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Geology and Geochemistry SNAG PROPERTY (Nechako Project) 1994

menica Mining Division British Columbia NTS 93FD2W

bEOLOGICAL BRANCH. ASSESSMENT REPORT

K. schimann January 1995 94-CND-78-07 TABLE OF CONTENTS

Page INTRODUCTION ...... 1 PHYSIOGRAPHY AND ACCESS ...... 1 REGIONAL GEOLOGY ...... 3 Basement Rocks .Lower Upper Cretaceous and Older ...... 3 Upper Cretaceous to Miocene ...... 4 LEGAL DESCRIPTION AND HISTORY OF THE PROPERTY ...... 6 METHODOIDGY ...... 9 Till Prospecting and Geochemistry ...... 10 GEOLOGY ...... 11 Hazelton Group ...... 11 Kasalka Group ...... 12 Tertiary Rocks ...... 12 MINERALIZATION ...... 13 GEOCHEMISTRY ...... 13 CONCLUSIONS ...... 16 BIBLIOGRAPHY ...... 30

of ADDe ndices ~ List

Appendix 1 Till Descriptions and Analyses Appendix 2 Rock Descriptions and Analyses Appendix 3 Statement of Expenditures Appendix 4 Statement of Qualifications List of Fmes Page Figure 1 Nechako Project, Location Properties ...... 2 Figure 2 Claim Map of the Snag Property ...... 8 Figure 3 Snag Area: Location of 1993 Rock Samples ...... 14 Figure 4 Snag Property: Au Anomaly Map ...... 18 Figure 5 Snag Property: Ag Anomaly Map ...... 19 Figure 6 Snag Property: As Anomaly Map ...... 20 Figure 7 Snag Property: Sb Anomaly Map ...... 21 Figure 8 Snag Property: Hg Anomaly Map ...... 22 Figure 9 Snag Property: Mo Anomaly Map ...... 23 Figure 10 Snag Property: Cu Anomaly Map ...... 24 Figure 11 Snag Property: Pb Anomaly Map ...... 25 Figure 12 Snag Property: Zn Anomaly Map ...... 26 Figure 13 Snag Property: Ba Anomaly Map ...... 27 Figure 14 Snag Property: La Anomaly Map ...... 28 Figure 15 Snag Property: #Anomaly Map ...... 29

List of Tables Page Table 1: Main Geologic Map Units of the Nechako Basin ...... 5 Table 2 List of Claims: Snag Property ...... 7 Table 3 Till Sample Description Parameters ...... 10 Table 4 Snag Area: 1993 Rock Samples ...... 15 Table 5 Snag Property: Correlation Coefficients and Statistics of Till Samples ...... 17

(in pocket) Scale Map 1 Snag Property. Geology ...... 1:20 000 Map 2 Snag Property. Rock Geochemistry ...... 1:20 000 Map 3 Snag Property. Till Geochemistry. Au ...... 1:20 000 Snag Property A.R. 1994 Geology and Geochemistry Page 1

0 INTRODUCTION

The Snag Property was acquired by staking in 1994; it is located in the Nechako Basin in central British Columbia (Figure 1). Mineral showings and deposits with both high- grade vein and low-grade bulk tonnage potential occur in this region. The property lies in the central part of the Stikine Terrane. The geology of this part of the Stikine Terrane contains three volcanic stratigraphic groups of latest Upper Cretaceous to Miocene age, underlain by Cretaceous and older basement rocks. Mineralization is associated with an Eocene tectonic event that involved crustal extension, felsic and basic volcanism, unroofed metamorphic complexes, large and small scale calderas and associated plutons, pull-apart sedimentary basins, and basin and range geomorphology. This Eocene tectonic-metallogenic belt extends from northwestern British Columbia and crosses all major geologic terranes of the northern Cordillera to the Columbia River plateau in Washington State. The Tertiary tectonic evolution and volcanism of the Nechako Basin are similar to that of the Great Basin of Nevada and adjacent States and the potential for volcanic-hosted and hot-spring type epithermal deposits is similar.

Two epithermal precious met& deposits are currently being mined within this Eocene metallogenic province: the Cannon mine (Wenatchee District), and the Golden Promise in the Republic District. Three have recently been mined out the Equity Silver Mine, the Blackdome, and the Kettle deposits. High sulphide replacement deposits of the Republic graben, although not strictly epithermal, are part of the same metallogenic event.

