tl 520 208n

GEOLOGICAL GEOPHYSICAL

AND GEOCHEMICAL REPORT

ON THE

SNOW 1 SNOW 2 WHITE 1 WHITE 2 CLAIMS

RECORD NUMBERS

2936 2961 2982 3013

ALBERNI MINING DIVISION

NTS 92F 6W

8 JOIILATITUDE 49019N LONGITUDE 12502 5 W

I0

Ownen

AREA EXPLORATIONS LTD

OperatorCASAU E PWR flON LTD

t iOttItC r0oex

Report byC SAYER B Sc M Sc

and

J C STEPHEN

J C STEPHEN EXPLORATIONS LTD

Report Submitted

r FILMED 10

August 1987

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oTABLE OF CONTENTS

Page

o

SummaryIntroduction

Location and Access

Property Definition

Topography and VegetationEnvironmental Consideration

History

GeologyRegional GeologyProperty Geology

Karrnut en VolcanicIsland Intrusion

StructureAlterationMineraliza tionRock Sampling

Grid Preparation and Soil SurveyGeophy ical Surveys

VLF EM SurveyMagnetometer Survey

Di cussion of Result

Conclusions and Recommendations

Co t Statement

References

1

2

4

6

7

8

9

99

10

1212

13

14

14

16

202022

24

26

29

Appendix I

Appendix II

Appendix III

Appendix IV

Petrographic ReportRock Sample De criptionsCertificate of Analysis

Sta tement of Quali fications

o

nLIST OF ILLUSTRATIONS

Figure Title Page

I

2

3

4

Location Map

Claim Map 1 50 000

Drainage Fracture Patterns

Discovery Vein Assays

3

5

19

25

Maps Title

I Geology In Pocket

II Soil GeochemistryIII VLF EM Data Profiles Seattle

0 IV VLF EM Data Profiles Maine

V Fraser Filtered VLF Data Seattle

VI Fraser Filtered VLF Data Maine

VII Magnetometer Survey

n

o 1

INTRODUCTION

The work program described in this report was authorized by directors of

Casau Exploration Ltd following signing of an option agreement on the

Snow I 2 White 1 2 mineral claims

o

In spring and summer of 1986 logging road construction by MacMillan

Bloedel Ltd exposed a series of five mineralized quartz veins within a

30 m interval of road cut Principals of Area Explorations Ltd staked the

Snow and White claims to cover the discovery area and carried out

prospecting trenching and sampling optiOIl agreemelll was negotiatedby Casau Exploration Ltd after examination and check sampling of the

discovery showings An exploration program was then undertaken which

included establishment of a baseline and series of grid lines at 50 metre

intervals The grid area was mapped in detail and soil geochemistry VLF

EM and magnetometer surveys were conducted on it It should be noted

that the grid was smaller than intended because MacMillan Bloedel Ltd

was actively logging in the area

The following report presents the findings of these surveys and proposalsfor further exploration

n

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LOCATION AND ACCESS

The Snow 1 2 and White 1 2 claims are located on the crest of the heightof land between the Taylor and Kennedy Rivers west of Sproat Lake see

Figure 1 The claims can be reached by driving 50 km west on Highway 1 4

from Port Alberni At the point where the highway crosses the TaylorRiver and turns south a logging road turns off to the west and ends in the

approximate centre of the claim group Aside from spurs off the loggingroad access to the claims is on foot Future road extension to the

southwest planned by MacMillan Bloedel will greatly improve access

o

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SNOW PROJECT

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EXPLORATION LTD

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LOCATION MAP

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May 1987

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FIGURE I

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PROPERTY DEFINITION

The Snow property consists of a to tal of 43 units The following table

outlines the pertinent information regarding each claim Figure 2 shows

the location of the claims which are located around a common legal claim

post

Record ExpiryClaim Number Units Date Owner

Snow 1 2936 3N x 4W 12 July 3 88 Area Explorations Ltd

Snow 2 2961 3N x 3E 9 July 15 88 Area Explorations Ltd

White I 2982 2S x 4W 8 Aug 7 88 Area Explorations Ltd

White 2 3013 2S x 7E 14 Sept 17 88 Area Explorations Ltd

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jECOLOGICAL

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Figure 2

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TOPOGRAPHY AND VEGETATION

Because the property extends from river valley to hillcrest in logged and

unlogged forest a variety of terrain is seen The valley bottom is

relatively flat but rises steeply to the hillcrest Numerous streams cut

toward the rivers creating deeply incised drainages and often impassablecliffs and drops Toward the ridge crest the topography becomes gentlerwith terrace like rises and flal spols SlTIall walTlis and ponds form on

these terraces The highest part of the property is characterised by rockyknolls with numerous small ponds

o

Overall the property is richly vegetated with stands of hemlock and cedar

Where the area has not been previously logged there is little undergrowthOn the highest parts of the property the huge timber stands give way to

smaller spruces and slopes of huckleberry bushes

Present logging makes much of the ground almost impassable This is a

temporary situation pending removal of the logs Previous loggingoccurred 15 20 years ago so the older logged areas are quite clear with

very young second growth

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ENVIRONMENTAL CONSIDERATIONS

