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MINERAL EVALUATION REPORT BECKER HAMMER DRILLING PROJECT TINA GROUP MIDDLE AND UPPER OTTER CREEK SURPRISE LAKE AREA ATLIN GOLD PLACER GROUP NORTH WESTERN BRITISH COLUMBIA (ATLIN MINING DIVISION) FOR K.A. O'CONNOR 112C-255 WEST FIRST NORTH VANCOUVER B.C. BY M.D. KIERANS P. Eng. 059 37' North Latitude 133 23' West Longitude December 15, 1983 na: O'Connor: Dec. 23, 1983: MDK
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Page 1: MINERAL EVALUATIO REPORN T BECKER HAMME DRILLINR G … · Tina Group Th. e net operating profit before taxes, if indeed the potentia verifiel b ids drillingy i, s estimated to be

MINERAL EVALUATION REPORT

BECKER HAMMER DRILLING PROJECT TINA GROUP

MIDDLE AND UPPER OTTER CREEK

SURPRISE LAKE AREA

ATLIN GOLD PLACER GROUP

NORTH WESTERN BRITISH COLUMBIA

(ATLIN MINING DIVISION)

FOR

K . A . O'CONNOR 112C-255 WEST FIRST NORTH VANCOUVER B . C .

BY

M.D. KIERANS P. Eng.

059 37' North L a t i t u d e 133 23' West Longitude

December 15, 1983

na: O'Connor: Dec. 23, 1983: MDK

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MINERAL EVALUATION REPORT

BECKER HAMMER DRILLING PROJECT, TINA GROUP, MIDDLE AND UPPER OTTER CREEK, SURPRISE LAKE AREA,

ATLIN GOLD PLACER CAMP, BRITISH COLUMBIA

CONTENTS

Page

SUMMARY i

INTRODUCTION 1

LOCATION, ACCESS, PHYSIOGRAPHY, AND CLIMATE 2

OWNERSHIP AND PROPERTY 2

PLACER GEOLOGY 3

DRILLING METHOD 4

DRILLING RESULTS v 6

POTENTIAL, PLACER AND BEDROCK.. 9

PROBABLE AND POSSIBLE PLACER RESERVES 13

MINING CONSIDERATIONS 13

SUMMARY OF RESERVES AND POTENTIAL 15

DRILLING PROPOSAL 15

CONCLUSIONS 15

RECOMMENDATIONS 16

CERTIFICATE 17

BIBLIOGRAPHIC REFERENCES

APPENDICES

T i n a : 0 'Connor: Dec. 23, 1983: MDK:

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SUMMARY

The T i n a P l a c e r C l a i m Group of 5 c l a i m s i s loca ted a l o n g the M i d d l e and Upper reaches of Otter Creek, about 20 km e a s t o f the town o f A t l i n i n n o r t h w e s t e r n B r i t i s h C o l u m b i a . The c l a i m s a r e owned by K . A . O'Connor of West Vancouver, B . C .

A t l i n g o l d p l a c e r camp, i n a g l a c i a t e d a rea , has, i n g e n e r a l , r i c h and r e l a t i v e l y narrow T e r t i a r y channel g rave l p l a c e r s under u n f r o z e n g l a c i a l deposi t s of va ry ing t h i c k ­n e s s . T h e r e i s a known p lacer deposi t of t h i s type (Drain L e a s e M i n e ) p r e sen t ly being e x p l o i t e d i n a T e r t i a r y channel under abou t 80 f e e t o f t i l l and c l a y to the east of the present creek bed and about 2000 feet from Surp r i s e Lake.

The w r i t e r superv i sed a Becker hammer d r i l l i n g p ro jec t ( i n s i x h o l e s ) between September 10 and September 16, 1983, c o n s i s t i n g of 622.5 feet of d r i l l h o l e . As a r e s u l t of that p r o g r a m , the channel was l o c a t e d , and blocks of probable and p o s s i b l e p l a c e r o r e have been assigned along the d r i l l e d t r e n d o f t h e o l d c h a n n e l . In a d d i t i o n , p o t e n t i a l for the r e s t o f the creek upstream has been es t imated . A few notes on bedrock minera l p o t e n t i a l and e x p l o r a t i o n are o f f e r ed .

For t he d r i l l e d p a r t of the Tina c l a i m , the nor thern­most pa r t of the c l a i m group, the w r i t e r est imates there are 1 2 5 , 0 0 0 c u b i c y a r d s o f p r o b a b l e pay i n two horizons at a v e r a g e g r a d e o f 0.11 o z / C . Y . There are a l s o est imated to be 125 , 000 C . Y . o f p o s s i b l e pay of the same grade in the 1300 foot d r i l l e d zone. This means about 27,5000 ounces are i n t h e p r o b a b l e and p o s s i b l e c a t e g o r y a t T i n a c l a i m . U p s t r e a m f rom the d r i l l e d zone, e x p l o r a t i o n d r i l l i n g wi th a B e c k e r d r i l l s h o u l d t e s t a p o t e n t i a l of about 1.8 m i l l i o n cubic yards wi th an estimated p o t e n t i a l of 155,000 ounces.

I t i s e s t i m a t e d t h a t o v e r l y i n g the bur i ed o l d channel and pay zones are about 8.0 m i l l i o n C . Y . of g l a c i a l deposi t and i n t e r - p a y g r a v e l s t o be s t r i p p e d u s i n g m e c h a n i c a l methods a l o n g the 5 c l a i m length of Ot ter Creek covered by T i n a G r o u p . The ne t o p e r a t i n g p r o f i t b e f o r e taxes , i f i n d e e d the p o t e n t i a l i s v e r i f i e d by d r i l l i n g , i s estimated to be abou t $30.0 m i l l i o n at $400 US per ounce. A d r i l l i n g p r o j e c t o f a b o u t 9,000 feet i n about 90 holes at a cost of about $500,000 i s recommended.

- i -

T i n a : 0 ' C o n n o r : Dec. 23, 1983: MDK:

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ILLUSTRATIONS

Figure No. Subject Scale

1 Loca t ion Map 1:9,000,000

2 Topo Map, A t l i n Area 1:250,000

3 Cla im Map 1:50,000

4 Topo Map, Otter Creek 1:16,800

5 Survey Plan and

D r i l l e d Zones 1:5,000

6 D r i l l P lan 1:600

7 Cross -Sec t ions 1:600

APPENDICES

APPENDIX A :

APPENDIX B:

APPENDIX C:

APPENDIX D:

APPENDIX E :

APPENDIX F :

SLUICING AND PANNING RESULTS

PLACER CLAIMS AND LEASES OF TINA GROUP

BECKER HAMMER DRILL SYSTEM

FORMULAE USED

SUMMARY OF OLD HOLES

HOLE LOGS

T i n a : O'Connor: Dec. 23, 1983: MDK:

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MINERAL EVALU BECKER HAMMER DRILLING PROJECT, TINA GROUP,

MIDDLE AND UPPER OTTER CREEK, SURPRISE LAKE AREA, ATLIN GOLD PLACER CAMP, BRITISH COLUMBIA.

M. D. Kierans P .Eng . Dec. 22, 1983

INTRODUCTION

The i n t e n t o f t h i s repor t i s to present the r e s u l t s of a s i x - h o l e Becker hammer d r i l l i n g program on the Tina c l a i m o f the T i n a Group o f p l a c e r c l a i m s , on Middle and Upper O t t e r C r e e k o f A t l i n M i n i n g D i v i s i o n , i n N o r t h w e s t e r n B r i t i s h C o l u m b i a . I n a d d i t i o n , the p o t e n t i a l o f t h e u p s t r e a m s e c t i o n o f t h e T e r t i a r y bedrock channel , on the r e m a i n i n g f o u r c l a i m s of the group, w i l l be assessed. The T i n a p l a c e r c l a i m g r o u p i s owned by K . A . O'Connor of West Vancouver.

The d r i l l i n g p r o g r a m began on September 10, 1983 and was t e r m i n a t e d on Sep tember 1 6 , a f te r 622.5 feet of hole were pu t down a t s i x s epa ra t e d r i l l s t a t i ons i n the creek v a l l e y . T h e r e were no abandoned h o l e s and a l l o f the footage d r i l l e d was e f f e c t i v e footage.

The T i n a d r i l l p r o g r a m was pa id for by K . A . O'Connor bu t was , i n e f f e c t , the upstream t e s t i n g of the Otter Creek T e r t i a r y c h a n n e l t ha t had been d r i l l e d , by the w r i t e r , for a n o t h e r c l i e n t , on what i s c a l l e d the Dan Group of p lace r c l a i m s . Some of the data from that program has been used i n t he i n t e r p r e t a t i o n of channel l o c a t i o n , as descr ibed below, and a l s o the c h a r a c t e r i s t i c s of the stream g r a v e l s , as shown i n b o t h d r i l l p r o g r a m s , was used i n t h i s assessment of reserves and p o t e n t i a l of the Tina group.

In what f o l l o w s , an assessment of the bedrock minera l p o t e n t i a l o f t h e c l a i m g r o u p w i l l be o f f e r e d . The main t h r u s t of the repor t concerns p lacer p o t e n t i a l of the group, bu t because of some unusual d r i l l i n g r e s u l t s i n some ho le s , t h e p o s s i b i l i t y of bedrock e x p l o r a t i o n , on c e r t a i n sec t ions of the creek, w i l l be b r i e f l y d i scussed .

B e c a u s e s t r e a m d i v e r s i o n o f O t t e r C r e e k w i l l be r e q u i r e d b e f o r e e x p l o i t a t i o n of t h e p lacer p o t e n t i a l of T i n a G r o u p , o r t he downstream Dan Group, i s p o s s i b l e , the f e a s i b i l i t y of a j o i n t venture wi th Dan Group owners should be i n v e s t i g a t e d .

T i n a : 0 1 C o n n o r : D e c . 23, 1983: MDK: - 1 -

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Some a s p e c t s of p l a c e r g e o l o g y and ether aspects of p l a c e r o p e r a t i o n s at A t l i n Camp were discussed in other r e p o r t s , by the w r i t e r , f o r M r . O ' C o n n o r . I f p o s s i b l e , these reports should be at hand in reading what f o l l o w s .

LOCATION, ACCESS, PHYSIOGRAPHY AND CLIMATE

The T i n a f i v e - c l a i m g roup i s loca ted on Otter Creek, a b o u t 20 km east of the town of A t l i n , and about 4 km up the C r e e k . A t l i n i s l o c a t e d i n northwestern B r i t i s h Columbia. The r e g i o n a l t r a n s p o r t a t i o n and supply center for A t l i n i s a t W h i t e h o r s e i n the Yukon T e r r i t o r y . Please see Figures 1 to 4 for property l o c a t i o n .

A c c e s s to most of the c l a i m s , along the course of Otter C r e e k , i s by 4X4 rough roads on both s ides of the creek. One r o a d on the east s ide does reach the s i t e of the o l d storage dam a b o u t mid-way i n the group. E l e v a t i o n s i n the v i c i n i t y r a n g e from about 3000 feet at Su rp r i s e Lake and the mouth of O t t e r C r e e k t o about 3600 feet at the southern or upstream end o f t h e c l a i m g r o u p . In g e n e r a l , foot t r a v e l on the c l a i m s i s not d i f f i c u l t b e c a u s e o f the open and in some p l a c e s , p a r k l i k e v e g e t a t i o n .

