1998 OPAP PROSP RPT INCLUDING 1994 OPAP WORK …blue chip prospecting syhdicaie, a.j will*, p eng, manager. december figure 3 - detailed location map , "^ ' blue chip prospecting syndicate

42E14SE2001 2.19663 FULFORD

.196 63

010

1998 OPAP PROSPECTING REPORT

(including the 1994 OPAP work)

DIONNE LAKE GOLD PROPERTY

FULFORD TOWNSHIP, BEARDMORE-GERALDTON AREA

THUNDER BAY MINING DIVISION

NORTHWESTERN ONTARIO, CANADA

PREPARED FOR

THE BLUE CHIP PROSPECTING SYNDICATE

by

Allan J. Willy, P. Eng.

OPAP File No. OP98-297

NTS Reference No. Federal Series 42 E/14, 42 E/15

Provincial Series 42 E/NW, E/NE

Claim Map Nos.: Treptow Lake G-434

Alfred Lake G-189

Claim Nos. 1185393 , 1185394,

1185400 S 1040830

Latitude : 490 46' N Longitude; 87 0 00' W

Toronto, Ontario January 15 , 1999

42E14SE2001 2.19663 FULFORD OIOC

TABLE OF CONTENTS

Page

SUMMARY

o . 196 .6 3. O INTRODUCTION . . . . . . . .

2.0 PROPERTY, LOCATION AND ACCESS . . . . . . . . . . . . . . . . . . . 2

3.0 HISTORY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

3.1 Regional History . . . . . . . . . . . . . . . . . . . . . . 6

3.2 Property History . . . . . . . . . . . . . . . . . . . . . . 6

3.3 Recent Regional Activity . . . . . . . . . . . . . . . . . . 9

4.0 GEOLOGY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

4.1 Regional Geology . . . . . . . . . . . . . . . . . . . . . 11

4.2 Property Geology . . . . . . . . . . . . . . . . . . . . . 11

5.0 GOLD MINERALIZATION . . . . . . . . . . . . . . . . . . . . . . . 13

5.1 Regional Gold Mineralization . . . . . . . . . . . . . . . 13

5.2 Property Gold Mineralization . . . . . . . . . . . . . . . 14

5.2.1 Preamble . . . . . . . . . . . . . . . . . . . . . 14

5.2.2 LDM Gold Occurrence . . . . . . . . . . . . . . . 16

5.2.3 McLellan East Gold Occurrence . . . . . . . . . . 17

5.2.4 McLellan Central Gold Occurrence . . . . . . . . . 17

5.2.5 McLellan West Occurrence . . . . . . . . . . . . . 17

5.2.5a Preamble . . . . . . . . . . . . . . . . . . 17

5.2.5b McLellan West 1994 Description . . . . . . . 18

5.2.5c McLellan West Occurrence 1998 Description . . 19

6.0 WHOLE ROCK ANALYSIS (1994) . . . . . . . . . . . . . . . . . . . 29

7.0 CONCLUSIONS AND RECOMMENDATIONS . . . . . . . . . . . . . . . . 29

8.0 BUDGET PROPOSALS . . . . . . . . . . . . . . . . . . . . . . . . 32

REFERENCES AND BIBLIOGRAPHY . . . . . . . . . . . . . . . . . . . . . 34

CERTIFICATE OF QUALIFICATIONS . . . . . . . . . . . . . . . . . . . . 37

APPENDIX I - PERSONNEL . . . . . . . . . . . . . . . . . . . . . . . 38

APPENDIX II - ASSAY CERTIFICATES . . . ^ . . ^ . ^K ./-^ /^. O. . . 39

f J c JL t~3 ~' 0

LIST OF FIGURES

Figure 1: General Location Map . . . . . . . . . . . . . . . . . . . .3

Figure 2. Regional Location Map. . . . . . . . . . . . . . . . . . . . 4

Figure 3: Detailed Location Map. . . . . . . . . . . . . . . . . . . . 4

Figure 4: Claim Map. . . . . . . . . . . . . . . . . . . . . . . . . .5

Figure 5: Regional Geology Map . . . . . . . . . . . . . . . . . . . . 12

Figure 6: Property Magnetic Map and Occurrence Locations . . . . . . .15

LIST OF TABLES

Table 1: Gold Results, McLellan West Occurrence. . . . . . . . . . . .20

Table 2: 32 Element Analysis and Gold Results, McLellan West . . . . .28

LIST OF MAPS

(in pocket at rear of report)

Map l - Geology and Prospecting, McLellan West Occurrence 1994 s 1998

Map 2 - Geology and Sampling of Stripped Area 1994 s 1998

Map 3 - Compilation Map

SUMMARY

This is the fourth year (1998 s 1992-94) that the Dionne Lake property

was prospected for gold with funding from the Ontario Prospectors

Assistance Plan. The field work was completed between September 22 and

September 27, 1998 and consisted of: backhoe stripping and washing,

detailed geological mapping, blasting and assaying.

The property consists of four contiguous, nonpatented claims (16 units)

having an area of about 224 hectares. The claims are in Fulford Township

immediately northwest of Geraldton, Ontario in the Thunder Bay Mining

Division. The property is accessed using bush roads, has an excellent

infrastructure, is covered with open bush and has flat topography with

little outcrop exposure.

The Dionne Lake property lies at the eastern end of the Beardmore-

Geraldton mining camp, a camp with historic gold production of

approximately 4,000,000 ounces. Prospecting began during 1901 in the

region with gold prospecting booms occurring in the 1930's and 1980's.

Ontario Geological Survey mapping exists for the area on a scale of

1:31,680. Discovery of the rich Hutchison Mine gold vein in 1935 led to

prospecting that resulted in the location of two gold occurrences on the

property. From 1986 to 1987, Noranda explored the area and drilled five

holes on the property. In 1992, the WNW Prospecting Syndicate completed

claim staking, prospecting, geological mapping, geophysical

reinterpretation, heavy equipment stripping, sampling and assaying on the

claims. Similar work was done by the WNW Prospecting Syndicate in the

1993 and 1994 field seasons.

The property lies in the eastern part of the Archaen Wabigoon

Subprovince, Superior Province of the Canadian Shield. The rocks consist

of an assemblage of felsic to mafic metavolcanics, metasediments and

igneous intrusives, with the rocks striking easterly and having steep

dips. Rock units are isoclinally folded and metamorphosed to greenschist

11

facies. The property is underlain by mafic to intermediate

metavolcanics, striking easterly with steep dips, which are probably

isoclinally folded and faulted.

The gold mineralization in the region is hosted in several rock types

within quartz-carbonate veins and altered wall rock having a few percent

of pyrite, arsenopyrite, and pyrrhotite, and lesser amounts of

chalcopyrite, sphalerite and galena (often an indicator of higher gold

values). Gold, in notable anomalous concentrations, has been obtained

at several widespread locations across the property. These gold showings

are known as the LDM, McLellan East, Mclellan Central and McLellan West

occurrences. Gold assays, very significantly up to a high of 1.09 ounces

gold per ton, were obtained this year (and in 1994) at the McLellan West

occurrence, and were on samples taken from quartz-carbonate veins

containing galena, sphalerite and chalcopyrite.

The Dionne Lake property is concluded to warrant additional prospecting

due to the following reasons:

a.) Significant gold assays of up to 1.09 ounces per ton exist for

samples taken from a quartz-carbonate vein bearing galena,

chalcopyrite and pyrite at the McLellan West occurrence.

b.) Geochemicallv-anomalous gold values have been obtained at

widespread locations across the property from samples of

altered metabasalt bordering quartz-carbonate veins.

c.) The Dionne Lake gold property is located in a favourable

geological setting for hosting gold deposits, which is

believed to be similar to that hosting the Brookbank gold

deposit. This setting is located at a regional faulted

(Burrows River fault) contact zone between the Northern

Metasedimentary and Central Metavolcanic Sub-Belts. The

Brookbank gold deposit is found about 60 km west on what is

believed to be the same horizon and the Hutchison Mine is

approximately 3 km east. In the property region, this under

explored horizon has had little subsurface exploration as it

Ill

is extensively covered by glacio-fluvial deposits.

d.) A favourable structural complexity is provided to the property

geology bv open folding similar to that found at the Geraldton

gold mining came to the south. Tracing gold zones for more

than a few 10's of meters on the surface is not possible due

to the fold axes plunging at moderate angles both east and

west within subvertical axial planes. This is particularly

evident at the LDM and Mclellan West gold occurrences where

zones pinch-out in 50 to 100 meters due this folding.

e.) Faulting and widespread alteration (favourable indicators for

gold zones) has been interpreted from the magnetics by Woolham

(1992 S 1993) for the area surrounding the Mclellan west

occurrence and for several other untested areas of the claim

group. Northwest faulting is confirmed by minor faults

exposed by stripping operations at McLellan West.

The following work is recommended for the Dionne Lake property:

Phase one exploration - surface work (cost estimate 5191,872.)

a.) Reestablish the old Noranda grid.

b.) Try the "Enzyme Leach" geochemical analytical method offered

by Activation Laboratories for soil samples over selected

overburden covered geophysical targets,

c.) Conduct an induced polarization survey over selected areas on

the grid,

d.) Continue bulldozer and backhoe stripping combined with outcrop

rock saw channel sampling and grab sampling blasted areas,

e.) Geological map the entire grid and any newly stripped areas.

Phase two exploration - diamond drilling (Cost estimate $414,722.)

a.) Diamond drill 3,000 meters (NQ core) at McLellan West, Central

and East and at LDM and at selected geophysical targets.

l

1.0 INTRODUCTION

This is the fourth year (1998 S 1992-94) that the Dionne Lake property

was prospected for gold with funding from the Ontario Prospectors

Assistance Program (OPAP) . The work was conducted in each year by the

WNW Prospecting Syndicate, Toronto, Ontario that has the following

members: Allan J. Willy, P.Eng., Manager and Consulting

Geologist/Prospector, Toronto, Ontario (OPAP File No. OP98-297) ,- Jon W.

North, Ph.D., Geologist/Prospector Oakville, Ontario; and Roderick W.

Woolham, P.Eng., Consulting Geophysicist/Prospector, Pickering, Ontario.

North and Woolham did not participate in funding in 1998.

In late 1998, Allan J. Willy made agreement with Jon North and Rod

Woolham to acquire the Dionne Lake Gold Property subject to reservation

of one third to each of any net smelter return negotiated by Mr. Willy

at a future date. Mr. Willy is now in the process of putting together

the Blue Chip Prospecting Syndicate, under the regulations as defined in

the Ontario Securities Act, to raise funds to continue more extensive

exploration on the Dionne Lake gold property.

This report is a modified version of the OPAP document submitted in 1994

consisting of a revision and updating of the text of the previous report,

redrafting of the maps and inclusion of the OPAP 1998 exploration work.

The author travelled to Geraldton from Toronto on Sept. 21-22 1998,

registered at the Park Bay View Motel on Highway 11 near Geraldton, and

spent from noon to 8 p.m. on Sept. 22 at McLellan West marking out the

area for the backhoe. The time from Sept. 23 to noon of Sept. 27 was

spent supervising the backhoe stripping done by F. Checkley, of

Beardmore. In addition, a crew of N. Cox, Beardmore, washed the stripped

outcrop on September 26 and 27 and I. McNeill of Geraldton drilled,

loaded and blasted on the same days. The author mapped in the afternoon

of Sept. 27 and travelled back to Toronto on Sept. 28 and 29.

Appendix I lists personnel working on the Dionne Lake 1998 project.

2.0 PROPERTY, LOCATION AND ACCESS

The Dionne Lake property is in Fulford Township, N.W. Ontario about 7 km

northwest of the Town of Geraldton (pop. 2,500; Figure l, 2A and 2B). The

property is situated on Federal Series NTS 1:50,000 scale map sheets 42

E/14 and 42 E/15, and Provincial Series 1:100,000 scale map sheets 42E/NW

and 42E/NE, at about lat. 490 46' N and long. 87 0 00' W.

The Dionne Lake property consists of four non patented contiguous mining

claims in the Thunder Bay Mining Division appearing on claim maps: Treptow

Lake G-434 and Alfred Lake G-189 (Fig. 4). Details on the claims are:

Claim Claim Approximate Recording

Number Units size (ha) Date

1185393 8 128 September 23, 1992

1185394 l 16 October 5, 1992

1185400 6 64* August 10, 1993

1040830 l 16 August 10, 1994

TOTALS 16 units 224 ha

* The block was staked starting at an old claim post inaccurately positioned and therefore the block size is smaller than expected.

The Dionne Lake property is easily reached from Geraldton via paved all

weather Highway 584 and bush roads with snow machines needed for winter.

Geraldton has adequate nontechnical supply and services for most

exploration programs, and is serviced by scheduled aircraft from the City

of Thunder Bay, Ontario. Power, water, natural gas and rail services are

all within a few km from the Dionne Lake property.

Topography is flat with elevations being about 300 meters above sea level.

Outcrop exposure is less than l percent with the rest of the property

being covered by sand and gravel glacial deposits. The bush is open with

stands of poplar, birch, black spruce, pine and tamarack.

Figure 1 - GENERAL LOCATION MAPImodined aner Queen's Printer tor Onlailo, 1935)

DIONNE LAKE GOLD PROPERTY

BLUE CHIP PROSPECTING SYNDICATE

Modified By A.J. Willy, P.Eng., Geologist.' Manag

P

rr,nn

E LAKE GOLp. PROPERTY , , r '

Fiqure 2 - REGIONAL LOCATION MAP5* " — (mMifiMaflBrOmarloHigliwayri1ap19S1]

BLUE CHIP PROSPECTING SYHDICAie, A.J WILL*, P ENG, MANAGER. DECEMBER

Figure 3 - DETAILED LOCATION MAP , "^ 'BLUE CHIP PROSPECTING SYNDICATE ' , , t V'- ^ ̂ \ A.J. Willy, P.Eng., Manger, Dec. 1998^ j^ -^ \

1.09

CNR railway

1 - LDM OCCURRENCE ~-2 - MCLELLAN EAST OCCURRENCE3 - MCLELLAN CENTRAL OCCURRENCE4 - MCLELLAN WEST OCCURRENCE

D 11 2 3——l——l 1111

Thlj map n modified aflor Ontaiio Ministry D' NaiurnlKSsourc.B Pro'Wlieill Series (nap* NTS 42ETNE LONG LAC (1900) S. 42EIHW JELLICOi (19*11): h

-5-

^^^^^^^^^M

tireplaaf","•."•"'Figure 4 - CLAIM MAP . . . ,

(modified after Onlado Ministry of Northarn Development and Mines claim maps G-1B9 a G-4k) ..

