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REPORT ON DRILLING PROGRAM DURING APRIL AND MAY, 1979
ON THE REDONDA CLAIM GROUP
WEST REDONDA ISLAND, B . C .
BY A . I . BETB!ANIS, P .Eng
C l a i m s : Redonda (#282) a n d R e d o n d i t a ( X 2 8 3 )
M i n i n g D i v i s i o n : Vancouver
N.T.S. 9 2 K/7W
L a t i t u d e Ek L o n g i t u d e : 50°17 'N; 124O55'Ti.
Owner : Teck C o r p o r a t i o n , 1199 West I i a s t i n g s S t r e e t , V a n c o u v e r , B . C.
Operator : T e c k E x p l o r a t i o n s L i m i t e d
V a n c o u v e r , B.C. J u l y 23, 1979
CONTENTS
INTRODUCTION ( a ) G e n e r a l Statement (b) Locat ion and Access ( c ) Prope r ty and Hi s to ry ( d ) General Geology and M i n e r a l i z a t i o n ( e ) Summary of Work
TECHNICAL DATA AND INTERPRETATION
REFERENCES
Page
1 1
__
1 2 3
APPENDIX I : Diamond D r i l l Logs, Holes R79-1 t o 4
APPENDIX 11: Author ' s C e r t i f i c a t e
APPENDIX 111: D r i l l Core Assays by Bondar Clegg
APPENDIX I V : D r i l l Cont rac t
APPENDIX V: Cost Statement
FIGURE 1: Locat i on Map
FIGURE 2 : Claim Map
Following Page 1
Following Page 2
MAP 1: Locat ion of D r i l l Holes, Hel ipads In Pocket and Access T r a i l s
IKTRODUCTION
( a ) General Statement
The d r i l l i n g pro,gram undertaken on t h e Redonda claims o f
Teck Corpora t ion and desc r ibed i n t h i s r e p o r t is p a r t of an
on-going minera l e x p l o r a t i o n program which w a s i n i t i a t e d
i n Apr i l 1979 and is s t i l l i n p r o g r e s s .
The prupose of t h e program is t o t es t by diamond d r i l l i n g
t h e grade of copper and molybdenite m i n e r a l i z a t i o n i n d i c a t e d
i n one o r more zones on t h e Redonda and Redondita m i n e r a l
claims l o c a t e d a t t h e northwest co rne r of West Redonda
I s l a n d , B . C .
(b) Loca t ion and Access
The p rope r ty is l o c a t e d on West Redonda I s l a n d , 40 km n o r t h e a s t
of Campbell R i v e r , and is c e n t r e d a t approximately 1 km
northwest of Mount P e r r i t t and 4 km n o r t h e a s t of Redonda Bay
between Tom Lake and Connis P o i n t . The c l a ims are w i t h i n
t h e Vancouver Mining D i v i s i o n and NTS d e s i g n a t i o n 92 Ii/71V.
Geographical co-ord ina tes are 50°17'N, 124°551W
Access t o t h e p r o p e r t y i s by approximately 15 minutes
h e l i c o p t e r f l i g h t from Campbell R i v e r ; o r by a scheduled
f l o a t p l ane s e r v i c e o p e r a t e d by I s l a n d A i r l i n e s from Campbell
River t o Redonda Bay, and approximately 5 . 3 k m of l ogg ing
road from Redonda Bay.
136O 132O 128 O 124O 120' 116 O 112'
BRITISH COLUMBIA
ALBEETA
Grande Prairie
- 520
,-... - U S A
0 120 240
56 O
EDMONTON
TECK CORPORATION VANCOUVER, B.C.
REDONDA CLAIM GROUP LOCATION MAP scale in miles
132O 128O 124 O 1200 116 O
I I I FIG. 1 I 1051 - PR-1 '
-2-
( c ) Prope r ty and I l i s to ry
The p r o p e r t y c o n s i s t s of t h e Redonda C l a i m of 20 u n i t s ,
r e c o r d number 282, and Redondita C l a i m of 6 u n i t s , r e c o r d
number 283, recorded on Nay 31, 1978. The claims are a
r e s t a k i n g of abandoned claims Red 1-4 (10403-06), 9 and 10
(10411-12) and T i s h 1-5 (21873-77). The Xedonda and
Redondita claims are h e l d by Teck Corpora t ion .
The o r i g i n a l Red claims were s t a k e d by Mastedon Highland
B e l l Mines Ltd . i n t h e e a r l y 1960 ' s t o cover c h a l c o p y r i t e
and molybdeni te m i n e r a l i z a t i o n exposed i n o u t c r o p s and
logging road c u t s . I n 1964 and 1965 t h e b a s i c l i t h o l o g y was
mapped, a v e r t i c a l loop Eh! survey made over a l i m i t e d
p a r t of t h e p r o p e r t y , and geochemical s o i l samples c o l l e c t e d
and ana lysed from t h e main area of i n t e r e s t (Bacon, 1965) .
I n 1966 hand and b u l l d o z e r t r e n c h e s were c u t for s u r f a c e
sampling and t h e work was recorded f o r assessment .
Teck Corpora t ion acqu i red t h e p r o p e r t y from Mastedon Highland
B e l l and i n 1972 r e s t a k e d some of t h e e x p i r e d Red c l a ims
w i t h t h e T i s h 1-5 claims. A l i n e g r i d was c u t over p a r t of
t h e p r o p e r t y and magnetometer and VLF-EM s u r v e y s s t a r t e d
i n t h e f a l l of 1972 (Betmanis , 1972) , b u t t h e program had
t o b e s topped premature ly due t o weather c o n d i t i o n s . I n
1975 t h e Fores t S e r v i c e commenced a t h i n n i n g program of t h e
nor thwes t co rne r of West Redonda I s l a n d and o b l i t e r a t e d t h e
g r i d .
TECK CORPORATION
CLAIM MAP VANCOUVER, B.C.
REDONDA C L A I M GROUP REDONOA ISLAND, B.C.
SCALE 1:SO 000
1051-TP-1
-3-
I n 1 9 7 7 Teck r e s a m p l e d par t of t h e Mastedon H i g h l a n d B e l l
g e o c h e m i c a l s u r v e y area, c o l l e c t i n g s o i l s a t two l e v e l s , and
dug s e v e r a l t es t p i t s t o d e t e r m i n e t h e n a t u r e of t h e p r e v i o u s l y
i n d i c a t e d geochemica l a n o m a l i e s ( C a r r , 1977).
I n 197s Teck C o r p o r a t i o n r e q u e s t e d p e r m i s s i o n t o abandon t h e
Red and T i s h claims and t o r e s t a k e u n d e r t h e new s y s t e m .
The Redonda and R e d o n d i t a c la ims now c o v e r t h e p r e v i o u s l y
h e l d p r o p e r t y .
( d ) G e n e r a l Geology and I I i n e r a l i z a t i o n
Dior i te a n d q u a r t z d i o r i t e of t h e C o a s t Range B a t h o l i t h
h a v e b e e n i n t r u d e d by a s m a l l q u a r t z h o r n b l e n d e p o r p h y r y p lug
and n o r t h e r l y t r e n d i n g h o r n b l e n d e p o r p h y r y dyke complex.
Widesp read p y r i t e m i n e r a l i z a t i o n is d i s s e m i n a t e d t h r o u g h o u t
most of t h e r o c k s on t h e p r o p e r t y . A c o n c e n t r a t i o n of
d i s s e m i n a t e d c h a l c o p y r i t e m i n e r a l i z a t i o n a p p a r e n t l y is
l o c a l i z e d i n and n e a r t h e h o r n b l e n d e dyke complex i n t h e
v i c i n i t y of t h e q u a r t z h o r n b l e n d e p o r p h y r y p l u g . Molybden i t e
m i n e r a l i z a t i o n o c c u r s p r i m a r i l y i n q u a r t z f i l l e d f r a c t u r e s i n
t h e g e n e r a l area of c h a l c o p y r i t e m i n e r a l i z a t i o n and p a r t l y a s
a d i s s e m i n a t i o n i n l o c a l i z e d b r e c c i a t e d q u a r t z d i o r i t e z o n e s .
