Torch River Resources Ltd.
TSX VENTURE : TCR

Torch River Resources Ltd.

September 19, 2005 16:37 ET

Torch Announces Option Agreement with Red Bird Resources

CALGARY, ALBERTA--(CCNMatthews - Sept. 19, 2005) - TORCH RIVER RESOURCES LTD. (TSX VENTURE:TCR) (THE "CORPORATION"):

The Corporation is pleased to announce that it has signed an Option Agreement with Red Bird Resources Ltd. ("Red Bird") on its Red Bird Property. This press release is an update to the Corporation's press releases of June 21, 2005, and June 28, 2005.

The full Geological Report of D.G. MacIntyre, Ph.D.P.Eng., dated December 30, 2004, and revised on May 10, 2005, are available on SEDAR. The Corporation is retracting it use of the term "ore zones" that was used in the May 28, 2005, Information Circular, available on SEDAR.

The following information is excerpts from Dr. MacIntyre's report with regard to the Red Bird Property.

Location of the Red Bird Property

The Red Bird Property is located in the central coastal region of British Columbia, 100 kilometres north of the town of Bellaa Coola and 140 kilometres southwest of Houston, British Columbia.

Figure 1. Location of the Red Bird Property.
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Property Description and Location

The Red Bird molybdenum property consists of four four-post, contiguous mineral claims situated in the Skeena Mining Division of west central British Columbia 133 kilometres southwest of Burns Lake and 105 kilometres north of Bella Coola (Figure 1). The property consist of 2 claims that collectively cover an area of 1217 hectares between latitudes 53 degrees16'39" to 53 degrees18'16" North and longitudes 126 degrees59'10" to 127 degrees3'39" West (Univeral Transverse Mercator NAD83 coordinates 5905047 to 5908034 North and 629255 to 634234 East) in NTS map-area 93E/6. The configuration of the mineral claims is illustrated on Figure 2 and details are as follows:

As shown on Figure 2, parts of the Red Bird mineral claims are truncated by the boundary of Tweedsmuir Park. This park is a designated protected area that excludes all industrial activities including mineral exploration and development. In the Haven Lake area, the park boundary corresponds to the drainage divide between the coast and interior watersheds. This drainage divide is also the boundary between the Omenica and Skeena Mining Divisions.

All historic resource estimates of molybdenum bearing mineral zones made by Craigmont Mines Limited in 1980 and 1981 are located on mineral tenure 510491 (Figure 2) and, with the exception of the easternmost tip of the main (northern) zone, are not located in Tweedsmuir Park.



Table 1. List of mineral tenures and expiry dates, Red Bird Property.

------------------------------------------------------------------------
Tenure No. Hectares Mining Division Issue Date Good to Date
------------------------------------------------------------------------
501914 405.97 Skeena January 12, 2005 July 7, 2006
510491 811.72 Skeena April 9, 2005 July 7, 2006
------------------------------------------------------------------------


A check of the Mineral Titles On-Line database indicates that the Red Bird Property is covered by claims owned by W.E. Pfaffenberger, director of Fundamental Resources Corp. (Free Miners Certificate No. 143363). The original Red Bird legacy claims have now been converted to cell claims using the Ministry of Energy and Mines Mineral Titles On-Line system. This method of electronic staking was initiated on January 12, 2005. Under this system of tenure acquisition claim boundaries are determined by degrees of latitude and longitude on a predetermined grid; legal surveying is no longer required to establish title.

The writer is not aware of any environmental liabilities present on the property. Most of the old access roads and trenches have stabilized and are extensively overgrown. There are no underground workings on the property, no significant waste dumps that might be acid generating and no areas of contaminated water that might pose an environmental hazard.

Accessibility, Climate, Local Resources, Infrastructure and Physiographic

The Red Bird claims are located north and south of Haven (Bone) Lake and southwest of Red Bird Mountain (Figure 2). Haven Lake is 5 kilometers southeast of Eutsuk Lake. Access to the property is via float plane in June-October and by helicopter in winter. Float plane access is available from Nimpo Lake and Bella Coola located south of the property and from Burns Lake or Houston northeast and north of the property.

