' "659C GAUTHIER 010

A LOGISTICAL AND INTERPRETIVE REPORT

ON

SPECTRAL IP, RESISTIVITY

AND MAGNETOMETER SURVEYS

CONDUCTED ON THE

NORTHLAND PROPERTY

GAUTHIER TOWNSHIP

NORTHEASTERN ONTARIO

RECEIVED

MINING LANDS BRANCH^

"g ~q^ Q JL O

JVXLtd.

A LOGISTICAL AND INTERPRETIVE REPORT

ON

SPECTRAL IP, RESISTIVITY AND MAGNETOMETER SURVEYS

CONDUCTED ON THE

NORTHLAND PROPERTYGAUTHIER TOWNSHIP

NORTHEASTERN ONTARIO

For:

Sudbury Contact Mines Ltd.141 Adelaide St. West Suite 1401 Toronto, Ontario M5H 3L5

Attention: Lorne Burden Tel: (416) 364-2895 Fax:(416)364-5384

By:

JVXLtd.60 West Wilmot St, Unit #22 Richmond Hill, Ontario L4B 1M6

Contact: Blaine Webster QvjOJ - "P Z. - Tel: (905) 731-0972 Fax:(905)731-9312

JVX Ref: 9566-2 March 1996

J VX

32004NW0372 2 16590 GAUTHIER pj ~~

TABLE OF CONTENTS

l INTRODUCTION...............................................................................................^

1.1 GENERAL............................................................................................................................l

2 DATA ACQUISITION..........................................................................................................^

2.1 SURVEY SPECIFICATIONS..............................................................................................22.2 GRID SPECIFICATIONS.....................................................................................................32.3 PRODUCTION SUMMARY................................................................................................32.4 PERSONNEL.......................................................................................................................^2.5 FIELD INSTRUMENTATION............................................................................................^2.5.11.P. Transmitter..................................................................................................................62.5.2IP. Receiver......................................................................................................................^2.5.3 Magnetometer.....................................................................................................................6

3 DATA PROCESSING............................................................................................................?

3.1 IP AND RESISTIVITY ........................................................................................................73.2 MAGNETICS........................................................................................................................8

4 INTERPRETATION METHODOLOGY............................................................................9

4.1 IP AND RESISTIVITY ........................................................................................................94.2 MAGNETICS......................................................................................................................10

5 DISCUSSION OF RESULTS.............................................................................................. 11

5.1 EXPLORATION TARGETS..............................................................................................12

6 RECOMMENDATIONS .....................................................................................................14

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FIGURES

Figure l: Location Map

Figure 2: Grid Map

TABLES

Table l: Specifications for the IP/Resistivity Survey

Table 2: Specifications for Magnetometer Survey

Table 3: Survey Summary for IP/Resistivity Survey

Table 4: Survey Summary for Magnetometer Survey

APPENDICES

Appendix A: Background to the Geophysical Methods

Appendix B: Plates

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PLATES

Plate l: Chargeability (M7) Contour Map, Scale l :2400, (n-2)

Plate 2: Resistivity Contour Map, Scale l :2400, ^2)

Plate 3: Total Field Magnetic Profile Map, Scale l :2400

Plate 4: Total Field Magnetic Contour Map, Scale l :2400

Plate 5: Total Field Magnetic Colour Contour Map, Scale 1:2400

Plate 6: Compilation Map, Scale l :2400

Stacked Pseudosections; Chargeability and Apparent Resistivity: (0=100 feet; Scale 1:2400)

Plate 7a: L. OE - L. 3600E

Stacked Spectral (M-IP and Tau (T)) Pseudosections: ^lOOfeet; Scale 1:2400)

Plate 7b: L. OE - L. 3600E

Colour Plots:

One (l) set of colour individual pseudosections in one report only Scale 1:2400

Plate I: Chargeability (M7) Contour Map, Scale l :4800, (n-2)

Plate H: Resistivity Contour Map, Scale l :4800, (0=2)

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l INTRODUCTION

1.1 GENERAL

JVX Ltd. conducted time-domain spectral induced polarization (IP), resistivity and magnetometer surveys from February 6 through February 16, 1996 on behalf of Sudbury Contact Mines Ltd.. The survey was located on the Northland Property in Gauthier Townships, Northeastern Ontario (N.T.S. 32 D/4). Access to the Northland claims is by the Esker Park and Lebel-Gauthier boundary roads that extend north from highway 66. The work was performed on claims located in Gauthier Township.

The purpose of this survey was to locate areas of economic mineralization.

LOCATION MAPSUDBURY CONTACT MINES LTD.

NORTHLAND GRIDGauthier Twp., Ontario

N.T.S. 32 D/4

Scale : l : 1.600,000Surveyed by JVX Ltd. Oct..1995 - Feb., 1996 Figure l

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2 DATA ACQUISITION

2.1 SURVEY SPECIFICATIONS

Table l : Specifications for the IP/Resistivity Survey

LPJResistivity

Transmitter

Receiver

Array Type

Transmit Cycle Time

Receive Cycle Time

Number of Potential Electrode Pairs

Electrode Spacing (a spacing)

Number of Lines Surveyed

Survey Coverage

Scintrex TSQ3/3.0 kW

ScintrexIPR-11

Pole-Dipole

2 sec

2 sec

6

lOOfUSO metres

10

21100ft.

TABLE 2: Survey Specification for the Magnetometer Survey

Total MaInstrumentSensor TypeStation SpacingSurvey Coverage

pnetic FieldScintrex Envimag MagnetometerProton Precession50ft.19900ft.

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2.2 GRID SPECIFICATIONS

The survey grid, located in Lebel and Gauthier Township, is shown in Figure 2.