The Nechako Basin is part of the of the Canadian Cordillera, comprising the Nechako Plateau north of the Blackwater River, and the south of it. The North of the Basin, where the Snag property is located, is a plateau with a fairly constant overall elevation, but quite dissected at the local scale in a distinctive basin and range (horst and graben) topography producing more abundant outcrop than in the other two areas. Elevations vary from 1,417 m at the top of Deerhorn Hill to 715 m on Franqois Lake. To the west, the area abuts on the Quanchus Range with a chain of peaks in the 2,100 to 2,300 m range. Access is good. Major highways give access to the Nechako Basin: to the north (Hwy. 16), the east (Hwy. 97) and the south (Hwy 20), and a paved road reaches Nazko. More locally, access is through several networks of forestry roads starting in the South at Alexis Creek and at Nazko, in the Centre, at Vanderhoof and for the easternmost part at Nazko, and in the North from Vanderhoof and various points along Highway 16 west to Burns Lake. The main economic activity is logging. There are a few ranches in the South along 0- Highway 20 and along the Nazko River, in the Centre along Chedakuz River and in the D

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NECHAKO PROJECT

Km 100 0 loo 700 300 4 I k:! LOCATION OF PROPERTIES YlLES IO0 50 0 I00 200 MILES I t I Figure 1 Snag Property A.R. 1994 Geology and Geochemistry Page 3

0 North along the lower Nechako River, and some farming northwest of Cheslatta Lake in the Takysie-Grassy Plains area. Tourism is a minor activity and consists mostly of fishing and, in the fall, hunting. Vegetation is dominated by evergreens (pine and spruce) with poplar and cottonwood in low-lying areas. It is a region with no obvious environmental concerns or Native claims, nor are there any parks proposed, except for the which is outside of the area of interest per se. The Snag property lies south of Intata Reach, on the Windfall Hills, a plateau that rises 250 to 300 metres above the Nechako Reservoir. It can be reached from Highway 16 by the Holy Cross and Marilla Forestry roads and a ferry across Intata Reach. Local relief, within the property, is subdued; the dominant topographic feature is a regular 200 metre slope immediately East of the property. There has been essentially no logging within the property, but several large clearcuts occur immediately east and south of it. Outcrop conditions are relatively good in the Centre and South of the property, but rather poor in the North.

REGIONAL GEOLOGY

The Tertiary geologic elements of the Nechako Basin are part of a regional extensional system that extends from the Republic area of northern Washington State, northwesterly for some 1000 kilometres into the Babine district of north central British Columbia. This belt trends northwest with the approximate dimensions of 1000 X 200 kilometres. It crosses major terrane boundaries and underlies the Quesnel, Kootenay and Omineca Terranes in the south and the Stikine Terrane in the north, crossing the oceanic Cache Creek Group. It overlaps the southern margin of the Bowser Basin where it continues northward as a thin strip along the eastern margin of the Coast Range. Stratigraphic and intrusive rocks in the Stikine Terrane range in age from Palaeozoic to Pleistocene. With respect to the Eocene mineral setting, the geologic elements of the Stikine Terrane may be divided into three separate packages: basement rocks, latest Upper Cretaceous-Eocene rocks associated with mineralization, and cover rocks (Table 1).

Basement Rocks - Lower Upper Cretaceous and Older Basement rocks to the Tertiary in the Nechako Basin comprise Upper Triassic to lower Upper Cretaceous strata grouped into two major time-stratigraphic assemblages. The oldest assemblage consists of arc volcanics of Upper Triassic to Middle Jurassic age which includes submarine and marine island arc volcanics and sediments of the Carnian to Norian subalkaline, basaltic Stuhini (Takla) Group, and the Sinemurian to Bajocian 0 calc-alkaline Hazelton Group. Snag Property A.R. 1994 Geology and Geochemistry Page 4

0 The arc volcanic assemblages are overlain by two sedimentary assemblages, the Middle Jurassic to Lower Cretaceous Bowser Lake Group and the Lower and Upper Cretaceous Skeena Group. Deltaic assemblages of the Bowser Lake Group were deposited mainly in the Bower Basin to the North, except for its basal, the Ashman Formation, a black clastic-chert pebble conglomerate, sandstone and siltstone unit that outcrops below the waters of the eastern end of the Nechako Reservoir (Tipper, 1963). Marine and nonmarine sediments of the Neocomian to Cenomanian Skeena Group blanketed much of the Stikine Terrane and sourced from the east, off the Cache Creek, Quesnel and Omineca Terranes. The blanket of Skeena Group clastics across Stikinia outlines a regional datum to which deformation and deposition of younger strata may be related. The basement rocks have been affected by regional compressive tectonics. Westerly verging compression along the east margin of the Stikine Terrane, associated with the amalgamation of Stikinia, Quesnellia and the Cache Creek Terranes to the North American Craton, affects rocks as young as Upper Jurassic. Easterly verging compression along the west margin of the Stikine Terrane, associated with the amalgamation of the Wrangellia with Stikinia affects rocks as young as Late Cretaceous. Intrusive rocks associated with the basement strata include the Upper Jurassic-Lower Cretaceous Franqois Lake intrusions to the northeast of the reconnaissance area, and mid-Cretaceous plutons of the Coast Crystalline Complex. Many of the northwest and northeast trending fault zones that control the distribution of the Tertiary geologic elements are fault zones whose activity can be traced back to the Upper Triassic and Lower Jurassic.

