1. real estate

GEOTRONICS CONSULTING INC. and CASSIAR EAST YUKON EXPEDITING LTD.
SEISMIC EXPLORATION OF PLACER GOLD
ON THE WILD HORSE RIVER PROPERTY
Claim Type
Name
Record
Number
Area
Expiry
Date
Placer Lease
(no name)
368385
112.86 ha
(278.76 A)
April 27, 2014
Map-staked
Placer Claim
(no name)
514135
376.35 ha
(929.58 A)
October 10, 2015
Total Property
Area
488.91 ha
(1,208.34 A)
Location:
Fort Steele Mining Division
N.T.S.: 82 G/12 B.C.: 082G 063
49E 40' 30"N., 115E 34' 15" W.
U.T.M.: 5,503,415 N., 603,138 E.
Owner:
Merklin Resources Inc.
2900-550 Burrard Street,
Vancouver, British Columbia, V6C 0A3
By:
John Ostler; M.Sc., P.Geo., Consulting Geologist
1015 Clyde Avenue, West Vancouver, British Columbia, V7T 1E3
April 30, 2014
CONTENTS
Page
SUMMARY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
iii
1.0 INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1.1 Acknowledgment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1.2 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1.3 Property Description and Location . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1.4 Accessibility, Climate, Local Resources, Infrastructure, and Physiography . . .
1
1
1
1
3
2.0 HISTORY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.1 Chronology of Ownership and Exploration of Placer Claims
in the Wild Horse River Property-area . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.2 Historical Placer Mineral Resource and Mineral Reserve Estimates
and Production from the Wild Horse River Property-area . . . . . . . . . . . . . . . .
7
21
3.0 GEOLOGICAL SETTING AND MINERALIZATION . . . . . . . . . . . . . . . . . . .
3.1 Regional Geology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.2 Property Geology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.2.1 Hard Rock Stratigraphy and Deformation . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.2.2 Glacial and Recent Stratigraphy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.3 Mineralization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.3.1 Eluvial Fault-related Placer Gold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.3.2 Alluvial Placer Gold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
29
29
33
33
34
38
38
39
4.0 DEPOSIT TYPE: Placer Gold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
40
5.0 EXPLORATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5.1 Procedures and Parameters of the Current (2014) Exploration Program . . . . .
5.2 Results and Interpretation of the Current (2014) Exploration Program . . . . . .
5.2.1 Bedrock Surface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5.2.2 Red Gravel Channels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5.3 Duration, Area, Location, Management and Cost of
the Current (2014) Exploration Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
43
43
44
45
46
6.0 CONCLUSIONS AND RECOMMENDATIONS . . . . . . . . . . . . . . . . . . . . . . . . .
6.1 Conclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6.2 Recommendations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
51
51
52
7.0 REFERENCES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
53
FIGURES
7
47
Page
1.
General Location . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2
2.
Road Access . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4
3.
Property, Terrain, and Placer Exploration and Production . . . . . . . . . . . . . . .
6
4.
1919 Gamble Mining Cross-section . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
12
5.
Geology of the Hughes Range around Wild Horse River . . . . . . . . . . . . . . . . . .
25
5A. Legend to Figures 5 and 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6.
East-west Cross-section 4 Km North of Boulder Creek . . . . . . . . . . . . . . . . . . .
26-27
28
CONTENTS
Continued
FIGURES
Page
7.
Pleistocene History of the Western Canadian Ice-free Corridor . . . . . . . . . . . .
37
8.
Bedrock Channels from Seismic Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
After text
9.
Red Gravel Channels from Seismic Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
After text
TABLES
Page
1.
Lease and Claim . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3
2.
Results of Jacob’s 2009 Pit Sampling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
18
3.
Results of Jacob’s 2009 Drill Hole Sampling . . . . . . . . . . . . . . . . . . . . . . . . . . . .
19
4.
Ransom’s 2009 Conversion of Gold Grains to Troy Ounces of Placer Gold . . .
20
5.
Ransom’s 2009 Resource Quantification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
22
6.
Table of Geological Events and Lithological Units
in the Wild Horse River Property-area . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
31-32
7.
Duration of the 2014 Exploration Program . . . . . . . . . . . . . . . . . . . . . . . . . . . .
48
8.
Area and Location of the 2014 Exploration Program . . . . . . . . . . . . . . . . . . . .
48
9.
Contractors for the 2014 Exploration Program . . . . . . . . . . . . . . . . . . . . . . . . .
49
10. Cost of the 2014 Exploration Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
49-50
APPENDICES
A.
Certificate of the Qualified Person . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
After text
B.
Mark D.G.; 2014: Geophysical Report on a Seismic Refraction Survey on
The Wild Horse River Placer Gold Property . . . . . . . . . . . . . . . . . . . . . . . . . . .
After text
-iiiSEISMIC EXPLORATION OF PLACER GOLD
ON THE WILD HORSE RIVER PROPERTY
SUMMARY
The Wild Horse River property comprises one map-staked claim and one placer lease that together
cover 488.91 hectares (1,208.34 acres) in the Fort Steele Division and in the Kootenay Land District in the
Hughes Range of the Rocky Mountains in south-central British Columbia. It is located on N.T.S. map sheet
82 G/12 and on B.C. map sheet 082G 063. The centre of the property-area is at 49E 40' 30" north latitude and
at 115E 34' 15" west longitude (U.T.M.: 5,503,415 N., 603,138 E.) .
Merklin Resources Inc. is the registered owner of 100% of the claim and lease that comprise the
property.
The Wild Horse River property occupies part of a southwesterly facing valley that drains into
Kootenay River near Fort Steele. Elevations of the property range from 1,280 m (4,200 ft) on the valley slope
at the western margin of the valley at the western boundary of Placer Claim 514135, down to 930 m (3,051 ft)
on Wild Horse River at the southwestern end of Placer Lease 368385. The elevation of the confluence of Wild
Horse River and Boulder Creek at the northern end of the property is 1,120 m (3,675 ft).
The property hosts a second-growth forest comprised mostly of pine, cedar, spruce, fir, and
cottonwood trees which is in various states of growth. Much of the property area has been clear cut recently.
There is insufficient timber suitable for mining on the claims.
The property is located about 7 km (4.3 mi) north of Fort Steele from which it is accessible by road.
The village of Fort Steele, located on B.C. Highway 93+95, is the nearest supply and service center
to the property. Only basic services such as food and gasoline are available at Fort Steele. Cranbrook, located
on B.C. Highways 3 and 95 about 24 km (14.6 mi) southwest of the property, is the nearest regional supply and
service centre. Cranbrook hosts the nearest international airport, helicopter base, and a rail yard. At Cranbrook,
services required to support a placer mining operation are available.
The Wild Horse River area experiences cold winters and hot, dry summers. Winter snow falls in the
property area by late November and stays on the ground until April in open areas, and until May on shady
slopes at higher elevations. Surface work can be conducted on the property from April to November during
a normal year.
The current exploration targets on the property are on crown land with no special restrictions on
development thereon. Normally, upon development permitting, one is able to secure surface rights necessary
to conduct a permitted mining operation. The author knows of no legal impediment to Merklin Resources Inc.
being able to secure such surface rights as part of the permitting process.
A three-phase power transmission line services residences along Fort Steele Wild Horse Road, within
7.0 km (4.27 mi) of the main hydraulic pit in the central part of the property. Adequate fresh water for a mining
operation could be drawn from Wild Horse River.
There is adequate, reasonably flat area appropriate for erecting a mill and developing a tailings pond
in the main hydraulic pit in the southern part of Placer Claim 514135. As production progresses northward,
space for a plant and tailings pond will be created apace with production.
The author examined the Wile Horse River property on December 5, 2013 and on January 23, 2014.
Refractive seismic survey was conducted on the Wild Horse River property by Geotronics Consulting Inc.
during the following times: January 18, to February 7, 2014, and from March 10 to 15, 2014. Research, data
compilation, and reporting was conducted intermittently from November 26, 2013 until the date of this report.
A total of 201.75 man-days (201.75 days X 8 = 1,614 man-hours) of work was conducted during the current
(2014) exploration program. The total cost of the current (2014) exploration program was $112,911.40 +
$5,645.57 G.S.T. = $118,556.97.
The 2014 grid comprised 8 lines with a total length of 4.775 km (2.913 mi) run east-west along U.T.M.
grid lines and spaced 100 m (328 ft) apart in the southern part of the (no name) 514135 placer claim. An access
road runs along both the eastern and western slopes of the valley. Grid lines were run from road to road. The
grid covers a generally rectangular area of approximately 224 ha (553.28 A).
-ivThe two main target areas for alluvial placer gold on the property are the red channel gravel that lies
atop the blue boulder-clay till and in the conglomerate “till” overlying the bedrock surface. Both of these “pay
zones” are located directly above a boundary identified by the current (2014) seismic survey.
Two major channels on bedrock were identified from the current (2014) seismic survey data: a
shallow, narrow, early channel; and a wide, deep late channel. The early channel may be Miocene in age; the
later bedrock channel may have formed during the Pliocene epoch. The whole bedrock surface across the Wild
Horse River valley bottom is variously prospective for alluvial placer gold.
The bedrock surface on the (no name) 514135 claim has been mined only in the 2010 pit and in a few
places along the current course of Wild Horse River. Since placer mining is forbidden within 30 m (91.4 ft)
of the top of bank along the current course of the river, the only minable part of the bedrock surface that has
been mined is in the 2010 pit. More than 95% of the minable area on the bedrock surface remains untouched
in the 2014 seismic survey area.
Although the author identified two major red gravel channels from the seismic sections, he is of the
opinion that the whole upper surface of the blue boulder-clay till was covered with a braided channel system
and that the whole top surface of the blue boulder-clay till near or on the valley bottom is variously prospective
for placer gold.
The top of the blue boulder-clay till and the overlying red gravel channel sediments have been lost to
subsequent erosion along the current course of Wild Horse River from Line 3,600 southward to the southern
boundary of the 2014 grid-area. The red gravel channel deposits have been mined out throughout the northern
part of the main hydraulic pit. About 75% of the minable area on the surface of the blue boulder-clay till
remains untouched in the 2014 seismic survey area.
Generally in British Columbia, placer mining is prohibited within 30 m (91.4 ft) of the “top of bank”
of a stream. The area covered by the valley on the west-northwest side of the “top of bank” of Wild Horse
River is more extensive than that on the east-southeast side of it. Sediments have already been excavated to
the bedrock surface in the 2010 pit located at the down-stream end of the west-northwestern flank of the valley
bottom in the southern part of the (no name) 514135 placer claim. A mining permit exists for that area.
It is recommended that mining commence in the 2010 pit and progress northward along the westnorthwestern flank of Wild Horse River. Once the west-northwestern side of the river has been mined out,
gravel on the east-southeastern side of the river should be exploited.
Sediments should be removed in two levels to progressively uncover the red channel gravels and the
conglomerate “till on the bedrock surface. Both the red channel gravels and those along the bedrock surface
could be worked concurrently if a bench on the red channel gravels is developed ahead of excavation to the
bedrock surface.
Although most of the upper grey gravel contains insufficient gold to be processed profitably, there are
several richer gold-bearing layers within that unit. Coarse gravel layers within the grey gravel should be tested
for gold content before a decision is made to send them directly to the waste dump. The top 1 m (3.28 ft) of
the blue boulder-clay till should be processed with the overlying red channel gravel. The basal 1 m (3.28 ft)
of the blue till should be processed with the material removed from the bedrock surface. It is assumed that the
rest of the blue boulder-clay till contains uneconomic quantities of placer gold and should not be processed.
SEISMIC EXPLORATION OF PLACER GOLD
ON THE WILD HORSE RIVER PROPERTY
1.0 INTRODUCTION
1.1 Acknowledgment
The author would like to thank Steve Lanthem for his assistance in compiling information for this
report.
1.2 Introduction
The author, John Ostler; M.Sc., P.Geo., was commissioned through Cassiar East Yukon Expediting
Ltd. to compile historic data, to supervise current exploration and to write this report entitled “Seismic
Exploration of Placer Gold on the Wild Horse River Property” dated effective April 30, 2014.
This report is based upon: published and unpublished records of the results of previous exploration
in the Wild Horse River property-area, of property examinations and regional geological mapping conducted
by geologists of the British Columbia Geological Survey and of the Geological Survey of Canada, and the
results of the 2014 exploration program on the Wild Horse River property which was conducted by David
Mark, P.Geo. of Geotronics Consulting Inc. Citations of that work are in standard format in Section 7.0 of this
report.
1.3 Property Description and Location
The Wild Horse River property-area covers part of the southwestern margin of the Hughes Range of
the Rocky Mountains in the southeastern British Columbia. It is located on N.T.S. map sheet 82 G/12 and on
B.C. map sheet 082G 063 (Figures 1and 3). The centre of the property-area is at 49E 40' 30" north latitude and
at 115E 34' 15" west longitude (U.T.M.: 5,503,415 N., 603,138 E.) .
The owner of the Wild Horse River property is Merklin Resources Inc.
The property comprises 1 map-staked placer claim and 1 placer lease. The property covers 488.91
hectares (1,208.34 acres) in the Fort Steele Mining Division and in the Kootenay Land District.
-2-
-3The tenures of the claims comprising the property (Figure 2) are as follow:
Table 1
Lease and Claim
Name and
Claim Type
(no name)
Placer Lease
Record
No.
368385
Area: hectares
(Acres)
112.86
(278.76)
(no name)
Map-staked
Placer Claim
Total Property
area
514135
376.35
(929.58)
Record Date
Expiry Date
Owner
April 27, 1999
April 27, 2015
Merklin Resources Inc.
June 8, 2005
Oct. 10, 2024
Merklin Resources Inc..
488.91
(1,208.34)
NOTE: Term of Lease expires on April 27, 2019
1.4 Accessibility, Climate, Local Resources, Infrastructure, and Physiography
The Wild Horse River property occupies part of a southwesterly facing valley that drains into
Kootenay River near Fort Steele in southeastern British Columbia. Elevations of the property range from 1,280
m (4,200 ft) on the valley slope at the western margin of the valley at the western boundary of Placer Claim
514135, down to 930 m (3,051 ft) on Wild Horse River at the southwestern end of Placer Lease 368385. The
elevation of the confluence of Wild Horse River and Boulder Creek at the northern end of the property is 1,120
m (3,675 ft) (Figure 2).
The property hosts a second-growth forest comprised mostly of pine, cedar, spruce, fir, and
cottonwood trees which is in various states of growth. Much of the property area has been clear cut recently.
There is insufficient timber suitable for mining on the claims.
Directions for road access to the property are as follow (Figure 2):
Turn off B.C. Highway 93+95 onto Fort Steele Wild Horse Road near the centre of Fort Steele. There
is an Esso gas station, store, and camp ground on the northeastern corner of the road junction.
To gain access to the main hydraulic pit and the western side of the Wild Horse valley, turn left off
Fort Steele Wild Horse Road onto Wildhorse Historic Site Road just before where Fort Steele Wild Horse Road
crosses Wild Horse River. That junction is about 0.4 km (0.25 mi) from the gas station. The road to the main
hydraulic pit diverges to the right from the main logging road just past the miners’ cemetery, about 6 km (3.66
mi) from Fort Steele Wild Horse Road.
-4-
-5To gain access to the eastern side of the Wild Horse valley, turn left off Fort Steele Wild Horse Road
onto Maus Creek Road about 3.2 km (2.0 mi) from the gas station. Follow Maus Creek Road for about 3.6 km
(2.2 mi) to the junction with Boulder Creek Road. Turn left onto Boulder Creek Road. That road crosses onto
the eastern part of the property-area at km 4.7 (mi 2.9).
The village of Fort Steele, located on B.C. Highway 93+95 about 7 km from the main hydraulic pit
in the central part of the property-area, is the nearest supply and service center to the property. Only basic
services such as food and gasoline are available at Fort Steele. Cranbrook, located on B.C. Highways 3 and
95 about 24 km (14.6 mi) southwest of the property, is the nearest regional supply and service centre.
Cranbrook hosts the nearest international airport, helicopter base, and a rail yard. At Cranbrook, services
required to support a placer mining operation are available.
The Wild Horse River area experiences cold winters and hot, dry summers. Winter snow falls in the
property area by late November and stays on the ground until April in open areas, and until May on shady
slopes at higher elevations. Surface work can be conducted on the property from April to November during
a normal year.
The current exploration targets on the property are on crown land with no special restrictions on
development thereon. Normally, upon development permitting, one is able to secure surface rights necessary
to conduct a permitted mining operation. The author knows of no legal impediment to Merklin Resources Inc.
being able to secure such surface rights as part of the permitting process.
A three-phase power transmission line services residences along Fort Steele Wild Horse Road, within
7.0 km (4.27 mi) of the main hydraulic pit in the central part of the property. Adequate fresh water for a mining
operation could be drawn from Wild Horse River (Figure 3).
Both the mining business and the pool of professionals and skilled tradesmen who serve it are
international and mobile. The Fort Steele area has already demonstrated that it was able to attract personnel
to work at placer mines in the area. That area has sufficient amenities to attract the people needed to operate
a new placer mine.
-6-
-7There is adequate, reasonably flat area appropriate for erecting a mill and developing a tailings pond
in the main hydraulic pit in the southern part of Placer Claim 514135 (Figure 3). As production progresses
northward, space for a plant and tailings pond will be created apace with production.
2.0 HISTORY
2.1 Chronology of Ownership and Exploration of Placer Claims
in the Wild Horse River Property-area
NOTE:
All references to ounces (oz) are to Troy ounces = 31.103 grams.
Unless otherwise referenced, the following history is gleaned from the British Columbia Minister of
Mines’ annual reports and bulletins.
1863
Gold was discovered by Jack Fisher near the mouth of what later became known as Fisher Creek on
Wild Horse River. The river was so named in recognition of the wild horses that lived on the river
delta.
