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ROSPECTING REPORT
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HE ZEUS PROPERTY
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LAPS MOUNTAIN RANGE
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BRITISH COLUMBIA
LILLOOET MINING DIVISION,
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PROPERTY LOCATION ZEUS and ZEUS I
40 km northwest of the village of Lillooet, British Columbia
50' 52" N
122' 23' W
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Prepared
- byGERRY DIAKOW,
1537 - 5dh Street
Tsawwassen, British Columbia
Canada V4M 3H6
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Revised Feb. 5,2004
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Geological Survey Branch
Assessmerat Rep@@Indexing System
[ARISIIA]
ARlS Summary Report
Regional Geologist, Kamloops
Date Approved:
ASSESSMENT REPORT: 27641
Mining Division(s):
Property Name:
Location:
Camp:
034
2005.06.24
Off Confidential:
2005.12.01
Lillooet
Zeus
NAD 27
Latitude: 50 52 00
Longitude:
122 23 00
UTM:
10
5634960
543396
NAD 83
Latitude: 50 52 00
Longitude:
122 23 05
UTM:
10
5635178
543297
NTS:
092J16W
BCGS:
092J089
Bridge River Camp
Zeus, Zeus 1
Diakow, Stephen Gerald (Gerry), Stefanopoulos, Xenofon
Diakow, Stephen Gerald (Gerry)
Report Year:
No. of Pages:
20 Pages
Commodities
Searched For:
General
Work Categories:
PROS
Work Done:
Prospecting
PROS Prospecting
Keywords:
(1000.0 ha;)
Permian, Shulaps Ultramafic Complex, Ultramafics, Listwanites
Statement Nos.:
MlNFlLE Nos.:
Related Reports:
Ministry of Energy and Mines
Friday, June 24, 2005
Page #:
1
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TABLE OF CONTENTS
Summary
3
Conclusions
4
Recommendations
9
Introduction
10
Location and Access
10
Property Status
11
Physiography
11
History
11
Prospecting Traverses
13
Compilation of Samples
16
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Copy of Assay
Methods and Specifications
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Statement of Qualifications
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Affidavit of Expenses
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Locations and Access for Zeus Claims
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LIST OF FIGURES AN
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Sample Locations and Traverses
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The Zeus mineral claims were prospected and sampled for five days by the
author. Ten rock samples were collected and assayed by ACME Analytical
Laboratories in Vancouver. The condition of the diamond drill core and
access road to the property was evaluated and a search was conducted to
locate survey stations identifying trenches and other workings.
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The Zeus copper-gold property is located in the Shulaps Mountain Range,
Lillooet Mining District, British Columbia, 40 kilometers northwest of Lillooet.
Auriferous quartz veins were discovered on the property in 1906. The
property was explored up to 1911, the area then remained inactive until
1983. Between 1983 and 1989 exploration programs on the property
included mapping, geophysical surveys, trenching and diamond drilling. In
1994 and1995 Spokane Resources Ltd. conducted an exploration program
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on the property that included mapping, prospecting, geochemistry and over
2500 metres of diamond drilling.
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Exploration to date includes 8,959 metres of drilling in 105 holes, 75 metres
of trenching and 55 metres of underground development.
The main mineralized trend, which features copper-gold quartz veins, has
been traced from the East Zone to the West Zone over a strike length of
approximately 700 meters and tested between 1950 metres and 2225
metres above sea level. The main mineralized trend is believed to represent
a deep seated shear zone such as the nearby Marshall Fault.
Spokane Resources Ltd. calculated an ore resource following their 1995
program. Spokane's resource estimate calculations indicate 94,904 tonnes
grading 0.232 opt. gold and 1.06 % copper for the West Zone and 94,549
tonnes grading 0.268 opt. gold and 0.77% copper for the East Zone. The
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East and West Zones have a combined resource estimate of 189,453
tonnes grading 0.250 opt. gold and 0.92% copper.
The grade and tonnage indicated in the resource estimate is encouraging
and demonstrates that the mineralization event has concentrated a large
amount of auriferous quartz veining into a restricted mineralized trend.
Have previous operators discovered all the quartz veining containing gold
on the property ? Could there be a porphyry copper-gold deposit which is
the source of the mineralization? These questions remain to be answered.
The property is a significant deposit and warrants further work consisting of
a deep penetrating electric magnetic survey with follow-up diamond drilling
to answer these questions and determine the potential of the property for
hosting an economic deposit.
