Offer for investment or purchase of the Philgold quartz claims in the Klondike district, Yukon, Canada

Extract from the report of the investigation of Philgold claims

The Prospective claims are located in the Klondike district, 50 km south east from Dawson City and 550 km north west from the capital of the Yukon, Whitehorse.

Overview map of the site works

Overview map of the site works

Map Key

Map Key

Brief description of the Geological Structure of the Region

Brief description of the Geological Structure of the Region

Yukon-Tanana Terrane in the northern Stewart River map area consists of two main assemblages of supracrustal rocks as well as three distinct suites of metaplutonic rocks. Supracrustal rocks comprise the Late Devonian to mid-Mississippian Nasina assemblage and the mid-Permian Klondike Schist assemblage.

Rocks of the Yukon-Tanana and Slide Mountain Terranes are juxtaposed along mainly shallow to moderately dipping fault surfaces that are interpreted as regional-scale thrust faults.

Placer gold deposits are widespread throughout the Stewart River and southern part of the Dawson map areas, herein referred to as the ‘study area’ (and placer gold is the only mineral of economic importance to have been found, although there are rumours that platinum and diamonds have been recovered from several placers). These deposits include the world famous Klondike goldfields (Bonanza, Hunker, Eldorado, Dominion, Gold Run, Sulphur and Quartz creeks), the historic Fortymile River and Sixty Mile River goldfields (Little Gold, Glacier, Miller, Bedrock and Matson creeks), and well known placers along Black Hills, Scroggie, Barker and Kirkman creeks.

One of the nearest placer gold deposits to Philgold is

Dominion Creek (middle)

Intermediate-level gravel is being mined by Ace Placers near Jensen Creek. The gravel consists of 1m of reworked White Channel Gravel resting on schist and overlain by 1m of Dominion Creek gravel, which is overlain by 2- 3m of mud. The placer gold is mostly fine grained, flat and flaky, with some nuggets and attached quartz. It has a fineness ranging from 817 to 849.

There are over 60 occurrences and prospects of lode gold throughout the study area and almost all of these are vein deposits (Yukon MINFILE, 2003). Gold-bearing quartz veins in the Klondike River and Indian River drainage basins, which are thought to be the main source of gold for the Klondike goldfields (McConnell, 1905b, 1907; Knight et. al., 1994, 1999), were studied by Hoyman (1990) and Rushton (1991). Rushton (1991) and Rushton et al. (1993) concluded that the veins are mesothermal in origin and were emplaced in the earliest Cretaceous (Plate 1b). Goldfarb et al. (2000) and Goldfarb et al. (2001) classified these veins as ‘orogenic Au deposits’ and suggested that they may be part of the intrusion-related gold deposits of the Tintina Gold Belt (see British Columbia and Yukon Chamber of Mines, 2000). According to Goldfarb et al. (2001), Kula-Farallon Plate convergence initiated gold veining along western North America at ~180 Ma, which spread southward from Alaska, through central Yukon (culminating about 140 Ma in the Klondike) and into British Columbia.

The source of placer gold throughout most of the Stewart River andYukon River drainages basins has not been determined, and Dumula and Mortensen (2002) suggest that an undiscovered intrusion-related gold deposit similar to the Moosehorn Range area is present within the Thistle and Kirkman creek drainages. In addition, over 8200 kg (263,635 oz) of gold has been produced from the Brewery Creek mine located northeast of the Tintina Fault (Mineral Resources Branch, 2002). The gold is finely disseminated in epithermally altered Cretaceous monzonite sills and Paleozoic mudstone, sandstone, conglomerate and minor limestone (Diment and Craig, 1999), but apparently no placers are associated with the deposit.

Geology sites

 South-east block stamp YE71054 – YE71 058
The site consists of 5 stamps and is located 1 km from the  Dominion  Creek  (parallel to the stream), between Nevada streams (upstream) and Jensen (downstream).

All streams contain placer gold, the largest number in Dominion creek, having a length 17 km from its source to its confluence with Nevada.