T h e r e ? r e , i n the w r i t e r ' s o p i n i o n , many unanswered q u e s t i o n s c o n c e r n i n g t h e o r i g i n of the p lacer deposi ts of A t l i n Camp. Not t h e l e a s t of such ques t ions , concern the e p e i r o g e n i c and p h y s i o g r a p h i c h i s t o r y of the r e g i o n . No a t t e m p t w i l l be made to d i scuss such problems here, except t o n o t e that the w r i t e r has assumed u p l i f t at the end of the T e r t i a r y w h i c h p r o d u c e d the o l d bedrock channel i n which O t t e r C r e e k p lacer depos i t s have been found. There i s some doub t abou t the t iming of the u p l i f t . I t may have occured i n one o f t h e i n t e r g l a c i a l p e r i o d s . Discuss ion of these a s p e c t s o f t h e p h y s i o g r a p h y o f the camp must be deferred u n t i l more g e n e r a l s tudies of the camp have been completed b y o t h e r g e o l o g i s t s . F o r a d d i t i o n a l n o t e s on t h e p h y s i o g r a p h y of the d i s t r i c t the reader i s r e fe r red to other repor ts by the w r i t e r for Mr. O'Connor.

S l u i c i n g a t O t t e r Creek can be c a r r i e d out from about May 20 to October 1. These dates may vary cons iderably from y e a r t o year and a l so on e l e v a t i o n of the ope ra t i on . On the average there are about 200 f ros t free days per annum.

OWNERSHIP AND PROPERTY

The p l a c e r c l a i m s and leases of Tina Group are l i s t e d i n Appendix B . I have been informed by Mr. O'Connor that at

T i n a : O ' C o n n o r : D e c . 23, 1983: MDK: - 2 -

Page 7: MINERAL EVALUATIO REPORN T BECKER HAMME DRILLINR G … · Tina Group Th. e net operating profit before taxes, if indeed the potentia verifiel b ids drillingy i, s estimated to be

L O C A T I O N M A P SCALE \" * »*0 MILES APPROX

Mile* IOO O (OO 200 BOO Mil** FIGURE I

Page 8: MINERAL EVALUATIO REPORN T BECKER HAMME DRILLINR G … · Tina Group Th. e net operating profit before taxes, if indeed the potentia verifiel b ids drillingy i, s estimated to be

TOPO M A P , ATLIN A R E A SCALE i : 250,000

j a m ^ . r \ i ) f j

FIGURE 2

Page 9: MINERAL EVALUATIO REPORN T BECKER HAMME DRILLINR G … · Tina Group Th. e net operating profit before taxes, if indeed the potentia verifiel b ids drillingy i, s estimated to be

K. O'CONNER A T L I N P R O P E R T Y

ATLIN - OTTER CREEK AREA ATLIN MINING DIVISION , B.C.

S C A L E IN M E T R E S

IOOO 2 0 0 0 3 0 0 0

S C A L E :

I :so.ooo OR A W N B Y :

M . O . K D A T E :

O E C E M B E R , 1983

FIGURE 3

Page 10: MINERAL EVALUATIO REPORN T BECKER HAMME DRILLINR G … · Tina Group Th. e net operating profit before taxes, if indeed the potentia verifiel b ids drillingy i, s estimated to be

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Page 11: MINERAL EVALUATIO REPORN T BECKER HAMME DRILLINR G … · Tina Group Th. e net operating profit before taxes, if indeed the potentia verifiel b ids drillingy i, s estimated to be

p r e s e n t he i s the s o l e owner of the c l a i m g r o u p . He pu rchased the placer leases and c la ims from Mrs. T. Connolly of A t l i n E . C . In a d d i t i o n to the p u r c h a s e d claims Mr. O ' C o n n o r a r r a n g e d fo r the s t a k i n g of f i v e a d d i t i o n a l p r o t e c t i o n bench c l a i m s along the east s ide of the creek. Please see Figures 3 and 4 for c l a im l o c a t i o n s .

PLACER GEOLOGY

D e s p i t e the above mentioned u n c e r t a i n t i e s about broad and g e n e r a l p h y s i o g r a p h i c con t ro l s for p lace r depost ion i n A t l i n camp, t h e r e do remain a number of p lacer g e o l o g i c a l f ac to rs use fu l i n exp lo ra t i on at the camp. These a re :

1. Mos t o f t he p r o d u c t i v e creeks have been under la in by r o c k s o f t h e " Gold S e r i e s " . These creeks are under la in by r o c k s o f t h e Cache Creek Group of Pennsylvanian age. They have been i n t r u d e d by, u s u a l l y s e r p e n t i n i z e d , s i l l s , dikes and i r r e g u l a r plugs of u l t r a b a s i c compos i t ion .

2 . The " G o l d S e r i e s " i n c l u d e c h e r t , a r g i l l i t e , che r t -p e b b l e c o n g l o m e r a t e , and der ived q u a r t z i t e and s c h i s t and some l i m e s t o n e . Greenstone, v o l c a n i c greywacke and der ived a m p h i b o l i t e a r e c o n s i d e r e d by t h e w r i t e r to be the main s o u r c e r o c k s f o r t he g o l d m i n e r a l i z a t i o n of the p l a c e r s . Shear z o n e s , quartz veins and v e i n l e t s , p y r i t i z e d zones and o t h e r g o l d - e n r i c h e d a l t e r a t i o n zones o f v a r y i n g widths i n t h e s e r o c k s con t r ibu ted most to p l ace r depos i t i on during l o n g per iods of gent le u p l i f t , combined wi th e ros ion i n warm c l i m a t e s .

3 . I f one i s j u s t i f i e d i n g e n e r a l i z i n g from experience at O t t e r C r e e k , t h e n g o l d p l a c e r s a t A t l i n a r e found i n U - s h a p e d b e d r o c k c h a n n e l s p r o d u c e d by renewed vigorous u p l i f t a t t h e end of a l o n g p e r i o d o f g e n t l e u p l i f t — p o s s i b l y at the end of the T e r t i a r y .

4 . These c h a n n e l s a r e u s u a l l y n a r r o w and may conta in s e v e r a l l a y e r s or h o r i z o n s o f c o b b l e - b o u l d e r g r a v e l s c o n t a i n i n g u n u s u a l l y h i g h amounts of coarse raw g o l d . In a d d i t i o n t o the h i g h e r h o r i z o n s there i s almost always a v e r y r i c h b e d r o c k l a y e r . The r imrock , where weathered, as w e l l as the bedrock i n the channel bottom, may often conta in h i g h amounts of go ld i n the f rac tures and s c h i s t or bedding f o l i a t i o n p l a n e s . The channels may be as wide as 200' at t h e b o t t o m , at l e a s t i n the lower reaches of a creek, to an a v e r a g e o f a b o u t 1 0 0 ' . The depth of the channel , which i n places can be g o r g e - l i k e , i s seldom over 80 fee t .

5 . C l a y e y t i l l s t r a t a o v e r l y i n g the product ive horizons u s u a l l y c o n t a i n n o n - c o m m e r c i a l amounts o f f i n e g o l d .

T i n a : O ' C o n n o r : D e c . 23, 1983: MDK: - 3 -

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6 . F i n a l l y , the g l a c i a l episodes of the l a t e Cenozoic have b u r i e d or m o d i f i e d the c h a n n e l s , mainly by depos i t ion of t h i c k s e q u e n c e s of e i the r f l u v i a t i l e sediments or unsorted t i l l . In some c a s e s , i t i s pos s ib l e that g l a c i a l scouring has removed o l d p l a c e r s from the channels . Some g l a c i a l d e p o s i t s o v e r l y i n g the r i c h o l d channels have been measured to be i n excess of 300 f ee t . In most places barren g l a c i a l ma te r i a l has seldom exceeded 100 feet above the channels .

7 . G o l d f i n e n e s s f o r A t l i n p l a c e r s averages about 800. C o a r s e g o l d and l a r g e nuggets are c h a r a c t e r i s t i c of A t l i n p l a c e r c r e e k s , i n d i c a t i n g , o f c o u r s e , s h o r t t r a n s p o r t d i s tance from primary sources .

8 . I cannot vouch for the accuracy of the f o l l o w i n g p lacer g e o l o g y p r i n c i p l e f o r A t l i n camp, but workers in the camp f o r the e a r l i e s t p r o d u c t i v e p e r i o d s have b e l i e v e d that m i d d l e and upper p a r t s o f creeks tended to be r i c h e r than lower s e c t i o n s .

DRILLING METHOD

The t r u c k - m o u n t e d B e c k e r hammer d r i l l of 6 5/8" pipe c a p a c i t y was used for d r i l l i n g the t e s t h o l e s . Please see A p p e n d i x C for d e s c r i p t i o n of the Becker method of d r i l l i n g and d e s c r i p t i o n of the truck-mounted d r i l l . In a d d i t i o n to t h e c o m p r e s s o r mounted on the d r i l l t ruck we used an a u x i l ­i a r y or b o o s t e r c o m p r e s s o r o f 750 cfm c a p a c i t y . This c o m p r e s s o r was mounted on a t r u c k . A t h i r d t ruck was used f o r p i p e and w a t e r t a n k t r anspo r t a t i on and pipe h a n d l i n g . My e x p e r i e n c e wi th the d r i l l i n g of about 5,000 feet of hole i n s i m i l a r m a t e r i a l on Dan Group had been most f avo rab l e .

B e l o w a r e some o f the advantages of the Becker hammer d r i l l system:

1. R a p i d d r i l l advance i s inheren t i n the system. The w r i t e r has d r i l l e d as much as 400 f ee t i n one s h i f t , i n v e r y f a v o r a b l e format ions . Our average ra te of advance per s h i f t d u r i n g Phase I d r i l l i n g a t Dan Group was about 70 f e e t . A v e r a g e ra te of advance was about 100 feet per s h i f t for the Tina D r i l l i n g P r o j e c t .

2 . The s y s t e m i s r u g g e d and there was very l i t t l e down­t i m e d u r i n g t h e d r i l l p r o g r a m b e c a u s e o f m e c h a n i c a l f a i l u r e s .

3 . The d r i l l a d v a n c e s the "cas ing" i n step wi th the b i t a d v a n c e so that the p i t f a l l s i n v a l u i n g p lacer deposi t s wi th

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uncased h o l e s a re a v o i d e d . Also the b i t advance is never-ahead of " c a s i n g " —except in s p e c i a l cases when percussion d r i l l i n g i s used ins ide the inner p i p e . The outer pipe i s , of course, the " c a s i n g " .

4 . The re i s no chemical contamination of the sample from d r i l l i n g a d d i t i v e s . Only a i r and water touch the sample.

5 . The e f f e c t i v e s i z e of the d r i l l p ipe i s greater than 5 and a h a l f i nches , when using a ' c r o w d - i n ' b i t . This gives a v a l i d sampling volume or weight for g rave l penet ra ted .

6 . My e x p e r i e n c e w i t h t he d r i l l i s that i t undoubtedly l i f t s coarse gold p a r t i c l e s , i n f a c t , almost 2 grams of gold m a i n l y as smal l nuggets, for a s i x foot sample were a c t u a l l y l i f t e d during t h i s Tina p ro jec t (hole S083-53).

