DIAMOND DRILLING REPORT

ON THE R

AM1, IDE1, IDE3, AND ANN 3 FRACTION.

MINERAL CLAIMS

RECORD NUMBERS 31188,24994

24996 AND 45132

PART OF MINERAL LEASE NO 9 - HIGHLAND VALLEY KAMLOOPS MINING DIVISION

NTS SHEET 921/6, 921/7

LATITUDE 50'26 ' N

LONGITPE 12 1°00 ' E OWNED BY &TIONAL TRUST COME'ANY LIMITED

510 BURRARD, VANCOWER, 5. C. V2C 257

OPERATED BY HIGHMONT OPERATING CORPORATION

BOX 3000, LOGAN M E , B. C. VOK 1WO

Report Prepared By .

G.R. SANFORD - HIGHMONT MINE GEOLOGIST 10 JANUARY 1984 o

C E O ( , Q G I C A L b . R A N C i H A S S E S S M E N T R E P O R T

I N D E X MAP

SPENCES BRIDGE MAMILT; LAKE

DIAMOND DRILLING REPORT

ON THE

AM1, IDE1, IDE3 and ANN 3 FRACTION

MINERAL CLAIMS

PART OF MINING LEASE NO 9

TABLE OF CONTENTS

PAGE

Index Map

Introduction

i) Location and Access

ii) Claim Description

iii) Summary of Work Done

r

Detailed Technical Data and Interpretations

i) Purpose . 4

ii) Results 4

iii) Interpretations 5

Location Map - Drill Hole Collars - Drawing 2

iv) Conclusions 9

Itemized Cost Statement

Author's Qualifications

Appeildix I

Diamond Drill Logs

Hole 83-376

Hole 83-377

Hole 83-378

Appendix I1

Assay Results

DIAMOND DRILLING mPORT ON THE

AM1, IDE1, IDE3, AND ANN 3 FRACTION MINERAL CLAIMS

PART OF M I N I N G LEASE NO. 9

INTRODUCTION

i) Locat ion and Access

Mineral Lease No. 9 i s l o c a t e d i n t h e Highland Valley on t h e southwest

f l a n k of Gnawed Mountain, a t a n e l e v a t i o n of 1600 m. The orebody c u r r e n t l y 4

being mined by Highmont Operat ing Corporat ion l i e s e n t i r e l y w i t h i n t h i s

l e a s e . (See Dwg. No. 1 )

i

Access t o t h e Highmoont Operat ion i s v i a t h e Highmont Mine Road, a n 8 km.

a l l weather g r a v e l road which connects w i t h t h e paved highway connect ing

Logan Lake and Ashcroft .

i i ) Claim Desc r ip t ion

Mineral Lease No. 9 c o n s i s t s of 40 minera l c laims and f r a c t i o n s and

was i s s u e d on December 10, 1979 f o r a per iod of 21 years . Mining i s a c t i v e l y

be ing c a r r i e d o u t by Highmont Operating Corporat ion from t h i s l e a s e a t t h e

r a t e of 68000 tonnes pe r day supplying 23-27000 TPD of m i l l feed.

Consi-derable development work has been done on t h e Highmont ground, ,

beginning wi th t h e i n i t i a l c la im s t a k i n g i n 1955 and 56. Torwest Resources

and Highmont Mining Corporat ion d id major percuss ion and diamond d r i l l i n g i n

1966 and 67 and then drove some 1170 m of underground development f o r bulk

sampling and inves t lg i i t i ons i n /9b7 and 1968. At.lditic?n,~l diamond d r i l l i n g

Page 3

'Cr wasdoneby Teck Corporat ion i n 1971, b r ing ing t h e exp lo ra t ion d r i l l i n g t o t a l

t o 46400 m of diamond d r i l l i n g and 18600 m of percuss ion d r i l l i n g .

The d r i l l i n g had o u t l i n e d two l a r g e minera l ized zones, t o t a l l i n g 0 1 2 2

m i l l i o n tonnes a t 0.26% Cu. and .027% Molybdenum.

