WELCOME NORTH MINES LTD. - 1027 - 470 Granv~lle St., Vancouver. B.C. V6C 1V5 . Telephone (604) 687-1658

L a t i t ude

P E L L Y P R O J E C T

A So l L GEOCHEMICAL REPORT

ON THE

VSE 1-75 MINERAL CLAIMS

62" 42 'N, L o n g i t u d e 134' 4 7 ' W C l a i m Sheet 105L/10

Wh i teho rse M i n i n g D i s t r i c t

WORK DONE DURING THE PERIOD JULY I5 TO AUGUST 4, 1980

G. H . Rayner, P.Eng. (BC)

November 14, 1980

Considered 5 s n-pre-entotion work under uortx W i g Act

TABLE OF CONTENTS

Page No:

CONCLUS I ONS

RECOMMENDAT l ONS

l NTRODUCTI ON

LOCATION AN0 A C C E S S

HISTORY AND PREVIOUS WORK

GEOLOGY

GEOCHEMISTRY

O iscuss ion o f Method D iscuss ion o f Resu l t s

I l l u s t r a t i o n s

F i g u r e 1

F i g u r e I I

F i g u r e I I I

F i g u r e IV

F i g u r e V

F i g u r e V I

Appendix I

Locat i o n Map

Cla im Map

P l o t o f Cu, Pb, Zn V a l w s - I n Pocket

Contour P l a n - Copper I ,

Contour P l a n - Lead

Contour P l a n - Z i n c

Geochemical Report by Ke tza E n t e r p r i s e s L t d . ( i n c l u d i n g STATEMENT OF COSTS)

n n I

-!

LOCATION MAP Mil.. N.m. 1 4M 4

- page 1 -

CONCLUSIONS

The geochemical r e s u l t s f rom t h e p r e s e n t survey a r e n o t encouraging.

Values i n a l l t h r e e e lements t e s t e d a r e . 1 ~ and r e l a t i v e l y un i fo rm.

I t seems most l i k e l y t h a t t h e c l a i m s do no t c o n t a i n a s u b s t a n t i a l

s u l p h i d e body t h a t i s i n a p o s i t i o n t o i n f l u e n c e s o i l metal va lues.

RE COMMENOATI ONS

S ince t h e p r o p e r t y l i e s i n a f a v o u r a b l e g e o l o g i c a l env i ronment near

t h e C l e a r Lake massive s u l p h i d e d e p o s i t i t i s recomnended t h a t t h e

c l a i m s be r e t a i n e d i n good s t a n d i n g pending f u r t h e r development i n the

a rea .

I f f u r t h e r work i s r e q u i r e d t o m a i n t a i n t h e c l a i m s i n good s t a n d i n g ,

t h i s f u r t h e r work s h o u l d c o n s i s t o f d e t a i l e d p r o s p e c t i n g and g e o l o g i c a l

mapping.

- page 2 -

INTRODUCTION

The VSE c l a i m s and s e v e r a l o t h e r c l a i m groups were s t a k e d as p a r t

o f t h e PELLY P r o j e c t , a j o i n t ven tu re between Welcome N o r t h Mines L td .

and E and B E x p l o r a t i o n s I n c . The c la ims were l o c a t e d t o cover

a reas p o t e n t i a l l y favourab le f o r t h e d i s c o v e r y o f a m i n e r a l d e p o s i t

s i m i l a r t o t h e nearby C l e a r Lake zone.

D u r i n g the summer o f 1980, Ketza E n t e r p r i s e s L t d . o f Ross R ive r , Y.T.

c o n t r a c t e d t o c u t a g r i d o v e r t h e p r o p e r t y and t o c a r r y o u t a

geochemical s o i l survey. The r e s u l t s o f t h i s survey a r e p r e s e n t e d i n

t h i s r e p o r t .

LOCATION AND ACCESS

The p r o p e r t y i s l o c a t e d i n the Pel l y R ive r Val l e y i n t h e s o u t h - c e n t r a l

Yukon about 120 m i l e s n o r t h o f Whitehorse. The s p e c i f i c l o c a t i o n would

be: L a t i t u d e 62" 42'N, Long i tude 134' 47'W.

Access f o r l i g h t e x p l o r a t i o n purposes i s by h e l i c o p t e r f rom bases a t

Ross Ri,ver o r Carrnacks. Severa l lakes i n t h e a rea and a g rave l a i r s t r i p

a t C lea r Lake a r e s u i t a b l e f o r f i xed-w ing use i f r e q u i r e d .

Bush cover i n t h e d i s t r i c t i s moderate and g e n e r a l l y does n o t h i n d e r

t r a v e r s i n g .

- page 3 -

HISTORY AND PREVIOUS WORK

F o l l o w i n g t h e d iscovery by Conwest E x p l o r a t i o n s L t d . o f t h e C lear Lake

d e p o s i t i n 1978, the Pel l y P r o j e c t was farmed and s e v e r a l g e o l o g i c a l l y

favourab le areas were s taked i n the d i s t r i c t .

