units February 11, 1993 5900 Corey 35 20 units February 11, 1993 9016 Ginger 1 20 units June 26, 1993 9017 Ginger 2 20 units June 26, 1993

l if all assessment credits accepted

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The Cumberland claims were acquired by G. Olmstead in a tax sale in 1931. There is no recorded work~on the claims until 1980 when Dupont and E & 6 Explorations Ltd. undertook some regional exploration in the area.

Kenrich Mining Corp. and Ambergate Explorations Inc. carried out a soil and rock geochemical survey and stream sediment sampling and a diamond drilling program during 1987.

4.4 Work Completed

The work program consisted of surveying a 1.65 line kilometre baseline with a brunton compass and break chaining 4.7 line kilometres of crosslines (IO crosslines). All lines were cut with a chainsaw.

The core from the 1987 diamond drilling program was located and relogged, with one sample from hole BH-1 being collected.

The entire grid was geologically mapped at a scale of 1:2500 and the main workings were mapped at scales of 1: 150 and 1: 100 (figure 4).

A total of 25 rock samples were collected and analyzed for 28 elements using ICP and assayed for gold.

The crosslines of the grid were soil sampled at 20 metre intervals for a total of 218 samples. All samples were analyzed by ICP for 28 elements and assayed for gold.

The crosslines of the grid were surveyed on 10 metre intervals by magnetometer and VLF-EM.

A reconnaissance stream sediment sampling program consisting of 11 bulk sediment and 11 silt sediment samples was also carried out.

5. ECONOMIC ASSESSMENT

The economic potential of the Cumberland property is based upon the possibility of the occurrence of an Eskay Creek style Au, Ag, Pb, Zn and Cu deposit.

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The origin of the Eskay Creek deposit has yet to be formally established, however it appears to be a combination of epithermal and volcanogenic massive sulphide types of deposits. The 21 A zone is characterized by a Au, Ag, As, Sb, Hg, Zn, Pb element suite in a rhyolite hosted stockwork, with disseminated sulphides and a vertical geochemical and mineralogical zonation. The 21 B zone is characterized by stratabound massive sulphides, hosted by graphitic argillites underlain by rhyolite. The gold mineralization is associated with a sulphide suite consisting of sphalerite, galena, tetrahedrite and lead-sulfosalts (AD. Ettlinger, 19911. These zones are underlain by brecciated (possibly pseudo brecciation caused by replacement veining) and intensely silicified and phyllosilicate altered volcanic rocks (dacitic to rhyolitic composition ?).

6. REGIONAL GEOLOGY

The Unuk River area geology is comprised of upper Triassic to middle Jurassic mafic to intermediate volcanics (minor felsic) and associated sediments divided into three groups; the upper Triassic Stuhini Group, the lower Jurassic Hazelton Group and the middle Jurassic Bowser Lake Group (figure 3).

The Stuhini Group consists of two facies, the western facies is comprised of a lower sedimentary sequence fchert, limestone, greywacke) overlain by intermediate and mafic volcanic rocks, the eastern facies is comprised of sedimentary rocks interfingering with the intermediate and mafic volcanics.

The Hazelton Group is comprised of the Unuk River Formation, the Betty Creek formation, the Mount Dillworth Formation all of lower Jurassic age and the Salmon River Formation of lower and middle Jurassic age. The Unuk River Formation is comprised of andesitic volcanic breccia and lava in the eastern lskut River area which grades into a sedimentary unit fsiliceous siltstone with minor pebble conglomerate and greywacke}. Conformably overlying the Unuk River Formation, the Betty Creek Formation is comprised of maroon to green volcanic siltstone, greywacke, conglomerate, breccia and rare lava, all with anastomosing ferruginous or jasperoid veins. The Mount Dillworth Formation is comprised of felsic tuff, tuff breccia and dust tuff which are in part welded. The Mount Dillworth Formation is the most extensive marker within the Hazelton Group. The Salmon River Formation is comprised of two members; the lower member consists of fossiliferous, calcareous greywacke which forms a 60 to 100 cm thick unit while the upper member is divided into three facies. These facies are the Troy Ridge, Eskay Creek and Snippaker Mountain. The Troy Ridge facies is comprised of cherty radiolarian-bearing shale and reworked tuff of possible turbidite origin.

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The Eskay Creek facies consists of limestone, siltstone and shale interfingering with and overlying pillow lava and pillow lava breccia. The Snippaker Mountain facies is comprised of andesitic lavas and breccia overlying sandy limestone, limey conglomerate and limey sandstone.

The Bowser Lake Group conformably overlies the Hazelton Group and in places is in a gradational contact with the Salmon River formation. This group consists of a sedimentary package made up of greywacke, shale and chert pebble conglomerate.

