Netalzul Mountain

Introduction

Netalzul Mountain is one of four AOIs on Jaxon’s Hazelton Property in the Omenica Mining Division, 35 kilometres north of Smithers, British Columbia. Jaxon expanded its stake at Netalzul Mountain and defined it as a separate AOI after modeling the historical prospecting, staking, geophysical and other geological data. This modeling identified a number of magnetic anomalies, setting up Netalzul as a possible analogue to the mineralization at the Silver Standard mine at East Hazelton.

Netalzul covers 62.06 km2 of the northeast corner of Hazelton (Figure 1) and consists of 14 claims comprising five previously held claims, five newly optioned claims and four newly acquired claims. Netalzul Mountain has had an eventful staking and exploration history but to date has not been systematically explored. At this time, five targets have been indentified: Ellen, Daisy, Netalzul Ag, Nat and Higgins. All are indicated by historical showings.

Jaxon’s claims were organized by Martial Levasseur, who previously prospected the area independently and with Noranda and Placer Dome. Mr. Levasseur is now an advisor to Jaxon, assisting in the design of the 2020 exploration and drilling programs for the Hazelton AOIs.

Figure 1. Claims Map of Four AOIs at Jaxon’s Hazelton Property in the Skeena Arch

Exploration History

Sporadic surface exploration work was completed on small parts of Netalzul Mountain by various operators (Table 1, Figure 2). The first documented work was carried out by Twin Peaks Mines Inc., who conducted airborne geophysical work in 1969. From the 1970s to 2010s, several surface outcrops, rocks, floats, tilts and soil sampling programs were conducted. In the early 2010s, Amarc Resources Ltd. staked most areas and conducted geophysical, geochemical and drilling work on the east side of Netalzul Mountain. To date, no drilling has been done in the areas Jaxon is now targeting.

Netalzul is marked by strong magnetic anomalies that are indicative of a porphyry system. Five historical mineral showings recorded grades of up to 3150 ppb gold and 76.76 oz/tonne silver. Jaxon’s interpretation of the historical geophysical and surface work indicates significant potential for the delineation of a Cu-Mo-W porphyry system with associated high-grade sliver and gold polymetallic deposits.

Figure 2. Major Historical Exploration Works at Netalzul Mountain AOI

Table 1. History of Exploration Works at Netalzul Mountain AOI

Year

Owner/Operator

Work Completed

Assessment Report No.

1969

Twin Peaks Mines Ltd.

Airborne geophysics

2663

1972

Twin Peaks Mines Ltd. & Selco Mining Corp. Ltd.

Petrographic analysis

3969

1985

Atna Resources Ltd.
Tom Richards

Prospecting, silt sampling

13924

1985

Atna Resources Ltd.

Geochemical works

15186

2010

Logan Miller‐Tait

Prospecting and geochemistry

32043

2012

Amarc Resources Ltd.

Geophysical work east of Jaxon’s AOI

33499

2013

Amarc Resources Ltd.

Geochemical and geophysical east of Jaxon’s AOI

34084

Netalzul Mountain Geology

Netalzul Mountain AOI is situated in the central part of the Intermontane Belt of the Canadian Cordillera, along the Skeena Arch, a northeast-trending tectonic element of Jurassic age. Lower to Middle Jurassic Hazelton Group (lmJHz) comprise the assemblage of marine and non-marine calc-alkaline, island arc volcanic that extend throughout much of central British Columbia. Upper Jurassic and Lower Cretaceous Bowser Lake Group (mJKb) and Skeena Group underlie much of the area near the property. The Skeena Arch defines the southern boundary of Bowser Basin.

The Bowser Lake Group consists of light to dark greyish sandstone, siltstone, conglomerate, shale and coal. Stocks, plugs and dykes of Bulkley intrusive complex (LKBg) and Eocene Babine intrusive are scattered throughout the property, along with associated continental arc volcanic Late Cretaceous Kasalka Group (uKK). There have been historical discoveries of significant porphyry copper deposits in the area, such as the Huckleberry, Big Onion, Morrison, Bell and Granisle porphyries. These are associated with either Late Cretaceous Bulkley Creek intrusions or Eocene Babine Lake intrusions.

