Emory Creek Nickel Project
Claim ID Numbers: 845260, 848432
New Westminster Mining Division NTS 092H05
Project Area Location: UTM NAD 83: Zone 10, 605000 East, 5481000 North
Registered Owner: Doug Warkentin Operator: Crucible Resources Ltd.
Upper Emory Area - Exploration and Geochemical Sampling Report
July 19, 2012
Prepared By: Doug Warkentin, P.Eng
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TABLE OF CONTENTS
Introduction ……..………….3
Location and Access ……….………..3 Tenure Information ……….………..3 Regional Geology ….……..………6 Local Geology …………..…….6 Property History ……………..….8 Summary of Work …………..….…9
Work Program …………..……10
Sampling and Data Collection ……….……....10 Interpretation of Results ……….……….11
References …………….….11
Author’s Qualifications …………….….13
Statement of Costs …………….….14
FIGURES
1 Emory Creek Nickel Project Location Map ……..………….4 2 Project Tenure Outline ………..……….5 3 Regional Geology ………..……….7 4 Airborne Magnetic Images ………………...8
TABLES 1 Emory Creek Nickel Project Mineral Tenures ……..………….5 2 Rock Sample Analytical Results ……………..…10
Appendix 1 – Sample Location Maps
Appendix 2 – Assay Reports
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Introduction
Location and Access
The Emory Creek property lies in the Southern Lillooet Ranges of the Coast Mountains, approximately 12 km northwest of Hope, BC and 10 km west of the community of Dogwood Valley on the Trans Canada Highway. The general project location is shown in Figure 1.
The south eastern portion of the property has limited four wheel drive or ATV access along BC Hydro power line access roads and old logging roads in the upper Emory Creek valley. While some of these roads are in good condition, the original access along the lower part of Emory Creek from the Trans Canada Highway has been cut off by landslides, requiring access from Stulkawhits Creek to the south along a north-south BC Hydro access corridor that connects to the old Emory Creek Road from BC Nickel Mine Road. This access is suitable for high clearance four wheel drive or ATV only and passes through an area of extensive interconnecting ATV trails. The Emory Creek road and spurs provide access to most areas of the property on the south side of Emory Creek, although some spurs in the upper part of the valley are fairly heavily overgrown. Lower in the valley an intact bridge crosses to the north side of the Creek, but the condition of the roads that access the north side of creek in the property area is unknown.
Access to the north western part of the property is from Harrison Lake. From the town of Harrison Hot Springs the East Harrison FSR provides two wheel drive access north along the lake to Cogburn Creek. The Cogburn Creek FSR is a maintained two wheel drive forestry road the follows the north side of Cogburn Creek to the east-northeast. From this road a secondary forestry road crosses to the south side of the creek and back-tracks to Settler Creek. This road then follows Settler Creek to the southeast nearly to its headwaters, at the north boundary of teh Emory Creek property. The current condition of this road is unknown, but active logging has occurred in the upper part of this valley in recent years.
Between these two valleys the property includes about 7 kilometres of very rugged mountainous terrain which would only be accessible by helicopter and requiring mountaineering-type traverses.
Tenure Information
The Emory Creek Nickel Project currently consists of nine Mineral Titles Online claims with a total area of 1972 hectares. In the southeast part of the property small areas of the MTO claims are underlain by pre-existing legacy claims and active crown grants related to the historical Giant Mascot Nickel Mine which borders the property to the east. The claims are all owned by the author, and Crucible Resources Ltd. has an option to acquire 100% ownership of these claims. Claim details are shown in Table 1. Expiry dates shown in this table reflect the application the work described in this report.
Figure 2 outlines the tenures of the Emory Creek Project.