BLUE CHIP PROSPECTING SYNDICATE V X' A. J, Willy, P. Eng., Geologist /Manager .\FU

-, .--. JJmeters

O 800 1600

LX,L'40*SC y

II85400i:S5393

-o3**

li")•05— ; r*

s l II

Map G-434 Treptow LakeNOTE: .Claim Information current as at issue date of January 8, 19^9?*"* i. \w\aa/"^

TWP i W,,-S *ti(* STATUS REFERl K j f UT \

TO PLAHV tG - 459

3.0 HISTORY

3.1 Regional History

The Dionne Lake property lies at the eastern end of the Beardmore-

Geraldton mining area, which has produced approximately 4,000,000 ounces

of gold. All mines are currently shut down. Prospecting started in the

1880's with an emphasis on gold (Mason and White, 1986). In the early

l900's the focus was for iron near Beardmore. The first well-documented

gold discovery in the area was the King-Dodds occurrence discovered in

1915 north of Geraldton in the Kowkash area. In 1916, A.G. Burrows of the

Ontario Bureau of Mines found gold beside the rail line near Jellicoe.

By 1925 the Northern Empire Mine was discovered near Beardmore and, in

1931, T.W. Johnson discovered the Dik-Dik (Orphan) Mine north of Jellicoe.

In the same year T.A Johnson discovered gold at Little Long Lac

(Kenogamisis Lake) immediately south of Geraldton. This discovery led to

increased exploration resulting in the discovery of the Little Long Lac,

MacLeod-Cockshutt, Hardrock and other significant area mines, most being

put into operation before 1940. Exploration slowed in the following years

and the last major mine, the MacLeod-Cockshutt, closed in 1970.

The Ontario Bureau of Mines was actively geologically mapping the region

in its early prospecting era, with mapping by the Ontario Geological

Survey continuing in recent years. The rocks in the Dionne Lake property

region have been mapped by R. Macdonald (1943) and G. Beakhouse (1989) .

3.2 Property History

In 1934, the Hutchison Lake Mine was discovered approximately 3.0 km east

of the present Dionne Lake property. During 1946-47, 1,518 tons of ore

produced 792 ounces of gold at a grade of 0.52 ounces per ton.

Discovery of the Hutchison Mine led to the earliest known record of

prospecting activity on the Dionne Lake property in 1935, although earlier

exploration may have been done and not recorded (MNDM files, Thunder Bay,

Ontario) . This work was to uncover what is now known as the Loudon,

Doust, McBurnie occurrence (LDM showing). Macdonald (1943) reported that

surface work and limited drilling had been done, with W. Loudon of

Geraldton stating that gold values up to $4.50 per ton (0.129 oz./ton with

gold @ $35 per oz.) had been obtained from quartz veins in sheared

(basaltic) rocks. No maps were available for this work. However, in

1992, two old pits and two trenches situated close to one another were

found in the northeastern part of the Dionne Lake property. These

trenches and pits are likely the sites of the old work.

Macdonald (1943) also reports on work done by McLellan Long Lac Gold

Mines Limited in 1937 and 1938 that included ground currently comprising

the northwestern corner of the Dionne Lake property. Macdonald states

"The showing, situated on T.B.19736, consists of a moderately sheared

carbonate zone in andesite. The sheared zone contains narrow quartz

stringers over a maximum width of 10 feet and is exposed in a trench for

200 feet."

In 1984, Jay Shields of Geraldton owned six claims that covered the east

side of the Dionne Lake property (Assessment files, MNDM, Thunder Bay,

Ontario). Shields stripped some outcrop on current claim 1185394 (not yet

prospected). The showings consist of shear zones containing quartz

veining with about 11 pyrite. Samples taken by the Resident Geologists

office staff returned "CO.Ol ounces gold per ton.

In 1986 and 1987, Noranda Exploration Company Limited held a block of

claims that included the Dionne Lake property (Assessment files, MNDM,

Sudbury, Ontario). Noranda conducted a humus sampling program along the

claim lines. Later a grid was established over which magnetic and VLF-EM

surveys, and geological mapping (not filed with MNDM) was done. In late

1987, a 956 m drill program was completed, five holes (totalling 582 m)

of which being drilled at widely spaced locations on the Dionne Lake

property. Assay results for 268 core samples (includes samples not on

property) sent for analysis were not filed with the drill report. The

report noted that an assay result of 3.8 g/t (0.11 oz.) gold on a surface

sample of arsenopyrite-bearing tuff was part justification for drilling

8

hole NF-87-1 (located close to the LDM trenches). Noranda let the claims

expire, and the area was open to staking in September 1992.

In September and early October 1992, the WNW Prospecting Syndicate

acquired an 8-unit claim block covering the location of the LDM showing

and the presumed location of the McLellan trenches (Willy, 1992) . The

block was prospected and the LDM trench area was stripped using a

bulldozer and backhoe. A silicified, carbonatized zone containing pyrite

and arsenopyrite was exposed, and a total of 88 rock saw cut channel

samples were collected and sent for assaying. The results indicated

geochemically-anomalous values in gold with the highest value being 549

parts per billion. Limited stripping was done in the area presumed to be

the location of the McLellan showing (currently named the McLellan East

occurrence). Claim #1185394 was staked east tying on to the west border

of a reserved area (MOT airport beacon) in order to cover any possible

eastward extension of the LDM zone. The 1987 Noranda magnetic data was

reinterpreted for the area covered by the new claim block (R.W. Woolham,

1992). Further work was recommended.

In July and August 1993, the WNW Prospecting Syndicate conducted its

second prospecting program on the Dionne Lake property (Willy, 1993). An

area with several old overburden trenches (currently named the McLellan

Central occurrence) believed to represent the McLellan Long Lac Gold Mines

showing described by Macdonald (1943) was stripped using a bulldozer and

backhoe. In addition, a nearby rusted zone partially exposed in 1992

(McLellan East occurrence) was also stripped. A number of quartz

carbonate veins containing some pyrite were exposed and samples from

blasted pits gave geochemically anomalous values up to 810 ppb gold. A

couple pits were blasted into the LDM zone and fresh samples confirmed the

1992 sampling results. Late in the program the McLellan trenches as

described by Macdonald were found further to the west (currently named the

McLellan West occurrence). A six-unit claim block was staked to cover

these trenches. Grab samples gave gold values up to 0.080 ounces per ton.

Further work consisting of heavy equipment stripping and rock sampling of

these trenches was recommended.

During July and early September 1994, the WNW Prospecting Syndicate

completed its third exploration program on the Dionne Lake gold property

(Willy, 1994). A base line was cut linking the McLellan West occurrence

to the McLellan Central occurrence, and lines on 50 m spacings were cut

or recut over the McLellan West occurrence. The detailed grid was

prospected and geologically-mapped. Bulldozer and backhoe outcrop

stripping, hydraulic outcrop washing, rock saw channel cutting and

sampling for assaying was done over a large area covering the old McLellan

Gold Mines trenches and pits. This area was geologically-mapped in detail.

An additional claim, #1040830, was added to the west boundary of claim

block # 1185400 to cover any possible westerly extension of the McLellan

West occurrence. A total of 99 samples {78 rock sawn channels and 21

grabs) were analyzed for gold with results returned being up to 0.87

ounces gold per ton. Further work consisting of Enzyme Leach method soil

geochemical sampling, diamond drilling and/or continued heavy equipment

stripping, washing, geological mapping, blasting, sampling and assaying

were recommended.

3.3 Recent Regional Activity

In the last 10 years or so, gold exploration increased in the region and,

despite a recent low in the gold market price cycle, is currently active

with approximately 70 exploration projects (including about 32 Ontario

Prospectors Grant projects) being conducted in 1998 (pers. comm. Gerry

White, District Geologist, Beardmore-Geraldton Resident Geologist's

office, Thunder Bay, Ontario, November 1998). Several major recent

exploration projects are briefly described as follows.

In 1992, Asarco Exploration of Canada Ltd. formed an agreement with Lac

Minerals Canada Inc. to acquire 95 patented mining claims and 52 licences

of occupation covering the MacLeod-Cockshutt, Mosher-Longlac and Hard Rock

Gold Mine properties which had past production of more than 2,000,000

ounces of gold (Mason and White, 1993) . In 1993, Asarco Exploration

10

conducted reverse circulation and diamond drilling programs, and continued

diamond drilling in 1994 (Mason and White, 1994 and 1995) . In 1995,

Asarco completed a prefeasibility study on the drilled area and announced

a resource of approximately 400,000 ounces of gold.

In 1995, Cyprus Canada Inc. acquired a large land position in the

Geraldton area from Roxmark Mines Limited, and planned to expend about

$2,000,000 on exploration (Mason and White, 1996). In 1996, Cyprus

conducted drilling on the Roxmark claims confirming gold mineralization

in the west 1.1 km of the 2.5 km arkosic Jellicoe horizon. Also in 1995,

Cyprus conducted a drill program on the MacLeod-Cockshutt and Hardrock

Gold mine properties (resuming the work Asarco ceased) in a joint venture

with Lac Properties (Mason and White, 1997).

In 1996, Cameco Gold Inc. acquired 100 claims in the Metcalfe Lake area,

Oboshkegan Township located about 50 km north of the Village of Jellicoe.

The claims were optioned from NWT Copper Mines Limited which had staked

the Knucklethumb Lake gold occurrences. Work by Cameco Gold continued in

1997 and continued in 1998 with apparently very encouraging results (Mason

and White, 1997; pers. comm. Gerry White, Beardmore-Geraldton Resident

Geologist's office, Thunder Bay, Ontario, Nov. 1998).

The Brookbank gold property, located approximately 25 km west of the

Village of Jellicoe, was extensively explored by Metalore Resources

(operator) and Ontex Resources (joint venture partner) in the early

1980's. Ontex sued Metalore in 1986 which resulted in tying up the

Brookbank in legal proceedings until an out-of-court settlement in 1997.

In the fall of 1998, the management of Ontex, Metalore and Fortune

Minerals formed an agreement (subject to shareholder approval on December

15, 1998) which will result in continued exploration on the Brookbank with

Ontex as operator (The Northern Miner, 1998). The Brookbank has a gold

resource estimated at 1.38 million tons grading 0.26 ounces gold per ton.

This deposit is considered one of the Beardmore-Geraldton area's gold

properties most likely to develop into a new producing mine.

114.0 GEOLOGY

4.1 Regional Geology

The Dionne Lake property lies in the eastern part of the Archaen Wabigoon

Subprovince, Superior Province of the Canadian Shield. The Wabigoon

greenstone belt consists of an assemblage of felsic to mafic metavolcanic

and metasedimentary rocks intruded by felsic to mafic bodies. The units

generally strike easterly with steep dips, and are often isoclinally

folded. Normal faulting is common. Metamorphism is usually of

greenschist facies.

In the Beardmore-Geraldton area the rocks have been subdivided into two

belts: the Beardmore-Geraldton and the Onaman-Tashota belts (Mason et al.,

1988). The Beardmore-Geraldton belt consists of a sequence of easterly-

striking metavolcanic and metasedimentary rocks that are isoclinally

folded. This belt is subdivided into the Southern Metavolcanic and the

Southern Metasedimentary Sub-belts. The Onaman-Tashota belt lies to the

north of the Beardmore-Geraldton belt and is separated from it by the

Paint Lake fault. This belt consists of an assemblage of calc-alkalic and

tholeiitic metavolcanics.

4.2 Property Geology

The Dionne Lake property lies in altered metabasalts belonging to the

Central Volcanic Sub-Belt immediately south of its faulted contact with

the Northern Sedimentary Sub-Belt within the Beardmore-Geraldton Belt

(Figure 5) . The property has few outcrop exposures, however, it appears

to be underlain mainly by mafic to intermediate, massive to pillowed,

metavolcanic flows and tuffs (Willy, 1992, 1993 s 1994). Noranda drill

reports state that graphitic argillite and tuffs are interbedded with the

flows. R. Woolham's (1992 s 1993 ) reinterpretation of Noranda's 1986

magnetic survey results suggests the presence of several northwesterly,

northerly and northeasterly-striking faults crossing the property. This

interpretation is confirmed by the exposure in 1994 of a northwest-

striking, steeply-dipping minor fault with an apparent horizontal

displacement of 2.0 m's (Map 2). In addition, a quartz-carbonate vein

-12-

V V V V V N Longlac

'^^.^S^^-XX-X-^.

•w h*

LEGEND

Part Producing

FMRPast Producing Gold Mines1 -HardRock 269,081 oz.gold(1,458,[email protected])2 - MacLeod-Cockshutt 1,366,404 oz. gold (9,403,145 tons 0.145 oz./ton)3 - Consolidated Mosher 330^42 oz. gold (2,710,657 tons @ 0.12 ozJton)4 - Little Long Lac 605,449 oz. gold (1,782,516 tons 0.34 oz./ton)5 Talmora Longlac 1,415 oz. gold P.570 tons 0.15 OzJton)6 - Magnet Consolidated 152,069 oz. gold (359,912 tons 0.42 oz./ton)

|*| CeM Occurrence

1 LDV

2 McUHan EtMt and Cvilral

3 McUtan WMl4 Hutahtoon MM

7 - B*fikrieM Consoliltaled (C, 411 oz. gold (223,1*9 ton. ffi (J* oz.*on) B - TombW M,7M oz. gold (19M22 ton* O (.38 oz.jlon) 9 - JeMcoe 5,t7Soz- gold (14,722 ton* @ 0.3Soz.ôn)

BLUE CHIP PROSPECTING SYNDICATEA.J. Willy, P.Eng., Geologist l Manager Dec. 1998

Sufcmntary Sufc-UH

Sub-bo*

Figure 5 - REGIONAL GEOLOGY

13

exposed in a 1930's-blasted pit is folded into a series of minor open

folds plunging at about 45" west.

The mafic to intermediate metavolcanics are light to medium green,fine

to medium grained, massive rock units having trace to rarely a few

percent of distribution pyrite and pyrrhotite. These rocks are strongly

sheared, sulfidized (rusty), and carbonatized where gold-bearing quartz-

carbonate veins occur. The graphitic argillite, observed only in a drill

core, is stated to be fine-grained, black, with up to several percent of

graphite, and with trace to rarely several percent of distribution

pyrrhotite and pyrite.