Netalzul Mountain is underlain by hornsfelsed siltstone, sandstone, and greywackes of Bowser Lake Group (mJKB and uJBT), and granodiorites of the Bulkley intrusive (LKBg) (Figure 4). Granitic rocks are uniform, even-grained to medium-grained biotite hornblende granodiorite. In general, the unit is coarsely fractured and unaltered. Close fractured zones and shear zones are distributed throughout the intrusive. These shears and dykes trend northwest and dip steeply (Figure 5).

Figure 3. Upper Cretaceous Intrusion-Bulkley/Laramide Comparison (After Tom Richard, 2020)

Figure 4. Netalzul Mountain AOI and Geology Map

Figure 5. Outcrops of Steeply Dipping, Strong Fractured Granitic Intrusion at the Ellen Claim

Magnetic Features

In 1969, a mounted helicopter completed an 88-line airborne magnetic and electromagnetic survey of approximately 15 square miles. One magnetic high and two magnetic low areas (Figure 2) with accompanying zones of conductivity are strongly suggestive of the existence of porphyry mineralization in the area (Assessment Report 2663). It appears the major historical mineral showings are all located in the magnetic transition zone between the magnetic high and magnetic low zones or in the hornfelsed sedimentary rock in the sulfide mineralization distal to the porphyry system.

In 2008, Geoscience BC launched the QUEST-West Project. The program included a 1:500,000 aero-magnetic survey of central B.C., which included Netalzul Mountain AOI (Figure 6).

Figure 6. Aero-magnetic Anomaly (RTP) Map of Netalzul Mountain (Geoscience BC, 2010)

In 2016, as part of Geoscience BC’s Search Project Phase II, Sander Geophysics Limited (SGL) conducted a fixed-wing high resolution aeromagnetic and gamma-ray survey of central B.C. The processed magnetic data and maps were released in 2017. The surveyed area included only the east part of Netalzul Mountain AOI but with more accuracy (Figure 7).

Figure 7. Aero-magnetic Anomaly (RTP) Map, Historical Mineral Showings and Interpreted Porphyry Features of East Side of Netalzul Mt. AOI (after Geoscience BC, 2017)

Both the 2010 and 2017 magnetic anomaly maps show a strong magnetic high anomaly in the stock of the Bulkley granitic intrusive (LKBg). There are several minor variances of the magnetic anomalies observed in the magnetic high area in both the 2010 and 2017 magnetic RTP maps, which should be investigated further for potential relation to the porphyry system. The magnetic signatures at Netalzul show similar magnetic features to that of the other AOIs such as Blunt Mountain. The historical mineralization showings and workings are mainly located in the medium magnetic high anomaly area at Netalzul Mountain.

Mineralization

Mineralization at Netalzul has been identified as polymetallic vein type Ag-Pb-Zn (Au) and porphyry type Co-Mo-W mineralization. Polymetallic vein type mineralization occurs in sulphide veins 10 centimetres wide, and several quartz veins, 60 centimetres to 2 metres wide. Sulfide veins contain pyrite, galena and tetrahedrite, and occur in hornfelsed sediments and granodiorite. The quartz veins contain sphalerite, galena, pyrite and chalcopyrite (Figure 8). These veins mostly occur in hornfels siltstone and granodiorite. Individual samples from the veins returned high grades of up to 3.4 g/t Au and 1924 g/t Ag. These are mostly found in the outcrops at the Daisy and Ellen claims due to lack of outcrops at the other Netalzul AOI claims. The veins range in size and are traceable up to 100 metres. Veins in the granitic rocks occur in association with shear zones trending between 020 and 040 degrees, dipping steeply 70 degrees east to west. Granitic stocks show argillic and porphylitic alteration adjacent to the mineralized veins.