2.3 PRODUCTION SUMMARY

Total IP coverage was 4.0 miles. Total magnetometer coverage was 3.8 miles. The following tables list the survey coverage in detail:

Table 3: Production Summary for the IP/Resistivity Survey

Line From Station

OE400 E800 E1200 E1600 E2000 E2400 E2800 E3200 E3600 E

Total

400 S800 S700 S700 S600 S300 S400 S300 S200 S100 S

To Distance No. of Station (ft) Readings1000N1000N1000N1100N2100N2100N2200 N2300 N2400 N1400N

1400180017001800270024002600260026001500

21100

13171617262325252510

197

GRID MAPSUDBURY CONTACT MINES LTD.

NORTHLAND GRIDGauthier Twp., Ontario

N.T.S. 32 D/4

Surveyed by JVX Ltd. Oci.,1995 - Feb., 1996

Scale : l = 10,000

Figure 2

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TABLE 4: Production Summary for the Magnetometer Survey

Line

3600 E3200 E2800 E2400 E2000 E1600 E1200 E800 E400 E

OETotal

From Station

ON2400 N

200 S2200 N

100 S2100 N

600 S1000N

700 S1000N

To Distance No. of Station (ft.) Readings

1400N100 S

2300 N300 S

2100N400 S

1100N600 S

1000N300 S

1400250025002500220025001700160017001300

19900

29515151445135333527

407

2.4 PERSONNEL

Michelle Nield (Party Chief):Ms. Nield operated the Scintrex IPR-11 receiver and was responsible for data quality and theday-to-day operation and direction of the survey.

Mike Fecteau (Operator):Mr. Fecteau also operated the IPR-11 receiver and assisted Ms. Nield with the day-to-dayoperation and direction of the survey.

Rob McKeown (Operator):Mr. McKeown carried out the magnetometer survey.

Three local field assistants were engaged by JVX.

Aleksandra Savic (Geophysicist):Ms. Savic processed the data, prepared the plots, and is responsible for data storage.

Dagmar Piska (Head Draftsperson):Ms. Piska carried out manual drafting, and assembled and bound the report.

Vaso Lvmberis (Draftsperson):Ms. Lvmberis assisted Ms. Piska with all manual drafting and final presentation.

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Joe Mihelcic (Geophysicist):Mr. Mihelcic assisted with data processing and plotting, and interpreted the data.

Gerald Ruygrok (Geophysicist):Mr. Ruygrok wrote the body of the report.

Slaine Webster (President. JVX Ltd.):Mr. Webster provided overall supervision of the survey and interpretation of the data.

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2.5 FIELD INSTRUMENTATION

JVX supplied the geophysical instruments described below. Additional information about the geophysical methods may be found in Appendix A.

2.5.1 l.P. TransmitterThe Scintrex TSQ3/3.0 kW Time Domain Transmitter powered by a ten-horsepower motor generator was used. The transmitter generates square wave current output with a period of 4, 8, or 16 seconds. A digital multimeter in series with the transmitter was used to measure the magnitude of the current output.

2.5.2 l.P. ReceiverThe Scintrex IPR-11 Time Domain Receiver was used. This unit samples the voltage decay curve as measured by the potential electrodes at ten points in time. Readings were repeated until they converge to within a tolerance level, and the data were stored in solid-state memory.

2.5.3 MagnetometerThe Scintrex ENVI System was used. This magnetometer can be operated in the traditional stop and measure mode, or in the "walkmag" mode. The magnetometer can sample at 0.5 second, l second, and 2 second intervals. A base station was used to correct for both diurnal variations and reference field values.

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3 DATA PROCESSING

After being transferred to a field computer at the end of each survey day, the data were examined, corrected, and organized by the instrument operator. The results were plotted on the following printers:

* STAR NX-80 colour dot-matrix printer- EPSON FX-80 dot-matrix printer

These plots were used to monitor progress and data quality, and to make an initial interpretation. Thus survey parameters and design were altered when necessary.

The data were sent by courier to the head office of JVX in Richmond Hill, Ontario. They were processed and results were plotted on the following printers as was necessary:

* HEWLETT PACKARD DESIGNJET 750C 36 inch colour plotter* NICOLET ZETA 36 inch pen plotter* TEKTRONIX COLORQUICK ink jet printer* FUJITSU DL2400 colour dot-matrix printer* TEXAS INSTRUMENTS MicroLaser Pro 600 Laser printer

The processing procedure is outlined below.

3.1 IP AND RESISTIVITY

Steps l and 2 were performed both in the field and in the head office. Steps 3 and 4 were performed at the head office.

1) The GEOPAK IPSECT Package was used to generate colour pseudosections of chargeability and resistivity data.

2) GEOPAK software was also used to perform spectral analysis of the time-domain data. This step was crucial to maximizing the information that may be obtained from IP data. This software analyses the shape of the IP decay curve, giving information about:

(a) the grain size (indicated by the parameter r),(b) the uniformity of the grain size (indicated by c), and(c) the magnitude of the chargeable source (indicated by M-IP).

(Please see Appendix A for more information about spectral analysis.)

JVX

3) The pseudosections from 2 above were aligned in AUTOCAD, then plotted. Since chargeability values are quite low over this grid, none are presented in this report.

4) Contoured plan maps of both chargeability and resistivity data from one dipole were produced using JVX in-house software and the GEOPAK or GEOSOFT Line Processing Package. Additional drafting on these maps was done manually or through AUTOCAD.

3.2 MAGNETICS

1. A contour map and profiles of the magnetic data were generated both in the field and in the head office using the GEOPAK and/or GEOSOFT Line Processing packages.

2. At the head office, the AutoCAD computer-aided drafting package was used to add any necessary features such as title block and north arrow.

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4 INTERPRETATION METHODOLOGY

JVX uses its many years of experience in geophysical interpretation to extract the most accurate information from the data. The procedures involved are simplified for the sake of clarity.

