<<

GEOLOGICAL

VENTCLAIMGROUP & :- 2 ;;.; L’ SUMMERLAND AREA - k~’ OSOYOOS MINING DMSION

by

MURRAY S. MORRISON. B.Sc.

CLAIMS: Vent 3, 5, 7-10, 20-38 & 4144 (29 units)

LOCATION: The Vent property is situated at Riddle Creek,

16 km southwest of Summerland, B.C.

Lat. 49”33’; Long. 119”53’;

N.T.S. Map 82-E-12W.

OWNER: M. S. Morrison and Doublestar Resources Ltd.

OPERATOR: M. S. Morrison and Doublestar Resources Ltd.

DATE STARTED: October 14, 2001

DATE? COMPLETED: October 15, 2001

Kelowna, B.C. December 30, 2001 TABLE OF CONTENTS

SummarY 1 Introduction 6 Location and Access 8 Physical Features and Climate 9 Claim Status 11 History 14 Regional Geology and Mineralization 15 Property Geology 17 Summary of Property Geology 17 Potential Epithermal Precious Metal Zone 18 Strontium@ariumjRare Earth Occurrence 19 Geological Mapping Program - 2001 20 Grid 20 Geology 20 General Comment 20 Pleistocene 22 Middle to Upper Eocene Marron Formation 22 Trachyte Flow Rocks 22 Tuffaceous Sandstone/Siltstone 23 Phonolite Flow Rocks 23 structural Geology 24 Alteration and Mineralization 25 Discussion 27 Conclusions and Recommendations 29 References 31 Appendix A Statement of Qualifications 32 Appendix B Statement of Expenditures 33 ILLUSTRATIONS

Figure 1 Location Map () 4 Figure 2 Regional Location Map 5 10 Figure 3 Claims., and Access - Vent Property Figure 4 Mineral Claims - Vent E’roperty 13 Figure 5 Geology - Vent 29-32 Mineral Claims 21 SUMMARY

The Vent property is situated at Riddle Creek, 16 km southwest of Summerland in the Osoyoos Mining Division of British Columbia. The property, consisting of 29, Z-post mineral claims was staked by the writer between 1998 & 2000 to cover an assemblage of volcanic and sedimentary rocks occurring within a Tertiary Basin lying 30 km northwest of the White Lake Basin at Falls.

Doublestar Resources Ltd. of Vancouver provided the financing for the claim staking and has earned a 60% interest in the property from the writer.

The present Vent Claim Group covers ground that was originally staked by the writer as the Vent I-6, 4-post mineral claims in 1986. The silicified and altered Eocene pyroclastic rocks identified on the Vent property were recognized as favourable host rocks for epithermal precious metal deposits, paaicularly in light of the successful exploration programs conducted in the late 1980’s on the Vault and Brett gold prospects of the Okanagan region which were aIs;0 hosted by Eocene volcanic rock.

In 1987, Zygote Resources Ltd. of optioned the Vent property and provided financing for the writer to geologically map the property and collect soil gcochemical samples from selected areas. These preliminary surveys were followed-up with the drilling of 8 Reverse Circulation Percussion Drill Holes, totalling 492 metres, in 1989. Although five of the 8 drill holes intercepted highly faulted, clay altered, and silicified Marron Formation trachytic flows and tuffs and four of these five drill holes also intersected considerable intercepts (33 to 43 metres) of pyrite enriched (5 to 15%) clay alterations zones, only negligible precious metal values were found and Zygote Resources returned the property to the writer.

Two strong fault ones (one east-west and another north-south) were defined by the 1989 drilling program Several of the drill holes penetrated strong argillic alteration in t.he SUMMARY continued

hanging-wall of the east-west fault before passing into basically unaltered foot-wall rocks. The drill holes also encountered considerable silica replacement of the lapilli tuffs in the hanging-wall as well as low temperature chalcedony veining. Higher temperature quartz veining was not encountered iu the relatively short drill holes, and it is thought that the “precious metal bearing quartz stockwork zone” of this epithermal system lies at some moderate depth below the 1989 drill holes.

In 1994, an Induced Polarization survey was recommended to defme targets for a deeper drilling program on the east-west fault epithermal zone. This program awaits a better outlook for the world price of gold.

In 1999, the focus of exploration was directed towards a strontium/barium/rare earth occurrence that was fii discovered near the northern end of the property in 1987. An experimental biogeochemical sampling program was conducted in the vicinity of the rare earth occurrence on the Vent 8 & 10 mineral claims. The results of the survey indicated that rare earths could be more widespread than was originally thought.

In July, 2000, the discovery rare ea& showing (Road Showing) was re-sampled with positive results and in October, 2oo0, a backhoe was hired to dig 16 test pits to examine bedrock over a bench area which extends up to 300 metres northeast and southeast of the Road Showing.

The test pit program revealed that much of the soft sediments which host the rare earth mineralization at the Road Showing had been scoured from the bench area by glaciation. Only one test pit encountered soft sediments similar to those at the Road Showing. Phonolite flow rocks which lie stratigraphly below the sediments were encountered in most of the test pits. The phonolite yielded elevated values for select rare earth elements and this rock is believed to be the primary source for the rare earths which are concentrated in the sediments. 3

SUMMARY continued

It is thought that the rare earth-bearing sediments occur sandwiched between phonolite flows and a thin layer of trachyte flow rock over an ares of one square kilometre on the Vent 7-10, 20 & 22 mineral claims east of the Road Showing.