-4-
( e ) Summary of Work
I n e a r l y A p r i l 1979 access roads were cleared of snow
and s l i d e s from Redonda Bay t o t h e proposed a c t i v e a r e a s on t h e
p r o p e r t y by Th i rd Lake Logging i n p r e p a r a t i o n f o r d r i l l and
camp m o b i l i z a t i o n .
On Apr i l 17 t h e crews and a Longyear 38 d r i l l and r e l a t e d
equipment were mobil ized from Vancouver t o West Redonda I s l a n d
t o commence d r i l l i n g . D r i l l s i t e p r e p a r a t i o n and s e r v i c e
h e l i p a d s were t h e r e s p o n s i b i l i t y of Teck Corpora t ion pe r sonne l .
D r i l l i n g o p e r a t i o n charges and f e e s w e r e a t c o n t r a c t r a t e s a s
p e r appended c o n t r a c t .
By t h e a n n i v e r s a r y d a t e of t h e Redonda and Redondita c l a i m s ,
t r a i l s i t e and h e l i p a d c o n s t r u c t i o n f o r f i v e d r i l l h o l e s had been
made, and 700 meters of NQ w i r e l i n e c o r e d r i l l i n g had been
completed i n f o u r h o l e s . H y d r o f l u r i c a c i d tes ts f o r h o l e
d e v i a t i o n w e r e t aken . All d r i l l moves w e r e made u s i n g B e l l
Jet Ranger 206B h e l i c o p t e r s c o n t r a c t e d on a n hour ly b a s i s from
Okanagan H e l i c o p t e r s Ltd . a t e i t h e r Campbell River or P o r t
M c N e i l , depending on a v a i l a b i l i t y . D r i l l c o r e s were logged,
s p l i t i n 2 . 5 meter sample i n t e r v a l s and s e n t t o Bondar-Clegg
and Company Ltd . i n North Vancouver f o r a s say ing f o r copper and
molybdeni te . D r i l l i n g l o g s wi th sample r e s u l t s assayed t o d a t e
are a t t a c h e d t o t h i s r e p o r t a s Appendix I . Locat ion of d r i l l
h o l e s , access t r a i l s and h e l i p a d s are shown on t h e accompanying
map.
-5-
D r i l l i n g on t h e p r o p e r t y is con t inu ing .
TECHNICAL DATA AND INTERPRETATION (See Diamond D r i l l l o g s and A s s a y s , Appendix I )
Diamond d r i l l Hole R79-1 was d r i l l e d t o t es t a g e o l o g i c a l l y
f avourab le zone i n d i c a t e d by s i l i c i f i c a t i o n , s t r o n g f r a c t u r i n g
and p y r i t i z a t i o n mapped by Mastedon Highland B e l l ? I i n e s Ltd .
Minor amounts of c h a l c o p y r i t e m i n e r a l i z a t i o n a s d i s semina t ion ,
and minor molybdenite m i n e r a l i z a t i o n on f r a c t u r e s , o f t e n
a s s o c i a t e d w i t h q u a r t z v e i n i n g , were encountered i n s t r o n g l y
f r a c t u r e d and p y r i t i z e d q u a r t z d i o r i t e and d i o r i t e . T h e d r i l l
h o l e w a s s topped due t o i n s u f f i c i e n t v i s i b l e copper and molybdeni te
m i n e r a l i z a t i o n t o g i v e economic g r a d e s . Samples a s shown on t h e
d r i l l l o g s w e r e s p l i t and a r e be ing he ld for l a t e r a s say ing .
Diamond d r i l l Hole R79-2 was d r i l l e d t o test a geochemical s o i l
anomaly o b t a i n e d both by Mastedon Highland B e l l and Teck
Corpora t ion , and an area of c h a l c o p y r i t e and molybdenite
m i n e r a l i z e d q u a r t z d i o r i t e breccia v i s i b l e i n nearby outcrop
an$. f l o a t . Low grade copper and molybdenite va lues were
encountered i n t h e upper p a r t of t h e h o l e ( ave rage 0.08% Cu
and 0.007% UoS2 from 3 . 6 t o 110.0 m e t e r s ) .
a l t e r a t i o n and g rade occurred a t 111.0 meters, and from 110.0
t o 206.7 meters t h e c o r e samples assayed an average 0.20% Cu and
0.020% MoS2.
g rade and a l t e r a t i o n , and may e x p l a i n p a r t l y t h e geochemical
s o i l anomaly. The mine ra l i zed q u a r t z d i o r i t e b r e c c i a a s
exposed on s u r f a c e was not encountered .
An abrupt change i n
A r t e s i a n water was encountered a t t h e change i n
-6-
Diamond d r i l l hole R79-3 was d r i l l e d t o test a geochemical s o i l
anomaly o b t a i n e d by EIastedon Highland B e l l . T h e d r i l l c o r e
was well m i n e r a l i z e d wi th c h a l c o p y r i t e and molybdeni te .
Assays from 3 .4 t o 177 .5 meters averaged 0.20% Cu and 0.044%
MoS2, i n c l u d i n g 0.22% Cu and 0.058% MoS2 from 3 . 4 t o 125.0
meters. Samples from 177.5 meters t o t h e bottom of t h e h o l e
are awa i t ing a s s a y s . M i n e r a l i z a t i o n encountered i n t h e d r i l l
h o l e i s s p a c i a l l y r e l a t e d t o and inc luded i n complex hornblende
porphyry dyking which i n t r u d e s q u a r t z d i o r i t e .
Diamond d r i l l Hole R79-4 was d r i l l e d t o f u r t h e r t es t t h e
geochemical s o i l anomaly and mine ra l i zed b r e c c i a which t h e upper
p a r t of Hole R79-2 f a i l e d t o e x p l a i n adequa te ly . Weak
d i s semina t ion of c h a l c o p y r i t e and p y r i t e m i n e r a l i z a t i o n , and
ve ry m i n o r molybdeni te m i n e r a l i z a t i o n , i n q u a r t z d i o r i t e were
encountered. A l l c o r e w a s s p l i t , wi th t h e upper p a r t of t h e
h o l e still b e i n g h e l d f o r assay. From 47 .5 t o 156.4 meters
t h e assayed g rades averaged 0.09% Cu and 0,003% MoS2.
D r i l l i n g of t h e f i r s t f o u r diamond d r i l l h o l e s gave p a r t i a l l y
encouraging r e s u l t s by i n d i c a t i n g p o t e n t i a l l y economic g rades
of copper and molybdenite i n d i c a t i v e of a porphyry copper-
molybdenum d e p o s i t . F u r t h e r d r i l l t e s t i n g of t h e i n d i c a t e d
mine ra l i zed zone is r e q u i r e d , and such work is c o n t i n u i n g .
R e s p e c t f u l l y submi t t ed ,
A . I . B e t m a n i s , P.Eng.
J u l y 23 , 1979
Vancouver, B. C .
-7-
REFERENCES
Stephen , J . C . (1964) : Red Group, West Redonda I s l a n d ;
p r i v a t e r e p o r t da t ed December 15, 1964
Bacon, W . R . (1965) Geologica l , Geochemical and Geophysical
Report on t h e Red C l a i m Group, West
Redonda I s l a n d ; assessment r e p o r t g638
d a t e d June 8, 1965.
Cowan, M.F. (1966) : Red C l a i m Group - Report on Trenching
May 1966; p r i v a t e r e p o r t da t ed
October 1966.
Betmanis , A . I . ( 1973) : Report on Geophysical Surveys, Red
Claim Group; a s s e s s m e n t r e p o r t 84167
d a t e d January 22, 1973.
C a r r , J . 11. (1977) : Report on Geochemical and P h y s i c a l
Work on t h e Red Claim Group; assessment
r e p o r t 6330 d a t e d J u l y 1 3 , 1977.
APPENDIX I
Diamond Drill Logs
Holes R79-1 to 4
b .
