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The Department of Energy,
Mines and Resources Canada, National Inventory Section
estimates the reserves at 117,000 tons grading 0.92 oz/ton Au

Inferred Geological Reserves of 20,128 tonnes @ 10.3 gpt Au

107,640 oz Au = $180,000,000 CDN

Samples taken across a  newly discovered Lower Zone assayed in excess of 4.14 OZ per tonne Au

Property File 

Property File 38995

Silver Standard Resources held this Legacy Claim 254603 for 62 years

Silver Standard Resources owned 254603 from Oct. 4th, 1952 - Oct. 4th, 2008.  When Mineral Titles Online (MTO)went to the on-line-grid-mapping-system, the claim was converted to a four-cell grid-claim (#558772) to cover the original (seen in the map above) and although MTO has misplaced the Minfile pin on their maps, there is NO QUESTION as to the actual location of the Smith-Nash gold deposit.



The Smith-Nash occurrence is located on Sandifer Ridge about 14 kilometres southeast of Kemano. The main vein, Smith-Nash, was discovered by George Smith and Fred Nash in 1952. The main vein was sampled at this time and no further recorded work was completed until the area was claimed as the Beaver mineral claims in 1980 and sampling was continued by Bristol Resources Corporation. In 1989, Kemano Gold Corporation held the property and adjacent Kayo occurrence (093 070) as part of the Kemano Gold Project.

The claim area is underlain by the Hazelton Group rocks of either Triassic or part of or wholly belonging to the Paleozoic Era. The rocks consist of greenstone, metasediments, amphibolites, gneiss, and marble. Diorites and granites are exposed along the eastern margin of the Coast Range batholith and are part of the Mesozoic Coast Plutonic Complex.

The Smith-Nash vein is hosted by a sequence of greenstone, tuff, diorite sills, and/or intrusives, and metasediments, which are described as roof pendants. The metasediments include shallowly dipping, thinly bedded cherty sediments, hornfels, and quartzites which are capped by a metavolcanic sequence marked by sills and pegmatite lenses. The vein is contained within a fault zone that strikes 320 degrees and dips between 60 to 80 degrees west. It is exposed on a steep bluff were it outcrops between elevations of 1430 and 1500 metres, swelling up to 6.5 metres in width. The vein structure is enclosed in sericite schist and consists of lenses of quartz with blebs and disseminated pyrite, minor chalcopyrite, and malachite staining. Gold is intimately associated with the pyrite. In 1952, a 12.5 centimetre sample of massive pyrite from the Smith-Nash vein returned 99.76 grams per tonne gold and 51.6 grams per tonne silver (Property File Rimfire Hegman, B., 1983). In 1980, chip samples from the Smith-Nash vein, around elevation 1450 metres, assayed 0.14 to 19.89 grams per tonne gold, and 0.68 to 10.29 grams per tonne silver (Assessment Report 10747). Geological reserves of the Smith-Nash vein are 20,128 tonnes grading 10.3 grams per tonne gold (Consolidated Silver Standard Mines Ltd. Annual Report 1988).

Two other gold bearing quartz veins, the Copper or Barker Zone and the Lower Zone were discovered in 1986, below the main vein at elevation 1300 metres. In 1986, a 38 centimetre channel sample from the Copper Zone which hosts blebs and patches of pyrite, chalcopyrite, and malachite in a quartz vein, diorite host, assayed 8.09 grams per tonne gold, and 1.01 per cent copper. A grab sample hosting pyrite and minor chalcopyrite disseminated in quartz from the Lower Zone assayed 129.53 grams per tonne gold (Assessment Report 15677).

A brief summary of historical events on the claims as follows:

1953 - Conwest Exploration Company options the property and mining
consultant L.K. Lytle, P.Geol., conducts a detailed sampling
program on the so-called Smith-Nash vein over a slope length
of 587 feet. Lytle confirms a grade of 0.92 oz/ton gold and
indicates tonnage estimates in the main vein from 43,000 to
117,000 tons.

1960 - Silver Standard Mines Ltd. options the property and
estimates reserves in the main vein at 117,000 tons
averaging 0.92 oz/ton gold.

1972 - Mining Consultant F.J. Hemsworth, P.Eng., confirms the gold
values and recommends drifting on the vein from an adit
level of 4550 feet.

1980/81- John Kruszewski of Calgary stakes the property surrounding
the immediate vein vicinity.

The Department of Energy,
Mines and Resources Canada, National Inventory Section
estimates the reserves at 117,000 tons grading 0.92 oz/ton.

1981/83- Mining consultant W.E. Grove, Ph.D., P.Eng., confirms gold
values and reserve estimates of 43,000 tons. He also
recommends a major drilling program to delineate the

1985 - Mining consultant D. Barker, P.Eng. along with Kruszewski
discover a new zone below the vein approximately 400 feet
below the lower fault zone. Barker also confirms the gold
value estimates on the main zone and recommends a three
phase exploration development program of drilling and
drifting on the vein. Further claims are staked.

1986 - Two separate field programs are completed on some of the
claims. The main program consisted of running VLF and
magnetometer over Zone A. Further claims are staked. A
joint venture agreement on one two-post claim (Smith #1) is
negotiated with Silver Standard Mines Ltd.

1987 - Whitesail Ventures Ltd.'s name is changed to Whitesail
Minerals Corporation. An agreement for private financing is
also signed with Morthcor Energy Ltd. of Calgary, Alberta.
A work plan for extensive field work is formulated. Some
field work is done on the Beaver and Slide Claims during the
fall of 1987 which consisted of geophysics (magnetometer) on
the Kayo and Johnny Zones.

1988 - Take over of Whitesail Minerals Corp. by Kemano Gold Corp.
During August and September over $57,000 was spent on an
exploration program (see Figure 3, back pocket) consisting
of 100 line kilometers of geological prospecting, rock
geochemical sampling (6 samples), trenching and test pitting
(24) mainly on the Kayo Zone where 38 rock samples were
assayed from the trenches/pits. More staking was done on
the south side of the claim group.


The following are excerpts taken from the Report on the Smith #1 Claim, Kemano
Area, B.C., prepared by D. L. Kuran for Fleck Resources, dated December 14,
A total of thirteen drill holes and sixteen channel samples completed on
the Smith Nash vein resulted in the blocking out of 22,190 short ton of
0.302 oz per ton gold over a 7.2 foot width. Mineralized vein material
ranges in grade and thickness up to 0.553 oz Au over a 9.4m core length
in hole 88-7 and 4.93 oz per ton Au in a surface grab sample. Another
vein located 140 m away returned 0.68 oz per ton Au over 0.7m.
The deposit is open to depth and along strike only 10% of the potential
zone has been tested by drilling to date.
Between July 15 and October 15, 1988, Fleck Resources completed an
exploration program on the Smith #1 claim. The program consisted of: a
total of 736.4 meters (2416 feet) of diamond drilling completed in twelve holes,
drilled from three pads blasted from the cliff face; sixteen diamond saw
cut channel samples, cut across the vein at a 4.0m horizontal interval;
one trench of some 390 cubic meters of talus; geological mapping at a
scale of 1:300 and prospecting. As well, 500m of road continuing toward
the Smith #1 claim from logging roads in the valley bottom below was
completed. Figure 4 shows the location of the activities relative to the
claim boundaries as well as a general geological interpretation of the
area of interest.
Gold values on the Smith-Nash vein range up to 4.93 oz per ton on surface and
3.63 oz per ton in core samples. The #8 vein returned an assay of 0.68 oz
per ton Au.







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