Conclusions
1. The Zeus 1 and 2 mineral claims cover the B.C. Minfile property known
as Rex Mountain 092JNE034 but do not include the 4 crown grants
Columbia L1122, Shamrock L1123, Goldenstripe L1124, and Mascot
L1125.
2. The rock grab samples collected from the Zeus claims by Gerry Diakow
in 2004 indicate very high gold values are present on the Zeus mineral
claims.
3. The locations of old workings, i.e., trenches, diamond-drill holes and
adits, have to be remapped and marked by survey stakes.
4. The access road requires minor repair work and upgrading to allow 4-
wheel-drive vehicles to access the property.
5
The report Geological Geochemical And Diamond Drilling Report On The
Rex Mountain Property produced by Spokane Resources in 1996
represents a logical starting point for further exploration of the property.
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Spokane Resources' 1996 exploration report contained the following
conclusions:
1. The mineralized Mission Ridge Pluton consisting of quartz diorite and
granodiorite and the younger barren Rexmount Porphyry have intruded
zones of structural weakness within the main mineralized trend.
2. The main mineralized trend 290° - 300°, which is the locus of auriferous
quartz veining has been traced from the East Zone to the West Zone
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over a strike length of approximately 700 metres and tested between
1950 metres and 2225 metres above sea level.
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3. Mineralization comprised of chalcopyrite, pyrrhotite, and pyrite occurs as
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disseminations and auriferous quartz veins within the Mission Ridge
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Pluton. In addition, mineralized quartz veins are spatially associated with
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altered serpentinite within the main mineralized trend. Silica-sulphide
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fluids occupying the intruding margin of the mineralized granodiorite are
believed to be the source of the auriferous quartz veins located within
the main mineralized trend.
4. The main mineralized trend is believed to represent a deep seated
shear zone such as the nearby Marshall Fault. This hypothesized shear
zone became a conduit along which the mineralized intrusion and
accompanying silica-sulphide solutions invaded the locally deformed
and faulted serpentinites and metasediments.
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5. The property has undergone a complex history of deformation, faulting,
shearing and thrusting, which has structurally prepared the chemically
6
favourable serpentinites to be suitable hosts for ascending silicasulphide fluids and intrusions.
6. The serpentinite is altered to listwanite by the silica-sulphide solutions.
The listwanite is believed to have reacted as a catalyst, neutralizing the
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silica-sulphide solutions and precipitating gold in quartz within structural
traps.
7. Three types of quartz vein systems have been identified:
a. Shallowly dipping veins that occupy thrust planes and composition
planes.
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b. Steeply and shallowly dipping veins that occupy riedel shears,
displacement shears and tension fractures between thrust sheets.
c. Steeply north dipping veins that occupy the hypothesized shear zone
of the main mineralized trend.
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8. Quartz veins are discontinuous along strike and dip, pinch and swell,
and form pods at the intersection of structures. Locally, in the Adit area
the quartz vein systems anastomose to approximately 38 metres
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thickness and are continuous over several sections of strike length.
9. Quartz veins are folded and offset suggesting that deformation and
faulting occurred during emplacement of the Rexmount Porphry.
10. High-grade copper and gold mineralization are associated with zones of
intense silicification and listwanite alteration. Listwanite occurs adjacent
to and as inclusions within auriferous quartz veins.
11.Alteration studies can be utilized as an exploration tool and assist with
geophysical interpretations. Intensely silicified and carbonatized
7
serpentinites and listwanites are associated with mineralized zones.
During carbonatization and silicification of serpentinite the magnetite
within the serpentinite is destroyed. Therefore, an I.P. chargeability and
resistivity geophysical response is related to the intensity of alteration
and sulphide content of the stratigraphy. Magnetic susceptibility varies
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according to the intensity of carbonatization and listwnaite alteration of
serpentinite.
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12.An I.P. and coincident VLF-EM anomaly parallels the hypothesized
shear and main mineralized trend. The I.P. anomaly demonstrates high
resistivity and chargeability believed to represent disseminated
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sulphides within silicious bedrock. The VLF-EM anomaly represents a
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conductive fault or shear which has been identified as the hypothesized
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shear of the main mineralized trend. A resurvey of the mineralized trend
using a more sophisticated EM technique may be warranted.
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13. Mineralization consisting predominantly of pyrite, pyrrhotite and
chalcopyrite are concentrated along the hangingwall and footwall
contacts within darker shatter textured quartz. The shattered or
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dendritic-like texture is due to episodic emplacement of silica-sulphide
solutions. The darker quartz is believed to contain chlorite and graphite.