I
D R I L L I N G R E C O R D COMPANY r C I CnE7aRCn70hJ PROPERTY
L
O I P , F O O T A G E 1 A Z I M U T H 1 S t a r t e d A&??/& 2q. /9 /u C o c a t ion 4/ s ; k34E F i n s h e d P a , Z G . /973 I977 &%/D S4q s€ D e p t h f3tZ-6 u-. r I 1
I Q L L A R f s45g I - 70"
00 - 2.7
2 -7-65.0
I 4 *
D R I L L I N G RECORD
S t a r t e d F i n s h e d D e p t h Hole slze
. Lac a t io n
E l e v a t f o n
DEPTH
\ rf
SAMPLES A S S A Y S RECOV - I 1 I T O IWIOTH CLC i&X? NO. I F R O M
DESCRIPTION
1
I I
--
I
I' I
I I L
I r .
. - -BBArF L3G G Am-
F i n s h e d PEW )ZG, / 979 D e p t h 5. Hole size n / Q . - E l e v a t l o n 3 3 ~ 9 . 0
D R I L L I N G RECORD
F O O T A G E I A Z I M U T H I O l P C O L L A R i S4-% r=" f 4.) . '3
1 I
1 1
DEPTH
I
D R I L L I N G R E C O R D COMPANY PR 0 P E R TY
PR// Z6 . /.977 F O O T A G E A Z I M U T H F i n s h e d /479 GR/D ZAGC Star ted Loc a t i o n
Hole s ize Mc3 Elevat ion D e p t h 1 3 G - 6 Ad7-S.
DEPTH
t o g g e d by
i
D R I L L I N G * RECORD ' .
/ w I v : 22/ E /977 6R0D 3ArrG
Star ted AP?/L 29- /A79 L o c a t io n F i n s h e d ,-. , D e p t h Hole s ize E l e v a t i o n / 3 A / I a . -0 A44 P Z # J g - ----
DEPTH
I 9
D R I L L I N G R E C O R D COMPANY c b ~ ~ P d z A - - - - r J N PROJECT /OS1 A? 79 -a PR 0 PER T Y n v ONDA A R E A "W zE>h/E N ! # ? A f 6-W EM
S t a r t e d /L 23. 137-9 t o e a t io n /Id A / : 33ic - Finshed Y t%. 1 9 7 4 . . 1-977 Gh/D D e p t h z a . 7 a. Hole size N O E l e v a t i o n J / q 4 .s. 1. mm MAP ZAJC r.
DEPTH
D R I L L I N G RECORD
/ t 4 N : 3 2 1 &- 1 9 7 7 c?"
S t a r t e d . . A PiWL 29.0979 L o c o t i o n F i n s h e d WA?Y 6, 1979 2aD nArF D e p t h Z O G . 7 Hole size E l e v a t l o n
RECOV S A M PLES 1 A S S A Y S T O F R O M NO, 1 DESCRIPTION
I
c .
I
D R I L L I N G R E C O R D t .
*
I
D R I L L I N G R E C O R D
- r,. /939 /977
S t a r t e d F i n s h e d I GRID 2 3 A s F D e p t h zotg-7
Loc a t i o n //4 N : 22/ dz
DEPTH
/ / I d - SAMPLES
RECOV.
I I I I TO i W I D T H FRON NO. I DESCRIPTION
. - - -
D R I L L I N G RECORD
DEPTH
65. o -69.4
.
- D R I L L I N G RECORD PROJECT C 0 M PA N Y -Z~ZC.K Ca&?Poie#noN
PROPERTY A R E A
S t a r t e d /o f 9 7 9 Loc a t io n
MAP 2mG D e p t h Hole size /\/a * E l e v a t i o n w I
GEocW€M - "C" ;ZONE
274 s ! / 4 t Z I " a / 977 -w ' F O O T A G E A Z I M U T H D I P
0 C O L L z 79' A R s;/,'-& ' F i n s h e d && Y 6. /979 / D P4wf zoo*5 #7-s.
I
DEPTH
B5-7- ,
,
.
. D R I L L I N G RECORD
* /977 GQ/D 2&E DIP ' F O O T A G E I A t l W U T H I C O L L A R Ys-&- I 709
1 - & 7 C
1
S t o r i e d 1 0 /979 Loca t ion 274 s _1' 14 f4 F i n s h e d D e p t h zoo*s 447.3 Hole size NCV * E l e v a t i o n 657 M a *J.L 7b*M &$&6
* /s. /379
D R I L L I N G RECORD
DEPTH
D R I L L I N G R E C O R D
Star ted Y 4y. /979 Finshed &AY 24. I 9 7 9
Hole size No? D e p t h r S " G - 4 W S
l o c a t i o n * / 9 7 7 G R
3-G *
S A M P L E S ASSAYS RECOV r
NO. I F R O M tQ IWIOTH ,%C1 Io/o&.J DEPTH DESCR I PT I ON I I I ! f
a4- / 3 / G I ' I I
I I I I
2 -5
I I
. D R I L L I N G R E C O R D
COMPANY & d P R 0 PER T Y EFa*NDA
A / : / O O F J
V 24: 1979 * /937 c;‘/z/D a4 F O O T A G E 1 A Z I M U T H I D I P s s S t a r t e d M f i Y /c9. /979 Loc a t i o n
C O L L A R 1 ,‘54.\ C 1 D e p t h /5&4 #zs. 3 7 . L l f l I - F i n s h e d r ‘ I I
- - c.
Hole size NQ. * E l e v a t i o n /;c/o M UJ.,! mm MA? 0636
SAMPLES RECOV
NO. 1 F R O M TO IWIDTH DEPTH DESCRIPTION I I I
A S S A Y S
*
D R I L L I N G RECORD COMPANY - = z % z x G 3 E PROPERTY
_I
/O-S/ 2 7 9 - 4 0 . ‘z ” Z W €
PROJECT A R E A
* Lac a t i o n Started r973
Finshed J 9 79 * D e p t h 0.ci ‘4 &a*
0 M m. .P./. m S 3 a Hole size * E l e v a t i o n M 4 P n’Jt c.
DEPTH SAMPLES A S S A Y S RECOV *
NO. 1 F R O M TO } W I D T H sf% I%q/L1 I I DESCRIPTION
APPEhDIX I1
Author’s Certificate
AUTHOR'S CERTIFICATE
I , Andris I . B e t m a n i s , do hereby c e r t i f y t h a t :
I a m a g e o l o g i s t r e s i d i n g at 1988 Arroyo Cour t , North
Vancouver, B. C . , and employed by Teck E x p l o r a t i o n s L t d . ;
I a m a g radua te o f t h e U n i v e r s i t y of Toronto wi th a B.A.Sc
degree i n Applied Geology;
I a m a r e g i s t e r e d member of t h e Assoc ia t ion of P r o f e s s i o n a l
Engineers of t h e Province of B r i t i s h Columbia;
I have p r a c t i c e d my p r o f e s s i o n i n geology con t inuous ly
s i n c e 1965, and s i n c e 1970 i n B r i t i s h Columbia;
-Between Apr i l 1 7 , 1979 and May 31, 1979 I s u p e r v i s e d the
diamond d r i l l i n g and p h y s i c a l work on t h e Redonda and
Redondita claims desc r ibed i n t h i s r e p o r t on b e h a l f of
Teck Corpora t ion
is; P.Eng. J u l y 23, 1979
APPENDIX I11
Drill Core A s s a y s by Bondar-Clegg
BONDAR-CLEGG & COMPANY LTD. 1 ‘ PAGE No. ~~~
May 9, 1979 DATE:
1199 West Hastings Street Vancouver, B.C. V6E 2K5
CERTIFICATE OF ASSAY Samples submitted: May 4, 1979 Results completed: May 9, 1979 PROJECT: a1051
3 hi?rebg tedfifg that the following are the results of assays made by us upon the herein described _____________._ d.r.iJ.J,..w.Ee. _____________...._.._ samples.
