ASSESSMENT REPORT

on

GEOCHEMICAL WORK ON THE FOLLOWING CLAINS

HANNA 1 HANNA 2

Located

27 AIR-KILOMETERS NORTH-NORTHWEST OF r!.:~.

ALICE ARM, BRITISH COLUMBIA j

LATITUDE 55"42' - LONGITUDE 129"38' :

N.T.S. 103P/12E

SKEENA MINING DIVISION

NORTHWESTERN BRITISH COLUMBIA

FIELD WORK BETWEEN OCTOBER 27 AND OCTOBER 31, 1981

on behalf of

HANS FOERSTER

Vancouver, 8. C.

April 6, 1982

REPORT BY: W.D. Groves, P.Eng. 15.2 - 890 West Pender Vancouver, B. C.

TABLE OF CONTENTS

INTRODUCTION

A. Property - Location, Access and Physiography

B. Status of Property

C. History

D. References

E. Summary of Work Done

TECHNICAL DATA AND INTERPRETATION

A. Field Procedure and Laboratory Analysis '

B. Stream Sediment Survey

C. Conanents on Geology, Geochemistry

CONCLUSIONS

APPENDICES

I Work Cost Statement

II Certificate

III Assay Certificates

ILLUSTRATIONS

Fig. 1 -

Fig. 2 -

Fig. 3 -

Fig. 4 -

Fig. 5 -

Fig. 6 -

Fig. 7 -

Fig. 8 -

Location Map

Claims Map

Stream Sediment Survey - Sample Locations

Stream Sediment Survey - MO and Cu (ppm)

Stream Sediment Survey - Pb and Zn (ppm)

Stream Sediment Survey - Mn and Ba (ppm)

Stream Sediment Survey - Co, As and W (ppm)

Stream Sediment Survey - Ag and Au (ppm)

3

4

6

a

Report Body

Report Body

Map Pocket

Map Pocket

Map Pocket

Map Pocket

Map Pocket

Map Pocket

-l-

INTRODUCTION

A. Property - Location, Access and Physiography

The property is situated at the headwaters of O'Neill River

approximately 27 air-kilometers north-northwest of Alice Arm.

Access is by helicopter from Kitsault (six kilometers south of

Alice Arm) or, alternatively, from Stewart, sane 30 kilometers to

the northwest. A road is presently under construction which will

link Kitsault to the B.C. highways system.

Location is shown on Fig. 1.

Elevations range from 700 meters to 1100 meters over the

Hanna 1 and Hanna 2 claim area. Topography is sub-alpine/glacial

with recent cross-cutting stream courses cutting small slot-canyons.

Vegetation consists of alpine type meadows and patches of balsam

and spruce forest.

B. Status of Property

The Hanna 1 and 2 mineral claims are presently owned by

H. Foerster of 4301 - 2390 West 1st Avenue, Vancouver. Relevant

claim information is summarized below:

Claim Name Record No.

Hanna 1 2841 (2)

Hanna 2 2842 (2)

No. of Units

20

20

The claims are situated in the Skeena Mining Division. They

are pictorially represented in Fig. 2.

-2-

C. History

This area received attention in the 1920's in the aftermath of

discoveries in the Kitsault River Valley to the east (e.g., Dolly

Varden and Torbrit silver mines). However, remote location and

snow cover hampered prospecting efforts. Two area properties, the

Vimy Ridge Group and Carpenter's claims, were actively explored

during this period. The latter, Carpenter's claims, should be some-

where in the northwetsern portion of the Hanna 2 claim, according

to an old report (Ref. 1). Free gold in quartz-sulfide cross veins

was reported as occurring on this old property.

Apparently the area underwent further exploration in the 1960's

with limited results (Ref. 3). Current interest in the area was

sparked by high geochemical stream sediment values obtained during

a B.C. Government survey (Ref. 4).