The location of the Snow property leads to two major areas of

environmental concern The first is the existence of prime forest and the

second is drainage into major fish producing waterways

The first area of concern is at the moment being taken care of byMacMillan Hloedel Ltd Because a large segment 01 land is presently beingor has been logged it is not likely that tree removal will be necessary for

any future exploration

o

Although the showing and surrounding mineralization is well away from the

Taylor and Kennedy Rivers the steepness of the terrain means that the

nearby streams flow directly downhill to in this case the Kennedy River

with little opportunity for sedimenl to selllc This may become a problemwhen possible trenching or drilling releases a larger amount of sil t or mud

into the water A positive aspect of the steepness of the creeks is that it

is highly unlikely that fish could make their way up them Impassablewaterfalls which occur from the hillcrest all the way down to the KennedyRiver create effective barriers to fish migration

It is not known at this time if the water volume from the small upper

streams is sufficient to carry a dangerous amount of sediment as far as the

Kennedy River A possible solution may be to divert water into the

swampy areas on the terraces where sediment will have time to settle

Inquires are being made with environmental agencies concerned with this

area of Vancouver Island and every effort will be made to follow any

suggested guidelines for environmeiltal protection

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HISTORY

As far as can be determined there is no record of exploration or mmmg

work done in the vicinity of the Snow property prior to staking in 19 6

Nearby areas however have been active since the early 1900 s

In the Kennedy Lake area south of the Snow claims International Coast

Minerals has discovered major gold values associated with a series of

narrow parallel quartz veins and veinlets These veins are found on the

United Tommy and Bear groups At the time of writing K rr Addison

Mines Ltd in a joint venture with I C M is diamond drilling on the

Tommy group

oTo the east of the Snow group Dalmatian Resources Ltd have been

working on the Tay claims These claims are located on the Taylor River

just west of Sproat Lake Gold values are found in quartz carbonate veins

associated with arsenopyrite chalcopyrite and pyrite

The Fandora property located on the east side of Tranquil Lake northeast

of Tofino has recorded production of 1 327 oz of gold prior to 1965 Gold

was produced from 1 2 ft wide quartz veins emplaced in a 5 10 foot wide

fault zone in andesi tic rocks Mineralization includes sphalerite galenapyri te arsenopyrite and chalcopyrite and runs in an eas t wes l direc tion

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GEOLOGY

ReRional GeoloRY

The following synopsis of regional geology is taken from Muller I977

Generally the geology of southwestern Vancouver Island is dominated byKarmutsen volcanics of Upper Triassic age In upli fted areas such as the

Buttle Lake or Cowichan Lake uplift older Paleozoic volcanics and

sediments of the Sicker group are exposed Intrusions of granitoid rocks

known as the Island Intrusions of Jurassic and Cretaceous time underlie

about 1 4 of the Island surface

o

The structure of Vancouver Island is almost completely dominated by steepfaults Northerly and wes terly faul t sys tems were probably established byrifting during extrusion of the Karmutsen volcanics Northwestward

faulting and accompanying uplift occurred during Mesozoic to Tertiarytime

Prope ty Geology

The area of the property that was mapped includes the grid the roads in

the vicinity of the grid and streams just south of the grid Outcropexposure was excellent at the northwest end of the grid diminishing to the

southeast as swampier ground was encountered In the map area 30 40

of rock exposed was Karmutsen volcanics with 60 70 Island Intrusions

see Map 1 The following are detailed descriptions of rock typesencountered

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Karmutsen Volcanics Upper Triassic

In general a highly chloritized basalt dark green weathering green or

reddish brown The basalt may be massive with only traces of pyrite or

carbonate and quartz veining visible but it is also commonly amygdoidal or

porphyritic

Amygdaloidal phases occur where the basalt contains 10 30 amygdulesAmygdules range from 1 10m up to 1 5 cm across with the average being 5

10m Usually the amygdules are filled with calcite and or a white

zeolite or in some areas epidote

o

Where the basalt is porphyritic the phenocrysts may comprise 5 15 of

the rock In some cases the ph nocry t arc plagiocla e and may be up to

1 cm in length More commonly the phenocrysts are a mafic mineral

usually 3 5 mm in size Due to the altered nature of the basalt it is not

likely that the phenocrysts remain pyroxenes as t ey were originally but

are probably al tered to amphibole or in some cases chlori te

In a few especially good outcrops it can be seen that the basalt is pillowedIt is possible that more of the rock is pillowed than indicated but

weathering and moss cover make this difficult to determine

In one outcrop a pyroclastic phase of volcanic was seen This rock is

characterised by whitish altered fragments from 1 4 cm in size In some

fragments volcanic textures could be seen thus identi fying them as

volcanic but otherwise they are too altered for a positive identification

The ground mass appears to be a composi te of 1 5 mm shards and angularvolcanic fragments and phenocrysts

