PERCY CONTRACTING SERVICES LTD.

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1 GEOLOGICAL REPORT ON TEN PLACER LEASES (3139, 3140, 3141, 3142, 3143, 3144, 3145, 3146, 3147, 3148) MOREHEAD CREEK CARIB00 MINING DIVISION, B.C. 938/12W (52 38 N, W) For PERCY CONTRACTING SERVICES LTD. Grant Crooker, B.Sc. Geologist June, 1981

2 - SUMMARY The Ten Placer leases described in this report are located in the Cariboo Mining Division. The property is located 75 kilometers east of Williams Lake, B.C., near Hydraulic, B.C. Owner of the property is Percy Contracting Services Ltd., 945 Tuxedo Drive, Port Moody, B.C. No commercial Placer production has been recorded from the leases. However, the Morehead Placer working is located only one kilometer away. The gorehead channel is believed to pass through the leases. Future exploration will be directed to locating buried alluvial channels containing gold bearing sands on the leases.

3 TABLE OF CONTENTS. SUMMARY... 1NT.ODUCTION... 1.front) General... 1 Location and Access... 1 Property and Claim Status... Physiograph~... 2 Property and Area History... 2 EXPLORATION PROCEDURE... 3 GEOLOGY... 3 Local Geology... 3 Old Alluvial Channels... 5 ECONOMIC CONSIDERATIONS... 5 CONCLUSIONS AND RECOMMENDATIONS... 6 REFERENCES... 8 CERTIFICATE OF QUALIFICATIONS Figure Location Map Geology Idealized Geological Section (Frontispiece) Pocket 4

4 Ffom Placer Titles Reference Map 93A/ 12 W PERCEY CONTRACTING SERVlCES Lm PORT COOUITLPM. E.C. LOCATION MAP (PL ) SCALE I: 50,ooO 0 I 2 3 KM. DRAWN BY: G. CROOKER DATE : JUNE 1981 N.T.S. : 9 3A /I2 W FIGURE NQ.

5 1. INTRODUCTION General During the month of May, 1981, the writer conducted a field examination of ten placer leases located near Likely, B.C., in the Cariboo Mining Division. Prospecting, geological mapping, and a chain and com- pass survey of the placer leases were carried out. Location and Access The ten placer leases (Figure 1) are located 13 kilometers west of Likely, B.C. at 52'38' north latitude and 121'47' west longitude. (.93A/12W). The leases are contiguous and extend from Littlelake Creek to Morehead Creek. Access to the leases is via 75 kilometers of two-lane all weather road from the Cariboo Highway at 150 Mile House. At Hydraulic one turns onto the seven mile road, and travels 5 kilo - meters to the property. Several well maintained secondary roads lead to various areas of the property, giving excellent access to all areas of the property. Property and Claim Status The ten placer leases are contiguous and run from Littlelake Creek south westerly to Morehead Creek. The leases are in two groups, one group three leases long by two leases wide, and the other group two leases long by two leases wide. Percy Contracting Service Ltd., 945 Tuxedo Drive, Port Moody, B.C., is the owner. The term of each lease is 10 years. Total royalties amount to 5 per cent comprising 2% percent royalty interest to Lloyd Tattersall and 2% percent royalty interest to Cecilia Carlson from any and all commercial production from the leases.

6 2. Placer Lease Tag No. P4333 P4334 P4335 P4336 P4337 P4338 P4339 P4340 P4341 P4342 Date of Lease June 5, 1980 It I1 It It 11 It June 13, I1 June 5, 1980 I The leases are located in the Cariboo Mining Division. Physiography The placer leases are located on the western edge of the Quesnel Highlands. Topography is gentle with Littlelake Creek and Jawbone Creek cutting 40 meter to 50 meter deep gorges. Elevations vary from 800 meters to 900 meters above sea level. Vegetation consists of spruce, fir, jack pine and poplar trees, with some under brush. Property and Area History The Quesnel Forks area was first prospected by placer miners in 1860, and the area remains active to this day. The biggest producer in the area was the Bullion Hydraulic operation. Actual gold production from the area is not known, but the Bullion mine itself produced over 2.2 million dollars in gold before closing in Although no commercial production has been recorded from the leases, the ground is located in what may be considered to represent an old alluvial channel.

7 3. The Morehead channel is believed to pass through the leases. This channel follows the Prior Lake, Littlelake Valley to Morehead Creek. The only exposure of this channel is approximately one kilometer west of the leases on Morehead Creek. Production from the Morehead workings as recorded by Government Geologist S. S. Holland in British Columbia Department of Mines Bulletin %28, 1950 is 1,538 ounces of gold valued at $30,166. Another, smaller channel is thought to exist higher up on Morehead Creek. This is known as the Prior workings and is believed to be a tributory of the Morehead channel. EXPLORATION PROCEDURE The field program on the ten placer leases consisted of geological mapping, prospecting and a chain and compass survey of the leases. All geological information, as well as the chain and compass survey results were plotted on a 1:5000 scale base map. The locations of all claim posts were also checked. GEOLOGY Local Geology The leases are covered by Pleistocene and recent glacial deposits. This includes sand, silt, gravel and alluvium. Traverses were made along Morehead Creek, Littlelake Creek and Jawbone Creek, as well as across the leases (Figure 2). Morehead Creek cuts a deep gorge over 100 meters deep. Outcrop is abundant along the creek. Bedrock appears to be mainly andesites. Some gravel banks were found along the creek, but due to sloughing, no sections could be examined.