The sedimentary volcanic sequence in the Unuk River area has been intruded by a series of plutons, sills and dyke swarms of Late Triassic to Early Tertiary in age and varied compositions. The oldest intrusive is the Late Triassic Bucke Glacier pluton (foliated to gneissic hornblende-biotite quartz diorite) located immediately west of the South Unuk River. Upper Triassic to middle Jurassic dioritic to gabbroic stocks, up 20 square kilometres, outcrop north of McQuillan Ridge {Max piuton), at Johns Peak, Nickel Mtn. and Melville Glacier. The Jurassic, granodiorite to syenite, Lehto batholith outcrops in the northwest portion of the Unuk area. To the south of the Cumberland property, the hornblende-biotite quartz monzonite Lee Brant stock of early Tertiary age covers 40 square kilometres. The southwest portion of the Unuk River area is intruded by the biotite-hornblende quartz diorite to biotite diorite of the early Tertiary Coast Plutonic Complex . The early Tertiary King Creek dyke swarm of rhyodacitic to andesitic composition trends northerly from Canyon Creek to north of Cone Glacier.

The faults in the area are mainly mesoscopic normal faults with minor offsets and some reverse faults which have been inferred from the study of repeated stratigraphic sections. A major north northwest trending normal fault follows the east side of the South Unuk River and north along Harrymel Creek. This normal fault is mainly marked by schistose rock fabrics and has a northeast to vertical dip and has moved the northeast side down. A set of anticline-syncline pairs between Harrymel Creek and Storie Creek has been interpreted on the basis of lithological correlations.

The entire area has a metamorphic grade of lower greenschist facies with higher metamorphic grades (to lower amphibolite facies, and hornfels) around plutons and stocks.

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7. PROPERTY GEOLOGY

The Cumberland property is underlain by a massive sequence of hornblende and/or plagioclase andesitic pillow lava and pillow lava breccias of the Betty Creek formation, with minor interbeds of greywacke, shale and pebble conglomerate (figure 4).

7.1 Rock Types

7.1.1 Unit 1

Unit 1 is comprised of a medium to dark green hornblende and/or plagioclase subporphyritic andesitic pillow lavas and pillow lava breccia. All (100%) of the hornblende crystals have been chloritized; the degree of chloritization decreasing to the south along the grid to approximately half (50%). The pillows are poorly developed and are only discernable on subvertical faces and indicate that the rocks are right way up. The lavas have an overall agglomeritic texture with the fragments varying from 0.05 to 1.5 metres in size, the largest being partly deformed pillows.

Several small, fine grained, buff coloured dacitic flows and/or tuffs with minor quartz eyes and less than 0.5% disseminated pyrite were found interlayered with the pillow lavas.

The main Cumberland showing occurs within this unit and consists of a massive sulphide and is fully described in section 8 (Star showing).

7.1.2 Unit 2

A dark blue black, fine grained, magnetic andesite flow with minor magnetite crystals (I-3 mm) was noted. Throughout this unit are abundant anastomosing quartz calcite veinlets and veins (1 mm to Icm in width) with jasperoid throughout. Minor hornblende crystals (0.5 to 1.5 mm) were noted and all (100%) had been chloritized. This unit has a true thickness of 25 to 40 metres.

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7.1.3 Unit 3

Unit 3 is comprised of a pale green, calcareous andesite fragmental with angular fragments ranging from 0.1 to 10 cm in size. The fragments consist of light to dark green hornblende, or plagioclase subporphyritic andesite. Many of the fragments have been moderately silicified and are generally a lighter green in colour. All (100%) of the hornblende crystals have been chloritized. The matrix consists of a dark bluish black very fine grained material which is in part calcareous and shows coarse foliation conforming to the shape of the fragments. The fragments are in part cast supported and in part matrix supported.

7.1.4 Unit 4

Unit 4 is comprised of a dark brown to blue black volcanic greywacke grading to shale in places, with disseminated pyrite and pyrite fracture coatings occurring in portions of the unit. The disseminated pyrite is fine grained and wispy with very minor small crystals.

7.1.5 Unit 5

Unit 5 is comprised of a medium brown to black quart.?, plagioclase, chert pebble conglomerate with a dark blue black

fine grained to wacke matrix, calcareous in part.

7.2 Structural Geology

The bedding on the property trends northerly to slightly west of north with a moderately steep (approx. 60 “) westerly dip. The bedding was determined from evauluating the drill hole sections (figures 5 to 8) and measurements on the the greywacke beds.

Numerous normal faults have been deduced from geological mapping and interpretation of the geophysical datatfigures 4 & 17). All faults found on the property are normal faults with two major trends, one is north northwest and parallels the main Unuk River fault system and the other has a northwest trend approximately at 30’ to the main trend, with all faults generally having steep westerly dips.

There were no folds at any scale noted on the property.

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7.3 Alteration

Alteration on the property is limited to the almost pervasive alteration of the hornblende in unit 1, to chlorite. Adjacent to the faults and fault junctions, there is pervasive silicification, minor argillic alteration and quartz veining. The alteration at fault junctions is shown as unit la on figure 4. The silicification gives the rocks of unit 1 a sugary texture and a pale green colour.

