Freeport Resources Ltd.Freeport Resources Ltd.
Projects

Spanish Mountain Gold

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Highlights

Spanish Mountain GoldFreeport's Spanish Mountain Gold claims are located near Likely in the Cariboo -- the heart of British Columbia's historic "Gold Rush". Spanish Mountain has been proposed as the possible source of the gold mined from some of the most prolific placer operations in British Columbia. The Bullion Pit, just 12 km (7.5 mi) away, produced over 5.4 million grams of gold (173,600 oz). Other known placer workings in the area include the Cedar Creek and the McKeown Placers. With known gold showings since the early 1900's (Minfile 093A 043), the Spanish Mountain area is once again a highly active exploration camp.

Freeport's property is adjacent to and on strike with a large, NW-SE trending gold-bearing zone held by Spanish Mountain Gold Ltd. (SMGL, formerly Skygold Ventures), who released an updated NI 43-101 compliant resource estimate in May 2009. SMGL/Skygold reported Measured and Indicated Resources of 3.94 million ounces of gold (210 MT at 0.581g/tonne at a cut off grade of 0.3g/tonne), with excellent potential for an open pit gold mine. An airborne survey conducted in 2006 also suggests that favourable, lower-grade, gold mineralization indicated by low resistivity may continue onto Freeport's claims. Freeport's recent sampling of one resistivity low at its Spanish Mountain Gold (SMG) property has returned comparable gold values to SMGL/Skygold's bulk mineable deposit. These developments are all very encouraging. An assessment report filed in March maintains our SMG property in good standing for 10 years.

Location & Access

Freeport's claims (150 hectares, 371 acres) at Spanish Mountain are 8 km (5 mi) east of Likely by all-weather gravel road. The site has well developed infrastructure and is just 70 km (44 mi) northeast of Williams Lake, a major regional centre serviced by an airport and railway. Important deposits nearby include the Mt. Polley Mine (12 km SW; 7.5 mi) and the QR deposit (24 km WNW; 14.9 mi). The property has several small roads that will provide easy access for equipment and drills over the northern portion of the claims.

Likely Chamber of Commerce
City of Williams Lake

Geology

The Spanish Mountain area comprises Upper Triassic sediments and volcanic rocks and is part of the Quesnel Terrane. Gold mineralization is hosted by deformed sedimentary rocks with interlayered volcanics, and described as of two types:

1) High grade gold in quartz veins/stockworks, and;
2) Lower grade, bulk tonnage gold-bearing shale and siltstone.

Work by SMGL/Skygold has led to recent interpretation of Spanish Mountain as a Sediment Hosted Vein deposit (SHV). These deposits are often large in size, with stratigraphically controlled gold mineralization. Based on extensive geochemical and geophysical surveys followed by drilling, a large NW-SE trending mineralized zone -- the "Main Zone Argillite" -- measuring over 1.4 sq.km. (over 0.56 sq.mi.) in size has been delineated. It is open in all directions. Freeport's property is approximately 600 m. (.37 mi.) SE of SMGL/Skygold's mineralized zone.

The 2006 airborne survey shows structural continuity of low resistivity anomalies favourable for gold mineralization across the claim blocks. Freeport's recent sampling of one resistivity low confirms presence of anomalous gold in soil and rock samples. Please refer to the Detailed Geology and the SHV Deposits sections for more information.

Conclusion

In summary, work at Spanish Mountain indicates that gold mineralization may continue onto Freeport's claims. Skygold has commented that the orebody is open to the east, with "...potential for the discovery of additional deposits".

Recommended work includes sampling, trenching, and drilling to verify extension of the mineralized zone over Freeport's property.

Detailed Geology

Known placer workings in the area include the Cedar Creek Placers, the McKeown Placers, and the historic Bullion Pit - one of the largest placer gold mines in the world, measuring 1500 m by 450 m by 125 m (4920' by 1476' by 410'). Spanish Mountain has been proposed as the possible source of these gold-rich gravels (Minfile 093A 043).

The Spanish Mountain area comprises Upper Triassic sediments and volcanic rocks and is part of the Quesnel Terrane near its Eureka Thrust contact with the older Omineca Terrane.

Mineralization is hosted by highly folded and faulted metasedimentary rocks with some interstratified volcanics of the Nicola Group. The metasedimentary rock consists of slaty to phyllitic, dark grey to black shale and siltstone, grey limestone and some banded tuff, volcanic breccia and pillow lavas higher in the stratigraphy.

Spanish Mountain Developments

Work by Spanish Mountain Gold Ltd. (SMGL, formerly Skygold Resources) has been successful in outlining large areas of low-grade gold mineralization close to surface, with bulk mineable potential. Gold-bearing zones are stratigraphically controlled, trend NW-SE, and extend over 1.44 sq.km (over 0.56 sq.mi.), open in all directions. Spanish Mountain was recently interpreted as a Sediment Hosted Vein Deposit (see SHV Deposits section).

