Page 3
Xama Property Assessment Report
October, 2014
INTRODUCTION
The Xama property (the “Property”) holds potential for the discovery of a porphyry molybdenum
deposit similar to Endako, 21 km to the northwest. Anomalous molybdenum values in stream
sediments and soils resulted in the discovery of porphyry style molybdenum mineralization at
the Owl (Minfile 93F 019) and Gel (Minfile 93F 020) showing areas, both within the Property, by
Amax and Anaconda in the late 1960’s. The Property has been prospected intermittently since
that time with additional prospecting, geological mapping, soil, rock and stream sediment
sampling, ground geophysics (IP surveys) and 875 m of percussion drilling in 18 holes.
This report describes a structural analysis of the Xama property and its regional setting
conducted on behalf of the property’s owners, John A. Chapman, Gerald G. Carlson, Garry D.
Bysouth and Gary W. Kurz. The study was conducted during the period August 1
st
to 25
th
, 2014,
at a cost of $5,400.
Figure 1 -
Xama Property Location and Infrastructure Map (from BC MapPlace).
Page 4
Xama Property Assessment Report
October, 2014
PROPERTY DESCRIPTION AND LOCATION
The XAMA mineral property is located in central British Columbia, 160 km west of the City of
Prince George, 12 km south of the resource (timber and mining) Village of Fraser Lake and 21
km southeast of the Endako Molybdenum Mine, the 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.
The Property is located in the Omineca Mining Division, on NTS sheet 93F/10 and centred at
UTM 381500 E, 5978000 N (NAD 83, Zone 10N), as shown on Figure 1.
M
INERAL
T
ENURES AND
O
WNERSHIP
The Property consists of seven BCMTO mineral tenures covering 3,579 ha. Registered owners
are John A. Chapman (Free Miner Certificate no. 104633 – 25%), Gerald G. Carlson, (Free
Miner Certificate no. 104271 – 25%), held by Carlson on behalf of KGE Management Ltd., Garry
D. Bysouth (Free Miner Certificate no. 103905 – 25%) and Gary W. Kurz (Free Miner Certificate
no. 114787 – 25%).
Table I. Xama Property Tenures.
ACCESSIBILITY, CLIMATE, PHYSIOGRAPHY, LOCAL RESOURCES
AND INFRASTRUCTURE
A
CCESS
The Property has excellent access via a network of all-weather logging roads that connect to
Highway 16 near the community of Lejac, 2 km east of Fraser Lake village. Secondary logging
roads provide access to most parts of the Property (see Figure 2).
C
LIMATE AND
V
EGETATION
The climate is typical of central British Columbia with below freezing temperatures (0º C to -40º
C) from November to April and periods of hot weather in the summer ranging from 5º to over 30º
C. Precipitation averages 430 mm a year, with a substantial portion in the form of snow
Page 5
Xama Property Assessment Report
October, 2014
averaging 90 cm per year. In typical years, field work can usually start in April and continue
through October. Drilling can be carried out year round.
Figure 2 - Xama Property tenure map (from BC MapPlace).
T
OPOGRAPHY AND
V
EGETATION
The topographic relief is moderate throughout the claim area, ranging from 800 m, in the valley
to 1,500 m on the mountain tops. Vegetation is variable depending upon soil conditions and
southerly exposure. Sparse pine and grasses are common on glacial outwash sands on south
slopes. The valley bottom is marked with several "kettle" lakes and in some areas, with a near-
surface water table, the deciduous vegetation is abundant. North slopes have good stands of
spruce, but in some areas contain heavy windfalls.
L
OCAL
R
ESOURCES AND
I
NFRASTRUCTURE
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.). Infrastructure in the area is primarily a well maintained network of logging roads that
transect the area of the claims. The nearest power lines, gas pipelines and rail lines are located
at Fraser Lake along the Highway 16 corridor.
Page 6
Xama Property Assessment Report
October, 2014
Both Fraser Lake and Prince George are main supply centres for work on the property. A large
variety of geological contractors as well as all types of necessary heavy equipment, camp
supplies, work personnel and expeditors is available for hire in both communities. Daily jet
services link Prince George with Vancouver, B.C.
GEOLOGICAL SETTING AND MINERALIZATION
R
EGIONAL
G
EOLOGY
The Property is located in the Interior Plateau of British Columbia, within the Intermontane Belt,
late Paleozoic to late Tertiary sedimentary and volcanic rocks belonging to the Stikine, Cache
Creek and Quesnel Terranes. The Yalakom and Fraser Fault systems bound the Interior
Plateau to the southwest and northeast, respectively. The Property lies within eastern edge of
the Stikine Terrane, near its boundary with the Cache Creek Terrane and immediately south of
the Skeena Arch (Figure 4). Strata of the Stikine Terrane in central British Columbia include late
Paleozoic to Tertiary island and continental margin arc assemblages and epicontinental
sedimentary sequences.
The oldest stratigraphic assemblages consist of Upper Triassic to Middle Jurassic island arc
volcanics of the basaltic Stuhini Group and calc-alkaline Hazelton Group (Diakow et al. 1997).
These rocks were intruded by the mainly Jurassic Topley plutonic rocks, including the Endako
Batholith, and experienced at least two distinct cycles of uplift, erosion and related sediment
deposition. These extensive sedimentary deposits include Upper Jurassic black mudstone,
chert pebble conglomerate, and sandstone of the Bowser Lake Group (Ashman Formation) and
the overlying Lower Cretaceous Skeena Group.
Rocks of the Hazelton and Bowser Lake groups are overlain by Upper Cretaceous and
Paleocene continental volcanic arc intermediate volcanic rocks and related sedimentary rocks of
the Kasalka Group (Diakow et al. 1997). Widespread Eocene volcanic arc related extensional
felsic volcanic rocks and minor sedimentary rocks of the Ootsa Lake Group overlie the older
rocks and are themselves overlain on higher ridges by basalt and andesite of the Eocene
Endako Group (Diakow et al. 1997).
The Endako Batholith is the key geologic feature of the area, underlying much of the claim
group and extending for almost 100 km in a northwestern direction, with a width of up to 40 km.
It is a composite batholith that comprises five temporally distinct plutonic suites, only one of
which is mineralized. These plutonic suites include early foliated hornblende ± biotite diorites,
intermediate-age unfoliated hornblende ± biotite diorites, and late granodiorites to
monzogranites. The youngest phases host the Endako molybdenite deposit.
Data presented by Villeneuve et al, (2001) and Whalen et al (2001) show that the batholith had
a lengthy emplacement history, covering approximately 75 my (see Table II), with evidence for
periods of magmatic quiescence between the major plutonic phases. The oldest magmatic suite
of the Endako batholith, the Stern Creek suite, is dated at 220 Ma and comprises foliated
gabbros and diorites. Mafic to intermediate plutons of the Stag Lake suite range in age from 180
Ma to 161 Ma. The Francois Lake suite is divided into two subsuites, the Glenannan subsuite
dated at 157 Ma to 155 Ma and the 149 to 145 Ma Endako subsuite that hosts the Endako
molybdenite deposit. Specifically, the Endako deposit is associated with the 145.1 ± 0.2 Ma
Casey phase monzogranite and local variations of this phase (see Property Geology).