DIAMOND DRILL REPORT FOR WORK ON JEFF GROUP

D I A M O N D DRILL REPORT FOR WORK DONE I N 1981

ON JEFF GROUP

LIARD MINING DIV IS ION 1041/1W

58012 'N 128021W

f o r

ESSO MINERALS C A N A D A 600-1281 West G e o r g i a S t r e e t

Vancouver , B.C. V6E 357

by

W a l t e r Me lnyk

O c t o b e r , 1 9 8 1

TABLE OF CONTENTS

INTRODUCTION

DIAMOND D R I L L I N G

GEOLOGY

COST STATEMENT

STATEMENT OF Q U A L I F I C A T I O N S

APPENDIX: D e t a i l e d D r i l l L o g s

DDH 97 - 8 3 1 9 p a g e s

97 - 84 2 2 p a g e s

97 - B5 2 3 p a g e s

P a g e

ii

1

1

5

7

I N T R O D U C T I O N

The K u t c h o C r e e k p r o p e r t y i s l o c a t e d 58'12'N,

128O2 l1W, a n d 200 k i l o m e t e r s due s o u t h o f ' W a t s o n L a k e , Yukon

T e r r i t o r y . The p r o p e r t y i s l o c a t e d i n m o u n t a i n o u s t e r r a i n i n

t h e C a s s i a r M o u n t a i n s .

The p r o p e r t y i s s i t u a t i o n 9 km e a s t o f t h e K u t c h o

a i r s t r i p a n d i s a c c e s s i b l e f r o m t h e r e o n l y b y h e l i c o p t e r .

The p r o p e r t y i s owned a n d o p e r a t e d b y Esso M i n e r a l s

Canada, a d i v i s i o n o f Esso R e s o u r c e s Canada L i m i t e d .

T h i s r e p o r t d e s c r i b e s 8 4 1 . 5 3 m e t e r s o f BQ d i a m o n d

d r i l l i n g done i n 1981 o n JEFF 98 m i n e r a l c l a i m . T h r e e wedge

b r a n c h e s w e r e d r i l l e d f r o m a p i l o t h o l e a c c o u n t i n g f o r t h e

t o t a l m e t e r s d r i l l e d .

The c o r e f o r a l l h o l e s d r i l l e d b y Esso M i n e r a l s o n t h e

K u t c h o p r o p e r t y i s s t o r e d a t t h e e x p l o r a t i o n camp. M a s s i v e

s u l f i d e i n t e r s e c t i o n s a r e s t o r e d i n t h e B.C. Yukon A i r

S e r v i c e ' s h a n g e r a t Watson L a k e , o r Esso M i n e r a l s ' o f f i c e i n

V a n c o u v e r , B. C.

15' 30' I I' 123

ESSO MINERALS CANADA

KUTCHO CREEK PROPERTY

Scale 1 : 250,000 1 Inch t o 4 Miles Approxirnatcly 5 , Miles IO I5 ?O

0 hjiles ~~~ ~ ~~

1 1 ? ~. ~ 2 5 p Kilornerres ---- ~

I5 0 Kilometres 1

K C 26

X F F No 100

JEFF N O 9 9

JEFF N o 88

JEFF 87

I

K C 29

KC 28

JEFF N O 9 8

DDH 979

JEFF No 97

-

JEFF N O 8 6

JEFF No 85

K C 31

K C 3 0

KC 125 FR I

-

JEFF No 96

JEFF: No 95

JEFF N O 8 4

-.Kc: I I 1

-4

JEFF No 94

JEFF No 93

JEFF No82

S M R B

S M R B

LOCATION ' MAP

DIAMOND DRILL HOLE E

Scale 1 : 10,000 0 500

-z CD' i',

I

e - 0 a

=>

0

.-- "r

0 8

u)

w I- W

a

5

0 0 0 d v)

n 3 0 U (3

1.

D I A M O N D D R I L L I N G

T h e t h r e e wedge b r a n c h e s d e s c r i b e d i n t h i s r e p o r t

i n t e r s e c t i n w h o l e o r i n p a r t t h e s t r a t i g r a p h y a s d e s c r i b e d i n

t h e g e o l o g y s e c t i o n s . T h e mass ive s u l f i d e s t r a t i g r a p h i c

h o r i z o n was i n t e r s e c t e d by a l l t h r e e w e d g e b r a n c h e s a l t h o u g h

s u l f i d e c o n t e n t was m a r g i n a l .

