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Properties

– British Columbia Properties

– Brenda Gold-Copper Project, BC, Canada

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Summary:

Jerry D. Blackwell, P. Geo. B.C., Advisor to the Board of Canasil, is the designated Qualified Person for the Company's technical information in accordance with National Instrument 43 101.

Introduction:

Canasil’s Brenda property is an advanced exploration project centrally located in the core of the Kemess-Toodoggone porphyry gold-copper/epithermal gold district. The property comprises 178 mineral claim units covering 44.0 square kilometres and is situated approximately 25 km north west of the 300,000 ounces gold per year Kemess South past producing mine. The property is 100% owned by Canasil and all claims are valid to May 31, 2018. Cumulative exploration expenditures to date amount to over C$3,500,000, including geochemical surveys, satellite, airborne and ground geophysical surveys, and over 9,700 metres of diamond drilling in 63 drill holes.

Exploration work on the Brenda property to date has confirmed the potential for a large gold-copper porphyry system, which is open for extension and warrants further exploration. Diamond drilling to date has returned significant gold-copper porphyry mineralized intersections, e.g. DDH-97-3 with 39.95 metres of 1.12 g/t gold and 0.18% copper, BR-03-07 with over 160 metres with 0.565 g/t gold and 0.079% copper, and BR-07-04 with 58 metres of 0.70 g/t gold and 0.12% copper. These grades compare favourably with the average proven gold and copper grades from the South Kemess mine (0.712 g/t gold and 0.234% copper).and observed in known porphyry deposits in the Kemess-Toodoggone district.

The gold-copper porphyry system identified by past drilling covers an area of 500 metres by 200 metres. This zone is located south west of a very large target zone, outlined by the geochemical and geophysical signatures and drill vectors, and covering over an area of approximately 2,000 metres by 750 metres. This area has not been tested by drilling and further exploration and drilling is required to explore the potential for extending the gold-copper porphyry system and identifying higher-grade zones. Diamond drilling and geophysics programs in 2007 have identified porphyry gold-copper mineralization down to a depth of 550 metres, with increasing gold and copper grades at depth. This indicates the potential for a large deep-seated gold-copper porphyry system for future testing.

Location, access and infrastructure

The Brenda Property is located in the core of the Kemess-Toodoggone porphyry gold-copper/ epithermal gold district in north central British Columbia, approximately 450 km north of Prince George and 25 km northwest the past producing Kemess South Mine. The property has excellent road access from Prince George by way of the Omineca Resource Access Road and logging roads, with direct road access onto the property. The Kemess mine airfield is located approximately one hour drive from the property, and the Sturdee Valley airstrip is located 21 km west of the property. The significant infrastructure developed for the Kemess mine (air and road access, electricity etc.) presents a major advantage for the cost-effective development of the property. The topography in the project area is moderate offering ease of access in the project area, and the porphyry target zone is at a moderate elevation of 1,600 metre.

Project Geology

The property is in the Toodoggone-Kemess Gold Camp, situated within a Mesozoic volcanic arc assemblage along the eastern margin of the Intermontane Belt, a northwesterly trending belt of Paleozoic to Tertiary sedimentary, volcanic and intrusive rocks. The region is dominated by northwest and northeast trending block faults and the Brenda property is located at the transition from predominantly porphyry type gold-copper deposits to the south to epithermal type gold-silver deposits to the northwest.

The Brenda property is underlain by Upper Triassic Takla Group volcanic rocks, uncomformably overlain by Lower to Middle Jurassic Toodoggone volcanic stratigraphy of the Hazelton Group, and intruded by monzonite and felsic plutons, dykes and sills, thought to be co-magmatic with the Toodoggone rocks. Numerous precious metal-bearing epithermal type vein deposits and deeper seated porphyry gold-copper deposits are associated with this magmatic event.

Early Exploration

The project was initially recognized due to the occurrence of placer gold in Jock Creek and epithermal gold-bearing quartz veins in the west and northwest of the property. Samples from these veins returned values of up to 42.16 grams/tonne gold and 1,628.3 grams/tonne silver.

Subsequent geochemical and geophysical surveys indicated the potential for porphyry type mineralization on the property. This work outlined a 900 metre by 400 metre gold and silver geochemical anomaly, named the White Pass zone, located in the centre of the property, and two other coincident geochemical and geophysical targets, which include the East Creek and Creek zones. Between 1992 and 1997, approximately 2,900m of diamond drilling was completed in 24 holes with an average depth of 120m, restricted to an area of 350m x 100m within this anomalous zone. Significant intersections from this drilling are listed below:

