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Kempt and Cowan Gold Mines


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Green Light Resources GR.v Nova Scotia Canada

Green Light Resources GR.v Nova Scotia Canada

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  • 1. AR 94-051 A Report on the Geology and Development History of the KEMPTVILLE GOLD PROPERTY of Ashgrove Energy Limited, License #00196, NTS Claim Map 21A/04B, Yarmouth County, Nova Scotia for Ashgrove Energy Limited by Milton C Graves, Cuesta Research Limited Cuesta Research Limited 154 Victoria Road Dartmouth, Nova Scotia B3A 1V8 902-469-4763 _ Cuesta Research Limited 1 August 25, 1994
  • 2. AR 94-051 A Report on the Geology and Development History of the KEMPTVILLE GOLD PROPERTY of Ashgrove Energy Limited, License #00196, NTS Claim Map 21A/04B, Yarmouth County, Nova Scotia for Ashgrove Energy Limited by Milton C Graves, Cuesta Research Limited Cuesta Research Limited 154 Victoria Road Dartmouth, Nova Scotia B3A 1V8 902-469-4763 Cuesta Research Limited 1 August 25, 1994 Dilul lP’lL| l(-JATE AVAILABLE
  • 3. A. TABLE OF CONTENTS B. Summary 3 C. Introduction 3 D. Property description and location D-1. Description D-2. Location E. Accessibility, climate, local resources E-1. Access E-2. Topography and Relief E-3. Climate E-4. Local resources F. History G. Geology G-1. Bedrock geology G-2. Surficial geology 10 H. Mineral deposits and their state of development H-1. Nova Scotia gold deposits 10 H-2. The Kemptville property 12 1. Reserves and production 15 J . Conclusions and recommendations with cost estimates J-1. Possible targets 15 J-2. Exploration plan . 16 K. References 19 24 25 ll«l>-P-B L. Author's certificate M. List of Figures and Figure captions Cuesta Research Limited 2 August 25, 1994
  • 4. B. SUMMARY The Kemptville gold property of Ashgrove Energy Limited has seen at least 2000 troy ounces of gold production since its discovery in 1881. To date the property has received inadequate evaluation due primarily to areas of deep surficial overburden. A systematic exploration program using modern magnetic survey techniques, till-bottom sampling, and diamond drilling could efficiently assess the potential of a continuation of gold grades in the vicinity of 15 grams per tonne (as indicated by historic production figures). The geology and mineralization here warrant a more complete evaluation. A drilling programme by the Millmor Syndicate in 1975 provides a preliminary look at the boundaries laterally and at depth of the old workings and a 22 foot drill intersection of 0.30 oz Au/ ton has been reported for one of the holes in this programme. However, assays and drillcore for the 1975 work have not been recorded adequately for evaluation of potential. Drilling by Acadia Mineral Ventures and Seabright Explorations in 1989 to the immediate north of the property returned visible gold from bedding-parallel veins in two drill core. Regional exploration (soil and drift anomalies for gold and arsenic down—ice to the south) surrounding the property in the late 1980's indicated significant gold potential on the property. C. INTRODUCTION - terms of reference This report was prepared to describe the present status of the Kemptville property as defined below. A program of exploration is set out in the conclusions of this report to more completely evaluate this property primarily for its potential as a gold producer. The property was not visited during this work though the property has been visited by the author in the past. The property was assessed through use of the geological literature and mapping; the records and assessment files of the Nova Scotia Department of Natural Resources in Halifax, Nova Scotia; and the professional experience of the author in assessing similar gold deposits in southern Nova Scotia. In addition the status of the property with respect to the Nova Scotia Mineral Resources Act was confirmed at the offices of the Nova Scotia Department of Natural Resources in Halifax. This report is an update of a previous report made on this property in 1986 for assessment purposes and revised in 1987. D. PROPERTY DESCRIPTION AND LOCATION D—l. Description The property is that covered by Nova Scotia Department o_f Natural Resources Licence #00196 last renewed August 28, 1993 registered to Ashgrove Resources Limited of Dartmouth, Nova Scotia. The current registration is valid until August 28, 1994. Licence #00196 is composed of Claims. E, F, K, L, M, O, P of Tract 44, on claim map 21A/04B. The area is illustrated in Figure 1. ‘ These claims will be referred to in this report as the Kemptville Property and cover the Cuesta Research Limited 3 August 25, 1994
  • 5. area of the Kemptville gold district as surveyed by the Nova Scotia Department of Mines in the early 1880's. They must not be confused with the nearby East Kemptville property, a recently closed tin mining operation. D-2. Location The seven claims are all within tract 44, map sheet 21A/04B. They are in the north central part of Yarmouth County at the southeastem end of Nova Scotia. The claims are all at the southeast end of Kempt Back Lake also known as Crawley Lake just to the northwest of the village of Kemptville. E. ACCESSIBILITY, CLIMATE, LOCAL RESOURCES E—l. Access The claims can be reached easily by road. Major air carriers serve Halifax Intemational Airport several times daily and a regional carrier serves Yarmouth. Yarmouth is 320 kilometres southeast of Halifax by highways 101 or 103. The claims can be reached from Yarmouth by taking highway 340 to the village of Carleton and tuming east on the Carleton. Road to the village of Kemptville. The claims are reached by several woods and cottage roads to the west of the main road from the village of Kemptville. E-2. Topography and Relief The claim group occupies an area of rolling topography. The relief across a 1.7 kilometre traverse from Crawley Lake (Kempt Back Lake) at the northeast of the claim block to the southwest comer of the block ranges from 40 meters to 95 meters above mean sea level. Drainage is by several small streams to the northeast into Crawley Lake (Kempt Back Lake) which in turn empties into the Tusket River which flows to the south just to the east of the claim block. Both drainage and topography are controlled by the glacial geology of the region. Many of the hills in and surrounding the claim block are drurnlins and the shapes and distribution of the lakes are also controlled by these glacial features. Outcrop is limited to major stream banks and artificial road cuts as well because of the influence of glacial and post-glacial sediment cover. E-3. Climate The climate of the property is temperate and maritime much as the rest of the southern “portions of Nova Scotia. Nearby Yarmouth has approximately 1200 mm of precipitation per year spread relatively evenly throughout the year. Snow can cover the ground for parts of five months of the year. The mean annual temperature for Yarmouth is approximately 7°C. Cuesta Research Limited 4 August 25, 1994
