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GEOLOGICAL
ASSESSMENT REPORT
on the
RAINBOW CLAIM GROUP
OKANAGAN FALLS AREA
OSOYOOS MINING DIVISION
bY
MURRAY S. MORRISON, B.Sc.
CLAIMS: Rainbow l-4 & 7-10 (8 units).
LOCATION: The Rainbow Claim Group is situated near the headwaters
of Vaseux Creek, 24 km southeast of Okanagan Falls, B.C.
Lat. 49” 17’; Long. 119” 17’;
N.T.S. Map 82-E-6W
OWNER: M. S. Morrison
OPERATOR: M. S. Morrison
DATE STARTED: May 15, 1999
DATE COMPLETED: May 17, 1999 cxxx.,~%HCA?i, su E’6( ~~A~~~
‘: -?“~~~~,,~~~~~-g ~~~~p~~~-y
Kelowna, B.C. August 15,1999
S- Introduction
Location and Access
Physical Features and Climate
Clann status
HiSt0l-y
Regional Geology
Regional Mineralization
Introduction
TABLE OF CONTENTS
PAGE
1
4
5
5
8
10
12
14
14
Type 1 Precious Metal Bearing Epithermal Deposits 14
Vault Property - North Vein 14
AU Prospect 15
Type 2 Precious Metal Bearing Epithermal Deposits 15
Dusty Mac Deposit 15
Vault Property - Main Epithermal Precious Metal Deposit 16
Rainbow Claim Group
Property Geology
Grid
Introduction
Tertiary - Eocene - Mamma Formation (?) Conglomerate
Tertiary - Eocene - Mamma Formation (?) Rhyodacite Tuff
Alteration and Mineralization
Discussion
Conclusions and Recommendations
References
Appendix A Statement of Qualifications
Appendix B Statement of Expenditures
17
17
17
17
18
19
20
20
22
24
26
27
ILLUSTRATIONS
Figure 1 Location Map (British Columbia) 3
Figure 2 Claims and Access, Rainbow Claim Group 7
Figure 3 Mineral Claims, Rainbow Claim Group 9
Figure 4 Regional Geology, Rainbow Claim Group 13
Figure 5 Regional Geology (Enlargement) 13
Map R-99-l Geology - Rainbow 7-10 Mineral Claims in pocket
PAGE
1
SUMMARY
The Rainbow Claim Group is comprised of 8,2-post mineral claims which are located near
the headwaters of Vaseux Creek, 24 km southeast of Okanagan Falls, B.C. The property,
owned by the writer, M. Morrison, of Kelowna, B.C., covers the eastern portion of the
Venner Meadows Tertiary Outlier. Volcanoclastic rocks of the outlier are known to host an
epithermal precious metal occurrence at the AU prospect located just 1 km west of the
Rainbow property.
Similar Tertiary age rocks host epithermal precious metal values at the well-known Dusty
Mac and Vault properties located near Okanagan Falls. A total of 93,653 tonnes of ore with
an average grade of 6.29 g/tonne gold and 146.49 g/tonne silver were mined from the Dusty
Mac open pit mine during 1975-76. One persistent composite epithermal vein on the Vault
property has a reserve of 152,000 tonnes of 14 g/tonne gold plus minor silver values. A
large epithermal deposit on the same property may contain an additional one million tonnes of
3.5 g/tonne gold.
Drill intercepts as high as 300 g/tonne gold over 15 cm have been reported from the AU
prospect.
The Tertiary rocks underlying the Rainbow property are, for the most part, conglomerates
comprised predominantly of Tertiary volcanic clasts. It is thought that the Tertiary outlier is
separated from “basement rocks” of the Pre-Permian Mona&e gneiss and Cretaceous (?)
Valhalla intrusions by a strong fault. It is also speculated that the fault has allowed for the
passage of the epithermal solutions that have brought about the deposition of precious metals
into some of the most permeable of the overlying Tertiary rocks (e.g. the AU prospect).