T h e d e t a i l e d d r i l l l o g s w i t h a l l a s s a y s a r e i n t h e

A p p e n d i x .

T h e d i a m o n d d r i l l i n g t o o k p l a c e d u r i n g t h e i n t e r v a l

J u l y 6 t o A u g u s t 1, 1981, d u r i n g w h i c h t ime 8 4 1 . 5 3 meters o f BQ

c o r e were r e c o v e r e d f r o m t h r e e w e d g e s i n c l u d i n g 9783 - 2 4 6 . 5 7 m ,

9784 - 291 .69 m , 9 7 8 5 - 3 0 3 . 2 7 m . T h e p r e v i o u s l y d r i l l e d 4/97

d r i l l h o l e was u s e d a s a p i l o t f r o m w h i c h B3, 6 4 , a n d 85 w e d g e s

were d r i l l e d .

GEOLOGY

T h e K u t c h o Creek m a s s i v e s u l f i d e d e p o s i t o c c u r s i n a

s e q u e n c e o f v o l c a n i c r o c k s r a n g i n g i n c o m p o s i t i o n f r o m b a s a l t

t o s o d a r h y o l i t e . T h e s e r o c k s a r e b e l i e v e d t o b e o f T r i a s s i c

a g e o r o l d e r . The r o c k s h a v e b e e n f o l i a t e d , f o l d e d a n d

m e t a m o r p h o s e d t o l o w e r g r e e n s c h i s t f a c i e s .

T h e f o l l o w i n g i s a d e s c r i p t i o n o f t h e l i t h o l o g i c u n i t s

e n c o u n t e r e d i n t h e t h r e e w e d g e b r a n c h e s d r i l l e d i n 1981.

2

B a s i c U n i t :

B a s a l t i c t o a n d e s i t i c f l o w s a n d t u f f s were

i n t e r s e c t e d i n i t i a l l y b y a l l t h r e e w e d g e b r a n c h e s .

T h e b a s i c u n i t r o c k s i n c l u d e mass ive b a s a l t , b a s i c

s c h i s t s , a m p h i b o l i t i c f l o w s , a m p h i b o l i t i c f l o w s w i t h

p l a g i o c l a s e p h e n o c r y s t s , p l a g i o c l a s e p o r p h y r i e s a n d

p l a g i o c l a s e p o r p h y r i e s w i t h m i n o r q u a r t z p h e n o c r y s t s .

V a r i a t i o n s f r o m mass ive , a m p h i b o l i t i c u n i t s t o

p l a g i o c l a s e p o r p h y r i e s a r e t h e m o s t common r o c k s i n

t h e b a s i c u n i t .

T h e b a s i c r o c k s a r e commonly w e a k l y f o l i a t e d a n d

c o n t a i n c h l o r i t e , e p i d o t e - c l i n o z i o s i t e a n d b i o t i t e .

T u f f - A r g i l l i t e U n i t :

\ T h i s u n i t c o n s i s t s m a i n l y o f t u f f s a n d s l i g h t l y

a r g i l l a c e o u s t u f f s m e t a m o r p h o s e d t o q u a r t z - c h l o r i t e -

s e r i c i t e - b i o t i t e s c h i s t s . F i n e l a m i n a t i o n s , g r a d e d

b e d d i n g a n d q u a r t z p h e n o c r y s t s a r e u n a f f e c t e d b y t h e

d e v e l o p m e n t o f f o l i a t i o n .

A b l a c k , c a l c a r e o u s , g r a p h i t i c a r g i l l i t e commonly

o c c u r s a f e w meters a b o v e t h e b a s e o f t h e u n i t . M i n o r

d i s s e m i n a t e d p y r r h o t i t e a n d p y r i t e a r e p r e s e n t t h r o u g h -

o u t t h e t u f f - a r g i l l i t e u n i t .

3 .

Q u a r t z F e l d s p a r C r y s t a l T u f f ( Q F C T )

The QFCT u n i t i s g r a d e d a n d t u f f a c e o u s a t t h e t o p b u t

c o u l d r e p r e s e n t a f l o w a s s e m b l a g e .

Two m a i n p h a s e s o c c u r i n t h e QFCT. The m o s t a b u n d a n t

p h a s e i s a v e r y homogeneous quartz-feldspar-sericite-chlorite

s c h i s t w i t h a b u n d a n t q u a r t z p h e n o c r y s t s , commonly up t o 1 cm,

a n d f e w e r p l a g i o c l a s e p h e n o c r y s t s . The r o c k h a s a d i s t i n c t i v e

p o r p h y r i t i c o r c r y s t a l t u f f t e x t u r e a n d i s v a r i a b l y s e r i c i t i c

o r c h l o r i t i c . I m m e d i a t e l y a b o v e t h e o r e z o n e i t i s i n t e n s e l y

s e r i c i t i z e d .