Hole
Interval (m)
Length (m)
Cu (%)
Au (gpt)
DDH 93-1
9.14 – 57.00
47.86
0.130
1.10
DDH 93-3
12.20 – 121.00
108.80
0.144
0.48
DDH 96-3
15.54 – 41.75
26.21
0.100
0.92
DDH 96-7
7.30 – 69.80
62.50
0.140
0.84
DDH 97-1
148.0 – 172.8
24.80
0.130
1.12
DDH 97-2
35.35 – 75.30
39.95
0.180
1.12


Exploration – Northgate Option 2002 to 2004:

Northgate Minerals corp. undertook exploration programs in the 2002, 2003 and 2004 field seasons under an Option and Joint Venture agreement concluded in July 2002.  This work included airborne high resolution magnetic, radiometric and satellite imaging surveys followed by 1,650m of diamond drilling in 4 holes in the White Pass zone in 2002. Drill programs were completed in 2003 with 1,485 metres of drilling in 5 diamond holes, and in 2004 with 1,446 metres of drilling in 5 diamond drill holes. In November 2004 Northgate terminated the option and joint venture agreement and Canasil retains 100% interest in the property.
Based on the results from these programs, Northgate confirmed the discovery of a Kemess-type gold-bearing porphyry system with alteration comparable to that of the Kemess North deposit. Mineralized zones, containing copper and gold, were intersected in all drill holes, confirming the presence of a large gold-copper porphyry system. Diamond drilling by Northgate tested the mineralized system to a depth of approximately 450 metres and returned significantly longer intersections of gold and copper mineralization (up to 243 metres) than those identified in previous drilling as shown in the table below, together with a table showing average grades from the Kemess South past producing mine and Kemess North deposits for reference.

Brenda project 2002 – 2004 Significant Drill Intercepts

Hole
From
To
Length (m)
Cu %
Au g/t
Drill intercepts 2002 – 2004
BR-04-10
91.4
251
159.6
0.038
0.411
and
263
346
83
0.021
0.496
incl.
331
346
15
0.032
0.888
BR-04-12
65.5
103.6
38.1
0.091
0.362
and
108.2
128
19.8
0.08
0.539
and
131.1
144.8
13.7
0.097
0.346
and
153.9
169.2
15.3
0.072
0.285
BR-04-14
142
156
14
0.017
0.601
and
343.1
448
104.9
0.031
0.399
Incl.
418.4
442
23.6
0.029
0.755
BR-03-06
58.9
120.8
61.9
0.128
0.440
BR-03-07
100.5
262.1
161.6
0.079
0.565


Kemess Average Grades

 
M.T.
Au M. Oz.
Cu M. lbs.
Cu %
Au g/t
South Proven
109.36
2.5
564
0.234
0.712
South Indicated
47.9
0.74
178
0.168
0.481
North Indicated
407
5.4
2,000
0.224
0.409
North Inferred
107
1.2
400
0.18
0.36

Adjacent property information: the reader is cautioned that any technical information provided about adjacent properies is intended for reference purposes only and does not imply that Canasil will obtain similar results from its project.

 Geological mapping Program – July/August 2006:

A geological mapping program, carried out by Dr. Andre Panteleyev, outlined a large advanced argillic alteration zone, which is modeled as the upper levels of a copper gold porphyry system, and which has not been tested by past drilling.

The alteration zone is capped with quartz alunite and lies immediately to the northeast of the previously drilled main White Pass copper gold porphyry area. The zone trends north-south and measures approximately 1200 metres north-south by 800 metres east-west, and is open to the south. There has been no drilling within this altered zone. Past drill holes immediately adjacent to the alteration zone to the southwest (93-03, 03-06, 03-07, 04-10 and 04-14) are highly anomalous in copper and gold, with strong argillic alteration (illite) overprinting albite and propylitic alteration, some with extensive gypsum and fluorite veining. Grade and intercept lengths appear to be increasing to the northeast towards the large newly mapped alteration zone. The alteration is characterized by strong clay (illite) alteration with iron oxides after pyrite, pyrite, minorsecondary copper minerals and sphalerite.

Quartz alunite ribs, or ‘ledges’, are present at higher elevations. The zone is associated with anomalous gold and molybdenite soil geochemistry and is rimmed by anomalous zinc and lead soil geochemistry. The features of this large alteration zone are characteristic of the upper levels of copper gold porphyry systems.

Diamond drilling and Geophysics – July/August 2007:

A 1,708 meter diamond drill program in 5 diamond drill holes, as well as a 3-dimensional Induced Polarization geophysical survey, was completed during the 2007 field season. These programs identified a deep porphyry gold-copper system at the Brenda project. Drill holes BR-07-04 and BR-07-05, drilled to a depth of 562 metres and 530 metres respectively, both intersected broad gold-copper mineralized zones with increasing grades at depth, and which are also open to depth. Drilling was limited to a maximum depth of 550 metres based on the availability of drill rods and appropriate drill bits required for deeper drilling.