Some 1675 l i n e - k i l o m e t r e s o f a i r - b o r n e magnet ic and e l e c t r o m a g n e t i c

su rvey were f l own o v e r a p o r t i o n o f t h e d i s t r i c t i n A p r i l o f 1980 f o r

t h e Pel l y P r o j e c t .

The d e t a i l e d geology o f t h e a r e a i s p o o r l y understood. I n genera l t h e

a r e a i s u n d e r l a i n by somewhat s c h i s t o s e rocks o f t h e Ask in Group and

by A n v i l Range v o l c a n i c s and s h a l e . These o l d e r rocks have been c u t

by s u b s t a n t i a l monzoni t i c i n t r u s i ves o f presumed cre taceous age.

On t h e VSE Group o u t c r o p i s q u i t e widespread c o n s i s t i n g o f sha les and

some f i n e g r a i n e d t u f f s presumably o f t h e A n v i l Range Group.

GEOCHEMISTRY

Discuss ion o f Method

The s o i l samples were taken a t 100metre i n t e r v a l s a l o n g f l a g g e d g r i d

l i n e s 400 metres a p a r t . A s h o r t handled grub hoe was used t o c o l l e c t

t h e sample. Whenever p o s s i b l e the B* h o r i z o n was c o l l e c t e d a l t h o u g h

i n some areas o n l y A' m a t e r i a l was a v a i l a b l e . Throughout t h e d i s t r i c t

t h e normal s o i l p r o f i l e i s o v e r l a i n by up t o 0.5 metres of v o l c a n i c

ash which must be p e n e t r a t e d t o c o l l e c t the sample. The samples

were p laced i n numbered k r a f t paper envelopes and s e n t t o Whi tehorse

Assay Labs, Whi tehorse, Y.T. f o r a n a l y s i s .

- page 4 -

The samples were dr ied , screened t o minus 80 mesh and a weighed

p o r t i o n was d igested i n hot HN03 and HC104. The r e s u l t i n g

s o l u t i o n was then anal ysed by Atomi c Absorb t i o n Spectrometer for

copper, lead and z inc .

Discussion o f Results

The values repor ted f o r a l l three elements were s u r p r i s i n g l y

low. No areas war ran t ing c lose r geochemical fo l low-up were o u t l i n e d

---.A %, ,.,,h, .., CERALO ! . i t . . : .AKR ,,

November 14th 1980

CE RT l F l CATE

I , Gerald H. Rayner do hereby c e r t i f y t ha t :

I am a consu l t i ng geological engineer w i t h o f f i c e s a t

626 Duchess Avenue, West Vancouver, B.C.

I am a graduate o f the Un ive rs i t y o f B r i t i s h Columbia

(B.Sc. Geology).

I am a member i n good standing o f the Assoc ia t ion o f

Professional Engineers o f the Province o f B r i t i s h

Columbia.

I have p rac t i ced my pro fess ion s ince 1958 p r i m a r i l y i n

Western North America and the South P a c i f i c .

This repo r t i s based on personal v i s i t s t o the VSE Claims

and o ther P e l l y P ro jec t p rope r t i es i n the area between

Ju l y 31st and August 6 t h 1980 and on a v a i l

repor ts and p r i v a t e data.

West Vancouver, B . C . November 14th 1980

APPENDIX I

GEOCHEMICAL REPORT

VSE Claims

Claim Sheet 105L10

Location 62' 42' 134O 47'

Mining District - Whitehorse

T A B L E O F C O N T E N T S

Forward

Dates of Survey

List of Claims

Location. of Claims

Method of Control

Method of Collection

Method of Analysis

Personnel Employed

Invoices of Work Performed

Map 1 Geochem Values 2 Cu Contours 3 Pg Contours 4 Zn Contours

Page One

Page Two

Page Three

Page Four , .

Page Five

Page Five

Page Five & Six

Page Seven

Page Eight

ROSS RIVER YUKON. YO0 IS0

Page One

F O R W A R D

During the period July 15th to August 14th, 1980,

Ketza Enterprises Ltd. was employed and supervised

by Welcome North Mines Ltd. to undertake the con-

trolled geochemical sampling of eleven properties

in the Detour Lakes area of the Pelly River valley.

