TABLE
OF CONTENTS
3.0 LOCATION and ACCESS and FIELD
PROCEDURES
7.0 PROPERTY GEOLOGY and CHALKY
GEYSERITE and
KAOLINITE POTENTIAL
7.1
Geology and Alteration
7.2
Diamond Drilling
7.3
Trenching and Bulk Sampling
8.0 PREVIOUS GEOCHEMISTRY and
GEOPHYSICS
8.1
Previous Geochemistry
8.2
Previous Geophysics
8.3
Previous Diamond Drilling
9.1 Drilling
9.2
Quarry Development
9.3 Crushing Plant
9.4
Conveyor System
9.5
Stockpile
9.6
Trucking Facilities
9.7 Barge Facilities
9.8
Reclamation
10.0 ENVIRONMENTAL CONSIDERATIONS
10.1
Existing Conditions
10.2
Environmental Impacts and Planned Mitigation
10.3
Fisheries Concerns
10.4
Reclamation
12.0 CONCLUSIONS and RECOMMENDATIONS
12.1
Cost Estimate of Future Work
Appendix
I Statement of Qualifications
Appendix
II Statement of Expenditures
Appendix
III Timing of Work Completed
Appendix
IV Drill Logs
General
Location Map
Detail
Location Map
This report documents assessment work competed in 1999 to 2000 and to summarize the Kaolinite potential and outline a future work program for the Apple Bay Project.
The Apple Bay 1 – 11 and Jody 1 and 2 mineral claims cover readily accessible silica and alumina resources within the PEM100 Quarry and to the northwest towards the Pemberton Hills. The general geyserite section within the quarry and adjacent areas consists of an approximately 20-35 metre thick Lower Jurassic intensely silicified and clay altered rhyolite unit (flow banded and pyroclastic) above a lower less altered rhyolitic breccia. Drilling in 1999 and 2000 and surface assays indicate that 2 sub areas (Area A and B) contain about 5 million tonnes of material grading an average of 83.26% SiO2, 12.90% Al2O3 and 0.08% SO3. A third area (Area C) lies between Areas A and B and may contain an additional 4.3 million tonnes of silica-rich geyserite but more detailed drilling is required to determine total tonnage and grades.
Kaolinite has become an important constituent in many industrial applications. In British Columbia it is primarily used to make high quality paper, as a filler material in the paper making process and to impart a bright white colour and achieve stability qualities to the finished paper product.
Currently there is no source of high quality kaolinite in British Columbia and, as such, it is imported primarily from Georgia in the United States of America. The closeness of the Apple Bay kaolinite deposits to the large Pulp and Paper Industrial Complexes in British Columbia offers customers a potentially significant cost saving in terms of shipping a locally sourced product. Preliminary testing of the Apple Bay section indicates that the alumina values suggest locally high kaolinite content.
Kaolin accumulations may be either primary, as a result of in situ alteration of alumina-bearing minerals to kaolinite, or secondary as a result of deposition usually in fresh water (Bristow, 1987). If leaching is particularly intense, kaolinite is replaced by bauxite and quartz. Other mechanisms for developing primary deposits include the hydrothermal alteration of rocks by circulating hot water such as deep circulation of water through granitic rocks high in radiogenic elements or solfatara alteration associated with the waning phases of felsic volcanism results from hot water rich in sulphur altering rocks along the route to discharging as geysers and hot springs.
Throughout the property a further 9 geyserite zones have been identified by geological mapping. A 5000 tonne bulk sample was shipped in 1968 by Lafarge Inc. from a geyserite deposit in central Apple Bay, which is now covered by the Apple Bay One Mineral Claim. The PEM100 Quarry is approximately 12 kilometres west of the village of Coal Harbour and is not directly drained by major streams. The company is committed to develop the deposit in a manner that does not cause significant environmental impact during operation or after mine closure.
A total of 627.29m of diamond drilling was completed in November and December 1999 and March 2000 in 24 holes. Two bulk samples were extracted from the PEM100 Quarry during 2000. A 5400 tonne sample was taken in April 2000. This sample was trucked to Port Hardy and then barged to Tilbury’s Cement Plant in Delta B.C. for testing. A second 4000 tonne bulk sample was taken in July 2000. This sample was trucked to Port Hardy and shipment to the Tilbury Cement Plant in Delta, B.C. is planned for December 2000.
This report documents the results of the work program and experience gained while producing material in 2000 while establishing the first open cut bench. A detail plan is included, which outlines proposed work in 2001 to produce 240,000 tonnes annually of geyserite from which silica and alumina is obtained, further diamond drilling and the initiation of a research program into commercial products made from the higher grade (<25%) Al2O3.
3.0 LOCATION and ACCESS and FIELD PROCEDURES
Access
Map
The Apple Bay 1 – 11 and Jody 1 and 2 mineral claims are situated on rolling terrain with elevations ranging between 0m and 210m. The PEM100 Quarry is at an elevation of approximately 115m. The three Wann Knobs at the PEM100 quarry area gradually rise to the west into the Pemberton Hills.
Most of the claims are covered by second growth forest, some of which has been thinned. Some of the claims have been logged recently. Most of the logging occurred in 1988. Minor logging was done from the shore in the 1920’s.
Access to the claims is gained by travelling south for 16 km from Port Hardy along a paved road to Coal Harbour. From Coal Harbour travel west for 12 km along the Wanokana Mainline logging road to the Pemberton Mainline logging road and turn off onto the P100 branch road.
A road use agreement was negotiated for the year 2000 with Western Forest Products Ltd. the holder of Tree Farm Licence 6. Payments were made based on the cubic metres of geyserite hauled over the road system. This agreement will be renegotiated for subsequent years based on tonnage rather than cubic metres.
Field Procedures
Geological mapping was conducted on a 1:5,000 basemap obtained from Western Forest Products. Parts of this map were digitized to form a base for mine planning. Later the digital Trim data from government sources was used to create an accurate grid and UTM co-ordinates on the formerly imperial units forest company map. The central claims were surveyed by a registered BCLS in preparation for bringing this area to a mining lease. The drillhole collar location survey was tied into the legal survey.
The drill program was accessed by ATV and small bulldozer. The drillcore was carefully logged in a warehouse-shop facility in Port Hardy. The core is presently stored undercover on pallets at 6625 Port Hardy Road. The bulk samples were produced by drilling and blasting on a 3m by 3m hole pattern and transported by 50 tonne truck and transfer to Port Hardy. The timing of the first bulk sample program was April 19 – May 15, 2000 and the second bulk sample was July 15 – 30, 2000.
Claim
Map
The principal area of interest is covered by the Apple Bay
1 – 11 and Jody 1 and 2 mineral claims staked under the two-post and Modified
Grid Systems and registered in the name of J.T. Shearer and R. W. Howich. A comprehensive legal agreement was executed
between R. W. Howich and Homegold Resources Ltd. Homegold has now entered into an operating agreement with Electra
Gold Ltd. The interaction between these
agreements is beyond the terms of reference of this geological assessment.
|
TABLE I List of Claims |
||||||
|
Claim Name |
Tenure # |
Size |
Units |
Date Located |
* Current Anniversary Date |
Owner |
|
Apple Bay One |
371775 |
8E2N |
16 |
Sept.
16, 1999 |
Sept.
16, 2005 |
J. T. Shearer |
|
Apple Bay Two |
377240 |
5E4N |
20 |
May
17, 2000 |
May
17, 2005 |
J. T. Shearer |
|
Apple Bay Three |
371777 |
4E2N |
8 |
Sept.