MARKED
p79-L 17976 4 9 0 - 6 7 . 5
17977 17978 17979 17980 7>70-77*?;
e 3 - L 18276 3.64.0 18277 18278
18279 18280 IZ*s’-1~*0
18281 18282
18283 18284’ 18285 250-21.5
18286 18287
18288 18289 35.0-37.c
NOTE: Rcjccts retained thrce wccks Pulos rctnincd thrcc months
GOLD
Ounces per Ton
Grams per
letric Tor
SILVER
Ounces per Ton
Grams per
letric Tor
cu
Percent
0.09 0.16
0.OG 0.09 0.10
0.10
0.06
0.10
0.06
0.04 0.03 0.39 0.04
0.08 0.05 0.07 0.17
0.07 0.07
0.002 0.010 0.003 0,002
0.007 0.002 0.010 0.022
0.002 0.005
0.003 0.012 0,002
0.003 0.003 0.002 0.002
0.015
0.003
Percent
-
Percent Percent
.... . . . . . . . . .,_ . . . . . . . . . . . . . . . . . . . of Britmh Columbia
Percent
unl& otherwise arranged.
Z x Corp. REPORT NO. A2s 206 Td: - ' rAGE No. 2 DATE: May 9 , 1979
'. *
BONDAR-CLEGG & COMPANY LTD.
CERTIFICATE OF ASSAY
$2r&g tedifg that the following are the results of assays made by us upon the herein described __......_...._._.. dr.%.%.!..COE __._.___._.__._.._ samples.
M A R K E D
W9-a 18290 37*$-40*0
1829 1 18292
18293 18294 18295 $0.0-SZ.5
1829 6 18297
18298 18299
18300 62.S-bS-O
cc A. Betmanis
NOTE: Rejccls rctained three wecks Pulos retained three months
GOLD
Ounces per Ton
- Grams
etric Tor per
7
-
SILVER
Ounces per Ton
Grams
letric Tor per
CU
Percent - 0.08
0.05 0.04 0.05
0.06
0.06 0.04
0.09 0.05
0.20
0.06
MOS, 1
Percent
0.002
0.005 0.002
0.002
0.023 0.012 0.003
0.01c
0.005 0.07: 0.003
Percent Percent Percent Percent Percent
-
- un&s otherwise arranged.
, ,
18031 18032 18033 IU96-1a7.r 18034 18035 18036 18037 IS,'.o-Ifl~
12-72 I 3 5 L 9 ! I L L
0 36Z
BONDAR-CLEGG & COMPANY LTD. 1500 PEMBERTON AVE.. NORTH VANCOUVER. B.C. PHONE: 985-0681 TELEX: 04-54554
0.21 0.20 0.15 0.16 0.15 0.18 0.18
Certificate of Analysis
17989 97*S5-100*0 17990 17991 17992 17993 J 0 7 * ~ - 1 1 0 ' 6 1 7 9 4 4 17995 17996 17997 117*S--12*)*0
Teck Corp.
1199 West Hastings Street
Vancouver, B . C. V6E 2K3
TO
0.04 0.003 0.02 4.002 0.03 4 . 0 0 2 0.02 0.002 0.08 4 . 0 0 2
0.34 0.002 0.41 0.002 0.35 0.002
7mi-o.012
A29 - 210 May 11, 1979 PROJECT: 1051
17998 17999
I hereby certify that the following are the results of assays made by us upon the herein described d r i l l core samples.
0.33 0.003 0.34 0.002
UARKED
17983 0.05 17984 0.06 17985 ~ * ~ - > 0 . 0 0.04 17986 0.06 17987 0.04 17988 0.05
0.002 0.032
4.002 <o ,002
0,002 4,002
0,002 0.002
NOTE: Rejects retained two weeks Pulps retained three months
.̂c.̂ ...,:r.. --*"..""A
ERCEN' - MOSZ- 6Toi 1 0.005 0.008 0.035 0.023 0.063 0.013 0.025 0.007 0.010 0.006 0.008 0.052
- )AR-C
MARKED
EGG & COMPANY LTD.
ERCENl ERCENT
d
T ~ : Tec Jxploration Ltd. REPORT No - A - 225
PAGE No. 1 BONDAR-CLEGG & COMPANY LTD. DATE May 22, 1979
1199 West Hastings Street Vancouver, B.C. V6E 2K5
Samples submitted: May 14, 1979 Results completed: May 22, 1979 CERTIFICATE OF ASSAY
PROJECT: 1051
3 hmbQ rcrfifp that the following are the results of assays made by us upon the herein described .....,.... .... ,dri,l.l.,.Co.re,. ,. ...,..,.... . .,, . samples,
MARKED
09-r 18038 157-S- I6b.4~ 18039 18040 18041
18042 167*S-170'0 18043 18044 18045
18046 177-S- 180.0 18047 18048 18049
18050 187.S- 190.0 18051 18052 18053
18054 t 9 7 . ~ - t O O + O
18055 18056 18057 2050 - ~ . 7
cc A.I . Betmanis
GOLD I SILVER Ounces
per Ton Ounces
cu
Percent
0.24 0.08 0.07 0.15
0.22 0.17 0.20 0.20
0.20 0.14 0.23 0.22
0.12 0.18 0.22 0.16
0.18 0.06 0.04 0.19
- 3 Percent
0.023 0.010 0.013 0.042
0.037 0.025 0.027 0.020
0.038 3.010 0.028 3.025
3.028 3.022 3.022 3.033
3.027 5.005 3.003 3.043
Percent Percent Percent Percent
TOTAL VALUE PER TON
(2000 LBS.)
. , .. . . , . , . . . . . .. . , . . . . . . .. . . . . . . . . , .... . , . ..... . ..... of British Colunibia
........ .......
\< pj .. * . To: Teck dorp. REPDR% No A-J - 232 PAGE No. 1 BONDAR-CLEW & COMPANY LTD. DATE: May 23. 1979
1199 West Hastings Street Samples submitted: May 17, 1979 Vancouver, B. C , V6E 2K5 CERTIFICATE OF ASSAY Results completed: May 23, 1979
PROJECT: # 1051
8 brrebg $&iff! that the following are the results of assays made by us upon the herein described .................... dril Lcore. .........................samp les.
MARKED
z79-3 18058 3. if- 9.0 18059 18060 18061 18062 1 Z . s ” l S ’ 0 18063 18064 18065 18066 C2.F- z i ” . ~ 18067 18068 18069 18070 32*>’-3>-*0 18071 18072
i ’- /- c& M r . A, Betmanis
GOLD Ounces
per Ton Value
per Ton
SILVER Ounces
per Ton
cu
Percent
0.24 0.54 0.28 0.26 0.57 0.15 0.67 0.30 0.50 0.38 0.16 0.07 0.05 0.28 0.26 0.04 0 *>L 0.17 0.40 0.14 0.13
Percent .-
c
Percent Percent Percent
em& VUUE PER TON
(2000 LBS.)
I - / & ) - ,- !;;;{ 2 $ ,..-,
1. , - 242 REPORT No - DATE May 28, 1979
Samples submitted: May 22, 1979 Results completed: May 28, 1979
PROJECT: 1051
*%’ ’J T ~ : Tec.. Explorations Ltd. 10:’:l
PAGE-No. 1 BONDAR-CLEGG & COMPANY LTD. 74
1199 West Hastings Street Vancouver,. B.C. V6E 2K5
.- CERTIFICATE OF ASSAY
8 fTer&?&g t&fQ that the following are the results of assays made by us upon the herein described .................... d r i l l ....C 0r.e ,... .........,....... ,... samples. - MARKED
18075
18080 - 60 18081
18083 18084 18085 18086 72.5-7SO 18087 18088 18089
iZ79-3 18079 5S.C-57’:
18082 G.Z.;-bs-..O
18090 G,L.<-L~C-O 18091 18092 18093 18094 92.5-55.3 18095 1809 6 18097 18098 f 02.>*-t&O 18099 18100 18101 - ( l L . + -
GOLD I SILVER Ounces
per Ton Value Ounces
cu
Percent
0.22 0.12 0.10 0.06 0.13 0.10 0.09 0.19 0.17 0.08 0.05 0.08 0.22 0.38 0.08 0.11
0.28 0.26 0.14 0.14
0.19 0.08 0.39 0.58
0.15 0.06
Mos2 Percent
0.008 0,015 0.068 0.005 0.003 0.005 0.23 0.082 0.035 0.35 0.045 0.020 0.043 0.053 0.012 0.22 0.073 0.28 0.005 0.005
0.010 0.003 0.095 0.18
0.008 0.003
Percent i+6gvc(r$
Percent I Percent Percent
- - Percent
TOTAL VALTJX PER TON
(2000 LBS.)
