862240 T E L E P H O N E 6 8 4 - 1 2 7 4

A M E R I C A N S M E L T I N G A N D R E F I N I N G C O M P A N Y C A N A D I A N E X P L O R A T I O N D I V I S I O N

T . C . O S B O R N E S U P E R V I S O R

R O O M 5 0 4 - B 3 B T H U H L O W S T R E E T

V A N C O U V E R S . B . C .

27 Nov/69

Mr. J . J . Rankin, Coranex Limited,-904 - 85 Richmond St.. W Toronto 1, Ontario.

NOV l 6 1969

B r i t i s h Columbia C l i n t o n M.D. Peach Lake Property

Dear Mr. Rankin:

Further to my l e t t e r of October 10th., I am e n c l o s i n g herewith a copy of a memorandum dated November 24th g i v i n g r e s u l t s of b u l l d o z e r trenching which we r e c e n t l y c a r r i e d out at the Peach Lake Property.

The I.P. survey showed s e v e r a l s c a t t e r e d anomalous peaks, but none of these were a s s o c i a t e d w i t h the large magnetic low which was the primary t a r g e t on the North Slope g r i d . Although the I.P. anomalies d i d not Jook any d i f f e r e n t than those which you had tested i n the southern part of the property, we d i d undertake some b u l l d o z e r trenching as described i n the enclosed memorandum. One of the trenches exposed some weak copper m i n e r a l i z a t i o n , but assays were very low outside of a 10' f r a c t u r e zone which ran 0.9% cu. The showing, as exposed i n the trench, d i d not look any d i f f e r e n t than those which you had t e s t e d elsewhere.

We have s t i l l not r e c e i v e d the formal I.P. r e p o r t from the c o n t r a c t o r , but our work has been based on the complete f i e l d data and p r o f i l e s and the i n t e r p r e t a t i o n of our own g e o p h y s i c i s t . We w i l l send you a copy of the c o n t r a c t o r ' s r e p o r t when i t i s re c e i v e d .

We do not plan any f u r t h e r work on the property, and I have r e ­commended to our Management th a t we r e g r e t f u l l y abandon the p r o j e c t . Formal t e r m i n a t i o n w i l l be by a l e t t e r from New York.

2

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JJRankin -2- 27 Nov/69

By copy of t h i s l e t t e r to Mr. Woodcock, I suggest that he drop i n at some convenient time to go over our data and to discuss the r e s u l t s w i t h our g e o l o g i s t s and myself.

Yours very t r u l y ,

TCO:sm Encls

CC: JWoodcock, Vancouver,

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VANCOUVER, B.C. 24 Nov/69

MEMORANDUM FOR: Mr, T.C. Osborne

B r i t i s h Columbia C l i n t o n M.D Peach Lake Property Trenching Program 4-12 Nov/69

Six trenches were excavated w i t h a D-8 ca t on the n o r t h slope g r i d o f the Peach Lake property to l o c a t e the source o f anomalous I.P. readings obtained during a survey in September.

Trench "A" was l o c a t e d about 50' east of Line 32E, and extended, from 40S to about 33S. I.P. readings i n t h i s area were i n the order o f 13 to 24 m i l l i s e c o n d s , or roughly three to four times back­ground.

S t a r t i n g from an outcrop a t 40s, Trench "A" exposed continuous bedrock of d i o r i t i c composition to approximately 36S* Minor amounts of s u l f i d e s were seen i n the 400* o f bedrock thus exposed, and these were f r a c t u r e coatings and h a i r l i n e v e i n l e t s o f p y r i t e . Most s u l f i d e s were concentrated i n a f i v e f o o t northwest~trending gossan zone exposed a t 38 + 50S. A small v e r t i c a l f a u l t l i e s adjacent to the gossan and contained a speck of c h a l c o p y r i t e i n a small o r t h o c l a s e v e i n . Other than t h a t , no copper minerals were seen i n the trench. Chip samples taken over the length o f exposure assayed 0.01% Cu.