18, 2000 |
Sept.
18, 2005 |
J. T. Shearer |
|
Apple Bay Four |
374744 |
4N4W |
16 |
March
11, 2000 |
March
11, 2006 |
J. T. Shearer |
|
Apple Bay Five |
373854 |
3N4E |
12 |
Dec.
5, 1999 |
Dec.
5, 2005 |
J. T. Shearer |
|
Apple Bay 6 |
374738 |
2 post |
1 |
March
9, 2000 |
March
9, 2004 |
R. W. Howich |
|
Apple Bay 7 |
374739 |
2 post |
1 |
March
9, 2000 |
March
9, 2004 |
R. W. Howich |
|
Apple Bay 8 |
374740 |
2 post |
1 |
March
9, 2000 |
March
9, 2004 |
R. W. Howich |
|
Apple Bay 9 |
374741 |
2 post |
1 |
March
9, 2000 |
March
9, 2004 |
R. W. Howich |
|
Apple Bay 10 |
377359 |
2 post |
Fr |
May
16, 2000 |
May
16, 2004 |
R. W. Howich |
|
Apple Bay 11 |
377360 |
2 post |
Fr |
May
16, 2000 |
May
16, 2004 |
R. W. Howich |
|
Jody 1 |
377262 |
2 post |
1 |
May
11, 2000 |
May
11, 2004 |
R. W. Howich |
|
Jody 2 |
377263 |
2 post |
1 |
May
11, 2000 |
May
11, 2004 |
R. W. Howich |
|
|
|
Total 80 units |
|
|
|
|
Note: Apple Bay 6-11 and Jody 1 & 2 have been legally surveyed and a Mining Lease is presently being applied (Lot 2323). Tenure number of future lease will be 379922.
Mineral title is acquired in British Columbia via the Mineral Act and regulations, which require approved assessment work to be filed each year in the amount of $100 per unit per year for the first three years and then $200 per unit per year thereafter to keep the claim in good standing.
Under the present status of mineral claims in British Columbia, the consideration of industrial minerals requires careful designation of the products end use. An industrial mineral is a rock or naturally occurring substance that can be mined and processed for its unique qualities and used for industrial purposes (as defined in the Mineral Tenure Act). It does not include “Quarry Resources”. Quarry Resources includes earth, soil, marl, peat, sand and gravel, and rock, rip-rap and stone products that are used for construction purposes (as defined in the Land Act). Construction means the use of rock or other natural substances for roads, buildings, berms, breakwaters, runways, rip-rap and fills and includes crushed rock. Dimension stone means any rock or stone product that is cut or split on two or more sides, but does not include crushed rock.
In the mid 1960’s to mid 1970’s the eastern and northern parts of
Quatsino Sound, including the area northwest of Apple Bay, was explored by Utah
Construction, which resulted in the discovery of the Island Copper Deposit in
1966. However several factors have
combined to make Utah’s work less than complete in the Apple Bay region. These are discussed by Pearson (1985) below:
1.
During
the drilling of the Island Copper Deposit and the early period of exploration
to the west, Utah employed a staff of ten geologists, most of whom developed a
considerable expertise in various phases of the work. When Utah decided to proceed with production, it drastically
reduced exploration expenditures.
Within a short time most of the staff had taken positions with other
firms. The few remaining were
transferred to other duties. Eventually
new employees were assigned to carry out further study on the island. This loss in continuity cost very dearly in
terms of efficiency and loss to the company of the personal knowledge of its
former employees.
2.
Early
exploration work relied very heavily upon soil geochemical techniques whereby
enhanced copper and molybdenum values in soil were assumed to reflect enhanced
values in the underlying bedrock. In
areas of deep soil cover, of glacially polished unweathered bedrock, and of
glacially transported soils, all of which are common here, the technique loses
much of its effectiveness. Previous
results must be interpreted with extreme caution, and negative results cannot
be assumed to have eliminated the ground from further consideration.
3.
On
of Utah’s soil geochemical anomalies stood out so strongly that it attracted a
disproportionate share of attention.
This anomaly led to the discovery of the Hushamu Mineralized Zone, but served
to distract from the systematic evaluation of other, somewhat more subtle
anomalies, few of which were ever followed up.
4.
Eventually,
relatively new employees with no firsthand knowledge of the ground decided to
begin divestiture of portions of the claim block. In the opinion of a number of former Utah employees, portions of
this ground had exceptional merit but had received inadequate work. These particular areas were acquired by
staking and a private company formed to facilitate exploration. Apparently Utah had serious misgivings after
dropping the claims, for it attempted to restake them. In this attempt, however, it was too late.
At the time of the Utah staking in 1967, the area around the present
location of the Apple Bay One Claim (H&W 6 and 8) was held by LaFarge
Cement as a potential source of silica.
A deep-water dock stood immediately adjacent to a small quarry carved in
a shoreline bluff of highly silicified rock.
Sample shipments were made in 1968.
It was assumed by Utah geologists that the silica was secondary in
nature because of the frequent appearance of ghost-like silicified fragments in
the silicified matrix. The prevalence
of pyrite lent weight to this interpretation.
Silicification processes were attributed to a zone of faulting which had
been postulated to puss up Holberg Inlet.
Utah’s early work on and adjacent to the present location of the Genstar
claims consisted of soil sampling along lines 500’ apart at intervals of
200’. Rudimentary mapping of geological
features was carried out by the college students employed in carrying out the
soil survey. All of the LaFarge ground
was included in this work, carried out under the direction of M. J. Young, who
reported results in Assessment Report #2190.
Young followed up this work with a program of nine very shallow x-ray
drill holes (EC-40 to EC-48). These
holes were closely grouped in an area now covered by Genstar claims H&W 1
and 3. The rationale for placement of
the holes in this location is unknown to us, and cannot be justified on the
basis of soil sampling data or the geological picture as then understood. Following the drilling, it was realized that
the holes had been drilled outside the boundaries of Utah’s claim holdings. There was no follow-up.
In 1971 G. A. Clouthier was assigned to carry out a detailed program on
the southeastern portion of Utah’s Expo group.
The program consisted of geological mapping at a scale of 200’ to the
inch and ground magnetometer and induced polarization surveys. Clouthier’s work was controlled by a grid
established along lines 400’ apart, with stations marked at intervals of
200’. Since Utah’s boundaries were
contiguous with those of the LaFarge claims and since these were immediately
adjacent to the inlet, he included the ground for the sake of completeness.
Clouthier mapped, and recognized as secondary in nature, the quarry area
earlier worked by LaFarge. He also
mapped another area of alteration to the west, centred on a small east-west
trending hill and extending down to the shore.
He characterized most of the alteration as siliceous, but located on
outcrop in the intertidal zone which was characterized by clay alteration and
sulfide mineralization. Assays showed
the presence of copper (0.41%) and molybdenum (0.001%). This zone is presently covered by Apple Bay
One Claim (H&W 1 and 2). Because of
the property situation, no follow-up was carried out.
Clouthier’s induced polarization survey delineated several areas
relatively rich in sulfides and/or clay.
One of these lies about half a mile north of the present northern
boundary of the Apple Bay One Claim on Apple Bay Three. Two drill holes
totalling 1050’ were put down. Logging
was carried out by Clouthier under the supervision of B. D. Pearson. Core from both holes consisted of
clay-silica-pyrite-altered volcanics throughout. Traces of molybdenum were found near the base of one hole. About this time attention was diverted to
the Hushamu Zone. Utah carried out no
further work of significance in the Wanokana area.