1864
At least 400 miners were working claims that extended for several kilometers up the river. The
“town” of Fisherville (probably mostly wooden tent frames) was built. In good ground, miners were
netting about $1/pan. At a gold price of $18.00/ounce, that would equal about 0.07 oz placer gold per
pan after deductions for fineness and smelter charges. Wages could be from $20 to $30/day at a time
when labourers were making about $2/day in more civilized places. The gold was coarse and easy
to recover with pans, small sluices, and rockers. Nuggets were worth from $2.50 to $78 after
deductions for fineness and smelter charges. They weighed from about 0.15 to 4.4 ounces.
1865
The Dewdney trail was completed from New Westminster on the coast to the Fort Steele area. That
wagon road facilitated the importation of equipment and supplies to the Wild Horse River placer camp
1866
Fisherville was torn down and moved up hill to access the rich ground beneath it (Figure 3).
1867
David Griffiths acquired ground along the river. Later, he became the operator of one of the hydraulic
mine in the main hydraulic pit located partly within current Placer Claim 514135 (Figure 3).
1869
Small-scale hydraulic mining commenced in the area of the current main hydraulic pit. A new wagon
road was built from Fort Steele to the pit area.
1874
W.H. Morrow with a crew of seven men drove an adit into the bank of Wild Horse River 11.27 km
(7 mi) up the creek from the Fort Steele mining office. The author estimates that the adit was located
at about 5,505,240 N., 603,560 E. (Figure 3). This location is about 120 m (393.7 ft) north of the
confluence of Boulder Creek and Wild Horse River at the northern end of current Placer Claim
514135. This was the first recorded attempt to explore for a deep channel on Wild Horse River. The
colonial government provided $551 and $1,000 was raised privately to fund the project. The author
assumes that the adit was driven eastward into the bench. It had been driven in for 27.4 m (90 ft)
when it was abandoned. In 1894 there was a second attempt to extend that adit.
-81875 to 1877
Several new placer “hill” claims were staked on the lower slopes flanking Wild Horse River with
intent to prospect “deep ground” during the winter of 1875-6.
Two new ditches and associated flumes were built during the winter of 1875-6 to provide a reliable
water supply to enable expansion of hydraulic operations on both sides of the river. The author
believes that hydraulicking on the southeastern side of the river was concentrated in the area south of
the confluence of Fisher Creek and Wild Horse River on current Placer Lease 368385. Hydraulicking
on the northwestern side of the river was located somewhere within the area for the current main
hydraulic pit, either on current Placer Claim 514135 or on Placer Claim 365588 located adjacent to
the western boundary of Claim 514135 (Figure 3). The Hang Company dug a ditch that extended for
6.44 km (4 mi) along the slope southeast of the river at a cost of $3,000, enabling it to have a
successful hydraulicking season in Summer, 1876. During the winters of 1875-6 and 1876-7, the
Victoria Ditch Company constructed a 5.2-m (17-ft) high dam on Victoria Gulch and a 7.24-km (4.5mi) long ditch from Victoria gulch to the area of the main hydraulic pit. The estimated cost of the
project was $10,000 to $12,000.
1877 to 1880
The increased water supply permitted expansion of hydraulic operations on both sides of the river and
revenue from those operations steadily increased.
1881
It was reported that the hydraulic operation on the northwestern side of the river was doing well while
the Hang Company’s operation on the southeastern side of the river was doing poorly. The Hang
Company’s operation continued for several years after 1880 generating enough money to maintain its
6.44 km (4 mi) ditch. The author suspects that the company got out of a “channel” into lean ground
in its pit.
1882 to 1885
Hydraulic operations on both sides of the river were doing well. Reported gold production from Wild
Horse River was worth about $25,000 per year, coming mostly from hydraulic mining. Holland
(1950) listed that a total of 7,551 oz of placer gold production was reported from Wild Horse River
from 1881 to 1885 (see Section 2.2, this report).
1885 to 1886
Gold production decreased. During 1885, a rush to Findlay Creek resulted in a labour shortage. In
1886, production was curtailed by a lack of water due to a drought.
1887
In the Annual Report of 1887, it was noted that “there has been a marked falling off in the number of
companies mining in Wild Horse Creek”. Four hydraulic operations were still active in the drainage
indicating that small-scale sluice and rocker mining operations were being shut down. This may have
been due to the easy ground with shallow cover near the river progressively being worked out. That
year, government engineers estimated that about $23,000 in placer gold had been produced by
hydraulicking and a further $3,000 in placer gold had been produced by other smaller operations.
David Griffiths increased production in the main hydraulic pit area by operating a new No. 2 Giant
monitor.
1888 to 1889
Despite an early freeze-up preventing hydraulic mines from cleaning up, the value and distribution
of placer gold production from Wild Horse River in 1888 and 1889 were similar to that of 1887.
-91890
A total of eight monitors and 11 sluices were being used. Activity was concentrated in the main
hydraulic pit area located on current Placer Claim 365588 and on the adjacent part of current Placer
Claim 514135, and in the southeastern hydraulic pits in the Nip and Tuck area located on current
Placer Lease 368385 (Figure 3). A total of about $32,000 (1,778 oz @ $18/oz) was realized from
production that year. David Griffiths cleaned up his sluices in the main hydaulic pit area for the first
time since 1887. He realized from $8,000 to $9,000 (444 to 500 oz @ $18/oz) placer gold from three
seasons of hydraulicking. Griffiths’s delayed clean-up accounted for the rise in the annual production
from Wild Horse River in 1890.
1891
By 1891, David Griffiths had been working on Wild Horse for 24 years. Probably he was over 50
years old, and he may have felt that it was time to sell out. He commenced negotiating sale of his
leases in the main hydraulic pit area to The East Kootenay Exploration Syndicate, Ltd., of London,
England. His hydraulic operation was shut down during negotiations. Production of placer gold from
Wild Horse River dropped to about $18,000 (1,000 oz @ $18/oz) in 1891. Based on the production
from Griffiths’s 1887-1890 clean-up less than half of the decline can be reasonably attributed to the
cessation of his operation. Production elsewhere must have declined also.
A 2.42-km (1.5-mi) long placer lease was granted along Wild Horse River near the mouth of Boulder
Creek. The adit driven by D.H. Morrow and company in 1874 was re-entered and extended in search
of an old channel (Figure 3).
1892
Ownership of David Griffiths’s ground passed to the East Kootenay Exploration Syndicate, Ltd. The
syndicate planned to upgrade water-supply infrastructure to enable the operation of a third monitor
in the main hydraulic pit area. The syndicate’s ground included a length of 640 m (2,100 ft) of bench
leases and a further 518 m (1,700 ft) of bench claims. Despite the fact that there was no production
from the main hydraulic pit area, reported placer gold production from Wild Horse River was up to
about $25,000 (1,389 oz @ $18/oz) for the year.
Work on the Morrow adit located near the mouth of Boulder Creek ceased due to excessive ground
water in the working. Another attempt at reaching the target area by digging a shaft at a better
location was planned. Five km (3 mi) of road was built in order to bring in pumps for the shaft.
1893
During 1893, five companies reported placer gold production of $19,000 (1,056 oz @ $18/oz) from
five hydraulic and two sluicing operations. The East Kootenay Exploration Syndicate completed its
infrastructure upgrade in the main hydraulic pit area and conducted a test run. David Griffiths bought
some profitable leases in order to re-sell them to the syndicate.
1894
A total of $22,500 (1,250 oz @ $18/oz) of placer gold was reported for the year including $10,000
production (556 oz @ $18/oz) by a “joint stock company”, probably the East Kootenay Exploration
Syndicate. The syndicate had its problems including loss due to landslides during heavy rains to long
sections of the Victoria ditch and the dam at the head of it. A positive effect of the rain was that the
river near the hydraulic operations was flushed of accumulated fine debris from the sluices. During
the winter of 1893-4, the syndicate bought from David Griffiths the ground that he had acquired in
1893. The syndicate leased it back to the Chinese owners who had sold it to Griffiths. Everyone
seems to have been satisfied with the arrangement.
In Autumn, 1894, work on the 1891-era shaft at the mouth of Boulder Creek was re-commenced by
a Mr. Jennings. His goal was to reach bedrock during winter 1894-5. A Mr. Laird of Chicago
attempted to sink a shaft to bedrock just down stream from Victoria Gulch, about 2.8 km (1.74 mi)
north of Boulder Creek and the northern boundary of current Placer Claim 514135. Four other placer
leases were acquired in the Victoria gulch area in anticipation of further shaft sinking.
-101895
The East Kootenay Exploration Syndicate, Ltd. repaired its plant in the main hydraulic pit area. The
International Placer Company was driving an adit toward the location of a presumed old channel at
an undisclosed location on Wild Horse River.
“The old Nip and Tuck claim” was sold to the Nip and Tuck Gold Mining Company of Vancouver.
The company renovated a 5-mile long ditch on the southeastern side of the river commenced
hydraulicking the river bank. The author opines that this claim was in the area of one of the smaller
southeastern hydraulic pits on the southwestern part of current Placer Lease 368385 (Figure 3).
1896
The East Kootenay Exploration Syndicate was succeeded by The Invicta Gold Mining (Placer) Co.,
Ltd., of England, probably to provide syndicate members with some stock liquidity. In 1896, the
renewed plant in the main hydraulic area was tuned up with a run-through of 53,550 m3 (70,000 yd3)
of low-grade gravel. By 1896, the main hydraulic pit was about 1,524 m (5,000 ft) long and was
washed to a vertical back-wall located 183 to 244 m (600 to 800 ft) west of the river. It was close to
its current size. Much of the blue boulder-clay till in remained in the pit floor covering the bedrock
surface. Invicta planned to sink two shafts to bedrock in the winter of 1896-7 to test the gold tenor
at the bedrock surface. Underground development of the bedrock surface was anticipated.
The Nip and Tuck Gold Mining Company continued hydraulicking in the southwestern part of current
Placer Lease 368385.
1897
Apparently, The Invicta Gold Mining (Placer) Co. had given up on the idea of sinking shafts and
mining the bedrock surface beneath the blue boulder-clay till in the lower parts of the main hydraulic
pit. The company reported that it was investigating installing a hydraulic elevator to lift the till away
from the bedrock surface in the pit. No hydraulicking was done in the main pit in 1897.
By 1897, Tip and Tuck operation had been acquired by the Nip and Tuck Gold Hydraulic Mining
Company, of London, England. The back wall of the Nip and Tuck hydraulic pit was 15.24 m (50 ft)
high and was being washed down by a 15.2-cm (6-inch) monitor. The upper strata in the pit were “
loam and sand, etc., with low values”. The lower strata were boulder-clay till. Most of the gold must
have come from the till or from the bedrock surface beneath it. About 114,750 m3 (150,000 yd3) of
material was processed at the Nip and Tuck pit that year.
The Quong Yung Tong Company ran a small-scale hydraulic operation in a pit located on the
northeastern part of current Placer Lease 368385.
1898 to 1900
In 1899, some of the 1869-era road to the main hydraulic pit was re-located and a road was extended
to Victoria Gulch. Little placer mining activity on Wild Horse River was reported. Presumably the
Nip and Tuck and Quong Yung Tong operations were continuing at this time.
1901 to 1903
Both the Nip and Tuck and Invicta properties were leased out to small-scale operators who reportedly
produced “considerable gold”. The author presumes that these miners were working into the bedrock
contact with the boulder till and discarding chunks of till as they went. The Quong Yung Tong
Company reported a poor year in 1901. It was hydraulicking southwest of the mouth of Fisher Creek.
1904 to 1907
In 1904, five companies were hydraulicking 6.1 to 12.3-m (20 to 40-ft) thick gravel “which has proved
“fairly rich in gold” at undisclosed locations. These may have included the Invicta Gold Mining
(Placer) Co. or the Quong Yung Tong Company.
-111908 to 1914
No activity from Wild Horse River was reported.
1915
One group was reported to be hydraulicking an 18.2 to 30.5-m (60 to 100-ft) high bank with a 30.5-m
(100-ft) head of water at an undisclosed location. That group was earning $0.0383/m3 ($0.05/yd3)
placer gold. This translates to about 0.002 oz/m3 (0.0015 oz/yd3) at a gold price of $19.00/oz. The
author assumes that this group was working either on tailings or on barren side-hill gravel.
1916 to 1917
No placer activity from Wild Horse River was reported.
1918
“Increased activity” on Wild Horse River was reported. The Wild Horse Dredging Company acquired
placer leases somewhere on the river.
1919
The Wild Horse Dredging Company constructed a dam across the river in order to divert the flow to
gain access to the creek-bottom gravel during low water. The dam was washed out during spring
floods. Next, the company installed a drag line scraper upstream from the dam site.
The Gamble Mining Company piped water across the river from the east side to facilitate
hydraulicking on the west side. The company was working virgin ground on its Placer Lease 21B.
The 1919 hydraulicking season was curtailed during the latter part of the summer due to a shortage
of water.
A sketch taken from an east-west survey across the river on Placer Lease 21B by W.H. Eassie was
included in the Annual Report for 1919 (Figure 4). The author believes that Placer Lease 21B was located near
the southern end of the current main hydraulic pit on current Placer Claim 365588 (Figure 4). It is interesting
to note that the bedrock surface in the central part of the survey-area slopes to the west, away from the present
river channel, indicating the presence of an old bedrock channel beneath the pit.
1920
The Wild Horse Dredging Company was “re-organized” and did no work during the year. Also, the
Gamble Mining Company did not work on Wild Horse River in 1920.
1921 to 1922
It was reported in the Annual Report for 1921 that “returns from Wildhorse are increasing”. Probably,
those returns were from various small operations.
By 1922 The Wild Horse Dredging Company was defunct. With great scorn, it was revealed in the
Annual Report for 1922 that the company was just an excuse for “a stock-jobbing proposition from
start to finish”.
The Gamble Mining Company secured more water rights and repaired “an old flume” before
commencing hydraulicking in the main hydraulic pit late in the season.
-12-
-131923
The property of the Gamble Mining Company and other placer properties on Wild Horse River were
acquired by the Wild Horse Creek Mining Company. The Victoria ditch was renovated and a new
flume was built enabling delivery of water from the western side of the river at a rate of 0.34 m3/sec
(12 ft3//sec). Camp buildings were erected also. The company’s plan was to commence hydraulicking
in the main hydraulic pit area in 1924.
1924
The Wild Horse Creek Mining Company conducted a hydraulicking operation in the main hydraulic
pit throughout the season. The water delivery capacity of the Victoria ditch was increased to 1.42
m3/sec (50 ft3//sec) to enable the use of a monitor even during the low-water period from August to
October. The old Quong Yung Tong ditch on the eastern side of the river was renovated and extended
to within 0.8 km (0.5 mi) of Victoria Gulch. A trestle was built to pipe water across the river to the
main hydraulic pit area. That enabled a second monitor to be employed during high water in the early
part of the summer season. The company was satisfied with the amount of coarse gold that was
produced from the main hydraulic pit.
An un-named group that was drifting along bedrock at Boulder Creek found a narrow pay streak
containing some coarse gold lying next to bedrock. They contemplated hydraulicking the area.
1925
The Wild Horse Creek Mining Company became known as the Wild Horse Gold Mining Syndicate.
The syndicate hydraulicked in the main hydraulic pit area all season. The results of the clean-up were
unknown. The syndicate must have been disappointed with the results of that clean-up because it
planned to use the monitors on other parts of its holdings.
1926
The Wild Horse Gold Mining Syndicate tested ground on the southeastern side of the river.
1927
The Wild Horse Gold Mining Syndicate employed a crew hydraulicking and cleaning up bed rock.
They may have been working in the old Nip and Tuck pit located in the southwestern part of current
Placer Lease 368385. There, the pit had been hydraulicked to bedrock by 1903.
1928 to 1933
The Wild Horse Gold Mining Syndicate continued hydraulicking with one monitor. Much effort was
spent sinking shafts and tunneling in search of old channels. The syndicate’s claims extended for 3.2
km (2 mi) above Brewery Creek. That ground included much of current Placer Lease 368385 and the
southern end of current Placer Claim 514135.
1933
J.H. Norman and J.H. Dixon of Calgary acquired an undisclosed number of placer leases between the
mouth of Wild Horse River and Boulder Creek. They built a timber seepage dam and a V-shaped
flume with 1.8-m (6-ft) high sides near the hydraulic pit at the southwestern end of the current Placer
Lease 368385. Their plan was to excavate the creek bed beneath the dam at low water. Nothing
seems to have come of that plan.
1933 to 1935
A. Suran and sons were working placer leases on Boulder Creek about 1.2 km (0.75 mile) above its
confluence with Wild Horse River. They had excavated a deep trench to divert the water from their
working area in the creek bed in order to mine a thin but rich layer of pre-glacial or inter-glacial gravel
on bedrock. They were recovering nuggets valued at up to $27. At an average gold price of $26.38
in 1933, some of those nuggets weighed more than an ounce.
Downstream from A. Suran’s operation on Boulder Creek, W.A. Drayton was driving a tunnel to
bedrock.
-141934 to 1971
The official price of gold was pegged at $US35/oz while inflation drove up mining costs. Generally,
placer mining became uneconomic and declined.
1935 to 1953
No placer activity from Wild Horse River was reported.
1953
It was reported that J. Holbrook continued to work on his leases located 3.22 km (2 mi) upstream from
the Kootenay Base Metals mill (in the northern part of the main hydraulic pit). There were no details
regarding either the nature of Holbrook’s work or of how long he had been working.
1954 to 1957
No placer activity from Wild Horse River was reported.
1957
Fort Steele Gold and Silver Mines Ltd. of Cranbrook acquired four placer leases from C.F. Gorse. The
leases were located southwest of the mouth of Fisher Creek and covered the old Quong Yung Tong
Company hydraulic pit located on in the northeastern part of current Placer Lease 368385. A crew
of four installed a bucket conveyor to a sluice, a 10-cm (4-inch) monitor, and a 12,285 litre/min (2,700
gal/min) pump. During the season, they washed down about 7,650 m3 (10,000 yd3) of gravel
containing an undisclosed amount of placer gold.