4.1 IP AND RESISTIVITY

The EP and resistivity data are interpreted using the following procedure:

l) Chargeability anomalies are picked on the pseudosections and classified using the following scheme as a guide:

Very Strong p 30 mV/V) and well defined

Strong (20 to 30 mV/V) and well defined

Moderate (l O to 20 mV/V) and well defined

Weak (5 to l O mV/V) and well defined

Very Weak (3 to 5 rnV/V) and poorly defined

x x x x x Extremely Weak (^3 mV/V) and very poorly defined

The peak of the anomaly provides a qualitative indication of the depth to the top of the anomalous source and the location of the centre of the body. Where possible, the location and dipole number of the peak are written beside the anomaly bar.

2) The spectral characteristics of the anomalies are examined. The peak value of M-IP is noted, and r( time constant) is classified according to the following scheme:

L Long^ 10.0 sec)

M Medium (l .0 to 10.0 sec)

S Short^ 1.0 sec)

NOTE: Since chargeability values are overall relatively weak, no spectral data are presented.

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3) Resistivity anomalies are picked on the pseudosections and classified using the following scheme as a guide:

no symbol VH(w) Very High (? 25 000 Qm) highly silicified

no symbol H(w) High (? 10 000 Qm) probably silicified

no symbol WH(w) Weak High (^ 10 000 Qm) relative increase comparedto surrounding material

SL(n) Strong Low — strong decrease in resistivity

ML(w) Medium Low — medium decrease in resistivity

WL(ii) Weak Low — weak resistivity decrease relative to surroundingmaterial,

where n is the dipole number at which the anomaly peak is located.

4) The anomalies from steps l to 3 are marked on the Compilation Map.

5) Resistivity anomalies on the Compilation Map are joined into conductive and resistive zones.

6) Zones of high chargeability are interpreted based on resistivity and geometric information.

7) The anomalies are rated according to JVX1 past experience.

4.2 MAGNETICS

The total field magnetic data are studied for lateral changes of the strength of the magnetic field. The representative contours are chosen to best express both anomalous bodies and lithological contacts.

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5 DISCUSSION OF RESULTS

The interpretation of the geophysical data was compiled onto a single map, and is summarized in the sections following. This Compilation Map and all data plots are included in Appendix B. Several anomalous geophysical zones have been identified on the Compilation Map (Plate 3). These are briefly described below:

/PI.

This 'saddle-shaped' chargeability zone is located in the northeast corner of the survey area. M-IP values are approximately 115-140 mV/V throughout. Time constant, T, values are short throughout IP1 indicating fine-grained sulphides. A single apparent resistivity high zone is located along the northern edge of this DP zone, indicating a possible geologic contact. Magnetics data are generally at a background level of approximately 57,900 nT although much of the ground south of IP J has a higher magnetic susceptibility (refer to colour magnetic map, Plate 5). This suggests a difference in geology within IP1 and immediately south (more ultramafic mineralization south oflPl)

IP2.

This northwest-southeast trending chargeability zone is located immediately south of IP1. It likely continues beyond the survey limits in the northwest. M-IP values of approximately 200 mV/V are located at the northwest and southeast ends of this zone, r values are short although a medium rvalue (medium-grained sulphides) is noted at the northwest end ofIP2.

IPS.

IPS is a good anomaly located along the northern edge of a broad apparent resistivity high zone and between two magnetic high zones in the southern part of the survey grid. This anomaly is apparently continuous from L3600 to L1600, however it is weaker on L2000 and slightly weaker on L2800. A near-surface chargeable feature is noted on L2000 which may be suppressing the response of D?3 in this location. An east-west trending apparent resistivity low zone also passes by the northern extent of IPS. IPS is likely the result of minor (M-EP = 122) fine-grained (short T) sulphides associated with silicification in the south. Magnetic mineralization such as pyrrhotite may also be associated with IPS.

TT

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5.1 EXPLORATION TARGETS

Primary exploration target areas exist where IP chargeability zones are associated with apparent resistivity and magnetic high zones (possible magnetic conductor zone) and/or apparent resistivity and magnetic low zones (possible deformation zone). Target areas may also occur where IP chargeability zones are flanked by magnetic high zones in the absence of resistivtiy highs. Several of the target areas, described briefly below, satisfy these conditions.

-High Priority-

Tl (L2400Ektn.250N): This weak fine-grained target is favourable since it is associated with a high degree of geophysical variability, as discussed earlier. The target is relatively shallow 0^=2).

T2 (L2400Efstn.20SON): Located on the northern edge of IP1, this target area approximately coincides with high apparent resistivity and magnetic zones. The target is relatively deep (n=3). Favourable results at this location should be followed-up towards the east along the apparent resistivity high zone.

-Medium Priority-

T3 (L1600E7stn.l300N): This deep 0^=6) target is located at the northwest end of IP2. It is associated with a relatively strong M-IP value of 206 mV/V although time constant, r, indicates medium-grained sulphides (most favourable targets in this environment are associated with short time constants). An apparent resistivity low axis located immediately north suggests possible shearing. However, the high magnetic values associated with the chargeability anomaly indicate magnetic sulphide mineralization.

T4 (L2000ESstn.llOON): This deep 0^=5) target is located further east of T3 along IP2. It too coincides with high magnetic values. Unlike the anomaly at T3, this chargeability target is associated with a narrow silicified zone.

T5 (L3200Mstn.l50N): An M-IP value of 208 mV/V with short time constant T makes this a favourable target. This target is on the same chargeability zone (IPS) as T-l which is the highest recommended target It also coincides with an apparent resistivity low axis which likely results from a shear zone.

-Low Priority-

T6 (L1600Eystn.50S): This relatively deep target (n^) coincides with a very weak chargeability anomaly having a weak M-IP value (76 mV/V). However, if it can be shown to

TT

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be associated with the area at Tl (a high priority target) which is located approximately 800 feet east, it should be investigated.

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6 RECOMMENDATIONS

All target areas should be visually inspected and sampled. Target areas with favourable results should be expanded along the IP chargeability zone. Prior to drilling, we recommend IP modelling of relevant anomalies and revaluation of the target priorities based on this and other geological information.

If there are any questions with regard to the conducting of the survey or the interpretation of the data, please call the undersigned at JVX Ltd.

