Three stratigraphic assemblages have been mapped in the region: (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 Mountain, (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 several gold deposits and showings in the area.

The Johnny Mountain Mine veins lie within Lower Jurassic intermediate volcanic sedimentary rocks including massive coarse-grained volcanic and volcano sedimentary rocks. These are intruded by a series of southwesterly striking steeply northwesterly dipping plagioclase plus potassium feldspar porphyry dikes that are up to 20 metres in thickness. The host rocks trend about east and dip steeply north forming a sequence at least 1 kilometre thick. Late fresh basalt dikes intrude the mine workings.

Massive, syenitic feldspar porphyry units lie between the sedimentary units and are marked by close-spaced fracturing with fine-grained pyrite outlining the fracture pattern. Widths of up to 137 metres were measured for several of these syenitic units which strike 100 degrees and dip 55 degrees north and are thought to be sills due to a persistent autometamorphic texture. Veining is pronounced within these units especially near the upper contacts with the sediments and volcaniclastics.

The potassium feldspar porphyry comprises phenocrysts in a fine-grained matrix with biotite, sericite, quartz and some calcite. Fine pyrite is ubiquitous with concentrations along hairline fractures.

In the main zone sequence, the resistant potassium feldspar porphyry members are sandwiched between less resistant medium to dark green sericite and biotite phyllonites. The bulk of these fragmental rocks are polymictic and grain sizes range from sand size to angular boulder sizes.

Steeply dipping tabular to irregular intrusive-breccia units are locally cut by feldspar porphyry but are difficult to map in the volcanic section due to similar textures. Steep northwest dipping auriferous quartz-pyrite veins (25 per cent pyrite) and related potassium feldspar alteration envelopes are superimposed on all the lithologies. The veins are subparallel to but slightly steeper than the north dipping porphyry units and where mined were typically 0.5 to 2 metres wide.

The deposit includes several subparallel sulphide-potassium feldspar-quartz vein and stockwork systems. The deposit extends for 1525 metres on surface and has been drilled to 215 metres depth. Development has concentrated on the 16 and Discovery vein systems which strike northeast with steep north dips. The deposit has been developed on the 1125 and 1075 levels and a decline is being driven to reach deeper vein systems.

The gold-silver-copper-bearing sulphides are comprised mainly of pyrite and chalcopyrite with some sphalerite, galena and minor pyrrhotite. Gangue minerals are potassium feldspar (orthoclase) and quartz. Metallic minerals identified from the high-grade Discovery drill core include rare arsenopyrite, bornite, chalcopyrite, covellite, electrum, enargite, galena, native gold, hematite, ilmenite, magnetite, marcasite, molybdenite, pyrargyrite, pyrite, pyrrhotite, sphalerite, stephanite and tetrahedrite. Together, the sulphides form about 80 percent of the vein with the gangue potassium feldspar and quartz forming stringers within the sulphide and along both the hanging wall and footwall. Native gold occurs as irregular veinlets within these stringers and occasionally in pyrite.

The mineralogy of the 16 sulphide vein is similar to the Discovery vein, except that sulphides, particularly chalcopyrite, are less abundant, and sphalerite and galena are more abundant. The 16 vein lies in the footwall of the Discovery vein and in the hanging wall of the Pick Axe mineralization, and like the former lies along fractures cutting the country rocks which are marked by potassium feldspar flooding and general pyritization. The Gold Rush vein system consists of coarse pyrite, quartz and potassium feldspar with abundant free gold, scattered galena, tetrahedrite and minor sulphosalts. The newly discovered Zephrin zone consists of feldspathic and siliceous alteration in a brecciated zone containing 10 to 15 per cent sulphides and carrying high gold values. The Cloutier vein (current name - Discovery vein) comprises a zone of quartz veins with abundant pyrite and chalcopyrite. In 1986, a 2.6-metre wide sample averaged 5.18 grams per tonne gold, 29.3 grams per tonne silver and 3.23 per cent copper (Exploration Review 1986, Information Circular 1987-1, page 36).

In summary, the host rock at the Johnny Mountain mine is part of a potassium feldspathized syenite-syenodiorite stock of probable Lower Jurassic age that has intruded a thick Upper Triassic intercalated felsic volcanic/volcaniclastic sequence. The Triassic strata are overlain by a younger, gently dipping volcanic- sedimentary sequence. The veins and sulphide stockworks are found entirely within fracture systems cutting altered and deformed syenite and sedimentary rock pendants. High-grade gold mineralization appears to be concentrated along phyllonite/massive syenite contacts.