A product ion d e c i s i o n was announced on A p r i l 24, 1979. S t r i p p i n g

commenced i n June 1980 and t h e f i r s t o r e was mi l l ed i n December 1980.

Seve ra l t e c h n i c a l papers have been publ ished on t h i s proper ty . Two of

t h e s e r e p o r t s a r e :

I

1) "The Highmont Copper-Molybdenum Depos i t s , Highland Valley, B r i t i s h

Columbia" by Bergey, Carr ,and Reed, CLMM B u l l e t i n , December 1971.

2) "Highmont: L inea r ly Zoned Copper Molybdenum Porphyry Deposi ts and

t h e i r S ign i f i cance i n t h e Genesis of t h e Highland Valley Ores"

CIMt S p e c i a l Volume No. 15 pp 163-181, by Reed and Jambor 1976.

The c u r r e n t diamond d r i l l i n g program was c a r r i e d ou t w i t h i n t h e a c t i v e . East P i t .

0

i i i ) Summary of Work Done

I

D r i l l i n g :

Three NQ s i z e diamond d r i l l h o l e s k o t a l l i n g 288.0 meters .

A l l work was performed w i t h i n Mining Lease No. 9, on

Mineral Cia-ims AM1, Tl>E1, IIE3 and ANN3.

Page 4 *

DETAILED TECHNICAL DATA AND INTEPL'RETATIONS

i) Purpose

The purpose of t h e d r i l l i n g was two f o l d . F i r s t l y , i t was d e s i r e d t o

i n t e r s e c t suspec ted water bea r ing s t r u c t u r e s and hope fu l ly lower t h e pore

water p r e s s u r e on t h e p i t w a l l s and secondly t o provide a s say informat ion t o

a i d i n f u t u r e p i t expansion p lans . The h o l e l o c a t i o n s w e r e i n gene ra l ly

poor ly de f ined a r e a s and t h e e x t r a c o s t of diamond d r i l l i n g a s opposed t o

cheaper percuss ion d r i l l i n g wasdeamedworthwhile f o r t h e a s say and s t r u c t u r a l

in format ion which could be obta ined .

ii) Resu l t s a

A l l d r i l l i n g w a s done under c o n . r a c t t o Maitland Explora t ions - Vernon,

*cr B. C. A s k i d mounted Longyear 38 d r i l l was used. The c o n t r a c t o r provided a

sk idde r f o r moving t h e d r i l l . 0

Core was logged and s p l i t a t t h e Highmont Mine site. S p l i t t i n g was done

i n 3.048 meter (10 f o o t ) l e n g t h s and a s says f o r copper 2nd molybdenum were

done us ing s t anda rd atomic abso rp t ion techniques by Highmont's own Assay Lab.

The d r i l l c o r e i s now s t o r e d a t t h e Highmont Ming s i t e . Diamond d r i l l

l o g s a r e a t t a c h e d a s Appendix I, and a s say r e s u l t s a r e t a b u l a t e d a s Appendix 11.

The coord ina t e s of t h e diamond d r i l l h o l e s , i n r e l a t i o n t o Highmont's'

g r i d system (non-metric) a r e :

HOLE # ' - SIZE AZIMOTM NORTHING EASTING ELEVATION - DIP LENGTH

iii) I n t e r p r e t a t i o n s

The geology of t h e p rope r ty has been w e l l documented i n t h e two p rev ious ly

mentioned r e p o r t s . The o r e occurs a s f r a c t u r e coa t ings and as s h e a r s i n t h e

h o s t Skeena Quartz D i o r i t e . F rac tu re d e n s i t y and rock a l t e r a t i o n a r e both

impor tan t f o r o r e l o c a l i z a t i o n . The mine ra l i za t ion , c o n s i s t i n g of Chalcopyri te , .

