Report to Shareholders January, 2004
Louis Doyle, President and CEO, is pleased to provide Barker Minerals shareholders with a Company overview, and a summary of the Company's activities and its plans going forward.
Over the past ten years Barker Minerals Ltd. has been able to acquire and hold a huge land position along one of the most mineralized belts in BC. Not only has the Company's previous exploration efforts now defined numerous drill-ready gold targets and precious metal bearing, massive sulphide targets on its own property, but a major mineral discovery has recently been announced by Imperial Metals near Barker's property.
Overview
The properties are located along the southern extension of the historic Cariboo Gold District, (gold fields map) which has yielded 3.7 million ounces of gold to date. The Company is currently engaged in the identification, exploration and development, if warranted, of mineral resources. The properties the Company holds 100% interest in are located in the Cariboo Mining District of east central British Columbia and are comprised of approximately 267,000 acres. (location map) The principal natural resources being targeted are gold, silver, platinum, palladium, copper, lead and zinc.
The deposit types the Company is exploring for are:
Besshi Type Massive Sulphides (link to deposit description) and
Sediment Hosted Massive Sulphides - SEDEX (link to deposit description) and
Zinc/Lead Replacement (link to deposit description) and
Vein Gold and Replacement Gold (link to deposit description) and
Intrusion Related Gold (link to deposit description) and
Gold Skarn (link to deposit description) and
Copper/Gold (link to deposit description) and
Magmatic Platinum Group Deposits (link to deposit description)
The Company's current focus is on gold targets and precious metal rich massive sulphide targets on the Ace, and massive sulphide targets on the Frank Creek, Rollie and SCR project areas.
"Exploration work has revealed significant potential for the discovery of economic precious metal rich massive sulphide (MS) deposits. Exploration work has also identified potential for Platinum Group Elements (PGE), Gold (Au) and Silver (Ag) deposits". With 17 projects in total, Barker demonstrates potential for the discovery of a variety of minerals and metals. These diverse holdings enable the company to shift its exploration focus as the investment climate and metals market dictates. The next phase of drilling will focus on significant gold targets and precious metal rich massive sulphide deposits. Also of note is the fact that massive sulphide deposits come in clusters and once one deposit is discovered, further discoveries would be anticipated to follow.
Barker is also in the process of evaluating the high grade Blackbear Silver/Gold Project and the Kangaroo Gold Project, in anticipation of advancing these projects to the next stage of exploration. Reports on these projects are expected from company geologists, which will dictate the exploration programs to be undertaken in the next phase. As market conditions continue to improve Barker intends on advancing exploration on other projects with potential for gold, silver and the platinum group elements as well.
In past resource bull markets, the most significant gains have been made by companies who have made significant discoveries for their shareholders through diamond drilling at the exploration drill stage. Barker's projects are at various stages of the exploration process with five projects, with multiple targets at the exploration drill stage where a potential discovery could occur. (stages of the exploration process chart) The multiple projects give our shareholders many opportunities to participate in one or more possible discoveries. With Barker's large inventory of drill targets ready for testing we are hopeful to reward our shareholders with a significant discovery over the next phases of drilling as financing conditions continue to improve.
2003 Summary
The past year focused on continuing to build the Company in preparation for the resource sector turnaround, which has now arrived. The growth of Barker continued in 2003 with activities such as:
successfully completing financings as required amidst the ending of the worst conditions in the mining sector in 30 years
new property acquisitions
continuing to develop prime drill targets on a number of gold and massive sulphide potential projects
further development of our exploration team
creating awareness of the Company by; attending mining conferences across the country, making presentations to analysts and newsletter writers, and keeping major companies and government officials up to date with our progress.
Financing Plans
Over the past year the company raised funds on an as needed basis in order to operate the company and to continue work commitments in advancing our projects through the exploration process. The company could have completed significant financings at lower share prices, but with no shares previously sold under $0.25 the company instead chose to wait for better market conditions.
Market conditions have now improved such that Barker recently completed a private placement for $750,000 which provides the company with funds to carry on with the next phase of exploration on the Ace (gold and massive sulphide targets), Frank (gold and massive sulphide targets) and SCR (massive sulphide targets) which will include diamond drill programs on previously defined targets.
$5.8 million has been recommended for a Phase 1 and Phase 2 exploration program on five of our project areas. We will continue to raise funds as required to complete the recommended phases with more funds being raised for increasingly larger programs as the anticipated resource markets and share price improve, which minimizes dilution during financing activities.
Experienced Professionals Added to Technical Team
Exploration Manager Hired
In July Barker announced the appointment of Mr. Sean D. McKinley, M.Sc.,P.Geo. as Exploration Manager. Mr. McKinley is responsible for overseeing and managing the exploration of Barker's large properties with focus on the Ace Massive Sulphide/Gold Project and the Frank Creek and SCR Massive Sulphide Projects.
