Stewart Gold Project

MC–Dalhousie-Rock of Ages Property and Outland Silver Bar Property

Bonanza Mining Corporation is a new exploration company with a proven team of mineral exploration professionals that has acquired options to purchase a 100% interest in two historical gold and silver mining properties located near the town of Stewart in the prolific Golden Triangle region of northwestern British Columbia.

These prospective properties are the Dalhousie/Rock of Ages – MC 1 & 2 and adjoining claims and the Outland Silver Bar – Oldtimer claim.

Bonanza has entered into an option agreement whereby it may acquire a 100% interest in the historic Dalhousie/Rock of Ages mineral property near Stewart, BC. The original Dalhousie and Rock of Ages crown granted mineral claims have expired and their prospective area is now covered by the MC 1 & 2 mineral tenures.

In conjunction with the MC 1&2 claims agreement, Bonanza has entered into a separate option agreement to acquire a 100% interest in an additional 6 mineral tenures that adjoin both the west and east sides of the MC 1&2 claims. The total property area is 1,972 hectares.

The second option agreement includes the Oldtimer claim that is located in a separate area approximately 10 km northwest of the MC 1&2 claims and covers the historical Outland Silver Bar property.

Active Nearby Mining Projects

The western boundary of the MC 1&2 and adjoining claims is 2.5 km east of the Premier mine property where Ascot Resources Ltd. has commenced a 2017 exploration program consisting of 120,000m of surface drilling, underground rehabilitation and development and 27,000m of underground drilling. The exploration program will utilize up to 8 drill rigs and cost $20 million.

The Premier mine produced 2.1 million ounces of gold and 45 million ounces silver from 8.8 million tonnes of ore from 1918 until mining stopped in 1996. It was the third largest producer of silver and the fourth largest producer of gold in BC.

The Premier mine is hosted in Unuk River Formation volcanic rocks that have been intruded by a body of Texas Creek granodiorite and the related Premier dike swarm.

Approximately 8 Km north of the Premier mine is the Big Missouri property where Ascot has completed several major drilling programs since 2010 and is planning to conduct a significant amount of drilling in 2017. The Big Missouri deposit was mined by Cominco from 1938 to 1942 and produced 58,384 oz gold and 52,677 oz silver from 850,000 tons of ore.

Ascot has published an indicated resource of 93,500,000 tonnes grading 0.82 g/t gold and 6.9 g/t silver (2,475,000oz gold, 20,783,000 oz silver) and an inferred resource of 79,278,000 tonnes grading 0.59 g/t gold and 7.2 g/t silver (1,494,000 oz gold, 18,238,000 oz silver) for the contiguous Big Missouri-Martha Ellen- Dilworth mineralized system.

Recently Ascot staked a large block of claims that adjoin the east side of the MC property and cover the area between the MC claims and IDM Resources Red Mountain property.

Approximately 14 km southeast of Bonanza’s property is the Red Mountain gold deposit owned by IDM Mining Ltd and the west boundary of their large claim block is only 2.5 km east of Bonanza’s property.

On March 7, 2017, Osisko Gold Royalties Ltd invested $15.24 million into IDM and now owns 19.9% of the company. The funds are to be primarily used for exploration and development of the Red Mountain project where a measured and indicated resource of 2 million tonnes grading 8.75 g/t gold (583,700 oz gold) and 24.8 g/t silver (1,655,700 oz silver) has been outlined. The underground drilling portion of the 2017 exploration program has commenced.



In February 2017, Ascot Resources staked a separate block of claims that covered all of the open ground between the east side of Bonanza’s property and the west side of IDM’s property.

American Creek Resources Ltd. has recently acquired the past producing Dunwell mine property that adjoins the southeast side of Bonanza’s property. The Dunwell mine operated from 1926 to 1941 and produced 10,000 ounces of gold and 330,000 ounces of silver as well as 1.85 million pounds of lead and 2.4 million pounds of zinc from 50,000 tones of ore. The Dunwell mine was the third largest silver producer in the Stewart mining district.