o

The volcanic types seen are consistent with Muller s 1977 description of

the lower part of the Karmutsen Formation

o 11

Island Intrusions Jurassic

The most common intrusive phase seen is a medium grained quartz diorite

medium to light greenish grey weathering the same or green Visible

plagioclase comprises 20 30 of the rock averaging 2 3 mm in size

The quartz diorite also contains 10 15 quartz 1 2 mm in size A

mafic phase possibly amphibole comprises about 2 of the quartz diorite

and is less than I mm in size The remainder of the rock is aphanitic and

somewhat chloritized

o

A coarser more granodioritic phase occurs with 5 8 mm quartz

phenocrysts comprising 15 20 of the rock On weathered surfaces a

creamier coloured feldspar contrasts with the plagioclase and is thought to

be K feldspar comprising 10 15 Overall the minerals are 3 8 mm in

size with less than 2 mafics

In contrast a more mafic medium grained dioritic phase also occurs This

rock is similar to the quartz diorite in texture but has no visible quartzand contains 10 15 mafics such as amphibole and possibly bio tite

Structure

Contacts between the volcanic and intrusive units are usually faults

occurring in a north south east west or northwest direction In some areas

it can be seen that the volcanic units are actually large xenoliths within

intrusives It is possible that more of the volcanic blocks are xenoliths or

rafts than indicated but limited exposure makes this difficult to

determine

o

Faults generally dip steeply 700 900 In an overall assessment of the

faulting it would appear that the east west direction is dominant Faultingis not limited to geologic contacts but is very frequent within volcanic and

o 12

to a lesser extent intrusive units In a few cases it appears that a fault

occurred while the intrusion was slill plastic or the fault had a great deal

of movement The result is a 1 2 metre wide zone of finely banded

foliation in some cases with boudins present fn one case it was apparentthat the faul t had moved back and forth because the banding was folded

into tight chevron folds Beyond these I 2 metre zones the rocks do not

otherwise appear to be sheared

Alteration

Throughout the property there is a low grade metamorphism resulting In

pervasive chloritic alteration Local and more interesting alteration

occurs adjacent to faults and manifests itself differently in the volcanics

than the intrusives

o Where numerous aults or aults o grealer lIIagnitude cut through the

volcanics there is usually an increase in intensity of quar tz and carbonate

veining The carbonate commonly fills hairlike crackle fracturing Where

the veins are mineralized the adjacent volcanic may be completely al tered

to a greenish clay Highly rusted gouge is sometimes seen along fault faces

as well Surrounding volcanics may show an increase in sulphide content

and epidote alteration Commonly large clots 5 15 cm of epidote form In

these areas Other types of veins include a heavy creamy material

possibly barite with traces of pyrite

Where the intrusive is faulted the adjoining rock may be completely altered

to a chalky w ite material Again a local increase in sulphides in rock near

the fault is noted In certain areas a pervasive rustiness occurs over 5 m

from the fault

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Mineralization

Gold mineralization appears to occur in quartz or quartz carbonate veins

associated with pyrite galena chalcopyrite and sphalerite These veins

occur as open space fillings in fractures where quartz or calcite has grownin from the walls The vein may contain traces or up to 30 4096 sulphideincluding pyrite and galena with lesser amounts of chalcopyrite and rarelysphalerite A mineralized sample from the main showing was sent to

Vancouver Petrographics Ltd for a petrographic analysis The result of

this analysis is found in Appendix I

Grain size of gangue and sulphides parallel each other and can be quitecoarse up to 1 1 5 cm across

oThere does not appear to be any preferred direction of mineralization so it

can be assumed that the mineralizing event occurred later than Tertiarytime when the northwest fault structures were formed It is common

however to find groups of mineralized veins all emplaced in the same

direction Such is the case at the main showing where five veins within a

10 15 metre section all run about 1400 The veins do not seem to prefer a

specific rock type either but because the volcanics are older and have

undergone more faulting the potential for vein emplacement is higher than

in the intrusions

Rock SamplinR

o

A total of 33 rock samples was taken on the Snow property during this

program Twelve of the samples were of obviously mineralized rocks and

were assayed by Chemex Labs for Au Ag Cu Pb The remainder of the

samples were of interesting alteration or veins which did not have obvious

mineralization These samples were analysed by 30 element ICP and goldgeochemistry If the gold geochemistry was greater than 500 ppb the rock

was assayed for gold

0 1

The following table lists the sample number rock type and results obtained

TABLE 1

SampleNo Rock Type Au Arz Cu Pb Width

58 121 qtz vein in massive vole 0 008 oz t 0 09 oz t 0 03 0 03 20 em58 22 qtz carb vein in vole 0 204 oz t 0 19 oz l 0 15 0 0216 3em

py ga cpy58423 qtz vein in massive 5 ppb 0 2 ppm 34 ppm 2 ppm 3cm

vole py58424 calci te vein in vole 0 002 oz t 0 05 oz t 0 01 0 19 3 5 em58425 epidote in vole py 5 ppb 0 2 ppm 61 ppm 2 ppm 1 mx2m panel58426 fault gouge in vole 5 ppb 0 2 ppm 222 ppm 88 ppm 3cm58427 bleached zone in vole 5 ppb 0 2 ppm 18 ppm 6 ppm 25 30 em58428 qtz carb vein in amyg 5 ppb 0 2 ppm 107 ppm 22 ppm 30 em

vole58429 qtz vein in vole 235 ppb 0 4 ppm 41 ppm 12 ppm grab58430 qtz vein in qtz diorite 0 08 oz t 0 07 oz t 0 0116 0 1616 grab float

py cpy ga

058431 qtz carb vein in vole 5 ppb 0 2 ppm 143 ppm 2 ppm grab float58432 qtz earb vein in shear 5 ppb 0 2 ppm 36 ppm 2 ppm grab58433 very rusty qtz vein 1450 ppb 10 0 ppm 412 ppm 4060 ppm 8 10 em