2
SUMMARY continued
It is considered that the permeable conglomerate that underlies the Rainbow property has the
potential to host a large epithermal precious metal deposit adjacent the basement fault, and it
is suggested that the alteration and quartz veining that occurs near the southwest boundary of
the Rainbow 4 mineral claim represents “leakage” from such a system.
A low-cost Percussion Drilling Program is recommended to probe the conglomerate near the
southern border of the Rainbow 4 Mineral Claim. It is also recommended that the rock be
checked for evidence of alteration, pyritization and silicification and that all altered rocks be
analyzed for gold, silver and arsenic. Alteration and mineralization are expected to increase
at depth towards the Basement Fault.
4
lNTR0DUc!TI0N
This report, written for government assessment work requirements, discusses the results of a
geological mapping survey carried out over portions of the Rainbow 7-10 mineral claims by
the writer during May, 1999.
The Rainbow Claim Group is comprised of 8 contiguous 2-post mineral claims which are
located near the headwaters of Vaseux Creek, 24 km southeast of Okanagan Falls, B.C. The
mineral claims were staked by the writer, M. Morrison, of Kelowna, B.C. during June, 1994
and May, 1998.
The mineral claims are positioned to cover the eastern end of the Venner Meadows Tertiary
Gutlier which is comprised predominately of conglomerate and tuff. Similar rock is known to
host epithermal precious metal mineralization just 1.0 km west of the Rainbow property at the
AU Prospect on the boundary of the old Gold and Venner Mineral Claims. The well-known
Dusty Mac and Vault properties, located near Okanagan Falls, B.C. also host epithermal
precious metals in Tertiary Age rocks.
In 1997, the writer mapped the geology on portions of the Rainbow 1 & 2 mineral claims at a
scale of 1: 2500. In 1998, the Rainbow 7-10 mineral claims were added to the western side
of the Rainbow property, and this year’s mapping program was conducted over portions of
these new mineral claims at the same scale (1: 2500).
It was hoped that the mapping program would yield data with regard to structure, alteration
and mineralization that would aid with the appraisal of the property
The results of this year’s mapping program are illustrated on Map R-99- 1 which accompanies
this report.
5
LOCATION AND ACCESS
The Rainbow property is located near the headwaters of Vaseux Creek, 24 km southeast of
Okanagan Falls, B.C. (Lat. 49” 17’; Long. 119” 17’; N.T.S. Map 82-E-6W).
Access to the property from Okanagan Falls is via the Weyerhauser Sawmill Road to the
Allendale Lake Road which by-passes the sawmill and then continues beyond the millsite as
the Okanagan Falls Forest Service Road. The road climbs the mountain on the south side of
Shuttleworth Creek as the main haulage road. A secondary logging road branches to the right
at kilometre 12.3 and continues southeast another 14.7 km to the property (see Figure 2).
The main logging roads are gravelled and maintained year-round.
PHYSICAL FEATURES AND CLIMATE
The Rainbow property is situated on a rolling uplifted region known geographically as the
Okanagan Highland. Elevations on the Highland generally range from 1400 to 1800 metres
with some ridges reaching 2100 metres. Mount Baldy, located 11 km due south of the
Rainbow property, is the highest point of land in the region at 2300 me&s.
The Rainbow property is centred over a flat-topped ridge at 1630 metres which is located 1.5
lun east of Solco Creek, one of the main tributaries of Vaseux Creek
The Okanagan Highland is deeply incised by Shuttleworth and Vaseux Creeks which dram
into the Okanagan River at the 330 metre elevation just 13 km west of the property.
PHYSICAL FEATURES AND CLIMATE continued
Pleistocene ice has cleaned debris from much of the flat-topped ridge, but considerable drift
covers the flanks of the ridge. Some of the drift is believed to be in excess of 20 metres
deep.
