CALUMET PLACER EXPLORATION RESULTS

Transcription

1 CALUMET PLACER EXPLORATION RESULTS By: Hart W. Baitis Quartz Creek Mining December 3, 1994 INTRODUCTION The purpose of this report is to convey the results of an exploration program on the patented Calumet placer claim. The exploration program was conducted by Quartz Creek Mining during the period September 19 through October 11, LOCATION, PHYSIOGRAPHY - LANDS INVOLVED The Quartz Creek area is located approximately 15 miles south and east of the town of Superior, Montana. Access roads are paved interstate highway and graveled forest roads. Roads to the property are open year round, although some snow plowing is typically required during the winter months. The Calumet claim is located in Section 31, TlSN, R25W. Quartz Creek is a perennial stream, and winds through an area of steep, timbered slopes. Elevations at the Calumet claim vary from 3400' to 3800' above mean sea level. The operating season at Quartz Creek is likely to begin in early April, and extend into early December. There is no commercial electrical power available near the claims of interest. There is adequate water on the claims for a placer operation of the size proposed. Although timber in the area is harvested periodically, placer mining along Quartz Creek is the main commercial activity. Recreational activities in the area include huckleberry picking in the summer, and hunting in the fall. The Great Burn Roadless area, located several miles upstream, has been recommended for wilderness designation by the Forest Service in the Rare I1 study. This roadless area receives moderate recreational use.. GEOLOGY The Quartz Creek placer area is underlain by siliceous argillites and calcareous quartzites of the Proterozoic Wallace Formation. Generally the bedding strikes from N20 W to N60 W and dips gently (20-30 degrees) to the northeast. Fe-stained breccias (slump breccias or collapse breccias) were observed locally in the drainage. Dioritic to gabbroic intrusive rocks (sills and dikes) also occur locally and comprise a common clast type in the placer gravels. Trenching of the gravel section at numerous points along the Calumet placer claim shows gravel thicknesses range from 9' to 19'

2 on the upper half of the Calumet, and from 10' to 25' on the lower (downstream) portion of the claim. These gravels average perhaps 65% oversize (+ 1" material) in the lower part of the section (within 3' of bedrock) and approximately 40% oversize in the upper part of the section (see Appendix I). Typically the entire gravel section appears to have resulted from deposition during a single major flood event, with depositional breaks within the gravel section only observed in four of the twenty-nine pits. Bedrock at the base of the gravels varies from hard and flat-lying to locally hard and undulating to oxidized soft, fractured and clay-rich. Of the 28 sites that penetrated bedrock, approximately 14 had soft oxidized and fractured bedrock that was easily dug by the excavator, and 14 had extremely hard, relatively unoxidized bedrock surf aces. The main placer gravels are commonly overlain by side gulch derived alluvial fan deposits as much as 17' deep. Sites LN, UG, UO, LD, LE, LB, LA are all on side gulch fans and all have side gulch fan deposits above the gravels. No test pit has side gulch fan deposits below the gravel deposits, indicating the major gravel deposition event scoured out the side gulch fans, if they existed, during this catastrophic event. Only three sites (LB, LC, and LF) have silty to clay-rich deposits from three feet to five feet thick which overlie the catastrophic-event gravel deposits. In pit LB, five feet of organic and silt-clay rich deposits lie between the side'gulch debris fan deposits and the gravels. This finelylaminated organic-rich material was likely to have accumulated in a local quiet pool or pond, possibly in a beaver dam environment. Two sites (UF and UH) were excavated in mine spoils to bedrock and the bulk of the remaining test pits had from two feet to nine feet of previously mined tails overlying virgin (unworked) catastrophic event gravels (see LF, UN, UM, UL, UK, UJ, LG, LI, LJ, LK, LL, LM, UA, UB, UC, UD, UE in Appendix I). Typically, test sites have from six inches to as much as three feet of organic debris-rich topsoil material at the surface. The gravel section is poorly sorted, but weakly graded, with increasing maximum clast size and oversize abundance toward the bedrock contact. Maximum size of boulders in most pits ranged from two to three feet in diameter, although larger boulders (3.5' to 4.5' diameter) were observed in five pits (LJ, UC, UG, UL and LEI. Some manganese oxide and iron oxide staining was common in the upper half of the gravel section, generally above or at where water began seeping into the test pit (water often was correlated with the start of + 55% oversize, generally 8' - 12' above bedrock in the thicker (+ 15') gravel sections and within three feet of bedrock in some shallower gravel sections). Only minor clay exists in the pay gravel zone, and the gravels were easily washed in Max Johnston's screening plant, showing a trommel is not needed to process these gravels.