. . . . . . . . . .. . . . ...
r - / -J , REPORT No - A - 242
BONDAR-CLEGG & COMPANY LTD. DATE May 28, 1979 ' To: Teck Explorations L t d . i
PAGEA". 2 c
c-
CERTIFICATE OF ASSAY
4EIdlg terfifg that the following are the results of assays made by us upon the herein described ............... dr i l l ... Core .,..., . .......,. ., ...... . samples.
MARKED
18107 18108 I27.>--130.0 18109 18110 18111 18112 137.5--140.0 18 113 18114 18115 18116 i 4 7 c - r9.o
I , > 18117 18118 18119 18120 l 5 7 . G - 1Lo.O 18121 18122 18 123
18126 18127 17a<Q-177.>@
cc Mr. G. Louang
GOLD Ounces
per Ton Value
per Ton
SILVER Ounces
per Ton
cu
Percent
0.22 0.06 - 0.30 0.11 0.06 0.05 0.08 0.15 0.06 0.57 0.11 0.19 0.43 0.20
71Toy 0.11 0.15 0.14 0.08 0.14 0.11 0.12 0.07 0.10
3 Percent
0.052 0.15 0.027 o:Czi3-
--
0.003 0.003 0.012 0.003 0.004 0.010 0.010 0.015 0.020 0.020 mo7- 0.005 0.018 0.007 0.004 0.005 0.015 0.005 0.005 0.035
-
-+ Percent Percent
i; I
i
- - Percent
TOTAL VALUE PER TON
(2000 LBS.)
03
-PAG.E-h'o. 1 BONDAR-CLEW & COMPANY LTD. DATE: June 5 , 1979
Samples submitted: May 30, 1979 Resu l t s completed: June 5 , 1979 CERTIFICATE OF ASSAY 1199 West Bast ings S t r e e t
Vancouver, B . C . V6E 2K5
p;;3-0.+J.L/ PROJECT: 1051 I C ( Y - 6
3 fier&g that the following are the results of assays made by us upon the herein described _._._. ~ .................................................... core samples.
MARKED
G79-4 18137 47.~~- 53-t 18138 18139 18140 18141 S7*b**-LO.C 18142 18143 18144
18145 L7.5- 70.i 18146 18147 18148
18149 7 7 d - 8 O . C 18150 18151 18152
18153 87.5-96.0 18154 18155 18156 9S.0-97.2
18157 97 .2 - IW 18158 18159 ' 18160 lo5 - 1-7'; 18161 \Oi'.Y-\'O
. . . NOTE:
Rcjccts rctaincd threc wceks Pulps rctoincd three months unlcss otherwisc arranged.
GOLD
Ounces per Ton
Grams
letric Tor per
SILVER
Ounces per Ton
Grams
letric Tor per
- cu
Percent
0.19 0.13 0.10 0.04 0.03 0.08 0.08 0.07
0.07 0.12 0.08 0 -05 0.03 0.07- 0.11 0.06
0.19 0.10 0.06 0.10
0.08 0.09 0.16 0.12
0.09 *
-
MOS,
Percent
0.027 0.005 0.003 0.002 :0.002 0.002 0.002 0.002
0.003 0.007 0.008 0.002 0,002 0.003 0.004 0.001
0.002 0.015 0.005 0.023
0,003 0.002 0.007 0.002
0.002 w203-
Percent Percent Percent Percent Percent
To: - Tec' 'xplorations Ltd .
,DAGE?Uo. 2
MARKED
REPORT N O . 2 - 2 -2.25- BONDAR-CLEGG & COMPANY LTD. DATE: June 5. 1979
GOLD SILVER
Ounces Grams Ounces Grams per Ton per per Ton per
Metric Ton Mctric Toi
CERTIFICATE OF ASSAY
Percent
core berebg rerfifg that the following are the results of assays made by us upon the herein described ........................................................ samples.
Percent
0 . 1 0
f 18175 117.>-- ryo. 18176 18177
.=0.002
-
18178 . 18179 I~?>*--IsD. 18180 18181 18182 If<,O-t&
cc Mr. B. Lova g 1 NOTE:
Rcjccls retained lhrec wccks Pulps retnined three months unless otherwise arranged.
c u - Percent
0.16 0.09 0.11 0.17 0.06 0.09
-
0.10 EiT
. .
0.06 - 0.04 0.07 0.06 0.08
0.03 0.09 0.10 0.04
NOS * Percent
0.002 4 . 0 0 2
0.002 0.002
<0.002 4 . 0 0 2 4 . 0 0 2 4.002
0.002 <o .002 0.012
4 . 0 0 2 4 . 0 0 2 4 . 0 0 2 4 . 0 0 2
4 . 0 0 2 4 . 0 0 2 4.002 <0.002
--
- Percent -
APPENDIX IV
Drill Cont rac t
Connors Drilling Olrlslo" 01
sor vaiiey ~ e r u u i c e Serr,ces ~ f d Suite m5. 1201 West Pender Streel. Vancouver. B C. V6E 2V2 * 16061 683.2222
AGREEMENT
T h i s A G R E E M E N T made t h i s 2 1 s t day of March 1 9 7 9 .
BETIIEEN: TECK CORPORATION 1199 West Has t ings S t r e e t Vancouver, B . C . V6E 2K5
( h e r e i n a f t e r r e f e r r e d t o a s t h e "COMPANY")
D i v i s i o n of Bow Va l l ey Resource S e r v i c e s L td . # 2 0 5 - 1 2 0 1 West Pender S t r e e t
AND : COXNORS DRILLING
Vancouver, B . C . V6E 2 V 2
( h e r e i n a f t e r r e f e r r e d t o a s t h e "CONTRACTOR")
WHEREAS t h e COMPANY hereby r e q u e s t s t h a t t h e CONTRACTOR
c a r r y o u t c e r t a i n s u r f a c e diamond d r i l l i n g and o t h e r s e r v i c e s , on
t h e COMPANY'S p r o p e r t y , n e a r Campbell R i v e r , B . C .
AND WHEREAS t h e CONTRACTOR hereby a g r e e s t o per form s a i d
diamond d r i l l i n g and o t h e r s e r v i c e s r e q u e s t e d , under t h e t e rms and
c o n d i t i o n s h e r e i n a f t e r c o n t a i n e d .
1. SCOPE OF WORK
The work i s t o c o n s i s t of s e r i e s o f t h r e e d r i l l h o l e s , d r i l l e d a t l o c a t i o n s s p e c i f i e d by t h e COMPANY. A t o t a l minimum meterage o f 4 5 0 me te r s s h a l l be d r i l l e d , b u t t o t a l meterage may be ex tended beyond t h a t amount, by mutual c o n s e n t . Holes s h a l l be d r i l l e d w i t h NQ t o o l s producing 4 7 mm d i a m e t e r c o r e , a s f a r a s i s r easonab ly p r a c t i c a l . Maximum dep th of any h o l e s h a l l n o t exceed 250 me te r s .
2 . COMMENCEMENT AND EXECUTION OF WORK
Work s h a l l be commenced: d u r i n g t h e f i r s t week o f A p r i l 1 9 7 9 . Work w i l l p roceed wi th one o r two t e n hour s h i f t s p e r day, seven days a week, o r a s n e a r t h a t s chedu le a s can be ma in ta ined .
Cont 'd ....
- 2 -
TJIE COKTRAC'fOR H i R E R Y COVENANTS A N D AGREES -. . . .- - : -. -
To p rov ide a l l of t h e r e q u i r e d d r i l l i n g machinery and a s s o c i a t e d t o o l s i n c l u d i n g , b u t n o t l i m i t e d t o : one BBS-1 diamond d r i l l r i g , pump, r o d s , c a s i n g , diamond p r o d u c t s , f u e l , l u b r i c a n t s , camp, e t c .
