REPORT FOR ASSESSMENT WORKS ON CLAIMS SM SOVEREIGN GROUP 1 SM SOVEREIGN GROUP 2-80 UNITS CARIB00 MINING DIVISION. / f 93 B 16 E AND 93 A 13 W

Transcription

1 REPORT FOR ASSESSMENT WORKS ON CLAIMS SM SOVEREIGN GROUP 1-99 UNITS SM SOVEREIGN GROUP 2-8 UNITS N.T.S. CARIB MINING DIVISION / f 93 B 16 E AND 93 A 13 W LATITUDE &fo ( t O C 8. 5 ' LONGITUDE 2"(' Claims owned by : Work paid for by : Date Submitted : May 4, 1987 Authors of Report : - General Information: - Prospecting Data: GEOLOGICAL BRANCH MESSMENT REPORT

2 TABLE OF CONTENTS 1 ) Introduction a) Location and Access b) Property Description c) Summary of Work 2) Prospecting Report a) SM1, S2, SM3, SM4, SM7, SM6, SM5, SM4, SM3, SM5, SM7, SM6, SM8, SM9, SM1, SM111, SM1, SM113, SM114, SM115, SMl4, SM11, SM13, SM b) Maps i) Prospecting Map ii) Grid Map iii) Detail Maps - SM3 - SM4 - SM4 & SM7 - SM5 - SM6 - SM - SM114 & 115 c) Statement of Qualifications 3) Itemized Cost Statement

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4 a) Location and Access The Sovereign Creek mineral claims are reached by turning east from Highway 97 at Quesnel, British Columbia onto Highway 26 which joins Quesnel and Barkerville. Proceed on Highway 26 for 35 kilometers, then turn right on the 13 (Swift River) logging road. At 133 kilometer, turn right and follow the 13A logging road to 13A4 kilometer where the SM properties begin, and continue through until 13A19 kilometer. Roads abound throughout the property. At an elevation of 85 meters, Sovereign Creek flows westerly through the property with Chipp Creek draining from the southeast and Lake Creek draining from the north. Sovereign Creek empties into the Swift River at a point which is the approximate western boundary of the property. Most of Sovereign Creek and some portions of the smaller creeks travel through bedrock. Approximately one half of the property has been logged and replanted by West Fraser Mills, thereby making it easily accessible for exploration. b) Property Description The SM (Sovereign Creek) mineral claims are on the east boundary of the Quesnel Trough. Over 95% of the mineral claims are covered with glacial deposits and the balance are covered by volcanic aggromerate, breccia and flows. With reference to geology by R.B. Campbell , the properties consist of three groups, Takla, Pinchi, and Quesnel. 5 Triassic (upper triassic) (PLLT 32) Black phyllite, sandstone, limestone, quartzite. 7 Jurrasic (upper triassic and lower jurrasic) (ANDS 53) Talka group: andesite, basalt, tuff, breccia, conglomerate, greywacke, shale limestone. Triassic (upper triassic karnian and? norian) U%A3 undivided U?kA1, and U%A2 not separate at scale of mapping: may include dykes and sills and passes gradationally upwards to %JA (subgreen schist and green schist facies of metamorphisms) Norian and? younger %Jb Augite porphry basalt breccia, minor flows, tuff and tuffaceous argillite; local andesitic basalt

5 %Ja basaltic tuff and breccia, generally fine grained; argillite, flows, chert. With reference to the 1984 B.C. Government Regional Geochemical Survey, the properties consist of the following: - upper triassic (PLLT 32) black phyllite, siltstone, limestone and quartzite. - upper triassic and lower jurassic (ANDS 33) andesite, basalt, tuff, breccia, conglomerate, greywacke, shale and limestone. The property is well known for placer mining. From the late 18's, Sovereign Creek has been mined by both Chinese and white miners using ground sluices, digging shallow shafts, and cleaning the bedrock where it was exposed. In the 193's a small dredge was built on the Swift River, but it appears not to have moved much gravel. In the 195's and 196's suction dredging was undertaken at the confluence of Sovereign Creek and the Swift River. In the 197's and 198's, large equipment was brought to the area to wash gold on three separate leases. At present a small number of placer outfits and one larger operation ( yards per hour) are operating on Sovereign Creek within the property boundaries. All of the placer operations are recovering in excess of one one hundredth ounces of gold per cubic yard, along with some silver and a trace of platinum. During the initial mineral exploration of the SM Sovereign Creek claims, the placer leases were examined to determine whether any mineralized bedrock exposures had been uncovered. The following list outlines the placer locations: gold work at specific PL 983 At- the confluence of Sovereign Creek and Swift River, both the creek and river flow over bedrock. Suction dredging was undertaken on the bedrock channel in the middle of the Swift River, and there are some small placer working on the east bench of the Swift. PL 2153 and PL 1476 About 18 kilometers upstream from the mouth of Sovereign Creek along the north bank, approximately two acres are presently being mined with a small loader and washing plant. It appears that pay gravels are between one to two meters and they lay on a clay false bedrock. True bedrock is 3 meters to 5 meters from the surface.