5.0 GOLD MINERALIZATION

5.1 Regional Gold Mineralization

The Beardmore-Geraldton mining camp has produced 4.12 million ounces of

gold from 18 mines. Most of this production was from five mines located

near Geraldton (MacLeod-Cockshutt, Little Long Lac, Mosher Long Lac,

Hardrock, and Magnet Consolidated) and two mines located near Beardmore

(Leitch and Northern Empire). Production from the seven mines ranged from

149,500 ounces at the Northern Empire up to 1,476,000 at the MacLeod-

Cockshutt with average grades ranging from 0.12 to 0.92 oz. gold l ton.

Mason and White (1986) subdivide the styles of gold mineralization based

on location in the lithological package and on the host rock types:

a) A southern mafic volcanic-dominated belt in which gold occurs

in chemical metasediments (iron formation) and in quartz-

carbonate veins; all hosted in mafic metavolcanics (eg.

Northern Empire Mine).

b) A southern sedimentarv-dominated belt with gold occurring in:

I) metasedimentary host rocks;

-quartz veins and stringers hosted in fracture zones in

clastic metasediments (eg. Leitch, Little Long lac,

Magnetic Consolidated and Hard Rock Mines).

14

-quartz veins, stringers and replacement sulfide zones

in Fe formation (eg. MacLeod-Cockshutt S Hard Rock

Mines).

ii) felsic or mafic intrusive host rocks;

-quartz veins and stringers in folded albite porphyry

(eg. MacLeod-Cockshutt S Hard Rock Mines).

-quartz veins in shear zones in hornblende diorite or

gabbro (eg. Talmora Mine)

iii) Contact zone of felsic intrusives and metasediments;

-in shear zones between metawacke and albite porphyry

(eg. Bankfield, MacLeod-Cockshutt, Hard Rock and

Consolidated Mosher Mines).

-in sulfide zones in shear zones between iron formation

and quartz diorite (eg. MacLeod-Cockshutt)

iv) Mafic volcanic host

c) Northern Felsic volcanic dominated belt;

-in quartz lenses/veins at or near the contact of felsic

intrusives and mafic metavolcanics (eg. Orphan Mine and Quebec

Sturgeon River Mine).

The Hutchison Lake gold mine, which is located about 3.0 km east of the

Dionne Lake gold property, has the only recorded production in the

immediate area. Approximately 800 ounces of gold was produced at a grade

of 0.52 ounces per ton from sulfide-bearing quartz veins and altered wall

rock hosted in mafic metavolcanics (Beakhouse, 1989).

5.2 Property Gold Mineralization

5.2.1 Preamble

There are 4 predominent occurrences of gold on the Dionne Lake property:

the LDM, McLellan East, McLellan Central and McLellan West (Figure 6) .

The LDM and McLellan West gold occurrences each consist of broadly

sulfidized and often silicified shear zones in massive and pillowed

metabasalts, cut by gold-bearing sulfidized wallrock and quartz-carbonate

16

veining. The McLellan East and McLellan Central occurrences consist of

quartz-carbonate veins with anomalous gold-bearing narrow bleached and

sulfidized wallrock in narrow shear zones within massive and pillowed

metabasalts.

All occurrences are situated at rare locations where overburden is shallow

and, except for the recent McLellan East discovery, were subjected to

limited surface prospecting in the late 1930's. Several economic grades

up to 1.09 ounces gold per ton were located in a quartz-carbonate vein at

McLellan West, and significantly anomalous gold values were often returned

at all occurrences.

5.2.2 LDM Gold Occurrence

The LDM gold occurrence is a significantly mineralized gold showing

consisting of massive, beige, silicified, arsenopyrite- and pyrite-

bearing, carbonatized, sheared and brecciated, and folded mafic

metavolcanics having a surface exposure of approximately 5 by 45 meters

(Willy, 1992) . The shearing strikes about 070 0 with subvertical to

vertical dips. A minor fold in a quartz vein suggests that the zone is

folded with axes plunging about 40 C to the east. A total of 88 diamond

saw cut channel samples ranged from the detection limit of 17 ppb up to

549 ppb gold with about 32 percent of the samples considered anomalous

^50 ppb) in gold.

In 1987, Noranda drilled hole NF87-1 at -50 0 to ISO 0 from a collar located

immediately west and 70 metres north of the zone (McDonough, 1988) . A

1.75 m wide altered zone was intersected near the bottom of this 104.0 m

hole. This zone lacked arsenopyrite but was considered to represent the

"arsenopyrite-bearing intermediate to felsic tuff which returned an assay

of 3.8 g/t" [0.11 oz./ton]; the result presumably on a sample taken from

a nearby old trench. No drill assay results were submitted in the

assessment report.

17

5.2.3 McLellan East Gold Occurrence

The McLellan East gold occurrence consists notable geochemically-anomalous

concentrations of gold (up to strongly anomalous highs of 810 ppb golds)

hosted in a light to medium grey, very fine to fine-grained, equigranular,

silicified and carbonated metabasalt containing 2-5* finely-disseminated,

brassy-yellow, subhedral pyrite with grain sizes less than l mm diameter

(Willy, 1993). This host rock forms a wall rock ^25 cm wide)

discontinuously developed along the borders of 1-5 cm wide white quartz-

carbonate veins. The quartz-carbonate veins do not appear to be as

strongly mineralized as the altered sulfidized wallrock.

5.2.4 McLellan Central Gold Occurrence

The McLellan central gold occurrence consists of a 1.0 meter wide, rusty,

shear zone with strongly anomalous (up to 705 ppb) gold in metabasalt that

has infrequent quartz-carbonate stringers and <l% disseminated pyrite.

Other similar zones exist which have less significant gold concentrations.

In one area, a 1-2 meter wide altered metabasalt outcrops. This basalt

is unusual in that it is light grey with about 1-3*1, finely disseminated

anhedral pyrite having grains -cO.S mm in diameter and l-2% 1-4 mm diameter

patches of an emerald-green mineral that might be fuchsite. A sample

taken from this zone was weakly anomalous in gold.

Two angular boulders were found: a 20 x 40 x 40 cm quartz-carbonate

boulder with IZ disseminated pyrite, and a 0.5 x 0.5 x 0.5 m medium grey,

fine-grained, equigranular metabasalt boulder with S-10% finely-

disseminated pyrite and <l% accicular arsenopyrite. Both boulders were

moderately geochemically-anomalous in gold.

5.2.5 McLellan West Occurrence

5.2.5a Preamble

Before 1994, the McLellan West occurrence consisted of extensive

overburden trenching totalling about 300 meters in length and at least

four blasted pits, all being identified as those excavated by McLellan

18

Long Lac Gold Mines in 1938 (Maps l s 2; Macdonald, 1943). Following the

1994 work, the gold occurrence consists of three separate showings within

approximately 2,500 m2 of outcrop, which was exposed by bulldozer and

backhoe. In 1998, approximately an additional 375 m2 of outcrop was

exposed by backhoe for a total of 2,875 m2 outcrop exposed by the WNW

Prospecting Syndicate (Maps l S 2).

5.2.5b McLellan West 1994 Description

The McLellan West main showing is exposed between L6+10E-2+50N and L5+25E-

2+40N over a distance of about 85 meters. The zone pinches out both on

the east and west ends of the stripping due to folding. Approximately 88

m's to the southwest, another mineralized zone was uncovered over an

additional 30 m length from about L4+50E-2+10N to L4+20E-2+OON. At this

location, McLellan Long Lac Gold Mines blasted a 2 m by 5 m pit 2 m deep

into a blow out in a quartz-carbonate vein containing some pyrite and

galena.

The main showing consists of a rusty (trace up to S-10% finely

disseminated -ci.O mm diameter, subhedral, brassy pyrite) carbonated shear

zone up to 5.0 meters wide in metabasalt. Between L5+60E-2+40N and

L6+OOE-2+47N the rusty shear zone is 2.5-5.0 m wide. Discontinuous

quartz-carbonate veins from a few mm up to 20-30 cm wide compose an

estimated 2-5% of the zone. The veins frequently have trace to a couple

percent fine disseminated pyrite and at L5+30E-2+40N a 20-cm wide quartz-

carbonate vein has a 1.0 cm wide by 1.0 m long sulfide seam with pyrite,

galena and chalcopyrite. Pyrrhotite clots up to 1.0 cm diameter are

infrequently observed in wider veins. Galena also occurs in the quartz-

carbonate veins exposed by the old blasted pit further to the southwest.

About 50 m's south of the east end of the Main Zone is a 2.5 m wide x 5.0

m long x 2.5 m deep pit blasted by McLellan in the 1930's. A quartz-

carbonate vein with rare coarse dark brown sphalerite is exposed in the

pit and exhibits open folding with subvertical axial planes and axes

plunging about 45" west. The vein is about 2-4 cm wide in the fold limbs

19

and up to 40-50 cm wide in the fold noses.

A total of 99 samples (78 rock sawn channel and 21 grabs) were analyzed

for gold with results ranging between detection limit of ^ ppb up to 0.87

ounces per ton (Table 1) . A total of 44 samples (44%) returned

geochemically-anomalous gold values Ôppb with 29 (29*!;) of these being

> 100 ppb. Several unaltered basalts were sampled and analyzed with all

values below ^ ppb. The best gold values were obtained from the galena

and chalcopyrite-bearing quartz-carbonate vein located in the main zone.

All quartz-carbonate veins in sheared altered basalt were geochemically-

anomalous in gold.

A total of 38 of the above samples were analyzed for multi-element ICP-32

as this was the least expensive accurate method to determine geochemical

contents of copper, zinc and lead, with the added bonus of additional

element analyses (Table 2) . By visual scanning, there appears to be

nothing strongly unusual about these analyses. However, a computer-based

analytical program was not available for this data. Also, 11 samples were

analyzed for platinum and palladium with negative results (Table 1}. In

addition, four samples were geochemically-analyzed for boron with three

results confirming the visually-suspected presence of tourmaline.

Also, in 1994, John Mason, Resident Geologist, Beardmore-Geraldton area,

MNDM, visited the property and collected five grabs from blasted pits T-

2, T-4 and T-8. The gold assay results on these samples are given in

Appendix II and are in line with the WNW Prospecting Syndicate results.

5.2.5c McLellan West Occurrence 1998 Description

The 1998 exploration of the McLellan West Occurrence linked the main area

stripped to the area stripped on the southwest both done in 1994 (Maps l

k 2). Rock exposed consisted of unaltered metabasalt. A trench parallel

to the trench dug north-south on the east end in 1994 was excavated. This

trench was also exposed unaltered metabasalt where visible (this stripping

TABLE 1 : 1994 GOLD RESULTS FOR THE MCLELLAN WEST OCCURRENCE

SAMPLE NUMBER

20201

20202

20203

20204

20205

20206

20207

20208

20209

20212

20210

20211

20213

20214

20215

GOLD (PPb)

108

150

:*10000 ( —— >

840

34

^

32

1030

820

540

^

170

200

30

NOT DONE

SAMPLE LOCATION

BLASTED TRENCH T-1 (Map 2) L6E-2+45N 0.5 KG SAMPLE

BLASTED TRENCH T-1 (Map 2) L6E-2+45N 0.75 KG SAMPLE

BLASTED TRENCH T-3 (Map 2) —— > O.87 OZ./TON ) L5+30E-2+40N

BLASTED TRENCH T-3 (Map2) L5+30E-2+40N

BOULDER (Map 1) L6+67E-2+38N

LOOSE FROM QTZ-CARB. VEIN (Map 2) L5+68E-2+40N

BLASTED TRENCH T-2, SAMPLE 1 (Map 2) L5+83E-2+44N 0.6 KG SAMPLE

AS ABOVE, SAMPLE 2

AS ABOVE, SAMPLE 3

AS ABOVE. SAMPLE 4

BLASTED TRENCH T-4, SAMPLE 1 (Map 2) L5+37E-2+40N

AS ABOVE, SAMPLE 2

BLASTED TRENCH T-5. SAMPLE 1 (Map2)L6*10E-2*48N

AS ABOVE, SAMPLE 2 0.5 KG SAMPLE

GRAB FOR WHOLE ROCK ANALYSIS, WR - 1, L6+05E-1+70N (Map 1)

COMMENTS

FAULT ZONE CUTTING LIGHT GREY QUARTZ CARB. .VEIN WITH 3-7* AN- TO SUBHEDRAL FINELY DISSEMINATED PYRITE LESS THAN 1/2 MM IN DIAMETER. Also geochem for: Pt 5 ppb 8. Pd 2 ppb

FAULT ZONE CUTTING MEDIUM GREEN-GREY SILIC., CARB., FINE GRAINED BASALTIC WALLROCK TO QUARTZ VEIN WITH 10* DISSEM. SUB-EUHEDRAL PYRITE *: 1 MM DIAM. Pt ̂ ppb 4 Pd ^ ppb

20 CM WIDE QUARTZ-GARB. VEIN WITH 1 CM WIDE SULFIDE ZONE WITH 5-8* GALENA, 2-3* CHALCOPYRITE. 0.4 KG SAMPLE Pt ̂ ppb, Pd ^ ppb, boron 1 5 ppm, tin ^ ppm

AS ABOVE BUT WITH 3-5* CHALCOPYRITE AND NO VISIBLE GALENA. 0.75 KG SAMPLE Pt ̂ pb 4 Pd ^ ppb

RUSTED SUB-ROUNDED 15 x 20 x 6 CM QUARTZ-CARB. BOULDER WITH 1-2 * DISSEM. cIMM DIAM. PYRITE, POSSIBLY SOME TOURMALINE(7). O.75 KG SAMPLE Pt < 5 ppb 4 Pd ^ ppb

LOOSE QTZ.-CARB. VEIN ROCK BROKEN LOOSE FROM 25 CM WIDE VEIN BY BACKHOE. 1-3* UP TO 1 CM DIAM BLEBS PYRRHOTITE, -d* TOURMALINE!?). 0.5 KG SAMPLE Pt ̂ ppb 4 Pd ^ ppb

OLD TRENCH, 1993 GRAB SAMPLE 0.08 OZ/TON GOLD, IN 5.0 M WIDE ZONE OF SHEARED, RUSTED CARB. BASALT. SAMPLE 30* QTZ-CARB VEIN, t1* DISSEM. PYRITE. Pt ̂ ppb 4 Pd ^ ppb

AS ABOVE BUT 50* QTZ-CARB. VEIN WITH 5-10* DISSEM. AN- TO SUBHELDRAL PYRITE O MM DIAM. 0.4 KG SAMPLE Pt ̂ ppb 4 Pd ^ ppb

AS ABOVE BUT BANDED WITH 2-4 MM WIDE HIGHLY SILICIFIED WALLROCK OR VEINLETS(?) 0.5 KG SAMPLE ( no Pt or Pd geochem done)

AS ABOVE BUT CUT OUT WITH DIAMOND SAW. 10 - 20 * VERY FINE BANDED ANHEDRAL PYRITE IN A QTZ. - CARB. VEIN. 0.7 KG SAMPLE Pt ̂ ppb 4 Pd ^ ppb

10-15 CM WIDE QTZ- CARB. VEIN WITH 1-2* 5 - 10 MM DIAM. BLEBS OF PYRRHOTITE. 1 .0 KG SAMPLE Pt ̂ ppb 4 Pd ^ ppb

SILICIFIED WALLROCK TO QTZ-CARB. VEIN WITH 2-3 * , *:1 MM DIAM., AN- TO SUBHEDRAL PYRITE. 0.4 KG SAMPLE Pt ̂ ppb A Pd ^ ppb

65* LIGHT-MEDIUM GREY, SILICIFIED AND CARBONATED BASALT WITH 5-10* DISSSEM. AN- TO SUBHEDRAL , *:1 MM DIAM PYRITE. 35* OF SAMPLE IS COARSE WHITE CALCITE. 0.6 KG SAMPLE

60* COARSE, FIBROUS MILKY WHITE TO LIGHT GREY CALCITE WITH UP TO 40* SILICIFIED WALLROCK INCLUSIONS HAVING 1-2* DISSEM. AN- TO SUBHEDRAL PYRITE *:1 MM DIAM.

