2012 Exploration of Fox Mtn Property - Ontario · The Fox Mountain property is located about 100 km north of Thunder Bay, and is situated in the Nipigon Embayment where Proterozoic

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2012 Exploration of the Fox Mountain Property, NW

Ontario.

For claimholders

Orebot Inc. 307 Euclid Ave., Suite 463,

Thunder Bay ON P7E 6G6

2278481 Ontario Inc. 217 Rupert St.,

Thunder Bay ON P7B 3X4

NTS 52H/02 NW

Bounded by UTM coordinates (NAD 83 Zone 16):

359340 & 362550 East; 5444770 & 5448750 North

By: Kevin R. Kivi, P.Geo.

3 November 2012

KIVI Geoscience Inc. 307 Euclid Ave., Suite # 463, Thunder Bay ON P7E 6G6 CANADA

Office: Phone: (604) 628-2397 Fax: (604) 628-2479 Cell: (807) 624-6156 Email: [email protected]

mailto:[email protected]

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TABLE OF CONTENTS Introduction ....................................................................................................... 4 Location and Access ............................................................................................ 4 Property ............................................................................................................ 6 Previous Work .................................................................................................... 7 Property Geology ................................................................................................ 8 2011-2012 Field Work ......................................................................................... 9 Geological Mapping and Prospecting ...................................................................... 9 Geochemistry ................................................................................................... 16 Geophysics ...................................................................................................... 17 Personnel ......................................................................................................... 40 Conclusions and Recommendations ..................................................................... 40 Bibiliography .................................................................................................... 41 Certificate of Author .......................................................................................... 43

LIST OF FIGURES Figure 1. Location Map of Fox Mountain Property. ......................................................... 4 Figure 2. Key Map of Fox Mountain Property with MegaTEM conductors (UTM NAD83). ....... 5 Figure 3: Fox Mountain Property, CLAIMaps III Website, November 3, 2012. ................... 6 Figure 4: Geological mapping and sampling of Fox Mountain Property, Solid Triangles are

rocks, grey circles in east are VLF EM-16 stations on Holness Grid, Pink circles are 2011 Anomalous soils samples on claims 4244755 and 4244758. New 900m long 2012 ATV trail cut south side Elsie Lake to Fox Mtn in purple dashed line. ................................. 9

Figure 5. Alignment of samples show traverses over magnetic high (Total Field Magnetics, GDS 1047) on Fox Mountain (UTM NAD83 zone 16U). ............................................ 10

Figure 6. Geological samples on topography, Fox Mountain (UTM NAD83 zone 16U). ....... 11 Figure 7: Compilation map showing Government lake sediment samples on Total Field

Magnetics, MegaTEM conductors (circles with cross symbol), and property boundaries of corporate neighbours. (August 2011). Note Magma has been acquired by Panaoramic. ..................................................................................................................... 18

Figure 8: VLF-EM16 measurements of In-Phase (IP) and Quadrature (Q). ..................... 20 Figure 9: Geonics EM-16 VLF Instruments used at Fox Mountain. ................................. 20 Figure 10: Gridded In-Phase VLF-EM16 measurements, with possible conductor axes. .... 22 Figure 11: Line 11E VLF data looking east. ............................................................... 23 Figure 12: Line 11E VLF Fraser Filter plot shows conductor axis at 960S and1190S. ....... 24 Figure 13: Line 11E VLF Karous-Hljelt Filter shows weak conductors at 975S and 1240S. 24 Figure 14: Line 12E VLF data with IP Low at 950S. .................................................... 25 Figure 15: Line 12E VLF Fraser Filter plot shows conductor axis at 910S. ...................... 25 Figure 16: Line 12E VLF Karous-Hljelt Filter shows weak conductors at 900S. ................ 26 Figure 17: Line 13E VLF data with strong positive IP at 1200S. .................................... 26 Figure 18: Line 13E VLF Fraser Filter plot shows conductor axis at 1210S. ..................... 27 Figure 19: Line 13E VLF Karous-Hljelt Filter shows strong conductors at 1200S. ............. 27 Figure 20: Line 14E VLF data with IP Low at 900S. .................................................... 28 Figure 21: Line 14E VLF Fraser Filter plot shows conductor axis at 895S. ...................... 28 Figure 22: Line 14E VLF Karous-Hljelt Filter shows conductors at 860S and 1125S. ........ 29 Figure 23: Line 15E VLF data with IP Low at 925S. .................................................... 29 Figure 24: Line 15E VLF Fraser Filter plot shows conductor axis at 910S. ...................... 30 Figure 25: Line 15E VLF Karous-Hljelt Filter shows conductors at 790S and 910S. .......... 30 Figure 26: Line 16E VLF data with IP Low between 920 to 1000S. ................................ 31 Figure 27: Line 16E VLF Fraser Filter plot shows conductor axis at 900S. ...................... 31

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Figure 28: Line 16E VLF Karous-Hljelt Filter shows conductor at 900S........................... 32 Figure 29: Line 17E VLF data with IP Low at 700S, 800S and 900S. ............................. 32 Figure 30: Line 17E VLF Fraser Filter plot shows conductor axis at 790S and 890S. ........ 33 Figure 31: Line 17E VLF Karous-Hljelt Filter shows conductors at 780S and 875S. .......... 33 Figure 32: Line 18E VLF data with IP Low at 900S. .................................................... 34 Figure 33: Line 18E VLF Fraser Filter plot shows conductor axis at 790 and 890S. .......... 34 Figure 34: Line 18E VLF Karous-Hljelt Filter shows conductors at 800S and 850S. .......... 35 Figure 35: Line 19E VLF data with IP Lows at 680S and 975S. ..................................... 35 Figure 36: Line 19E VLF Fraser Filter plot shows wide conductor at 860-930S. ............... 36 Figure 37: Line 19E VLF Karous-Hljelt Filter shows conductors at 900S. ........................ 36 Figure 38: Line 20E VLF data with IP Low at 925S. .................................................... 37 Figure 39: Line 20E VLF Fraser Filter plot shows conductor axis at 790S and 890S. ........ 37 Figure 40: Line 20E VLF Karous-Hljelt Filter shows conductors at 800S with S-apparent dip.