Respectfully submitted,

JVX Ltd.

Gerald Ruygrok, B.Sc., M.Sc Geophysicist ^.

Slaine Webster, B.Sc. President

APPENDIX A

Background

to the

Geophysical Methods

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INDUCED POLARIZATION AND RESISTIVITY

l THE IP EFFECT

The induced polarization (IP) phenomenon is primarily caused by:

1) electrical polarization at the boundary between the rock or soil and the pore fluids, and

2) electrical polarization at the boundary between metallic minerals (particularly sulphides) within pores and the pore fluids.

This polarization occurs when a current is applied across these boundaries. Its magnitude can be measured in two ways:

1) in the frequency domain (also known as phase IP), in which the applied current is sinusoidal, or

2) in the time domain, in which the applied current is a modified square wave.

JVX conducts IP surveys in the time domain because spectral analysis, a powerful interpretive tool, can only be performed in the time domain.

Generally, the current is transmitted as a modified square wave with a period of eight seconds (two seconds positive, two seconds off. two seconds negative, two seconds off). The voltage measured in the ground will have the form shown in figure IP-1. The IP effect is manifested as a roughly exponential voltage decay after the current is turned off, similar to the relaxation effect of a discharging capacitor. The IP receiver samples this voltage decay curve at a number of points.

The SCINTREXIPR-11 receiver repeats and averages the following measurements until they converge:

Vp The primary voltage (the steady-state amplitude of the voltage while the current is being transmitted).

IP-1

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SP The self-potential (the steady state voltage when no current is being transmitted).

mO to m9 The chargeabilities (measures of the IP effect at different times along the decay voltage curve Vs(t)).

Each chargeability value (mO to m9) is the ratio of the average secondary voltage over a time window to the primary voltage. Mathematically, this is given by:

r1*m = 1000 l Vs(t) dt

Vp(Vt.) J t,

wherem = chargeability (in mV/V)

Vs(t) = secondary voltage (i.e. the voltage decay) Vp = primary voltage t, = beginning of time window tj = end of time window

The IPR-11 uses the ten time windows, also known as time slices, listed in table IP-1 and shown in figure IP-2. Unless otherwise stated, the term chargeability refers to the eighth time window (m7).

IP-2

Vpi

SP l

Vs(t)

Figure IP-1 : The I.P. Waveform

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SLICE

mO

ml

m2

m3

m4

m5

m6

1*7

m8

m9

DURATION (msec)

30

30

30

30

180

180

180

360

360

360

FROM (msec)

30

60

90

120

150

330

510

690

1050

1410

TO (msec)

60

90

120

150

330

510

690

1050

1410

1770

MIDPOINT (msec)

45

75

105

135

240

420

600

870

1230

1590

Table IP-1 : Time slices recorded by the IPR-11 receiver

Nominal total receive lime 02.1.2.4 sec

11111 6t 6t *Delay

iPP-11 Transient Windows

Figure IP-2 : IP effect decay curve with IPR-11 time slices

IP-4

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2 SPECTRAL ANALYSIS

With the ability to sample the decay curve at a number of points, the shape of the decay curve can be analysed. This gives important information about the characteristics of the source.

Spectral analysis utilises the Cole-Cole model of the IP effect (Pelton et al.. 1978). This model uses the following four parameters (described in Johnson, 1984) to calculate a theoretical IP decay curve:

pa Resistivity (Qm)This quantity is described in detail later in this appendix.

M IP Chargeability Amplitude (mV/V)This quantity is related to the volume percent of the chargeable source, although there is no simple quantitative relationship.

t Time Constant (seconds)The time constant is related to the grain size of the source. A short time constant (0.01 to 0.3 s) indicates a fine-grained source. A long time constant (30 to 100 s) indicates a coarse-grained, interconnected, or massive source.

c Exponent (dimensionless)A high value (e.g. 0.5) indicates that the grain size is uniform. A low value (e.g. 0.1) indicates that there is a mixture of grain sizes.

Conventional chargeability is a combination of these spectral parameters. A change in any one parameter will produce a change in the apparent chargeability. In the absence of spectral analysis, such changes are always ascribed to a change in the volume percent of the chargeable source, even though the cause may be a shijtfromjine-grained to coarse- grained material

JVX has developed a software package called SOFT n which determines the spectral parameters by comparing the measured decay curve with a library of model curves. The quality of the fit is given as a root-mean-square difference (expressed as a percentage). A low value (e.g. l Oxb) indicates high quality data of medium to high amplitude. A high value (e.g. greater than 10 96) indicates poor quality or low amplitude data. If the fit is greater than 5 96, the spectral parameters are considered to be of poor quality, and therefore are usually discarded.

IP-5

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3 ARRAY CONFIGURATION

As mentioned above, a current must be flowing through the ground in order for the IP effect to occur. This current is applied using two electrodes, which are called C l and C2, and the voltage decay is measured using two potential electrodes, PI and P2. The distance separating PI and P2 is known as the a-spacing, or a, and generally remains constant during the survey.

The three most common electrode array configurations are:

1) GradientC l and C2 are located at an "infinite" distance (i.e. very far) from the grid, withone on each side. The potential electrodes move throughout the grid.

2) Dipole-DipoleC l and C2 are separated by a distance of o, and move along with the potential electrodes.

3) Pole-DipoleC2 is located at "infinity". CI moves along with the potential electrodes throughout the grid.

The gradient array allows for fast reconnaissance surveys. However, no depth information is obtained (described below), and the resolution is much lower because all of the ground between CI and C2 is energised. Furthermore, the current will be channelled through conductive zones, which could result in inaccurate chargeability and resistivity values. Thus, great care must be used when using a gradient array.

In JVX* experience, the pole-dipole array is superior to the dipole-dipole array. Since C2 is located at an infinite distance, a greater volume of ground is energised. This results in better depth penetration (i.e. higher quality data), and is particularly important in the presence of thick and/or conductive overburden. However, the pole-dipole array does not have the disadvantages of the gradient array. Since C l is located near the potential electrodes, depth information is obtained (see below), and resolution is high.

