Mineral Exploration Properties
General; Kimberley Gold Trend (KAT)
Ruby Red Resources Inc. (RRX) controls 100% of two large claim blocks (50,000+ Ha) within the Kimberley Gold Trend (KAT), a structural zone 100 km long and 30 km wide in the Purcell and adjoining western Rocky Mountains of southeastern British Columbia. It is a region of historical placer gold production (> 1.5 million oz) and numerous lode gold occurrences, but unlike other placer gold camps in British Columbia, no associated producing gold mines have, as yet, been discovered. RRX mineral tenures are located upstream from each of the major gold-producing placer drainages in the region – Moyie, Perry and Wildhorse Rivers – and recent positive exploration results combined with a new structural model for the region, support the notion that RRX is poised to make a substantial lode gold discovery.
In August 2008 Dr. Robert (Bob) Thompson was engaged to provide an independent assessment of RRX tenure blocks. His evaluation led to a regional structural model which provided a focus for 2009 exploration activity. Results support the model which will continue to guide exploration activities. (See Power Point presentation which follows.)
The Kimberley Gold Trend (KAT) is a structural zone that can be traced from near Creston, B.C. east, across the Purcell Mountains and Rocky Mountain Trench into the western Rocky Mountains where it deflects northward into parallelism with the dominant NNW Rockies trend. This convex-east geometry was inherited from intersecting basement structures which defined an orthogonal continental margin. Structural coupling between basement and cover during the initial stages of mountain building, led to oblique thrust displacement (transpression) across the two regional fault systems that define the KAT: Moyie – Dibble Creek fault system on the south, and St. Mary’s – Lussier fault system on the north.
Fluid conduits within structural zones like the KAT are key to the deposition and concentration of gold and other metals. These conduits or dilational zones, which are steep-plunging pipe-like features 100’s of meters long and 10’s to 100’s of meters wide, are sites of repeated fluid expulsion where gold and copper (cobalt) are deposited and concentrated over time. There is a one-to-one correspondence between the distribution of placer gold and the distribution of shear zones containing dilational features. This correspondence validates the notion that the best place to look for lode gold occurrences is adjacent to and up stream of historical placer producing drainages. In this sense, RRX is well positioned to take advantage of this opportunity. Several large mining companies were guided through RRX tenures as part of the 2009 explorations program. In all instances the tours were successful with acknowledgement by the visitors of the veracity of the geological model, the significant gold endowment of the region, and its high prospectivity. Interest in RRX operations continues and the prospects for optioning some or all of the RRX tenures remains high.
Property Summary
Rockies Block
The Spirit Dream property is located in the Rockies block directly upstream from the Wildhorse River placer deposits. The quartzite unit which is host to Spirit Dream property gold, is the likely source for placer gold mined downstream in the Wildhorse placer deposits.
The Rockies properties occur at the sharp, northward bend in the KAT. Anomalous gold in soil and rocks has been reported along a 25 km trend, from the Spirit Dream property northward to near Wasa Lake on the eastern margin of the Rocky Mountain Trench. This gold trend follows the axial trace of a detached, regional-scale, overturned fold which forms the north-trending arm of the KAT. A consistent pattern of alteration associated with close-spaced quartz veins at mm to cm suggests this gold trend is part of a regional gold-rich system. A successful trenching program in October 2008 exposed multi-gram gold-bearing quartzite (see press release RRX March 3, 2009). This field season, the quartzite target was mapped in detail for a strike length of 5.8 km (open to the north) from the Wildhorse River north beyond Tackle Creek; true thickness of the quartzite unit is 65 – 100m; dip is consistent to the west. The continuity and consistency of alteration and vein density along and across strike combined with the presence of visible gold and rock samples having anomalous gold values are strong indicators that a major gold-bearing system is present. Bulk tonnage potential of the property is supported by the target size measured in km’s of strike length, cm to mm-scale breccias, stockworks and veins distributed throughout the mineralized quartzite unit, ubiquitous sericite-quartz-pyrite (with iron-carbonate and oxide) alteration and widely distributed anomalous gold. Outcrop samples taken in 2008 were typically 0.5 to 1.0 gm augmented by multi gram samples (see press release RRX March 3, 2009).