Late in October, Z!Ml, several pieces of angular float comprised of tuffaceous sandstone/ siltstone identical to that which occurs at the Road Showing were discovered along an old logging road 800 metres southwest of the Road Showing and the Vent 29-44,2-post mineral claims were added to the Vent Claim Group.

This year’s geological mapping program, which was designed to evaluate the new discovery, determined that the tuffaceous sandstone/siltstone is most probably the stratigraphic equivalent of that which occurs at the Road Showing. The new discovery lies on the crest of an anticline, sub-parallel to the anticlime which underlies the Vent 7-10 mineral claims

It is believed that much of the upper trachyte flow rocks have eroded from the crest of the anticline on the Vent 29-32 mineral claims and that the tuffaceous sandstone/siltstone unit may lie at shallow depth below a veneer of glacial till over an area of 25 hectares.

It is recommended that several samples be collected from the angular float on the Vent 29-32 mineral claims to determine the grade of the rare earths. lf the results are positive, then a soil geochemical survey is recommended over portions of the Vent 29-32 mineral claims. A follow-up trenching program is also recommended to test strontium and/or barium soil anomalies for associated rare earths.

It is recommended that the Vent 29-32 target be given priority over the Vent 7-lo,20 & 22 target which was recommended in a January 10,ZOOl Assessment Report. ----. N.W.T. .----.’ /.--.---- BR,T,S”- .-.-, -.-,-.-.-. ‘\ ALBERTA COLUMBIA ! I l Ft.NelSQn ’ b Lake I

i

i

m.StJ.hn* i

I

clcLaHache. VENT P;OPERlY ‘? ‘L l KamlaoP~ \ pacific

Ocean

VENT CLAIM GROUP DOUBLESTAR RESOURCES LTD.

LOCATION MAP

6

INTRODUCTION

This report, written for government assessment work credits, discusses the results of a geological mapping program conducted over portions of the Vent 30-32 mineral claims by the writer during mid-October, 2001.

The Vent 30-32 mineral &ii lie on the western half of the Vent Claim Group which is comprised of a total of 27 contiguous 2-post mineral claims located 16 Irm southwest of Summerland, B.C. The Vent Claim Group also includes two, 2-post mineral claims which he one kilometre south of the main group. The mineral claims were staked by the writer between May, 1998 and October, 2000 to cover prospective precious metal and/or rare earth host rocks.

In 1986, the writer staked the Vent l-6, 4-post mineral claims (referred to as the “original Vent mineral claims” in this report) over much of the same ground now covered by the present Vent Claim Group. The writer recognized (in 1986) that the alteration and silicification of the pyroclastic rocks within the Riddle Creek Tertiary Basin bore a striking resemblance to the alteration and silicification which occurs at the well-known Vault precious metal property located 30 km to the southeast. The Vault property (which was staked by the writer in 1982) lies within the White Lake Tertiary Basin at Okanagan PaUs, B.C.

Preliminary geological and geochemical surveys conducted on the original Vent property in 1987 (Morrison, 1987) were followed by a Reverse Circulation Percussion Drilling Program in 1989 (Morrison, 1990). Eight drill holes, totallmg 492 metres, tested an area measuring 300 by 600 metres near the southeastern comer of the original Vent 2 mineral claim. The work was financed by Zygote Resources Ltd. of Vancouver which had an option on the Prope*y. INTRODUCTION continued

Although all of the drill holes returned negligible precious metal values, five of the 8 drill holes of the 1989 season intercepted highly faulted, clay altered, and silicified Marron Formation trachytic flows and tuffs. Four of these five drill holes also intersected considerable . intercepts (33 to43 metres) of pyrite-enriched (5 to 15%) clay alteration.

It is thought that the 1989 drilling program tested the upper portions of a large epithemral system that could host a precious metal deposit at some moderate depth below surface.

The original Vent property was allowed to lapse in 1994 due to time and financial restraints, however, Doublestar Resources Ltd. of Vancouver, B.C. provided the capital required to restake portions of the original property between May, 1998 and October, 2000. Doublestar Resources Ltd. maintains a 60% interest in the property, while the writer retains a 40% interest.

In addition to the potential epithermal gold target on the southern portion of the property, there is a rare-earth mineral occurrence located on the Vent 10 mineral on the northern portion of the property which was discovered in 1987. The rare earth occurrence received very little attention until May, 1999, when a biogeochemical survey was conducted over portions of the Vent 8 & 10 mineral clams. Although the experimental survey was very restricted in area, the results did outline a zone of elevated strontium and barium values coincident with the rare earth showing and extending for 150 metres to the southeast. The survey also revealed that elevated values of strontium and barium occur up to 300 metres south of the showing.

In October, 2CQ0, a tractor with a backhoe was used to excavate 16 test pits up to 300 metres northeast and southeast of the rare earth occurrence on the Vent 10 mineral claim The purpose of the program was to obtain bedrock samples from areas which yielded elevated strontium and/or barium biogeochemical values. These samples were to bc analyzed for selected rare earths. 8

INTRODUCTION continued

Only nine of the test pits reached bedrock and only one encountered tuffaceous sandstone/ siltstone that resembled the rock at the Road Showing. The rare earth values were generally low in all of the bedrock samples.