The average grade of 5 intercepts from both holes above a depth of 450 metres (Nos. 1, 2, 3, 5 and 6 in the table below) was 0.48 g/t gold and 0.079% copper over a combined intercept width of 393.72 metres. The average grade of 3 intercepts below 450 metres (Nos. 4, 7 and 8 below) was 0.68 g/t gold and 0.116% copper over a combined intercept width of 92.84 metres. A significant number of samples returned assays of over 1.0 g/t gold and 0.15% copper.

The increasing gold and copper grades at depth and the strength of the highly altered mineralized structure observed in the drill core, in conjunction with the strong anomalies observed in the geophysical survey, are highly encouraging and indicate the potential for a large deep seated gold-copper porphyry system at the Brenda project. The mineralized environment observed at the Brenda project appears similar to that of the deep-seated Cadia East underground gold-copper porphyry deposit of Newcrest Mines in Eastern Australia (described below), which was discovered by drilling below a depth of 600 metres. Significant mineralized intercepts from drill holes BR-07-04 and BR-07-05 are listed below:

Brenda Gold-Copper Project – 2007 Diamond Drill Program
No.:
Intercept
Interval – Metres
From To
Width
Metres
Gold
g/t
Copper
%
Gold Eqv.
g/t*
Diamond Drill Hole BR-07-04
1
Zone 1
90.12
260.00
169.88
0.466
0.088
0.697
 
Includes
200.00
260.00
60.00
0.592
0.111
0.884
2
Zone 2
312.00
378.00
66.00
0.310
0.038
0.410
3
Zone 3
420.08
460.00
39.92
0.418
0.080
0.628
4
Zone 4
504.00
561.96
57.96
0.707
0.119
1.020
 
Includes
508.00
546.00
38.00
0.867
0.141
1.238
Diamond Dril Hole BR-07-05
5
Zone 1
110.00
188.03
78.03
0.610
0.104
0.884
6
Zone 2
336.11
376.00
39.89
0.625
0.062
0.788
7
Zone 3
459.52
483.90
24.38
0.670
0.114
0.970
8
Zone 4
488.89
499.39
10.50
0.570
0.101
0.836
* Gold Equivalent based on $650 per oz. Gold, $2.50/lb Copper, assuming 100% recoveries


The gold copper mineralization is associated with quartz magnetite stockworks in highly altered volcanics with potassic alteration. The mineralization increases in intensity and is open to depth below 450 metres, beneath a series of thick branching barren quartz monzonite dykes. The barren dykes have disrupted the upper levels of the porphyry system, and lowered the grade in envelopes near the dyke contacts.

No intrusive rocks, which form the core of the mineralized system, were observed within the zones drilled, except for the late stage intrusive dykes. This indicates that there is potential for a large gold-copper porphyry system, associated with a deeper buried intrusive, below a depth of 450 metres. In order to investigate this system at depth and along strike, the above drill holes should be deepened to a depth of over 1,000 metres, as well as additional holes drilled along strike. The mineralized system averages 300 to 400 metres in width, and has been traced along a strike length of 400 meters by drilling, with a potential strike length in excess of 1,000 metres indicated by the chargeability anomalies observed in the 3-Dimensional Induced Polarization geophysical survey.

The geophysical survey covered approximately 30 line-kilometres over an area of 1,600 metres by 2,500 metres. The survey and interpretation models used provide chargeability and resistivity profiles down to a depth of 500 metres. The results showed significant chargeability anomalies, highlighting the pyritic and phyllic envelopes around the gold-copper mineralized zone. These signatures extend down to the extent of the survey depth of 500 metres in the sectional views. They also outline the potential gold-copper mineralized zone in the plan views at depths of 300 metres to 500 metres, with anomalies extending over a strike distance of approximately 1,000 metres. These features are a further indication of a potentially large buried mineralized structure. A deeper sensing geophysical survey, which can penetrate to 1,000 metres depth, may be used in a future program for further definition of the structure at depth.

Proposed exploration Program:

Canasil currently has a drill permit for 6,000 metres of diamond drilling from 10 drill locations at the Brenda project. In order to investigate the deep seated gold-copper porphyry system, it is recommended to carry out a deep sensing Titan geophysical survey, which has been successfully used by Northgate/AuRico Gold at the neighbouring North Kemess underground porphyry deposit. This should be followed by a number of deep drill holes to test the potential porphyry zone below the 2007 drill holes BR-07-03 and BR-07-04. These drill holes would be drilled to a depth of 1,000 metres to 1,250 metres from the same collar positions as the previous drill holes at the top of the porphyry zone. Permits have also been obtained for collar locations lower down on the flank of this zone to allow testing of the deeper areas using shorter drill holes of approximately 500 metres to 750 metres. These drill holes would be designed to extend into and test the presumed lower intrusive formation, where higher gold and copper grade mineralization is expected. Budgeted expenditures for this program would be $250,000 for the Titan survey and $250 per metre all in costs for the drill program.