7. F i n a l l y , p r o v i d e d t h e r e i s a geo log i s t at the d r i l l d u r i n g the d r i l l i n g o p e r a t i o n , i t i s pos s ib l e to prepare l o g s from which va luab le g rave l s ec t ion i n t e r p r e t i o n s can be made.

The samples from the d r i l l hole were c o l l e c t e d i n la rge r u b b e r t u b s b e l o w the cyclone and bagged every two feet of d r i l l a d v a n c e . The s a m p l e s were ' a i r - f l u s h e d ' every two f e e t and w a t e r - f l u s h e d a t t h e h o l e bottom. In c r i t i c a l s e c t i o n s o f a h o l e s w a t e r - f l u s h i n g can be done every two f ee t .

A l l o f t h e g r a v e l bagged was p r o c e s s e d during Tina D r i l l i n g P r o j e c t . The s l u i c e box used was a " l i ve -bo t t om" " c l e a n - u p " box which was l o c a l l y purchased. The r i f f l e area was abou t 4 s q u a r e feet and the r i f f l e s pulsa ted in unison a t r a t e u s u a l l y a b o u t 150 t i m e s per m i n u t e . A 1 1/2" g a s o l i n e pump p r o v i d e d s l u i c i n g and w a s h i n g w a t e r . A v i b r a t i n g screen c l a s s i f i e d the g rave l to under 1/4" before s l u i c i n g .

We found t h a t we cou ld s l u i c e a s i x foot sample before p a c k i n g the r i f f l e s . This v a r i e d somewhat wi th c l a y content o f the s a m p l e . N o r m a l l y a 200 pound s i x - f o o t sample was r e d u c e d to about 25 pounds of concent ra te . This concentrate was then mechanical ly panned using a 20" Morfee s p i r a l mech­a n i c a l panner or " w h e e l " . The f i n a l concentrate from the " w h e e l " , u s u a l l y o n l y a few ounces , was hand panned i n a g o l d pan and the raw go ld "co lours" and specks placed i n a p l a s t i c v i a l . The go ld content for each sample was weighed w i t h an e l e c t r o n i c s c a l e . The sample bags were a l so weighed us ing a simple bathroom s c a l e .

Appendix A shows the d e t a i l e d r e s u l t s of the s l u i c i n g

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and p a n n i n g f o r the h o l e s d r i l l e d on the p r o j e c t . The w e i g h t i n g formulae used for these computer generated tables a r e shown i n A p p e n d i x D. The computations for the tables were made u s i n g an s p r e a d s h e e t p r o g r a m prepared by the wr i t e r .

D r i l l s i t e s and d r i l l r o a d s were made by a D8 b u l l ­d o z e r . D r i l l hole c o n t r o l was by p i c k e t l i n e base l i n e and t a p e and c o m p a s s . S u r v e y p o i n t s , e s t a b l i s h e d during a l o c a t i o n l i n e s u r v e y of the c la ims by McElhenney Surveying L t d . o f Vancouver , were a l so used. V e r t i c a l c o n t r o l was by hand held c l inometer and home-made l e v e l l i n g rod .

DRILLING RESULTS

D r i l l i n g r e s u l t s w i l l be descr ibed in the next three s e c t i o n s o f t h i s r e p o r t . T h i s s ec t i on w i l l be concerned w i t h t he q u a l i t a t i v e d e s c r i p t i o n s of the s ec t ion of grave ls i n the c r e e k v a l l e y and t h e i r r e l a t i v e go ld content , as d e t e r m i n e d by d r i l l h o l e s . The s e c t i o n f o l l o w i n g w i l l use i n f o r m a t i o n f rom t h i s s e c t i o n and from maps of previous owners and operators of the proper ty to assess the p o t e n t i a l o f t he c l a i m s , u s i n g a l l a v a i l a b l e d e t a i l e d and general i n f o r m a t i o n . In the next s e c t i o n I w i l l attempt to quant i fy t he d a t a and informat ion from the two preceding sec t ions i n o r d e r to of fer an estimate of probable and p o s s i b l e reserves for the c l a i m s .

I t was part of the i n s t r u c t i o n s from Mr. O'Connor, wi th w h i c h I a g r e e d , t h a t the creek v a l l e y on Tina Cla im should be d r i l l e d on s e c t i o n a l l i n e s 400 feet apa r t . Because the v a l l e y o f t he c r e e k became n a r r o w e r u p s t r e a m from the bounda ry wi th Rose Cla im (please see F igure 4, 5 and 6) only two h o l e s c o u l d be d r i l l e d per l i n e a t r o u g h l y 50 foot c e n t e r s . T h i s l i m i t e d , o f c o u r s e , t he p r o g r a m to an e x p l o r a t i o n and no t a development venture . That i s , wi th so few h o l e s i t w o u l d not be p o s s i b l e to determine proven r e se rves .

The t o t a l l e n g t h of the e x p l o r e d sec t ion of the o l d c h a n n e l i s t hus abou t 1 2 00 fee t . Because a s ec t i on l i n e , d r i l l e d d u r i n g the Dan Group program i s a c t u a l l y on Tina G r o u n d , we have d r i l l informat ion for about 1300 feet of the channel on Tina c l a i m .

As i t t u r n e d out , my i n t e r p r e t a t i o n of the o l d channel i n d i c a t e s t h a t we tes ted the f u l l width of the channel only on l i n e T - 3 . The other l i n e s (Lines 1 and 2—see Figures 5 and 6) were on the margins of the channel .

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T a b l e I shows a t i m e t a b l e of the d r i l l h o l e s and d e p t h s , e t c . Appendix A i s a computer-generated summary of the s l u i c i n g and panning r e s u l t s in graces per cubic yards per i n t e r v a l . Appendix F i s the logs of the ho les .

T h e r e a r e two h o r i z o n s of p o t e n t i a l pay g r a v e l i n d i c a t e d by the c r o s s - s e c t i o n s o f F igu re 7 . The upper h o r i z o n w i l l be c a l l e d the "B" h o r i z o n . I t i s about 30 feet t h i c k and about 30 to 60 feet below the surface of the creek v a l l e y . The second horizon i s at bedrock, or jus t above i t , i n w e a t h e r e d bedrock and g r a v e l . This hor izon i s cons ide r ­ed to be about 12 feet t h i ck and i s made up of about 6 feet o f pay g r a v e l and 6 feet of weathered bedrock. Wi th in the b e d r o c k c h a n n e l o f presumed T e r t i a r y o r i g i n - - d u e to u p l i f t a t t he end o f the T e r t i a r y - - t h e r e i s a l a y e r of mostly b a r r e n " w a t e r s a n d " . The bedrock pay hor izon occurs jus t below t h i s "water sand" layer or s t r a t a .

T h i s c o a r s e "wa te r s a n d " l a y e r - - s o named by the d r i 1 l e r s - - c o n s i s t s o f a h e a v i l y w a t e r cha rged layer of c o a r s e sand of v a r i a b l e t h i c k n e s s . I t v a r i e s from about 10 to 20 feet t h i c k . Occas iona l ly there are two layers of t h i s "water sand".

The p r e s e n c e o f t h i s "water sand" l aye r i s d i a g n o s t i c of t he p r e s e n c e o f the U-shaped bedrock T e r t i a r y channel . T h i s i s so b e c a u s e wate r seepage i n t o the channel cannot e s c a p e and must go downstream above the impervious bedrock or t he somewhate c l a y e y l a y e r jus t above bedrock. Water f l o w d u r i n g p e n e t r a t i o n of the "water sand" was very high and r e s u l t e d i n v e r y heavy two foot samples. A i r pressure i n the p i p e s f o r c e d up abou t t r i p l e the amount of normal d r i l l r e tu rn m a t e r i a l .

The g e o l o g i c a l r e l a t i o n s found abGve on Tina c l a i m were c o n s i s t e n t w i t h r e l a t i o n s found d o w n s t r e a m on the Rose c l a i m o f Dan G r o u p . More study w i l l be needed to detemine the g e o l o g i c a l r e l a t i o n s h i p of the " B " hor izon wi th other g r a v e l s of the creek c r o s s - s e c t i o n . I suspect that there i s a r e l a t i o n between the "B" hor izon and a c layey s i l t y brown l aye r w i t h i n or jus t below the "B" hor izon .

T h e r e may be a t h i r d layer of pay i n the t i l l above the c r e e k v a l l e y . T h i s weak p o s s i b i l i t y may be i nd i ca t ed by some v a l u e s found in the t i l l i n the D o r f l i n g e r shaft high up in that o l d opening.

L i n e s 1 and 2 were r e a l l y not t e s t s o f the whole c h a n n e l a t a l l . And so a grade average based, i n any way, on a v e r a g i n g the d r i l l r e s u l t s for the two horizons on the three l i n e s cannot be v a l i d .

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I t must be n o t e d t h a t the r e s u l t s on d r i l l l i n e 1 of Rose c l a i m d r i l l i n g , f o r the Dan o r i l l i n c p r o j e c t , (but a c t u a l l y on Tine ground) i n d i c a t e d very good grace ma te r i a l i n two h o l e s . The re was a h i g h grade sec t ion jus t above b e d r o c k and t h e r e was a h i g h g r a d e " B " h o r i z o n s ec t i on i n d i c a t e d i n the easternmost hole of the s e c t i o n . Between were h o l e s o f v e r y low t o n e g l i g i b l e grade. There i s no doubt t h a t the g o l d r e c o v e r e d in the d r i l l holes of both p r o j e c t s i s coarse g o l d . In t h i s respect i t i s important to no te some comments by A . F . D a i l l y in h is 1946 report on page 19 ( 7) . "Coarse go ld i s a c h a r a c t e r i s t i c of the pay g rave l s of t h i s v i c i n i t y and i s a l s o n o r m a l l y present i n p lacer d e p o s i t s c o n t a i n i n g a l a r g e percentage of boulders as at O t t e r C r e e k . Experience in a number of places where coarse g o l d was p r e s e n t has demonstrated that t rue average values a r e not d e t e r m i n e d by d r i l l i n g and t h a t such ground i s t h e r e f o r e g r o s s l y under-va lued . Shafts or caissons are the only s a t i s f a c t o r y method of p r o s p e c t i n g . "

Today s h a f t s or c a i s s o n s are not p r a c t i c a l methods of e x p l o r a t i o n at Tina group. Even i f shafts were put down an the a s s i g n m e n t c f p r o v e n g r a d e from these openings would r e m a i n somewhat-, h a z a r d o u s . I t i s a l w a y s dangerous to a s s i g n g r a d e to c o a r s e g o l d deposi ts before a bulk mining t e s t . Of c o u r s e , the problem i s that bulk t e s t i n g requi res a l m o i t as much c o s t l y p r e p a r a t i o n work and equipment as a f u l l s c a l e mining o p e r a t i o n . One way out of the dilemma may be to use 9" Becker d r i l l h o l e s . Or , i f p o s s i b l e , to design an i n t e r m e d i a t e s i z e p i p e ( s ay 7 1/2") and d r i l l longer d r i l l l i n e ' s and deeper holes at c l o s e r i n t e r v a l s . Another s o l u t i o n could be to s imply consider a bulk mining t e s t as a form o f d e v e l o p m e n t a n d / o r e x p l o r a t i o n expense. From the tax point of view t h i s approach may have some advantages.