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EmoryEmory CreekCreek
MapMapMap Center:Center:Center: 54.4781N54.4781N54.4781N 124.7082W124.7082W124.7082W
Figure 1 – Emory Creek Project Location Map
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Table 1: Emory Creek Project Mineral Tenures Tenure Number Claim Name Owner Issue Date Good To Date Area (ha) 845260 UPPER EMORY 145582 (100%) 2011/feb/02 2012/aug/26 503.8 845891 SOE S FR 145582 (100%) 2011/feb/09 2012/oct/02 21.0 848432 SOE N 145582 (100%) 2011/mar/09 2012/aug/26 188.9 851631 EMORY CREEK SW 145582 (100%) 2011/apr/13 2012/aug/26 230.9 851635 SETTLER CREEK 145582 (100%) 2011/apr/13 2012/aug/26 335.5 926504 SETTLER SE 145582 (100%) 2011/oct/28 2012/oct/28 83.9 926505 EMORY CREEK NW 145582 (100%) 2011/oct/28 2012/oct/28 146.9 1005562 EMORY-BAIRD 145582 (100%) 2012/jun/29 2013/jun/29 146.9 1005862 SETTLER E 145582 (100%) 2012/jun/29 2013/jun/29 314.6 Total Area 1972.5
851635851635851635 092H.053
100586210058621005862
OX
926504926504926504
EMORY ZONE 100556210055621005562 COGBURN
926505926505926505
PRIDE OF EMORY 848432848432848432 092H.043 845260845260845260 092H.042 851631851631851631 STAR OF EMORY 3
845891845891845891
ZOFKA RIDGE
Map Center: 49.4936N 121.5953W MapMapMap Center:Center:Center: 49.4936N49.4936N49.4936N 121.5953W121.5953W121.5953W BIG NIC
Figure 2 – Project Tenure Outline
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Regional Geology
The Emory Creek Nickel Project lies near what is interpreted as the eastern margin of the Wrangellia Terrane, near its contact with the Bridge River Terrane. The area is also near the eastern margins of the Coast Plutonic Complex. The property lies entirely to the west of the Fraser River fault system. In this area large bodies of metamorphic rocks are intruded by plutonic quartz diorites and granodiorites. Trending in a northwest – southeast direction is a broad assemblage of older rocks including mafic to ultramafic intrusive, schists and diorites Figure 3). These rocks, and particularly the mafic units are sometimes referred to as the Hope Nickel Belt.
The Hope Nickel Belt is host to both massive and disseminated nickel or copper-nickel, mineralization associated with ultramafic rocks. Known nickel occurrences include the Giant Mascot Mine, which historically was the largest nickel producer in BC, along with less developed prospects such as Star of Emory, Cogburn, Jason and Big Nic. The ultramafic rocks can include large bodies of peridotite, serpentinite and other ultramafic rocks carrying high levels of magnesium, such as the Emory Zone in the southwest part of the belt. In the southeast the belt is more altered and affected by the large scale quartz diorite intrusions of the Spuzzum Pluton. In the areas mined previously the ultramafic rocks for a 2.5 by 1.5 km body between metamorphic rocks and intrusive. The body includes areas of gabbro and hornblendite along with smaller sections of peridotite and dunite that hosted numerous ore bodies of both massive and semi-disseminated sulphide mineralization. Sulphide mineralization consisted mainly of chalcopyrite and pentlandite with pyrrhotite.
In addition to the ultramafic bodies, as noted, in the east much of the area is underlain by intrusive rocks, primarily from the quartz diorite Spuzzum Pluton. There are also some more recent smaller granodiorite intrusive to the north and in the central part of the mafic belt. To the west lie extensive areas underlain by Slollicum Schist, and the older Cogburn Schists occup a Central position in the mafic belt. To the east of the Cogburn Schist, intrusive rocks grade from diorite to Gabbro, with the ultramafic rocks occurring on both sides of the mafic belt.