  • 6. .. €e%. ._ ¢___>EEov_ 05 .5 . mo2== :ow 05 on uo~mo_u: _ was «new _mo_w>: aoem tam _no_Ew: uoou . __oF_. .: o=Eo_axm Emtnmwm cam wo= z:o> m_umu< _o aoo_o. .n cozfloaxo mum _. -Bmr .0 amen m_ .603 m: __u: =o: :w . .€o%a m___>_aE3_ .8 : o=auo. _ - — 9:2”. . . :2.m_Eo Z >: w_Em: oowO __ow Emma. - 9.3 m: =.E: oE . . r . I 5.5 . mw: e.tu>fim » August 25, 1994 Cuesta Research Limited
  • 7. 65°50‘ Legend , , KB8701 B Shaft 0 1987 Drilling / . - / ————~ l o KB8702 / g_—_—: j__ Soil Anomaly ! A r”‘-’ "K N , ’ Kemptville ’ ‘ ’ Gold Mines K 44°03‘ / // . W = ' ":7- "= :—= "-7; I .1—'—u‘= ==—- — / 2.: ---—" _—. N , ..: ._— -—_‘__: ' Kemptville Road fi_. ... Figure 2 - Kemptville property showing results of exploration activity of this and surrounding properties during the 1980's. Cuesta Research Limited 6 August 25, 1994
  • 8. E-4. Local resources The economy of the Kemptville area rest primarily on wood, limited agriculture, and the raising of fur animals. Tourism especially in the form of outdoor recreation is seasonally . important. The nearby trade and tourist centre of Yarmouth employs many of inhabitants. Rio Algom rrrined the East Kemptville tin deposit from 1985 until 1992. This open cast mine is located 12 kilometres to the east has been an important factor in the local economy and a potential source of local mining expertise and labour. F. HISTORY Information on the history of development and exploration on the Kemptville property are found in the annual reports of the Nova Scotia Department of Natural Resources from 1882, E. R. Faribault (1920), W. Malcolm (1912, 1920), and W. E. Hale (1981). Faribault and Hale provide original information and summarize the work of others. Much of this report relies on their contributions. Recent work on the property is presented in Lockerby (1985) and Mercer (1988). A major project by Acadia Mineral Ventures Limited and Seabright Explorations Incorporated was done in 1988 and 1989 surrounding the property. The work on this project immediately adjacent to the Kemptville property is reported by Bourque (1988, 1989) and Rankin (1989). The workings of the Kemptville gold district are localized at two locations about 600 meters apart and separated by boggy ground and heavy drift cover: the Kempt workings on the shore of Crawley Lake (Kempt Back Lake) in the east and the Cowan workings along strike to the west. _ Gold was discovered at the south of the Kempt workings in 1881. Development was intermittent from 1882 to 1915 as described by Faribault (1920). All of the production from the district comes from this period of its history. In all 2000 troy ounces were reported as produced with 1885 and 1902 being the most important years. During this time the Kempt and the Cowan mines were developed and most of the recorded production was from these two operations. The three largest milling facilities were all destroyed by fire after only short use in 1885, 1905, and 1906. It is difficult to assess the efficiency and orderliness of the district's development (as it was for Faribault in 1920 with much more information from interviews with the miners). Work in this initial period centred on the Cowan and Kempt workings. The main part of the Cowan workings in the west were made up of four shafts, the deepest of which was 50 meters deep. Most of the work was on the Cowan vein along a length of about 60 meters. The main part of the Kempt workings in the east were a series of shafts to a depth of 85 meters. Most of the work here was on the Black vein along a strike length of about 60 meters. Faribault reports that the rrriners in the district considered that the Cowan vein and the Black vein were the same vein and showed it as a continuous vein in his map of the district. The next reported work on the Kemptville property is from 1937 to 1939 (Lawrence, 1937; Hale, 1981) when trenching and some hunted reassessment of shafts was performed. No production or results of sampling is reported from this period. The Nova Scotia Department of Mines and Energy reported minor surface work from Cuesta Research Limited 7 August 25, 1994
  • 9. 1940 to 1946, but other than notes on the nature of individual workings, no details are available. (See Hale, 1981 for a summary this period. ) From 1960 to 1963 some trenching and the retimbering of a shaft in the area of the Kempt workings was undertaken (Hale, 1981) but again, the results of this work are not reported in the files. In 1975 the Millmor Syndicate drilled six boreholes (Hudgins, 1975) located on Figure 3. Handwritten logs were submitted to the Nova Scotia Department of Mines and Energy and assays are commented upon in the report but no values are provided in the assessment file. Typed copies of these logs can be found in Graves (1986). In 1981 the Kemptville property was assessed as part of a much larger claim block by BV Property Management Ltd (I-Iale, 1981). The report of this work provides a good summary of the property in its regional context. No actual exploration work is reported. Lockerby (1985) reports prospecting over the property but no analyses are reported. Graves (1986) provides an exploration and development summary and work proposals, but again no new exploration is reported. A 100 metre grid was cut over the entire property in the summer of 1988 and total field magnetic and VLF-EM ground surveys were done over the grid (Mercer, 1988). No follow-up of this work has been done. ‘ From 1987 to 1989 exploration was done immediately adjacent to the property as part of the large Kemptville—Ogden Project of Acadia Mineral Ventures Limited and Seabright Exploration Incorporated. Drift prospecting duplicated the