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Chilliwack River - Slesse Creek Area New Westminster Mining Division Southwestern British Columbia

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Chilliwack River - Slesse Creek Area New Westminster Mining Division Southwestern British Columbia - GEOLOGICAL and DIAMOND DRILLING ASSESSMENT REPORT on the SOUTH SLESSE LIMESTONE QUARRY CHILLIWACK RIVER - SLESSE CREEK AREA NEW WESTMINSTER MINING DIVISION SOUTHWESTERN BRITISH COLUMBIA Longitude- 12 1”42’3VW/Latitude 49”04’35”N NTS 92H/4E - Permit No. NAN-97-07001 10-94, MX-7-114 Prepared for . Machine 86Fibers Ltd. 600-42nd Avenue, S.E. P.O. Box 1325 ? Calgary, Alberta T2P 2L2 *\ ‘/ ‘ ;T<’ Phone: 403-265--6022, Fax: 403-266-264 A ‘.>.a L“: ;” cz! Prepared by ~.,q ,*y ;:cj ‘2. i:ilic;;y>,&_pi J. T. SHEARER, M.Sc., P.Geo. ,..~,, ,- 3 ,;;> “-.> HOMEGGLD RESOURCES LTD. .#:,~,. ~;;1::%,,i g 2; 2 i” ,, % , $ “3 ,“: #5-2330 Tyner St. “.*_&F s” :;22 Port Coquitlam, B.C. “5r;5 v3c 221 ‘“”,:& (5 - ? Phone/Fax: 604-944-6 102 *” .,.I ix “‘2 %i July 15, 1998 P%e ,$ Fieldwork completed between October 4 8e November 25, 1997 ;z 86 March 24 - June 30,199s 1: P TABLE OF CONTENTS !3fs . LIST OF FIGURES and TABLES ................................................................ SUMMARY .............................................................................................. iii _ INTRODUCTION ....................................................................................... 1 LOCATION and ACCESS ........................................................................... 2 CLAIM STATUS ........................................................................................ 4 _ REGIONAL GEOLOGY.. ............................................................................. 5 PROPERTY GEOLOGY and CaC03 RESOURCES ......................................... 8 , DIAMOND DRILLING .............................................................................. 11 GEOPHYSICS ......................................................................................... 13 CONCLUSIONS and RECOMMENDATIONS ............................................... 14 COST ESTIMATE for FUTURE WORK ...................................................... 15 . , REFERENCES ........................................................................................ 16 APPENDICES Appendix I Statement of Qufications .................................. 17 Appendix II Statement of Costs ............................................... 18 Appendix III Assay Certificates, Chemex Labs ........................... 19 Appendix IV Grinding Report, B.C. Research ............................ 20 Appendix V Diamond DriII Logs ............................................... 21 i / LIST OF ILLUSTRATIONS and TABLES ILLUSTRATIONS Fonowing PW?X? FIGURE 1 Location Map ...................................................................... 1 FIGURE 2 Topographic & Geological Map, 1:50,000 ............................ 2 FIGURE 3 Claim Map, 1:50,000 ........................................................... 4 FIGURE 4 Regional Geology, 1:250,006 ............................................... 5 P FIGURE 5 Interpretation of Major Structures in the Slesse Creek Area ........................................... 6 FIGURE 6 Local Geology, 1:50,000 ..................................................... 7 FIGURE 7 Detail Geology of Slesse Limestone Quarry, 1:4,000 ..... ..in pocket FIGURE 8 Cross Section Through Limestone Deposit DrilIhole 8898-2, 1:4,000 ........................................... 8 c FIGURE 9 Cross Section Through Limestone Deposit DrilIhole 8898-1, 1:4,000.. ........................................ .9 FIGURE 10 Cross Section Through Limestone Deposit Drillhole 5598-3, 1:4,000.. ........................................ 10 FIGURE 11 Longitudinal Section through Limestone Deposit, 1:4,000 ...................................... 11 FIGURE 12 Airborne Magnetometer Survey, 1:63.360 ........................... 13 TABLES E!?e TABLE I List of Claims . 4 ,-, TABLE II Results of 1997 Sampling, Major Oxides . 9 . TABLE III 1998 Diamond DrilIing Program . 11 / ii SUMMARY 1, Acquisition and a preliminary evaluation of the Slesse Limestone Quarry was undertaken between July and October 1997 for LG. Machine & Fibers Ltd. The CaCO3 resource at / Slesse Creek is the source for the tiller requirements of the new manufacturing plant operated by IKO Pacific in Sumas, Washington. c 2. A 120 metre thick Lower Permian sequence of grey, recrystaIIized limestone with complexly folded and interbedded greywacke, chert and sxgillite of the Devonian to Permian Chilliwack Group, is exposed for about 700 metres along the northwest flank of a northeast trending knoll immediately southwest of the junction of Slesse Creek and Chilliwack River. 3. The area is covered by Selesse 1-l 1 Mineral Claims, totalIing 11 units. The northeast end of the limestone unit is held as a Special Use Permit by the Ministry of Transportation and Highways amounting to about 5 acres. 