The Magnetite (Stu) occurrence is located in northwest British Columbia, approximately 96 kilometres northwest of Stewart.

The Magnetite (Stu) area is underlain by a sequence of folded and faulted Upper Triassic andesitic volcanic and clastic sedimentary rock units of the Stuhini Group. The sequences of clastic layered rocks consist of volcanic wackes, andesitic flows, and argillite interbeds.

On the property, limestone is the oldest unit which is successively overlain by an argillite/siltstone/greywacke sequence which in turn is overlain by an andesite agglomerate unit. Feldspar porphyry and andesite dikes cut both the argillite/siltstone/greywacke and agglomerate.

In the central part of the Stu 2 claim, grey, massive, sometimes recrystallized limestone forms an east-west trending wedge which possibly is in fault contact with the argillite/siltstone/greywacke sequence. This sedimentary sequence is bedded, fine-grained, black and is often silicified and strongly fractured. This sequence hosts known mineralization in areas of feldspar-porphyry and andesite diking (refer to Billy Goat Bowl Zone, 104B 310 and Central Stu 2, 104B 311).

The Magnetite Zone consists of a lens of skarned massive magnetite with minor chalcopyrite with malachite and azurite measuring about 15 metres by 1 metre. It is located near the southeast claim boundary of the Stu 2 claim. A narrow limestone band overlies this zone. In 1987, a 0.5 metre sample assayed 2.95 grams per tonne gold, 13.03 grams per tonne silver and 0.459 per cent copper. Another grab sample assayed 0.86 gram per tonne gold, 34.63 grams per tonne silver, 2.026 per cent copper and 1.51 per cent zinc (Assessment Report 16930).

Within the southeast corner of the Stu 2, about 500 metres north of the Magnetite Zone, samples of pyritic, calcareous rock located near the faulted limestone ridge returned anomalous gold values. A 0.5 metre grab sample assayed 32.81 grams per tonne gold and another 0.3 metre sample assayed 23.59 grams per tonne gold 9 (Assessment Report 16930).

In 1989, this skarn area was investigated as the Bear zone and described as occurring along the southern margins of the limestone unit. It is a quartz-actinolite-epidote skarn zone that has been mapped westward for more than 350 metres and traced eastward by prospecting to the eastern boundary of the STU 2 mineral claim. This zone trends 060 to 070 degrees and appears to dip steeply southward. It grades northward into unaltered limestone, its southern contact is buried beneath a snowpack, and westward it is truncated by a northeast trending fault structure. This skarn hosts disseminated pyrrhotite, chalcopyrite and lesser amounts of galena and sphalerite along its entire length. Lensoid, semi-massive and massive pyrrhotite and chalcopyrite mineralization occurs along a 75 metre section of the skarn, in the northeastern corner of the Ridge zone. The very weak VLF-EM conductor located correlates very well with the weak magnetic anomaly. These anomalies do not appear to correlate directly with the outcropping sulphide mineralization.

Further east from the magnetite zone, several hundred metres south of the limestone ridge in pyritic sediments a grab sample assayed 10.90 grams per tonne gold, 179.31 grams per tonne silver, 0.116 per cent copper, 0.106 per cent zinc, 0.07 per cent lead, 0.91 per cent arsenic and 0.11 per cent bismuth (Assessment Report 16930).

Work History

Kestrel Resources Ltd staked the Stu 1 and 2 mineral claims (36 units) in the fall of 1986. The ground was acquired t cover favourable geology immediately north of Inel Resources Ltd.'s polymetallic Inel deposit. In 1987, Kestrel spent a total of 99 man days prospecting, mapping, rock chip and soil sampling and trenching. A total of 256 rock chip and 47 soil samples were collected. In 1987, four main areas of mineralization were identified: Billy Goat Bowl zone, the toe of Zappa Glacier, central Stu 2 claim area and the Magnetite zone.

The 1989 exploration program was undertaken to evaluate the remaining accessible but unexplored portions of the property and the four known zones of mineralization, namely the Billy Goat Bowl, tongue of the Zappa Glacier, central STU 2 and Magnetite zones.

The 1989 exploration program by Kestrel on the Stu 1 and 2 included prospecting and rock sampling (66 samples); detailed geological surveying of the Billy Goat Bowl and Ridge Zones; geophysical surveying - UTEM electromagnetics (10.8 kilometres), magnetics (10.4 kilometres) and VLF electromagnetics (200 metres); trenching (6 trenches for 40 metres); channel and chip sampling (25 samples). During the geological survey of the Ridge Zone, the Bear copper-bearing skarn zone was discovered, and it was subsequently hand trenched, geologically mapped and chip, panel, or channel sampled.

In 1989 detailed geological surveying by Kestrel Resources was directed towards identifying and evaluating the geologic settings of the Billy Goat Bowl, Central STU 2 and Magnetite Zones. Since the Billy Goat Bowl Zone has restricted access it was mapped separately from the other two zones which occur along the southern ridge of Zappa Creek. The two latter zones are collectively referred in this report as the "Ridge" Zone since they are indistinguishable.

See Central Stu 2 (104B 311) for related details.

Rock sampling of the Billy Goat Bowl, Central Stu 2, and Magnetite (Stu) area in 2014 by Colorado Resources Ltd. reported negligible gold values, however the approximately 60 samples taken average around 0.5 per cent copper (Assessment Report 35184).