historic finding of gold values in drift immediately south (down—ice) of the property (Bourque, 1988). A soil geochemical survey on large grid from the south and west boundaries of the property to the southwest produced a significant gold and arsenic anomaly immediately southwest of the property. This was confirmed by follow-up backhoe-pit soil samples (Bourque, 1988). Ground magnetic surveys were used in conjunction with airborne regional surveys of Shell (1977). Regional VLFQEM and magnetic anomalies transect the property on either side of the anticlinal structure along which the mineralization occurs but it is noted that resolution is low due to the orientation of the transmitting station in Maine to the structural trend of the strata (Bourque, 1988, page 27). IP was also done to the southwest of the property with no interpretable result (Rankin, 1989a). Two linear magnetic anomalies found in the regional airbome magnetic survey of Shell (1978) were confirmed and more closely outlined by both the Acadia/ Seabright and the Lotus surveys. The northern, and best defined runs through most of the old workings at both the Kempt and Cowan sites. The second is parallel and south of the first and converges toward it to the northeast. Both anomalies are parallel to the strike of the bedding. The pattern suggests a bedding controlled feature defining a north-plunging anticline (suggested in the text of Rankin, 1989a and indicated on the map of Bourque, 1988). The program in the immediate area of the property culminated with the drilling of five holes along strike to the northeast of the property. The target area was marked by soil geochemistry anomalies from the area immediately down—ice (south) of the anomaly that marks the continuation along strike of the trend of the workings in the Kemptville gold district. The two holes were drilled from the same set-up immediately adjacent the property approximately 130 metres west of the northeast comer of the Kemptville property and only 30 metres north of the northern property boundary. Both were reported to have visible gold in bedding—parallel veins. Cuesta Research Limited 8 August 25, 1994
  • 10. The drill logs of these holes are comprehensive and thorough assays were done. Unfortunately whole NQ core was assayed so that the core cannot be re—examined to follow up the results G. GEOLOGY G-1. Bedrock geology The southern part of Nova Scotia, south of the Glooscap Fault, has a different fossil fauna and a different deformational history than the northem part of the province. The rocks of the southern half of Nova Scotia consist of a thick Cambrian to Devonian metasedimentary sequence with minor metavolcanic units metamorphosed during the Acadian orogeny in the Devonian and subsequently intruded by large post-orogenic Devonian batholiths. Most of the gold produced in Nova Scotia has come from concordant groups of quartz veins in the oldest and most extensive metasedimentary unit of this domain. Gold deposits appear to be restricted to greenschist facies rocks (Taylor and Schiller, 1966). Overlying the lower Palaeozoic rocks is a younger post-orogenic package of rocks typified by red-bed clastic rocks of Carboniferous and Triassic ages. Glaciation has destroyed any pre—glacial placers and only traces of gold have been reported from post-glacial placers. ‘ The lower Palaeozoic rocks of southern Nova Scotia are a thick sequence of metamorphosed flyschoid quartz wackes and shales of the Meguma Group of Cambro—Ordovician age (Schenk, 1970; Crosby, 1962) which outcrop over about 15,000 square kilometres. These are the oldest exposed rocks of the Meguma domain and are divided into the lower Goldenville Formation, consisting dominantly of quartz—rich greywacke and interbedded slate (the slate interbeds generally increase in thickness and number toward the top), and the overlying Halifax Formation, which is thinly laminated slate with small amounts of interbedded siltstone and wacke. The boundary between the two formations is sharp to gradational. The primary sedimentary structures and bedding sequence suggest that deposition of the bulk of the Meguma Group was by turbidity currents (Schenk, 1970, 1971). Current direction measurements indicate a source for the Meguma Group to the south and east of the present terrain (Schenk, 1970). The mineralogical compositions of the Meguma rocks indicate a cratonic provenance. There is no direct evidence of a volcanic or volcaniclastic contribution. The stratigraphic thickness has been variously estimated from 5.5 to 8.5 km (Faribault as per Malcolm, 1912; Taylor, 1967, 1969; Smitheringale, 1973). The Meguma Group is conformably or disconforrnably (Taylor, 1965; Lane, 1980) overlain to the northwest by Silurian and Early Devonian metasedirnentary and metavolcanic rocks (Lane, 1980; Crosby, 1962; Jensen, 1975). This lower Palaeozoic section has been regionally metamorphosed, mostly to greenschist grade (Taylor and Schiller, 1966; Muecke, 1979). The lower Palaeozoic rocks exhibit a homogeneous deformational history (Fyson, 1966). Burial has produced well-defined compaction structures and bedding-plane fissility (So). Tectonic stress conditions have produced folds (P1) with wavelengths in the order of 2 to 8 km (with axes trending northeast in southern Nova Scotia, curving to east-northeast, and finally to east toward Chedabucto Bay) and a penetrative axial—plane slaty cleavage. Later stresses produced minor kink folds (F2 and F3). Faults and fractures are related to F2 and F3 conditions. Cuesta Research Limited 9 August 25, 1994