3 METHODS Forty test pit sites on the Calumet placer claim were located to optimize geologic understanding of the placer gravels, and to attempt to develop a crude grid which would allow a rough reserve estimation for the property. The grid was modified somewhat to utilize existing roads and trails on the claim, and to avoid areas with excessive overburden and water problems. Subsequent to approval of the Plan of Operations submitted to the Department of State Lands (Site inspection was on , the Plan of Operations and ~xploration License were approved on ), 29 of the exploration test pit sites were excavated and reclaimed during the period September 19th through October llth, A D-7 dozer owned and operated by Max Johnston was utilized to upgrade road access to the sites, complete initial site preparation, and to assist in reclamation of disturbed areas. A Cat 235 Excavator with a 2.25 cubic-yard bucket and a digging depth capability of 32 feet was utilized to excavate the test pits, sample desired intervals of gravels, and to do the bulk of reclamation of test pits. Dick Schaeffer (Drummond, Montana) was the excavator operator. The sampling approach varied depending on ground conditions.. 'In several cases, extreme water flows and caving ground conditions required intermittent to continuous pumping (a three-inch trash pump proved inadequate for some sites and was eventually replaced by a six-inch trash pump which often had to be placed by the excavator). Where the water flow rates were less, bailing could sometimes be maintained by the excavator bucket. Because of caving ground conditions encountered in the wetter sites, excavations were quite large in areas where depths to bedrock exceeded 20 feet. The excavator had to ramp down in order to optimize sample quality in deeaer ground. Sampling approach varied from site to site. In some situations, the section was excavated to determine the bedrock depth. Then the pit was expanded and dug to the top of the desired sampling interval, at which point the depth to the top of the sample was measured by tape. The surface of the area to be sampled was cleared of sloughed materials as well as possible. Samples were taken by the excavator and loaded in Max Johnston's 5-yard dump truck. If sloughing occurred during sampling, this was also cleaned as well as possible with the excavator and dis F arded prior to taking another excavator bucket. Generally a 5 yd sample was collected over a 2'-3' vertical interval, and the sample was then transported to the processing plant area for washing. A measurement of the sampled interval was then taken, and the upper surface of the next interval to be sampled carefully cleaped prior to repeating the sampling procedure for the next 5 yd sample. Water was either pumped or bailed to keep the sampling as dry as possible.

4 In numerous cases where I felt adequate control of bedrock depths was available, sampling was completed as the exploration pit was deepened. This was particularly successful in shallower test pits (less than 20' to bedrock). Upon completion of each pit, a photographic record was made to complement the graphic log for each site. The graphic log; sample interval selection, and quality control on sampling were all completed or determined by Hart Baitis. All excavator work was completed by Dick Schaeffer. Samples were hauled by Johnston to his wash plant. After dumping the placer sample on a clean smooth surface near the wash plant, the sample was immediately fed by front-end loader directly into the screen plant, washed through the vibrating screens (where oversize is rejected), and gold recovered in the sluice box. After the sample was processed, the concentrates from the sluices were collected and cleaned utilizi g a Goldfields Gold Tron. Final cleanup was by panning. A 5 yd 9 sample was processed and cleaned, resulting in a final gold weight for the sample within one hour of the delivery of the sample to the processing area. Bob Back was responsible for the wash plant operation and cleanup, labeling, and weighing of the samples. Lower Calumet RESULTS A total of 14 exploration test pits (13 completed to bedrock) were excavated in the lower (downstream) portion of the Calumet claim (Figure 1). Logs of these sites are in Appendix 1 and locations of the pits are shown in Figure 1. Table 1 presents a summary of the gold recovered for respective sample intervals for individual test pits. Of the 14 sites, only four (LC, LF, LG, and LH) returned results that may be economic to mine. These four sites are located immediately downstream from areas of most recent mining on the claim, which limits extensions of mineable ground in the upstream (westerly) direction. Test pits with low values appear to define the margins of the. pay gravel zone. Table I summarizes the actual recovered weight of gold for each test pit. The average of values for sites LC, LF, LG, and LH is $19.17/~d' (arithmetic average with no fineness correction and gold at $39O.OO/ounce). The area of potential pay gravels represented by these four test pits estimated at approximately 1.90 acres which at $19.17/yd represents approximately 10,925 yd 3 (assu'i' ing a 3' gravel thickness produces approximately 5,750 loose yd /acre) or approximately $209,432. in gold (with no fineness correction and gold at S390./ounce). In all cases it was assumed that only the lower three feet of the gravel section (gravel plus bedrock in areas of

