The KR 4, located 70 kilometres north-northeast of Haines, Alaska, was discovered in 1983 as a result of high gold values in panned silts. The Klehini River property is subdivided into two groups. This occurrence is in claim block KR 4 of the Beta Group. The occurrence is found between the Hubbard Fault and Denali Fault system of the Alexander Terrane. The area is underlain by complexly deformed, generally Paleozoic rocks. Locally, thermal metamorphism resulting from the Oligocene Tkope River Intrusion, includes develop- ment of a hornfels texture, silicification, skarn mineralogy and re- crystallization. Quartz veining is restricted to the intrusion and probably formed from volatiles released at a later stage of the in- trusion. In this area the intrusion is a fine to medium-grained horn- blende diorite with many large xenoliths of recrystallized wallrock.

Three quartz veins were identified as part of this occurrence. The first, and most southerly, consists of a quartz vein exposed for about 100 metres horizontally. It consists of white, competent quartz with hematite-limonite fracture coatings in a weakly altered diorite. No sulphides were observed. The vein ranges from 0.2 to 1.0 metre thick where exposed.

Four hundred metres northeast another "vein" is exposed for a horizontal distance of 75 metres. True thickness of the zone ranges from 0.8 to 1.0 metre. The zone consists of thin, arcuate quartz and quartz carbonate veins up to 8 centimetres thick around which has developed a rusty weathered, quartz-carbonate-sericite(?) altered diorite zone which parallels the veins.

Another 400 metres to the northeast is the last of the three "veins" and the most promising structure sample. It can be traced for over 500 metres before it disappears under glacial ice and talus at each end. Within this is a higher grade shoot approximately 175 metres long. The vein is a milky white to translucent, massive, com- petent, quartz with minor siderite or ankerite hosted by a weakly, chloritized diorite. The vein is always hematite and limonite stained on fractures. The vein dips to the southwest at about 60 degrees and strikes approximately 120 degrees.

The best assay results are 74.04 grams per tonne gold, 5.48 grams per tonne silver and 0.0068 per cent copper.