The Spout Lake (WC) copper-magnetite skarn deposits are located 300 metres south of Spout Lake, about 20 kilometres north-northeast of Lac La Hache. It is 6 kiometres east of Highway 97 and is easily accessible on secondary roads. The Spout Lake deposit is one of several copper showings in the Spout and Peach Lakes area (see also 092P 001, 002, 035, 109, 153 and 174). All of these occurences are part of the Spout Lake copper-gold district, a group of porphyry and skarn deposits associated with Upper Triassic to Lower Jurassic alkaline intrusive rocks of the Spout Lake intrusive suite.
The Spout Lake property is underlain by andesites, basalts, calcareous tuffs and argillites of the Late Triassic Nicola Group. Nicola Group rocks are intruded by the Late Triassic to Early Jurassic Spout Lake Intrusive complex, an alkalic intrusive suite ranging in composition from pyroxenite through monzonite to syenite, and from batholithic size to small intrusive plugs, dykes and breccia bodies. Granodioritic rocks of the Triassic to Jurassic Takomkane Batholith intrude Nicola rocks east of the property. Outliers of alkaline plateau basalts of the Miocene to Pleistocene Chilcotin Group are present in the general area.
The Spout Lake property is underlain by a generally moderate to steeply northeast dipping sequence of Upper Triassic Nicola Group volcanic flows and volcaniclastic sedimentary rocks. A predominant set of north to northeast trending faults and a subordinate east to west trending fault set slightly complicates the geology. The Nicola volcanic flows comprise augite porphyry andesite, plagioclase porphyry andesite and fine-grained andesite. The volcaniclastic sediments include limestone breccia, limy andesite breccia, polymictic volcanic breccia and conglomerate. Intrusive rocks consist of microdiorite and porphyritic monzonite dikes.
Skarn occurs in two distinct zones. The North zone is a vertical zone 1.2 to 50 metres wide, 365 metres long and at least 90 metres deep. Drilling extended the strike length to 660 metres and indicated the possibility of a parallel zone. The South zone, 150 to 200 metres south to southwest of the North zone, is 245 by 300 metres by 60 metres thick and dips gently (15 degrees) to the southeast. Both zones are underlain by the same stratigraphy which exhibits variable skarn alteration. The northwest orientation of intrusive dikes and sills is the dominant control for alteration and mineralization. At the North and South zones, alteration and mineralization is parallel to or at a slight angle to this northwest trend.
Skarn mineralization consists of chalcopyrite associated with massive magnetite, pyrite and rarely specular hematite. Chalcopyrite occurs as disseminated coarse blebs in skarn and in the magnetite. Pyrite is subordinate to chalcopyrite. Skarn alteration of the volcanic flows is limited to garnet-epidote development in amygdules while in the volcanic sediments it is much more intense. In limestone breccia, beige grossular garnet is the most dominant silicate mineral, which in the South zone is associated with chalcopyrite. In limy andesite breccia, the matrix is altered to a mixture of epidote, pink feldspar, garnet, scapolite and tourmaline. The polymictic volcanic conglomerate is similarly altered and where alteration is intense, it is difficult to distinguish between rock types.
Estimated "reserves" (mineral inventory) at the Spout Lake property are 541,000 tonnes grading 1.8 per cent copper and 0.12 gram per tonne gold (Assessment Report 23251).
Interest in the Spout Lake area was triggered in 1966, when the Geological Survey of Canada released the results of a regional airborne magnetic survey that outlined an annular magnetic anomaly, 10 kilometres in diameter, in the Spout Lake area and included the area underlying the Peach 1 (MINFILE 092P 001) prospect.
Subsequently, in 1966 and 1967, Coranex Limited obtained anomalous results in follow-up stream sediment geochemical surveys and soil geochemical surveys in the area south of Peach Lake. Programs of geological, soil geochemical, magnetometer, induced polarization and prospecting surveys were undertaken in 1967 in the area south of Peach Lake, leading to the discovery of the Peach 1 and several other occurrences.
Asarco Exploration Company of Canada Limited optioned the property in 1969. According to Assessment Report 20621, Amax Potash Limited learned of the Coranex discoveries south of Peach Lake and completed geological and geochemical work over the parts of the airborne magnetic anomaly not held by Coranex. This work discovered magnetite-chalcopyrite veins and skarn mineralization south of Spout Lake and Amax immediately staked the WC claims.
Between 1971 and 1973, Amax carried out exploration programs at Spout Lake that included geological mapping, airborne and ground magnetometer surveys, induced polarization and geochemical surveys and bulldozer trenching. Drilling included six packsack holes (136 metres), 10 percussion holes and seven diamond drillholes (843 metres).
In 1974, Craigmont Mines Limited optioned the property and drilled six diamond drillholes (1210 metres) into the north zone.
The property was allowed to lapse. Peach Lake Resources re-staked it in 1987 and completed soil VLF-EM and magnetic surveys and excavator trenching.
G.W.R. Resources subsequently acquired the property and formed a joint venture with Regional Resources Limited in 1993.
The joint venture completed some drilling (15 holes totaling 6712 metres) in 1993, 1994 and 1995.
In 2005, G.W.R. Resources Inc. completed eight diamond drillholes at Spout Lake. The best of these was drillhole SPL-05-01, which returned 81.9 metres grading 0.4 per cent copper (Assessment Report 28332).
In late 2010 and early 2011, G.W.R. Resources Inc. completed a diamond drill program at Spout Lake. Highlights include drillhole SL11-177, which returned 2 metres grading 22.8 per cent copper, 26.2 per cent iron, 12.95 grams per tonne gold and 124 grams per tonne silver (Press Release, G.W.R. Resources Inc., January 26, 2012).
In April 2012, GWR Resources Inc. reported updated resources for the Spout skarn-hosted copper-gold-silver-magnetite zones, located within the northwest corner of the Lac La Hache property. Indicated resources are 7.6 million tonnes grading 0.28 per cent copper, 0.05 gram per tonne gold, 1.26 grams per tonne silver and 11.4 per cent magnetite; inferred resources are 15.8 million tonnes grading 0.21 per cent copper, 0.04 gram per tonne gold, 0.93 gram per tonne silver and 8.32 per cent magnetite, reported at a cut-off of 0.2 per cent copper-equivalent for open pit (Press Release, G.W.R. Resources Inc., April 19, 2012).