Mr. McKinley' an exploration geologist with experience in both minesite and regional exploration, has significant experience managing large drill programs. He has a strong field and research background with expertise in the areas of volcanic stratigraphy and lithogeochemistry. In addition to gold exploration work in the Eskay Creek area, Mr. McKinley was responsible for managing significant massive sulphide exploration and drill programs for Boliden Westmin Ltd. at properties in Ireland, Sweden, and the Myra Falls polymetallic massive sulphide mine in B.C.
Mr. McKinley received his BSc. in geology (honours) from Queens University in Kingston Ontario in 1992, his M.Sc. in geology from UBC in Vancouver B.C. in 1996 and is a member of the Association of Professional Engineers and Geoscientists of British Columbia.
Database Manager Joins Barker
In late summer Wayne Jackaman joined the Company's exploration team as a consultant. Mr. Jackaman will manage and maintain the large digital database of technical information gathered from the Company's previous exploration programs on it's Gold and Massive Sulphide projects in the Cariboo Mining District of B.C.
Mr. Jackaman has been involved in mineral exploration for over 15 years. His background includes project management, field surveying, data compilation and analysis plus QA/QC monitoring and assessment of large-scale regional geochemical programs. As project leader of the B.C. Regional Geochemical Survey Program, he successfully completed over 30 drainage sediment and water surveys and has published more than 65 technical reports and papers.
Mr. Jackaman currently works as a consultant to the Geological Survey of Canada, the B.C. Geological Survey Branch and several private and public companies.
Experienced and Respected Consultant Added to Technical Team
Barker announced in August that Trygve Höy B.Sc., M.Sc., Ph.D., P. Eng. had been contracted to act as a consultant on the Company's Gold and Massive Sulphide projects in the Cariboo Mining District of B.C.
Dr. Höy received his: B.Sc. from the University of British Columbia in 1968; his M.Sc. from Carleton University in Ottawa Ontario in 1970; and his Ph.D. from Queens University in Kingston Ontario in 1974. He became a member of the Professional Engineers of British Columbia in 1976 and in 2002 he received the prestigious Provincial medalist's award which is a national geological award recommended by his peers.
Dr. Höy began his career as a prospector for Falconbridge and worked as an exploration geologist for Amax Exploration. Thereafter he embarked on a 28 year distinguished career as a project geologist for the B.C. Ministry of Energy and Mines before recently returning to the mining industry as a consulting geologist.
Dr. Höy has completed geological mapping and interpretation over a large portion of the Kootenay area in southern B.C. He completed metallogeny and mineral deposit studies on various deposit types including a detailed study of Intrusion Related Gold in the Rossland camp in southern B.C. He was also involved in the development of a model for Sedex (sediment hosted massive sulphide) deposits on tectonic and stratigraphic controls. His model development work included the historic world class Sullivan massive sulphide deposit in southern B.C. He has also led many university/industry field trips and projects and has published numerous geological papers and produced approximately 10 regional geological maps.
Dr. Höy's vast experience in southern B.C. will add tremendous knowledge and depth to our exploration team as the Company continues to systematically and methodically explore the economic base and precious metal potential of its large mineral properties in the Cariboo region of B.C.
The above professionals are welcome additions to our exploration team which also includes Ore Systems Consultants and Strathcona Minerals Services which act as independent consultants on an as needed basis.
Exploration
A brief summary is provided below on a few of our more advanced projects, detailed summaries of the various projects can be reviewed in the (Perry, 2002) report on the Company's website, barkerminerals.com or, on the SEDAR website.
Ace Project (Ace location map)
A massive sulphide (MS) and gold vein environment has been identified through previous programs of prospecting, geochemistry, geology, geophysics and diamond drilling. Concentrations of metals from grab samples in MS boulders found are up to 16.5% combined zinc/lead (Zn/Pb) with minor amounts of copper (Cu), gold (Au) and silver (Ag). Boulders of gold, bismuth, tellurium and tungsten (Au/Bi/Te/W) quartz vein material have gold values up to 29 grams per tonne (g/t). (Ace magnetics and boulder values)
Initial drilling is targeting an area of the grid L5N and 6W, which has a geochemical anomaly of Cu, Pb and Zn in soils, and coincident geophysical anomalies consisting of Magnetics, HLEM (maxmin), I.P. (induced polarity), and Gravity. This is in an area that is interpreted to be part of the footwall zone to a VMS deposit.
The second target being tested is in the grid area of L16S and 6E, which is up-ice from the potential ore grade massive sulphide boulders found through prospecting in earlier programs. This zone also has numerous Au/Bi/Te/W boulders strewn about in the local till. The target has coincident Magnetic, HLEM, I.P., VLF, and Gravity anomalies associated with it.