1958
Boreas Mines Limited of Calgary bought the leases covering the operation in the old Quong Yung
Tong Company hydraulic pit. Boreas conducted “exploratory drilling”. No details of that drilling are
known to the author.
1959 to 1962
At sometime during this period, the four leases covering the Quong Yung Tong Company hydraulic
pit were acquired from Boreas Mines Limited by Wildhorse Golds Limited of Edmonton.
1963
Pundata Mining Limited of Cranbrook acquired the four placer leases covering the Quong Yung Tong
Company hydraulic pit and whatever equipment was on them from Wildhorse Golds Limited.
It was reported that most of the activities in 1963 were on the west side of the river, where several cuts
and test-holes were made by bulldozer, and a crew of four men washed 1,148 m3 (1,500 yd3) of gravel.
“Some gold was recovered.” The author is uncertain if that testing was conducted on the Fisher Creek
leases or in the main hydraulic pit farther up river.
1964 to 1967
No placer activity from Wild Horse River was reported.
1965
M.C. Robinson (1965) reported that placer mining on the leases around the Quong Yung Tong
Company hydraulic pit at Fisher Creek was an economic failure. During his 1965 field program,
heavy equipment, by then in the hands of a receiver, was still in the pit. He reported that there was
no placer mining being conducted on Wild Horse River in 1965.
1968
Jacques de Floras conducted an undisclosed amount of bulldozer trenching and pit excavation,
panning and other gold testing on Placer Lease 1009 somewhere near Fisher Creek.
1969 to 1978
No details of placer exploration or production from this time are known to the author. P.W. Ransom
(2009) mentioned that “small scale mining sporadically continued throughout the 1950s, 1960s and
1970s”.
-15Unless otherwise referenced, the following history is gleaned from the records of the British Columbia
mineral tenure website mtonline.bc.ca/ .
1979
Placer Leases 266483 and 266485 were granted on May 14, 1979, presumably to James Harold Jacob,
reportedly the father of Jason Jacob, or an associated entity. Both leases had nominal areas of 50.0
hectares (123.5 A). December 31, 1979 Placer Lease 266507 was granted presumably to Jacob
interests. That lease had a nominal area of 50.0 ha (123.5 A) also.
Placer Lease 266483 was a predecessor of current Placer Lease 368385. The author strongly suspects
that Placer Lease 266485 covered the central part of the main hydraulic pit and that the current Micrex 1
(365588) claim is a successor of Placer Lease 266485 (see 1998). By 1993, Placer Lease 266485 was owned
by Gee Cee Mines Ltd. of Edmonton, a close associate of the Jacobs family. Currently, the Micrex 1 (365588)
claim is registered to the same company.
1980 to 1983
Placer Leases 266483, 266485, and 266507 were kept in good standing by the payment of annual fees.
No details of placer exploration or production from this time are known to the author.
1984
P.W. Ransom (2009) described work along Wild Horse River from Fisher Creek to Boulder Creek as
follows:
Modern placer exploration started on the Wild Horse River in 1984 with three operators.
Two were mining placer leases on the northwest side of the river. They were working two newly
discovered pre-glacial slot channels along an area across the valley from the tributaries of Fisher Creek
and Frenchman’s Gulch. The other was working placer leases on the southeast side of Wild Horse
River, at a site below Fisher Creek (probably on current Placer Lease 368385). Their operations
uncovered a pre-glacial slot channel approximately 27.4 m (90 ft) above the present river. This slot
channel was buried under the previous hydraulic mining operations from the 1890s. Initial washing
of these tertiary gravels found them with paying quantities of placer gold.
Ransom, P.W.; 2009: pp. 1-2.
The author opines that the leases that Ransom (2009) mentioned on the southeastern side of Wild
Horse River were Placer Leases 266483 and 266507 controlled by the Jacobs and their associated entities.
1985 to 1990
Placer Leases 266483, 266485, and 266507 were kept in good standing by payment of annual fees.
No details of placer exploration or production from this time are known to the author.
-161990
On October 30 to 31, 1990, eight placer claims were staked in the area extending from near Fisher
Creek to Boulder Creek along Wild Horse River. They were: Wild Hoof (266724), Longshot
(266725), Fisher Hill 1 (266726), Hopeful (266727), Fisher Cr. Two (266728), Fisher Hill 2 (266729),
Fisher Boulder 3 (266730), and Hopeful Two (266732) claims. The claims were staked by: James and
Jason Jacob, Great Eagle Resources Ltd. of Cranbrook, and Gee Cee Mines Ltd. of Edmonton. The
two companies seem to have been closely associated with James and Jason Jacob.
1991
By 1991 Placer Lease 266483, a predecessor of current Placer Lease 368385 was owned by Great
Eagle Resources Ltd. It was grouped with the eight claims staked the previous year and with Placer
Lease 266485 on October 30, 1991.
Enough physical work was filed to keep all of the claims in good standing for one year.
1992
Six of the eight claims in the 1990-era group lapsed on October 30, 1992. Only the Fisher Hill 2
(266729) and the Fisher Boulder 3 (266730) claims remained in good standing. Those two placer
claims straddled Wild Horse River around the northern end of the main hydraulic pit.
The author suspects that the Jacobs and their associates held onto the claims around the northern end
of the main hydraulic pit because they believed that they covered the area between Fisher and Boulder creeks
that was of the greatest potential value.
1993 to 1994
The Fisher Hill 2 (266729) and Fisher Boulder 3 (266730) claims, and Placer Leases 226483, 266485,
and 266507 were kept in good standing with the application of physical work and annual fees. A
grouping notice filed October 29, 1993 reveals that three additional placer claims: the Wild Horse 1
(317010), Fisher’s Nugget (317011), and Janet One (318602) had been staked and included with the
previously held claims and leases to form a contiguous group.
1995
On September 25, 1995, Placer Leases 266483, 266485, and 266507 were extended.
1996 to 1997
During the 1990s, it was less expensive to re-stake claims than to file work on them. Grouping
Notices filed on October 29, 1996 and on October 9, 1997 reveal that the Wild Horse 1 (317010), and
Fisher’s Nugget (317011) claims lapsed and were replaced by the Great Eagle I to III (352135,
354934, and 354935) claims.
1998
On September 18, 1998, Placer Lease 266485 was surrendered, and on the following day, the Micrex
1 (365588) claim was granted to Jack Dyck of Lethbridge, presumably for the benefit of Gee Cee
Mines Ltd. of Edmonton, a company closely associated with the Jacob family since 1979 and the
current registered owner of the claim. The author strongly suspects that the current Micrex 1 (365588)
is a successor to and covers the same ground as Placer Lease 266485 (Figure 3).
1999
Placer Leases 266483 and 266507 were combined and converted into current Placer Lease 368385.
The two leases had a nominal combined area of 100.0 ha (247 A). Probably when calculated
rigorously for the conversion, the area of the new lease 368385 was 112. 86 ha (278.76 A). The new
lease was granted to Great Eagle Resources Ltd. of Cranbrook, a Jacob associate. Placer Lease
368385 has been kept in good standing from 1999 to present by payment of annual fees.
A grouping notice filed on October 28, 1999 revealed that the holdings of the Jacob interests
comprised the following: Placer Lease 368385, and the Fisher Hill 2 (266729), Fisher Boulder 3
(266730), Great Eagle I (352135), and Great Eagle 4 (366689) claims.
-172000
P.W. Ransom (2009) described work on the current Wild Horse River property as follows:
In 2000 a large bulk test was done on the northwest side of Wild Horse River by a company
from Montana that had optioned a section of the placer property. Their records state that they washed
344.25 m3 (450 yd3) from 2.44 m (8 ft) of lower pay gravels in an upper middle slot channel.
Ransom, P.W.; 2009: pp. 1-2.
2002
A grouping notice filed on April 8, 2002 reveals that the Dome (368497), Total (368498), Domal
(376609), and Eagle 1 (390156) claims had been added to the holdings of the Jacob interests.
2003
No details of placer exploration or production from this year are known to the author.
2004
P.W. Ransom (2009) described work on Placer Lease 368385 as follows:
In 2004 a bulk test program was started by Great Eagle Resources Ltd. (The) main mining
operation (was) on the southeast side (of Wild Horse River) to assess the value of the pay channel to
depth. Two pit locations were excavated to bedrock with an approximate depth of 6.56 m (20 ft). Test
results confirmed that the most profitable pay layer of washable gravels was (from) 1.52 m (5 ft) to
bedrock with another 0.66 m (2 ft) into the bedrock. Recovery from bedrock of the upper pit gravels
found high gold values (concentrations) of up to $52.29/m3 ($40.00/yd3) (gold price was unstated) and
nuggets ranging from 0.25 oz to 0.5 oz in size (weight).
Ransom, P.W.; 2009: pp. 1-2.
Recent excavator pits in the Quong Yung Tong hydraulic pit southwest of Fisher Creek on Placer
Lease 368385 confirm that the 2004 work program was conducted there.
2005
On-ground staking was replaced by map-staking in British Columbia in the winter of 2004-2005. Six
“legacy” placer claims owned by Jacob associates: Fisher Hill 2 (266729), Fisher Boulder 3 (266730),
Great Eagle I (352135), and Great Eagle 4 (366689), Dome (368497), and Total (368498) were
converted into current Placer Claim 514135.
2005 to 2008
Great Eagle Resources filed physical work involving “machinery and equipment” to keep Placer
Claim 514135 in good standing.
2007
On September 14, 2007, Gee Cee Mines Ltd. filed a notice of physical work involving “machinery
and equipment in a trench or open cut”. That work may have been conducted in the excavator pit
located near the northeastern corner of the Micrex 1 (365588) placer claim (Figure 3).
2009
Placer Claim 514135
Great Eagle Resources filed physical work described as placer sluicing, panning or rocker box
separation including transport costs for a program that was conducted from June 1 to October 7, 2009.
This appears to be the program of pit sampling and percussion drilling conducted by Jason Jacob and
reported upon by P.W. Ransom (2009) (Figure 3). Ransom described the pit configuration as follows:
-18There were 6 closely spaced pits at one location and 4 closely spaced pits at a second location
about 518 metres (1,699.5 ft) downstream along the northwest side of Wild Horse Creek from the first
set. The set of 6 pits cover a distance of about 175 metres (574.1 ft) (as per measurement by Jason
Jacob) from the base of a steep slope to the riparian area (top of bank) of Wild Horse Creek, and that
the second set may cover about 60 metres (196.9 ft) from base of slope to riparian area ...
Ransom, P.W.; 2009: p. 3.
The author re-tabulated Ransom’s (2009) table of Jason Jacob’s 2009 pit sampling to include metric
units as follows:
Table 2
Results of Jacob’s 2009 Pit Sampling
Pit No.
Sample Size
yd3
m3
Gold Grains per
yd3
m3
Total Gold
Grains per Pit
1
9.18
12.0
16.08 12.3
147.6
2
7.65
10.0
7.45
5.7
57.0
3
9.18
12.0
51.76 39.6
475.2
4
7.65
10.0
11.24
8.6
86.0
5
7.65
10.0
5.75
4.4
44.0
6
16.06 21.0
138.95 106.3
2232.3
7
11.48 15.0
40.13 30.7
460.5
8
10.71 14.0
32.68 25.0
350.0
9
13.01 17.0
9.15
7.0
119.0
10
5.36
7.0
18.04 13.8
96.6
Total
97.93 128.0
331.24 253.4
4068.2
Total
excluding
Pit 6
81.87 107.0
22.42 17.16
1835.9
Normal Av. grains/m 3 (yd3):
Total grains/m 3 (yd3)
No. of pits = 10
33.07 25.3
Weighted Av. grains/m3
(yd3):
Total No. of grains
No of Total grains/m 3 (yd3)
No. of m 3 (yd3)
Normal Av. grains/m 3 (yd3)
Excluding Pit 6:
Total grains/m 3 (yd3)
No. of pits = 9
Weighted Average grains/m 3 (yd3)
Excluding Pit 6:
No of Total grains/m 3 (yd3)
No. of m 3 (yd3)
41.57 31.8
21.3
16.3
22.48 17.2
-19Pits were dug to an average depth of 6.7 m (22 ft), the limit to which the excavator that was used could
dig beneath surface. None of the pits reached bedrock.
The author finds it strange that some of Ransom’s reports of total grains per sample ware not integers.
He mentioned that he arrived at his calculation of total grains per sample by multiplying the number of grains
per yard by the sample size in yards. It seems that Jacob did not provide Ransom with the total grain counts
per sample.
A total of seven churn holes were drilled at four locations along the western side of Wild Horse River
on Placer Claim 514135 (Figure 3). Drill holes No. 1 and 2 were drilled near Pits No. 7 to 10. Drill
holes No. 3 to 5 were drilled near Pits No. 1 to 6. Drill holes No. 6 and 7 were drilled at locations
between the location of Drill Holes No. 3 to 5 and the mouth of Boulder Creek. The author retabulated the results of Jason Jacob’s sampling of the drill holes as reported by P.W. Ransom (2009)
to include metric units as follow:
Table 3
Results of Jacob’s 2009 Drill Hole Sampling
Drill Hole
No.
Approximate
location
U.T.M.
Elevation m
Length
Sample Size
m
m3
yd3
1
5,503,415 N.
603,138 E.
980
6.1 20
2.52
3.3
11.90
9.1
30
2
5,503,415 N.
603,138 E.
980
6.1 20
2.52
3.3
11.90
9.1
30
3
5,503,928 N.
603,208 E.
1,000
9.8 32
4.05
5.3
12.29
9.4
50
4
5,503,928 N.
603,208 E.
1,000
13.4 44
5.58
7.3
7.19
5.5
40
5
5,503,928 N.
603,208 E.
1,000
15.8 52
6.58
8.6
7.58
5.8
50
6
5,504,442 N.
603,349 E.
1,005
12.8 42
5.35
7.0
11.24
8.6
60
7
5,505,022 N.
603,498 E.
1,015
18.3 60
7.65 10.0
2.77
2.0
20
34.27 44.8
64.71 49.5
280
ft
Total
Gold Grains per
m3
yd3
Normal Average: total grains/m 3 (yd3)
No. of samples
9.28
7.1
Weighted Average: total grains in all samples = 280
total No. of m 3 (yd3)
8.24
6.3
Total Gold
Grains per
Drill Hole
-20It is very improbable that the number of gold grains found in every one of seven drill holes was evenly
divisible by 10. It is concluded that the numbers of gold grains that Jason Jacobs reported from each drill hole
were rough estimates. The calculations of gold grains per m 3 (yd3) in this table must be rough estimates also.
The author has re-tabulated Ransom’s (2009) calculation to include metric units as follows:
Table 4
Ransom’s 2009 Conversion of Gold Grains
to Troy Ounces of Placer Gold
Test Methodology
Gold Grains per
m3
yd3
Placer Gold
Ounces per
m3
yd3
Test Pits (all 10) - normal average
33.07 25.3
0.069 0.053
Test Pits (all 10) - weighted average
41.57 31.8
0.086 0.066
Test Pits (no Pit 6) - normal average
21.3
16.3
0.044 0.034
Test Pits (no Pit 6) - weighted average
22.48 17.2
0.047 0.036
Drill holes - normal average
9.28
7.1
0.020 0.015
Drill holes - weighted average
8.24
6.3
0.017 0.013
P.W. Ranson (2009) used the foregoing calculations to calculate a resource which was non-compliant
with National Instrument 43-101 (see Section 2.2, this report).
MICREX 1(365588) placer claim
Gee Cee Mines Ltd. commissioned Owens Drilling Ltd. of Cranbrook to drill an air rotary chip hole
to a depth of 14.6 m (48 ft) in the main hydraulic pit on the MICREX 1 (365588) placer claim located
adjacent to the western boundary of Placer Claim 514135 (Figure 3). Drilling was conducted on July
2, 2009. Chips were sampled at 0.65-m (2-ft) intervals. Samples were put through a vibrating screen
deck and the resulting concentrates were hand-panned.
The drill hole penetrated calcified gravel above bedrock and did not intersect the bedrock surface.
Although no stratigraphic units were recorded in the drill log, the author assumes that the hole was
drilled in undisturbed gravel and not tailings. Calcified gravel was too indurated for hydraulic
monitors to break up and was left behind. All concentrates were reported to be “chalcopyrite black
sand”. Up to four very fine flakes of gold were recovered from the samples from surface down to 12.8
m (42 ft). A 3 X 5 mm nugget and a 1 X 2 mm nugget, and 7 very fine gold flakes were recovered
from the 13.4 to 14.6-m (44 to 48-ft) intervals.
2010
Physical work described as using machinery and equipment was filed for a work program conducted
by Great Eagle Resources Ltd. reportedly in the northeastern part of the main hydraulic pit near the
site of the southern two 2009 drill holes and four 2009 pits.
-212011
On April 12, 2011, claims including Placer Lease 368385 and Placer Claim 415135 were transferred
from Great Eagle Resources Ltd. to Jason Jacob.
On May 27 and June 9, 2011, claims including Placer Lease 368385 and Placer Claim 415135 were
transferred from Jason Jacob to La Concha Minerals Inc. of Vancouver.
On June 17, 2011, a certificate of pending litigation was filed on claims including Placer Lease
368385 and Placer Claim 415135.
On September 8, Placer Lease 368385 was transferred from La Concha Minerals Inc. to Raymond
Keith Morton, an associate of Jason Jacob.
2012
No work was conducted on the Wild Horse River property because it was the subject of litigation.
2013
On February 26, 2013, the Wild Horse River property comprising Placer Lease 368385 and Placer
Claim 415135 was transferred to Merklin Resources Inc. of Vancouver by court order.
On November 24, 2013, the author was commissioned to research placer exploration and mining in
the current property-area and to make recommendations. He examined the property on December 5,
2013 and on January 23, 2014.
