Operations of Red Mountain Mines Ltd.

"THE property of Red Mountain Mines Limited is located 11/2 miles north and west of the town of Rossland, in southern British Columbia. The mine is situated on the flank of Red mountain, famous in pioneer days as the site of a number of profitable gold-copper producers. Mining and milling commenced in May, 1966, and by the first of July the concentrator was treating close to its average design capacity of 400 tons per day. The following description of the property and its operations is divided into three parts, dealing respectively with geology, mining and milling.GeologyAll the known ore reserves of Red Mountain Mines occur on the Coxey claim, on the west slope of Red mountain. Although there are indications of molybdenite mineralization elsewhere on the Company's property, these have not been developed.The Coxey and adjoining areas are underlain by the Mount Roberts formation of the Rossland volca-nics. This formation consists of an interbedded series of volcanic and sedimentary rocks, mostly brecciated and silicified near the ore zone, and all intruded by igneous rocks which occur in various forms, and vary in composition from basic to acid. The country rock in the vicinity of the mineralization seems to be mostly a volcanic, approximately andesitic in composition, and possibly a surface flow. There is much banding, some of which is undoubtedly due to tuff and agglomerate layers, and some to narrow, siliceous, sedimentary horizons such as the surface exposure of the main ""A"" orebody, much of which was a thin capping of greyish banded rock that looked like quartzite. The drill holes also intersected occasional layers of black, argillaceous quartzite, sometimes altered to a greenish colour. The whole assemblage has been silicified with varied intensity, sometimes to such an extent as to have obscured or obliterated the original characteristics. The mineralized zone has also been strongly brecciated, the fragments varying in size from less than an inch up to large masses, best described as a mega-breccia. Anomalous results obtained in drilling, such as sedimentary sections that do not appear in adjoining holes, may sometimes be due to the presence of these large blocks, no longer in their original position. The whole volcanic unit is thus very complex and confusing. For practical purposes, the ore may be said to occur in a greenstone formation with minor sedimentary interbeds and considerable later igneous material."