In 1979 Inland Cement, which had acquired eight claims along the sore of
Holberg Inlet covering the ground formerly held by LaFarge, carried out a
program under the direction of D. Blender.
Results are reported in B.C. Department of Mines Assessment Report #8151. The main thrust of the work was the sampling
of the siliceous rock in order to test for purity and to determine its grinding
properties. At the same time,
consulting geologist W. G. Stevenson was asked to prepare a geological
map. This task was subcontracted to
Harold Jones of G. A. Noel & Associates.
Mr. Jones is a competent field geologist and, coincidentally, a former
Utah employee, but he had had no previous experience on Utah’s various
properties in the Port Hardy area. He
failed to recognize the secondary nature of the two silicified zones, referring
to the eastern one as rhyolite (a light-coloured volcanic rock with above
average silica content) and the western one as rhyodacite (a volcanic rock
similar to rhyolite but with somewhat lower silica content). The boundaries of his rock units coincide
will with those mapped by Clouthier.
Only the interpretations differ.
However, Jones failed to note the existence of the shoreline outcrop,
which contains copper-molybdenum mineralization. Possibly it was concealed by tidewater at the time of his
examination.
Following acquisition of the ground west and north of the Genstar claim
by Western Pocasset Resources, Ltd. in 1982, B.C. Pearson made an inspection of
outcrops exposed by the recent construction of logging roads. He noted that by the main haulage road cut
across the northwestern margin of the western alteration zone. He located samples in the outcrop, which
were made up of breccia fragments containing secondary clay, silica,
pyrophyllite and as much as 30% pyrite.
Furthermore, mercury values ran as high as 1500 ppb, a clear indication
of the hydrothermal nature of the rock alteration.
Pearson had carried out or supervised most of the logging of the drill
core during the delineation of the Island Copper Orebody. He immediately recognized that the rock here
was identical to that which formed a barren capping over the western half of
the Island Copper deposit. The
implications were clear. The hill very
probably formed a barren capping over a concealed body of copper
mineralization, and that capping was probably relatively thin, for copper
mineralization outcropped along the southern margin at the shoreline.
Porphyry copper centres usually have other peripheral manifestations
beside the intense alteration discussed above.
One of these is the presence in the surrounding rocks of veins
containing sulfide mineralization. We
have been successful in locating such veins about 2500’ to the west of the very
intense alteration. Here they consist
of pyrite in andesitic volcanic rock, which has been altered to a propylitic
mineral assemblage, a type compatible with the marginal zone of a porphyry
copper deposit. Analyses of the pyrite
revealed a gold content of 149ppb.
Normally one would expect a value under 5 ppb. An inspection of Clouthier’s mapping showed that he too had
located vein mineralization peripheral to the western alteration zone, in a
location just north of Genstar claim H&W 3. He noted the presence of chalcopyrite (which contains copper),
galena (lead) and sphalerite (zinc).
In the eastern part of the Pemberton Hills, Utah’s early soil geochemical
work revealed the existence of an anomalous zone with values co-incident in
copper, molybdenum and zinc. The zone
is elongate down a western slope and has a total length on the order of
4000’. Although outcrops are entirely
lacking in the immediate area, early work by students and later detailed work
by Ascensios indicates that the area is probably underlain by a complex contact
zone between andesitic volcanic rocks and later dioritic and porphyritic
monzonite intrusives. This environment
is extremely suggestive in terms of its potential for localizing sulfide deposition,
and should be investigated further in view of the presence there of the
geochemical anomaly.
Two areas along the southern part of the block are underlain by
fragmental rhyolitic rocks. These areas
may be continuous with one another, but lack of outcrop precludes certainty at
this time. During the period 1906-1907,
about 1500 tons of limonite was mined from the surface here and shipped to an
iron works in the Seattle area. The
limonite was apparently derived by leaching of pyrite in the bedrock upslope
from the swampy areas where deposition occurred. The western rhyolitic area has yielded two soil samples running
738 and 246 ppm copper. These values
are the highest and fifth highest respectively of the over 3300 soil copper
values obtained by Utah over the southeastern quarter of the 888 claim
group. Reconnaissance samples yielded a
mercury value in excess of 700 ppb, which tends to confirm the presence of
hydrothermal activity in the area.
Within the second area of rhyolitic volcanism we have discovered a bed of
pyrite and chert with anomalous values in arsenic. One specimen assayed 0.028 oz/ton in gold. (The presence of arsenic is often a clue to
the presence of gold.) To the best of
our knowledge, this is the first demonstration of bedded massive sulfides
within the Bonanza sequence of northern Vancouver Island. The existence of such material was
postulated in a report by Pearson to Chevron Minerals dated December, 1974, and
amplified in a report to Metallgesellschaft dated March, 1978. We believe that this horizon should be
traced laterally by geophysical means and, if results of the geophysical survey
warrant, tested at depth for the possible presence of copper-zinc-gold-silver
ore shoots. Values for the precious
metals in a massive sulfide environment are likely to be enhanced with respect
to base metal values as compared with those to be found in a porphyry copper
environment.
Trim
Map
The basement upon which the rocks of northern Vancouver Island were laid down is probably of Middle to Upper Paleozoic Age. At the time of deposition, the landmass, which now makes up Vancouver Island, was located in the equatorial regions of the Pacific Ocean. It consisted of felsic to basic volcanics deposited in a submarine environment. The very important copper-zinc-gold-silver ore bodies at Western Mines’ Buttle Lake operations were developed within this sequence.
In Upper Triassic time (about 200 million years ago), these basement rocks were covered by a series of pillow lavas and flows largely of basaltic composition. Total thicknesses extruded probably exceed 2400 metres. These rocks are known today as the Karmutsen Formation.
Following this period of basaltic volcanism, carbonate rocks (the Quatsino Limestone) accumulated to thicknesses of about 300 metres, although a much thinner section appears to be the rule north of Holberg Inlet. Of importance from an economic standpoint is the correlation between the Karmutsen – Quatsino section of Vancouver Island and the Nikolai Greenstone – Chitistone Limestone section of southeastern Alaska, both of which are part of the same Central Pacific terrane. The Nikolai, like the Karmutsen, is considerably enriched in copper as compared with the average basalt. The Chitistone Limestone was host to the very high-grade Kennecott Copper deposit, which was apparently derived by re-concentration of the much lower-grade copper disseminated through large volumes of Nikolai rock.
Above the Quatsino Formation there is generally found a clastic section of which appears to be of slightly different age and of varying composition in different parts of northern Vancouver Island. Depending on age, composition and location, it is known as the Parson Bay Formation or the Harbledown Formation. The Parson Bay is somewhat calcareous and of upper-most Triassic age while the Harbledown is more argillitic and of lower-most Jurassic age. Above the sedimentary section are the Jurassic Bonanza Volcanics, an assemblage of flows, tuffs and fragmentals largely of andesitic composition, but with minor basaltic and rhyodacitic sections.
During and after eruption of the Bonanza Volcanics, granitic bodies were emplaced within the Karmutsen-Quatsino-Bonanza sequence. These bodies ranged in size from dykes and small plugs to masses of batholithic proportions. Some of these intrusives formed the underground reservoirs, which broke through to surface to deposit the Bonanza Volcanics.