  • 11. Intruding these deformed lower Palaeozoic rocks are large post—tectonic batholiths of Middle Devonian age (Clarke and Halliday, 1980; Reynolds, et al, 1981). These granitic rocks are related to each other genetically (MacKenzie and Clarke, 1975). these intrusions cut all of the lower Palaeozoic rocks of the Meguma zone, truncate the large-scale folds, and their aureoles overprint the regional metamorphic minerals. The Kemptville gold property is underlain wholly by Goldenville Formation and the gold-bearing quartz veins are contained within interbedded metawackes and slates of this unit. The property is within a greenschist grade area surrounded by higher grade rocks. The structure is that of a fold limb, all beds dipping to the north between 35 and 75 degrees (Faribault, 1920; Taylor, 1967; Hale, 1981). Though different fault-related lineations were reported from air photo interpretations by Hudgins (1975) and Hale (1981) and drill intersections of sheared rock reported by Hudgins, only small offsets of the veins are noted by Faribault (1920). Bourque (1988) and Rankin (1989a) report an overturned anticlinal axis to bisect the property just to the southeast of the old workings. Nearly parallel but northeasterly convergent magnetic anomalies defme this structure clearly (airborne data of Shell, 1978; ground survey data of Bourque, 1988 and Mercer, 1988). The strata dip similarly to the north throughout the property, thus such a structure is overturned. Presumably an anticline was chosen because of the common association of beddir1g—parallelquartz-vein arrays with Meguma anticlines as neither project report confirms the structure with structural geological measurements. G—2. Surficial geology The surficial geology has been important in the history of the development of the Kemptville property. The centre of the district remained undeveloped and relatively unexplored even though mineralized float was reported to Faribault (1920) because of being covered by heavy drift and poorly drained ground. The eastem margin of the old workings is cut of by Crawley Lake (Kempt Back Lake) which has no outcrop along its banks (Faribault, 1920; Hale, 1981) and cut of to the south and the west by drurnlins of very thick drift. Hale (1981) provides an adequate review of ice direction information which has been very important in assessing drift prospecting, soil and drift geochemical survey results, and till-bottom sampling programs in recent exploration for base metals in southwestem Nova Scotia (see also Stea and Grant, 1982). H. MINERAL DEPOSITS AND THEIR STATE OF DEVELOPNJENT H-1. Nova Scotia gold deposits Most of the gold produced in Nova Scotia has come from concordant groups of quartz veins in the oldest and most extensive metasedimentary unit of southem Nova Scotia: the Goldenville Formation. Gold deposits appear to be restricted to greenschist facies rocks (Taylor and Schiller, 1966). The following discussion of the gold in southem Nova Scotia is largely drawn from the author's own investigations (Graves and Zentilli, 1982) The gold-bearing veins of southem Nova Scotia are known from over 60 districts, about Cuesta Research Limited 10 August 25, 1994
  • 12. 20 of which had significant production, in the context of total production of about 2 million troy ounces. They occur in parallel groups on limbs or at crests of F1 anticlines within the rocks of the Meguma Group. These sets of veins are approximately 10 to 20 km apart along the structural trend defined by F1 folds and 5 to 10 km apart across this trend. The largest sets of veins are at domes in F1 folds as at the Goldenville district, which accounted for 20 per cent of the province's reported production of gold. An individual vein most commonly occurs concordantly within or at either margin of a slate bed. _The width of the slate bed is less than that of the metawacke beds above or below. _A vein varies between a few millimetres and a few metres in thickness, and several can occupy one slate bed. The veins are remarkably continuous, though commonly cut by minor, later faults of small displacement. Individual veins less than one metre in thickness have been worked more than 2 km along strike and up to 500 metres down dip. Veins surrounded by slate are often buckled into small-wavelength folds. The attitude of these folds is similar to the attitude of veins adjacent to metawacke beds which are folded into F1 folds, as are the metawacke beds. Furthermore, these folded veins deflect the cleavage as they would if folded before cleavage formation. This tight buckling of veins within the slate beds has greatly increased the amount of vein material in a given volume of rock and hence mechanically enhanced the grade. The sequence of events indicated by these field observations is then: (1) vein crystallization, followed by (2) folding, ending with (3) fixing of axial—plane slaty cleavage defined by greenschist metamorphic minerals. The granitoid batholiths were clearly emplaced after this sequence. The vein minerals typically have open-space-filling textures. Carbonate makes up 10 to 20 % of the vein by volume at the walls and quartz is the dominant vein mineral in the centre of the vein. The quartz is strained. There is up to 5 % arsenopyrite and locally much more in the veins in sharp contact with lesser amounts of pyrite and pyrrhotite. The arsenopyrite occurs throughout the vein, but generally is with carbonate at the walls. Arsenopyrite, as well as the other vein minerals, is also common in the wall rock and has been brittley deformed following crystallization. Gold distribution generally, but not exclusively, follows that of arsenopyrite and carbonate. It usually is visible gold in intimate or close contact with arsenopyrite, generally as coatings or in cracks. Small amounts of galena and sphalerite are also reported from gold—rich zones. Cross veins are common, but are carbonate- and sulphide- poor except where they cut earlier quartz-carbonate-sulphide bands or veins. Temperatures and pressures derived fluid inclusidn and sulphide petrological studies indicate greenschist grade conditions for the crystallization of the veins. Development in the 1980's at several districts in the centre of the province mostly by Seabright (Forrest Hill, Beaverdarn, Moose River, Caribou) and Coxheath (Tangier) districts and subsequent work by the Nova Scotia Department of Natural Resources (Department of Mines and Energy through most of the period) and the Geological Survey of Canada has led to additional empirical information on thesedeposits. These deposits were conventional Nova Scotia deposits. At the end of the last development cycle the Touquoy deposit at Moose River was developed in an area of historical workings in an argillite with little quartz. The gold was low grade (2-4 grarns/ tonne), moderate tonnage, andvminable by open cast. Current exploration and development is centred on low—grade, larger tonnage deposits (primarily at North Brookfield and Cuesta Research Limited 1 1 August 25, 1994