A c o a r s e b r e c c i a p h a s e o c c u r s i n t h e m i d d l e t o u p p e r

p a r t o f t h e u n i t . I t c o n t a i n s s m a l l t o 1 m f r a g m e n t s

t e x t u r a l l y i d e n t i c a l t o t h e m a t r i x a n d m i n o r f i n e - g r a i n e d

c h l o r i t i c f r a g m e n t s . The b r e c c i a p h a s e i s commonly h e a v i l y

a l t e r e d t o e p i d o t e - c l i n o z o i s i t e .

L a p i l l i C r y s t a l T u f f ( L C T )

T h i s u n i t c o n s i s t s o f q u a r t z , s e r i c i t e a n d c a r b o n a t e

s c h i s t s . I t h a s a r e l i c t f r a g m e n t a l t e x t u r e a n d m i n o r , l a r g e

q u a r t z p h e n o c r y s t s . C o l o r s v a r y f r o m w h i t e t o a d i s t i n c t

g r e y . A t r a n s i t i o n a l c o n t a c t i s assumed b e t w e e n t h i s u n i t a n d

t h e u n d e r l y i n g l a p i l l i t u f f .

4 .

M a s s i v e S u l f i d e H o r i z o n

M i n e r a l i z a t i o n c o n s i s t i n g o f c h a l c o p y r i t e , s p h a l e r i t e

and p y r i t e o c c u r n e a r t h e t o p o f t h e l a p i l l i t u f f u n i t .

S u l f i d e s o c c u r g e n e r a l l y a s t h i n e l o n g a t e w h i s p s c o n f o r m a b l e

w i th t h e s c h i s t o s i t y a n d t o a l e s s e r e x t e n t a s b o t h l a r g e r a n d

s m a l l e r i s o l a t e d b l e b s .

D i s s e m i n a t e d and t h i n l y banded p y r i t e w i t h m i n o r b a s e

m e t a l c o n t e n t o c c u r s i n t h e s e r i c i t e s c h i s t s b e l o w t h e m a i n

m i n e r a l i z e d zone .

L a p i l l i T u f f ( L T )

T h i s i s t h e f o o t w a l l u n i t w h i c h c o n s i s t s o f l u s t r o u s ,

w h i t e t o medium g r e e n , q u a r t z , s e r i c i t e , c a r b o n a t e s c h i s t s .

These s c h i s t s a r e f u r t h e r d i s t i n g u i s h e d b y c l o s e l y p a c k e d , 5 t o

1 5 mm t h i c k e l o n g a t e f r a g m e n t s o f m o s a i c q u a r t z w i t h m i n o r

p l a g i o c l a s e a n d r a r e , f i n e q u a r t z p h e n o c r y s t s . F r a g m e n t

abundance i s h i g h l y v a r i a b l e a n d t h e f r a g m e n t a l t e x t u r e i s

commonly d i f f i c u l t t o d e t e c t b e c a u s e o f t h e p e n e t r a t i v e

f o l i a t i o n s .

.._ _ + crr

COST STATEMENT - KUTCHO ( 1 9 8 1 )

5 .

Assay C o s t s : 11 samples Q $40.75 $ 448.25 ( s a m p l e s run f o r Cu,Pb,Zn,

Au, Ag)

Su rvey r e n t a l one month Q 1400/mo. 1 ,400.00 I n s t r u m e n t : ( S p e r r y Sun)

Core Boxes: 115 r e q u i r e d Q $5 /each 575.00

G e o l o g i s t : $120/day f o r 27 days A s s i s t a n t : $79/day f o r 27 days

3,240.00 2,133.00

Room & B o a r d 7 men Q $28/day f o r 27 days 5,292.00

O t h e r Camp C o s t s : C o o k ' s s a l a r y 2 ,300.00

H e l i c o p t e r : $ 3 6 5 / h r X 48 h r s . ( c o n t r a c t 2068) 17,520.00

cr f u e l 4 8 h r s . x 2 3 g a l / h r x $ 4 / g a l 4 ,416.00

A - s t a r : 1 .7 h r s . p l u s f u e l 1 ,017.79

D i e s e l f u e l : 200 g a l l o n s 8 $1.68 1,512.00

K u t w e l l : 4 drums 8 $207/drum 828.00

Labour C o s t s : 155 h r s . 8 $ 2 4 / h r 3,720.00

D r i l l i n g C o s t s : 3 wedge h o l e s r e f e r t o a t t a c h e d s h e e t 52,820.00

M o b i l i z a t i o n / d e m o b : $3500 p e r 7 ,000.00

TOTAL APPLICABLE COSTS $ 104,222.04

6 .