That d r i l l i n g crews w i l l f o l low good d r i l l i n g p r a c t i c e and s h a l l u s e due c a r e and d i l i g e n c e a s s h a l l enab le them t o r e c o v e r a s h igh a pe rcen tage of c o r e as t h e n a t u r e o f t h e ground b e i n g d r i l l e d s h a l l pe rmi t . A l l c o r e s s h a l l be d e l i v e r e d t o t h e COMPANY, i n boxes provided by t h e COMPANY a t t h e d r i l l s i t e s .
That i t s h a l l be r e s p o n s i b l e f o r , and w i l l pay prompt ly a l l c o s t s and cha rges , i n c u r r e d by i t s e l f f o r l a b o r , machinery, t o o l s and s u p p l i e s used i n comple t ing t h e work hereunder s o t h a t no l i e n o r o t h e r such charge r e l a t i v e t o t h e CONTRACTOR, may be r e g i s t e r e d a g a i n s t t h e COMPANY o r t h e p r o p e r t y . The CONTRACTOR s h a l l b e r e s p o n s i b l e f o r t h e payment of a l l assessments f o r Workmen's Compensation, Holiday Pay, Canada Pens ion , Unemployment Insu rance , S a l e s Tax, o r o t h e r such a p p l i c a b l e charges r e l a t i v e t o i t s own l a b o r and s u p p l i e s purchased .
The CONTRACTOR s h a l l , a t a l l t imes e n f o r c e s t r i c t d i s c i p l i n e and m a i n t a i n good o r d e r among i t s employees and s h a l l n o t r e t a i n on t h e work any u n f i t pe r son or anyone n o t s k i l l e d i n t h e work a s s i g n e d t o him. Any employee who i s o b j e c t i o n a b l e o r u n s a t i s - f a c t o r y t o t h e COMPANY s h a l l be removed from t h e work and r e p l a c e d by an employee s a t i s f a c t o r y t o t h e COMPANY.
The CONTRACTOR s h a l l keep h i s d r i l l s i t e s f r e e from was te and r u b b i s h , and a t t h e comple t ion o f h i s work he s h a l l l e a v e a l l d r i l l s i t es a s c l e a n a s p o s s i b l e .
The CONTRACTOR o r i t s p e r s o n n e l s h a l l n o t d i v u l g e any i n f o r m a t i o n concern ing d r i l l i n g r e s u l t s , o r pe rmi t a c c e s s t o , o r examinat ion o f t h e d r i l l c o r e by any pe r son n o t s p e c i f i c a l l y a u t h o r i z e d by t h e COMPANY.
THE COMPANY HEREBY AGREES:
Should c a v i t i e s , l o o s e o r cav ing ground o r e x c e s s i v e wa te r f lows b e encountered i n a h o l e s o t h a t f u r t h e r d r i l l i n g i n t h a t h o l e i s deemed i m p r a c t i c a b l e , t h a t h o l e may by mutual c o n s e n t , be abandoned, and, t h e CONTRACTOR be p a i d a t r a t e s s o s p e c i f i e d h e r e i n f o r a l l f o o t a g e completed i n t h a t h o l e . However, shou ld t h e COMPANY r e q u e s t t h a t f u r t h e r work be c a r r i e d o u t i n t h e h o l e beyond t h i s p o i n t , t h e n t h e CONTRACTOR s h a l l c o n t i n u e work i n t h e h o l e b u t such c o n t i n u i n g work s h a l l be a t FIELD COST r a t e s .
That it w i l l p r o v i d e a c c e s s roads t o a s n e a r a l l d r i l l s i t e s a s is p r a c t i c a l , and w i l l b e r e s p o n s i b l e f o r t h e c o s t o f p r e p a r i n g d r i l l s i t e s s u i t a b l e f o r s e t - u p .
Cont 'd ...
- 3 '
! !
I ! i
I ~ ,
! ! i ! ! / /
H e l i c o p t e r s e r v i c e s r e q u i r e d on t h e p r o p e r t y t o move CONTRACTOR'S equipment and crew, where n e c e s s a r y , w i l l be s u p p l i e d by t h e COMPANY a t no c o s t t o t h e CONTRACTOR.
The COMPANY s h a l l p r o v i d e , a t no c o s t t o t h e CONTRACTOR, a l l r i g h t s o f way o f i n g r e s s and e g r e s s t o a l l l a n d s t h a t may be r e q u i r e d t o e n a b l e t h e CONTRACTOR t o c a r r y o u t t h e work a s s p e c i f i e d . The CONTRACTOR s h a l l b e p e r m i t t e d t o c u t and f e l l any t imber on t h e COMPANY'S p r o p e r t y a s may be r e q u i r e d i n t h e c o u r s e o f t h e work he reunde r , and t h e COMPANY s h a l l indemnify and save harmless t h e CONTRACTOR from any assessment f o r stumpage o r o t h e r charges o f eve ry k i n d and n a t u r e .
THE COMPANY HEREBY AGREES t o pay t h e CONTRACTOR f o r f o o t a g e d r i l l e d and o t h e r s e r v i c e s performed a s f o l l o w s :
M o b i l i z a t i o n and d e m o b i l i z a t i o n : f o r CONTRACTOR'S equipment and crew, w i l l b e lump sum $1,500. T r a n s p o r t a t i o n f o r CONTRACTOR'S equipment from Vancouver t o t h e i s l a n d and r e t u r n , by ba rge , w i l l be f o r t h e COMPANY'S account .
D r i l l i n g : NQ S i z e 0 t o 1 5 0 me te r s $ 7 2 . 0 0 a meter
150 t o 250 me te r s $ 7 7 . 0 0 a me te r
Overburden p e n e t r a t i o n and s e t t i n g c a s i n g : from 0 t o 1 5 meters a t $ 7 2 . 0 0 a m e t e r , beyond 1 5 me te r s a t F i e l d Cos t , i f t h e c o s t of p e n e t r a t i o n exceeds $72.00 a meter.
Reaming, c a s i n g h o l e i n rock , cementing and d r i l l i n g cement, i f and when r e q u i r e d , w i l l be a t F i e l d Cos t .
D i p - t e s t i n g , or d e l a y time, o r o t h e r time d u r i n g which t h e CONTRACTOR'S crews a r e per forming s e r v i c e s , f o r t h e COMPANY n o t o t h e r w i s e covered h e r e i n : a t F i e l d Cost .
Water supp ly : CONTRACTOR w i l l supp ly 1 , 0 0 0 m e t e r s o f w a t e r l i n e , w i t h pump c a p a b l e o f 150 me te r l i f t . I n s t a l l a t i o n and removal of w a t e r l i n e s w i l l be a t F i e l d Cost .
Moving of d r i l l and equipment ( i n c l u d i n g t e a r i n g down and s e t t i n g up) : from t h e b a r g e d i s c h a r g e p o i n t t o t h e f i r s t d r i l l h o l e , between d r i l l h o l e s , and r e t u r n t o t h e ba rge l o a d i n g p o i n t , w i l l be a t F i e l d Cost . The d r i l l w i l l b e mounted on a t r a i l e r , and towed w i t h a 4x4 t r u c k t o t h e f i r s t d r i l l s i t e . Subsequent moves w i l l be by h e l i c o p t e r
D r i l l i n g mud and a d d i t i v e s i f r e q u i r e d : w i l l be s u p p l i e d by t h e CONTRACTOR, a t c o s t p l u s f r e i g h t , p l u s 1 5 % .
Truck r e n t a l : CONTRACTOR w i l l supply a f o u r wheel d r i v e p ick-up t r u c k a s a s e r v i c e v e h i c l e f o r i t s crew, a t no c o s t t o t h e COMPANY.
Core boxes: t h e CONTRACTOR w i l l supply NQ c o r e boxes and l i d s , f o r c o s t p l u s f r e i g h t , p l u s 1 5 % .
Cont 'd ....
- 4 -
Camp: t h e CONTRACTOR w i l l supply camp accommodations f o r i t s crew. I n s t a l l a t i o n and removal of camp w i l l be f o r t h e CONTRACTOR'S account .