Upper Cretaceous to Miocene The Upper Cretaceous to Eocene metallogenic event is associated with three stratigraphic assemblages, the late Upper Cretaceous andesitic Kasalka Group, the felsic Eocene Ootsa Lake Group and the basaltic Eocene to Oligocene Endako Group. These assemblages represent a generalized cycle of early andesitic volcanism, explosive felsic volcanism, bimodal felsite-basic volcanism and later basic volcanism. The early andesitic Kasalka Group, and the felsic Ootsa Lake Group strata were deposited in calderas and caldera complexes. The distribution of the older facies of the Endako Group are in part controlled by the felsic calderas. The felsic calderas are large, composite features that may measure more than 50 kilometres in diameter and are nested caldera complexes. The volcanic assemblages are associated with a fault array whose main expression is extensional. This sequence of caldera associated volcanism and extensional faulting is a common sequence through the length of the extensional belt, from the Mexican border to Babine Lake and is associated with a vast array of significant mineral deposits. The Kasalka Group volcanics (McIntyre, 1985) occur as a number of caldera basins throughout west-central British Columbia, on the Stikine Terrane, between the Blackwater Linear zone and the north flank of the Skeena Arch. They are mainly feldspathic andesitic volcanics but local basins include explosive and passive felsic e volc&sm. They are associated with granodioritic stocks and-plugs of the Quanchus and Snag Property A.R. 1994 Geology and Geochemistry Page 5

0 Table 1: Main Geologic lMap Units of the Nechako Basin Stratified Rocks Intrusive and Metamorphic Rocks 11. Anahim Volcanics (Pliocene-Pleistocene) 10. Chilcotin Volcanics (Miocene 9. Endako Group (Eocene-Oligocene) 8. Ootsa Lake Group G. Eocene (Eocene and Palaeocene) (stocks, plugs, dykes, rhyolite, felsite, porphyry, diorite, gabbro) 7. Kasalka-Kingsvale Groups F. Upper Cretaceous-Palaeocene (Upper Cretaceous) (Quanchus Intrusions: stocks and batholiths, diorite to quartz monzonite) 6. Skeena-Jackass Mountain Groups (Lower Cretaceous) E. Mid-Cretaceous (mainly tonalite to quartz monzonite of Coast Range complex) 5. Gambier Group (Upper Jurassic-Lower Cretaceous) D. Jurassic-Cretaceous (Franqois Lake Batholith; quartz diorite to granite, includes quartz-feldspar porphyry) 4. Relay Mountain-Bowser Groups (Upper Jurassic-Lower Cretaceous) 3. Hazelton Group C. Middle Jurassic (Lower and Middle Jurassic) (locally foliated granodiorite and quartz monzonite) 2. Stuhini Group (Upper Triassic) 1. Cache Creek Group B. Permian (Upper Palaeozoic) (mainly granodiorite in lower ) A. Metamorphic Rocks (gneiss, schist, metavolcanics, 0 cataclasites) Snag Property A.R. 1994 Geology and Geochemistry Page 6

Bulkley Intrusions. In a number of locations in central B. C., red and green polylithic volcanic and granitic cobble conglomerate underlies basal JSasalka strata. The age of the Kasalka volcanics and associated intrusives range from 85 My to 60 My and fall mainly in the 72 to 67 My interval.

The Ootsa Lake Group (Duffel, 1959) is typified by light coloured felsic volcanics. They underlie broad areas of the southern Stikine Terrane from Babine Lake to the Chilcotin River and include a variety of depositional types. They occur in structurally controlled basins and in large caldera complexes. Subvolcanic intrusives are common; coeval plutonic rocks are rare within the caldera complexes, but common in the basement. The Ootsa Lake Group ranges in age from 58 to 47 My with the interval of 52 to 48 My representing the timing of the main felsic eruptive events. The Endako Group (Armstrong, 1949) is a wide ranging assemblage of mainly basaltic rocks. In a general sense, the Endako Group overlies and is younger than the Ootsa Lake Group. Basaltic and andesitic rocks are commonly associated with felsic rocks in the calderas. Ages of the Endako Group show a range from 50 to 37 My. Post-Ootsa Lake Group basaltic volcanism occurred intermittently throughout the area, from 45 My to Recent. (Mathews, 1984 and 1989; Rouse, 1988). Basaltic volcanics younger than 35 My are correlated with the Chilcotin Group.

Pliocene-Pleistocene

The Anahim Group peralkaline occur only in the Southwest of the Nechako BaSin.

"During the Pleistocene all of Central British Columbia was covered by glacier ice that moulded a multitude of features &om which the glacial events can be interpreted" (Tipper, 1971). The bulk of glacial features in Central British Columbia have been produced by the Fraser Glaciation, the last major advance. Minor late re-advances are observed around the Anahim volcanoes and along the Coast Ranges. Within the Nechako Basin, glacial transport direction varies from N 0"to 30", south of the Blackwater lineament, to N 60" to 90" north of it. Glacial deposits consist mostly of lodgement till with some areas of ablation till, esker systems, and fluvio-glacial material. A thin veneer of ablation till may occasionally overlie lodgement till. There are no extensive glacial lake deposits (sands and clays). Evidence of multiple glaciation are observed in a few localities in the form of lodgement till overlying fluvio-glacial deposits.

