Geology and Mineralization

of the

Island Copper Property, Sault Ste. Marie, Ontario

A. Hamid Mumin, Ph.D., P.Eng And

John Camier, B.Sc. (Specialist)

February, 2002

GEOLOGY AND MINERALIZATION

of the

ISLAND LAKE PROPERTY,

SAULT STE. MARIE, ONTARIO

February, 2002

Prepared by

A. Hamid Mumin, Ph.D., P. Eng. and John Camier, B.Sc. (Specialist)

Department of Geology, Brandon University, Brandon, Manitoba, Canada, R7A 6A9

iii

Table of Contents

Title Page…………………………………………………….…………………………….i Table of Contents…………………………………………………………..…...…………ii

List of Tables……………………………………………………………………………..iv

List of Figures…………………………………………………………………………….iv

Summary..…………………………………………………………………………………1 Introduction and Terms of Reference……………………………………………………..3 Disclaimer…………………………………………………………….…………………...3 Property Description and Location………………………….………….…………………4 Accessibility, Infrastructure, Local Resources, Climate and Physiography………………4 History and Previous Work on the Island Copper Property……...……………………….9 Geological Setting………………………………………………………………………..17 Geology and Mineralization of the Island Copper Property ..…………..………27 Deposit Types……………………………………………………………………..……..31 Mineralization……………………………………………………………………………33 Exploration of the Island Copper Property...…………………………………………….34 Geophysics……………………………………………………………………….35 Drilling on the Island Copper Property……..…………………………………………...36 Sampling Method and Approach………………………………………………………...38 Sample Preparation, Analyses and Security……………………………………………..38 Data Verification…………………………………………………………………………38

iv

Mineral Resource and Reserve Estimates…..……………………………………………39 Other Relevant Data ……………………………………………………………………39 Interpretation and Conclusions…………………………………………………………..39 Recommendations……………………………………...………………………………...42 References………………………………………………………………………………..43 Certificates……………………………………………………………………………….45 Appendix 1: Petrographic Reports………….……………………………………………47 Appendix 2: Whole Rock Geochemistry...………………………………………………57

v

List of Tables Table 1: Claim Standing………………………………………………………………….7 Table 2: Summary of Exploration..…………………………………………………..….10 Table 3: Significant Drill Hole Assays...…………………………………………..…….11 Table 4: Summary of Historical Drilling…………………………………….…………..37

List of Figures Figure 1: Location Map………………………………………….……………….….……5 Figure 2: Property Claims and Patents.…………………………….………….………….6 Figure 3: Historical Drill Hole Locations….………………………………..……….…..12 Figure 4: Historical Drill Hole Locations.…………………………………….…………13 Figure 5: Historical Drill Hole Locations.…………………………………….…………14 Figure 6: Historical Drill Hole Locations.…………………………………………….…15 Figure 7: Geology of the Island Copper Property………………………………….……18 Figure 8: Residual Gravity…………………………………………………………….…19 Figure 9: IP - Fraser Filtered Chargeability…...……………………………...…………20 Figure 10: Residual Aeromagnetic Data - Regional…………………..…………………21 Figure 11: Aeromagnetic Data and Mineral Occurrences.………………………………22 Figure 12: Regional Geology….…………………………………………………………24 Figure 13: Trench at the Main Copper Showing – Photograph….………………………26 Figure 14: Geological Contact Between the Gros Cap Gneiss Breccia and Mineralized Albite Granite Breccia - Photographs…….……….………………………..30 Figure 15: Schematic Geological Model for Island Copper Mineralization…..…………41

1

Summary

This report on the Geology and Mineralization of the Island Copper Property was prepared at the

request of the Directors of Golden Temple Mining Corporation (hereafter referred to as the Company). The

report describes the geology and mineral potential of the property, and presents a summary of the relevant

geological work that has been carried out to date.

The Island Copper property is located approximately 19 kilometres northeast of Sault Ste. Marie,

Ontario, north of the cottage community of Island Lake (Figure 1). The property is situated northwest of the

junction between Highways 556 and 552, and straddles Highway 552. The Island Copper property is

comprised of four Falconbridge claims, three YMCA patents and the Nystedt leasehold patents (Figure 2,

Table 1).

The property hosts significant copper mineralization in altered, hematite-rich albite granite breccias at

and near the contact with Gros Cap granite and granodiorite gneiss. The mineralized breccias occur near the

intersection of major structures, and are accompanied by alkali metasomatism (Na +/- K enrichments), and

chlorite, amphibole and Fe-oxide alteration. The copper occurs as chalcopyrite associated with pyrite and

Fe-oxides.

At least 37 diamond drill holes were previously drilled on the southeastern portion of the property to a

maximum vertical depth of ~ 137 meters. Copper values are reported for most of the drill holes, but cannot

be independently verified due to improper storage of the core. Recent work includes detailed geology,

surface sampling, and magnetic, gravity and chargeability geophysical surveys. Coincident chargeability and

gravity anomalies remain largely untested.

It is recommended that this property be further explored in the light of recent advances in the

understanding of Fe-oxide copper-gold type deposits. The historical diamond drilling and surface data needs

to be replotted and evaluated for: 1) any trends in copper grades, 2) variations in intensity and type of

alteration mineralogy, 3) variations in the style and intensity of brecciation, and 4) the association of major

and subordinate structures with brecciation, hydrothermal alteration and mineralization. These evaluations

combined with a general and thorough overall property evaluation, including the current geology and

2

geophysics should be carried out prior to any decision regarding how much and where further diamond

drilling is conducted.

It is also recommended that the assay procedures be tested using several independent methods

(including NAA) on splits of the same sample, in order to determine the best method to assay for copper and

gold in this particular deposit.

3

Introduction and Terms of Reference

This report on the Geology and Mineralization of the Island Copper Property was prepared at the

request of the Directors of Golden Temple Mining Corporation (hereafter referred to as the Company), in

order to fulfill certain regulatory reporting requirements following the signing of an Option and Joint Venture

Agreement between Falconbridge Limited and Golden Temple Mining Corp. The report describes the

geology and mineral potential of the property, and presents a summary of the relevant geological work that

has been carried out to date. This report is an independent geological assessment of the property as of the

date of writing.

Both writers have previously investigated this property. A petrographic report was prepared by

Camier and Mumin (1999) for Falconbridge, describing the petrography of selected samples from the Island

Copper property (Appendix 1). Mr. Camier visited the property briefly in the summer of 1999, and carried

out detailed mapping and sampling of the property for 6 weeks in July-August, 2000, and a further 2 weeks

in July, 2001. Mr. Camier researched the historical work on this property in 2000 and 2001, and prepared

two further reports with maps and diagrams for Falconbridge Limited, based on both historical and current

geological information (Camier and Mclellan, 2000; Camier and Oosterman, 2001). The present evaluation

is based largely on these reports, current and historical data, and the writers experience on the property. Both

writers are knowledgeable about, and active in, the investigation of Proterozoic Fe-oxide Copper-Gold

deposits in Canada.

Disclaimer

All statements regarding historical diamond drilling and associated assays cannot be independently

verified, since the drill core has not been maintained in a useable condition. Also, historical surface assays

have not been independently verified. However, drill logs with assay data are available for review.

4

Property Description and Location

The Island Copper property is located approximately 19 kilometres northeast of Sault Ste. Marie,

Ontario, north of the cottage community of Island Lake (Figure 1). The property is situated northwest of the

junction between Highway's 556 and 552, and straddles Highway 552. The Island Copper property is

comprised of four Falconbridge claims, three YMCA patents and the Nystedt leasehold patents (Figure 2,

Table 1). All claims were in good standing at the time of writing as indicated in Table 1.

The Falconbridge claims bound the patents held by the YMCA of Sault Ste. Marie on the north, west

and southwest. The YMCA patents contain the main copper showings. Falconbridge currently has an option

to earn a 100% interest in the YMCA patents as defined in the Falconbridge-YMCA option agreement

(February 21, 2000). Falconbridge also has options on the Nystedt patents, which consist of two surface and

mining leasehold patents owned by the Nystedt family of Sault Ste. Marie, Ontario. The Nystedt patents

were optioned to Falconbridge Limited in August 2000. These claims are immediately south of the YMCA

patents.

Accessibility, Infrastructure, Local Resources, Climate and Physiography

The Island Copper property is easily accessed by paved highway from Sault Ste. Marie (Figure 1).

The property can be accessed by traveling north along the Trans-Canada Highway (#17) for ~ 15 kilometers

to highway 556 at Heyden. Proceed northeast on 556 for ~ 5 kilometers to the junction of Highways 552 and

556, which is in the southeast corner of the property. The property straddles Highway 552 for approximately

3.5 kilometers NNW of the junction with Highway 556 (Figure 1). The cottage community of Island Lake is

situated near the property at the junction of Highways 552 and 556, and along the northwest shore of Island

Lake. Algoma Central Railway (ACR)

5

Figure 1: Location of the Island Copper Property north of Sault Ste. Marie, Ontario. Map orientation

is north-south/east-west.

6

Figure 2: Island Copper property claim and patent map. Map orientation is north south/east-west.

7

Table 1: Claim status for the Island Copper property

Owner Claim Number

Recording Date Due Date Claim Unit Size

Standing

Falconbridge Limited 1239731 September 1, 1999 September 1, 2002 8 Good Falconbridge Limited 1239732 September 1, 1999 September 1, 2002 3 Good Falconbridge Limited 1239733 September 1, 1999 December 9, 2002 8 Good Falconbridge Limited 1239734 September 1, 1999 September 1, 2002 4 Good

Nystedt Family, Sault St Marie

Leasehold Patent

N/A N/A 2 blocks surface

and mining rights

Current

YMCA, Sault Ste Marie

Freehold Patent

N/A N/A 3 blocks surface

and mining rights

Current

8

passes on the southeast boundary of the property. A 5-car spur line is located off the gravel quarry on the

eastern side of the property, and is leased from the YMCA by DCI Investments of Sault Ste. Marie. This

quarry is located on the eastside of Highway 552 across from the main Cu-showing of the Island Copper

property. The property is within easy access to major infrastructure, including air, rail, highways, power and

port facilities at the city of Sault Ste Marie. Sault Ste. Marie is a major commercial and industrial city of ~

100,000 inhabitants, located on the St. Marys River which connects Lake Superior and Lake Huron. Sault

Ste. Marie serves a large portion of north-central Ontario, and is connected by international bridge directly to

Sault Ste. Marie, U.S.

The climate and physiography of the property is typical of the Canadian Shield east of Lake Superior.