Late in October, 2OC0, several angular pieces of tuffaceous sandstone/&stone float which look identical to the rock at the Road Showing were discovered over a distance of 100 metres along an old logging road 800 metres southwest of the Road Showing. The Vent 29-32 mineral claims were added to the Vent Claim Group to cover the new discovery and the Vent 33-44 mineral claims were also added to the property to cover potential targets.

This year’s geological mapping program was conducted in an attempt to evaluate the significancxz of the new float discovery on the Vent 29-32 mineral claims, The geology is illustrated on Figure 5 which accompanies this report.

LOCATION AND ACCESS

The Vent property is situated at Riddle Creek, 16 km southwest of Summerland, or 22 km northwest of , B.C. (Lat. 49” 33’; Long. 119”53’; N.T.S. Map 82-E-12W). The property may be reached by logging roads from either community. Access from Penticton is via the Shingle Creek logging road (45 minute drive), while access from Summerland is by way of the McNulty Creek and Liddell Creek logging roads, as illustrated on Figure 3. A shorter, but steeper, seasonal road follows the 500 kv powerline to the property. The McNulty Creek and Liddell Creek route requires 45 minutes driving time from Summerland.

Old logging roads give access to most parts of the property as illustrated on Figure 3. 9

PHYSICAL FEATURES AND CLIMATE

The Vent property lies near the southern edge of the Thompson Plateau. The plateau with elevations ranging from 1300 to 1800 me&es has been deeply incised towards the Okanagan Valley by drainage flowing into Okanagan Lake (elevation 340 metres). The entire region was glaciated during’the Pleistocene resulting in roundeduff ridges and in-filled valleys.

The Vent property, centred over the upper drainage basin of Riddle Creek, 18 km west of Okanagan Lake, covers an area of subdued relief typical of the Thompson Plateau. Elevations on the property range from 1340 to 1680 metres. Rock exposures are restricted to the tops of ridges or steep creek banks. Elsewhere, there is a general cover of glacial till that reaches depths in excess of 30 metres on some portions of the property.

The dominant forest cover on the property is lodgepole pine which ranges from a jungle of “‘bean-pole” second-growth in old bum areas near Riddle Creek to mature stands of timber elsewhere on the property. Several stands of the mature timber have been clear-cut-logged in recent years. Douglas fir is the more common forest species found on the upper rocky ridges on the northern half of the property.

Although the Okanagan Valley is semi-arid, the Thompson Plateau to the west receives upwards of 50 cm of precipitation annually; half of it in the form of snow. A winter snow pack of 1 to 2 metres begins to accumulate on the Vent property in November, and can be expected to last until late May on shaded slopes.

Riddle Creek flows year-round providing water for grazing cattle in the region. VENT CLAIM GROUP tit 3, 5, 7-10, 20-38 & 4144 mineral claim (29 units) /- \ I r

owing Earth Occurrence

Scale 150000

\ \ 0 I 2 km k \ \ ’ 4

VENT CLAIM GROUP DOUBLESTAR RESOURCES LTD.

CLAIMS AND ACCESS

Summerland Area Osoyoos hlining Division, B.C.

Drawn by: MM. N.T.S. 82-E-12w Deoembef2001 FlGwlE3 I! 11

CLAIM STATUS

The Vent Claim Group is comprised of 29, 2-post mineral claims. The mineral claims were staked by the writer, M. Morrison, of Kelowna, B.C. between May, 1998 and October, 2000 and were recorded in the Osoyoos Mining Division.

On April 17, 2000, a Common Anniversary Date was granted for the Vent 1-28 mineral claims. This date is October 17th. The Vent 2944 mineral claims were all staked in October, 2000, after the Common Anniversary Date was granted.

Doublestar Resources Ltd., a listed company on the Vancouver Stock Exchange, owns a 60% interest in the Vent Claim Group, while the writer retains a 40% interest.

The mineral claims included in the Vent Claim Group are listed below:

CLAIM TENURE DATE OF EXPIRY NAME UNITS NUMBER RECORD DATE* Vent 3 1 362893 May 11, 1998 October 17, 2002 Vent 5 1 362895 May 11, 1998 October 17, 2002 Vent 7 1 362897 May 13, 1998 October 17,2002 Vent 8 1 May 13, 1998 October 17,2002 Vent 9 1 362899 May 13, 1998 October 17, 2002 Vent 10 1 362900 May 13, 1998 October 17,2002 Vent 20 1 372833 October 14, 1999 October 17,2002 Vent 21 1 372834 October 14, 1999 October 17,2002 Vent 22 1 372835 October 14, 1999 October 17, 2002 Vent 23 1 372836 October 17, 1999 October 17, 2002 Vent 24 1 372837 October 17, 1999 October 17, 2002 Vent 25 1 372838 October 17, 1999 October 17,2002 Vent 26 1 372839 October 17, 1999 October 17, 2002 Vent 27 1 372840 October 17, 1999 October 17, 2002 Vent 28 1 372841 October 17, 1999 October 17,2002 12

