Summary Geology Report:  


French Peak Property


 


Suskwa River Drainage


Omineca Mining Division


British Columbia, Canada


NTS 93M/7W


Latitude 55° 22’ N   Longitude 127° 55’ W


 


For:


French Peak Resources Inc.


Suite 1700


300 Park Avenue


New York, NY


USA  10022


 


Author:


George E. Nicholson, P.Geo, FRGS


 


August 31, 2005






 









 


 


Table of Contents



	
            Table of Contents
 	
            2
 
	
            List of Figures
 	
            3
 
	
            Glossary of Terms
 	
            3
 
	
            1.
 	
            Summary
 	
            4
 
	
            2.
 	
            Disclaimer
 	
            6
 	
             

	
            3.
 	
            Introduction and Terms of Reference
 	
            7
 
	
            4.
 	
            Claim Acquisition and Information
 	
            8
 	
             

	
            5.
 	
            Location and Access
 	
            10
 	
             

	
            6.
 	
            Climate, Local Resources, Infrastructure and  Physiography
 	
            11
 
	
            7.
 	
            History
 	
            12
 
	
             
	
            1967-1969  Suskwa Group
 	
            12
 
	
             
	
            1969-1972 French Peak Property
 	
            12
 
	
             
	
            1984-1990
 	
            13
 
	
             
	
            1990
 	
            13
 
	
            8.
 	
            Geology
 	
            14
 
	
             
	
            Alteration
 	
            14
 
	
             
	
            Mineralization
 	
            14
 
	
            9.
 	
            Conclusions
 	
            17
 
	
            10.
 	
            Recommendations and Budget
 	
            18
 	
             

	
             
	
            Budget:  Phase 1
 	
            19
 	
             

	
             
	
            Budget:  Phase 2
 	
            19
 	
             

	
            11.
 	
            Statement of Qualifications
 	
            20
 
	
            Appendix I:  Claim Information
 	
            21
 
								



 






 



	
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List of Figures



	
            Figure 1. Location Map
 	
            7
 	
             

	
            Figure 2. Claim Map
 	
            12
 
	
            Figure 3. Geology Map
 	
            21
 
				



 


Glossary of Terms


Advance Royalty Payments: Means from time to time payments to the Optionor by the Optionee before Commencement of Commercial Production of Minerals.


GSC:  Geological Survey of Canada


Net Smelter Return:  Means for any period the gross proceeds received by the Optionee from the sale of Minerals produced from the property less expenses.


Porphyry Copper:  disseminated copper minerals in a large body of porphyry, a rock containing phenocrysts in a fine grained mass


Metasedimentary:  sedimentary rocks that have been subjected to heat and/or pressure resulting in some metamorphism


Faults:  large shear zones with significant amount of movement between adjoining rock bodies


ppm:  parts per million


ppb:  parts per billion






 



	
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            1.
 	
            Summary
 



The French Peak property has not received adequate exploration in the past 30 years. Early work discovered a large copper-gold-silver porphyry system with copper values in the 0.1% to 0.2% range with molybdenum up to 0.02%. Very few gold assays were collected while a few silver assays yielded up to 0.65 oz/ton. Sulphide float discovered in 1984 yielded 7.05 ppm Au and 700.8 ppm Ag. Very little sampling below the weathered zone was done and several zones remain untested.


In light of increased metal prices a concerted exploration programme utilizing advances in geochemical assaying, geophysical surveying, and geological knowledge is recommended to determine the merits of the property. A Phase I budget is proposed costing $16,000. Success contingent, Phase II is projected to cost $85,000. 






 



	
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Figure 1. Location Map






 



	
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            2.
 	
            Disclaimer
 



The author has prepared this report based upon information believed to be accurate at the time of completion but which is not guaranteed. The author has relied on two principal sources of information for the data contained in this report, that being the work completed and unpublished report provided by a former owner of the French Peak showing, and publicly available federal and provincial government documents such as geological maps and reports on the area.