The climate is northern temperate with warm summers and cold, snow-covered winters from approximately

November through to Early April. Steep hilly terrain occupies the southern and central portions of the

property, while the northern area drops steeply at first, then gently towards the Goulais River valley. The

region is covered with a mixture of outcrop and overburden consisting of glacial sand and gravel in varying

thickness that is covered by humus. Outcrop exposure averages <10% and occurs predominantly along rocky

ridges, hilltops and cliff faces. Thin coverings of glacial overburden and humus occur along the flanks of

rocky ridges and covers the small valleys between the ridges in the southern areas of the property. This

increases to a relatively thick covering of glacial lacustrine-derived tills in the north towards the Goulais

River valley where outcrop exposure is very minimal to non-existent. The area is overgrown with thick

stands of maple alternating with cedar and spruce. Drainage along the northern portion of the property is

towards the Goulais River and forms deep ravines with fast-flowing creeks. However, drainage is relatively

poor in the central highland area of the property, and forms occasional swamps and beaver ponds between

the hills with surface water available for diamond drilling.

9

History and Previous Work on the Island Copper Property

Copper mineralization was first discovered in the area over 90 years ago. Very little information

about the early exploration history can be found, the exception being an historic adit on the property. The

adit has since been backfilled and the length of the drift is unknown with only the top of the adit visible

below a horizontal drill hole. The ground was reportedly explored during the 1950's with some diamond

drilling. However, detailed assessment research conducted by Highland-Crow Resources Ltd., Falconbridge

Limited and the authors could not find any records of this drilling. The Geological Survey of Canada and the

Ontario Geological Survey carried out reconnaissance mapping in the region during 1964 and 1965,

respectively. This work generated some interest in the potential of the area. A detailed summary of

exploration of the area and property is listed in Table 2.

Prospecting in 1965 by Kennco Explorations (Canada) Ltd. near the adit led to the discovery of the

hilltop showing. Kennco defined an area of chalcopyrite and hematite mineralization occurring in outcrop

over an area of 650 metres by 400 metres. Geochemical analysis coupled with petrographic examinations

revealed that host rock for the chalcopyrite and hematite was an albite-rich syenite (also referred to as albite

granite in this report). They determined the syenite consisted of 65% albite, 15% orthoclase, and 15% quartz,

with minor amounts of chlorite, apatite, pyrite and chalcopyrite. Kennco conducted geophysical surveys over

the exposed mineralized zones, which included ground EM (induced electromagnetic chargeability),

resistivity, and IP (induced polarization). Their geophysical survey delineated a horseshoe-shaped anomaly,

which was coincident with the surface mineralization. Further work carried out by Kennco included

geochemical assays for copper, geological mapping on a grid cut over the property, and digging and blasting

of numerous trenches within mineralized zones. They culminated their exploration of the property with

2751.4 feet (838.6 meters) of diamond drilling in 18 drill holes (Figures 3, 4, 5 and 6). Significant results

from the diamond drilling are listed in Table 3.

10

Year of Work Name of Company Work Carried Out

Pre 1960

Unknown, no records were

found of the companies who

previously worked the area.

Early prospecting led to the

drifting of an historic adit.

Diamond drilling was reported

to have occurred one in the

1950’s., although no records

have been recovered.

1964 to 1965

Geological Survey of Canada;

Ontario Geological Survey

Regional reconnaissance and

mapping.

1965 - 1966

Kennco Explorations (Canada)

Ltd.

Prospecting, Geological

mapping, Geophysics,

Geological sampling and

Geochemical assaying,

Diamond Drilling

(18 diamond drill holes; 2700

feet {822.96 m})

1970

H. Nystedt

Prospecting and Diamond

Drilling

(2 diamond drill holes; 503

feet {153.31 m})

970 - 1971

Copperville Mining Corp.

Diamond Drilling

(10 diamond drill holes;

3,558.6 feet {1084.66 m})

981 – 1982

Highland-Crow Resources

Ltd.

Geological mapping,

Geochemical sampling, line

cutting,

2000 – 2001

Falconbridge Limited

Geophysical airborne survey,

I.P. survey (Fraser Filtered

Chargeability), and Residual

Gravity survey, Geological

mapping, Geochemical

sampling, line cutting

Table 2. Summary of historical work carried out on the Island Copper property and area.

11

Table 3. Kennco Exploration and Copperville Mining Corporation significant assay results returned from diamond drill intersections.

Company

Name Diamond Drill Hole

From: metres

To: metres

Intersection: metres

Cu (%) Au (g/tonne)

Kennco

Exploration

KO-65-01

2.135

13.25

11.59

3.4

0.9

KO-65-02

1.52

6.40

4.88

0.85

trace

KO-65-04

2.44

15.86

13.42

0.48

H. Nystedt 2 diamond

drill holes N/A Total

153.31 N/A N/A N/A

Copperville

Mining Corporation

Cpp-70-01

14.00

18.30

4.30

3.01

No Au assays were

recorded

Cpp-70-03

42.70

46.79

4.09

1.14

Cpp-70-04

19.83

21.35

1.53

0.63

36.60 42.70 6.10 1.70

Cpp-70-05

22.72

24.16

1.43

0.88

Cpp-70-06

6.10

6.86

0.76

1.14

15.25 31.23 15.98 0.83

35.84 36.60 0.76 0.75

86.93 88.02 1.10 0.75

96.69 102.79 6.10 1.04

Cpp-71-09

38.13

42.70

4.58

1.08

54.29 54.90 0.61 1.71

Cpp-71-10

44.23

48.80

4.58

0.70

57.95 61.00 3.05 0.95

12

Figure 3: Historical drill hole location map. Map orientation is north-south/east-west.

13

Figure 4: Historical drill hole location map.

14

Figure 5: Historical drill hole location map.

15

Figure 6: Historical drill hole location map.

16

No further interest in the property occurred until 1970, when prospector H. Nystedt drilled two holes

totaling 503 feet (153.3 meters) southwest of the hilltop showings. This sparked some interest by

Copperville Mining Corp. who optioned the property in 1970 and 1971. They carried out a ten-hole drilling

program in 1971 totaling 3,558.6 feet (1084.7 metres). Their drill program tested the property to greater

depths than Kennco, with the deepest hole extending to 167 metres in length and ending in brecciated granite

and chloritized mafic rock. The significant results of the diamond drilling are listed in Table 3.

Highland-Crow Resources conducting a regional reconnaissance program during the 1980 to 1981

field seasons, and concluded that the area warranted further investigation. They optioned the property from

the YMCA of Sault Ste Marie and Mr. Nystedt in 1981. Their first phase of exploration included field

mapping over the property to establish geological limits to the alteration, mineralization and extents of

brecciation. Their results determined that the target area lay entirely within the YMCA and Nystedt

optioned-property and a detailed program of geological mapping and geochemical sampling was undertaken.

A proposal for their 1983 exploration program of the property included at least three diamond drill holes,

trenching and further geochemical sampling (Highland-Crow, 1983). However, no further information was

found in the assessment files and it is doubtful as to whether this work was completed.

As part of a regional prospecting project, prospector F. Racicot collected four grab samples from the

main mineralized zone of the property. His samples averaged greater than 1% Cu and contained between 24

and 373 ppb Au. Other companies that have worked in the region include Tri-Bridge (663.7 meters of

drilling on or near the property), Delta Minerals, and Colleen Copper. At least 39 holes have been drilled to

date on or adjacent to the property, for an approximate total of 2740.3 meters (Figures 3, 4, 5 and 6).

The most recent work on the property has been carried out by Falconbridge Limited (Timmins,

Ontario regional exploration office). During a regional exploration program undertaken by Falconbridge the

property was visited with the Ontario Geological Survey regional field geologist from Sault Ste. Marie. They

determined the area required investigation and optioned the property from the YMCA in February of 2000.

Falconbridge staked additional ground around the patent claims, and conducted a detailed airborne Heli-mag

17

survey in early 2000. A grid line was cut over the property in the spring of 2000, followed by geological

mapping (Figure 7) and rock geochemical sampling during the 2000 summer field season. Falconbridge then

optioned the Nystedt surface and mining leasehold patents in August of 2000 from the Nystedt family of

Sault Ste Marie. A ground gravity survey was conducted over the properties in late fall of 2000 (Figure 8).

During the 2001 field season a grid line extension was cut over the Nystedt property followed by geological

mapping, rock sampling for geochemistry and assay, and a Fraser Filtered IP chargeability survey (Figure 9).

Falconbridge subsequently decided to joint venture the properties to any parties interested in advancing the

exploration.

In addition to work by private companies, regional aeromagnetic survey maps are available from the

Geological Survey of Canada (Figure 10) and the Ontario Geological Survey (Figure 11).

Geological Setting

The Island Copper property lies immediately northwest of the Archean-Proterozoic boundary, in moderately

to strongly foliated Archean granitoid gneisses of the Gros Cap Batholith (Figure 12). The Archean-

Proterozoic boundary is delineated by the Proterozoic Highway Fault Zone (Figure 7) that parallels Highway

556 and the ACR railway line. This boundary separates Proterozoic aged clastic rocks of the Aweres

18

Figure 7: Geology of the Island Copper Property.

19

Figure 8: Residual Gravity Map. Data from Falconbridge Limited.

20

Figure 9: Fraser Filtered Chargeability Map. Data from Falconbridge Limited.

21

Figure 10: Residual Total Field Regional Aeromagnetic Data. Geological Survey of Canada data.

22

Figure 11: Aeromagnetic Data and Mineral Occurrences. Ontario Department of Mines and the Ontario

Geological Survey data

23

Formation to the southeast from the Archean gneiss. To the north and northwest of the property,

Huronian sedimentary and volcanic rocks overlie the Archean.

The Gros Cap Batholith forms the majority of the outcrop exposures on the property. These

rocks are comprised of gneissic granite, granodiorite and amphibolite that have been strongly to

moderately foliated, and contain localized migmatitic units. The rocks are typically buff to white-

brown in colour on weathered surfaces with localized zones of white migmatite visible in outcrop along

cliff faces in the northern part of the property. On fresh surface, the gneiss is light gray to pink with

black blebs or occasional banding of mafic minerals. The gneiss is typically comprised of plagioclase,

potassium feldspar, quartz, and biotite ± hornblende. At several locations, the gneiss appears intensely

altered and contains units of east-west trending chloritized-amphibole schist. This schist may reflect

intense shear zones related to faulting within the gneiss.