0. References

1. Minister of Mines, B.C., Annual Rep't 1923, p. N52-53.

2. Preliminary Map No. 8, Geological Compilation of the

Stewart, Anyox, Alice Arm and Terrance Areas, B.C. Dep't.

of Mines & Petroleum Resources.

3. E.W. Grove, Ph.D., P.Eng., 1981. Private Report on Hanna

Property.

4. Regional Stream Sediment Survey, B.C. 1978: N.T.S. 103P

and Part of 1030, RGS - 2 - 1978.

-3-

E. Summary of Work Done

The author and Mr. Bill Banerd (assistant) flew into the

property by helicopter from the construction camp at the terminus

of the new Kitsault access road on October 27, 1981. Thereafter

stream sediment samples representative of most of the drainage

area in the Hanna 1 and 2 claim blocks were collected, 33 altogether.

This work was hampered by severe weather conditions on the third and

fourth day in the form of an unexpected snowstorm. The author and

Mr. Banerd were flown out on October 31, 1981.

TECHNICAL DATA AND INTERPRETATION

A. Field Procedure and Laboratory Analysis

Stream sediment samples were taken by screening fine silt fmm

the middle of the stream or creek through a fine nylon mesh into a

plastic bowl. Contents of the bowl were then washed into a marked

standard kraft bag.

Acme Analytical Laboratories Ltd., 852 East Hastings Street,

Vancouver, carried out all of the test work. Standard sample

preparation consisted of drying to 6O'C and then sieving to -80 mesh.

Parts per million content of all elements (except for gold and

barium) was determined by I.C.P. (Inductively Coupled Argon Plasma).

Prior to the I.C.P. analysis, each sample (500 grams) was digested

with 3 ml. of 3:1:3 nitric acid to hydrochloric acid to water at

90°C for one hour, then diluted to 10 mls. with water.

-4-

Gold content in parts per million was determined by subjecting

ten gram samples to Fire Assay preconcentration techniques to

produce silver beads: the silver beads were then dissolved and gold

content of the resulting solution measured by atomic absorption.

This method is apparently sensitive to 0.005 ppm.

Geochemical analysis for barium consisted of digesting 0.1 gram

samples with hot NaOH and EDTA solution followed by atomic abosorp-

tion to determine ppm content.

B. Stream Sediment Survey

Results of assays on the 33 "KSH" series stream sediment

samples are plotted on Figs. 4 - 8. Stream sample locations are

presented on Fig. 3. Individual values for the eleven elements

tested are tabulated in Appendix 4 (the Geochemical Assay Certificate).

Elements analysed for are: molybdenum and copper (Fig. 4); lead and

zinc (Fig. 5); manganese and barium (Fig. 6); cobalt, arsenic and

tungsten (Fig. 7); and, gold and silver (Fig. 8).

Samples from Bonanza and Hidden Creeks (these creek names were

arbitrarily assigned by the author for ease in reference) form the

high end of the sample set (in terms of multi-element ppm readings).

Determination of anomalous levels for the elements measured is best

accomplished by incorporation of the results of the comprehensive

1978 Government Stream Sediment Survey over map sheet #103P

(Ref. 4). Computations performed on the large data set obtained

during the 1978 Government survey show the following 99th percentile

limits for samples taken in areas where the host rocks were

predominantly siltstones (oasis the case with the Hanna 1 and 2

claims).

-5-

1978 Gov't Survey 99th No. of Anomalous KSH Element Percentile Level (ppm) Samples (on this basis1

Moly ;;vyr

Zinc Silver Cobalt Manganese Arsenic Tungsten

1:: i 3:: 9

1.2 11 52

14,000 125 i

14

Since it is normal to define the top 2.5% of a population as

anomalous, reference to the 1978 99th percentile data can be consi-

dered a very conservative approach to estimating the threshhold level.

