Prospecting Report on the Kate Project Omineca Mining Division Tenure Number: 654889
NTS: 093E/11W Latitude 55° 36’ N Longitude 127° 22’W UTM Zone: 09 (NAD83) Northing: 5940375 Easting: 607732
BC Geological Survey Assessment Report 33504
Work performed October 1, 2011 By Ken Galambos and Jason Wright
For Ken Galambos 1535 Westall Ave. Victoria, British Columbia V8T 3G6
Ken Galambos, P.Eng. KDG Exploration Services 1535 Westall Ave. Victoria, British Columbia V8T 2G6
June 6, 2012
Table of Contents TITLE Item 1: Item 2: 2.1 2.2 2.3 2.4 2.5 Item 3: Item 4: Item 5: Item 6: 6.1 Item 7: 7.1 7.2 7.3 Item 8: 8.1 8.2 8.2.1 8.2.2 Item 9: 9.1 9.2 Item 10: Item 11: Item 12: Item 13: Item 14: Item 15: 15.1 15.2 15.3 15.4 15.5 15.6 Item 16: Item 17: Item 18: Item 19: Item 20: Item 21: Item 22:
Summary……………………………………………………………………………..1 Introduction…………………………………………………………………………. 2 Qualified Person and Participating Personnel................................................. 2 Terms, Definitions and Units............................................................................ 2 Source Documents........................................................................................... 2 Limitations, Restrictions and Assumptions....................................................... 3 Scope............................................................................................................... 3 Reliance on Other Experts………………………………………………………… 3 Property Description and Location…………………………………………...…... 3 Accessibility, Climate, Local Resources, Infrastructure and Physiography….. 5 History……………………………………………………………………………….. 7 Sample Results…………………………………………………………………….. 8 Geological Setting and Mineralization…………………………………………….9 Regional Geology…………………………………………………………………... 9 Property Geology…………………………………………………………………. 11 Mineralization……………………………………………………………………....12 Deposit Types……………………………………………………………………... 12 Calc-Alkaline Porphyry Copper-Gold Deposits………………………………... 13 High and Low Sulphidation VMS Deposits…………………………………….. 13 Low Sulphidation VMS Deposits…………………………………………………13 High Sulphidation VMS Deposits……………………………………………..… 14 Exploration………………………………………………………………………….15 Current Evaluation Program……………………………………………………... 15 Prospecting Survey Results……………………………………………………... 16 Drilling……………………………………………………………………………… 16 Sample Preparation, Analyses and Security……………………………………16 Data Verification…………………………………………………………………... 17 Mineral Processing and Metallurgical Testing…………………………………. 17 Mineral Resource Estimates…………………………………………………….. 17 Adjacent Properties………………………………………………………………. 17 Huckleberry Mine (Minfile 093E 037, rev. Meredith-Jones, 2012)…………... 17 Berg (Minfile 093E 046, rev. Flower, 2009)………..………………………….. 18 Poplar (Minfile 093L 239, rev. Duffett, 1988)………..………………………… 18 Ox Lake (Minfile 093E 004, rev. Barlow, 1998)……………………………….. 19 Equity Silver (Minfile 093L 001, rev. Robinson, 2009)….…………………….. 20 Emerald Glacier (Minfile 093E 001, rev. Sweene, 2009)…………………..… 22 Other Relevant Data and Information…………………………………………... 22 Interpretation and Conclusions………………………………………………….. 22 Recommendations………………………………………………………………... 23 References………………………………………………………………………… 24 Date and Signature Page…………………………………………………………25 Statement of Expenditures………………………………………………………. 26 Software used in the Program……………………………………………………27 Appendicies……………………………………………………………………..… 28
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List of Illustrations Figure 1: Kate Property Location Map.…………………………………………..…………. 4 Figure 2: Kate Property Claim Map..………………………………………………..………. 5 Figure 3: Regional Geology map……………………………………………………..……....9 Figure 4: Property Geology map…………………………………………………………….12 Figure 5: Development of high-sulphidation versus low-sulphidation hydrothermal systems in a submarine setting in relation to the depth of emplacement of associated sub-volcanic intrusions (from Dubé et al., 2007; after Hannington et al., 1999)..…………………………………..……………………. 14 Figure 6: Geological setting of Au-rich high sulphidation VMS systems (from Dubé et al., 2007)…………………………………………………………………..……. 15 Figure 7: Sample location map……………………………………………………………... 16 List of Tables Table 1: Claim Data………………………………………………………………………….. 3 Table 2: Geology Legend…………………………………………………………………..... 9 Table 3: Sample Descriptions……………………………………………………………… 15 List of Photographs Plate 1: Satellite Image of Nat Project…………………………………………………….. 5 Plate 2: Google Image with overlay of claim coverage…………………………………...6 Plate 3: Jason Wright digging for outcrop……………………………………………….… 6 Plate 4: The author sampling outcrop near the Price showing……………………….…. 7