7.4 Mineralization

There are three principal types of mineralization on the property:

1) Disseminated pyrite and pyrite fracture coatings are associated with the greywackes and shales. Two grab samples were taken of this material, one at BL8000E S6270N U33381) and one at L6600N S7810E (B3390), both of which returned very low results (see table 2, appendix B and figure 4).

2) Pyrite, sphalerite and minor galena occurs in some of the quartz carbonate veins associated with the alteration at fault junctions and along some fault traces. This style of mineralization is most prevalent between L63N and L61 N at 7930E. Two samples were collected in this area (83399, B3400 selected material). Analysis of the samples ran 30 and 110 ppm silver, 56 ppm and 0.39% lead, 1514 and 1344 ppm zinc respectively (see table 2, appendix B and figure 4). The second area of mineralization is located at the Star showing from which sampling returned <5 to 2320 ppb gold, 0.2 to 93 ppm silver, 40 to 2328 ppm copper, 26 ppm to 0.53Ok, lead and 206 ppm to 1 .13% zinc (see table 2, appendix B and figure 4). Sample 83394 returned significantly higher values than the other samples as a result of being adjacent to the massive sulphide mineralization.

3) Two thin sections from the massive sulphide occurrence at the adit were described by L. A. Clark (see appendix A}. The conclusions of this study were that the mineralization is typical of Japanese Kuroko-type massive sulphides. The massive sulphides are comprised of sphalerite, barite, pyrite, chalcopyrite and galena. enriched in gold (up to 6.45 ppm) and silver (up to 245 ppm).

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03378 Z&0 below 03376: 4% diss. py +- po, I Grab I 20 I 5.0 I 65 I 632 I 1209

03379 Left hsnj side of adit; shesred sericitic at&site I 1.5~1 chip 5.50 ppn 245.0 0.9bx 3.10% 16.1% nsssive sulphide (sph. gal. w. cpy 8 berite), nanpIe extmisve Fe oxide staining; lb

adjacent to 83379; 10-15X diss., frsct. coatlna 8 WI I.&II chip 1070 33.0 2328 0.53% 3.71% sulphides; la senple

BLBOOOE S627011; slliclfiffl siltstonelarg I diss. Grab r5 1.0 44 74 410 py 1-2X; pyrite fract. coating .% some xtelline py

03382

03383

L79bOE S620511; silicified & in part brecciated greyish Grab 6 0.2 40 26 206 uhite at&site I miner qtr stockwork B <0.5X py ; ,a

ad]eeent to 83380; la l.Om chip 185 20.0 766 0.27x 1.13%

03384 1.5m southwest of 83383: la I 0.5m chip I 125 I 20.0 I 635 I 1305 I. 1525

1.511 below B3377; slllclfled endesite I 5% diss 8

83391 Lb575N S7780E; lithic fragmental tuff I C?% diss p, in Grab I S5 I 0.1 I 13 125

83392 I face 0f adft; sfllcified andesite; la 1 1.21~ chip 1 140 1 4.1 1 55 ( 390 ) 481

Left hami ual

right hard uell of edit at entrance; 1

7.4.1 Star Showing

The Star showing is located at BL8000E, L6600N and exposed in several trenches and a adit (figure 4). The main showing consists of a conformable massive sulphide bed within unit 1, underlain by a silicified and partly argillitized unit 1 with numerous quartz-calcite veins and associated minor pyrite, chalcopyrite, sphalerite and galena.

The massive sulphide was petrographically described by L.A. Clark as a typical Japanese Kuroko-type (see appendix A).

As determined by diamond drilling and measurements in the adit (figures 5 to 8 and Appendix C), the massive sulphide bed has a true thickness of between 2.5 and 4 metres. The body is approximately 3 metres long and truncated by two normal faults trending northwest with steep north easterly dips. These two faults are themselves truncated and offset by normal faults trending north-northeast with a steep easterly dip. The direction of the offsets indicate that the remainder of the massive sulphide lies to the north-northwest, most likely north of Sulphurets Creek.

A total of three samples were collected from the massive sulphides, two from the adit (83379, B3395) and one from ddh BHl (B3398)(figure 4 & 6). Eleven samples were collected from the altered host rock, unit la, in the immediate area (83376-78, 83380, 83, 84, 86, 87 & 92-94) and four samples from the unaltered host rock, unit 1 (83385, 88, 89 & 96). The three massive sulphide samples indicate that there is significant gold and silver enrichment (5.5, 1.66 & 6.45 ppm gold, 245, 96 & 172 ppm silver} along with the base metals (up to 0.96% copper, 3.53% lead and 22.5% zinc). The sampling of unit la (altered unit 1) shows that the “footwall” has good mineralization (up to 1.22 ppm gold, 37 ppm silver, 0.53% lead and 3.71% zinc). The sampling of the unaltered host rock returned only very minor values.