T rave l o r walk ing t ime: from camp t o d r i l l s i t e s , i n excess of one- h a l f hour p e r man p e r day, w i l l b e f o r t h e COMPANY'S account , a t F i e l d Cost Labor r a t e s .
Communications: t h e CONTRACTOR w i l l p r o v i d e a r a d i o - t e l e p h o n e i n camp, a t no e x t r a c o s t t o t h e COMPANY.
Standby: f o r CONTRACTOR'S equipment and crew, w h i l e on t h e COMPANY'S b e h a l f , w i l l be a t 8 0 % of F i e l d Cos t r a t e s , and w i l l be l i m i t e d t o e i g h t hour s p e r man p e r day, and e i g h t hour s p e r day equipment r e n t a l .
F i e l d c o s t s , where a p p l i c a b l e , s h a l l be : F i e l d Cost Labor a t $ 2 0 . 0 0 p e r man hour , d r i l l and equipment r e n t a l a t $ 1 5 . 0 0 p e r s h i f t hour , p l u s equipment , t o o l s and s u p p l i e s l o s t o r consumed on t h e F i e l d Cost p o r t i o n o f t h e work, a t c o s t p l u s f r e i g h t , p l u s 1 5 % .
INSURANCE AND GENERAL
A t a l l t ime d u r i n g t h e term of t h i s Agreement, CONTRACTOR a g r e e s t o c a r r y i n s u r a n c e of t y p e s and i n minimum amounts a s fo l lows :
Comprehensive General L i a b i l i t y i n s u r a n c e w i t h l i m i t s of $ 1 , 0 0 0 , 0 0 0 i n c l u s i v e , f o r b o d i l y i n j u r y and p r o p e r t y damage.
Employer 's L i a b i l f o r b o d i l y i n j u r y
Automobile Liab il f o r b o d i l y i n j u r y
Adequate Worker 's
t y i n s u r a n c e w i t h l i m i t s of $1,000,000 i n c l u s i v e , and p r o p e r t y damage.
t y i n s u r a n c e w i t h l i m i t s o f $ 1 , 0 0 0 , 0 0 0 i n c l u s i v e , and p r o p e r t y damage.
Compensation I n s u r a n c e cove r ing a l l CONTRACTOR'S employees working under t h i s Agreement which complies w i t h P r o v i n c i a l , T e r r i t o r i a l o r Fede ra l laws and r e g u l a t i o n s a p p l i c a b l e t o t h i s Agreement.
Other i n s u r a n c e as r e q u i r e d by t h e COMPANY.
A l l such i n s u r a n c e s h a l l be c a r r i e d i n company o r companies a c c e p t a b l e t o COMPANY and s h a l l be ma in ta ined i n f u l l f o r c e and e f f e c t d u r i n g t h e terms o f t h e Agreement and s h a l l n o t be can- c e l l e d , reduced i n l i m i t o r coverage w i t h o u t t e n ( 1 0 ) day p r i o r w r i t t e n n o t i c e having been f u r n i s h e d t o COMPANY, CONTRACTOR a g r e e s t o have i t s i n s u r a n c e c a r r i e r and/or a g e n t f u r n i s h COMPANY w i t h a c e r t i f i c a t e o r c e r t i f i c a t e s ev idenc ing i n s u r a n c e coverage i n accordance wi th t h e above r e q u i r e m e n t s .
I n t h e e v e n t CONTRACTOR i s a s e l f - i n s u r e r and COMPANY has con- s e n t e d t o CONTRACTOR be ing a s e l f - i n s u r e r a s t o any one o r more o f t h e r i s k s as t o which coverage i s h e r e i n r e q u i r e d , ev idence of such consen t must be i n w r i t i n g and approved by a r e p r e s e n t a t i v e of COMPANY a u t h o r i z e d t o e n t e r i n t o such consen t agreement.
Cont 'd ....
. .. - 5 -
Each p a r t y s h a l l ' f u r n i s h t o t h e o t h e r , on w r i t t e n r e q u e s t , c o p i e s o f a l l i t s i n s u r a n c e p o l i c i e s r e l a t i n g t o i t s o p e r a t i o n s hereunder and, i f charged t o t h e o t h e r p a r t y , premium r e c e i p t s i n r e s p e c t t h e r e o f .
A l l i n s u r a n c e t a k e n o u t by CONTRACTOR hereunder and any i n s u r a n c e t aken o u t by COMPANY r e l a t i n g t o t h i s Agreement o r any r e l a t e d s u b c o n t r a c t s h a l l b e f o r t h e b e n e f i t o f bo th p a r t i e s and s h a l l be endorsed t o p r o v i d e t h a t t h e u n d e r w r i t e r s t h e r e o f waiver t h e i r r i g h t s o f r e c o u r s e a g a i n s t t h e o t h e r p a r t y h e r e t o and a g a i n s t a l l p e r s o n s f o r whom such o t h e r p a r t y i s r e s p o n s i b l e i n connec t ion w i t h t h i s Agreement. Each p a r t y s h a l l indemnify and ho ld t h e o t h e r ha rmless from any consequences o f f a i l u r e t o o b t a i n such waiver ( 5 ) .
b) The CONTRACTOR s h a l l n o t be h e l d l i a b l e f o r any l o s s o r damage s u f f e r e d by r e a s o n o f any cause beyond i t s a c t i v e c o n t r o l such a s r i o t s , s t r i k e s , l o c k o u t s , Acts o f God, o r f a i l u r e of t r a n s p o r t a t i o n .
c ) Under t h e f o r e g o i n g terms and c o n d i t i o n s t h e CONTRACTOR does n o t g u a r a n t e e t o d r i l l any h o l e t o any s p e c i f i e d dep th . The CONTRACTOR w i l l however, expend eve ry r e a s o n a b l e e f f o r t t o complete a l l h o l e s t o t h e s a t i s f a c t i o n o f t h e COMPANY.
d) The CONTRACTOR s h a l l i n v o i c e t h e COMPANY semi-monthly f o r f o o t a g e d r i l l e d and o t h e r s e r v i c e s performed. Such i n v o i c e s s h a l l be due and payab le w i t h i n 30 days o f t h e i n v o i c e d a t e .
I N WITNESS WHEREOF THE COMPANY and t h e CONTRACTOR s e t
t h e i r hands t h i s day o f 197'.
TECK CORPORATION
Y
CONNORS DRILLING - D i v i s i o n o f Bow V a l l e y Resource
S e r v i c e s Ltd.
APPENDIX V
COST STATEVENT
STATEMENT OF COSTS
Attached are d r i l l i n g c o n t r a c t charges t o Teck Corpora t ion
from Connors D r i l l i n g f o r f o o t a g e , f i e l d c o s t s , m a t e r i a l s
u sed , etc. f o r d r i l l i n g of h o l e s R79-1, R79-2, R79-3 and
R79-4, desc r ibed i n t h i s r e p o r t . These c o s t s a r e d i r e c t
d r i l l i n g c o s t s , and t o t a l $72,496.87. I n a d d i t i o n t o t h e
d i r e c t d r i l l i n g c o s t s are h e l i c o p t e r r e n t a l charges f o r
d r i l l moves, assay c o s t s , c o s t s of program s u p e r v i s i o n ,
c o r e s p l i t t i n g , camp c o s t s and t r a n s p o r t a t i o n , e tc .
are a p p l i c a b l e t o assessment work.
I n p r e p a r a t i o n of t h e a f f i d a v i t of Statement of Exp
which
o r a t i o n
and Development an approximate c o n s e r v a t i v e f i g u r e of $65,000
was es t ima ted as t h e d r i l l i n g c o s t due t o t h e on-going program
and n a t u r a l de l ay i n b i l l i n g of c o s t s . T h i s f i g u r e is
s u b s t a n t i a l l y lower than t h e a c t u a l i n c u r r e d costs and
t h e r e f o r e no f u r t h e r documentation of c o s t s o t h e r t han t h e
d i r e c t d r i l l i n g charges need be provided .
