Greenwood Area
Kettle River Resources Ltd. (KRR:TSX-V) was formed in 1980 to explore the historic gold/copper rich properties in the Greenwood Mining District in southern British Columbia where the Phoenix Mine produced over 300,000 tons of copper and one million ounces of gold. Kettle River Resources Ltd.’s large land and mineral claim holdings in the Greenwood Area continue to appreciate with improving metal prices and increases in mining activity in the area. Since Kettle River's discovery of the Sylvester K gold deposit at Phoenix in 1982, the company has been involved in numerous exploration ventures in the Greenwood Area and throughout North America.
click here for Greenwood Area Properties Technical Report
Summary of the Greenwood Camp Gold - Copper
The Company owns 100% interest in a number of individual properties within the Greenwood Mining Division. Within an approximate 44 square kilometer area the Company currently holds 75 Crown Grants, 12 Mineral Leases, 28 Reverted Crown Grants covered by cell claims prospective for gold, silver and copper. Properties are segregated by area for exploration and accounting purposes. The largest holding is the Phoenix property that was acquired by Noranda Explorations Ltd. from Granby Mining Company in 1979 and later by the Company. Upon termination of the Greenwood Area Noranda joint venture, Noranda fulfilled reclamation requirements on these properties to the satisfaction of mining and environment ministries.
There are multiple properties within the Greenwood Area, grouped within claim blocks mostly representing historical workings. Current metal prices are reasons for revisiting these properties.
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Minnie Moore Property - Exploration during 2007-2008 discovered the Minnie Moore epithermal silver-gold showing using prospecting, soil geochemical, ground magnetometer survey followed by trenching and diamond drilling. The vein was exposed on surface in two trenches. Where exposed it is a well-defined breccia vein, with a true width ranging up to 8.5 meters and with faulted contacts. The vein is comprised of intensely silicified limestone and siltstone that is cut and cemented by vuggy quartz and quartz-carbonate veinlets and breccia matrix. Sulfide content is low, only locally exceeding 5%, and consisting of pyrite, with lesser chalcopyrite, sphalerite, galena, tetrahedrite, and ruby silver. Diamond drilling indicates that the trenched zone is cut-off (offset) by a 50 meter thick post-mineral sill at a shallow depth below surface. Several zones of silicification and quartz-carbonate veining were intersected in the drilling, at depth beneath the sill, however analytical results failed to return values of similar silver and gold tenor to those from trenching. Channel sample results of the vein as exposed in the main pit:
The result compilation is dated July 18, 2008 and the Trench Image and assays are dated Feb 19, 2008. Coverage of exploration and diamond drilling conducted during 2008 includes the properties listed below and are reported in the MD&A which may be viewed on the financial statement page or on the Company’s file on www.Sedar.com. |
Several other mineralized shear zones and quartz or massive sulfide veins were intersected in hole KRR 08-11, which returned elevated gold or silver values. The best result was a 1.56 meter sample of pyritic sharpstone conglomerate, at a depth of 90.7 meters in the drill hole, which returned 80.0 g/t Au and 8.6 g/t Ag. Due to drilling problems, hole 08-11 was terminated in a zone of stockwork quartz veinlets at a depth of 209.98 meters. The final sample in the drill hole, from 207.29 – 209.98 meters, returned 1257.8 g/t Ag. Additional drilling is needed to determine the strike, dip and true width of the mineralization described above.
Bank of England - The target is a shear zone, down dip from the Bank of England adit exposure. Intersected was a 7.3 meter zone of pyrite (+/- quartz) veining, 20 meters vertically below surface and 45 meters down dip from the surface exposure of the shear zone. An average grade of 3.71 g/t Au, 8.27 g/t Ag and 1801 ppm Cu was returned across the 7.3 meter intercept, including a 0.4 meter interval which returned 14.0 g/t Au, 64 g/t Ag and 496 ppm Cu, and a separate 1.0 meter interval returning 8.8 g/t Au, 7.0 g/t Ag and 2417 ppm Cu.
A number of holes were drilled to test this zone and Linda Caron concluded that further drilling will be required to determine whether the shear zone has pinched out or whether it has been offset by later faulting.
Stemwinder Zone - (Also refer to NR Sept 10, 2008) Two drill holes targeted a series of sub-parallel northwest trending, moderate to steeply northeast dipping gold-bearing quartz-sulfide veins which were known from historic underground work at the Stemwinder and Brooklyn mines. The Brooklyn and Stemwinder mines are located immediately north of the past-producing Phoenix copper-gold skarn open pit mine. The Brooklyn mine is now partially covered by the Phoenix mine waste dumps, while the Stemwinder mine is completely obscured by the dumps. The two lower veins intersected in hole 08-13 have been taken out by the underlying Snowshoe fault zone and were not intersected by drill hole 08-14. Linda Caron recommended that additional drilling is needed to determine the strike, dip and true width of the mineralization described above.