4 A-SPACING AND NUMBER OF DIPOLES

The resolution of the data depends on o, the electrode spacing. The smaller a is, the greater the resolution. However, the depth of penetration is also smaller. A larger a results in greater depth, but less resolution. Thus, both factors must be considered when selecting the electrode spacing.

The standard pole-dipole array is shown in figure IP-2. Seven potential electrodes are used to measure the voltage simultaneously across six electrode pairs (PI -P2. P2-P3, P3-

IP-6

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P4, etc.). Each pair is labelled using an integer, n. where na is the distance between the first potential electrode and the nearest current electrode.

The depth of investigation is greater when the potential electrode pair is farther from the current electrode (i.e. larger n). However, a greater separation distance aJso results in greater signal attenuation, limiting the number of dipoles which could be used effectively.

5 RESISTIVITY

The DC apparent resistivity (pa) is a measure of the bulk electrical resistivity of the subsurface. Electricity flows primarily through the groundwater within fractures and pore spaces. Therefore, fault zones can be detected as low resistivity zones. However. sulphide minerals, some oxides, and graphite are also good conductors and so produce low resistivity zones. The current flow is electronic in these minerals rather than electrolytic as it is in groundwater. Sometimes, the geometry of the low resistivity zone can distinguish between a fault zone and a mineral source. In other cases, additional geological information is needed. Silicates, the most common rock forming minerals, are very poor conductors of electricity, producing high resistivity zones.

The resistivity is measured simultaneously with the IP data. For a homogeneous and isotropic subsurface, it is given by the following formula:

wherepa = apparent resistivity (Qm)Vp = primary voltage (measured while current is on) (mV) k = k- factor (m)

The k-factor is an array-dependant component. For a pole-dipole array, it is given by:

k = 2;tn(n*l)a

wheren = dipole multiple (dimensionless) a = electrode separation (m)

Although the assumption of a homogeneous and isotropic earth is unrealistic, the calculated value of pa can be used qualitatively to map changes in rock type (even to identify the rock type in some cases), and to map low resistivity fault zones.

IP-7

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References

Johnson. I.M. Spectral I.P. Parameters as Determined through Time Domain Measurements, pp. 1993-2003 Geophysics 49, 1984

Johnson, I.M., B. Webster, R. Mathews. and S. McMullan Time Domain Spectral IP Results from Three Gold Deposits in Northern Saskatchewan. The Canadian Mining and Metallurgical Bulletin, Feb. 1989

Pelton. W.H.. S.H. Ward. P.O. Hallof, W.P. Sill. P.H.Nelson Mineral Discrimination and Removal of Inductive Coupling with Multifrequency IP, pp. 588-609, Geophysics 43, 1978

IP-8

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MAGNETIC METHOD

The magnetic field measured at any point on or above the earth's surface is a combination of:

1) the earth's magnetic field,

2) the induced magnetization of near-surface material, and

3) the remanent magnetization of near-surface material.

The total measured field is equal to the vector sum of the magnetic field arising from all three factors.

1 THE EARTH'S MAGNETIC FIELD

The earth's magnetic field is similar in form to that of a bar magnet. The flux lines of the geomagnetic field are vertical at the north and south magnetic poles where the strength is approximately 60 000 nT (or gammas). In the equatorial region, the field is horizontal and its strength is approximately 30 000 nT. This field can be considered to be constant in space and time for exploration surveys.

2 INDUCED MAGNETIZATION

An external magnetic field (for example, the earth's) induces the magnetization of a ferrous body. This magnetized body then produces an additional magnetic field, known as the induced field, which is given by the following formula:

^ kH

where:I = the induced magnetic field (nT) a vectork = the volume magnetic susceptibility of the materialH = the external magnetic field (nT) a vector

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Thus, the strength of the induced magnetic field is a function of the susceptibility of the body. In turn, the susceptibility is a reflection of the content of ferrous minerals, most importantly magnetite. Note that the induced field is parallel to the external field.

3 REMANENT MAGNETIZATION

The remanent magnetization of rocks depends both on their composition and their previous history. Whereas the induced magnetization is nearly- always parallel to the direction of the geomagnetic field, the natural remanent magnetization may bear no relation to the present direction and intensity of the earth's field. The remanent magnetization is related to the direction of the earth's field at the time the rocks were last magnetized. Generally, one can assume that there is no significant remanent magnetization when interpreting magnetic data.

4 DIURNAL CORRECTION

Although the earth's magnetic field is essentially constant, time-varying magnetic fields may result from atmospheric phenomena. Fields due to magnetic storms may vary by hundreds of nanoteslas in a few minutes. Therefore, it is necessary to monitor the background magnetic field constantly using a stationary base station magnetometer. The field measurements can then be corrected for the background magnetic variation. This process is known as diurnal correction.

5 INTERPRETATION

Magnetic data are used to map regions of different magnetic susceptibilities (i.e. ferrous content). The magnetic method cannot detect gold directly, but it can map structures which can aid in locating areas of silicification and carbonization. When used in conjunction with geological and other geophysical data, magnetic data can help select targets which are favourable for economic mineralisation.

MAG-2

APPENDIX B

Plates

i l I tl l l

i ! f i ! l * ! *

•ry of

*dMkiesrteport of Work Conducted After Recording Claim 1 DOCUMENT No.

. m m —f l^^^—^^.^^JB-B dhdJI^brf^^ui 4Mb Mk^ SB^P^M k nfrrf^lrt^fl aM^iA^^ el^M ^urfftM^rfSftj 4^ •fth^ ftfbhbw* A*^ ^^*b40MI inionMBon COMCVQ on nwmrm M oDtaWwaunovinveMUWsiy oiinviswing ACI. iiw ris oOetoctton iliould tot dbtdotf lo vw Pfowndei MsYtflQor( MnnQ LsVictot MhiMfy of Noitnem udbury. Ontario. P3E 6A6, teHphorn (706) 970-7284.

istructkms: - Please type or print and submit in duplicate. - Refer to the Mining Act and Regulator '

1*1 j n m mm ail a M uJM ^..— --— — -J in* ••••••^•ai n-—^ —— — —•umirwoon VAN De* UMQ wf corTMponaencv.