58434 qtz vein in vole 2 72 oz t 5 16 oz t 0 43 0 12 grabpy ga

58435 qtz vein in vole 25 ppb 0 2 ppm 120 ppm 8 ppm grab58436 qtz vein py ga 0 293 oz t 0 99 oz t 0 08 0 07 30 cm58437 qtz vein py ga 0 020 oz t 0 20 oz t 0 02 0 0116 grab58438 qtz vein py ga cpy 0 100 oz t 0 35 oz t 0 05 1 06 grab58439 qtz carb vein py ga cpy 0 004 oz t 0 16oz t 0 13 1 37 grab58440 extremely weathered 40 ppb 0 2 ppm 8 ppm 2 ppm grab

qtz vein

58441 bleached material py 0 092 oz t 0 89oz t 0 41 9 59 grabga cpy

58442 massive hemati te cpy 15 ppb 2 6 ppm 1750 ppm 2 ppm grab float58443 silici fied faul t zone 5 ppb 0 2 ppm 59 ppm 2 ppm58444 carb qtz vein py cpy 185 ppb O 8 ppm 256 ppm 14 ppm58445 faultmaterial rusty 5 ppb 0 2 ppm 305 ppm 2 ppm58446 qtz carb vein 100 ppb 6 0 ppm 1700 ppm 298 ppm58447 sheared diorite 70 ppb 0 8 ppm 39 ppm 60 ppm58448 qtz vein py ga cpy 0 02 oz t 0 07 oz t 01 0 02

58449 qtz carb vein py ga cpy 0 008 oz t 0 05 oz t 01 0 03

31447 qtz vein tr py ga 90 ppb 2 2 ppm 34 ppm 92 ppm31448 qtz vein in intrusive 405 ppb 1 0 pprn 47 pprn 576 ppm

py ga

n31449 qtz vein in intrusive 145 ppb 0 6 ppm 25 ppm 38 ppm

py tr ga58450 5 ppb 0 2 ppm 26 ppm 2 ppm

o 5

GRID PREPARATION AND SOIL SURVEY

A total of 17 km of grid was chained and flagged The baseline ran at 1400

and totals 1 600 meters with crosslines every 50 m at 500 The length of

the crosslines are variable They were chained as far as topography or

logging would allow

Soil samples were taken at 20 m stations on lines 48 00N 53 00N

Samples were taken every 40 m on the remaining lines see Map 11

o

Samples were taken from the B horizon with care to avoid humic material

and rocks Depth of the B horizon varied from 10 35 em Samples were

ana lysed by Chemex Labs for 30 elements and gold geochemistry Results

of the soil survey are plotted at 1 2 000 scale on Map II

Geochemical Soil Sample Resul ts

Results of analysis of 271 soil samples on lines 48 00N to 54 00N providethe following data

Gold

Values range from 1 to a maximum of 9530 ppb Ten samples ran 90ppband may be considered strongly anomalous Eleven samples range from 41

to 70 ppb and may be considered slightly anomalous There were no

reported values in the range between 71 and 90 ppb A total of 249

samples contained 1 to 40 ppb gold representing 92 of the determinations

made

1

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Lead

Values range from 2 to 566 ppm Nine samples running greater than

100 ppm 3 396 may be considered strongly anomalous while ten samples3 796 running from 61 to 100 ppm are anomalous Two hundred fifty two

9396 of the samples range from 2 to 60 ppm

Zinc

Values range from 3 to 571 ppm indicating a generally low zinc content in

the local vein mineralization Two hundred forty two samples 8996

returned values below 81 ppm zinc sixteen samples 5 996 ran between 81

and 150 ppm and 12 samples 4 496 ran from 151 to 571 ppm

o There is no apparent useful correlation between zinc and gold values in soil

samples although sphalerite has been identified in high grade material

from the main discovery vein

Copper

Values range from 4 to 130 ppm indicating a low copper content in the vein

type mineralization and apparently no significant development of skarn in

the vicinity although some epidote hematite rich sl arny vein material had

been found as float Two hundred forty three 89 696 of the samples range

from 4 to 60 ppm copper Threshold anomalous values between 61 and

80 ppm represent 19 samples 796 and 9 samples 3396 ranged from 81 to

130 ppm copper There is no apparent direct correlation between copperand gold values