..................................................................................................................... 38 Figure 41: Line 21E VLF data with IP Low at 850S and 950-975S. ................................ 38 Figure 42: Line 21E VLF Fraser Filter plot shows conductor axes at 800 and 940S. ......... 39 Figure 43: Line 21E VLF Karous-Hljelt Filter shows conductors at 800S and 940S with north

apparent dip to the latter. .................................................................................. 39

LIST OF TABLES

Table 1: Claim List of Fox Mountain Property……………………………………………………..............6 Table 2: Rock Samples collected during prospecting and mapping with microscope description……………………………………………………………………………..…………………………………12 Table 3: Top to Bottom Rock Samples showing textural and composition layering.…….......14 Table 4: Gold, Platinum and Palladium Assays ………………..……………………..............,16 Table 5: Copper, Nickel, Cobalt, and Sulphur Analysis.……………………………………...............16 Table 6: Iron, Magnesium, and Titanium Analysis…………………………………..………...............17 Table 7: Exploration Personnel ……………..………………………………………….…..……................40

LIST OF APPENDICES AND MAPS

Appendix A, Map 1: Fox Mountain Rock Sample Locations Appendix B, Map 1: Fox Mountain VLF-EM Map Appendix C, ALS Chemex Assay Certificate

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Introduction Orebot Inc. and 2278481 Ontario Inc. each hold a 50% interest in the Fox Mountain

Property, which is located in the Little Sturge Lake Area (G-0071) of the Thunder Bay Mining District, Ontario.

The Fox Mountain property is located about 100 km north of Thunder Bay, and is situated in

the Nipigon Embayment where Proterozoic flood basalts overly Archaean basement, and later ultramafic/mafic complexes like Disraeli Lake and Seagull intrude flood basalts creating opportunities for magmatic sulphide deposits.

The Fox Mountain property contains magnetic signatures that may represent

ultramafic/mafic intrusive deposits that host magmatic Cu-Ni-Co sulphide deposits like Noril’sk, Talnakh, or Eagle, and PGE deposits like Thunder Bay North, which is located 50 km south.

The Fox Mountain property occurs just east of the Disraeli Lake Ultramafic/Mafic intrusive.

Airborne geophysical surveys over both bodies show complex magnetic bodies flanked by deep EM conductors at both Disraeli Lake and Fox Mountain, with an area barren of these anomalies between. Conductors are deep, and have not been explained, and they spatially correlate to magnetic high anomalies.

Since 2009, Orebot Inc and 2278481 Ontario Inc. have explored the Fox Mountain property.

This report documents ongoing trail cutting, prospecting, geological mapping, lithogeochem sampling and VLF geophysical surveys completed in 2011 and 2012.

Location and Access Fox Mountain is located in the Little Sturge Lake Area, G-0071 of the Thunder Bay Mining

District, in the Province of Ontario.

The Fox Mountain Property is accessible by road, by travelling 110 km north of Thunder Bay on Highway 527, then 36 km east on Mawn Lake Road, and 6 km north along unnamed forestry roads located north of Eileen Lake/Wolf Mountain. Another unnamed forestry road extends NW from a road to the Sturge Lake boat launch/camping area. The Sturge road accesses eastern claims.

Figure 1. Location Map of Fox Mountain Property.

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In summer, one-way travel to the property takes 2.5 hours from Thunder Bay. Mawn Lake road has recently been graded for the first 30 km east of Highway 527, which is expected to reduce travel time next year. Secondary forestry roads are somewhat grown in, and require frequent brushing out and removal of fallen trees. Some of these roads are only accessible with ATV or on foot.

In winter, Mawn Lake road must be ploughed for truck traffic. Property access in winter is

relatively easy with snowmobile from Highway 527. There are no accommodations near the property, therefore work involves extensive travel

from Thunder Bay (5 hours round trip), which reduces productivity and increases costs. In 2012 we started camping to improve productivity and make work easier on crews.

Figure 2. Key Map of Fox Mountain Property with MegaTEM conductors (UTM NAD83).

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Property Orebot Inc and 2278481 Ontario Inc each hold 50% interest in the Fox Mountain Property,

which consists of 5 claims (72 units) for 1152 hectares (Table 1 and Figure 3). Table 1: Claim List of Fox Mountain Property (MNDM Website, Nov 3, 2012).

THUNDER BAY Mining Division - 402427 - OREBOT INC. and 2278481 ONTARIO INC., (50/50)

Township/Area Claim

Number Recording

Date Claim

Due Date Status Percent Option

Work Required

Total Applied

LITTLE STURGE LAKE AREA 4244753

2009-Nov-03 2012-Nov-03 A 50% $3,200 $3,200


2009-Nov-03 2012-Nov-03 A 50% $6,400 $6,400


2009-Aug-11 2012-Nov-03 A 50% $6,400 $6,400


2010-Dec-01 2012-Dec-01 A 50% $3,200 $3,200


2011-Apr-04 2013-Apr-04 A 50% $4,763 $1,637

Figure 3: Fox Mountain Property, CLAIMaps III Website, November 3, 2012.

http://www.mci.mndm.gov.on.ca/Claims/Cf_Claims/clm_cssm.cfm?Claim_View__Claim_Number=4244753%20





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Previous Work Mineral exploration west of Lake Nipigon includes work by prospectors, exploration

companies and their subcontractors, and government agencies. The GSC and ODM dataset shows aeromagnetic data generated in the 1960s by joint

surveys conducted by the Geological Survey of Canada and the Ontario Department of Mines. Original data in analogue format were published in 1”=1 mile maps that reveal major structures and many positive anomalies amongst widespread negatively polarized diabase sills.

