-66- gold-bearing porphyry and volcanics. Tho pebbles in the creck and fine materials are largely of the country rock. Undoubtedly moh of the placer gold has been derived from this rock during the process of cutting the canyon. North of the canyon 6 an old channel filled by drift. Below the mill in places the old and the new channels conform in position. The old channel might contain more than the present channel, but considering the extent of overburden it would appear probable that there is not enough gold to make it workable, Profitable workings, if such are possible, would appear to depend on having shallow ground that could be mined cheaply. Other Mineral Resources Coal deposits that are bituminous and in places anthracitic in character occur in the Skeena formation at many places in the Bulkley and Babine belts. Lignite occurs in the Upper Eocene or Oligocene strata, on Driftwood creek. In the main the coal areas near the railway are small and although they have been known for many years only small mines have been | 4 developed. The individual areas are described in detail in a later part of this report. Nothing in the character of the geology so far as kmown encourages the belief that oil may be discovered in commercial quantities. All of the older rocks and most of the rocks of the Skeena formation are too much deformed and metamorphosed to retain any oil thet may have been in them. The less metamorphosed parts of the Skeena formation and the Tertiary rocks, besides being non-marine and, therefore, not very likely to be sources of oil, occur in too small areas, in such unfavourable structural positions, and so close to the surface as to be unlikely to retain any oil if it had been present. Small quantities of