In 1966, Phelps Dodge built a 17.7 kilometer access road which connects to Eutsuk Lake via the Bone Creek valley. This road is badly overgrown and is within Tweedsmuir Provincial Park, as is most of Eutsuk Lake. At the same time, an airstrip was built near Eutsuk Lake and a barge was used to haul equipment and supplies from a logging road that connects to Vanderhoof on Highway 16 or Quesnel on Highway 97. Both of these communities are on major rail lines. If the Red Bird Property should advance to the mining stage, this access route would probably be the most economic. This assumes that the provincial government would allow road construction through Tweedsmuir Park. However, there is a risk that the provincial government would not grant permission to the Corporation to develop this route as it is designated a protected area that excludes all industrial activities including mineral exploration and development. An alternative access route would be to build a new road from the property westward down Salahagen Creek to connect to a network of logging roads in the Kimsquit River valley, a distance of less than 20 kilometers. These logging roads connect to tidewater at the head of the Dean Channel where a shipping facility could be built. This alternate access route does not involve crossing parks or designated environment conservancy areas but would involve road construction and maintenance through mountainous terrain.

Figure 2. Claim location map, Red Bird Property.
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If the Red Bird Property should ever advance to the mine development and production stage, the nearest source of hydroelectric power generation would be at Alcan's Kemano power station which is located 68 kilometers northwest of the property (Figure 1).

Figure 3. Drill hole plan and proposed open pits, Red Bird Property.
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The Red Bird Property has cool to cold, moderately wet winters and warm relatively dry summers. Total yearly precipitation on the property is estimated at between 89-114 centimeters (35-45 inches). At higher elevations of 1,300 to 1,700 meters above sea level, work could be carried out between June and October, whereas heavy snowfall and cold weather would hamper activity in the winter months.

The Red Bird Property is located near the eastern edge of the Coast Mountains where the topography is characterized by steep mountain peaks bounding narrow, glacier carved valleys. Radial drainage patterns are common and the primary vegetation is a mixture of fir, hemlock, cedar and spruce. Further eastward the physiographic changes to the rolling hills and broad valleys typical of the Interior Plateau. The climate here is more arid and the vegetation is predominantly pine, much of which has been killed by an uncontrolled infestation of the mountain pine beetle.

Figure 4. Regional geologic setting of the Red Bird Property.
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The Red Bird Property was apparently the subject of a compensation package offered to Phelps Dodge Corporation by the Province of British Columbia. The writer has no information regarding the details or reasons for this compensation.

Table 3. Resource size and grade appraisal of the Red Bird deposit (Farnsworth, 1981). Please note that the resources estimates are historic estimates and are not NI 43-101 complaint as the numbers have not been verified and therefore should not be relied upon.



Resource size and grade 81.5 million tonnes, average grade
0.118% MoS2, 0.05% MoS2 cutoff grade


Geological Setting

The regional geologic setting of the Red Bird Property, taken from the most recent British Columbia Geological Survey compilation (Massey et. al., 2003), is shown on Figure 4. The principal geologic units shown on this map are summarized in Table 4. As discussed previously, the Red Bird deposit is associated with an Eocene quartz monzonite porphyry stock that intrudes predominantly pyroclastic volcanic rocks. These rocks have been mapped as part of the Upper Cretaceous Kasalka Group. A major east to southeast trending fault along Bone and Salahagen creeks juxtaposes Kasalka Group rocks against older Lower Jurassic volcanic rocks of the Telkwa Formation. Uplifted fault blocks north of the property apparently contain Middle Jurassic Smithers Formation and Lower Cretaceous Skeena Group volcanic rocks. These fault blocks are in contact with an east trending quartz monzonite stock that is correlated with the Late Cretaceous Bulkley Plutonic Suite. Although the writer did not do any mapping in the vicinity of the deposit, examination of drill core suggests that the quartz monzonite porphyry is intruding Telkwa Formation tuffs and not the younger Kasalka Group. The latter is characterized by hornblende-feldspar phyric andesite flows and lahars and these lithologies were not observed in the drill core examined by the writer. On the other hand, lapilli and lithic tuffs in the drill core are typical of lithologies that characterize the Telkwa Formation.