Dalhousie/Rock of Ages Property – MC 1 & 2 and Adjoining Mineral Claims

The MC-Dalhousie-Rock of Ages property and adjoining claims are very well located and highly prospective for gold, silver and base metals.

The property is located on the east side of Bear River ridge and along the Bear River valley, approximately 14 km north of Stewart, BC. Highway 37A runs across the property along the east side of the Bear River valley and helicopters are available for charter in Stewart.


Geological map of the Premier mine area and Bonanza’s adjoining claims


Geological Cross-Section

Cross-section through the Premier mine area and Bonanza’s adjoining claims

Bear River ridge is approximately 20 km long and divides the Bear River valley on the east side from the Salmon River valley on the west side. Ascot’s Premier mine project is in the Salmon River valley on the west side of Bear River Ridge and Bonanza’s MC/Dalhousie/Rock of Ages property is on the east side of the ridge.

The geology of the MC property is very favorable as it is also underlain mainly by Unuk River formation volcanic rocks that have been intruded by a body of Texas Creek granodiorite along the southern portion as well as the Bitter Creek diorite body and the Portland Canal dike swarm on its eastern side.

A major northwesterly trending shear-fault structure runs across the property parallel to the Portland Canal dikes and the north-south strike of Bear River Ridge is deflected to a southwesterly strike across this major structural dislocation. An extensive zone of quartz-sericite alteration and pyritization occurs along this zone where it crosses the property

As well several other large east-west striking faults, such as the one near the peak of Mt Shorty Stevenson, cross the property and strike ontothe Premier Mine claims on the west side of Bear River Ridge.

Mineral exploration on the MC property dates back to 1910 and it hosts 16 historical mineral occurrences that have been documented in the BC government Minfile Summaries and there are likely many other showings that have not been publicly documented.

There have been 18 separate mineral exploration programs conducted on the property since 1965 that are described in BC Ministry of Mines assessment reports and are publicly available. As well there were many earlier exploration programs that were conducted from 1910 to 1936 that are documented in Minister of Mines Annual Reports.

Most of this exploration work focused on exploring individual showings rather than comprehensive geological evaluations of the property as a whole. The earliest work consisted of prospecting, trenching and sampling as well as excavating at least 3 tunnels, the longest being over 100 meters long.

Exploration programs since 1965 consisted of geological mapping, prospecting, trenching, soil and rock sampling as well as ground magnetic and VLF geophysical surveys over selected areas of the property.

There have only been 4 holes drilled on the property and these were located in two separate areas of mineralization. In 1990 a hole was drilled to test the Ice 3B showings but was stopped at 99 meters, short of the target, due to mechanical problems. The bottom 0.2 meter interval of core from this drill hole intersected carbonaceous quartz gangue with disseminated sphalerite and traces of fine galena that assayed 1.79 g/t (0.05oz/t) gold, 343.0 g/t (10 oz/t) silver 9.24% zinc and 0.37% lead.

In 2011, 3 holes totaling 710 meters were drilled from 2 separate collar locations to test the gold-silver-zinc bearing quartz-sulfide Rock of Ages No 3 vein zone which had been identified from previous work to host precious and base metal bearing veins and breccia bodies. The drilling encountered hydrothermally altered sericite-chlorite-carbonate-sulfide rich volcanic and sedimentary rocks throughout most of the core and specifically in multiple sections varying in down-hole lengths ranging from 25 m up to 210 meters.

Sulfides consist of mainly of disseminated pyrite ranging from 2 up to 20% with minor <2% sphalerite and trace chalcopyrite. The showing is aligned along a prospective northwesterly trend for approximately 1,200 meters that includes the Rock of Ages No 2, Dalhousie and Cairn showings and future work should be expanded and directed towards exploring these showings along the favorable trend.

Multiple narrow sections consisting of feldspar-quartz porphyry intrusive were also identified in the core associated with the altered rocks and an increase in sulfide concentration.