14. The copper to gold ratios for the West Zone and East Zone are 1333:1
and 838:1, respectively, There is a positive correlation between copper
and gold. Silver is an economically important byproduct.
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15.The West Zone is comprised of two continuous north dipping quartz vein
systems occupying the hypothesized shear along the main mineralized
trend. The quartz vein systems can be traced along strike from the
Upper and Lower Adit area but are not as well developed outside of the
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adit area. The change is believed due to the decreasing intensity of
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shearing outside of the adit area. In addition, the veins thin at depth due
to the dip of the structural controls flattening with depth and t h e
presence of argillite, which is not a structurally and chemically
favourable host for quartz veins. Moreover, westward the Rexmount
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Porphyry has frequently destroyed or displaced the quartz vein systems.
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16. The East Zone consists of shallowly and steeply dipping quartz veins
located along riedel shears and tension fractures directions between
thrust sheets. Predominantly, the quartz veins dip shallowly t o the south
and occur within the hypothesized shear zone of the main mineralized
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trend. The axis of the hypothesized shear is often located along a
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17. Resource estimate calculations indicate 94,904 tonnes grading 0.232
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depression in the bedrock to overburden contact.
opt. gold and 1.06% copper for the West Zone and 94,549 tonnes
grading 0.268 opt. gold and 0.77% copper for the East Zone. A
combined resource estimate of 189,453 tonnes grading 0.250 opt. gold
and 0.92% copper is indicated for the West and East Zones.
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18.A preliminary metallurgical test utilizing conventional methods of
recovery (no cyanide extraction) recovered 99.4% for copper, 84.8% for
gold, 74.9% for iron and 78.9% for bismuth.
19.The geological history and nature of the auriferous quartz vein systems
is complex and not fully understood. The property continues to have the
potential of hosting an auriferous quartz vein deposit andlor a porphyry
copper-gold deposit.
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Recommendations
1 Relocate in the field work completed by earlier exploration programs and
convert and incorporate their data into a modern GIs system. Use NAD
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83 GPS positions as the common reference for all past surveys and
diamond drill hole locations.
2. Transfer the diamond drill logs into a modern program that allows data
to be viewed in sections and three dimensionally. Inputting data into a
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computer geological data base would speed plotting drill holes on
section and permit more flexibility with interpreting data than the
previous manual method allowed. Use this information and review the
recommendations included in Spokane's 1995 drilling report.
3. Repair and upgrade the access road to allow transit of 4-wheel-drive
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vehicles.
The following set of recommendations were included in the 1996
exploration report submitted by Spokane Resources:
The sub-economic grade and tonnage indicated in the Resource Estimate
is encouraging and demonstrates that the mineralizing event has
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concentrated a large amount of auriferous quartz veining into a fairly
restricted mineralized trend. The following program is recommended to
determine the existence of a high-grade auriferous quartz vein deposit
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andlof a porphyry copper-gold deposit.
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I.A sophisticated EM survey is recommended over the following areas:
a. The area between the Adits and Anomaly A. Anomaly A, an I.P.
response located north of the main mineralized trend was defined
10
during the 1989 geophysical survey. This anomaly has not been
tested by drilling and may represent a lode deposit andlor porphyry
copper-gold deposit at depth.
b. Anomaly J is located north of and parallel to the main mineralized
trend. The anomaly, which was defined during the 1989 I.P. survey
indicates a geophysical response at 150 to 200 metres beneath the
surface along section 3+50 West.
c. Anomaly B located north of Anomaly J has a similar geophysical
response to Anomaly J and the main mineralized trend.
d. If the follow-up drilling program is successful, then the EM survey
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should be extended over the entire main mineralized trend.
2. A follow-up diamond drilling program is recommended to test the I.P.
anomalies and any subsequently discovered EM anomalies.