9. GEOCHEMICAL SURVEYS

Three types of geochemical surveys were conducted on the property. A soil and rock geochemical survey was conducted over the grid. The area north of Sulphurets Creek was surveyed by bulk sediment stream samples.

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9.1 Soil Sampling

A total of 218 soil samples were collected on the Cumberland grid.

9.1.1 Soil Development, terrain, vegetation

The soil grid is located in relatively steep terrain above the Sulphurets Creek Canyon. The vegetation ranges from subal- pine meadows to densely forested with spruce, hemlock, cedar and balsam, plus minor slide alder and devils club as the main floral varieties.

The soil development is poor at lower elevations, consisting mainly of organic rich A and B horizons, leached A2 horizon or in some cases leached overlying rubble. There are small pockets of clay rich brownish Bl horizon along the benches and along the creeks. At higher elevations, (L61 N to L50N) a very good reddish brown loamy 82 horizon is developed inter- spersed with organic rich areas, generally located in depress- ions near creeks and ponds.

9.1.2 Sampling Procedure

The soil samples were collected using a shovel, digging down to the B horizon where applicable, generally 30 to 60 centi- metres. The samples were then placed in kraft envelopes marked with the station number. The samples were dried and then shipped to the Placer Dome Research Centre in Vancouver for analysis. A description of the analytical tech- nique is discussed in section 10.

9.1.3 Treatment and Presentation of Results

The analysis results are listed in appendix B and the gold (both fractions), silver, copper, lead, zinc and arsenic are presented as posted values on individual maps (figures 9 to 15).

9.1.4 Discussion of Results

The fine fraction gold results show a rough correlation to the sedimentary sequences. This is seen in the elevated gold values at the west end of lines 52N and 54N (up to 160 & 30 ppb gold respectively) and also along lines 63N and 66N (35 &

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55 ppb gold respectively). The scattered, elevated gold results throughout the remainder of the grid may be either reflecting downhill and stream dispersion or reflecting unmapped sedimentary sequences and/or faults.

The coarse fraction gold results show only slightly elevated results along line 50N (up to 40 ppb gold), indicating a possible gold source lying further up Mt. Madge to the south of the grid.

The silver results also show a very slight association with the sedimentary sequences (up to 7.0 ppm silver). The main silver association is with the alteration zones (unit la) and fault junctions, especially below the main alteration zone south of line 63N (up to 172 ppm silver).

The copper, lead, zinc and arsenic results show a similar association as that of silver, with the highest results being at line 63N station 7940E (138, 780, 729 and 182 ppm respectively).

9.1.5 Interpretation of Results

The soil geochemical results for silver, copper, lead, zinc and arsenic show a good correlation with the alteration and sulphide bearing quartz-carbonate veins associated with the faults and fault junctions.

The fine fraction gold results show a rough correlation with the sedimentary sequences along with a slight correlation by silver, copper and zinc. This correlation suggests a distal massive sulphide hosted within the sedimentary sequence.

The coarse fraction gold results are inconclusive.

9.2 Rock Sampling

A total of 25 rock samples were collected on the Cumberland property. Eighteen rock samples were collected from the area of the main showing, three from the massive sulphide (unit 1 b), eleven from the altered host rock (unit lal and four from the unaltered host rock (unit 1). Two samples were collected from unit 4, three from unit la, one

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from unit 1 and one from unit 3 in different areas of the Cumberland grid.


All rock samples (either grab or rough channel) were collected using a rock hammer, and then placed in a plastic sample bag. A description of the analytical techniques is discussed in section 10.


The results show that the massive sulphide material has been enriched in gold and silver (5.5, 1.66 & 6.45 ppm gold and 245, 96 & 172 ppm silver)(Table 2 and figure 4). The underlying altered volcanics (unit la) also show an enrichment of gold, silver, copper, lead and zinc (sample B3394; 9.4 ppm Au, 93ppm silver, 0.45% copper, 2.7% lead and 9.8% zinc) which decreases with distance from the massive sulphide horizon.

The results of sampling the altered volcanic (unit la) show an elevated silver, copper, lead and zinc content with sporadic elevated gold values (up to 2.32 ppm Au, 110 ppm Ag, 2328 ppm Cu, 0.39% Pb and 1.13% Zn).

9.3 Bulk Stream Sediment Sampling

Eleven bulk stream sediment samples and associated stream silt samples were collected from the area immediately north of Sulphurets Creek and east of the Unuk River (figure 15).


The samples were collected from sites in the creek bed which favour placer enrichment. A 2 to 3 kg sample was sieved to a -10 mesh size on site and placed in a plastic sample bag and shipped to the Placer Dome Research Centre in Vancouver, B.C. An additional regular stream silt sample was also collected at each site. A description of the analytical techniques is discussed in section 10.