Analysis of 461 core samples returned multiple sections of anomalous gold, silver and zinc values of up to 0.9 meters of 1.03 g/t gold in hole MC-11-02 and 1.8 meters of 1.2% zinc and 2.4 meters of 7.3 g/t silver in hole MC-11-01, within wider sections of anomalous metal contents. The results were encouraging because they indicate the presence of a large hydrothermal mineralizing system.


Location of mineral showings on the MC 1& 2 claims marked by yellow pins


Location of mineral showings on the MC 1& 2 claims marked by yellow dots

There are at least 7 separate areas of mineralization on the MC 1 & 2 claims.

The Palmey showings are located on the southern portion of the property near the northern edge of the Texas Creek intrusive body.

The Southeast Zone showings are also located in the southern area of the property along the east side of the Texas Creek granodiorite intrusive body, at a lower elevation and to the east of the Palmey showings.

The Ice 3A & 3B and Glacier-PRE showings occur towards the western side of the property at high elevations along the upper slope of Bear River Ridge.

The Alpine and Aztec showings are in the west-central part of the property below the Ice showings.

The Cairn, Rock of Ages No. 2 & No.3 and Dalhousie No. 1 showings occur in the north-central portion of the property along the Rock of Ages fault zone.

The Dalhousie No. 1 and No. 2 showings occur in the central area of the property.

The A&T showings are located along the northeastern boundary of the property. Many of these mineral occurrences are shear zone and fault controlled quartz and quartz carbonate veins and breccia zones that contain sulfide minerals, predominantly pyrite, with lesser amounts of chalcopyrite, sphalerite, galena and tetrahedrite. A number of these showings are also associated with larger areas of quartz-sericite-pyrite alteration.

There are several distinct styles of sulfide-quartz mineralization on the property. Some are structurally controlled quartz-sulfide veins occurring along shear zones across widths up to 2 meters while others are quartz-sulfide replacement zones where silicification and pyrite are developed across widths of 100m to 300m. Many of the showings are associated with areas of bleached country rock with secondary sericite, quartz and pyrite adjacent to zones of structural cataclasis.

As well, there are at least two gold enriched massive pyrite, pyrrhotite, chalcopyrite, magnetite and jasper horizons that occur along or near the contact between andesite and rhyolite flows and have been interpreted to be volcanogenic in origin.

Alternatively these horizons may have been favorable beds for replacement or skarn mineralization that could have originated from an underlying intrusive source related to the Texas Creek granodiorite or the Bitter Creek diorite. The structurally controlled quartz sulfide vein mineralization may have been remobilized along structures that intersected the previously mineralized horizons.

If this hypothesis is correct it raises the possibility for porphyry copper-gold mineralization to occur in an underlying intrusive body.

The Red Mountain gold deposit being developed by IDM Mining Ltd. occurs in pyrite-pyrrhotite stockworks within the Hillside Porphyry intrusive body.

The A & T showings lie between 700m and 1,000m elevation about 200 meters north of the Rock of Ages showings. Assays reported from these showings include 0.18 oz/t gold, 1.3 oz/t silver and 2.7% copper over 3 feet and 0.02 oz/t gold, 8.6 oz/t silver and 4.6% copper over 5.5 feet. A showing at 900m elevation is an irregular area of chalcopyrite mineralization that occurs in several places over a zone width of about 70 feet.

The Palmey showings occur along a fault zone approximately 150 meters south of Dundee creek that contains a significant amount of quartz-sulfide mineralization in places.

The mineralization consists of three main quartz replacement zones from 2 to 15 feet wide that strike northwesterly and dip southwesterly. The two most northerly zones converge towards each other and possibly junction at 1,463 m elevation.

Associated with the quartz and pyrite, are galena, sphalerite and a minor amount of chalcopyrite that is best exposed over a width of 2.5 meters in a trench at 1,200 m elevation. The lead and zinc mineralization in the trench is fairly high grade in but the zone is cut off by a fault immediately below it and the faulted extension has not been located.

The Ice showings consist of several silver and gold bearing quartz-sulfide veins that are spatially related to en echelon west and northwest trending fault structures within or adjacent to quartz-sericite-pyrite altered areas. The Ice 3B showing is on the same fault structure as the Palmey showings.