6 PL 2967 PL 2967 lies one kilometer east of Swift River at 13A9 kilometer on top of a plateau approximately meters above the Swift River. Approximately three acres of this area was placer mined in the summer of 1985 with gold values running approximately 3/ to 5/ grams per cubic yard. The pay gravel lay on a clay false bedrock. A meter test hole was dug and it was discovered that the clay was around 7 meters thick with gravel beneath. By testing, this gravel was found to run 1/ grams per cubic yard and did not warrant placer mining. Pay gravel on the surface ran too low in value and the mining was discontinued. PL 25 Downstream from the old Victoria Creek Road bridge over Sovereign Creek, small amounts of hand placer mining was done where the creek flows over surface bedrock. PL 5641 Approximately 2 meters upstream along Sovereign Creek from the old Victoria Creek Road bridge, a 3 meter high bench rises along the south shore of Sovereign Creek. This bench, which is believed to be an old high channel of the Swift River, is about 15 meters in width, 7 meters long, and has been partially placer mined. True bedrock is visible on the east end, and is roughly 5 meters in depth toward the west end of this old high channel. PL This placer working is located about meters south of PL 2967 (see above). Pay gravel lies on the surface of a coulee which is roughly 8 meters wide and runs south from PL 2967, then turns west toward the Swift River. An old shaft with a depth of meters was observed. The shaft was dry and bedrock was noted. In the summer of 1985, a test hole was excavated approximately 5 meters east of the old existing shaft. At a depth of 21 meters, tertiary gravels with values of 2 grams of gold per pan were found. At a depth of 21.5 meters, water was struck and the hole was abandoned prior to locating bedrock. PL 2969 PL 2969 is located on the Swift River about one kilometer upstream from the mouth of Sovereign Creek, where a bedrock dyke crosses the river running East to West. Upstream from this dyke small hand placer workings can be seen. Pay gravel is about.3 meters thick and lays on clay false bedrock. From the surface to the clay false bedrock, gravel depths vary from 1 meter to 3 meters. A test taken showed very fine gold which ran about 5/ grams of gold per cubic yard.

7 PL 15, PL 987 These placer leases are located approximately 4 kilometers upstream from the mouth of Sovereign Creek on the north and south banks. The placer workings are both old and new, with the Chinese handwashing the bedrock in the past, and now large machinery mining the benches. The gravels vary in depth from 1 meter to 5 meters thick above the bedrock. One or two pay streaks between.5 meters and 1.5 meters were observed and they averaged about 4/ to 5/ grams of gold per cubic yard. Of the gold that was taken, the majority was fine, but there were some nuggets of k ounce size and some of the large pieces of gold (3 grams) was leaf gold. PL 222 At the confluence of Chipp Creek and Sovereign Creek old placer workings were noted, and old placer tailings were observed farther up Chipp Creek on the east and west banks. Benches on the north and south banks of Sovereign Creek have been tested in the past, but the gold results are unobtainable. PML 74 Approximately 9 kilometers upstream from the mouth of Sovereign Creek, a placer operation was in production in the summer of In this area Sovereign Creek flows through a bedrock gorge with walls up to 3 meters high. Large placer mining equipment was used in this operation, but the gold values and yardage is unobtainable. PL 9485 and PML 7142 These two placer leases located at the headwaters of Gagen Creek have been worked during the 198's. The leases lay on top of a plateau and have bedrock visible in many areas. The gravels are from 1 to 2 meters thick from surface to bedrock. The bedrock on PL 9485 is heavily mineralized with iron. Gold values and yardage is unavailable. PL 897 This lease is located at the headwaters of Chipp Creek where some placer testing was completed in the summer of The west bench of the creek was tested and gravels with a depth of 1 meter laying on clay were found. Bedrock was not located. A small amount of black sand containing a trace of gold was found. Over 95% of the SM Sovereign Creek mineral claims are covered with glacial deposits of till, gravel, silt and alluvium. The foregoing report along with the map explains the known placer gold areas. It can be suggested that this gold was deposited by glacial action, and that the SM Sovereign Creek mineral claims may be one of the sources.

