42A87NW8171 63.4918 THOMAS010

REPORT on the BA RESOURCES LTD., JOSEPH PROPERTY

in THOMAS TOWNSHIP,Porcupine Mining Division

Ontario

by

R. Bruce Durham Bsc. FGAC

DURHAM GEOLOGICAL SERVICES INC.

Box 7341176 Delnite Road Timmins, Ontario

P4N 7G2

42A87NWI8171 63.4918 THOMAS 010C

TABLE OF CONTENTS

INTRODUCTION.

PROPERTY.Location, Access, and Facilities. Previous Work....................

CONCLUSIONS AND RECOMMENDATIONS.

BUDGET.

SELECTED REFERENCES.

CERTIFICATION.

Page

l

Z45

13

14

16

17

LIST OF FIGURES

Figure l Property Location Map

Figure 2 Claim Location Map

Figure 3 Regional Geology

Figure 4 Property Geology Back Pocket

1:7,603,200

1:20,000

l" ^ 4 mi.

l" ^ 1/2 mi.

INTRODUCTION

This report was prepared at the request of

Mr. Norman Chamberl1st, President of BA Resources

and describes the geology, alteration and previous

work, recommended exploration program for a block

of 25 claims in Thomas Township, Ontario.

The BA Resources Ltd., Joseph Property,

located in Thomas Township, approximately 38 km

east of Timmins, Ontario. It is underlain by

predominately basaltic rocks thought to be

stratigraphically equivalent to the lower Tisdale

Group of volcanics which host most of the gold

deposits of the Porcupine Gold camp. The Porcupine

Gold camp has produced in excess of 56,000,000

ounces of gold since the turn of the century.

Renewed exploration in areas of favorable geology

is continually both defining additional reserves,

and resulting in new discoveries, generally

associated with zones of intense carbonate

alteration and quartz veining.

The BA Resources property covers an area of

favorable geology that has been shown to have been

sheared, carbonate altered, veined, and is known

-l-

LEGEND

M Archean greenstone and associated Sediments

D Granitic Terrain

ffi Non Archean Sediments, volcanics, intrusions

DURHAM GEOLOGICAL SERVICES INC.

B A RESOURCES LTD.

JOSEPH PROPERTY LOCATION _

06/I5/8& ~"-A" /c g. r^ 1:7,60320. |'.^'(.'--^v" B.D\' "^"" - l

to have returned gold values as high as O.08

ounces/ton gold from surface samples.

The favorable geological environment in

conjunction with excellent access, facilities, and

logistics has lead to the recommendation of a

three phase exploration program estimated to cost

S157,575.00 to evaluate the gold potential of the

property.

PROPERTY

The BA Resources Ltd., Joseph property

located in Thomas Township consists of 25

unpatented mining claims in the Porcupine Mining

Division of Ontario.

The numbers of the claims and their

respective expiry dates are as follows:

CLAIM # EXPIRY DATE

P 867076 September 3, 1986

P 867077 September 3, 1986

P 867078 September 3, 1986

P 867079 September 3, 1986

P 867080 September 3, 1986

P 867081 September 3, 1986

P 867082 September 3, 1986

P 867083 September 3, 1986

-2-

P 867084 September 3, 1986

P 867085 September 3, 1986

P 867508 September 3, 1986

P 867509 September 3, 1986

P 867510 September 3, 1986

P 867511 September 3, 1986

P 867512 September 3, 1986

P 867513 September 3, 1986

P 867514 September 3, 1986

P 867515 September 3, 1986

P 867521 September 13, 1986

P 867522 September 13, 1986

P 867523 September 13, 1986

P 867524 September 13, 1986

P 867525 September 13, 1986

P 867526 September 13, 1986

P 867527 September 13, 1986

TOTAL: 25 claims

The claims were all staked by, and recorded

in the name of, Sydney Joseph, holder of Ontario

Prospector's license number M-21995.

Transfers for the 25 claims have been

executed in favor of BA Resources Ltd., but have

yet to be recorded with the mining recorders

-3-

MACKLEM TWP

—k——

THOMAS TWP

DURHAM GEOLOGICAL SERVICES INC

B A RESOURCES LTD.

CLXi/M LOCATION

office in Timmins, pending the company's

acquisition of an Ontario Prospector's license.

