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Alaska Freegold: THE BLUE CHANNEL PROJECT

Yentna-Cache Creek District Alaska

Abstract
 
  The "Blue Channel Project" consists of 9 unpatented state claims of 40 acres more or less each for a total of approximately 360 acres (including the 4 Nugget Creek/Nugget Bench claims the total is 520 acres). The property is located on a high bench between Nugget and Gold Creeks, and includes more than one mile of Nugget Creek, which are tributaries of Cache Creek. It is now a part of the Waterstone Project, and we have options on adjacent valuable mineral properties.

Click here for an access and location map. In addition to the presence of unmined placer deposits of multiple ages there is evidence that the property covers a significant portion of the so-called "Old Channel" or "High Channel" described in historic reports, which this author believes is a part of an eight-mile long shear zone that has been reported by previous observers. The project is located downstream, downslope, and down ice of known rich lode gold sources, and mining has taken place on three sides of the property and within the property itself. C.C. Hawley and Associates, Inc. (1978, Fig. 4.2-B(3)) show placer ground from the confluence of Nugget Creek with Cache Creek to about 1.5 miles upstream through Sections 9, 15, and 16 in T. 29 N., R. 9 W., of the Seward Meridian. The Nugget Bench High Channel Deposit is shown on Fig. 4.2-B(3) about one mile upstream from the confluence. Coordinates given in this record are for the Nugget Bench High Channel. The Company has a cooperative agreement with the former owners of these claims, McNabb Exploration and Mining Co.

Introduction

Nugget Bench High Channel").-->Quaternary glaciofluvial deposits, alluvial placer deposits, and Tertiary conglomeratic (white quartz breccia, Clark and Hawley, 1968) units have been mined on Nugget Creek, Cache Creek, and Gold Creek. The area is underlain by the Sterling Formation (Tps), the upper member of the Tertiary Kenai Group, and Mesozoic argillite (KJs) (Reed and Nelson, 1980). Quaternary auriferous stream gravels from 6 to 8 feet deep and bench gravels 1 to 6 feet deep above the Sterling Formation have been mined (Clark and Hawley, 1968, p. 11). The Nugget Bench High Channel cuts down through the Tertiary formations into the underlying Mesozoic argillite (KJs) exposing the Tertiary conglomerate/white quartz breccia deposits. The channel slopes away from present drainage direction and bedrock drains have been cut to Nugget Creek where it has been mined for 1000 feet along a northeast-southwest trend across Nugget Creek (C.C. Hawley and Associates, Inc.,1978). The channel can be projected magnetically for 400 feet beyond the mined section (C.C. Hawley and Associates, Inc., 1978). The gold fineness ranges from 860 to 864 and averages 861 (Clark and Hawley, 1968). C.C. Hawley and Associates, Inc. (1978) report that as much as 30,000 ounces of placer gold may have been produced from the Nugget Bench deposits. In late 1907 grades were about $3 per bedrock foot. Hawley and Clark (1973, p. A6) note that the highest grade lode deposits in Yentna district are located at the Nugget Creek, the Colby (TL037), Bird (TL040) prospects. Glaciofluvial deposits similar to Nugget Creek can be found on Windy Creek (TL027) and Bird Creek (TL040). Older Tertiary conglomeratic (white quartz breccia, Clark and Hawley, 1968) units probably represent southwest flowing drainages similar to those in Thunder (TL032, 058), Falls (TL030), Dollar (TL031) and Willow (TL042) Creeks. Gold was reconcentrated from these older Tertiary channels into the modern Cache Creek drainage (C.C. Hawley and Associates, Inc., 1978). Also see Cache Creek (TL029). TL035

A reconnaissance, mapping, and sampling program was made of the property and the adjacent areas by this author between 1997-2001, and some of those observations are noted herein. A review of the available published and unpublished literature is also presented.

History and Past Production

Some production has evidentally taken place on the property, and evidence of some mining activities were visible. An estimated 30,000 ounces has been produced from this property, and as much, or more, has been producd from relatively small areas adjacent to the property. Several old bulldozer cuts were present on both the Gold Creek and Nugget Creek sides of the property, exposing iron-stained quartz veins in bedrock and gold-bearing gravels, and these along with some tailings coincide with the plotted locations of placer mines on U.S.G.S. topographic maps, as well as maps obtained by the company. It is expected that most evidence of mining activities that had occurred more than 15 years ago would have been obscured or obliterated by vegetation growth. An unimproved road and several cat trails crosses the property from Gold Creek and Cache Creek, and branches off to the Nugget Bench High Channel, providing access to much of the property as well as the Nugget Bench.

Click HERE for a project area map, and also refer to the Plan of Operations Sketch Sheets for details.