The forest cover on much of the property is lodgepole pine. Much of the forest has been
clear-cut logged in recent years and some of the new plantations already have a vigorous
young pine forest.
The region is also used as a summer rangeland. The tributaries of Vaseux Creek provide
ample drinking water for the cattle.
The Okanagan Highland receives considerably more precipitation than the arid Okanagan
Valley. Annual precipitation on the Rainbow property probably equals 60 cm - half of it in
the form of snow. The snow begins to accumulate around the first of November and generally
lingers on shaded slopes until mid-May.
Summer temperatures can reach as high as 30°C in the upland country while winter
minimums can drop to -30°C.
8
CLAIM STATUS
The Rainbow l-4 & 7-10, 2-post mineral claims were staked by the writer, M. Morrison, of
Kelowna, B.C. and recorded in the Osoyoos Mining Division.
The mineral claims making up the Rainbow Claim Group are listed below:
CLAIM NAME
Raiubow 1
Rainbow 2
Rainbow 3
Rainbow 4
Rainbow 7
Rainbow 8
Rainbow 9
Rainbow 10
TENURE NO.
327074
327075
327076
327077
362887
362888
362889
362890
DATE OF EXPIRY” RECORD DATE
June 26, 1994 June 26,200l
June 26, 1994 June 26,200l
June 26, 1994 June 26,200l
June 26, 1994 June 26,200l
May 18, 1998 May 18,200l
May 18, 1998 May 18,200l
May 18, 1998 May 18,2002
May 18, 1998 May 18,200l
*(The Expiry Dates are based on the acceptance of this report for assessment work credits).
0 10 &J
HISTORY
The Tertiary Age rocks of the Okanagan Falls area were not seriously explored for precious
metal deposits until the late 1960’s when Noranda Mines Ltd. discovered silver and gold
mineralization within a silicified outcrop of Tertiary rock 2% km northeast of Okanagan Falls
on the Dusty Mac property.
Extensive drilling by Noranda proved that the deposit was too small considering the low
metal prices of the day and the property was returned to the vendor, Dusty Mac Mines Ltd.,
in 1970. Shortly thereafter, precious metal prices increased dramatically and Dusty Mac
extracted the deposit with a profitable open pit operation during 197576. In all, 93,653
tonnes of ore grading 6.29 g/tonne gold and 146.59 g/tonne silver were mined.
The principals associated with Dusty Mac Mines Ltd. also discovered gold mineralization
within Tertiary Age rocks 22 km southeast of Okanagan Falls, or 1 l/2 km east of Venner
Meadows, in the early 1970’s. The AU property was staked and optioned to Teck
Corporation Ltd. which conducted prehminary exploration programs on the ground.
In 1982, the writer discovered a large silicified zone within Tertiary rocks 4 km northwest of
Okanagan Falls and staked the Vault property. The Vault property was explored extensively
by Riocanex Inc. (1982-83), Dome Exploration Ltd. (1984), Seven Mile High Resources Inc.
(1985) and Jnco Ltd. (1986-1990). Expenditures exceeding 4 l/2 million dollars went into
exploration on the property in an effort to establish a precious metal reserve (see section on
Regional Mineralization).
Also, in the 1980’s, Esso Minerals and Minova Inc. each conducted further drilling on the
Dusty Mac property, and Lacana Corp., Riocanex Inc. and Into Ltd. all carried out
exploration programs (including diamond drilling) on the AU gold prospect 1% km east of
Venner Meadows (see section on Regional Mineralization).
11
HISTORY continued
Lacana Corporation was eventually taken over by Homestake Canada Ltd. and through the
years Homestake allowed their ground over the AU gold prospect (i.e. the Venner l-5 mineral
claims) to lapse. The Rainbow l-6 mineral claims were staked by the writer in June, 1994 to
cover some of the lapsed ground, and the Rainbow 7-10 mineral claims were staked in May,
1998 when more ground “came open”.