  • 13. Pleasant River Barrens) with unusual gold mineralogy. The potential of these last two deposit types have not been assessed at the Kemptville property. H-2. The Kemptville property The state of development of the Kemptville property has not changed substantially since the report of Hale (1981) though the knowledge of the location of the host strata has significantly improved . through geophysical survey. Very little outcrop is available on the property. Some of the old workings and 1960's trenching provide some outcrop and waste material for inspection. The 1975 drill core of Millmor Syndicate is said to be in the possession of the Nova Scotia Department of Natural Resources but the author has been unable to confirm this. Magnetic and VLF-EM surveys have better defined the continuity of within the property and drilling to the immediate north of the property have confirmed extension of some gold values. Geophysical surveys on the property (Mercer, 1988) and on the surrounding property (Bourque, 1988) have defmed the host rock to the historical workings to likely be repeated within the southeast area of the property across a probably anticlinal axis not previously mapped. This being a bed with high magnetic mineral content is confirmed for the northern anomaly (limb) by drilling along the north property boundary. " Visible gold was sited in two of the five drill holes [KB8701 and KB8702 in Figure 2]. The gold was mainly pin point in size and restricted to narrow quartz veins and assays of the core did not return grades favorable to a mining width, however the gold was located in the drill holes closest to the old Kemptville gold district and may have been the extensions of some narrow leads. Abundant pyrrhotite in the core may also account for the airbome magnetic anomaly over the area. " (Bourque, 1989, page 4) If the interpretation that the magnetic anomaly marks the host strata to the bedding—parallel vein array that was exploited historically, the magnetic survey data confirm the continuity of this host strata and clearly define the unit for further exploration. The potentially repeated section in the southeastem part of the property is completely untested. ' The veins on the Kemptville property are typicalpf Nova Scotia gold deposits. They were not thought to be located at the crest of an anticline as most of the largest of the districts, but it is now likely from the geophysical data that they are near the axis of an anticline and on the north limb. If so, the south limb is within the property and clearly defmed by geophysical survey data. All of the workings reported by Faribault (1920) and Hale (1981) and the drill intersections reported by Hudgins (1975) from the Kemptville Gold District are contained in the . Kemptville property of this report. The two gold-bearing drill holes of Acadia/ Seabright are 30 metres north of the property boundary. At least 2000 troy ounces (75.6 kg) of gold was produced from about 4000 tons (3600 tonne) of ore crushed between 1881 and 1915 (Faribault, 1920). No production has been reported since 1915. ‘ The workings of the Kemptville gold district are localized at two locations about 600 Cuesta Research Limited 12 August 25,1994
  • 14. meters apart and separated by boggy ground and heavy drift cover: the Kempt workings on the shore of Crawley Lake (Kempt Back Lake) in the east and the Cowan workings along strike to the west. Gold was discovered at the south of the Kempt workings in 1881. Mining was centred on the Cowan and Kempt workings. The main part of the Cowan workings in the west were made up of four shafts, the deepest of which was 50 meters deep. Most of the work was on the Cowan vein along a length of about 60 meters. The main part of the Kempt workings in the east were a series of shafts to a depth of 85 meters. Most of the work here was on the Black vein along a strike length of about 60 meters. Faribault reports that the miners in the district considered that the Cowan vein and the Black vein were the same vein and showed it as a continuous vein in his map of the district. The target of the development and mining in the Kemptville district was the intersection of interbedded veins, especially the Black/ Cowan vein and a cross vein: the Nash vein. The Nash vein has a strike similar to the bedding and interbedded veins but a shallow southerly dip in contrast to the moderate to steep northerly dips of the interbedded veins. The Nash vein was irregular in character but persistent. At the intersection of the Nash with an interbedded vein they merge for some distance. The interbedded veins were productive where they coincided with the Nash vein and near the intersection. Some low values were reported from interbedded veins away from these higher grade areas (0.2 oz/ t on the Boreo vein). Cuesta Research Limited 13 August 25, 1994
  • 15. eonzammfi mace EEEE . uLn. n_wL mmzu wn. n xflucuaad cm umu: DuLamt_ m. ..m man“ STE 473 . u|%_ . N.. ._. _.. ... . in mm tuaemu . m_. ... ma. .4u. 4mmqu. .3H “mmuoum w>0z cumummxcunom E m: o_umm$mm>. : Sue: .m. m JH_. _dnT. mu we UUmLUfl. .nD .303 m~: >uaEuv_ +0 F: U.. —uU3UOLBWL m one mmmm . .3 _uwuLonwL Emumota mE_: u.t_u
  • 16. I. RESERVES AND PRODUCTION The historical production must be regarded with some caution. Incomplete and inaccurate reporting has been widely suspected. The practice of doubling the production is probably an overestimate of the amount of incomplete reporting. A more serious problem is the assessment of grades from reported tons crushed and ounces of gold produced. The tonnages were millhead tonnages and do not consider either the hand cobbing of ore before reaching the mill or, on the other hand, the mining of very narrow widths. Except for work on the Black/ Cowan veins over areas of 50 meters depth by 60 meters along strike in the west of the district and 80 meters depth by 60 meters along strike in the east, all the workings were of the scale of the prospect pit. Mine plans and sections of these old workings are not known to be available and they have not been described in any detail in the literature available. Since assay information is unavailable for the 1975 Millmor drilling beneath both of these areas further reserve assessment of is not provided by this drilling. The Kemptville property therefore remains in the realm of the mineral occurrence though at least 2000 troy ounces of gold has been taken from in excess of 4000 tons of ore. J. CONCLUSIONS RECOMMENDATIONS WITH COST ESTIMATES The Kemptville deposits, as now known, are typical of other gold—quartz vein deposits in southem Nova Scotia. Knowledge of the geology and mineral potential of the Kemptville property is limited by lack of exploration under the heavy surficial drift surrounding the old workings. J—1. Possible targets The past production was dominated by development on the Black/ Cowan vein especially where it intersected the Nash cross vein. This conventional target remains unknown or poorly known in several directions. 