Table 4. Table of Formations

------------------------------------------------------------------------
Unit ID Age Unit Name Description
------------------------------------------------------------------------
ENqm EOCENE NANIKA PLUTONIC quartz monzonite porphyry
SUITE
------------------------------------------------------------------------
LKB LATE BULKLEY PLUTONIC quartz monzonite, equigranular
CRETACEOUS SUITE biotite-hornblende quartz diorite
------------------------------------------------------------------------
KK UPPER KASALKA GROUP hornblende-feldspar porphyritic
CRETACEOUS andesite flows and related
pyroclastics, lahars, debris
flows, breccias and epiclastic
beds
------------------------------------------------------------------------
lKSN LOWER SKEENA GROUP - basalt to andesite flows; lesser
CRETACEOUS MT. NEY dacite flows, bladed-feldspar
VOLCANICS porphyry, tuff, breccia and
conglomerate
------------------------------------------------------------------------
mJHSvc MIDDLE HAZELTON GROUP - lapilli tuff, accretionary tuff
JURASSIC SMITHERS
FORMATION
------------------------------------------------------------------------
lJHT LOWER HAZELTON GROUP - maroon, green and purple
JURASSIC TELKWA FORMATION subaerial andesitic to dacitic
feldspar phyric flows,
pyroclastic and epiclastic rocks,
augite phyric to aphyric basalt,
breccia, welded tuff
------------------------------------------------------------------------


The quartz monzonite porphyry that hosts the Red Bird Deposit is an elliptical intrusion roughly 1300 meters long and up to 900 meters wide (Figure 4). Drill intersections indicate that the northern contact of the stock dips steeply inward at an angle between 60 and 70 degrees. The contact with the surrounding volcanic rocks is generally sharp but alternating intervals of tuff and porphyry in the drill core suggest numerous offshoots of the main body extend into the surrounding rocks. Volcanic rocks in contact with the stock have been metamorphosed to biotite hornfels.

Biotite from the main quartz monzonite porphyry stock has given K-Ar isotopic ages of 49.0+/-4.0 Ma and 50.0+/-4.0 Ma (Carter, 1981). These ages have been revised to 49.7+/4.0 Ma and 50.7+/-4.0 Ma using the current IUGS decay constants for K-Ar isotopic dating (Breitsprecher and Mortensen, 2004). Based on age and lithology this stock is correlated with the Eocene Nanika Plutonic Suite. The semi-circular intrusion just north of the property is also mapped as part of the Nanika Plutonic Suite. Several younger dykes cut the main quartz monzonite porphyry stock. These were recorded as felsite, rhyolite, feldspar porphyry, and andesite in the Craigmont drill logs. Only the andesite is clearly post-mineral.

Deposit Types

The Red Bird deposit is classified as a low F type porphyry molybdenum deposit (L05) by the British Columbia Geological Survey Branch (Sinclair, 1995). The definitive geological characteristic of this deposit type is the occurrence of molybdenite bearing quartz veinlet stockworks and fractures in high level, K-feldspar-biotite or quartz-sericite+/-kaolinite altered, intermediate to felsic intrusive rocks and associated country rocks. Intrusions are often multi-phase calcalkaline bodies that range from quartz monzonite to granite in composition. The Eocene Nanika Plutonic Suite is predominantly quartz monzonite in composition and the source magmas are interpreted to be calc-alkaline in composition. The generally accepted genetic model for this deposit type is one in which large volumes of high pressure, highly saline magmatic fluids transport Mo and other metals from a crystallizing and differentiating magma into zones of intense fracturing and brecciation in the outer carapace of the source intrusion and, to a lesser extent, into surrounding country rock. Some examples of this deposit model and their grades and tonnages are listed in Table 5.



Table 5. Some examples of Porphyry Mo (Low F Type) deposits

------------------------------------------------------------------------
Size
Deposit Location (million tonnes) Grade %Mo
------------------------------------------------------------------------
Adanac B.C. 94 0.094
Kitsault B.C. 108 0.115
Glacier Gulch B.C. 125 0.151
Endako B.C. 336 0.087
Red Mountain Yukon 187 0.100
Thompson Creek Idaho 181 0.110
Quartz Hill Alaska 793 0.091
Compaccha Peru 100 0.072
------------------------------------------------------------------------

Source: Sinclair, 1995.