JXGAL DESCRIPTION AND HISTORY OF THE PROPERTY

The Snag property consists of 5 claims with a total of 95 units. They are owned 100% by COGEMA Resources Inc. The claims are listed in table 1 and shown on figure 2. 0 Table 2 List of Claims: Snag Property

SNAG PROPERTY SNAG-1 325754 20 25-May 1994 1998 OMINECA 93F/12W SNAG-2 325755 20 25-May 1994 1998 OMINECA 93F/12W SNAG-3 325756 20 25-May 1994 1998 OMINECA 93F/12W SNAG-4 325757 20 25-May 1994 1998 OMINECA 93F/12W SNAG-5 325758 15 25-May 1994 1998 OMINECA 93F/12W Total 95 OMIN ECA

NE.XLS 18/01 195 V f i I' \, ...... 0 /' '.__, W I N D FALL I ,...-:. :,..... _. Q Hy

LOON 9 9722 (81 J i 5J.4C d _I I + SNAG 2 ...... 1 ...... - ._...... :; 3 257 55 -.. 7.._. .:. nxio 1). SNAG I ..._. .. -1 025754 qNX5W

226037

Q 56x16

b 0

93F/12C

ADMINISTRATIVE AREA Figure Claim Map of Snag 2 the Property MINING DIVISION. ; OMINECA Snag Property A.R. 1994 Geology and Geochemistry Page 9

0 There is no record of any earlier exploration work on the Snag property. The Discovery claims were staked west of the property and abandoned with no assessment filed. The Uduk and Duk claims to the Northwest have been held since 1980 and the Loon claims since 1988. Both cover areas of epithermal alteration and mineralization and have seen a variety of work (mapping, prospecting, geochemistry, ground geophysics, trenching and drilling); both of these properties were active in 1994.

The Snag property was accessed from a camp south of Intata Reach, near the ferry crossing. Bedrock mapping was done by systematically traversing areas liable to have outcrops as deduced from air photos and topography. Mapping concentrated on finding as many outcrops as possible, especially in areas of poor outcrop to obtain the best possible coverage. It was helped by the systematic till sampling which found many outcrops in locations not suggested by air photo interpretation.

ProsDectinq, was done in a few selected areas only. More thorough prospecting will be required in 1995 to uncover new showings. Till samples were taken along flagged compass and hip chain lines spaced about 600 metres with samples taken every 100 metres. The line orientation were chosen perpendicular to the average ice transport direction as deduced from air photo lineaments (drumlinoids and scour features). Samples were taken with a split spoon auger, at 0.5 to 1.25 metres depth with the objective to obtain a sample as fresh, un- oxidized, as possible. Sample description included four parameters (Table 3), as well as on-site interpretation of the probable facies: lodgement, ablation, fluvial glacial, or colluvium. This interpretation is subjective but takes into account the description parameters as well as the terrain morphology as observed by the samplers,all well seasoned prospectors. A total of 389 till samples were collected. The till and rock sample locations were digitized in the field using Autocad and the description entered on Excel spreadsheets, plotted in the office using Techbase, and transferred onto Autocad drawings for presentation. Analyses were done by Acme Analytical Laboratories Ltd. The analytical procedures were as follows: Au: Aqua regia digestion, MIBK extraction, atomic absorption; 50 g for till; 30 Elements: Aqua regia digestion, ICP on 0.5 g for till and rock Hg: Flameless atomic absorption Aqua regia digestion results in partial analysis for the following elements: Ca, Mg, Fe, I 0 Mn, Cr, Ba, Sr, U, Th, La, Ti, B, Al, Na, K. Snag Property A.R. 1994 Geology and Geochemistry Page 10

0 Table 3 Till Sample Description Parameters Roundness: 1. Non-eroded, sharp-edge, angular. Clear fractured surfaces typical of individual rock types. 2. Slightly eroded, slightly worn at edges, angular. Still clear fractured surfaces typical of individual rock types. 3. Eroded, edges eroded and rounded. Original form still easily definable, fractured surfaces still retained. 4. Rounded. Original form difficult to define. 5. Highly rounded. Original form can no longer be defined. Compactness: 1. Extremely loose 2. Loose 3. Normal 4. Compact 5. Extremely compact, concrete-like

Stone Content: 1. Stoneless 0 per sample 2. Few stones 1-4 per sample 3. Normal 5-10 per sample 4. Abundant stones 11-15 per sample 5. Extremely abundant stones >15 per sample Colour:

