of the PRISM RESOURCES LTD. JAMES S. CHRISTIE, Ph.D. N 0. GEOLOGY AND ROCK GEOCHEMISTRY ASHNOLA - MCBRIDE CREEK PROPERTY of

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GEOLOGY AND ROCK GEOCHEMISTRY of the ASHNOLA - MCBRIDE CREEK PROPERTY of PRISM RESOURCES LTD. ASH - NOLA - CAT - CLAIMS 92 H/1W JAMES S. CHRISTIE, Ph.D. April 4, 1977 MINERAL RESOURCES BRANCH ASSESSMENT REPORT N 0.,

TABLE OF CONTENTS Page No. INTRODUCTION LOCATION MAP LOCATION AND ACCESS MINERAL CLAIMS REGIONAL GEOLOGY MINERAL CLAIM MAP PROPERTY GEOLOGY ALTERATION AND MINERALIZATION ROCK GEOCHEMISRTY AND ASSAYING INTERPRETATION RECOMMENDATIONS STATEMENT OF EXPENDITURES CERTIFICATE REFERENCES 1 2 3 3 3 4 5 6 8 8 10 12 13 14 I ILLUSTRATIONS #I GEOLOGY, ROCK GEOCHEMISTRY AND GEOPHYSICS McBRIDE CREEK PROPERTY, PRISM RESOURCES LTD. In pocket

INTRODUCTION In October 1976, while employed by Quintana Minerals Corporation,I was sent to evaluate a large sulfide system on the Ashnola River - McBride Creek property of Prism Resources Ltd.,with a view to possible option of the property by Quintana. The property had been briefly examined by another Quintana geologist, and it was felt that thjs sulfide system was similar in some ways to upper levels in the porphyry copper systems of southwestern U.S.A. It was hoped that a deep diamond drill target could be indicated. I was instructed to note, map and sample any features of the geology that might indicate similarity-with Kerr - McGee's Red Mountain porphyry deposit, Patigonia,Arizona which I had visited in the Fall of 1975. At Red Mountain the high grade copper deposit occurs at depths of some 3500 feet beneath very low grade surface exposures rich in pyrite and characterized by strong phyllic alteration- (Corn,1975). Geological examination of bedrock and drill core, surface mapping and rock geochemical sampling were carried out during the 6 day period October 17-22, 1976. A base map at the scale of 1"= 4 ' previously prepared by Prism Resources Ltd. and Craigmont Mines was used for control., i

- 3 - LOCATION AND ACCESS The property is located about 25 miles southwest of Keromeos B.C. on a ridge between McBride and Cat Creeks, 1 mile west of Ashnola River. The geological centre of the deposit is at elevation 6000 feet, some 2700 feet above the local Ashnola base-level. Access is by the Ashnola River valley road and then by a network of 4-wheel drive roads which have been constructed on the property (several are now impassible). MINERAL CLAIMS Mapping was done over parts of the Ash and Nola claims shown on Figure 2 and the accompanying geological map. No attempt was made to locate claim posts or boundaries, and locations shown result from a previous survey by Prism Resources Ltd. and are assumed to be correct. REGIONAL GEOLOGY The property lies within a volcanic sequence comprised of siliceous lavas, breccias and crystal tuffs, tentatively assigned to the Kingsvale Group by Rice, 1960. Average composition approximates dacite and small glassy quartz and feldspar phenocrysts are characteristic throughout the system.,

I- -.