 



	
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            3.
 	
            Introduction and Terms of Reference
 



French Peak Resources Inc. is a private mineral exploration company based in New York, New York that has acquired minerals rights to the French mineral claims. The claims were staked January, 2005 to cover an area identified as containing a large area of anomalous porphyry copper-gold-silver-molybdenum mineralization. The author was engaged by Mr. Robert Waters, President of French Peak Resources Inc. to review the available literature, visit the property, prepare this report and make recommendations.






 



	
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            4.
 	
            Claim Acquisition and Information
 



The French Peak group consists of the mineral claim French. The claim covers 183.83 hectares. The claims were acquired from David Deering, of Burnaby, BC. They were acquired by French Peak Resources Inc. for al payment of $66,500 (USD). Deering retains a 21⁄2% Net Smelter Return. Advance annual royalties of $20,000 will commence on January 17, 2010. The claims will be transferred to Robert Waters, the President of French Peak Resources Inc. who will hold them in trust for the company.


The claims are located in the Omineca Mining Division at coordinates: Latitude 55° 27’ N and longitude 127° 55’ W and on map sheet NTS: 93M/07W and are outlined in Figure 2.


The pertinent property information is as follows:



	
            Claim Name

 
 	
            Tenure No.
 	
            Hectares
 	
            Anniversary Date
 
	
            French
 	
            503975
 	
            183.83
 	
            January 17, 2006
 



 


In British Columbia, for assessment purposes in the first two years, $0.40 per hectare of work or cash in lieu per unit plus 10% filing fees are due to maintain the claims in good standing. Thereafter it rises to $0.80 per hectare plus 10% filing fees. The claims have not been legally surveyed. 



 



	
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Figure 2. Claim Map






 



	
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            5.
 	
            Location and Access
 



The French Peak claims is located in the Omineca Mining Division on N.T.S. Mapsheet 93M/7W. The claims are 65 km northeast of Smithers, BC; in the Suskwa River drainage.


At present, the claims are accessed by helicopter from Smithers. A major logging road up the Suskwa River comes within 15 km of the property. A bulldozer track following the Suskwa River runs 2 km south of the property.






 



	
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            6.
 	
            Climate, Local Resources, Infrastructure and
 



Physiography


The French Peak claim covers an alpine plateau and treed creek valleys at an average of 1500 metres. French Peak is a conical feature 3 km east of the property. The property area is mostly overburden covered. Alpine vegetation occurs above 1800 m while mature spruce, hemlock and cedar forests occur at lower elevations. Given the location in north central BC, winters are cold with average temperatures of -20°C to -30°C and 3-5 metres of snow. Snowfall lasts from mid-October to mid-June. Summers are dry and cool with temperatures averaging only 15°C.


The property is 65 km northeast from Smithers, a major infrastructure hub for the region. All services are available here:  airports, roads, rail, hospitals, police, groceries and supplies, heavy equipment and qualified equipment contractors.






 



	
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            7.
 	
            History
 



1967-1969 


Suskwa Group


Property worked by Mastodon-Highland Bell Mines. Work included geology, soil geochemistry, geophysics, and bulldozer trenching.


Soil geochemical surveys outlined a number of copper anomalies in the 1000 to 2500 ppm range. IP surveys located several conductive zones. Subsequent bulldozer trenching totalling 1500 metres uncovered mineralized intrusive and sediments, though much of the trenching failed to reach bedrock. Mineralized zones tended to be highly weathered. Chip sampling of exposed rocks returned copper values frequently below those of the overlying soils, suggesting mineral concentration within the soils. However, a soil study by Barringer Research Ltd. concluded that, due to the acidic nature of the soils, mineral concentration was not likely, and that a higher grade source may be producing the soil anomalies.


Conductive zones outlined by IP were found to correlate with zones of higher sulphides, showing the effectiveness of geophysics as an exploration tool for the property.