CLAIM STATUS continued

CLAIM TENURE DATE OF EXPIRY NAME UNITS NUMBER RECORD DATE* Vent 29 1 381905 October 18, 2ooO October 18,202 Vent 30 ..l 381906 October 18,200O October 18,2002 vent 31 1 381907 October 18, 2000 October 18,2002 Vent 32 1 381908 October 18,2ooo October IS,2002 Vent 33 1 381909 October 19, 2tXKl October 19, 2002 Vent 34 1 381910 October 19, 2000 October 19,2002 Vent 35 1 381911 October 19,2Oao October 19, 2002 Vent 36 1 381912 October 19, 2ooo October 19,2OO2 Vent 37 1 381913 October 22,2ocQ October 22,2002 Vent 38 1 381914 October 22, 2ooO October 22, 2002 Vent 41 1 381917 October 26, 2ChKl October 26, 2002 Vent 42 1 381918 October 26,2OMl October 26,2002 Vent 43 1 381919 October 26, 2oGO October 26, 2002 Vent 44 1 381920 October 26, 2000 October 26,2002

* The Expiry Dates are based on the acceptance of this report for Assessment Work Credits.

14

HISTORY

The Riddle Creek Tertiary basin was staked by British Newfoundland Exploration Ltd. as an uranium-thorium prospect in 1977. During the 1977 season radiometric and reconnaissance silt and soil geochemical surveys were carried out in conjunction with preliminary geological .., mapping on the property, comprised of the Agnr and Ash mineral claims. In 1978, seven diamond drill holes, totalling approximately 270 metres, were completed. Five of the holes were drilled directly into a syenite intrusive, while two of the holes penetrated ash flows and basal conglomerates up to 30 metres in thickness within the Tertiary basin (Church, 198 1). No s&ificant uranium or thorium was discovered and the claims were allowed to lapse.

During December, 1986, the writer staked the Vent l-5, 4-post mineral claims to cover a sequence of highly altered pyroclastic rocks located near the centre of the Riddle Creek Tertiary Basin. These claims covered some of the ground previously occupied by the Ash 2 and 3 mineral claims

The original Vent property was optioned to Zygote Resources Ltd. of Kelowna, B.C. in

August, 1987. Zygote Resources provided funds for preliminary geological and geoehemical surveys carried out in 1987 (Morrison, 1987), and for a Reverse Circulation Percussion Drill program conducted in 1989. A total of 492 metres were drilled in eight drill holes on the original Vent 1 & 2 mineral claims (Morrison, 1990). The property was returned to the writer following an appraisal of the geoehemical results from the drilling program.

During 1992, magnetometer and VLF-EM surveys were conducted over portions of the Vent 1,2 & 5 mineral claims by the writer (Morrison, 1993), and in 1993, geological, radiometric (scintillometer) and altimeter surveys were carried out over these same mineral claims (Morrison, 1994).

The property was allowed to lapse in December, 1994, due to time and financial restraints. Key portions of the property were subsequently restaked in May, 1998 and October 1999, as the Vent l-28, 2-post mineral claims. 15

HISTORY continued

In May, 1999, an experimental biogeochemical survey was conducted over a small area to the east and south of a strontium, barium, rare earth Occurrence on the Vent 10 mineral claim. Forty-three samples were analyzed for 30 elements (excluding most rare earths) and some regions with elevated strontium and barium were outlined (Morrison, 1999).

In October, ZMM, a tractor with a backhoe was used to excavate 16 test pits in the regions with elevated strontium and barium values. Only 9 of the test pits encountered bedrock and only 1 located tuffaceous sandstone/siltstone equivalent to that which occurs at the Vent 10 Road Showing, No highly significant rare earth values were recorded in the 21 samples submitted for analyses (Morrison, 2001).

Late in October, 2OLJ0,several pieces of angular float comprised of tuffaceous sandstone/ siltstone were found along and old logging road 800 metres southwest of the Vent 10 Road Showing. The rock looks identical to that at the Vent 10 Road Showing and the Vent 29-32 mineral claims were staked to cover the new discovery. The Vent 33 to 44 mineral claims were also added to the Vent Claim Group in late October, 2000, to cover prospective geology.

REGIONAL GEOLOGY AND MINF,RALlZATION

The regional geology of the Southern Okanagan is illustrated on Map 15-1961 entitled “Geology of the Kettle River (West Half)” by H.W. Little of the Geological Survey of . The map outlines several basins or outliers of Eocene rock. The most notable basins in the immediate area of the Okanagan Valley are the Whiteman Creek, White Lake, Westbank-Rutland, and Summerland Eocene basins. They are infilled with thick accumulations of poorly sorted sediments, pyroclastics and volcanic flows of tmchyte, trachyandesite, dacite and rhyodacite composition. There is local evidence of volcanic venting in each basin. 16

REGIONAL GEOLOGY AND MINERALIZATION continued

A fourth, smaller, Tertiary basin, lying 13 km west of the Summerland basin, or 10 km northwest of the northernmost portion of the White Lake basin, is centred over Riddle Creek. This basin, referred to as the “Riddle Creek Tertiary Basin” in this report, also features a volcanic centre with a sequence of flow rocks and pyrocla.&s of suspected local origin. (Although the rocks are believed to be of local origin, they do correlate with the Eocene Marron Formation of the White Lake Basin, Church, 1981.)