8 The Sovereign Creek property has been prospected in past years with samples of silver, gold, platinum, zinc, chromium, nickle, copper, lead and molybdenite taken. Some of the companies that have performed extensive exploration are Mattagami Lake Exploration, Noranda Exploration, and R. Trifaux. Most of the conclusions and recommendations are for more exploration. Our, 1986 telephone discussion with Mr. Andre Patelin, Government Geologist (64) Victoria, B.C., confirmed that the information available on our area is very limited at the present time. Adjoining the Sovereign Creek northern border are the Mastt Resources property, and Pundata Resources are located about three and one half kilometers (two miles) north of the property. Both of these companies have undertaken extensive drilling in 1986 with encouraging results. The well known Mary Creek placer operations are located roughly 68 to 7 kilometers ( 4 to 4& miles) to the north of the Sovereign Creek property. c) Summary of Work During 1986, all of the SM Sovereign Creek mineral claims were individually grided by handcompass, (see map) and prospected to find surface outcroppings of mineralized rock. Some soil and chip samples were taken, but the budget did not provide for sampling all of the claims. The assay results of most of the samples taken were received by telephone from geologists of major mining concerns. The properties were also thoroughly researched with the intent to determine how to proceed with further exploration and development work. The following prospecting report together with the attached maps outlines the results of this investigation.

9 SM.1 (1-2 post unit) PROSPECTING REPORT The majority of this claim was logged in 1977 and the area is now covered with dense non productive brush. On the north boundary which is not logged, the old logging roads and fireguards showed only the glacial till, and the headwaters of Gagen Creek flows on a shallow gravel bed with glacial till on both sides of the creek. Some large pieces of float were found, but were not assayed. SM 2 (1-2 post unit) This claim is very similar to SM 1 except the north easterly stream gully is wider and swampy. SM 3 (2 units) The grid on this claim consisted of 9 lines 2.5 kilometers in length, spaced 25 meters apart, running west to east. The lines were run by compass and the outcroppings were flagged. The purpose of the grid was to prospect the ground for outcroppings, and when they were found, to thoroughly investigate that area. The west boundary from the L.C.P. to the #2 corner post was used as the base 111 line. Starting at the L.C.P. and travelling east to #4 corner post was line SM3X1 and then proceeding north 25 meters was line SM3X2 and so on until the northwest corner post #2 which was the completion of the grid at line SM3X9. The entire length of Sovereign Creek contained in the SM3 claim was prospected in addition to the grid lines. The result of this prospecting and the results from prospecting the grid lines on SM3 are shown on the enclosed map. SM4 (2 Units) The claim was grid into 8 lines running east to west, 28 kilometers in length and spaced 25 meters apart (see map). The lines were run by compass and the area prospected as noted in the SM3 report. The base line used was the west boundary of SM4 starting at the L.C.P. and ending at the #4 corner post or southwest corner. The results of prospecting the SM4 claim are shown on the enclosed map. SM 7 (1-2 post unit) The Swift River flows through surface bedrock at the northeast corner of this claim. Towards the south east, the claim is composed of glacial till which is breaking away and sliding into

10 the river. Further west it is partially logged and slopes downward to the east. Bedrock was observed only where the river flows. Please refer to the prospecting map for more information. SM6 The western boundary of this claim has been logged and the remaining portion slopes easterly toward the Swift River. The slopes are full of small springs. No bedrock was found and disturbed areas showed glacial till. SM5 (1-2 post unit) Most of this claim is covered by a lake and surrounded by swamp. Rock outcroppings were not found but on the northwest and southeast shores, gravels were found and tested showing a little placer gold. The gravels were shallow in depth and lay on top of glacial till. SM4 Most of this claim was logged in 1969 and the area is covered with dense non productive brush. The old fire guard and logging road was prospected but no outcroppings were found, and disturbed areas showed glacial till. SM3 The claim is covered with merchantable timber and a small stream flowing from west to east was prospected, but no outcroppings were found. The creek flows on glacial till. SM 5 (15 Units) The claim was grid into 11 lines 19 kilometers long running west/east, spaced 25 meters apart. As noted previously, the lines were run by compass and flagged as required. Baseline was established as the east line of the property between the L.C.P. and the number 4 post. In addition to the grid lines, the whole length of Sovereign Creek contained in the SM5 claim was prospected. Please refer to the prospecting map both these investigations. for results of SM7 (9 Units) This claim was grid into 6 lines lb kilometers in length and spaced 25 meters apart. The base line was the west boundary between the L.C.P. and the number 4 post. Sovereign Creek and the logging roads were prospected in addition to the grid lines. The results are shown on the attached prospecting map. SM6 (2 Units) The claim was grid into 9 lines 28 kilometers long, spaced 25