The gneiss has been intruded by numerous gabbroic to fine-grained diabase dikes of at least

three different ages, all of which exhibit variably strong to weak magnetism. The larger dikes trend in

a west-northwest direction and exhibit gabbroic textures with moderate magnetism and are occasionally

weakly chloritized. The finer grained diabase dikes trend in a northwest direction and are generally

strongly magnetic. Several, strongly magnetic, southeast trending and north-south trending possible

biotite-lamprophyre dikes, comprised almost wholly of biotite and other mafic minerals were also

observed. They are the youngest mafic intrusive units identified.

The Gros Cap gneiss is locally brecciated in the eastern area of the property adjacent to the

north-northwest trending Island Lake fault, and extensively brecciated in the southeastern portion of the

property. The breccia is characterized by subangular to rounded, occasionally stretched fragments,

which exhibit trains of comminuted material. The fragments are set in a matrix of occasionally

silicified, chloritized-amphibole that contains small-comminuted fragments of gneiss. The fragments

are easily identified due

24

Figure 12: Regional Geology of the Sault Ste. Marie area. Map orientation is north-south/east-

west.

25

to preferential weathering of mafic minerals within the matrix, and occasionally by a mineral foliation.

Apparently, secondary tectonic overprinting of the original foliation did not occur. Quartz veins of

varying widths occasionally form anastomosing stockworks that crosscut and silicify the breccia. On

occasion, associated with the quartz veins are parallel trending veins (<1cm width) of specular hematite

that crosscut the quartz veins or occur as a selvage along fracture walls.

Within brecciated zones of Gros Cap gneiss, are localized albite-rich granite breccia bodies that

appear intrusive in nature and have sharp contacts. The pink coloured, albite-rich granite is comprised

of 80-85% albite crystals intermixed with potassium feldspar and quartz. This unit contains the bulk of

the Fe-oxide and copper mineralization. The unit displays a crackle or shatter brecciation with

disseminated and anastomosing veins and veinlets of specular hematite, chlorite, chalcopyrite and

pyrite forming the matrix. Several outcrops display a sharp visible irregular contact between the Gros

Cap breccia and the albite-rich granite breccias indicating they are separate distinct units (Figure 13).

Within the Island Copper property the Gros Cap Gneiss appears to form a cap-rock over the albite

granite, although the copper mineral veining within the albite granite was not observed to continue into

the Gros Cap breccia. Occasional veins and veinlets of specular hematite intrude into the Gros Cap

breccia, and are accompanied by quartz veining.

Although the Gros Cap Gneiss is Archean, the albite granite intrusions have not been

radiometrically dated. Some investigators believe that the albite granite (and mineralization) may be

Proterozoic (possibly Keewanawan), however, their age remains undetermined.

Structurally the area is quite complex with intense faulting. The Highway Fault Zone (southern

boundary of the property) has been interpreted to represent the Archean-Proterozoic boundary thrust

fault along the northern margin of the Lake Huron Graben

26

Figure 13: Photograph of the trench at the main copper showing.

27

Structure. The north-northwest trending Island Lake Fault crosscuts the gneiss on the

eastern side of the property and is visible in outcrop along Highway 552. The Island Lake

fault appears to be truncated and offset by the Highway Fault. A further series of faults

running sub-parallel to the Island Lake fault cut across the property northwest of the

Highway Fault. The brecciated gneiss and albite-granite breccia appear to be closely

associated with these faults, and display cataclastic brecciation in this zone of structural

weakness at the intersections of NE and NNW trending faults .

Geology and Mineralization of the Island Copper Property

Massive Gros Cap gneiss underlies the western portion of the property

(Figure 7). It consists of light gray to pink granite and granodiorite, comprised of

plagioclase, quartz, and biotite ± hornblende and displays a strong to moderate mineral

foliation. Localized zones of migmatite occur in the Gros Cap gneiss, which consists of

alternating wispy bands of mafic minerals set in quartz-feldspar matrix. In one location

northwest of the brecciated gneiss, the gneiss is distinctly albitized. The gneiss outcrops in

the western part of the grid in Falconbridge claims #1239733 and #1239734, and is the

predominant rock type in claim #1239731. The Gros Cap gneiss covers an extensive area

on both sides of Highway 552, and appears to be locally brecciated adjacent to the north-

northwest trending Island Lake fault. The breccia is characterized by subangular to

rounded and occasionally stretched fragments. They are associated with trains of

comminuted material in a matrix of chloritized-amphibole that is occasionally silicified and

contains small comminuted fragments of gneiss. The fragments appear to have undergone

some transport or movement as evidenced by the degree of mixing of the fragments and

faint imbrications or flow fabric within the matrix. Fragments are easily identified due to

preferential weathering of mafic minerals within the matrix, and occasionally by a

preserved mineral foliation. This is particularly evident for fragments in strongly

chloritized-amphibole schist that is often found in conjunction with the breccia.

Silicification is apparent and often overprints the matrix or forms anastomosing to

fragmental quartz veinlets within the matrix and between the fragments. The fragments are

28

occasionally hematized. Late fractures within the breccia exhibit weathering comprised of

limonite-goethite occasionally mixed with calcite and siderite.

The Gros Cap Gneiss is crosscut by numerous variably magnetic, mafic intrusions

that generally trend in a northwest direction. They consist of are comprised of narrow,

generally less than 5 metres wide, highly magnetic diabase dykes, and >40 meter wide

weakly magnetic, gabbroic-textured mafic dykes.

Outcrops on the eastern side of the property are comprised of brecciated Gros Cap

gneiss alternating with unbrecciated gneiss. The outcrops often contain numerous

crosscutting quartz veins from 1 to 15 centimeters wide, which occasionally contain

hematite and/or sulphide mineralization. Some of these outcrops have veins up to several

meters wide of siliceous mafic material, which appears to be silicified chlorite-amphibole.

These veins trend in a northeast direction parallel to the Highway Fault, and locally

brecciate the gneiss. This is best observed on fresh exposures within the gravel pit quarry

located south of L90+00N.

Brecciated gneiss fragments occur within intensely altered chlorite-amphibole

schist as rounded to angular clasts that occasionally exhibit rotational textures. Within the

schist, comminuted material is observable with the unaided eye. Hand lens examination

shows that clasts are intensely comminuted, fractured, altered and supported in the

chlorite-amphibole matrix. It is apparent that the schist is the result of intense brecciation

and alteration of the gneiss. Angular fragments of unaltered to partially altered gneiss also

occur within the schist, as observed in outcrop and on cliff faces. In several locations,

specular hematite veins cut into the brecciated gneiss along quartz-filled fractures.

However, no sulfide mineralization could be found within the brecciated Gros Cap gneiss.

29

Sediments of the Aweres Formation finger into and overlie the brecciated gneiss

along fault contacts in the southeast portion of the property, and are visible in outcrop

along the rail line. The sediments are comprised of arenite, siltstone, sandstone and

occasional conglomerate in a rusty brown fine- to medium-grained matrix.

The Island Lake Fault zone cuts the gneiss breccia at high angle dipping steeply to

the northeast, and is best observed in outcrop along both sides of Highway 552, between

L88+00N and L90+00N. These outcrops are predominantly comprised of chlorite-

amphibole schist containing numerous angular fragments of Gros Cap gneiss. The schist

contains a strong lineation that generally strikes northwest. However, slickensides have

been observed with variable orientations. The Island Lake Fault appears to have been

active over a long period of time, but is truncated by the Highway Fault Zone. Numerous

additional parallel to sub-parallel faults also strike NW from the Highway Fault Zone on

both sides of the Island Lake Fault.

Large quartz veins crosscut the gneiss, forming anastomosing veins and

stockworks. Some of these quartz veins are not continuous, but appear to have been

fractured and dislocated. Occasional specular hematite veins up to 2 centimeters in width

are often observed parallel to, invading, or occasionally cross-cut quartz veins. On the

eastern side of Highway 552, the quartz veins appear sub-parallel the Island Lake Fault and

trend in a north-northeast direction. These veins are larger than on the western side, and

carry specular hematite with occasional chalcopyrite mineralization.

Pink albite-rich granite intrudes the brecciated gneiss in several locations. In

surface hand-samples it is comprised of 80-85% pink to pinkish white albite crystals

intermixed with K-feldspar and minor quartz. The unit has undergone crackle or shatter

brecciation with specular hematite +/- sulfides forming the matrix. The contact between

the albite granite and brecciated gneiss is sharp with a narrow chill margin grading into the

albite granite (Figures 13 and 14).

30

Figure 14a and 14b: Photographs of the geological contact between the Gros Cap

gneiss breccia and mineralized albite granite breccia.

31

The albite granite comprises a large portion of the cliff face where an historical adit

is located, and contains very good exposures of chalcopyrite veining and malachite stains.

Above the adit, the brecciated gneiss appears to be draped over and down the flanks of the

cliff, limiting further exposures of albite granite to small windows at several locations.

Towards the top of the hill on L89+00N, several historical trenches expose mineralized

albite granite and its contact with the Gros Cap Gneiss. The main chalcopyrite showing is

located at the top of the hill on L89+00N at 100+00E (Figure 13).

The predominant mineralization observed on the property consists of hematite,

chalcopyrite and pyrite within the albite granite breccia between L88+00N and L91+00N

on L100+00E. However, another outcrop east of the highway along L92+00N was

trenched along a cliff face and exposes further chalcopyrite veining within the albite

granite. This exposure shows albite granite interfingered with brecciated gneiss and is the

only mineralized zone found on the eastern side of the property to date. This

mineralization may have been faulted and juxtaposed against un-brecciated gneiss.

Detailed petrographic analysis of three samples of the mineralized albite granite

breccia were carried out by Camier and Mumin (2000), and are included in Appendix 1,

along with photos and photomicrographs of the samples.

Deposit Types

The Island Copper mineralization occurs in an albite-rich granite breccia that

intrudes and is capped by the Gros Cap Gneiss. The mineralized intrusion is situated at the

intersection of major crustal faults, the Highway Fault Zone and the Island Lake Fault.

The mineralized intrusion is at the terrain boundary between Archean and Proterozoic

rocks, along the margins of a major paleo-rift setting. Copper and gold enrichments occur

in chalcopyrite and pyrite within a hydrothermal Fe-oxide (hematite) chlorite and

32

amphibole matrix that cements fragmented and altered granite breccia. The mineralized

breccias are regionally associated with barren to weakly mineralized quartz-vein

stockworks and chlorite-amphibole schists. These characteristics of the Island Copper

mineralization are presently thought to most closely resemble hydrothermal Fe-oxide

copper-gold deposits (IOCG). Consequently, this deposit type should be carefully

considered when exploring the Island Copper property.