5 soft bedrock) carry enough values to process. This assumption is supported both by the test results for the Lower and Upper portions of the Calumet and by Max Johnston's several years of mining experience in the Quartz Creek drainage. Upper Calumet A total of 15 test pits were completed on the Upper Calumet (western portion of the claim). Three sites (UF, UH, and UL) were located within the area of past mining (see Figure I), and suggest that reprocessing these gravels would not be economic. Sites UE, UD, UC, UB, UJ and UA represent a contiguous area of approx'mately 5.32 acres or 30,600 loose cubic yards that average $5.79/yd 3 (with no fineness correction, gold value assumed to be $390.00/ounce). These test results indicate marginal economics for this area of bench gravels, which contains a resource of approximately $177,000. worth of gold (assuming gold at $390./ounces, no fineness correction, and a straight arithmetic average of test results for the six test sites). Sites UI and UG test bench gravels with significant grades to the north of the previously mined pay gravels. An average value of $13. 05/yd3 (no fineness correction, gold at $390. /ounce) shows interesting values, but excessive overburden depths and limited unmined acreage near the claim boundary restricts the unmined resource to a maximum area of approximate y two acres. This calculates to a potential of 11,500 ydj at ~13.05/~d' or approximately $150,000. of gold (at $390./ounce and no fineness correction). The following summarizes the potential resource on the Calumet placer claim. Upper (West half) Calumet yardage value ounces A. North Bench 11,500 yd3 $150, B. South Bench 30,600 yd3 $177, Lower (East half) Calumet A. Pay gravels-tested 10,925 yd' S From the limited test work completed, the Calumet placer claim is projected to contain approximately 1,375 ounces of go1 in 53,025 y rdsl of pay gravel giving a grade of.026 ozlyd? or SlO.ll/yd is ($536,000 worth of gold at $.390./ounce and no fineness correction). Estimates of gold loss due to dilution/deletion are reported in Appendix I. Because such estimates are difficult to quantify, they have not been taken into account in the above table. In the author's opinion, the above summary of values could reasonably be estimated to be increased by percent to account for dilution and gold loss during sampling.

6 Table I: Calumet Placer Exploration Pit Test Results Test Pit Interval WT (grams) Volume Site Sampled Au Recovered Sampled (yd') $ Value/: Assumptions: Gold at $390/0unce grams = 1 ounce troy 1 gram Au = $12.54 Note: No fineness correction made

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8 CONCLUSIONS Early estimates of gold potential on the Calumet property obtained from McCulloch-Lehto (see Appendix 11) appear to be an order of magnitude greater than the 1994 test results from Quartz Creek Mining (S11,176,000. vs. $536,000). Water diversion costs, high stripping ratios (waste/pay gravel), the cost of permitting and reclamation, and the capitalization of the type of equipment needed to mine the Calumet property were considered. The Calumet placer property alone does not have sufficient reserves to warrant development by Quartz Creek Mining.