11 meters apart with the eastern boundary between the L.C.P. and number 2 post used as the baseline. Sovereign Creek, Chip Creek, an unnamed creek, and the logging roads were also prospected. The results are shown on the attached prospecting map. SM8 (1-2 post Unit) A small unnamed creek flows northward through SM8 toward Sovereign Creek. Most of the claim slopes east and west into this small year round stream. Both banks of the stream were prospected for rock outcroppings, but none were found. The stream flows on top of glacial till which was panned for placer gold. Only small traces were found. SM9 (1-2 post Unit) The claim lays on top of a large bench which terraces northward toward Sovereign Creek. The area is timbered with pine and alder. No outcroppings were found, and the disturbed areas consisted of glacial till. SM1 (1-2 post Unit) This claim is very similar to SM8 noted above. No rock outcroppings were found and the disturbed areas consisted of glacial till. SM111 (1-2 post Unit) This claim is very similar to SMlO9 (see description above) except that it slopes more steeply toward Sovereign Creek. Test holes one meter in depth were dug in the Alder groves, but bedrock was not found. There were no outcroppings found and disturbed areas consisted of glacial till. SM1 (1-2 post Unit) The western boundary of this claim slopes downward toward and unnamed creek which flows northward into Sovereign Creek. The area is timbered with Pine and Spruce, much of it being merchantable. There were no rock outcroppings found, and the disturbed areas consisted of glacial till. SM113 (1-2 post Unit) SM113 is covered with merchantable Pine and Spruce timber. The ground slopes sharply downward toward Sovereign Creek to the north. At the northern boundary, a large portion of the surface appears to be sliding into Sovereign Creek. No rock outcroppings were found, and the disturbed areas consisted of glacial till. SM114 (1-2 post Unit) Sovereign Creek flows east to west through the middle portion of this claim. The Sovereign Creek Valley is about 2 meters wide

12 and very swampy. On the south side of Sovereign Creek, rock outcroppings were not found, and the area consisted of glacial till. A short distance north of Sovereign Creek, a vertical wall of shale rises to a height of approximately 5 meters. The shale was prospected and it was found that the shale was covering sandstone and mudstone with small vertical veins of quartz varying in width from &I1 to ". Three of these sandstone and mudstone outcroppings were located, samples taken, and assayed. The assays contained copper. Farther north above the vertical wall, a plateau rises toward the north and drops toward Mostique Creek in the east. Mostique Creek flows through a swamp valley and empties into Sovereign Creek. The plateau consisted of gravel and glacial till. SM115 (1-2 post Unit) Sovereign Creek flows through the middle of SM115 very similar to SMll4. The near vertical wall of shale a short distance from the north shore of Sovereign Creek was traced throughout the full width of the claim. As mentioned in SMll4 above, the wall consisted of a shale capping on top of sandstone, mudstone and numerous quartz veins. We are still awaiting assay results for the samples taken. Above the vertical wall lays very coarse gravel which was panned for placer gold with encouraging results. A plateau forms the northerly part of the claim and disturbed areas consisted of glacial till. SM14 ( 2 Units) This claim was grid into 7 lines 2& kilometers long, spaced 25 meters apart running east to west. The lines were run by compass and outcroppings flagged as previously mentioned. Baseline was established as the eastern boundary of the property between the L.C.P. and the number 2 post. Only 7 grid lines were established because the next line to the north was already prospected with the SM6 claim due to overstaking (refer to map). In addition to the grid lines, the entire length of Chipp Creek and the logging roads in SMl4 were prospected. The results are shown on the attached prospecting map. SMll (2 Units) The claim was grid into 9 lines 2$ kilometers in length spaced 25 meters apart, running east to west. Lines were established by compass and the outcroppings flagged. Baseline was the eastern boundary between the L.C.P. and the number 2 post. The logging roads and the whole length of Chipp Creek enclosed by the boundaries of SMll were also prospected. Results of the prospecting are shown on the attached map.

13 SM13 (2 Units) SM13 was grid into 8 lines running east to west 24 kilometers in length spaced 25 meters apart. Lines were located by compass and outcroppings flagged as required. Baseline was the eastern border between the L.C.P. and the number 4 post. The short distance along the logging road and Chipp Creek was prospected in addition to the grid lines. The prospecting results are shown on the attached map. SM (2 Units) The,SM claim was grid into 8 lines running east to west 24 kilometers long and spaced 25 meters apart. All of the lines were run by compass using the west boundary between the L.C.P. and nuumber 2 post as baseline. Outcroppings were flagged where necessary. The logging roads and headwaters of Chipp Creek were prospected in addition to the grid lines. All results are shown on the prospecting map enclosed with the report. Conclusion A number of quartz veins and mineralized areas were discovered on the SM Sovereign Creek claims. Preliminary assays and discoveries suggest that a complete geophysical program should be undertaken to determine potential ore zones.