Exploration

As discussed in a previous section, the Red Bird Property was extensively explored by diamond drilling between 1963 and 1968 and again between 1979 and 1980. No significant exploration has occurred on the property since 1980. This report does not present any new exploration data.

Drilling

As described in a previous section, Phelps Dodge Corporation and Ashfork Mines Limited, a subsidiary of Phelps Dodge completed 75 drill holes on the Red Bird Property totaling 17,637 meters between 1963 and 1968. These core boxes are currently stacked at the eastern edge of an overgrown clearing approximately 150 meters northeast of the old camp site. Core boxes have lids and are bound with wire. Each box has an embossed aluminum tag identifying the hole and core interval contained in the box. The writer did not examine the Phelps Dodge/Ashfork core and there are no drill logs or analytical reports available for this drilling.

Figure 6. Drill hole section 10200 E, Main Zone. See Figure 5 for section location.
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Craigmont Mines Limited drilled an additional 13,941.40 meters in 58 holes between 1979 and 1980. This core is currently stored in a core rack next to the Phelps Dodge/Ashfork core described above. Although the core rack is tilted and many of the core boxes are wedged in and cannot be extracted without repairing the core rack, most boxes have metal tags that identify the drill hole and sample interval. Hand written drill hole logs describing the rock type, mineralization, sample numbers, sample interval and percent MoS2 and Cu are available for all of the drill holes completed by Craigmont.

Figure 5 shows the location of drill holes and results of the Craigmont drilling. Figures 6, 7 and 8 are drill sections through the Main, Southwest and Southeast zones respectively. The location of these sections is shown on Figure 5. The writer generated Figures 5-8 by converting handwritten drill hole logs to digital format, plotting the drill holes as 3D lines in AutoCad using a plotting script program and importing the line and attribute data for each drill hole into Manifold GIS 6.0 for presentation. Significant drill hole intersections are summarized in Appendix A.

There has been no additional exploration drilling on the Red Bird Property since 1980.

Figure 7. Drill hole section 9800N, SW zone. See Figure 5 for section location.
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Sampling Method and Approach

There is little information available concerning the sampling method and approach employed by Phelps Dodge and Ashfork Mines Limited during the first phase of drilling on the Red Bird Property. Drill hole logs for the Craigmont drilling indicate that the core was sampled at 5 meter intervals although not all core was split and sampled. The 1979 drill holes were drilled at an angle to the north to intersect the Main zone at various depths. The 1980 drill holes were drilled at an angle to the west to intersect the Southwest and Southeast zones.

As an independent check on the grades reported in the Craigmont drill logs, the writer collected several core samples during a visit to the property on July 7 and 8, 2004. A total of 11 samples were submitted to Eco-Tech Laboratory Limited, Kamloops, B.C., a certified analytical facility, for 28 element ICP analysis. Five grab samples of core from drill holes 79-84, 79-89 and 79-90 plus random chip samples from six 5 meter intervals in drill hole 79-93 were analyzed.

Figure 8. Drill hole section 9700N, SE zone. See Figure 5 for section location.
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Sample Preparation, Analyses and Security

No original analytical certificates are currently available for either the Phelps Dodge/Ashfork or Craigmont Mines Limited drilling and the identity of the analytical laboratories that did the analyses is unknown. Presumably the analytical work was done by a reputable laboratory following best practices applicable at the time. Re-sampling of the Craigmont drill core by Kikauka (2004) and check samples collected by the writer were analyzed by reputable analytical laboratories and confirm the values recorded in the Craigmont drill hole logs. Check samples collected by the writer were placed in labeled plastic bags and shipped to the Eco-Tech Laboratory via Greyhound Courier Express. No duplicate check samples were submitted due to the small size of the sample shipment. Analytical techniques and quality control procedures used by Eco-Tech are summarized in Appendix C. The writer was the only person who handled the samples that were collected and shipped to the Eco-Tech Laboratory.

Table 6. Summary of analytical results for drill core samples collected from the Red Bird Property. The original Certificate of Analysis is presented in Appendix D.



