The area of the Whitesail Outlet occurrence is underlain by rock of the Lower Jurassic Telkwa formation (Hazelton Group) which is intruded by a dioritic stock of the Late Cretaceous Bulkley Plutonic Suite.

Numerous drusy and brecciated gold-bearing quartz (chalcedony) veins contain variable amounts of very fine grained pyrite and arsenopyrite. Minor chalcopyrite has also been reported. Drilling intersected volcanic rocks mainly consisting of tuff, rhyolite, volcanic breccia and argillite. Some diorite was also observed. The veins occur in the area of a prominent low angle, east-west trending fault. The best assay from drilling was 3.0 grams per tonne gold over 3.9 metres in DDH 7 (Assessment Report 17212, page 7).

WORK HISTORY

In 1983, Canamax Resources Inc. work resulted in the discovery of numerous quartz-calcite veins mineralized with pyrite and arsenopyrite. Canamax drilled a total of 1597 metres in 13 diamond drill holes. All holes were drill to test the down dip extension of a 350 by 130 metre area, located near the mouth of Gut Creek, which contains gold-arsenic bearing quartz veins cutting Hazelton volcanics and diorite. Canamax intersected a 4 metre wide vein containing 3.09 grams per tonne Au over 3.9 metres in drill core.

In June of 1988, work on the Whitegold property covered much of the same ground covered later by Phelps Dodge. This 1988 work consisted of establishing a grid for control, prospecting, geologic mapping, geochemical soil sampling and geochemical rock sampling. Operator John Leask collected 22 rock and 341 soil samples over 23.5 kilometres of line on the Whitegold claims. Conclusion from 1988 work was that the property is host to significant epithermal gold silver mineralization within a large clay altered zone within a tertiary graben sequence.

In 1994, Phelps Doge collected a total of 353 soil samples along gridlines, at 50 metre intervals. They also collected 15 rock and 3 silt samples. The 1994 geochemical sampling program outlined an area of elevated and anomalous arsenic in soil which extends north-easterly from the vicinity of the Canamax showing. A second zone of elevated arsenic occurs along the western claim boundary. Sporadic elevated and anomalous gold in soil occurs along the high arsenic trends. Rock samples from the showing contained highly anomalous arsenic with up to 4.66 grams per tonne gold (Assessment Report 23761).