b
Introduction
9
This prospecting report is based on observations made by the author during
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an October 2004 field trip and while helicopter staking in February 2004. All
grab samples are from locations on the Zeus 1 mineral claim. This report is
supplemented by a study of assessment reports on earlier exploration work
and by information contained in government geological surveys
Location and Access
The Rex Mountain property is located at latitude 50' 52' N, longitude 12Z0
23' W, in the Shulaps Mountain Range, Lillooet Mining District, British
Columbia. The property is situated 7 km North of Carpenter Lake and 40
km northwest of the village of Lillooet. Access is by the 30 km all-weather
Bridge River Road extending from Lillooet to approximately one kilometre
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west of the Yalakom River bridge. At this point a 20 km forestry road
branches off the Bridge River Road. The final 6 km to the property is via a
4-wheel-drive road. (Figure 1)
Property Status
The property consists of two claims each claim is made up of 20 units
making the total claim area 1000 hectares (Figure 1)
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Claim Name
Tenure #
Expiry Date
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Zeus
408265
Feb 12,2006
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Zeus I
408266
Feb 12,2006
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Physiography
6
The property is situated along the crest of the Shulaps Range which is part
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of the Pacific Ranges of the Coast Mountains. The claims cover part of the
crest between Carpenter Lake and Shulaps Creek the elevation is 2200
metres to 1900 meters. The high elevation makes for a shorter field season
than lower ground in the vicinity. The claims are probably snow free most
years from June through to October.
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History of Exploration
The discovery and mining of lode gold in the Bridge River camp in the last
3
decade of the lgthcentury led to increased prospecting activity in the
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mercury and jade prospects. G. Holbrook of Missouri discovered gold in
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general area and resulted in the discovery of a number of gold, copper,
quartz veins on the property around 1906. In the period 1910-191 1, the
claims were held by Dr. C. Christie of Lillooet. During this time two adits
were driven along the quartz vein, a lower adit extending 49 meters and an
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conducted a brief geological, geophysical and geochemical evaluation of
the claims. In 1985, Stryder Exploration performed a minor program of
Winkie drilling. In 1986, International Enexco Limited built an access road to
the property, rehabilitated and mapped old showings and drilled seven
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holes totalling 300 metres. ln1987, MacNeill International Industries Ltd.
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surveys in the property area. Twelve trenches were completed for a total
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undertook 426 line miles of airborne magnetic and VLF-EM geophysical
length of 395 meters. In 1988, MacNeill drilled twelve diamond drill holes
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totaling 968 meters. In 1989, MacNeill completed 2,062 meters of diamond
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360 meters of trenching. Padre Resources Corporation managed the 1994
drilling and 7.45 kilometres of induced polarization surveys and performed
exploration program for the Spokane-Enexco joint venture. This program
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consisted of staking six additional claims, an initial reconnaissance program
of prospecting and geochemistry and 2, 2551 m of diamond drilling in 26
holes. During the 1995 program an additional 7 claims were staked, a
geological and geochemical reconnaissance program was conducted on
the peripheral claims and adjoining areas, and a total of 2,531 m of
diamond drilling was completed in 20 holes.
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Exploration work on the property to date totals 8,959 m of diamond drilling
in 105 holes, 755 meters of trenching and 55 metres of underground
development.
Prospecting Traverses
The claims were visited on 4 consecutive days the mine access road was
located near a small lake (Figure 2) where the 4x4 truck was parked and a
quad An/ (All Terrain Vehicle) was used until a large washout on the road
stopped any further progress with the An/. The A N was able to get within
500 meters of the eastern boundary of the Zeus claim (Figure 2). The
14
claims were now reached by walking the last 500 meters along the
boulder strewn road.
The road washout was caused by melting snow cascading down a scree
slope and eroding the built up road bed with a ravine 10 feet deep and 15
feet wide.
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The diamond drill core from 1995-96 was still stored in such a way that it
could be carefully moved for inspection and then restacked. The core from
earlier drilling has collapsed onto itself making more or less a pile of ruble.
Porcupines have eaten into the ends of the stacked core boxes, strong
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winds have blown the tops off many of the boxes and scattered these
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around the core storage site and early core boxes have rotted. Old core that
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has been sampled more than once looked to be in the worst shape.
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Many of the drill hole locations survey stakes have been disturbed and were
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not located by the author. Most flagging used to mark the location of
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trenches is missing or illegible a lot of time was spent trying to orient
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previous work the intention being to sample some of the more promising
showings. The Author was still able to find some very good samples as
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evidenced by B 184752 that ran 31.148 gramsltonne gold and 0.29%
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copper.
The area that had been the camp was located and this area has grown
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back and seems to be well on the way to a complete recovery with native
plants.
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Working alone on a large property at high elevation combined with a long
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trip from Lillooet resulted in a lot of the property not being prospected but
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rather one was drawn from trench to open cut to drill pad always searching
for a high grade sample. The adits were not located during this property
inspection.