As of January 1989, reserves at the mine are:

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                                      Tonnes    Grams per tonne gold
Proven (broken ore)                   50,792            22.62
Proven (in ground)                    44,443            31.88
Probable                              78,002            23.65
Possible                             448,965            17.14
Total                                622,202            19.54
(Property File - Globe and Mail, January 26, 1989)
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The Johnny Mountain mine was engaged in pre-production from January through to November of 1988. The mill began operation in August and commercial production was achieved on November 1, 1988. The mine closed in mid-August of 1990 and milling operations ceased in early September. High operating costs and low gold prices were significant factors in the closure. In 1993, a further 21850 tonnes were milled. The total mined from 1988, 1989, 1990 and 1993 was 196, 358 tonnes from which a total of 2,815,393 grams of gold, 4,348,814 grams of silver and 1,008,109 kilograms of copper were recovered.

Interest has been reactivated at the Stonehouse deposit, where there are 16 gold-bearing veins with drill indicated reserves of 59,868 tonnes grading 20.5 grams per tonne gold (George Cross News Letter No. 95 (May 18), 1993).

Reserves estimated by the company as of January 1, 1994 were 24,00 tonnes grading 11.3 grams per tonne gold, 22 grams per tonne silver and 0.23 per cent copper (Information Circular 1994-19, page 8).

In 1995, with Explore B.C. Program support, International Skyline Gold Corp. carried out a limited program of trenching and sampling. Results were disappointing; no assays equal or greater than 1 gram per tonne gold were obtained (Explore B.C. Program 95/96 - A66).

Skyline Gold Corp. and R&R Enterprises planned to recover gold from the tailings during 2003.

At the Cornice zone, two hundred metres south of the southwest end of the mine veins, Skyline Gold drilling encountered massive sphalerite and galena in sandstone with some associated potassium feldspar alteration. Six holes were drilled in the area in 1988. The Cornice mineralization was interpreted as a possible volcanogenic massive sulphide zone distal to significant sized bodies of similar or higher grade (Assessment Report 29673).

Work History

Several the following showings are new and, as of this description, have not been assigned a MINFILE number.

In 1907, a prospecting party from Wrangell, Alaska recorded claims on Bronson Creek. These claims were later Crown Granted and remain in existence today. In the period 191 I to 1920 the Iskut Mining Company reported drifting, trenching and stripping several gold bearing veins on the Red Bluff and Iskut claims on the northeastern portion of the property. From 1954 to 1960 Hudson Bay Mining and Smelting Co. Ltd. completed exploration drilling resulting in the discovery of copper prospects at the location of the Johnny Mountain Gold Mine. In 1964, Cominco Ltd. optioned claims from Tuksi Mining Company and Jodi Explorations Ltd. and in 1965 completed drilling on the Red Bluff claim for its copper content. In 1973 and 1974 the property was examined by Texas Gulf Sulphur Inc. for its copper and base metal content.

In 1980, Skyline restaked the claims and initiated exploration on the Pickaxe Vein (Johnny Mountain (Stonehouse)) and adjacent area to define its gold potential. In 1981, the Discovery Vein was discovered, and subsequent drilling was completed. In 1982 Skyline continued drilling the Discovery Vein and other targets resulting in the discovery of a high-grade gold vein that became known as the 16 Vein.

In late 1982, Skyline entered into an agreement with Placer Development Ltd. to explore the property. Placer in turn entered into a joint venture with Anaconda Canada Exploration Ltd. and the joint venture completed exploration during 1983 and 1984.

In 1983, Placer Development and Skyline conducted property scale airborne EM.

In 1984, trenching and diamond drilling on Bonanza zone occurred. In late 1984, Skyline completed deep drilling on the 16 Vein and established depth continuity to this gold bearing quartz sulphide vein. From 1985 to 1988 Skyline continued with the surface and underground exploration and development on the several veins that comprise the Stonehouse Gold Deposit.

In 1985 work included Pulse-EM surveys on Bonanza/Johnny Flats; trenching and diamond drilling of anomalies; VLF-EM and diamond drilling on Bonanza, Two Bit, Windsock showings; trenching on C-3 showing.

In 1987, Skyline conducted Red Bluff reconnaissance work.

In August 1988, the Johnny Mountain Gold Mine commenced production. According to BC government records for 1988, 1989 and 1990 and 1993, a total of 196,358 tonnes of ore were mined from which 2,815,393 grams of gold, 4,348, 814 grams of silver and 1,008,109 kilograms of copper were recovered.

Additionally, Skyline completed large geochemical, geophysical and prospecting programs during 1988, 1989 and 1990 between the mine and the northern and northeastern portion of the claims. These programs resulted in reconnaissance diamond drilling of numerous promising gold targets as well as directed drilling of the Road Show gold vein in 1988, the Red Bluff (104B 077) copper, gold porphyry target in 1988 and the C-3 shear hosted gold prospect in 1990.