Born i t e and 14olybdenite i s d e f i n i t e l y r e l a t e d t o t he s l i g h t l y younger

Bethsa id ia Quartz Porphyry dyke, which l i e s j u s t o u t s i d e t h e c u r r e n t south-

w a l l of t h e Stage 1, East P i t . u

Rock a l t e r a t i o n w i t h i n t h e Skeena Quartz D i o r i t e i s c l a s s e d as f r e s h t o

l i g h t , moderate, o r i n t e n s e , based p r i m a r i l y on f e l d s p a r a l t e r a t i o n . Fresh

o r l i g h t l y a l t e r e d rocks have f e l d s p a r s w i th a s l i g h t greenish t i n t due t o

s e r i c i t i z a t i o n and mafics a r e una l t e r ed . Moderately a l t e r e d rocks have f e l d s p a r s

which a r e most ly e i t h e r waxy green o r buff w i t h some c h l o r i t i z a t i o n of mafics .

I n t e n s e l y a l t e r e d rocks have f e l d s p a r s which a r e t o t a l l y waxy green o r buff

and t h e maf ics a r e a l l bu t destroyed. I n extreme cases , f e l d s p a r s a r e chalky

* due t o complete k a o l i n i z a t i o n .

Hole 83-376 ----------- I

This h o l e was c o l l a r e d a t t h e extreme e a s t end of t h e e a s t p i t ( see Dwg. No 2 )

on 5310 berm. The f l a t h o l e was d r i l l e d approximately a t r i g h t ang le s t o t he

dominant joint set: i n t h i s a r e a w l~ i ch d i p s 65' towards 330' ( 6 5 / 3 3 0 ) . Assay

r e s u l t s were gene ra l ly d iscour :~ging , wi th only a 6.1 m s e c t i o n from 94.5 t o

100.6 which assayed .09% Cu and .035% Mo. bging considered ore by current

Highmont standards.

Rock alteration was generally intense. The sections from 60.9 to 91.4 and

117.3 to 122.8 were only moderately altered.

A major waterflow was encountered at 24m. Initial flow rates were in excess

of 80 liters per minute and caused problems in,maintaining the hole. When the

hole was completed to the desired depth of 123 m, slotted plastic drain pipe

was installed to hole bottom and the first 15 m o$ the hole was completely

grouted around solid plastic pipe.

0

Two .Tropari tests were attempted at 71.6 m and 121.9 but neither was

successful for Azimuth due to malfunction. The dip remained constant at

4-02' up. Waterflow gradually decreased and stopped abruptly in mid November 1983.

0

Hole 83-377 ----------- . This hole was collared some 470 m west of hole 83-476 on 5270 mid berm and

was drilled at an acute angle into the south wall of the pit. This hole was

also drilled approximately at right angles to expected water bearing structures.

Circulation was lost within 3 m of the hole collar, but the hole was

continued to bottom at 7 1 m. The expected water bearing structure was inter-

sected from 60.4 to 64.9 but only minor seepage (less than 4 liters per hou~) * *

was noted., Slotted pipe was again installed and the collar grouted to 15 m

depth.

Assay results were mcre favourable with the first 10.7 m assaying .34% Cu

Page 8

and .010% Mo. The rest of the hole was barren.

The rock intersected was variably altered, following no particular

pattern.

Hole 83-378 ----------- This hole was drilled parallel to hole 83-377, some 28 m further west.

It was hoped that the gougy zone from 60.7 to 64.9 in hole 83-377 would carry ,

more water further into the wall.

Assay results from this hole were most encouraging. The first 27.4 m

assayed .61% ~u/.020% Mo, 12.2mfrom 51.8 to 64.0 assayed .32% ~u/.026% Mo

and the last 18.3 m of the hole assayed .33% Cu. and .027% Mo.

Rock alteration was mixed between intensely altered and light to medium

altered zones, again with no particular pattern. Short sections from 30.5

to 54.9 were Bethsaida Quartz Porphyry. Known geology predicted the hole to be

close to the Porphyry dyke. e

The zone from 85.3 to 92.0 was the anticipated water zone and was very

gougy, but again only a trickle of water (less than 4 liters/hour) was intersected.

Caving ground in the vicinity of the 70 In mark prevented slotted pipe from

being installed past this point. The collar was not grouted. I

Page 9

iv) Conclusions

Favorable ore intersections were found in two of the three holes drilled.