Results from chip sampling of trenches included 33.5 metres of 0.22% Cu and 1.1 oz/Ton Ag. No gold assays were recorded.


1969-1972


French Peak Property


The property was allowed to lapse in 1969 by Mastodon-Highland Bell and subsequently was staked by Silver Standard Mines Ltd. Silver Standard’s work included further geology, soil geochemistry, geophysics and bulldozer trenching. In 1971, six diamond droll holes totalling 460 metres were drilled. 


Further soil geochemistry, geophysics, and trenching were undertaken by Silver Standard to help delineate the best zones for diamond drill testing. Drilling was done to sample mineralized zones below the weathering profile. All holes were drilled close to the western intrusive/sediment contact. Overall, holes averaged about 0.1% 


 



	
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Cu, 0.02% Mo. The best result was 27.5 metres with 0.22% Cu, 0.011% Mo. Only one gold assay was reported (0.003 oz/ton). A few silver assays were reported (in the 0.04 to 0.64 oz/ton range.)


The drilling only tested what was believed to be the most promising zone from previous work. A number of soil and geophysical anomalies topographically above any trenching were never tested. The property was subsequently allowed to lapse.


1984-1990


The property was staked by Ryan Exploration Company Ltd. on June 27, 1984 to cover a 2.1 ppm Ag stream sediment anomaly from the 1984 BC Govt. open file geochemical release for mapsheet 93M.


Work for Ryan Exploration included one day of prospecting in 1984 and a short geological, soil and rock geochemistry and geophysics program in 1985. This work was undertaken without access to data from any of the previous work.


Limited soil geochemistry and geophysics confirmed the usefulness of these techniques for further exploration on the property. Rock geochemistry indicated the presence of low but significant gold values in the mineralized zones (highs of 0.11 to 0.21 ppm Au), as well as significant silver values (frequently 2.0 to 7.0 ppm with a high of 23.0 ppm Ag). A sample of sulphide rich float assayed 7.05 ppm Au and 700.8 ppm Ag.


1990


Sporadic prospecting has ensued in the area of the claims from 1990 onwards.






 



	
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            8.
 	
            Geology
 



The property is underlain by Jurassic to Lower Cretaceous Bowser lake Group sediments which have been intruded by Late Cretaceous Bulkley Intrusions (Figure 3).


The sediments are comprised of siltstone to conglomerate with minor interbedded volcaniclastic rocks. The intrusive rocks can be divided into 3 units. An early quartz monzonite was intruded by a feldspar porphyry which was in turn intruded by a Biotite Feldspar porphyry.


Post mineralization dykes with magnetite intrude earlier rocks. Major north-south, and east-west fault/lineaments transect the area.


Alteration


The sediments have been hornfelsed by the Bulkley Intrusions. Within the intrusive rocks, especially along the western contact with the hornfelsed sediments, moderate to locally intense kaolinization and weak to moderate silicification occur.


An extensive pyrite halo, 2 km wide in an east-west direction by 1.5 km in a north-south direction, can be traced on the property.


Mineralization


Sulphide mineralization increases with increasing alteration intensity. Sulphides are predominately pyrite (2 to 5%, locally 20%), with lesser chalcopyrite, galena, sphalerite, tetrahedrite and arsenopyrite.


Pyrite occurs disseminated within the sediments and intrusive rocks and within later quartz ( calcite stringers. The remaining sulphides are found primarily in late stage Quartz stringers. Massive pyrite ( arsenopyrite veins (1 to 10 cm wide), occur locally.


Results from rock chip sampling of bulldozer trenches ranged from trace mineralization to 33.5 metres of 0.22% Cu, 1.1 oz/ton Ag. Drilling results form 6 holes averaged around 0.1% Cu with 0.02% molybdenite. The best drill intersection was 27.5 metres with 0,22% Cu, 0.011% Mo. Only one gold assay is reported from the trenching and 



 



	
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Figure 3. Geology Map



 



	
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drilling programs. Later chip sampling of the trenches returned results as high as 0.21 ppm Au. A grab sample of sulphide rich float assayed 7.05 ppm gold and 700.8 ppm silver.