Phoenix Mine Area - Of the 55 Crown Grants and Mineral Lease tenure covering the Phoenix Mine Area, this former copper gold producer, surface title and various timber rights are held on approximately 350 acres. There is a Marble prospect quarry lease within this area. .
Phoenix Tailings Property - This property contains approximately five million tons of tailings produced from the Granby Phoenix operations during the late 1950’s and early 1960’s and cover approximately 50 acres of the 336 acre land package known as the Tremblay Farm. The site was reclaimed by Noranda to satisfy mining and environmental ministries in 1979. Reclamation included soil placement on tailings surface with hardy alfalfa/grass planted and a spillway channel constructed to accommodate runoff. Tests confirm there is no deleterious content in the tailings and an agreement is held with downstream property owners absolving liability in the event of a spill. The Company continues to monitor this property and explore the economic potential.
News Release issued August 5, 2010 - Kettle River Resources Ltd. (the "Company") announces that Jeffrey B. Austin, P.Eng. President of International Metallurgical and Environmental Inc. has been contracted to review the economics of processing the 100% owned Phoenix tailings material in the Greenwood Area.
The Phoenix mine operated an open pit copper/gold mine and historic production records show approximately 12 million tonnes of tailings reside in two tailings storage facilities at the Phoenix mine site. Kettle River Resources Ltd. owns the former Phoenix minesite and the associated tailings deposits.
Although the tailings materials stored at site does not have a National Instrument 43-101 compliant resource estimate, the company has historical reports and studies showing gold values that range from 0.2 g/t gold to 0.6 g/t gold. Higher gold values are shown to be more prevalent in areas with coarse tailings, associated with tailings dam construction using traditional cyclone technology to classify tailings.
Historically, the Phoenix Mine processed ore with a 0.98 percent copper and 1.1 g/t gold content. Historic gold recovery was in the range of 65 percent of the contained gold in a high grade copper concentrate. Historically, gold recovery in the Phoenix milling process was significantly lower than the copper recovery due to a portion of the available gold being associated with non-copper sulphide mineralization (typically pyrite). These sulphides, which are available in the tailings materials can be concentrated by flotation processes to produce a gold bearing concentrate assaying in the range of 15 to 30 grams per tonne gold. The tailings contain about 3 percent sulphide mineralization by weight.
With the current price of gold in the range of 1200 dollars per ounce, lower grade gold resources are becoming more valuable, and this project has many attractive facets which the Company is currently reviewing. Jeffrey B. Austin, P.Eng. is the Qualified Person as defined by National Instrument 43-101 on the project, and has reviewed and approved the content of this release.
Haas Creek Talc
Bluebell-Summit Property - The property is mainly comprised of 20 Crown Grants where under surface title is held.
Tam O’Shanter - On December 2, 2010, the TSX Venture Exchange accepted for filing an option agreement dated Oct. 28, 2010, between Golden Dawn Minerals Inc. and Kettle River Resources Ltd., pursuant to which Golden Dawn has the option to acquire a 100-per-cent interest in the Tam O'Shanter prospect located in the Greenwood mining division of B.C.
The total consideration payable by the company to the vendor within a four-year period is: $230,000 in cash ($85,000 cash payable in the first year); 1.5 million common shares of the company (487,500 common shares issuable in the first year); and work commitments of $2-million on the property ($150,000 of expenditures within the first year). The property is subject to a 3-per-cent net smelter return royalty retained by Kettle River Resources Ltd. and gives Golden Dawn the option to repurchase 2-per-cent NSR royalty for $3-million.
The property consists of 46 units (3 located claims) and 7 Reverted Crown Grants located to the west of Greenwood. Prospecting and a review of compiled data led to further exploration in the area of the Wild Rose vein. Drilling and trenching took place in early 2004 consisting of 1,400 meters and intersected the Wild Rose Zone in seven of the eight drill holes. The last and deepest hole of the program encountered gold values at a vertical depth of 150m appears to be an extension of a zone at depth encountered in 1992 and 1995. The 80 meter distance between intercepts (previous gold values of 0.58 opt over 1.1m, 0.21 opt over 3m with recent values of 0.3 opt over 1m) represents a significant discovery as this type of apparent continuity of width and grade has not been observed previously. A drill program is planned by Golden Dawn Minerals for the fall of 2011.
Rads and Shickshock/Sailor Boy Property - The property consists of 2 Reverted Crown Grants and 8 located claims for a total of 10 units. During the year a cash in lieu payment was made to hold claims in good standing.
Niagara Property - The property consists of 23 units within 4 claims..
Arcadia (Skylark) Property - The property consists of 12 reverted Crown Grants.