8 4. About 1% kilometers up stream from the junction of Little Lake Creek and Morehead Creek, the old Prior workings are located. These workings are believed to have been located on an old alluvial channel. Some old tailings were found in the creek bottom, but due to sloughing little can be told of the unconsolidated materials. The old Morehead hydraulic workings are located below the junction of Morehead Creek and Little Lake Creek. On the east side of the creek, some coarse boulders from the old channel were found. The boulders are mainly of local origin and are believed to represent part of the old alluvial channel. Overlying the boulder wash are interbedded sands and gravels approximately 15 meters thick. The depth from the exposed boulders to bedrock is unknown. The main workings were mainly on the west side of the creek, but due to sloughing little can be observed there. A traverse was made down Jawbone Creek. A few small outcrops of bedrock were found along the creek, and in these locations the bedrock rose to within 2 meters to 5 meters of the surface. However, most of the gorge did not have any exposures of bedrock. Bedrock consisted of andesite and mudstone. Sections of the unconsolidated materials indicated the following types of materials. (Figure 3). From 2 meters to 10 meters of boulder clay are found at the surface. This material has varying amounts of coarse boulders. Several sections showed only clay. Underlaying the boulder clay are varying thicknesses of interbedded silt, sand and gravel. Individual beds vary from % meters to 2 meters in width, with section thicknesses in excess of 10 meters. The sides of the creek have sloughed in, so sections

9 Depth PERCEY CONTRACTING SERVICES Lm. PORT COQUITLAM, 8.C. IDEAL IZED GEOLlOGlCAL SECTION ( PL ) ORAWN BY : G. CROOKER DATE: JUNE 1981 N.T.S. : 93A /I2 W FIGURE NO. 3

10 5. are not easily observed. channel gravels be observed. At no point could any old alluvial Old Alluvial Channels placer leases. Several old alluvial channels may pass through the The Morehead channel is believed to occupy a valley that starts near the Bullion pit and passes by way of Prior Lake, Littlelake, and Littlelake Creek to Morehead Creek. Virtually all of the information on this channel comes from the Morehead workings. The depth to bedrock and gold values in the channel are completely unknown at this time. From the Jawbone Creek section it is obvious considerable depths of.over-. burden cover parts of the leases. The valley itself is of considerable size and was apparently cut before the Pleistocene. This preglacial? river would appear to have flowed in the same direction as the present Quesnel River (east to west). The placer leases owned by Percey Contracting would appear to cover this old channel. The area should be tested by a hammer seismic survey and Becker drilling. Another old channel is believed to exist at the Prior workings. The channel is assumed to follow on the east side of Morehead Creek and to be a tributory of the main Morehead channel. However, very little is known about the channel. ECONOMIC CONSIDERATIONS The Morehead channel contained gold in concentrations that were mined economically. Production from the area has not

11 6. been recorded accurately. However, the Morehead workings from 1913 to 1915 averaged approximately 13 cents per yard. (Cockfield and Walker, Geology and Placer Deposits of Quesnel Fork Area, Cariboo District of British Columbia, 1933). The above calculations were made with gold valued at approximately $20.00 per ounce. Considering gold at $ Canadian per ounce, values of approximately $4.00 per cubic yard are obtained. These values indicate gold content which could probably be mined economically. It is generally believed that all of the glacial gravels contain some values in gold. However, whether or not the gravels contain sufficient recoverable gold to be mined economically is unknown. The main target for explorat on would be the old alluvial channels laying on bedrock. Exploration should be directed to locating these channels. CONCLUSIONS AND RECOMMENDATIONS The ten placer leases may cover the old alluvial Morehead channel. Exploration must be carried out to locate this channel. Once the channel is located, the gravels must be tested to determine if they can be mined economically. Recommendations are: Phase 1 - That 3,000 meters of hammer seismic survey be carried out to determine the depth to bedrock and the possible location of an old alluvial channel. Phase 11 - Using the hammer seismic information as a guide, 10 Becker Hammer holes be drilled to test for possible gold bearing sands and gravels.

12 ~ 7. Phase Additional drilling be carried out, depending on the results of Phase 11. Respectfully submitted, Grant Crooker, B. Sc. Geologist

13 8. REFEXENCES B.C. Dept. of Mines Annual Reports , , 1926, 1927, , Campbell, R. B. - GSC Open File 574, Geology of Quesnel Lake, B.C., Cockfield, W. E. and Walker, J.F. - Geology and Placer Deposits of Quesnel Forks Area, Cariboo District, British Columbia. GSC Summary Report, Galloway, J. D. - Placer Mining in British Columbia, B.C. Dept. of Mines Bulletin #l, Holland, S.S. - Hydraulic Mining Methods, B.C. Dept. of Mines Bulltin #15, Holland, S.S. - Placer Gold Production of British Columbia, B.C. Dept. of Mines Bulletin #28, 1950.

14 9. CERTIFICATE OF QUALIFICATIONS I, Grant F. Crooker, B. Sc., Geology of Box 234, Keremeos, British Columbia, state as follows: That I graduated from the University of British Columbia in 1972 with a Bachelor of Science degree in Geology. That I have prospected and actively pursued geology prior to my graduation and have practiced my profession since That I am a member of the Canadian Institute of Mining and Metallurgy. That I am a self employed geologist residing at Keremeos, B.C. That I have no direct or indirect interest in the property, nor do I intend to receive any such interest. DATED at Vancouver, British Columbia, this 17 day of June, Grant Crooker, B.Sc. Geologist

15 COST STATEMENT WAGES 1 Geologist $ 2, $250/Day May 25-31, 1981 Inclusive/June 1-3, 1981 Inclusive 1 Prospector 6 $15O/Day May 21-26, 1981 Inclusive ACCOMMODATION - 10 Days D MEALS 10 Days TRANSPORTAT I ON Vehicle Rental (4 x 4 Truck) 12 Days FUEL 5 SUPPLIES GEOLOGICAL REPORT Report Writing, Secretarial, Draughting, Reproduction 1,000.00

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