This section is a summary of published findings, including Geochemistry, Drilling, Metallurgy and Geophysics, as contained in the websites and sedar filings of SMGL/Skygold. Please see www.spanishmountaingold.com for current information.

Gold mineralization on Spanish Mountain is described as of two types:
  1. High grade quartz veins/stockworks with gold, galena, sphalerite, chalcopyrite, tetrahedrite and pyrite.
  2. 2. Lower grade, bulk tonnage ore represented by auriferous pyrite in a graphitic silty shale along a contact between argillites and greywackes.
According to SMGL/Skygold, "Drilling within the Main Zone has consistently intersected gold in the Upper Argillite horizon which now forms a sheet of mineralization traced along strike for approximately 800 metres with a width of approximately 500m and up to 135 metres thick" (2007.11.15). Freeport's claims are adjacent to and on strike with the Main Zone.

Geochemistry

Skygold's 2003 soil sample results from over 1400 samples revealed a large north-northwest trending zone of anomalous gold, over 1200 m long and up to 500 m wide (3937' by 1640'). Anomalous levels were generally greater than 300 ppb, with many over 1000 ppb. This trend is well illustrated on the Geochem and Drill hole location map. Some soil samples assayed as much as 37 grams gold per tonne (1.08 oz per ton).

Freeport's 2007 reconnaissance sampling survey revealed significant gold anomalies suggesting continuity of the mineralized zone eastward. Soil and rock samples collected over a geophysical 'resistivity low' reach over 400 ppb in soil and up to 0.13 g/t in weathered pyritic argillite and greywacke surface rocks -- the same rock types as seen at SMGL/Skygold's mineralized horizon.

Geophysics

In 2006, a DIGHEM electromagnetic/resistivity/magnetic survey was flown over Spanish Mountain. Geophysical resistivity lows reportedly correspond with broad zones of argillite favourable for sediment hosted gold; mineralization is associated with a contact between argillites and greywackes, with higher grade gold in greywacke host rock. The low resistivity anomalies extend onto Freeport's claims. Trenching over geophysical anomalies has successfully located new gold-bearing horizons.

Drilling & Results

Notable intersections reported by Skygold include 29.07 g/t gold (.847 oz/ton) over 10 metres (32.8') and 7.99 g/t gold (.233 oz/ton) over 19 metres (62.3'). Lower grade intercepts include 1.81g/t gold over 94.5 metres, 1.34g/t gold over 116 metres and 1.30g/t gold over 86.9 metres. A bulk sample of 2,100 tonnes taken in 2000 averaged 3.02 grams Au/ton.

Skygold noted, "...the zone may be getting wider to the east" (2007.09.10). Reverse circulation holes have been drilled within 54 metres (177 feet) of Freeport's west property boundary. Published results from the adjacent PESO claims include:
  1. DDH 559: 22.5 m (73.8') of 1.45 g/t (.042 oz/ton)
  2. Cabin Trench: 9.0 m (29.5') of 0.067 oz/ton (2.297 g/t)
  3. Green Pit: 1.0 m (3.3') of 17.74 oz/tonne (0.517 oz/ton)
SMGL/Skygold recently announced initial NI 43-101 compliant Resource Estimates for its Spanish Mountain property of 67.06 million tonnes averaging 0.81 g Au/t, or 1.75 million ounces in the Measured and Indicated categories (2008.04.03).

Conclusion & Recommendations

In summary, anomalous gold in samples from areas of low resistivity on Freeport's claims suggests continuity of SMGL/Skygold's gold-bearing Main Zone to the west.

A multi-stage program of sampling, trenching and drilling to verify extension of the mineralized zone over Freeport's property is recommended.

References

BC MINFILE 2004 093A 025 Bullion Pit
BC Ministry of Energy & Mines, 2004
BC MINFILE 2004 093A 025 Bullion Pit, Capsule Geology and Bibliography, Bullion Pit

BC MINFILE 2004 093A 043 Spanish Mt
BC Ministry of Energy & Mines, 2004
BC MINFILE 093A 043 Spanish Mountain, Capsule Geology and Bibliography

BCGS 1998 Sediment Hosted Gold
British Columbia Geological Survey, Geological Fieldwork 1998, Paper 1999-1
David V. Lefebure, Derek A. Brown and Gerald E. Ray,
The British Columbia Sediment-Hosted Gold Project

Kaiser 2005 Spanish Mt play Comes Alive
Kaiser Bottom-Fishing Report, Express 2005-02 (Jan 13, 2005)
Spanish Mountain play of Skygold and Wildrose comes alive

NRC Canadian Minerals Yearbook 2004, Gold
Natural Resources Canada, Minerals and Metals Sector 2004

Sediment Hosted Vein Deposits

Recent work on Spanish Mountain recognized that gold mineralization is not only found in quartz veining, but also in shale and siltstone sedimentary rocks. Spanish Mountain has recently been interpreted as a Sediment Hosted Vein Deposit (SHV) by Klipfel, a well-known authority on the subject. SHV deposits are associated with prolific placer gold fields. They usually occur in groups, with one large and associated satellite deposits. They are associated with prolific placer gold fields.