A separate copy of this form must be i Technical reports and maps must accc A sketch, showing the claims the work 32D04NW0372 2 16590 GAUTHIER

DejweJopnwil end MbMs, Fourth Floor, 150 Center StfMt*

"'ning

900

/ork Performed (Check One Work Group Only)WorkGroup

Geotechnfcal Surveyrn. -i.. ,.| laf^rfrpnyMcai wont, Indudkig DrMng

Ottiar Authorized Work

Assays

AssiynffiMnl fiwTin069W9

Type

Sp*At*Ji "rf , (^*s:sU^j rVVx^^b*. ^r^s * L**^\^

Rfcubl VED

li JUN 6 - 1996 S

MINING LANDS BRANCH

otal Assessment Work Claimed on the Attached Statement of Coststot*: The Minister may reject for assessment work credit all or part of the assessment work submitted if the recorded

holder cannot verify expenditures claimed in the statement of costs within 30 days of a request for verification.

arsons and Survey Company Who Performed the Work (Give Name and Address of Author of Report)Name Address

r\r*LW

ittcch c •cltcduto H

erttncatlon of Beneficial krterest * See Note No. 1 on reversel carttly ttMt A th* Urn* Hw work ww pwlonMd. DM datom coUrad In this wwk report w*A rwontod hi Hw cum* hoUVs nwm or hekJ under a banaAdal hMraH by th* currant raoordtd hoMtor.

erttncatlon of Work Reportl hiM c pwMMri KnowtodB* "^ "** (sets MI forth In tNs Wofk

nd mnnwl report to irw.t, hiving pwtoniwd the work or wNnMMd MIM during •nttfor

l

ii fOD Ob

o

i f!vi

CMG^ -U

c t

CA

o

(III

O 0 0

Credits you are claiming in this report may be cut back. In order to minimize the adverse effects of such which claims you wish to priorize the deletion of credits. Please mark O) one of the following:1. D Credits are to be cut back starting with the claim listed last, working backwards.2. Q^ Credits are to be cut back equally over all claims contained in this report of work.3. D Credits are to be cut back as priorized on the attached appendix.

In the event that you have not specified your choice of priority, option one will be implemented.

t, please indicate from

Hotel: Examples of beneficial Interest are unrecorded uanafeia, option agieomenU. memorandum of agreements, etc.. wHh reapedto •tfeA MloklMtfH —* — *——~ — me mining cwm*.

Note 2: H work hat been performed on patented or leased land, please complete the following:

l certify that the recorded holder had m beneficial interest tot the patented or teased land at the tbne the work was performed.

Signature Oete

Ministere du Devatoppament du Nord •t des mines

Statement of Costs for Assessment CreditEtat des coOts aux fins du credit devaluationMining Act/Lol sur le* mines

Transaction NoVN* da transaction

Personal Information coBactad on this form is obtained under the authority of the Miring Act This information wM be used to maintain a record and ongoing rfalus of the mining dalm(s). Questions about this collection should be oTrectad to the Provincial Manager. Mbdngs Lands. MWstry of Northern Development and Mines. 4th Floor. ISO Cedar Street Sudbury. Ontario P3E 6A5. telephone (705) 670-7264.

Les renseignements personnels contenus dans la presente tormule soot recueiKs en vertu de la Lol aur lea mlnaa at serviront a tanir a jour un registre das concessions minieres. Adraaaar touta question sur la ooflaca de ces renseignements au chef provincial des terrains mmiers. ministere du Devetoppoment du Nord et des Mines. ISO. rue Cedar. 4* Mage. Sudbury (Ontario) P3E 8AS. telephone (705) 670-7264.

1. Direct Costs/Couts directs

Type

VafaWlaWl

Contractor's and Coneultant's

Drattade I'entrepreneuret da I'expeil- oonaaM

juppHae Used FoumMuree utflliisi

tonW oopon dola^ifai^il

Description

Labour Main-d'oeuvre

Field Supervision Supervision sur la terrain

(r6cft,r±,t±

LifJectAif/Atj-

Type

Type

Amount Montant

I2.,JV*

\W

Total Direct Costs Total de* couts directs

Totals Total global

G,lW

13,479

2. Indirect Costs/Couts indlrects* * Note: When claiming Rehabiltation work Indirect costs are not

allowable as assessment work. Pour le remboursement des travaux de rehabilitation, les couts indlrects ne sont pas admtesibtes en tant que travaux d'evaluation.

Type

Transportation Transport

Food andLodging NourrKura et

^Sf

AaiountAkMrabtef

Description

Typ*

Sub Total of Indli Total partJel das cooh

Amount Montant

red Costa* | -J|,, n ta

inanvciiV

not greater than 20* of Direct Coats) (n excedant paa 20 9fc oea coois dkecta)

[ToM of Direct SMI /UtowtM* d*4vakiaHi MbertcoeM fTeMdMM

fedUcnWiS) ^^

Totals Total global

ia: The recorded holder will be required to verify expenditures claimed in this statement of costs within 30 days of a request for verification. If verification is not made, the MWster may reject for assessment work ei or part of the assessment work submitted.