1967 Algoma Steel Corporation drilled 3 holes totaling 330 feet intersecting minor

chalcopyrite in gabbro. 1972 Coates, OGS mapped the Disraeli Lake area identifying several northwest

trending faults. 1992 Cominco flew an airborne magnetic survey and conducted a reconnaissance level

gravity survey. 1994 Noranda Mining and Exploration conducted a drill program to test prospective

ground for stratiform copper. 1997 Avalon Ventures Ltd. discovered PGE mineralization on surface in the Seagull

Lake Intrusion. 1997-1998 Avalon Ventures conducts linecutting, mapping, geophysics, trenching and

drilling (8 holes) spending $270,000. 1998 Patricia Gold Mines staked the current property but performed no work. 1999 Avalon Ventures entered into a Joint Venture Agreement with East West

Resource Corporation Ltd and Canadian Golden Dragon Resources Ltd regarding the Seagull and Disraeli Intrusions.

2000 East West Resource Corporation Ltd/ Canadian Golden Dragon Resources Ltd

flew airborne EM (MegaTEM), performed ground magnetics, 3-D modeling and follow-up diamond drilling (2 phases) with a total of 5 holes on the Disraeli Lake Intrusion. No drilling occurred at Fox Mountain.


performed deep drilling on the Seagull Intrusion, following up on airborne and magnetic anomalies. A geological mapping program followed diamond drilling. The property is now held by Trillium North Minerals.


performed high sensitivity magnetometer covering the Little Sturge and Disraeli claims. 2002 North American Palladium Ltd conducted 27.55 lkm linecutting and

magnetometer surveys in the Little Sturge Lake Area.

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2011 Orebot Inc and 2278481 Ontario Inc conducted trail cutting, prospecting, geology, soil sampling and ground magnetometer surveys on the Fox Mountain Property.

Property Geology The Mid-continent rift is a continental-sized crustal suture that extends from the lower crust

and upper mantle to surface, along which partial melts of mafic to ultramafic composition were extruded as lava during Proterozoic times. Magma followed conduits to surface, passing through Archean basement rocks and younger overlying sediments, to form extensive flood basalts that cover thousands of square kilometers in the central US and Canada. The northern part of the mid-continent rift is known as the Nipigon Embayment or Nipigon Plate.

The Nipigon Embayment is one of the largest areas of Proterozoic flood basalts in the world.

Between Thunder Bay and Armstrong widespread diabase sills that are olivine-tholeite composition cover some 40,000 square kilometers. The axis of these flood basalts is interpreted to be the Black Sturgeon fault, interpreted from magnetic surveys and extends for hundreds of kilometers north from Lake Superior. Along its length there are several structures and faults along which magma conduits have intruded, forming the Logan Sills. The “throats” of these extrusive rocks have proven to host magmatic Cu-Ni-Co sulphide and PGE orebodies elsewhere on the mid-continent rift.

Because the sulphur content of the mantle is low, and ultramafics result from a high degree

of melting, it is generally accepted that ultramafics are sulphide under-saturated when they are emplaced. Assimilation of sulphur during ascent or emplacement is a key event that triggers sulphide saturation and immiscibility, which results in ore genesis (Barley, 2007).

The Sibley Formation, which overlies a large area extending from Lake Superior to

Armstrong is interpreted as a source of sulphur due to documented sulphur occurrences in stromatolite beds observed in the Rossport and Kama Bay areas, east of Thunder Bay. Occurrences of anhydride and sulphidic sediments are also key to sulphide ore formation.

Magmatic copper-nickel-PGE ore deposits have been discovered in Mid-Continent

Proterozoic rocks that assimilate sulphides during ascent, forming economic magmatic Cu-Ni-Co-PGE deposits. Deposits found in the mid-continent rift include Eagle, Lakeview, Nokomis, and Current Lake.

The Fox Mountain property is overlain by Proterozoic diorite, gabbro and possibly peridotite

intrusions related to the Nipigon plate event. These Proterozoic intrusive and extrusive rocks overly Sibley Group metasandstone, which in turn overlies basement Archean granitic gneiss and Archean Greenstone.

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2011-2012 Field Work

Prospecting and geological mapping focused on the east side of Elsie Lake, on the south

end of a prominent ridge known Fox Mountain which was accessed by canoe in 2011. We cut an ATV trail in 2012 to improve access to Fox Mountain.

Figure 4: Geological mapping and sampling of Fox Mountain Property, Solid Triangles are rocks, grey circles in east are VLF EM-16 stations on Holness Grid, Pink circles are 2011 Anomalous soils samples on claims 4244755 and 4244758. New 900m long 2012 ATV trail cut south side Elsie Lake to Fox Mtn in purple dashed line.

On the Claim 4244758 11 lines of VLF ground geophysics was conducted, with data

collection on 211 stations. This survey followed up on five MegaTEM anomalies that align in the area.

Geological Mapping and Prospecting

Prospecting and geological mapping & sampling occurred on the east side of Elsie Lake in

search of mineralized float and outcrop. A strong magnetic anomaly occurs on the ridge and westward under Elsie Lake. Dominant high magnetic locations were checked, and verified using a KT-9 Magnetic susceptibility meter and hand magnet. Several rock samples were collected, sawed, and described using a binocular microscope. Sample E89 and E90 plots directly on top of the strong positive magnetic anomaly, and is described as E89: Magnetite Leucogabbro, 50% white plagioclase, 20% fine amphibole, 30% magnetite, rare fine

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chalcopyrite, and E90: Magnetite Leucogabbro, 40% white plagioclase, 15% magnetite, 20% fine amphiboles, trace chalcopyrite.

