Executive Summary The Liver Peak Cu-Mo Deposit Thompson Falls, MT By Douglas McFarland, P.G.
April 3, 2010
Executive summary of the Liver Peak project The Liver Peak deposit is an advanced-stage copper-molybdenum porphyry system with a resource potential of a billion tons, and containing significant sediment hosted mineralization. It is located 6 air miles north of Thompson Falls, MT. The molybdenite is hosted by the Proterozoic Wallace, and Revett formations of the Belt Super Group and the Tertiary calc-alkalic Liver Peak intrusive complex. Figure 5 is a topographic map showing the location of drilling. The copper targets have not been tested. The Upper Zone is estimated to contain between 30M and 400M tons of >0.1% MoS2 (Moore, 1980, Moore 1982). In the Belt sediments the molybdenum mineralization is confined to closely spaced quartz-filled fractures in the hornfelsed Wallace fm and the Revett quartzite. The molybdenum mineralization was intersected in drill LP4, LP5, and LP4a, on what is believed to be the low-grade northern lobe of the deposit where the higher values (>0.11% MoS2) occur within the potassic zone (K-feldspar + SiO2). Copper values in this area varied up to 0.34% Cu. A soil sampling program, on 600 ft centers, was undertaken by Noranda at the close of the 1981 field season just prior to completing the drilling program. This author contoured the Noranda data using a Kriging algorithm and was successful in outlining a large C-shaped copper with values from 250 ppm and 2000 ppm Cu (Figure 1), which is open to the west. A background of 50 ppm cu was assumed. The molybdenum soil data was also re-contoured (Figure 2), assuming a background of 2.0 ppm Mo. The resulting map greatly expanded the Mo target area, which roughly coincides with the Cu soil anomaly. Maps for W (Figure 3) and Bi (Figure 4) maps were also made. The maps of soil geochemistry all show anomalies which to the south and east of the drilling, indicating that the system is far larger than previously known. Since Noranda’s 1981 drilling program was only designed to delineate the mineralization within the Upper Zone and the information from the soil survey was not available until November of 1981, it was not applied to expand the search for mineralization or to guide further drilling. The Liver Peak intrusive is a multiphase intrusive. The following phases have been identified to date. . • Equigranular quartz monzinite. • Rosette quartz monzonite (Trqm). • Leocucratic micro-granite (Tg). • Quartz latite (Te). • Quartz latite porphyry (Tqp). Aplite and quartz porphyry dikes have also been noted. Where drilled, the hydrothermal alteration in the intrusive increases with depth as follows: • Sericite + SiO2.
Sericite + K-feldspar. Sericite + SiO2 + K-feldspar. Sericite + clay + chlorite. To date, two mineralized zones were encountered in DDH LP4, one above and one within the intrusive, and a third zone is indicated below 4788 by and presence sericite, calcite, SiO2 and kfeldspar veining, increasing chalcopyrite and magnetite content. That, plus the occurrence of hydrothermal breccia suggest that drilling should have continued.
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Noranda DDH LP2 bottomed in mineralization above the intrusive at a depth of 2798ft. The significant drill intercepts are as follows: • 260 to 400 0.158% MoS2. • 540 to 1130 0.152% MoS2. • 2710 to 2798 0.165% MoS2. Analysis of USGS aerial magnetic map GP 686 by Howard Ross (1976) of Kennecott Exploration, Geophysics Division, produced 5 computer models to explain the magnetic anomaly. His work indicates that the source of the 60 sq mi magnetic anomaly is a 40 sq mi magnetic source, believed to consist of three or more bodies of moderate susceptibility (1500 µcgs) related to a large intrusive source at an elevation of approximately 2,000 ft. He also states “one would expect considerable relief on top of such a large intrusive source”, which has been shown by the drilling. Davis and Swift (1970) ran a VIP line from NW to SE and centered on ASARCO DDH2 and modeled a strong IP response dipping away to the northwest and southeast, indicating a dipping pyrite zone 1000 ft thick. No further IP work has been attempted. The data gathered by Asarco, Bear Creek Mining Company, and Noranda Exploration was reinterpreted in view of recently developed Cu-Mo porphyry systems and is believed to potentially be a billion ton Cu-Mo deposit. This view is supported by the following: • The magnetic anomaly covers an area greater than 40 square miles, indicating multiply intrusive. • The multiple anomalies show on soil geochemical maps for Cu, Mo, W and Bi cover an area several miles across and are open to the south. • Small Cu mines are located around the edge of the magnetic anomaly. • Water geochemistry is anomalous for Mo and Cu in Liver Creek. Previous work was narrowly focused on the mineralized shear zone in the Belt sediments and the intrusion encountered in Noranda DDH 4, 4a and 5, totally ignoring the potential for a large CuMo deposit at depth. The most cost effective method of mapping the buried the buried intrusive(s) is with a 3D CSAMT or AMT survey, which would also provide information on hydrothermal alteration. This should be supplemented by borehole IP to locate mineralization at selected locations. The property would also benefit from a low altitude aeromagnetic survey using 250 m line spacing. The soil geochemistry was done using a 600 x 600 ft sampling grid. The soil geochemistry would benefit from a more closely spaced sampling grid. In addition, the sampling program
should be expanded to the south, because it stopped without delineating the soil anomalies for Cu, Mo and W. Once this data has been analyzed deep drilling should be initiated to confirm and evaluate the identified target areas. Please call me if you have any questions or wish to make an appointment to see the files and/or visit the property. Thank you. Sincerely, Douglas G. McFarland, P. Geol. Geologist/Geophysicist
Figure 1 Map of Cu soil geochemistry.
Figure 2 Map of Mo soil geochemistry.
Figure 3 Map of W soil geochemistry.
Figure 4 Map of Bi soil geochemistry.
Figure 5 Topographic map showing location of drilling.
Figure 6 Claim map with present holdings shown in red.