1982 WORK REPORT. Line Cutting, Geochemistry and Geophysics. on the 82F/15 W. SMD Mining Co. Ltd.

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1 1982 WORK REPORT Line Cutting, Geochemistry and Geophysics on the KAS 1, KAS 2, KAS 3, KAS 4, LO 5 CLAIMS (IMP GROUP) S1 ocan Mining Di vision NTS: 82F/15 W LAT: 49"53'N LONG: 116"56'W Owner & Operator: SMD Mining Co. Ltd. K MINERAL RESOURCES CRANCH David T.M. Chan November 1982

2 SUMMARY 1982 work on the KAS 1, 2, 3, 4 and LO 5 claims (IMP Group) near Kaslo, B.C. involved line cutting, soil geochemical and geophysical surveys. These surveys are follow-up work on an airborne electromagnetic survey done in June The soil geochemical survey identified three zinc anomalies, one on the KAS 4 claim (Grid E), and two on the LO 5 claim (Grid F). All three are monoelement anomalies occurring in areas underlain by Jurassic 2ranitic sills or overburden. The CEM shoot-back system confirmed most of the airborne conductors but none of these conductors has correlation with the soil geochemical anomal i es. No sulphide mineralization was found on the grids and no further work is recommended.

3 TABLE OF CONTENTS Page SUMMARY 1. INTRODUCTION (i) Location and Access (i i ) Physiography (iii) Claim Definition (iv) Previous Work 2. LINE CUTTING 3. GEOLOGY 4. GEOCHEMISTRY 5. GEOPHYSICS 6. GRID SUMMARIES 7. CONCLUSIONS AND RECOMMENDATIONS 8. ITEMIZED COST STATEMENT 9. STATEMENT OF QUALIFICATIONS 10. REFERENCES I LIST OF FIGURES FIGURE 1 FIGURE 2 Location Map Claim Map LIST OF MAPS DRAWING 1 DRAWING 2 DRAWING 3 DRANING 4 DRAWING 5 DRAWING 6 Grid Location (1:lO 000) Grid B (1:5 000) Grid C Grid D Grid E Grid F II I1 I1 I1

4 1. INTRODUCTION (i) Location and Access The IMP Group claims are located on the southeast flank of True Blue Mountain, 6 km southwest of Kaslo, B.C. Access to the claims is via Highway 31 and an all-weather gravel road southwest of Kaslo (Figure 1). (ii ) Physiography The property area lies in extremely rugged alpine terrain of the Selkirk Mountains in southeastern British Columbia. The property topography shows the strong relief characteristics of mountainous terrain in the adolescent stage of erosion. Spruce, hemlock and fir stands, some of commercial value, extend well above the 2,000 m elevation. The southeastern flank of the rnountain was logged during the early 1970's resulting in a thick regrowth of willow and alder. Forest cover is often cut by natural drainage gullies covered by fallen trees and alder/willow brush. These intermittent stream courses and the strong topographic relief are major obstacles to traversing and grid preparation. (iii) Claim Definition The IMP Group consists of KAS 1, KAS 2, KAS 3, KAS 4 and LO 5 claims totalling 40 units and is located in the Slocan Mining Division (Figure 2). The claims are owned by SMD Mining Co. Ltd. Table 1 Claim Record No. Record Date Units KAS September 2, KAS September 2, KAS September 2, KAS September 2, LO September 13, Claims TOTAL 40 units

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6 ,.. q -* i I' I I II \ I \ I I TRUE BLUE YOUNTAll KAS- 2 I KAS- I smd MlNiNG CO. LTD. CLAIM MAP 1-50,000 0 loo rnefrer L 3 PPOJCCT COOPER CREEK mwt BY 0. CHAN SCALI 1:50,000 WIUh ZJ-W. I DATE 1982 I FIG.2