Figure 5. Alignment of samples show traverses over magnetic high (Total Field

Magnetics, GDS 1047) on Fox Mountain (UTM NAD83 zone 16U).

A reversely polarized magnetic low, located in the SW part of Figure 5 has two rock samples: Rock J: Microgabbro, very fine grained, massive, 40% fine amphibole, 50% plagioclase, 10% fine disseminated primary magnetite and Rock K: Serpentinite, fine grained pale green foliated, rare magnetite or hematite blebs, possible pseudomorphs of 5mm olivine?

Twenty two rock samples were collected from the southern part of Fox Mountain. Several

traverses were conducted over many days. First approach was utilizing canoe from Elsie Lake,

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with shoreline geology and a climb up cliffs on the east side of the lake. Windfall was bad along this shoreline, so we cut a 900m long ATV trail south of the lake and then north to the top of Fox Mountain. This access trail simplified access and lead to many interesting discoveries. The new trail is shown in Figure 6, in purple.

Figure 6. Geological samples on topography, Fox Mountain (UTM NAD83 zone 16U).

All rock samples collected from the property were cut using a large diamond saw

at KGI, and rock slabs were described using binocular microscope. The Sample ID, UTM co-ordinates (NAD83, Zone 16U), a detailed description, and photography was conducted. Rock descriptions are presented in Table 2 and a photo-geologic section from top to bottom is presented in Table 3.

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Table 2: Rock Samples collected during prospecting and mapping with microscope description. Sample_ID E_NAD83_16U N_NAD83_16U Microscope Description E67 360099 5445734 Coarse grained diabase. 50% plagioclase,40% amphibole,

rare biotite, 5% magnetite in 1mm subhedral octahedrons

E73 360015 5445566 Magnetite diabase, coarse grained, 20% coarse magnetite in 3-4mm clots

E80 360170 5445544 Fine grained magnetite diabase, 20% fine magnetite, 60% plagioclase, 5% brownish olivine (opx?), trace pyyrhotite

E81 360204 5445528 Magnetite olivine gabbro, 30% plagioclase, 20% amphibole, 10% olivine, 30% magnetite, trace chalcopyrite

E82 360201 5445526 Medium grained olivine gabbro, 40% amphibole, 20% plagioclase, 10% brown olivine, 30% magnetite,

E85 360230 5445499 Magnetite melagabbro, fine grained, 30% plagioclase, 40 % amphiboles, 30% magnetite in 1mm clots, trace chalcopyrite

E88 360224 5445212 Leucogabbro, 60% white plagioclase, 20% fine amphibole, 5% magnetite

E89 360230 5445253 Magnetite Leucogabbro, 50% white plagioclase, 20% fine amphibole, 30% magnetite, rare fine chalcopyrite

E90 360286 5445281 Magnetite leucogabbro, 40% white plagioclase, 15% magnetite, 20% fine amphiboles, trace chalcopyrite

E91 360291 5445353 Magnetite leucogabbro, 60% white plagioclase, 20% magnetite, 20% fine amphiboles, trace chalcopyrite

Rock A 360256 5445162 Coarse pyroxenite, with 60% coarse amphiboles in clots (after pyroxene), and 30% fine plaglioclase in lighter coloured patches, no magnetite, cobalt bloom

Rock B 360255 5445182 Serpentinite, pale to dark green serpentine, radial crystals, with finer patches with hematite and plagioclase

Rock C 360233 5445253 Melagabbro, medium grained, with 60% green amphibole, 30% plagioclase, 5% fine magnetite

Rock D 360164 5444969 Gabbronorite, 85% stubby dark green pyroxene and 15% white plagioclase, 2% magnetite, trace chalcopyrite, and in coarser blebs, massive

Rock E 360321 5445082 Micro-gabbro, aphanitic dark grey-green with 40% plagioclase visible at 1mm thick weathering rind, the rest is green amphibole

Rock F 360349 5445098 Hematite-altered medium grained gabbro with pink to red pervasive hematite alteration, weathers to limonite where oxidized

Rock G 360197 5445226 Magnetite leucogabbro, 50% plagioclase, 30% coarse amphibole, 20% magnetite, trace chalcopyrite

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Rock H 360138 5445234 Gabbro, fine grained 45% plagioclase, 5% fine disseminated magnetite, trace chalcopyrite

Rock I 360110 5445163 Gabbro, fine grained 45% plagioclase, 5% magnetite Rock J 360275 5444994 microgabbro, very fine grained, massive, 40% fine

amphibole, 50% plagioclase, 10% fine disseminated primary magnetite

Rock K 360340 5444945 Fine grained pale green serpentinite, foliated, rare magnetite or hematite blebs, possible pseudomorphs of 5mm olivine?

Textural and compositional changes occur on the rocks mapped during ascent of

Fox Mountain. Minor chalcopyrite is present in many rocks, from top to bottom. The strong magnetic high response results from up to 30% magnetite found in

Samples E89 & E91. Samples E85 and E81 also have a high magnetite content but are lower in magnetic response in the geophysical survey. Microgabbro units mapped may indicate chilled flow tops.

The magnetic low, south of Fox Mountain is due to coarse grained serpentinite.