Local Geology
The Emory Creek Property extends from the western margins of the Giant Mascot site to the northwest along the western margin of the Hope Nickel Belt, covering known and projected zones of prospective ultramafic rocks along with adjacent intrusives and schists. The upper Emory Creek valley area, including large parts of the Giant Mascot site, is mapped as quartz diorite. This area also includes smaller bodies of mafic and ultramafic rocks, some of which are known host copper-nickel mineralization. Over the mountainous section of the property extending northwest from Emory Creek, elongate bodies of ultramafic are mapped along with diorite and gabbro and smaller areas of metamorphic rocks and schists. Airborne magnetic data is a good indicator for ultramafic rocks in this area and available data indicate an even wider extent of this type of rock than that shown in regional mapping (Figure 4).
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KTmm
PzMzum
PrPzY
OX
OlMigd PzMzum
EMORY ZONE MKqd COGBURN PzMzCS KTmm
PzMzum
Emory Creek Project Area PRIDE OF EMORY KTSl
STAR OF EMORY 3 KTmm
MKqd
ZOFKA RIDGE
BIG NIC
KTmm – Cretaceous to Tertiary – mid amphibolite/andalusite grade metamorphic rocks KTSl – Cretaceous to Tertiary Slollicum Schist – greenstone, greenschist metamorphic rocks MKqd – Mid-Cretaceous – quartz dioritic intrusive rocks OlMigd – Oligocene to Miocene – granodioritic intrusive rocks PrPzY – Proterozoic to Paleozoic Yellow Aster Complex – dioritic intrusive rocks PzMzCS – Paleozoic to Mesozoic Cogburn Schist – greenstone, greenschist metamorphic rocks PzMzum – Paleozoic to Mesozoic - ultramafic rocks Figure 3 – Regional Geology
The main ultramafic body at the southeastern end of the property, which hosts the Giant Mascot Nickel mine is referred to as the Pacific Nickel Complex and is the most well defined portion of the Hoper Nickel belt. The rocks of the Pacific Nickel Complex form an irregular stock-like mass up to 3 kilometres across. The northeastern half of the stock consists of barren pyroxenites and peridotites with little hornblende, while the southwestern half of the stock is a highly variable, hornblende-rich assemblage of mineralized peridotites and pyroxenites that contains seventeen orebodies of various sizes associated with the mine. These orebodies occur along a line
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trending about 285 degrees and many do not outcrop, being discovered through under exploration and development. Smaller mineralized bodies of hornblende-pyroxenite and peridotite have also been discovered further to the west, including the Star of Emory, an ore body with zones of massive pyrrhotite, chalcopyrite and pentlandite which lies along the western boundary of the Emory Creek property.
While the Emory Creek property itself has been prospected intermittently since the 1970’s and at least two airborne surveys have been flown, only one significant mineral occurrence has been reported. This is the SPX occurrence, a pyroxenite dyke carrying sulphides and significant levels of copper and nickel mineralization. This occurs along the southernmost logging spur near the southeast corner of the property. Pyroxenites have also been reported on the north side of Emory Creek, but no significant zones of sulphide mineralization have yet been identified.
Figure 4 – Airborne Magnetic Images
Property History
Early exploration dates back to the Fraser River gold rush of 1858, when bars at the mouth of Emory Creek where a major centre of placer mining activity on the lower Fraser. Some gold- quartz exploration was reported near the lower Fraser canyon in the 1890’s, but the first record of exploration in the vicinity of the Emory Creek property was the discovery of the nickel-copper deposits that became the Giant Mascot Nickel Mine around 1924. Despite the continuing
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exploration and development of the mine, and its operation beginning in 1958, no record has been found of exploration further to the west and northwest until the 1970’s.
Between 1959 and 1974, the Giant Nickel Mine produced 32,303,000 kg of nickel and 14,294,500 pounds of copper from 4,200,000 tonnes of ore grading 0.77% Ni and 0.34% Cu. Significant quantities of cobalt were also recovered as a by-product. In October 1, 1973 the operator reported mineable reserves of 864,974 tons grading 0.75% Ni and 0.30% Cu, with an additional indicated low grade reserve of 4,218,000 tons grading 0.33% Ni and 0.11% Cu.