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Four of the 11 bulk stream sediments collected returned anomalous gold results (82331 25 ppb Au, B2337 130 & 25 ppb Au, B7788 20 ppb Au, 87790 30 & 215 ppb Au and 87792 20 ppb Au). There is a slight copper and zinc anomaly associated with the gold results (82337-100 ppm Cu & 248 ppm Zn; 87788-86 ppm Cu & 146 ppm Zn; 87790-81 ppm Cu & 577 ppm Zn).

9.3.3 Interpretation of Results

The gold anomalies lie along a trend of interbedded siltstone, shale, argillite and andesitic pillow lavas and breccia as well as minor underlying dacitic tuffs. This may indicates the presence of anomalous gold within the sedimentary sequences similar to the geochemical signature in the soils.

10. SAMPLE PREPARATION AND ANALYTICAL PROCEDURE

10.1 Standard ICP Geochem Package Method

A 0.5 gram portion of the -80 mesh soil, sediment or -100 mesh pulverized rock is placed in numbered test tubes. Approximately every tenth sample is a duplicate or internal reference standard. Four ml of Aqua regia is added to the sample 12 hours before digestion for 2 hours at 95’ C. The sample is cooled and brought up to the 10 ml mark with H,O and then centrifuged. A 3 ml aliquot of the sample solution is taken and placed in an autosampler tube and 4.5 ml of H,O is added. The sample is analyzed on a Leeman Labs Inductively Coupled Plasma model PS 3000 using matrix matched calibration standards. Silver only is determined by Atomic Absorption using a Perkin Elmer model 3100 AA, analyzing the original sample solution. Background correction is used for this determination.

10.2 Geochem Gold Tests

A 10 gram sample is put into a Coors 07 crucible and heated in a muffle furnace for 4 hours at 600” C. The sample is cooled and transferred to a glass beaker and 30 ml Aqua Regia is added. The sample is digested at just off the boil for 2 hours and then cooled and bulked up to 110 ml and left to settle overnight. Fifty ml of the sample is decanted into a screw cap test tube and 7.0 ml MIBK is added and the tube is turned upside down at least 25 times. The gold

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10.3 Bulk Stream Sediment Analysis

The 2 to 3 kg sample is sieved to -150 mesh and the mesh fraction is analyzed by standard ICP method. For gold analysis, the -150 mesh fraction is cut 3 times and analyzed by the standard geochem gold tests.

11. GEOPHYSICAL SURVEYS

Scott Geophysics Ltd. conducted a magnetometer and VLF-EM survey over the Cumberland grid, with readings taken every 10 metres. The station used for the VLF-EM survey was NAA (Cutler) at 24.0 kHz (see appendix D).

The magnetometer survey outlined unit 2 as a striking magnetic high in a relatively flat background (figure 16).

The VLF-EM survey outlined numerous subparrallel conductive structures, interpreted as potential normal faults (figure 17).

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12. STATEMENT OF COSTS

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Linecuttina:

Contractor: 15 crewdays @ $500/day $ 7,500 Helicopter: 6.8 hrs @ $550/hour s 3,740 Logistics : $ 7,280

Total: $18.520

Geoloav:

D.J.B. Services Ltd.: 15 days @ $225/day $ 3,375 Helicopter: 7.2 hrs @ $550/hour S 3,960 Data Acquisition: s 130 Lab: 25 rocks @ $13.25/sample s 331

(prop $3.25, ICP $5, Au by AA $5) Logistics : $ 2,940

Total: $10,736

Geoohvsics:

MagNLF: 4.7km @ $120/km Helicopter: 1.5hrs @ $550/hr Logistics :

Total:

S 560 $ 825 s 450 S 1,835

Geochemistrv:

D.J.B. Services Ltd.: 2 days @ $225/day $ 450

Salaries: G. Couture: 2 days @ $160/day S. Hill : 2 days @ $150/day C. Green : 2 days @ $150/day S. Edwards: 2 days @ $150/day

S 320 s 300 s 300 s 300

Helicopters: 4.2 hrs @ $550/hr Freight:

S 2,310 s 90

Lab: fine fraction: 218 soil samples @ $10.90/sample

(prep $0.90, ICP $5, Au by AA $5) a 2,376 coarse fraction: 218 samples @ $S/sample $ 1,090

r

25

r

.

r Logistics :

Bulk Stream Sediment Samolina:

Total: $ 1,806 $ 9,342

D.J.B. Services Ltd.: 1 day @ $225/day $ 225

Salaries: S. Ebert : 1 days @ $160/day G. Couture: 1 days @ $160/day C. Green : 1 days @ $150lday

$ 160 $ 160 $ 150

Helicopter: 1.98 hrs @ S550/hr $ 1,089 Freight: $ 90

Lab: stream silts: 1 1 samples @ $10,90/sample S 120

(prep $0.90, ICP $5, Au by AA $5) bulk sediments: 11 samples @ $17/sample $ 187

Total: $ 3,083

Grand Total:

26

13. CONCLUSIONS

The Cumberland property is underlain by andesitic pillow lavas and breccias with interbedded minor shale, greywackes and pebble conglomerates of the Betty Creek formation of the Hazelton Group.