Figure 8. Quartz Veins with Pyrites at the Ellen Claim

The porphyry type Cu-Mo-W mineralization is hosted in the contact zone of a granodioritic to quartz monzonitic plug of the Late Cretaceous Bulkley intrusions (Figure 9). This porphyry type mineralization is observed at the Ellen, Daisy and Nat claims. The mineralization occurs as disseminated and films of molybdenite, pyrite and chalcopyrite in quartz veins in granodiorite.

Figure 9. Quartz Veins and Fractures in the Granitic Intrusion at the Ellen Claim

Netalzul Mountain Exploration Targets

Daisy Cu-Mo Porphyry and Polymetallic Mineralization

The Daisy Cu-Mo porphyry and Ag-Au-Cu-Pb-Zn polymetallic mineralization is located at the centre of the AOI. The mineralization is hosted in the contact zone between the granodioritic to quartz monzonitic plug of the Late Cretaceous Bulkley intrusion (LKBg) and Bowser Lake hornfelsed sedimentary rocks (mJKB) (Figure 10). The plug intrudes dacitic volcanic rocks of the Upper Cretaceous Suskwa volcanics, an informal subdivision of the Kasalka Group, and clastic sediments of the Middle Jurassic to Lower Cretaceous Bowser Lake Group.

Sparse molybdenite and chalcopyrite are associated with a northeast trending set of fractures which dip 60 degrees north. The zone is 200 to 250 metres wide and is confined to the quartz monzonite. Molybdenite is disseminated in the granitic host rocks, also occurring as coatings and fracture fillings associated with quartz stringers (Assessment Report 3969). Local silicification and biotitization are evident, but not well developed.

Sample NATMR006 (Figure 10), from 2009, is described as occurring in a fracture-controlled shear zone in granodiorite and occurs just outside of the north boundary of the Daisy claims. The granodiorite is in contact with a sedimentary package consisting of mudstone, siltstone, and conglomerate to the north. All of this is cut by no less than three different vein sets which host a variety of mineralization including sphalerite, molybdenite, pyrite, chalcopyrite, galena, tetrahedrite, stibnite and fluorite. Disseminated sulphides are common within the granodiorite as disseminated crystals of pyrite, chalcopyrite and molybdenite, with molybdenite most common as plating along parting planes and vein margins. Mineralization within the granodiorite appears to fall off rapidly inward of intrusion and is no longer apparent beyond 6 metres into intrusive. Several faults and fault splays were noted including one gouge (sample) filled structure falling near the sedimentary-igneous contact on the eastern wall. Sedimentary rocks are intensely hornfels throughout this showing. It was reported in 2009 that this zone had seen significant work in the past as indicated by one or more reported exploration adits in the area. Sample NATMR006 assayed >1% copper, >1%, >100 g/t silver, and 2.26 g/t gold (Assessment Report 32043). This area was staked in early 2020 and will be further investigated in the 2020 field work season.

Jaxon conducted a field prospecting program in the 2019 field season on the Daisy claim area, collecting nine outcrop chip samples (Figures 11, 12 and Table 2). The team observed one area of intrusive breccia composed of a clast of granodiorite and a matrix of rock flour and quartz composition (Figure 12). Malachite staining in the intrusive breccia matrix, and the samples returning ~1031 ppm Cu, indicate the potential for the breccia to host a significant copper bearing zone.

At the headwaters area of the nearby Higgins claim (1043656) (Figure 10), a strong white clay alteration zone has developed, causing the water in the creek to run white (Figures 7, 13). It may illustrate a west to east corridor trending along the contact zone of granodiorite intrusion and sedimentary hornfels, where the air magnetic survey also defined a transition zone between the magnetic high and magnetic low. Similar mineralization and magnetic features have been discovered at the Big Onion copper porphyry deposit 26 km south of Smithers.