Trench "B M was l o c a t e d along Lin e 20E between 29S and 26S. Bedrock, composed of d i o r i t e w i t h minor pink "pseudo-syenite" was found i n a subsurface r i d g e between 28 + 50S, a ten f o o t wide f r a c t u r e zone c o n t a i n i n g pods and v e i n l e t s o f c h a l c o p y r i t e was exposed. This zone s t r i k e s N60°E and appears to be v e r t i c a l o r s t e e p l y d i p p i n g to the northwest. The remaining bedrock exposure c a r r i e s moderate to heavy p y r i t e on f r a c t u r e s and i n disseminations. Only minor amounts of c h a l c o p y r i t e was seen o u t s i d e of the 10' copper zone.

A c h i p sample across the 10' zone assayed 0.9% Cu. Samples from 28 + 50S t o 27 + 50S, and 27 + 50S t o 27S assayed 0.04% Cu and 0.15% Cu r e s p e c t i v e l y .

Trench "C exposed h e a v i l y p y r i t i z o d andesite b r e c c i a (?) between 15S and 13S along Lin e 16W. The s u l f i d e zone trends roughly east-west and appears t o be s t e e p l y d i p p i n g . A c h i p sample over t h i s zone assayed 0.02% Cu.

Treach nD H consisted of three separate p i t s , each 60* to 100' long, and located along Line 0E at 14S, 10S and 8S. None of these pits reached bedrock even though up to 30* of g l a c i a l overburden was removed. •

In an attempt to further expose the copper mineralization found i n Trench "B", Trench "E" was cut on Line 22E between 23S and 26S. After removing more than 20* of overburden without h i t t i n g bedrock, t h i s trench was abandoned.

Trench "F" was cut east to west along the baseline (30S) between Lines 15E and 19E. The copper zone wis encountered almost at surface at 17E, but mineralization was poorly exposed and no chip samples were taken.

Approximately 5200 cubic yards of overburden was removed during t h i s program and a mile of access road cut through the bush. Total cost of the bulldozer including transportation to and froift Williams Lake was $ 2,600.02.

The program showed that the major I.P. anomalies are caused primarily by p y r i t e . The copper mineralization found i n Trench "B" appears to be a secondary feature associated with strong f r a c t u r i n g and p y r i t e mineralization. I t was also found that depth of over­burden i s l i k e l y to be extremely variable, the bedrock surface having been strongly groved and plucked by g l a c i a l action. .

No s i g n i f i c a n t new mineralization was found. The copper zone i n Trench "B" appears to be s i m i l a r to showings found elsewhere on the property which are too l i m i t e d i n s i z e and grade tote of int e r e s t . No further work i s recommended at th i s time.

E. Bayley, J r . EB:sm

Attach: 1" » 100* sketch map of trenches Assay Report # 7321

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1416 C R O W N S T R E E T

N O R T H V A N C O U V E R , B . C .

C A N A D A

^ C H E M E X L A B S L T D . t . c . o .

* C H E M I S T S » G E O C H E M I S T S * A N A L Y S T S

C E R T I F I C A T E .OF A N A L Y S I S

T 0 : American Smeltigg & Refining Co., 535 Thurlcw S t i ,

Vancouver, . B. C. A T T N :

* A S S A Y E R S

N O .

I N V O I C E N O .

D A T E R E C E I V E D

D A T E A N A L Y S E D

NOV 2 1 1969

7321

2371 Nov. 14/69

Kov. 18/69

SAMPLE NO. Co viper 29340 29341 29342 29343 29JM

0.90 0,04 0.15 0.02 0.01

Peach Trench "3" Chip across Cu Zone 10'line 19+50K Peach Lake Trench "B" 28+50S+2>50S Line 19+50E Peach Trench "11" 27S+27+50S TV*-«<. u •• e." Peach Trench "AH 40S-38S Line 32E

29345 29346

0.01 <0.01

Peach Trench "A" 38S-36S Line 32E Trench "D" Line OE

-f. i