40 REPORT OF THE MINISTER OF MINES, 1929. of 400 feet of tunnel during the winter. Crosscuts should be driven to eastward at intervals in this tunnel to explore for the downward extension of the ore-shoots exposed in the branch veins on surface. This group of four claims is owned by J. Flynn and associates, of Alice Arm. Elkhorn. It is situated on the eastern slope of Saddle mountain, Hastings arm. Late in the year Flynn made an interesting discovery of free gold on this property at an elevation of 3,575 feet. It occurs in a silicified zone carrying epidote and garnet in altered andesite and mica-schist, mineralized with fine-grained pyrite, pyrrhotite, some galena and zinc- blende. A small open-cut shows the zone to be about 3% feet wide, striking N. 45° W. (mag.) and dipping steeply into the abrupt mountain-slope. Spectacular finely divided gold in streaks 44 to 1 inch wide have been found in isolated patches. A sample taken from the small cut on this showing, and carefully scrutinized to avoid the presence of free gold, for the purpose of determining whether the sulphides carried gold, assayed: Gold, 0.16 oz. to the ton; silver, 0.5 oz. to the ton.. Two other apparently parallel silicified zones earrying pyrite, pyrrhotite, some galena and zinc-blende have been found at 50 and 100 feet higher altitude. A sample from a small cut on the highest of these latter at altitude 3,675 feet assayed: Gold, 0.04 oz. to the ton; Silver, 0.2 oz. to the ton. These occurrences are on the claims to the south of the Saddle group (Silver Crest Com- pany). An attempt was made by the owners early in October to explore the showings, but Severe weather conditions intervened after provisions and equipment had been packed up the mountain. The showing merits intensive exploration. The whole surrounding area, which is a large inclusion of schists and voleanies within the batholith, warrants detailed prospecting. On the Gold Leaf claim at about 500 feet lower altitude the owner reports the discovery of a quartz vein about 4 feet wide sparsely mineralized with pyrite and a few specks of galena. This showing was not examined. No work has been done, but values of $2.20 to the ton in gold are claimed to have been obtained. This value is sufficiently promising to warrant surface- stripping and sampling in the effort to find possible shoots of commercial-grade ore. The claim joining the Saddle on the north was covered with snow and could not be examined. This group of claims, owned by Carl Eklund and William Craig, of Anyox, Georgia Bay. adjoins the Elkhorn on the south. Encouraging yalues in gold and silver are reported from two silicified zones recently discovered. These claims were staked late in the year and the showings have not been opened up. ALIcE ARM SECTION, Late in the season negotiations were initiated that may lead to the active development of the promising molybdenum-deposits lying contiguous to the east and west shores of Alice arm. The Cariboo group on Lime creek, owned by J. Wells, is under option to D. S. Tait, of Victoria, who, in September, 1929, incorporated the Tidewater Molybdenum Mines, Limited, on the opposite side of the inlet, for active development. How far these plans have proceeded or what action is intended for the future has not been ascertained. On the Mohawk group on Roundy creek further prospecting has extended the continuity of the vein, and good mineralization is reported to have been discovered at altitudes considerably lower than the upper showings. This property is reported to have been taken over by a recently formed company called the Winnie Mine Development Company, Limited, which intends to continue exploration when weather permits. The property will be examined by the Resident Engineer early in the 1980 season. Kirsautt River SEcTIon,. The Coast Range batholith contact parallels the Kitsault River valley about 4 miles to the westward. The Kitsault River trough consequently follows the eastern contact margin zone at an ideal distance from the actual contact to allow of easy access to what should be the most promising area of the marginal zone. By this means there is made accessible from seaboard an unbroken stretch of margin, parallel to the contact, 22 miles in len 9 oe gth. This is the longest unbroken marginal stretch directly accessible from seaboard in the North-western District. The northerly core of this area, from 2 to 3 miles wide and extending in a north-westerly direction from the headwaters of the Kitsault North-east fork to the Kitsault glacier, a distance of about 15 miles, is composed of massive and fragmental volcanic rocks of Lower Jurassic age. This, the Dolly Varden formation, has an estimated thickness of over 3,000 feet. Surrounding this formation, and overlying it with a more or less conformable contact, is the Kitsault River