Jn 1995, the writer conducted a ground magnetometer survey over the Rainbow 1 & 2 mineral
claims (Morrison, 1995) and in 1997, geological mapping was carried out by the writer over
portions of the Rainbow l-4 mineral claims (Morrison, 1997).
The Rainbow 5 & 6 mineral claims were allowed to lapse in June, 1998.
12
REGIONAL GEOLOGY
Figure 4 accompanying this report outlines the regional geology of the Okanagan Falls area.
The geology has been reproduced from G.S.C. Map 15-1961 by H.W. Little with some
modifications.
The oldest rock ill-ted on Figure 4 is a Pre-Permian Monashee gneiss. It underlies much
of the country for 16 kilometres east and southeast of Okanagan Falls. The gneiss has been
intruded by the Cretaceous (?) Nelson hrtrusives northeast of Okanagan Falls. The Nelson
hrtrusives also occur at three sites on the eastern side of the map area. Later Cretaceous (?)
Valhalla Plutonics intrude both the Monashee Group and Nelson Intrusives and underlie much
of the eastern half of the map area.
Tertiary Age sediments and volcanics rest unconformably over all earlier rock formations and
occur within fault-bounded basins at Okanagan Falls and at Venner Meadows, 20 kilometres
to the southeast, as illustrated on Figure 4. The Tertiary rocks have been folded and cut by
late faulting.
It is believed that precious metal bearing epithermal solutions have ascended late fault
structures within the Tertiary rocks, and that at some mineral prospects repeated faulting and
the introduction of several phases of epithermal solutions have upgraded the precious metal
content of the Tertiary rocks to ore grade values. Important precious metal deposits in the
district are illustrated on Figure 4. They include the Vault, Dusty Mac and AU occurrences.
The geology and mineralogy of these interesting occurrences will be discussed more fully in
the section that follows.
It is thought that the Rainbow Claim Group covers the eastern end of the Venner Meadows
Tertiary outlier.
14
REGIONAL MINERALIZATION
Introduction
Two distinct types of precious metal bearing epithermal deposits are recognized in the
Okanagan Falls area and these will be referred to as Type 1 and Type 2 deposits in the
discussion that follows.
Type 1 Precious Metal Bear& Epithermal Deuosits
Composite veins comprised of quartz-calcite + adularia filling shears in brittle rocks are
characteristic of Type 1 precious metal bearing epithermal deposits in the district. The. veins
are generally narrow, but are persistent in strike and in depth. The veins often carry gold
(electnnn) and silver minerals throughout although values can be highly variable.
The Vault property North Vein and the AU prospect Main Vein are examples of Type 1
precious metal bearing epithermal deposits in the Okanagan Falls district.
Vault Pronertv - North Vein
The North Vein on the Vault property is a precious metal bearing epithermal
composite vein comprised of quartz, calcite and adularia. The vein cuts through the
brittle Eocene Marron Formation trachyandesites underlying the Vault property. The
vein is exceedingly persistent and extends at least 1 100 metres along strike and at
least 200 metres in depth. The vein averages 55 cm in width. That portion of the vein
drilled to date is reported to contain 152,000 tonnes of 14 g/tonne gold plus minor
values in silver.
15
REGIONAL MlNEXALIZATION continued
Twe 1 Precious Metal Bearing Epithermal Deposits continued
AU Prosnect
The main vein at the AU prospect is reported to be a composite vein comprised of
quartz and carbonate. Some drill intercepts have returned gold values as high as 30
g/tonne over one metre intercepts. The vein is believed to fit the Type 1 deposit
model, but it has been severely disrupted by late faulting, and no mineral reserve has
been calculated.
Tvpe 2 Precious Metal Beariw Epithermal Deposits
The main characteristics of Type 2 precious metal bearing epithermal deposits in the district
are large size, irregular dimensions, and erratic distribution of precious metal values. The
size and form of Type 2 deposits are controlled by the permeability of the Tertiary host rocks
which the epithermal solutions invade. Most often the host rock is a very porous lahar or
lapilli tuff that is overlain by an impervious rock unit such as a mudstone or volcanic flow.