Till Prospecting and GemchemistTy Till deposits cover the vast majority of the surface of the region. Although this is a hindrance for it hides the bedrock, till can be used as an exploration tool. Glacial processes increase the size of the exploration targets, both in length and width, by dispersing material down-ice from mineralized areas within the till, where it can be detected by prospecting, finding mineralized boulders, and by geochemistry, analysing the fine fraction or the heavy fraction of the till. This dispersion has also a another effect which must be taken into consideration, that of reducing the grade of the mineralized material very rapidly by dilution with surrounding material. For this method to work properly several conditions must be met: the mineralized material must have been eroded by glacial action, it must have been deposited within reasonable distance, the deposited till must be preserved (not eroded by later processes), and it must be close to surface where it can be sampled, and not covered by a thick mantle of later deposits. The purpose of the till sampling programme was to define anomalous areas for further, detailed, geochemistry and prospecting to find mineralization in situ or in boulders. The chosen spacing between lines and of samples along the lines was a compromise between what could be done with the available means applied to the property area and the goal, Snag Property A.R. 1994 Geology and Geochemistry Page 11

0 to find indications of gold mineralization. Although an economic deposit could easily fit between sample lines, the effect of glacial processes can be used to locate targets of such size with a relatively wide sample grid. The use of Au and Ag for tracing mineralization presents special problems. In the case of Au, the main problem is nugget effect and, to a lesser degree, the analytical detection limit, which is about at the level of the Au background in rocks and till. The nugget effect results in non-reproducibility of analyses, be there replicate analyses or analyses of duplicate samples. In the case of Ag, the main problem is analytical detection limit which is about twice the Ag background in rocks and till. As a result Ag analyses become significant only at about 10 times background. Both Au and Ag must thus be used with care in the low ranges. Sb suffers from the same problem as Ag; its analytical detection limit is about 10 times its background in rocks and tills. Other elements within the analyzed group, which are diagnostic of epithermal mineralization are As and Hg. The base metals, Cu, Pb, Zn, and Mo, are not normally strongly enriched in epithermd mineralization, although they may be in the 100 to 300 ppm range in some cases. This level of anomaly in rock translates to a very slight enrichment in the till, except if the source area is very large, i.e if it supplies a large proportion of the till material.

GEOLOGY The property is located near the southwestern border of the Cheslatta Caldera Complex on the northwestern extension of the Nechako Arch and is underlain by volcanic and sedimentary assemblages of Jurassic to Eocene age. Two main groups are present: dominantly dacitic pyroclastics and derived volcanogenic sediments of the Jurassic Hazelton Group and conglomerates to siltstones and andesites of the Upper Cretaceous Kasalka Group. Both are cut by andesitic and rhyolitic dykes of Eocene age. Two outcrops of a fresh vesicular basalt have been correlated with the Endako Group (Map 1)- The property is located near the southwestern border of the Cheslatta Caldera Complex on the northwestern extension of the Nechako Arch and is underlain by volcanic and sedimentary assemblages of Jurassic to Eocene age. Two main groups are present: dominantly dacitic pyroclastics and derived volcanogenic sediments of the Jurassic Hazelton Group and conglomerates to siltstones and andesites of the Upper Cretaceous Kasalka Group. Both are cut by andesitic and rhyolitic dykes of Eocene age. Two outcrop of a fresh vesicular basalt have been correlated with the Endako Group. Some of the facies, in particular feldspar porphyry andesites and fine grained sediments, are difficult to assign to the proper stratigraphic unit and as a result some unit names on the geology map may be erroneous.

Hazelton Group The most common facies is an assemblage of lapilli to ash tuffs with a varying 0 lithic/crystal component. They are generally cream to light greenish, mottled, massive Snag Property A.R. 1994 Geology and Geochemistry Page 12

0 with no visible bedding. They grade into medium to fine grained maroon to green feldspathic, reworked to waterlain tuffs to volcaniclastic sediments. Fragments in the tuffs do not generally exceed a few centimetres, but may occasionally reach bomb or block size. The finer facies show well developed lamination to bedding. The composition of the fragments appears to be dominantly dacitic to rhyo-dacitic. Massive feldspar porphyry andesite are occasionally interbedded with the dacitic tuffs. A monotonous unit of grey to greenish-grey massive greywacke, containing disseminated pyrite, and with poorly visible bedding occurs in the eastern and north-central part of the property. It has been correlated with the sedimentary unit of the Hazelton Group, but could as well be a facies of the Kasalka Group. The Hazelton Group rocks are un- metamorphosed; weak regional propylitization is visible in places.

Kasalka Group It consists of a sedimentary unit and a volcanic unit. The sedimentary unit comprises conglomerates, sandstones (greywacke), and siltstones, and occurs mainly in the northeast corner of the property. The conglomerates are polymictic, matrix supported, with sub-rounded to rounded pebbles of dominantly intermediate to felsic volcanics, probably of Hazelton Group origin. They are irregularly interbedded with and grade into grit, sandstone, siltstone, and mudstone of similar composition. The sequence has little textural maturity and appears to correspond to an alluvial fan facies. This unit is well indurated but un-metamorphosed. The volcanic unit occurs in the eastern half of the property and consists of crowded to sub-crowded feldspar (+augite, koxyhornblende) porphyry andesite volcanic breccia. Colours vary from maroon to green. Two outcrops of a green massive microdiorite have been included into this unit. This microdiorite occurs more abundantly east of the property near Intata Reach, and on the Tonka property, where one may observe the gradation from crowded feldspar porphyry andesite to microdiorite .to fine grained diorite. Some of the feldspar porphyry andesite outcrops are intermingled with outcrops of Hazelton Group lapillibh tuffs and may possibly be Hazelton Group feldspar porphyry andesites. The sedimentary unit is considered to be older than the volcanic unit, based on regional information; no clear contact relations have been observed on the property.