On December 27, 2013 Geotronics Consulting Inc. was commissioned to conduct a seismic survey
over current Placer Claim 514135.
During 2013, Steve Lanthem produced about 12 oz of placer gold from a small operation on the
southern part of the alluvial fan of Boulder Creek. Lanthem’s pay streak is inter-glacial red gravel
preserved in a series of shallow rock basins at the base of the fan. The workings are located on the
southern part of Placer Claim 1012014 close to the northern boundary of Placer Claim 514135 (Figure
3).
2014
Geotronics Consulting Inc. conducted the first part of the current (2014) seismic survey on the
property from January 18 to February 7, 2014. Instrument problems due to -40° C weather forced a
halt to the survey. Work continued from March 10 to 15, 2014.
2.2 Historical Placer Mineral Resource and Reserve Estimates, and Production
from Wild Horse River Property-area
No historical estimates of mineral resources or reserves of placer gold in the area of Placer Lease
368385 are known to the author.
P.W. Ransom (2009) produced a resource for the valley bottom along the western side of Wild Horse
River on Placer Claim 514135. The resource extended for 2,500 m (8,202.1 ft) from the northern part of the
main hydraulic pit to the mouth of Boulder Creek. The length of the resource area included the four 2009
churn-drill sites (Figure 3). The resource was estimated to have an average placer gold content of 0.047 oz/
m 3 (0.036 oz/yd3) contained in 1,968,125 m 3 (2,572,712 yd3) of surficial regolith resulting in a total placer gold
-22content of 92,108 ounces. The resource was described as follows:
The placer channel on tenure #514135 extends for 2.5 km (8,202.1 ft) across the property.
The channel width varies along the length of the channel, but an estimated average width of 177.5
metres (582.3 ft) has been determined by Great Eagle (an associate of the property owner). The depth
of the channel shows gold well beyond 15 metres (49.2 ft) (see drill hole results in Table 3). However
to be conservative and consistent with Great Eagle’s mining plan a channel depth of only 6.7 metres
(22 ft) will be used to calculate the channel volume (1,968,125 m 3 or 2,572,712 yd3).
Ransom, P.W.; 2009: p. 8.
Ransom used his calculation of 0.047 oz/ m 3 (0.036 oz/yd3) from the 2009 test pits excluding highgrade Pit No. 6, to calculate the amount of placer gold in his resource. The author re-tabulated Ransom’s results
to include metric units as follow:
Table 5
Ransom’s 2009 Resource Quantification
Channel Volume
yd3
m3
1,968,125
2,572,712
Placer Gold
Ounces per
yd3
m3
Placer Gold
Ounces in
Channel
0.047 0.036
92,108
This resource is not compliant with National Instrument 43-101 and suffers from several problems
that inhibit its usefulness. The major problems with it are as follow:
1.
The regolith stratigraphy beside Wild Horse River in the resource-area comprises: hydraulic tailings,
lean grey gravel, gold-rich red gravel, blue boulder-clay till, and discontiguous inter-glacial gravel
beneath the till. Rich gold-bearing channels occur in the red gravel on the “false bedrock of the till”
and on bedrock. The author can find no evidence that a channel was identified as a result of Jason
Jacob’s 2009 exploration. The use of the word “channel” in this context is misleading.
2.
Pit and drill sampling data are too sparse to justify this resource with any certainty.
3.
The average placer gold content of samples from the 2009 test pits excluding high-grade Pit No. 6
(0.047 oz/ m3 or 0.036 oz/yd3) is used as an average gold content for the full length of his resource
area. The pits were dug in the southern part of the resource area. The gold placer content is much
lower in drill-hole samples in the northern part of the resource area (Tables 2 and 3). Thus, use of the
gold-concentrations from the pit samples results in an overestimation of the resource.
4.
A conversion of 480 grains = 1 Troy ounce was used to calculate the placer gold contents of Jacob’s
sampling. However, the concept of a grain as a unit of weight that equals about 0.0648 grams was
replaced with counts of physical grains of various weights. None of the gold from Jason Jacob’s
sampling of the pits and drill holes seems to have been weighed. Therefore, the accuracy of the
determinations of placer gold ounces per m 3 (yd3) are unknown. Therefore, all calculations based on
those determinations are rough estimates.
-235.
Data used to calculate this resource were that of Jason Jacob, an associate of the property owner,
without independent verification.
In the author’s opinion, this resource can not be relied upon.
P.W Ransom (2009) described the sufficiency of his resource estimate as follows:
This sampling density is not sufficient to establish an absolute value for an official reserve
number. However, a reasonable and conservative estimate of the gold quantity can be calculated from
the information provided.
Ransom, P.W.; 2009: p. 3.
S.S. Holland (1950) described reporting of placer gold production from Wild Horse River as follows:
Most of the placer gold from the Fort Steele Mining Division has come from Wild Horse
River, formerly known as Wild Horse Creek, discovered in 1863. The record of production since 1874
is reasonably complete, but for the preceding years... there is absolutely no record. From 1896 to 1905
the production from Perry Creek (discovered in 1867) is listed with that of Wild Horse River, and from
1906 to 1922 the production of the whole division is listed under Wild Horse River. In the early years
Wild Horse River probably produced about nine-tenths of the total placer gold production of the
division.
Holland, S.S.; 1950: p.33.
Holland calculated that a total of $820,008 was realized through a reported production of 41,858 oz
of gold. He used an average gold price of $18.25/oz and an average fineness of 0.878 in his calculation.
The author subscribes to the supposition that actual production from a placer camp is at least 10 times
the amount of the reported production. J.D. Galloway (1933) made such a supposition in his summary of placer
mining in British Columbia as follows:
The total production of the (Wild Horse) creek, mostly from a length of 3 or 4 miles (4.83
to 6.44 km), is variously estimated at from $5,000,000 to $20,000,000. A large production at least is
certain ...
Galloway, J.D.; 1933: p. 44.
Using the average free market price for gold in 1933, $26.33/oz, an unofficial production of 189,897
to 759,588 ounces can be estimated. Using an average price for gold of $18.00/oz as reported during the late
19th century, an unofficial production of 277,778 to 1,111,112 ounces can be estimated.
-24S.S. Holland (1950) reported four gold fineness calculations from 237 oz of placer gold that ranged
from 0.879 to 0.900 fine gold. Curiously, he reported an average gold fineness of 0.878 in his table and used
that fineness in his calculation of reported production.
Holland’s gold fineness calculation is similar to a statement of gold fineness that appeared in the B.C.
Minister of Mines’ Annual Report of 1894 that read:
The gold shipped out realized, after all charges were paid, on an average of $17.60 an ounce,
the fineness being 0.884. It contains, also a small value of silver.
B.C. Min. Mines’, Ann. Rept. of 1894: p. 746.
These fineness calculations are similar to one that can be made from a statement in the B.C. Minister
of Mines’ Annual Report of 1924:
... The gold recovered was fairly coarse and of high grade, running $18.12 to the ounce.
B.C. Min. Mines’, Ann. Rept. of 1924: p. B187.
The average open market gold price that year was $20.69/oz. Using that price and recognizing that
an unknown amount of smelter charges would have been deducted to produce the reported $18.12/oz net
revenue, the minimum fineness of that gold would have been 0.876.
On December 5, 2013, the author examined some gold that has been produced recently from near the
confluence of Boulder Creek and Wild Horse River by Steve Lanthem. That gold being quite orange, was
similar to the colour of a British or Canadian gold sovereign. The sovereign was a circulation coin that
contained 0.917 gold and 0.083 copper to harden the alloy. The author suspected that the gold that he examined
was about 0.885 fine and contained almost 0.115 copper with “a small value of silver”.
During 2013, Steve Lanthem ran a small-scale placer operation on Placer Claim 1012014 which is
adjacent with the northern boundary of Placer Claim 514135 of the Wild Horse River property. He produced
12 oz of placer gold.
-25-
-26-
-27-
-28-
-293.0 GEOLOGICAL SETTING AND MINERALIZATION
3.1 Regional Geology
The southern Hughes Range around Wild Horse River has been mapped by both the Geological Survey
of Canada and by the British Columbia Geological survey, most notably by: G.B. Leech (1958 and 1960),
Trigve Höy (1979 and 1984) (Figure 5), and re-compiled by Trigve Höy and Ginette Carter (1988). A more
recent computerized (less detailed but more colourful) rendition of that mapping is available at the British
Columbia government website: mapplace.ca/ .
For a history of stratigraphy and deformation, see Table 6 of this report.
R.J.W. Douglas et al. (1970) described the geologic history of the southern Hughes Range around Wild
Horse River as follows:
The Proterozoic successions of the southeastern Cordillera are customarily referred to as the
Purcell and Windermere systems. They are separated by a widespread unconformity and interval of
folding, metamorphism, and intrusion of granitic stocks, these effects being considered to be the result
of the East Kootenay Orogeny. The granites ... have yielded K-Ar dates of 675 to 745 million years
which suggest that the orogeny occurred within the Hadrynian era ... The Purcell is probably therefore
mainly Helikian in age although part may be as young as early Hadrynian and, by virtue of its
allochthonous position with respect to the Hudsonian metamorphosed basement, part of the Purcell
may be Late Aphebian. The Windermere falls entirely within the Hadrynian and, as it is locally
conformable with Lower Cambrian sediments, probably represents all or most of the late Hadrynian
...
The Purcell is divisible into two main parts by an hiatus, partly represented by the Purcell
lava, a very extensive basalt flow several hundred feet thick ... The lower part of the Purcell is
divisible into three main units. The lowest includes the thin, varicoloured, laminated, and stromatolitic
carbonates and conglomerates with pebbles of quartzite and dolomite that comprise the near-shore
Waterton and Aylton formations in the Clarke Range, and which grade westward into various facies
including that of the very thick Aldridge Formation. The Aldridge comprises rusty-weathering, finegrained, laminated argillaceous quartzite and dark argillite with graded bedding and scour and fill
structures, indicating deposition in deep water. The middle unit contains red and green argillite and
quartzite that comprise the Appekunny and Grinnell formations in the east. These rocks contain such
tidal-flat and shallow-water features as channel fillings, torrential ripple marks, mud cracks, salthopper and raindrop markings, features that are generally lacking in the equivalent but thicker Creston
Formation of the west. The upper unit of the lower Purcell, represented by the Siyeh Formation in the
east, contains much clean carbonate typically with “molar tooth” and stromatolitic and oolitic
structures, interbedded with shale and siltstone in the lower and upper parts. The latter unit constitutes
the Siyeh of the Purcell Mountains and the underlying rocks, argillaceous and silty dolomites, form
the Kitchener Formation. The upper part of the Purcell, the Shepard and lower Gateway formations
contain much argillaceous and silty dolomite whereas the conformable higher units of alternating
argillite and quartzite vary from green and grey to purple and red and exhibit shallow water
sedimentary structures. The Purcell is intruded by the Moyie gabbro sills and is unconformably
overlain by the Hadrynian Windermere system in the western and northern Purcell mountains and by
various Palaeozoic formations in the eastern Purcell and southern Rocky Mountains...
-30Helikian sedimentation was brought to a close in the southern Cordilleran Geosyncline by
the East Kootenay Orogeny ... It was manifested by uplift, gentle folding, tilting, faulting, granitic
intrusion, and regional metamorphism to greenschist facies and locally to sillimanite grade.
...
In southern Rocky Mountains, the Miette Group is composed of a basal unit, 3,000 feet (914
m) thick of argillite and argillaceous sandstone, succeeded by 2,000 feet (610 m) of sandstone, grit,
conglomerate, and argillite, which is overlain by 3,000 feet (914 m) of argillite and, locally at the top,
by a carbonate 0 to 3,000 feet (914 m) thick ...
The Lower Cambrian ... is restricted to the Cordilleran Geosyncline, and is generally thickest
in linear troughs marginal to the (North American) craton. It is of miogeosynclinal facies. Thick
extensive sheets of orthoquartzite and conglomerate overlain by limestone ... grade westward into
thinner calcareous shales ... Their maturity relative to the underlying Windermere clastics, with which
they may be locally conformable, suggests reduction of relief and a general tectonic stability of the
(North American) craton by ... the Early Cambrian. Northeast-trending Eager Trough (south of the
property-area) possibly bordered on the southeast by the Moyie fault, separates Purcell Arch from an
emergent block to the south (Montania). Quartzose sandstone and conglomerate derived from adjacent
uplifts transgress the arch and lie unconformably on Purcell and Windermere strata...
Middle Cambrian sediments ... in the southern Cordilleran Geosyncline conformably overlie
the Lower Cambrian in ... deeply depressed ... troughs ... Shale was probably deposited in the Eager
Trough ...
R.J.W. Douglas et al.; 1970: pp. 371-378
in R.J.W. Douglas ed.; 1970.
Lower to Middle Cambrian Period sedimentation is represented in the Wild Horse River area by: Eager
Formation shale, siltstone, limestone, and quartzite; and Cranbrook Formation quartzite, conglomerate and
limestone. West of the Hughes Range, the Cordilleran Eugeosyncline was filled by sediments and volcanics
of the Slocan and Lardeau groups from the Upper Cambrian to Devonian period. The Cariboo Orogeny
occurred during the Early to Middle Ordovician Period. It resulted in deformation, regional metamorphism and
conpressional folding and faulting. The final filling of the Cordilleran Miogeosyncline by strata of the Kaslo
and Milford Groups occurred from the Devonian to Triassic Period (Table 6). Those rocks are not present in
the Hughes Range.
The Columbian Orogeny occurred from the Early Jurassic to Middle Cretaceous Period (Table 6). It
created most of the current landforms and shifted most of the geologic terranes of British Columbia into their
current positions. Normal faulting related to development of the Rocky Mountain Trench, occurred throughout
the Hughes Range. Deposition of small monzonitic intrusions in the Wild Horse River area was related to this
tensional faulting. These stocks may have provided fluid flow necessary for the deposition of the gold-bearing
-31pyrite-chalcopyrite-galena-sphalerite-arsenopyrite mineralization hosted in quartz veins that are generally
believed to be the source of the placer gold in Wild Horse River.
The Early Tertiary Period, from Palaeocene to Eocene time, was one of transcurrent then tensional
faulting. This was followed during the late Tertiary Period, Eocene to Pliocene time, by continental uplift and
deep erosion. This weathering of sulphide minerals in quartz veins during this erosion released free gold for
transport into the Wild Horse River system.
Pleistocene and Recent channel development was of primary importance in the development of the
current distribution of gold in the Wild Horse River system (Sections 3.2.2 and 5.2 of this report).
Table 6
Table of Geologic Events and Lithologic Units in the Wild Horse River Property-area
Time
Formation or Event
Recent
8,000-0 years
Valley rejuvenation:
Down cutting of the present stream profile.
MINERALIZATION: Re-deposition of placer gold from pre-existing channels
Pleistocene
Wisconsin
. 130,000-8,000 years
Sangamon
350,000-130,000 years
Late Illanoian
390,000-350,000 years
Valley filling with the upper grey gravel
Alpine glaciations, uplift and channel development at 90,000, 65,000 and 15,000
years
MINERALIZATION: concentration of placer gold in channels; weathering of
gold out of sulphide-bearing veins
Valley filling with the lower grey gravel
Alpine glaciations, uplift and channel development at 250,000, and 175,000 years
MINERALIZATION: concentration of placer gold in channels, weathering of
gold out of sulphide-bearing veins
350,000 years: post-glacial uplift and development of the red gravel on top of the
basal blue till
MINERALIZATION: concentration of placer gold in the red gravel channels
390,000-350,000 years: major glaciation, ice carving of most of the pre-existing
sediment in the Wild Horse River valley, deposition of the blue boulder-clay basal till
Early Pleistocene to Late Illanoian
1.6 m.y. - 390,000 years
1.6 m.y. - 390,000 years: glaciations of unknown intensities and extents.
Development of the shape of the valley; survival of the “conglomerate” gravel
between bedrock and the blue basal till
Possible development of the “conglomerate” gravel during interglacial periods
MINERALIZATION: possible concentration of placer gold in “conglomerate”
gravel channels on bedrock, weathering of gold out of sulphide-bearing veins
-32Table 6 Continued
Table of Geologic Events and Lithologic Units in the Wild Horse River Property-area
Eocene to Pliocene
57.1-1.6 m.y.
Late Cretaceous to Eocene
97-57.1 m.y.
Early Jurassic to Middle Cretaceous
200-130 m.y.
Late Permian to Early Triassic
256-241 m.y.
Late Devonian to Triassic
355-251 m.y.
Early to Middle Ordovician
490-460 m.y
Middle Cambrian to Devonian
544-355 m.y.
Early to Middle Cambrian
600 to 544 m.y.
Late Haydrinian to Cambrian
675 to 600 m.y.
Late Hadrynian
745 to 675 m.y.
Late Aphebian to Late Hadrynian
1,860 to 745 m.y.
Deep erosion, and unroofing of the rocks, incision of the land surface; the
“conglomerate” gravel may date from this time.
MINERALIZATION: Release of free gold from sulphides during deep
weathering and its deposition in placers in Wild Horse River.
Disruption of stratigraphy by northerly trending transcurrent faults, onset of
regional erosion.
Columbian Orogeny:
Deformation of Cache Creek rocks in a northeastward dipping subduction zone,
accretion of Nicola Group rocks to North America:
progressive deformation and regional metamorphism, overriding of Cache Creek and
Quesnel terrain rocks onto Kootenay Arc strata, intense deformation, uplift, regional
metamorphism culminating in extensive plutonism in Kootenay Arc rocks. The
orogeny progressed from east to west. Uplift of the Coast Mountains.
Normal faulting related to development of the Rocky Mountain Trench, deposition of
small monzonitic intrusions in the Wild Horse River area
MINERALIZATION:
Deposition of gold-bearing pyrite-chalcopyrite-galena-sphalerite-arsenopyrite
mineralization hosted in quartz veins.
Mild orogenic event in southern British Columbia:
Deformation, low-grade metamorphism, plutonism, uplift and erosion.