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Arsenic

Arsenic values from 270 samples ranged from 5 to 70 ppm One sampleran 195 ppm arsenic which was the sample which returned 93 0 ppb gold566 ppm lead 189 ppm zinc 91 ppm copper and 15 6 ppm silver

In general arsenic values are low with 92 of the determinations being20 ppm or less

Silver

o

The one high grade sample ran 15 6 ppm silver two other samples returned1 0 ppm silver These results reflect the low silver values obtained from

rock assays on the gold bearing veins

No significant values were obtained for mercury antimony selenium or

thallium There is no indication or significant molybdenum or tungstenmineralization associated with the vein system

Spatial distribution of gold values of 40 ppb and greater suggests the

possible presence of as many as five parallel zones of interest trending on

average 1630 Geological mapping has documented gold bearing veins at

several locations which appear to represent sets of mineralized veins

trending 1400 about 2250 and 0150 Drainage patterns on and near the

property indicate three preferred directions

I at 1020 along local drainage near the showings and also parallel to

the Taylor River

o

2 at 1330 along the drainage from the showings to the Kennedy River

and along the Kennedy River below that creek to where the KennedyRiver turns abruptly south

o 18

3 at 1700 for some of the local teep drajnage flowing from the top ofthe ridge near the howjngs into the Taylor and Kennedy Rivers and

possibly reflected by olf1e o the local Ilrp bends in the KennedyRiver

These drainage patterns are illustrated on Figure 3

The highest gold values obtained in oil amples come from lines 411N48 50N and 49N at about 53 80E where anomalou samples Indicate

possibly two parallel zones approximately on strike southeast f the main

di covery showings The high gold values obtained in soil are 809 and 9530

ppb This zone warrants extensive trenching

oSoutheast of this main zone approximately 100 metres away is a parallelzone with soil values to 103 ppb Although gaps occur in the data due to

logging actively having prevented arnpling the zone as contoured may be

expected to extend from 52 00N to and beyond 48 00N This zone

warrants further do e prospecting and po sibly trenching

Two small zones occur on line 51 50N at 52 50E possibly trendingsoutheast to line 50 50N and at 53 15E trending northwest to line 52 00N

Values range up to 100 ppb in this la t zone These local areas should be

closely prospected

From 50 00N 50 00E northwest to 53 50N 52 40E a serie of anomalous

samples returned values to 490 ppb gold

o

This zone lies approximately parallel to and southwest of a series of goldbearing veins the best of which returned 0 293 oz t over 30 em These

anomalies may be due to downslope migration but their location should be

examined for possible parallel structures A grab sample from the veins

assayed 2 72 ozfton

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GEOPHYSICAL SURVEYS

A VLf EM survey using both the Seattle and Maine transmitting stationsand a magnetometer survey were conducted on the grid The purpose of

these surveys was to delineate structure in the area and if possibledetermine the lateral extent of the original howing

VLF EM Survey

The instrument u ed in the VLF EM urvey wa a Geonic EM 16 Readingswere initially taken at 10 m interval but upon consideration of the resultsthi wa more detailed than nece ary Reading were then taken at 20 m

intervals facing west southweH on the line for both tation

o The raw data profile for both the Seattle and Maine station are plotted at

1 2 000 scale on Maps III and IV Fraser filtering wa applied to both sets

of data and i plotted on Map V and VI

The Fraser filtered data using Seattle transmitter provides a serie of

positive highs trending 1150 to 1250 This trend i similar to that indicated

by the magnetic survey and by the Fraser filtered data using Cutler Main

as a transmitter This trend i not one of the major drainage trends and

does not coincide with either the strike of the main di covery veins 400or the trend of the geochemical anomalie It i assumed this trend

reflects the major geological structure either contacts or topographicfeatures possibly controlled by the geology Major topographic ridges trend

in the 1200 direction

c

The profile of the VLF EM data provide trong po it1ve readlng on the

southerly facing slope and trong negative readings on the northerly facingslopes The resulting apparent crossover trend from 56N 50E to 52 50N

o 21

54 45E where there is an apparen t 50 metre olhet to the south These

apparent crossovers probably reflect topography only

Using inflection points in the profile various cross overs may be

interpreted which when plotted may line up either conformably with the

Fraser fil ter contours or in the area from 51N to 54N in an approximate1650 direction similar to the trend of the geochemical anomaliesHowever when the geochemical results are superimposed on the VLF EM

crossovers there is little or no apparent coincidence It is assumed then

that the cross over5 should be connected to conform to the Fraser filter

contours and are then due mainly to gro s geology and topography rather

than to vein structures

oThe VLF EM data u ing Cutler Main a a tran mitler show po slble weak

correlation between cross overs and geochemical anomalies at 49N 54 10E

and 51N 54 55E to 51 50N 54 85E which may repre ent the trend of the

main discovery zone Gaps in the data due to logging actively make this

interpretation tenuous

From 52 00N 54 75E to 53N 55 55E a weak crosover anomaly lies on

trend of the second geochemical zone south of the main discovery Similar

weak trends border several other of the geochemical anomalies and may

possibly reflect mineralized structures rather than gross geology

These trends are however too uncertain to be of much use in directingexploration Other trends coincide better with the overall 1200 trend of