Reaction between these very hot, high-level vent zones and circulating groundwater and seawater led to the development of numerous zones of highly altered rock, within or adjacent to which are copper-gold-molybdenum deposits. The alteration zones are generally characterized by the presence of large amounts of silica, clay minerals, pyrite, pyrophyllite and laumontite. Of the various alteration zones, perhaps 90% are located in the belt immediately north of Rupert and Holberg Inlets particularly in the vicinity of the PEM100 Quarry and Pemberton Hills, which are covered by the Apple Bay and Jody Claims.
At some time during the latter part of the Jurassic, following a long period of northward drift, the Vancouver Island – Queen Charlotte Islands – Southeast Alaska terrane, apparently somewhat fragmented, collided with and fused to the North American Continent. Following this accretion, and a general elevation of the landscape probably caused related to the mechanics of collision, highland portions of the terrane were eroded into basinal areas, forming continental transgressive sandstones of Cretaceous age, which included numerous coal measures, those of the Nanaimo basin being most notable. One of the small basins of sandstone extends from the western edge of the Island Copper Mill area to the vicinity of Apple Bay, which lies to the east of the claims. Since the deposition of these various sandstones, there has been minor volcanic and intrusive activity on the island.
Comprehensive geological mapping of Northern Vancouver Island was carried out during the late 1960’s, the bulk of it by Dr. Jan Muller of the Geological Survey of Canada with major assistance by Dr. Kenneth Northcote of the B.C. Department of Mines. The results of their mapping are summarized on G.S.C. Map 1552A. More recently, mapping was carried out on map sheets NTS 97L/12 and 92L/11W by Hammock, J. L. et. al in the 1990’s. The results of this work, which was produced by the Geological Survey Branch of the British Columbia government is available in both digital and hard copy formats.
7.0 PROPERTY
GEOLOGY and CHALKY GEYSERITE and
KAOLINITE
POTENTIAL
Regional
Geology Map
7.1 Geology and Alteration
Geological mapping and diamond drilling on the Apple Bay Project indicates that the area extending northwest from the PEM100 Quarry to and including the Pemberton Hills is underlain by a series of large-scale extrusive rhyolite dome. These rhyolite domes are made up of both flow banded and coarse pyroclastic units containing differing Al2O3 contents. These units form steep bluffy knobs on the property and blocky talus fans occur at the base of the bluffs.
The introduction of intrusive granitic rocks into the Bonanza Volcanics created high level vent zones, which along with heated ground water, strongly altered the rhyolitic rocks with the introduction of silica and clay minerals. Late stage intense acid sulphide and advanced argillic alteration occurred throughout the entire system.
Geological mapping and drill core logging indicate that an intensely altered 20-35 metres thick section of rhyolite (identified as white chalky geyserite) overlies a unit of less altered rhyolitic breccia. the white chalky geyserite is of primary economic interest because of its silica and alumina content. The white chalky geyserite is made up of interbedded units of flow banded rhyolite and coarse pyroclastic (fragmented) rocks. These units are described below:
1) Flow Banded White Chalky Geyserite
· Fine-grained matrix with weak to pronounced flow banding.
· some flow folding is present as shown by convoluted bands.
· flow banding often exhibits welded texture.
· limonite staining is common and flow banded sections often appears to contain more kaolinite alteration than the more siliceous fragmented units.
· occasionally flow top brecciation is observed.
2) Fragmental White Chalky Geyserite (Breccia)
· often intensely silicified matrix with chalky clay (argillic) altered fragments.
· More strongly silicified fragment appears to be found near flow-bonded units. Some fragments appear to be partially digested.
· fragments can be >10 cm in diameter and can vary from rounded to angular in shape.
· fragments sometimes appear to be flattened into elongated shapes.
The fragmented rhyolitic (breccia) that underlies the white chalky geyserite is described below:
1) Less Altered Fragmented Rhyolite
· unit is medium green coloured.
· fragments are fine grained, closely packed in a dark grey matrix
· minor fine-grained pyrite along fractures possibly associated with some yellowish alunite alteration.
· some fragments are kaolinized but are not bleached out.
Diamond drilling identified two areas that contained sufficient geological potential and grade projection to warrant a statistical analysis of reserves. This work is documented in Section and Plan maps and data tables prepared using computer smoothing techniques by Nilsson (2000). A summary of the geyserite potential is approximated by manual method as outlined below:
Area A (Surrounding PEM100 Quarry)
Drill holes 1 – 6, 9, 13 and 19 used
The thicknesses of geyserite in each hole were averaged to produce a minimum thickness of 25.06m.
Area B (150m NW of Area A)
Drill holes 15 and 17 used
The thicknesses of geyserite in each hole was averaged to produce a minimum thickness of 21.34m.
Using a specific gravity of 2.6 tonnes per cubic metre for geyserite, the potential of chalky geyserite is estimated to be:
Geological Potential: Area A 60,000 m2 x 25.06m thickness x 2.6 tonne/m3
= 4 million tonnes grading 83.66% SiO2, 12.49% Al2O3 and 0.09% SO3
Geological Potential: Area B 20,000 m2 x 21.34m thickness x 2.6 tonne/m3
= 1.11 million tonnes grading 81.89% SiO2, 14.33% Al2O3 and 0.05% SO3
The total Chalky Geyserite Geological Potential is:
5.02 million tonnes grading 83.26% SiO2, 12.90% Al2O3 and 0.08% SO3
The 150+ metre wide area between Area A and B requires more evaluation by drilling. this area is identified as Area C. Area C has the potential to contribute an additional 4.3 million tonnes to the chalky geyserite potential. An economic evaluation of this potential is recommended using as criteria the current price of a similar material from Sumas Mountain in Abbotsford. It appears that the barging in bulk from Port Hardy or Rupert Inlet is highly competitive with trucking from Sumas Mountain to Mission Loading Facility.
7.2 Diamond Drilling
A total of 24 diamond drillholes were completed on the property between late 1999 and March 2000. The holes are listed in Table II (page 8). The other 9 geyserite zones have not been drilled to date. Preliminary surface sampling suggests that the other zones have similar distribution of primary rock chemistry.