Even on this strict basis, a third of the KSH samples taken, eleven to

be exact, show anomalous levels in silver. As the chart shows, several

copper and zinc anomalies were also detected, as were a lesser number

of moly and arsenic anomalies. Dropping the 'threshhold' level limit

to coincide with the 1978 Goverment Survey 99th percentile limits

would expand the anomalous moly and arsenic class to roughly the same

size as that for silver, copper and zinc.

Reference values for barium and gold are not available because

they were not analysed for in the 1978 Government Survey. However,

values in excess of 0.020 ppm are generally considered anomalous

for gold: on this basis, 8 of the KSH samples are anomalous, with

values ranging between .020 and .060 ppm. As for barium, a quick

glance at the data is enough to indicate two definite anomalies:

KSH - 22 (at 3,000 ppm) and KSH - 27 (3,500 ppm) - both of these samples are significantly higher than any other measurement obtained

for barium over the surveyed area.

Spatially, the anomalous population divides into two groups:

KSH 8 - 12 along Bonanza Creek and KSH 28 - 31 along upper Hidden

Creek. The Bonanza Creek group shows progressively higher values,

-6-

C. Comments on Geology, Geochemistry

The highest (most anomalous) sample being the one taken furthest

upstream (KSH - 12). The Hidden Creek group's most anomalous sample

(KSH - 29) is bracketed both upstream and downstream by values which

are a little lower. Both groups show anomalous values more or less

in the same range except that zinc values are appreciably higher

in the Hidden Creek group. Most significant difference is that the

Bonanza Creek copper, zinc, gold and silver anomalies are also

accompanied by high (and also anomalous) values in arsenic.

The two barium highs (which are also associated with anomalous

silver) are unusual in that they occur at different points along

"N30OW" creek, yet the intervening sample, KSH - 24, carries a

barium content of only l/6 of the two highs it separates. Also,

there does not seem to be any correlation between barium levels and

the two major anomalous groups on Bonanza and Hidden Creeks.

Cobalt, manganese, and tungsten values over the surveyed area

are relatively uninteresting.

The Hanna claims sit astride the eastern contact of a coast-

range age stock (or batholith prominence) with the relatively

flat-lying Bowser argillites. The stock is a grey granodiorite.

The eastern margin of the stock is a contact facies, greenish-grey

in colour, due to epidote and chloritic alteration with porphyro-

blastic feldspar development.. Grain size decreases gradually over

a hundred meters to very fine-grained at the stock-sediment contact.

A 100 meter thick band of rusty-weathering hornfels marks the

sediment side of the contact. It is suspected that the contact

angle is not steep but rather moderate. East of the homfels band,

an N30°W flowing creek in a straight canyon shows more of the contact

relations: the stock margin is wedging and finger stoping into

bedding and cleavage fractures in the sediments. A "front" of quartz

-7-

veins, wedge and ribbon quartz carbonate veins and fine, light

green margin-phase diorite dykes and sills criss-cross the creek

bed. The quartz veining seems to be the forerunner of the diorite

front. The geometry of the dyke-quartz vein system penetrates and

outreaches the more coherent thermal (hornfels) front wedging along

a net of minor faults in the sediments near the contact.

It is hypothesized that the geochemical stream sediment

results indicate three distinct but somewhat spatially superimposed

sets of mineralization: a "front" of copper, gold, moly, etc. (plus

silicification) associated with the hornfels front, and a lower

temperature lead, zinc, iron, silver (some gold) sulphite front

migrating along minor faults in the sediments, and a barite-

carbonate-silver quartz vein network also near the contact. The

intrusive side of the contact shows only erratic, weak tungsten

and moly geochemistry, so the situation is not a copper porphyry

type of situation where mineralization is "ponded back" within the

margin of the intrusive (as is the case with the small Tertiary

stocks in the Kitsault area).

The mineralization of interest to the author are the low

temperature ones. Float with lead/zinc visible in a quartz-carbonate

gangue was seen In the Rich Forks Creek lower course. Some of the

wedge-ended quartz veins contain up to 25% brecciated slate.