The Star showing is a Kuroko type massive sulphide, enriched in gold and possibly faulted off from a larger body which may be located to the north and possibly slightly to the west.

The soil geochemistry and bulk stream sediment sampling indicate that the sedimentary sequences on the property are anomalous in gold. This shows a potential for a Eskay Creek type deposit occurring within the area.

The magnetometer is a useful tool for delineating unit 2 rocks, while the VLF-EM is useful for delineating possible normal faults.

27

14. LIST OF REFERENCES

Alldrick, D.J.; 1988: Geology and Mineral Deposits of the Sulphurets Area. 8CDM Open File Map 1988-4.

Alldrick, D.J.; 1984: Geological Setting of the Precious Metal Deposits in the Stewart Area. BCDM Geological Fieldwork 1983, Paper 1984-1, pp 149-163.

Anderson, R.G.; 1991: Mesozoic stratigraphy and setting for some mineral deposits in lskut River map area, northwestern British Columbia. GSC Paper 90-IE, pp 131-139.

Britton, J.M.; 1989: Geology and Mineral Deposits of the Unuk Area. BCDM Open File Map 1989-10.

Britton, J.M., Blackwell, J.D., Schroeter, T.G.; 1990: #21 Zone Deposits, Eskay Creek, Northwestern British Columbia. BCDM Exploration in British Columbia 1989, pp 241-250.

Croome, N.C.; 1990: Kenrich Mining Corp., Sul 1, Sul 2 and Unuk 20 claims, Sulphurets Creek Area, Skeena Mining Division, B.C. Assessment Report.

Croome, N.C.; 1991: Kenrich Mining Corp. and Ambergate Explorations Inc., Mineral Claims Grouping Sulphurets Creek - Unuk River Area, Skeena Mining Division, B.C. Assessment Report.

Ettlinger, A.D.; 1991 : A marriage of Geological Processes: An Epithermal Massive Sulphide Origin for Eskay Creek? The lskut Telegraph, Dee 16, 91, Volume 2(2)

Grove, E.W.; 1971: Geology and Mineral Deposits of the Stewart Area, Northwestern B.C. BCDM Bulletin 58.

Grove, E.W.; 1983: Geology and Mineral Deposits of the Unuk River - Salmon River - Anyox Map Area. BCDM Bulletin 63.

28

Home. E.; 1987: Assessment Report on Reverted Crown Grants Lots 265, 266, 267, 268, 269 Sulphurets Creek, NTS 10488, Skeena Mining Division, B.C.

Horne, E.; 1987: Drill Report, Cumberland Group, Mt. Madge Project, Sulphurets Creek Area, NTS 10488, Skeena Mining Division, B.C. Assessment Report.

Kruchkowski, E.R.; 1990: Summary report of Mt. Madge property, Stewart, B.C., Skeena Mining Division, NTS 104B8W. Internal Report, Bighorn Development Corp.

29

r

. 15. STATEMENT OF QUALIFICATIONS

,-

. I DOUGLAS J. BROWNLEE, of 47 12th Ave, Whitehorse Yukon, hereby certify that:

J 1. I am a graduate of the University of Alberta with a BSc Specializ- ation in Geology (1980).

2. I have practised my profession since January, 1980.

3. I am Professional Geologist registered with the Association of Professional Engineers, Geologist and Geophysicists of Alberta since 1987.

30

r

.

APPENDIX A

PETROGRAPHIC REPORT

Soecimen No. 904x-l .

Location: Cumberland Showing, Northwestern B.C.

Fine grained, medium brownish grey colour due to abundant fine grained sphalerite. The specimen is well laminated on 0.5-3 mm scale in one direction (see PTS-B) but perpendicular section (PTS-A) shows only crude compositional layering and some indistinct sulphide clots. This is interpreted as roding of variable composition material along one axis due to tectonic deformation. Some layers are rich in very fine grained pyrite. Minor very fine grained blue copper mineral is visible in some layers.

Petroaraohv of oolished thin section 90-BC-1A

Microtexture: Compositional layering is indistinct except for one 3-5 mm band with diffuse margins which contains about equal amounts of pyrite and barite. Barite is finely disseminated through sphalerite-rich parts of the section and also as almost monomineralic 0.5-2 mm clots (fragments?). Sphalerite occurs in sometimes lenticular patches 2-5 mm wide by 5-8 mm long bearing < 10% disseminated barite and no pyrite. Pyrite and sparse chalcopyrite may also occur in 2-3 mm patches. These are suggestive of original sulphide fragments or clasts. Pyrite is metamorphically recrystallized to subhedral due forms usually CO.5 mm but rarely to 0.7 mm.