The surface rights to the claims belong to

the crown and as such pose no problem with respect

to any possible future development work.

Location. Access, and Facilities

The property is located in Thomas Township,

38 km east of Timmins, Ontario. The property is

readiliy accessible via a gravel road system that

extends southward from Hwy. 101, from a point

approximately 25 km east of Timmins. This all

weather gravel road, known as the Gibson Lake

road, extends through the extreme northeast corner

of Thomas Township, within 2 km of the eastern

portion of the property. Small bush roads extend

onto the property from that point.

Being located within 40 km of the city of

Timmins, Ontario, one of e premiere mining camps

in Canada, the property is well located with

respect to; a qualified labor force, machine

shops, support facilities, engineering, and so on.

A small mill facility operated by Asarco has

recently been treating ore on a custom mill basis

within 11 km of the property. Water and power

supplies, while not located on the property, are

located within a reasonable distance.

Ample coarse and fine aggregate are present

within a large esker area 2 km east of the

property. As such, the property must be

considered to be ideally located with respect to

infrastructure.

Previous Work

Considering the location and favorable

geology of the area, the area has not been

extensively explored.

In 1965, during the Timmins basemetal "rush"

Markay Mining Corporation Limited carried out

ground magnetic and Crone EM electromagnetic

surveying using a 200 foot coil separation over

much of the subject property. Three drill holes,

totalling 1587.5 feet, were drilled during the

summer of 1965 to test certain magnetic anomalies.

Only 5 samples were selected and analysed for

gold. No values were obtained. The current

location of the drill core is unknown but

interpretation of the original drill boys indicate

a very favorable environment for gold

mineralization. All rocks intersected were

-5-

extensively carbonatized and terms and phrases

such as; sericite, shearing, quartz-carbonate

veins, quartz-tourmaline veins, fault zones, talc

chlorite schist, mariposite, and aplitic dyke,

are used in the original drill logs to describe

the geology of the bedrock encountered.

While geologic mapping and sampling were

recommended, there is no report of such work

having been carried out.

A sketch map showing work carried out, circa

1923, on the property by Foster-Trout Creek shows

outcrops of carbonatized basalt cut by quartz and

quartz-tourmaline veins and assays of up to 0.08

ounces/ton. Of the seventeen samples analysed

seven contained between 0.01 ounces/ton Au and

0.08 ounces/ton Au.

Mr. R. Bradshaw in his December 13, 1964

report for Markay Mines Ltd. indicated that assay

values of up to 0.41 ounces/ton gold over 1.2 feet

were obtained but the author was unable to confirm

the source of the information. In his report he

also mentioned that extensive stripping was

carried out by the Leliever interest who held the

-6-

property at one point. No records of this work

are available.

A junior mining company by the name of WPM

Resources Ltd. acquired a total of 27 unpatented

claims which overlapped the western portion of the

25 claim block now held by BA Resources Ltd.

The only work completed by this company consisted

of the collection of biogeochemical samples from 6

of the claims and subsequent analysis for silver,

lead, copper, and zinc. No anomalies were defined

and the property was allowed to lapse.

Cominco Limited carried out airborne and

ground geophysical surveys over a block of claims

in Sheraton and Thomas in 1971-1973, to the east

of the subject property. The airborne and ground

magnetic survey located an east northeast striking

diabase dike but failed to define the general

geologic trends in the area. The EM surveying

located one conductor in the north half of Lot 9

Concession five of Sheraton Township which was

later drilled (in 1974) and shown to be caused by

graphite. Low copper-sine values were obtained.

No analyses were carried out for gold.

-7-

Noranda Exploration Co. carried out a

magnetometer survey over a group of 6 contiguous

unpatented mining claims in the eastern portion of

Thomas Township, immediately east of the subject

property. The only area of high magnetic gradient

located was an NE-SW trending diabase dike.

A 1230 foot AQ sized diamond drill hole was

put down by Noranda Exploration Co., in 1975 on a

conductive zone known as the Nighthawk Geophysical

Test Range conductor. The hole intersected

numerous graphitic bands within intermediate to

rhyolitic tuffaceous horizons.

A second deep drill hole was put down on the

same claim group by Noranda Exploration Co. in

November of 1983 approximately 450 m northeast of

the hole drilled in 1976. Similar felsic

agglomerate, lapilli, tuffs, graphitic tuffs, and

argillites were intersected and the claims remain

in good standing.

