36' - British Columbia

REPORT OF DIAMOND DRILLING

on t h e

TROUT LAKE PROPERTY

R e v e l s t o k e Min ing D i v i s i o n , B.C.

by

T.N. MACAULEY, P . ENG.

O c t o b e r 11, 1 9 7 8

LOCATION: 4 km West o f T r o u t Lake V i l l a g e L a t . 50' 38 ' , Long. 117' 36' N.T.S. 8 2 Kj12 E

CLAIMS: Lucky Boy a n d Copper C h i e f p r o p e r t y , i n c l u d i n g Lucky J a y , Rove r , and TL g r o u p s

Owners o f C l a i m s : A.E. Marlow and R . M . Oakey

TABLE OF CONTENTS

Page No .

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Location and Access

. . . . . . . . . . . . . . . . . . . . . History Work Summary . . . . . . . . . . . . . . . . . . Survey Control . . . . . . . . . . . . . . . . . Claims . . . . . . . . . . . . . . . . . . . . .

Technical Data . . . . . . . . . . . . . . . . . . . . Purpose . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . Work Done . . . . . . . . . . . . . . . Drill Hole Surveys

Abbreviations Used in Core Logging at Trout Lake . Drill Log Hole 78-1 . . . . . . . . . . . . . . . Drill Log Hole 78-4 . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . Interpretation . . . . . . . . . . . . . . . . . . . Conclusions

. . . . . . . . . . . . . . . . . . Statement of Costs 100

Statement of Qualifications . . . . . . . . . . . . . 103

M A P S

. . . . . . . . . . . . . . . . . . . . . . IndexMap 2

Drill Hole Locations . . . . . . . . . . . . . . . . . 104

INTRODUCTION

Location and Access

The Trout Lake property i s loca ted i n t h e Se lk i rk Mountains of south-

e a s t e r n B r i t i s h Columbia, 4 km west of Trout Lake v i l l a g e , a t t h e no r th end of

TruuL Lake (See Index Map, page 2 ) . The l a t i t u d e i s 50' 38' N , longi tude i s

117 ' 36' W , N.T.S. i s 82 K/12 E.

The proper ty l i e s on t h e no r th f l ank of Trout Mountain, and i s approx-

imately bounded t o the NW and NE by Wilkie Creek. The a rea i n which the work

was performed l i e s a t the 4500' (1400 m) e l eva t ion , where the bedrock i s

covered by a t h i n mantle of g l a c i a l t ill and a mature f o r e s t of con i f e r s .

Access i s by 84 km of road from e i t h e r Nakusp o r Revelstoke. From

Highway 31 a t 7 km NW of Trout Lake, a system of logging roads l eads t o t h e

p rope r ty , where a 4 wheel d r i v e veh ic l e i s necessary t o use t h e d r i l l roads.

History

This proper ty has been known f o r years a s t h e Lucky Roy and Copper

Chief , t h e names of two p r i n c i p a l claims s taked i n 1901 and 1897. Early pros-

pec t ing and development work was concentrated on small s i lver -hear ing qua r t z

ve ins , as evidenced by numerous open c u t s , p i t s , and a d i t s . I n 1942-53

scheel i te -bear ing skarns were explored f o r tungsten. I n 1969-70 Cascade Molyb-

denum Mines explored f o r molybdenite by mapping, bul ldozer t renching , and

diamond d r i l l i n g .

I n 1975 t h e c e n t r a l claims were optioned by Newmont Explorat ion of

Canada Limited from A.E. Marlow and R.M. Oakey. I n 1976 a j o i n t venture between

Newmont and Esso Minerals Canada was formed f o r f u r t h e r explora t ion of the

proper ty . D r i l l i n g during t h e l a s t t h r e e yea r s has ind ica t ed a s i g n i f i c a n t

zone of molyhdenite mine ra l i za t ion . Fur ther d r i l l i n g i s requi red t o properly

determine i t s economic importance.