N e v e r t h e l e s s , we are not at a t o t a l impasse i n a s s i g n ­ment o f g r a d e to the two horizons of the o l d bedrock chan­n e l . Some o f the h o l e s returned remarkably good grade i n the two h o r i z o n s . Other holes returned much lower grade, i n f a c t , b e l o w c o m m e r c i a l g r a d e i n the two h o r i z o n s . In my o p i n i o n , i t w o u l d be as g r i e v o u s an er ror to d ismiss the p o t e n t i a l o f the c r e e k b e c a u s e of t h i s , as to ass ign too o p t i m i s t i c a g r a d e to the p l a c e r d e p o s i t s o f the o l d c h a n n e l . Somewhere i n b e t w e e n , and keeping i n mind the D a i l l y p r i n c i p l e c i t e d above, i s the proper approach. So i n what f o l l o w s I have summed a l l t h a t i s known about the h i s t o r y o f p r o d u c t i o n a t O t t e r C r e e k , both upstream and downstream of the d r i l l e d zone, and assigned probable b locks a n d p o s s i b l e b l o c k s t o t h e p resumed t r e n d of t h e o l d channel .

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POTENTIAL, PLACER ANT BEDROCK

A b o v e , or u p s t r e a m of the d r i l l e d zone of Tina Group, on T i n a c l a i m i t i s not p o s s i b l e to t a l k of reserves of any c a t e g o r y . The f a r b r o a d e r ca t ego ry of assessment of the e c o n o m i c v a l u e of any p lacer creek, that i s , the p o t e n t i a l of a creek i s used.

As mentioned above the d r i l l i n g r e s u l t s do warrant some c o n s i d e r a t i o n o f t he b e d r o c k p o t e n t i a l of the p roper ty . T h i s a s s e s s m e n t i s w a r r a n t e d b e c a u s e of some impressive s u l p h i d e m i n e r a l i z a t i o n f o u n d i n bedrock i n some h o l e s . A l s o a n a l y s i s o f i n d i c a t e d gougey shear zones coupled wi th o b v i o u s p h o t o l i n e a r s (and other l ineaments) do i n d i c a t e an i n t e r s e c t i o n a l zone w i t h i n the c l a i m group.

The t r e n d of the ancient channel w i l l more than l i k e l y p a r a l l e l t h e present Ot ter Creek. However, i t may, for some s e c t i o n s o f t he c r e e k , d ive rge from i t . D r i l l i n g w i l l be e s s e n t i a l for l o c a t i n g t h i s channe l . In t h i s respec t , i t i s no t c l e a r why the c o s t l y D o r f l i n g e r shaft (please see F igure 5) was l o c a t e d where put down i n the l a t e 1930 ' s . I t does seem c l e a r from d r i l l r e s u l t s and p ro j ec t ions upstream from o t h e r d r i l l l i n e s that the shaft i s , at l e a s t , 400 feet from the c h a n n e l . I n f a c t , the shaft was probably intended to s e r v e as a s i t e from w h i c h d r i f t s would be put westward t o w a r d s t h e c h a n n e l . I t i s known t h a t t he s h a f t was e v e n t u a l l y l o s t due to excess ive water flow which could not be a d e q u a t e l y c o n t r o l l e d . I t was bottomed at about 100 f e e t . A s h o r t d r i l l h o l e was pu t down at shaft bottom. T h i s found b e d r o c k at a t o t a l depth of 127' below su r face . One h o l e of about 100 feet i n depth, put down about 400 feet t o t he w e s t , found bedrock but s i g n i f i c a n t go ld values were no t e n c o u n t e r e d i n the d r i l l h o l e . The shaft and the d r i l l h o l e s c o n s t i t u t e d D r i l l l i n e #2. Please see Figures 4 and 5 . V a l u e s i n the s h a f t were e s s e n t i a l l y n e g l i g i b l e but D a i l l y (7) does report some values i n the upper part of the s h a f t . Because of the 1983 d r i l l program i t does now seem c l e a r t h a t t h e n e g a t i v e r e s u l t s o f L i n e # 2 are r e a d i l y e x p l a i n e d . Tha t o l d d r i l l l i n e was too far east of the p re sen t ly in t e rp re t ed channel l o c a t i o n .

L i n e #4 w h i c h was probably put down in l a t e 1930 ' s , on the c o n t r a r y d i d encounter s i g n i f i c a n t va lues . Please see F i g u r e 4 f o r l o c a t i o n of the d r i l l l i n e . For the d e t a i l e d l o g s o f t he e i g h t h o l e s d r i l l e d on t h i s l i n e , provided by D a i l l y , p l e a s e see A p p e n d i x E . Some o f the holes were n e g a t i v e bu t o t h e r s d i d show some s i g n i f i c a n t values both f o r t he bedrock hor izon and p o s s i b l y the M B " h o r i z o n . I t i s no t p o s s i b l e t o c a l c u l a t e a value per cubic yard from the o l d r e s u l t s but they were probably over 0.05 o z / C . Y .

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Most of the values are i nd i ca t ed to be c lose to bedrock but some must have come from h i g h e r in the ho les . The s e c t i o n on the c h a n n e l , as shewn in D a i l l y ' s i l l u s t r a t i o n s f o r h i s r e p o r t , i s n a r r o w e r t h a n i n d i c a t e d by the 1983 d r i l l i n g f o r downs t r eam p o r t i o n s of the channel . Never­t h e l e s s , i t i s c o n s i d e r e d h i g h l y s i g n i f i c a n t f o r the e c o n o m i c p o t e n t i a l o f the creek that an o l d l i n e of churn d r i l l h o l e s abou t 6000 feet upstream from Line T - 3 , found the c h a n n e l and t h e r e was g o l d in i t . The d r i l l l i n e i s about 1000 feet upstream from the o l d storage dam.

In t h i s c o n n e c t i o n , when I w o r k e d on the c la ims in M a r c h of t h i s y e a r , f o r a n o t h e r c l i e n t , I was t o l d by a l o c a l and fo rmer p l a c e r mine o p e r a t o r tha t , near an o l d d r i l l s h a c k a n o t h e r l i n e of d r i l l holes were put down. I f t h i s i s i n d e e d s o , then there was an unreported d r i l l l i n e on ly about 3000 feet upstream from l i n e T - 3 .

T h e r e a r e t h r e e i m p o r t a n t f ac to rs i n cons ider ing the p o t e n t i a l o f t he c r e e k . The f i r s t i s , unsuspected and k n o w n , confluence zones. These zones, t h e o r e t i c a l l y , should be e n r i c h e d z o n e s . T h e r e i s a most obvious one where the West and the East Forks of Otter Creek meet at the southern end o f t h e c l a i m g r o u p . N o r t h o f t h i s zone, w i t h i n the O t t e r C r e e k s t r e a m v a l l e y , ^ i n t he o l d channel , for some d i s t a n c e downs t r eam the g rave l s should be enriched by both t h e e f f e c t s o f p o s s i b l e g r a d i e n t c h a n g e s , and a l so the d r a i n a g e from s i z a b l e basins being un i t ed i n the one v a l l e y o f O t t e r Creek. I t would seem reasonable to expect that o l d pups or t r i b u t a r i e s o f O t t e r C r e e k c o u l d enr ich the o l d v a l l e y by c o n f l u e n c e . The p o s s i b i l i t y of such zones does enhance the p o t e n t i a l of the group.

The s e c o n d f a c t o r i s the bedrock geology. I t i s the w r i t e r ' s o p i n i o n , b a c k e d by some o t h e r s , that the most f a v o r a b l e b e d r o c k a t the camp i s greeenstone v o l c a n i c s , w h e t h e r s c h i s t o s e or n o t . I t i s i n s t r u c t i v e to note that t h e most p r o d u c t i v e bedrock of Klond ike p lacer camp i s the K l o n d i k e S c h i s t f o r m a t i o n . T h i s f o r m a t i o n i s m a i n l y s c h i s t o s e a n d e s i t i c v o l c a n i c s . By comparing the c l a i m map w i t h A i t k e n ' s g e o l o g i c a l map of the area i t appears that the g r e e n s t o n e part of the "Gold Se r i e s " s t a r t s about D r i l l Line T-3 and ends about at o l d D r i l l Line #4. Please see Figure 5 and a l so A i t k e n ' s map.

The f i n a l f a c t o r a f f e c t i n g the p o t e n t i a l of the group i s t h e i n t e r p r e t a t i o n , from the d r i l l e d bedrock m i n e r a l i z ­a t i o n and l ineament a n a l y s i s , that the Ot ter Creek may have i n f a c t f o l l o w e d a g o l d m ine ra l i z ed shear zone for a good par t of i t s course . I t i s not expected that the shear

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zone w i l l c o n t a i n s i g n i f i c a n t gold for a l l of i t s length (any more than the Larder Lake Break of Ontar io c a r r i e s gold f o r a l l of i t s l e n g t h ) but i t i s an important c o n t r o l l i n g f a c t o r . C o n c e n t r a t i o n s of g o l d m i n e r a l i z a t i o n could be e x p e c t e d a t i n t e r s e c t i o n a i or f l e x u r e zones a l o n g the suspected shear zone.

I t i s o f some i n t e r e s t t h a t t h e w r i t e r observed an a p p a r e n t l y a c t i v e f a u l t , of some two or three feet thrus t d i s p l a c e m e n t w i t h i n the Drain Lease open p i t . This p i t i s a b o u t 2000 f e e t from Surp r i se Lake and east of the present c o u r s e of Otter Creek. I t i s unusual to see an a c t i v e f au l t i n u n c o n s o l i d a t e d s e d i m e n t s . The s t r i k e of the f a u l t was a b o u t N-S and d i p was a l m o s t v e r t i c a l . This f a u l t would l i n e up w i t h gouge zones that the w r i t e r found i n many of the d r i l l ho les on Tina and Rose c la ims on the west s ide of t he c r e e k . The shear zone, i n d i c a t e d by the d r i l l r e s u l t s in t h e c r e e k v a l l e y , i s abou t 2500 f e e t l o n g i n a N-S d i r e c t i o n .

A i r pho to s t u d y i n d i c a t e s that the upper Snake Creek v a l l e y a c t u a l l y f o l l o w s an important lineament and t h i s l i n e a m e n t i n t e r s e c t s the f a v o r a b l e r o c k s and the N-S s h e a r zone upstream of l i n e T - 3 . I t i s a l s o most important , no t o n l y f o r p l a c e r depos i t i on that there i s a p o s s i b i l i t y o f r e l a t i v e l y r i c h source rocks for the g o l d , but there i s a l s o the p o s s i b i l i t y t h a t t h e r e c o u l d be an impor tan t b e d r o c k zone o f g o l d m i n e r a l i z a t i o n w i t h i n , or near, Otter Creek v a l l e y on the Tina Group.