This rock may be reversely polarized, indicating emplacement at a different geologic time that the rocks on Fox Mountain. Table 3: Top to Bottom Rock Samples showing textural and composition layering. Sample_ID MAGNETIC HIGH ON FOX MOUNTAIN E85 - TOP

Magnetite melagabbro, fine grained, 30% plagioclase, 40 % amphiboles, 30% magnetite in 1mm clots, trace chalcopyrite

E81

Magnetite olivine gabbro, 30% plagioclase, 20% amphibole, 10% olivine, 30% magnetite, trace chalcopyrite

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E91

Magnetite leucogabbro, 60% white plagioclase, 20% magnetite, 20% fine amphiboles, trace chalcopyrite

E89

Magnetite Leucogabbro, 50% white plagioclase, 20% fine amphibole, 30% magnetite, rare fine chalcopyrite

Rock A

Coarse pyroxenite, with 60% coarse amphiboles in clots (after pyroxene), and 30% fine plaglioclase in lighter coloured patches, no magnetite, cobalt bloom

Rock E Chilled flow base

Micro-gabbro, aphanitic dark grey-green with 40% plagioclase visible at 1mm thick weathering rind, the rest is green amphibole

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Rock G

Magnetite leucogabbro, 50% plagioclase, 30% coarse amphibole, 20% magnetite, trace chalcopyrite

Rock I

Gabbro, fine grained 45% plagioclase, 5% magnetite

Rock D BOTTOM

Gabbronorite, 85% stubby dark green pyroxene and 15% white plagioclase, 2% magnetite, trace chalcopyrite, and in coarser blebs, massive

MAGNETIC LOW SOUTH OF FOX MOUNTAIN

Rock J Chilled flow base

Microgabbro, very fine grained, massive, 40% fine amphibole, 50% plagioclase, 10% fine disseminated primary magnetite

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Rock K

Serpentinite, fine grained pale green, foliated, rare magnetite or hematite blebs, possible pseudomorphs of 5mm olivine?

Geochemistry Nine samples were selected for analysis. Most rock samples had trace

chalcopyrite and pyrrhotite, and returned low quantities of copper, nickel and cobalt, and also low quantities of platinum, palladium, and gold.

Gold and PGE analysis was conducted using ALS Chemex’s PGM-MS23

technique. All samples returned low, but detectable amounts of platinum and palladium, with a consistent Pd:Pt ratio of 2:1 in all samples except ROCK A, which returned <0.001 ppm Palladium.

Table 4: Gold, Platinum and Palladium Assays.

PGM-MS23 PGM-MS23 PGM-MS23 SAMPLE Au Pt Pd DESCRIPTION ppm ppm ppm E81 0.01 0.0197 0.067 E85 0.007 0.0148 0.027 E88 0.005 0.0126 0.022 E89 0.006 0.0143 0.028 E90 0.004 0.0139 0.022 E91 0.007 0.0132 0.032 ROCK A 0.001 0.0011 <0.001 ROCK C 0.007 0.0143 0.029 ROCK D 0.009 0.018 0.049

Copper, Nickel and Cobalt analysis used ALS Chemex’s ME-MS61 method. All

samples returned low quantities of copper, nickel and cobalt, and also a low sulphur content, which corresponds to trace sulphides. Usually copper and nickel increased with more sulphides, except in ROCK D where nickel is depleted compared to elevated copper with increased sulphide content.

Table 5: Copper, Nickel, Cobalt and Sulphur Analysis.

ME-MS61 ME-MS61 ME-MS61 ME-MS61 SAMPLE Cu Ni Co S

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DESCRIPTION ppm ppm ppm % E81 387 19.5 50.7 0.03 E85 333 27.6 49.6 0.01 E88 198.5 125.5 55.6 0.05 E89 255 49.8 51.2 0.02 E90 187.5 56.2 48.4 0.01 E91 201 36.8 50.4 0.01 ROCK A 2.6 45.9 20.3 <0.01 ROCK C 235 44.9 47 0.02 ROCK D 412 16.2 46.6 0.08

Iron, magnesium and titanium allow grouping of rocks, like leucogabbro which

all has low iron. ROCK A, with 11.65 Wt% MgO is a more ultramafic rock. Table 6: Iron, Magnesium, and Titanium Analysis.

ME-MS61 ME-MS61 ME-MS61 SAMPLE Fe Mg Ti DESCRIPTION % % % E81 13.7 2.05 1.6 E85 13.1 2.08 1.37 E88 9.74 3.85 0.769 E89 11.2 2.9 1.05 E90 10.4 3.05 0.977 E91 12.2 2.4 1.33 ROCK A 3.73 11.65 0.3 ROCK C 10.65 2.72 1.035 ROCK D 12.8 1.61 1.475

Geophysics Several airborne geophysical surveys were flown over the Lake Nipigon Embayment area

Plate by the Ontario Geological Survey during the Lake Nipigon Region Geoscience Initiative. One survey was of particular use and has helped us target exploration is “Ontario Geological Survey 2004., Ontario airborne geophysical surveys, magnetic and gamma-ray spectrometer data, Lake Nipigon Embayment Area; Geophysical Data Set 1047” which will be referred to as GDS-1047 in this report.

The airborne geophysical data for GDS-1047 was completed by FUGRO Airborne Surveys Corp, who completed 49,693 line kilometers of airborne magnetometer surveying along 150m spaced traverse lines oriented at 10°- 190° Azimuth with perpendicular tie lines at 2 km centres. Nominal terrain clearance was 100m.

Although survey GDS-1047 is a good magnetic dataset, 150m line spacing and 100m

nominal terrain clearance will not define targets to the detail required to detail map Fox

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Mountain or the claim area. Ground surveys or a low-level airborne survey is required for this task.

Figure 7: Compilation map showing Government lake sediment samples on Total Field

Magnetics, MegaTEM conductors (circles with cross symbol), and property boundaries of corporate neighbours. (August 2011). Note Magma has been acquired by Panaoramic.

A prominent serpentine magnetic high, similar to that which is detected on Magma Mineral’s

Thunder Bay North property drew Orebot Inc and 2278481 Ontario Inc to stake the Fox Mountain property. The anomaly is evident in the GDS-1047 dataset.