The encouraging results to date have defined the favorable altered horizon over a considerable ten-kilometre strike length. The fine-grained nature of the rock, its intimate relationship to a series of thin marble bands, and almost regional extent suggest that it may be an exhalative horizon and an excellent target horizon for massive sulphide deposits. The geochemistry of this section of variably calcareous rocks and the presence of strongly disseminated to semi-massive sulphides in the drill core also indicate a very favorable massive sulphide environment. Target metals include Cu, Pb, Zn, Ag and Au.
Frank Creek Project (Frank Creek location map)
The Frank Creek project area has had a number of previous programs consisting of prospecting, geology, geochemistry, and airborne and ground geophysics that outlined numerous target areas with massive sulphide potential. (Frank Creek compilation map)
The Company reported the discovery of base and precious metals mineralization in four diamond drill holes on its Frank Creek Project. One hole at the F-1 bedrock VMS occurrence intercepted significant mineralization, as did three other holes within 200, 260, and 375 metres (m) respectively, of the F-1 bedrock VMS occurrence.
The Frank Creek drill core contains intervals of Cu, Zn, Pb (+/- Au, Ag) massive sulphide mineralization that are significant examples of ore formation processes having occurred on the property. (drill photo)
The mineralizations encountered in the core are similar to that exposed at the discovery outcrop where a massive sulphide layer is exposed for some 3.5 m length and 1.5 m true width. The concentrations of metals from grab samples of the outcrop massive sulphides ranged up to 4.4 % Cu, 8.2 % Zn, 1.1 % Pb, 14.8 oz/t Ag and 854 ppb Au. A chip bedrock sample across 0.77 m exposed width assayed 2.1 % Cu, 0.34% Zn, 0.11% Pb and 69 ppm Ag.
This polymetallic massive sulphide mineralization also occurs in drill core in significant intervals (up to 0.4 m) and contains significant concentrations (up to 3.4 % Zn, 2.1 % Cu, 2.8 oz/t Ag, 0.53 % Pb and 746 ppb Au) within larger weakly mineralized units up to 52 m wide in drill core intercepts that contain widespread disseminations of these metals.
F-1 Target
This target has a strong Cu/Pb/Zn anomaly (Frank Creek soils) coincident with airborne and ground HLEM anomalies and has massive sulphides with economic potential identified in bedrock. (F-1 discovery trench and F-1 trench massive sulphides) This target exposes an important massive sulphide occurrence, believed to be the first VMS bedrock discovery with economic potential ever identified in the Barkerville Terrane. Mineral concentrations from this area have Cu up to 4.4 %, Zn up to 8.8 %, Pb up to 3.4 %, and Ag up to 14.4 oz/t. The copper-zinc mineralization and metasedimentary to volcaniclastic nature of the host rock suggests that this is a Besshi-type deposit. The setting, mineralization, and host rocks are all remarkably similar to the Goldstream deposit located 80 km north of Revelstoke, B.C. The Goldstream Mine operated from 1983-84 and again from 1991-96, producing over 2 million tonnes of ore at a grade of over 4 % Cu and 2.2 % Zn.
The known strike length of the mineralized zone is 425 m and is open in both directions to the north and south.
F-4 Target
This target, also known as the Big Gulp, occurrence has been interpreted to be a possible stringer zone to a MS deposit and has been defined through geology, geophysics and prospecting. Grab samples from bedrock by a major company returned values up to 8% Zn with minor Cu. Stream sediment analysis also supports the potential for VMS mineralization nearby with similar mineralogical patterns as known massive sulphide occurrences within the project area. Geology, geophysics, trenching and diamond drilling will further evaluate this target.
F-7 Target
Prospecting in early 2001 identified a zone of massive sulphide and stringer type float boulders with grades up to 10% combined Cu/Pb/Zn strewn over an area of 250 m, which is near an airborne EM anomaly. A set of 3 test lines surveyed by HLEM identified a conductor slightly up-ice from the boulders. Trenching failed to reach bedrock but the sub crop material exposed near the bottom of the trench was similar to the host rocks as in the F-1 massive sulphide occurrence 1.5 km to the east. This target will be further evaluated by geophysics and diamond drilling in the upcoming programs.
F-2, F-3, F-5, F-6 Targets
These geophysical targets will be advanced through the stages of the exploration process by prospecting, geological mapping, geophysical surveying, trenching and geochemical programs, which it is anticipated, will advance these targets to the drill stage.
SCR Project (SCR location map)
The SCR project is a significant VMS/Sedex prospect with the discovery of semi-massive to massive sulphide and stringer sulphide mineralization in float and in bedrock of altered intermediate to mafic volcanic rocks of the Sellers Creek Road area. Sulphide minerals include pyrite, pyrrotite, chalcopyrite, sphalerite and galena.
Geophysical surveys have successfully outlined significant, coincident magnetic and conductive anomalies (HLEM) near the discovery area and near the area of Cu, Pb and Zn soil anomalies. Boulders discovered by prospecting have concentrations as high as .5% Cu, 7% Pb, 16% Zn with anomalous Au and Ag associated with the mineralization. (SCR soils and SCR magnetics).