Epithermal solutions invading the porous rock units are confined by the impervious cover
rock The Type 2 deposits contain abundant silica which carries gold + silver values. Repeat
brecciation and the introduction of multiphase veining upgrades the precious metal content of
Type 2 deposits.
Dusty Mac Deposit
The open pit mine on the Dusty Mac property allows for a good view of a Type 2
deposit. A lahar unit made up of Eocene andesite has been flooded with silica,
brecciated, and flooded again. The lahar unit lies directly below a mudstone unit of
16
REGIONAL MINERALIZATION continued
‘Ibe 2 Precious Metal Bearing EDithermal Deposits continued
Dustv Mac Deposit continued
the White Lake Formation. It is believed that the mudstone unit provided impervious
cap for ascending epithermal solutions. The gold and silver mineralization is
disseminated throughout the silica breccia. The Dusty Mac open pit mine yielded
93,653 tonnes of ore grading 6.89 g/tonne gold and 146.59 g/tonne silver during
operations conducted in 1975-1976.
Vault Pronertv - Main Enithermal Precious Metal Deposit
The Main Epithermal Precious Metal Deposit on the Vault property has been
penetrated by more than 60 diamond drill holes. The deposit displays all of the
characteristics of Type 2 deposits. The main host rocks are lahars and lapilli tuffs of
the Eocene Mamma Formation. The mineralized zones are flooded with silica and the
precious metal values are erratic. Intercalated mudstones and flow rocks appear to act
as “dams” to epithermal solutions ascending the porous lahar and tuff units. Repeat
brecciation and multiphase veinlets are characteristic of portions of the deposit.
The erratic distribution of gold in the Main Epithermal Deposit has made it difficult to
calculate a mineral reserve, but it is estimated that one million tonnes of 3 . 5 g/tonne
gold may occur in the deposit. One of the best drill intercepts on the property assayed
15.0 g/tonne over 8.8 metres.
17
REGIONAL MINERALIZATION continued
‘I’vpe 2 Precious Metal Bearing EDithermal DeDosits continued
Rainbow Claim Grout,
It is thought that the Rainbow Claim Group
precious metal bearing epithermal deposit.
PROPERTY GEOLOGY
Grid
could host either a Type 1 or Type 2
The Location Line of the Rainbow 7-10 mineral claims which has a bearing of 090 degrees,
was used as the Baseline for this years mapping program. Eight flagged grid lines, spaced
100 metres apart, were then measured perpendicular from the Baseline for 200 metres to the
north and 500 metres to the south as illustrated on Map R-99-l. Grid stations were marked at
each 25 metre measure along the flagged grid lines. A Topolite belt chain and Silva Ranger
compass were used to establish the 5.6 km of grid line during the course of this years
program.
Introduction
The Rainbow Claim Group covers the eastern end of the Venner Meadows Tertiary Gutlier.
There are two predominant rock types which occur on this portion of the Gutlier. One is a
conglomerate comprised entirely of volcanoclastic material, while the other is a rhyodacite
.
tuff. Both rock types which are believed to be a part of the Eocene-Mamma Formation will
be discussed under the titles that follow.
18
PROPERTY GEOLOGY continued
Tertiary-Eocene-Mamma Formation(?) Comlomerate
A conglomerate, believed to be a unit of the Tertiary Eocene Mamma Formation, underlies
much of the Rainbow Claim Group (see Map R-99-l). The conglomerate rarely occurs as
natural outcroppings due to its friable condition, and most of that which is visible has been
exposed by road building and other logging activities. In areas of shallow overburden, the
conglomerate occurs as angular float on the surface or as sharp rock fragments lodged in the
roots of windfall.