Giant Mascot formed the ‘Nickel Syndicate’ in the early 1970’s to explore the area between the mine and Harrison Lake in an effort to identify additional ore reserves. In addition to the discovery of the Star of Emory zone about 2 km to the west of the mine workings, several zones of ultramafic rocks with variable nickel mineralization were found further to the northwest in the valleys of Cogburn and Talc Creek. The Nickel Syndicate properties included much of the current Emory Creek property and an airborne survey was conducted over this area along with fairly extensive contour geochemical soil sampling. Anomalies were shown in results from both programs, but there does not appear to have been further follow-up in this area, likely due to the relative inaccessibility of the most promising anomalies in comparison with other areas being explored at the time.
Giant Mascot closed the mine in 1974 and had curtailed exploration efforts in the area by 1976, and there is no record of additional work in the area until 1987 when there were minor sampling programs at the mine site and nearby areas spurred by the PGM potential of the nickel mineralization. This included sampling of the old mine workings and tailings by Mascot Gold Mines Ltd. The next period of activity o the property began around 2000 where different parts of the current Emory Creek property were held by 606896 B.C. Ltd. and by Santoy Resources Ltd. Both conducted small geochemical and prospecting programs within the current project boundaries. Santoy’s work in 2001 in particular identified significant stream sediment anomalies on the north slope of the upper Emory Creek Valley and also included the discovery of the SPX zone (grab samples returned values up to 0.38% Ni, 0.76% Cu and 0.09% Co). Santoy also carried out an airborne survey over parts of the current property area (see Figure 4). In 2005 and 2006 Pacific Coast Nickel Corp. carried out additional work at the SPX zone and surrounding area including prospecting, grab sampling, ground magnetometer measurements and a small airborne magnetic and EM survey over part of the property not covered by the Santoy survey (also shown in Figure 4). The Pacific Coast sampling returned values up to 0.14% Cu and 0.18% Ni and up to 0.038 g/t Pt (0.084 g/t total PGM) from sulphide-bearing float samples in the SPX area.
Since 2006 there is no additional record of work on the property.
Summary of Work
Two days were spent on the Emory Creek Nickel project in October of 2011 and May of 2012 for site reconnaissance sample collection and prospecting. All work was carried out in the Upper Emory Creek area, north and west from the Giant Mascot Nickel Mine site. The objectives included assessment of road condition and access to the SPX area and nearby magnetic and EM anomalies, collection of typical mineralized peridotite and/or pyroxenite samples and to begin geochemical sampling of favourable areas identified by previous owners. In total five float rock samples and three soil geochemical samples were collected for analysis and any bedrock outcrops found were prospected.
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Work Program
Sampling and Data Collection
Samples were collected on two separate site visits, the first on Oct. 29th, 2011 and the second on May 18th, 2012. Relevant sample locations are identified on the map in Appendix 1. Assay results for rock samples are summarized in Table 3, while results for the soil samples are shown on the map in Appendix 1. Complete assay reports are included in Appendix 2. All float rock samples were dried, crushed, split and pulverized before being analyzed. Two samples were analyzed for gold by fire assay and for a 34 element scan by ICP-AES, while three were anlzed using the 34 element ICP-AES scan only. Soil samples were dried and screened at 80 mesh before being analyzed for gold, platinum and palladium by fire assay as well as for the 34 element scan by ICP- AES.
The locations visited and samples collected are described below.
Float Rock Samples
On Oct. 29th 2011 the site visit consisted mainly of prospecting and a general site evaluation. Two samples of quartz float were collected from small stream beds crossing the main Emory Creek power line access road. Both steams contained significant quantities of small quartz float showing some limonitic staining but few visible sulphides. While the target mineralization is Cu-Ni sulphides, these two samples (CR11029-1and -2) were collected to test for possible unrecognized precious metal vein occurrences, as gold in quartz has been previously reported a few kilometres to the east. Both samples assayed below detection for precious metals and base metal values were also low.