- 5 - PROPERTY GEOLOGY The sulfide system is developed in rhyolitic lavas bearing abundant 1-3 mm quartz eyes and smaller feldspar phenocrysts. Coarser grained quartz porphyries (3-5 mm quartz eyes) form small dykes and stocks. Younger, late-mineral quartz monzonite porphyry forms a small central stock from which dyke-like apophyses emanate. A large diatreme has been mapped and interpreted to be of latest-mineral age. This is cut by minor dykes of fine grained dacite, medium grey in colour. The breccias and pebble dykes comprising the diatreme were previously considered to be pyroclastic members of the volcanic succession. Clasts within the breccias are matrix supported and range up to 100 mm in diameter. Average clast size is less than 10 mm in a fine grained porous matrix grading to igneous matrix, in proximity to related medium greenish grey quartz porphyry dykes. Most clasts are mineralized and include varieties of all rock types mentioned above with exception of post mineral dacite. Mineralization within the clasts is distinctly stronger than in the matrix and more diverse in style and intensity. Disseminated pyrite is the only sulfide within the diatreme matrix. Clasts inaddition display both chalcopyrite and molybdenite, disseminated and along fractures. Three clasts contain molybdenite mineralization of considerably higher grade than any observed at surface.

- 6 - ALTERATION AND MINERALIZATION Alteration and sulfide mineral zoning are well developed about a central core area some 800 feet in diameter. Strong magnetite mineralization both fracture controlled and disseminated characterizes core zone rocks, which also contain wide spaced quartz veinlets and less than 1% total sulfides. Outward an annular phyllic zone surrounds this core, wherein easily visible fracture related sericite is distinctive. Rocks of the phyllic zone are more highly fractured than those of the core and contain considerably more sulfide and quartz veinlets. Total sulfide content grades outward from 1% to 5% across the phyllic zone, while pyrite relative to chalcopyrite increases in ratios from 2:l to 50:l. Other mapable features are silicification grading from pervasive to fracture selvage alteration 1000 feet or more distant from the magnetite zone, and smaller zones of argillic alteration contained within the phyllic zone. Argillic alteration may in part be related to supergene processes especially north and east of the core where argillic alteration is associated with "live" limonite and areas of deepest oxidation. Molybdenite in association with chalcopyrite forms easily visible fracture coating within the inner part of the phyllic zone. It is strongest in the southeast and southwest quadrants coincident with a large area of pervasive silicification, which has given rise to hard dense flinty lithologies.

- 7 - Molybdenite has also been noted in three 10-15 mm clasts from the diatreme as seen in the core of diamond drill holes D72-1 and D72-6. While not noticed during field examination the molybdenite was subsequently discovered in 3 of 20 core samples collected during more detailed examination under better light conditions. One molybdenite bearing clast is strongly silicified and similar to the known surface exposures. The other two appear to be softer quartz-sericite altered rocks containing higher grade molybdenite - pyrite mineralization, unlike any observed at surface. Beyond the phyllic zone a strong pyritic zone is developed characterized by pyrite fracture fillings with coatings of chlorite but little visible chalcopyrite. This pyrite halo is horseshoe shaped open to the east, and is well defined by the I.P. high (plus 29 millisecond chargeability contour) shown on the accompanying geology map. Further outward alteration,intensity,fracturing and sulfide mineral content diminish gradually. Minor supergene copper enrichment in the form of chalcocite and cuperite has been reported, and tested by drilling. Maximum enrichment (sub-marginal grade) predictably occurs beneath flatter upland slopes and ridges where greater depths of oxidation and leaching are reported, and the occurrence of "livenlimonite in these areas suggests a multi-cycle enrichment history. Live limonite also appears to approximate the distribution of better-grade hypogene chalcopyrite mineralization internal to the pyrite halo.

- 8 - ROCK GEOCHEMISTRY AND ASSAYING Rock geochemical analyses and assays for copper and molybdenum (see map) are consistent with the zonal pattern previously described. Apparent exceptions are oxidized and partially leached samples which are anomalously low especially for copper values. Best hypogene copper grades are in the order of 0.1% Cu, and occur within the inner part of the phyllic zone external to the magnetite core. Strongly silicified rocks are characterized by better than average copper grades. Molybdenum appears to be even more closely restricted than copper,to the innermost phyllic zone. Sample 76C 366 (79 ppm Mo) is however a noteworthy exception which suggests that the quartz porphyry stock,southeast of the magnetite, may be associated with a second molybdenum high. Outcrops and sampling in the area is not sufficiently abundant to provide any real definition in that vicinity, but a nearby diamond drill hole - Q-3 also contained strongly anomalous Mo, and assays indicated a definite increasing grade trend with depth. INTERPRETATION The results of this examination have confirmed that no nearsurface target worthy of exploration is present at the YcBride Creek property. However it appears advisable to further consider the geology and zonal patterns described in the light of several conceptual models, before evaluating the possibility of deeper targets.