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Item 1.0: Summary The Kate property consists of one claim (25 cells) covering an area of 479.69ha, situated in west-central British Columbia on mapsheet 93E11W approximately 16km sowthwest of the Huckleberry mine site and 131km south of the community of Smithers, BC. The claims lie immediately west of Mt. Baptiste. The property is accessed via chartered helicopter from Smithers, Terrace or Houston. For the present program, access to the property was with a contract helicopter based in the Coles Creek camp approximately 14km southeast of the property. The claims lie within the Omineca Mining Division and are administered out of Smithers, BC. The Kate project area lies within the Stikinia Terrane, immediately east of the main granitic and metamorphic rocks of the Coast Plutonic Complex. Lower Jurassic Hazelton Group-Telkwa Formation calc-alkaline volcanic rocks and middle-Jurassic Smithers Formation undivided sedimentary rocks are the oldest rock units in the area. Overlying the Hazelton Group in the claim region and to the north are sediments of the Lower Cretaceous Skeena Group and a thick sequence of subaerial andesitic volcanic rocks of the Kasalka Group. Intimately related to Cretaceous volcanism are various quartz diorite and granodiorite intrusions grouped as Bulkley or Kasalka type. Block faulting, ring and radial faults, and subsequent intrusion by dykes and/or hydrothermal fluids may have affected a large part of the area between Tahtsa and Troitsa lakes where a large caldera, 22 km in diameter, is believed to have formed during Cretaceous volcanism. A large body of Eocene Coast Plutonic Complex intrusive rocks cores this collapse feature. The Kate property and Price showing, lie immediately east of this large pluton. Volcanic massive sulphide (VMS) and high level porphyry mineralization have been located on the property. Both styles of mineralization exhibited significant precious metal enhancement. The Price showing consists of a 2m x 0.5m pod of massive sulphides containing a weighted average from three chip samples of 14.6% Zn, 1.9% Cu, 0.33% Pb, 55gm/t Ag, 0.70gm/t Au and 5.42% As over 0.35m (Hanson, 1988) with values up to 905gm/t (26.4 oz/ton) Ag and 24.7gm/t (0.72oz/ton) gold reported from earlier programs (Cawthorn, 1983). Best results from a limited drilling program completed in 1989, included one intercept of 10.8m assaying 0.188% Cu, 37.5gm/t Ag and 0.925gm/t Au from a weakly altered and fractured ash tuff believed to be in the roof zone of an underlying porphyry system. A 1.1m section of this mineralization assayed 0.16% Cu, 21.0gm/t Ag and 3.82gm/t Au (Hanson, 1990). The Kate property has been held continuously by the author since 2009. The claims that are subject to this report are 100% owned by the author in partnership with Ralph Keefe and Shawn Turford of Francois Lake, B.C. It is the author’s belief that previous exploration programs on the Kate property and surrounding area suggest a potential for significant volcanic massive Prospecting Report on the Kate Project
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sulphide or porphyry style mineralization. These programs also failed to adequately test this potential. Additional exploration in the form of geological, geophysical and geochemical surveys and drilling is warranted to determine if one or more economic mineralized bodies are present within the existing property boundaries. On October 1, 2011, Ken Galambos and Jason Wright flew to the property from the nearby camp at Coles Creek in an attempt to locate and sample the massive sulphide showing that was not located the previous year. Access was gained by Jet Ranger helicopter, on hire from Canadian Helicopters from Smithers, BC and based at the Coles Creek camp. Due to snow conditions, only a small area could be sampled and the Price showing was again not located during the visit. Item 2.0: Introduction 2.1 Participating Personnel This report describes the property and is based on historical information and an examination and evaluation of the property by Ken Galambos and Jason Wright on October 1, 2011. 