MEDIUM GRAINED, EQUIGRANULAR, MASSIVE, BLOCKY, MEDIUM TO DARK GREEN GABBRO WITH TRACE OF -: 1 MM DIAM. PYRITE 0.25 KG SAMPLE

32 EL.

X

X

.....

.....

.....

.....

X

X

X

.....

.....

wRM

.....

-"

.....

.....

.....

.....

"-

.....

.....

.....

.....

X

" 32 EL.( 32 element geochem) S, WR( whole rock analysis) : X - done, ..... - not done

-20-

TABLE 1 (continued): 1994 GOLD RESULTS FOR THE MCLELLAN WEST OCCURRENCE

SAMPLE NUMBER

20216

20217

20218

20219

20220

20221

20222

20223

20224

20225

20226

20227

20228

20229

20230

GOLD (PPb)

NOT DONE

NOT DONE

NOT DONE

NOT DONE

165

55

60

805

3000

xlOOOO

MOOOO

NOT DONE

NOT DONE

NOT DONE

NOT DONE

SAMPLE LOCATION

GRAB SAMPLE FOR WHOLE ROCK ANALYSIS, WR-2, L6+25E-0+10S (Map 1)

GRAB SAMPLE FOR WHOLE ROCK ANAYSIS, WR-3, L6+20E-1+10N (Map 1)

GRAB SAMPLE FOR WHOLE ROCK ANALYSIS, WR-4,L5*75E-2*50N(Map1)

GRAB SAMPLE FOR WHOLE ROCK ANALYSIS, WR-5, L5+83E-2+44N (Map 1)

ROCK SAW CHANNEL C-1: 0.0 -0.28 m approx. L4+37E-2+09N (Map 2)

AS ABOVE 0.28-0.48 M

AS ABOVE 0.90-1.10 M ( NOTE: 0.48-0.90 M NOT SAMPLED)

ROCK SAW CHANNEL C-2: 0.00-0.22 M APPROX. L5+30E-2+40N (Map 2)

AS ABOVE 0.22-0.41 M (0.19 M)

AS ABOVE 0.41-0.52 M (0.11 M) ———— ̂ 0.29 OZ7TON )

AS ABOVE 0.52-0.74 M (0.22 M) ———— :*(0.80 OZ/TON)

LDM SHOWING, GRAB FOR WHOLE ROCK ANALYSIS, WR-6, L26E-3+20N

AS ABOVE, WR-7, L26+25E-3+SON

MCLELLAN EAST OCCURRENCE, WR-5, GRAB WHOLE ROCK, L17+50E-4+40N

GRAB SAMPLE FOR WHOLE ROCK ANALYSIS.WR-9, L5+98E-1+93N, (Map 2)

COMMENTS

FINE-GRAINED. MASSIVE, EQUIGRANULAR, MEDIUM GREY TO GREEN BASALT WHICH IS WEAKLY CARBONATED AND MODERATELY HARD. 0.2 KG SAMPLE

AS ABOVE BUT WITH 10*. QTZ.-CARB. VEIN MATERIAL AND WEAK FOLIATION 0.3 KG SAMPLE

MEDIUM GREEN TO GREY, MEDIUM GRAINED, EQUIGRANULAR, MASSIVE, HARD GABBRO 0.2 KG SAMPLE

WALLROCK FROM BLASTED TRENCH T-2, SHEARED, , Vk DISSEMINATED PYRITE, MODERATELY HARD, SOME CARBONATE 0.35 KG SAMPLE

2-3 CM WIDE QUARTZ-CARB. VEIN SECTION (PARALLEL TO STRIKE) WITH UP TO 10^ -: 1 MM DIAM CUBIC GALENA IN 1 - 5 MM WIDE SEAMS WITH SOME CHLORITIC SLIPS 0.8 KG SAMPLE

AS ABOVE WITH UP TO S* GALENA 1 .0 KG SAMPLE

AS ABOVE BUT 1-2-X, GALENA, FREQUENT CHLORITIC SLIPS, SOME RUSTY ROCK WEATHERED TO DIRT. 1.5 KG SAMPLE

20 - 30 CM WIDE QTZ-CARB. VEIN WITH 1 CM WIDE SULFIDE SEAM WITH CHALCOPYRITE, GALENA 4 PYRITE CUT 5 CM WIDE BY 8 CM DEEP ALONG SULFIDE SEAM 5^t GALENA; 0.8 KG SAMPLE

AS ABOVE 1 .0 KG SAMPLE

AS ABOVE 0.6 KG SAMPLE


PILLOWED BASALT FROM SOUTHWEST CORNER OF AREA STRIPPED IN 1992 (Willy, 1992; CB 1 1 85393), FINE-GRAINED, SOFT AND WELL-SHEARED 0.25 KG SAMPLE

WALLROCK IN ARSENOPYRITE 4 PYRITE-BEARING ALTERED ZONE IN AREA STRIPPED IN 1992 0.3 KG SAMPLE

SHEARED BASALT FROM SOUTH SIDE OF PIT #9 FROM AREA STRIPPED IN 1993 (Willy, 1993; CB 1185393) 0.25 KG SAMPLE

SHEARED VERY FINE-GRAINED, MEDIUM GREY-GREEN, EQUIGRANULAR BASALT TAKEN FROM THE NORTH WALL OF THE OLD MCLELLAN TRENCH 0.4 KG SAMPLE

32 EL.

.....

X

X

X

-"

x

x

x

x

-"

"-

x

wR

X

X

X

X

"-

.....

.....

.....

"-

.....

.....

x

x

x

x

-21-

TABLE 1 (continued): 1994 GOLD RESULTS FORTHE MCLELLAN WEST OCCURRENCE

SAMPLE NUMBER

20231

20232

20233

20234

20235

20236

20237

20238

20239

20240

20241

20242

20243

20244

20245

GOLD (ppb)

70

25

15

105

110

540

380

5

630

40

60

40

25

^

125

SAMPLE LOCATION

ROCK SAW CHANNEL C-3: 0.0-0.5 M (0.5 M) approx. L5+82E-2+40N (Map 2)

AS ABOVE. C-3: 0.5-1.0 M (0.5 M)

AS ABOVE. C-3: 1.0-1.5 M (0.5 M)

AS ABOVE. C-3: 1.5-2.0 M (0.5 M)

AS ABOVE. C-3: 2.0-2.5 M (0.5 M)

AS ABOVE. C-3: 2.5-3.0 M (0.5 M)

AS ABOVE. C-3: 3.0-3.5 M (0.5 M)

AS ABOVE. C-3: 3.5-3.82 M (0.32 M)

ROCK SAW CHANNEL C-4: 0.0 - 0.7 M (0.7 M) approx. L5+80E-2+43N (Map 2)


AS ABOVE. C-5: 0.2-0.37 M (0.17M)

AS ABOVE. C-5: 0.37-0.55 M (0.18M)

ROCK SAW CHANNEL C-6A: 0.0-0.5 M (0.5 M) approx. L5+91E-2+43N (Map 2)

AS ABOVE. C-6A: 0.5-1.0 M (0.5 M)

AS ABOVE. C-6A: 1.0-1.35 M (0.35 M)

COMMENTS

SHEARED BASALT (IMMEDIATELY WEST OF T-2), VERY FINE-GRAINED. EQUIGRANULAR, SOFT, HIGHLY CARBONATED, TRACE FINELY DISSEM. PYRITE < 1 MM DIAM 1.8KG SAMPLE

AS ABOVE BUT HARDER AND 10* QUARTZ-CARB. VEINING 2.0 KG SAMPLE


AS ABOVE WITH < 1* FINELY DISSEMINATED, < 1 MM DIAM. PYRITE 1.7 KG SAMPLE

AS 20234 BUT WITH 2-3, 1-2 CM WIDE QUARTZ- VEINS 2.0 KG SAMPLE

AS BEFORE BUT WITH 2-5* FINELY DISSEMINATE ^ MM DIAM AN- TO SUBHEDRAL PYRITE ( 1 M WEST OF T-2 SULFIDE ZONE). 2.5 KG SAMPLE

AS ABOVE WITH 2-5* PYRITE. 1.7 KG SAMPLE

AS ABOVE BUT < 1* PYRITE. 2.0 KG SAMPLE

SAME ALTERED RUSTY BASALT ZONE AS C-3 WITH 4-5 3-10 MM WIDE QTZ-CARB. VEINS. 5- 10* DISSEM. -O MM DIAM PYRITE. 2.5 KG SAMPLE

NORTH SIDE OF ALTERED RUSTY BASALT ZONE (NORTH C-4) SHEARED, SOFT , TRACE PYRITE 0.6 KG SAMPLE

4 CM WIDE QTZ-CARB. VEIN PLUS RUSTY ZONE WITH NO SULFIDES OBSERVED 0.5 KG SAMPLE

SAME AS 20240 0.5 KG SAMPLE

SOUTH SIDE OF ALTERED RUSTY BASALT ZONE AS BEFORE BUT ABOUT 8 M EAST T-2. SHEARED, VERY RUSTY WITH 3-5* DISSEM -:1 MM DIAM AN- TO SUBHED. PYRITE OVER 10 CM 2.0 KG SAMPLE

AS BEFORE WITH 1 - 1.5 * PYRITE 2.8 KG SAMPLE

AS BEFORE BUT < 1* PYRITE 1.9 KG SAMPLE

32 EL.

X

X

X

X

X

X

X

X

.....

--

.....

••-

.....

.....

W R

.....

.....

.....

.....

--

.....

••-

••-

.....

-22-

TABLE 1 (continued): 1994 GOLD RESULTS FORTHE MCLELLAN WEST OCCURRENCE

SAMPLE NUMBER

20246

20247

20248

20249

20250

20251

20252

20253

20254

20255

20256

20257

20258

20259

20260

GOLD (PPb)

115

90

10

10

^

^

^

20

45

60

80

^

*5

^

^

SAMPLE LOCATION


AS ABOVE. C-6B: 0.5-1.0 M (0.5 M)

AS ABOVE. C-6B: 1.0-1.5 M (0.5 M)

AS ABOVE. C-6B: 1.5-2.0 M (0.5M)

AS ABOVE. C-6B: 2.0-2.5 M (0.5 M)

AS ABOVE. C-6B: 2.5-3.0 M (0.5 M)

AS ABOVE. C-6B: 3.0 - 3.5 M (0.5 M)

AS ABOVE. C-6B: 3.5-4.0 M (0.5 M)

AS ABOVE. C-6B: 4.0-4.5 M (0.5 M)

AS ABOVE. C-6B: 4.5-5.0 M (0.5 M)

AS ABOVE. C-6B: 5.0-5.30 M (0.3 M)


AS ABOVE. C-7: 0.5-1.0 M (0.5 M)

AS ABOVE. C-7: 1.0-1 .5 M (0.5 M)

AS ABOVE. C-7: 1.5-2.0 M (0.5 M)

COMMENTS

UNALTERED BASALT WALLROCK SOUTH ALTERED RUSTY ZONE AS PREVIOUS, SHEARED AND SOFT BUT NO CARB OR VISIBLE PYRITE. 1 .5 KG SAMPLE

HALF IN ALTERED RUSTY BASALT ZONE ^M PYRITE 2.0 KG SAMPLE

ALTERED RUSTY BASALT ZONE WITH ^% PYRITE 2.0 KG SAMPLE

AS PREVIOUS WITH ^'X, PYRITE 2.5 KG SAMPLE

AS PREVIOUS 2.5 KG SAMPLE



AS PREVIOUS BUT WITH 1W OF SECTION CONTAINING 0.5-4 CM WIDE QTZ-CARB VEINS 2.5 KG SAMPLE


AS PREVIOUS BUT ALSO WITH 8 CM WIDE QTZ-CARB VEIN 2.5 KG SAMPLE

AS BEFORE BUT WITH 30-40* QTZ-CARB VEINS AND 2-5*. DISSEM ., ^MM DIAM., AN- TO SUBHEDRAL PYRITE. 1.9 KG SAMPLE

BASALT, HIGHLY CARBONATED, SOFT IN DIFFERENT RUSTED ZONE TO SOUTH OF MAIN ZONE A FEW COUPLE MM-1 CM WIDE QTZ-CXARB VEINS 4.0 KG SAMPLE

AS PREVIOUS. 2.0 KG SAMPLE



32 EL.

X

.....

.....

--

.....

.....

.....

.....

.....

.....

.....

X

W R

--

.....

--

.....

.....

.....

.....

.....

.....

.....

.....