F i n a l l y , f o r t h i s n o n - q u a l i t a t i v e assessment of the p o t e n t i a l o f t h e c r e e k , i t s h o u l d be ment ioned that i n d r i l l i n g the bedrock of holes S083-52 and 53 some very black ' r e t u r n ' w a t e r was found i n the h o l e s . Chips of sch i s tose a n d e s i t e bedrock here showed heavy f i ne gra ined p y r r h o t i t e , a r s e n 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 (over 30% s u l p h i d e s ) . No samples were t a k e n f o r a s s a y o f t h i s m i n e r a l i z a t i o n . T h i s type of m i n e r a l i z a t i o n was not seen in any of the other h o l e s . O b v i o u s l y the p lacer operator who mines to bedrock and can a s s e s s t h i s m i n e r a l i z a t i o n i n p lace and a l so sample i t , w i l l be i n a good p o s i t i o n f o r e x p l o r a t i o n o f the b e d r o c k p o t e n t i a l of the Otter Creek v a l l e y on Tina Group. K . A . O ' C o n n o r does not c o n t r o l the bedrock mineral r i g h t s on Tina ground.

The upstream end of o l d h y d r a u l i c k i n g operat ions on the C r e e k c o i n c i d e s w i t h about the p o s i t i o n of l i n e T - 3 . The d e p t h o f t i l l i n banks above the creek v a l l e y i s markedly l e s s t h a n downs t ream on Rose C l a i m , where the hydraul icked banks a r e as h i g h as 100 f e e t above the stream of Otter C r e e k . T h i s a f a v o r a b l e development i n t ha t , p o s s i b l y , we w i l l be a b l e to d r i l l f rom t h e banks to the o l d channel b o t t o m . T h i s c o u l d not be done wi th the hammer d r i l l that was used i n the downstream program.

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The c l a i m s a r e each about one hal f mile in length or about 2600 f e e t . The poss ib l e length of the creek covered by T i n a Group c l a i m s i s about 2 and 1/2 m i l e s or about 13 ,000 f e e t . Of t h e s e one h a l f of T i n a c l a i m w i l l be d i s c u s s e d i n t e rms of p r o b a b l e and p o s s i b l e o r e . The r e m a i n i n g 2 and 1/4 m i l e s or abou t 1 2 , 0 0 0 feet w i l l be discussed i n terms of p o t e n t i a l of the creek .

T h e r e a r e two s e p a r a t e main sec t ions of the creek in te rms of p o t e n t i a l . The f i r s t s ec t ion comprises about two and t h r e e q u a r t e r c l a i m l e n g t h s or about 7000 fee t . The second sec t ion i s about two c l a i m lengths and i s about 5,000 f e e t l o n g . The f i r s t s ec t ion i s jus t upstream of the Tina c l a i m and b e l o w the storage dam. Here i t i s expected that the f a v o r a b l e g r e e n s t o n e b e d r o c k w i l l r e s u l t i n r i c h e r p l a c e r d e p o s i t s . Upstream of t h i s s e c t i o n , not only should the b e d r o c k be the l e s s favorable sediments, but gradient s h o u l d be l e s s and the c h a n n e l narrower. I t i s expected t h a t p l a c e r d e p o s i t s here w i l l be somewhat lower grade and lower i n volume per foot of channel .

I t i s e x p e c t e d , based on d r i l l i n g r e s u l t s , not only on T-3 b u t on o t h e r l i n e s o f Dan G r o u p , t h a t width of "B" h o r i z o n w i l l be a b o u t 120 feet wi th th ickness of about 30 f e e t . F o r a l e n g t h o f the channel of 100 feet t h i s means abou t 13 , 000 C . Y . per hundred feet of channel . There are abou t 70 such l e n g t h s or a p o t e n t i a l for "B" hor izon of abou t 0 .9 m i l l i o n C . Y . The bedrock hor izon should have a s i m i l a r w i d t h and about 12 feet t h i c k n e s s . This r e s u l t s i n abou t 5,000 cubic yards per hundred feet of channel or about 400 ,000 C . Y . for the f i r s t s e c t i o n . The t o t a l p o t e n t i a l i n c u b i c yards for the f i r s t s ec t i on i s about 1.3 m i l l i o n cubic yards for both p o t e n t i a l h o r i z o n s .

U p s t r e a m , f o r the upper two cla ims i t seems reasonable to r e d u c e the s i z e of the p o t e n t i a l channel . This reduced s i z e i s i n d i c a t e d i n t he c r o s s - s e c t i o n f o r L i n e #4 of D a i l l y ' s map. I have r e d u c e d the c u b i c y a r d s of both h o r i z o n s t o abou t 10 , 000 c u b i c yards per hundred foot of c h a n n e l . T h i s means that about 0.5 m i l l i o n cubic yards of o o t e n t i a l pay i n the channe l may be proven by d r i l l i n g on the two southernmost c l a i m s . The t o t a l yardage p o t e n t i a l i s then abou t 1.8 m i l l i o n cubic yards . The p o t e n t i a l grade of t h i s m a t e r i a l and the r e s u l t a n t ounce p o t e n t i a l w i l l be d i s c u s s e d b e l o w a f t e r c o n s i d e r a t i o n of the probable and pos s ib l e reserves for the d r i l l e d block of Tina c l a i m .

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Because of the r e s u l t s shewn in Appendix A and in the c r o s s - s e c t i o n s of F i g u r e 7 i t i s considered tha t , despi te the poor r e s u l t s of d r i l l i n g on l i n e s T - l and T-2 , the very good r e s u l t s of " B " h o r i z o n in S083-53 are s i g n i f i c a n t in t e rms of expected grade. Hole S083-53 gave 22 feet of 0.48 o z / C . Y . i n "B" h o r i z o n . Hole S083-52 gave only 0.02 o z / C . Y . f o r an e q u i v a l e n t t h i c k n e s s i n the same h o r i z o n . The av­e r a g e i s abou t 0 .23 for the two holes about 70 feet apar t . I have c o n s e r v a t i v e l y ass igned a grade of 0.1 o z / C . Y . for " B " h o r i z o n as p r o b a b l e ore . The lower hor izon should be r i c h e r b a s e d on r e s u l t s o f o t h e r holes downstream i n Dan c l a i m s and deduced grade from one o l d h o l e . I have assigned a g r a d e o f 0 .15 o z / C . Y . f o r p r o b a b l e ore to the bedrock h o r i z o n . Volume here i s considered to be about the same as the vo lume for p o t e n t i a l ore d i scussed above, that i s about 18,000 cubic yards per hundred feet of channel .

The vo lume f o r t he d r i l l e d s e c t i o n of the o l d channel i s t hen abou t 250,000 cubic yards . Ha l f of t h i s yardage i s c o n s i d e r e d as p r o b a b l e and h a l f as p o s s i b l e r e se rve . The g r a d e as worked ou t u s i n g the above assigned grades and 1 3 , 0 0 0 C . Y . and 5,000 C . Y . for the upper and lower horizons i s 0 . 1 1 o z / C . Y . T h i s means abou t 2 7 , 5 0 0 ounces a r e a s s i g n e d as p r o b a b l e plus p o s s i b l e ore i n the d r i l l e d par t of Tina C l a i m .

As f o r p o t e n t i a l ounces the f o l l o w i n g c a l c u l a t i o n can now be made using the yardage p o t e n t i a l s t a ted above for the u n d r i l l e d part of Tina c l a i m . The p o t e n t i a l grade i s about 0 .10 f o r t h e 1.3 m i l l i o n C . Y . of the f i r s t s e c t i o n . This means abou t 130 , 000 ounces may be proven here by d r i l l i n g . I n t h e s e c o n d s e c t i o n o f abou t 5 0 0 , 0 0 0 C . Y . the average g r a d e i s expected to be lower at about 0.05 ounces per cubic y a r d . T h i s amounts t o abou t 2 5 , 0 0 0 o u n c e s . The t o t a l ounces t hen amount t o abou t 150,000 as p o t e n t i a l for the c l a i m s o f T i n a g r o u p . Adding t h i s to the probable ounces means t h a t the t o t a l product ion from the creek could be as high as about 18 2,000 ounces.

MINING CONSIDERATIONS

The s t r i p p i n g f o r r e c o v e r y of the above gold ounces w i l l be somewhat d i f f i c u l t b e c a u s e i t w i l l r equ i re the d i v e r s i o n o f O t t e r C r e e k . T h e r e a r e some d i t c h e s , o l d f l u m e s and some 2 f o o t d i a m e t e r pipe on the east s ide of O t t e r C r e e k . This was used for h y d r a u l i c k i n g operat ions on the c r e e k a t t h e s i t e of the present Dra in Lease Mine. In no way was t h i s ever intended as a d i v e r s i o n of the Creek. The volume of the creek at Tina c l a i m far exceeds the

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c a r r v i n c capaci ty cf t h i s o ld water supply system. I expect, t h a t a wooden, p i a s t i c - l i n e d flume on the west side of the c r e e k s h o u l d p r o v i d e adequa t e d i v e r s i o n c a p a c i t y . In a d d i t i o n to the surface flow there w i l l c e r t a i n l y be a very l a r g e subterranean f low. This w i l l mean that bedrock dra ins and l a r g e capac i ty pumps w i l l be needed to c l ea r the bedrock h o r i z o n . T h i s h o r i z o n w i l l most l i k e l y r e q u i r e large r i ppe r -equ iped t r ac to r s for mining and the excavat ion bottom w i l l have to be c lear of water.

T h e s u b - v a l l e y s t r i p p i n g r a t i o i s v e r y r o u g h l y e s t i m a t e d at about 2 .5 t o 1. T h i s i s determined by the s e c t i o n a l r e l a t i o n s h i p s shown in Figure 7. There are about 30 f e e t o f b a r r e n mate r ia l above the " B " hor izon and about 40 f e e t of barren t i l l and sand below that hor izon and above t h e b e d r o c k pay z o n e . The " B " h o r i z o n i s about 30 feet t h i c k . The depth r a t i o i s about 70:30 or s l i g h t l y l e s s than 2 . 5 : 1 . I n a d d i t i o n t o the s u b - v a l l e y overburden there i s t h e t i l l ma te r ia l above the stream i n the v a l l e y w a l l s . Not much i n f o r m a t i o n i s a v a i l a b l e on the th ickness of the t i l l f o r t h i s s t r i p p i n g task . I t i s assumed that about 75 feet of t h i c k n e s s (when the channel i s t o t a l l y ou ts ide the stream v a l l e y ) w i l l have to be s t r i p p e d . H o w e v e r , i t i s not c o n s i d e r e d l i k e l y that t h i s w i l l occur o f t en . So an average t h i c k n e s s of abou t 50 feet i s a more reasonable f igure for t h e s t r i p p i n g of the t i l l ma t e r i a l on the v a l l e y s i d e s . This p u t s t he dep th r a t i o at 120 :30 or 4 : 1 . The t o t a l pay mat­e r i a l i s about 2.0 m i l l i o n cubic ya rds . In very rough f i g ­u r e s t h e n abou t 8 .0 m i l l i o n c u b i c yards w i l l have to be s t r i p p e d to mine that amount of pay. There are estimated as po t en t i a l , a n d probable and p o s s i b l e o re , to be about 182,000 ounces i n the pay zones on the Tina Group. I f the s t r i p p i n g c o s t s a r e s e t a t abou t $ 3 . 0 0 per c u b i c y a r d then t o t a l s t r i p p i n g c o s t s may be about 24.0 m i l l i o n d o l l a r s . Mining c o s t s should be not more than $10 per C . Y . for a mining cost o f abou t $ 2 0 . 0 m i l l i o n . At about $400 per ounce the gross v a l u e o f the g o l d p o t e n t i a l of the proper ty i s about $73.0 m i l l i o n . The net operat ing p r o f i t could be i n the range of a b o u t $30 m i l l i o n . I t i s c o n s i d e r e d that the s t r i p p i n g c o s t s a r e perhaps too h igh . In any case , the above numbers g i v e i n very rough numerical form, some idea of the pos s ib l e e x p l o i t a t i o n r e s u l t o f a sucess fu l e x p l o r a t i o n program on the Tina Group.