NEWMONT EXPLORATION OF CANADA LTD.

so Vn. '

INDEX MAP (82K 1 2 E )

Work Summary

Two diamond d r i l l holes t o t a l l i n g 2267 metres (7437 f e e t ) i n length

a r e being repor ted . Both holes were s t a r t e d a t HQ s i z e , subsequently reduced

t o N Q , and one was f u r t h e r reduced t o BQ. Lengths of each s i z e a r e s t a t e d on

the f i r s t page of each log. Core diameter of HQ i s 63.5 mm, NQ 47.6 nun, and

BQ 36.5 mm. The core i s s t o r e d on t h e property i n t h e log bu i ld ing a t the

Lucky Boy mine, loca ted on the main access road i n t o t h e d r i l l a r ea .

Survey Control

The loca t ions of d r i l l ho le c o l l a r s were determined by t r a n s i t sur-

vey. They a r e t i e d i n t o Crown Grant claim corners t h a t were found from t h e

o r i g i n a l bearing t r e e s . Located claims were t i e d i n t o the t r a n s i t survey by

tape and compass survey. The base e l eva t ion was c a r r i e d by a l t i m e t e r from

the bench mark a t Trout Lake t o the o r i g i n poin t of t h e g r i d . Three types of

down-the-hole surveys were c a r r i e d out on t h e d r i l l h o l e s , the r e s u l t s of

which a r e discussed l a t e r i n t h e r epor t . A l l bearings i n t h i s r epor t a r e with

r e spec t t o astronomic no r th .

Claims

The d r i l l i n g repor ted he re was done on t h e fol lowing claims: CH Crown

Grant (L4741), Anex, Lucky Jay Nos. 1 and 6, Copper Chief Moly, and Copper Chief

Moly No. 1. These claims form p a r t of a l a r g e proper ty , whose p r i n c i p a l c laim

groups a r e the Lucky Jay , Rover, TL, Fog, and some Crown Grants.

TECHNICAL DATA

Purpose

The purpose of t h e d r i l l i n g repor ted was t o explore a t depth a molyb-

den i t e depos i t t h a t i s known a t higher l e v e l s from previous d r i l l i n g .

Work Done

The r e s u l t s of t h e d r i l l i n g a r e presented i n t h e fol lowing logs fo r

t h e two ho les . As w e l l as t h e usual d e s c r i p t i v e notes they inc lude graphic

logs drawn t o s c a l e f o r l i t h o l o g y and s t r u c t u r e , q u a n t i t a t i v e es t imates of

a l t e r a t i o n minerals and su lphides presented i n ba r graph form, and a f r a c t u r e

i n t e n s i t y count f o r each 10 foot length . These f r a c t u r e s a r e usua l ly f i l l e d

with qua r t z v e i n l e t s and may have a s soc ia t ed molybdenite mine ra l i za t ion . Due

to t h e l imi t ed space a v a i l a b l e on a log done t o s c a l e , i t was necessary t o use

smal l p r i n t i n g and abbreviations--a legend f o r which immediately precedes the

d r i l l logs . The d r i l l ho le coordinates and o t h e r p e r t i n e n t information i s

found on t h e f i r s t page of each log. Their l oca t ions wi th r e spec t t o claim

boundaries and topography a r e shown on Map 2 . The wages shown f o r t h e geo-

l o g i s t and an a s s i s t a n t i n the Statement of Costs represent time e n t i r e l y

spent on core logging, su r face and down-the-hole surveys , s p l i t t i n g core

samples and d r i l l superv is ion . Samples were assayed a t Chemex Labs Ltd. i n

North Vancouver, B . C . The d r i l l i n g was done under con t rac t by Canadian Longyear

Ltd.