Mineraloov:

Sphalerite 40 % Mostly a very fine grained polycrystalline mass with only sparse rounded, fractured grains up to 50 micrometres (urn). Some areas up to lmm that may have been single grains are now polycrystalline due to deformation? Sphalerite does not seem to have recrystallized like the pyrite.

Pyrite 25 Occurs mostly as well crystallized 10 urn to 0.5 mm subhedral grains well with only sparse minorinclusions of all other minerals. One 0.4 x 0.5 mm ovoid area preserves relict rounded framboidal or colloform texture with 15% intergrown chalcopyrite.

Barite 32 Colorless, faint cleavages at nearly 90 degrees, grains are very irregular perhaps due to recrystallization and they

r never show the tabular crystals typical of barite. Birefrin- gence and extinction show faint very fine checkerboard pattern (PTS is probably thicker than normal), biaxial +ve.

Chalcopyrite 2

Galena

Gahnitel?)

Apatite(?)

1

Tr

Tr

Only occurs disseminate 2-15% in 3.5 mm wide band that otherwise is not distinctive from rest of slide. A similar chalcopyrite concentration occurs in another 3 x 5 mm area of mostly barite.

As irregular 1 O-50 urn intergrowths with other minerals.

Occurs as rare lo-75 urn inclusions in sphalerite; is isotropic, hardness similar to sphalerite, lighter grey in reflected light, opaque in transmitted light - it may be the Zn-spinel, gahnite. It might be bornite but doesn’t have the typical pinkish colour.

Rare 25-50 urn grains with high relief; identification uncertain - appears to be polycrystalline unlike typical apatite grains in rocks.

Petrooraohv of PTS 90-BC-16: (is cut from same specimen at right angles to 90- BC-1A)

Microtexture: Very distinct bands of almost monomineralic sphalerite l-3 mm wide running the 3 cm length of the section. Again most of the pyrite is concentrated in one 4 mm band. Barite is disseminated in other phases and as essentially monomineralic tenses from 0.5 x 2 mm to 3 x 20 mm in size.

Mineraloav:

Sphalerite 50% Similar to above description

Pyrite 17

Chalcopyrite 1

Galena 1

Gahnitet?) 1

Covellite Tr

I I I I I , I I

Mostly occurs as l-B% dissemination in one large area of barite.

Occurs disseminated 2-3 % in some sphalerite-rich bands and not in other bands. Also occurs with pyrite-chalcopyrite-barite patches.

Occurs as approx. 2-5% dissemination in some sphalerite-rich bands but none in other sphalerite areas.

Occurs as irregular 10 urn clots in barite and as thin films on some sphalerite-probably is supergene.

Conclusions: This is interpreted as volcanogenic massive sulphide mineralization with a relatively high degree of probability. The mineralogy is typical of Japanese kuroko-type deposits. Although the specimen is moderately deformed, sphalerite has taken up most of the deformation. Some of the lenticular shapes of barite are probably also due to deformation stretching of fragments or boudinage of more barite-rich beds? Chalcopyrite, and to some degree galena and pyrite, are concentrated in barite-rich lenses that may have been discrete volcanic ore fragments. Some almost monomineralic bands and lenses of sphalerite are probably stretched ore fragments. One 3-5 mm pyrite- rich band may have been a pyrite-rich bed? It is entirely recrystallized by weak metamorphism. Only one 0.4 x 0.5 mm pyrite-rich ovoid shaped area preserves relict banding of probable framboidal, or possibly colloform, origin.

The same mineralogy could occur as vein-type mineralization, but there are no relicts of such textures whereas various relicts are interpreted as volcanogenic massive sulphide-type.

No gold, and surprisingly, no quartz were observed in these two polished thin sections. A portion of the specimen should be analyzed by ICP for barium to be absolutely sure about the barite identification, and also for strontium, as barite forms a complete solid solution series with celestite.

If this specimen is representative of an orebody, such body will be very stretched in one axis parallel to the direction of deformation glide which should parallel mineral lineations in surrounding metamorphosed rocks.

L. A. Clark December 3, 1991

APPENDIX B

SAMPLE ANALYSIS RESULTS

APPENDIX C

SIMPLIFIED DIAMOND DRILL HOLE LOGS

SIMPLIFIED DIAMOND DRILL HOLE LOGS

This simplification of the 1987 drill core is condensed from personal inspection of the core and the original logs as reproduced in Horne (1987).