B e c a u s e of the amount of s t r i p p i n g needed per year the r a t e o f progress of mining w i l l be slow . I t i s most l i k e l y t h a t t h e m i n i n g o f t he f i v e c l a i m s , i f t he d r i l l i n g e x p l o r a t i o n r e s u l t s are p o s i t i v e , w i l l take over s i x years and may t a k e as l o n g as ten yea r s . Of course , go ld p r i c e changes i n tha t time may make the o v e r a l l venture much more (or l e s s ) p r o f i t a b l e than i n d i c a t e d above.

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SUMMARY OF PROBABLE, POSSIBLE RESERVES AND POTENTIAL IN C.Y.

SECTION PROBABLE POSSIBLE POTENTIAL OUNCES

1/2 OF DRILLED ZONE 125,000 125,000 27,500 BELOW DAM 1,300,000 130,000 ABOVE DAM 500,000 25,000

TOTALS 125,000 125,000 1,800,000 182,500

DRILLING PROPOSAL

The above assessment of the p o t e n t i a l of the Tina Group w a r r a n t s t h e e x p l o r a t i o n d r i l l i n g of the proper ty on sec­t i o n a l l i n e s about 400 feet apart as soon as p o s s i b l e . The t r u c k - m o u n t e d Becker hammer d r i l l wi th a u x i l i a r y compressor s h o u l d be u sed . There may be need, i n some cases , to go to t he 9" d r i l l . Abou t 30 l i n e s w i l l be requ i red to t e s t the e n t i r e l e n g t h of the g r o u p . T h i s p l a n w i l l mean the d r i l l i n g o f abou t 300 f e e t of hole per l i n e . A t o t a l of a b o u t 9 , 000 f e e t o f d r i l l h o l e , i n about 90 holes should t e s t t h e c o u r s e o f the ancient channe l . Our costs for the 1983 p r o g r a m were a b o u t $50 per f o o t , i n c l u d i n g sample p r o c e s s i n g . S o o t h e d r i l l i n g p r o g r a m s h o u l d cost about $ 5 0 0 , 0 0 0 . In a d d i t i o n to the d r i l l a D8 cat w i l l be needed as s tandby machine throughout the program and for d r i l l road and d r i l l s i t e c o n s t r u c t i o n .

CONCLUSIONS

1. The d r i l l program tes ted about 1300 feet of the ancient channel on the north end of Tina C l a i m .

2 . About 125,000 cubic yards of pay i n two horizons in the d r i l l e d zone a r e ass igned as probable reserves at grade of 0.11 o z / C . Y .

3 . A b o u t 125,000 cubic yards of pay are assigned as poss­i b l e ore i n the d r i l l e d zone at the same grade as above.

4 . A b o u t 1.8 m i l l i o n cubic yards of pay are considered as the p o t e n t i a l f o r the upper reaches of Otter Creek on Tina G r o u p . The g r a d e for the sec t ion above the storage dam i s c o n s i d e r e d to be about ha l f the grade of the s e c t i o n below the dam. T h i s i s because the lower s e c t i o n i s i n favorable s t r u c t u r e s and r o c k s . The p o t e n t i a l f o r t he u n d r i l l e d sec t ions i s set at about 155,000 ounces.

T i n a : O ' C o n n o r : Dec. 23, 1983: MDK: -15 -

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5. T h e i e a re c o n s i d e r a b l e g r o u n d s , because of heavy s u l p h i d e m i n e r a l i z a t i o n in bedrock, on one d r i l l l i n e (and s t r u c t u r a l reasons) for assuming good bedrock m i n e r a l i z a t i o n p o t e n t i a l near the c h a n n e l of Tina Group. This p o t e n t i a l can be e x p l o r e d a f t e r the b e d r o c k has been reached and sampled during the course of p lacer min ing .

6 . The net o p e r a t i n g p r o f i t f o r m i n i n g of the e n t i r e g r o u p , i f the recommended exp lo ra t i on program i s c a r r i e d out s u c c e s s f u l l y , i s c a l c u l a t e d at about $30.0 m i l l i o n , before taxes , wi th go ld at $400 US per ounce.

RECOMMENDATIONS

I t i s recommended t h a t the d r i l l i n g program o u t l i n e d above be c a r r i e d o u t as soon as p o s s i b l e and t h a t the n e c e s s a r y f i n a n c i n g be arranged as soon as p o s s i b l e . A l s o e v e r y e f f o r t s h o u l d be made t o a c q u i r e o p t i o n s on the m i n e r a l r i g h t s t o t he bedrock mineral c la ims cover ing the m i d d l e p a r t o f t he g r o u p , b e l o w and s l i g h t l y above the s torage dam.

Respec t fu l l y submit ted,

M.D. Kierans P .Eng .

T i n a : O ' C o n n o r : Dec. 23, 1983 : MDK: -16-

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I , Mar t in D. K ie rans , of 1503-1616 P e n d r e l l S t r e e t , Vancouver, B . C . do hereby c e r t i f y tha t :

1. I am a Geo log i ca l Engineer .

2. I am a Resident Member of the A s s o c i a t i o n of P ro f -f e s s i o n a l Engineers of the Province of B r i t i s h Columbia.

3. I am a graduate in G e o l o g i c a l Sciences of the Univ­e r s i t y of B r i t i s h Columbia (M.A. 1952) and M c G i l l U n i v e r s i t y (B .Sc . 1949).

4. I have p r a c t i c e d my p ro fess ion of G e o l o g i c a l Engineer and Mine and E x p l o r a t i o n Geo log i s t for 31 years .

5. My knowledge of the proper ty d i scussed i n t h i s report i s based on short v i s i t s i n 1982 and a longer two week pe r iod i n March 1983 when I supervised a surveying and road c l e a r i n g opera t ion on downstream c l a i m s . I a l s o supervised a 109-day Becker hammer d r i l l i n g p ro jec t on the downstream c l a i m s , below Tina Group, of the Dan-Drain Group of c la ims from May 22 to October 19, 1983. I t i s a l so based on study of numerous p r i v a t e repor ts on-the past e x p l o r a t i o n , development and mining work on the lower and middle Ot ter Creek (see B i b l i o g r a p h i c References) , study of re levan t government g e o l o g i c a l maps and p u b l i c a t i o n s and on ve rba l communications w i t h some l o c a l prospectors and p lacer opera tors .

6. I have no i n t e r e s t i n t h i s or any other proper ty of K . A . 0 ' Connor, nor do I expect any.

DATED December 23, 1983 at Vancouver, B r i t i s h Columbia

M.D. Kierans P. Eng

T i n a : O'Connor: Dec. 23, 1983: MDK:

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TABLE 1 TINA GROUP DRILLING PROJECT, ATLIN MINING DISTRICT

SUMMARY OF BECKER HAMMER DRILL HOLES

HOLE NO. ZONE LINE DATE STARTED DATE FINISHED COLLAR

ELEV. (FEET)

TOTAL LENGTH (FEET)

REMARKS

S083-49 TINA 1 SEPT 10 1983 SEPT 10 1983 3313 109 STOPPED IN FAULT ZONE

SO83-50 TINA 1 SEPT 10 198 3 SEPT 10 1983 3313 73.5 STOPPED FLT ZONE BEDROCK?

S083-51 TINA 2 SEPT 11 1983 SEPT 12 1983 3324 94 STOPPED IN FAULT ZONE

S083-52 TINA 3 SEPT 12 1983 SEPT 13 1983 3338 118 STOPPED IN FAULT ZONE

S083-53 TINA 3 b£FT 13 1983 SEPT 14 1983 3338 118 STOPPED IN FAULT BEDROCK S083-54 TINA 2 SEPT 15 1983 SEPT 16 1983 3324 110 STOPPED IN BEDROCK AT 104

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BIBLIOGRAPHIC REFERENCES

Below i s a p a r t i a l l i s t of the government and other references consulted for t h i s report by the w r i t e r .

(1) Ai tXen, J . D . (1956). " A t l i n Hap-Area, B r i t i s h Columbia." G.S.C. Mem. 307.

(2) Black, J . M . (1953). "Report on the A t l i n Placer Camp." Province of B .C . Min is t ry of Mines and Petroleum Resources.

(3) Bostock, H.S. (1957). "Selected F i e l d Reports of G«S.C." Geol . Suxv. of Canada Memoir 284.

(4) Boyle, R.W. (1979)"Geochemis t ry of Gold and i t s Deposits ." G.S .C. B u l l . 280.

(5) B .C. and Yukon Chamber of Mines. (1981). "Textbook of 1981 Placer Mining School ." Consists of extracts from various papers on Placer Mining, Geology, Evaluat ion, e tc .

(6) BCDM Annual Report (1936). pp B 39-55.

(7) D a i l l y , A . F . (1946). "Report on Ottar Creek, A t l i n Mining D i v i s i o n , B .C. for A t l i n Placers L t d . (N.P.L.) Placer Mining consultant of Oakland, C a l i f o r n i a .

(8) McConnell, R.G. (1905). "Report on Gold Values i n the Klondike High Level Gravels ." From (3).

(9) Proudlock, P . J . and W.M. (1976). "Stratigraphy of

Page 28: MINERAL EVALUATIO REPORN T BECKER HAMME DRILLINR G … · Tina Group Th. e net operating profit before taxes, if indeed the potentia verifiel b ids drillingy i, s estimated to be

the Placers in the A t l i n Placer Mining Camp, B r i t i s h Columbia." B .C. Min i s t ry of Mines and Petroleum Resources.

(10) Wright, G. (1982). "Empire Gold L t d . Proposed Placer Mining Operation at Otter Creek, A t l i n , B . C . " Cypress Consulting Services Inc.

(11) B.C. Minis t ry of Energy, Mines, and Petroleum Resources (1980). "Notes on Placer Mining i n B r i t i s h Coumbia." B u l l e t i n 21.

(12) Sharp, W.S. (1974). "Interim Report, F i e l d Invest igat ions, A t l i n , B . C . Proper t ies , June 4-12. 1974."

(13) Sharp, W.S. (1974). Let ter to Rutherford Day, Pres. Surprise Resources L t d . (N.P.L. ) on Otter Creek Placer Reserves.

(14) Cochrane, D.R. (1979). "A B r i e f Sampling Program on Otter Creek Placer Leases, A t l i n M.D. B . C . " Assessment Report.

(15) Kierans, M.D. (1982) . "Interim Report—Otter Crsek Placer Proposal."

(16) Sharp W. (1974). "Report on Preliminary Surveys and Geological Examinations of Placer and Lode Mining Properties near A t l i n , B.C. for Surprise Resources L t d . "

(17) Manning L . J . (197 2) "Report for Gethyr Mining L td . on the Noiand Mine Property A t l i n B.C. July 12, 1972."