Ketza Enterprises collected all samples and pre-

pared all maps for the surveys. All results were

then sent to Welcome North Mines Ltd. No effort

was made by Ketza Enterprises to interpret results

or to tie results into existing geological inform-

ation. During the analysis of samples, certain samples

from RSVP, PVA, and PDQ claim blocks were destroyed

by fire at the Whitehorse Assay Office.

submitted by,

Blake S. Macdonald

Page Two

D A T E S O F S U R V E Y

Property Name

RSVP

PVA

PDQ

Dates of Survey

July 15 - August 4

July 15 - August 4

July 15 - August 4

PELLY July 15 - August 4

WHIP July 15 - August 4

VSE July 15 - August 4

SAP July 15 - August 4 HUGH

GRAF

PETER

HANK

August 1 - August 8

August 2 - August 8

August 6 - August 10

August 10 - August 14

L I S T O F C L A I M S

C l a i m N a m e C l a i m T a g C l a i m H e l d By

SAP 1- 2 0 Y A 2 5 3 5 5 - Y A 2 5 3 7 4

PDQ 1- 2 0 Y A 2 5 3 7 5 - Y A 2 5 3 9 4 1- 8 B l a k e M a c d o n a l d 9 - 1 6 L a s h L a d u e

17-20 Je r ry L a d u e

VSE 1- 75 YA2540OrYA480O1- Y A 4 8 1 3 4 .- -- - - -

WHIP 1- 30 Y A 4 8 1 3 5 - Y A 4 8 1 6 4

PELLY 2- 2 0 Y A 4 8 1 6 5 - Y A 4 8 1 8 5

PVA 1- 2 4 Y A 2 5 3 3 1 - Y A 2 5 3 5 4

RSVP 1- 32 Y A 2 5 2 9 9 - Y A 2 5 3 2 2

GRAF 1- 3 6

HANK 1 - 9 0

PETER 1- 4 0 Y A 5 0 7 4 2 - Y A 5 0 7 8 1

CLAIM NAME CLAIM SHEET MINING DISTRICT LOCATION

SAP 105L9 Whitehorse 62O36'30" 134O24'

PDQ 105L10 Whitehorse 62'39' 134~35'

VSE lO5LlO Whitehorse 62O42' 134O47 I

WHIP 105L10 Whitehorse 62O44' 134O.52'

PELLY

PVA

RSVP

G RAF

105L14 Whitehorse

105L14 Whitehorse

105L14 Whitehorse

105L11/14 Whitehorse

HUGH 105L13/14 Whitehorse

HANK 105L13/14 Mayo

PETER Whitehorse

G E O C H E M I C A L S U R V E Y

Method of Control

The control of sampling was obtained by the use

of compass and chained lines. To tie the lines

into the claim block the base lines were run

along claim lines tieing the claim posts into

the grid. Cross lines were run at intervals

of 400 meters at right angles to the base lines

and sample stations were at intervals of 100

meters on the cross lines.

Method of Collection

At 100 meter intervals on the flagged cross

lines samples were obtained with the use of

a mattock from the B horizon which in most

cases was just below the ash layer that over-

lays the Detour Lakes area approximately 12 - 18 inches below the surface. The samples

obtained were placed in a Kraft envelope and

the envelope was marked with the claim block

name and the line and station.

Method of Analysis

Samples collected were sent to Whitehorse Assay labs, a division of Barringer Magenta

and run accordingly.

Page Six

Method of Analysis (Continued)

Samples are dried.

Sieved to minus 80 mesh.

Weighed to 0.5 gms.

Digested in hot HN03 & HCL04 for 4 hours.

Cooled and brought up to 5 MLS, shaken and settled.

Analysed on an Atomic Absorption Spectrometer.

Sample results are recorded and returned to Ketza Enterprises Ltd. to be recorded on grid plans.

K E T Z A P E R S O N N E L E M P L O Y E D

N a m e -- P e r i o d

J e r r y Ladue J u l y 1 5 - August 5

John E t z e l J u l y 1 5 - August 5

C h a r l i e O l l i e

John Tommy

J u l y 27 - August 3 J u l y 10 - August 1 4

J u l y 27 - August 3 J u l y 10 - August 14

Wil l iam Atkinson J u l y 27 - August 12

Ron E t z e l J u l y 29 - August 4

Dan E t z e l J u l y 29 - August 4

F r ed P e t e r J u l y 27 - August 14

Gordon P e t e r J u l y 10 - J u l y 12

P a t E t z e l J u l y 10 - J u l y 12

Blake Macdonald J u l y 1 5 - J u l y 17 J u l y 27 - August 8

ROSS RIVER YUKON. YOB IS0

Phone 14031 969-2237 BLAKE S. MACDONALO. Pros. Telex 036-8-317

PageEight STATEMENT OF COSTS

INVOICE

TO: Welcome North Mines Ltd., 1027 - 470 Granville St., Vancouver, B.C. V6C 1V5

Claim Name

VSE

Number of Claims

7 5

.................... Helicopter $ 883.90

Chain & Compass Grid

42.5 Km @ $l4S.OO/ Km....... 6,162.50

Geochem Samples

357 Samples @ 3.80/Sample.. 1,356.60

Fuel $ / $ Flying

0.07 X 883.90. ............. 61.87

Fixed Wing

$4.53 X Claim 75 .......... 339.75

Freight

$0.62 X Claim 75... ........ 46.50

Report preparation costs, including map printing, photocopies, folders, ........... drafting service... 100.00

TOTAL

COST/CLAIM