A s t h e d r i l l i n g con t rac to r used a 10 foo t core b a r r e l and t h e ho le

length on wooden blocks i n t h e core boxes was shown i n f e e t , logging was done

i n f e e t , no t metres . Furthermore, due t o t h e l a r g e volume of previous da ta

on t h i s prospect , a l l of which i s i n Imperial u n i t s , i t i s necessary t o con-

t i n u e using Imperial u n i t s f o r t h e remainder of the explora t ion s t age .

I t should be noted t h a t although t h e length of t h e f i r s t d r i l l ho le

i s shown a s 4000 f e e t (1219.2 m), 4508 f e e t (1374 m) were a c t u a l l y d r i l l e d i n

t h i s hole . The reason i s t h a t two wedging opera t ions were c a r r i e d out a t some

d i s t ance o f f t h e bottom of t h e hole . Af ter each one the number of the ho le

was changed from 78-1 t o 78-1A and then t o 78-1B.

D r i l l Hole Surveys

The long inc l ined holes were d r i l l e d t o t e s t s p e c i f i c t a r g e t a reas

under o the r d r i l l i n g , and hence measuring and c o n t r o l l i n g t h e i r d i r e c t i o n were

important aspec ts of t h e p r o j e c t . Three types of down-the-hole surveys were

done.

The hydrof luor ic ac id b o t t l e technique, g iv ing only t h e d i p of t h e

h o l e , was used a t c e r t a i n i n t e r v a l s .

The Sperry Sun Single Shot Magnetic device was used rou t ine ly a t

i n t e r v a l s of 100 t o 300 f e e t i n t h e hole . It measures bear ing a s w e l l as d ip .

A s i t i s a compass-type instrument i t i s a f f e c t e d by magnetic minerals i n the

rock. However, readings were f a i r l y cons i s t en t and only a few were disregarded

as e r r a t i c .

The Sperry Sun Gyrocompass survey g ives r e s u l t s t h a t a r e e n t i r e l y

independent of su r face surveying o r magnetic a t t r a c t i o n . The instrument and

i t s opera tors had t o come from Edmonton, Alber ta , p r i o r t o completion of each

ho le . Readings were taken a t 100 foo t i n t e r v a l s and then processed by com-

pu te r t o give a t a b l e of coordinates f o r each reading and a p l o t of the hor i -

zon ta l p ro jec t ion of t h e hole . The t a b l e follows t h e log of each hole and

the p l o t has been used on Map 2 . Despi te s e v e r a l a t tempts , i t was impossible

t o survey 78-1B below 3000 f e e t , because t h e BQ rods allowed only a f i n e t o l e r -

ance f o r t h e survey probe. The gyro l o s t i t s s p i n by t h e time t h e instrument

probed t h i s gently-dipping por t ion of t h e hole .

I n summary, i t was found t h a t t h e holes s tayed f a i r l y s t r a i g h t i n

bearing and shallowed i n d ip . However, t h e r e i s a cons i s t en t discrepancy

between the Single Shot and Gyro surveys , s o p l o t s of both methods a r e shown

on Map 2 .

abund accomp act adj aft agglom alb alt'd alt'n am t ang anh ank aph aPP arg ass avg bdly bio bkn b tm RXCR bxx Ca carb C /A c.g. chlor compo conc , concen conf , conf orm consid consist corrod CP cren'd crys def deform desc dev diff disrupt

-6-

ABBREVIATIONS USED IN CORE LOGGING AT TROUT LAKE

abundant accompanies, accompanied actinolite adjacent after agglomeration albite altered alteration amount angular anhedral ankerite aphanitic appearance argillite associated average badly biotite broken bottom broken core brecciated, brecciation calcium carbonate core axis coarse grained chlorite composition concentrated, concentration

conformable considerable consistent corroded chalcopyrite crenulated crystals definite deformation described developed difficult disrupted

diss dist d k dolo dom env esp es s es t euh exP ex t f eld f .g. fol fra freq ga garn G.D. gdms gen gen' tn

gra grad gran hbld imm incip inclu indist indiv inf req inject irr, irreg lam k? lms t 1 t mass med m.g. minl minl'zd minl' zn

disseminated, disseminations distinct dark dolomite dominantly envelope especially essentially estimate euhedral explanation extensive feldspar fine grained foliated, foliation fracture frequent galena garnet granodiorite groundmass general, generally generation graphite gradual, gradational granular hornblend immediately incipient inclusion indistinct individual infrequent injections

irregular laminated, lamination large limestone light massive medium medium grained mineral mineralized mineralization

