74 REPORT OF THE MINISTER OF MINES, 1929.

On 4-Mile creek a new discovery on an old location was made by A. Skelhorne’s prospectors,
prospecting for the Mining Corporation of Canada, and twelve claims were staked in August.
The ore is disseminated chalcopyrite in massive pyrrhotite, reported to occur over good widths
and traced for about 1,500 feet. This showing will be opened up during the coming season.

In the Klappan River area an aeroplane expedition early in June, headed by W. George,
of Stewart, resulted in the staking of eight claims on Tsetogamus creek, on which interesting
chalcopyrite-showings are reported. ‘

Several miles south of this discovery a similar showing on the north-west shore of Haluc
lake was discovered late in the season by Joe Williams, of Telegraph Creek, and eight claims
were staked. Towards the middle of October ten claims were staked by Mike Williams, of
Telegraph Creek, about 3 miles west of Gnat creek, near the headwaters of the Tanzilla river.
The route taken to these claims was from Riley’s, on the Telegraph Creek—Dease Lake road, and
following the summit of the Hotailule mountains for about 20 miles in a south-easterly direction.
The claims are situated about 5 miles east of the foot of Thenatlodi lake. The staking is
reported to be on an old discovery made by two placer-miners in 1898.

PLAcER GOLD.

The placer-gold production of Stikine Division for 1929 was $646 and for Liard Division
$5,780.

Leases held by this company on Barrington river (North fork of the Chutine

Barrington river) were not operated during the season. Extensive drilling operations

Co., Ltd. had disclosed discouraging values in seyeral leases that were consequently

dropped. Only the Discovery claim and leases 256 and 257 are retained by
the company. The restricted yardage of pay-gravel that has been indicated does not appear to
warrant dredging operations. As the character of the occurrence is essentially a dredging
proposition, the company is faced with the problem of working out a suitable and economical
method of operation.
Vancouver interests headed by H. D. Wright and J. R. Walton have been
Thibert Creek. conducting drilling operations on dredging lease No. 145 at the mouth of
Thibert creek. The drilling operations were being directed by Barney J.
O’Reilley, assisted by Clayton J. Leeds, who are experienced drillers. At the time of examina-
tion eleven holes had been drilled and it was expected to drill two or three more. These holes
were being drilled systematically across the present bed of the creek. No plan of the drill-logs
and values was available for inspection, but it was stated that bed-rock had been struck at
depths of from 25 to 30 feet and that the results were promising, with some holes showing up
to 60 cents a cubie yard.

It had been estimated that 50 per cent. of the grayel depth drilled was composed of old
tailings that had come down the creek from the extensive workings of past years higher up the
ereek. It was thought that better-grade material might be found in what appears to be an old
bed of the creek lying northerly of the present creek course. If this can be substantiated the
effect of dilution from the old tailing covering would be avoided. Constructive drilling could
be carried out in the attempt to trace this old bed.

It is understood that the 1929 operation was a skeleton prospecting with a view to determine
the most efficient type of drilling campaign necessary to prove area and values. It was estimated
by the operators that ground carrying 80 cents a cubic yard could be worked profitably. The
nearest point from which a criterion of costs can be formed is the Yukon territory. There, large-
scale dredging can be conducted at a cost of from 27 to 88 cents a cubic yard, dependent on the
percentage of thawing necessary and lost time, and exclusive of depreciation.

The matter of a profitable dredging operation on lease 145 can only be determined by further
methodical, careful estimation of yardage available, systematic sampling, and accurate deter-
mination of values to the cubic yard. In making this computation it must be stressed that the
total yardage value must be sufficient to amortize the initial invesment and yield a desired profit.
Providing the exploratory work being carried out is sufficiently extensive, an accurate criterion
should be available to the operators regarding the possibility of working the ground by dredging
at a profit or not.

The Mosquito Creek Hydraulic Association has conducted efficient and
Mosquito Creek, extensive preparatory work to reach the “pay” that occurs north of a
northerly-sloping reef-rim in the canyon. This has necessitated extensive