02 Mugumbate - Overview of mineral potential (1).pdf
Xama property fact sheet 20150301
1. XAMA Fact Sheet, March 2015 1 of 5
Targets Porphyry Molybdenum-Copper Deposit
Location The XAMA mineral property is located in central British Columbia ~160km west of the City of
Prince George, 12km south of the resource (timber and mining) Village of Fraser Lake and ~21km
southeast of the Endako Molybdenum Mine (largest molybdenum mine in Canada, operating since
1965). It is possible to work all year round in the area, as the summers are warm and reasonably
dry, and the winters are not too cold, nor the snowfall too heavy to prevent any operations.
Access The Property has excellent access via a network of all-weather logging roads that connect to
Highway 16 near the community of Lejac, ~2km east of Fraser Lake village. The topographic
relief in the area is gentle which is typical of the BC Interior Plateau. Logging has been, and
continues to be, very active in and around the XAMA area as one of the world’s largest sawmills is
located at Lejac (Fraser Lake Sawmills, a division of West Fraser Mills Ltd.).
Land
Ownership
The Property consists of seven BCMTO mineral tenures covering 3,579ha. Registered owners are
John A. Chapman, Gerald G. Carlson, Garry D. Bysouth and Gary W. Kurz. The Property is
available for Option.
Area
History
1960s: The discovery of the Endako orebody and its development by Placer Development
Ltd. as a large open-pit molybdenum mine attracted several major mining companies into
the region including Anaconda American Brass Limited (1966), Amax Exploration
Incorporated (1967) and Cyprus Exploration Corporation, Ltd (1970).
1966: Anaconda American Brass Limited, acquired mineral claims (Owl Group) on the
south side of the Nithi River valley as a follow up on regional silt and water geochemical
survey anomalies in molybdenum and copper. A soil geochemical survey was conducted
whereby 262 mainly B soil horizon samples were collected over a large 600 feet by 400
feet grid. Sporadic highs in copper, molybdenum, lead and zinc were found but with heavy
metal concentrations principally associated with swamps (see, BC Assessment Report No.
01002).
1967: Amax Exploration Incorporated, acquired claims (Gel Group) to the east of
Anaconda’s Owl Group based upon successful water and silt geochemical surveys that
yielded molybdenum and copper anomalies. McPhar Geophysics Limited was contracted
to conduct an Induced Polarization and Resistivity Survey (IP) over much of the Property
(see, BC Assessment Report No. 01107). Several induced polarization anomalies were
defined at 300 feet dipole spacing. One line was repeated at 500 feet dipole interval
showing the IP effects to be notably stronger – this suggests that more concentrated
metallic mineralization occurs at greater depth. A large soil geochemical survey was
conducted and 2,500 feet by 5,000 feet area of anomalous soils with higher than 10ppm
molybdenum were defined in the western half of the grid. A zone of moderately anomalous
copper-in-soils was obtained in the extreme east of the grid area. Bulldozer trenching in
the metals-in-soils anomalies showed the glacial overburden thickness to vary from two
feet to in excess of 15 feet (average 10 feet). Widespread molybdenite mineralization, and
in places chalcopyrite, was found in Casey granite and basic volcanic rocks (see, BC
Assessment Report No. 01108)
1968: Anaconda American Brass Limited (Owl Group), conducted deep soil sampling
(three feet deep, sampled every one vertical foot) on 200 feet spacing to determine copper,
molybdenum, lead and zinc contents (see, BC Assessment Report No. 01216).
1969: Mercury Explorations Limited (N.P.L.), acquired a large block of mineral claims
(Count Group) between Nithi Mountain and the claim holdings of Anaconda and Amax.
Twenty-four miles of induced polarization survey locate a 7,000 feet by 1,000 feet
2. XAMA Fact Sheet, March 2015 2 of 5
anomalous zone that trends in an east-northeasterly direction. Drilling is recommended in
five holes (see, BC Assessment Report No. 02368).
1970: Cyprus Exploration Corporation, Ltd. acquired a very large group of mineral claims
to the northeast of XAMA. The scope and results of their work is not well known as there
was little to no public disclosure.
1974: The NDP government enacted Bill #31, an extremely punitive mineral Super
Royalty. This action resulted in most of the major mining companies leaving BC,
including those in the Nithi and XAMA exploration areas. Exploration drill holes that had
been recommended were never drilled.
1990 to present: Local prospectors Garry D. Bysouth and Gary W. Kurz acquired the Skip
Group of claims over areas originally explored by Anaconda and Amax. Several small
exploration programs, including: prospecting, self-potential surveys, soil geochemical
surveys and percussion drilling short holes were conducted to 2012. See BC Assessment
Report No’s: 21587, 22061, 24798, 28350, 29601, 32400 and 33221.
2014: KGE Management Ltd. (Gerald G. Carlson, President) and John A. Chapman
acquired a large block of mineral claims surrounding the Skip Group owned by Bysouth
and Kurz. The two properties have been combined as the XAMA property.
Geology The XAMA property is underlain by granitic rocks of the Topley Intrusives that form a ~140
million year old batholithic complex, ranging from diorite to alaskite, some 300km long from
Babine Lake to the City of Quesnel. This intrusive complex was emplaced between the Stikine and
Cache Creek Terranes in an island arc-related magmatic event that continued into the Tertiary. It
forms the Topley Porphyry Mineral Belt; host to a number of porphyry deposits and prospects (see
maps below). Glacial direction at XAMA is from west to east.
Mineral-
ization
Wide spread molybdenum and copper mineralization has been discovered by several historical
operators within the Property that is some 99% covered with glacial till overburden.
Potential The Property is well located within a metal rich belt of the important Topley Intrusives,
with a high potential for the discovery of a major porphyry molybdenum-copper deposit.
The XAMA property location has a significant infrastructure advantage in that grid electric
power, mainline natural gas, mainline rail, provincial highways and the resource service
center of Fraser Lake village are all within 15km of the Property.
Recom-
mended
Explor-
ation
There are several drill ready targets based upon prior work. Three proposed 300 meter NQ
drill holes have been spotted, each 500 meters apart, to test the main Amax IP anomaly.
The project would benefit from the new deep penetration Tipper EM (AFMAG) that works
well in porphyry copper and molybdenum environments. This modern helicopter-borne
survey, known as ZTEM is flown exclusively by Geotech Ltd. (see,
http://www.geotech.ca/ztem)
Status The XAMA property is available for option. Contact John A. Chapman at 604.612.9438
(jacms1@telus.net) or Gerald G. Carlson at 604.816.3012 (gerrycarlson@gmail.com).