(Continued)

mod moderate mo , moly molybdenite mus, musc muscovite num numerous o b l i t o b l i t e r a t e O C C occas ional ly o r i g o r i g i n a l , o r i g i n a l l y or tho o r thoc la se p a r t p a r t i c u l a r l y PCS pieces perv pervasive pheno phenocrysts ~ 1 % plag ioc la se P O p y r r h o t i t e P O ~ P porphyry, po rphyr i t i c poss p o s s i b l e , poss ib ly pref p r e f e r e n t i a l l y prob probably, probable prom prominent

PY p y r i t e PYX proxene q t z qua r t z q t z i t e q u a r t z i t e Qtz Dior ,

QD , quar tz d i o r i t e Q Dior

r eg r egu la r r e 1 r e l a t i v e r ep lac replacement sauss s a u s s u r i t e ,

s a u s s u r i t i z a t i o n s e c s e c t i o n sed sediment s e r s e r i c i t e s e r p se rpen t ine sch s c h i s t s c h l s c h e e l i t e

s i l

s i m s kn s l t s m s m t m sph s t r u s twk sub-hed sugg s u l s u r f s u r r suscept t e x t v w w/o wk

s i l i c a , s i l i c e o u s , s i l i c i f i e d

s i m i l a r skarn s l i g h t small sometimes s p h a l e r i t e s t r u c t u r e stockwork subhedral suggests su lphides su r face surrounding s u s c e p t i b l e t e x t u r e very wi th without weak

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X-cut c r o s s c u t t i n g , c ros scu t s

/ / p a r a l l e l

1 perpendicular

OF CANADA LIMITED

.. . DRILL LOG

'ROJECT

TROUT LAKE +OLE NO.

78 - 7 -7A , -7B I

)ATE COMPLETED

OMMENTS

BEARING

245" er ~ 6 5 ~ ~ DIP sf$ '

- 75" 1 '$1 9

TOTAL LENGTH 6.

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HORIZONTAL PROJECT # * , c

absent

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78 -+ LOCATION

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TOTAL LENGTH

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absent

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TOTAL SULPHIDE SCALE

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I n t e r p r e t a t i o n

The l i t h o l o g i e s i n t e r s e c t e d by these d r i l l ho les a r e metasedimentary

rocks of t h e Lardeau Group (Cambrian t o Devonian o r o lde r ) t h a t have been

in t ruded by a small s tock of dykes of g ranod io r i t e . The c l a s t i c s a r e repres-

ented by u n i t s t h a t have been logged a s a r g i l l i t e , impure q u a r t z i t e , b i o t i t e -

c h l o r i t e - s c h i s t , s i l i c e o u s s c h i s t , e t c . The carbonates a r e white t o grey

l imestone and dolomite, i n p laces a l t e r e d t o a d iops ide -ac t ino l i t e skarn. So

f a r as can be determined, t h e metasediments have t h e same a t t i t u d e as mapped

on s u r f a c e ; i . e . , s t r i k e northwester ly and d ip 50-80' NE.