In 1988, work by Skyline included work on the Red Bluff area: mapping, prospecting, soil geochemistry, trenching and diamond drilling of geochemical anomalies; VLF-EM and diamond drilling on Road and Mike showings.

In 1989, work by Skyline included mapping, prospecting, soil geochemistry, diamond drilling on CE, Windsock, Boundary, OSC, C-3 and Mike showings.

In 1990 the Placer Dome/Skyline joint venture included; mapping, geochemistry, trenching, mag., VLF; diamond drilling and down-hole EM on Bonanza zone: diamond drilling on C-3.

In 1991, Skyline conducted trenching, sampling and diamond drilling on-CE-contact zone.

Skyline also completed exploration programs on behalf of Placer Dome Inc. in 1990 and 1991 on an optioned block of claims on the northeastern portion of the property known as the Bronson Creek Project. Placer was exploring for the southeastern extension of the formerly producing Snip Gold Mine that adjoins the northern boundary of the Iskut Property. More than one million dollars was spent on geophysical, geochemical, trenching, prospecting, geologic mapping and diamond drilling programs.

During 1991, Adrian Resources Ltd. performed exploration work on the northwest portion of the claims under an earn-in option agreement. The work comprised geophysics, geochemistry, prospecting, geologic mapping, trenching and diamond drilling. Numerous targets were identified and the SMC Zone, thought to be a gold and base metal, shear hosted deposit, received the bulk of the drilling. Expenditures were reported to be 1.3 million dollars.

At the same time, during 1990 and 1991, Skyline was performing prospecting, geologic mapping, trenching and drilling on shear hosted gold targets on the Burnie claims to the south of the Adrian work. This work was based on the earlier work by Androne/Pezgold and discovered numerous interesting targets.

In 1993, Skyline signed an exploration agreement with Cominco Ltd. in which Cominco performed exploration on a portion of the northeast area of the property. Cominco’s interest was in finding a deposit similar to the Snip Gold Mine. During the period 1993 to 1995, Cominco spent approximately 1.4 million dollars on geologic mapping and diamond drilling.

The 1993 program on the Skyline option focused on the Sky Creek area, in the southwest corner of the option. The program entailed soil and stream sediment geochemistry, geological mapping, prospecting, geophysics (EM, IP, Magnetics) and diamond drilling (7 holes, totalling 934 metres). No significant gold mineralization was encountered in the 1993 drilling.

Skyline performed a limited program of Induced Polarization and diamond drilling on the Red Bluff gold, copper, + molybdenum porphyry system in 1993. This led to an extensive program of advanced exploration and feasibility study during the period 1994 to 1997; during which time, the deposit was re-named the Bronson Slope porphyry deposit (104B 077). Fieldwork was stopped in 1998.

In 1994 program, 4128.3 metres in 13 holes were drilled. Eleven of these drill holes tested the Sky Creek fault area located 800 to 1500 metres due south of the Snip deposit. No significant gold mineralization was found. Drill hole CS94-11 intersected a 3-metre-wide sulphide vein (70 to 80 per cent pyrite, trace chalcopyrite, 2 to 3 per cent chlorite, 20 to 25 per cent quartz) grading 4.8 grams per tonne gold that could possibly correlate with the Mike showing (Assessment Report 24361). However, 3 follow up drill holes could not duplicate this intersection. The last 2 holes of this program were drilled from the same set up located approximately l kilometre along the eastern projection of the Twin Shear zone. Drill hole CS94-20 intersected a 6.4 metre calcite/sphalerite shear vein averaging 2.3 grams per tonne gold that possibly correlates with the CE and Bonanza showings showing (Assessment Report 24361).

In 1995, Snip Joint Venture. (Cominco Ltd. 60 per cent, Prime Resources Group Inc. 40 per cent) carried out a surface diamond drill program (12 holes totalling 5656.3 meters) on the Skyline Option ground. Diamond drilling focused primarily on a 2.5 km structural trend along the north east option boundary (NE Option Target) defined by the Bonanza showing, CE-Contact showing and drill hole CS94-20.

In 1995, two mineralized shear zones (Bonanza, CE-Contact), along the northeast option boundary were targeted at depth for Twin Zone type mineralization. Eight drill holes totalling 2769.7 metres were drilled on the Sky 3 claim to test the projected western extension of a 120 to 150-degree striking zone of mineralized shear veins (T West). Drill holes CS95-26, 28, and 29 intersected mineralized veins similar to that drilled by Cominco on the Snip1 and 4 claims. The only significant gold value encountered was in drill hole S95-210 which returned 42.35 grams per tonne gold but only over 0.10 metre (Assessment Report 24361).