MegaTEM conductors (circles with cross) shown are listed in assessment report

52H02NW2004 from a survey with flight that extended from the Disraeli Ultramafic/Mafic intrusive located 3km SW of Fox Mountain, and also covered the magnetic anomaly at Fox Mountain. MegaTEM conductors identified are spatially related to strong high magnetics, and

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there are no conductors between the Disraeli and Fox magnetic high anomalies. This geophysical observation implies that the conductors may be related to magmatic intrusive bodies present at Disraeli and Fox Mountain.

2012 Holness Grid VLF EM-16 Survey The survey was completed over the Holness grid area with lines oriented at 340 degrees

azimuth spaced at 50 metres on November 5 & 6, 2011. The grid is set perpendicular to a group of MegaTEM conductors that occur in the southwestern part of claim 4244758. The transmitting station used for this survey is located in Cutler, Maine., USA, broadcasting at 17.8 kHz.

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Figure 8: VLF-EM16 measurements of In-Phase (IP) and Quadrature (Q). This method uses VLF navigation signals as a primary source. The receiver measures the dip

angle and vertical quadrature of the resultant electromagnetic field at the station. The method is capable of detecting weak conductors and has moderate to great depth penetration, but conductive overburden greatly diminishes its capability.

Data are plotted as staked profiles of dip angle and vertical quadrature. Conductor axes

(crossovers) are identified where the dip angle crosses from negative to positive. A Geonics EM-16 was employed to measure the In-phase and Quadrature components of

the EM field. The survey used VLF transmitter NAA at Cutler, MD., U.S.A. (17.8kHZ) as a source. The stations were 25m apart and the In-phase (percent slope of the dip angles) and quadrature were measured facing north. The data was hand recorded in a field book that was later hand plotted in the office. A total of 211 readings were taken on a 10 line GPS waypoint grid.

Figure 9: Geonics EM-16 VLF Instruments used at Fox Mountain.

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Geonics EM-16 Specifications: Measured Quantity - In-phase and quad-phase components of vertical magnetic field as a

percentage of horizontal primary field (Tangent of the tilt angle and ellipticity). Sensitivity - In-phase : +- 150% Resolution Output - Nulling by audio tone. In-phase indication from mechanical

inclinometer and quad-phase from graduated dial. Operating Frequency - 17.8 kHZ radio band. Operating Controls - On/Off switch, battery test push button, station selector switch, audio

volume control, quadrature dial and inclinometer. Power Supply - 6 Duracell 'AA' batteries Dimensions - 42 x 14 x 9cm Weight - Instrument: 1.6kg

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Figure 10: Gridded In-Phase VLF-EM16 measurements, with possible conductor axes. Raw In-Phase measurements, when gridded using Encom Discover software with MapInfo

GIS, a prominent deep purple E-W domain seems to map a lithological contact that corresponds to the southern limit of a magnetically high domain (Figure 7). This trend is parallel to several MegaTEM anomalies that align in this area (Figure 5). In 2013 the VLF grid will be extended to the west, and other EM techniques may be applied to further define MegaTEM conductors in the Holness Lake area.

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KHFFILT Processing of EM-16 Data: The KHFFILT program, written by Markku Pirttijarvi (University of Oulu, Finland) was used

to perform Karous-Hjelt and Fraser filtering of geophysical VLF (very-low-frequency) data. In VLF method two orthogonal components of the magnetic field are measured, and normally the tilt angle and ellipticity of the vertical magnetic polarization ellipse are derived. Real (in-phase) and imaginary (quadrature) components, are used in KHFFILT program. These components are based on the tilt angle and ellipticity as: Re= tan(a)x100 % and Im= ex100 %.

Data from each VLF line was input to text file, and then uploaded to KHFFILT.exe to

generate the following plots, which were very helpful with interpretation of the Holness VLF survey.

Line 11E VLF

Figure 11: Line 11E VLF data looking east.

900 1000 1100 1200Distance (m)

-2

-1

0

1

2

3

4

Res

pons

e

VLF measurementHolness VLF L11E

Real component

24

Figure 12: Line 11E VLF Fraser Filter plot shows conductor axis at 960S and1190S.

Figure 13: Line 11E VLF Karous-Hljelt Filter shows weak conductors at 975S and 1240S.

900 1000 1100 1200Distance (m)

-6

-4

-2

0

2

4

6

Res

pons

eFraser filtering

Holness VLF L11E

Real component

900 1000 1100 1200Distance (m)

-60

-40

Dep

th (m

)

Karous-Hjelt filteringHolness VLF L11E

-10 0 10Real component, unnormalized

25

Line 12E VLF

Figure 14: Line 12E VLF data with IP Low at 950S.

Figure 15: Line 12E VLF Fraser Filter plot shows conductor axis at 910S.

900 1000 1100 1200Distance (m)

-2

-1

0

1

2

3

4

5

Res

pons

eVLF measurementHolness VLF L12E

Real component

900 1000 1100 1200Distance (m)

-8

-6

-4

-2

0

2

4

6

Res

pons

e

Fraser filteringHolness VLF L12E

Real component

26

Figure 16: Line 12E VLF Karous-Hljelt Filter shows weak conductors at 900S.

Line 13E VLF

Figure 17: Line 13E VLF data with strong positive IP at 1200S.

900 1000 1100 1200Distance (m)

-60

-40

Dep

th (m

)



800 900 1000 1100 1200Distance (m)

0

5

10

15

20

25

Res

pons

e


Real component

27


Figure 19: Line 13E VLF Karous-Hljelt Filter shows strong conductors at 1200S.