Table 2 - Float Rock Sample Description and Analytical Results Sample # Date Description Au Ag Cu Ni Co oz/t oz/t % % % CR11029-1 29/10/2011 Quartz float in stream at road crossing <0.0001 <0.05 0.006 0.002 0.001 CR11029-2 29/10/2011 Quartz float in stream at road crossing <0.0001 <0.05 0.004 0.002 0.001 CR20518-1 18/05/2012 Float rock with heavy Fe oxide staining n/a <0.05 0.001 0.006 0.003 CR20518-2 18/05/2012 Altered diorite talus from small quarry n/a <0.05 0.008 0.004 0.001 CR20518-3 18/05/2012 Composite of highly mafic float n/a <0.05 0.016 0.049 0.004
The second visit, on May 18th, 2012 was mainly focused on prospecting and sampling an area below the SPX zone which appeared to lie within a magnetic high and where a weak airborne EM anomaly was reported in previous work. In addition to some preliminary soil sampling in this area, some highly iron stained float rock was noted along the edge of the road cut and a sample was collected (CR20518-1). Further to the east along this road is a small quarry or pit. Rock is primarily diorite with relatively little mineralization evident. This excavation is therefore interpreted as a rock quarry for construction material rather than an exploration pit. Small alteration zones with minor mineralization were observed in the talus rock, however, and a sample of this was collected (CR20518-2). The final rock sample collected (CR20518-3) was a composite of mafic float material along the main power line access road where it passes to the north of the Star of Emory occurrence. This sample was collected to provide a baseline for mineralization in mafic rocks outside of the ore zones and for possible future testing of low grade bulk processing options.
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Soil Samples
A total of three soil samples were collected on the up-slope side of the lower access road, on the hillside below the SPX zone. Several attempts to collect samples a short distance upslope were abandoned due to a heavy cover of humus and woody debris preventing access to the B horizon. The first sample (CR20518-S1) was collected near a small stream bed and was initially intended as a stream sediment sample, but no sediment could be collected, so a soil sample was collected a short distance up the west bank of the stream cut. The other two soil samples (CR20518-G1 and – G2) were collected along the road to the east, in locations where mineral soil could be accessed. Again definite access to B horizon soil was difficult, and these samples may have included some sediment from roadside run-off flows. Results of PGM analysis for these samples all showed negligible results and base metal values were also relatively low. The only notable feature in these results is some possible zonation, with the two western samples showing significantly higher levels of copper, nickel, cobalt and chromium than the eastern sample.
Interpretation of Results
None of the samples collected gave strongly anomalous results. Soil sampling was very preliminary in nature and has not fully tested even the single weak EM anomaly targeted. Soil sampling was difficult in this area due to dense vegetation and a thick humus layer, which may have affected results. Higher values in the targeted metals in the westerly samples may be an encouragement to begin additional sampling in that direction.
Vein-type float material proved to be barren of significant precious or base metal values. One float sample (CR20518-1) showed significant mineralization in the form of oxidized iron sulphides and slightly anomalous arsenic, but no significant base metal values. Altered intrusives also showed minimal values, but the samples of mafic float material did show fairly strongly anomalous nickel content, along with anomalous copper cobalt and chromium values. The sulphur content of this sample also implies that at least some of the metals likely occur as sulphides. While the values in this sample are sub-economic, this could be an indication of the potential for low grade mineralization in mafic rocks outside of actual high-grade ore zones. This is a possible target for future work on the property.
References
BC MINISTRY of ENERGY and MINES, Minfile Records.
CROSBY, R.O., 1970, Report on Airborne Geophysical Surveys, Nickel Syndicate, Hope Area, British Columbia, for Giant Mascot Mines Ltd., BC Assessment Report #2583.