-23-


SAMPLE NUMBER

20261

20262

20263

20264

20265

20266

20267

20268

20269

20270

20271

20272

20273

20274

20275

GOLD (Ppb)

^

40

^

30

140

90

40

^

30

60

45

^

^

315

100

SAMPLE LOCATION

AS PREVIOUS. C-7: 2.0-2.6 M (0.6 M)


AS ABOVE. C-8: 0.50-0.77 M (0.27 M)

AS ABOVE. C-8: 0.77-0.92 M (0.15 M)

AS ABOVE. C-8: 0.92-1.42 M (0.5 M)

AS ABOVE. C-8: 1.42-1 .92 M (0.5 M)


AS ABOVE. C-9: 0.28-0.72 M (0.44 M) ALSO WHOLE ROCK ANALYSIS WR -10

AS ABOVE. C-9: 0.72-1.22 M (0.5 M)

AS ABOVE. C-9: 1.22-1.72 M (0.5 M)

AS ABOVE. C-9: 1.72-2.22 M (0.5 M)



AS ABOVE. C-11: 0.28-0.45 M (0.17 M)

AS ABOVE. C-11: 0.45-0.95 M (0.5 M)

COMMENTS


MAIN ALTERED RUSTY BASALT ZONE ABOUT 5 M EAST OF C-6B WITH 10* 0.5-2 CM WIDE QTZ-CARB VEINS. 2-5* DISSEM. PYRITE. 3.0 KG SAMPLE

ALTERED BASALT INCLUSION NO VISIBLE SULFIDES NO QTZ-CARB VEINS. 1.7 KG SAMPLE

AS 20262 WITH 3-8* DISSEM, -d MM DIAM, AN- TO SUBHEDRAL PYRITE. 1.8 KG SAMPLE

AS PREVIOUS BUT WITH 1-2* PYRITE. 2,0 KG SAMPLE

AS PREVIOUS BUT WITH 2-5* PYRITE. 2.0 KG SAMPLE

ALTERED RUSTY BASALT ZONE ABOUT 5 M EAST OF C-8 WITH TRACE- 1* DISSEM. PYRITE. 1.8 KG SAMPLE

HIGHLY CARBONATED, SOFT ALTERED WALLROCK (BASALT) TO QTZ.-CARB. VEIN. 1.5 KG SAMPLE

QUARTZ-GARB. VEIN WITH 1* PYRITE 2.0 KG SAMPLE

LIKE 20267 WITH 1 * PYRITE. 2.0 KG SAMPLE

AS PREVIOUS BUT WITH 2-3* PYRITE. 3.0 KG SAMPLE

DIFFERENT RUSTY, ALTERED BASALT ZONE, SOFT, HIGHLY CARBONATED, 5M SOUTHEAST OF C-9 4 T-1, 5-10* 3-10 MM WIDE QTZ-CARB. VEINS. 2.0 KG SAMPLE

MAIN ALTERED RUSTY BASALT ZONE 10 M WEST OF T-2, SHEARED WALLROCK (NOT RUSTY), SOFT, CARBONATED, FINE-GRAINED, EQUIG.JRACE PYRITE. 1 .4 KG SAMPLE

QUARTZ-CARB. VEIN WITH TRACE PYRITE. 0.6 KG SAMPLE

RUSTY ALTERED BASALT ZONE WITH 10* 2 MM-3.5 CM WIDE QTZ.-CARB. VEINS WITH TRACE- 1* PYRITE, SOMEWHAT HARDER THAN 20273. 2.3 KG SAMPLE

32 EL.

--

.....

.....

.....

.....

.....

X

X

X

.....

wR

...,.

...,.

.....

.....

...,.

.....

X

...,.

...,.

.....

.....

-24-


SAMPLE NUMBER

20276

20277

20278

20279

20280

20281

20282

20283

20284

20285

20286

20287

20288

20289

20290

GOLD (PPb)

55

270

10

15

50

930

30

10

10

^

10

20

50

40

15

SAMPLE LOCATION

AS BEFORE. C-11: 0.95-1 .45 M (0.5 M)

AS ABOVE. C-11: 1.45-2.00 M (0.55 M)

AS ABOVE. C-11: 2.0-2.20 M (0.2 M)


AS ABOVE. C-12: 0.5-0.75 M (0.25 M)

AS ABOVE. C-12: 0.75-1 .30 M (0.55 M)


AS ABOVE. C-13: 0.7-0.85 M (0.15 M)

AS ABOVE. C-13: 0.85-1 .20 M (0.35 M)


AS ABOVE. C-14: 0.38-0.80 M (0.52 M)

ROCK SAW CHANNEL C-1 5: 0.0-0.35 M (0.35 M) approx. L5+34E-2+39N (Map 2)

AS ABOVE. C-1 5: 0.35-0.58 M (0.23 M)

AS ABOVE. C-1 5: 0.58-1.08 M (0.50 M)

AS ABOVE. C-1 5: 1.08-1.50 M (0.42 M)

COMMENTS

AS PREVIOUS WITH TRACE- W PYRITE. 4.0 KG SAMPLE

AS PREVIOUS BUT WITH UP TO 2-3* PYRITE OVER 3 CM SECTION. 3.9 KG SAMPLE

AS PREVIOUS WITH TRACE PYRITE. 1.3 KG SAMPLE

ALTERED RUSTY BASALT ZONE 10 M WEST OF C-11 WITH 25* 2 MM-5 CM WIDE QTZ-CARB. VEINS. 1.0 KG SAMPLE

QTZ.-CARB. VEIN. 1.5 KG SAMPLE

AS 20279 BUT WITH 15* 2 MM- 4 CM WIDE QTZ.-CARB. VEINS AND TRACE PYRITE. 1.8 KG SAMPLE

ALTERED RUSTY BASALT ZONE ABOUT 10 M WEST OF C-12 WITH 15* QTZ.-CARB. VEINS A COUPLE UP TO 3 CM WIDE. 2.0 KG SAMPLE

QTZ.-CARB. VEIN WITH SOME TOURMALINE. GEOCHEM FOR B (boron) 1 45 ppm 1.1 KG SAMPLE

ALTERED RUSTY BASALT ZONE. 1.5 KG SAMPLE

QTZ. CARB. VEIN WITH 10* BLACK, ANHEDRAL TOURMALINE UP TO COUPLE CM DIAM. IN RUSTY ALTERED ZONE 12 M WEST C-13. 0.6 KG SAMPLE GEOCHEM FOR B (boron) 310 ppm

RUSTY ALTERED BASALT SHEAR ZONE WITH 1-2* COUPLE MM WIDE QTZ.-CARB. VEINS. 1.5 KG SAMPLE

RUSTY ALTERED BASALT ZONE 10 M WEST OF C-14 WITH A COUPLE QTZ.-CARB. VEINS A COUPLE MM'SWIDE,1*DISSEM PYRITE. 1.5 KG SAMPLE

QTZ.-CARB. VEIN. 1.0 KG SAMPLE

LIKE 20287 WITH 3-5* QTZ.-CARB. VEINS UP TO 1 .5 CM WIDE 1.2 KG SAMPLE

LIKE 20289 0.5 KG SAMPLE

32 EL.

.....

X

X

X

x

x

.....

x

•—

.....

x

wR

.....

.....

.....

.....

.....

.....

.....

.....

...,.

.....

.....

.....

-25-


SAMPLE NUMBER

20291

20292

20293

20294

20295

20296

20297

20298

20299

20300

20401

20402

20403

20404

20405

GOLD (ppb)

70

270

20

35

35

^

95

55

35

215

^

^

^

^

^

SAMPLE LOCATION


AS ABOVE. C-16: 0.40-0.80 M (0.4 M)




AS ABOVE. C-19: 0.27-0.44 M (0.17 M)

AS ABOVE. C-19: 0.44-0.56 M (0.12 M)

AS ABOVE. C-19: 0.56-0.70 M (0.14 M)


ROCK SAW CHANNEL C-21 : 0.0-0.24 M (0.24 M) approx. L4+29E-2+10N (Map 2)

ROCK SAW CHANNEL C-22: 0.0-0.4 M (0.4 M) approx. L4+29E-2+11 N (Map 2)

WHOLE ROCK ANALYSIS WR-11 L4+30E-2+OON (Map1)

WHOLE ROCK ANALYSIS WR-12 L4+21E-2+02N (Map 1)

WHOLE ROCK ANALYSIS WR-13 L4+20E-2+03N (Map 1)

GRAB SAMPLE G-1 OLD MCLELLAN TRENCH approx. L5+97E-1+90N (Map 2)

COMMENTS

RUSTED ZONE WITH HALF QTZ-CARB. VEIN ON EAST SIDE OLD MCLELLAN BLASTED PIT WITH TRACE CHALCOPYRITE, TRACE PYRRHOTITE, "Mil PY, TRACE GALENA. 2.5 KG SAMPLE

RUSTED ZONE WITH IS-20% QTZ.-CARB. VEIN LIKE PREVIOUS SAMPLE. 2.5 KG SAMPLE

1.0 M EAST C-1 WHERE GALENA IS IN QTZ.-CARB. VEIN. VEIN HERE IS 2 CM WIDE WITH NO GALENA.. 1.0 KG SAMPLE

1.0 M EAST OF ABOVE SAMPLE IN SAME QTZ.-CARB. VEIN WITH NO GALENA. 1.4 KG SAMPLE

ABOUT 5 M EAST OF C-16 ON SAME QTZ.-CARB. VEIN IN RUSTY SHEAR ZONE. VEIN HERE IS 1.0 CM WIDE. 1.0 KG SAMPLE

HIGHLY ALTERED, HIGHLY CARBONATED SOFT ROCK (BASALT ?). 1.5 KG SAMPLE

QUARTZ-CARB. VEIN POSSIBLY TRACE BLACK ANHEDRAL TOURMALINE. GEOCHEM FOR B (boron) 10ppm 1.0 KG SAMPLE

ALTERED BASALTIC WALLROCK (LITTLE RUST) TO PREVIOUS QTZ.-CARB. VEIN 1.0 KG SAMPLE

5 CM QTZ.-CARB. VEIN AND BASALTIC WALLROCK. ABOUT 1.0 M WEST OF C-1 AND SAME VEIN WITH GALENA BUT NONE NOTICED AT THIS CHANNEL. 0.6 KG SAMPLE

RUSTY SHEAR IN BASALT ABOUT 1.0 M WEST OF C-20 WITH 1-2* FINELY DISSEM. -:1 MM DIAM AN- TO SUBHEDRAL PYRITE WITH 1 0* QTZ.-CARB. STRINGERS. 1.0 KG SAMPLE

PILLOW BASALT WITH S-10% QTZ.-CARB. STRINGERS. SAMPLE LOCATED 1.0 M NORTH OF C-21. 1.0 KG SAMPLE

HIGHLY ALTERED BASALT / GABBRO(7), MEDIUM-DARK GREEN, ROTTED ROCK. 3M SOUTH OLD MCLELLAN BLASTED TRENCH. 0.25 KG SAMPLE

SHEARED BASALT ABOUT 5 M NORTHWEST OF WR-11. 0.70 KG SAMPLE

UNALTERED PILLOW BASALT ABOUT 1.5 M NORTH OF WR-12. 0.3 KG SAMPLE

GRAB FROM FOLDED QTZ.-CARB. VEIN FROM ABOUT 2 CM TO 20 CM WIDE. 1.0 KG SAMPLE

32 EL.

•—

X

•—

.....

.....

X

.....

x

•—

.....

x

x

wR

.....

.....

•—

.....

•—

.....

.....

.....

.....

X

x

x

-"

-26-


SAMPLE NUMBER

20406

20407

20408

GOLD (PPb)

35

280

20

SAMPLE LOCATION

AS PREVIOUS G-2

AS ABOVE G-3

AS ABOVE G-4

COMMENTS

AS PREVIOUS. O.5KG SAMPLE



32 EL.

X

.....

W R

.....

--

.....

-27-

l l l l l l l l f l I l I l l l l l l

TABLE 2: 32 ELEMENT ANALYSIS and GOLD RESULTS FOR THE MCLELLAN WEST OCCURRENCE-1994 "-28-

'mmjftSiis•mmK

sUffK;

mn[^jjji^ri^. *ipit^hPSISHS"KIftoit

IK,MB*'-V•fii.';-ns-i:-f V-J&.-P ,''-!-'-J:;^-"-r

iH;V'.S: i* 1- }v,'*v :/

HP!1*11

•:ij**aiP^ OTJ^tf?.V.^î-T--^-'--- 1-wan'"'mti^rffi"'':^WWP|^

•5-vv -': ^^;twpIttiSHil

anS*ilpwK||ii|

J828B;T;;TT^-^;^.. .

lît^jjjjftfefc^

™*xm

™"202*2

iJStH?

2WOO

20484

20*09

'fZsWrf

z'na&t

mm ^H108

150

15

170

540

200

N/A

N/A

185

80S

(0.08)

(0.2*)

(OJO)

N/A

70

25

15

105

110

540

380

S

115

15

80

15

315

15

50

830

30

10

15

40

270

89

215

15

15

280

158.3

ifcfc1 *S'''.w:^ssaPBM

10J

10.2

KU

iU

M

HU

10.2

KU

283

43*

3.00

83

183

10J

10.2

2.7

10.2

tO.2

10J

0.02

0.3

103

102

10.2

10.2

10.2

0.3

*t2

10.2

0.3

10.2

10.2

•cfl.2

10.2

10.2

04

10.2

10J

•cfl.2

10.2

1.88

ifii 'mm--.y-???:'--?"-

iiÎ?^.^.