Deposition of the Kaslo and Milford Group clastic sediments representing the
final filling of the Cordilleran Miogeosyncline in the West Kootenay region.
These rocks were deposited on an erosional surface resulting in a major unconformity
between them and the underlying eugeosynclinal rocks.
Cariboo Orogeny:
Early deformation and regional metamorphism of the Lower to Middle Eagle Bay
Formation, Slocan and Lardeau groups west of the Rocky Mountain Trench,
compressional faulting in the Hughes Range
Deposition of the Lower to Middle Eagle Bay Formation mafic volcanic and
meta-sedimentary rocks, and the Lardeau and Slocan group volcanics and sediments
in the Cordilleran Eugeosyncline west of the Hughes Range.
Deposition of Mio to Eugeosynclinal sediments in a deepening Cordilleran
Geosynclinal basin: deposition of the Cranbrook and Eager formations in the Hughes
Range, block faulting during basin deepening
Deposition of the Windermere Supergroup clastic sediments and volcanics:
East Kootenay Orogeny: folding and compressional movement on faults in the Wild
Horse River area, lower greenschist facies regional metamorphism
Deposition of the Purcell Supergroup sediments and volcanics; deposition of the
Aldridge Formation in the Wild Horse Creek area
Development of block faulting due to basinal extension during sedimentation, Normal
movement on the Boulder Creek fault system
MINERALIZATION:
SEDEX base metal deposition in the Aldridge Formation at the Sullivan mine,
west of the Hughes Range during basin spreading
m..y. = million years ago
NOTE:
Data for this table was compiled by the author from various sources.
-333.2 Property Geology
3.2.1 Hard Rock Stratigraphy and Deformation
The Wild Horse River property is underlain primarily by clastic and impure carbonate strata of the
Helikian-Era Aldridge Formation that have been metamorphosed to schists and impure carbonates by
greenschist facies regional metamorphism. Mineralogically, these rocks are a passive host with regard to the
deposition of placer gold. Their main influence on the tenor of gold deposition is their ability to form natural
riffles and sediment traps at the bedrock surface due to irregularities in their resistance to weathering caused
by inconsistencies across bedding and cleavages. For example, in the Nip and Tuck hydraulic pit on Placer
Lease 368385, bedding is tilted 65° at the bedrock surface presenting a roughness that facilitated the trapping
of alluvial gold particles.
The structural history of the property-area is much more important with regard to placer gold than is
stratigraphy. A.I. Welbon and R.A. Price (1992) studied and dated the fault systems present in the Hughes
Range surrounding the Wild Horse River area. They found that groups of northeasterly trending steeply
dipping faults were active in the Helikian and Hayrinian eras as well as in the Ordovician and Cretaceous
periods.
During the Early Palaeozoic Era (Ordovician Period) Purcell and Windermere Supergroup rocks were
thrust eastward over Early Palaeozoic Era (mostly Cambrian Period) platformal carbonate rocks. In the
property area, one of those thrusts, the Lussier Creek fault follows the Helikian-age Boulder Creek fault system
near the southwestern end of Placer Lease 368385 (Figure 6). The thrust diverges from the Boulder Creek fault
near Brewery Creek and trends northeastward up the canyon across the placer lease. Where the Wild Horse
River turns direction near the southern end of the main hydraulic pit, the Lussier Creek fault trends northward
with a steep westward dip and maintains that orientation across Placer Claim 514135. Although the surface
trace of the Lussier Creek thrust is commonly mapped east of Wild Horse River across Placer Claim 514135,
the author believes that the thrust plane has been broken into a series of plates by Cretaceous-age, northstriking, sub-vertical, extensional and transcurrent faults (Figures 5 and 6). This faulting may have produced
a zone of weakness that enabled the river to carve a deep rock channel across the area covered by Placer Claim
514135. Cretaceous-age extensional and transcurrent faulting was related to the creation of the Rocky Mountain
-34Trench just west of the Hughes Range. It reactivated many of the previously existing faults and was temporally
associated with the emplacement of small monzonitic intrusions in the Wild Horse River area.
Erik Ostensoe was a member of the Geological Survey of Canada mapping party in the Wild Horse
River area in 1957 (Leech, 1958). He recounted (pers. comm.) that the party members concluded that the
Cretaceous-age extensional faulting and monzonitic intrusion provided final ground preparation and hot fluids
necessary to produce the gold-bearing sulphide and quartz veins and mantoes that were the source of the placer
gold in Wild Horse River. That gold was released from sulphides during Tertiary Period weathering.
3.2.2 Glacial and Recent Stratigraphy
The main hydraulic pit occupies the MICREX 1 (365588) claim and the southern part of Placer Claim
514135 of the Wild Horse River property (Figure 3). The western wall of the pit is defined by a high, steep
rock bluff. Pleistocene and Recent-age unconsolidated fluvial sediments are bounded to the east also by a steep
rock bluff which is visible in the western back wall of the main hydraulic pit. The author opines that Wild
Horse River occupies a steep-sided bedrock gut throughout Placer Claim 514135.
Stratigraphy of the unconsolidated sediments in the main hydraulic pit was described in the B.C.
Minister of Mines’ Annual Report for 1896, pp. 523-524 as follows:
The bank (of the main hydraulic pit) is now (in 1896) about 5,000 feet (1,524 m) long, and
washed back 6 to 800 feet (183 to 244 m) from the creek ... and now stands nearly vertical, showing
several more or less uniform strata dipping easily towards the creek (unconsolidated sediments against
the rock bluff), of which the (a) upper stratum of 50 feet to 60 (15.2 to 18.3 m) of top dirt carries no
value (gold concentrations); (b) the next stratum or “red dirt” is about 20 to 25 feet (6.1 to 9.1 m), and
so far has proved to be the most profitable; © The blue-dirt stratum, 35 feet (10.7 m) thick in places,
is so solid that it has to be broken up by dynamite before hydraulicking; (d) the alternate layers of clay
and conglomerate of considerable depth, are to be tested for their values, and these lie on the bedrock
of highly tilted chloritic slates ...
B.C. Minister of Mines’, Annual Report, 1896, pp. 523-524.
Farther south on the southwestern part of current Placer Lease 368385 in the Nip and Tuck hydraulic
pit, the unconsolidated stratigraphy was described in the B.C. Minister of Mines’, Annual Report of 1897, p.
1025 as follows:
-35The Nip and Tuck Gold Hydraulic Mining Co. ... is working a bank about 50 feet (15.2 m)
high, of which the upper 20 feet (6.1 m) is loam, sand, etc., carrying low values (gold concentrations).
The lower stratum is a blue boulder clay, laying on a bed-rock of chloritic slates, standing at an angle
of 65°...
B.C. Minister of Mines’, Annual Report, 1897, p. 1025.
The red gravel and possibly the “conglomerate” gravel located above and beneath the blue boulderclay till respectively in the main hydraulic pit area were absent in the Nip and Tuck Hydraulic pit. The author
assumes that most of the gold production in the Nip and Tuck pit was from the bedrock surface.
J.D. Galloway (1933) recounted the assumed Pleistocene and Recent-age history of the Wild Horse
River area as follows:
The available geological data indicate that in pre-glacial times the valley of Wild Horse
Creek was partially filled with water-worn gravel, containing a concentration on bed-rock of wellrounded placer gold derived largely from the valley of Boulder creek, a tributary from the east. Wild
Horse glacier scoured this valley fairly clean and removed most of the gold. Coincidently, the
character of the valley was changed to a pronounced U-shape, its rock walls were worn off smooth,
and all decomposed rock removed therefrom. According to this theory, another abundant supply of
broken rock , sand and mud with placer gold was released on retreat of the ice. It is this debris,
subsequently worked over and roughly assorted by the glacial streams, which filled Wild Horse Creek
valley with bouldery gravel up to a level of about 300 feet (91.4 m) above that of the present stream.
During the filling of the old valley in this manner, placer gold would have to some extent deposited
with a tendency to gravitate towards bed-rock. The lack of pronounced stratification and assortment
of these gravels is taken to indicate that a complete concentration on bedrock in the glacial channel
is not to be expected, and that some of it will be found distributed through the heavier parts of the
gravel generally. Geological evidence all tends to the conclusion that the post-glacial stream pursued
a different course from the present stream, and that as a result portions of the old gravel-filled glacial
stream escaped re-excavation. It has been shown that the present stream crosses the abandoned
channel of the glacial stream in a few places, where the values (placer gold) have been removed. At
other points the gold content of the old channel has been removed by hydraulicking and groundsluicing operations. Attention of late (1933) has been directed to the remaining undisturbed sections
of the old channel ... (in the main hydraulic pit) where the present stream is considered to be about 100
feet (30.5 m) below that of the glacial stream-bed.
Galloway, J.D.; 1933: p. 44.
The author assumes that Galloway’s assessment of the Pleistocene and Recent-age history of the Wild
Horse River valley was primarily from an examination of production in the main hydraulic pit.
In the author’s opinion, Galloway erroneously assumed that most of the gold in Wild Horse River
originated in Boulder Creek. The author opines that the source of the placer gold is a plethora of small goldbearing quartz veins hosted in faults flanking the river (see Sections 3.1, 3.3.1 and 5.2.1, this report).
-36Galloway’s reference to the present stream is quite obvious; however, his references to the glacial or
post-glacial stream is not. The author believes that those references are to the red channel gravel that was
described in the 1896 Minister of Mines’ Annual Report (previous) as deposited atop the blue boulder-clay till.
Descriptions of the blue boulder-clay till are typical of a basal till and not of an ablation till as
Galloway described it. Also, Galloway ignored the “conglomerate” gravel located beneath the blue boulderclay till and he omitted any discussion of gold found between the blue boulder-clay till and the bedrock surface.
The author’s impression from Galloway’s history was that the Wild Horse River valley was scraped
almost bare by a single Wisconsin-age (latest Pleistocene) glaciation. More recent work on the glacial history
of southeastern British Columbia has demonstrated this to have been unlikely.
N.W. Rutter (1984) studied the Pleistocene-age history of the Waterton Lakes area on the eastern side
of the Rocky Mountains east of the Wild Horse River area. He found that the last major glaciation in the area
occurred during the Illanoian stage from 390,000 to 350,000 years ago (Figure 7). An ice-free corridor
subsisted along the area of the Alberta British Columbia border since that time. Two quite minor alpine ice
advances occurred at about 250,000 and 175,000 years ago during the Sangamon stage. Three more minor ice
advances occurred at 90,000, 65,000, and 15,000 years ago during the Wisconsin glacial stage.
Although Wild Horse River is on the wet side of the Rocky Mountains and thus would have endured
more extensive glaciation, ice accumulations during the Sangamon and Wisconsin stages may have been quite
thin and not destructive of pre-existing valley-fill stratigraphy.
Extrapolating N.W. Rutter’s (1984) findings to the Wild Horse River valley, the author identifies seven
distinct periods of uplift and channel development, each following a regional glaciation.
The author disagrees with Galloway’s assertion that the U-shape of the valley is entirely glacial in
origin. The author suspects that the valley between Fisher and Boulder creeks occupies a zone of weak rock
that weathered into a graben-like feature before glaciation. Gold derived locally from veins in the bedrock
surface and from those in the shear zone east of the valley accumulated on the bedrock surface. The
“conglomerate” gravel located between bedrock and the blue boulder-clay till may be either pre-Illanoian or
pre-glacial. Probably, the blue boulder-clay till is an Illanoian-age basal till. The red gravel that sits directly
-37-
-38atop the blue till may be related to isostatic uplift occurring about 350,000 years ago at the termination of
Illanoian-stage glaciation.
Weathering and valley filling occurred during most of the succeeding 350,000 years. Valley filling
was punctuated by two brief Sangamon-stage and two early Wisconsin-stage glaciations each followed by a
period of uplift and channel development. This accounts for the occurrence of gold-bearing strata in the
generally barren grey gravel above the red gravel. The most recent Wisconsin-stage glaciation and isostatic
uplift was responsible for the development of the present river profile (Table 6).
3.4 Mineralization
3.4.1 Eluvial, Fault-related Placer Gold
By the 1880s, it was well-known that both silver-bearing, galena-rich quartz veins and polymetallic
gold-bearing quartz veins existed in the Precambrian-age schists throughout the Wild Horse River area. It was
generally believed that release of free gold and its concentration into nuggets and plates during weathering out
of sulphide minerals was the source of the placer gold in Wild Horse River. Proof of this mechanism was
reported in the B.C. Minister of Mines’, Annual Report for 1891 as follows:
The Pass claim on the mountain above Wild Horse, is, I understand, shewing favourably.
In the vicinity of this lead a small stringer was discovered last summer. A little pocket in this seam,
which was situated on the mountain, far above the action of water, contained over $100 worth of gold
(over 5.6 oz @ $18/oz). The remainder of the seam, as far as it was explored was barren. This would
tend to confirm Dr. Dawson’s opinion as to the origin of the Wild Horse placers.
B.C. Min. Mines’, Ann. Rept. of 1891: p. 570.
Rocks in the Wild Horse River valley host a large number of faults with long and complex histories
of movement (Welbon and Price, 1992). Any of those faults may host polymetallic quartz veins that could have
produced free gold into the near-surface weathering profile during the destruction of sulphide minerals. Eluvial
gold could be located both at the vein locations and as dispersion trails on the bedrock surface down hill from
the veins.
-39Depressions in the solid bedrock surface intersecting the trends of infer red faults were identified in
four places by the current (2014) seismic survey (Section 5.2.1, this report, Figure 8). The author believes that
these are manifestations of eluvial gold occurrences. Many other such occurrences that are too small to be
identified by the seismic data, probably exist on the Wild Horse River property.
3.4.2 Alluvial Placer Gold
Stratigraphy of the unconsolidated sediments in the main hydraulic pit located just south of the current
(2014) seismic survey, was described in the B.C. Minister of Mines’ Annual Report for 1896, pp. 523-524
(Section 2.1, this report). From that and the author’s examinations of the property, the author summarizes the
stratigraphy in the 2014 survey area from top to bottom as follows:
1. Grey Sangamon and Wisconsin-age (350,000 to 10,000 years old) gravel resulting from repeated
filling and down-cutting in the Wild Horse valley due to minor glaciations. Most of this grey gravel
contains low concentrations of placer gold. However, richer gold-bearing gravel layers are hosted in
it.
2. Red, late Illanoian-age (about 350,000 years old) gravel due to outwash, down-cutting and channel
development at the end of a major glaciation. This gravel carries copious quantities of placer gold.
It was the main target in the main hydraulic pit.
3. Blue, boulder-clay till deposited at the base of an Illanoian-age (390,000 to 350,000 year-old)
glacier. The top and bottom metres of this till may carry a considerable amount of placer gold, but the
rest of it is essentially barren.
4. A conglomerate “till” which may be a combination of early Pleistocene and pre-Pleistocene-age
material (10 million to 350,000 years old?) that was not scraped off during the Illanoian-age
glaciation. The prolific placers reported from the bedrock surface were hosted in this material.
5. Late Precambrian-age shistose bedrock.
From this stratigraphy it can be deduced that the Red gravel channels located atop the blue till and the
conglomerate “till” on the bedrock surface are the two main placer gold-bearing units on the property. For the
mechanism of alluvial placer gold emplacement, see Section 4.0, this report. For details of river channels on
the bedrock surface and atop the blue boulder-clay till, see Section 5.2, this report, and Figures 8 and 9.
-404.0 DEPOSIT TYPE: PLACER GOLD
The mineral exploration targets on the Wild Horse River property are surficial and buried channel
alluvial placer gold deposits, and eluvial placer gold deposits related to weathering of sulphide-bearing quartz
veins. Eluvial placer deposits are not the primary exploration targets on the Wild Horse River property due to
their small size, deep burial and erratic distribution. They are described in detail by R.W. Boyle (1979; pp 337342).
Alluvial placer deposits are the main targets on the Wild Horse River property. They are described
in detail by R.W. Boyle (1979; pp 342-361).
Surficial placer gold deposits were described by V.M. Levson (1995) as follows. The morphology
and controls of surficial and buried channel placer gold deposits are essentially the same:
SURFICIAL PLACERS
C01
IDENTIFICATION
SYNONYM:
Holocene deposits; terrace placers; fluvial, alluvial, colluvial, eolian (rare) and glacial (rare) placers.
COMMODITIES (BYPRODUCTS):
Au, PGE and Sn, locally Cu, garnet, ilmenite, cassiterite, rutile, diamond and other gems - corundum
(rubies, sapphires), tourmaline, topaz, beryl (emeralds), spinel - zircon, kyanite, staurolite, chromite,
magnetite, wolframite, sphene, barite, cinnabar} Most of the minerals listed in brackets are recovered
in some deposits as the principal product.
EXAMPLES (British Columbia - Canada/ International):
Fraser River (Au), Quesnel River (Au), Tulameen district (PGE); North Saskatchewan River (Au,
Alberta, Canada),Vermillion River (Au, Ontario, Canada), Riviere Gilbert (Au, Québec, Canada),
Klondike (Au, Yukon, Canada), Río Tapajos (Au, Brazil), Westland and Nelson (Au, New Zealand),
Yana-Kolyma belt (Au, Russia), Sierra Nevada (Au, California, U.S.A.), Goodnews Bay (PGE, Alaska,
U.S.A.), Emerald Creek (garnet, Idaho, U.S.A.), Río Huanuni and Ocuri (Sn, Bolivia), Sundaland belt
(Sn, Thailand).
GEOLOGICAL CHARACTERISTICS
CAPSULE DESCRIPTION:
Detrital gold, platinum group elements and other heavy minerals occurring at or near the surface,
usually in Holocene (Tertiary subsurface channels also) fluvial or beach deposits. Other depositional
environments, in general order of decreasing importance, include: alluvial fan, colluvial, glacialfluvial, glacial, and deltaic placers.