MCLAREN, M., 2005, Report on a Helicopter-Borne AeroTEM(c) II Electromagnetic and Magnetic Survey on the Emory Creek Property, for Pacific Coast Nickel Corp., BC Assessment Report #28020.
ROTE, I., 1975, Report on the Star of Emory Diamond Drilling, for Giant Mascot Mines Ltd., BC Assessment Report #5385.
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SADLIER-BROWN, T.L., 1987, Report on PT Claims, for International Consolidated Platinum Inc., BC Assessment Report #16294.
STEPHENSON, L.G., 2002, Report on a Geological Mapping and Geochemical Stream Silting Survey on the Harrison Lake Property, for 606896 B.C. Ltd., BC Assessment Report #26803.
TINDALL, M., 1987, Preliminary Rock and Tailings Geochemistry on the Giant Nickel Property, for Mascot Gold Mines Ltd., BC Assessment Report #16553.
TRAVIS, A.R., 2002, Geological and Geochemical Assessment Report Undertaken on the Emory Creek Property, for Santoy Resources Ltd., BC Assessment Report #26876.
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Author’s Qualifications
I, Douglas Warkentin, P.Eng., a professional engineer with a business address at 745 East 30th Ave., Vancouver, B.C., certify that:
I have been a Registered Member of the Association of Professional Engineers and Geoscientists of the Province of British Columbia since 1992.
I am a graduate of the University of British Columbia, Vancouver, B.C. and hold a degree of Bachelor of Applied Science in Mining and Mineral Process Engineering.
I have practiced my profession as a Metallurgist and Mineral Process Engineer for 24 years.
I am currently employed as a Metallurgical Engineer by Kemetco Research Inc., Vancouver B.C., and have previously been employed as a Mineral Process Engineer by Vista Mines Inc., Coastech Research Inc., NTBC Research Corp., Biomet Mining Ltd., Blue Sky Mines Ltd., and Vizon Scitec Inc. I also serve as a Director of Duncastle Gold Corp., a TSX-Venture listed company.
Since 2001 I have acted as an independent engineering consultant for a number of mining clients.
I am a qualified person for the purposes of National Instrument 43-101 in relation to metallurgical testing and evaluation programs.
I directly conducted or supervised all sampling, sample handling and preparation related to the Emory Creek Nickel Project that is described in this report.
I am the sole author of this report.
I am not aware of any material fact or material change with respect to the subject matter of this technical report that is not reflected in this report, the omission to disclose which would make this report misleading.
Dated at Vancouver, B.C., this 16th day of July 2012.
Doug Warkentin, PEng. Metallurgical Engineer
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Statement of Costs
Site Reconnaissance and Sampling
Prep, Travel and Site Labour (24 hours @ $45/hr) $1,080.00
Transportation (2 days, fuel and rental charges) $474.27
Food and Supplies (2 days) $53.17
Sample Analysis
Sample Preparation (3 samples @ $7.50/sample) (5 samples @ $11.74/sample) $81.19
Sample Assaying (8 samples @ $27.50/sample) $220.02
Report Preparation $540.00
Total Cost $2,448.65
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Appendix 1 – Sample Location Map
606000 E 606000 607000 E 607000 605000 E 605000 CR11029-1 (61.6, 24, 7)
CR11029-2 (35.9, 22, 7)
PRIDE OF EMORY
5481000 N
CR20518-3 (155, 489, 40)
Emory Creek
CR20518-2 (76.9, 36, 9)
CR20518-1 (10.2, 55, 27) STAR OF EMORY 3 CR20518-G1 (37.6, 41, 9) CR20518-G2 (16.6, 15, 4)
CR20518-S1 (25.9, 33, 8)
Upper Emory Creek - Sample Locations
Rock Sample (Cu, Ni, Co - ppm)
Soil Sample (Cu, Ni, Co - ppm)
Map Scale 1:10,000
Appendix 2 – Assay Reports