7 - 2 - (iv) Previous Work (Fyles 1967). The region was mapp d by the B.C. D artm t of Mines in 1967 The DIGHEM I1 airborne electromagnetic/resistivity/magnetic surveys were flown in June 1982 over the Kaslo area by DIGHEM Limited of Toronto, Ontario under contract with SMD Mining Co. Ltd. 2. LINE CUTTING Line cutting was undertaken to prepare grids over selected airborne EM conductors to facilitate geochemical, geophysical and geological surveys. Bema Industries personnel cut five new grids (B,C,D,E,F) totalling 12.6 km in August, 1982 (Dwg. 1). Stations were established at 25 m intervals (secant chained) by SMD Mining Co. Ltd. personnel. 3. GEOLOGY The project area lies on the western flank of the Kootenay Arc, a major structural element within the Omineca Belt of the Canadian Cordillera (Sutherland-Brown, et al., 1971). The Kaslo area contains a complexly deformed group of volcanic and sedimentary rocks with age ranging from Lower Cambrian to Triassic. Crystalline rocks of the Lardeau Group, of Lower Cambrian to Lower Devonian age, occur along the west shore of Kootenay Lake. Further west, the Mil ford Group unconformably over1 ies the Lardeau Group. The Milford Group, of Mississippian to Permian age, consists of argillite, limestone, dolomite, quartzite and schist. The Kaslo Group, of Permian or Triassic age, overlies the Milford Group rocks in the project area. The Kaslo Group consists of meta-andesite flows and tuffs, with minor felsic pyroclastic rocks (Wheeler and Read, 1976). Overlying the Kaslo Group rocks, to the west of the project area, are argillite, quartzite, phyllite and andesitic tuffs of the Triassic to Lower Jurassic Slocan Group. I

8 - 3 - Small stocks, dykes and sills related to the Nelson batholith (Jurassic to Cretaceous age) cut rocks of the Lardeau, Milford, Kaslo and Slocan Group. 4. GEOCHEMISTRY Soil samples collected on the claims were analyzed for copper, lead, zinc, silver, gold and arsenic. The results are shown on Drawing 3 to 6 (in map pockets). A total of 575 soil samples were collected by SMD Mining Co. Ltd. personnel on grid lines at 25 m intervals. The samples were collected in kraft paper bags from the IIBtt horizon (average depth 15 cm). These samples were shipped to Acme Analytical Laboratories Ltd. in Vancouver where they were dried and sieved to -80 mesh, pulverized to -200 mesh, digested with hot aqua regia, and geochemically analyzed by the Inductively Coupled Argon Plasma (ICP) method. Gold was analyzed by atomic absorption. Analytical results are discussed individually in the summary of each grid. I 5. GEOPHYSICS Ground magnetic and shoot-back electromagnetic surveys were conducted on Grids B, C, D, E and F by an in-house crew during September 1982 to locate airborne EM conductors discovered in an earlier survey (Dvorak, 1982). Magnet i cs The magnetic survey employed a Geornetrics G-816 proton precession magnetometer. Read ngs were taken at 25 m intervals a ong grid lines spaced approximately 200 m apart. Readings were corrected for diurnal drift using a Canadian Mining Geophysics built MR-10 base station recorder. Instrument drift was checked by running the magnetometer traverse in closed loops. The data were plotted in profiles. Results are discussed in the grid summaries.

9 - 4 - Electromaqnetics The EM survey employed a Crone CEM shoot-back unit. The survey was carried out with a 50 m coil separation at three frequencies, 390, 1830 and 5010 Hz using the horizontal mode. the transmit coils are held in a horizontal position. In the horizontal mode of operation Both operators in turn transmit and then receive, measuring the dip angle of the field. The two dip angles are added together, and the reading is recorded at the mid-point between the two operators. consequences of rough topography can be effectively eliminated. In this way the reverse procedure also means that changes in coil spacing are not an important consideration. This The basic shape of a Shoot-back anomaly over a shallow, vertical conductor is a central positive peak, flanked by negative peaks. ratio of the resultant peak dip angles at two frequencies permits an eval- uation of the conductivity of the body. conductor can be estimated by comparing the field curves with model studies. As the dip of a body becomes shallower, the hanging wall negative portion of the profile increases in magnitude and extent and the footwall negative decreases. angle profiles, with positive angles only occurring over the edge of near surface, high conductivity conductors. The The geometrical parameters of a Flat conductors produce predominantly negative resultant dip For depths greater than half the coil spacing only low amplitude, negative resultant dip angles are obtained which can often be lost in the noise envelope. Effective depth penetration for the shoot-back techniques is thus limited to less than half the coil spacing. Most of the airborne conductors were located by the ground survey. Data are plotted at 1:5 000 map scale and 1 cm = 10" vertical scale. (Dwgs. 2 to 6). Survey results are discussed in grid summaries.