Two samples taken from the Ice 3B showings assayed 3.8% lead, 9.4% zinc, 12.0 oz/t silver, 0.121 oz/t gold across 0.5 m and 23.1% lead, 30.6% zinc, 12.8 oz/t silver, 0.042 oz/t gold across 0.5 m. A sample weighing approximately 100 kg returned an assay of 1.47% copper, 35.15% lead, 550 oz/t silver and 0.16 oz/t gold.

The Southeast Zone showings occur along and near the west side of the major shear zone that trends northwesterly across the property. Several showings are located at the 800 meter elevation, one of which returned an analysis of 126.4 ppm silver and 810 ppb gold across 1.0 m, but the highest gold values are from a polymetallic quartz-sulfide vein that is exposed in a 7m long adit at the 336 m elevation. A chip sample from the vein in the adit assayed 1.72 oz/t gold, 8.57 oz/t silver, 0.63% copper, 1.78% lead and 9.99% zinc across 1 meter.

The Glacier Zone contains numerous northwest trending lenticular quartz-sulfide fissure veins that are from 0.1 to 1.0 meters wide and are located at the 1,100 to 1,200 meter elevations along the west side of the major shear zone and on strike with the Southeast zone showings.

Two samples taken from Glacier zone veins returned analyses of 5.1 ppm silver, 4.12 ppm gold across 0.9 m and 27.3 ppm silver, 1.58 ppm gold across 0.9 m.

The Rock of Ages showings are located at the same elevation as the Glacier showings but along the east side of the major shear zone and in a parallel structure called the forms the Rock of Ages Creek fault zone. The showings consist of 5-15% sphalerite-galena with minor pyrite-chalcopyrite in a gangue of quartz-carbonate. The high silver values are due to tetrahedrite and sulphosalts/electrum. This mineralization is located at the 1,200 to 1,300 meter elevation and occurs in NNW trending, steeply dipping shear zones located adjacent to the Rock of Ages fault zone.

Two samples taken from these showings assayed 0.06% copper, 3.21% lead, 6.54% zinc, 6.48 oz/t silver, 0.362 oz/t gold across 0.3 m and 0.05% copper, 2.66% lead, 5.69% zinc, 8.41 oz/t silver, 0.655 oz/t gold across 0.3 m.

The Dalhousie No. 1 showing is located on one of the volcanogenic, replacement horizons and is 37 meters long by 7 meters wide. A blast trench across this zone of the mineralization assayed 0.44 oz/t gold over 6 meters.

Three rock chip samples were taken from the Dalhousie showings that are located between elevations of 750 m to 850 meters along the southeast extension of the Rock of Ages fault zone. These samples returned assays of 31,800 ppb gold over 1 meter, 50,400 ppb gold over 0.80 meters and 4,580 ppb gold over 1.0 meters.

Exploration Potential – Glacial Ice and snow cover have melted back which has created more bedrock exposure above the 1,200 m elevation along the major shear zone where the small glacier is located.

Proposed 2017 Exploration Program

– The initial exploration program would include IP and magnetic geophysical surveys, soil and rock sampling, as well as geological mapping.
– A second phase of exploration would be a follow up diamond drilling program to test drill targets defined by the results of the initial work.


Location of proposed IP and magnetic survey lines on the MC 1 claim

Outland Silver Bar Property- Old Timer Claim

The Outland Silver Bar property is included in the option agreement for the claims that adjoin the Dalhousie/Rock of Ages - MC 1 & 2 mineral claims.

The total property area is 225 hectares, 2.25 km2.

The Outland Silver Bar property is located on the west side of the Salmon River valley approximately 24 km north of Stewart, BC and 5 km northwest of the Big Missouri gold/silver deposit currently being explored by Ascot Resources. The Granduc mine road runs along the east side of the Salmon River valley approximately 2 km east of the Outland Silver Bar property.

There is no public record of exploration work on the Silver Bar property since 1981.

The rocks on the property are part of a fairly extensive siltstone unit extending from Big Missouri Ridge under the Salmon Glacier to the Outland Silver Bar property that overly andesitic volcanic rocks that probably belong to the Unuk River formation of the lower Jurassic Hazelton Group.