In 2009 trenching was completed north and along strike of 2008 trenches. Thickness, alteration assemblages, and vein density are consistent with 2008 results; sample results are pending.
Spatial association of metre-scale dikes of syeno-granite distributed sporadically along the trend of gold mineralization suggests an igneous component to the mineralizing event. Significant exposures of epizonal porphyritic stocks, sills and dikes outcrop at the Estelle base metal occurrence located 6 km north of the Spirit Dream trenches.
In summary, the Rockies block contains a 100 m by 5 km exposure of altered and mineralized quartzite containing both visible gold and anomalous gold (multi gram in places) along its entire explored strike length. The quartzite is part of a complex thrust system having an associated igneous component. The close-spacing of veins and ubiquitous alteration support a bulk tonnage exploration opportunity. Property access together with more than 1 km of trenching has exposed the target unit sufficiently to plan a drill program. This property has the potential to produce multi meter drill intersections averaging more than 1 g/tonne.
Purcell Block
Eddy Property
The Eddy property covers a succession of gold-mineralized quartz veins which occur along shear zones within the hinge of a regional anticline at least 9.5 km long. Values to 57 gm/tonne demonstrate high-grade gold concentrations (see News Release March 17, 2009).
The fold hinge and associated shears are breached by placer-bearing streams (e.g. Weaver Creek) that flow southeast into the Moyie River, site of historical placer operations. Visible gold in shear-related quartz veins is commonplace, suggesting the shear zones are the source of the placer gold.
Prime geological targets for ore-body sized gold concentrations occur at offsets along the Old Baldy shear fault system which traverses the Eddy property for a distance exceeding 10 km. Several offsets in the fault system are consistent with releasing bends where shoot-like dilation zones are evident and/or anticipated. Five gold-bearing drill targets have been identified at these structural bends.
Past explorers have failed to appreciate the shoot-like geometry of gold mineralization, opting instead to explore along strike (and near surface) for sheet-like bodies which invariably pinch-out rapidly. Hence, the potential of the Old Baldy fault system has been under - explored because ore shoots tend to plunge steeply and can persist to significant depths. A 1 to 10 million oz ore body is not unreasonable in this type of structural setting. For example, immediately southwest of (and adjacent to) the Eddy Property is a drilled resource (non 43-101 compliant) totaling 90,000 tonnes averaging 8 to 10 g/tonne gold (30,000 oz contained gold). This resource, called the David Property, is contained within a shear zone having a strike length of little more than 120 m that plunges steeply toward the northeast. The down-plunge extent of mineralization has not been tested. In 2009 a new dilation zone containing multi gram gold exposures was located immediately along strike of the David Property resource. This target is well defined and ready to test with the drill. Like the Rockies block, alteration assemblage on the Eddy Property consists of quartz-sericite-pyrite-Fe carbonate. In drill core it is evident that multiple stages of alteration and shear deformation are present, each event representing a mineralizing event within a resurgent fluid system.
Zinger Property
Rock samples from the Zinger Property contain significant gold concentrations (see News Release April 1, 2009). The property is located within the KAT on the north flank of Perry Creek, 6 km northwest of Ruby Red’s Eddy Property. The zone of mineralization is at least 9 km long and 2 km wide with some gold values exceeding 20 g/tonne. The property lies 5 km directly upstream from the historic Perry Creek placer deposits. The abundance of visible gold in hand samples is a strong indicator that the downstream placers were derived from the Zinger Property.
The grab sample anomaly map produces an “eye-popping” display of localities where more than 5 g gold was collected. Characteristics common to more sites include: sericite-quartz-pyrite alteration; multiple veins sets on the mm and cm scale; brick red (live) hematite staining; extensive silicification. The veins are antitaxial, and are consistent with multiple episodes of crack-seal development.