Compilation of Samples
Sample #
Location of Sample
Elevated Value
Comments
184751
Zeus 1 north
Au 11.I
gmltonne
52
Zeus Inorth
Au 31.15gmltonne
53
Zeus Inorth
Au 18.14gmltonne
54
Zeus 1 north
Au 19.07gmltonne
55
Zeus 1 south
Au 0.64gmltonne
QWlistwanite
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56
Zeus 1 south
Au 1.39gmltonne
QWlistwanite
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57
Zeus 1 south
Au 1-73gmItonne
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58
Zeus 1 SW
Au 1.37grnltonne
serpentinite
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Zeus 1 SW
Au 1.96gmltonne
serpentinite
184760
Zeus 1 SW
Au 10.97gltonne
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B 184759
13 7 4239.0 31.5 212 8.0 132.6 120.1 31 3.81 65.9 <.1 1956.6 <.1 1 4.4 .6 283.9 5<.01<.001 <1 16.7
B 184760
19.3 2283.5 9 . 1 48 11 2
4.6 5.3 22 1.07 9.9 .1 10972.0 c 1 1 1.0 .5 493.5 4<.01<.001 < l 23.6
STANDARD DS6 11.4 118.6 29.7 138 .3 23.9 10.5 684 2.81 21.0 6.7
48.0 2.9 40 5.6 3.5
4.9 59 .83 ,076 14 180.3
.06 lc.001 <1 .07 .001<.01 .9<.01 .2 <. 1 3.62 1 7.0
.01 2<.001 1 .01 .002<.01 2 7 .02 .1 <.1
.94 <1 7.0
.59 171 ,077 19 1.85 .069 .16 3.4 .23 3.2 1.8 <.05 6 4.5
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hkIlXlDS AND SPEC~FICATIONS
FOR ~ Y T I C A PACKAGE
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GROUPI D & 1DX ICP ANALYss- AQUAREGLA
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Soils and sediments we dried (60-C) and sieved Q -8U mesh
(-l~m),mcksandQillcoreare~end~to150 nran (-100 m). v
w is md (80Cc) nd
pulvuized or dry ashed (550'C). Moss-mat samples are
dried (W'C), pounded then sieved to waver -80 mesh
sediimwtorashedat5M)'Cthensievedto-&Omeshwith
pdentid loss by volatibbn of Hg, As, Sb, 6
i and Cr.
Mquots of 0-5 g are weighed into test tubes. c)upkab
aliquo6 are taken from two samples in each baah of 34
samples b measwe prebtion. An aiqwt of sample standaJd
STDC3isaddedtoeadrbaWtomoniQracavacy.
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; Aqua wa b a 222mixhlre d ACS grade CWICHa.cone.
H N h and demineralii W. Aqua Regia is added to each
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sample and to two empty reagent bhnk test lubes in each
batch of samples. Sample Solutions are digested for ihr in a
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NomComp 800 or 975 ICP emission spectrograph io
d e k m M 30 *men&: 4,A,~ sW, , B, ~ aBi,,
cd, a,
~ r , ~ eK, ~ a~, gMn,
, ~ o ~, aN,
, P,~ bs,
, st, m,ri
U, V, W, Zn.
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boiihotwterbath(9SgC).
Gmu~fP.samplesolutiMIsareasp'raQedintoa3arrelAsh
Group fasample sdutions are aspiraw into a Perkin
E b O p t i m a 3 3 0 0 W V m l C P ~ ~ b
determine 35 e h W s : Ag, AI, As. Au. 0. Ba Bi, Ca Cd,Co.
Cr.Cu. Fe. GasHg. K, ta; Mg. Mn. MO. ~ aNi.. P. ~ bS.. sb.
Sc,n*Sr,Th,T~,Uv.w,~. .
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a Evaluation
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Raw and fnal da?afrom the ICPES undergoesa final
verification by a British Columbia CertiAed Atsayer who then
signs the Analytical Repart befwe il is rekased to the client.
.
C h i e f ~ ~ i s ~ L x m g , o h e r ~ ~ y e f s a r e
! Dean T o p and Jacky Wag.
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R E C E I V E D FROM:684
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19
STATEMENT
OF QUALIFICATION
STEPHEN
G. DIAKOW
1. I attended Vancouver City College and the University of British
Columbia completing courses leading to a B.Sc in chemistry.
2. Studied Civil and Structural Engineering at British Columbia Institute of
Technology.
3. 1 have worked in Mineral Exploration for the past 39 years
. Including
the major companies Union Carbide Mining Exploration, Canadian
Superior Mining Exploration and Anaconda Mining Exploration.
4. 1 have received 3 British Columbia prospector assistance grants, the first
from Dr. Grove in 1975 and last in 1998.