4. Total estimated tonnage produced f?om this Highways qusny is approximately 400,000 tons between the late 1970’s and the present. This quarry has most recently produced coarse rip-rap for flood control along the Chilliwack River in 1996 which is normally required in the late Fall and early spring high water. 5. The general carbonate section has been described in the past as consisting of an upper 60 metre thick limestone member separated from a lower 30 metre thick limestone member by approximately 30 metres of cherty argillite and greywacke. 6. A chip sample in 1947 across the top 30 metres of the upper limestone member analyzed: 43.6% CaO, 2.5% MgO, 15.1% insolubles, 0.47% l&03,0.42% Fe203, 0.05% MnO, 0.03% PzO5, 0.06% S and 37.8% LOI (loss on ignition) (EMPR Bulletin 40 page 41). 7. A sample collected Tom the Large rip-rap material in 1997 analyzed: 50.59% CaO, 0.91% MgO, 8.04% SiO2,0.15% S, 0.67% AlzOa, 0.50% Fe203, 0.12% KZO, 0.07% Na20 and 38.89% LOI. 8. A total of 367.9m. (1207ft) of diamond driUing was completed in late March and early April 1998. This drilling indicated that the limestone section is over 180m thick at the centre of the edge-knoll. Assaying and physical tests are ongoing at the company’s research facility in Brampton, Ontario. , 9. The thickness of the upper limestone unit (>lOOm) has the potential over a 600m strike length and width of 2 10m to contain in an initial open cut =A” approximately 14 million tons of relatively siliceous carbonate material. There is also potential to define several times this amount by deeper diamond drill&. Further mining in Open Cut B, C & D are estimated based on preliminary results to contain “B+C” 16.4 million tonnes and “D” 3 1.7 milIion tonnes. Therefore an ultimate resource to the 308m elevation has the potential to contain 6 1 million tonnes of limestone. 10. A program of diamond drilling on a 150m square grid of 1OOmholes along the top of the ridge is recommended to confirm the uniformity of the CaC Encouraging results from the diamond drilIing could lead t continuation to the south of Bench 5. m . onsulting Geologist L INTRODUCTION The Selesse 1 - 11 mineral claims cover the limestone (CaCos) resources immediately southwest of the Slesse Qusrry of the Ministry of Highways. Acquisition and preliminary evaluation of the steep sided knoll on which two main limestone units are exposed was completed in July and October 1997. The general carbonate section consists of an approximately 60m thick Permian limestone member separated from a lower 30 metre thick limestone member by about 30 mews of cherty argillite and greywacke. Sampling in 1997 and previously indicate that the upper carbonate unit assays up to 50.59% CaO with very low impurities except for around 7-S% SiOa. The silica content is mainly from ameboid shaped chert nodules and chert lenses in the Upper Limestone member. Sorting in the pit of run of mine material may be able to reduce the silica content and leave the oversize for rip rap applications. I.G. Machine 86 Fibers Ltd. requires CaCo3 for fXer applications in manufacture of specialty roofing shingles. The relatively high silica content and resulting abrasion does not appear to be a factor in this process. Mining and trucking costs are more important considerations. The possibility of larger truck loads f?om Canada being accepted into the USA under Free Trade is one of the positive facets. Geological mapping and diamond drilling were completed in 1998. The longest drillhole (SS98-3) was a vertical hole over 183m (600 feet) in length which encountered limestone along it’s entire length. The expected shaly horizon was not observed, suggesting that the recumbent folding in the area is more complex than the initisl interpretation of previous mapping. A legal survey was completed on the Selesse #l Mineral Claim and a mining lease is in the tinal stages of application. LOCATION and ACCESS ~eS&l;;&-11 y eral clsims are situated on a steep sided knoll rising to an elevation m $ &t) above the Chilliwack River immediately west of the mouth of Slesse Creek. this point is about 20.9 km (13.1 miles) by road easterly from Vedder Crossing bridge and about 26 km from the railway at Ssrdis. The claims are covered by second growth forest which hss been thinned and may be ready for harvesting again in 20 or 30 years. The Forestry road that passes south along the limestone outcrops switches at higher elevations to the headwaters of Borden Creek. A road log Tom the Tram Canada Highway near the IKO plant is as follows: Road Log Distance Remarks OkIll Csnada- Exit 92 at Abbotsford, Intersection of B.C. Highway 11 and the Tram Canada Highway # 1 Freeway 13 km Freeway Exit 104 Exit to Cultus lake, Yarrow, No. 3 Road, Follow No. 3 Rd to Yarrow Central Road. 18.5 km Yarrow Central Road Yarrow Townsite 20.7 km
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