- 9 - In comparison to the Red Mountain porphyry copper model little if any similarities are present at McBri.de Creek. The rhyolitic volcanic succession and related quartz porphyry intrusives do not closely resemble the andesite - quartz monzonite - monzonite suite at Red Mountain. Futher if the McBride prospect is actually a porphyry copper system,strong arguments may be advanced to suggest that it represents a fairly deep level rather than high level of exposure. The 2:l ratio of pyrite to chalcopyrite in rocks of sub-marginal copper grade but pervasive quartz sericite (phyllic) alteration, external to magnetite bearing (barren-core) rocks is fairly typical of the innermost zones of most porphyry copper models. If ore grade copper is not encountered in such rocks little may be said to recommend deeper exploration. Copper grade would be more likely to diminish with depth. Comparison at the McBride Creek prospect with a deep model porphyry molybdenum deposit such as Henderson could be more rewarding. The moly porphyries are typically associated with siliceous rhyolite-quartz porphyry suites such as this,and the rock types at Henderson are closely similar. Also at Henderson high level chalcopyrite bearing and magnetite bearing shells occur, well above the Mo orebodies. Direct although tenuous evidence suggesting that deep seated molybdenum mineralization may be present has been found at McBride Creek, in the form of possible ore grade mineralized clasts in the diatreme. Further evaluation may be easily and relatively cheaply undertaken by further studying the geochemistry. Porphyry moly deposits typically have generally high background levels and strong zonal patterns in such elements as W, Sn, F that are amenable to rock geochemical study. The core from the diafcreme could also be re-examined to determine more precisely relative abundance and nature of molybdenum mineralization occurring therein as compared to surface mineralization. 4

- 10 - Less significant but noteworthy are the implications of re-interpretation as a diatreme, of rocks previously mapped as fragmental rhyolite volcanics. The age of the diatreme is interpreted as late-mineral, post copper-moly and inspection of the map leads to the interpretation that the diatreme is likely responsible for the incomplete, horseshoe shape I.P. high. It appears to have effectively "blown a hole" in the east side of the pyritic shell. A zone of potassic alteration, outlined by Sinclair, 1975 on the basis of considerable petroqraphic work, was presented as the likely alteration centre of the McBri.de Creek system. This xone, while centrally located, was found to be essentially co-extensive with the outcrop of a quartz monzonite stock interpreted to be of very late-mineral age. It is believed to be younger than the strong hydrothermal event which gave rise to the principal zonal patterns of alteration and mineralization. RECOMMENDATIONS The McBride Creek property of Prism Resources Ltd., warrants further geological work with the objective of establishing affinity with known porphyry molybdenum sulfide systems. The following should be done to provide a basis for additional exploration, specifically deep diamond drilling, if warranted. In this regard it should be noted that a 2200 foot difference in elevation exists between the floor of Ashnola River valley and the surface exposures of the central part of the system. For the purpose of mining a relatively short decline could be driven to reach an orebody 3000-4000 feet below the surface.

