Rainbow Zone Project - Summary

Iolite was first discovered on the property at the end of the 1998 season. Iolite is blue-violet gem variety of the metamorphic mineral known as cordierite, a magnesium aluminum silicate. It has a hardness of 7.5 making it a durable gemstone. One of the remarkable properties of iolite is trichroism, wherein the stone changes colour from blue-violet to straw yellow to gray or clear when viewed from different directions.

Two gem quality iolite-bearing zones have been tested on this property. The two zones outcrop approximately one kilometer apart on a correlative litho-statigraphic horizon. Access to the zones is excellent. Float occurrences of similar material have been traced for an additional kilometer along strike.

The initial iolite discovery, known as the Rainbow North Zone , outcrops at the base of a small bluff. The mineralized zone has been hand trenched and is exposed for 20 metres along strike, 5 metres in thickness, and 5 metres in profile depth. Iolite content varies, averaging about 5% of the observed rock surface, which is highly altered due to weathering.

The iolite occurs as large crystals in quartz vein stockworks and pegmatites, and as scattered masses throughout the host-rock. The iolite crystals weather to irregular masses of translucent violet gem material on the outcrop surface. The deepest samples obtained from the outcrop show euhedral dark violet crystals with minimal alterations. The largest single crystals exceed 1,000 rough carats in weight, but much larger crystalline masses have resulted from complex twinning and intergrowths. A representative 2-metre by 2-metre panel sample averaging about 10 centimetres in depth was taken by hammer and moil from the south end of the mineralized zone. The total sample weight was approximately one tonne, from which approximately 50,000 rough carats of high-grade iolite was extracted.

The second iolite zone, known as the Rainbow South Zone , is also found outcropping at the base of a low bluff, and is exposed for 10 metres along strike, 2 metres in thickness and 2 metres in profile. Large, euhedral iolite crystals are found in quartz veins and as scattered masses and crystals throughout the host-rock. A second representative 2-metre by 2-metre panel sample averaging about 10 centimetres in depth was taken by hammer and moil from the center of the zone. The sample also weighted approximately one tonne, and yielded approximately 50,000 rough carats of high-grade iolite. The two samples taken together contained more than 100,000 rough carats of iolite crystal.

In December 14, 1998, the iolite zones were examined by gemologist/geologist Mr. Dave Barclay, who stated in a letter following the tour, andquot; If these zones prove to be continuous (a very reasonable probability due to tight statigraphic lithology and very similar elevation), then the volume of iolite available in this deposit could be enormous .andquot; (Note: It should be stated that Mr. Barclay?s comments were not based on any geological assessments or drill programs)

The first iolite gems were cut by master gem cutters and designers Bruce MacLellan of Mountain Gems Ltd., and Ken Dale of Rusty?s Gems Ltd. They both stated that the iolite was among the finest they have ever cut. The cutters both remarked on the superb blue-violet colour, excellent clarity, and intense brilliance of the gems.

The value of the iolite cannot be accurately evaluated at this stage due to the lack of knowledge about grades, proportion of gem quality stones, quality of the gem stones, efficiency of recovery during excavation and processing, and other factors. However, quality iolite sells for US$50 to 150 per carat.

Recommended program

The main iolite deposit was permitted for a 1000-tonne bulk sample. The bulk sample program should be continued with the addition of a contact blaster, blast mats and a rock drill. An excavator-mounted hydraulic rock hammer would then be used to break down the blast rock, which would be taken to a processing site for iolite recovery.

The objective of the bulk sample is to extract crystalline iolite from a known volume of rock to assess grades, recovery methods, and to provide gem and specimen material for test marketing and revenue.

An ongoing program of detailed geological mapping and petrography of the iolite deposit during the bulk sample will provide necessary data to upgrade the inferred mineral resource classification to indicated or measured.

The iolite/anthophyllite layer continues under shallow overburden to the north and should be thoroughly trenched to expose more mineralized rock for assessment and possible extraction.

Beyond the trenching, grid-controlled soil geochemistry and a close-spaced magnetic survey should be able to trace the layer.