The i n t r u s i o n i s a f i n e t o medium gra ined , grey, po rphyr i t i c grano-

d i o r i t e . A darker , l e s s a l t e r e d phase has been logged as qua r t z d i o r i t e . The

i n t r u s i v e rocks present i n t h e c e n t r a l t o lower por t ions of these two ho les

a r e downward extens ions of those exposed a t s u r f a c e , but i n s u f f i c i e n t da ta a t

t h i s depth l e v e l does not j u s t i f y specu la t ion on t h e s i z e or shape of t h e in -

t ru s ion . None of the previous d r i l l i n g o r su r face mapping obtained such a

length of g ranod io r i t e a s t h a t i n 78-4 (from 1085' t o end of ho le a t 2929') .

A major f a u l t a t 1024-1085' i n 78-4 and 2466-2506' i n 78-1B bounds

t h e i n t r u s i o n on t h e e a s t s i d e . Lesser f a u l t s of unknown a t t i t u d e occur i n

metasediments t o t h e e a s t .

Cutt ing t h e c e n t r a l t o lower por t ions of these holes i s a stockwork

of qua r t z v e i n l e t s , wi th which i s assoc ia ted molybdenite mine ra l i za t ion . Other

su lphides accompanying molybdenite, and a l s o occurr ing by themselves, a r e

p y r i t e and p y r r h o t i t e . Traces of cha lcopyr i t e , galena, s p h a l e r i t e , and schee-

l i t e have r a r e l y been i d e n t i f i e d .

Conclusions -

The r e s u l t s of these holes taken together with previous d r i l l i n g

j u s t i f y t h e continued explora t ion of t h i s prospect .

A more d e t a i l e d i n t e r p r e t a t i o n of s t r u c t u r e and mine ra l i za t ion t rends

i s not f e a s i b l e u n t i l (a ) more deep d r i l l i n g i s done, (b) t h e problem of loca-

t i o n of d r i l l ho le s (as shown by t h e var ious types of surveys) i s resolved ,

-99-

and (c) a s e t of c l o s e l y spaced geologica l s e c t i o n s i s prepared.

T . N . Macauley, P. Eng. V

Vancouver, B . C.

October 11, 1978

STATEMENT OF COSTS

The f o l l o w i n g i s a s t a t e m e n t o f d i r e c t c o s t s o f t h e work d e s c r i b e d i n t h i s r e p o r t . The work was c a r r i e d o u t from May 3 t o J u l y 21, and August 9 t o September 1 2 , 1978--a t o t a l of 85 days . R e c e i p t s a r e a v a i l a b l e t o v e r i f y a l l c o n t r a c t e d s e r v i c e s .

DIAMOND DRILLING $299,876.75

Based on 7437 f e e t , o r 2267 m e t r e s , t h e c o s t p e r f o o t i s $40.32 and t h e c o s t p e r me t re i s $132.28

D r i l l i n g c o s t s are u n u s u a l l y h i g h due t o :

( a ) b roken c a v i n g ground i n 78-1 r e q u i r i n g e x t e n s i v e reaming and cementing o p e r a t i o n s ;

(b) f o u r wedging o p e r a t i o n s i n 78-1 t o r educe t h e d i p of t h e h o l e ;

(c) t h e l o s s of 2470 f e e t of d r i l l r o d s s t u c k i n h o l e s ;

( c ) p a r t i a l t o complete l o s s of c i r c u l a t i o n i n bo th h o l e s r e q u i r i n g c o n t i n u a l r e p l a c e - ment of d r i l l i n g mud and a d d i t i v e s .

DRILL HOLE SURVEYS

( a ) Sper ry Sun S i n g l e Sho t i n s t r u m e n t r e n t a l 85 days @ $23.10/day

(b) Sper ry Sun Gyroscope s u r v e y s

ASSAYING

460 a s s a y s f o r MoS2 @ $5.40

20 a s s a y s f o r W 0 3 @ $8.10

WAGES

G e o l o g i s t , 85 d a y s , @ $58.20/day A s s i s t a n t , 85 d a y s , @ $34.90/day

FOOD AND ACCOMMODATION

Meals i n c l u d e d i n d r i l l i n v o i c e s a t $5.00 each T r a i l e r and t e n t accommodation, 85 days @ $8.33