Table 2. Assay and Sample Details from Daisy Claim at Netalzul Mt. AOI*

Target
Area

ppm

ppm

ppm

ppm

ppm

CuEq

lithology

Au

Ag

Cu

Mo

W

A0027125

Daisy

granite with qz vein

0.005

1.1

118

100

30

0.11

A0027126

Daisy

qz vein zone

0.114

47.9

8131

314

82

1.80

A0027127

Daisy

thick qz vein

0.194

93.4

1057

15

21

1.57

A0027128

Daisy

granite with qz/sul. vein

0.005

1.4

155

20

31

0.07

A0027129

Daisy

granite with qz vein

0.015

21.7

854

23

80

0.45

A0027130

Daisy

granite

0.006

1.7

234

7

307

0.24

A0027131

Daisy

cross cutting qz veins

0.007

1.3

156

12

19

0.06

A0027132

Daisy

Breccia Intrusion with Cu Malachite

0.006

0.9

1031

3

12

0.13

A0027133

Daisy

alteration breccia rock

0.008

2.6

170

2546

67

1.63

*$1500 USD/oz for gold, $5000 USD/T for copper, $20 USD/oz for silver, $30000 USD/T for Molybdenum and Tungsten are used for copper equivalent grade calculation

Four outcrop grab or chip samples taken in the 2019 field season from the Daisy claim have copper equivalent grades from 0.45% to 1.80% with copper grades up to 0.81%, molybdenum grades up to 0.25%, silver grades up to 93.4 g/t and gold grades up to 0.1g g/t. The traverse geology line and rock sample prospecting work confirm the historically reported vein type Cu-Au-Ag mineralization in both hornfels altered sedimentary rock and immediately near the contact intrusive granodiorite. It also confirms the porphyry type Cu-Mo mineralization in quartz veins in granodiorite. Sample A0027132 taken from the intrusive breccia returned 0.1% Cu. The air magnetic anomaly map (Figure 7) shows the Daisy claim lies in the transition zone between the magnetic high and magnetic low along the contact zone of Bowser Lake sedimentary rocks and Bulkley intrusive. The developed quartz vein type Cu-Au-Ag mineralization is overprinted near the contact intrusive and sedimentary rocks, interpreted as potential to host a porphyry type Cu-Mo-Au-Ag mineralization along the magnetic transition belt.

Figure 10. Geology Map of a Section of Netalzul Mt. AOI (Daisy and Ellen Claims)

Figure 11. Outcrop of Sample A0027126 Quartz Vein at the Daisy Claim returned Cu high to 0.84 %, Au 0.114 g/t, Ag 47.1 g/t and 314 ppm Mo. The quartz vein structure zone could be one metre wide.

Figure 12. Outcrop of Intrusive Breccia Sample A0027132 from the Daisy Claim, which is a clast of granodiorite set in the same composition of rock flour and smaller clasts, locally hydrothermal quartz cements and malachite staining, grab sample returned Cu high to 0.10 %.

Figure 13. Potential Clay Alteration Zone at the Higgins Claim

Ellen Cu-Mo-W Porphyry and Polymetallic Mineralization

The Ellen target is underlain by hornfelsed Middle Jurassic to Lower Cretaceous Bowser Lake Group siltstones, sandstones and greywackes intruded by granodiorite of the Late Cretaceous Bulkley intrusions which have hornfelsed the Bowser Lake rocks near the contacts (Figure 10). Aplite dykes cut all rock types.

Numerous veins, sheeted veins and stockworks containing quartz, pyrite, tetrahedrite, chalcopyrite and galena cut the granitic rocks. Quartz veins carrying galena and arsenopyrite are common in the metasedimentary rocks. The veins are generally lenticular and discontinuous. Argillic and propylitic alteration is evident in granitic rocks adjacent to some of the veins. Sericite and chlorite are developed after biotite and hornblende. Iron carbonate is commonly associated with some veins.