the Fraser filter contour

o

As additional knowledge i gained on the property better interpretation of

the VLF EM surveys may be possible but it is concluded at this stage that

the VLF EM is of little use in outlining the mineralized zones

o 22

Magnetometer Survey

The new grid established on the SNOW and WHITE claims with lines at 100

meter intervals extending at N500 E from a base line running 5400 E was

surveyed using a 5cintrex MP 2 proton precession magnetometer Readingswere taken at 10 meter intervals and were tied into and connected to the

base line stations Data is plotted on Map VII

o

Magnetic response over the area varied from 551 gammas to a high of

5706 gammas Contouring of the magnetic readings is probably affected

strongly by the spacing between lines and as a result the overall apparenttrend of magnetic highs and lows may be somewhat misleading since the

geological evidence is that there are numerous small fault and shear zones

as well as local blocks of volcanics apparently rafted within the graniticand dioritic intrusives The dioritic intrusives are more common or form a

more coherent mass in the east corner of the present grid and this is also

the largest and relatively most coherent area of high magnetic readingsOther outcrops of diorite are small and do not correlate well with magnetic

highs

Three enechelon zones of magnetic highs are located in the western half of

the grid area and are essentially parallel to the base line The first extends

from about 53N to 57N 50N generally within 50 to 100 meters of the base

line The area is underlain by volranics which probably account for this

anomalous zone

f

The second zone parallel to and about 170 to 220 meters southeast of the

base line extends from 49 50N to 55N Between 53N and 54N this zone is

underlain by volcanics but the remainder appears to lie within the graniticintrusives and no geological explanation for the anomaly is immediatelyevident

n 23

The third zone is more irregular in shape and is located from about 5lN to

54N about 280 to 400 meters northeast of the base line This area is

underlain by volcanics and some dioritic intrusive which appears to account

for the anomaly

From 56N to 58N at about 52 40E a linear magnetic high occurs with a

strong parallel magnetic lowd on its north side This zone is underlain

primarily by granitic rocks but the magnetic pattern suggests there may be

a pendant of volcanic rocks here This zone warrants investigation to

determine its cause

In the south corner of the grid an area of volcanic rocks occur but no

significant magnetic responses is apparent

o Comparison of the magnetic survey with the VLF EM survey using Cutler

Maine transmitter indicates that several of the apparent VLF EM cross

over conductors and less clearly the contoured Fraser filter results

correspond generally with the magnetic patterns This suggests that the

VLF EM Cutler data is affected more by rock types and contact zones

rather than by mineralized vein structures

rhe VLF EM data based on readings using the Sea Ule transmitter shows a

general correlation between the stronger cross over conductors and the

contact of magnetic rock types With some exceptions the contoured

Fraser filter data also corresponds to the magnetic patterns

n

In general the magnetic survey is useful to help delineate areas of volcanic

dioritic and granitic rock These patterns when compared with the

geological data indicate local areas where more detailed geologicalinvestigation may be warranted As with the VLF EM surveys the

magnetic data is not directly helpful in locating mineralized vein

structures

o 24

DISCUSSION OF RESULTS

The initial examination of the quartz veins exposed by MacMillan Bloedel s

road construction indicated a series of parallel quartz veins Figure 4

striking at 1400 and varying in width from a few centimeters up to 90

centimeters in width These veins were variously mineralized with pyritegalena and sphalerite and assayed from 046 oz gold per ton across 30 cm to

0 858 oz gold per ton across 20 cm and 489 oz gold ton across 90 cm

There is apparently a close correlation between gold content and galenamineralization both of which minerals are apparently latc in the sequence

of mineralization Geological mapping and geochemical sampling indicates

several other mineralized vein structures which contain gold and detailed

exploration is warranted

o Geophysical surveys have consisted of magnetometer and VLF EM surveys

These have been partially successful and are useful in interpretation of

the general geology but have not been successful in outlining the

mineralized structures The character of the mineralization indicates It

probably would not respond to other types of EM surveys and al though this

mineralization would likcly rcspond to IP surveys it is probably not

economic at this stage to conduct such detailed IP surveying as would be

required to be useful

Mineralization found so far except for the original discovery has been byclose prospecting With the aid of geochemical surveys prospecting Is

probably the most cost effective way to continue initial exploration

o

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15 20m SE 01 rood

CASAU EXPLORATION LTD

SNOW PROJECT

SAMPLE LOCATIONS

FlGURE4

o 26

CONCLUSIONS AND RECOMMENDATIONS

Significant gold values have been obtained from newly discovered

mineralized quartz veins Sme of these veins appear to have economic

gold grades and mineable widths To date the best vein exposures have

been found in volcanics but because of the high percentage of intrusive

rocks on the property it will be necessary to explore these veins downward

by diamond drilling to see whether they persist into the presumably more

brittle intrusive diorites and granites

o

The mineral showings are located near the crest of a high and steep ridgeImmediate access Is easy due to new logging roads and these are beingextended The location is favourable for future mining using adits rather

than shafts while local relatively flat areas may provide adequate space for

a mining plant Topographic data should be collected to provide a largescale topographic map to locate building sites and possible tailings disposalsites