BH 1:

0 to 26.2m

26.2 to 28.0m

28.0 to 33.2m

Depth: 126.8m Azimuth: 0700 Dip: 44.5O

Unit 1

Unit 1 b; massive barite I sulphides (sample 83398)

Unit 1 b & Unit 1; brecciated unit 1 (la?) with a barite +/- sulphides matrix

33.2 to 75.2m

75.2 to 106.lm

106.1 to 126.8m

Unit 1 / Unit la; unit contains plagioclase phenocrysts grading to chloritized hornblende phenocrysts at end of section; 55.1 to 58.5m contains a number of qtz veins and a 2 to 4 cm chert bed @ 55m (Home sample)

Unit 2; 82.6 to 83.5m comprised of vns I minor sulphides (Home sample)

Unit 1

BH 2:

0 to 54.9m

54.9 to 103.3

Depth: 103.3m Azimuth: 070” Dip: 60”

Unit 1; 34.2 to 36.6m broken core with sulphides assoc. with veining (Home sample)

Unit 2; 76.2 to 78.9m sheared/fault zone, unit I?; 92.7 to 94.2m broken core I trace sulphides (Home sample)

BH 3: Depth: 140m

0 to 70m Unit 1

70 to 104m Unit 2

104 to 140m Unit 1

Azimuth: 070” Dip: 75”

.

. BH 4:

0 to 43.5m L

7 43.5 to 72.8m

BH 5:

0 to 51.8m

51.8 to 63.7m

BH 6:

0 to 77.7m

Depth: 72.8m

Unit 1

Unit 2


Depth: 63.5m

Unit 1

Unit 2


Depth: 85m Azimuth: 081” Dip: 46”

Unit 1; @ 46m trace jasper in qtz veining & @ 50m silicified breccia zone; 25 to 26.2m qt.? vns I copper stain, 37.3 to 39m qtz vns / IO-15% chalcopyrite, 44.8 to 45.6m fragments with pyrrhotite and barite (all Horne samples)

All Horne samples noted above are plotted on figures 6, 7 & 8

APPENDIX D

GEOPHYSICAL REPORT

, t f C c f I: f f c C C c I: C C C

-

CIJMBERLQJD PROPERTY

STEWRT X-E&, BRITISH CULIIMBIA

PLXEYR LxlME EXPILNATION LIMITED 1500 - 1055 Dunsmuir st.reet

Vancouver, B.C. v7x 1Pl

Field work rmn~leted: September 21-22, 1991

plan Scott, Geophysicist SMYIT GEWHYSICS LTD. 4013 Nest 14th menue

varlcouwer, B.C. V6R 2x3

Or:tok!r 1, 1991

maps reduced 64%

1. INlRoDucrIo~

faqnetometer and VLF surveys were conducted over portions of the Cumherland Property, Stewart Area, B.C., on Sept&r 21 and 22, 1991. The work was conducted by Scott Geophysics Ltd. on behalf of Placer Daoe Exploration Limited.

Xagneto~ter and VLF readings were taken at 10 neter intervals. Station NAA (Cutler at 24.0 kHz) was used as the transmitter station for the VLF survey.

This report describes the instrumentation and prccedures, and presents the results of the surveys.

2. SURVEY GRID AND SURVEY 'XWEZAGE

A total of 4.7 line kilorwters of swsgnetorwter and VLF survey were ccmpleted on the Cumberland Property.

3 . PEXsoNp;EL

Mark Kachaluba, geophysical technician, was the party chief on the sw-vey . Glen Shevchenko, geclogist, was the Placer Dame representative on site for the survey.

-2-

4. INSTRUMEZNTATION

A Sri~ntrex IGS combined total field magneton&er/VLF receiver was used for the mgnetmwter and VLF survey. A Scintrex MP4 magnetometer was used as the fixed base station magnetmeter. All readings were corrected for diurnal drift with reference to the base station, which cycled at 15 second intervals.

The survey data was archived, prcazessed, and plotted using a Toshiba 3200 microcorqmter running Scintrex IGS, and proprietary software.

6. RlXM%NMTIONS

A preliminary examination of the results of the rmgnetomter and V!LF survq on the Cumbxland Property indicates the presence of weak VLF conductive responses, and a strong magnetic high at the north end of the grid.

A detailed interpretation of these results, and correlation to geological and geochemical information, is required before any speci.fic recomndations could be made.

Respectfully Submitted,

&zggg Alan Scott, Geophysicist

t

C C

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‘C ;f iC jC ;C : c 1C 11: :C C I:

C C

1:

Statement of Qualifications

Alan Scott, Geophysicist

of

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

I, Alan Scott, hereby certify the following statements regarding my qualifications, and my involvement in the program of work described in this repx-t.

1. The wxk was pxfom& by individuals sufficiently trairml and qualified for its performance.

2. I have nc material interest in the property under consideration in this rep&, nor in the cwny on whose behalf the work was prformed.

: . I graduat~1 frvn; the University of British Columbia with .;1 &whrlvr of Science degree (&ophysics) in 1970, and with a Master of Business Administration degree in 1982.

4. I am a nember of the S.C. Geophysical Society and of the Society of Exploration Geophysicists.

5. I have been practicing my profession as a Geophysicist in the field of ?lineral Exploration since 1970.

Respectfully sulxnitted,

i

Alan Scott

C C C’

geological brancr assessment report

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