2.2 Terms, Definitions and Units All costs contained in this report are denominated in Canadian dollars. Distances are primarily reported in metres (m) and kilometers (km) and in feet (ft) when reporting historical data. GPS refers to global positioning system. Minfile showing refers to documented mineral occurrences on file with the British Columbia Geological Survey. The term ppm refers to parts per million, equivalent to grams per metric tonne (g/t). ppb refers to parts per billion. The abbreviation oz/t refers to troy ounces per imperial short ton. The symbol % refers to weight percent unless otherwise stated. 1% is equivalent to 10,000ppm. Elemental and mineral abbreviations used in this report include: arsenic (As), copper (Cu), gold (Au), lead (Pb), molybdenite (Mo), silver (Ag), zinc (Zn), pyrite (Py) chalcopyrite (Cpy) and pyrrhotite (Po). 2.3 Source Documents Sources of information are detailed below and include the available public domain information and private company data. Research of the Minfile data available for the area at http://www.empr.gov.bc.ca/Mining/Geoscience/MINFILE/Pages/default.as px Research of mineral titles at https://www.mtonline.gov.bc.ca/mtov/home.do
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Review of company reports and annual assessment reports filed with the government at http://www.empr.gov.bc.ca/Mining/Geoscience/ARIS/Pages/default.aspx Review of geological maps and reports completed by the British Columbia Geological Survey at http://www.empr.gov.bc.ca/Mining/Geoscience/MapPlace/MainMaps/Page s/default.aspx . Published scientific papers on the geology and mineral deposits of the region and on mineral deposit types. Work on the property by Ken Galambos and Jason Wright on October 1, 2011.
2.4 Limitations, Restrictions and Assumptions The author has assumed that the previous documented work in the area of the property is valid and has not encountered any information to discredit such work. 2.5 Scope This report describes the October prospecting program, geology, previous exploration history and mineral potential of the Kate Project, research including a review of the historical work that related to the immediate and surrounding area of the property. Regional geological data and current exploration information have been reviewed to determine the geological setting of the mineralization and to obtain an indication of the level of industry activity in the area. The property was examined and evaluated by Ken Galambos and Jason Wright and consisted of limited rock sampling of the available bedrock. Item 3: Reliance on Other Experts Some data referenced in the preparation of this report was compiled by geologists employed by various companies in the mineral exploration field. These individuals would be classified as “qualified persons” today, although that designation did not exist when some of the historic work was done. The author believes the work completed and results reported historically to be accurate but assumes no responsibility for the interpretations and inferences made by these individuals prior to the inception of the “qualified person” designation. Item 4.0: Property Description and Location The Kate claim group consists of one quartz claim consisting of 25 cells and covering an area of 479.69ha. A listing of the tenures covering the Kate project is contained in Table 1 below. Upon acceptance of this report for assessment purposes, the highlighted tenure will have its Expiry date moved to March 30, 2014. The property is situated in the Omineca Mining Division. Table 1 Claim Data Tenure # Claim name 654889
Issue date 19-Oct-2009
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Expiry date 30-March-2014
Registered Owner Galambos, Kenneth D
6/6/2012
Figure 1: Kate Property Location Map
Figure 1: Kate Property Location Map
The Claims comprising the Kate property as listed above are being held as an exploration target for possible hardrock mining activities which may or may not be profitable. Any exploration completed will be subject to the application and
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receipt of necessary Mining Land Use Permits for the activities recommended in this report. There is no guarantee that this application process will be successful.