The conglomerate is made up of a chaotic mix of subrounded to subangular boulders, cobbles,
pebbles and grits that are entirely of Tertiary volcanic origin. The clasts are of a great variety
of colours and types (possibly 30), but most are porphyritic and of intermediate chemical
composition (e.g. andesites, trachyandesites and dacites). Colours range from brick red to
black, but purples, greens and tans are most common.
Everywhere the conglomerate is poorly sorted with 30 cm boulders commonly mixed with
pebbles and grits. Some outcrops have cobbles with a modal size of 10 cm, while others
have cobbles with a modal size of 15 cm, but it is impossible to follow consistent beds very
far across the property. In fact, there are only a few locations on the property where bedding
is recognized. The conglomerate at these locations has a strike of 50 to 60 degrees and dips
85 degrees to the southeast.
The steep dip of the conglomerate is consistent with attitudes mapped elsewhere on the
Venner Meadows Tertiary Outlier by the titer (see References).
Although the conglomerate is made up of highly variable components at any single location,
it is very homogeneous across the property and all attempts to identify and map sub-units
failed.
19
PROPERTY GEOLOGY continued
Tertiary-Eocene-Marama Formation(?) Conelomerate continued
The conglomerate is weakly indurated for the most part and in places quite crumbly and
weathered. Zones of well-indurated conglomerate occur adjacent poorly indurated
conglomerate at a few locations across the property, but other differences between
conglomerates were not recognized.
the two
The conglomerate unit (4d) represents conditions of very fast deposition of volcanoclastic
material during the E&ene and in part may be a lahar.
There are sandstones and grits interbedded with the conglomerate on the southeastern comer
of the Rainbow 10 mineral claim, but in all cases the rock is poorly exposed.
Tertiarv-Eocene-Marama Formation(?) Rhvodacite Tuff
A rhyodacite tuff underlies much of the Rainbow 9 mineral claim (see Map R-99-l). The
white to tan tuff is comprised of fine grained ash that sometimes exhibits local banding.
Although the banding attitudes can be measured, the rock is so severely fractured and faulted
that these measurements can not be considered reliable. It appears that the tuff overlies the
conglomerate unconformably.
A 5 metre wide grey porphyritic monzonite dyke which intrudes the tuff has been folded and
segmented by at least two north-trending faults (see Map R-99-l). The dyke is well fractured
and stained with limonite and manganese.
20
PROPERTY GEOLOGY continued
Alteration and Mineralization
The weakly indurated and poorly sorted conglomerate underlying much of the Rainbow Claim
Group has good permeability, and it is believed that the weak clay alteration and limonite
staining observed at several sites across the property are related to diluted epithermal
solutions that have invaded the rock from depth.
The best examples of clay alteration and limonite staining occur along the logging road on the
Rainbow 1 mineral claim mapped in 1997, and the best example of all occurs at grid 0+50N,
6+2OE immediately south of the Rainbow 4 mineral claim. At this location, epithermal (?)
solutions have altered some of the matrix material of the conglomerate to clay m.inerals.
Limonite staining is locally strong and minor quartz veinlets cut the rock. Unfortunately, the
outcrop is small and poorly exposed. (This alteration zone occurred just beyond the
boundaries of the Rainbow Claim Group in 1997, but the Rainbow 15 mineral claim staked
by the writer on July 18, 1999, now covers the zone.)
DISCUSSION
The writer believes that a common model can be used for the exploration of epithermal
precious metal deposits within the Venner Meadows Tertiary Outlier. First, it is thought that
the steeply dipping Tertiary sequence of rocks are in fault contact with “basement” rocks of
the Pre-Permian Monashee Group Gneiss and/or the Cretaceous (?) Valhalla Intrusions.
Second, it is believed that the fault (given the name “The Fort Knox Basement Fault” in other
reports by the writer) dips northerly at a moderate angle and that it has been the conduit for
ascending epithermal solutions. Third, these epithermal solutions are thought to have invaded
the most permeable rocks of the Tertiary sequence, and in doing so, have brought about clay
alteration, pyritization, silicification and in some cases (i.e. the AU prospect) precious metal
deposition.