Note : Le titutaire enregistr* sera tenu da verifier las dopele present etat das couts dans lea 30 Jours survam une demanda a cat effet. SI la verification n'astpas effectual, la ministrepeutrejeter tout ou une pertte das travaux Devaluation prescott*.

ng Discount* Remises pour depot

Work filed within two years of completion is claimed at lOtHb of the above Total Value of Assessment Credit

1. Las travaux deposes dans to* deux ans suivant tour achievement sont ramboursasatOOttdalava^totaiesusrnentkirMeaducra*^

Work filed three, four or five years after completion is claimed at 504* of the above Total Value of Assessment Credit See calculations below:

l Value of Assessment CredT Total Ai ntCtain

x 0.50 -

2. Les travaux dftposes trois. quaire ou cinq ans apres tour achevamant sont rembourses a 50 * de la valeur totale du credit d'evaluation susmentionn*. Voir les cafculs cWessous,

Valeur totals du credit d'evsluaikm Evx 0.50 -

ebon lots MM*

lineation Verifying Statement off Costs Attestation de I'etat des coOts

eby certify:he amounts shown ara as accurate as possible and these costs incurred whle conducting assessment work on the lands shown e accompanying Report of Work form.

J'atteste par la presente :que lea monlants indiques sont le plus exact possible et quo ces defenses ont et4 engagees pour effectuer les travaux d'evaluation sur lea terrains indiques dans la formule de rapport de travel Ojo**.

is l am authorizedAgtnt. PMtton to Company)

Et qu'a tttre de——^ MkMresnregMe.

Je sute autorise

ke this certMcadon

OntarioMinistry ofNorthern Developmentand Mines

Ministere duDeveloppement du Nord et des Mines

Geoscience Assessment Office 933 Ramsey Lake Road 6th Floor Sudbury, Ontario P3E 6B5

August 19, 1996

Telephone: (705) 670-5853 Fax: (705) 670-5863

Our File: 2.16590 Transaction #: W9680.00302

Mining RecorderMinistry of Northern Development St Mines4 Government Road EastKirkland Lake, OntarioP2N 1A2

Dear Mr. Spooner:

SUBJECT: APPROVAL OF ASSESSMENT WORK CREDIT ON MINING LAND, CLAIM (S) 550824 ET AL. IN GAUTHIER TOWNSHIP

Assessment work credit has been approved as outlined on the Declaration of Assessment Work Form accompanying this submission. The credit has been approved under Section 14, Geophysics (IP,MAG) of the Assessment Work Regulation.

The approval date is August 16, 1996. Please indicate this approval on the claim record.

If you have any questions regarding this correspondence, please contact Steven Beneteau at (705) 670-5855.

Yours sincerely, ORIGINAL SIGHTED BY:

RofT C. GashinskiSenior Manager, Mining Lands SectionMines and Minerals Division

SBB/jf

cc: Resident GeologistKirkland Lake, Ontario

Assessment Files Library Sudbury, Ontario

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1600 N

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1300N

1200 N

1 100 N

1000 N

900 N

800 N

700 N

600 N

500 N

400 N

300 N

200 N

100 N

100 S

200 S

300 S

400 S

500 S

600 S

o o t

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32DCMNW0372 2 16590 GAUTHIER 210

Ul Oo o o

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o o o o03 CN

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2100 N

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1 900 N

1 800 N

1 700 N

1 600 N

1 500 N

1 400 N

1 300 N

1 200 N

1 100 N

1 000 N

900 N

800 N

700 N

600 N

500 N

400 N

300 N

200 N

1 00 N

1 00 S

200 S

300 S

400 S

500 S

600 S

16

SUDBURY CONTACT MINES LTD.NORTHLAND GRID

LEBEL AND GAUTHIER TWP., ONT._______N.T.S. 32 D/4——————

CHARGEABILITY (m?) CONTOURS (11=8)CONTOUR INTERVALS : l ft 5 mV/V

SURVEYED BY JVX LTD. USINGSCINTREX IPR-11 Rx ; IPC-7/2.5 kW Tx

SUMMER 1995

200 200

FEET

400 600

PLOTTED BYA.S.

FEB. 1996SCALE 1:2400 PLATE l

JVX ref no. 9568

o

2200 N

2100 N

2000 N

1900 N

1 800 N

17OO N

1600 N

1 500 N

1 400 N

1 300 N

1200 N

1 100 N

1 000 N

900 N

800 N

700 N

600 N

500 N

400 N

300 N

200 N

100 N

100 S

200 S

300 S

400 S

500 S

600 S

uio o••t

o oQO

o oCM

o oID

o o o(N

o o "1-OoCO tN

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32D04NW0372 2.16590 GAUTHIER 220O O CO

O O CN

O O (O

UJo o ocsi

Oo O O 00 fN

Oo(Nlro

O O (O (O

2200 N

2100 N

2000 N

1 900 N

1 800 N

1 700 N

1 600 N

1 500 N

1 400 N

1 300 N

1 200 N

1 100 N

1 000 N

900 N

800 N

700 N

600 N

500 N

400 N

200 N

00 N

1 00 S

200 S

300 S

400 S

500 S

600 S

1996

cP O

SUDBURY CONTACT MINES LTD.NORTHLAND GRID

LEBEL AND GAUTHIER TWP., ONT. ______N.T.S. 32 D/4_______

RESISTIVITY CONTOURS (11=2)CONTOUR INTERVALS : 500 St 2500 ohm m

SURVEYED BY JVX LTD. USINGSCINTREX IPR-11 Rx ; IPC-7/2.5 kW Tx

WINTER 1996

200 o 200

FEET

400 600

PLOTTED BYA.S.

FEB 1996SCALE 1:2400 PLATE 2

JVX rt t. no. 9566

o (i O O K 750K l OOOK i 500E l 7 50 K •JOOOK •J-J50K •J500K •J 7.") O K :U)OOK 3500E M750K

2500N

JOOON

1750N

IfiOON

l 250N

l DOON

750N

500 N

O

LJ50S

750S

i

19

l

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-64

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-120

-111

-131

-1Z4

-96

-67

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-89

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-176

-K

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-B

-18

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-B

-W

-K

-B

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o I50E 500E

32D04NW0372 2 16590 GAUTHIER 230

ODO O

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-I9f.