10 GRID SUMMARIES (i) Grid B Location and Access Grid B lies on the southeast slope of True Blue Mountain, 5 km due southwest of Kaslo. Access is via the Kaslo airfield, then south on an old road for 4 km up True Blue Mountain (Dwg. 1). Soil Geochemistry Copper, lead and gold values are low. A silver and zinc anomaly occurs in the southwest part of Grid B. This anomaly also has elevated arsenic and lead values (Dwg. 2). Scattered anomalous silver values occur west of B.L E. All silver and zinc anomalies are underlain by Kaslo Group metavolcanics, but do not correlate with the magnetic or electromagnetic anomalies. Geophysics Ground EM survey confirmed all airborne EM conductors on Grid B (Dwg. 1). A weak conductor trending 154" occurs at 99+00E on lines N, N and N. A second weak conductor occurs at E on line N (Dwg. 2). graphite schist or graphite schist. Both conductors are associated with chloritic Ground magnetic survey results are very noisy (Dwg. 2) with scattered magnetic highs throughout the grid. Several magnetic highs are probably due to rugged terrain. Both EM conductors have strong magnetic response. I (ii) Grid C Location and Access Grid C is 7 km due south of Kaslo. Access is south along Highway 31 for 7.5 km, then follow the claim line of KAS 1, 2, 3, 4 west for 1.3 km (Dwg. 1).

11 - 6 - Soil Geochemistry Gold and arsenic values are generally low. There are two multielement anomalies, lbcated at the southwest and the central part of the grid (Dwg. 3). The "southwestt' anomaly is zinc-silver, with 200 to 600 ppm zinc and 1.3 ppm silver in one sample. This anomaly is associated with an EM conductor. The "central" anomaly is zinc-copper-lead and is unrelated to any magnetic or electromagnetic anomalies. Both anomalies are underlain by the Kaslo Group schists. Several scattered high zinc, copper values are also present. Geophysics Three of the four airborne EM conductors were confirmed by the ground EM survey. All three conductors occur in the southwest corner of Grid C, on 1 ines N and N (Dwg. 3), and are underlain by the Kaslo Group. These are strong conductors with moderate to high magnetic response. The magnetic survey gave extremely erratic results possibly due to the rugged terrain and complex folding and faulting of $he underlying Ki 1 ford and Kasl o Group rocks. (iii) Grid D Location and Access Grid D is located 800 metres east, down-slope of Grid C. Access is south of Kaslo along Highway 31 for 7.5 km, then follow the claim line of KAS 1,2,3,4 west for 300 m. (Dwg. 1). Soil Geochemistry In general, gold, arsenic, lead, silver low. Several high zinc values, 300 ppm to 500 the grid but no significant anomalies occur on underlies most of the grid. and copper values are ppm are scattered around Grid D. The Lardeau Group Geophvsi cs A weak north-trending EM conductor occurs on the west end of Grid D. (Dwg. 4), caused by the airborne EM conductor at B.L E, line

12 N. The magnetic survey results are erratic and do not reflect the different lithologies underlying the grid. (iv) Grid E Location and Access Grid E is 6 km due south of Kaslo. Access is via Highway 31, south of Kaslo, Dwg. 1). The grid is 1 km north of Grid D. Soil Geochemistry The gold and arsenic values are generally low. Anomalous zinc values, 400 ppni to 700 ppm occur at the east end of Grid E (Dwg. 5). This area is underlain by granitic sills possibly covering the Lardeau Group. Anomalous zinc and lead values are scattered over the grid. No geochemical anomalies occur over the EM conductor. Geophysics 1 Ground electromagnetic survey indicated a strong north-trending conductor at 99+00E on lines N, N and N. A Max-Min I1 survey was run over this conductor on line N and indicated a west-dipping conductor. The coarse-grained graphitic-muscovite schist, striking north and dipping west, underlying the conductor could be the source (Dwg. 5). Magnetic highs occur at 98+00E on lines N and N. It is not sure if the magnetic highs are associated with the EM anomalies. (v) Grid F Location and Access Grid F is located 4 km southwest of Kaslo at the foot of True Blue Mountain. The grid is 1.5 km east of Grid B. Access is via an all-weather gravel road just southwest of Kaslo for 3.5 km. (Dwg. 1). Soil Geochemistry In general, copper, silver, gold and arsenic values are low (Dwg. 6).