9 APPENDIX I Graphic Logs - Exploration Test Pits, Calumet Placer

10 Zxploration Pits - Photo Records

11 Exploration Pits - Photo Records

12 Exploration Pits - Photo Records

13 Ex2ioration Pits - Photo Rscords

14 Expioration Pics - Photo Records

15 Exploration Fits - Phoco Records

16 Exploration Pits - Photo Records

17 Exploration Pits - Photo Records

18 Exploration Pits - Photo Records

19 Exploration Pits - Photo Records

20 Exploration Pits - Photo Rscords

21 Zspioration Pits - Photo Records

22 Exploration Pits - Photo Rscords

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24 I RVC DRILL LOO QROLOOY I ALTERATION

25

26 I - WESTGOLD RVC DRILL LOO -,-*- 4,l.AA 12 i.' t.tl.o s l-rb - +- '.' PIO~OC~: s & ~ I? ~. ~ Y - 2 I.-,&la a a--ctr q*-,. L/ 3'' P V HOLE NO., A PAq OF- I OLOLOOY ALTERATION

27 I WESTGOLD RVC DRILL LOO Project: OEOLOOY ALTERATION A,,.

28 I WESTGOLD Project: HOLE NO.,..c CAOt W OtOLOOY 1 ALTERATION MINERALIZATION fish9

29 WESTGOLD RVC DRILL LOG OEOLOOY ALTERATION L'b6 - Fa phii - Projoct: HOLE NO. LF MINIRALIZATION h% OII & r.k,-~ 316 AN &;,b cjr $! 559h -py PAQL OF 9-22 S t 0 tu- L \ t c 'I, 5 ~ 4 % IS Zb A* A 5 Y )* /

30 RVC DRILL LOG I OLOLOOY ALTERATION

31 I WESTGOLD OEOLOQY I ALTERATION -- I -L3C _ -- Pr0j.d: -- drfi%. blrbo L;L,-+.J~~~.~ 2 Y:QsP 3he Y ~i) L- HOLE NO. or A ~ ~ ' G ~. h*

32 I WBSJOOCD Prole~% &_ 9-19-sI-1 RVC DRILL LOG HOLE NO. LI PAQC OT %t -'e' I ~ ~ O P M -

33 QLOLOOY I ALTERATION

34 I WESTGOLD RVC DRILL LOO I1 I 0LoLOOY I ALTERATION HOLl NO. CAW OF

35 RVC DRILL LOO Project: I 0E0L00Y I ALTERATION 9 P A"-

36

37 Project: ro- 3-9y HOLE NO. UaE OF Chvk-I f'h J-k- 10 '**\\-i\%,. A:>! + dhu C -- a $ QEOCHEYIITRY Au - ) ~~ea~clpj h ~ d, k a, (m, rq I

38 I ' WESTGOLD RVC DRILL LOO - ~COLOOY ALTERATION

39 I WESTGOLD RVC DRILL LOO Project: HOLI NO. u(3

40 - QEOLOQY RVC DRILL LOG ALTERATION r - -: 0 A*

41 I RVC DRILL LOO I alolooy ALTERATION + --

42

43 I WESTGOLD ' RVC DRILL LOG 1' aeoloay I ALTERATION -- r Project: t 4- HOLE NO. PAQC W UF $-k /~;^SLVU. tclf 1

44 I RVC DRILL LOG

45 I WESTGOLD % RVC DRILL LOO -4 -

46 RVC DRILL LOO

47 I WESTGOLD RVC DRILL LOO I OLOLOQY ALTERATION

48 I RVC DRILL LOO T*;\;,r s QLOLOOY ALTERATION Project: t--. 1

49 I WESTGOLD I I RVC DRILL LOO acoloay ALTERATION I '+-- -d,, +h:t crmbt ~"-'d.*, rft-,>b A Lase ( dl

50 RVC DRILL LOO I L OLOLOOY ALTERATION b e b 0

51 I WESTGOLD RVC DRILL LOO /Q-i-4* Project: S& *L(!Jo(H k.* --b 9.r, HOLE NO. PAOl OC uo OLOLOQY I ALTERATION

52 APPENDIX 11 McCulloch Estimate of Gold Potential - Calumet Placer (pre 1994 exploration program by Quartz Creek Mining)

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54 Table I: Calumet Placer Exploration Pit Test Results Test Pit Site Interval Sampled WT(gram8) Au Recovered Volume Sampled (yd') Assumptions: Gold at $390/0unce grams = 1 ounce troy 1 gram Au = $12.54 Note:. No fineness correction made