1. Between the two areas of development on the Cowan and Kempt properties lies 600 meters of I unexplored strike length. Glacial drift and swampy ground deterred work in the past but drainage and trenching or a modest drill program could assess this area. 2. The two known areas of production were worked to depths 60 metres or less along 60 metres or less of strike. 3. The areas along strike to the west of the Cowan property and to the east of the Kempt property are unexplored. The old workings run to the shore of Crawley Lake (Kempt Back Lake). Drilling could extend knowledge to the east. ‘To the west heavy drift cover probably cut of development though no comment on the westerly cut off is mentioned in the literature. The Millmor Syndicate tested by limited drilling and unreported assaying, both the Kempt and the Cowan workings at modest depth with negative to marginal results though these are Cuesta Research Limited 15 August 25, 1994
  • 17. difficult to assess with the level of information released about this work. They drilled only one hole on the margin of the area between the two workings. This area remains inadequately tested; as does the east and westward extensions. Acadia/ Seabright drilling to the northeast found limited gold results in thin veins. This potentially limits mineralization to the east. Faribault mentions three other targets of interest. All were opened and described only in the eastern part of the district on the Kempt property. All were opened over only a short length and are not assessed in the central part of the district. 4. The Boreo Vein: Faribault describes this vein as 4 to 8 feet wide (1.2 m to 2.4 m) and with a grade of 4 pennyweight per ton away from its richest streak. This is the equivalent of 8.3 gm/ te or 0.2 oz/ ton. The width and grade clearly warrant assessment. 5. The Pompei belt: Faribault describes this as a "large belt of leads". Grades are not mentioned but it may also warrant testing on the basis of width. 6. The Galena vein: Faribault describes this vein as "12 inches wide carried much galena containing silver . ..". This together with the unassessed sulphide intersections in the 1975 Millmor drilling warrant assessment as a possible byproduct of any gold production. ‘ These three prospects are all untested along strike and the nature of their intersection with the Nash vein away from the Kempt workings along strike in both directions and at depth is untested. The Boreo vein (target 4 above) and the drill core, if found, should be assessed in light of the development of less conventional targets by analogy to Touquoy argillite-hosted gold and unusual gold mineralogy hosted in greywacke as at North Brookfield. Samples of host rock should be collected and assayed. Mineralogy of any greywacke samples with elevated gold values should be done to determine whether these are analogous to the North Brookfield samples reported by Paul Smith of the NS Department of Natural Resources (unpublished oral and poster presentations November 1993 and February 1994) 7. Lastly the southern magnetic anomaly which probably represents a repeat across an anticline of the host rocks to the mineralization outlined by the northem magnetic anomaly is completely untested. J-2. Exploration plan The goal of any exploration program should be to establish reserves of gold mineralization of rninable grade over rninable widths. In addition careful study of controls of mineralization can guide the search for extensions of known mineralization and new mineralization which may be on the property. The following plan is an outline only. The plan must respond to the results of each previous step in the program to be efficient in evaluating the property. While the heavy surficial cover over the property precludes detailed results from conventional (and cheap) geological, geophysical, and geochemical techniques recent biogeochernical surveys of tree twigs and bark have proved useful and inexpensive in locating targets in similar settings. A complete assessment will require well-controlled sampling and analyses for gold in both veins and in the host rock to Cuesta Research Limited 16 August 25, 1994
  • 18. the veins. Evaluation in initial stages should be focussed on assessing the potential for auriferous argillite and greywacke. Evaluation of base metal potential may also be desired to assess byproduct nature of the mineralization. The following general outline of exploration is recommended. More detailed cost breakdowns should await a property visit and cost verification from local contractors. Phase I is designed to provide an assessment of the rock of the property for lower grade gold targets in argillite (Touquoy analog) and greywacke (North Brookfield analog) with a rninimum_expenditure to hold the claims. This phase should begin with acquisition of any unreported data of the 1975 and 1987 drilling and re-logging and sampling of the drill core if it can be located and is in reasonable shape. Reconnaissance attempts to locate the 1975 drillcore in 1986 and 1994 have led to confusing reports. The extensive sample set from the 1988 core were of whole core, thus if drillcore remains, it will be remnants only. Pulps and rejects may well exist in the Westminer archive at Gays River or Caribou, and this is worth pursuing as thetwo holes on the property boundary provide valuable information about the property. Geological description and prospecting of outcrop and previous workings can be carried out quickly and will provide additional samples to assess for unusual gold minerals. It is probable that no drillcore can be found. Phase II can be substituted for Phase I if financing is available or be a follow-up of Phase I. It should concentrate on a detailed resampling and analyses of existing drillcore, if found, and outcrop for low-grade potential. It should