Kate Property
Figure 2: Kate Property Claim map Item 5: Accessibility, Climate, Local Resources, Infrastructure and Physiography The Kate project area is situated in west-central British Columbia on mapsheet 93E11W approximately 16 km SW of the Huckleberry mine site and 131km south of the community of Smithers, BC. The claims lie immediately west of Mt. Baptiste. The property was accessed using a contract helicopter based in the Coles Creek camp approximately 14km southeast of the property. Alternatively, helicopters based in Terrace, Smithers or Houston could be used to gain access to the area. The claims lie within the Omineca Mining Division and are administered out of Smithers, BC.
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Plate 2: Google image, looking north, showing approximate claim coverage. Climate is transitional between that of the Coast Ranges and that of the Central Interior, with short cool summers, and long relatively mild winters. Annual temperature variation in the region is approximately -25 to +25 degrees Celsius. Snowpack in the winter ranges from approximately 1 to 4 metres, but has reached a maximum of 10 metres during the past 20 years. The operating season for ground based activities such as geological mapping, surface sampling and geophysical surveys would extend from approximately May to October. Lodging and groceries are available in the small community of Houston while nearby centers such as Smithers and Terrace Plate 3: Jason Wright digging for outcrop Prospecting Report on the Kate Project
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host regional airports serviced from Vancouver and businesses such as helicopter charter companies and building supply stores. Both communities support diamond drilling and exploration service companies and a pool of labour skilled in mining trades and professions. The immediate area to the project site contain adequate space for concentrator site, tailing ponds or waste dumps required in any contemplated mine operation. Power is available at the Huckleberry mine site, 16km to the NW. The general area of the Kate property is located in the Tahtsa Ranges near the north-western edge of the Interior Plateau, on the eastern flank of the Coast Mountains. The property covers the eastern side of a steep mountain peak and an ice field is situated at its extreme western edge. Much of the property lies above timber line which is situated at between 1250m and 1400m. Here, scrub alder, willow and dwarf balsam fir cover the hillside while lower in elevation, balsam fir and spruce dominate. Outcrop is scarce over much of the area beyond what is seen in the creek and along ridges at higher elevations. There is little or no exposure on the lower slopes below approximately 1300 m elevation or in the broad valley bottom to the east Plate 4: The author sampling outcrop near the Price showing. Item 6: History The first documented work in the area was a geochemical bulk silting program by Union Carbide. The first claims in the area were staked on behalf of Union Carbide Canada Limited in late 1982 and transferred to Canamax Resources Inc. the following spring. Canamax discovered a small massive sulphide lens in volcanic rocks on a creek that hosted a bulk silt anomaly as well as elevated values from a heavy mineral concentrate sampling program. The company conducted prospecting and collected 212 soil samples in six lines flanking the known sulphide mineralization in 1983 over various parts of the property but did not follow up on any of the anomalies produced. The ground lapsed and was acquired by Equity Silver Mines Ltd. in 1987 following an extensive heavy mineral sampling program completed the previous year targeting bulk mineable precious metal deposits. The best sample from the program was from a creek draining the Price showing and was highly anomalous in Mo, Cu, Zn, Pb, Ag, Au, As and Sb in all 7 fractions analyzed. Equity Prospecting Report on the Kate Project
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completed programs of prospecting and soil geochemical sampling in 1987 which expanded the area around anomalies previously discovered. The company drilled the property in 1989 with four BQTW core holes totaling 457.4m. Equity held the ground until 2000 when the claims were allowed to lapse. The property has been held by various individuals up until October 2009 when it was acquired by the author. A one day visit was made to the property by the author in 2010 to do an initial assessment of the mineralization previously located by others. The Price showing was not located. 