-41TECTONIC SETTINGS:
Fine-grained, allocthonous placers occur mainly in stable tectonic settings (shield or platformal
environments and intermontane plateaus) where reworking of clastic material has proceeded for long
periods of time. Coarse autochthonous placer deposits occur mainly in Cenozoic and Mesozoic
accretionary orogenic belts and volcanic arcs, commonly along major faults.
DEPOSITIONAL ENVIRONMENT / GEOLOGICAL SETTING:
Surficial fluvial placer concentrations occur mainly in large, high-order stream channels
(allochthonous deposits) and along bedrock in high-energy, steep-gradient, low-sinuosity, singlechannel streams (autochthonous deposits). Concentrations occur along erosional surfaces at the base
of channel sequences. Alluvial fan, fan-delta and delta deposits are distinct from fluvial placers as
they occur in relatively unconfined depositional settings and typically are dominated by massive or
graded sands and gravels, locally with interbedded diamicton. Colluvial placers generally develop
from residual deposits associated with primary lode sources and by sorting associated with downslope
migration of heavy minerals. Glaciofluvial and glacial placers are mainly restricted to areas where
ice or meltwater has eroded pre-existing placer deposits. Cassiterite, ilmenite, zircon, and rutile are
lighter heavy minerals which are distributed in a broader variety of depositional settings.
AGE OF MINERALIZATION:
Mainly Holocene (rarely Late Pleistocene) in glaciated areas; generally Tertiary or younger in
unglaciated regions. (Buried channels are commonly Tertiary to Pleistocene in age.)
HOST / ASSOCIATED ROCK TYPES:
Well-sorted, fine to coarse-grained sands; well-rounded, imbricated and clast-supported gravels.
DEPOSIT FORM:
In fluvial environments highly variable and laterally discontinuous; paystreaks typically thin (<2 m),
lens shaped and tapering in the direction of palaeoflow; usually interbedded with barren sequences.
TEXTURE / STRUCTURE:
Grain size decreases with distance from the source area. Gold typically fine-grained (<0.5 mm
diameter) and well rounded; coarser grains and nuggets rare, except in steep fluvial channel settings
where gold occurs as flattened flakes. Placer minerals associated with colluvial placer deposits are
generally coarser grained and more angular.
ORE MINERALOGY (Principal and subordinate):
Au, PGE, cassiterite (Cu, Ag and various industrial minerals and gemstones).
GANGUE MINERALOGY:
Quartz, pyrite and other sulphides in many deposits uneconomic concentrations of various heavy
minerals such as magnetite and ilmenite.
ALTERATION MINERALOGY:
Fe and Mn oxide precipitates common; Ag depleted rims of Au grains increase in thickness with age.
ORE CONTROLS:
In fluvial settings, placer concentrations occur at channel irregularities, in bedrock depressions and
below natural riffles created by fractures, joints, cleavage, faults, foliation or bedding planes that dip
steeply and are oriented perpendicular or oblique to stream flow. Coarse-grained placer
concentrations occur as lag concentrations where there is a high likelihood of sediment reworking or
flow separation such as at the base of channel scours, around gravel bars, boulders or other bedrock
irregularities, at channel confluences, in the lee of islands and downstream of sharp meanders. Basal
-42gravels over bedrock typically contain the highest placer concentrations. Fine-grained placer concentrations
occur where channel gradients abruptly decrease or stream velocities lessen, such as at sites of channel
divergence and along point bar margins. Gold in alluvial fan placers is found in debris-flow sediments and in
interstratified gravel, sand and silt. Colluvial placers are best developed on steeper slopes, generally over a
weathered surface and near primary lode sources. Economic gold concentrations in glaciofluvial deposits occur
mainly along erosional unconformities within otherwise aggradational sequences and typically derive their gold
from older placer deposits.
GENETIC MODEL:
Fluvial placers accumulate mainly along erosional unconformities overlying bedrock or resistant
sediments such as basal tills or glaciolacustrine clays. Basal gravels over bedrock typically contain
the highest placer concentrations. Overlying bedded gravel sequences generally contain less placer
minerals and reflect bar sedimentation during aggradational phases. Frequently the generation of more
economically attractive placer deposits involves multiple cycles of erosion and deposition.
ASSOCIATED DEPOSIT TYPES:
Fluvial placers commonly derive from hydrothermal vein deposits and less commonly from porphyry
and skarn deposits. PGE placers are associated with Alaskan-type ultramafics. Allochthonous fluvial
placers are far travelled and typically remote from source deposits.
EXPLORATION GUIDES
GEOCHEMICAL SIGNATURE:
Anomalous concentrations of Au, Ag, Hg, As, Cu, Fe, Mn, Ti or Cr in stream sediments. Au fineness
(relative Ag content) and trace element geochemistry (Hg, Cu) of Au particles can be used to relate
placer and lode sources.
GEOPHYSICAL SIGNATURE:
Ground penetrating radar is especially useful for delineating the geometry, structure and thickness of
deposits with low clay contents, especially fluvial terrace placers. Shallow seismic, electromagnetic,
induced polarization, resistivity and magnetometer surveys are locally useful. Geophysical logging
of drill holes with apparent conductivity, naturally occurring gamma radiation and magnetic
susceptibility tools can supplement stratigraphic data.
OTHER EXPLORATION GUIDES:
Panning and other methods of gravity sorting are used to identify concentrations of gold, magnetite,
hematite, pyrite, ilmentie, chromite, garnet, zircon, rutile and other heavy minerals. Many placer gold
paystreaks overlie clay beds or dense tills and in some camps these “false bottom” paystreaks are
important..
ECONOMIC FACTORS
GRADE AND TONNAGE:
Deposits are typically high tonnage (0.1 to 100 Mt) but low grade (0.05-0.25 g/t Au, 50-200 g/t Sn).
Placer concentrations are highly variable both within and between individual deposits.
ECONOMIC LIMITATIONS:
The main economic to mining surficial placer deposits are typically low grades and most deposits
occur below the water table. Environmental considerations are also an important limiting factor as
these deposits often occur near, or within modern stream courses.
-43IMPORTANCE:
Placer gold deposits account for more than two-thirds of the world’s gold reserves and about 25% of
known local production in British Columbia. Recorded placer production has represented 3.5% of
B.C.’s total gold production is the last twenty years. Prior to 1950, it was approximately 160,000 kg.
Actual production in British Columbia was significantly larger. Placer mining continues to be an
important industry in the province with annual average expenditures of more than $30 million over
a survey period from 1981 to 1986. Shallow alluvial placers also account for a large part of world tin
(mainly from SE Asia and Brazil) and diamond (Africa) production.
Levson V.M., in:
Lefebure, D.V. and Ray, G.E. ed.; 1995, pp. 21-23.
5.0 EXPLORATION
5.1 Procedures and Parameters of the Current (2014) Exploration Program
The 2014 refractive seismic survey grid comprised 8 lines with a total length of 4.775 km (2.913 mi)
run east-west along U.T.M. grid lines and spaced 100 m (328 ft) apart. An access road runs along both the
eastern and western slopes of the valley. Grid lines were run from road to road. The grid covers a generally
rectangular area of approximately 224 ha (553.28 A) in the southern part of the (no name) 514135 placer claim
(Figure 3).
In Appendix ‘B’ of this report, D.g. Mark (2014) described the instrumentation and field procedure
of the current (2014) seismic survey as follows:
INSTRUMENTATION
The instrumentation consisted of a Geode manufactured by Geometrics of San Jose,
California, coupled with a laptop computer. This system was set up for refraction surveying 24
channels. Two 90-metre cables were used , as well as 8-cycle/sec marsh geophones manufactured by
Mark Products of Houston, Texas.
The blasting was done with a blaster manufactured by Bison Instruments.
FIELD PROCEDURE
The ‘two-way, in-line shot’ seismic method was used for all seismic spreads. The technique
consists of laying out 24 geophones in a straight line and recording arrival times from seven different
shots. ... The shots along the spread provided the layer depths and velocity variations of the layers ...
The two off-end shots provided first arrival signals from the basement bedrock (or the basal layer) so
that the refractions received from the other shot points could be correlated and assigned a correct layer
number.
-44The geophone spacing used was five and ten metres for a spread length of 190 metres. The
total number of spreads was 29 which were done along 8 lines, each consisting of 3 or 4 spreads ...
Geophones were planted using a carpenter’s drill with a masonry bit in order to drill into frozen
ground ...
Terrain along each of the lines was surveyed in by hand-held clinometer and by Garmin 62
GPS units.
Mark D.G.; 2014 (Appendix ‘B’): pp. 1-2.
A complete report of that work by D.G. Mark et al. of Geotronics Consulting Inc. Forms Appendix
‘B’ of this report.
5.2 Results and Interpretation of the Current (2014) Exploration Program
D.G. Mark (2014) (Appendix ‘B’) presented his conclusions regarding the data from the January to
March, 2014 seismic survey as follow:
The number of seismic velocity layers occurring on the project site is three, with the third
layer being bedrock. The first layer has a velocity of 1,000 m/sec (3,280.8 ft/sec) that is a glacial till,
sand, or gravel. The middle layer is a very hard and compact, probably water-saturated, boulder till.
Velocity slow zones within the bedrock occur on each of the seismic lines. Velocity slow
zones are indicative of faults, shear zones or buried creek channels ...
Mark, David G.;2014: Appendix ‘B’: pp. 3-4.
The author summarizes the stratigraphy in the current (2014) survey area from top to bottom as follows
(Section 3.4.2, this report): 1. Grey Sangamon and Wisconsin-age (350,000 to 10,000 years old) gravel, 2. Red
late Illanoian-age (about 350,000 years old) gravel, 3. Blue, boulder-clay till deposited at the base of an
Illanoian-age (390,000 to 350,000 year-old) glacier, 4. A conglomerate “till” which may be a combination of
early Pleistocene and pre-Pleistocene-age material (10 million to 350,000 years old?) that was not scraped off
during the Illanoian-age glaciation, and 5. Precambrian-age shistose bedrock.
Data from the current (2014) seismic survey facilitated the identification of two distinct stratigraphic
boundaries that separated three identifiable layers. The lower boundary is interpreted by the author to be a
manifestation of the bedrock surface. The upper layer is interpreted to be the upper surface of the blue boulderclay till. The boundary between the conglomerate “till and the blue boulder-clay till, and that between the red
and grey gravel units were not readily identifiable from the seismic data.
Fortunately, the two main target areas for placer gold on the property are the red channel gravel that
-45lies atop the blue till and in the conglomerate “till” overlying the bedrock surface. Both of these “pay zones”
are located directly above a boundary identified by the seismic survey.
The author interpreted the refraction cross-sections of D.G. Mark (2014) (Appendix ‘B’, this report)
to produce maps of channel development at the bedrock surface (Figure 8) and in the red channel gravels atop
the blue boulder-clay till (Figure 9). During the current (2014) seismic survey, elevation readings were
obtained by Garmin 62 series GPS units. Within the confines of a steep valley such as the Wild Horse with
less than the optimal number of satellites visible in the sky, those units can determine elevations within a few
metres. The elevations of some of the seismic sections were adjusted to produce maps (Figures 8 and 9) that
depicted channel elevations such that water would have flowed consistently down hill. Elevations within
sections were not adjusted.
5.2.1 Bedrock Surface
Topography of and channel geomorphology on the bedrock surface is displayed in Figure 8. The
topography of the bedrock surface indicates that since the Late Tertiary Period, the valley formed in a steepsided, graben-like feature, formed along north-northeasterly trending sub-vertical faults. Faults were inferred
from disruptions in the bedrock surface profile along the sections. This is consistent with some of the structural
interpretation of Trigve Höy (1979 and 1984) (Figures 5 and 6).
Seismic refraction boundaries occur where a layer of comparatively slow signal speed overlies one
with a more rapid signal speed. Since both weathered bedrock and channel gravel have slower signal speeds
than underlying fresh bedrock a seismic boundary would tend to reflect the top of unweathered bedrock and
not necessarily the bedrock surface. Both channels and areas of deeply weathered bedrock would appear as
depressions in a seismic boundary along a bedrock surface.
In the current (2014) survey area, four depressions occur in the bedrock boundary that can not be
reasonably interpreted as channels on bedrock. They do not persist across more than one section, they are
located to high up the flank of the valley to be significant channels, and they are all associated with interpreted
faults. They occur on lines 3,400, 3,500, and 4,000 (Figure 8). They are interpreted to be the result of deep
-46weathering on fractures and veins. These areas are prospective for eluvial placer deposits where sulphide
minerals in quartz veins have weathered out and left their contained gold behind as free gold. Aprons of placer
gold may extend along the bedrock surface down-hill from these areas to the valley bottom.
River channels on bedrock were identified by the author in the seismic sections. They can be seen as
significant bedrock depressions near or at the valley bottom that can be traced across the survey area. The
sinuosity of these palaeo-channels can be assumed in most of these profiles by the location of the thalweg (the
deepest part of the channel) across the profile.
Two major channels on bedrock were identified: a shallow, narrow, early channel; and a wide, deep
late channel (Figure 8). The author suspects that the early channel is Miocene in age and developed from 23.8
to 5.3 million years ago during a period of deep sub-tropical weathering. During that time, the local climate
was warmer and dryer than it is presently. The author believes that the later bedrock channel formed during
the Pliocene epoch (5.3 to 1.6 million years ago) when the local climate became cooler and wetter. Increased
local rainfall would account for the greater size of the later bedrock channel.
Probably the remnants of more, variously developed channels cover the whole of the valley bottom.
Their existence is supported by the gold found on the bedrock surface during 2010 production in the 2010 pit
in an area where no specific bedrock channel is identifiable along the seismic bedrock surface boundary. The
author opines that the whole bedrock surface in the valley bottom is prospective for placer gold.
The bedrock surface on the (no name) 514135 claim has been mined only in the 2010 pit and in a few
places along the current course of Wild Horse River. Since placer mining is forbidden within 30 m (91.4 ft)
of the “top of bank” along the current course of the river, the only minable part of the bedrock surface that has
been mined is in the 2010 pit. More than 95% of the minable area on the bedrock surface remains untouched
in the 2014 seismic survey area.
5.2.2 Red Gravel Channels
The author is of the opinion that the upper refractive boundary identified by the current (2014) seismic
survey coincides with the top of the blue boulder-clay till. The red channel gravels which sat directly atop that
till were the main target of previous hydraulic mining in the main hydraulic pit. Depressions in the upper
-47refractive boundary as displayed in Mark’s (22014) sections (Appendix ‘B’) near or at the valley bottom are
interpreted by the author to be manifestations of red gravel channels that can be traced throughout the survey
area (Figure 9).
These channels are presumed to have formed during uplift at the close of Illanoian-age glaciation about
350,000 years ago (Sections 3.1 and 3.2.1, Table 6, Figure 7, this report).
Remnants of two early channels are located on the lower western valley slope (Figure 9). The one
located on Line 3,600 is located about 37 m (121.4 ft) above the level of the latest red gravel channel along the
same seismic line. As much as 37 m (121.4 ft) of till may have been excavated from the central part of the
valley along Line 3,600 during red gravel channel development.
Although the author identified two major red gravel channels from the seismic sections, he is of the
opinion that the whole upper surface of the blue boulder-clay till was covered with a braided channel system
and that the whole top surface of the blue boulder-clay till near or on the valley bottom is variously prospective
for placer gold.
The top of the blue boulder-clay till and the overlying red gravel channel sediments have been lost to
subsequent erosion along the current course of Wild Horse River from Line 3,600 southward to the southern
boundary of the 2014 grid-area. The red gravel channel deposits have been mined out throughout the northern
part of the main hydraulic pit. Since placer mining is forbidden within 30 m (91.4 ft) of the “top of bank” along
the current course of the river, about 75% of the minable area on the surface of the blue boulder-clay till
remains untouched in the 2014 seismic survey area.
5.3 Duration, Area, Location, Management, and Cost of the Current (2014) Exploration Program
The author examined the Wile Horse River property on December 5, 2013 and on January 23, 2014.
Field work by Geotronics Consulting Inc. was conducted at the following times: January 18, to February 7,
2014, and from March 10 to 15, 2014. Research, data compilation, and reporting was conducted intermittently
from November 26, 2013 until the date of this report. A total of 201.75 man-days (201.75 days X 8 = 1,614
man-hours) of work was conducted during the current (2014) exploration program.
-48Table 7
Duration of the 2014 Exploration Program
Name
Property
exam.
Seismic
Survey
Tspt.+
weather
days
Research,
Data
processing+
reporting
Total
man-days
1.50
18.00
8.00
13.75
41.25
Christopher Mark, B.Sc.
Vancouver, B.C.
14.00
4.00
42.50
60.50
Steve Lanthem
Fort Steele, B.C.
18.00
Keenan Kerr
Merritt, B.C.
18.00
Jason Robert
Kimberly, B.C.
8.00
Clay Munro
Merritt, B.C
6.00
4.00
10.00
Andy Lukacs
Merritt, B.C.
4.00
2.00
6.00
David Mark, P.Geo.
Surrey, B.C.
John Ostler; M.Sc., P.Geo.
West Vancouver, B.C.
2.00
Total man-days
3.50
86.00
18.00
6.00
24.00
8.00
3.50
28.50
34.00
27.50
84.75
201.75
Table 8
Area and Location of the 2014 Exploration Program
Activity
Program and grid design
Seismic survey
Area in hectares
(Acres)
Name
Claims
Record No.
488.91
(1,208.34)
Placer Lease
Placer Claim
(no name)
368385
514135
224.0
(553.28)
Placer Claim
(no name)
514135
-49Table 9
Contractors for the 2014 Exploration Program
Contractor
Activities
Geotronics Consulting Inc.
6204 125th Street
surrey, British Columbia, V3X 2E1
(604)596-4564
seismic survey,
reporting
Cassiar East Yukon Expediting Ltd.