These deposits have typically low grade gold but represent some of the largest deposits in the world. Some possibly comparable examples include Muruntau (60-plus million ounces gold), Natalka (40-plus million ounces gold) and Sukhoy Log (30-plus million ounces gold). Deposits currently mined around the world tend to have similar if not lower grades to those being developed at Spanish Mountain.

Spanish Mountain SHV (from Skygold)

  • One of the first large sediment hosted bulk tonnage gold deposits interpreted in B.C., measuring over 1 sq.km. in size (over 0.5 sq.mi.).
  • Only 20% of the current soil-geochemical and geophysical anomalies has been tested with Diamond Drilling.

Characteristics

According to Klipfel (2005), common features seen in SHV deposits as a group include tectonic setting, host rocks, alteration style, metal content, hydrothermal fluid chemistry, and to some extent, absolute and relative timing of formation.

SHV deposits are hosted in extensive belts of shale and siltsone deposited along the edges of continents known as passive margins. SHV deposits are found in sedimentary belts that have undergone fold-thrust deformation.

SHV are gold-only systems and metallurgically simple, with only minor amounts of other metals (arsenopyrite, stibnite, W, Bi and Te; no or minor Cu, Pb, Zn sulfides). Quartz and quartz-carbonate veins with gold are the hallmark of SHV.

Common alteration includes carbonate and/or sericitic alteration and pyritization of the host rock. Bleaching of the host rock produces pastel colors.

SHV deposits usually occur in rocks of late Proterozoic to early Paleozoic age. Most SHV are mid to late Paleozoic. Some are younger.

History

Spanish Mountain Area

1858-65
  • The Cariboo has been known for its placer mining since the mid 1800's with the discovery of gold in Cedar Creek, the Fraser River, and at Barkerville in the 1860's. That sparked the Cariboo Gold Rush - one of the largest that the world has ever known, bringing 33,000 miners, and even camels, from the California gold fields.
  • It is estimated that over 3 million ounces of gold were mined from the Cariboo placers. The Bullion Pit alone produced over 173,000 ounces of gold from 1892-1945: Many now believe Spanish Mountain is its source, as well as for the gold found in Spanish and Cedar Creeks.
1920-30
  • Gold discovered in Spanish and Cedar creeks draining Spanish Mountain, with values up to 49 ounces per pan (Report of the Minister of Mines, 1926)
  • Thick overburden and forest cover made exploration of in situ deposits challenging.
1933
  • Gold-bearing quartz veins discovered on the northwest slope of Spanish Mountain, after some 70 years of placer gold operations in the area.
1938
  • Two adits driven to follow gold-rich quartz veins.
1947
  • The first drilling program resulted in limited success and Spanish Mountain remained largely unexplored until the 1970's.
1970-2000
  • Exploration for high grade veins recommenced, with intermittent work over the next thirty years.
  • Freeport stakes Spanish Mountain Gold property.
2000-06
  • 2,100 tonne bulk sample from adjacent Spanish Mountain property (Skygold/Wildrose, now Spanish Mountain Gold Ltd., SMGL) milled at Mount Polley Mine, with average 3 g/t gold returned. Extensive exploration undertaken, followed by drilling.
  • Spanish Mountain interpreted as a Sediment Hosted Vein deposit by Klipfel.
  • Geophysical Mag-EM-Resistivity Airborne Survey flown over Freeport's claims.
2007
  • Freeport's reconnaissance soil and rock sampling survey delineated gold anomalies associated with a geophysical resistivity low identified by the airborne survey, indicating eastern extension of mineralized zone to the west.
2008-10
  • SMGL/Skygold is now working towards outlining a bulk mineable deposit, with Measured and Indicated Resources of 3.94 million ounces of gold (210 MT at 0.581g/tonne at a cut off grade of 0.3g/tonne) reported in May 2009. Freeport's claims are less than half a mile (600 m) east of the mineralized zone, reportedly open towards the east.

Photo Gallery

Maps

Media: Spanish Mountain Gold

BC MINFILE 2004 093A 025 Bullion Pit
BC Ministry of Energy & Mines, 2004
BC MINFILE 2004 093A 025 Bullion Pit, Capsule Geology and Bibliography, Bullion Pit

BC MINFILE 2004 093A 043 Spanish Mt
BC Ministry of Energy & Mines, 2004
BC MINFILE 093A 043 Spanish Mountain, Capsule Geology and Bibliography

Kaiser 2005 Spanish Mt play Comes Alive
Kaiser Bottom-Fishing Report, Express 2005-02 (Jan 13, 2005)
Spanish Mountain play of Skygold and Wildrose comes alive

BCGS 1998 Sediment Hosted Gold
British Columbia Geological Survey, Geological Fieldwork 1998, Paper 1999-1
David V. Lefebure, Derek A. Brown and Gerald E. Ray,
The British Columbia Sediment-Hosted Gold Project