Future expansion of the pit to the south will enable this ore to be mined,

but an expansion to the east does not appear likely at this point.

The stability of the east end pit wall was improved by relieving the

water pressure behind the wall when tapped by hole 83-376. The sudden

stoppage of flow in mid November coincided with the first major cold spell of

the winter. This indicates a direct connection to surface runoff.

4

The hoped for ~ater~bearing structure in the south pit wall was not

intersected. The amount of gougy material in hole 83-378 from 8 5 . 3 to 92.0

may indicate a potential problem area in future pit expansions.

0

Highmont Mine Ge lo ist 4 .)

** 4 Page 10

ITEMIZED COST STATFMENT

1) Diamond D r i l l i n g C

Maitland Explora t ions Ltd. (22 Sept 1983 - 14 Oct. 1983)

288 m, of NQ Core D r i l l i n g inc lud ing mobi l iza t ion , r e n t a l of

sk idde r , f i e l d c o s t work i n caving ground and s u p p l i e s consumed

inc lud ing co re boxes and s l o t t e d PVC pipe .

T o t a l Cont rac tor Cost

2) Assays

96 Copper @ $7.50

96 Molybdenum @ $7.50

(15 Dec. - 30 Dec. 83)

I

3) Core Logging

S. Waller 3 days @ $100/day

(1 Nov. 1983 - 15 Dec. 1983)

4 ) Core S p l i t t i n g and Sample Bucking

S. Waller, G. Sanford, M. P o r t e r 5 days @ $100.

(1 Dec. - 30 Dec. 1983)

5) Superv is ion of Diamond D r i l l i n g

G. Sanford 22 September - 14 Oct. 1983

18 days X $150.00 X 1/3 t ime

6 ) Vehicle Use

22 Sept . - 14 Oct. 1983

7) S i t e P repa ra t ion

4 H r s . D8 Cat work (EIighmont Cat)

22 Sept . - 10 October @ $100/hr.

Page 11

81 Survey Control

Markup of Holes and Survey of C o l l a r s

22 Sept . - 14 Oct. 1983

day - 2 Man Highmont C r e w

9) Supp l i e s Provided by Highmont

Grout - 10 Bags @ 7.00

Inc lud ing F re igh t and Taxes

10) Report P repa ra t ion , Superv is ion of 'core Logging

G. Sanford 4 Days @ $150

1 Nov. 83 - 10 Jan. 1984.

TOTAL

AUTHOR' S QUALIFICATIONS

I, GERALD R. SANFORD, OF 1901 PARKER DRIVE, MERRITT,

,BRITISH COLWfBIA, DO HEKEBY CERTIFY THAT:

1) I a m a Geologis t employed by Highmont Operating

2) I graduated from t h e Univers i ty o f B r i t i s h Columbia 0

i n 1969 w i t h a Bachelor of Applied Science Degree i n

Geological Engineering

3) I have been cont inuous ly employed a s a geo log i s t i n

t h e mining i n d u s t r y s i n c e graduat ion; and t h a t

4 ) t h i s r e p o r t d e s c r i b e s work performed on Mineral Lease

No. 9 under my supe rv i s ion dur ing t h e per iod 20 September

- 15 October 1983.

APPENDIX I

DIAM0,ND D R I L L LOGS

HOLE 83-376

HOLE 83-377

HOLE 83-378

--- DIAMOND DRILL LOG. i

Gri2 KG. Proper ty Section No. Hole No. 83-376

erzTtej 26 Sept. 83 I Bearing 130'37' / Dips +1°37' / t 75966.59 1 Elevation 5323.82 1 Location 5310 East Pit i

C3~2;:okd 2 Oct. 83 1 Len6& 122.8m / Surface Hole X I Dep. 112230.24 I h v e l 5 110 I Lozjiedby S. Waller I

C*" - <.,:T.~ " -. . --- - f Casfrg 1.52m r I Undrrground Hole 1 Remmks - - . - - --- --- ----____- -- ? GGYxlG:; ksasy