The Riddle Creek Eocene Volcanic Centre has many characteristics in common with the gold- bearing Eocene volcanic centres discovered at (Vault property), 30 km to the southeast, and at Whiteman Creek (Gold Star and Brett properties), 77 km to the northeast. Gold-bearing silica solutions, emanating from late fissures (which cut the volcanic piles at both Okanagan Falls and Whiteman Creek), flood out into thick porous, sedimentary and tuffaceous horizons that are capped by impermeable flow rocks. The loosely consolidated sediments and tuffs exceed 100 metres in thickness on the Vault property and 30 metres on the Whitemau Creek properties. The best gold values often occur near the fissures (shear zones), but significant values also occ~ur within the porous rock units for some distance from the shear zones. Alteration of the porous rock extends hundreds of metres from the hydrothermal conduits.

During the late 1980’s, aggressive exploration programs were carried out on at least five Tertiary epithennal gold properties in the Okanagan region. Some of the results are listed below:

(1) In 1989, Into Gold Co. announced reserves of 150,000 tons of 14 g/tonne gold for the “North Vein” on the Vault property. (2) Corona Corp., working on the Whiteman Creek Brett property, reported 26 $/tonne gold over 5 metres in 1987 from a mineralized shear zone. This discovery prompted ambitious drill programs during 1988 and 1989 by Corona Corp. (Some high grade gold was subsequently mined from this property by Huntington Resources Inc. in 1997.) 17

REGIONAL GEOLOGY AND MINERALIZATION continued

(3) Brican Resources Ltd. carried on extensive exploration programs on the Gold Star property, adjacent the Brett property, at Whiteman Creek in 1987-88. Alteration zones are extensive on the property, but good gold values eluded the drills in the late ‘80’s programs. (A drilling program conducted by Doublestar Resources Ltd. of Vancouver located the extension of the Main Brett Shear Zone on the Gold Star property in 1997.) (4) Mimtova lncorp. carried out work on the Dusty Mac property at Okanagan Falls in 1985, drilling deep holes on the old gold producing property. (5) Into Gold Co. also drilled the Venter Meadows Tigris property, 22 km southeast of Okanagan Falls in 1989. This property lies near the centre of the Venner Meadows Tertiary Basin.

The Riddle Creek Tertiary Basin contains a thick (up to 30 m) tuffaceous unit that is intensely hydrothermally altered like the tuffaceous rocks at the Vault and Whiteman Creek properties. This faulted, altered tuffaceous unit was the target for the 1989 drilling program on the Vent property. The altered tuffaceous unit continues to be one of the prime exploration targets on the property.

PROPERTY GEOLOGY

Summary of Prowrtv Geology

The Tertiary basin at Riddle Creek, like others in the district, is infilled with an assemblage of sediments, volcanic flows and pyroclastics. A basal conglomerate directly overlies granodiorite of the Nelson Intrusions (Cretaceous?). The conglomerate is in part covered by a series of andesite flows, which are in turn covered by widespread phonolite flows. The phonolite flows are covered by a thick sequence of Eocene Marron Formation trachyte flows, and at least one thick tuff unit lies interbedded within the trachyte flows near the top of the volcanic pile. A syenite plug at the southwestern margin of the Riddle Creek basin is thought to be contemporaneous with the extrusive rocks. 18

PROPERTY GEOLOGY continued

Summary of Property Geology continued

The Tertiary rocks have been folded into asymmetrical folds which arc reflected in the present topography of rounded ridges and valleys. The North Fork of Riddle Creek and Riddle Creek proper are subparallel to the axes of two plunging synclines striking southeast and east-southeast,respectively.

Hydrothermal solutions have ascended late fault zones cutting the Marron Formation on the south half of the Vent property resulting in widespread clay alteration and silicitication of the tuff unit.

The detailed geology of the Vent property has been described in several other Assessment Reports by the writer which are on file with the government (see References). Two of the more interesting exploration targets on the property will be described under the titles that follow:

Potential Eoithermal Precious Metal Zone

The potential epithemral precious metal zone which was tested with 8 Reverse Circulation Drill Holes in 1989 lies near the Vent 3 & 5 mineral claims (see Figure 3).

The results of the drilling program indicated that a strong east-west fault which crosses the region just north of the Vent 3 & 5 mineral claims intersects a strong north-south fault near the northwestern comer of the Vent 3 mineral claim.

The drill holes encountered several tens of metres of argillic alteration (clay and pyrite) and several metres of silica replacement in the lapilli tuffs comprising the southern hanging wall of the cast-west fault. Chalcedony veinlets were also common, but high temperature quartz veins were not intercepted. 19

PROPERTY GEOLOGY continued

Potential EDithermal Precious Metal Zone continued

It is thought that the quartz stockwork feeder system of the epithermal zone lies at some moderate depth ‘below the area tested with the 1989 drill holes and that the precious metals of the zone may be found within these quartz stockwork veins.

Strontium/Barium/Rare Earth Occurrence

A roadside pit excavated for road fill material exposes a thin-bedded grey to purple tuffaceous sandstone and siltstone unit at grid 29+9ON, 12+85W. The sedimentary unit lies directly on top of a phonolite flow and it is thought to be directly overlain by a trachyte flow (not exposed). The tuff unit is believed to be approximately 2 metres in thickness and it is exposed over a strike length of 15 metres near the road.

Malachite staining is present on some of the tuffaceous sediments, but no other economic minerals are visible. Seven samples of the material taken by an Tnco Ltd. geologist in 1987 yielded high strontium values (greater than 10,000 parts per million) and high lanthanum values (700 to 2055 ppm).