13 -a- Lead values are elevated and higher than in all other grids. Two zinc anomalies occur on line N at 98+00E and E with values from 400 ppm to 1000 ppm zinc. The anomalies are unrelated to the EM conductor and located in areas with no outcrops. An anomalous gold value (225 ppb au) occurs on line N near a gravel road. Geophysics Ground geophysics surveys confirmed a northwest-trending airborne EM conductor (Dwg. 1). The conductor trends parallel to B.L E (bearing 154") and extends from line N to line N at 99+00E. (Dwg. 6). This conductor is similar to the one on Grid E and is reflected on all frequencies (390 Hz, 1830 Hz, and 5010 Hz). No graphitic material is associated with this conductor and overburden covered most of the conductive area. No significant magnetic anomalies occur on Grid F. 1

14 CONCLUSIONS AND RECOMMENDATIONS Soil Geochemical surveying has adequately tested all the grids but did not locate any significant anomalies. Ground CEM shoot-back survey has successfully located most airborne EM conductors. Most of these conductors are underlain by graphitic schists of the Kaslo Group. The ground magnetic survey was unsuccessful in distinguishing different lithologies due to complex folding and rugged terrain, but the survey was successful in locating several faults. No further work is recommended due to the negative results. I

15 ITEMIZED COST STATEMENT The following exploration activities were undertaken during the period August 19 to September 22, 1982: Line Cutting Bema Industries Ltd. - Contract # km Q $590 Soil Sampling and Chaining SMD Crew L. Lindinger a days Q $150 D. Bush 8 $110 M. Baker 8 days Q $ samples by ICP Q $ samples by AA for gold Q $5.00 Magnetometer Survey SMD Crew km G. Aust 4 days Q $126 J. Laidlaw 4 days Q $ Proton magnetometer rental - 8 days Q $10.90 MR-10 Base magnetometer rental - 4 days CEM Shoot-back Survey SMD Crew - 10 km Q $11.40 G. Aust 11 days Q $126 J. Laidlaw 11 days Q $126 CEM Shoot-back rental - 11 days Q $8.80 Project Supervision, Report Writing and Support SMD Staff David Chan - Geologist 13 days Q $150 Z. Wytrwal - Draftsperson 56 hrs Q $15 Food and Lodging cost - 62 man days Q $40 4x4 Truck rental including operating cost 23 days Q $50 $ TOTAL EXPENDITURES $ 26, ~ _

16 STATEMENT OF QUALIFICATIONS certify: I, David T. M. Chan, of Vancouver, British Columbia, hereby 1) That I am a geologist residing at Franklin St. Vancouver, B. C. 2) That I am a graduate of the University of Toronto with a B.Sc degree in Geology in ) 4) That I have practiced my profession since graduation. That I personally supervised and carried out the work on the IMP Group claims. David T. M. Chan November, 1982

17 REFERENCES Dvorak, Z. (1982) Fyles, J.T. (1967) DIGHEM I1 Survey of the Cooper Creek area, B.C. for SMD Mining Co. Ltd., Dighem Limited Report # 162/2, Toronto, Ontario. September (Unpublished company report) Geology of the Ainsworth-Kaslo Area, Brit'ish Columbia, British Columbia Department of Mines and Petroleum Resources, Bulletin 53, 125 p. Sutherland-Brown, A., (1971) et a1 Metallogeny of the Canadian Cordillera, CIlrl Bulletin, Vol. 64, No. 709, p Wheeler, J.O. and Read, P.B. Geological and Mineral Maps of Lardeau, (1976) B.C., West Half 82K, GSC Open File #432 I

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