|
Corporate Overview
as at May 20th, 1998
Overview: Snowfield Resources Ltd. is a mineral exploration company listed on the Vancouver Stock Exchange (trading symbols: SNO and SNO.WTA) with a focus on the acquisition, exploration and development of small to medium sized high-grade gold properties in the 250,000 to 500,000 oz range, as well silver, zinc and other mineral properties.
IPO on VSE: On January 7th, 1998, Snowfield Resources had posted, and called for trading on the Vancouver Stock Exchange its Common Shares (Trading Symbol: SNO) and its tradable Warrants (Trading Symbol: SNO.WT.A) following an Initial Public Offering (the "IPO") of 910,000 Units (one Share and Warrant) and 390,000 tax advantaged Flow-through Shares. The gross proceeds received from the IPO were CDN$669,500.
Snow Property: Snowfield Resources has options to purchase from Area Explorations Ltd. a 100% interest in the Snow Property, which consists of 7 claim blocks totaling 129 Units (3,225 hectares or 7,969 acres) variously named the Snow #1, Snow #2, Snow #3, Snow #4, Snow #5, White #1, White #2, and 7D #1 blocks. The Snow Property is located in the Alberni Mining District of Vancouver Island, British Columbia, Canada (see Area Map on reverse side of this page) between the Taylor and Kennedy Rivers west of Sproat Lake, about 45 kilometres (28 miles) west of Port Alberni. There is 2-wheel drive vehicle access to the main showing along a logging road, and extensions to the central part of the property were recently completed.
Drill Programs: The report states that continued exploration on the Snow Property is warranted and therefore a two-stage drilling program is recommended. In conjunction with the drilling programs, it is recommended that stream sediment sampling and thorough prospecting extend to cover the Snow #3 to Snow #6 and 7D #1 claims northwest of the main discovery zone.
The Stage I drilling program is now underway with drilling having commenced on May 13, 1998. Snowfield Resources has contracted with Nicola Diamond Drilling to conduct the 1,000 metre (3,281 foot) drilling program, comprising up to 12 holes (see Drilling Plan on reverse side of this page), estimated to cost CDN215,000. The Stage II drilling program, contingent upon success of the Stage I drilling program, will cost approximately CDN$310,000.
Geology: The Snow Property is mainly underlain by Karmutsen basaltic lavas and granodiorite and quartz diorite intrusive rocks of the Island Intrusives. The Karmutsen volcanics, consisting of basaltic lava flows, pillow lavas, massive and porphyritic flows and associated tuffs are believed to be part of the lower part of the Karmutsen volcanics. Intrusive rocks on the Snow Property consist of medium grained quartz-feldspar porphyry. The quartz-feldspar porphyry appears to occupy the structural zone that controls the main mineralized showing. A course granodioritic phase is distinguished by coarse quartz phenocrysts. The volcanic and intrusive rocks are generally in fault contact along north-south, east-west and northwest directions. Faults are generally steeply dipping, with the east-west direction dominant.
Gold mineralization on the Snow Property is associated with pyrite, galena, chalcopyrite and sphalerite in quartz or quartz-carbonate veins. Vein textures are indicative of open space filling. A petrographic study indicated the presence of carbonate and epidote with the quartz gangue and native gold as thread-like veinlets and inclusions in chalcopyrite and galena.
Past Exploration: The Snow Property was staked in 1986, then prospecting, trenching and sampling were conducted with assays of up to several ounces of gold per ton obtained from select samples at the main showing (see Claim Map on reverse side of this page). In 1987, a two phase exploration program was conducted and included establishment of 17 kilometres (10 miles) of grid lines, the collection and analysis of 620 soil and 67 rock samples, trenching a total of 247 metres at nine locations, NQ core drilling of a total of 494 feet in three holes, and EM-VLF and MAG surveys over the grid. Three diamond drill holes were directed to intersect the Main Showing from the northeast. A summary of significant drill intersections is shown below:
DDH Interval Length Cu% Pb% Zn% Ag Au
87-1 15.07-15.63 0.56 m 1.95 0.25 0.170
20.43-21.35 0.92 m 6.56 0.41 1.070
87-2 37.74-38.20 0.56 m 0.13 0.37 1.32 0.72 0.260
87-3 59.65-60.27 0.62 m 3.60 2.78 2.04 1.120
60-27-61.79 1.52 m 1.00 7.58 4.58 5.25 0.166
avg. 59.65-61.79 2.14 m 6.43 4.06 4.32 0.442
In 1986, during the first phase of soil sampling, gold values of up to 9,530 ppb were obtained. In the second phase, anomalous gold in soil values of up to 810 ppb were obtained. The highest values of gold were obtained along strike southeast of the Main Showing. Anomalous lead, zinc and copper values in soil generally correlate with anomalous gold values. Trenching and stripping indicated that faulting continued after vein emplacement and resulted in a complex pattern of mineralization.
In 1992, a geological and geochemical assessment program was conducted which included additional soil sampling, and geological mapping along new logging roads and grid areas. Gold values in soil of up to 2,060 ppb were obtained from an area which contained chip samples returning assays of 5.654 oz Au/ton, 138,000 ppb gold and 17,200 ppb gold, respectively.
Mineral Deposits: In the Geological, Geophysical and Geochemical Report on the Snow & White Claims dated May 15, 1997, C. Sayer and J.C. Stephen suggest that veins do not have a preferred direction. However, at the Main Showing, five veins in a 10-15 metre wide setion all trend about 140ø. The best chip sample collected by P.A. Christopher in 1987 was obtained over 4.5 feet at the Main Showing and assayed 1.570 oz Au/ton and 1.12 oz Ag/ton, and was part of a 10.3 foot section which averaged 0.76 oz Au/ton and 0.65 Ag/ton. This supports the samples collected by Sayer and Stephen which assayed up to 2.723 oz Au/ton and 5.16 oz Ag/ton for a grab sample from the Creek Showing, with the best chip sample by P.A. Christopher assaying 0.293 oz Au/ton and 0.99 oz Ag/ton over 30 cm.
The 1992 sampling program demonstrated a strike length of over 100 metres for the Creek Showing and 300 metres for the Main Showing. Channel samples taken from the two mineralized zones provided assay values ranging from 1.9 to 5.65 oz/ton gold over narrow widths of 2 to 12 centimetres. The higher gold values obtained from these showings provide encouragement for locating small or moderate tonnage high-grade gold deposits.
Management: The management of Snowfield Resources Ltd. include the following:
President & Director: Mr. Robert T. Paterson
VP of Exploration & Director: Dr. David G. Bailey, Ph.D.
C.F.O. & Director: Mr. John J. Nagy, CGA
Secretary & Director: Mr. Jed M. Hops, Esq.
Mng. Corp. Communications: Mr. Fraser Fleming
Corporate Communications: Mr. James Perger
Representatives: The representatives of Snowfield Resources Ltd. include the following:
Auditors: Rutherford & Company
Legal Counsel: Morton & Company
Transfer Agent: Pacific Corporate Trust Company
Bankers: Bank of Montreal |
|