The best current reference for hydrothermal Fe-oxide copper-gold deposits is the

Australian Minerals Foundation publication “Hydrothermal Iron Oxide Copper-Gold and

Related Deposits: A Global Perspective”, 2000, edited by T. M. Porter (ISBN 0-908039-

76-X). This volume contains 25 papers with numerous authors, covering all aspects of this

deposit type, including several overviews and numerous studies of specific deposits from

around the globe. We refer interested readers to this volume for detailed information on

this deposit type.

The location of the Island Copper property adjacent to the 1.1 Ga mid-continent

rift, which runs through Lake Superior and along the eastern shoreline of the lake, is a very

good setting for the exploration of IOCG deposits. The rift formed an extensional

environment that thinned the crust and allowed the generation and eruption of mafic

volcanic and intrusive rocks. Thinning of the crust also facilitated the generation of

intermediate to felsic melts derived from basement continental rocks. These potentially

volatile-rich melts could have ascended along deep structural fractures initiated by the

extensional tectonics. Emplacement at higher structural levels, and exsolution of volatiles

could have generated IOCG type deposits and the mineralization at Island Copper.

33

Mineralization

Near surface mineralization on the Island Copper property consists of Fe-oxide

(hematite ± magnetite), pyrite and chalcopyrite occurring between trace (≤0.1%) and 6 wt

% chalcopyrite, with surface weathering to malachite and azurite. The hematite and

sulphides occur as intergranular fillings, disseminations and anastomosing veins and

veinlets of chalcopyrite and pyrite along with hematite ± magnetite (Camier and Mumin,

2000; Appendix 1). The mineralization plus chlorite and amphibole form the matrix of a

crackle and/or shatter breccia in the albite-rich granite. Copper mineralization does not

extend into the overlying Gros Cap gneiss, except for the presence of occasional vein-type

specular hematite associated with crosscutting quartz veins in the brecciated zones.

Recently collected surface grab samples taken by Falconbridge for whole rock

geochemistry and metal assays indicate Cu at up to 0.5 wt%, with occasional gold values

up to a maximum of 2 g/tonne, and silver up to 4.2 g/tonne (Appendix 2, geochemistry

only). Falconbridge did not resample the known historical trenches from the main copper

showings. Historical grab samples collected by prospector F. Racicot from the main

mineralized zone of the property reportedly averaged greater than 1 wt% Cu, and contained

between 24 and 373 ppb Au. The report by W. H. Thompson for Kennco Explorations

(Canada) Limited, December 1966, indicates surface trench assays of up to 2.93 wt% Cu

over significant widths (widths not indicated in the material provided to the writers).

Assay results from historical drilling also indicate some good values, with copper grades of

up to 4.02 Wt% Cu over 9.45 meters reported for hole KO-65-01. Assaying for gold in the

historical drilling was apparently not carried out for most of the drill holes. Additional

significant assay results from the historical drilling are listed in Table 3. Historical surface

and drill hole assays have not been independently verfied (re-sampled) by the writers.

Other mineralization historically reported from the Island Copper property comes

from Highland-Crow. Their sampling indicated several quartz veins on the eastern side of

the property with elevated Zn and Pb values. Surface samples taken by Falconbridge were

34

not able to reproduce these results, however, it is unlikely that Falconbridge sampled the

same material. Several other copper showings have been reported in the vicinity of the

Island Copper, and one radioactive occurrence is reported about 1 km south of the property

(Figure 11).

Exploration of the Island Copper Property

Falconbridge Limited has been the latest company to work on the Island Copper

property. During a regional exploration program undertaken by Falconbridge in 1999, the

Island Copper property was visited with the regional field geologist from the Sault Ste.

Marie office of the Ministry of Northern Development and Mines, Ontario. Falconbridge

determined the area required further investigation and optioned the property from the

YMCA in February of 2000. Falconbridge then staked additional ground around the

patents. This work was followed by a detailed airborne Heli-mag survey, flown in the

spring of 2000. A 42 line-kilometer grid line was cut over the property in the late spring of

2000, followed by geological mapping and rock geochemical sampling during the 2000

summer field season. The grid lines were cut at a 100 meter spacing over the mineralized

showings in the central portion of the claims, and 200 or 400 meter spacing elsewhere.

Falconbridge then optioned the Nystedt surface and mining leasehold patents located south

of the YMCA patents in August of 2000 from the Nystedt family of Sault Ste Marie. A

ground gravity survey was conducted over the Falconbridge and YMCA properties in the

fall of 2000. During the 2001 field season a 3.8 line-kilometer grid extension was cut over

the Nystedt patents followed by geological mapping, rock sampling for geochemistry and

assays, a Fraser Filtered IP chargeability survey and a gravity survey. Falconbridge

subsequently decided to joint venture the properties to any parties interested in advancing

the exploration of the ground. At the time of writing, no further work had been carried out

on the property.

35

Geophysics

Regional aeromagnetic data are available from both the Geological Survey of

Canada (GSC) and the Ontario Geological Survey (OGS) (Figures 10 and 11,

respectively). The Island Copper Property occurs within the intersection of broad,

relatively low and poorly defined regional trends of magnetic highs. A NNW trend of

moderated magnetic highs stretches from Echo Bay, east of Sault Ste. Marie to west of

Mamainse Point on Lake Superior. A second broad ENE trend of moderate magnetic highs

intersects the NNW trend in the region of the Island Copper property (Figure 10). An

ovoid point-source magnetic anomaly of ~ 500 gammas is centered ~ 3 km NE of the

property (Figure 11). A minor ovoid 50 gamma anomaly is located in the SW portion of

the property.

Several geophysical surveys were carried out over the property on behalf of

Falconbridge, including detailed heli-mag, ground gravity and induced polarization. The

gravity and induced polarization surveys resulted in a significant coincident anomaly. A

linear gravity high anomaly of up to ~ 1 mGal extends east-west across the property and is

coincident with the mineralized showing on the east side of the property (Figure 8). The

induced polarization survey indicates a broad zone of high chargeability (up to ~ 10mV/V)

that is partly coincident with the gravity high (Figure 9).

These anomalies are coincident with a weak regional gravity high that occurs to the

WSW of the property and extends as far as Whitefish Bay, Lake Superior. This regional

gravity high also appears coincident with a weak aeromagnetic anomaly that also extends

WSW from the property.

The east-west gravity and chargeability highs within the Island Copper property

indicate the possibility buried mineralization along this trend.

36

Drilling on the Island Copper Property

The only diamond drilling information available for examination (drill logs only)

was conducted approximately 30 to 37 years ago. Falconbridge Limited reviewed the

historic assessment files and determined that at least 39 diamond drill holes have been

drilled on or adjacent to the property for an approximate total of 2,740.3.meters. A list of

known drill holes is given in Table 4. The diamond drill core is not available for viewing

because it was not stored satisfactorily. It can be found scattered under the leaf litter near

old drill sites. Other debris from diamond drilling activity is occasionally found, such as

old drill rods, rotted pieces of core boxes and rusted oil cans. A number of the old drill

hole collars are still visible at surface (e.g. Figure 13). Historical drill logs for 18 Kennco,

10 Copperville and 2 Nystedt holes were reviewed by the authors at the time of writing.

They are in acceptable condition with assay results reported for all but the two Nystedt

holes.

Kennco Explorations (Canada) Limited conducted the most aggressive drill

program on the property, drilling 18 diamond drill holes for a total of approximately 838.6

meters (Table 4). Their activity focused primarily around the showing, however, they did

not test the anomaly to any great depth. Copperville Mining Corporation conducted a 10-

hole diamond drill program for an approximate total of 1084.7 meters testing the ground to

a maximum vertical depth of ~137 meters in drill hole CPP-70-7. Tri-Bridge Mines Ltd.

drilled 9 diamond drill holes for an approximate total of 663.7 meters on and adjacent to

the property. Not listed in Table 4 is the historic drilling conducted prior to 1965, and the

2 diamond drill holes which H. Nystedt completed (~153.3 meters).

37

Table 4: Summary of Historical Drilling.

Hole No. Easting Northing Elevation (M) Date Azimith Dip Depth Drilled by KO-65-01 708494.5 5172445.68 121.0 05/12/1965 0 90 61.89 Kennco Explorations (Canada) Limited KO-65-02 708494.43 5172467.68 122.0 08/12/1965 37 45 93.6 Kennco Explorations (Canada) Limited KO-65-03 708515.11 5172517.28 120.0 10/12/1965 127 45 63.41 Kennco Explorations (Canada) Limited KO-65-04 708475.11 5172463.06 122.0 13/12/1965 37 45 46.34 Kennco Explorations (Canada) Limited KO-65-05 708402.16 5172479.88 118.0 14/12/1965 92 45 55.79 Kennco Explorations (Canada) Limited KO-66-06A 708521.59 5172422.94 120.0 09/10/1966 0 90 23.57 Kennco Explorations (Canada) Limited KO-66-06B 708526.59 5172422.9 120.0 10/10/1966 0 90 23.17 Kennco Explorations (Canada) Limited KO-66-06C 708524.17 5172421.69 120.0 11/10/1966 0 90 44.82 Kennco Explorations (Canada) Limited KO-66-07 708582.61 5172529.61 113.0 13/10/1966 0 90 38.87 Kennco Explorations (Canada) Limited KO-66-08 708543.16 5172612.02 108.0 14/10/1966 0 90 45.73 Kennco Explorations (Canada) Limited KO-66-09 708509.84 5172709.76 103.0 16/10/1966 0 45 53.66 Kennco Explorations (Canada) Limited KO-66-10 708613.01 5172452.25 113.0 19/10/1966 0 90 50.3 Kennco Explorations (Canada) Limited KO-66-11 708722.8 5172446.15 96.0 22/10/1966 0 90 41.77 Kennco Explorations (Canada) Limited KO-66-12 708732.84 5172459.07 96.0 23/10/1966 228 45 69.39 Kennco Explorations (Canada) Limited KO-66-13 708674.51 5172722.69 96.0 25/10/1966 0 90 28.05 Kennco Explorations (Canada) Limited KO-66-14 708745.46 5172756.85 107.0 27/10/1966 75 45 18.29 Kennco Explorations (Canada) Limited KO-66-15 708691.92 5172754.88 98.0 75 45 22.26 Kennco Explorations (Canada) Limited KO-66-16 708660.28 5172737.77 94.0 70 45 62.5 Kennco Explorations (Canada) Limited CPP-70-1 708488.71 5172402 123.0 25/09/1970 0 45 76.22 Copperville Mining Corporation CPP-70-2 708487.4 5172399.96 123.0 03/10/1970 0 65 77.13 Copperville Mining Corporation CPP-70-3 708574.59 5172551.26 112.0 07/10/1970 280 45 121.95 Copperville Mining Corporation CPP-70-4 708573.7 5172437.65 118.0 14/10/1970 280 45 92.07 Copperville Mining Corporation CPP-70-5 708655.37 5172436.24 106.0 19/10/1970 260 45 91.46 Copperville Mining Corporation CPP-70-6 708775.98 5172473.68 96.0 02/11/1970 280 90 152.44 Copperville Mining Corporation CPP-70-7 708777.58 5172471.85 96.0 14/12/1970 280 55 167.26 Copperville Mining Corporation CPP-71-8 708774.82 5172472.08 96.0 06/01/1971 280 65 152.44 Copperville Mining Corporation CPP-71-9 708617.58 5172581.23 101.0 20/01/1971 255 45 92.99 Copperville Mining Corporation CPP-71-10 708633.64 5172526.59 104.0 28/01/1971 255 45 60.98 Copperville Mining Corporation TBG-71-1 707402.97 5171360.41 114.0 270 45 91.46 Tri-Bridge Mines Ltd. TBG-71-3 707658.04 5171277.3 103.0 270 45 69.21 Tri-Bridge Mines Ltd. TBG-71-4 707779.23 5171365.8 101.0 270 45 77.44 Tri-Bridge Mines Ltd. TBG-71-5 707708.82 5171919.7 106.0 270 0 60.98 Tri-Bridge Mines Ltd. TBG-71-5A 707753.53 5171917.79 106.0 270 45 90.85 Tri-Bridge Mines Ltd. TBG-71-6 707765.28 5171808.17 108.0 270 45 60.98 Tri-Bridge Mines Ltd. TBG-71-7 708046.24 5171606.84 114.0 270 45 91.46 Tri-Bridge Mines Ltd. TBG-71-8 707765.48 5171702.28 106.0 270 45 60.06 Tri-Bridge Mines Ltd. TBG-71-9 707880.09 5171450.15 104.0 270 45 61.28 Tri-Bridge Mines Ltd.

