The C3 zone mineralization (or Sky Creek Zone) was discovered in 1983 along the south side of Sky Creek. It consists of a large area of iron enrichment which hosts assays of about 3.4 grams per tonne gold.

Three stratigraphic assemblages have been mapped in the area: (1) Upper Palaeozoic sediments and volcanics of the Stikine Assemblage, (2) clastic sediments of the Triassic Stuhini Group, and (3) Lower Jurassic sediments and volcanics of the Hazelton Group.

Four plutonic suites intrude the above; (1) Late Triassic calc-alkaline intrusions coeval with Stuhini Group stratigraphy, (2) Jurassic Copper Mtn, (3) Jurassic Texas Creek and (4) Tertiary Coast Plutonic suite. Metallogenically, Texas Creek potassium feldspar megacrystic porphyries are of primary interest as they are spatially associated with a number of gold deposits and showings in the area.

The showings lie in altered Upper Triasic volcaniclastics near the contact of a massive syenitic feldspar porphyry intrusion. This potassic-feldspathized syenite-syenodiorite stock is of probable Lower Jurassic age and is comprised of potassic-feldspar phenocrysts in a fine-grained matrix of biotite, sericite, quartz and some calcite. The altered and deformed country rocks have undergone potassic-feldspar alteration as well as repeated deformation and alteration as recognized by the occurrence of epidote clasts within the biotite and sericite phyllonites. (refer to Stonehouse, 104B 107).

The C3 Zone mineralization comprises a wide pyritic alteration zone localized in sedimentary volcaniclastic rocks near the north boundary of the Reg property. Showings occur within the main Sky Creek and in a small accessible area west of the creek. In 1985, trenching and mapping indicated the presence of massive pyrite lenses, averaging about 6 metres in width, in potassic-feldspar, quartz, calcite alteration zone within the stratified sediments. One pyrite lens assayed up to 61.37 grams per tonne gold across 30 centimetres. Other samples showed the presence of up to 120.3 grams per tonne silver, and up to 5.8 per cent copper plus minor lead and zinc (Grove, 1987).

The C3 mineral zone lies near the west contact of a large salmon pink syenite porphyry. The mineralization appears to be spatially related to the syenitic pluton and directly associated with the potassic-feldspar alteration.

The C3 Showing was diamond drilled in 1989 and 1990. Hole 89-908 yielded a grade of 20.57 grams per tonne gold over 4.0 metres from two consecutive two metre samples (Assessment Report 29673). Close inspection the following year showed the high assay to be due to very high gold contained within a 0.10 metre interval straddling the boundary between the two sample intervals. Trenching in 1990 revealed the existence of two cross-cutting structures. Ten drill holes in 1990 tested the 023/90 degree and the 110-120/40 degree northeast structures. Gold values were uniformly low. The 110 degree structure is comprised of strongly sheared quartz and feldspar altered tuffs with disseminated to semi-massive pyrite, pyrrhotite, chalcopyrite and sphalerite with traces of galena. Sporadic gold mineralization was limited to the 110 degree structure. The high grade 1989 intercept was explained as a gold enriched pod occurring at the intersection of the two structures.

Surface sampling in the Sky Creek Zone (about 300 metres east of C-3) has yielded assays of 15.56 to 57.19 grams per tonne gold (Skyline Explorations Ltd., Press Release, August 4, 1988).

Refer to Johnny MountaIn (Stonehouse) (104B 107) for related details and common property work history.