A typical sample of Chalky geyserite has the following trace elements:
TABLE IITrace Element Content of Chalky Geyserite |
|||||||||||||
|
Mo |
Na% |
Ni |
P |
Pb |
S% |
Sb |
Sc |
Sr |
Ti% |
Tl |
U |
V |
W |
|
2 |
<0.01 |
1 |
110 |
24 |
0.02 |
<2 |
<1 |
33 |
<0.01 |
<10 |
<10 |
3 |
<10 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Zn |
Ag |
As |
B |
Ba |
Be |
Bi |
Cd |
Co |
Cr |
Cu |
Ga |
Hg |
Mn |
|
<2 |
0.2 |
6 |
<10 |
60 |
<0.5 |
<2 |
<0.5 |
<1 |
12 |
12 |
<10 |
<1 |
<5 |
ppm except where shown
TABLE IIIDiamond Drill Data |
||||||||
|
HOLE # |
N. |
E. |
LENGTH |
DIP |
AZIMUTH |
ELEVATION |
REMARKS |
|
|
ABBY-99-01 |
9506.30 |
7685.30 |
39.62 (130’) |
-90 |
000 |
115.00 |
Removed top 20 feet of drill hole in Bulk Sample 2 |
|
|
ABBY-99-02 |
9613.80 |
7731.40 |
45.72 (150’) |
-90 |
000 |
128.50 |
|
|
|
ABBY-99-03 |
9589.10 |
7729.50 |
45.72 (150’) |
-90 |
000 |
129.50 |
in Bulk Sample 1 |
|
|
ABBY-99-04 |
9562.00 |
7723.00 |
45.72 (150’) |
-90 |
000 |
129.00 |
in Bulk Sample 1 |
|
|
ABBY-99-05 |
9601.40 |
7708.20 |
18.29 (60’) |
-90 |
000 |
118.20 |
First Bench |
|
|
ABBY-99-06 |
9580.00 |
7700.00 |
18.29 (60’) |
-90 |
000 |
116.00 |
First Bench |
|
|
ABBY-99-07 |
9164.30 |
7780.40 |
30.48 (100’) |
-90 |
000 |
111.20 |
West near 100C |
|
|
ABBY-99-08 |
Lost in Overburden (19’) |
|||||||
|
ABBY-99-09 |
9511.10 |
7758.70 |
30.48 (100’) |
-90 |
000 |
127.20 |
on Road P100A |
|
|
ABBY-99-10 |
9258.20 |
7745.90 |
29.77 (97’) |
-90 |
000 |
106.10 |
east of 7, west of site of 8 |
|
|
|
|
Subtotal 1,016 ft. |
||||||
|
ABBY-00-11 |
9457.0 |
8075.00 |
12.20 (40’) |
-90 |
000 |
176.76 |
In gouge |
|
|
ABBY-00-12 |
9417.10 |
8034.70 |
15.55 (51’) |
-90 |
000 |
156.80 |
In gouge |
|
|
ABBY-00-13 |
9601.50 |
7804.00 |
13.41 (60’) |
-90 |
000 |
140.00 |
Road 100A |
|
|
ABBY-00-14 |
9654.00 |
7890.00 |
15.25(50’) |
-90 |
000 |
150.00 |
Road 100A |
|
|
ABBY-00-15 |
9390.00 |
7974.00 |
12.20(75’) |
-90 |
000 |
168.00 |
|
|
|
ABBY-00-16 |
9283.20 |
7964.20 |
30.79 (101’) |
-90 |
000 |
161.20 |
Upper drill road |
|
|
ABBY-00-17 |
9415.5 |
7901.9 |
30.49 (100’) |
-90 |
000 |
157.50 |
|
|
|
ABBY-00-18 |
9447.50 |
7846.80 |
30.79 (101’) |
-90 |
000 |
156.20 |
|
|
|
ABBY-00-19 |
9526.0 |
7825.00 |
30.79 (101’) |
-90 |
000 |
159.70 |
|
|
|
ABBY-00-20 |
9222.30 |
7991.30 |
30.49 (100’) |
-90 |
000 |
167.64 |
|
|
|
ABBY-00-21 |
9161.20 |
8093.50 |
21.39 (75’) |
-90 |
000 |
182.88 |
|
|
|
ABBY-00-22 |
|
|
30 (76’) |
-90 |
000 |
103.63 |
at km 52 sign on mainline |
|
|
ABBY-00-23 |
|
|
30 (61’) |
-90 |
000 |
102.11 |
on road 100B |
|
|
ABBY-00-24 |
9052.50 |
7710.60 |
40 (51’) |
-90 |
000 |
108.30 |
end of road 100C |
|
|
|
|
|
Subtotal 1,042 ft |
|||||
|
|
|
|
Total Footage = 2,058 ft = 627.29m |
|||||
All drillholes have been completely assayed from the top of the hole to the bottom. Drill logging procedures, core splitting protocol and assaying have been reviewed and found to have been done to a high standard. Most of the assaying was done by the x-ray chemist at the Tilbury Cement Plant in Delta to exact cement industry standards. Check assays were completed with Chemex Labs.
7.3 Trenching and Bulk Sampling
The location of the bulk sample is shown on Figure 6a (in pocket). The grade of the bulk sample was estimated on the basis of diamond drillholes 3 & 4. Assays of the barge load at the Tilbury Plant showed a close correlation of these results averaging about 12% Al2O3. Handling characteristics, burning properties and quality of cement produced suggest that chalky geyserite is a superior raw material.
8.0 PREVIOUS
GEOCHEMISTRY and GEOPHYSICS
8.1 Previous Geochemistry
As noted in the History section, the entire property was covered by wide
spaced soil lines in the early to late 1960’s by Utah Construction shortly
after the discovery of the Island Copper Deposit.
Early
exploration work relied very heavily upon soil geochemical techniques whereby
enhanced copper and molybdenum values in soil were assumed to reflect enhanced
values in the underlying bedrock. In
areas of deep soil cover, of glacially polished unweathered bedrock, and of
glacially transported soils, all of which are common here, the technique loses
much of its effectiveness. Previous
results must be interpreted with extreme caution, and negative results cannot
be assumed to have eliminated the ground from further consideration.
On of Utah’s soil geochemical anomalies stood out so strongly that it
attracted a disproportionate share of attention. This anomaly led to the discovery of the Hushamu Mineralized
Zone, but served to distract from the systematic evaluation of other, somewhat
more subtle anomalies, few of which were ever followed up.
Utah’s early work on and adjacent to the present location of the Genstar claims
consisted of soil sampling along lines 500’ apart at intervals of 200’. Rudimentary mapping of geological features
was carried out by the college students employed in carrying out the soil
survey. All of the LaFarge ground was
included in this work, carried out under the direction of M. J. Young, who
reported results in Assessment Report #2190.
In the eastern part of the Pemberton Hills, Utah’s early soil geochemical
work revealed the existence of an anomalous zone with values co-incident in
copper, molybdenum and zinc. The zone
is elongate down a western slope and has a total length on the order of
4000’. Although outcrops are entirely
lacking in the immediate area, early work by students and later detailed work
by Ascensios indicates that the area is probably underlain by a complex contact
zone between andesitic volcanic rocks and later dioritic and porphyritic
monzonite intrusives. This environment
is extremely suggestive in terms of its potential for localizing sulfide
deposition, and should be investigated further in view of the presence there of
the geochemical anomaly.
Two areas along the southern part of the block are underlain by
fragmental rhyolitic rocks. These areas
may be continuous with one another, but lack of outcrop precludes certainty at
this time. During the period 1906-1907,
about 1500 tons of limonite was mined from the surface here and shipped to an
iron works in the Seattle area. The
limonite was apparently derived by leaching of pyrite in the bedrock upslope
from the swampy areas where deposition occurred. The western rhyolitic area has yielded two soil samples running
738 and 246 ppm copper. These values
are the highest and fifth highest respectively of the over 3300 soil copper
values obtained by Utah over the southeastern quarter of the 888 claim
group. Reconnaissance samples yielded a
mercury value in excess of 700 ppb, which tends to confirm the presence of
hydrothermal activity in the area.
8.2 Previous Geophysics
In 1971, Utah Construction carried out a detailed geophysical program on
the southeastern portion of their Expo Group covering the present Apple Bay
Claims. The program consisted of ground
magnetometer and induced polarization surveys conducted on lines 200’
apart. Several of the Numerous
anomalies were drilled in subsequent years.
8.3 Previous Diamond Drilling
The main program of diamond drilling was carried out in 1992 totalling
over 6,000 feet in length (Pearson, 1992).