38

Sampling Method and Approach

Falconbridge Limited collected approximately 45 surface grab samples during

geological mapping of the property. Twenty-two samples were submitted for whole rock

analysis. The results of the whole-rock geochemistry are discussed in the chapter on

geology. All samples were acquired from outcrop so that only unweathered material was

collected.

Surface grab samples that were collected for metal assay were unweathered

material selected to represent a visually fair distribution of sulphides within the rock.

These samples were collected from surface exposures of the albite-rich granite at various

locations along the gridlines. The results are discussed in the section on mineralization.

Sample Preparation, Analyses and Security

To the knowledge of the writers, the whole rock geochemistry and assaying

conducted by Falconbridge was carried out according to normal industry standards and are

acceptable for the opinions presented in this report. The samples were analyzed at

Swastika Laboratory, Timmins, Ontario, under the directions set by Falconbridge Limited.

Data Verification

The assay results discussed in this report are based primarily on historical drilling

and assaying records. The quality of this work cannot be independently verified because

the drill core is not in useable condition, and exact locations of surface samples is not clear.

Only the drill logs and reports along with reported assays are available for inspection. J.

Camier (co-author), was contract geologist for Falconbridge Limited, and was an active

member of the team that collected and researched the historical data on the Island Copper

39

property. Mr. Camier was also the senior field geologist in charge of mapping and

sampling the Island Copper property for Falconbridge in both the 2000 and 2001 field

seasons. He was co-author of two reports for Falconbridge, which are used in the present

report. Mr. Camier verifies that he collected, packed and shipped the recent surface

samples collected for Falconbridge, to Falconbridge, and that Falconbridge subsequently

forwarded them to Swastika Laboratories for analysis.

Mineral Resource and Reserve Estimates

It is not possible to carry out a verifiable resource estimate using the historical data.

Additional and verifiable diamond drilling and surface trench assaying is required before

any reliable estimates can be calculated.

Other Relevant Data

No other relevant data was available to the authors at the time of writing. However,

supplementary information is believed to be available from Falconbridge, the historical

records and academic literature.

Interpretation and Conclusions

It is apparent from the historical and current work that a significant amount of

felsic-intrusion-hosted Fe-oxide, copper +/- gold mineralization is present on the Island

Copper property. Most of the mineralization occurs in an albite-rich granite breccia that

intrudes the Gros Cap Gneiss, as illustrated in the schematic model shown in Figure 15.

The mineralization is concentrated at and near the contact with the gneiss, in a region of

extensive faulting and brecciation. The copper mineralization does not appear to extend

into the gneiss.

40

It is the opinion of the authors that this mineralization is most similar to the class of

deposits referred to as Proterozoic Fe-oxide Copper-Gold deposits, for reasons already

discussed in the section Deposit Models. Consequently, this deposit type should be

carefully researched and considered in any further exploration of the property.

Exploration carried out to date has located pods and zones of copper mineralization

ranging from low to significant grades, however, this work has not conclusively

determined the mineral potential of the property. Diamond drilling is relatively shallow,

reaching a maximum vertical depth of about 137 meters, and is concentrated in the east-

central and south-east portions of the property. The coincident gravity and chargeability

anomalies that extend in an east-west direction across the property have not been tested

west of the main showing.

41

Figure 15: Schematic geological model for the Island Lake copper mineralization.

42

Recommendations

It is recommended that this property be further explored in the light of recent

advances in the understanding of Fe-oxide copper-gold type deposits. The historical

diamond drilling and surface data should be replotted and evaluated for: 1) any trends in

copper grades, 2) variations in intensity and type of alteration mineralogy, 3) variations in

the style and intensity of brecciation, and 4) the association of major and subordinate

structures with brecciation, hydrothermal alteration and mineralization. These evaluations

combined with a general and thorough overall property evaluation, including the current

geology and geophysics should be carried out prior to any decision regarding how much

and where further diamond drilling is conducted.

It is also recommended that the assay techniques be tested by several methods on

splits of the same sample, to determine if the historical information has accurately reported

the metals presence. This should include aqua regia digestion versus multi acid (near total

digestion), and the comparison of these results with neutron activation analysis. In some

Fe-rich deposits, it has been demonstrated that a significant portion of the gold may not be

reported due to analytical interference.

43

References

Camier, J. and Mclellan, D., 2000. Island Copper Project Report, Island Copper PN 297.

Technical report for Falconbridge Limited.

Camier, J. and Mumin, A.H., 2000. Petrographic Report of Selected Rock Samples from

Riley Township, Island Copper Property, and Copper Corp. Minesite. Petrographic

report for Falconbridge Limited.

Camier, J. and Oosterman, D., 2001. Island Copper Project – Nystedt Extension Report,

August, 2001, Addendum to Island Copper Project 2000 Report, Island Copper PN

297. Technical report for Falconbridge Limited.

Douglas, J.H., 1971. Colleen Option, Aweres Township, Sault Ste. Marie Mining

Division, District of Algoma. Supplementary report to the Directors, Copperville

Mining Corporation.

Geological Survey of Canada, Regional Aeromagnetic Data – Sault Ste. Marie Area,

Residual Total Field – Source: GSC Map NL-16-17-M.

Innes, D.G. and Associates Ltd., 1983. Island Lake Property Geological Report.

Technical report for Highland Crow Resources Ltd.

Ontario Department of Mines, Aeromagnetic Data, ODM Map 2200G.

Ontario Geological Survey, Occurrences, OGS Aweres GDIF 28.

Ontario Geological Survey, Map 2419: Sault Ste. Marie- Elliot Lake, Ontario.

McDonald, D.A., 1970. Report on Colleen Copper Property, Township of Aweres, Sault

Ste. Marie Mining Division, District of Algoma.

44

Porter, T.M., 2000, (editor). Hydrothermal Iron Oxide Copper-Gold and Related Deposits:

A Global Perspective. Australian Minerals Foundation, 349 p.

Sutcliffe, R.H., 1991. Proterozoic geology of the Lake Superior area. In Geology of

Ontario, Ontario Geological Survey, Special Volume 4, Part 1, pp.627-658.

Thompson, Jas. E., 1954. Geology of the Mamainse Point Copper Area. 62 Annual

Report, Ontario Department of Mines, Vol. LXII, Part 4.

Thompson, W.H., 1966. Report on Diamond Drilling, Nystedt Property. Technical report

for Kennco Explorations (Canada) Limited.

45

46

47

APPENDIX 1

Petrographic Report for Selected Samples from the Island Copper Property

48

Petrographic Report of selected samples from the Island Copper property.

The following petrographic report describes hand samples IC-1, IC-2, and IC-3. The

samples were collected by Mike Collison during the 1999 summer field season from the

Island Copper property, owned by the Young Men's Christian Association of Sault Saint

Marie, and optioned to Falconbridge Exploration, Timmins. The Island Copper property is

located in Aweres Township, Sault Saint Marie Mining District. Polished thin sections

were made from the hand samples and examined using a Nikon Labphot-2, in both

transmitted and reflected light. Detailed petrographic reports are included in the attached

appendix.

The hand samples consist of pale orangey-pink, hematite-stained, fractured and

brecciated quartz-feldspar porphyry. Breccia matrix consists of medium gray, non-

magnetic specular hematite in IC-2 and IC-3, and chalcopyrite ± hematite in IC-1. The

specular hematite and chalcopyrite form intergrowths of anastomosing veins that infill

fractures in the porphyry (Photo-plates 1, 2, and 3). Chalcopyrite forms anhedral grains

and aggregates within the hematite of IC-2 and IC-3, and often rims breccia fragments.

Chalcopyrite also occurs as abundant anastomosing veins and veinlets within the

porphyry independent of hematite (IC-1). Epidote alteration in the porphyry is evident as

pale-pistachio green colouration interstitial to the groundmass. Minor secondary

weathering occurs as an earthy-red colouration on old and fresh fracture surfaces, and as

anhedral tan coloured minerals adjacent to fracture walls within the porphyry.

Microscopic examination of the polished thin sections revealed the host rock to be quartz-

feldspar porphyry in various stages of cataclastic brecciation and alteration. The dominant

matrix mineral is specular hematite, formed in part from the alteration of magnetite, which

occurs as irregular shaped inclusions within hematite blades (IC-2 and IC-3). Chalcopyrite

also occurs in the matrix forming anhedral to irregular shaped grains interstitial to the

gangue minerals and the Fe-oxides, and is the dominant matrix mineral in IC-1. Goethite-

limonite alteration rims some hematite and chalcopyrite, and is interstitial to the gangue

minerals. It is occasionally observed crosscutting chalcopyrite and forms anastomosing

veins. There are minor inclusions of anhedral hematite in some chalcopyrite grains. No

secondary Cu-alteration minerals where observed in any of the sections. A brief summary

of each polished thin section follows.