6.1 Sample Results Previous exploration programs located massive sulphide mineralization in volcanic rocks. The main Price showing consists of a 2m x 0.5m pod of massive sulphides with a weighted average from three chip samples of 14.6% Zn, 1.9% Cu, 0.33% Pb, 55gm/t Ag, 0.7 gm/t Au and 5.42% As. Values up to 135ppm Mo, 2.48% Pb, 905gm/t Ag and 24.7gm/t Au were reported in earlier programs over a 300m distance surrounding the Price showing. Silt geochemical surveys identified additional anomalous drainages, 300m west (112ppm Pb, 740ppm Zn, 0.8ppm Ag) and 1000m west (64ppm Pb, 176ppm Zn) of the Price showing. The main creek draining known mineralization returned 62ppm Pb and 188ppm Zn. Soil surveys outlined a number of anomalies in both base and precious metals. Initial surveys outlined three anomalies, a weak Pb-Zn anomaly over an area 200 x 100m west of the showing, a weak Ag (+/- Cu, Zn) over a 200 x 500m area to the north and a weak Ag-Zn-Mo anomaly to the south. A single sample Au anomaly of 230ppb was located approximately 200m north of the Ag (Cu, Zn) anomaly. Follow up geochemical surveys outlined an additional four anomalies. A weak As anomaly, which remains open to the north and east, lies approximately 750m south of the main showing. A high Zn-As with moderate CuSb (+/- Ag, Pb) remains open to the east is situated 500m NE of this mineralization. Moderate and weak Zn anomalies were located approximately 1000m south of the main zone. Best results from the 1989 drilling program included one intercept of 10.8m assaying 0.188% Cu, 37.5g/t Ag and 0.925g/t Au from a weakly altered and fractured ash tuff believed to be in the roof zone of an underlying porphyry system. A 1.1m section of this intercept assayed 0.16% Cu, 21.0gm/t Ag and 3.82gm/t Au. The 2010 program did not located the massive sulphide showing but values of 0.204g/t Au and 666ppm As were returned from a rusty and silicified andesite containing several percent pyrite. This sample was located roughly 300m west of the Price showing.
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Item 7: Geological Setting and Mineralization 7.1 Regional Geology The Kate project area lies within the Stikinia Terrane, immediately east of the main granitic and metamorphic rocks of the Coast Plutonic Complex. Lower Jurassic Hazelton Group-Telkwa Formation calc-alkaline volcanic rocks and middle Jurassic Smithers Formation undivided sedimentary rocks are the oldest rock units in the area. Overlying the Hazelton Group in the claim region and to the north are sediments of the Lower Cretaceous Skeena Group and a thick sequence of subaerial andesitic volcanic rocks of the Kasalka Group. Intimately related to Cretaceous volcanism are various quartz diorite and granodiorite intrusions grouped as Bulkley or Kasalka type. MLJG
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Figure 3: Regional Geology map Block faulting, ring and radial faults, and subsequent intrusion by dykes and/or hydrothermal fluids may have affected a large part of the area between Tahtsa and Troitsa lakes where a large caldera, 22 km in diameter, is believe to have formed during Cretaceous volcanism. A large body of Eocene Coast Plutonic Complex (?) intrusive rocks core this collapse feature. The Kate property and Price showing, lie immediately east of this large pluton. Table 2: Geology Legend Eocene EBo
Boundary Stock: granodioritic intrusive rocks
Eqp
high level quartz phyric, felsitic intrusive rocks
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Coast Plutonic Complex(?) Eg
intrusive rocks, undivided
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rhyolite, felsic volcanic rocks
Cretaceous Kasalka Group uKK
andesitic volcanic rocks
Late Cretaceous LKgd
granodioritic intrusive rocks
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dioritic intrusive rocks
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feldspar porphyritic intrusive rocks
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granodioritic intrusive rocks
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Ashman Formation: mudstone, siltstone, shale fine clastic sedimentary rocks
Middle Jurassic to Late Jurassic Gamsby Complex
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MLJG
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marine sedimentary and volcanic rocks
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greenstone, greenschist metamorphic rocks
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marine sedimentary and volcanic rocks Ministry of Forests, Mines and Lands BC Geological Survey
7.2 Property Geology The Kate property is underlain, in large part, by lower-Cretaceous Skeena Group Mt. Ney undivided volcanic rocks and undivided sedimentary rocks; and upperCretaceous Kasalka Group andesitic volcanic rocks. Intruding into these rocks is a large Eocene intrusive stock of the Coast Plutonic Complex (?). The younger intrusive has domed the overlying rocks and created a fabric of ENE and NNW faults. Some of the NE structures appear to have been pre-existing as evidenced
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by the late-Cretaceous Kasalka Plutonic Suite, granodioritic intrusive rocks present immediately east and south of the property.