Drilling Costs: (Detailed)

9783 : 1209 - 2015 BQ 806' drilled 1209 - 1500 = 291 x 18.25 = $ 5,310.75 1500 - 2000 = 500 x 18.75 = 9,375.00 2000 - 2015 = 15 x 19.25 = 288.75 p l u s 1 w e d g e - - 550.00

sub T o t a l 15,524.50

9764 : 1098 - 2055 BQ 957' drilled 1098 - 1500 = 402 x 18.25 = 7,336.50 1500 - 2000 = 500 x 18.75 = 9,375.00 2000 - 2055 = 55 x 19.25 = 1,058.75 p l u s 1 wedge - - 550.00

sub T o t a l 18,320.25

9785 : 1022 - 2017 BQ 995' drilled 1022 - 1500 = 478 x 18-25 = 8,723.50 1500 - 2000 = 500 x 18.75 = 9,375.00 2000 - 2017 = 17 x 19.25 = 327.25 p l u s 1 wedge - - 550.00

sub T o t a l 18,975.75

T O T A L COST $ 52,820.50

7.

STATEMENT OF QUALIFICATIONS

I , Wal t e r D. M e l n y k of Nor th Vancouver , B r i t i s h Columbia h e r e b y c e r t i f y t h e f o l l o w i n g q u a l i f i c a t i o n s :

I o b t a i n e d a B.Sc. (Eng . ) i n 1972 i n G e o l o g i c a l E n g i n e e r i n g from t h e U n i v e r s i t y o f Saska tchewan , S a s k a t o o n .

I am a r e g i s t e r e d member o f t h e A s s o c i a t i o n o f P r o f e s s i o n a l E n g i n e e r s i n t h e p r o v i n c e s of B r i t i s h Columbia and O n t a r i o .

I have been p r a c t i s i n g my p r o f e s s i o n a s a g e o l o g i s t i n Canada f o r t h e p a s t t e n y e a r s .

Esso R e s o u r c e s Canada L i m i t e d

SCI-IEDULE "A"

b- BID SHEET PND JOB SPECIFICATIONS

1. DESCRIPTION OF WORK:

The work is to consist of a series of drill holes, drilled at locations cv

specified by the Ccmpany. drilled, but total footage may be extended by mutual consent. of any hole shall not exceed

a flatter angle than 45' degrws. Measuranent of all holes shall be taken from the top of the casing pipe. If holes of a greater depth than - 2,500 feet are desired, such drilling shall be performed only upon such conditions and at such rates as may be agreed upri before cmencanent of such drilling.

A total minimum footage of 3,000 feet shall be Maximum depth

2,500 feet and minimum depth shall be 800 feet. The Contractor will not be called upon to drill any hole at

2. S m a E OF RATES:

The canpany agrees to pay the Contractor for footage drilled an6 other services performed as follows:

(a) Coring in Bedrock Depth Intervals B Q Size Size

0 - 500 ft. $ 17.25 /R.$ /Et.

500 - 1000 ft. $ 17.75 /Ft $-/e. 1000-1500 ft. $ 18.25 /Ft $-/R.

1500-2000 ft. $ 18.75 /Ft $-/Ft. 2000-2500 ft. $ 19.25 /R $-/R.

(b) Casing of Overburden Dcpth 1nt"erval 0 - 50 ft. $ 17.25 /Ft.

50-100 ft. $/R.

(c) The following services will be provided on an operating Field Cost basis : 1. =sing of overburden over 50 feet - 2. Reamimg and setting casing for borehole reduction, borehole

stahilization, and control of return water.

- 2 -

P

'CI

(Y

3. 4. All cementing operations, excludins setting time but

Drilling caved or broken ground.

including drilling of set cement. Supplying water to the drill when water supply over 2000 feet lateral and/or 300 feet vertical

5.

lift fran borehcle collar under non-freezing conditions and all costs under freezing conditions. Recovering pipe and/or casing at the Cmpny's request. 6.