------------------------------------------------------------------------
Craigmont
Sample Unit Ag As Cu Mo Pb Zn Results
------------------------------------------------------------------------
79-90 52.2 m QMP less less 55 17 6 20 not sampled
than than by Craigmont
0.2 5
------------------------------------------------------------------------
79-89 58.0 m QMP 2.7 35 264 2498 less 54 not sampled
than by Craigmont
2
------------------------------------------------------------------------
79-84 122.2 m QMP 0.4 less 239 3402 2 9 0.33 MoS2
than
5
------------------------------------------------------------------------
79-84 131.5 m QMP less less 60 3292 4 20 0.23 MoS2
than than
0.2 5
------------------------------------------------------------------------
79-84 174.0 m TUFF 5.1 less 5057 67 less 133 0.04 MoS2
than than
5 2
------------------------------------------------------------------------
79-93 290-295 QMP 0.7 less 484 474 4 43 0.08 MoS2
than
5
------------------------------------------------------------------------
79-93 295-300 QMP 0.2 less 330 868 2 10 0.08 MoS2
than
5
------------------------------------------------------------------------
79-93 300-305 QMP 0.4 5 333 833 6 15 0.14 MoS2
------------------------------------------------------------------------
79-93 305-310 QMP 0.4 less 432 932 2 10 0.08 MoS2
than
5
------------------------------------------------------------------------
79-93 310-315 QMP/TUFF 5.5 20 937 519 8 61 0.11 MoS2
------------------------------------------------------------------------
79-93 315-320 TUFF 10.9 40 2920 186 88 190 0.03 MoS2
------------------------------------------------------------------------

All values in parts per million; QMP=quartz monzonite porphyry;
TUFF=biotite hornfelsed tuff


Data Verification

As previously mentioned, the original analytical certificates for the drilling done by Phelps Dodge/Ashfork and Craigmont Mines Limited were not available to the writer. In order to verify the grades recorded in the Craigmont drill logs, the writer collected 11 samples of core during a visit to the property July 7 and 8, 2004. The ICP certificate of analysis for these samples is included in Appendix D. Table 6 summarizes the results for Ag, As, Cu, Mo, Pb and Zn plus the corresponding Craigmont MoS2 values for the interval sampled. The analytical results confirm the presence of moderate to high grade Mo in the drill core. Samples of hornfelsed tuff also contained significant Cu (5057 ppm) and elevated Zn (190 ppm) and Ag (10.9 ppm) values.



Table 8. Proposed work program and budget, Red Bird Property.

------------------------------------------------------------------------
PHASE 1 -21 day preliminary program
------------------------------------------------------------------------

FIELD CREW
1 Consulting Geologist $ 10,500.00
1 Geo Tech $ 5,250.00

------------------------------------------------------------------------
Total Field Crew $ 15,750.00

FIELD COSTS
Camp - supply $ 30,000.00
assays (1,000 x 16) $ 16,000.00
Helicopter/fixed wing - mob/demob $ 12,000.00
Air recon Helicopter $750/hr x 10 $ 7,500.00
Access road recon - air fares $1,250.00 x 4 $ 5,000.00
Site inspection air fares - $1,250 x2 $ 2,500.00
Hotels and accommodation 7 x $200 x 6 days $ 8,400.00
Communication - satellite phone $ 3,500.00
Truck rental $ 3,000.00
Equipment rental $ 5,000.00
Drill log drafting/digitizing $ 5,000.00
------------------------------------------------------------------------
Total Field Costs $ 97,900.00

REPORT $ 6,500.00
$ 6,500.00

CONTINGENCY $ 10,000.00
$ 10,000.00

------------------------------------------------------------------------
FIELD PROGRAM TOTALS $130,150.00

MANAGEMENT FEE @ 15% $ 19,522.50

------------------------------------------------------------------------
TOTAL BUDGET $149,672.50
------------------------------------------------------------------------
------------------------------------------------------------------------


References

Breitsprecher, K and Mortensen, J.K., B.C. BCAge-2004A: A database of isotopic age determinations for rock units in B.C., Ministry of Energy and Mines Open file 2004-3.