Recent 2003 exploration activity has focussed on trenching of four target areas comprised of 200 metres in length. The targets chosen have coincident geochemical and geophysical anomalies in areas of favorable geology. These trenches were excavated to approximately a five-metre depth.
Mineralized and/or variably oxidized boulders were found distributed sporadically in the till in the trenches. The sulphide mineralization consists of pyrite, pyrrhotite, chalcopyrite, sphalerite and galena. As bedrock was not reached in all trenches, the till was sampled to determine the geochemical patterns present in the SCR project and to help determine the proximity to the source of mineralization. The till sampling resulted in identifying samples with values up to 479ppm copper, 335ppm lead, 767ppm zinc, 182ppb gold and 2300ppb silver. These results, along with trace element associations and the local geology, are consistent with a polymetallic sediment hosted massive sulphide (Sedex) environment. Similar geochemical patterns were discovered in the till in all trenches indicating the source of the anomalies may be caused by similar mineralization-forming processes.
Future exploration work is to include additional trenching using a larger backhoe as well as modern geochemical techniques to help locate buried mineralized targets and an initial exploration diamond-drilling program to acquire more geological information for future programs and to initially test the coincident geophysical and geochemical anomalies. Airborne geophysical surveys of the SCR project may also be undertaken, depending on activities on other properties of the Company.
The high-grade mineralization identified in float on surface, along with coincident Cu/Pb/Zn/Ag/Au soil and till anomalies and large, strong geophysical anomalies makes this project a high potential target.
Rollie Project Summary
The project's eastern boundary adjoins the Company's Frank Creek and SCR massive sulphide project areas.
The project area hosts a mineralized occurrence that has been recently identified by B.C. government geologists as a Besshi-type massive sulphide occurrence.
During 2003, geological mapping was completed along a 150 metre-long section of roadside outcrops in the immediate vicinity of the mineralized zone, and mapping was also carried out over a wider, two kilometre long area to the southwest and northeast of the showing. Eighteen rock samples were taken for lithogeochemical analysis and assays as well as for petrographic study. This work has defined a target for diamond drilling in the next phase of exploration.
The showing consists of a 10 to 15 metre long by 1.5 metre wide zone of gossanous sedimentary rocks that contains a 1.5 by 3.0 metre wide zone of heavily disseminated to semi-massive sulphides comprising up to 50% pyrite, pyrrhotite, arsenopyrite and chalcopyrite.
The mineralization is hosted by greenish-grey, siliceous altered phyllite. The sulphides are present in varying amounts up to 40-50 % over the entire 7 metre-long outcrop immediately adjacent to the road. A second mineralized occurrence of similar appearance lies 85 metres to the southwest of the main showing but is poorly exposed. Sampling from previous programs and the 2003 program returned copper values up to 0.3 %. This zone will become the initial focus of the next phase of exploration on this project.
Previous exploration in the general vicinity of the Rollie project included geochemical and geophysical programs and diamond drilling of 7 holes comprising 1,033 metres. The past programs along with current work have identified an area for follow-up exploration starting with diamond drilling of the roadside target.
Of interest is a large well-mineralized boulder found immediately northeast of the Rollie Creek bridge. This metre-size boulder consists of coarse sandstone containing a vein about 20 cm wide of massive pyrrhotite-pyrite-chalcopyrite-galena-sphalerite. Although the boulder has been transported, its location adjacent to Rollie Creek suggests that it was carried down that drainage, making the Rollie Creek area a good prospecting target. A chip sample of the sulphide vein returned values of 4 % copper, 0.4 % lead, 0.3 % zinc and 63.5g/t silver.
Encouraging results from the Rollie project, along with the previous identification of massive sulphide occurrences on the Ace, Frank, and SCR projects, underscores the potential for discovery of polymetallic massive sulphide mineralization in the Barkerville Terrane.
Other Exploration
In 2003, Barker Minerals undertook a limited program of geological mapping, geochemical sampling and trenching on the Ace, Frank Creek, Kangaroo Creek, SCR and Rollie Creek properties.
Trenching Program
Backhoe trenching was carried out on the Ace, Frank Creek and SCR properties from June to August 2003. A total of 1067 metres of trenching in 24 trenches was completed and 48 geochemical samples (multielement and whole rock analyses) were taken on the three properties. This work is broken down as follows:
Ace Property - 11 trenches, 428 metres total trenching, 9 till samples analysed, 12 rock samples analysed.
Frank Creek Property - 10 trenches, 530 metres total trenching, 7 till samples analysed, 15 rock samples analysed.
SCR Property - 2 trenches, 109 metres total trenching, 2 till samples analysed, 3 rock samples analysed.
The trenches were mapped and sampled by Sean McKinley, P.Geo. with consultation from Dr. Trygve Höy, P.Geo. (Consultant Geologist) and Dr. Tim Barrett (Ore Systems Consulting).