7. Hole orientation tests. 8. Setting of wedges, at the Company's request, for the purpose

of directional drilling.

Where operating Field Costs are defined as: operatins Field Costs Labour (including Supervision) $24.00 per man hour. Tractor n/a per b u r . Water Truck (excluding driver) n/a per hour.

Esuipnent Drills Type Operating

Hourly Rate 1 Lonqyear S38 $12.00

pun-!Ps Tvpe Operating Hourly Rate

n/a

Other Type Operating H~urly Rate

While operating on a Field Cost basis, supplies consumed or damaged beyond use, including diamond articles, mud ingredients, cement, rods, core Exrrels, etc. shall be for the Company's account at site replacement value plus

10 %. However, if due to Contractor negligeme, or through poor drilling practices, equipnat is damaged or lost and hole is not cmpleted, then these costs shall be for the Contractor's account.

- 3 - e

L

(d) The Follming services would be provided on a non-operating Cost Basis : 1. Setting time for cement. 2. Delays caused by the Ccmpany.

Field

Where non-operating Field Costs are defined as: Non-Operatinq Field Costs

bbour ( Including supervision 1 $24.00 per man hour; Drill, pmps and service vehicle n/a per drill hour. Tractor - operating n/a- - per hour. Tractor - non-operatinq n/a per hour.

(e) Travelling Time The Company agrees to pay for travelling time fran Campsite

to drill site and return per shift on the following basis :

Labour $22.00 per hour after % hour per man.

Vehicle day

(f) Mobilization and Between Hole Moves Mobilization and denlobilization of crew and equipnt.to and fran

Kutcho Creek strip and will charge ccgnpany $3500. for same. holes will be at non operating Field Cost.

Moves between

(9) Roorn an2 board for Contractor's personnel will be provided by Campany

Contractor will provide meals and accmcdations for up to

n/a n/a per day.

of the Canpany's representatives at a price of

R m and board will be provided by the Canpany to Contractor at NO COST per man day.

- 4 -

Core b x c s , including lids, will be provide3 by ?he C m w ny Contractor's rates for core boxes on site shall be $

Core splitter to be supplied by Contractor to supply core splittter at n/a per

?

n/a

Standby Rental It is agreed that, at the carpletion of the present active drilling program, the hpany may retain the Contractor's drilling equipnent at drill area for a rental rate of per

per drilling unit. camnencment of continuous drilling program, or on the uiving of written notice to the Contractor by the Ccsnpany that the drilling equipnt is no longer required.

The standby rental charge will cease to apply upn

(k) Fuel, gas, oil and propane for drills, pmps, heaters and camp will be supplied by The C m m y at no cost to The Contractor

(1) The Contractor will mobilize and demobilize his drill and supplies to and frm Kutcho Creek Strip and will charge $3500. for same.

(m) at Non-Operating Field Cost.

Delays caused by lack of transportation will be charged to the Company

(n) Special Agreements. 1. core barrels and shells required for wedging and/or controlled drilling. 2.

The Company will pay for all wedging assemblies and special

The Contractor agrees to supply complete wedging assemblies and to wedge holes at Field Cost under the supervision of the Company's project engineer. arises which is traceable to a wedge, the cost of clearing the hole to allow drilling to proceed will be charged to the Carpany. The cost of pulling rods under cmtrolled drilling over and zbve that normally required. will be charged to the Company at Field Cost.

It is further agreed that if trouble

3.

E l ESSO RESOURCES CANADA LIMITED


DATE

CONTRACTOR

CORE SIZE

‘i39 DATE STARTED

J u l y 1 4 , 1381

DATE COMPLETED

t c , , ~ 3 i I C 2 3 ‘3 ‘1 DIP TESTS

1263 77.5 - I - - ? ’

7 8 . 0 - ,51’ 1 3 4 9

IS09 b b . 5 ’ l b 2 *

COMMENTS \ b o y 5 7 . 5 ’ I ” ; a

GROUND ELEV.

- r44/,, BEARING

DIP

TOTAL LENGTH

2015’ (L,4.!1.-)

HORIZONTAL PROJECT

122.17 M (dCd3C)

VERTICAL PROJECT

ALTERATION SCALE

0 1 2 3

absent

slight

moderate

intense

TOTAL SULPHIDE SCALE

0 1 2 3 4

traces only

< 1 O/O

1 ‘/a - 3% 3% - 10%

> 10%

LEGEND

R D PENHALL LTD MADE IN VANCOUVER CANADA DUKSBAK WATERPROOF

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