In 1999, Skyline reached an agreement with Homestake Canada Inc whereby Skyline was given controlled access to the Snip Mine workings to perform underground exploration on an area of Skyline’s ground immediately adjacent to the Snip workings. Homestake would act as mining and drilling contractor to Skyline to perform the work, and a revenue sharing agreement was agreed upon should Homestake elect to participate in the mining and milling of any ore developed on the claim. Homestake retained a production royalty on the ground from an earlier agreement.

From 1999 to 2005, Skyline’s activities on the property comprised several small reclamation programs as well as an examination of the tailings at the Johnny Mountain Gold. In 2003 a technical inspection of the tailings impoundment dikes and collection of rock samples from tailings, airstrip, roadways and waste rock dumps was completed by Skyline Gold Corporation.

Spirit Bear Minerals Ltd (SBM) had an option to acquire a 70 per cent interest in the Iskut Property from Skyline Gold Corporation, which included the past-producing Johnny Mountain (Stonehouse) (104B 107) vein-type gold deposit, located at the centre of the property. This property is adjacent south of the Snip 1 - Bronson Slope property. Exploration work by Spirit Bear Minerals prior to 2007 comprised 2005 resampling of trenches at the SMC showing in the northern part of the Property, and a 2006 airborne electromagnetic-magnetic (EM-mag) survey over all but its extreme southern part, augmented by a 2,350 sample MMI soil survey, geological mapping and rock sampling (Assessment Reports 28103 and 28745).

A five-hole 3139 metre drill program was carried out in 2007 by Spirit Bear Minerals (Assessment Report 29673). Two holes directed at the deep Snip Structure did not achieve their target owing to technical problems. Two holes were drilled beneath the Stonehouse gold deposit to locate the feeder zone for the deposit. Neither intersected the brittle, potassium feldspar alteration and quartz sulphide veins characteristic of that deposit. Hole SB-07-03, collared with westward azimuth and steep dip intersected massive stratabound, probably stratiform pyrrhotite mineralization with minor copper and gold values, at roughly the same stratigraphic level as the Besshi style volcanogenic sulphide mineralization at the past producing Granduc Mine, north of Stewart. Both holes intersected chert, also indicative of an exhalative environment. A single hole directed beneath the SMC structure returned neither grade encouragement nor evidence of continuity of either structure or mineralization, probably owing to a fault offset.

Spirit Bear also summarized many of the showings in the area, utilizing public and private company reports (Assessment Report 28103 and 29673).

In 2006 and 2007 Skyline drilled several thousand metres of core to measure a Cu-Au-Mo resource on the Red Bluff Porphyry with the goal of producing a positive feasibility study. Skyline completed an additional 561.6 metres HQ drilling in 4 holes in 2006, drilling the HQ core for comparative purposes on the Red Bluff Zone, a higher grade portion of the Bronson Slope deposit. In 2007, 3936.2 metres were drilled in 11 NQ holes, also testing within the Bronson Slope deposit area.

The 2009 drill program of Skyline Gold Corporation on the Snip 1 consisted of 2 diamond drill holes, drilled from one set up, for a total of 728.78 metres of NQ core. The holes were drilled from the site used in 1988 for drill hole 911; the holes were drilled to intersect the CE zone (Assessment Report 31387). The CE Contact occurrence is a different structure off the Snip 1 claim to the southwest.

During 2010, eighteen diamond drill holes totalling 3,570 metres were cored in the Snip 1 claim by Skyline Gold Corporation. The programs objective was to test CE zone mineralization that had been confirmed by drilling in 2009.

In 2016, Seabridge Gold Inc. completed a limited amount of drilling this summer at the old high-grade Johnny Mountain gold mine to test detailed ore control concepts on a known deposit while proceeding with the comprehensive program. The Iskut Project was obtained with the closing of Seabridge’s acquisition of SnipGold Corp. in June 2016. Drilling results (with assays) are found in a 2016 news release (Seabridge Gold Inc., News Release October 26, 2016).

In 2016, Seabridge conducted a multipronged exploration program on its 100-per-cent-owned Iskut project. Drilling confirmed the key structures that control mineralization and the likely elevation where we should expect to find higher grades. Seabridge sees the Johnny Mountain mine as being on the edge of a larger system that lies near the bottom of the productive gold-bearing zone which was largely eroded away by glaciation. The nearby, higher elevation Quartz Rise (new to MINFILE 2018) resisted glaciation and remains largely intact in part due to its higher silica content.

Detailed magnetotelluric and airborne hyperspectral surveys were completed over Jurassic Hazelton group rocks on the west slopes of Johnny Mountain. The purpose of these surveys was to identify the alteration patterns in the underlying rock formations. Magnetotelluric (MT) technology acquires data over a large frequency band providing information on rocks to a potential depth of three kilometres. A hyperspectral survey was also flown with sensors collecting data in wave lengths between 390 nanometres to 2,450 nm with a two-metre spatial resolution.