A test sample collected by Consulting Engineer, Mr. H. M. Jones of Vancouver, returned a similar grade of strontium and lanthamnn and this sample was resubmitted for analysis of its rare earth content. The analysis conducted by Acme Analytical Laboratories of Vancouver in December, 1987 yielded: 2035 ppm lanthanum, 2548 ppm cerium, 587 ppm neodymium, 131 ppm praseodymium, 439 ppm samarium and 132 ppm niobium for a total of 0.58% rare earths (Jones, 1988).

The strontium/barium/rare earth occurrence was the focus of a biogeochemical survey conducted in 1999 (Morrison, 1999), and a follow-up trenching program conducted in October, 2000, (Morrison, 2CKll). 20

GEOLOGICAL MAPPING PROGRAM - 2001

The Location Line of the Vent 29-32 mineral claims, which runs at a bearing of 180 degrees was used as B&line 2O+OOW for this year’s survey. Stations were measured at each 50 metres along the 500 metres of Baseline. Six grid lines spaced 100 metres apart were then established for up to 275 metres east and west of the Baseline, as illustrated on Figure 5. Stations were flagged at each 25 metre measure along all of the grid lines.

A Topolite belt chain and a Silva Ranger compass were used to establish the 2900 metres of grid line which was laid out in conjunction with the Mapping program.

General Comment

The area mapped (see Figure 5) lies on the top of a broad ridge with gentle slopes and a cover of 1 to 3 metres of clay and boulder till. Natural rock outcroppings are rare and all occur on the northeast comer of the survey area where both tmchyte and phonolite flow rocks have been mapped. The only other rock encountered during the project was angular tuffaceous sandstone/siltstone that lies along the old logging road from 18+OOW to 20+25W.

The overburden and rock units which occur in this year’s map area are described in the paragraphs that follow.

22

GEOLOGICAL MAPPING PROGRAM - 2001 continued

Geolow wrltinued

Pleistocene

A thin veneer of glacial till covers much of the map area. The depth of the till is believed to range from 1 me&e to greater than 3 metres, and the estimated depth is indicated on Figure 5.

It is believed that it is important to Imow the depth of the till if a soil geochemical survey is conducted in the survey area.

Middle to Uuner Eocene Matron Formation

Trachvte Flow Rocks

Grey trachyte flow rock occurs on a low ridge lying between L26N and L27N from 22+25W to 22+5OW. The trachyte appears to be a thin remnant which lies above phonolite flows which also outcrop at a slightly lower elevation in the area.

The trachyte is similar to that which covers much of the Vent Claim Group. It is a light grey rock with 15 to 20 %, distinctly stubby, l-15mm, anorthoclase and sanidine phenocrysts. The phenocrysts are often pink or white and chalky. Hornblende (3%) and biotite (3%) microphenocrysts range up to 3mm in size. The biotite is generally fresh, while the hornblende is often altered to a green mineral or weathered out of the rock entirely. The light grey groundmass equals 80% of the rock and is microcrystalline. 23

GEOLOGICAL MAPPING PROGRAM - 2001 continued

Geology continued

Middle to Unuer Eocene Marron Formation continued

Tuffaceous SandstoneBiltstone

Tuffaceous sandstone/silts-tone occurs as several angular pieces of float up to 60 cm in size that lie along the edge of an old logging road for 100 metres from 19+35W to 20+25W and for up to 25 metres north and south of grid station 27+OON, 18+OOW at the road.

It is believed that the tuffaceous unit lies sandwiched between a lower phonolite flow and an upper trachyte flow, and is equivalent to the tuffaceous sandstone/silts-tone unit which occurs at the Road Showing on the Vent 10 mineral claiu~

The float material is comprised of thin bedded tuffaceous sandstone and siltstone that is light grey, but often stained various shades of purple and red by hematite. The rock is also occasionally stained with weak malachite and it is notably heavy (high barium content?). The rock is similar to the tuffaceous sandstone/siltstone on the Vent 10 mineral claim in all respects. Although no samples have been submitted for analyses, it is expected that the angular float on the Vent 29-32 mineral claims will contain rare earths in similar grades as those at the Vent 10 Road Showing.

Phonolite FIow Rocks

Phonolite flow rock outcrops just southeast of the trachyte outcrop near L26N at 22+00W and along the old road near L28N from 21+5OW to 22+75W. Phonolite also occurs on the road at 26 + 25 N, 18+12.W 24

GEOLOGICAL MAPPING PROGRAM - 2001 continued w continued

Middle to Uuner Eocene Marrou Formation continued

Phonolite Flow Rocks coutiuued

The phouolite iu the map area is like that which underlies much of the northern half of the Vent Claim Group. It is generally massive to blocky, but locally weathers into a crumbly grit, particularly where the rock is highly vesicular, or where there is faulting.

The heavy grey phouolite exhibits rhomb-shaped auorthoclase pheuocrysts up to 2 cm iu length aud smaller (1 to 1.5 cm) subhedral and euhedral pheuoctysts of augite, biotite, apatite aud magnetite set in a devitrified glassy or fme-grained feldspathic matric (Church, 1981). The grey to brown resinous auorthoclase pheuocrysts arc difficult to see agaiust a gronudruass of similar colour in fresh broken rock. The pheuocrysts, equalliug 15% of the rock, can best be seen on weathered surfaces where the feldspar has been partially altered to white clay minerals. The augite pheuocrysts are a distinct feature of the phonolite aud they equal up to 10% of the rock.