 



	
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            9.
 	
            Conclusions
 



Mineralization on the French Peak property is now being viewed primarily as copper-gold-silver in a porphyry stockwork setting. Late stage cross-cutting quartz-calcite-sulphide veins within an intrusive quartz-feldspar porphyry and the adjacent volcanic and sedimentary rocks are demonstrative of epigenetic activity.


The last serious exploration efforts were over 30 years ago that delineated a large area of lower grade copper, molybdenum and zinc ore body. Higher grade sections are not entirely understood. With increased metal prices, a greater knowledge of depositional models, and advances in geochemical and geophysical techniques, a concerted exploration program needs to be undertaken on the French Peak claim to fully assess its potential.






 



	
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            10.
 	
            Recommendations and Budget
 



Previous work on the property has discovered porphyry type mineralization with 0.1 to 0.22% copper and associated molybdenum and zinc values over significant widths by following up geochemical and geophysical surveys with trenching and diamond drilling. With recent price increases for the metals found on the property, the grades of mineralization are interesting and many anomalies remain untested.


The limited analysis for gold and silver suggest that these elements may occur with the copper mineralization in economically significant concentrations. The property should be re-evaluated as a potential copper-gold-silver deposit.


Work to date shows that the mineralization is responsive to geophysical techniques and to soil geochemistry. Exploration on the property should include re-evaluating any old geochemical data available, testing the correlation between gold geochemistry and copper-lead-zinc geochemistry, and then doing any further soil sampling required to cover the potential mineralized zone.


A new IP survey should be conducted over the entire claim.


The on-site drill core from the 1971 drilling is reported to be in very poor condition. Some drill core could be assayed for gold content.


This work should be followed up by trenching of prospective areas not previously trenched. Trenching may not always possible due to the depth of the overburden. Assay results from trench sampling may not provide good results due to strong weathering, but the strength of mineralization should be apparent.


A diamond drill program should then be undertaken to test the best mineralized/altered areas previously uncovered and any new zones outlined.


Due to the elevation of the property, field work should not start until July. The geochemical and geophysical work could be done in July followed by backhoe trenching in August. A limited diamond drill program testing the gold potential could then be 


 



	
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conducted in late August or September. Further diamond drilling would be contingent on results from the initial drilling.


Budget:  Phase 1



 


Budget:  Phase 2



 






 



	
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            11.
 	
            Statement of Qualifications
 



I, GEORGE E. NICHOLSON, of 21910 – 61st Avenue, Langley, British Columbia hereby certify that:



	
            1.
 	
            I am a graduate of the University of British Columbia with a degree in Geology (B.Sc., 1986);
 



	
            2.
 	
            I have practiced my profession as a Geologist continuously since graduation;
 



	
            3.
 	
            I am a director of Nicholson and Associates Natural Resource Development Inc., and directed the exploration during 2004 and 2005;
 
	
            4.
 	
            I am a member of the Association of Professional Engineers and Geoscientists of the Province of British Columbia (No. 19796);
 



	
            5.
 	
            I am a Fellow of the Royal Geographic Society (No. 423161);
 



	
            6.
 	
            There are no material facts or material changes in the subject matter of this report that would mislead the reader;
 
	
            7.
 	
            I have no interest, direct or indirect, in the properties or common shares of French Peak Resources Inc., nor do I expect to receive any;
 
	
            8.
 	
            I hereby grant my permission for French Peak Resources Inc. to use this Report for any corporate use normal to their business.
 



DATED at Vancouver, British Columbia this 31st day of August, 2005.



	
            ____________________________________
 
	
            George E. Nicholson, P.Geo., FRGS
 	
             




 


 


 


 



	
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Appendix I:


 


Claim Information


 


 



	
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