C a r r i e d forward $318,598.10

STATEMENT OF COSTS (Cont 'd)

Brought fo rward $318,598.10

TRUCK RENTAL (4 wheel d r i v e )

85 days @ $22/day

TRUCK FUEL -- FREIGHT ON SAMPLES - R e v e l s t o k e t o Nor th Vancouver

BULLDOZER RENTAL

Road b u i l d i n g , s i t e p r e p a r a t i o n , moving, s t a n d b y (D6 @ $ 2 5 / h r , D8 @ $50/hs)

CORE STORAGE

Lumber, s t e e l b a r s , c o n t r a c t l a b o u r

REPORT PREPARATION

W r i t i n g , d r a u g h t i n g , t y p i n g , p r i n t i n g

TOTAL COST OF WORK $332,958.24

ASSIGNMENT OF COSTS TO THE 4 CLAIM GROUPS -

T o t a l c o s t o f work a s s t a t e d on t h e S ta tements o f E x p l o r a t i o n and Development i s $323,642.24. T h i s amount d i f f e r s from t h e T o t a l Cost of Work shown i n t h e accompanying "Sta tement of Costs" because some of t h e c o s t s had t o be e s t i m a t e d when assessment work was f i l e d on September 1 3 , 1978. T h i s amount was a p p o r t i o n e d between t h e 4 c l a i m groups i n r a t i o of t h e h o l e l e n g t h d r i l l e d on t h a t group t o t h e t o t a l h o l e l e n g t h d r i l l e d .

TROUT 1 GROUP - d r i l l i n g done on CH Crown Gran t

78-1 2536 f e e t 78-4 1600

4136 f e e t -- Cost o f work on group: - 4136 x $323,642.24

7437 $179,982.72

TROUT2 GROUP - d r i l l i n g done on Lucky Jay No. 1 and Copper Chief moly c la ims was from 2028' t o 3410' i n 78-1, a t o t a l of 1.382 f e e t

Cost o f work on group: - 13" x $323,642.24 7437

TROUT 3 GROUP - d r i l l i n g done on Lucky J a y No. 6 and Copper Chief Moly No. 1 c l a i m s was from 3410' t o 4000' i n 78-1, a t o t a l of 590 f e e t

Cost of work on group: -- 590 x $323,642.24 7437

TROUT 4 GROUP - d r i l l i n g done on Anex c l a i m was from 1600' t o 2929' i n 78-4. a t o t a l of 1329 f e e t

Cost o f work on group: - 1329 x $323,642.24 7437

STATEMENT OF QUALIFICATIONS

I , H . Craig Boyle, do hereby c e r t i f y t h a t :

1. I graduated i n geologica l engineering from t h e Univers i ty of B r i t i s h Columbia i n 1975.

2 . I am r e g i s t e r e d a s an Engineer-in-Training with t h e Associat ion of P ro fes s iona l Engineers of B r i t i s h Columbia.

3. I have been employed by Nemont Explorat ion of Canada Limited s i n c e February, 1976.

4 . I have logged the d r i l l core described i n t h i s r e p o r t , a s we l l a s t h a t from most of the previous d r i l l i n g on t h i s property.

&yA- 7-

H. C . Boyle

I , Terrence N . Macauley, do hereby c e r t i f y t h a t :

1. I am a geologica l engineer (B.Sc. Queen's Univers i ty , 1958; M.Sc. Michigan Technological Univers i ty , 1962).

2. I am a member of the Associat ion of P ro fes s iona l Engineers of B r i t i s h Columbia.

3. I have been employed by Newmont Explorat ion of Canada Limited s i n c e 1965, and c u r r e n t l y have the p o s i t i o n of Explorat ion Manager, Western Division.

4. The work described i n t h i s r e p o r t was done under my d i r e c t i o n .

36' - British Columbia

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