Structural Geology

It is believed that the broad ridge which underlies the map area represents the crest of au auticliue which plunges gently southeasterly. The main components of the anticline are believed to be the trachyte and phonolite flow rocks between which the tnffaceous saudstoue/siltstone beds are sandwiched.

It is thought that the surface of the broad ridge more or less defmes the main ttachyte/ phouolite contact. 25

GEOLOGICAL MAPPING PROGRAM - 2001 continued

Geology continued

m continued

It appears that most of the trachyte has been eroded from the crest of the anticline, and that the tuffaceous sandstone/siltstone units lies on, or near, surface over at least some of the map area (see Cross Section LX+OON on Figure 5).

Alteration and Mineralization

Strontium, barium and rare earths are concentrated in the tuffaceous sandtione/siltstone unit at the Road Showing on the Vent 10 mineral claim and they are expected to occur in concentrations in the angular float found along the road on the Vent 29-32 mineral claims. ‘Ihe float material is similar to the Vent 10 material in all aspects. The rock is notably heavy due to a suspected high barium content, and it is stained green with malachite and purple with hematite like rock from the Vent 10 Road Showing. Although the strontium, barium and rare earth minerals are invisible, it is believed that the malachite and hematite staining are good indicators of mineralized rock.

The tuffaceous sand.stone/siltstone samples collected from the Road Showing on the Vent 10 mineral claim in July, 2OC0, yielded consistent high values of cerium (3260 to 4340 ppm), lanthanum (2550 to 3130 ppm) neodymium (582-676 ppm) and barium (greater than 20,000 Ppm).

The mineralogy of the rare earths has not been studied, but the ratios of the various elements suggest that the mineral bastnaesite may be present in the sediments. Bastnaesite is a fluorocarbonate mineral that is the “ore mineral” at several rare earth deposits around the world. 26

GEOLOGICAL MAPPING PROGRAM - 2001 continued

Geology continued

Alteration and Mineralization continued

The phonolite underlying much of the northern portion of the Vent Claim Group contains abnormally high rare earths (i.e. cerium up to 401 ppm lanthanum up to 229 ppm, neodymium up to 170 ppm and scandium up to 10.2 ppm; Morrison, 2001). It is believed that the phonolite is the primary source of the heavier rare earths which are concentrated in the tuffaceous sediments, Scandium, which has a low specific gravity, is not concentrated in the sediments It occurs in greater amounts in the unweathered phonolite at several sites across the property.

The alteration and mineralization related to the epithermal gold prospect on the southern portion of the Vent Claim Group has already been discussed in several previous reports (see Morrison, 1987, 1990, 1994). 27

DISCUSSION

The main purposes of this year’s mapping program was to assess the significance of a new discovery of tuffaceous sandstone/siltstone on the Vent 29-32 mineml claims. The tuffaceous sandstone/siltstone occurs as large pieces of angular float along an old logging road 800 metres southwest of the Road Showing strontium/barium/rare earth occurrence on the Vent 10 mineral claim. The angular float and the rock at the Vent 10 Road Showing look identical.

This year’s evaluation was greatly hamper& by a general cover of till which is believed to range from 1 metre to 3, or more, metres deep over much of the map area. In spite of the widespread till, some bedrock was mapped and a general understanding of the geology was achieved.

It seems that the top of the broad ridge represents the crest of an anticline (see Structural Geology) and that the present surface closely approximates the main contact between trachyte and phonolite flow rocks. The tuffaceous sandstone/siltstone tuff occurs intercalated between the upper trachyte flows and lower phonolite flows, and it is believed that it could underlie a considerable area in the map region.

It is believed that the angular tuffaceous sandstone/siltstone float which occurs along the old road from 19+35W to 20+25W was dislodged from bedrock during road building and ditching activities. The ditch is now partially filled and overgrown with brush so it is impossible to see the bedrock, but it is thought to lie just l/2 to 1 metre below surface on this portion of the property.

It is recommended that samples be collected from some of the angular float to see if it contains rare earth values equivalent to those at the Road Showing on the Vent 10 mineral claim. It is also recommended that some experimental soil geochemical samples be collected from the new grid where the till is not too excessive and that these samples be analyzed for the relatively inexpensive 30 ICP elements. Elevated strontium and barium values in soils should indicate the areas that would be the most prospective for rare earths. 28

DISCUSSION continued

The geological mapping program and soil sampling program could also be extended to the north of this year’s grid area. The thick forest and tough deadfall conditions have hampered work on this portion of the property, but the possibilities of new discoveries are considered very good. ~~

A tractor with a backhoe could be used to re-excavate the ditch along the old road from 18+5OW to 21+OOW without stringent permitting conditions. Such a ditch could possibly expose the tuffaceous sandstone/siltstone unit over a length of 250 metres. Any new strong strontium and/or barium soil anomalies could be trenched during the same program.

A resource of economic rare earth mineralization could lie on, or near, surface over an area of 25 hectares on the Vent 29-32 mineral claims.