A . I . Betmanis. P.Eng. - Ju ly 23 , 1979
205 - 1201 WEST PENDER STREET, VANCOUVER, B.C. CANADA V6E 2V2 AREA CODE 604/683.2222
Con n ors Dri I li ng tI>n,*a d Bor v*nq - ynls" Ll*
Vancouver, B.C. V6E 2K5
SURFdcE DLWND DRILLING NEAR-CAWBELLRIVER, B.C. APRIL 18 - 30, 1979
&1DBILIZATIoN - DDDBILIZATION- (Lump Sum)
FOOTAGE FEE D.D. Hole rR79-1
#R79-2
FIELD COST WORK TE Sra
18/79 Day 19
20
23 24 25 26 Day 27 28 29
11
11
I t
I1
*' M i g h t t l
t l
1 )
11
11
11
I1 I t
1,500.00
0.OOm - "1.83m 1.83m e 72.00 131.76 1.831~ - 136.55m i~4.72m e 72.00 9,699.84 0.OOm - 3.35m 3.35m @ 72.00 241.20 3.353 - 45.11m 41.761~ e 72.00 3,006.72 13,079.52
181.-66n
6 3 6 24 1% 3
2 1 2 1 6 3 6 3
36 12 4s 12 30 8 10 4
- (2>-lc--.3 0 191 5%
BL4RKS Edovinrr eauiument t o d r i l l s i t e 2 men-mo&ni d r i l l 6 supplies 4 men set up drill, etc. Ream bedrock 6 - 9' Ream cave 12 - 1s'
10 - 20' Ream & wash hole in fault zone Tear dawn for move Dismantle d r i l l f o r move Move by helicopter Re-assemble d r i l l & set-up Install 1,400' waterline 1 man hauling equipment from barge
I t
Total man hours Total drill hours
191 @ 20.00 3,820.00 nl_
6% @ 15.bO 982.50 4,802.50 .:. .h. . -. .
- . .~. .. ~
205 ~ 1201 WEST PENDER STREET, VANCOUVER, B.C. CANADA V6E 2V2 AREA CODE 604/683 - 2222
Job 21-905 - T e d Corporation - INVOICE NO: 9333 1199 West Hastings Street DATE: Iky 10, 1979 Vancower, B.C. v5s 2x5 -
- 2 -
30 Day 1 *I N i g h t 1
R hours @ 20.00
SUPPLES LHT I N HO-LE fiR79-1 ,
4 - pieces XtY 2' cas5.i~~ @ 26.50 1 - &ily NN CZIS~II~ S ~ O ; 812524
Tax 1.7%
Plus 15%
FUEL IWCHASEU FOR YouIl ACCOL'M: Gulf 0- 11 Luu . . tedh voice 9021m62 (copy attached)
110.03
106.00 269.00
3'15.(10 6.38 --Ern
57.21 438.59
162.09
MUD SUPPLIES, 30XES &XI FEIQIT Thiessen Equipment Invoice a4960 (copy attached) 92.51
I1 393.35 *I 173.65 I1 301.60
96.10 51.00 14.60
1.125.82
I 1 I I Invoice #4901 1 1
I1 I1 Invoice 84902 I1
E.G. Ylhalley & Son Invoice #8853 I 1
Langley Freight Lines Invoice #SSlO 11 II
Charger Transport Invoice a88168 I 1
11 11 I f I I I t If Invoice bi8870
Plus 15%
*
I
21,330.84 163.32
205.1201 WEST PENDER STREET, VANCOUVER, B.C. CANADA V6E 2V2 AREA CODE 604/683 - 2222
Job 21-905 . Teck Corporation INVOICE NO: 9370 1199 West Hastings Street DATE: k Y 24, 1979 Vancouver, B.C. V6E 2W
WkE DIAE.XN0 DRILLING NEAR’C&JPBELL RIVER, B.C. bAY 1 - 15, 1979 ’
m a FEE . . Hole m79-2 45.11m -‘15O.OOm 104.8% @ 72.00 7,552.08 150.00m - 206.65m 56.6Sm @ 77.00 4.362.05
82-79-3 0.0Om - 150.0Om 150.OGm @ 72.00 10; 800.00 150.0Om - 200.56~ 50.55111 @ 77.00 3,893.12 26,607.25
362.1on
l1 Night 7 Dar 8 9 10 15 Night
11
11
I t
I1 I t
4 16 54 60 48 10 2
14 m
‘DRILL HRS. 1
Total man hours 210 e 20.00 Total drill hours 60 @ 15.60
.. . .
2 8
12 12 12 5
1 7 m
”
&pare for move Pul l rods G t ear down Ready t o move by helicopter &bving to hole 879-3 Re-assemble d r i l l & set-up Finish sett ing up & i n s t a l l waterline Dip test @ 600’ Prepare for move
4,200.00 900.00 5,100.00
& - 9370
205.1201 WEST PENDER STREET, VANCOUVER, B.C. CANADA V6E 2V2 AREA CODE 604/683 - 2222
Job 21-905 . TecK Co rpontion INVOICE NO: 9370 1199 West Hastings Street DATE: May 24, 1979 Vancouver, B.C. V6E 2K5 -
. - 2 -
#12525 269.00 82.10
(Hole tlR79-3) May 16/79 1 - only hVl casing shoe 212526
1 - piece hv# 10' casing 269 -00 82.10 702.26
Tax 1.78 11.94
15% handling 821.2t
FREIGHT ox CORE BOXES Charger Transport Invoice #BSi70 (copy attached) 9.30
15% handling 1.40 10.7(
mm OIL urn b Y 16f 79 1 - only 45 galon d m 95 * 74
4% P.S.T. 3.83 99.57
15% handling 14.94 114.5:
.I. ..
Tnh 71-9Oq - Teck Corporation INVOICE NO: 9427 1199 West Hastings Street DATE: June 11, 1979 Vancawer,B .C. V6E 2K5
SURFACE DJAbDiW DRILLIHG NEAR7CX4S?ZL RIVER, B.C. M U 16 - 24, 1979
Footage Fee D.D. HOle i# R 79-4 Om - 15Om 15Om @ 72.00 10,800.00
15Om - 156.36111 6.36111 @ 77.00 489.72 11,289.72 156.36111
i
Field Cost Work Date shift May 16/79 Day
17/79 'I
18/79 " 8 1 I 1
8 1 Night 'I 8 1
20/79 Day 24/79 'I
24/79 *'
Idan hours 32 40 18 4 3 2 5 2 8
114 -
Dri l l hours Renarks 8
10 5 Finish se t t ing up 2 Install Waterline 1% 1 2% Reaning cave 1 Dip test @ 400' - 4 35
Tear Down 6 Ready t o mve Move by chopper 6 re-assemble d r i l l
Ream casing 11' - 20' Change water supply to gravity
Tear down for move
Total b h Hours 114 @ 20.00 2,280.00 Total D r i l l Hours 35 @ 15-00 525.00 2,805.00
9427
205 - 1201 WEST PENDER STREET, VANCOUVER, B.C. CANADA V6E 2V2 AREA CODE 604/683 ~ 2222
Cmnars Drilling crnwm! n-v&i~n-rr. s-kesw~
Job 21-905 * T e d Corporatiox INVOICE N O 9427
1199 West Hastings Street DATE: June 11, 1979 Vancouver, B.C. V6E 2K5
Casing and Shoe b f t in Hole R R79-4 1 - only NW Casing shoe # 12529 1 - piece IW 10' casing
269.00 82.10
351.10 1.7% P.S.T. 5.97
15% Handling 357.07 53.56
Barge Transportation Charges . Coast Ferr ies Invoice # 592251 (Copy attached)
Core Boxus and Frei,ght Charges (Copies attached) B.G. Whallejj & Sons Invoice t? 8917
I( # 8886 Coast Ferr ies *' # 591955 Charger Transport: * I 11 3300
Route of the Haida
I 1 11 11
# 88172 # 435967
I 1 11
i54 Handling
Kutwell O i l and hhp'cha (Copig attached) Imperial O i l Invoice 14 580355
# 016166 It 11 11
154 Handling
784.99 168.17 98.78 5.58
12.93 15.05
1,085.47 162.82
425.57 53.14
478.71 71.81
410.63
1,728.15
1,248 -29
18,032.31 - :. a