The core from this program is stored south of Road branch P500 just
north of the Wann Knobs. Some short
holes were drilled on Apple Bay One in an earlier program. A series of highly altered rocks were encountered. Low grade copper-molybdenum was intersected
about 1 km to the north of the Wann Knobs along the contact with an intrusive
body. This is the same environment that
hosted the Island Copper ore body
(intrusive contact/Bonanza volcanics/intense alteration zones). This core should be relogged with specific
attention given to the alteration facies and development of kaolinite.
9.1 Drilling
The proposed project includes a quarry with a mobile crushing plant with a capacity of 300 tonnes per hour, a stockpile area for crushed material, a loading conveyor and a truck loading facility.
9.2 Quarry
Development
The deposit, shaded on the development plan, Figures 7 and 8, includes approximately the quarry area to be developed. Starting near the south boundary of Lot 2323 Mining Lease, the quarry will be worked in a series of 8 to 10 metre-wide benches with backwalls of about 12 metres and will be developed as required to accommodate elevation increasing by about 80 metres to produce a total of about 5,000,000 tonnes at 240,000 tonnes per year.
The removal of the minimal overburden, consisting of soil, sand, gravel and boulders, mainly in the southwest of the developing quarry, will be stored in a berm along the quarry edge. This may be utilized as filter beds for precipitation runoff and later in the reclamation of mined-out quarry areas.
The initial configuration of the quarry during 2000 used the following equipment:
9.3 Crushing
Plant
The material was primary crushed through a Hewitt-Robbins 24x36 jaw crusher being fed by a Cat 980C wheel loader. This reduced the material to approximately 150mm size (minus 6”). Some of the initial product was screened by a power screen into a minus 1” and 1”-6” resulting streams.
9.4 Conveyor
System
The loading of the 19mm material was accomplished by feeding through a 12 cubic metre surge bin, then onto a 15 metre conveyor, which feeds the 30 metre stacker, which deposits the material into the trucks or stockpile.
9.5 Stockpile
A stockpile capable of holding up to 50,000 tonnes of crushed material ready for trucking was required. The pile will cover approximately 5,000 to 7,000 square metres and reach a height of 10-12 metres. The stockpile will be located adjacent to the crushing facility.
9.6 Trucking
Facilities
The trucks and transfer trailers will be loaded from the stockpile by mobile rubber-tired loader.
9.7 Barge Facilities
Barging will be through a new dock structure and existing stacking conveyor near Jensen Cove in Port Hardy. A proposal has been designed by P. Steffens, P. Eng. Future developments may use the ship loader at the old Island Copper site on Rupert Island, which can load ships up to 45,000 tonnes capacity at a rate of 1600 tonnes per hour.
9.8 Reclamation
The quarry will be progressively reclaimed, as outlined in Section 8.4, as the mining area advances and sufficient ground is made available for reseeding to forest values.
10.0 ENVIRONMENTAL CONSIDERATIONS
10.1 Existing
Conditions
The project, because of its proximity to Wann Knobs and Wanakana Creek riparian environment required careful planning to minimize impacts.
The area is within the Tree Farm Licence 6 held by Western Forest Products Ltd. and has been extensively logged in the recent past. The largest nearby logging centre is located at Port McNeill. Other land uses include hunting, native food, with sports and commercial fishing in nearby Holberg Inlet.
The quarry site is located within the Coastal Hemlock-Douglas Fir-Cedar biogeoclimatic zone. The area receives on the order of over 150+ cm of precipitation per year. The site is at an elevation of 100 to 250 metres ASL. The on-site upland vegetation is mixed Cedar, Fir and Hemlock forest, which is somewhat scrubby due to the presence of rock outcrops. No evidence of wildlife licks or trails has been observed, although bears and deer have been seen on the property during exploration work. Two small drainages convey runoff north from the area. These two appear to dry periodically. The ground slopes away to Wanakana Creek on the east, Holberg Inlet on the south and Youghpan Creek to the west.
The broader area of the Wanakana Creek watershed has been altered from its natural state through activities related to intensive forestry. In particular, the occurrence of logjams has cut off access to various areas of fish habitat.
10.2 Environmental
Impacts and Planned Mitigation
The rock (chalky geyserite) to be quarried is relatively pure and chemically inert. The main knoll will be quarried leaving either level ground or a quarry, which extends down from the ridge crest to avoid the vertical cliffs on the north side of the knoll. The total area to be affected by the quarry, stockpile and loading facilities will be about 8 hectares by the end of the 30 year mine life.
The overburden consists of a thin layer of topsoil, which can be set aside and used as filter for quarry runoff until reclamation. The chalky geyserite, with the exception of a few minor fault areas is fairly pure and the entire amount of quarried material will be shipped out. A very minor amount of material in the fault/fold hinge areas is softer and somewhat mineralized and may not be useable. Thus, some minor waste material could be expected. This material can be used to form a base for the stockpile or returned to the pit.
Most of the stockpile may be located above the 100m elevation. Drainage from the quarry and from the stockpile will be directed into a major settling pond. Some filtration through overburden material or settling in a reservoir used for dust control is possible.
The minor silica content is mainly in the form of inert silica, and thus is not expected to be crystalline in nature. The Workers’ Compensation Board requires that workers who may be exposed to more than 51% crystalline silica dust above the regulated limits must wear suitable respiratory protection. Subject to air-bourne dust sampling, in most instances properly fit tested on-half face respirators with High Efficiency Particulate Arrestor (HEPA) cartridges and disposable coveralls will be acceptable. Workers will be trained in the proper use of the respirators if required as well as the nature of the hazard to comply with Federal WHMIS Regulations. Homegold Resources Ltd. is committed to putting in place suitable controls to minimize the effects of dust generation, if necessary.
Quarrying, crushing, stockpiling, and loading of the crushed rock are all physical activities. Water spray will be used to control dust if necessary, in which case; some or all of the quarry drainage will be contained to provide a water source. All further processing will be off site.
Reasonable efforts to minimize the visual impact of the project, particularly from the west along Holberg Inlet, will be made. A screen of vegetation will be preserved wherever possible. Because the material is formed along a knoll, quarrying can be conducted either from the top down or back to front and this will be done subject to practical and economic constraints. The knoll formation also means that rock faces remaining at the end of the project will be low profile and easily screened by vegetation. A conveyor will be required for loading and some clearing and levelling of the immediate loading area will be required.
As a result of the small scale of the project and the relatively benign nature of the environmental impacts, the anticipated environmental concerns from this project are relatively minor.
10.3 Fisheries
Concerns
The Wanakana Creek supports anadromous stocks of sockeye, pink, chum, coho, chinook and steelhead as well as stocks of rainbow trout, Dolly varden and other non-sports fish. In addition to their contribution to commercial and native fisheries, these stocks form the basis of an important recreational fishery in the province.
Careful management of site drainage, removal of vegetation and overburden to prevent downslope impacts, particularly the introduction of silt laden water to any of the three watercourses will be undertaken. Because the site is located at the top of a hill site drainage concerns are limited to the precipitation falling on the site only. Overflow from the settling ponds will not exceed 75mg/1TSS.
As mentioned above, there are very significant fisheries resources in the vicinity. Due, however, to the location of the site on a hilltop and the nature of the material to be quarried, there should not be any impacts provided the site drainage is managed to prevent siltation problems. No treatment of site runoff is planned other than settling ponds and filtration required to address this issue.
The actual quarry will cover an area of 8 hectares and the vegetation and overburden will be removed from this area sequentially over the life of the quarry. Reclamation will be conducted on disused areas of the quarry using overburden, which has been stockpiled, or from areas which are to be opened. Replanting will be done using native plants, again from on site areas where possible.