Carter, N.C., 1981, Porphyry Copper and Molybdenum Deposits, West Central B.C., B.C. Ministry of Energy, Mines and Petroleum Resources, Bulletin 64, pp 132-133.

Clark, K.J., 1972, Stockwork Molybdenum Deposits in the Western Cordillera of North America, Econ. Geol. Volume 67, pp. 731-758.

Craigmont Mines Ltd., 1980, Annual Report, Grade and Tonnage Estimates for Red Bird Porphyry Molybdenum Deposit.

Farnsworth, D.J.M. 1981, Preliminary Economic Appraisal 93E/6 Redbird Molybdenum Deposit, Haven Lake, B.C., for Craigmont Mines Limited, Craigmont Mines Limited unpublished report.

Kikauka, A. A., 2004, Geological, Geochemical and Petrographic Report on the Red Bird Claim, Red Bird Porphyry Molybdenum Deposit formerly known as CAFB, Old Glory, Haven Lake, B.C., Fundamental Resource Corporation, unpublished company report.

King, J.A., 1980. Redbird Property, Report No. 1, Preliminary Flotation Testwork, Placer Development Limited, Metallurgical Research Centre.

Massey, N.W.D., MacIntyre, D.G. and Desjardins, P.J., 2003: Digital Geology Map of British Columbia: Tile NN9 North Coast, B.C. Ministry of Energy and Mines, Geofile 2003-13, scale 1:250,000.

Murphy, J.D. and Vollo, N.B. 1979, Craigmont Mines Limited 93E/6 Redbird Molybdenum Diamond Drill Logs 79-73 to 79-107.

Murphy, J.D. and Vollo, N.B. 1980, Craigmont Mines Limited 93E/6 Redbird Molybdenum Diamond Drill Logs 80-108 to 80-131.

Sinclair, W.D., 1995, Porphyry Mo (Low-F-Type) in Selected British Columbia Mineral Deposit Profiles, Volume 1 - Metallics and Coal, Lefebure, D.V. and Ray, G.E., Editors, British Columbia Ministry of Employment and Investment, Open File 1995-20, pp. 93-96.

Sutherland-Brown, A., 1972, Red Bird Prospect, 24th Intl. Geol. Congress Guidebook, Field excursions, pp. 24-26.

Disclaimer

This report is based on a review and digital compilation of available historical data, including detailed diamond drill hole logs for 57 holes completed by Craigmont Mines Ltd. in 1979 and 1980. Drill hole logs for the 75 drill holes done prior to 1979 by Phelps Dodge Corporation and Ashfork Mines Limited (a subsidiary of Phelps Dodge) were not available at the time this report was written. However, the results of this drilling were incorporated into the historical resource calculations and economic potential assessments done by Craigmont in 1980 and 1981. The author also had access to detailed drill hole sections which showed both Craigmont and earlier drill hole results. Although the author is confident that this data was collected and processed in a professional manner following industry best practices applicable at the time, without access to the complete set of drill hole logs and assay results from the earlier drilling program it is not possible to fully appraise the resource estimates done by Craigmont Mines Ltd. The earlier drill hole data will be required if a new resource calculation is to be done for the Red Bird Property.

Grade and tonnage figures quoted for the Red Bird are referenced from previous work (Craigmont Mines Ltd Annual Report, 1980). These dated grade and tonnage estimates may not be in accordance with current National Instrument 43-101 regulations. However, the Red Bird grade and tonnage figures released by Craigmont Mines in 1980 were in accordance with relevant CIM definitions for their date. Additional in-fill drilling may be required to meet current CIM resource definition requirements.

Although the author has made every reasonable effort to ensure the accuracy and completeness of this technical report, there may be additional information that was not available or not disclosed to the author at the time of writing. The author disclaims any responsibility for any errors or omissions that are a result of missing or incomplete information.

The above exploration information has been reviewed by Andris Kikauka, P. Geo.

Torch is a company listed and trading on the TSX Venture Exchange, symbol: TCR.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release

Contact Information

  • Torch River Resources Ltd.
    Mr. Ronald M. Burko
    President
    (306) 978-4444
    Website: www.torchriver.ca