A 1-metre wide quartz vein cutting granodiorite strikes 025 degrees and dips 70 degrees southeast. This vein assayed 1.0 g/t gold and 340.5 g/t silver across 81 centimetres (Assessment Report 15186). Grab samples assayed up to 2614.7 g/t silver and 3.150 g/t gold (Assessment Report 15186). Quartz veins carrying pyrite and molybdenite are common throughout the intrusive.

A field prospecting program was conducted in the 2019 field season on the Ellen claims, collecting 10 outcrop chip samples (Figures 14, 15).

Table 3. Assay and Sample Details from Ellen Claims at Netalzul Mt. AOI*

Target
Area

ppm

ppm

ppm

ppm

ppm

CuEq

lithology

Au

Ag

Cu

Mo

W

A0027093

Hellen

10cm Quartz Vein within Fresh Granite

0.006

7.66

449.6

3.51

0.28

0.16

A0027094

Hellen

10cm Quartz Vein within Fresh Granite

0.004

7.05

991.3

8.32

0.53

0.20

A0027095

Hellen

1 m chip sample containing 3 Quartz Vein within Fresh Granite, see molybdenum

0.001

0.74

209.1

464.78

831.53

0.81

A0027096

Hellen

quartz vein stockwork in a fault zone

0.004

5.39

2547.9

168.3

335.85

0.63

A0027097

Hellen

>2 m diameters quartz vein stockwork in the granite

0.006

3.22

2475.3

1232.05

1092.58

1.69

A0027098

Hellen

quartz vein stockworks

0.038

34.92

648

542.68

8.56

0.90

A0027099

Hellen

quartz vein within granite

0.005

7.31

165.9

795.6

121.39

0.67

A0027100

Hellen

quartz vein within granite

0.007

1.58

223.4

10.36

29

0.07

A0027451

Hellen

20m wide quartz veins zone with hematite

0.021

5.59

98.3

302.74

19.73

0.30

A0027452

Hellen

0.02

22.81

685.7

28.31

62

0.45

*$1500 USD/oz for gold, $5000 USD/T for copper, $20 USD/oz for silver, $30000 USD/T for Molybdenum and Tungsten used for copper equivalent grade calculation

Six outcrop grab or chip samples have copper equivalent grades of more than 0.45%, copper grades up to 0.25%, molybdenum grades up to 0.12%, tungsten grades up to 0.11%, and silver grades up to 34.92 g/t. The traverse geology line and rock sample prospecting work confirm the reported vein type Cu-Mo-W mineralization in the intrusive granodiorite and porphyry type Cu-Mo-W mineralization in quartz veins in granodiorite. Sample A0027097 taken from the intrusive granite returned up to 1.69% Cu Eq. Air magnetic survey data outlines the transition zone between the magnetic high to magnetic low, along the contact zone of the Bowser Lake sedimentary rocks and the Bulkley Creek intrusive. The developed quartz vein type Cu-Mo-Ag mineralization is overprinted near the contact intrusive and sedimentary rocks, interpreted as potential to host the porphyry type Cu-Mo-W-Ag mineralization along the magnetic transition belt.

Figure 14. Sample A0027097 brecciated dilation lens with broken quartz veins cross-cut in two different directions. >1.5 m diameter sampling returned 6.39 g/t Ag, 0.25% Cu, 0.12% Mo, 0.11% W. Quartz vein contains spotty pyrite chalcopyrite and molybdenite.

Figure 15. Sample A0027100 fine grained pinky quartz monzonite stock with sheeted quartz veining and trace sulfide in quartz veining. Assay returned 0.021 g/t Au, 5.59 g/t Ag, 0.01% Cu, 0.03% Mo.

Other Targets

Netalzul Mountain AOI hosts three additional historical showings, including Higgins Ag-Pb-Zn-Au, Nat porphyry Cu-Mo-Au, and Netalzul Ag (Figure 7). Prospecting work will be conducted at these sites in the 2020 field season as time and budgetary constraints allow.