Existing roads and infrastructure are available for this project, thus, physical impacts are limited to the area of the quarry. The hilltop location east of the vertical cliff face eliminates any visual impacts of the project and simplifies final reclamation. Only stepped rock faces will be left at the end of the quarry life.
10.4 Reclamation
At the end of the lifespan of this quarry it is expected that an excavation extending below 100m elevation will remain. The proposed reclamation of the area is outlined below.
The first option is that the natural small cliff-scarp topography of the area would be replicated by the quarry walls. Backfilling is considered to be impractical since the chalky geyserite product is shipped out in its entirety. The areas where quarrying is completed and the quarry floor at the 100m level will be progressively reclaimed.
In the event that the quarry is shut down before it extends to the 100m level, it would be graded and sloped with the overburden material remaining on site and reseeded. The stockpile base will be graded back down to the former level in order to re-establish forest habitat.
Based on experience gained during the pioneering work in 2000 producing 10,000 tonne bulk sample of initial product, the following proposal is envisaged to produce at least 100,000 tonnes in as shown on the Mine Plans.
1) Limited pioneering on bench level 100m and bench level 110m (immediately above the existing 100m bench established by the Forest Company), continuing south past the partially stripped area prepared in 2000. This will require some minor stripping and moving of overburden.
2) Move jaw crusher to the 100m bench (eliminating Truck tramming of muck). Pit run material can then be trammed the short distance by bulldozer or rubber tired loader to the jaw crusher.
3) Convey the 6” minus crush (and screened, if required) to the existing stockpile area, a horizontal distance of 50m and use a radial stacker or:
4) extend the haul road to the southern limit of the chalky geyserite exposure for ease of access to the 100m bench (which gives the option for the truck and transfers to load at the crusher site as well as the present stockpile area).
5) The jaw crusher should be increased to the 36”x48” size. Perhaps this mobile jaw crusher could be co-ordinated with the plans to open the Port Hardy Shale Pit quarry.
6) The drill pattern will remain at 9’x9’ using a 3” hole diameter by Airtrac. Once a wide bench is established in the future, a larger production drill rig delivering a large diameter hole can be employed. The holes will be bottom primed and filled with Anfo. The relatively small wet areas will be carefully monitored and all stick powder used if required.
7) The bench height may be slightly less than 40 feet (12.2m) since the main machine moving muck is a Samsung 350-2 tracked excavator with a reach of 37.5 feet.
12.0 CONCLUSIONS and RECOMMENDATIONS
Acquisition and preliminary evaluation of the PEM100 Chalky Geyserite and Kaolinite Quarry was undertaken in October 1999 for Homegold Resources, which has entered into an agreement with Electra Gold Ltd. The alumina and silica resource at PEM100 is a source for the raw material requirements of the cement plant operated by Tilbury Cement in Delta, B.C. A 25-35 metre thick Lower Jurassic sequence of intensely silicified and clay altered rhyolite flows and pyroclastic units of the Bonanza Group outcrop along a 320º trend for more than 800 metres from the PEM100 Quarry towards the Pemberton Hills. Electra Gold will concentrate on producing high-grade (>25% Al2O3), which will be investigated by a diamond drill program in 2001 and initiation of research into the manufacture of commercial kaolinite products.
Two main sub areas of chalky geyserite have been outlined by drilling to date on the PEM100 zone. Area A covers a 60,000m2 area around the PEM100 quarry. This 27.77m thick zone contains a geological potential of about 4 million tonnes of geyserite grading approximately 83.66% SiO2, 12.49% Al2O3 and 0.09% SO3. Area B is located approximately 150 metres northwest of Area A and it covers a 20,000m2 area in a saddle between to Wann Knobs. The 21.34m thick Area B zone contains a geological potential of about 1.11 million tonnes of material grading approximately 81.84% SiO2, 14.33% Al2O3 and 0.05% SO3. The total geological potential of both Area A and B is about 5 million tonnes grading 83.26% SiO2, 12.90% Al2O3 and 0.08% SO3.
An area of approximately 8 hectares will be required to be cleared for the initial quarry development. Environmental impacts are expected to be minimal. Several options for reclamation are proposed. The initial open cut of about 5 million tonnes is expected to be sufficient for the cement plant’s requirements for about 30 years.
Approximately 9400 tonnes of chalky geyserite were drilled and blasted in 2000 on the initial pioneer bench at 100m elevation. This material was barged to the cement plant for an industrial trial. The results are ongoing.
Plans for 2001 propose pioneering a second bench level between 100m and 124m elevation toward the north with a 36”x42” jaw crusher on the 100m bench established in 2000. Detail plans are included in this report.
Respectfully submitted,
J. T. Shearer, M.Sc., P.Geo.
Consulting Geologist
September 16, 2000
12.1 Cost Estimate for Future Work
Phase I
Diamond Drilling, Geological Mapping, Research into Specific Products
Geological mapping and property maintenance $ 18,000.00
Diamond drilling, 400m @ $82.50 per metre 33,000.00
Supervision, mob & demob, Core splitting 3,000.00
Analytical 6,000.00
Mapping, Report preparation, word processing 5,000.00
Product research and production 35,000.00
Total Phase I $ 100,000.00
Phase II
Follow up Diamond Drilling, Quarry Design, Detail Sampling, Product Optimization
Geological Supervision $ 12,000.00
Diamond drilling, 600m @ $82.50 per metre 49,500.00
Supervision, mob & demob, Core splitting 4,000.00
Analytical 8,000.00
Quarry design 15,000.00
Product Optimization 61,500.00
Total Phase II $ 150,000.00
Total Phase I & II $ 250,000.00
Respectfully submitted,
J. T. Shearer, M.Sc., P.Geo.
Consulting Geologist
September 16, 2000
Ascencios, A., 1973:
Expo Group, B.C. Department of Mines Assessment Report #4754.
Bristow, C. M., 1987:
World Kaolins: Genesis, Exploration and Application Industrial Minerals, July 1987, pp 45-59.
Cargill, D. G., Lamb, J., Young, M. J. and Rugg, E. S., 1976:
Island Copper. In C.I.M. Special Volume 15, Porphyry deposits of the Canadian Cordillera, pp. 206-218.
Clouthier, G., 1971:
Expo Group, B.C. Department of Mines Annual Report #3402.
Hammack, J. L., Nixon, G. T., Koyan, V., Payie, G. J., Panteleyev, A., Massey, N. W. D., Hamilton, J. V. and Haggard J. W., 1994:
Preliminary Geology of the Quatsino-Port McNeill Area, Northern Vancouver Island. Open File 1994-26, Geological Survey Branch, B.C. Department of Mines.
Muller, J. E., Northcote, K. E., and Carlisle, D., 1974:
Geology and Mineral Deposits of Alert Bay-Cape Scott Map Area, Vancouver Island, B.C. G.S.C. Paper 74-8.
Nilsson, J., 2000:
PEM100 Preliminary Plans and Sections.
2000:
PEM100 Statistical Calculations for Reserve Estimations to Accompany PEM100 Preliminary Plans and Sections.
Northcote, K. E., 1969:
Geology of the Port Hardy-Coal Harbour Area, B.C. Department of Mines Annual Report on Lode Metals, 1968, pp. 84-87.
1971:
Rupert Inlet-Cape Scott Map Area, B.C. Department of Mines Geology, Exploration and Mining, 1970, pp. 254-278.