Geological Mapping
A preliminary geological assessment of a portion of Barker's Kangaroo Gold Project was carried out in November 2003. A total of 4 days of roadside mapping and geochemical sampling was completed. Eleven whole rock lithogeochemical samples were taken.
Drillcore relogging and sampling
Barker geologists continued their program of re-evaluating old drillcores from the Frank Creek and Ace Properties in their ongoing interpretation of the regional geology. Numerous samples from Ace and Frank Creek drillcores were taken by Dr. Tim Barrett of Ore Systems Consulting as part of his ongoing lithogeochemical and stratigraphic study of the areas.
Ore Systems Consulting to Provide Geological Report
A geological study of the Frank Creek and Ace massive sulphide prospects by Ore Systems Consulting will soon be completed. The results of these studies will have direct implications for the next phases of exploration on the Ace and Frank Creek projects and the potential of these areas to host massive sulphide mineralization. Dr. Tim Barrett and Dr. Wallace MacLean of Ore Systems Consulting have previously worked on many volcanic-associated massive sulphide deposits in Canada and overseas, including deposits of the Noranda and Matagami camps of Quebec, the Timmins area of Ontario, the Cordillera of British Columbia, and deposits in Alaska, Sweden, Wales, Portugal and the Philippines. They have published numerous research papers on these deposits, and also completed many private reports for mining exploration companies.
Barker Minerals will integrate the new results with known geophysical and soil-geochemistry anomalies on the Frank Creek and Ace projects property in order to select high-priority drilling targets for the next phase of exploration
Quesnel River and Likely Area, Gold, Silver and Platinum Potential (gold fields map)
Early Placer Gold and Platinum History
Records of gold mining in the Quesnel River date back to the earliest history of placer mining in the province. As early as 1852 it was mentioned that gold nuggets from unknown sources were traded at the Hudson's Bay Company trading post in Kamloops. The mining of substantial amounts of placer gold began in 1857 in the tributary of the Thompson River, which led to an influx of several thousand miners into the Fraser River valley. A number of more adventurous prospectors worked up the Fraser in search of new placers and possibly the lode sources. Their continued prospecting efforts led them up the Quesnel River to what is known as Quesnel Forks. Rich river-bar gold was found in this location in 1859. Barker Minerals Kangaroo Gold Project is located in an area immediately north of Quesnel Forks and covers the drainages and creeks draining south to this historic area.
The news of the rich placers in the Cariboo spread quickly and the great Cariboo rush began. In 1860, prospectors worked from Quesnel Forks up the Cariboo River as far as Cariboo Lake. Rich placers were found on a number of creeks in the Cariboo Lake area. As prospecting continued over the divide towards what is known as the Barkerville gold district, rich discoveries in 1861 triggered a rush of thousands of miners to the area.
In the early century significant placer operations were conducted on the Quesnel River with a number of major hydraulic operations such as at Twenty Mile Creek (20 Mile photo) where over $1,000,000 was spent between 1909-1911 on preparations alone, for placer mining of gold and platinum. Also of significance is the world famous "Bullion Pit" where in excess of 180,000 ounces of placer gold were recovered with 1/100th that amount (1800 ounces) recovered in platinum. (Bullion Pit) Government reports state that Quesnel River placer gold production was very substantial but the total is uncertain as much of the early production was not recorded and the accuracy of later production is suspect.
The Quesnel River has since had almost continuous placer mining operations ongoing at various levels of intensity dependent on economic conditions and cycles over the past number of decades. A number of Barker's projects were staked for the purpose of tracking down the original sources of the significant placer gold. It is estimated that over 50% of all placer gold recovered in British Columbia has come from the Cariboo's creeks and rivers, and yet less than 5% of the total hard rock gold produced in B.C. has come from the Cariboo district. These ratios indicate the significant untapped potential for the discovery of new bedrock gold deposits in the district.
Quesnel Platinum Projects (location map)
The Quesnel Platinum Project area was staked for its platinum group elements (PGEs) potential, potentially favorable geology, the recent dramatic increase in the price of PGEs and the apparent lack of previous PGE exploration in this potentially favorable area. It contains zones of mafic volcanic rocks and may contain some of the mafic to ultramafic source rocks for some of the PGEs recovered from the predominantly gold-bearing placers associated with the Quesnel River and its tributaries. Some placer deposits associated with the Quesnel River and some of its tributaries emanating from the north and east contain potentially significant concentrations of PGEs (Rublee, 1986). The highest concentration was obtained from a pan concentrate sample collected from Twenty-Mile Creek that assayed 2195 g/t Pt, 2210 g/t Pd and 1440 g/t Os. (Barker Minerals Maude gold/copper/PGE project area) In this concentrate, the PGEs were found as minute metallic grains within larger grains of magnetite and chromite.