Conclusions and Interpretation

The vein type polymetallic Au, Cu, Ag, Pb, Zn mineralization observed recently in the field, and recorded in historical documents, is in widely spaced veins composed of quartz and sulfide, large to one metre plus fillings in shear and fracture zones and occurs in hornfels altered Bowser Lake Group siltstone sandstone and Bulkley intrusive granodiorite. Sheeted quartz veining has been observed at both the Ellen and Daisy claims, in the contact zone of the Bulkley intrusion and quartz monzonite plug. The quartz veins in fractures and shear zones returned values up to 3150 ppb gold and 76.76 oz/tonne silver. The most interesting assay came from sample NATMR006 which assayed >10,000 ppm cu, >10,000 ppm Pb, >100 ppm Ag, 930 ppm As, 2597.9 ppb Au, >2000 ppm Cd, and >2000 ppm Sb. This sample was taken from what appears to be a fracture controlled shear zone in granodiorite near the north boundary of the Daisy claim. These mineralized veins and fracture and shear zones mostly trend northeast, dipping east at a moderate angle, with several dipping west. The field prospecting work observed one place of intrusive breccia, at the Daisy claim, composed of a clast of granodiorite and a matrix of rock flour and quartz composition. Locally, malachite staining in intrusive breccia matrix, and a sample returning 1031 ppm Cu, indicate a potential to host a significant copper bearing breccia zone (Figure 16). At the headwaters area of the Higgins claim, a strong white clay alteration zone causes the water in the creek to turn white. This will be further investigated in the 2020 field season. Lastly, a west to east corridor (Figure 13) trends along the contact zone of granodiorite intrusion and sedimentary rocks, where the air mag survey defined a transition zone between the magnetic high and magnetic low (Figure 16).

Netalzul Mountain represents a surface expression generated by fluids from a large porphyry intrusive system. Numerous porphyry intrusive dykes were discovered on the AOI close to the sulfidation vein mineralization and to the distal large argillic alteration zone in the east part of the area (Figure 16). The 2019 surface program focused on taking rock samples from sites containing visible sulphides. Quartz veining confirms historic results of anomalous Cu-Mo-W values for the porphyry and silver-copper-gold-lead and zinc values for the polymetallic vein mineralization. These indicative metal values, combined with the locations and intensity of the regional and local magnetic anomalies, are considered as signatures of a Bulkley intrusive porphyry. All suggest the existence of a hidden porphyry system at Netalzul Mountain AOI.

2020 Exploration Plan

  • Comprehensive geological mapping and rock sampling to further define the known mineralization veins/alterations, identify new mineralization veins, new alteration, and define areas for additional exploration (Figure 16).
  • Geological mapping and rock sampling on NTMR006, near the north boundary of the Daisy claim, to track the high-grade polymetallic occurrences in the contact zones between Bulkley intrusion and Late Cretaceous hornfels on the north side of Netalzul Mountain (Figure 16).
  • Dating study of rock samples to determine whether the major intrusion is of Late Cretaceous Bulkley Creek intrusion or Eocene Babine Lake intrusion.
  • 50:50 m grid soil sampling program over the historical high-grade silver rock sample area at the north section of the Ellen claim (Figure 17), budget dependent.
  • High accuracy ground magnetic survey of the proposed working area (Figure 16), budget dependent.
  • Attract a partner to conduct a 1000-2000 m drilling program, targeting selected porphyry and other polymetallic mineralization areas modeled with data collected from the field work programs.

Figure 16. Comprehensive Map of Proposed Working Area (blue line), Interpreted Porphyry Features, Historical Showings, Aeromagnetic Anomaly and Geology of Netalzul Mt. AOI

Figure 17. Historical High-grade Ag Rock Sampling Area at the Ellen Claim