1015 Clyde Avenue
West Vancouver, British Columbia, V7T 1E3
(604) 926-8454
Research program design and reporting
Western Technical Supply Company Limited
845 West 15th Street
West Vancouver, British Columbia, V7P1M5
(604)986-2391
copy of large scale maps and scale
changes
Scans of figures, photocopy
Arcprint and Imaging
4305 Dawson Street
Burnaby, British Columbia
V5C 4B4 (604) 293-0029
Table 10
Cost of the 2014 Exploration Program
Item
Research, Program Design and Reporting
(Cassiar East Yukon Exp. Ltd.)
Wages:
John Ostler; M.Sc., P.Geo., 34 days @ $600/day. . . . . . . . . . . . . . . . . .
Transport:
Truck rentals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Gasoline and diesel fuel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Camp and Crew Costs:
Hotel: 4 man-nights @ $125.39 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Reporting Costs and Office Expenses:
Topo maps . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Photocopy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Scale changes, scans, mylar and blackline copies of maps . . . . . . . . . .
Disks, memory sticks, report covers . . . . . . . . . . . . . . . . . . . . . . . . . . .
Postage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$ 20,400.00
$
20,400.00
$
841.40
$
486.09
$ 1,327.49
$
1,327.49
$
501.56
$
501.56
$
$
$
$
$
$
98.44
81.07
228.09
21.00
3.75
432.35
$
432.35
Cost of the Current (2014) Research, Program Design and Reporting
$ 22,661.40
G.S.T.: 0.05 X $22,661.40 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$ 1,133.07
Total Cost of the 2014 Research, Program Design and Reporting . . . .
$ 23,794.47
Continued on Next Page
-50Table 10
Cost of the 2014 Exploration Program Continued
Item
Seismic survey (Geotronics Consulting Inc.)
Wages:
Crew in the field (undifferentiated) :
During mobilization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Seismic survey: 4-man crew, 4 days @ $3,000/day . . . . . . . . . . . . . . . .
5-man crew, 10 days @ $3,350/day . . . . . . . . . . . . . . .
6-man crew, 2 days @ $3,800/day . . . . . . . . . . . . . . . .
Data reduction and reporting:
David Mark, P.Geo.; 13.75 days @ $400/day . . . . . . . . . . . . . . . . . . . .
Christopher Mark, B.Sc.; 42.5 days @ $400/day. . . . . . . . . . . . . . . . . .
Transport and Camp Costs:
Truck rental and gasoline . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Room and board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Survey Costs:
Explosives; 8 cases dynamite @ $200/case . . . . . . . . . . . . . . . . . . . . . .
385 Seismocaps @ $6/cap . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Explosive delivery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Magazine rental including spot GPS checks and liability insurance . . .
$
$
$
$
4,500.00
12,000.00
33,500.00
7,600.00
$ 5,500.00
$ 17,000.00
$ 80,100.00
$ 80,100.00
$
$
$
1,200.00
1,300.00
2,500.00
$
2,500.00
$
$
$
$
$
1,600.00
2,400.00
650.00
3,000.00
7,650.00
$
7,650.00
Cost of the Current (2014) Seismic Survey . . . . . . . . . . . . . . . . . . . .
$ 90,250.00
G.S.T. 0.05 X $90.250.00 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$
Total Cost of the Current (2014) Seismic survey. . . . . . . . . . . . . . . .
$ 94,762.50
4,512.50
Summary:
Cost of the Current (2014) Research, Program Design and Reporting
(Cassiar East Yukon Exp. Ltd.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$ 22,661.40
Cost of the Current (2014) Seismic survey
(Geotronics Consulting Inc.). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$ 90,250.00
$ 112,911.40
Total G.S.T. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$ 5,645.57
Total Cost of the Current (2014) Exploration . . . . . . . . . . . . . . . . . .
$118,556.97
-516.0 CONCLUSIONS AND RECOMMENDATIONS
6.1 Conclusions
The two main target areas for alluvial placer gold on the property are the red channel gravel that lies
atop the blue boulder-clay till and in the conglomerate “till” overlying the bedrock surface. Both of these “pay
zones” are located directly above a boundary identified by the current (2014) seismic survey.
Two major channels on bedrock were identified from the current (2014) seismic survey data: a
shallow, narrow, early channel; and a wide, deep late channel. The early channel may be Miocene in age; the
later bedrock channel may have formed during the Pliocene epoch. The whole bedrock surface across the Wild
Horse River valley bottom is variously prospective for alluvial placer gold.
The bedrock surface on the (no name) 514135 claim has been mined only in the 2010 pit and in a few
places along the current course of Wild Horse River. Since placer mining is forbidden within 30 m (91.4 ft)
of the top of bank along the current course of the river, the only minable part of the bedrock surface that has
been mined is in the 2010 pit. More than 95% of the minable area on the bedrock surface remains untouched
in the 2014 seismic survey area.
Although the author identified two major red gravel channels from the seismic sections, he is of the
opinion that the whole upper surface of the blue boulder-clay till was covered with a braided channel system
and that the whole top surface of the blue boulder-clay till near or on the valley bottom is variously prospective
for placer gold.
The top of the blue boulder-clay till and the overlying red gravel channel sediments have been lost to
subsequent erosion along the current course of Wild Horse River from Line 3,600 southward to the southern
boundary of the 2014 grid-area. The red gravel channel deposits have been mined out throughout the northern
part of the main hydraulic pit. About 75% of the minable area on the surface of the blue boulder-clay till
remains untouched in the 2014 seismic survey area.
-526.2 Recommendations
Generally in British Columbia, placer mining is prohibited within 30 m (91.4 ft) of the “top of bank”
of a stream. The area covered by the valley on the west-northwest side of the “top of bank” of Wild Horse
River is more extensive than that on the east-southeast side of it. Sediments have already been excavated to
the bedrock surface in the 2010 pit located at the down-stream end of the west-northwestern flank of the valley
bottom in the southern part of the (no name) 514135 placer claim. A mining permit exists for that area.
It is recommended that mining commence in the 2010 pit and progress northward along the westnorthwestern flank of Wild Horse River. Once the west-northwestern side of the river has been mined out,
gravel on the east-southeastern side of the river should be exploited.
Sediments should be removed in two levels to progressively uncover the red channel gravels and the
conglomerate “till on the bedrock surface. Both the red channel gravels and those along the bedrock surface
could be worked concurrently if a bench on the red channel gravels is developed ahead of excavation to the
bedrock surface.
Although most of the upper grey gravel contains insufficient gold to be processed profitably, there are
several richer gold-bearing layers within that unit. Coarse gravel layers within the grey gravel should be tested
for gold content before a decision is made to send them directly to the waste dump. The top 1 m (3.28 ft) of
the blue boulder-clay till should be processed with the overlying red channel gravel. The basal 1 m (3.28 ft)
of the blue till should be processed with the material removed from the bedrock surface. It is assumed that the
rest of the blue boulder-clay till contains uneconomic quantities of placer gold and should not be processed.
The blue boulder-clay till was too hard for 19th and early 20th-century hydraulic miners to break apart
and sluice. Although a modern hydraulic excavator should have little trouble handling it, a trommel will be
required in the processing plant to break it apart. Design details of mining and processing operations are
beyond the scope of this report.
-537.0 REFERENCES
Boyle, R.W.; 1979: The Geochemistry of Gold and its Deposits ...; Geol. Surv. Canada, Bull. 280,
pp. 333-361
Carmichael, Herbert and Moore, C.W.; 1930: Placer Mining in British Columbia ...; B.C. Dept. Mines,
Bull. 1930-2, pp. 58-59.
Douglas, R.J.W.,Gabrielse, H.,Wheeler, J.O., Stott, D.F. and Belyea, H.R.
in:
Douglas, R.J.W. et al.; 1970: Geology and Economic Minerals of Canada;
Dept. Energy, Mines and Res., Economic Geology Rept. No.1, pp. 371-378.
Galloway, J.D.; 1933: Placer-mining in British Columbia; B.C. Dept. Mines, Bull. 1933-1, pp. 44-45.
Holland, S.S.; 1950: Placer Gold Production in British Columbia; B.C. Dept. Mines, Bull. 28, pp. 33-34.
Höy, Trigve; 1984: Geology of the Cranbrook Sheet ans Sullivan Mine Area;
B.C. Min. Energy Mines + Petr. Res., Prelim. Map 54.
Höy, Trigve; 1979: Geology of the Estella-Kootenay King Area, Hughes Range,
Southeastern British Columbia, B.C. Min. Energy Mines + Petr. Res., Prelim. Map 36.
Höy, Trigve and Carter Ginette; 1988: Geology of the Fernie W1/2 Map Sheet (and part of Nelson E1/2);
B.C. Min. Energy Mines, O.F. 1988-14, 3 map sheets.
Levson, Victor M.: Surficial Placers
in:
Lefebure, D.V. and Ray G.E. ed.; 1995: Selected British Columbia Mineral Deposit Profiles,
Vol. 1 - Metallics and Coal; B.C. Min. Employment and Investment,
Geol. Surv. O.F. 1995-20, pp. 21-23.
Kostiuk, Brian; 2009: Air Rotary Chip Sampling, Micrex 1 Placer Claim; B.C. Min. Energy, Mines and
Petr. Res., As. Rept. No. 31,208; 8 p. inc. 5 fig., Appendices.
Leech, G.B.; 1960: Geology: Fernie Map-area (West Half), Kootenay District, British Columbia;
Geol. Surv. Canada, Map 11-1960.
Leech, G.B. 1958: Fernie Map-area (West Half), British Columbia, 82 G W1/2; Geol. Surv. Canada,
Pap. 58-10, 40 p., Map 20-1958.
Mark, D.G.; 2014: Geophysical Report on a Seismic Refraction Survey on the Wild Horse River Placer
Gold Property Fort Steele Area Fort Steele Mining District, BC; Appendix ‘B’ of this
Report., 4 p., 1 fig., 8 sections.
Ransom, P.W.; 2009: Untitled report regarding Placer Claim 514135 to Great Eagle Resources Ltd.; 8 p., 2 figs,
Appendix.
Robinson, M.C.; 1965: Geological Report Lynn Group of Claims ...; B.C. Min. Energy, Mines and Petr. Res.,
As. Rept. No. 822; 15 p. inc. 1 fig., 3 maps.
-54Rutter, N.W.; 1984: Pleistocene History of the Western Canadian Ice-free Corridor; Geol Surv. Canada,
Pap. 84-10, pp.49-56.
B.C. Minister of Mines, Annual Reports; Placer References:
for the year
1874, p. 14.
1875, p. 614.
1876, p. 424.
1880, p. 429.
1881, p. 399.
1882, p. 362.
1883, table + p. 413.
1884, table + p. 423.
1885, table + p. 498.
1886, p. 205.
1887, p. 270.
1888, pp. 307-308, 328.
1889, table + p. 285.
1890, table + pp. 371.
1891, table + p. 567.
1891, table + p. 567.
1892, table + pp. 534, 535.
1893, table + pp. 1063-1064.
1894, table + pp. 746-748.
1895, pp. 671-672, 674. 1896, pp. 523-524, 533. 1898, pp. 1025-1026.
1899, pp. 611, 659.
1900, p. 798.
1901, p. 1005.
1902, p. H131.
1903, pp. H93-H94.
1904, p. G109.
1906, p. H132.
1907, p. L85.
1915, p. K114.
1918, p. K150.
1919, pp. N118-N119.
1920, p. N116.
1921, p. G166.
1922, pp. N188-N189.
1923, p. A207.
1924, p. B187.
1925, p. A231.
1926, p. A246.
1927, p. C267.
1933, p. A205.
1935, p. E36.
1953, p. A178.
1957, p. 75.
1958, p. 82.
1963, p. 135.
1968, p. 294.
B.C. Minister of Mines, Annual Reports; Hard Rock References:
for the year
1889, p. 308.
1896, pp. 523.
1925, p. A228.
1952, pp. A198-199.
1890, p. 375.
1899, p. 659.
1929, pp. C295-C296.
1953, p. A150.
Exploration in B.C.
1975, pp. E41-E42.
John Ostler: M.Sc., P.Geo.,
Consulting Geologist
West Vancouver, British Columbia,
Effective April 30, 2014
1891, p. 571.
1900, p. 797.
1930, p. A240.
1957, p. 63.
1891, p. 570.
1914, p. K238.
1951, p. A186.
1958, p. 52.
APPENDIX ‘A’
CERTIFICATE of the QUALIFIED PERSON
I, John Ostler, of 1015 Clyde Avenue in the City of West Vancouver, Province of British Columbia do hereby certify:
That I am a consulting geologist with business address at 1015 Clyde Avenue, West Vancouver, British Columbia;
That I am a graduate of the University of Guelph, Ontario where I obtained my Bachelor of Arts degree in Geography (Geomorphology)
and Geology in 1973, that I am a graduate of Carleton University of Ottawa, Ontario where I obtained my Master of Science degree in
Geology in 1977, that I am registered as a Professional Geoscientist with the Association of Professional Engineers and Geoscientists of
British Columbia, and that I have been engaged in the study and practice of the geological profession for more than 40 years;
That I examined the Wild Horse River property on December 5, 2013 and on January 23, 2014;
That I am responsible for all of this report entitled “Seismic Exploration of Placer Gold on the Wild Horse River Property” dated effective
April 30, 2014;
That I am independent of the Wild Horse River property and of Merklin Resources Inc. as is defined in Part 1.5 of National Instrument
43-101; and
That as of the date of this certificate, to the best of my knowledge, information, and belief, this report entitled “Seismic Exploration of
Placer Gold on the Wild Horse River Property” dated effective April 30, 2014 contains all scientific and technical information that is
required to be disclosed to make said report not misleading.
John Ostler; M.Sc., P.Geo.
Consulting Geologist
West Vancouver, British Columbia
Effective April 30, 2014
GEOPHYSICAL REPORT
ON A
SEISMIC REFRACTION SURVEY
ON THE
WILD HORSE RIVER PLACER GOLD PROPERTY
FORT STEELE AREA
FORT STEELE MINING DISTRICT, BC
PROPERTY LOCATION
22 km NE of Cranbrook, BC
49°40.5’N Latitude, 115° 34.5’W Longitude
N.T.S. – 82G/12
WRITTEN FOR
WILD HORSE INVESTMENT GROUP
1104 Hillside Drive
West Vancouver, British Columbia, V7S 2E9
WRITTEN BY
David G. Mark, P.Geo.,
GEOTRONICS CONSULTING INC.
6204-125th Street
Surrey, British Columbia V3X 2E1
DATED
April 28, 2014
TABLE OF CONTENTS
INTRODUCTION AND GENERAL REMARKS ______________________________________________ 1
INSTRUMENTATION _______________________________________________________________ 1
FIELD PROCEDURE _________________________________________________________________ 2
COMPUTING METHOD _____________________________________________________________ 3
DISCUSSION OF RESULTS ___________________________________________________________ 4
GEOPHYSICIST’S CERTIFICATE ________________________________________________ 5
LIST OF ILLUSTRATIONS
(AT END OF REPORT)
Maps
Map #
SURVEY PLAN
GP-1
SEISMIC REFRACTION SURVEY PROFILES:
Profile L3300N
GP-2
Profile L3400N
GP-3
Profile L3500N
GP-4
Profile L3600N
GP-5
Profile L3700N
GP-6
Profile L3800N
GP-7
Profile L3900N
GP-8
Profile L4000N
GP-9
GEOPHYSICAL REPORT
ON A
SEISMIC REFRACTION SURVEY
ON THE
WILD HORSE RIVER PLACER GOLD PROPERTY
BOULDER CREEK, FORT STEELE AREA
FORT STEELE MD, BC
INTRODUCTION AND GENERAL REMARKS
This report discusses the methodology and results of seismic refraction surveying carried
out along eight lines within the Wild Horse River Placer Gold Property, placer claim tenure
#514135, which occurs on Wild Horse River between tributaries Boulder Creek and Fisher
Creek.
The seismic work was carried out for the purpose of locating a buried Tertiary creek
channels within the bedrock and within the overburden that in this area carry placer gold.
The Wild Horse River area is well known for numerous placer gold deposits occurring within
buried channels, both within surficial overburden and bedrock.
The work was carried out from January 18th to March 15th, 2014 by a crew varying in size
from 4 to 6 men, one being the writer who also was the supervisor of the seismic refraction
surveying.
The work was done at the request of Brian Hauff, of Wild Horse Syndicate, which hold an
option on the property with Merklin Resources Inc. in developing the property, and under
the direction of John Ostler, P.Geo, who is the consulting geologist to Wild Horse Syndicate.
INSTRUMENTATION
The instrumentation consisted of a Geode manufactured by Geometrics of San Jose,
California, coupled with a laptop computer which was used to record and view the seismic
1|Page
data. This system was set up for refraction surveying using 24-channels. Two 90-metre
cables were used, as well as 8 cycle/sec marsh geophones, manufactured by Mark Products
of Houston, Texas.
The detonating was done with a blaster manufactured by Bison Instruments which was
interconnected with the Geode instrument.
FIELD PROCEDURE
The ‘two-way, in-line shot’ seismic method was used for all seismic spreads. The technique
consists of laying out 24 geophones in a straight line and recording arrival times from seven
different shots as follows
1. One fired at each end of the spread, for a total of two shots.
2. One fired at each 1/4, 1/2, and 3/4 of the spread length, for a total of three shots.
These shots provided the layer depths and velocity variations, and also gave
additional information about the deeper layers.
3. One fired at a distance of up to half the spread length off each end of the spread for
a total of two shots. These two off-end shots provided first arrivals from the
basement bedrock (or basal layer) so that the refractions received from the other
shot points could be correlated and assigned the correct layer number.
The geophone spacing used was five and ten metres for a spread length of 190 metres. The
total number of spreads was 29 for a total survey length of 5,510 metres, which were done
along 8 lines. The 3 southernmost lines consisted of 3 spreads for a total line length of 570
metres, and the remaining 5 northernmost lines consisted of 4 spreads for a total line
length of 760 metres. The lines were located at a spacing of 100 metres in a UTM due east
direction. The 8 lines were labelled using the last four digits of the UTM northing for each
line, that is, from 3300N to 4000N, inclusively, which are UTM northings 5503300 to
5504000, inclusively. The geophones were planted using a carpenter’s drill with a masonry
bit in order to drill into the frozen ground.