Commodities:

Main: Au

Other: Sn, W , PGE

Ore minerals: Arsenopyrite, cassiterite, gold, Ilmenite, magnetite, pyrite, scheelite, gemstones

Gangue minerals: Garnet, quartz, zircon

Geologic description:

Quaternary glaciofluvial deposits, alluvial deposits, and Tertiary conglomeratic (white quartz-breccia, Clark and Hawley, 1968) units have been mined on Nugget Creek, Gold Creek, and Cache Creek. The area is underlain by the Sterling Formation (Tps), the upper member of the Tertiary Kenai Group, and Mesozoic argillite (KJs) (Reed and Nelson, 1980). Quaternary auriferous stream gravels from 6 to 8 feet deep and bench gravels 1 to 6 feet deep above the Sterling Formation have been mined (Clark and Hawley, 1968, p. 11). The Nugget Bench High  Channel cuts down through the Tertiary formations into the underlying Mesozoic argillite (KJs) exposing the Tertiary conglomerate/white quartz breccia deposits. The channel slopes away from present drainage direction and bedrock drains have been cut to Nugget Creek where it has been mined for 1000 feet along a northeast-southwest trend across Nugget Creek (C.C. Hawley and Associates, Inc.,1978). The channel can be projected magnetically for 400 feet beyond the mined section (C.C. Hawley and Associates, Inc., 1978). The gold fineness ranges from 860 to 864 and averages 861 (Clark and Hawley, 1968). C.C. Hawley and Associates, Inc. (1978) report that as much as 30,000 ounces of placer gold may have been produced from the Nugget Bench deposits. In late 1907 grades were about $3 per bedrock foot (gold @ $20/ounce).

Hawley and Clark (1973, p. A6) note that the highest grade lode deposits in Yentna district are located at the Nugget Creek, the Colby (TL037), and Bird (TL038) prospects. Glaciofluvial deposits similar to Nugget Creek can be found on Windy Creek (TL027) and Bird Creek (TL040). Older Tertiary conglomeratic (white quartz breccia, Clark and Hawley, 1968) units probably represent southwest flowing drainages similar to those in Thunder (TL032, 058), Falls (TL030), Dollar (TL031) and Willow (TL042) Creeks. Gold was reconcentrated from these older Tertiary channels into the modern Cache Creek drainage (C.C. Hawley and Associates, Inc., 1978).
Also see Cache Creek (TL029).

Alteration: Argillic alteration is locally associated with the white quartz conglomerate (Clark and Hawley, 1968).

Age of mineralization: Pleistocene and Tertiary (Clark and Hawley,1968).

Deposit model:  Placer Au-PGE (Cox and Singer, 1986; model 39a).

Deposit model number (After Cox and Singer, 1986 or Bliss, 1992):  39a
 

Workings/exploration:  Nugget Bench High Channel has been mined by conventional placer methods for 1000 feet along a northeast-southwest trend across Nugget Creek. The unmined portion of this channel crosses the project area, and Nugget Bench is 100% owned by Empire Exploration, Inc.

Production notes:

C.C. Hawley and Associates, Inc. (1978) report that as much as 30,000 ounces of gold may have been produced from these deposits. In late 1907 grades were about $3 per bedrock foot (gold @ $20/ounce).

Bedrock was exposed only on the two sides of the property adjacent to Gold Creek and Nugget Creeks respectively.  The general topography suggests post-glacial fluvial processes have removed a significant amount of glacial-deposited material. Several small streams bisect the property, and some gold can be panned in these streams. These streams would supply sufficient water for mining and processing operations, and there is sufficient area for the settling ponds and other infrastructure. This is expected to be the area for ore and waste processing for a mining operation on the Nugget Bench.  Vegetation is predominantly sub-alpine shrubs, grasses, and mosses, with some stands of small mixed forest scattered around.
 

FUTURE WORK PLANS

Exploration plans for this property include detailed mapping, surface sampling, and locations of favorable areas for surface trenching as well as drilling to locate near-surface and buried placer deposits and lode deposits, and initiation of large-scale mining operations on this property. The Nugget Bench would be the preferred starting point of a larger-scale gold mining operation, and we plan to produce 10,000 ounces of gold per year by 2004.

Reserves: Inferred/Probable: 30,000 ounces gold
Possible: In excess of 45,000 ounces gold.

Additional comments:

One interesting feature of the property is its' location: it is favorably located between Nugget, Cache, and Gold Creeks, all of which have been major placer gold producers in the past, and on which creeks mining still takes place. All three of these streams have incised 100' or more into their channels, leaving the bench high above these streams. There is strong evidence, primarily obtained from airphoto analysis, to suggest that Cache and Gold Creeks flowed across this bench at some time in the past.  There are numerous lode gold sources, including several very rich ones, just upstream from the project. It is also located on what has previously been referred to as the "High Channel", which has produced values of up to 10 ounces of gold per ton. Portions of this so-called Channel have been mined on either side of the property, but for several reasons (including the "Wartime Closure Act").

 

 

 



 

1. Parts per million. 1 ppm = 1 gram/metric tonne.

 

 

Check out this Google Earth link for map
info to the Blue Channel Project
.