0.1*

1.27

0.18

0.38

0.18

0.24

2.17

1.75

0.93

0.08

0.08

0.1*

0.10

4.15

340

2.1*

2JB

1.58

148

1.82

1.12

2.72

331

1.83

2J*

2J8

048

1.13

0.32

0.83

1.28

04*

0.3*

2.58

1.88

2.24

347

3.78

1.23

1.51

1.5

^: .:,"V^-.

ifcBfcW;:'" •••5,7^!*;^-.;;

22

2

12

12

28

24

18

12

44

2

8

48

48

40

20

8

12

12

12

2

4

12

12

28

8

8

14

4

4

20

12

12

2

8

12

32

10

4

S

12

11.95

*ifl;

HI

110

10

110

20

110

30

110

20

10

110

no

10

110

110

80

50

40

40

80

30

30

20

10

20

30

50

30

50

10

40

40

30

30

70

SO

150

80

110

30

40

33

it'.-•.'.''•JiiM"

•cO.5

103

10.5

10.5

10.5

10.5

10.5

10.5

10.5

103

103

103

103

103

103

103

103

103

103

103

103

103

103

103

103

103

103

103

103

103

103

103

10.5

103

10.5

10.5

103

103

103

103

03

iiitffta

12

12

i2

12

12

12

4

12

12

2

12

2

8

i2

12

12

12

12

12

12

12

12

12

12

12

12

12

12

12

12

12

12

12

12

12

12

12

12

12

12

24

iWIfill!XI5.0

12.35

438

8.0*

8.74

13.35

0.70

5.08

H5.0

3.21

2.81

133

038

438

4.17

430

4.72

531

3.33

2.74

3.80

342

3.22

IM

534

434

43*

34*

1.6*

532

5.83

5.58

5.2*

43*

7.1*

731

3.72

5.85

833

8.1

5.755

pill! fffit^B

1.03

103

103

03

10.5

10.5

103

103

7.7

03

23

1.2

2.1

103

103

103

103

103

103

103

103

103

103

103

10.5

103

10.5

103

10.5

10.5

103

103

103

103

10.5

103

103

10.5

10.5

103

0.785

*B8BS'mm Hsasasi*41

15

2*

S*

35

28

31

11

18

18

45

48

31

3*

3*

37

35

41

41

42

38

34

37

35

35

23

27

10

45

31

17

18

33

31

28

34

34

11

25

31.28

sit; lpg25

44

88

50

33

20

32

25

58

1*3

208

1*5

1*8

37

85

51

44

31

62

•8

4*

2*

5*

28

22

38

80

124

178

7*

44

114

174

43

41

as

80

43

n

122

7433

isttfc*HI6

8

51

28

24

8

85

75

28

1430

933

652

2370

63

85

78

88

(7

77

62

81

75

M

re

40

82

13

15

7

70

5*

48

50

70

53

37

63

53

10

30

1804

ifiaSft.WR'fei'^W'

liliff!!ifi!f~

230

4.72

2.72

4.73

53*

437

33*

532

131

147

130

330

4.19

8JB

631

63*

6.23

531

837

7.15

831

7.08

830

8.10

848

8.14

430

4.77

133

74*

5.24

3.34

23*

537

4.99

431

*45

534

1.94

338

4.84*

lift

HBte110

no

110

110

110

110

110

110

110

110

no

118

no

10

110

110

no

110

116

110

110

110

10

110

110

110

110

110

110

110

no

110

110

no

no

no

no

110

110

110

iSSiffl;f**V~;.'.V•ste fiifpftnnnnnn11nnnnnii11nnnnnnnnnnnnnn11nnnnnnnnnnn

0.02

0.1*

03*

0,21

03*

0.11

0.01

0.17

032

0.01

0.03

03*

0.02

10.01

0.11

0.21

0.2*

0.22

0.22

0.14

Oil

0.21

0.03

0.23

034

0.22

0.22

0.25

0.10

0.35

0.32

034

0.13

044

0.77

134

0.1*

0.03

0.17

0.18

0.205

HHm110

110

110

110

110

110

110

110

110

110

no

110

110

110

no

no

110

no

110

110

110

110

no

110

110

no

110

110

110

no

110

no

110

no

110

110

110

110

no

no

10

Sill!* ^;c^~ iIWSKis:fiSBgj:035

038

145

234

131

148

137

2.71

038

031

0.24

030

0.22

348

3.08

ut

233

233

1.30

131

131

230

23*

1.88

3.14

230

1.85

1.10

0.27

1.78

230

1.83

034

3.07

232

2.55

2.95

3.15

1.3*

1.73

1357

iip

1330

44*

•55

1050

102S

1035

520

1135

2420

205

220

250

150

870

1215

1235

1070

1229

1475

875

1320

1310

850

1235

825

1088

MS

1040

320

1270

103S

750

700

1075

1045

1030

835

MS

80S

7*5

145.3

Hi!Ill-Elf

1

11

4

5

25

3

11

11

i1

2

3

1

1

11

11

11

11

11

11

li

11

n

n

11

11

11

n

11

n

11

11

11

1

11

n

n

11

11

n

11

13

fill

0.01

0.01

0.01

0.01

0.01

033

0.02

0.01

031

10.01

0.01

0.01

1*31

0.01

031

0.02

0.01

0.02

0.03

034

033

0.81

0.02

0.01

0.01

10.01

031

031

1031

0.01

0.01

0.02

0.02

0.01

0.01

032

0.03

0.02

10.01

10.01

0.015

^••^^*,metfsAm1125

1*

33

42

21

23

25

10

23

2*

55

72

31

St

47

4*

45

48

51

SO

37

44

47

35

42

41

32

13

41

38

25

K

40

34

28

3*

37

26

32

35.28

SiWiiS"W WJK?H)Vmmei:-

688

170

240

1*0

700

380

300

250

140

50

80

•O

30

280

1*0

200

200

200

220

200

220

230

180

220

200

180

220

120

70

210

180

200

350

1*0

110

170

140

180

310

430

2584

Hi!

14

O

34

12

32

78

6

8

"10K

2140

1350

8870

*10K

4

46

30

12

12

2

20

16

12

12

12

12

4

142

6

S

4

12

2

42

4

2

246

2

12

12

12

22.23

Hill12

12

2

12

12

12

4

6

26

6

24

6

20

4

2

12

i2

12

i2

12

12

12

12

12

12

12

12

12

12

12

12

12

12

12

12

12

12

12

12

12

4

Siltl Sfj*i6

6

3

4

4

8

2

7

11

1

1

2

1

32

14

11

9

10

11

14

11

12

2*

8

10

11

S

7

2

6

7

6

4

12

13

17

14

25

6

8

(.125

sif!IffRS

tao

82

131

200

1W

455

17

100

32*

M

M

42

K

82

(1

73

78

100

•1

W

*7

M

M

40

100

80

107

88

38

131

12*

14S

141

104

170

144

48

72

1*7

118

128.8

jjgiifK

41.01

tO.01

10.01

0.01

10.01

10.01

0.24

0.01

10.01

•3.01

10.01

10.01

10.01

0.02

0.02

0.02

0.02

0.02

0.03

0.01

0.01

0.02

0.03

10.01

0.02

0.01

0.01

10.01

10.01

10.01

0.02

0.02

0.01

0.04

0.0*

0.14

0.18

O.OS

0.01

10.01

0.03

irftif

110

110

110

110

110

110

no

110

110

110

110

110

110

no

110

no

110

110

110

110

110

110

110

110

110

110

110

110

110

110

110

110

110

i10

110

110

110

110

110

no

10

fttfilfin110

110

110

no

no

110

110

no

110

no

110

110

110

110

no

110

no

110

110

110

110

110

110

110

no

110

110

110

110

no

no

no

110

110

110

no

110

no

no

110

1.75

fevS. g**!;

3

14

7

1*

8

13

72

47

25

3

s

13

4

1*4

M

84

52

47

51

73

41

71

183

43

58

85

13

22

8

18

32

21

15

71

75

88

93

183

25

43

48.03

:i'WAv;fc; t^SÛ

110

10

110

20

20

110

10

20

110

110

HO

110

no

20

no

110

110

110

110

110

110

110

110

no

110

no

110

no

110

110

110

110

no

110

no

110

no

110

no

110

11

iSKip (•fll- •-..'•^•"'f "

10

8

28

48

28

22

42

88

20

48

1(2

84

M

72

82

82

82

78

74

80

80

80

82

48

114

02

88

34

18

54

80

38

24

78

50

44

78

78

28

32

803

FOR SAMPLE NUMBER LOCATIONS AND DESCRIPTIONS SEE TABLE 1

29

was not washed off).

The sulfidized quartz-carbonate vein exposed in 1994 on the west of the

stripping was blasted and 10 approximately 0.25 to 0.50 kg samples were

selected of this sulfide-bearing freshly blasted rock. The gold assay

results ranged from 510 ppb up to a high of 1.09 ounces gold per ton which

confirms the 1994 assay results. The results appear in Appendix II.

6.0 WHOLE ROCK ANALYSIS (1994)

A total of 13 samples was collected for whole rock analysis in 1994 with

10 from the McLellan West occurrence, two from the LDM occurrence and one

from the McLellan East occurrence (Appendix II). No major differences

were noted except that K2O appears to increase up to 12 times its average

in highly altered zones.

7.0 CONCLUSIONS AND RECOMMENDATIONS

The Dionne Lake property is concluded to warrant additional prospecting

due to the following reasons:

a.) Significant gold assays of UP to 1.09 ounces per ton exist for

samples taken from a quartz-carbonate vein bearing galena,

chalcopyrite and pyrite at the McLellan West occurrence.

b.) Geochemicallv-anomalous gold values have been obtained at

widespread locations across the property from samples of

altered metabasalt bordering quartz-carbonate veins.

c.) The Dionne Lake gold property is located in a favourable

geological setting' for hosting gold deposits, which is

believed to be similar to that hosting the Brookbank gold

deposi t . This setting is located at a regional faulted

(Burrows River fault) contact zone between the Northern

Metasedimentary and Central Metavolcanic Sub-Belts. The

30

Brookbank gold deposit is about 60 km west on what is believed

to be the same horizon and the Hutchison Mine is located

approximately 3 km east. In the property region, this under

explored horizon has had little subsurface exploration as it

is extensively covered by glacio-fluvial deposits.

d.) A favourable structural complexity is provided to the property

geology bv open folding similar to that found at the Geraldton

gold mining camp to the south. Tracing gold zones for more

than a few 10's of meters on the surface is not possible due

to the fold axes plunging at moderate angles both east and

west within subvertical axial planes. This is particularly

evident at the LDM and McLellan West gold occurrences where

zones pinch-out in 50 to 100 meters due this folding.

e.) Faulting and widespread alteration (favourable indicators for

gold zones) has been Interpreted from the magnetics by Woolham

(1992 i 1993) for the area surrounding the McLellan west

occurrence and for several other untested areas of the claim

group. Northwest faulting is confirmed by minor faults

exposed by stripping operations at McLellan West.

The following work is recommended for the Dionne Lake property:

Phase one exploration - surface exploration

a.) Reestablish the old Noranda grid.

b.) Try the "Enzyme Leach" geochemical analytical method offered

by Activation Laboratories for soil samples over selected

overburden covered geophysical targets.

c.) Conduct an induced polarization survey over selected areas on

the grid.

31

d.) Continue bulldozer and backhoe stripping combined with outcrop

rock saw channel sampling and grab sampling blasted areas.

e.) Geological map the entire grid and any newly stripped areas.

Phase two exploration - diamond drilling

a.) Diamond drill 3,000 meters (NQ core) at McLellan West, Central

and East and at LDM and at selected geophysical targets.

32

8.0 BUDGET PROPOSALS

Phase one exp.Zoration - Surface work

a.) Wages: Geologist: - field preparation/travel, 7 days @ S5357day- field work, 45 days @ 553 5 ./day- report/map preparation 15 days @ S5357day

Assistant: - field/travel 40 days @ S2757day

b.) Food/accommodation: -1 man x 40 days x SlOO./day-1 man x 48 days x SlOO./day

c.) Equipment rental and supplies: - field supplies- track rental about 7 weeks- gas for track

d.) Contractor Services:

e.) Analytical Cost:

f.) Other Expenses:

- line cutting : 40 km @ S450. l'km- induced polarization survey: 20 km @ S1500.- backhoe/cat: 100 hours x S75Air x 2- blasting- washing outcrop: 10 days @ SSOO./day

- "Enzyme Leach" soil sampling: 1000 samples @ S227sample 200 gold assays @ S20âmple l O petrographic analysis @ S150/sample 20 whole rock analysis @ S307sample Miscellaneous

- telephone- freight- drafting- typing/printing reports

S 3,745.24,075.8,025.

11.000.

S 4,000. 4.800.

S 2,000.3,500.

600.

S 18,000.30,000.15,000.2,500.5.000.

S 22,000.4,000.1,500.

600.

1.000.

S 500. 1,500. 2,500. 1.000.

Subtotal

S 46,845.

8,800.

6,100.

70,500.

29,100.

g.) Management Overheads @ 15"Xo

5.500.S 166,845.

25.027.

Total S 191.872.

33

Phase Two Exploration - Diamond Drilling:

a.) Wages: Geologist: - field preparation/travel, 7 days @ S5357day- field work, 55 days @ S5357day- report/map preparation 20 days @ S5357day

Assistant: - field/travel 50 days @ S2757day

b.) Food/accommodation: -1 man x 50 days x SlOO./day- l man x 58 days x SlOO./day

c.) Equipment rental and supplies:

d.) Contractor Services:

e.) Analytical Cost:

f.) Other Expenses:

- field supplies- core shack, core racks, generator- truck rental for about 7 weeks- gas for truck

carpenter/ helper core shack construction- drill mobilization/demobilization cost- 3000 meters NQ core @ SSS/meter

500 gold assays @ S207sample 20 petrographic analysis @ SI50/sample 30 whole rock analysis @ S307sample Miscellaneous (30 element, etc)

- telephone-freight- drafting- typing/printing reports

g.) Management Overheads @ 10%

S 3,745.

29,425.

10,700.

13.750.

S 5,000.

5.800.

S 2,000.

7 ,500.

4,500.

800.

S 5,000.

5,000.

255.000.

s 10,000.3,000.

900.2.500.

S 900. 2,500. 6,500. 2.500.

Subtotal

Total

S 57,620.

10,800.

14,800.

265,000.

16,400.

12.400.

S 377,020.

37.702.

S 414.722.

Respectfully submitted,

Allan J. Willy, P.Eng./ Toronto, Oritario January 15, 1999

34

REFERENCES AND BIBLIOGRAPHY

Beakhouse, G. P. (1989) Geology of the Grenville Lake Area, District

of Thunder Bay. Ont. Geol. Surv. Rep. 246, 75p.,

l col map scale 1:31,680.

Cluff, G. R. (1987) Noranda Exploration Company, Limited, Report on

Geophysical Surveys, Fulford Property, NTS 42 E/14

and 15, Northwestern Ontario Division. 3p, 4

uncol. maps, scale 1:5,000. Ont. Geol. Surv.

Assessment file no. 2.10143, Treptow Lake Area.

Kruse, R. (1986) Map scale 1:5000 Humus Geochemistry,

Mimiska/Novex Joint Venture. Ont. Geol. Surv.

Assessment file no. 2.9990, Treptow Lake Area.

Macdonald, R. D. (1943) Geology of the Hutchison Lake Area; Ont. Dept. of

Mines, Ann. Rept. for 1941, Vol. 50, Part 3, p. l

- 21. Accomp. by col map 50f, scale 1:63,360.

Mason, J. K. and

White, G. D. (1986)

Gold occurrences, prospects and deposits of the

Beardmore - Geraldton area, Districts of Thunder

Bay and Cochrane; Ont. Geol. Surv., Open File

Rept. 5630, 680 p. (2 vols.).