-198

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-250

-174

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-164

-ll.t

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177

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409

OD Oow

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l 500N

l -J50N

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O

'J50S RECEivED

JUN 5' - 1996

MINING LANDS

165 90

f-N-

)OOS

100

Scale 1:L'40()100 LJOO HOO 400

•H

(fe.-t)

500 600

750S

M7")()KSUDBURY CONTACT MINES LTD.

TOTAL FIELD MAGNETICSNORTHLAND GRID

NTS-32D/4, ONTARIOMASK - 58,000 nT. PROFILES l cm - ^50 nT

SCINTRKX KNVIMAG MACiNKTOMKTEKSURVEYED WINTER 1995

JVX LTD. PLATE 3

O 250E 500 E 750 E 100 O K l -J50K 1500K l 7f)()F ^000 K TJfiOK •JfiOOK -T) O K MfiOOE

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l fiOON

1L'50N

1000N

750N

500N

SfiOS

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i( feet)

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L'SOE 500E 750E

32D04NW0372 2.16590 GAUTHIER 240

IOOOE l L'SOE l 500E 17T)()E •JOOOE •.T)()OE :J7.r)OE

SUDBURY CONTACT MINES LTD.TOTAL FIELD MAGNETICS

NORTHLAND GRID NTS-32D/4, ONTARIO

CONTOURS 100 iiT, 500 nTSCINTREX ENVIMA(; MAGNETOMETER

Sl'RVEYEI) WINTER 1995

JVX LTD. PLATE 4

2500N-

!250N

2000N -

1750N

l SOON -

1250N

l DOON

750N -

SOON

250N-

250S-

500S-

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250E 500E 750E 1000E 1250E 1500E 1750E 2UOOE 2250E 2500E 2750E 3000E 3500E 3750Ei

:500N

!250N

-2000N

1750N

1500N

-1250N

1000N

750N

- 500N

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-500S

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58446

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56393

58366

58339

58912

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58ZB0

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68206

68178

68151

58124

68096

66071

68044

68017

67900

67963

67937

67910

67883

67806

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57602

67776

87749

57722

57895

57BM

57841

67616

67566

67634

67607

67480

67464

67427

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Scale 1:2400100 200 300 400

(feet)

250E 500E 750E 1000E 1250E 1500E 1750E 2000E 2250E 2500E 2750E 3000E 3250E 3 50 O K 3750E2-16590

000 600

3?D04NW0372 2 165SO GAU l HlbR 250

SUDBURY CONTACT MINES LTDTOTAL FIELD MAGNETICS

NORTHLAND GRID NTS-32D/4, ONTARIO

SCINTREX ENVIMAG MAGNETOMETER SURVEYED WINTER 1995

JVX LTD. PLATE 5

2500N -

250Ei

500Ei

750Ei

1000E 1250E 1500E 1750E 2000E 2250E 2500E 2750E 3000E 3250E 3500E 3750E

-2500N

2250N -

2000N -

1750N-

1500N-

1250N-

1000N-

750N-

500N-

250N-

0-

250S-

500S-

0=5

11 = 5

- 2250N

-2000N

-1750N

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-750N

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-250N

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-250S

-500S

LEGEND

Very Strong

Strong

Medium

Weak

M-IP(mVyv) 517 , L j Time Conttant (Long.Medium or Short) —' |

VwyWMk :

Extremely Weak

CHARGEABIUTY ANOMALY

WH(2) - Weak High Resistivity, n-2 H(1) - High RestotMty, n-1 VH(2) - Very High Resistivity. n^2

l Strong Resistivity Low

Medium Resistivity Low

l

Weak Resistivity Low

Very Weak Resistivity Low

RESISTIVITY ANOMALY

/P-7 Chargeability Zone

Apparent Resistivity Low Axis

Apparent Resistivity High Zone

Magnetic High Zone

Exploration Target

H - High Priority M - Medium Priority L - Low Priority

M RECEIVED

JUN B - 1996

MINING LANDe "'"' '\'CH

100Scale 1:2400

100 200 300 400 500 600

750S- -750S

i O 250E 500E

32D04NW0372 2.16590 GAUTHIER260

750E 1000E 1250E 1500E 1750E 2000E 2250E 2500E 2750E 3000E 3250E 3500E 3750E

SUDBURY CONTACT MINES WDCOMPILATION MAP

NORTHLAND GRID NTS-32D/4, ONTARIO

SUKVEYED WINTER 1995JVX LTD.

Plate 6

- -J— I

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58!-d

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8108 OS 1003 OH 100N SOON 300N 400 N 6OON 800 N 700N BOOK BOON

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-760'

1696.6—tom—nwro—TdWflMftJLO——UBfl.0 1376.0 1408.0 1389.0 1409.0 1370.0 1389.0 1386.0 1410.0 ^ 1600.0——————-————-————"——————————— 1600.0—-——————

1837.0 1666.0 1743.0 1663.0 1764.0 1740.0 17830 1727.0 1746.0

966.fr- 31864 2086.0 8130.0 8098.0

nos as tops -OIL 100M 300N 3OON 400 N SOON BOON 700 N BOON BOON5001

10 -1.0 1.1 v .9 —1.0

.4 .3 .6 .8

TOPS 6008 6008 4003 8003 8003 1003____ON lOON 200H 30QN 400* N 700N BOON 900N

150.0 1436.0 1174.0' 206*0 1772.0 1382.0-729.0 1677.0

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OH 300N 400N SOON OOON 700 N BOON 900N

798.1 404.9 518 l 464.4

665.6 596.9 682.0 629.2 665.1000

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6008 5003 4003500

1B08.0 1690.0 1666.0 1766.0 1697.0 1967.0 1684.0 1691.0 156U)

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l 5090.0

88 l1.0 4270.0^4763.0 1711.0L l/T^ /~~~613oJb t l*16.0y/Z838.0 2

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N 26*7.0 2280.0 2409.0 2480.0 8281.0^ 1798.0

ON lOON 200N 300N 400 N SOON BOON 700 N BOON 900N lOOON

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165

Plate 7a

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