Jensen Creek has a length of about 8 km and a less-developed valley and also produces placer gold. Nevada creek is about 5 km long but has less placer mining. According to published sources / GW Lowey / it is known that in historical times (100 years)  Dominion has produced more than 80 tons of gold, while the area of ​​ Klondike and Indian (a tributary of  Indian originates in the Dominion) has produced more than 300 tons of placer gold, the main source of which is believed to be quartz veins. According to Mortensen / U.K. Mortensen / area of ​​work is Klondike schist complex of Middle-Late Permian age, represented by quartz (and /or feldspar), muscovite, chlorite, sometimes with slates, quartz-muscovite-chlorite, muscovite, quartz, chlorite, quartz, graphitized quartz-muscovite schist, and marbles. Encountered on the site schists with garnet and amphibolites described in the same complex as Nazina suggest more ancient Devonian age rocks. In the eastern part of the job site (0.5 km from the southeast corner of the stamp) is Burnham intrusive of quartz to granite monzonites, pulled over shale complex of the Klondike. The boundary of the intrusive passes through the channel and the left bank of Jensen Creek. Burnham intrusive is less productive for placer gold, therefore, the main source of gold in Jensen is located on the right bank, where the Philgold claims are situated. Sites were selected by the presence of quartz veins, which have different orientations, but in general, have a north-western orientation and are located along the ridge between the streams of Dominion and Jensen and approx.. 1 km in distance from them. There are outputs and eluvial-talus deposits and amphibolites along the main directions of fragments of quartz veins, which are intensely silicified, fine-medium-grained structure, with limonite pseudomorphs sulphides (pyrite, perhaps, pyrrhotite and arsenopyrite). These bodies are probably metamorphosed diabase dykes and can be gold-bearing, because the latter are in relation to host rocks and faults parallel to the main direction of Tintina. Gold may be associated with sulfides, as well as shipping and handling associated with the later silicification. The same body of amphibolite is found along the strike (NW) 14 km from and locates at the beginning of All Gold placer gold.  Gold in quartz veins has a fineness of 817 to 849, according to the definition of placers in the Dominion and Jenson creek.

About 30 square kilometres of area was surveyed during the reporting period. The most promising sites for evaluation work were selected. Four samples were analyzed by atomic absorption method, by ICP MS – 4 samples. For the analysis results, see the annex to the report.

From these results four quartz-vein zones were identified, as well as prospective for the discovery of gold disseminated type of sulfide-quartz formations in the amphibolites.
The first quartz-vein zone in the south-eastern area of ​​the licensed Philgold YE71054 -YE 71058 are quartz veins of varying orientation, but generally in a north-westerly direction over a length of 2.4 km. The quartz veins occur at the top of the ridge between Dominion and Jensen Creeks, 1 km from both streams. Jensen Creek flows into the Dominion Creek which is also about 1 km downstream. The richest part of the scattering of Jensen Creek (judging by the scale of development) is located on the first extension of the quartz-vein zone, which then goes under the Dominion Creek, where the scattering is continuing and is being actively developed.
The quartz veins are white and brownish colours, translucent, icy and sometimes broken. There are shades of brown, due to the presence of limonite, which forms the veins to the first millimetre. In general it is dominated by milky-white quartz. The thickness is up to 2 m, according to the maximum size of the blocks, but more often about 1 m or less. Length of veins varies from a few tens to few hundreds of metres, which can be traced in outcrops and eluvial exposures. The slope of the veins is vertical of single measurements, where the contacts have been established. The number of quartz veins in quartz-vein zone may be several tens and hundreds, with their en echelon arrangement and the presence of parallel veins. In the northern section of the host rocks at the contact with quartz the veins are not broken, garnet up to 5 mm is printed on the walls of veins, indicating the metamorphic origin of it. In addition there are transversal vein orientations, besides the main north-west orientation of quartz veins of fixed meridional and latitudinal directions. The body of amphibolites lies parallel to the first quartz-vein zone which is probably a metamorphosed dibasic dyke which has a thickness of more than 8 m. The rock is composed of an aggregate of hornblende often radiating structure and quartz and also contains limonite, on average, 5%, with replacement of sulphides, predominantly pyrite, arsenopyrite and pyrrhotite. Indirectly, the presence of arsenopyrite confirms the presence of arsenic in ground samples, Dominion is in the source area of ​​the licensed area. Content of arsenic is one of the highest in the Klondike.
Host rocks plot is quartz-muscovite and garnet-quartz-muscovite schist, indicating a higher degree of metamorphism than the Permian shales, so the rocks may belong to the Devonian complex Nazina. Metamorphism leads to the enlargement of gold and its redistribution to the later vein formation, and therefore more promising are the more recent cross-sections of veins.
The source area of ​​the Gold in Dominion placer mines is mostly from the area of Philgold. Gold is predominantly thin, foliose and lumpy, but there are nuggets and the inclusion of visible gold in quartz / GW Lowey /. Foliose source of gold may not be only from fissures in the quartz veins but also from the surrounding shale.

