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Ptarmigan 2011 Assessment Report

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Ptarmigan 2011 Assessment Report ASSESSMENT REPORT DIAMOND DRILLING PTARMIGAN PROJECT BRITISH COLUMBIA, CANADA P REPARED FOR: SILVER MOUNTAIN MINES INC. 1301 – 8 TH S TRE ET SW Calgary, Alberta T2R 1B7 OFFICE: 403-229-9140 FAX: 403-229-9150 JANUARY 31, 2012 PREPARED B Y: Richard T. Walker, B.Sc., M.Sc., P.Geo. Silver Mountain Mines Inc. Assessment Report – Ptarmigan Project TABLE OF CONTENTS ASSESSMENT REPORT .......................................................................................................................................................... 1 PTARMIGAN PROJECT ......................................................................................................................................................... 1 BRITISH COLUMBIA, CANADA ............................................................................................................................................ 1 PREPARED FOR: ................................................................................................................................................................... 1 SILVER MOUNTAIN MINES INC. ......................................................................................................................................... 1 FIGURES ................................................................................................................................................................................. 4 TABLES 4 APPENDICES .......................................................................................................................................................................... 4 APPENDIX A – STATEMENT OF QUALIFICATIONS ............................................................................................................... 4 APPENDIX B – STATEMENT OF EXPENDITURES .................................................................................................................. 4 APPENDIX C – CORE DESCRIPTIONS ..................................................................................................................................... 4 APPENDIX D – PROGRAM-RELATED DOCUMENTS ............................................................................................................. 4 1.0 EXECUTIVE SUMMARY ............................................................................................................................................ 6 2.0 INTRODUCTION ....................................................................................................................................................... 8 3.0 LOCATION, ACCESSIBILITY, CLIMATE AND PHYSIOGRAPHY ......................................................................................... 9 3.1 LOCATION....................................................................................................................................................................... 9 3.2 ACCESS .......................................................................................................................................................................... 9 3.3 CLIMATE AND VEGETATION ............................................................................................................................................... 9 3.4 PHYSIOGRAPHY ............................................................................................................................................................. 12 4.0 TENURE STATUS ....................................................................................................................................................... 13 5.0 PROPERTY HISTORY ................................................................................................................................................. 15 5.1 PTARMIGAN AND IRON CAP MINE HISTORY ...................................................................................................................... 15 5.1.1 MacDonald Mines – 1899-1901 ...................................................................................................................... 15 5.1.2 Paulding Farnham - 1902 ................................................................................................................................ 17 5.1.3 Ptarmigan Mines of the Selkirks Company Limited – 1903-1905 ................................................................. 17 5.1.4 Herbert Carlyle Hammond – 1908 .................................................................................................................. 18 5.1.5 E. Watson – 1919-1923 .................................................................................................................................... 18 5.1.6 Heinz K.F. Seel – 1955-1957 ............................................................................................................................. 18 2 5.1.7 Selkirk Ptarmigan Mines Limited – 1958-1960 .............................................................................................. 19 Page 2 Silver Mountain Mines Inc. Assessment Report – Ptarmigan Project 5.1.8 Belle Tahsis Mines Limited – 1963 .................................................................................................................. 19 5.1.9 Union Carbide Exploration Limited – 1964 ..................................................................................................... 19 5.1.10 International Kenville Gold Mines Limited – 1965 ....................................................................................... 19 5.1.11 Voyager Petroleum Ltd. – 1971 ..................................................................................................................... 19 6.0 GEOLOGICAL SETTING AND MINERALIZATION ....................................................................................................... 20 6.1 REGIONAL GEOLOGY ...................................................................................................................................................... 20 6.1.1 Stratigraphy ...................................................................................................................................................... 20 6.1.2 Structure ........................................................................................................................................................... 21 6.1.3 Mineralization .................................................................................................................................................. 24 6.2 DISTRICT GEOLOGY ........................................................................................................................................................ 25 6.3 LOCAL GEOLOGY ........................................................................................................................................................... 30 6.4 MINERALIZATION .......................................................................................................................................................... 31 6.4.1 High-Grade Ag-Au Veins .................................................................................................................................. 31 6.4.2 Pyrite Replacement Zone ................................................................................................................................. 32 6.4.2.1 Alteration ....................................................................................................................................................... 33 7.0 2011 PROGRAM ............................................................................................................................................................ 34 8.0 CONCLUSIONS........................................................................................................................................................... 37 9.0 RECOMMENDATIONS ................................................................................................................................................... 39 10.0 REFERENCES ................................................................................................................................................................ 41 3 Page 3 Silver Mountain Mines Inc. Assessment Report – Ptarmigan Project FIGURES Figure 3-1. Ptarmigan Property - Regional location map. ........................................................................... 10 TABLES NO TABLE OF FIGURES ENTRIES FOUND. APPENDICES Appendix A – Statement of Qualifications Appendix B – Statement of Expenditures Appendix C – Core Descriptions Appendix D – Program-Related Documents 4 Page 4 Silver Mountain Mines Inc. Assessment Report – Ptarmigan Project 5 Page 5 Silver Mountain Mines Inc. Assessment Report – Ptarmigan Project 1.0 EXECUTIVE SUMMARY The Ptarmigan Property (the “Property”) is located in the Purcell Mountains, approximately 35 km west of the village of Radium Hot Springs, in southeast British Columbia. The property comprises 9,287 ha (22,948 acres), extending approximately 13.5 km south of Horsethief Creek and approximately 8.8 km east from McDonald Ridge to the headwaters of Law and Bruce Creeks. Well maintained forestry roads provide access along Horsethief and McDonald creeks, and a rehabilitated mining road extends from McDonald Creek to the former Ptarmigan Mine (hereafter referred to as the “Ptarmigan Mine”) site at UTM coordinates 542082 E, 5594067 N (50o 29’ 46” N latitude and 116o 24’ 25” W longitude), at an elevation of 2590 m. The Property
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