21
DISCUSSION continued
The writer has observed good alteration, pyritization and silicification on the Fort Knox Claim
Group and strong silicification on the Lucky Star property, 5 and 9 km west of the Rainbow
property, respectively. In each case, steeply dipping sediments and volcanics of the Tertiary
sequence are involved and the most permeable rock units are the most altered.
The steeply dipping permeable conglomerate which underlies much of the Rainbow Claim
Group is considered to be an excellent host for epithermal precious metal deposition.
The conglomerate is lorown to “wedge-out” to the southeast, but increase in thickness to the
northwest on the Rainbow Claim group. It is speculated that a very sizeable epithermal
precious metal deposit could occur within the conglomerate adjacent the Fort Knox Basement
Fault.
It is recommended that a low-cost Reverse Circulation Percussion Drilling Program be
conducted in the vicinity of the alteration zone at grid 0+5ON, 6+2OE. The conglomerate
this site should be examined for strong clay alteration, pyritization and silicification, and
samples of any altered or replaced conglomerate should be analyzed for gold, silver and
arsenic values.
The drill could be moved to either the southeast or northwest of grid 0+5ON, 6+20E
depending on the initial results.
at
There is a road to the target area and a supply of water for drilling purposes nearby.
22
CONCLUSIONS AND RECOMMENDATIONS
The Rainbow Claim Group covers the eastern end of the Venner Meadows Tertiary Outlier
located 20 km southeast of Okanagan Falls, B.C. One notable precious metal occurrence has
been identified within the outlier, so far, and this is located on the old Venner/Golden 2
mineral claim’s border, 1.0 km west of the Rainbow property. Drill intercepts from this
occurrence, known as the AU prospect, have been reported to be as high as 300 g/tonne gold
over 15 cm.
Similar Tertiary age rocks host the well-known epithem& precious metal deposits at
Vault and Dusty Mac properties located a few kilometres northwest and northeast of
the
Okanagan Falls, respectively (see Regional Mineralization).
The southwestern boundary of the Venner Meadows Tertiary outlier is believed to be
coincident with a fault which dips at a moderate angle below the Tertiary rocks and separates
them from “basement rocks ” of Pre-Permian Monashee Gneiss or Cretaceous (?) Valhalla
Intrusions.
It is thought that the underlying fault has provided a conduit for ascending epithermal
solutions and that these solutions have deposited precious metal values (at least at the AU
prospect) into the most receptive (permeable) rocks of the Tertiary outlier.
The Tertiary conglomerate that underlies much of the Rainbow Claim Group is very
permeable and it is considered to be an excellent host for invading epithermal solutions.
There is some evidence (i.e. clay alteration and quartz veining) that epithermal solutions have
invaded the conglomerate.
23
CONCLUSIONS AND RECOMMENDATIONS
The conglomerate measures well over 1000 metres in thicluress across the property and has
the potential to host a very sizeable epithermal precious metal deposit adjacent the basement
fault.
It is recommended that a few low-cost percussion drill holes be drilled near the southern edge
of the Rainbow 4 mineral claim where the basement fault is thought to be relatively near the
surface and where there is some indication of epithermal activity. The conglomerate should be
examined for strong clay alteration, pyritization and silicification and all altered or replaced
conglomerate should be analyzed for gold, silver and arsenic values.
If the initial drilling results are favourable,
southeast or northwest across the property.
the drill program can easily be expanded to the
The property is readily accessible and a nearby creek is available to provide water for drilling
purposes.
August 15, 1999 Kelowna, B.C.
24
REFERENCES
Exploration in British Columbia, Ministry of Energy, Mines and Petroleum Resources 198 1,
pp 32-22; 1986, p. C27; 1988, p. C21.
Geology, Exploration and Mining in British Columbia, B.C.
Harrison, C.S.
1989:
Little, H.W.