49

Examination of IC-1 revealed inequigranular, corroded, cataclastic textured, anhedral to

subhedral, sericite-altered plagioclase exhibiting strong albite twins. The plagioclase is

intermixed with anhedral sericitized K-feldspar, quartz, apatite, and minor sericite,

goethite, and epidote. Quartz forms anhedral, inequigranular, interstitial grains and

intergranular aggregates between the feldspars. Apatite is unusually abundant and

occurs as subhedral to euhedral prismatic or columnar grains that are predominantly

inclusions associated with quartz. Goethite-limonite occurs along fractures from late

secondary weathering, and rims chalcopyrite and Fe-oxides. Epidote alteration occurs as

interstitial alteration of the gangue minerals. Chalcopyrite is the dominant matrix material

within this section and forms anhedral irregular shaped anastomosing veins and fracture

fillings. There are numerous inclusions of unknown microcrystalline minerals (probably

sericite), with one and two phase fluid inclusions were observed in both feldspars and

quartz.

Examination of IC-2 reveals anastomosing veins of specular hematite and minor

chalcopyrite infilling fractures of a brecciated feldspar porphyry. The porphyry consists of

plagioclase, K-spar, quartz, apatite, and secondary alteration minerals and goethite-

limonite, sericite and chlorite. The porphyry is characterized by cataclastic textured,

embayed, corroded, fractured and sericitized plagioclase and K-spar. These are set in an

interstitial, granular matrix of anhedral quartz and subhedral to euhedral apatite

(Photomicrograph 1), with very minor chlorite and late goethite-limonite alteration. An

anastomosing reddish-brown Fe-oxide alteration mineral forms veins and veinlets

interstitial to cataclastic textured minerals that are crosscut by late hematite. The hematite

is comprised of subhedral bladed laths, which exhibit occasional primary or stress induced

lamellae, and are intergrown with anhedral grains. Rutile forms interstitial granular

aggregates often rimming and intergrown with, and occasionally crosscutting the hematite

(Photomicrograph 2). Interstitial anhedral blebs of chalcopyrite occur throughout the

gangue, often rimmed with an overgrowth of goethite (Photomicrograph 3). An occasional

bright green vitreous mineral (malachite) is observed associated with the chalcopyrite.

Examination of IC-3 revealed a cataclastic-textured rock comprised of plagioclase, K-spar,

quartz, and apatite, with minor alteration minerals sericite and chlorite, which are set in a

matrix of hematite, goethite-limonite and trace chalcopyrite. The brecciated porphyry

consists of sericitized, anhedral, corroded, embayed and fractured, plagioclase and K-spar

grains, intermixed with anhedral quartz and interstitial subhedral to euhedral apatite, and

50

comminuted quartz and feldspar fragments. The cataclastic-textured fragments contain

interstitial and occasional internal chlorite-alteration, evident in severely sericitized

feldspars. The gangue has been crosscut by hematite, rutile, and Cpy veining, which has

undergone late-alteration to goethite-limonite, chlorite, and clays. Anhedral irregular

shaped magnetite inclusions (Photomicrograph 4) are visible as minute aggregates within

the cores of the hematite. Hematite is usually rimed by granular aggregates of subhedral

rutile. However, several rutile veins also crosscut the hematite (Photomicrograph 5 and

6). Hematite also contains numerous interstitial inclusions of silicate gangue minerals.

Cpy occurs as anhedral blebs within gangue minerals, and as large angular grains which

have been fractured and crosscut by goethite veins (Photomicrograph 7).

51

52

53

54

Sample # Island Copper sample IC-1 Microprobe: Location: Island Copper Property EMP Notes: Not requested. Rock Name: Equigranular Quartz-Feldspar Porphyry Photograph: Geochemistry: Not available Photo Notes: None, the polished thin section is too thick.

Hand Sample Description:

Pink coloured, brecciated, equigranular quartz-feldspar porphyry (QFP). The fragments appear suspended in anastomosing veins of chalcopyrite, and are variable in size and shape. In outcrop, the QFP is massive with chalcopyrite forming anastomosing veins and veinlets throughout the rock with only local brecciation of the QFP.

Microscopic Description

Examination reveals an inequigranular feldspar population of altered albitic plagioclase intermixed with sericitic K-feldspar (possibly orthoclase). Quartz forms anhedral, inequigranular, interstitial grains and intergranular aggregates between the feldspars. Apatite occurs as subhedral to euhedral grains predominantly as inclusions associated with quartz, along with subhedral to euhedral microcrystal inclusions of tourmaline. There are numerous inclusions of unknown microcrystalline mineral (probably sericite), with 1- and 2-phase fluid inclusions observed in both feldspars and quartz. Chalcopyrite forms veins of anhedral irregular shaped grains interstitial to the gangue minerals and along fractures. Goethite ( and limonite) occurring along fractures suggests secondary weathering. The thin section was thick, yielding anomalous higher order colouration in the feldspars and quartz.

Mineral Modal % Size-mm Texture Alteration To: Altered From: Intergrown With: Notes:

Cpy 10.00% irregular shaped, interstitial, fracture and vein filling, goethite/limonite rims, no inclusions observed

goethite / limonite

gangue Chalcopyrite occurs as anhedral irregular shaped blebs interstitial to gangue minerals and as vein and fracture fillings. No inclusions were noted within the Cpy. Grains display a very weak anisotropism. Goethite/limonite appears to rim occasional grains in fractures,

suggesting weathering, however, no alteration Cu-minerals were observed. rutile 1.00% ± 0.05 subhedral to euhedral granular

aggregates and individual grains, high internal brown to reddish-brown reflections

sphene goethite/limonite, chalcopyrite, gangue

Rutile forms granular aggregates of subhedral to euhedral crystals, and occasional euhedral individual grains, predominantly associated as rims about chalcopyrite, however some grains were observed interstitial to the gangue. High internal reflections give a yellow-brown to reddish-brown colouration with some grains exhibiting bright-white colouration, which occasionally show a relic sphene shape.

plagioclase 35.00% ± 4 subhedral to anhedral grains with albite twinning and occasional Carlsbad twins

sericite K-spar, quartz, sericite, Cpy

Plagioclase occurs as altered anhedral to subhedral grains exhibiting very strong albite twinning and occasional Carlsbad twins. Edges of the grains are often embayed and rimmed by quartz and granular quartz aggregates. Sericite alteration is apparent in the larger grains evidenced by dusty interiors. Smaller anhedral grains do not show sericite alteration, and exhibit strong twinning.

K-feldspar 30.00% ± 2 anhedral, cloudy and dusty grains with occasional inclusions of Cpy, some grains are rimmed with quartz and plag

sericite primary K-spar? plag, quartz, Cpy, sericite

K-spar forms altered anhedral grains intergrown with plag and quartz, twinning is not readily apparent, however several clear grains appear to have weak tartan twins. Grains are mostly cloudy with sericite alteration, with rims of quartz and plag. Occasional inclusions of Cpy were observed within the K-spar, occurring along fractures. There is no observable evidence to indicate if K-spar was primary.

quartz 15.00% ± 1 anhedral, dusty grains with numerous inclusions and observable fluid inclusions, commonly forms interstitial aggregates

plag, K-spar, Cpy, apatite, tourmaline

Quartz occurs as anhedral grains and granular aggregates interstitial to feldspars and as overgrowths around the feldspars. Numerous 1- and 2-phase fluid inclusions where observed within the quartz, along with numerous unknown microcrystalline minerals giving a cloudy or dusty appearance to some quartz grains. Inclusions of subhedral to euhedral apatite and tourmaline occur within the quartz.

sericite 6.00% <<0.1 microcrystalline aggregates on unknown minerals and clays, gives the fsp and occasional quartz grains cloudy-dusty interiors

feldspars tourmaline, apatite, microcrystalline

minerals

Sericite forms inclusions of fine-grained aggregates of microcrystalline minerals and clays, giving a cloudy or dusty appearance to the feldspars. The minerals are too fine-grained for positive identification and are intermixed with tourmaline and apatite microcrystals and fluid inclusions within the gangue minerals.

goethite 2.00% reddish-brown, earthy lustered to vitric, fractured concentric radial to colloform textured overgrowths about Cpy

clays and unknown minerals

Fe-rich minerals Cpy Goethite forms reddish-brown, earthy to vitric or glassy luster, fractures within the goethite form concentric radial to colloform textures and overgrowths around Cpy grains. Goethite also occurs within occasional crosscutting fractures that also contain Cpy.

epidote 0.50% <0.1 anhedral, radial, granular aggregates of acicular and prismatic crystals

sericite feldspars interstitial to gangue Epidote forms very fine-grained, anhedral, granular aggregates of acicular and prismatic green to yellowish-green vitreous crystals, that occur interstitial to occasional feldspar grains. There appears to be an association between epidote and goethite, as both are occasionally intergrown, or the goethite is altering from the epidote.

apatite 0.50% ± 0.1 anhedral to subhedral grains and occasional aggregates of columnar crystals

gangue Apatite forms clear glassy, anhedral to subhedral, prismatic or columnar grains either in granular aggregates or individual grains interstitial to quartz and feldspars. The grains are often observed with hexagonal cross-sections, are high relief, and exhibit first-order gray colours in crossed polars in areas were the thin section is close to 30 microns thick.

Tourmaline 0.1% <0.1 Subhedral to euhedral acicular crystals forming individually or in aggregates.

gangue Tourmaline forms acicular clear glassy, subhedral to euhedral microcrystals interstitial to the feldspars and quartz, as individual crystals or aggregates.

Total Modal % 100.00% Note: Due to the thickness of the thin section, identification of some of the minerals was difficult.

55

Sample # Island Copper sample IC-2 Microprobe: Location: Island Copper Property EMP Notes: Not requested. Rock Name: Equigranular Quartz-Feldspar Porphyry Photograph: XX Geochemistry: Not available Photo Notes: 1) Hem veins crosscutting cataclastic textured QFP

Hand Sample Description:

Pinkish-red, hematite-stained, matrix- to clast-supported, brecciated feldspar porphyry, set in a non-magnetic matrix of specular hematite. Chalcopyrite appears associated with the Fe-oxide matrix and forms irregular shaped blebs and minor veinlets. Epidote-alteration occurs within the porphyry and is crosscut by the Fe-oxides, suggesting epidote-alteration was early. Secondary weathering minerals are visible occurring as anhedral tan coloured minerals alongside fractures.