Tertiary Rocks Isolated outcrops of a brown porphyritic andesite with large (up to 5-7 cm), well aligned, feldspar laths, occur throughout the property. They are interpreted to be dykes and have been correlated with the Goosly intrusions found in the Equity Silver area and dated Early Eocene. Several outcrops of quartz-feldspar porphyry rhyolite occur in the Northeast, Southwest, and Southeast of the property; they have been correlated with the Eocene Ootsa Lake Group. Two outcrops of a fresh dark green vesicular basalt have been found near the northeast comer of the property; they appear to overlie the nearby Kasalka Group conglomerate and have been correlated with the Eocene to Oligocene Snag Property A.R. 1994 Geology and Geochemistry Page 13

0 Endako Group.

The Snag property was staked because of several mineralized epithermal quartz and silicified rhyolite, andesite, sediment boulder trains found in 1992 immediately east (down ice) of the property (Figure 3). Grades for these boulders reached 6.1 and 7.6 g/t Au (Table 4). Alteration and mineralization was observed in outcrop in several locations along the eastern border of the property (Map 2). Two main type of showings have been observed which appear to be related. The first consists of zones of bleaching with tight fracture pattern (a few centimetres apart), more or less rusty; some of the fractures have open space quartz fillings up to a few centimetres wide, and locally produce breccias. The quartz is white, rather coarse grained, sometimes jasperoidal. The main fracture orientation is N20-30"/90". These zones of bleaching occur in dacitic lapilli tuff, in polymictic conglomerate, and in feldspar porphyry andesite. Grades so far have been low: maximum 140 ppb Au associated with minor Ag and with As; base metals are low. The second type consists of quartz veins in sericitized quartz feldspar porphyry rhyolite dykes. The orientation is again about N30 " /90" . Grades reach 280 ppb Au and 24.2 g/t Ag with anomalous As, Sb, Hg. Additional mineralized epithermal quartz boulders were found, including some with 6 g/t Au. The most common host of these mineralized boulders found in 1992, 1993, and 1994 is a rhyolite which appears to be a Ootsa Lake rhyolite, often quartz-feldspar phyric. The only outcrop of similar rhyolite within the property or near it is in the form of dykes, apparently of limited width. Outcrop conditions are not such as to preclude the presence of more extensive rhyolite. The Uduk showing, 4 km west of the northwest corner of the property, is hosted in Ootsa Lake rhyolite; but ice transport directions (about N70") indicate a more southerly source and there is no indications of any major southerly transporting glacial feature such as n outwash channel for example. The boulder trains are quite strong and of good grade; the roundness of the boulders does not indicate a very distant source; the quartz of the boulders is more chalcedonic than the quartz of the showings found on the property in 1994. There is no known Ootsa Lake rhyolite immediately west-southwest of the property.

GEOCHEMISTRY Till sampling on the Snag property gave a reasonably good coverage. Till is dominantly lodgment, but of variable thickness and mixed with colluvium in some areas (Map 3). Results are presented as posted Au ppb values on map 3 and as dot anomaly maps on figures 4 to 15. The Au values (Map 3 and Figure 4) are systematically high on several lines and there is a good correlation with one of the sampler indicating Au contamination at the sampling stage. On map 3 these samples are flagged with an asterisk ("*"), and on figure 4, they are boxed. Figure 3 SNAG AREA: LOCATION OF 1993 ROCK SAMPLES Table 4 Snag Area: 1993 Rock Samples Snag Property A.R. 1994 Geology and Geochemistry Page 16

The table of statistics (Table 5) is somewhat unusual by the large number of significant correlation coefficients. This suggests that a significant portion of the variance is related to the analytical digestion process. The correlation coefficients show the usual patterns, with good correlations amongst the "majors elements 'I group. No significant correlation is present amongst the Au-Ag-tracer element group, with exception of Ag-Hg, Mo, and Cu, and Cu-Hg, and Mo. The significance of these correlation is not clear. The distribution of the main elements of interest is shown on figure 4 to 15. Apart from the probably contaminated samples, there are few high Au values. Ag shows two groups of high values one in the Southeast, correlating with high Hg, Cu, As, Zn, Ba, 4 and Au; the second correlates with high Hg, Ba, La, Sb, and Au. As shows no clear pattern; Hg, Zn, and Cu are higher in the eastern half of the property; Pb shows a concentration of high values in the Northwest, straddling a valley that may be a N70-80" structure. Mo is low overall. Sb is high along one line; this may be due to analytical (instrumental) drift. K and La do not correlate particularly well they tend to be higher in the eastern part of the property; K is also high in the area of high Pb.