Pearson, B. D., 1983:
Geology, Petrography, Silt and Rock Geochemistry, Wand Claims, Coal Harbour Area, Northern Vancouver Island, B.C. Department of Mines Assessment Report,
1987:
Soil and Rock Geochemistry of the Wanda-Stat Claims, Coal Harbour Area, Northern Vancouver Island, B.C. Department of Mines Assessment Report 15876.
1992:
Diamond Drilling on the Wanda-Stat Claims, Coal Harbour Area, Northern Vancouver Island, B.C. Department of Mines Assessment Report, 21,751
Shearer, J. T., 2000:
Prospectus (Summary Report) on the Apple Bay Project, Holberg Inlet Area, Wanokana Creek, Vancouver Island, August 29, 2000.
Wright, B., 2000:
Preliminary Environmental Assessment of a Proposed Quarry at Apple Bay on Holberg Inlet, B.C., Wright, B., July 28, 2000
Wright, B., 2000:
Addendum to: Preliminary Environmental Assessment of a Proposed Quarry at
Apple Bay on Holberg Inlet, B.C., Wright, B., July 28, 2000
Young, M., 1969:
Expo Group, B.C. Department of Mines Annual Report #2190.
STATEMENT OF
QUALIFICATIONS
I,
JOHAN T. SHEARER, of 1817 Greenmount Avenue, in the City of Port Coquitlam, in
the Province of British Columbia, do hereby certify:
1.
I
am a graduate of the University of British Columbia (B.Sc., 1973) in Honours
Geology, and the University of London, Imperial College (M.Sc., 1977).
2.
I
have over 25 years experience in exploration for base and precious metals and
industrial mineral commodities in the Cordillera of Western North America with
such companies as McIntyre Mines Ltd., J.C. Stephen Explorations Ltd., Carolin Mines Ltd. and TRM Engineering Ltd.
3.
I
am a fellow in good standing of the Geological Association of Canada (Fellow
No. F439) and I am a member in good standing with the Association of
Professional Engineers and Geoscientists of British Columbia (Member No.
19,279).
4.
I
am an independent consulting geologist employed since December 1986 by Homegold
Resources Ltd. at #5-2330 Tyner St., Port Coquitlam, B.C.
5.
I
am the author of a report entitled “Geological and Diamond Drilling Assessment
Report on the Apple Bay Project (PEM100 Chalky Geyserite Quarry Holberg Inlet
Area, Wanokana Creek Vancouver Island” dated September 16, 2000.
6.
I
have visited the property in September 1999, October 12, November 30 – December
15, 1999, and throughout 2000 while development and bulk sampling
occurred. I have carried out mapping
and sample collection and am familiar with the regional geology and geology of
nearby properties. I have become
familiar with the previous work conducted on the Apple Bay claims by examining
in detail the available reports and maps and have discussed previous work with
persons knowledgeable of the area.
7.
I
have an Open Pit Supervisor Ticket (#98-3550) for daily supervision duties in
the Geyserite Quarry.
8.
I
have an interest in the Apple Bay Claims and own Homegold Resources Ltd.
Dated
at Port Coquitlam, British Columbia, this 16th day of December,
2000.
_______________________________________________
J.T.
Shearer, M.Sc., F.G.A.C., P.Geo.
Quarry
Supervisor
September 16, 2000
Appendix II
STATEMENT of EXPENDITURES APPLE BAY PROJECT
December 1, 1999 to
September 26, 2000
Wages and Benefits
J.T. Shearer, M.Sc., P.Geo.
48 days @ $350/day $ 16,800.00
Doug Stelling, Prospector/Coresplitter
20 days @ $250 5,000.00
Chris Scow, Coresplitter
16 hr. @ $14/hr. 224.00
Michael Nelson, Coresplitter
12 hr. @ $14/hr. 168.00
$ 25,942.00
GST 1,815.94
Subtotal Wages $ 27,757.94
Expenses
Transportation, Truck Rental, Fully equipped 4x4
38 days @ 53.50 2,033.00
Gas 1,200.00
Hotel, Meals, Ferries & Freight 3,100.00
Analytical Samples, 155 @ $25/sample 3,875.00
Road Construction (North Island Rockpro Construction)
35 hrs. @ $145/hr. 5,075.00
Site Preparation (North Island Rockpro Construction) 10,500.23
Legal Survey (Bazett Land Surveyors) 13,380.00
Camp Costs, 12 days @ $120/day 1,440.00
Environmental Survey, Baseline Sampling and
Acid Drainage Potential Calculations, Phase I & II 4,875.00
Diamond Drilling
PHASE I – 1016 ft @ $19.50/ft., Holes 1-10 19,812.00
PHASE II – 1065 ft @ $19.50/ft., Holes 11-24 20,767.50
Mobilization, Consumables, Moves & Core Boxes 9,400.00
Mine Plan, Engineering 4,600.00
Drilling & Blasting for Bulk Sample #1 12,500.00
Drilling & Blasting for Bulk Sample #2 12,500.00
Scaling Pit Walls & Road Pull Back
82 hrs. @ $145/hr. 8,990.00
Crushing Sample #1
5,000 tonnes @ $4.25/tonne 21,250.00
Crushing Sample #2
5,000 tonnes @ $3.25/tonne 16,250.00
Analytical at Tilbury Lab 2,250.00
Trucking Sample #1 
10,000 tonnes @ $5.25/tonne 52,500.00
Geological Consulting, (Greenstone Enterprises) 1,500.00
Load Barge in Port Hardy
5,000 tonnes @ $1.65/tonne 8,250.00
Barging Sample #1 to Delta
10,000 tonnes @ $4.50/tonne 45,000.00
Report Preparation 2,750.00
Word Processing and Reproduction 872.00
Total $ 308,678.59
Appendix III
APPLE BAY PROJECT
TIMING of WORK PROGRAM
Apple Bay One staked September 16, 1999
Restake Jody Claims May 11, 2000
Diamond Drilling
December 1-13, Drilling Holes 1-10 & Mapping & Prospecting $ 20,320.00
March 8-18, 2000, Holes 11-24 $34,763.02
Road Building, March 8-18, 200, Access Ramp Construction, Dec. 1 &2
Environmental, March 15 & 16, 2000, Dec. 9 & 10
Aboriginal Consultation – March 16 & May 5, June 2 Alan Okabe, June *
Legal Survey, March 12 – 14 $13,380.00
Cross Sections & Mine Plan
April 14, 15, June 12, 13, July 8, 10
Site Prep, North Island Rockpro $ 10,500.23
First Bulk Sample, April 19-21 5,000 tonnes
Drill & Blast $ 12,500.92
First Barge Out, May 15
Second Bulk Sample, 5,000 tonnes
Drill, July 15-24
Crush July 20-26
Trucking, July 21-27
Barge December
Mapping on Drill Road,
J. T. Shearer & D. Stelling, July 18-22, 2000
Sampling P130, P180
J. T. Shearer & D. Stelling, July 24-27, 2000
Chris Scow, Coresplitter
March 9-13, 2000, 16 hr. @ $14/hr.
Michael Nelson, Coresplitter
March 13-17, 2000, 12 hr. @ $14/hr.
Drafting, March 15, 1:500
Mine Planning,
J. Nilsson, P.Eng., May – Sept. 2000
Dates of abandonment and restaking of Apple Bay Two – March 10, 2000 & May 17, 2000