The current program of geochemistry and geological mapping is to be

continued once MacMillan Bloedel have completed logging of the area

This will require re establishment of the grid where it has been destroyedand extension of those lines which had stopped short due to loggingactivity Further geophysical work may be dispensed with for present

Based on the now known mineralized discoveries trenching and stripping of

the stronger vein structures should be carried out to demonstrate

continuity investigate the effect of local faulting and to provide additional

surfaces for detailed sampling for assay purposes

o

Following trenching stripping and sampling diamond drilling will be

warranted to investigate the veins although at relatively shallow depth It

is possible the volcanic host rocks may not extend to any great depth and

o 27

drilling should be spaced closely enough that vein structures can be

followed into the intrusive rocks with some confidence

The programs presently embarked on include

1 Grid establishment geophysical surveys soil sampling and

geophysical mapping Of this first phase costs presentlytotal approximately 35 000 00

This phase is planned to total 50 000 00 and the

remaining 15 000 00 will be spent on extending the

current surveys onCe logging is completed 15 000 00

Total Phase IA 50 000 00

oPhase m will be funded by Area Exploration or its

subsidiary company and will include trenchingstripping sampling and assaying with an estimated

cost of 25 000 00

This is to be followed by diamond drilling with short

closely spaced holes totalling 7 holes @ 100 feet hole @50 00 foot inclusive and mobilization supervision

assaying etc 35 000 00

Total Phases IB 60 000 00

It is expected Phases lA and IB will be completed before heavysnowfalls in the winter of 19 7 19 makes further work uneconomic

O 28

The 1988 Phase II program is planned to provide for a major program to

include the following

J Par ticipation in a low level detailed air photographyprogram to provide accurate topographic data 15 000 00

2 Extension of control grids on the claim group for

further geological mapping and geochemical sampling 40 000 00

3 Access road construction to new vein sites trenchingstripping and sampling 50 000 00

4 Detailed diamond drill exploration of several vein

structures Holes will vary rom 100 feet to 400 feet

in depth with a probable total footage of 4 000 feet

@ 40 per foot all inclusive 160 000 00

o

Extensions and Contingencies 45 000 00

310 000 00Total Phase II

The agreement with Area Explorations envisaged aggressiveexploration including probable driving of adits to explore the more

important veins and sufficient work to reach a feasibility study stageThe total expenditure to be shared by Casau and Area will total in

excess of 1 200 000 to reach that stage

Respec tfully submitted

J C Stephen Explorations Ltd

oStephen President

J

oSTATEMENT OF EXPENDITURE

HAGJS SALARIES

C Sayer Geologist May 1 7 June 3 12 15 30

July 1 27 Aug 24 26

Jim Muir Technician June 15 30 July 1 10 13

Doug Paterson Prospector June 15 30 July 1 8

Jim Crawford Helper June 15 30 July 1 8

T Tomacek Drafting May 27

ASSAYS ANALYSIS CHJMIlX LABS LTD

WJST BAY HOTJL A MEALS

RJNTAL MP 2 MAGNJTOMllTJR

o RENTAL VEHICLE June IS July 11

VEHICLJ OPERATION GAS

Fll LIl SUPPLmS AIR 1 110105 lLAta 1 NG

TRANSPORTATION FERRIJ S BUS ETC

PJTROGRAPHIC WORK AND PHOTOS

REPORT WORD PROCJSSING DRAFTING MAP PRINTING

ASSESSME IT WORK FILING FJES

7 975 00

5 400 00

3 487 50

3 720 00

87 50

20 670 00

5 208 13

2 560 20

483 30

1 200 74

154 60

310 27

205 49

224 77

1 173 60

1 102 50

33 293 60

J c Stpplwn l p1orut ona Ltd

nJCS Ims

J

o

REFERENCES

Muller J E 1977 Geology of Vancouver I land Geel Surv Can OpenFile 463 9 pp

o

n

f J I I JjfJfOfj lIUd

I

telJAMES VINNELL M lII ljtrr

JOHN G PAYNE Ih tul illl

A L LITTLEJOHN M r r tl

JE Ff HARRIS 1 1111 e I tll l

l

evil

P O BOX 398887 NASH STREET

FORT LANGLEY B CVOX IJO

PHONE 604 888 1323

Invoice 6636

Report for C SayerJ C Stephen Explorations Ltd704 850 West Hastings StVancouver B C

August 12th 1987

Introduction

1 strongly mineralized rock sample designated Snow 1 Main Showing wassubmitted for sectioning and petrographic study

A detailed petrographic description is attached

Photomicrographs illustrating the size range and modes of occurrence of goldin the sample are enclosed These are relevant to the potential extractivemetallurgical properties of the ore