include some detailed mineralogy and petrology at an early stage to guide sample selection. If none of the previous drillcore is available for resampling, one or two short N-diameter drillcore should be obtained from the property in to provide sample to assess these targets. Biogeochemical sampling and analyses should be done on the most appropriate media on the property. Compilation of previous geophysical, geological, and geochemical data in digital format should be done should be done as the biogeochemical data is interpreted to select detailed drill targets. Having the data in digital form will allow rapid display and interpretation of all of the regional and property data as well as more informative maps and diagrams of the potential of the property and potential drill targets. Phase III will rely primarily on diamond drilling. The goal should be to test the ground along strike between the two areas of old workings and along strike to the east and west of these . workings. If the 1975 drilling does not allow assessment of the old workings at depth, phase III should address this target. In all cases holes should be angle holes chosen to intersect as many interbedded veins as practical. Special attention should be focussed on the intersection of the Nash vein with interbedded veins in the area between the old workings. In all instances attention should be paid to lower grade values over minable widths (in excess of 50 cm). The Boreo vein may provide an excellent example of this type of target. Phase Ill should test the southern magnetic anomaly within the property as a potential host of gold—bearing bedding—parallel quartz veins and to confirm it as the south limb of an anticline. If this structural interpretation is confirmed it increases the attractiveness of this district for conventional Meguma gold resources. Cuesta Research Limited 17 August 25, 1994
  • 19. In detail, an estimate of the resources required is provided in the tables below. Note that these are estimates only and are not based on a property visit nor any competitive cost verification with local contractors. PHASE I estimated expenses $350 $800 $450 $400 $200 $350 $255 $2305 Locating drillcore (1975; 1987) and obtaining permission to sample Reconnaissance sampling of drillcore Sample outcrop on site Assays Heavy mineral separation Gold mineralogy Office expenses (<lO%) TOTAL PHASE I PHASE II estimated expenses $1,000 $1 ,000 $4,000 $1 ,000 $3,000 $2,000 $1,200 $13 ,200 Follow-up work on 1975 and 1988 drillcore Geologic mapping and rock sampling Digitize existing data, produce maps and sections, and select drill sites Rock and core analyses (including mineral separation and mineralogy) Biogeochemistry (50 m centres) Report and map preparation Office expenses (<lO%) TOTAL PHASE II PHASE III estimated expenses $125,000 $12,500 $10,000 $14,750 $162,250 Cuesta Research Limited Diamond drilling Core examination, sampling, and analyses Technical supervision and reporting Office expenses (<lO%) TOTAL PHASE H1 18 August 25, 1994
  • 20. Giles, P. S. K. REFERENCES Bourque, A. D. (Seabright Explorations Incorporated) 1988: Assessment report on 1987 exploration program on general exploration licenses 11286, 11287, 11555, 12056, 12089, 12090, 12136, 12137, Ogden, NTS 21A/4, [A report on geological mapping, prospecting and pit digging, soil, till and rock geochemical surveys and magnetic and VLF-EM surveys]. Nova Scotia Department of Natural Resources, Assessment Report 88-019, 95p. Bourque, A. D. (Acadia Mineral Ventures Limited) 1989: Report on diamond drilling, Kemptville-Ogden Project, Yarmouth County, N. S., N. T.S. 21-A-4-B, EL. 14368 & 12090, [A report on drilling, and drill core and drill sludge assays]. Nova Scotia Department of Natural Resources, Assessment Report 89-070, 130p. Brooks, R. R., A. K. Chatterjee, P. K. Smith, D. E. Ryan, and H. F. Zhang 1982: The distribution of gold in rocks and minerals of the Meguma Group of Nova Scotia, Canada. Chemical Geology, 35, 87-95. Clarke, D. B. and A. N. Halliday 1980: Strontium isotope geology of the South Mountain batholith, Nova Scotia. Geochirriia et Cosmochiniia Acta, 44, 1045-1058. Faribault, E. R. 1899: The gold measures of Nova Scotia and deep mining; Joumal Mining Society Canada, 11, 119-128. Faribault, E. R. 1920: Investigations in southwestem Nova Scotia; Geological Survey of Canada, Summary Report 1919, part F, 10- 14. Fyson, W. K. 1966: Structures in the Lower Paleozoic Meguma Group, Nova Scotia. Geological Society of America Bulletin, 77, 931-944 1985: A major post-Visean sinistral shear zone - new perspectives on Devonian and Carboniferous rocks of southern Nova Scotia. preprint, Nova Scotia Department of Mines and Energy, Paper 85-3, 235-264. Cuesta Research Limited 19 August 25, 1994
  • 21. Graves, M. C. 1976: The formation of gold-bearing quartz veins in Nova Scotia. unpublished MSC thesis, Dalhousie University, Halifax, NS. Graves, M. C. (Cuesta Research Limited) 1986: Report on the exploration and development histories and geology with exploration proposals to A. W.Lockerby, Nova Scotia Department of Natural Resources, Assessment Report 86-126, 44p. Graves, M. C. and Zentilli, M. 1982: A review of the geology of gold in Nova Scotia: in Geology of Canadian Gold Deposits; Canadian Institute of Mining and Metallurgy, Special Paper 23, p. 233-242. . Hale, W. E. 1981: Kemptville claim group, Yarmouth County, Nova Scotia; Nova Scotia Department of Natural Resources, Assessment File 21A/04B 21-R-07(04). Hudgins, A. D. 1975: Nova Scotia Department of Natural Resources, Assessment File 21A/04B 21-R-07(03). Lawrence, A. R. 1937: Kemptville Mines district; Nova Scotia Department of Natural Resources, Assessment File 21A/04B 21-R-07(02). ' Lockerby, A. W. 1985: An assessment report of work performed within Exploration License No. 10312, [A report on prospecting, Kemptville gold district]. Nova Scotia Department of Natural Resources, Assessment Report 85-061, 8p. MacKenzie, C. B. and D. B. Clarke , 1975: Petrology of the South Mountain Batholith, Nova Scotia. Canadian Journal of Earth Sciences, 12, 1209-1218. Malcolm, W. 1912: Gold fields of Nova Scotia; Geological Survey of Canada, Memoir 20E, 331p, with maps. Malcolm, W. 1929: Gold fields of Nova Scotia; Geological Survey of Canada, Memoir 156, 253p with maps. Cuesta Research Limited 20 August 25, 1994