(18) Kierans , M.D. (1983). "Otter Creek Gold Placer Prospect, Dan Group, Surprise Lake Area . "

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APPENDIX A DRILL SAMPLE SLUICING AND PANNING RESULTS : OTTER CREEK DRILLING PROJECT

FROM TO INTERVAL CUMUL'TE MOISTURE SAMPLE GOLD WT. WT. OF ADJUSTED ADJUSTED FEET*GRADE FEET FEET FEET INTERVAL RELATIVE WEIGHT MILLIGMS GRAVEL GOLD WT. GOLD WT.

LBS LBS/C.Y. GRAMS OZ./C.Y.

S083-49 0 10 10 10 DRY 61 BL.SAND 3500 10 16 6 16 DRY 101 .01 3500 3.465E-4 1.112E-5 6.674E-5 16 22 6 22 DRY 95 .3 3500 .0110526 3.548E-4 .0021287 22 28 6 28 DRY 162 5.1 3500 .1101852 .0035369 .0212217 28 34 6 34 DRY 131 .4 3500 .0106870 3.431E-4 .0020583 34 40 6 40 DRY 204 5.4 3500 .0926471 .0029740 .0178438 40 46 6 46 DRY 227 SAND 3500 46 52 6 52 DRY 304 SAND 3500 52 58 6 58 DRY 205 SAND 3500 58 64 6 64 DRY 256 SAND 3500 64 70 6 70 DRY 238 SAND 3500 70 76 6 76 DRY 270 SAND 3500 76 82 6 82 DRY 259 SAND 3500 82 88 6 88 DRY 326 SAND 3500 88 94 6 94 DRY 244 SAND 3500 94 100 6 100 DRY 321 SAND 3500 100 106 6 106 DRY 32 2 SAND 3500 106 109 3 109 DRY 227 SAND 3500 . . . .

S083-50 0 10 10 10 DRY 93 .1 3500 .0037634 1.208E-4 .0012081 10 16 6 16 DRY 97 10 3500 .3608247 .01158 25 .0694948 16 22 6 22 DHY 134 1.5 35 00 .0391791 .0012576 .0075459 22 28 6 28 DRY 95 6.3 3500 .2321053 .0074506 .0447035 28 34 6 34 DRY 12 7 14 3500 . 3858268 .0123850 .0743102 34 40 6 40 DRY 164 5.87 3500 .1252744 .0040213 .0241278 40 46 6 46 DRY 169 4.7 3500 .0973373 .0031245 .0187472 46 52 6 52 DRY 135 7.2 3500 .1866667 .0059920 .0359520 52 58 6 58 DRY 165 25.5 3500 .5409091 .0173632 .1041791 58 64 6 64 DRY 149 30.6 3500 .7187919 .0230732 .1384393 64 70 6 70 DRY 201 17.8 3500 .3099502 .0099494 .0596964 70 74 6 74 DRY 216 1.3 3500 .0210648 6.762E-4 .0040571 52 70 18 18 .3023148

S083-51 0 10 10 10 DRY 71 . 7 3500 .0345070 .0011077 .0110768 10 16 6 16 DRY 115 BL.SAND 3500 16 22 6 22 DRY 64 BL.SAND 3500 22 28 6 28 DRY 160 .1 3500 .0021875 7.022E-5 4.213E-4 28 34 6 34 DRY 147 .5 3500 .0119048 3.821E-4 .0022929 34 40 6 40 DRY 15 5 . 2 3500 .0045161 1.450E-4 8.698E-4 40 46 6 46 DRY 207 . 4 3500 .0067633 2.171E-4 .0013026 46 52 6 52 DRY 163 28 .9 3500 .6205521 .019 919 7 .1195183 52 58 6 58 DRY 257 11.2 3500 .1525292 .0048962 .0293771 58 64 6 64 DRY 387 1.8 3500 .0162791 5.226E-4 .0031353 64 70 6 70 DRY 277 .9 3500 .0113718 3.650E-4 .0021902

GRADE ADJUSTED OZ/C.Y.GRADE

OZ/C.Y.

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APPENDIX A DRILL SAMPLE SLUICING AND PANNING RESULTS : OTTER CREEK DRILLING PROJECT

FROM TO INTERVAL CUMUL'TE MOISTURE SAMPLE GOLD WT. WT. OF ADJUSTED ADJUSTED FEET*GRADE FNTRVL FACTOR FEET FEET FEET INTERVAL RELATIVE WEIGHT MILLIGMS GRAVEL GOLD WT. GOLD WT. GRADE ADJUSTED

LBS . L B S / C . Y . GRAMS O Z . / C . Y . O Z / C . Y . G R A D E O Z / C . Y .

70 76 6 76 DRY 350 8.1 3500 .081 .0026001 .0156006 76 82 6 8 2 DRY 259 BL.SAND 3500 82 88 6 88 DRY 287 BL.SAND 3500 88 94 6 94 DRY 280 .9 3500 .01125 3.631E-4 .0021668

3083-52 0 10 10 10 DRY 12 7 .2 3500 .0055118 1.769E-4 .0017693 10 16 6 16 DRY 114 .1 3500 .0030702 9.855E-5 5.913E-4 16 22 6 22 DRY 102 BL.SAND 350J 22 28 6 28 DRY 159 . 3 3500 .0066038 2.120E-4 .0012719 28 34 6 34 DRY 111 .9 3500 .0283784 9.109E-4 .0054657 34 40 6 40 DRY 86 .7 3500 .0284884 9.145E-4 .0054869 40 46 6 46 DRY 130 .2 3500 .0053846 1.728E-4 .0010371 46 52 6 52 DRY 107 .1 3500 .0032710 1.050E-4 6.300E-4 52 58 6 58 DRY 150 35 3500 .8166667 .0262150 .1572900 58 64 6 64 DRY 1.55 20. 7 3500 .4674194 .0150042 .0900250 64 70 6 70 DRY 107 1.3 3500 .0425234 .0013650 .0081900 70 76 6 76 DRY 336 25.1 3500 .2614583 .0083928 .050356^ 76 82 6 82 DRY 330 .3 3500 .0031818 1.021E-4 6.128E-4 82 86 4 86 DRY 571 BL.SAND 3500 86 92 6 92 DRY 29 7 17 3500 .2003367 .0064308 .0385848 92 98 6 98 DRY 124 5.5 3500 .1552419 .0049833 .0298996 98 104 6 104 DRY 120 4.9 3500 .1429167 .0045876 .0275257 104 110 6 110 DRY 176 13.2 3500 .2625000 .0084262 .0505575 110 116 6 116 DRY 27 3 92.9 3500 1.191026 .0382319 .2293915 116 118 2 118 DRY 124 46.1 3500 1.301210 .0417688 .0835377 52 76 24 24 .3058618 017204

S083-53 0 10 10 10 DRY 83 . 7 3500 .0295181 9.475E-4 .0094753 10 16 6 16 DRY 88 BL.SAND 3500 16 22 6 22 DRY 125 BL.SAND 3500 22 28 6 28 DRY 188 .1 3500 .0018617 5.976E-5 3.586E-4 28 34 6 34 DRY 139 BL.SAND 3500 34 40 6 40 DRY 105 2 3500 .0666667 .0021400 .0128400 40 46 6 46 DRY 95 .1 3500 .0036842 1.183E-4 7.096E-4 46 52 6 52 DRY 132 .5 3500 .0132576 4 .256E-4 .0025534 52 58 6 58 DRY 132 . 1 3500 .0026515 8 .511E-5 5 .107E-4 58 64 6 64 DRY 65 122. 7 3500 6.606923 .2120822 1.272493 64 70 b 70 DRY 235 710.6 3500 10.58340 .3397273 2.038364 70 76 6 76 DRY 221 1362.7 3500 21.58122 .6927572 4.1565 4 3 76 80 4 80 DRY 2S0 192.3 3S00 2.6922 .0864196 . 345678e-80 86 6 H6 DRY 34 0 3.9 3500 .0401471 .0012887 .0077323 86 92 6 92 DRY 138 31. 24 3500 .7923188 .0254334 . 1526006 92 98 6 98 DRY 107 .168 3500 .0054953 1.764E-4 .0010584

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APPENDIX A DRILL SAMPLE SLUICING AND PANNING RESULTS : OTTER CREEK DRILLING PROJECT

FROM TO INTERVAL CUMUL'TE MOISTURE SAMPLE GOLD WT. WT. OF ADJUSTED ADJUSTED FEET*GRADE INTRVL FACTOR FEET FEET FEET INTERVAL RELATIVE WEIGHT MILLIGMS GRAVEL GOLD WT. GOLD WT. GRADE ADJUSTED

LBS LBS/CY. GRAMS OZ./C.Y. OZ/C.Y. GRADE 07. / C . Y .

98 104 6 104 DRY 489 .2 3500 .0014315 4.595E-5 2.757E-4 104 110 6 110 DRY 450 14.5 3500 .1127778 .0036202 .0217210 110 118 8 118 DRY 345 80. 3 3500 .8146377 .0261499 .2091990

58 80 22 22 7.813079

3083-54 0 10 10 10 DRY 93 .5 3500 .0188172 6.040E-4 .0060403 10 16 6 16 DRY 131 .3 3500 .0080153 2.573E-4 .0015437 16 22 6 22 DRY 78 .5 3500 .0224359 7.202E-4 .0043212 22 28 6 28 DRY 75 BL. SAND 3500 22 28 6 28 DRY 130 70.2 3500 1.890000 .0606690 .3640140 28 34 6 34 DRY 146 4.8 3500 .1150685 .0036937 .0221622 34 40 6 40 DRY 119 19 3500 .5588235 .0179382 .1076294 40 46 6 46 DRY 91 1.5 3500 .0576923 .0018519 .0111115 46 52 6 52 DRY 352 206.3 3500 2.051278 .0658460 .3950762 52 58 6 58 DRY 265 69 3500 .9113208 .0292534 .1755204 58 64 6 64 DRY 272 8.2 3500 .1055147 .0033870 .0203221 64 70 6 70 DRY 105 .5 3500 .0166667 5.350E-4 .0032100 70 76 6 76 DRY 233 2 3500 .0030043 9.644E-5 5.786E-4 76 82 6 82 DRY 87 .1 3500 .0040230 1.291E-4 7.748E-4 82 88 6 88 DRY 14 7 .1 3500 .0023810 7.643E-5 4.586E-4 88 94 6 94 DRY 287 .5 3500 .0060976 1.957E-4 .0011744 94 100 6 100 DRY 211 .1 3500 .0016588 5.325E-5 3.195E-4 100 106 6 106 DRY 218 96.8 3500 1.554128 .0498875 .2993251 106 110 4 110 DRY 149 13.5 3500 .3171141 .0101794 .0407174

22 58 36 36 1.075514

100 110 10 10 .3400426

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A P P E N D I X B

The Tina Group comprises the f o l l o w i n g l e a s e s : K. A . O'Connor i s the present owner:

Lease No. Name E x p i r y Date Former Owner

PML 1699 Tina Sept 30/84 Conno l ly Holdings

PML 1688 xMcGinty Sept 30/84 Conno l ly Holdings

PML 1704 Dor i s Sept 30/84 Conno l ly Holdings

PML 1705 B e t t y Sept 30/84 Conno l ly Holdings

PML 1706 Suz ie Sept 30/84 Conno l ly Holdings

PL No. — Present Owner

10170 K . A . O'Connor

10171 K . A . O'Connor

10172 K . A . O'Connor

10173 K . A . O'Connor

10174 K . A . O'Connor

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APPENDIX D

FORMULAE USED IN APPENDIX A

I Column 9*

(Column 8 / Column 6} X Column 7 / 1000

I I Column 10=

(Column 9 X 0.03 21)

I I I Column 11*

(Column 3 X Column 10)

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APPENDIX E

( T " C." V\ - : T »Til "TIITIiG P VI?lirH - P.O.