Microscopic Description

Examination reveals hydrothermal veins of specular hematite brecciating the feldspar porphyry. However, the porphyry appears to have been previously brecciated evidenced by ratty, embayed, fractured feldspars in an interstitial, granular matrix of anhedral quartz and subhedral to euhedral apatite, with very minor chlorite and late goethite-limonite alteration. There appears to be an anastomosing, reddish-brown alteration product forming veins and veinlets interstitial to all the minerals (probably Fe-oxides such as goethite). Hematite veins consist of anhedral grains interstitial to subhedral bladed laths, which exhibit occasional primary or stress induced lamellae, and form anastomosing veins that crosscut the gangue. Rutile is often intergrown with, and occasionally crosscuts the hematite. Interstitial anhedral, irregular shaped blebs of chalcopyrite occur throughout the gangue, often rimmed with an Fe-oxide or sphalerite (?).

Mineral Modal % Size-mm Texture Alteration To: Altered From: Intergrown With: Notes:

hematite 15.00% ± 0.5 anhedral interstitial blebs and unoriented subhedral blades vein material and individual blades,

exhibiting twins and stress lamellae

goethite / limonite

gangue Hematite forms massive, randomly oriented subhedral blades intergrown with interstitial anhedral blebs. which form veins that crosscut the rock. Occasional blades exhibit twinning and stress lamellae. Interstitial gangue material is often intergrown with the hematite. Rutile often rims blades and occurs as overgrowths on occasional blades. Alteration to goethite-limonite is visible along rims.

chalcopyrite 1.00% ± 0.02 irregular shaped grains intergrown with or included in Fe-oxide material

Fe-oxide mineral Chalcopyrite forms irregular shaped blebs either rimmed or included in Fe-oxide minerals scattered throughout the gangue. However, the material surrounding the cpy appears to be microcrystalline aggregates of goethite (or sphalerite?) with a reddish-brown colouration and occasional deep-red internal reflections. There does not appear to be a clear relationship with the hematite veining, however there are occasional Cpy grains that appear to be in the same fracture system as hematite.

rutile 2.00% << 0.01 subhedral granular aggregates of yellowish and reddish-brown grains interstitial to hem, numerous internal

reflections

ilmenite? hem Rutile occurs as interstitial granular aggregates with a strong association to hematite. The grains display massive internal reflections of yellow to reddish brown. There are occasional veins of rutile that crosscut the hematite, suggesting syn- and late-alteration formation of rutile. Occasional bright green vitreous minerals occur with the rutile and appears to be Malachite.

plagioclase 30.00% < 1.3 subhedral, irregular shaped, skeletal, embayed, cataclastic textured,

sericitized grains, albite twinning

sericite, clays k-spar, quartz apatite

Plagioclase exhibits skeletal, embayed, irregular shaped cataclastic textures, with rims of interstitial granular aggregates of feldspar and quartz. Occasional fractures within the phenocrysts show quartz replacement. Albite twinning is visible with variably thick lamellae. The majority of the phenocrysts display moderate to severe sericite alteration depending on fracturing within the crystals.

K-spar 25.00% < 1.0 subhedral, irregular shaped, skeletal, embayed, cataclastic textured, sericitized grains, perthitic to

occasional tartan twinning

sericite, clays plag, quartz, apatite

K-spar exhibits a subhedral, embayed, cataclastic texture, with interstitial granular aggregates of feldspar and quartz. Occasional fractures within the phenocrysts show quartz replacement. Perthitic and occasional tartan twinning is occasionally visible, however, the majority of crystals have no twinning. The majority of the phenocrysts display moderate to severe sericite alteration.

quartz 15.00% < 0.8 anhedral irregular shaped grains with numerous fluid inclusions and

microcrystal inclusions

k-spar, plag, apatite, unknown

crystals

Quartz exhibits anhedral, interstitial, irregular shaped grains, and intergrown granular aggregates that surround and occur along fractures within feldspars. The quartz displays undulose extinction and contains numerous 1-, 2- and occasional 3-phase fluid inclusions, and unknown microcrystals. There are rounded to subangular feldspar inclusions trapped within the qtz.

apatite 8.00% < 0.2 anhedral, subhedral and euhedral crystals at various orientations

occurring as aggregates interstitial to the gangue minerals

gangue Apatite forms anhedral, subhedral to occasional euhedral crystals, forming granular aggregates interstitial to the gangue minerals with an affinity to interstitial anhedral quartz. Occasional grains contain numerous 2-phase fluid inclusions. Occasional larger grains of apatite appear to have inclusions of smaller euhedral apatite crystals, suggesting several stages of growth.

goethite / limonite

2.00% < 0.1 anhedral, vitreous reddish-brown to yellow-brown interstitial material

clays feldspars, hematite

gangue and hematite veining

Goethite/iddingsite occurs as interstitial vitreous material displaying yellow-brown to reddish-brown colouration within the gangue minerals and the hematite veining. The interstitial material within the gangue helps to delineate crystal rims, and appears to form veins or veinlets with an observable association to chlorite alteration. Goethite also forms overgrowths around Cpy grains.

sericite 1.00% < 0.01 microcrystalline inclusions within the feldspar grains giving them a cloudy

or dusty appearance

clays feldspars Sericite forms microcrystalline inclusions to the feldspar grains giving them a dusty or cloudy appearance. The sericite alteration is variable within the feldspars, with occasional feldspars exhibiting very little to moderate alteration, and some feldspars are completely clouded over. There is an increase in chlorite alteration surrounding and intruding the severely sericitized feldspars.

chlorite 0.50% < 0.1 anhedral, feathery to radial masses interstitial to gangue and hematite

minerals

clays feldspars gangue and hematite veining

Chlorite appears interstitial to and occasionally intruding severely sericitized feldspar crystals, following fractures and veins. Chlorite is strongly associated with the goethite/iddingsite alteration veining and helps to delineate feldspar crystals within the gangue. Chlorite also occurs rimming and interstitial to the hematite veining intergrown with quartz.

Total Modal % 99.50%

56

Sample # Island Copper sample IC-3 Microprobe: Location: Island Copper Property EMP Notes: Not requested. Rock Name: Equigranular Quartz-Feldspar Porphyry Photograph: XX Geochemistry: Not available Photo Notes: 1) Photo of the rims of sph or goethite around Qtz. 2) Photo of magnetite inclusions in hematite 3) goethite veins in Qtz. 4) Rutile cross-

cutting hematite Hand Sample Description:

Pinkish-red, hematite-stained, brecciated feldspar porphyry in matrix- to clast-support, set in a non-magnetic specular hematite matrix. Chalcopyrite appears associated with the Fe-oxide matrix and forms irregular shaped blebs and minor veinlets. Greenish epidote-alteration occurs in porphyry minerals that are crosscut by Fe-oxide veins. Secondary weathering minerals are visible occurring as anhedral tan coloured minerals alongside fractures, and goethite-limonite.

Microscopic Description

Cataclastic textured rock comprised of anhedral, embayed and fractured feldspars intermixed with anhedral quartz grains, interstitial subhedral to euhedral apatite, granular quartz and feldspar fragments. The gangue has been crosscut by hematite, rutile and Cpy veining, which has undergone late-alteration to goethite, chlorite and clays. Cpy occurs as blebs in the gangue and as large grains fractured and crosscut by goethite veins. Twinned and stressed hematite blades contain occasional irregular shaped to rounded inclusions of magnetite. Hematite is usually rimed by rutile, however there are several rutile veins crosscutting the hematite.

Mineral Modal % Size-mm Texture Alteration To: Altered From: Intergrown With: Notes:

hematite 30.00% ± 0.6 anhedral interstitial blebs and unoriented subhedral blades vein material and individual blades,

exhibiting twins and stress lamellae

goethite, limonite, chlorite

magnetite gangue, magnetite, rutile

Hematite forms massive, randomly oriented subhedral blades intergrown with interstitial anhedral blebs, and contains anhedral inclusions of magnetite. Blades exhibit twinning and stress lamellae. Gangue material occurs interstitial and intergrown with the hematite. Rutile occurs rimming blades and occasionally crosscuts the hematite, alteration to goethite/limonite is visible along edges.

rutile 3.00% ± 0.05 subhedral granular aggregates of yellow to reddish-brown grains

interstitial to hem, numerous internal reflections

ilmenite? hem Rutile occurs as interstitial granular aggregates, as overgrowth rims and crosscutting veins in hematite, with individual crystals or clusters in the gangue. The grains display massive internal reflections of blue-white, yellow-white to reddish brown in the overgrowths and veins. Occasional small fractures within the gangue contain veins filled with rutile.

chalcopyrite 1.00% one grain at 5, the

rest < 0.1

rounded to irregular shaped anhedral grains occasionally rimmed by sphalerite or veined by goethite

goethite sphalerite, goethite

Chalcopyrite occurs as rounded to irregular shaped anhedral grains often rimmed by goethite. In large grains the goethite is present in crosscutting veins, and surround occasional inclusions of hematite. The goethite veins often extend out of the Cpy into the surrounding gangue.

magnetite 0.10% << 0.01 inclusions of anhedral, irregular shaped to rounded grains in occasional hematite blades

hematite Magnetite occurs as inclusions of anhedral, irregular shaped to rounded grains or clusters of inclusions in occasional hematite blades. Texture suggests the hematite formed at the expense of magnetite, which implies original Fe-rich fluids formed magnetite then oxidized to hematite.

sphalerite 0.01% < 0.02 anhedral, massive rims on Cpy blebs that exhibit reddish-brown to deep-

red internal reflections

Cpy Possible sphalerite may rim occasional Cpy grains found within the cataclastic textured gangue. Petrographically the mineral resembles sphalerite, especially the internal reflections occasionally observed on some overgrowths. However, the mineral also resembles goethite overgrowths, which is observed in large Cpy grains as crosscutting vein material and in smaller grains near hematite.

goethite / limonite

3.00% ± 0.01 anhedral radiating masses, overgrowths and crosscutting vein material, reddish-brown interstitial

vitreous material

clays Fe-oxides, feldspars

gangue, hematite Goethite/iddingsite occurs as interstitial vitreous material displaying yellow-brown to reddish-brown colouration within the gangue minerals and as rims surrounding hematite. It also forms crosscutting veins through some of the Cpy grains. It appears to be associated with chlorite within the cataclastic textured gangue minerals. However, the strongest associations are with hematite.

plagioclase 25.00% ± 1 subhedral, irregular shaped, skeletal, embayed, cataclastic textured,

sericitized grains, albite twinning

sericite, clays k-spar, quartz apatite

Plagioclase exhibits a skeletal, embayed, irregular shaped cataclastic texture, with rims of interstitial granular aggregates of feldspar and quartz. Occasional fractures within the phenocrysts show quartz replacement. Albite twinning is visible with variably thick lamellae. The majority of the phenocrysts display moderate to severe sericite alteration and appears to be dependant on fracturing within the crystals.