The lines were not cut. This did not give much difficulty since most of the area was cleared
by logging or placer mining. There were some areas, however, that progress was slowed by
heavy brush or downed trees. Progress was also slowed by icy conditions which
necessitated the use of crampons.
The terrain along each of the lines was surveyed in by a hand-held Suunto clinometer, and
the location by a Garmin GPS unit, model 62S.
The shots ranged in size from 0.2 to 1.1 kg, that is, one to six sticks, of 1x8 Unimax
manufactured by Dyno Nobel. They were detonated by zero-delay Electric Super SP
detonators also manufactured by Dyno Nobel. At first, it was attempted to plant the
2|Page
charges, but the ground was deeply frozen and extremely hard to penetrate. Therefore,
the shots were placed on top of the ground using heavier charges. The one advantage was
that there was no fly rock.
th
th
The work was done during two periods, firstly from January 18 to February 7 , 2014. The
temperatures dropped to the minus 30’s C which was considered too cold for the
equipment to work properly. The work was then finished from March 10th to 15th, 2014.
In spite of the charges being on surface instead of being buried, the quality of the data is
very good to excellent. Some arrival times were lost due to geophones in close proximity to
Wild Horse River causing seismic noise. At times there was also noise caused by wind but
usually the wind was gusty and thus the shots were fired during the quieter periods.
COMPUTING METHOD
All seismic data were analyzed using SeisImager software created by Geometrics. The
seismic data was first analyzed to determine the first breaks (the traveltime between
bedrock and sensor) of the energy waveform. The first breaks were then used to
determine the location of subsurface layers as well as the velocity of the waveform within
those layers.
This data was then used to create a initial model via time-term inversion method. The timeterm techinque uses a combination of linear least squares and delay time analysis to invert the
first breaks to create velocity sections. These velocity sections are not particularly refined,
but provide a model for further processing. Thus the model supplied by time-term is run
through a tomographic inversion. Tomographic takes the initial model and iteratively traces
rays to achieve calculated traveltimes that match the observed traveltimes. The tomographic
inversion provides the final velocity section which is then used for analysis of relevant
geological structures.
The 8 seismic-interpreted profiles were plotted on maps #GP-2 to #GP-9, respectively. The
location of the seismic line is shown on the survey location plan map, #GP-1.
3|Page
DISCUSSION OF RESULTS
A suggested classification of the velocities is as follows:
Layer #
Velocity
Suggested Material
1
1000
Overburden: surficial glacial till, sand, or gravel.
2
2500
Overburden: very compact glacial till, sand, or gravel and/or
boulder till.
3
2,600 - 6500
Bedrock:
compact.
3
1,500 – 2,500
Steep-sided in-filled channels and/or faults within bedrock
glacial till, sand or gravel; water-saturated, very
Horizontal changes in overburden velocity may be caused by a variable water content, type
of material and/or compactness of the material. Therefore, arbitrary boundaries within the
overburden should be treated as physical changes and not necessarily as geological
boundaries.
Bedrock velocities can be much lower than is indicated within the table if the rock is highly
fractured or highly altered.
The accuracy of the velocity measurement is dependent on (1) the bedrock topography,
especially around areas of sharp changes such as buried creek channels, and (2) the
number of points defining the velocity. Therefore some of the bedrock velocities may be
higher or lower than is shown.
The number of seismic velocity layers occurring on the project site is three, with the third
layer being bedrock. The first layer has a velocity of 1,000 m/sec and is a surficial
overburden that is a glacial till, sand or gravel. The middle layer is a very hard and compact,
probably water-saturated, boulder till.
Velocity slow zones within the bedrock occur on each of the seismic lines. Velocity slow
zones are indicative of faults, shear zones or buried creek channels. Often the slow zones
are reflecting both faults and buried creek channels since creeks will occur along zones of
weaknesses within the bedrock such as faults. Considering the known occurrence of gold
on the property, it is therefore quite probable that the slow zones are reflecting a buried
placer gold creek channel. In support of this is the fact that the velocity of the slow zone is
similar to the overlying middle layer that is interpreted to be a very compact saturated
glacial till, sand, or gravel.
The depth to the bottom of a buried creek channel that is reflected as a velocity slow zone
cannot be determined since its sides are greater than 45°.
4|Page
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603000
0
17
602000
0
18
1012556
1012556
1012556
d
er
1600
1400
160
0
5505000
1100
Creek
1017113
1017113
1017113
1012557
1012557
1012557
1012557
i
0
Horse
15
1018430
1018430
1018430
1018430
170
00
R
ve
r
1200
1500
1600
5504000
0N
Line 400
0N
Line 390
0N
Line 380
0N
Line 370
0N
Line 360
0N
Line 350
0N
Line 340
0N
Line 330
5503000
13
1400
00
W i ld
514135
514135
514135
514135
365588
365588
365588
365588
514135
939474
939474
939474
1100
1023229
1023229
1023229
1023229
836171
836171
836171
836171
Fisher
Cr
ee
663083
663083
663083
663083
k
709262
709262
709262
709262
5502000
368385
368385
368385
368385
WILD HORSE INVESTMENT GROUP
590714
590714
590714
590714
WILD
HORSE PROPERTY
FORT STEELE AREA, FORT STEELE M.D., BC
00
1004002
1004002
1004002
10
CLAIM MAP
Geotronics
DRAWN BY:
CAM
JOB NO.:
14-02
NTS:
82G/12
DATE:
1
937925
937925
937925
937925
Geotronics
1015415
1015415
1015415 Consulting Inc
1015415
Surrey B.C.
showing grid
APR ‘14
FIG NO.:
GP-1
Road 81m
189m Road
1064
1046
1054
1036
Wild Horse River
1044
1026
1034
1016
1024
1006
1014
996
2500
1004
986
S
IA
L
G
V
RA
1000
EL
IC
RF
SU
2800
3200
994
976
BOULDER CLAY?
984
966
S/Z
S/Z
5200
3800
BEDROCK
974
956
Elevation (m)
4500
S/Z
3500
4500
964
946
954
936
944
926
934
916
924
906
914
896
904
886
894
876
884
866
0
10
20
30
40
50
60
70
80
90
100 110
120 130 140 150 160 170 180 190 200 210 220 230 240 250 260 270 280 290 300 310 320 330 340 350 360 370 380 390 400 410 420 430 440 450 460 470 480 490 500 510 520 530 540 550 560 570 580 590
Distance (m)
602918
602960
602993
603042
603092
603244
603139
603287
603365
603332
603409
603440
603190
S/Z -
Slow Zone - indicative of in-filled bedrock channel and/or fault
WILD HORSE INVESTMENT GROUP
WILD HORSE RIVER PROPERTY
FORT STEELE AREA, FORT STEELE MD, BC
SEISMIC REFRACTION SURVEY
L3300N
(UTM Northing 5503300)
Geotronics
Geotronics Consulting Inc
Surrey B.C.
DRAWN BY:
CAM
JOB NO.:
14-02
NTS:
82G/12
DATE:
MAR ‘14
FIG NO.:
GP-2
214m Road
Road 42m
1061
1045
1051
1035
Wild Horse River
1041
1025
1031
1015
1021
1005
1011
995
3300
1001
985
S
AVEL
SU
AL GR
RFICI
1000
DER
BOUL
?
CLAY 2500
3100
S/Z
991
975
S/Z ?
2000
2500
4000
3400
981
965
3700
971
955
BEDROCK
3400
Elevation (m)
961
945
S/Z
935
951
941
925
931
915
921
905
911
895
901
885
891
875
865
881
0
10
602976
20
30
40
50
60
70
80
603019
90
100 110
120 130 140 150 160 170 180 190 200 210 220 230 240 250 260 270 280 290 300 310 320 330 340 350 360 370 380 390 400 410 420 430 440 450 460 470 480 490 500 510 520 530 540 550 560 570
603100
603055
603147
603193
Distance (m)
603293
603334
603378
603432
603477
603236
S/Z
-
Slow Zone - indicative of in-filled bedrock channel and/or fault
WILD HORSE INVESTMENT GROUP
WILD HORSE RIVER PROPERTY
FORT STEELE AREA, FORT STEELE MD, BC
SEISMIC REFRACTION SURVEY
L3400N
(UTM Northing 5503400)
Geotronics
Geotronics Consulting Inc
Surrey B.C.
DRAWN BY:
CAM
JOB NO.:
14-02
NTS:
82G/12
DATE:
MAR ‘14
FIG NO.:
GP-3
181m Road
Road 44m
1065
1060
1050
1055
Wild Horse River
1045
1040
1030
1035
1025
1020
1000
4200
1015
1010
1005
1000
SURFICIAL
G
S/Z
995
990
RAVELS
4200
4200
985
980
3200
S/Z ?
BOULDER CLAY?
2500
3500
975
970
BEDROCK
Elevation (m)
S/Z
3400
3900
965
960
955
950
945
940
935
930
925
920
915
910
905
900
895
890
885
880
0
10
602979
20
30
40
50
60
70
80
603030
90
100 110
120 130 140 150 160 170 180 190 200 210 220 230 240 250 260 270 280 290 300 310 320 330 340 350 360 370 380 390 400 410 420 430 440 450 460 470 480 490 500 510 520 530 540 550 560 570
603115
603069
603159
603204
Distance (m)
603293
603346
603429
603386
603477
603236
S/Z
-
Slow Zone - indicative of in-filled bedrock channel and/or fault
WILD HORSE INVESTMENT GROUP
WILD HORSE RIVER PROPERTY
FORT STEELE AREA, FORT STEELE MD, BC
SEISMIC REFRACTION SURVEY
L3500N
(UTM Northing 5503500)
Geotronics
Geotronics Consulting Inc
Surrey B.C.
DRAWN BY:
CAM
JOB NO.:
14-02
NTS:
82G/12
DATE:
MAR ‘14
FIG NO.:
GP-4
10m Road
Road 55m
1135
1125
1125
1115
1115
1105
1105
1095
1095
1085
1085
1075
4300
S/Z
1065
1055
4600
S/Z
1055
1045
SUR
1045
1035
5300
FICI
A
L GR
Wild Horse River
1075
1065
AVE
L
S
1035
1025
1025
1015
BOU
1015
1005
LDE
R CL
2700
AY?
ElevatIon (m)
1005
995
1000
5100
995
985
3000
2500
985
975
3800
3200
BEDROCK
975
965
S/Z
4600
965
955
4600
955
945
945
935
935
925
925
915
915
905
905
895
895
885
885
875
0
10
20
30
40
50
60
70
80
90
100 110
120 130 140 150 160 170 180 190 200 210 220 230 240 250 260 270 280 290 300 310 320 330 340 350 360 370 380 390 400 410 420 430 440 450 460 470 480 490 500 510 520 530 540 550 560 570 580 590 600 610 620 630 640 650 660 670 680 690
700 710 720 730
740 750 760
Distance (m)
602837
602886
602922
602965
602995
603038
603070
603109
603192
603232
603268
603309
603422
603375
603473
603131
WILD HORSE INVESTMENT GROUP
S/Z
-
Slow Zone - indicative of in-filled bedrock channel and/or fault
WILD HORSE RIVER PROPERTY
FORT STEELE AREA, FORT STEELE MD, BC
SEISMIC REFRACTION SURVEY
L3600N
(UTM Northing 5503600)
Geotronics
Geotronics Consulting Inc
Surrey B.C.
DRAWN BY:
CAM
JOB NO.:
14-02
NTS:
82G/12
DATE:
MAR ‘14
FIG NO.:
GP-5
Road
Road 28m
1125
1135
1115
1125
1105
1115
1095
1105
1085
1095
1075
1085
BOU
LDE
3900
RC
1055
1065
S/Z
1045
1055
LAY
3700
?
S/Z
1035
1045
5200
1025
1035
S UR
FIC
I
AL
2500
GR
AV
Wild Horse River
1065
1075
ELS
1015
1025
1000
1005
1015
S/Z
Elevation (m)
995
1005
3200
3800
S/Z
4000
985
995
4200
975
985
3300
4200
BEDROCK
965
975
3500
4100
955
965
945
955
935
945
925
935
915
925
905
915
895
905
895
885
885
875
0
10 20 30 40 50 60 70 80 90 100 110 120 130 140 150 160 170 180 190 200 210 220 230 240 250 260 270 280 290 300 310 320 330 340 350 360 370 380 390 400 410 420 430 440 450 460 470 480 490 500 510 520 530 540 550 560 570 580 590 600 610 620 630 640 650 660 670 680 690 700 710 720 730 740 750 760
602853
602885
602929
602977
603025
603073
603108
603161
Distance (m)
603237
603284
603321
603376
603420
603466
603513
603186
WILD HORSE INVESTMENT GROUP
S/Z
-
Slow Zone - indicative of in-filled bedrock channel and/or fault
WILD HORSE RIVER PROPERTY
FORT STEELE AREA, FORT STEELE MD, BC
SEISMIC REFRACTION SURVEY
L3700N
(UTM Northing 5503700)
Geotronics
Geotronics Consulting Inc
Surrey B.C.
DRAWN BY:
CAM
JOB NO.:
14-02
NTS:
82G/12
DATE:
MAR ‘14
FIG NO.:
GP-6
Road
Road 7m
1125
1115
1105
1095
1085
1075
S/Z
1055
Wild Horse River
6600
1065
6400
1045
3700
1035
1000
SU
1025
1015
AL
S/Z
1005
RF
ICI
2200
GR
AV
E
Elevation (m)
LS
2900
995
S/Z
985
2800
2500
1600
BOULDER CLAY?
3700
975
4300
2800
965
955
945
5600
S/Z
3700
4600
S/Z
BEDROCK
935
925
915
905
895
885
0
10
20
30
40
50
60
70
80
90
100 110
120 130 140 150 160 170 180 190 200 210 220 230 240 250 260 270 280 290 300 310 320 330 340 350 360 370 380 390 400 410 420 430 440 450 460 470 480 490 500 510 520 530 540 550 560 570 580 590 600 610 620 630 640 650 660 670 680 690 700 710 720 730 740 750 760
Distance (m)
602892
602931
602974
603012
603097
603060
603150
603302
603195
603345
603384
603430
603511
603478
603554
603222
WILD HORSE INVESTMENT GROUP
S/Z
-
Slow Zone - indicative of in-filled bedrock channel and/or fault
WILD HORSE RIVER PROPERTY
FORT STEELE AREA, FORT STEELE MD, BC
SEISMIC REFRACTION SURVEY
L3800N
(UTM Northing 5503800)
Geotronics
Geotronics Consulting Inc
Surrey B.C.
DRAWN BY:
CAM
JOB NO.:
14-02
NTS:
82G/12
DATE:
MAR ‘14
FIG NO.:
GP-7
Road
Road 10m
1125
1115
1105
1095
1085
1075
Wild Horse River
5100
1065
S/Z
1055
1000
1045
3700
1035
3700
1025
1015
S
L
AVE
FIC
GR
IAL
SUR
3500
1005
Elevation (m)
3600
995
985
975
4100
965
3100
AY?
BOULDER CL
2500
6000
BEDROCK
2700
4000
955
6500
5300
S/Z
945
935
925
915
905
895
885
0
10 20 30 40 50 60 70 80 90 100 110 120 130 140 150 160 170 180 190 200 210 220 230 240 250 260 270 280 290 300 310 320 330 340 350 360 370 380 390 400 410 420 430 440 450 460 470 480 490 500 510 520 530 540 550 560 570 580 590 600 610 620 630 640 650 660 670 680 690 700 710 720 730 740 750 760
602919
602962
603011
603052
603094
603135
603178
603223
Distance (m)
603304
603357
603393
603432
603518
603475
603568
603243
WILD HORSE INVESTMENT GROUP
S/Z
-
Slow Zone - indicative of in-filled bedrock channel and/or fault
WILD HORSE RIVER PROPERTY
FORT STEELE AREA, FORT STEELE MD, BC
SEISMIC REFRACTION SURVEY
L3900N
(UTM Northing 5503900)
Geotronics
Geotronics Consulting Inc
Surrey B.C.
DRAWN BY:
CAM
JOB NO.:
14-02
NTS:
82G/12
DATE:
MAR ‘14
FIG NO.:
GP-8
Road
Road 15m
1125
1115
1105
1095
1075
S/Z
1065
6200
Wild Horse River
1085
1000
1055
5200
1045
SUR
FIC
IAL
1035
1025
GR
AVE
LS
3300
1015
3300
1005
3100
Elevation (m)
995
2500
BOULDER CLAY?
4100
985
3900
BEDROCK
975
4100
4000
4100
S/Z
3000
965
955
945
935
925
915
905
895
885
0
10 20 30 40 50 60 70 80 90 100 110 120 130 140 150 160 170 180 190 200 210 220 230 240 250 260 270 280 290 300 310 320 330 340 350 360 370 380 390 400 410 420 430 440 450 460 470 480 490 500 510 520 530 540 550 560 570 580 590 600 610 620 630 640 650 660 670 680 690 700 710 720 730 740 750 760
602946
602994
603035
603082
603105
603140
603174
603216
Distance (m)
603310
603358
603407
603452
603544
603496
603595
603244
WILD HORSE INVESTMENT GROUP
S/Z
-
Slow Zone - indicative of in-filled bedrock channel and/or fault
WILD HORSE RIVER PROPERTY
FORT STEELE AREA, FORT STEELE MD, BC
SEISMIC REFRACTION SURVEY
L4000N
(UTM Northing 5504000)
Geotronics
Geotronics Consulting Inc
Surrey B.C.
DRAWN BY:
CAM
JOB NO.:
14-02
NTS:
82G/12
DATE:
MAR ‘14
FIG NO.:
GP-9