(1993) Beardmore-Geraldton Resident Geologist's District-

1992. In Report of Activities 1992 Resident

Geologists. Edited by K.G. Fenwick, J.W. Newsome

and A.E. Pitts. Ont. Geol. Surv. Misc. Paper 161,

p. 106.



Geologists. Edited by C.L. Baker, B.O. Dressler,

J.K. Mason and J.W. Newsome. Ont. Geol. Surv.

Open File Rep. 5892, p. 9.



35

Geologists. Edited by C.L. Baker, B.O. Dressler,

D.G. Laderoute and J.W. Newsome. Ont. Geol. Surv.

Open File Rep. 5921, p. 3 i 11.



Geologists. Edited by C.L. Baker, J.A. Fyon, D.

Laderoute and J.W. Newsome. Ont. Geol. Surv.

Open File Rep. 5943, p. 3.

(1997) Article Number l Beardmore-Geraldton Resident

Geologist's District-1996. In Report of

Activities 1996 Resident Geologists. Edited by

J.W. Newsome and D. Laderoute. Ont. Geol. Surv.

Open File Rep. 5958, p. 1-1.

Mason, J.K., Seim, G.

White, G.D. and Bath, C.

(1998)

Report of Activities, 1997, Resident Geologist

Program. Thunder Bay North Regional Resident

Geologist's Report: Thunder Bay North-Sioux

Lookout Districts. Ontario Geological Survey,

Open File Rep. 5970, 56p.

McDonough, B. (1988) Noranda Exploration Company, Limited, Report on

Diamond Drilling 1987, Fulford Option, NTS 42

E/14, Northwestern Ontario Division. Ont. Geol.

Surv. Assessment file, Treptow Lake # 16.

The Northern Miner (1998) Ontex to Merge with Fortune subsidiary by James

Whyte. Vol. 84 No. 36, November 2-8, 1998, pages

l and 14.

Woolham, R. W. (1992) Report on Magnetic Results, OPAP Project no. 2,

Dionne Lake Property, Fulford Township, NTS 42

E14/15. (OPAP submission)

(1993) Geophysics: Magnetic Interpretation, Dionne

Lake Property. IN this report as Appendix III.

2p.

Willy, A. J. (1992)

36

Prospecting Report, OPAP Project Area Number 2,

Dionne Lake Property, Fulford Township, Beardmore-

Geraldton Area, Thunder Bay Mining Division,

Northwestern Ontario, Canada. 28 p., l unco map.

Submitted to Ontario MNDM Incentive Office and

assessment office and filed with the Assessment

Branch of the MNDM.

(1993) OPAP Prospecting Report, Dionne Lake Gold

Property, Fulford Township, Beardmore-Geraldton

Area, Thunder Bay Mining Division, Northwestern

Ontario, Canada. 30 p., 2 unco maps. Submitted

to Ontario MNDM Incentive Office and filed with

the Assessment Branch of the Ontario MNDM.

(1994) 1994 OPAP Prospecting Report, Dionne Lake Gold

Property, Fulford Township, Beardmore-Geraldton

Area, Thunder Bay Mining Division, Northwestern

Ontario, Canada. 32 p., 2 unco. Maps. Submitted to

Ontario MNDM Incentive Office and filed with the

Assessment Branch of the Ontario MNDM.

37

CERTIFICATE OF QUALIFICATIONS

I, Allan James Willy, of 3 Endean Avenue, Toronto, Ontario, M4M 1W5 hereby certify that:

1.) I am a geologist, the President of Patricia Exploration Services Ltd. and the sole proprietor of Ayjay Minerals Company, both involved with mineral exploration and with exploration consulting and contracting services. I am also the Manager of the Blue Chip Prospecting Syndicate and Manager of the WNW Prospecting Syndicate since its inception in 1992.

2.) I am a graduate of the University of Saskatchewan, Saskatoon, Saskatchewan, holding a Bachelor of Science Degree (1972), a Bachelor of Science Advanced Certificate (1973) and a Postgraduate Diploma (1976) all in the field of geological science.

3.) I am an engineer licensed to practice in Ontario through the Professional Engineers of Ontario.

4.) I am a member of the Association of Professional Engineers of Saskatchewan.

5.) I am a Fellow of the Geological Association of Canada and a member of its Mineral Deposits Section.

6.) I hold memberships in the Prospectors and Developers Association of Canada, the Porcupine Prospectors and Developers Association, the Northern Prospectors Association, the Northwestern Ontario Prospector's Association and the Canadian Institute of Mining and Metallurgy, of which I am also a member of its Exploration Geology Section.

7.) I have practiced my profession as a mineral exploration geologist for more than 25 years with various mining companies, and as an independent consultant, contractor and prospector, in Canada and the U.S.A.

8.) I was personally involved in the prospecting work of the Dionne Lake Property and wrote the report.

9.) I consent to the use of this report for assessment credits.

A^Tan J. W^lly, P.Erfg. Toronto,''Ontario January 15, 1999

38

APPENDIX I - PERSONNEL

1) WNW PROSPECTING SYNDICATE, TORONTO, ONTARIO

Allan J. Willy, P. Eng. Toronto, Ontario

Manager, Prospector, Geologist

September 21, 28 S 29, 1998 travels

September 22-27, 1998 fields work

November 10 - 12, 1998-report and map preparation

2) Fred Checkley, Beardmore, Ont., Owner, backhoe operator.

September 23-27, 1998

3) Nolan Cox, Contractor, Beardmore, Ontario

Ted Cox and Dan Cox, outcrop washing, Sept. 26 S 27, 1998

4) lan McNeill, Geraldton, Ontario, blasting, Sept. 26-27, 1998

5) Summary:

Geologist (field 6 days and report 3.5 days^9.5 person days

backhoe operator - l operator @ 5 days = 5 person days

hydraulic stripping - 2 operators @ 2 days = 4 person days

blasting - l operator @ 2 days = 2 person days

Total 20.5 person days

39

APPENDIX II - ASSAY CERTIFICATES

)

Chemex Labs Ltd.Analytical Chemists* Geocnemists" Registered Assayers

5175 Timberlea Blvd., Mississauga Ontario, Canada L4W2S3 PHONE: 905-624-2806 FAX: 905-624-6163

To: WNW PROSPECTING SYNDICATE

3 EN DEAN AVE. TORONTO, ON M4M 1W5

Comments: ATTN: ALLAN WILLY

A9833141

CERTIFICATE A9833141

(KIX ) - WNW PROSPECTING SYNDICATE

Project: DIONNE LAKE P.O. # :

Sanplas submitted to our lab in Mississauga, ON. This report was printed on 16-OCT-1998.

SAMPLE PREPARATION

CHEMEXCODE

205226

NUMBERSAMPLES

1010

DESCRIPTION

Qaochmn ring to approx 150 mash0-3 Kg crush and split

ANALYTICAL PROCEDURES

CHEMEX CODE

NUMBER SAMPLES

494997

10 l

DESCRIPTION METHODDETECTION

LIMIT

Au g/ts TUB* 30 g sa Au g/ti l assay ton. grav.

FA-AASFA-ORAVT METRIC

0.0050.07

UPPER LIMIT

10.001000.0

Chemex Labs LtdAnalytical Chemists * Geochemlsts " Registered Assayers212 Brooksbank Ave., North Vancouver British Columbia, Canada V7J 2C1 PHONE: 604-984-0221

! l l l lTo: WNW PROSPECTING SYNDICATE

3 ENDEAN AVE. TORONTO, ON M4M 1W5

INVOICE NUMBER 19833141

BILLING INFORMATION

Date: 16-OCT-98 Project: DIONNE LAKE P.O. No.: Account: KIX

Comments:

Billing: For analysis performed on Certificate A9833141

Terms: Payment due on receipt of invoice 1.250Xo per month (150Xo per annum) charged on overdue accounts

Please Remit Payments to:

CHEMEX LABS LTD. 212 Brooksbank Ave., North Vancouver, B.C. Canada V7J 2C1

# OF ANALYSED FOR SAMPLES CODE - DESCRIPTION

UNIT PRICE

SAMPLE PRICE

205 - Geochem ring to approx 150 mesh 226 - 0-3 Kg crush and split 494 - Au g/t FA+AA

205 - Geochem ring to approx 150 mesh 226 - 0-3 Kg crush and split AOA - Au g/t FA+AA

5060

9.75

494997 - Au FA g/t

2.502.609.75

11.75

14.85

26.60

AMOUNT

133.65

26.60

Total Cost $ 160.25 (Reg# R100938885 ) GST S 11.22

TOTAL PAYABLE (CDN) 9 171.47

Chemex Labs Ltd,Analytical Chemists * Qeochemlsts" Registered Assayers

5175Timbertea Blvd., MississaugaOntario, Canada L4W 2S3PHONE: 905-624-2806 FAX: 905-624-6163

lit)



Project: Comments:

DIONNE LAKE ATTN: ALLAN WILLY

Page Number : 1Total Pages :1Certificate Date: 16-OCT-1998Invoice No. : 19833141P.O. Number :Account :KIX

CERTIFICATE OF ANALYSIS A98331 41

SAMPLE

MW98-01 MW98-02 MW98-03 MW98-04 MW98-05

MW98-06 MW98-07 MW98-08 MW98-09 MW98-10

PREP CODE

205 205 205 205 205

205 205 205 205 205

226 226 226 226 226

226 226 226 226 226

Au g/t FA+AA

1.475 0.890 0.675 0.755 1.760

0.835 0.620 0.685 0.515

^0.00

Au FAg/t

37.37

f S3

Chemex Labs Ltd,Analytical Chemists* Qeochemlsts* Registered Assayers

5175 Timbarlea Blvd., MississaugaOntario, Canada L4W 2S3PHONE: 905-624-2806 FAX: 905-624-6163


3 ENDEAN AVE. TORONTO, ON M4M1W5

Comments: ATTN: ALLAN WILLY

A9834695

CERTIFICATE A9834695

(KIX) - WNW PROSPECTING SYNDICATE

Project DIIONNE LAKE P.O. #:

Sanpl*s submitted to our lab In Mississauga, ON. This report was printed on 29-OCT-1998.

SAMPLE PREPARATION

CHEMEXCODE

208234

NUMBERSAMPLES

33

DESCRIPTION

Assay ring to approx 150 mash0-7 Kg splitting charge

ANALYTICAL PROCEDURES

CHEMEX CODE

NUMBER SAMPLES

997

DESCRIPTION METHODDETECTION

LIMIT

Au g/11 l assay ton, grav. FA-ORAVIMETRIC 0.07

UPPER LIMIT

1000.0

Chemex Labs Ltd,Analytical Chemists * Geochemlsts * Registered Assayers212 Brooksbank Ave., North Vancouver British Columbia, Canada V7J 2C1 PHONE: 604-984-0221

i l l l l


3 ENDEAN AVE. TORONTO, ON H4N 1W5

INVOICE NUMBER 19834695

BILLING INFORMATION

Date: 29-OCT-98 Project: DIIONNE LAKE P.O. No.: Account: KIX

Comments:

Billing: For analysis performed on Certificate A9834695

Terms: Payment due on receipt of invoice 1.25^0 per month (150Xo per annum) charged on overdue accounts

Please Remit Payments to:

CHEMEX LABS LTD. 212 Brooksbank Ave., North Vancouver, B.C. Canada V7J2C1

# OF ANALYSED FOR SAMPLES CODE - DESCRIPTION

UNIT PRICE

SAMPLE PRICE AMOUNT

208 - Assay ring to approx 150 mesh 2.50234 - 0-7 Kg splitting charge 1.75997 - Au FA g/t 11.75 16.00 48.00

Total Cost S 48.00 (Reg# R100938885 ) GST $ 3.36

TOTAL PAYABLE (CDN) S 51.36

Chemex Labs Ltd,Analytical Chemists" Geocnemists * Registered Assayers

5175 Timberlea Blvd., Mississauga Ontario, Canada L4W 2S3 PHONE: 905-624-2806 FAX: 905-624-6163



Project: DIIONNE LAKE Comments: ATTN: ALLAN WILLY

Page Number : 1Total Pages : 1Certificate Date: 29-OCT-1998Invoice No. : 19834695P.O. Number :Account :KIX

CERTIFICATE OF ANALYSIS A9834695

SAMPLE

MW98-04MW98-05MW98-06

PREP CODE

20820(208

234234234

AU FAg/t

0.751.781.30

CERTIFI

Ontario MnMryofNoctiwn Dav*topm*ntandMinn

Declaration of Assessment Work Performed on Mining Land

S5(2) and 66(3), R.S.O. 1990

Transaction Number (office use)

Assessment Files Research Imaging

42E14SE2001 2.19663 FULFORD 900

e authority of subsections 65(2) and 66(3) of the Mining Act. Under •d. This information will be used to review the assesment work and Lection should be directed to a Provincial Mining Recorder, Ministry ad, Sudbury, Ontario, P3E 6B5.

Instructions: - For work performed on Crown Lands before recording a claim, use form 0240. - Please type or print in ink.

1. Recorded holder(s) (Attach a list if necessary)

Namel 9 g 6 3* *-^ ^^ r l 4 ~~* u

RECEIVEDAUG 2 1 1333

GEOSC1ENM ASSESSMENT OfFlCE_____

CUent NumberQ ̂ ;

Address Telephone

Fax Number

Name Client Number

Address Telephone Number

Fax Number

2. Type of work performed: Check (/) and report on only ONE of the following groups for this declaration.

D Geotechnical: prospecting, surveys, assays and work under section 18 (regs)

Physical: drilling stripping, trenching and associated assays D Rehabilitation

Uork Type

Dates Uork From Z. "2- O 3 Performed Amt- Day | Month

Global Positioning System Data (if available)

''"9 5 k l0-^*' 11**)) {3t,SSG''y'r)Q

9B TO z* o 3 , ?81 Year Day | Month | Year

Township/Area /AtfyD-ratcJ A-fi-^C- C?" ""^3^"

M or 6-Plan Number^ .

Office Use

Commodity

Total S Value of .~ Uork Claimed /,V 703.y *"NTS Reference

Mining Division i

I JitJResident Geologist District

y /3M\oUUu I/yCjLi-4/'0

Please remember to: - obtain a work permit from the Ministry of Natural Resources as required;- provide proper notice to surface rights holders before starting work;- complete and attach a Statement of Costs, form 0212;- provide a map showing contiguous mining lands that are linked for assigning work;- include two copies of your technical report.