14 KEN MACGOWAN STATEMENT OF QUALIFICATION I,, have been associated with the mining industry from a very early age as my father, John MacGowan, was a mining engineer who worked in central British Columbia for 4 years from 193 to 197. During this time I spent approximately years while on summer holidays and on leave from the R.C.A.F. working with my father in the field. My training included geophysical and geochemical surveys, staking, line cutting, placer exploration and mineral exploration. I completed my grade education in 1962 while in the R.C.A.F. My job experiences since that time include the following: 1) : I worked one year for J.D. Burnett International Power Engineer Consulting surveying the 5 K. V. powerline between Williston Lake and Vancouver. 2) : I was employed as a lineman for B.C. Hydro on the 5 K.V. line between Williston Lake and Vancouver, and as a lineman for B.C. Telephone Company in various locations in British Columbia. I was also employed in heavy construction throughout B.C. and Alberta as a labour foreman, pipefitter, and rigger, at Cariboo Pulp, Northwood Pulp and Elk Falls. All of my free time between jobs during this period was spent in mineral exploration. 3) : I was employed two years intermittently for junior mining companies and major mining companies with the Vancouver Stock Exchange (Citex, Lemac, Ensbrook, Ardo, Nippon Canada, Placer Development). My duties included diamond drilling, prospecting, etc., at McLeese Lake, Cuisson Lake, Morehead Lake, Quesnel River, McLeod Lake, Chuchi Lake, Babine Lake and Nations Lakes. During this time, I also supervised the reopening of the Red Cliff Mine at Stewart, B.C. 4) 1977: I worked six months timber cruising for Ernst Forest Products in Quesnel, B.C. 5) 1978: I worked 6 months doing various rig jobs for Brinkerhoff and Loffland Oil Exploration northeast of Fort Nelson (in the Pointed Mountain and Beaver River areas).

15 6) : I was employed for 3 years by numerous small and large privately owned placer operations in Quesnel, Barkerville and Rock Creek. 7) 1985 : I worked 8 months for a large placer operation ( yards per day) at Cottonwood River and Sovereign Creek in the Quesnel area. 8) 1985 to present: I have spent full time in mineral and placer research and exploration in the Quesnel - Barkerville area. I constantly update my knowledge of exploration and mining methods by reading as many publications related to the geological sciences as possible, and by my conversations with the geologists and other mining associates in the area.

16 STATEMENT OF EXPENSES Page 1 Name Date Hours Rate 179 Units 99 Units 8 Units Per Total SM SM Day Group 1 Group 2 Allocat. Allocat. 3ul Sargent dn MacGowan April 18/86 April 18/86 April 19/86 April 19/86 April 2/86 April 2/86 April 26/86 April 26/86 April 27/86 April 27/86 May /86 May /86 May /86 May 11/86 May 11/86 May 11/86 May 17/86 May 17/86 May 17/86 May 18/86 May 18/87 May 18/86 May 19/86 May 19/86 May 31/86 May 31/86 1/86 1/86 2/86 2/86 3/86 3/86 4/86 4/86 5/86 5/86 6/86 6/86 9/86 9/86 /86 /86 11/86 11/86 /86 /86 13/86 13/ ibtotal 6,7.5 6,7.5

17 Page 2 Name Date Hours Rate Per Day 179 Units Total 99 Units SM 1 Group 1 Allocat. 8 Units SM 2 Group 2 Allocat. Carried from iul Sargent lien MacGowan '9ug Sargent Page 1 July July July July July July Oct. Oct. Oct. Oct. Oct. Oct. Oct. Oct. Feb. March March March March 14/86 14/86 14/86 15/86 15/86 15/86 16/86 16/86 17/86 17/86 18/86 18/86 19/86 19/ /86 22/86 23/86 23/86 24/86 24/86 25/86 25/86 26/86 26/86 27/86 27/86 6/86 6/86 /86 /86 13/86 13/86 4/86 4/86 5/86 5/86 /86 /86 13/86 13/86 27/87 7/87 7/87 8/87 8/ , , Total Field Labour OO 6235.

18 Page Units 99 Units 8 Units SM SM Total Group 1 Group 2 Allocat. Allocat. Total Field Labour OO Man Days of Sustenance at $4. per day Days Truck Rental at $4. per day Cost of Assays 75 samples Preparation of Report _ Total Expenditures 22,186.,421.OO 9, _

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