- 11-1) Detailed geological mapping of all outcrops combined with rock geochemical sampling, to thoroughly study the entire area internal to the pyrite halo. 2) Rock geochemical analysis for Cu-Mo-Pb-Zn-Sn-W-F with attention given to the degree of surface oxidation in interpretation. 3) Detailed examination of all available drill-core from the diatreme to study frequency of occurrence and style of molybdenum mineralization within the clasts. 4) If warranted, two or more 2000-3000 foot deep diamond drill holes based on results of foreqoing work. Respectfully submitted u James S. Christie, Ph.D. I. -

- 12 - STATEMENT OF EXPENDITURES 1) Property Mapping and Evaluation J.S. Christie October 17-22,1976 6 days @ $150/day $ 900.00 2) Preparation of Report, Maps, Illustrations J.S. Christie April 3-4,1977 2 days @ $150/day 300.00 3) Drafting,typing,duplication 4) Vehicle Rental - 4-wheel drive Blazer 1/4 month @ $750/month 145.00 188.00 5) Accomodation - motel 5 nights @ $18/niqht 90. 00 6) Food - 6 days @ $15/day 90.00 7) Geochemical analysis and Assays 120.00 $1,833.00 i

13 - CERTIFICATE I, James S. Christie of North Vancouver, British Columbia do hereby certify that. 1) I am a Professional Geologist residing at 191 Rondoval Crescent, North Vancouver, B.C. V7N 2W6. 2) I am a graduate of the University of British Columbia, B.Sc. Honours Geology - 1965, Ph.D. Geology - 1973. 3) I have practiced my profession as a mining exploration geologist, continuously since 1965. 4) I am a Fellow of the Geological Association of Canada. 5) I am a Member of the Geological Society of America. 6) I have no interest direct or indirect in any property of Prism Resources Limited nor do I expect to receive any such interest for writing this report. 7) This report is based on my persoanl knowledge of the district, an examination of the geology at the property and the literature cited. James S. Christie, Ph.D. April, 1977

- 19 - mferences 1) Cochrane D.R., Giroux, G., Scott, A., 1970, Geophysical and Geochemical Report on Prism Resources Ashnola Property. 2) Corn, R.M., 1975, Alteration-Mineralization Zoning, Red Mountain,Arizona. Econ Geol. V, 70, 1975, pp 1437-1447. 3) Lowell, J.D., 1968, Private Quintana Minerals Corporation Report on McBride Creek Deposit. 4) Montgomery, J.H., 1968, Report on Diamond drillinq of the St. Louis Project 10soyoos Mining Division, British Columbia for Quintana Minerals Corporation. 5) Montgomery, J.H., Cochrane, D.ROf and Sinclair, A.J., 1975, Discovery and Exploration of Ashnola Porphyry Copper Deposit, near Keremeos, B.C., a Geochemical Case History. 6) Rice, H.M.A., 1960, Geology and Mheral Deposits of the Princeton Map Area, British Columbia. G.S.C. Mem. 243.

COMPAP-~ Quintana Minerals.. 1 I. GEOCHEMICA~".INALYSIS DATA SHEET -ILL No.30 0 o.-..

COAfPA: PRO.IECT Nn a ATTENTION. Q u i 11 t an a M in e r a 1 s - J..Chr_i.s - _- GEOCHEMICAL 4LYSIS DATA S1.tZET MIN - EN Loboratoricr Ltd t-ie 705 WEST 15117 ST. NORTH VANCOUVER, 9 f. PHONE (604) 980-5814 V7M I r2 r NO. 3000. DATE: Nov* 8 3 1976.

705 WEST 15TH STREET NORTH VANCOUVER, B.C. Phonr: 980-5814 TO: Quintsna Ytneral Explorations, PROJECTN~. J. Christie 1215 - #2 Bcntall Centre, DATE NOV. 8/76. Vancouver. i3.c. File No.. 3000,f '...,. ' CERTIFIED wy-',.,2,.,... 6d.4....

To:- ana Minerals C o r w ion REPORTNo A2 927 PAGENo. BBNDAR-CLEW & COMPANY LTD. DATE: Nov 23, 1976 1215-555 Burrard Street Samples submitted: Nov 18, 1976 Vancouver, B.C. CERTIFICATE OF ASSAY Results completed: Nov 23, 1976 V7X 1M9-1