Subsequent field and laboratory verification studies by the British Columbia Geological Survey (BCGS) in 2001 confirmed the presence of concentrations of Gold and PGEs in the Quesnel River drainage concentrates, and also recognized a new platinum occurrence in Barker's Blackbear Silver/Gold project area. Concentrations of gold in the Quesnel River from this study are up to 259 g/t gold from fire assay analysis. Blackbear Creek returned concentrations up to 7.3 g/t Pt and 3.8 g/t of Au by ICP-MS analysis. One Quesnel River sample returned concentrations of Au up to 788 g/t by ICP-MS method.
The BCGS has plans to further these studies by re-analyzing selected samples from a few areas, including the Quesnel River, for the complete suite of PGEs which results will be used to help characterize source deposit types and to highlight areas where field work could be conducted to characterize the gold and platinum placers and determine lode proximity.
Ace Gold Potential (discovery gold)
Grab samples collected from many boulders contained significant concentrations of gold and/or base metals. The average of 53 widespread float boulders comprised of sulphide-bearing quartz veins was 3.1 g/t Au, with concentrations ranging up to 29 g/t Au.
In a petrographical report prepared for Barker Minerals on samples from the Ace project Andrzej Skupinski Ph.D, states: "In four polished mounts and two polished sections over 30 grains of native gold were detected. Native gold mainly occurs close to the borders between sulphides and quartz. Frequently, gold is intergrown with tellurides and native bismuth. As a rule, all above minerals precipitate in close proximity to each other. By visual evaluation, volumetric contribution of telluride minerals in quartz vein (float boulders) is 100 times higher than that of native gold." (Petrographics photo)
Bob Lane, Regional Geologist, Ministry of Energy and Mines states in a 2000 published report:
"The Ace's host rock lithology and metal content suggest an affinity to well explored gold quartz veins of the Yanks Peak and Cow Mountain areas to the north. The geological setting, style of mineralization and geochemistry suggest an analogy to the "Plutonic/associated" or "Pogo/Type" Gold vein model."
The Ace project area has significant similarities to the Intrusion (or Plutonic) Related Gold System model setting as advanced by Lang, Baker, Hart and Mortenson, as it contains geology and mineralogy similar to that of the Yukon and Alaskan settings that host a variety of intrusion related gold deposits such as Fort Knox (158 Mt@ 0.83 g/t Au; Bakke, 1995), Brewery Creek (13.3 Mt @1.44 g/t Au; Diment and Craig, 1998), Dublin Gulch (50.3 Mt @ 0,93 g/t Au; Northern Miner, 1997), True North (16.8 Mt @ 2.5 g/t Au; Harris and Gorton). The newest and highest-grade discovery in the belt is the Pogo deposit (Smith et al., 1999; 9.98 Mt @ 0.52 oz/t Au).
Dr. Höy comments in a preliminary report to BML (July 2003)
" Trace element chemistry, form and host of Ace gold mineralization indicates that it is a distinct deposit type, probably similar to the intrusive-related gold deposit model. These deposits are associated with intrusive rocks that may be structurally controlled and can therefore strike at high angle to the stratigraphy. South of the "felsite fault" several pronounced northeast trending zones parallel late faults, and these may be the local controls for intrusions and structures that control the distribution of the gold-bismuth-telluride mineralization of the Ace area".
Frank Gold Potential
Trenching of one of the soil anomaly targets in the immediate vicinity of the Frank F-1 massive sulphide occurrence discovered a 15 metre wide zone of shearing, with numerous brecciated and folded quartz-carbonate veins that contain pyrite, sphalerite and galena. The zone cuts deformed and faulted black phyllites with abundant disseminated pyrite. The zone has many similarities to the mesothermal or motherlode-style gold mineralization, including host mineralogy, carbonate alteration and proximity (less than 100m) to a structural break characterized by ultramafics and listwanites. Further trenching, sampling, analyses and eventually drilling are planned to test the extent of this new discovery.
This new discovery is also within a few hundred metres of anomalous gold in 2 previous percussion drill holes and is also upslope less than 1 kilometre from historical and modern day placer gold operations in Frank Creek.
Blackbear Highgrade Silver/Gold Project (location map)
In consideration of the substantial and sustained increases in the price of silver and gold, the Company is formulating a program to advance its silver and gold projects, initially, its silver/gold Blackbear Project which is located near Likely B.C.
Dr. Trygve Höy is currently compiling the results of all past exploration programs in the Blackbear Project area and will be providing a summary report to the Company, which will be used to assist in planning the next phase of exploration of this high-grade prospect.
The Blackbear Project has numerous high-grade surface showings of silver and gold-rich galena (galena photo). Previous exploration work by Barker resulted in grab samples assaying (up to 142 oz/t silver (Ag) (4540 g/t Ag), 0.08 oz/t gold (Au) (2.5 g/t Au.) and 52% lead). Also, B.C. Minfile reports state that a sample of selected ore for shipment from historic production from the now idle Providence Silver/Gold Mine, which is within the Blackbear Project area owned by Barker, assayed 104 oz/t silver (Ag) (3,343 g/t Ag.), 0.15 oz/t gold(Au) (4.9 g/t Au.), 0.11% zinc and 45.7% lead.