3. Person or companies who prepared the technical report (Attach a List If necessary)

Telephone Number

Addressf^fStie/HU ftVg- j 7*4**AS?o 0^7-

Fax Number

Name Telephone Number

Address Fax Number

Name7

Telephone Number

Address Fax Number

A. Certification by Recorded Holder or Agent

I, , do hereby certify that I have personal knowledge of the facts set forth in(Print Nw*)

this Declaration of Assessment Uork having caused the work to be performed or witnessed the same during or after its completion and, to the best of my knowledge, the annexed report is true.

Signature of Recorded Holder or Agent /^""} x , 7s J 'S

Agent ' s Address / Tîfephone Number

——————————————————————————————————————— - ————— —- ————————— l ——————————

Date

fft*. *y*e// iFax Number

f y /97 jx

0241 (06/97)

5. Wot x to b* recorded and distributed. Work can only be assigned to c lai as that are contiguous (adjoining) to the Mining land where work was performed, at the tine work was performed. A map showing the contiguous link must accompany this for*.

Dining Claim Nuaber- Or ifwork wa* done on other eligible mining land, show in this column the location number indicated on the claim map.

eg.

eg

eg

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

TB 7827

1234567

1234568

/o4-o 8301 1 By 4-oo

Column Totals

Nuober of Claii Units- For other •ining landi list hectares-

16 ha

12

2

l

(o

7P

Value of work performed on this AU im or . otherTefning land.*^ * -

S26,825

0

S 8,892

lOfiZ*

/itei-c*.

/^? 03-

Value of work applied to this

L"3 6 6N/A

S24,000

t 4,000

1)^00

1 ) (,OO

Value of work assigned to other

pining claims.

g; .990- MAS24,000

0

0

Bank. Value of work to be distributed tt t future date

li/

42,825

0

*4,892

9,2S"7,

68*6.

//P/03,

I, , do hereby certify that the above work credits are eligible under

the claim(Print Full HIM!

subsection 7 (1) of the Assessment Work Regulation 6/96 for assignment to contiguous claims or for application to

where the work was done.

Signature of Recorded Holder or Agent Authorized in Writing ~/Ti^^t^^~

6. Instructions for cutting back creaits that are not approved.creaits

V

Some of the credits claimed in this declaration may be cut back. Please check (/) in the boxes below to show how you wish to prioritize the deletion of credits:

1. Credits are to be cut back from the Bank first, followed by option 2 or 3 or 4 as indicated.

D 2. Credits are to be cut back starting with the claims listed last, working backwards; or

D 3. Credits are to be cut back equally over all claims listed in this declaration; or

D 4. Credits are to be cut back as prioritized on the attached appendix or as fol

Note: If you have not indicated how your credits are to be deleted, credits will be cut back from '

•REO0RDEDAUG 2 7 1999

followed by option number 2 if necessary.ie Bank first.

For Office Use OnlyReceived Stamp

RECEIVEDAUG 21 1333

GEOSCIENCE ASSESSMENT OFFICE______

Deemed Approved Date

Date Approved

Date Notification Sent

Total Value of Credit Approved

Approved for Recording by Mining Recorder (Signature)

0241 (06/97)

Ontario MlnWryofNotwm Developmentand Mines

Statement of Costs for Assessment Credit

Transaction Number (office use)

Personal information collected on this form is obtained under the authority of subsection 6 (1) of the Assessment Work Regulation 6/96. Under section 8 of the Mining Act, this information is a public record. This information will be used to review the assessment work and correspond with the mining land holder. Questions about this collection should be directed to a Provincial Mining Recorder, Ministry of Northern Development and Mines, 3rd Floor, 933 Ramsey Lake Road, Sudbury, Ontario, P3E 6B5.

9063Work Type

Units of workDepending on the type of work, list tn number of hours/days worked, metres of drilling, kilometres of grid line, number of samples, etc.

Cost Per Unit of work

Total Cost

-S~O ho t*, r s 0 12- So74-1- ao

500/ 00

/O

^/^ rm ny,K^t' //VI C-l^LTf* Ci C^^~^ X ,0S~

Associated Costs (e.g. supplies, mobilization and demobilization).

*/ SM&f s d& 2. ^

441.4*

7 OQ -~r -^tf -e- s

^"* "S -t i-r-

Transportation Costs

Food and Lodging Costs

Calculations of Filing Discounts:

1. Work filed within two years of performance is claimed at 100X of the above Total Value of Assessment Work.2. If work is filed after two years and up to five years after performance, it can only be claimed at 505C of the Total

Value of Assessment Work. If this situation applies to your claims, use the calculation below:

TOTAL VALUE OF ASSESSMENT WORK 0.50 = Total S value of worked claimed.

Note:- Work older than 5 years is not eligible for credit.

A recorded holder may be required to verify expenditures claimed in this statement of costs within AS days of a request for verification and/or correction/clarification. If verification and/or correction/clarification is not made, the Minister may reject all or part of the assessment work submitted.

Certification verifying costs:

I, ACt^tHff ZfAsnCS U//*-*-*"/ do hereby certify, that the amounts shown are as accurate as may reasonably(please print full name)

be determined and the costs were incurred while conducting assessment work on the lands indicated on the accompanying

Declaration of Work form as I am authorized to make this certification.(recorded holder, agent, or state company position with signing authority)

Signature

/

Date

0212 (06/97)

Ministry of Ministers duNorthern Development Developpement du Nordand Mines et des Mines Ontario

Geoscience Assessment Office 933 Ramsey Lake Road

September 1, 1999 6th FloorSudbury, Ontario

ALLAN JAMES WILLY P3E 6B53 ENDEAN AVENUETORONTO, Ontario Telephone: (888) 415-9846M4M-1W5 Fax: (877)670-1555

Visit our website at: www.gov.on.ca/MNDM/MINES/LANDS/mlsmnpge.htm

Dear Sir or Madam: Submission Number: 2.19663

Status Subject: Transaction Number(s): W9940.00231 Deemed Approval

We have reviewed your Assessment Work submission with the above noted Transaction Number(s). The attached summary page(s) indicate the results of the review. WE RECOMMEND YOU READ THIS SUMMARY FOR THE DETAILS PERTAINING TO YOUR ASSESSMENT WORK.

If the status for a transaction is a 45 Day Notice, the summary will outline the reasons for the notice, and any steps you can take to remedy deficiencies. The 90-day deemed approval provision, subsection 6(7) of the Assessment Work Regulation, will no longer be in effect for assessment work which has received a 45 Day Notice. Allowable changes to your credit distribution can be made by contacting the Geoscience Assessment Office within this 45 Day period, otherwise assessment credit will be cut back and distributed as outlined in Section #6 of the Declaration of Assessment work form.

Please note any revisions must be submitted in DUPLICATE to the Geoscience Assessment Office, by the response date on the summary.

If you have any questions regarding this correspondence, please contact Bruce Gates by e-mail at [email protected] or by telephone at (705) 670-5856.

Yours sincerely,

DORIGINAL SIGNED BYBlair KiteSupervisor, Geoscience Assessment OfficeMining Lands Section

Correspondence ID: 14119

Copy for: Assessment Library

Work Report Assessment Results

Submission Number: 2.19663

Date Correspondence Sent: September 01, 1999 Assessor: Bruce Gates

Transaction First Claim Number Number

W9940.00231 1040830

Section:10 Physical PSTRIP 10 Physical PTRNCH

Township(s) l Area(s)

TREPTOW LAKE

Status

Deemed Approval

Approval Date

August 31, 1999

Correspondence to:Resident Geologist Thunder Bay, ON

Assessment Files Library Sudbury, ON

Recorded Holder(s) and/or Agent(s):

ALLAN JAMES WILLY TORONTO, Ontario

Page: 1Correspondence ID: 14119

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5- L- C19941

GRAB SAMPLES:

O-87 or- Au.7-fon

CHANNEL SAMPLES:

O-8O oz-

O *2.9 oz- Au^fw- o- Jim

O 'O 9

O- 43 oxo-srz yf\-O-ISm

r* o f-z ' 1 ... •n *? x

RECEIVEDAUG 1 1 1333

LEGEND GEOSCIENCE ASSESSMENTOFFICE

GABBRO

METABASALT a - unalteredb - altered: sheared, rusty

with quartz-carbonate veins

Quartz - carbonate veinBLUE CHIP PROSPECTING SYNDICATE

Outcrop Area

Area exposed by heavy equipment: 1994 4 1998

Blasted pit: 1994, 1998

MAP 1GEOLOGY AND PROSPECTING

MCLELLAN WEST GOLD OCCURRENCEDIONNE LAKE GOLD PROPERTYTHUNDER BAY MINING DIVISION

FULFORD TOWNSHIP, NORTHWESTERN ONTARIOChannel sample location (1994)(sampling intervals start either at south or east ends of channels)60 H —

Location of old trench (1938)CLAIM MAP NUMBER : G-434 NTS MAP NUMBER : 42B14 UTM CO-ORDINATES : 16-982127 LAT. 49" 46' 09" N, LONG. 87" 00' 27" W

GEOLOGY BY: A. J. WILLY, P. Eng.

DRAFTING BY: A. J. WILLY, P. Eng.

DATE: December 1998

Sand/gravel pile 2.5 m high

Back hoe pit 2.5 m deep

— 14-So rtClaim line

42E14SE2001 2.19663 FULFORD 210

L 4+soe

L 4+So K

QUARTZ-CARBONATE VEINwith chalcopyrite, galena, pyrrhotite

pyrite

GRAB SAMPLES:

LAKE.1.09 oz. gold/ton 0.87 oz. gold/ton

CHANNEL SAMPLES:

(along the strike of vein)

0.80 oz. gold/ton over 0.22 meters 0.29 oz. gold/ton over 0.11 meters 0.09 oz. gold/ton over 0.19 meters

WEIGHTED AVERAGE OF ABOVE:

0.43 oz. gold/ton over 0.52 meters (along the strike of vein)

BL2-K50M

LEGEND

GABBRO

MET ABAS ALT

Gold-bearing quartz - carbonate vein/ahear zon*

Location of tampfe tak*n for whoto rock anarymis

Outcrop ft outcrop area

Outcrop vxpoaad by haavy equipment: 19M ft 19M

Blaatad pit (1930**)

trench (19M1*)

Noranda drill collar location, numbar, vwtical projactlon

Drill aat-up clearing and trail*

Old trail rehabilitated In 1994 RECEIVED

BL o 4-00BL O + OO C

Old overgrown logging trail

Claim Una, post, number

Low area

AUG 27 1399QEOSOENCE ASSESSMENT

OfFICE

L O f SOS


MAP 2GEOLOGY AND SAMPLING OF STRIPPED AREA

MCLELLAN WEST GOLD OCCURRENCE DIONNE LAKE GOLD PROPERTY THUNDER BAY MINING DIVISION

FULFORD TOWNSHIP, NORTHWESTERN ONTARIOGEOLOGY BY: A. J. WILLY, P. Eng. CLAIM MAP NUMBER : G-434

DRAFTING BY: A. J. WILLY, P. Eng

DATE: December 1998

UTM CO-ORDINATES : 16 - 982127

LAT. 49" 48' 09" N, LONG. 87" 00' 27" W

t, C-iooe. L~l-tooEl l

n4.0—

-J --

P//IEGEND FOR GOLD OCCURRENCES

1. MCLELLAN WEST

2. MCLELLAN CENTRAL

3. MCLELLAN EAST4. LDM

QUARTZ-CARBONATE VEINwith chalcopyrite, galena, pyrrhotite

pyrite

MOT

CLEARED

AREA

RECEIVED

AUG 27 1G33GEOSCIENCE ASSESSMENT

_____ OfFICE

J

Mafic metavolcanics

Fault Interpreted from Noranda magnetics by R.W. Woolham, P. Eng., Geophysicist, 1998 Gold-bearing quartz - carbonate vein l shear zone

Area cleared by bulldozer and I or backhoe 1992-1994 ft 1998Grid established by Noranda in 1996Grid reestablished and cut by A.J. Willy In 1993 ft 1994

NF87-1

GRAB SAMPLES:

* 1.09 oz. gold t ton* 0.87 oz. gold l ton

CHANNEL SAMPLES: (along strike of vein)

ir 0.80 oz. gold l ton over 0.22 meters* 0.29 oz. gold l ton over 0.11 meters* 0.09 oz. gold l ton over 0.19 meters

WEIGHTED AVERAGE OF ABOVE:

* 0.43 oz. gold l ton over 0.52 meters (along the strike of vein)

DIONNE LAKE

Noranda drill collar location, number, vertical projection

, H ~ Trail: passable, impassable

1186400

Claim line, claim number, and post A number

Swampy area


MAPSCOMPILATION MAP

DIONNE LAKE GOLD PROPERTY THUNDER BAY MINING DIVISION

FULFORD TOWNSHIP, NORTHWESTERN ONTARIO

GEOLOGY BY: A. J. WILLY, P. Eng.

DRAFTING BY: A. J. WILLY, P. Eng.

DATE: D*c*mb*r 1998

CLAIM MAP NUMBERS: G-189 A G-434 NTS MAP NUMBER : 42E/14 ft 42E/15 UTM CO-ORDINATES : 16 - 982127 LAT. 49* 46* N, LONG. 87" 00 W

8CAUE 1:8000

100m 100 soom

-15--

3 0 i d /Ton 7 - i

Figure 6PROPERTY MAGNETIC MAP

Se OCCURRENCE LOCATIONS(modified after Woolham, 1998)

DIONNE LAKE GOLD PROPERTYTHUNDER BAY MINING DIVISION

FULFORD TOWNSHIP, NW ONTARIO

SCALE 1 : 5 000 H————l————l————h H50 100 150 200 250m

A. J. Willy, P.Eng. December 1998

LEGEND

1. - LDM Occurrence2. - McLellan East Occurrence3. - McLellan Central Occurrence4. - McLellan West Occurrence

l 0 t Gold-bearing structure

~ ~ ~ Fault (interpreted )NF87-1

Noranda drill collar 8. no.

—EH— —— Claim: post, line A number1186400

— Access roads s s s Drill trail

MAGNETICS LEGEND

M 200 nt (nanoteslas) 1100-1200 nt 1050-1100 nt 1000-1050 nt 900-1000 nt

OOO nt

contour interval 25 nt

42E14SE2001 2.19663 FULFORD 240

Documents

1998 OPAP PROSP RPT INCLUDING 1994 OPAP WORK …blue chip prospecting syhdicaie, a.j will*, p eng, manager. december figure 3 - detailed location map , "^ ' blue chip prospecting syndicate