800 900 1000 1100 1200Distance (m)

-30

-20

-10

0

10

20

30

Res

pons

eFraser filtering

Holness VLF L13E

Real component

800 900 1000 1100 1200Distance (m)

-60

-40

Dep

th (m

)



28

Line 14E VLF



800 900 1000 1100 1200Distance (m)

-4

-2

0

2

4

6

8

Res

pons


Real component

800 900 1000 1100 1200Distance (m)

-5

0

5

10

15

Res

pons

e


Real component

29

Figure 22: Line 14E VLF Karous-Hljelt Filter shows conductors at 860S and 1125S.

Line 15E VLF


800 900 1000 1100 1200Distance (m)

-60

-40

Dep

th (m

)



700 800 900 1000 1100Distance (m)

-2

-1

0

1

2

3

4

5

6

7

Res

pons

e


Real component

30



700 800 900 1000 1100Distance (m)

-10

-5

0

5

Res

pons

eFraser filtering

Holness VLF L15E

Real component

700 800 900 1000 1100Distance (m)

-60

-40

Dep

th (m

)



31

Line 16E VLF

Figure 26: Line 16E VLF data with IP Low between 920 to 1000S.


700 800 900 1000 1100Distance (m)

-2

-1

0

1

2

3

Res

pons


Real component

700 800 900 1000 1100Distance (m)

-6

-4

-2

0

2

4

6

Res

pons

e


Real component

32

Figure 28: Line 16E VLF Karous-Hljelt Filter shows conductor at 900S.

Line 17E VLF

Figure 29: Line 17E VLF data with IP Low at 700S, 800S and 900S.

700 800 900 1000 1100Distance (m)

-60

-40

Dep

th (m

)



650 700 750 800 850 900 950 1000Distance (m)

-1

0

1

2

3

4

5

6

7

Res

pons

e


Real component

33

Figure 30: Line 17E VLF Fraser Filter plot shows conductor axis at 790S and 890S.


650 700 750 800 850 900 950 1000Distance (m)

-8

-6

-4

-2

0

2

4

Res

pons

eFraser filtering

Holness VLF L17E

Real component

650 700 750 800 850 900 950 1000Distance (m)

-50

-40

-30

Dep

th (m

)



34

Line 18E VLF


Figure 33: Line 18E VLF Fraser Filter plot shows conductor axis at 790 and 890S.

650 700 750 800 850 900 950 1000Distance (m)

-2

-1

0

1

2

3

4

5

Res

pons


Real component

650 700 750 800 850 900 950 1000Distance (m)

-6

-4

-2

0

2

4

6

Res

pons

e


Real component

35


Line 19E VLF

Figure 35: Line 19E VLF data with IP Lows at 680S and 975S.

650 700 750 800 850 900 950 1000Distance (m)

-50

-40

-30

Dep

th (m

)



600 700 800 900 1000 1100Distance (m)

0

1

2

3

4

5

6

Res

pons

e


Real component

36

Figure 36: Line 19E VLF Fraser Filter plot shows wide conductor at 860-930S.

Figure 37: Line 19E VLF Karous-Hljelt Filter shows conductors at 900S.

600 700 800 900 1000 1100Distance (m)

-6

-4

-2

0

2

4

6

8

Res

pons

eFraser filtering

Holness VLF L19E

Real component

600 700 800 900 1000 1100Distance (m)

-60

-40

Dep

th (m

)



37

Line 20E VLF


Figure 39: Line 20E VLF Fraser Filter plot shows conductor axis at 790S and 890S.

600 700 800 900 1000 1100Distance (m)

-1

0

1

2

3

4

5

6

7

8

Res

pons


Real component

600 700 800 900 1000 1100Distance (m)

-8

-6

-4

-2

0

2

4

6

8

Res

pons

e


Real component

38

Figure 40: Line 20E VLF Karous-Hljelt Filter shows conductors at 800S with S-apparent

dip. Line 21E VLF

Figure 41: Line 21E VLF data with IP Low at 850S and 950-975S.

600 700 800 900 1000 1100Distance (m)

-60

-40

Dep

th (m

)



700 750 800 850 900 950 1000 1050Distance (m)

-2

0

2

4

6

8

10

Res

pons

e


Real component

39

Figure 42: Line 21E VLF Fraser Filter plot shows conductor axes at 800 and 940S.

Figure 43: Line 21E VLF Karous-Hljelt Filter shows conductors at 800S and 940S with

north apparent dip to the latter.

700 750 800 850 900 950 1000 1050Distance (m)

-8

-6

-4

-2

0

2

4

6

8

Res

pons

eFraser filtering

Holness VLF L21E

Real component

700 750 800 850 900 950 1000 1050Distance (m)

-50

-40

-30

Dep

th (m

)



40

Personnel

The current exploration work program was conducted by the following people.

Table 7: Exploration Personnel

Field Days Lab and Office Days

Kevin Kivi, P.Geo.,

Thunder Bay ON

9 11

Marc Lavoie, Geotech,

Thunder Bay ON

14 7

Ben Lavoie, Labourer,

Thunder Bay ON

6

Conclusions and Recommendations Work this year targeted areas where both magnetic and geochemical anomalies occur and

near MegaTEM conductors. Geologic mapping at Fox Mountain has shown the ridge consists of a multiply intruded

complex of mostly intrusive mafic and minor ultramafic rocks. The complex magnetic response has been explained by mapping a magnetite-rich (30% Mt) leucogabbro, but rocks nearby where the magnetic response is lower, gabbros with similar magnetic content show a lower magnetic response.

Fox Mountain also has grain size variation which suggests there may be more than one

mafic intrusive preserved on the ridge. Its complex magnetic response suggests intrusive rocks have been deposited on many occasions over time.

A strong magnetic low south of Fox Mountain is attributed to a coarse grained serpentinized

ultramafic. This rock seems to be magnetically reversed to the Fox Mountain mafic intrusive complex. Only one small outcrop of serpentinite has been found, and it occurs in a low-lying recessive swampy area. This unit may warrant drilling.

