Sediment Hosted Vein (SHV) deposit
Sediment Hosted Vein (SHV) deposits are a family of gold deposits that consist of gold in quartz veins hosted by shale and siltstone sedimentary rocks (Klipfel, 2005).

These types of deposits can be some of the largest in the world as seen at Muruntau (>80M oz) and Sukhoy Log (>20M oz) in Russia. This type of veining is also being explored on the neighboring Skygold Joint Venture’s Spanish Mountain Property. Characteristics of this type of deposit are: they are generally hosted in late- Proterozoic to early-Paleozoic shale-siltstone sequences, but have been found in Mesozoic host rocks; require fluid traps, such as anticlines; have undergone minimal metamorphism; consistently contain disseminated pyrite cubes and for the largest of deposits, have regionally present granitic plutons associated with orogenisis. These characteristics make the Cedar Creek Property a favourable setting for this deposit type. The Cedar Creek area has undergone multiple deformation events, which may provide the structural/lithological fluid traps such as the recumbent folds that are seen on the adjacent Skygold J.V’s Spanish Mountain Property. In conjunction with the deformation, lower greenshist facies appears to be the extent of metamorphism in the area of the Cedar Creek claims. Wackes sampled on the property contain centimetre-scale euhedral pyrite cubes. Many plutonic stocks have intruded the Quesnel Terrane and a few of these hold significant mineralization, such as the Mount Polley and there is evidence from discrete alkaline stocks that a large plutonic structure may be deep-seated under the Cedar Creek Property.

Intense epidotization
Intense epidotization found on the Property is reminiscent of the gold skarn at the QR deposit located 20 Kilometres NW of the Property, and 15 kilometres north of

Mount Polley. Pre-production reserves were estimated to be 1.1 million tonnes of ore grading 6.5 g/t Au. Under operation by Kinross between 1994 and 1998, production totaled 1,060,000 tonnes of ore milled, grading 4.1 g/t Au with 118,004 ounces of gold produced. The deposit is characterized as a propylitic gold skarn, which occurs within a 300-metre wide hornfelsed aureole to the dioritic QR intrusive stock. Gold is present in and along the contact between lower calcareous basalt and bedded siltstones and argillaceous sediments and near to or along the contact to the intrusive body. The gold is found in association with pyrite and pyrrhotite, with lesser amounts of chalcopyrite, sphalerite and galena (Cross Lake Minerals Ltd Press release, May 1, 2006). Propylitic altered alkali volcanics, monzodiorite and diorite stocks in association with calcareous sedimentary rocks located on the Cedar Creek Property suggest an environment that may be favorable to this type of deposit (Dawson, 2006).