At one locality, the anomalous exposure was pressure-washed and channel sampled in an effort to better understand the distribution of gold within the exposure. One channel, cut oblique to bedding and across intense micro-veining and alteration, averaged 4.95 gm/tonne along its entire length of just over 3 m; presumably these grades continue for some unspecified distance at either end of the channel. The host Creston Formation quartzite is non sulphide bearing; hence presence of disseminated pyrite in association with gold represents an exploration vector that may be discernable using induced polarization exploration methods.
Zeus Property
The Zeus Property contains a Cu-Ag-Co mineralized silicified breccia pipe feature which occupies a fault release (dilatent) feature associated with an offset along the Cranbrook fault. The breccia displays intense to wholesale quartz-sericite-pyrite-Fe carbonate alteration. The alteration halo has a diameter of about 2 km about a pipe-like core of mineralization. Several brecciations and shearing events are observable in drill core, supporting the notion that dilation occurred in a saltatory fashion
DDH 07-01 intersected 95 meters of 0.436% Cu, 2.24 gm/tonne Ag and 106 ppm Co. Two subsequent drill holes in 2008 tested the mineralized zone directly below and along strike. DDH 08-01 intersected 270 meters of silicified quartz stockworked breccia containing disseminated to massive sulfide that included eight meters of 0.307% Cu mineralization and 91 meters of 188 ppm Co. The mineralized zone is intensively argilically altered throughout. The second hole, DDH 08-02, located 170 meters farther east encountered 17 meters of 0.172% Cu within quartz stockwork breccia. This hole also intersected one meter of 1.6 g Au within a quartz vein. This vein can be projected into a nearby drill hole where one meter averaging 9.74 g/tonne was intersected.
The 2007-08 drill program assumed a sheet-like geometry to the mineralized zone. However, right hand deflection of the Cranbrook Fault suggests the target mineralization occupies a steep, north-plunging shoot or pipe associated with dilation within a releasing fault bend. On this basis, drilling will be redirected to test this zone to depth.
Robocop Property
The Robocop Property is a stratiform copper occurrence within immature quartz grit belonging to the Sheppard Formation. Copper oxide minerals were deposited within the matrix of a grit sandstone having a uniform thickness of about 8 m. This unit is gently east dipping, and can be mapped for tens of km along strike.
In 2008, 6 diamond drill holes totaling 823 meters were completed. Assay results are summarized below:
| DDH | Drill Depth | Interval (m) | Cu (%) | Co (%) | Ag (gm/t) |
|---|---|---|---|---|---|
| DDH R08-02 | 66.5 – 75.5 | 9.0 | 0.103 | 0.055 | 2.2 |
| DDH R08-03 | 42.0 – 49.0 | 7.0 | 0.480 | 0.055 | 5.1 |
| DDH R08-06 | 81.0 – 84.0 | 3.0 | 0.246 | 0.025 | 0.6 |
Of the 6 tests, only 3 were designed to test Cu-Co grades (listed above); 2 were designed to test for continuation of the mineralization across a zone of west-dipping extension faults; and one was designed to test for near-surface Cu-Co oxide. DDH R08-04 and R08-05 demonstrated existence of a down-dropped block across a west-dipping extension fault. Previous drilling had encountered the structural gap between blocks, misleading earlier workers into thinking mineralization had pinched out northward. This is not the case. DDH R08-01 at a shallow angle to the surface slope to test the extent of Cu-Co oxide minerals in the near-surface environment. Within 15 m of surface the zone is leached and limonized and did not return values of any significance.
A 2500 m soil and rock geochemistry anomaly was discovered southeast of the drill sites described above. This anomaly is coincident with and or down slope of the host grit; as well it is significantly stronger than anomalies associated with the drill test sites. Easy access to a straight forward drill program will provide a cheap and ready test of this anomaly.
This Mineral Exploration Properties section has been prepared by Dr. Robert Thompson, Ph. D. (Geology), consulting geologist to Ruby Red. Dr. Thompson is designated as a Qualified Person, as that term is defined under National Instrument 43-101. Laboratory analyses were performed by Acme Analytical Laboratories Ltd., of Vancouver, British Columbia.