Description I <Ave:~ge TV ,. . a%b= i I J&des

i . 5 1 60.9 1 I Generally buff colored, intensely altered Skeena Quartz Diorite. Mafics 1 I 0 I -I

1 all but destroyed. Buff color alternates with a waxy green feldspar I - I ! I I I L

I alteration. Some greenish chloritic sections. Entire hole has - I I I I 1 batchY development of a salmon colored alteration which resembles - ---

I II ! [ I~-s~ar, but is probably due to fine iron oxide particles. Also scattered I i

-__C_ I

I I

i , I

/disseminated molybdenite in quartz veins and fracture controlled bornite I 1

- I I

and chalcopyrite throughout entire hsle. Hit major water flow at

21.0 - 24.1 Very chloritic I I . --- 24.4 - 27.4 Poor recovery ( 2 0 % ) not much gouge I .

I I -I- --

I

i - I 124.4. Initial flow rate + 8 u p m . v

! i 1

24.4 - .25 cm Quartz vein f 1 I

I i j I

33.5 - 38.1 Lot of earthy hematite I

34.4 Earthy hematite slip I I I I

39.7 - 40.8 Some shearing I I 1 I i

45.7 - 47.8 Limonite stained O I I

54.9 Minor shearing 1

-- I . I

i i pur? aq%y~ paxa3~e~s -suoyaexa~~er'lamp~ esnoynaxd sapaxaaxe dfasuaau~. I EeL1l 1 9-16

--- I - I 1 i I-

I 1 I I

1 "1 I f paxo~o~ uou~es dy~aed ~-rj~s.suoyasas paxaa~r? 3xoqs pue suor~~as

I i I! ! I I

j

9L€-E8 'ON aloH ON uora3a s Xaxadoxd 'ON PVr3

I I 1 auoz uayolq pue a%noS xouy~ 9'1L - 8'69

liiI I pazyuy~oey d~aaa~duo~ sxedsp~ad T'L9 - 9'99

I I

*spuaTquxoy 0

pue sa2r?orq bat~aj uaaxg -uorJsxa-STe xodsp~aj uaax8 IOrm mnrpaH i

0'99 1 6'9s

- -

3LE-E8 'ON aT*H OK uag~a g Xl.radord 'ON PF9 u

APPENDIX I1

ASSAY ~ S U L T S t

HOLE 83-376

HOLE 83-377

HOLE 83-378

HIGHMONT OPERATING CORPORATION Date: .

Mine Assay Laboratory Report Form

Assayed By:

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9

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REMARKS

83-376

3

FOOTAGE ! m)

1.5- 3 o

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b \ - 9 . 1

4 , \ - 1 2 . 2

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1st- 10,g

183 -21 3

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C- 10

10-213

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80-50

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TAG NO.

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LAB. NO.

1

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10

11

12

13

MIGHMONT OPERATING CORPORATION Date:

Pdine Assay Assayed By:

Laboratory Report Form FOOTACE LAB. FOOTAGE

"40

1 9\4..-9+,s .1.S 2 % , S - 9 7 5

Q

25 0

2 5 -- - - .--

---------- ??.. ----*

i

15

16

17

18

19

20

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WIGHMONT OPERATING CORPORATION + 1

Date: 15 ou5~ 1903 Mine Assay

Assayed By:

-. - --

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REMARKS

83-37-7

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FOOTAGE ( m)

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sc " 8 . 5

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1 % ~ - . 137

1-19 -207

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LAB. NO.

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r : f. c .. , 8 "

HIGHMONT OPERATING CORPORATION Date: 2o. Z?,, Dee, rsQ 1" 1

, , Mine Assay t 1 Assayed By: , 1 ! Laboratory Report Forri

TAG NO.

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LAB. NO.

1

2

3

4

5

6

7

8

9

10

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FOOTAGE ! m>

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6 . 1 - 9 1

C + I - . I L L

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($3--21.3

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RolE REMARKS

$3'937$3

L

. HIGHMONT OPERATING COWPUHAI ION

i i Mine Assay i : 3 .

Assayed By: Laboratory Report Form