Dome Mines Limited hold the claims

immediately adjacent to the north of the BA

Resources Ltd. property in Thomas Township and

also hold a large block of ground covering similar

carbonatized volcanic rocks in Macklem Township.

-8-

V \\Murphy

BELL C

Hoyle

^CANAMAX

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Matheson 7 German

DESTOR PORCUPIN1L

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T ANDREW, tOOJFIELDS

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-7-

Me Arthur ~askenG5

\Michie^

NOTE- No geological interpretation shown Nortyot

LEGEND

supine Fault Zone.

\n Cobalt SedimentsHI DiabaseIU Granite[f] Sediments[5J Predominantly Felsic rocks (Deloro Group)[D Predominantly Mafic Volcanics[B Ultramafic flows

A Gold ShowingO Producing/Exproducing Gold Mine

l Q R. B. DURHAM C1 '

W M GEOLOGICAL SERVICES INC.

B A RESOURCES LTD.

REGIONAL GEOLOGY

(Modified after ODM 22O5)K.B.

A/7S Approved B.D.

A considerable amount of drilling has been

carried out on the property. The claims adjacent

to the BA Resources, Joseph Property remain in

good standing.

Much of the BA Resources Ltd., Joseph

property was originally part of the Dome Mines

Ltd. block of claims.

General Geology

The BA Resources, Thomas Township property

lies within the Abitibi greenstone metavolcanic

belt, an 800 km long, 240 km wide suite of Archean

volcanic rocks that stretches from Chibougamau,

Quebec on the east to the west of Timmins,

Ontario.

While average rock exposure in the area is

less than 1035, outcrop information coupled with

geophysical interpretation, and drill hole

information, indicate that the majority of the BA

Resources Ltd. property and surrounding area are underlain by a suite of komatiitic and tholeiitic

basaltic rocks, which, if not of the Tisdale Group

of volcanics, are certainly similar to the Tisdale

Group.

-9-

"Deloro Group" type rocks to the east in the

extreme northeast corner of the townships of

Thomas, Sheraton and Bend, and to the southwest in

Carman Township indicate that the regional contact

between the Deloro and Tisdale Groups of rocks may

be present on or near the BA Resources Ltd.

property.

This regionally extensive contact has been

shown to be important from an economic point of

view in that many of the Porcupine gold deposits

are located near this time stratigraphic boundary.

One of the other key features found near most

of the gold deposits of the Porcupine Gold camp,

is the Destor-Porcupine Fault zone. This zone of

major regional faulting and structural adjustment

passes through Macklem Township in an easterly

direction approximately 6 miles north of the

property.

The majority of the Porcupine gold deposits

lie within approximately 10 km of this major

structure which usually consists of a highly

sheared zone o f talc-chlorite carbonate schist of

ultramafic composition.

-10-

Basaltic rocks in the vicinity of the BA

Resources property are highly carbonatized and

schisted in a southeasterly direction. Dips,

while near vertical appear to be generally to the

north.

The basaltic rocks are cut by felsite and

diabase dikes, and by a variety of quarts, quarts

-carbonate, and quartz-carbonate-tourmaline veins

similar in nature to those that host the gold

deposits in the Porcupine gold camp.

The diabase dikes are the youngest, and only

non Archean rocks in the area.

Faulting in the area, both parallel to the

Destor-Porcupine Fault and southeasterly, parallel

to the Montreal River Fault appears to be

extensive. Some faulting is also postulated

parallel to the frequently well developed

schistosity (east southeast).

The presence of extensive zones of

mariposite, carbonate alteration, scattered

veining, felsic intrusions, extensive shearing,

and known gold mineralization makes this an

excellent area to explore for mineable

concentrations of gold mineralization.

-11-

CONCLUSIONS AND RECOMMENDATIONS

The BA Resources Ltd., Joseph Property located

in Thomas Township covers a geologically favorable

area for gold mineralization and warrants further

exploration for its gold potential for the

following reasons:

1) Location: a) Excellent all weather roadaccess

b) Proximity to a skilled labor pool

c) Proximity to mining equipment and supplies

d) Proximity to a custom mill facility

2) Very favorable geological environment

To date, the following favorable indicators

have been found to occur on the property:

carbonate alteration, sericite alteration,

narrow felsic intrusions, extensive shearing,

quartz-carbonate-tourmaline veins, gold values

up to 0.08 ounces/ton Au.