In the January, 2001 Assessment Report, a recommendation was made to explore the Vent 7- 10 mineral claims where the tuffaceous sandstone/&stone unit is believed to underlie a thin cover of trachyte over an area of one square kilometre. ‘Ibis work program should await the results from the programs listed above.. 29

CONCLUSIONS and RECOMMENDATIONS

This yeais geological mapping program was conducted on portions of the Vent 30 - 32 mineral claims where some interesting angular float was discovered in October, 2000. The float is comprised of a thin-bedded tuffaceous sandstone/&stone unit which is identical to that which hosts strontium, barium and rare earth mineralization at the Road Showing on the Vent 10 mineral claim 800 metres to the northeast.

This yeah work was hampered by a general blanket of till which ranges from 1 to 3, or more, metres in depth over much of the map area. In spite of the till, some trachyte and phonolite volcanic flow rocks were mapped and many additional pieces of angular tuffaceous sandstone/siltstone float were found along the old road which crosses the map area.

The mapping indicates that the area covers a broad ridge underlain by trachyte and phonolite flow rocks which are folded into an anticline that plunges gently to the southeast sub-parallel to the anticline which underlies the Vent 7-10 mineral claims 1 km to the east.

It is believed that the surface of the broad ridge approximates the tmchyte[phonolite contact and that the thin layer of tuffaceous sandstone/&stone that is interbedded between the upper tmchyte and lower phonolite may occur at, or near, surface over much of the map area (25 hectares).

It is recommended that samples of the angular float be analyzed for mre earths. If the results are positive, then some experimental soil geochemistry is recommended over select areas on the new grid.

If strontium or barium soil anomalies are outlined, then a tractor with a backhoe could be used to examine the anomalies and also re-excavate the ditch along the side of the old road. 30

CONCLUSIONS ANI) REXOMMENDATIONS continued

It is recommended that the Vent 29-32 targets be given priority over the Vent 7-10, 20 & 22 targets which were recommended in a January IO,2001 Assessment Report. Although the latter target covers a larger area (100 hectares), it is believed that much of the rare earth bearing tuffaceons sandstone/s&tone may lie under a cover of trachyte which would require a drilling program to evaluate.

December 30,200l Kelowna, B.C. MurkYMorrison - B.Sc. 31

REFERENCES

Church, B.N. 1982: The Riddle Creek Uranium-Thorium Prospect; Geological Fieldwork 1981; B.C. Ministry of Energy, Mines and Petroleum Resources, pp. 17-22. culbert, KU. 1978: Geological, Geochemical and Geophysical Report on the Agur-Ash Property, Riddle Creek, B.C.; Assessment Report #6750.* Jones, H.M. 1988: Report on the Vent Property, Riddle Creek, Summerland Area, B.C., Gsoyoos Mining Division; Company Report for Zygote Resources Ltd. for listing on the Vancouver Stock Exchange. Little, H.W. 1961: Geology, Kettle River (West Half) British Columbia; G.S.C., Map 15-1961. Morrison, MS. 1987: Geological and Geochemical Assessment Report, Vent Property, Summerland Area, Osoyoos Mining Division.* 1990: Percussion Drilling Assessment Repon, Venr Group of Mineral Claims, Summerland Area; Osoyoos Miig Division.* 1993: Geophysical Assessment Report, Vent Claim Group, Summerland Area, Osoyoos Mining Division.* 1994: Geological Assessment Report, Vent Claim Group, Sumrnerland Area, Osoyoos Mining Division.* 1999: Biogeochemical Assessment Report, Vent Claim Group, Summerland Area, Osoyoos Mining Division.* 2001: Geochemical Assessment Report, Vent Claim Group, Summerland Area, Osoyoos Mining Division.*

* Assessment Reports on file with the British Columbia Ministry of Energy and Mines. G.S.C. = Geological Survey of Canada. 32

APPENDIX A

STATEMENT OF OUALIFKATIONS

I, Murray Morrison, of the City of Kelowna, in the Province of British Columbia, do hereby state that:

1. I graduated from the University of British Columbia in 1969 with a B.S. Degree in Geology.

2. I have been working in all phases of mining exploration in Canada for the past thirty- two years.

3. During the past thirty-two years, I have intermittently held responsible positions as a geologist with various mineral exploration companies in Canada.

4. I have conducted several geological , geochemical, and geophysical surveys on mineral properties in Southern British Columbia during the past thirty-two years.

5. I conducted the Geological Mapping Program on the Vent 30-32 mineral claims..

6. 1 own a 40% interest in the Vent Claim Group.

December 30,200l Kelowna, B.C. 33

APPENDIX B

STATEMENT OF EXPENDITURES ON THE VENT CLAIM GROUP

Statement of Expenditures in connection with a Geological Mapping Program carried out on the Vent Claim Group, located 16 km southwest of Summerland, B.C. (N.T.S. Map 82-E 12W) for the year 2001.

GEOLOGICAL MAPPING PROGRAM (25 hectares)

M. Morrison, geologist 2 days @ $3OO.oO/day $600.

4 x 4 pick-up truck 2 days @ $75.OO/day (including gasoline and insurance) 150. Meals and lodging no charge Flagging, belt chain thread 20. Sub-total: $ 770. REPORT PREPARATION COSTS M. Morrison, geologist 2 days @ $300.00/day $ 600. Drafting 53. ‘W% 53. Copying reports 20. Subtotal: $ 726. GRAND TOTAL: $1,496.

I hereby certify that the preceding statement is a true statement of monies expended in connection with the Geological Mapping Program carried out October 14 & 15,2001.

December 30,200l Kelowna, B.C.