Geochemical samples show that both mafic and ultramafic rocks occur. Although absolute

copper, nickel and cobalt numbers are low, there seems to be one phase where nickel is depleted relative to copper. Palladium and platinum numbers are low, but their ratio is consistently about 2:1, palladium to platinum.

41

The Holness VLF survey seems to map lithology, and has generated conductors that correlate with the trend of several MegaTEM conductors in the area. In 2013 the VLF grid will be extended to the west, and other EM techniques may be applied to further define MegaTEM conductors in the Holness Lake area.

MegaTEM conductors seem to cluster around Disraeli, which is an ultramafic and mafic

intrusive complex, and they also cluster around Fox Mountain. The megaTEM anomalies around Fox Mountain deserve follow-up ground surveys to determine their quality.

Further geological mapping and sampling is warranted on the Fox Mountain mafic intrusive

complex.

Bibiliography

Barley, Mark E., Bekker, Andrey, Fiorentini, Marco L., Rouxel, Oliver J., and Rumble, Douglass III, 2007, Multiple sulphur sourves for Archaean komatiite-hosted nickel sulphides confirmed by S and Fe isotopes: Exploration Implications. 2007 GSA Denver Annual Meeting, Paper no. 132-7.

Naldrett, Anthony J., 2004. Magmatic Sulfide Deposits, Geology, Geochemistry and

Exploration, Springer-Verlag, Berlin Heidelberg, ISBN 3-540-22317-7. Ripley, Edward M., and Li, Chusi, 2007. Are crustally derived metals of significance

in the generation of magmatic Cu-Ni-PGE deposits?, 2007 GSA Denver Annual Meeting, Paper no. 132-1.

Assessment File: 52H02NW2004, Cavén, Roger J., East-West Resource

Corporation, Canadian Golden Dragon Resources Ltd, Avalon Ventures Ltd, A Report on Airborne Geophysical Suvey of the Nipigon Plate Property...Disraeli-Seagull Claim Group, 2002.

Assessment File: 52H02NW2005, MacIsaac, M., North American Palladium Ltd and

Lac Des Iles Mines Ltd., Report on Linecutting and Magnetometer Surveys Disraeli Lake Property, 2002.

Assessment File: 52H02NW9556, Hedin, Kaj, Canagrad Geophysics Limited Report

Cominco Ltd, Aeromagnetic Survey Leckie/Disraeli, 1992. Assessment File: 52H14NE2004, Middleton, R.S. et al., Geological Report and

Remnant Magnetism Study on the Havoc Lake Property, East West Resources, 2002.

Assessment File: 52I06SE2002, Caven Roger, G., East West Resources, Report on

an Airborne Geophysical Survey of the Nipigon Plate Property, English Bay and Pillar Claim Groups, 2002.

42

Geonics Limited, EM-16 Operating Instructions Trillium North Minerals website: http://www.trilliumnorth.com Geology Ontario website: http://www.geologyontario.mndm.gov.on.ca/ Ontario Mining Lands Website: http://www.geologyontario.mndm.gov.on.ca/

http://www.geologyontario.mndm.gov.on.ca/

http://www.geologyontario.mndm.gov.on.ca/

43

Certificate of Author Kevin Robert Kivi, P.Geo. KIVI Geoscience Inc.

307 Euclid Ave., Suite 463, Thunder Bay ON P7E 6G6 Phone (604) 628-2397 Fax (604) 628-2479

Email: [email protected] I Kevin Robert Kivi, P.Geo., (P.Geol. in NWT) am a Professional Geoscientist, employed by KIVI

Geoscience Inc., of Thunder Bay, Ontario. I am: • a practising member of the Association of Professional Geoscientists of Ontario (APGO),

Registration 0326, and currently elected councillor for NW Ontario; • a member of the Association of Professional Engineers, Geologists and Geophysicists of the

Northwest Territories (NAPEGG), Registration L821; • a member of the Association of Professional Engineers and Geoscientists of the Province of

Manitoba (APEGM), Registration 25680. • A member of the Association of Professional Engineers and Geoscientists of Saskatchewan

(APEGS), Registration #13687. I graduated from Lakehead University, Thunder Bay with a Bachelor of Science Geology (4 year

programme) in 1983, and I have practiced in my profession continuously since 1983. Since 1983 I have been involved in:

• gold exploration with Ovaltex Inc. along the Cadillac Break in Rouyn and Val D’Or, Quebec in winters of 1984, 1985 and 1986, and between 1986-1988 in NW Ontario.

• diamond exploration with BP Resources Inc – Selco Division in Ontario, Quebec, Manitoba and NWT in summers of 1984, 1985 and 1988;

• gold and base metals exploration in NW Ontario with Rio Algom Exploration between 1988 and 1992.

• diamond exploration with Kennecott Canada Exploration between 1992-1994 at Lac De Gras, NWT, Diamond Laboratory Manager between 1995-2000 in Thunder Bay, Ontario, diamond exploration 2000-2004 in Wawa in Archean lamprophyric volcaniclastic rocks and Group 2 kimberlites, March-June 2004, Exploration Manager at Diavik Diamond Mines Ltd, Lac De Gras, NT.

• 2004 to present: Geological consultant specializing in diamond, gold and base metal exploration in Canada and Brazil. My current clients include Maudore Minerals Ltd, Arctic Star Exploration Corp., Amarillo Gold Corp, and Orebot Inc.

I continue to work as a geological consultant for Orebot Inc. in 2012.

Dated at Thunder Bay, ON, CANADA this 3rd of November 2012.

KIVI Geoscience Inc.

Per: “Kevin Kivi”

Kevin R. Kivi, P.Geo., President

Documents

2012 Exploration of Fox Mtn Property - Ontario · The Fox Mountain property is located about 100 km north of Thunder Bay, and is situated in the Nipigon Embayment where Proterozoic