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7.3 Mineralization Alteration and mineralization seen from previous exploration programs included small zones of sulphide mineralization occurring in the volcanic rocks exposed in the main creek. These podiform and fracture filling mineralization is comprised primarily of pyrite and pyrrhotite with minor chalcopyrite and sphalerite. The main Price showing consists of a 2m x 0.5m pod of massive sulphides containing a weighted average from three chip samples of 14.6% Zn, 1.9% Cu, 0.33% Pb, 55gm/t Ag, 0.70gm/t Au and 5.42% As over 0.35m with values up to 905gm/t Ag and 24.7gm/t gold reported in earlier programs. Best results from the limited 1989 drilling program included one intercept of 10.8m assaying 0.188% Cu, 37.5gm/t Ag and 0.925gm/t Au from a weakly altered and fractured ash tuff believed to be in the roof zone of an underlying porphyry system. A 1.1m section of this intercept assayed 0.16% Cu, 21.0gm/t Ag and 3.82gm/t Au. Item 8: Deposit Types The most important mineral occurrences in the area of the Property are goldbearing porphyry copper deposits associated with the late Cretaceous Bulkley Plutonic Suite granodiorite and quartz diorite intrusive rocks and Eocene Nanika Plutonic Suite quartz monzonite intrusions. The nearby, Huckleberry mine and many major prospects are located in the same assemblage of rocks as the Prospecting Report on the Kate Project
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Property. There is also low sulphidation epithermal VMS potential with silverlead- zinc mineralization similar to that at the New Moon prospect in LowerMiddle Jurassic Hazelton Group rocks. The formerly producing Silver Queen mine is classified as a polymetallic Ag/Pb/Zn +/- Au vein and occurs in upper Cretaceous to Eocene Endako Group volcanics associated with late Cretaceous Bulkley Plutonic Suite felsic to basaltic dykes and sills. The most important focus for exploration on the Property is for calcalkaline porphyry copper-gold deposits. 8.1 CALCALKALINE PORPHYRY COPPER-GOLD DEPOSITS According to Panteleyev (1995), Volcanic-type Calcalkaline Porphyry Coppergold deposits are characterized by stockworks of quartz veinlets and veins, closely spaced fractures, disseminations and breccias, containing pyrite and chalcopyrite with lesser molybdenite, bornite and magnetite, occurring in large zones of economically bulk mineable mineralization, in or adjoining porphyritic stocks, dikes and related breccia bodies. Intrusions compositions range from calcalkaline quartz diorite to granodiorite and quartz monzonite. Commonly there are multiple emplacements of successive intrusive phases and a wide variety of breccias. The mineralization is spatially, temporally and genetically associated with hydrothermal alteration of the host rock intrusions and wallrocks. Propylitic alteration is widespread and generally flanks early, centrally located potassic alteration which is commonly well mineralized. Younger mineralized phyllic alteration commonly overprints the early mineralization. Barren advanced argillic alteration is rarely present as a late, high-level hydrothermal carapace. Ore controls include igneous contacts, both internal between intrusive phases, and external with wallrocks; dike swarms, breccias, and zones of most intense fracturing, notably where there are intersecting multiple mineralized fracture sets. Porphyry Cu-Au deposits have been the major source of copper for British Columbia, and a significant source of gold. Median values for 40 B.C. deposits with reported reserves are: 115 Mt with 0.37 % Cu, 0.01 % Mo, 0.3g /t Au and 1.3 g/t Ag. 8.2 HIGH AND LOW SULPHIDATION VMS DEPOSITS Analogous to epithermal precious metal deposits, volcanogenic massive sulphide (VMS) deposits are recently recognized to occur in two associations: high- and low sulphidation. High sulphidation VMS have been only recently recognized in the geological record, and are notable for their exceptionally high grades of gold and silver, in addition to their base metal content. 