SO""VI C? CT P I I U X .

ATI.HI Utr~Vr,. L7T*. ( ? ' . » . ! . . ) ct *1 - 1939-AO: 1945

r Line Hele E l o r r t i c n H If' Bo. » o . Surface pod rock

Perth - Ft t . l u . Reccrered Corrected j j ' A n . fnlne fsr flute., ,* '*; .„ . . Trine ^ fegEgg f^n <A.?t „. Vr.U f-:r flnlc. Vrhie *

98 105 99 150 14.1 lots . 85 460 41.5 97 T r . (SIIda r.«ll.

« 4 8 4 ~ " ' " i n N i l ." eu 84 I960 176.0 f.

88 94 89 201 18.2

78. 90 79 9.5 0.9 14.5 26 14.6 39 3.5

.31 '39 31 20 1.8 56 '6/ . . 5 56 55 4.9 62.5 -69 62.5 39 5.5 r<

87.5 87.5 . 120 10.8 113.5 117.5 113 473 42.6 61.0 M-64,5 61 1 34.0 38.5 32 2.9

103 120 108 j 903 77.8 60.7 76. 60.7 54 5.4

105 Ill 105 H 7 14.5 83.2 90 85 9 3 0 - 65.9

136- 136 , 325 29.3 10O 811 t i l l 111 N U Mil 11,? 126 T r Mil 97.7 . ! 235

31 43 i 60 29 39 63 67 T r 69 93 345

106 111.5 1 U 77 T r 89 50 77.5 m i 95 2/,fi

f r lnc lpo l Crnccntrntl OTUI

1 0 - 3C-39 11- 10 11-25 »1-1,-1 11-27 13-23 1- 13-40

• 25 2- 8 2-15 2-16 2- ?6 3- 1*

yen-** 4- 17 Z-?2 <-27 7-4 7-7 7-11

5- -40

<D \ -

6-18 6- -40

S - 3 0 r -5 r-is »•.-•"! I ' - --<1

» - l - '

ft'?

1 - I I -

Extra

1 2 y 4 6

X -9

11 6« 8 5

4

I 1 2 3 5 6 6n 7 f

3504. 5

3579.

3503 3500

3406. 3424

3420 3412

3508.5 . 3430.5-

3464.5 3474.K 34fC3 34P3.7 3494.2.

3850 3443,4' 3424.3 3421.2

349G.3 3334.8. 3512.5 3451.5 3525.8 3491.8 3491.7 3383.7 3504.5 3U3.8 3489.7 3384.7 3461. 3378.

3 4 A 6 > u » > a c o -3427 > > H 3 i » 7 ytpt » * < > 3 ? l 6

>«"• 34?6 3314 j J i f 3433 V i « 3351.5

M i l

10$-40>i Be l . 95-96' 330O9'l «# - 50" -

Loat e/c ennlng bent A fcroiwn by shooting. Sunk In bettcat 103* shaft. ~

8£~75«i Pal B.H. "* 1 0 £ - 1 9 a | 20?-75* BM PR Oulcfcarnd 43 to 7 2 » .

Scattered Doc-3437-3515

Pear BR

•roIitly45,

POS-35'i 20* - BR 111-44.5-56.5. » c l e lout e/e

bent e'ali'g end c*;llf;nc<l ahce M l lever 2*

Meetly 30-3/. 70* - 44 to 53.5 - BPI m

21.5 40? K U T r 43.1 12.0

2 C *

- 15» - 50* -I

27*

TO1,! - 78* - Bfil D8 Xft -<K • - Pal Pfl Onflnlfihed hole

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APPENDIX E

C t U r Crnofc - At l in l*in! >g D vlolon - B.C

HOTTSI *

Vnlue In estInntod tit » , 0 9 # per i t l l l i f T f u omtlvnlent to (35.00 par os. Troy O 800 fine Onion d r i l l using 6-7/.6" O.D. alio* rml 4-7y>8* I .B. cosing uiiod to 6-23-40. Keystone 71 d r i l l uslnj: 7 -£" O.D. shoe «»nd 6" F.D. ending used fcr a l l other holes.

0v~ Vcluoa oxeepV-littee-l-Jr-?- (irlculntrf uslt:g KnynLona "27" Ontor of 136 for 6-7/16* oboe and 100 for 7-1" shoe. Tnluos l ine 1 ft 2 asliulatod using straight lector of 119.5 for 6-7/16* shoev

25 Oct. 19<6 Snn Fmnolsoo

A. F . 0.

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]

North L ( [Ve f T IN A am'w. So«+

Elevation^ m Azimuth y ^ f c Dip Logijod by r-Vk.\<

BECKER HAMMER DRILL LOG

OTTER CREEK DRILLING PROJECT

Mote; number S O g 3 - 9

IVKjoJ^A

SAMPLE RECORD SAMPLE RECORD TIME AND PF.NtlTRAT f Otl RATH FROM

(Feet) TO '

(Feet) DESCRIPTION FROM] TO | REL. 1 SAMPLE Feet 3 FeetiitEC. l l MOISTURE

FROM 5 TO IREL. (FeetKFeeyREGl

SAMPLE MOISTURE TIME FEE'i

to 7 0 7 Jl o | w e - r 5" 6 ! / « o hp V o li-T7 r t 7 f o 7 / o 15" 1 b v . y f t nP V 1 /:oi r?

S O v t pf-O. IC»1/C 1 rj, 3 .r 1 ft ft 1/ bft V 10 VOf frp I O /a 3o I W \ = T /PQ hi? u M'.fi4 tX not. i l

10 0 n^y H : / l /:/ j

I X ' f /In «Kn^ b«_4+t., W^Tfr? / f 4-o ! w r t 100 IW r a

\A /( , 3 o fa 9 wrr H i * 1* ^ j? ^wrc^ ( P a r i i i / u Ji / i t. ii'/\d /o^cf ? 3 o w n W ( T T | | : 3 f 7C>

/4 2 1 Cdkb/e pe-iMe "fi//. /4t^iy/<»*- -rV«.«*.i-n^j[ . •WCT 70 T i l i>0 p:+3 7A

H j o i W t T 74 \/oo y 7*?

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Page 37: MINERAL EVALUATIO REPORN T BECKER HAMME DRILLINR G … · Tina Group Th. e net operating profit before taxes, if indeed the potentia verifiel b ids drillingy i, s estimated to be

N o r t h L v \y£ \ T l HA you

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BECKER HAMMER DRILL LOG

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Page 38: MINERAL EVALUATIO REPORN T BECKER HAMME DRILLINR G … · Tina Group Th. e net operating profit before taxes, if indeed the potentia verifiel b ids drillingy i, s estimated to be

N o r t h T t N ^ Li«/e I East <-»m*k E l e v a t i o n j ^ e Az i mu th yt^ff Dip y'«.>-4

BECKER HAMMER DRILL LOG OTTER CREEK DRILLING PROJECT

do tu .-lumber £ Q 8 3 - fO

Common cod S*-f>{ 9}

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Page 39: MINERAL EVALUATIO REPORN T BECKER HAMME DRILLINR G … · Tina Group Th. e net operating profit before taxes, if indeed the potentia verifiel b ids drillingy i, s estimated to be

: • -

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Page 40: MINERAL EVALUATIO REPORN T BECKER HAMME DRILLINR G … · Tina Group Th. e net operating profit before taxes, if indeed the potentia verifiel b ids drillingy i, s estimated to be

North L l N 6 X A East w. - u i . ^-•s,«-if-

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BECKER HAMMER DRILL LOG

OTTER CREEK DRILLING PROJECT

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Page 41: MINERAL EVALUATIO REPORN T BECKER HAMME DRILLINR G … · Tina Group Th. e net operating profit before taxes, if indeed the potentia verifiel b ids drillingy i, s estimated to be

E l e v a t i o n Azimuth .y*yj-' D 1 P . y ^ t

BECKER HAMMER DRILL LOG

OTTER CREEK DRILLING PROJECT

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Page 42: MINERAL EVALUATIO REPORN T BECKER HAMME DRILLINR G … · Tina Group Th. e net operating profit before taxes, if indeed the potentia verifiel b ids drillingy i, s estimated to be

1

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Page 43: MINERAL EVALUATIO REPORN T BECKER HAMME DRILLINR G … · Tina Group Th. e net operating profit before taxes, if indeed the potentia verifiel b ids drillingy i, s estimated to be

r

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Page 44: MINERAL EVALUATIO REPORN T BECKER HAMME DRILLINR G … · Tina Group Th. e net operating profit before taxes, if indeed the potentia verifiel b ids drillingy i, s estimated to be

T/fVM, jg North East. - - y g - , $ o t r & E l e v 1 1 o n _ i f i J L _ C i £ j 4 _ A z i in u t h ^ c y t Dip V t . t

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Page 45: MINERAL EVALUATIO REPORN T BECKER HAMME DRILLINR G … · Tina Group Th. e net operating profit before taxes, if indeed the potentia verifiel b ids drillingy i, s estimated to be

North East Elevr.ti.on Azimuth P i p

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Page 46: MINERAL EVALUATIO REPORN T BECKER HAMME DRILLINR G … · Tina Group Th. e net operating profit before taxes, if indeed the potentia verifiel b ids drillingy i, s estimated to be

. , .... I i

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Page 47: MINERAL EVALUATIO REPORN T BECKER HAMME DRILLINR G … · Tina Group Th. e net operating profit before taxes, if indeed the potentia verifiel b ids drillingy i, s estimated to be

North L I N E " J m

E l e v a t i o n S « L . V . , , BECKER HAMMER DRILL LOG Azimuth x/ft-t OTTER CREEK DRILLING PROJECT D l P $L±ZX , ' Logged b y , ^ . ^ - lo<kS f * tN

SAMPLE RECORD SAMPLE RECORD I TIME AND P E N j l T R A T t O M RATE mm " • 11 • ' • T*mmw^^mBPmmrm 1 1 •fl mm • » • 1 .•"—.)-•-•••* ~ i * s ~ ~ - r ' . - — - " - i ^ * l l ^ ^ r ^ , l w——-Ti 1 s—— 1 V ROM 1 TO

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SAMPLE MOISTURE

FROM 1 TO |REL. (Pect^iFeetlREC*

SAMPLE MOISTURE! TIME FEE'i

0 j 14 0 a1

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Page 48: MINERAL EVALUATIO REPORN T BECKER HAMME DRILLINR G … · Tina Group Th. e net operating profit before taxes, if indeed the potentia verifiel b ids drillingy i, s estimated to be

North East

Azimu th Dip Logged by"

DECKER HAMMER DRILL LOG

OTTER CREEK DRILLING PROJECT

Nolo Number $Q g 3 $ <f

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