Silver geochemistry values increased as successive samples

were taken (going upstream) on Bonanza Creek. The last sample taken

was the highest. This creek is on an N30°W lineation with the

contact creek. It is slightly inside the hornfelsed front area and

does not exhibit any quartz veining. Creek-placer concentration

of sulphides may be one factor in explaining the high sediment

anomalies.

-a-

Exploration targets for further work include the area of the

vein network on the slightly faulted contact of the diorite and/or

the late or rather flat-lying minor thrusts and cross-faults in or

near the contact area in the Bowser. Such structures might host

"Dolly Varden" type mineralization (of the same metal suite as the

low temperature mineralization). The N3O"W lineation is parallel

to the Kitsault River fault. No signs of the bricky red volcanic

unit were encountered in the area traversed.

CONCLUSIONS

The 1987 field program has successfully confirmed and extended

anomalous geochemical highs in zinc , copper and silver reported in

the 1979 B.C. Government Stream Sediment Survey. Two creeks,

"Bonanza" and "Hidden", show highly anomalous levels in zinc,

copper, and silver accompanied by lesser, threshhold to anomalous

amounts in moly, arsenic and gold. Detailed follow-up stream

sediment geochemistry is required to trace the source of these

anomalies. Thereafter a program of soil or rock geochemistry with

some geological mapping would be necessary in order to further

delineate target areas.

The two barium highs recorded along "N3O"W" creek deserve

follow-up in the same manner, particularly since they are both

associated with anomalous silver values.

APPENDIX I

WORK COST STATEMENT

FIELD PERSONNEL

W.D. Groves, P.Eng., Geological Engineer Oct. 27, 28, 29, 30 and 31, 1981 5 days @ 63OOlday

8. Banerd, Assistant Oct. 27, 28, 29, 30 and 31, 1981 5 days @ $75O/day

CAMP SUPPORT (Food, Supplies, etc.)

10 man-days @ $35/man-day

TRUCK RENTAL

7 days @ $35/day (All-found)

HELICOPTER

50% of $1228.50

GEOCHEMICAL ANALYSIS (Acme Analytical Labs.)

33 L.C.P. (multi-element); 33 Barium by AA, and 33 Gold by AA

$1500.00

750.00

350.00

245.00

614.25

327.70

REPORT COSTS

W.D. Groves, P.Eng. - Report Preparation 2 days 8 $350/day 700.00

George Toop - Drafting 18 hours @ $12/hour 216.00

Blow-ups, figure reproductions, materials, etc. 114.00

Typing - Rough and final 85.00

TOTAL COST $4901.95

Re~~~,~~-~

W.D. Groves, P.Eng. April 6, 1982

APPENCIX II

CERTIFICATE

I, WILLIAM 0. GRCVES, of # 425 - 1915 Hare Street,

Vancouver, Grit&h Columbia, do hereby certify:

1. THAT I am a consulting engineer (geological and chemical) with

an office at + 152 - 890 W. Perder, Vancouver, B.C.

2. THAT I am a graduate of the University of British CoIumbia witi

a B.A.Sc. in Geological Engineering, 1960, and a Ph.D. in Chemical

Engineering, 197l.

3. THAT I am a registered Professional Engineer in the Province

of British Columbia.

RespectfUlly submitted,

W.D. Groves, P. Eng.

DATED: Apt+ 6, 1982.

ACME ANALYTICAL LABORATORIES LTD.

TV: Archsean ReS. 152 - 890 H. Pender St., Vancouver, B.C. V66 lJ9

Assaying & T~ca Advsis 852 E. Hartings St.. “enmw3r. B.C. “6A lR6

~hone:253 - 3158

81-1769 PiI* Na _-------------- lYPC OISmlPlU 2o!!i----

GEOCHEMICAL ASSAY CERTIFICATE __ DWOUbm--------------