1961 :
Meyers, R.E.
1988:
Department of Mines and Petroleum Resources.
1969, p. 294; 1970, p. 402; 1973, p. 47; 1974, p. 56; 1975, p. E21;
1976, p. E26.
Press Release, Seven Mile High Group Inc., Dec. 5, 1989.
Geology, Kettle River (West Half) British Columbia; Geological Survey of
Canada, Map 15 1961.
Preliminary Economic Geology of the Vault Gold Deposit; Exploration in
British Columbia 1988; I@nistry of Energy, Mines and Petroleum Resources,
pp. B5-B 13.
Morrison, M.S.
1992: Geophysical Assessment Report, Fort Knox Claim Group, Okanagan Falls
Area, Osoyoos Mining Division.*
1993 : Geophysical Assessment Report, Fort Claim Group, Okanagan Falls Area,
Osoyoos Mining Division.*
1994: Geological Assessment Report, Fort Knox Claim Group, Okanagan Falls
Area, Osoyoos Mining Division.*
1995: Geophysical & Geochemical Assessment Report, Fort Knox Claim Group,
Okanagan Falls Area, Osoyoos Mining Division.*
REFERENCES continued
25
Morrison, MS. (continued)
1995:
1996:
1997:
1997:
1997:
1999:
Geophysical Assessment Report, Rainbow Claim Group, Okanagan Falls
Area, Osoyoos Mining Division.*
Percussion Drilling Assessment Report, Fort Knox Claim Group, Okanagan
Falls Area, Osoyoos Mining Division.*
Geophysical and Geochemical Assessment Report, Lucky Star Claim Group,
Osoyoos Mining Division.*
Geological Assessment Report, Rainbow Claim Group, Okanagan Falls Area,
Osoyoos Mining Division.*
Percussion Drilling Assessment Report, Fort Knox Claim Group, Osoyoos
Mining Division.*
Geophysical Assessment Report, Fort Knox Claim Group, Osoyoos Mining
Division.*
*Assessment Reports filed with the Ministry of Employment and Investment
of British Columbia.
26
APPENDIX A
STATEMENT OF OUALIFICATIONS
I, Murray Morrison, of the City of Kelowna, in the Province of British Columbia., do hereby
state that:
1.
2.
4.
5.
6.
I graduated from the University of British Columbia in 1969 with a B.S. Degree in
Geology.
I have been working in all phases of mining exploration in Canada for the past thirty
Years.
During the past thirty years, I have intermittently held responsible positions as a
geologist with various mineral exploration companies in Canada.
I have conducted several geological, geochemical, and geophysical surveys on mineral
properties in Southern British Columbia during the past thirty years.
I conducted the geological mapping program outlined in this report.
I own 100% interest in the Rainbow l-4 & 7-10 mineral claims.
August 15, 1999 Kelowna, B.C.
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APPENDIX B
STATEMENT OF EXPENDITURES ON TEIE RAINBOW CLAIM GROUP
Statement of Expenditures in connection with a Geological Mapping Program carried out on the Rainbow Claim Group, located 24 km southeast of Okanagan Falls, B.C. (N.T.S. Map 82- E-6W) for the year 1999.
GEOLOGICAL MAPPING PROGRAM (50 hectares)
M. Morrison, geologist 3 days @? $3OO.OO/day
Truck, 4 x 4 (including gasoline 3 days @ $75OO/day and insurance)
Meals and Lodging no charge
Flagging and belt chain thread
$ 900.
225.
Sub-total: $1,150.
REPORT PREPARATION COSTS
M. Morrison, geologist 1% days @ $3OO.OO/day
Drafting
Typing
Copying
Sub-total:
GRAND TOTAL:
$ 450.
53.
107.
20.
$630.
$1,780.
I hereby certify that the preceding statement is a true statement of monies expended in
connection with the Geological Mapping Survey carried out May 15-17, 1999.
August 15,1999 Kelowna, B.C.