CONCLUSIONS The model on which the Snag property was staked, i.e. the presence of Ootsa Lake Group rhyolites with epithermal mineralization, as not been confirmed, and it appears unlikely that a very large area of such rock be present within the property. However indications of potential mineralization are found in the till survey and alteration and mineralization observed in outcrop and in float in several areas. The main rock unit within the property is of the Hazelton Group which is known to have potential for volcanogenic massive sulphide deposits. The distribution of base metals in till shows no clear pattern that may be related to such deposits, but areas of high Ag and tracer elements may indicate the presence of mineralizing systems. Present information precludes that the Uduk showing be the source of the mineralized boulder trains that led to the staking of the property, but it is conceivable that one or several mineralized dyke swarms are present within the property and constitute a sufficiently large mineralizing system to account for the numerous mineralized boulders. It is recommended to resample the till lines with probable Au contamination, to obtain a Mag-EM airborne survey to better define structural trends and possibly find conductors that may be associated with VMS mineralizations, to tighten the till sample grid in anomalous areas (to 100-200 by 25-50 m) and to systematically prospect these areas. A surficial geology study is also needed to clearly define the source of the boulder trains along the eastern border of the property. 0 Table 5 Snag Property: Correlation Coefflclents and Statlstlcs of Till Samples 06 07 08 09 10 11 12 13

45

45

44 44

43

43

LEGEND 42 I Sample stotion

42 5 ppb Au

>15 ppb Au 41 20 > 15 ppb Au 41

Samples Probably Contaminated 40 With Au 40

I, \I 39 I

39 COGEMAResources Inc. III SCALE 1 2 3 I KILOMETRES 38 NECHAKO PROJECT 38 I I SNAG PROPERTY I Till Geochemistry 37 Au 37 06 07 08 09 10 11 12 13

45 45

44 44

43 43

LEGEND 1.2 Sample station

42 e 0.3 ppm Ag

>OS ppm Ag 41 0.7 :*0.5 pprn Ag 41

40 40

39 COGEMA 39 Resources Inc.

SCUE 0 1 2 3 I I KILOMmES 38 NECHAKO PROJECT I 38 SNAG PROPERTY Till Geochemistry 37 Ag 37

Figure 5 06 07 oa 09 11 17 1 3

45 45

44 44

13 43

LEGEND $2 Sample station

42 8 ppm As

>12 pprn As 41 15 :*12 ppm As 41

40 40

39 39 XUE 0 1 2 3 I KILOMETRES 38 NECHAKO PROJECT I 38 SNAG PROPERTY Till Geochemistry 37 As 37 06 125’55’ 07 oa 09 10 11 125’50’ 13 Figure 6 - 06 07 08 09 10 11 12 13

LEGEND

Sample station

e 4 ppm Sb

a5 ppm Sb

6 >5 ppm Sb

COGEMA Resources Inc. I SALf 0 1 2 3 1 I KILOMmES NECHAKO PROJECT 1

SNAG PROPERTY Till Geochemistry Sb ' 1 06 12555'07 08 09 10 11 125'50' 1 3 Figure 7 06 07 08 09 10 11 17 1 3

45

44

43

LEGEND 42

41

40

39 COGEMA Resources Inc.

SCME 0 1 2 3 I 1 KILOMETRES 38 NECHAKO PROJECT

SNAG PROPERTY Till Geochemistry 37 Hg

06 125’55’ 07 08 09 10 11 12550’ 1 3 Figure 8 06 07 08 09 10 11 12 13

45 45

44 44

43 43

LEGEND 42 Sample station 42 e 3 pprn Mo

35 ppm Mo 41 6 :=5 pprn Mo 41

40 4c

39 COGEMA 39 Resources Inc.

XUE 0 1 2 3 r I KILOMETRES 38 NECHAKO PROJECT 1 3e SNAG PROPERTY Till Geochemistry 37 Mo 35

Figure 9

P 45

44

43

LEGEND 42 Sample station

e 19 ppm Cu

3-30 ppm Cu 41 32 >30 ppm Cu

40

COGEMA Resources Inc. L J

0 1 2 3 1 I KILOMETRES 38 NECHAKO PROJECT 1

SNAG PROPERTY Til I Geoc hernist ry 37 cu

06 125’55’ 07 08 09 10 11 125’50‘ 1 3 Figure 10 45 45

44 44

43 43

LEGEND 42 Sample station 42 e 13 ppm Pb

217 ppm Pb 41 18 >17 ppm Pb 41

40 40

39 39 COGEMAResources Inc. -1 SWE 0 1 2 3 c I KILOMETRES 38 NECHAKO PROJECT I 38 SNAG PROPERTY Till Geochemistry 37 Pb 37

