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Dawson City area
Yukon Territory
Dawson Mining Division
NTS 115 O/14,15 and 116 B/3
centered at
63° 54= North Latitude
139° 14= West Longitude
(Lone Star Mine)
for
Klondike Star Mineral Corp.
Vancouver, B.C.
by
Phil Van Angeren P.Geol.
January 14, 2004
LONE STAR PROPERTY; DAWSON, YUKON TERRITORY
The Lone Star property is located 20km SE of Dawson City, within the Klondike region of NW Yukon Territory (Figure 1). This report covers a block of 302 claims which represents the core of the Lone Star property. The author has not documented the current claim ownership particulars.
The main Lone Star claim block encompasses the headwaters of Bonanza and Eldorado Creeks, the two richest placer creeks in the Klondike (Figure 1a). These two creeks are responsible for more than half of the 12 million ounces of placer gold reported to have been produced in Klondike since 1896. The Lone Star Mine, which is a 105m long open cut located at the centre of the claim block, is the only known significant lode occurrence in the Klondike. Production (1912-14) amounted to 7700 Tonnes grading 5.07gm/T (0.148 oz/t) gold by amalgamation before being shut down by WWI. Significantly, the mine is situated at the height of land between Eldorado and Upper Bonanza creeks which together produced more than 3Moz of placer gold.
The project hosts several large mineralized structures containing numerous commercial-grade intercepts, yet it remains under-explored to this day. The exploration targets outlined to date on the property belong to the "epigenetic" group of mineralized structures, a class of structures which boasts potential for large, medium-grade gold deposits. Each target is large enough that it can be segregated and explored as a separate project. Mineralization found so far reaches from surface to 150m depths, and is open in all directions. Values typically reach several grams per Tonne over 5 to 20 metres.
It is this author's belief that Lone Star represents a major gold exploration asset with tremendous upside potential. Exploration will be focused on existing mineralization and on potential for new reserves, using a solid work program based on sound exploration approaches and on continuity of exploration.
Lone Star is underlain by a Permo-Triassic island arc edifice which subsequently underwent burial metamorphism and thrust faulting (Jurassic). Some of the felsic volcaniclastic rocks and/or structures therein, are believed to have been mineralized with gold during edifice buildup and during metamorphism. This was followed by intrusive activity and uplift during the Cretaceous, resulting in brittle deformation and in widespread formation of dilatant fractures and crosscutting shears. At this time, mesothermal fluids flooded the schists, yielding localized mineralization in dilatant quartz-veins and in the shear zones. Gold in these veins and shears may have been scavenged from the pre-existing mineralization. The scavenged gold was recrystallized in nugget-form; nuggets which were subsequently eroded to form part of the Klondike placers during the Tertiary period.
Modes of precious metal mineralization are varied in the Klondike. Three models are currently recognized: 1) "fossil" primary mineralization (Permo-Triassic epigenetic environments), subsequently metamorphosed, 2) shear-hosted mesothermal stockworks (Cretaceous) and, 3) dilatant quartz veins (metamorphic scavenging; Cretaceous). The first form of mineralization dominates. To date, three separate mineralized zones have been identified on the property (Figure 2). These are the Boulder Lode, the Buckland Shear and the 27-Pup Horizon. Boulder Lode and 27-Pup belong to the first style of mineralization, whereas the Buckland Shear represents the second form. Although the third form of mineralization is locally abundant and of high grade, mesothermal quartz veins are individually of little economic consequence due to their small size and erratic grade. However, any cluster of such veins should be examined for their Ahigh-grade@ potential. Such a scenario may exist at the Nugget Target (NUGG).
An important feature of precious metal mineralization at Lone Star, is the characteristic "nuggety" nature of the contained gold. The gold is known to occur as scattered clusters of micro-grains in schist and quartz. This situation is probably a result of metamorphic remobilization. This "nugget effect" bears tremendous consequence in regards to exploration activities at the property.
1- Boulder Lode: The Boulder Lode is located at the headwaters of Victoria Gulch, 7-Pup, and O'Neil Gulch, all of which are feeders to the rich Upper Bonanza placers (>1Moz historical production; Figures 1a and 2). Boulder Lode represents, by far, the most important mineralization on the property. It is a large fossil epigenetic structure, comprising two 5-25m thick horizons of siliceous sericite schist enclosed within metamorphosed volcano sedimentary strata. Gold is mostly constrained to the sericitic units, with no obvious pathfinder elements or minerals. Partially exposed over 1.0km, this feature is blanketed by a 3.8 km long gold soil anomaly. Mapping has shown that mineralization is traceable for more than 600m NW beyond the Lone Star Mine (BLLD zone). Grades of up to 7.67 gm/T Au (0.224 oz/t) over 20m & 4.75 gm/T (0.138 oz/t) over 11m (trench), and 10.76gm/T (0.314 oz/t) over 5m & 2.50 gm/T (0.073 oz/t) over 15m (drill cuttings) have been obtained near the open-cut. At the NW end of the exposure, grades of up to 1.26 gm/T Au (0.037 oz/t) over 10m (trench), and 3.97 gm/T (0.116 oz/t) over 6m (drill cuttings) are seen. Mineralization found so far reaches from surface to 50m depths, and is open in all directions.