At least five generations of dikes forming part of the Portland Canal dike swarm in the Big Missouri area trend northwesterly across the Salmon River valley and cut the sedimentary and volcanic rocks on the property.

The dikes are of widely varying composition and several distinct ages, and trend approximately 290 degrees, parallel to banding in the sediments. Some varieties of dikes (diorite, altered quartz diorite) are pre-mineralization, other (rhyolite quartz eye porphyry, dark green diorite) are post mineralization.

Dike ages are indicated by quartz vein mineralization which cuts altered porphyritic hornblende diorite and quartz diorite members.

Two styles of mineralization occur on the property and they are silver bearing quartz-sulfide veins and polymetallic massive sulfide replacement deposits.

Johnnies Vein, a north-northeast trending structure, is the major showing on the Outland Silver Bar property and has been explored by the No. 1 adit at elevation 4,041 feet and by adit No. 6 at elevation 3,882 feet. In the adit crosscuts, the vein has a width of about 4 feet and has an apparent mineralized section about 100 feet long.

Other smaller veins are found in the older dikes and generally show little extension into the siltstones. The veins generally consist of quartz with scattered galena, sphalerite, tetrahedrite and pyrite with minor chalcopyrite. The veins trend north to northeast and dip easterly within minor shear zones in the siltstones and in fractures in the dikes.

The massive sulfide replacement deposits are lenses of sulfide mineralization that have the same strike and dip as the bedding. These deposits appear to be of volcanogenic origin and would be classified as stratabound deposits. The minerals of the ore zones are pyrite, pyrrhotite, chalcopyrite, arsenopyrite, tetrahedrite, argentite and an unidentified tungsten mineral.

The main massive sulfide zone is a low grade zone with replacement bodies that trends roughly eastward down a steep slope facing Salmon glacier and appears to dip steeply. The sulfide replacement zone extends for approximately 400 feet with an average width of 50 feet and a vertical extent on the slope of 200 feet.

It is cut by six short adits and several open cuts. The zone is marked by a strong gossan. The best mineralization was seen in adits 8 and 10; in adit No. 8, sulfide mineralization is massive, with typical massive sulfide textures. Pyrite, pyrrhotite, sphalerite, arsenopyrite and galena occur in that approximate order of importance.

In 1981 four holes were diamond drilled on the property from 2 separate drill sites.

Three holes were drilled from the first site to evaluate the silver mineralization encountered in surface sampling around the portal areas of tunnels 8, 9 and 10. A fourth hole was drilled on the west side of the hill to test for a possible extension of the mineralized zone along strike and to undercut a surface trench which exposed heavy sulfide mineralization.

Diamond drill holes SB-81-1 and 2 were located so as to undercut the surface mineralization sampled in the area of tunnels 8, 9 and 10. SB-81-1 intersected 7.15 meters which graded 1.95 oz/t silver approximately 5 meters below tunnel 9. Gold values were negligible. This intersection coincides with the tunnel zones. The undercutting hole SB-81-2 did not intersect significant silver grades.

SB-81-3 was drilled from the same setup to evaluate the potential for strike continuity to the west. On the west side of the ridge an old cut exposes sulfides with visible amounts of chalcopyrite and galena. This zone is associated with the same dike sets running through the tunnel zone and would appear to be within the same broad zone of fracturing and mineralization. SB-81-4 was located to undercut this possible western extension. Neither holes 3 or 4 intersected significant silver values.

Tunnel 15 and Johnnies vein are 2 spots which returned significant gold values, but so far exploration efforts have been directed towards evaluating the bulk silver potential, and these areas have not received sufficient attention to properly assess the gold mineralization.

Proposed 2017 Exploration Program

A surface soil and rock sampling program directed towards exploring for gold mineralization should be conducted to test the Tunnel 15 and Johnnies vein areas and elsewhere on the property as the snow and ice cover has melted back substantially since 1981.


Geological map of the Outland Silver Bar property and Big Missouri Property