06 12555' 07 oa 09 10 11 12550' 1 3 Figure 11 06 07 oa 09 in 11 17 17

45

44

43

LEGEND

Sample station

42 61 ppm Zn

385 ppm Zn 41 90 >E5 ppm Zn 41

40 40

39 COGEMA 39 Resources Inc.

SCUE 0 1 2 3 I KILOMERES 38 38 I SNAG PROPERTY Till Geochemistry 37 Zn 37

Figure 12 06 07 08 09 10 11 12 13

45 45

44 44

43 43

LEGEND 42 Sample station 42 0 151 ppm Bo

2300 ppm Ba 41 320 :'300 ppm Bo 41

40 40

39 COGEMA 39 Resources Inc.

~~ SCALE 0 1 2 3 I I KILOMETRES 38 NECHAKO PROJECT 38 I 1 II SNAG PROPERTY

37

I Fiaure 13 06 07 oa 09 10 11 12 13

45

44

13

LEGEND

$2 Sample statlon

21 ppm La

&30 ppm La 41 32 :,30 pprn Lo

40

39

Resources he. XUE 0 1 2 3 I I KILOMnRES 38 NECHAKO PROJECT I

SNAG PROPERTY Till Geochemistry 37 La

Figure 14 - 06 07 08 09 10 11 12 13

45

44

43 LEGEND

Sample station

42 0.09 % K

a0.12 % K

0.13 :*0.12 ?Z K 41

40

COGEMA 39 Resources he. SCME 0 1 2 3 I 1 KILOMETRES

38 SNAG PROPERTY Till Geochemistry

K 37

06 12555'07 08 09 10 11 12550' 1 3 Figure 15 Snag Property A.R. 1994 Geology and Geochemistry Page 30

BIBLIOGRAPHY

Armstrong, J.E. (1949), Fort St. James map area, Cassiar and Coast Districts, B.C., GSC Memoir, 252. Duffell, S. (1959), Whitesail Lake map area, GSC Memoir 299. Mathews, E.H. (1989), Neogene Chilcotin basalts in south-central British Columbia: geology, ages and geomorphic history, Can. J. Earth Sci, Vol 26, pp 969-982. MacIntyre, D.G. (1985), Geology and Mineral Deposits of the Tahtsa Lake District, west central British Columbia, MEMPR Bull 75. Rouse, G.E. and Mathews, W.H. (1988), Palynology and geochronology of Eocene Beds from Cheslatta Falls and Nazko areas; central British Columbia, Can. J. of Earth Sci, pp 1,268-1,276. Tipper, H.W. (1963), Nechako River Map Area, B.C., GSC Memoir 324. Tipper, H.W. (1971), Glacial Geomorphology and Pleistocene History of Central British Columbia, GSC Bull 196. Appendix 1 Till Descriptions and Analyses

e Page 1 2 Page 3 4 5 Page 1 c. 2 0 Page 3 0Page 4 e e Page 5 - Page 6 Page 7 Appendix 2 Rock Descriptions and Analyses Page 1

INumb UTME UTMN Type Size Name Description 1 313536 5938582 FLT 0 rhyolite 30 cm/l; kaol. rhyol. fgx. in white to grey sugary Qz; some bladed Qz; no visib. sulf. 2 313434 5938648 FLT 0 qz 20 cm/2; 10 cm thick crudely banded Qz vein in rhy. some angelwing text. 3 313253 5938713 FLT 0 rhyolite/qz 20 cm/l-2; brx of silicif. rhy. fgx (orange) in jasperoid orange to red Qz; some fine banding 4 313026 5938666 FLT 0 rhyolitelqz 25 cm/l ; hydrothem. brx of my. and Qz fgx in sugary Qz; some Qz fgx have black patches with sulf. 21 312341 5938257 SC 0 qz vein coarse vitreous qz, rare sulf, 1-10 cm wide in rhy porph. Page 2 Page 1 Page 2 Appendix 4 Statement of Expenditu res APPENDIX N

STATEMENT OF EXPENDITURES SNAG PROPERTY

Geology and Geochemistry,

June to December 1994

Personnel K. Schimann 9 days @ $438 $ 3 942 K. McDonald 9 days @ $157 $ 1413 R. Bilquist, and L. Allen 41 days @ $201 $ 8 241 Field Costs 59 days @ $131 $ 7 729 (Food, camp, truck and ATV rentals, freight and misc. supplies)

Rock analyses 66 samples @ $15 $ 990 Till analyses 390 samples @ $15 $ 5 850

Data processing and report preparation $ 2253 Total $30 418 Appendix 5 Statement of Qualifications APPENDIX V

STATEMENT OF QUALIF'ICATIONS

I, Karl schimann, residing at 5442 Columbia Street, Vancouver, B.C., hereby states that:

1. I am the author of the report Geology and Geochemistry, Snag Pt-opery (Nechako project), 1994, Omineca Mining Division.

2. I have worked on the property from June to December 1994 for COGEMA Resources Inc. and supervised the work described in this report.

3. I graduated from the Universite. de MontrBal with a B.Sc. in Geology in 1968.

4. I graduated from the University of Alberta with a Ph.D. in Geology in 1978.

5. I am a Fellow of the Geological Association of Canada.

6. I am a member in good standing of the Association of Professional Engineers and Geoscientists of British Columbia