8.2.1 LOW SULPHIDATION VMS DEPOSITS Based on the mineralogical classification used for epithermal deposits, the majority of volcanogenic massive sulphide (VMS) deposits, could be classified as low sulphidation. These VMS deposits formed from an ore fluid that was
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dominated by modified seawater, and as with low sulphidation epithermal deposits, evidence for magmatic contributions to these systems is limited. 8.2.2 HIGH SULPHIDATION VMS DEPOSITS Certain VMS deposits and seafloor occurrences contain mineralogy that suggests that a high sulphidation classification is appropriate. These high sulphidation VMS deposits probably formed from magmatic hydrothermal systems that were active in submarine settings. High sulphidation deposits form in magmatic-hydrothermal systems according to Thompson (2007). In a similar manner, Dubé et al. (2007) describe a class of deposits that are a subtype of both volcanogenic massive sulphide (VMS) and lode gold deposits, namely goldrich VMS deposits. Like most VMS deposits, they consist of semi-massive to massive, concordant sulphide lenses underlain by discordant stockwork feeder zones. They have diverse geochemical signatures dominated by Au, Ag, Cu and Zn and often accompanied by elevated concentrations of As, Sb, Pb, Te and Hg. Figures 5 and 6 demonstrate schematically the geological and spatial characteristics of these types of VMS deposits. High-sulphidation VMS deposits can also be described as shallow submarine hot spring deposits. They are represented by stratiform Au-Ag barite deposits, pyritic Cu-Au stockworks, and auriferous polymetallic sulfides.
Figure 5: Development of high-sulphidation versus low-sulphidation hydrothermal systems in a submarine setting in relation to the depth of emplacement of associated sub-volcanic intrusions (from Dubé et al., 2007; after Hannington et al., 1999)
Prospecting Report on the Kate Project
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Figure 6: Geological setting of Au-rich high sulphidation VMS systems (from Dubé et al., 2007). Item 9: Exploration 9.1 Current Evaluation Program A brief one day visit was made to the Kate claims. An effort was made to locate and sample the Price showing but due to heavy snow conditions, the showing was not located. Sampling of available outcrops near the suspected location of the massive sulphide lens was completed. Two samples were collected during the visit and are summarized in the table below. GPS coordinates are relative to UTM Zone 09 (NAD 83) Table 3 Sample descriptions Sample # UTM UTM northing easting 1043951 5940328 0607721 1043952
5940368
0607732
Prospecting Report on the Kate Project
Sample description OC grab, rusty weathering, medium greygreen andesite (tr-1% Py) OC grab – rusty weathering, light greygreen andesite with numerous rusty fractures (tr Py)
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896274 896274
N
5941000
42452- 0.0097, 0.84, 0.204, 1.53, 666
654889 654889
x PRICE x
608000
607000
1043952 - 0.024, 0.76,