  • 22. Malcolm, W. 1976: Gold fields of Nova Scotia; Geological Survey of Canada, Memoir 385; reprint of Geological Survey of Canada, Memoir 156, without maps. McCartney, W. D. and Potter, R. R. V 1962: Mineralization as related to structural deformation, igneous activity, and sedimentation in folded geosynclines; Canadian Mining J ournal. Mercer, B. J. (ACA Howe International Limited) ' 1988: Report on the exploration history, geology, and magnetic and VLF-EM surveys for Lotus Resources Limited, Nova Scotia Department of Natural Resources, Assessment Report 88-293, 36p Muecke, G. K. and DB. Clarke 1981: Geochemical evolution of the South Mountain Batholith, Nova Scotia: rare-earth—e1ement evidence. Canadian Mineralogist, 19, 133-145. O'Brien, B. H. 1985: The formation of veins in greenschist facies rocks and the early deformation of the Meguma Group, eastem Nova Scotia. Nova Scotia Department of Mines and Energy, Paper 85-2, 35p. Rankin, L. D. (Acadia Mineral Ventures Limited) 1989a: Geological and geochemical report on the Kemptville—Ogden Project and Skinner Lake properties, Yarmouth County, N. S., N. T.S. 21-A-4-B, Exploration Licenses 12090, 12136, 12137, 14368 and 13847, [A report on prospecting, geological mapping, and rock, soil, stream sediment and lake shore sediment geochemical surveys]. Nova Scotia Department of Natural Resources, Assessment Report 89-068, 350p. Rankin, L. D. (Acadia Mineral Ventures Limited) 1989b: Geophysical Report on the Kemptville-Ogden Property, Yarmouth County, NS, EL. 12090, 12136, 12137, 13847 and 14368, N. T.S. 21-A-4—B. [A report on an IP survey by Eastern Geophysics Limited]. Nova Scotia Department of Natural Resources, Assessment Report 89-069, 36p. Reynolds, P. H., E. E. Kublick, and G. K. Muecke 1973: Potassium-Argon dating of the slates from the Meguma Group, Nova Scotia. Canadian Joumal of Earth Sciences, 10, 1059-1067. Reynolds, P. H. and G. K. Muecke 1978: Age studies on slates - applicability of the 40Ar/39Ar stepwise outgassing method; Earth and Planetary Science Letters, 40, 111-118 Cuesta Research Limited _ 21 August 25, 1994
  • 23. Reynolds, P. H., M. Zentilli, and G. K. Muecke 1981: K-Ar and 40Ar/39Ar geochronology of granitoid rocks from southern Nova Scotia: its bearing on the geological evolution of the Meguma Zone of the Appalachians. Canadian Journal of Earth Sciences, 18, 386-394. Reynolds, P. H., M. Zentilli, P. N. Elias, and G. K. Muecke 1984: The southwestem Meguma zone, Nova Scotia: an argon age study of regional cooling and Hercynian mineralization (abstract); Geological Society of America, Abstracts with Programs, 16, 59. Schenk, P. E. 1970: Regional variation of the flysch-like Meguma Group (Lower Paleozoic) of Nova Scotia compared to Recent sedimentation off the Scotian Shelf; Geological Association of Canada, Special Paper 7, 127-153. Schenk, P. E. 1971: Southeastern Atlantic Canada, northwestem Africa, and continental drift; Canadian Joumal of Earth Sciences, 8, 1218-1251. Shell Canada Resources Limited 1978: Report on geology and geophysics of Yarmouth County, Nova Scotia. Nova Scotia Department of Natural Resources, Assessment Report 200/ 16A O7—R- 24(2). Stea, RR and Grant, DR 1982: Pleistocene geology and till geochemistry of southwestern Nova Scotia. Nova Scotia Department of Mines and Energy, Map 82-10. Taylor, EC. and E. A. Schiller 1966: Metamorphism of the Meguma Group of Nova Scotia. Canadian Journal of Earth Sciences, 3, 959-974. Taylor, F. C. 1967: Reconnaissance geology of Shelboume map-area, Queens, Shelboume and Yarmouth counties, Nova Scotia; Geological Survey of Canada, Memoir 349. Taylor, F. C. 1969: Geology of the Annapolis - St. Mary's Bay map-area, Nova Scotia; Geological Survey of Canada, Memoir 358, 65p. Cuesta Research Limited 22 August 25, 1994
  • 24. Thorpe, R. I. and G. M. Thomas 1976: Gold content of greywacke and slate of the Goldenville Formation, Nova Scotia, as determined by neutron activation analysis. Geological Survey of Canada, Paper 76-1A, 319-326. Zentilli, M. and Graves, M. C. 1977: Evolution of metallogenic domains in Nova Scotia; Canadian Institute of Mining and Metallurgy Bulletin, v. 70, p. 69 (abstract). Cuesta Research Limited 23 August 25, 1994
  • 25. L. AUTHOR'S CERTIFICATE 1. 1, Milton C Graves, of 154 Victoria Road, Dartmouth, Nova Scotia am a consultant geologist employed by Cuesta Research Limited of Dartmouth. 2. I have practiced the profession of geology since graduation from the University of Idaho College of Mines with a B. Sc. in geology in 1972. I have completed an M. Sc. in geology at Dalhousie University in Halifax, Nova Scotia (1976) where I studied the gold deposits of Nova Scotia. 1 have published on this topic in the scientific literature and acted as a consulting geologist in Nova Scotia for the past ten years. 3. An examination of the property was not made for the purposes of this report. 4. This property has visited by the author, however, in 1974 in the course of research work at Dalhousie University. 5. This investigation is based on review of the geological literature, review of reports and correspondence of the claim-holder, and on assessment material located in the library of the Nova Scotia Department of Natural Resources in Halifax, Nova Scotia. 6. I do not, directly or indirectly, receive or expect to receive any interest, direct or indirect, in the property of the issuer or any affiliate, or beneficially own, directly or indirectly, any securities of the issuer or any affiliate. August 24, 1994 Cuesta Research Limited 24 August 25, 1994
  • 26. M. LIST OF FIGURES AND FIGURE CAPT IONS Figure 1. Location of Kemptville property. Surrounding block is area of 1987-1989 exploration project of Acadia Mineral Ventures and Seabright Exploration. Their geochemical and geophysical grids are indicated to the southwest of the Kemptville property. Figure 2. Kemptville property showing results of exploration activity of this and surrounding properties during the 1980's. Figure 3. Drill locations of the 1975 Millmor Syndicate drilling program reported by . Base map a reproduction of Kemptville Gold District of Faribault, E. R. (1920) Investigations in southwestern Nova Scotia; Geological Survey of Canada, Summary Report 1919, part F, 10-14. Drill logs are reproduced in Appendix I of this report. Cuesta Research Limited 25 August 25, 1994