Kangaroo Gold Project (location map)
The Kangaroo Gold project is located near the historic Quesnel Forks placer area on the Quesnel River. The geology on the Kangaroo project is similar to the QR and Cariboo gold projects, which are to the west of the project area.
The Kangaroo project area is highly anomalous in gold, and gold pathfinder minerals in stream sediments draining the project area into the Quesnel River. Government studies identified areas of the Kangaroo project as having the highest potential for gold and precious metals on the entire 93A mapsheet.
Of interest is the neighboring Cariboo property of Cross Lake Minerals which has a historic diamond drill hole completed by Corona Gold Corporation in 1989 that intersected 5.26 g/t gold over an 8.5 metre interval (0.15 oz/t over 27.9 feet). The area of the drill hole is associated with coincident magnetic, IP and soil geochemical anomalies along the contact of a diorite intrusive, similar to the intrusive associated with the QR deposits.
The historical drill hole of Corona's is located within a short distance from the boundary of the Kangaroo project. The significant drill intercept along with all other historical information in the area makes the Kangaroo project a high potential area for discovery of favorable geology and gold mineralization, and also possible copper/gold/moly mineralization.
Ready For Drilling
Most of the geophysical anomalies on the Ace and Frank Creek projects obtained in earlier studies have yet to be tested or explained. The next phase of exploration is being planned to begin systematic exploration drilling of the numerous drill targets defined on the Ace and Frank projects from previous programs.
Five projects are ready for drilling. Each project hosts multiple and clearly identified drill targets. Over the past number of years Barker has built a large inventory of drill targets. It is anticipated that ongoing exploration will continue to generate more drill targets well into the future.
The next phase of trenching and exploration drilling is now being planned to follow up the encouraging results received in the first phase of exploration drilling. This program will continue to test existing targets and also begin the first round of exploration drilling on a number of high priority targets on the Ace, SCR and Frank MS projects.
Economic Potential Independently Verified
Precious metal and massive sulphide deposit potential has been independently verified by: Strathcona Mineral Services Ltd; the Geological Survey of Canada; the B.C. Geological Survey and a number of major mining companies. Potential ore grades have been identified on surface. Size potential has also been demonstrated by exploration work to date.
Government Comments:
"In the Likely area, 75 kilometres northeast of Williams Lake, Barker Minerals Ltd. continued geological mapping and geophysical surveys over its Frank Creek and Ace volcanogenic massive sulphide showings. Although the felsic rocks at Frank Creek are different from those at the Ace showing to the northeast, the proximity of the two zones in the Barkerville Terrane enhances the potential of discovery of more VMS deposits within the belt."
Tom Schroeter
Information Circular 2001-1
Ministry of Energy and Mines
World Class Geological Program
One of Barker's major strengths is its world-class geological program. Not only does Barker have an independent qualified person (QP) to advise on it's exploration programs and to write technical reports, the company has also hired experts with significant experience in massive sulphide and precious metal exploration around the world. Barker hires its geological consultants on an "as needed" basis throughout the year. This cost-efficient corporate strategy results in expert advice with minimal overhead. The Company has hired the ongoing services on an as needed basis of Strathcona Minerals of Toronto to provide an independent opinion on procedures, quality control, security, and to provide recommendations on results. Strathcona Minerals is the highly reputable, world-renowned mining consultancy hired by regulators to investigate and ultimately expose the Bre-X scandal of the mid-nineties.
"The most likely targets on the Ace Property are Besshi-type sediment hosted massive sulphides and vein-type gold mineralization."
Strathcona Mineral Services Limited, 1998.
Major Company Interest
There are currently a number of major mining companies following Barker's progress. These companies have expressed an ongoing interest in potential joint venture partnerships should a major discovery occur.
"We appreciate the excellent cooperation that we have received from you and your team in aiding us in our review, and commend you for the highly professional manner in which you have carried out your exploration and compiled the resulting data."
Inco Technical Services Limited
December 2000
Company Activities
Barker was well represented at the 2003 Prospectors and Developers Association Convention (PDAC) mining conference in Toronto with the company having a booth for the 4 day conference, and also maintaining contact with previously cultivated relationships by providing a number of presentations to key people from major companies, financial institutions and other potential investors. The mood was more upbeat with most agreeing that we are in the early stages of a long term bull market in the resource sector.
There was talk from the majors themselves that if exploration for new gold deposits does not get going soon the resources will dry up in around 10 years. The current environment is only increasing the potential value of our extensive projects with potential for discovery of both base and precious metals. We believe that a new mineral discovery would create significant exploration interest by both junior and majors in the district.