3) No comprehensive exploration program has been

carried out on the entire claim group in

recent years.

4) Competitor activity: Companies including

-12-

Dome Mines, Kidd Creek Mines, and Noranda

Exploration all control land covering similar

environments in the same area.

5) Government geologist E. Leahy, in his 1971

report Geology of the Night Hawk Lake Area,

District of Cochrane made the following

comments on the area,

"The few small outcrops found on Radisson Creek near the eastern Thomas Township line and the outcrop area straddling the Thomas-Macklem Township line both have yielded interesting assays in gold. Both areas are strongly sheared, carbonatized, have quarts-tourmaline veins and minor fuschite."

"Between them is a length of approximately 3 miles in which no outcrop is known to exist and to the writer's knowledge, no work in the form of geophysics or diamond drilling carried out. In the writer's opinion it is a very interesting area."

A comprehensive exploration program

consisting of linecutting, magnetometer surveying,

geological mapping, assaying, backhoe stripping,

and IP surveying is recommended to evaluate the

property. If considered warranted upon completion

of Phases I fc II, a 3000 foot diamond drill

program is recommended to further evaluate any

zones of interest.

-13-

BUDGET

The following work program, estimat to cost

S157,575, is recommended to more fully evaluate

the potential of the BA Resources Ltd., Joseph

Property in Thomas Township.

Phase I

Linecutting 25 miles Magnetometer survey 25 miles

all inclusive. Geological Mapping Assaying Report, Drafting, Printing

@ SSOO/mi

Contingency

Total Phase I Program

$ 7,500

3,7508,0001,5002,500

23.2502.325

Phase II

Backhoe Stripping, Washing, SamplingIP surveyingReport, Drafting Supervision

Contingency

Total Phase II Program

15,00020,00010,00045.0001,500

-14-

Phase III

Dependent upon definition of target after completion of Phases I ft II.

Diamond drilling 3000 feet of BQ diamond drilling @ 20/ft

all inclusiveAssaying, Splitting, Shipping Supervision, Logging, Report, Drafting

Contingency 103S

Total Phase III Program

Total of Phases I, II, III

$ 60,0005,00010,00075.QQQ7.500

Respectfully submitted,

Bruce Durham

May 8, 1986

15

SELECTED REFERENCES

Burrows, A.M.1940: Geology of the Langmuir Sheraton area;

Ontario Department of Mines Vol. 49, pt 4, 21 p. Accompanied by Map 49h scale l" inch to l mile.

Fyon J. Andy and Crocket J.H.1983 Gold Exploration in the Timmins Area

Using Field and Lithogeochemical Characteristics of Carbonate Zones; Ontario Geological Survey Study 26, 56 p. Accompanied by 2 Charts, 2 Maps.

Leahy, E.J.1971 Geology of the Nighthawk Lake Area

District of Cochrane, Ontario. Ontario Department of Mines and Northern Affairs, GR 96, 47 p. Accompanied by Map 2222 scale l" inch to l mile.

Pyke, D.R.1981 Relationship of Gold Mineralization to

Stratigraphy and Structure in Timmins and Surrounding Area.

MNR Assessment Files: Timmins, Ontario.

CERTIFICATION

I, R. Bruce Durham, of 1176 Delnite Road, Timmins, Ontario, certify as follows concerning my May 20, 1986 report on the BA RESOURCES LTD. Joseph Property located in Thomas Township.

1. I am a graduate of the University of Western Ontario, having obtained a Bachelor of Science Degree in Geology in 1976.

2. I have been practising my profession, primarily in Canada, since 1975.

3. I have no direct or indirect interest in the leases or securities of BA Resources Ltd. at this time, although I may receive up to 10,000 common shares of the corporation as a finders fee, subject to approval by the appropriate regualtory bodies.

4. I am a fellow of the Geological Association of Canada.

5. That this report is a product of my knowledge of the area, a compilation of available previous work, and a personal visit to the property.

Dated at Timmins this 20th day of May,

R. Bruce Durham, Bsc.

42Aa7N*ai71 63.4910 THOMAS900

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