Q

v0J F Harris Ph D

92 9 8t7

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c AMIII I HI f AHA110N rOil MIC UOSTUDIl5 PI rrH CiUAI IIW HllnUI CPI rIAI r FOLOC Y f IELD STUDIES

o

Q

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Sample Snow 1 Main Showing

Estimated mode

Pyri teSphaleriteGalena

ChalcopyriteGold

QuartzBari te

EpidoteAltered volcanic

282818

6trace

131

trace

6

This a poly phase vein type sulfide assemblage showing complex partiallyfine grained textural relationshipsPyrite forms compact angular patches up to 5mm or more in size These are

more or less strongly fractured and cemenLed by veinlets of gangue and otherconstituents Locally especially on the fringes of the coarse patches thepyrite is in the form of loose aggregates of euhedral grains 0 05 0 2mm in sizelhese are cemented and often marginally replaced by other sulfide constituents

Galena forms irregular segregations on a similar scale to the pyrite Theseare homogenous except for some inclusions of pyrite which show strong marginalintergranular and core type replacements by the enclosing galena

The unknown dark metallic mentioned in your covering letter is simply sphaleriteThis shows strong patchy colour zonation from colourless to dark grey and ispacked with inclusions of exsolved chalcopyrite These include emulsion type patchesof minute grains down to sub micron size and strings of irregular grains up to50 microns in size A few strings of tiny pyrite euhedra constitute another formof inclusion

Other than the abundant minute inclusions the sphalerite is homogenous andforlns coarse segregations like the other major constituents It shows minutelycrenulate margins against galena

Chalcopyrite in addition to the inclusions within sphalerite forms scatteredirregular pockets and veinlets seldom exceding 0 5mm in size in pyrite and quartz

Gold was identified rather commonly as irregular grains 2 50 microns insize rarely to 100 microns These occur in association with networks of microfracture fillings in pyrite These microfractures are filled by chalcopyritegalena gangue and occasionally sphalerite Gold occurs as segments of threadlike veinlets of the other components as inclusions in coarser pockety segregationsof chalcopyrite and galena in pyrite and as inclusions within compact pyriteadjacent to veinlets of the later sulfides

The gangue component is principally quartz This exhibits the highly variablegrain size and anhedral to locally comb textured forms typical of vein quartz

At one end of the slide the quartz has sizeable inclusions of an alteredvolcanic rock sericitized felsite with pervasive leucoxene and occasional altered

o

o

o

Snow 1 Main Showing cont

plagioclase phenocrysts Wispy sericite patches in the quartz probably representpartially assimilated xenoliths

Minor amounts of barite and fine grained epidote are the other gangueconstituents These typically occur in veinlets and pockets within fracturedsulfides especially pyrite They may represent a gangue phase related to thegold deposition

Your designation of the sample as a quartz carbonate vein is not confirmedNo carbonate occurs in the slide

Paragenesis appears to be an overlapping deposition of quartz with progressivelyyounger pyrite sphalerite chalcopyrite galena and gold Galena clearlyreplaces and veins pyrite Chalcopyrite veins and cements pyrite and is exsolvedfrom sphalerite Gold is associated with galena and chalcopyrite Where theyvein microfractured pyrite Barite and epidote and some quartz are the non sulfidenssociates of this phase of deposition

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94 4 Scale lOTI 42 miccons

Bright yellow specks of fine grainL gold 3 12 microns in

chalcopyrite cementing and veining pyrite Blue grey mineral battan

right is galena note marginal replacement of adjacent pyriteJark grey areas are gangue contempocaneous withthe chalcopyrite

II

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94 5 Scale 1ern 85 microns

Relatively coarse 50 microns grain of gold in veinlet cuttingpyrite Associated vein components ace galena blue grey also as

coarser pocket tup ri ht chalcopydte dull yellow and gangueblack Dark grey seglIIcnt of vein filling to left of the gold grain

just distinguishable from the blacker quartz is bacite Gold alsoin quartz fi lled veinlets boltUll right

8

CASAU EXPLORATION LTD

I

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Shows gold bright yellow associatLd with networks of chalcopyriteveinlets brownish yellow in pyrite buff coloured matrix Note sane

fine grllintl blebs of old also in 1I1lfnlctured pyrite left C8r1tre

I 4 3 Scale Ian a 85 micronsGold bright yellow as irregular blebs and threads in compact pyriteAssociated bluish grey inclusions are galena Dark grey phase rightis sphalerite with abundant inclusions of chalcopyrite dull yellowBlack areas are gangue

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94 6 Scale 1ern 3 42 micronsine grained gold in ga lena Ihe ga lena blue grey veins and

lnarginally replaces pyrite buff colour Hlack is associated te

stage gangue quartz and or barite Gold grains at right are 10

30 microns Note also extremely fine gold specks 1 2 microns in

threadlike veinlet left cent e

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STATEMENT OF QUALIFICATIONS

I CHRISTINA SAYER state that

I I have obtained a B Sc Honour in Geology from the University of

Alberta 1984

2 I have obtained a M Sc in Geology from the ame 1986

3 I have worked in the exploration industry as a geology student from

1981 1985

o 5 I have worked in the exploration industry as a geologist almost

steadily since 1986

6 I have no interest in Casau Explorations Ltd or Area ExplorationsLtd

DATED at Vancouver British Columbia this

1987

day of

Cht 5o