Property Acquisitions
During late 2003 the Company staked 10 units of mineral claims, which were acquired to cover possible extensions of geochemical and geophysical anomalies from the Kangaroo gold property, which were outlined by previous exploration programs.
In March 2003 the Company also acquired, by way of staking, two exploration project areas that will be evaluated for their gold, copper and platinum group elements potential. The mineral claims are located in the southern area of the Cariboo Mining District in East Central British Columbia. The new projects consist of 63 and 85 mineral claims respectively and total approximately 9,143 acres or 3,700 hectares in size.
One of the new project areas was staked south of the Mt. Polley Mine for its gold and copper potential. The recent significant new discovery by Imperial Metals will enhance the potential for other discoveries in the area.
Public Relation Activities
As Barker is relatively unknown within the investment community a number of activities are being planned to get the company better known. Information meetings will be ongoing throughout the year for potential investors, mining analysts, brokers, and mining companies to create awareness about the company as we prepare for the next leg up in the gold bull market.
The Company will be attending a number of mining conferences across the country throughout the year to continue to create investor interest and awareness.
Marketing programs will also be conducted throughout the year to create awareness through the internet and other information disseminating venues where we can continue to get our exciting story out to the investing public.
Corporate
Due to major accounting and large company scandals, further changes to corporate governance requirements are expected to be introduced by regulators and exchanges in Canada. Reforms we may expect to see include the requirement of public companies to have a majority of independent directors and a majority or all independent members on Audit committees. We are pleased to report that Barker currently has a majority of independent directors and a majority of independent members on its Audit and Compensation committees.
Undervalued With Unlimited Upside Potential (link to undervalued list)
In its ten year history the company has never sold any shares from the treasury under $0.25 per share (pre-IPO share chart) and limited secondary market trading below $0.25 per share.
Currently there are approximately 27 million shares outstanding and as of the AGM in May 2003 there were almost 24 million outstanding, of which only 9 million shares were registered in accounts with 26 different financial institutions.
The AGM was well represented with 51% of all outstanding shares represented and all items passed 100%.
In February of 2002 at the time of our IPO the company had 350 shareholders and just over 1 year later we had more than doubled to 760 shareholders. We welcome the additional shareholders since then who have purchased shares on the open market over the past year, and also, investors who have purchased shares through private placements directly through the company.
Management, directors, employees, close friends and relatives control a significant amount of the shares of the Company. Barker is a tightly held stock, which offers significant upside with any exploration success, and a very limited downside.
Developing Area Play
A recent significant discovery by Imperial Metals at their Mt. Polley Mine near Likely resulted in a share price increase of their stock from $0.40 per share to a high of $7.00 per share. This discovery and follow-up investor interest are a good example of investor success by positioning oneself ahead of drilling and a potential discovery. Discoveries like Imperial Metals are great reminders why investors take the risks they do in investing in exploration companies. This also shows that BC is being looked at more favorably than with previous governments and any exploration success should be met with significant investor interest.
Other companies are very active in the district and significant financings have been completed for exploration in the Cariboo recently, which will greatly increase the potential of discovery in the district.
A government sponsored airborne geophysical survey was completed in the fall of 2003 over the Mount Polley/Horsefly areas (link to map & text). The data will be released early in the new year and is expected to bring exploration interest to the high mineral potential district. Only 15% of the area surveyed was staked before the survey took place. A number of our projects are covered in the survey and the results will aid in future exploration plans on these projects.
Outlook
It is believed by many that the next leg up in the bull market will include investor interest in companies that have significant "discovery" potential. Our strategy of developing drill targets over the years in anticipation of a bull market should pay off handsomely for our shareholders as we enter the next phase of the resource cycle where good properties will be in high demand. Most of our projects will have added appeal as they were developed through the exploration process and are thus considered virgin projects, this is a big factor in the interest expressed by both the majors and government geologists alike.
Gold, Platinum and Silver prices have recently been making new highs and are projected to continue higher over the near to medium term. The base metal prices have been very buoyant of late also and are in a possible bull market phase themselves.
With all the above factors coming together at the same time the company's future has never been brighter and a great year ahead is anticipated for Barker Minerals and its shareholders. We are eager to begin to unlock our potential value through discovery by beginning to test some of the high potential drill targets defined to date.
Barker has continued its systematic and methodical exploration approach to advance a number of project areas with numerous targets to the exploration drill stage. The vast number of drill targets has significantly increased the Company's chances for discovery. Barker has spent many seasons defining drill targets in preparation for this resource bull market and is fortunate to have many drill targets ready for testing just as the gold sector bull market has begun. As a result the Company and its shareholders are well positioned with multiple opportunities for significant mineral discoveries over both the short and long term.
We would like to take this opportunity to thank all of our shareholders for their continued support as we look forward to this exciting time in the Company's history.
Sincerely yours,
Louis Doyle
President/CEO
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