2- Buckland Shear: The Buckland Shear occurs adjacent to Eldorado Creek and is believed to be in part responsible for the >2Moz of nuggety placer gold deposits found there (Figure 1a). Gulches draining through the Buckland Shear were gold-bearing, whereas those on the opposite side of Eldorado Cr. were not. This is a Cretaceous-aged arseniferous shear zone which is 3-13m wide, and traceable for more than 3km (Figure 2). It is weakly altered (sericite + carbonate) and is often accompanied by small, discontinuous, auriferous, mesothermal quartz veins. Grades of up to 6.79gm Au (0.198 oz/t) over 5m (drilling) and 1.71 gm/T (0.050 oz/t) over 13m (trench) have been obtained from a 400m long stretch of the structure at Gay Gulch (BUKS zone). Mineralization found so far reaches from surface to 150m depths, and is open in all directions.
3- 27-Pup Horizon: The 27-Pup Horizon also occurs adjacent to Eldorado Creek and may also be in part responsible for some of the placer gold found there. It is unclear whether it represents a foliated "alteration zone" or "exhalative horizon". It is a fossil structure with auriferous volcanogenic massive sulphide possibilities. More than 3km long and up to 50m thick, it contains up to 1.40 gm/T Au (0.041 oz/t) with very high concentrations of silver, mercury, and base metals, over widths of 14m. It is open in all directions.
4- Victoria Gulch/7-Pup Area: Two separate sericite and chlorite alteration zones with possible auriferous sulphide possibilities. They are characterized by disseminated argentiferous galena/sphalerite with 0.01-0.04 oz/t Au over widths in excess of 30m (drilling).
5- Nugget Target: The Nugget Target is located near the Buckland Shear at OroGrande Gulch (NUGG; Figure 2). The Nugget Target is best described as a band of sparsely-distributed "pockets" of quartz-veined schist roughly paralleling the Buckland Shear near its NE edge. The narrow, discontinuous, cross-cutting, mesothermal quartz veins rarely exceed 15cm in width and 15m in length, yet they often contain high-grade gold (to 7.9 oz/t). Several of these veins may run en-echelon to each other across a distance of 10m. Nugget Target may represent satellite and/or splay veining associated with the Buckland Shear, possibly where it intercepts older structures.
The Lone Star project hosts several large mineralized structures containing numerous commercial-grade intercepts. All three metalliferous zones (Boulder Lode, Buckland Shear, 27-Pup Horizon) occur in unique stratigraphy at the heart of the richest placer ground in the Klondike. One can easily conclude that these zones were responsible in some way for some for the placer deposits found in Bonanza and Eldorado Creeks.
All three features are of great areal extent with excellent opportunity for the existence of multiple mineralized zones, along both strike and dip. They belong to the "epigenetic" group of mineralized structures, a class of structures which boasts potential for large, medium-grade, bulk-tonnage ore bodies. Based on historical evidence, these structures may also contain smaller, higher-grade pockets of mineralization amenable to "high-grading" exploitation. Each target at Lone Star is large enough that it can be segregated and explored as a separate project in itself. All three zones demand additional systematic trench and drill exploration laterally and down-dip from known zones of mineralization. Crosscutting mesothermal quartz veins offer little in way of potential ores by virtue of their limited size and discontinuous mineralization, but clusters of such veins may be approached for a high-grade scenario.
It is this author's belief that Lone Star represents a major gold exploration asset with tremendous upside potential. Exploration should be focused on existing mineralization and on potential for new reserves, using a solid work program based on sound exploration approaches and on continuity of exploration.
Lone Star benefits from near-surface mineralization, excellent road-accessibility, little or no environmental sensitivity, simple metallurgy, and excellent logistical and mining infrastructure, making the project amenable to low-cost exploration.
Synopsis:
Lone Star's most pressing need is for compilation and digitization of all available historical data. Boulder Lode and Buckland Shear need a program of systematic, close-spaced diamond drilling of their known mineralized zones. The lateral extensions of both zones demand basic exploration (mapping, trenching etc), as does the 27-Pup Horizon. Finally, sampling and assaying procedures employed in the "nugget-effect" environment present at the Boulder Lode should be fine-tuned. Bulk sampling is certain to provide reliable results. For this reason, mini-bulk sampling is recommended for portions of all three mineralized horizons in 2004. Once ore zones are defined by this program of drilling and sampling, they can be marked for large-scale bulk sampling in the next phase of exploration.
Requirements for Lone Star 2004
Budget and plan for a 10 month program to include compilation, preparation, mapping, ~500m of trenching, 10 mini-bulk samples, and 12,000m-20,000m of diamond drilling. The field program should be completed by the end of August 2004. This program (mapping & drilling) could conceivably be followed with a decision regarding large-tonnage bulk sampling of any outlined gold resource; a decision entirely dependent upon results of the patterned drilling of the Boulder Lode and Buckland Shear.
Phase I: Obtain and prepare base maps. Transfer historical data to base maps. Data compilation and analysis. Field program preparation (3 months: February-April).
Phase II: Regional mapping (1:10,000). Trenching. Drilling. Mini-bulk samples. (4 months: May-August).
Phase III: Program cleanup, Data analysis, Reporting, Presentations, etc. (3 months: September-November)
Respectfully Submitted,
Phil van Angeren P.Geol
I, Phil van Angeren, residing at 2123 Deerside Dr. S.E., Calgary, Alberta hereby certify that:
Phil van Angeren P.Geol.
January 14, 2004