A second quartz vein zone is located 2 km north-west of the first zone and parallel to it (about 500 meters towards the Dominion Creek) and is located along the watershed of Dominion Creek and Nevada Creek. Zone traced for 2 km, but the nudity is much smaller than in the license area and found a smaller number of the dismantling of quartz veins, most of them are located on the old road, which is slightly tipped due to being bulldozed. Disintegrated veins are located along the body of grey quartzite, coarse-medium-grained structure, with limonite length of about 500 m. The host rocks are quartz-biotite-muscovite schist. In the north-western part of the second quartz-vein zone at the top of the watershed are observed ferruginizated amphibolites similar to those encountered in the first quartz-vein zone.
A third quartz-vein zone is located 300 meters from the Dominion Creek near the road and the bridge over the Champion Pup Creek. The two vertical veins have capacity of 1.2 m and 1.4 m, the metre of wall rocks between them were found in construction of a secondary road, 10 meters from the main road. Relatively to the first and second quartz vein zones, having the north-west strike, the third quartz vein is most likely the cutting, because the orientation of the radical-lying is almost east-west (100 °). The veins consist of clear to milky quartz and ferroan carbonate and contain traces of pyrite.
Quartz is white, with numerous veins of limonite and hematite from 0.5 mm in length up to 30 mm, in which there are relics of pyrite and pyrrhotite up to 3 mm, the radiant crystalline separation of malachite. Enclosing quartz-muscovite schist has limonite. Layered alluvial deposits with a thickness of 1.5 m exposed in the other board road excavation. Here is the claim YE 71053.
The fourth quartz vein zone is located 1 km from the first quartz-vein zone, 50 m from the road and 500 m from the Dominion Creek. From here in a north-west direction is a second quartz-vein zone. A quartz vein with thickness of 0.3 m was found in the root occurrence in the clearing near the road. Quartz is reddish due to the admixture of hematite. The orientation of the veins is 160o. Host rocks are garnet-quartz-muscovite schist with quartz metamorphogenic perforation. The orientation of the vein zone coincides with the orientation of the Dominion Creek and the area seems to fall under alluvial part in the 200 metres north-west and passes under it for about 2 km.

Thus, based on structural conditions and modalities for developing the most promising areas are the sections of quartz-vein zones one and three. The second is less promising, and belongs to the second stage due to the poor nakedness and further away from the main road (from 1.2 to 2.5 km.) Upon receipt of a positive result on the first quartz-vein zone assessment work should be carried out on the second. The fourth quartz-vein zone has limited prospects due to the fact that it was near the bend in the road so that the strike at both sides leaves under the road and then under the Dominion river valley, but in geological terms is highly promising.

The way forward

Since the licensed area may include several parallel quartz-vein zones not exposed on the surface, the first stage is expected to be trenching the entire width of the stigma, about 450 meters long by 400 m. The depth of the trench would be 2-3 m (without the use of blasting). The length of the second and subsequent trenches can be optimized based on the presence or absence of quartz-vein zones, except the well-known zone in the first trench, the total expected sinking of seven of the first stage of trenches and a trench on the separately located hallmark YE710053, which can pass the first stage in the case of promising quartz-vein zones in the gutter of the first stage. It is planned to have excavation trenches of 3150 m in the first stage (without optimization).
Total to perform appraisal work for the first phase would require $ 400 000.

The second step is tracking the identified ore zones from the surface and at depth. It is assumed trenching across the strike of the ore zones within 40 m from 20 m sections of detail, only 500 m and 200 m trench excavation to determine the distribution patterns of gold and ore ratio. Total – 700 m. Total to perform appraisal work for the second phase would require $ 600 000. Implementation of stages 1 and 2 appraisal work is available in one field season, and in this case will save on salaries and travel expenses. Exploration work carried out as necessary after the assessment process and includes trenching, pits, wells, tunnels, testing, analysis and information processing. The estimated cost of 1-2 million dollars.

Calculation of resources

Block stamp YE71054 -YE 71058 Calculation of inferred resources of area 30 km2. Calculation of inferred resources surveyed in the area between the Dominion and Jensen Creeks of length 10 km and  width of 2 to 4 km (average 3 km): 10000m * 3000m * 100m (depth) * 2.6 * t/m3 1g / t * 0.03 = 78 m. The coefficient of ore 0.01 accepted as the probability of discovering a single quartz vein with thickness of 1 m to 100 m. The average concentration of 1 g / t probable reserves of 78 tonnes to a depth of 100 m to 200 m, respectively, 156 m. Calculation of inferred resources of block of claims YE71054 – YE71 058 Quartz-vein zone length 2350 m identified on the licensed area. The total thickness of the quartz veins is 3 m. The distribution of gold is extremely uneven, the content received 2.5 g / t by analogy with explored fields of Lone Star, located 30 km northwest of similar geological setting. Reliability coefficient is taken at 0.5. Calculation of inferred resources is: 2350m * 100m * 3m * 2.6 * 2.5 t/m3 g/t * 0.5 = 2.3 m to Ch. 200 m, respectively, 4.6 m. Claim YE71053. Identified were two approximate quartz veins in the claim, which may be part of a cross-section of quartz vein zones oriented in the direction of sublatitudinally. With the length of the vein zone of 470 m (the length of the stigma), the total thickness of the quartz-vein zone is 2.5 m, the content of 2.5 g / t by analogy with explored fields of Lone Star, the reliability coefficient of 0.5 resources by category P2 will be: 470m * 100m * 2.6 m * 2.6 * 2.5 t/m3 g / t * 0.5 = 0.4 m to Ch. 200 m, respectively, 0.8 m. Total number of inferred resources by category P2 is 2.7 m. to a depth of 100 m and 5.4 m to 200 m.

Inferred reserves of gold (t) in the area between the Dominion and Jenson Creeks

Table 4.1

depth, m Area 30 km2 claims
100 78 2,7
200 156 5,4

Contact Information

For further information or to discuss pricing criteria please contact -  Philip.lock@blueyonder.co.uk