K-feldspar 15.00% ± 1 subhedral, irregular shaped, skeletal, embayed, cataclastic textured, sericitized grains, perthitic to

occasional tartan twinning

sericite, clays plag, quartz, apatite

K-spar exhibits a subhedral, embayed, cataclastic texture, with interstitial granular aggregates of feldspar and quartz. Occasional fractures within the phenocrysts show quartz replacement. Perthitic and occasional tartan twinning is occasionally visible, however, the majority of crystals have no twinning. The majority of the phenocrysts display moderate to severe sericite alteration.

quartz 15.00% ± 1 anhedral irregular shaped grains with numerous fluid inclusions and

microcrystal inclusions

k-spar, plag, apatite, unknown

crystals

Quartz exhibits anhedral, interstitial, irregular shaped grains, and intergrown granular aggregates that surround and occur along fractures within feldspars. The quartz displays undulose extinction, and contains numerous microcrystals, and 1-, 2- and occasional 3-phase fluid inclusions. There are rounded to subangular feldspar inclusions trapped within some qtz.

apatite 5.00% ± 0.07 anhedral, subhedral and euhedral crystals at various orientations

occurring as aggregates interstitial to the gangue minerals

gangue Apatite forms anhedral, subhedral and occasional euhedral crystals, forming granular aggregates interstitial to the gangue minerals with an affinity to interstitial anhedral quartz. Occasional grains contain numerous 2-phase fluid inclusions. Occasional larger grains of apatite appear to have inclusions of smaller euhedral apatite crystals, suggesting several stages of growth.

sericite 2.00% < 0.01 microcrystalline inclusions within the feldspar grains giving them a cloudy

or dusty appearance

clays feldspars Sericite forms microcrystalline inclusions in the feldspar grains giving them a dusty or cloudy appearance. The sericite alteration is variable within the feldspars, with occasional feldspars exhibiting very little to moderate alteration, and some feldspars are completely clouded over. There is an increase in chlorite alteration surrounding and intruding the severely sericitized feldspars.

chlorite

Total Modal %

0.50%

99.61%

< 0.02 anhedral, feathery to radial masses interstitial to gangue and hematite

minerals

clays feldspars gangue and hematite veining

Chlorite appears interstitial to and occasionally intruding severely sericitized feldspar crystals, following fractures and veins. Chlorite is strongly associated with the goethite/iddingsite alteration veining and helps to delineate feldspar crystals within the gangue. Chlorite also occurs rimming and interstitial to, the hematite veining and is often intergrown with quartz.

57

APPENDIX 2

Whole Rock Geochemistry of Selected Samples from the Island Copper Property

58

SAMPLE Grid_E Grid_N FIELD_ NAME

SIO2 AL2O3 CAO MGO NA2O K2O FE2O3 TIO2 P2O5

AT08775 100+98 88+20 9 70.38 14.82 0.19 1.71 7.17 0.28 3.78 0.28 0.08 AT08778 96+85 89+00 9 77.93 11.55 0.35 1.04 5.77 0.33 1.62 0.49 0.19 AT08779 100+00 90+85 9 71.52 13.67 0.37 1.82 5.55 1.09 3.61 0.46 0.15 AT08780 100+00 89+60 9 74.01 14.1 0.18 0.87 6.89 0.82 1.77 0.25 0.04 AT08784 100+98 88+00 9 78.35 10.54 0.12 0.51 5.72 0.09 3.59 0.1 0.04 AT08786 98+03 88+30 9 72.46 13.89 0.17 2.23 4.98 1.37 3.17 0.16 0.015 AT08787 100+65 89+00 9 70.43 9.61 0.12 0.47 4.79 0.34 9.42 0.26 0.15 AT08791 90+18 90+02 9 81.64 8.63 0.27 1.76 2.23 1.34 2.43 0.29 0.09 AU02162 101+15 89+00 9 69.32 15.05 0.07 0.3 8.64 0.21 5.21 0.26 0.07 AU02163 100+00 89+00 9 70.32 14.6 0.25 0.35 8.56 0.1 4.1 0.74 0.25 AU08795 101+25 89+00 9 46.8 13.82 <0.01 0.24 7.79 0.1 30.64 0.14 0.1 AT08776 92+00 80+45 12 69.85 15.98 0.62 1.44 5.42 2.88 2.04 0.33 0.09 AT08781 89+95 90+00 12 76.11 12.64 0.38 0.44 3.77 3.09 1.96 0.2 0.015 AT08782 102+33 89+00 12,bx 67.86 12.85 0.14 4.3 4.48 0.19 7.01 0.19 0.06 AT08783 102+40 87+85 12,bx 65.91 12.27 0.23 6.25 3.35 0.09 7.65 0.27 0.13 AT08785 100+45 88+00 12,bx 61.38 18.69 0.32 3.58 8.48 0.16 4.73 0.31 0.15 AT08790 101+80 90+00 12,bx 73.14 13.95 0.16 1.5 5.53 1.48 2.38 0.23 0.05 AT08792 101+50 91+00 12,bx 62.98 14.61 0.73 4.14 3.65 1.64 7.38 0.78 0.54 AT08794 101+10 88+90 12,bx 61.8 15.03 0.005 6.09 4.47 0.24 8.79 0.37 0.04 AU02164 101+01 89+00 12,bx 66.74 15.54 0.27 2.86 6.84 0.42 4.64 0.47 0.13 AU02165 99+50 93+00 12,bx 66.25 18.47 0.28 0.2 10.89 0.11 3 0.51 0.16 AT08777 90+55 87+95 7,<mag> 52.38 14.49 6.78 3.81 3.81 0.96 12.77 2.18 0.65

59

MNO LOI _COL16 Y ZR BA SR CU ZN NI CR CHEM_ID ALUM

0.03 1.54 100.26 3 181 45 79 11 62 20 193 9jA 194 0.03 0.94 100.24 17 354 76 83 9 39 8 233 4,9jA 179 0.08 1.56 99.88 5 317 307 143 3 111 13 242 4,9jA 195 0.03 1.06 100.02 3 149 86 106 9 25 11 209 4,9jA 179 0.03 1.06 100.15 1 68 33 28 11 18 8 255 4,9jA 178 0.05 1.89 100.39 3 87 215 83 3 70 15 247 4,9jA 213 0.02 4.75 100.36 3 110 45 44 4168 41 47 294 4,9jA 183 0.01 1.54 100.23 4 182 98 70 5 9 6 326 4,9jA 225

0.005 0.91 100.05 2 141 17 37 765 21 9 179 4,9jA 169 0.005 0.73 100.01 2 91 30 50 5113 18 8 216 3,8j 164

0.01 0.58 100.23 1 5 9 9 580 43 3 88 4,9i 175 0.02 1.41 100.08 3 115 906 239 0.5 33 7 164 9jA 179 0.02 1.33 99.96 4 289 1974 152 5 18 6 279 4,9jA 175 0.03 2.63 99.74 1 82 28 47 8 30 22 198 4,9jA 267 0.07 3.6 99.82 3 132 18 48 6 121 45 217 4,9jA 334 0.03 2.54 100.37 5 482 50 119 3 62 24 71 4,9i 209 0.02 1.4 99.84 3 96 239 128 12 23 10 224 4,9jA 195 0.05 3.31 99.81 7 264 258 72 8 50 32 212 3,8jy 243 0.06 3.61 100.51 3 63 36 53 46 149 41 145 4,9jA 319 0.05 1.91 99.87 2 141 56 99 30 73 24 146 4,9jA 206 0.01 0.55 100.43 20 201 25 81 104 18 5 111 3,8i 164 0.16 1.85 99.84 31 290 449 496 38 154 26 113 2,7jyz 125

60

AG CO PB S V AS SN CD SB BI TA W MO

0.25 72 1 0.253 40 14 10 0.5 2.5 2.5 2.5 10 0.5 0.25 4 1 0.019 24 11 10 0.5 2.5 2.5 2.5 10 1 0.25 10 21 0.06 35 6 10 0.5 2.5 2.5 2.5 10 0.5 0.25 11 1 0.028 20 21 10 0.5 2.5 2.5 2.5 10 1 0.25 36 1 0.346 14 10 10 0.5 2.5 2.5 2.5 10 0.5 0.25 8 16 0.006 33 10 10 0.5 2.5 2.5 2.5 10 0.5

4.6 138 3 7.079 12 23 10 1 2.5 2.5 2.5 10 5 0.25 3 1 0.004 36 2.5 10 0.5 2.5 2.5 2.5 10 0.5 0.25 4 7 0.106 28 6 10 0.5 2.5 2.5 2.5 10 2 0.25 7 1 0.489 25 8 10 0.5 2.5 2.5 2.5 10 0.5 <0.2 3 6 300 88 <5 <20 <0.2 <5 <5 <10 <20 <1 0.25 5 3 0.009 27 12 10 0.5 2.5 2.5 2.5 10 0.5 0.25 2 1 0.045 12 31 10 0.5 2.5 2.5 2.5 10 0.5 0.25 17 3 0.04 44 9 10 1.5 2.5 2.5 2.5 10 1 0.25 17 6 0.004 88 10 10 0.5 2.5 2.5 2.5 10 0.5 0.25 9 1 0.006 42 15 10 0.5 2.5 2.5 2.5 10 0.5 0.25 6 1 0.014 39 8 10 0.5 2.5 2.5 2.5 10 0.5 0.25 16 9 0.011 74 13 10 0.5 2.5 2.5 2.5 10 0.5

0.1 16 52 0.02 53 2.5 10 0.3 2.5 2.5 5 10 0.5 0.25 21 1 0.06 53 5 10 0.5 2.5 2.5 2.5 10 0.5 0.25 0.5 1 0.017 30 2.5 10 0.5 2.5 2.5 2.5 10 0.5 0.25 30 1 0.194 213 14 10 0.5 2.5 2.5 2.5 10 0.5

61

LA LI MN GA SC NB MGO# CA_AL NI_MGO ISHIKW ZN_NA2O UTM_E UTM_N

5 10 232 5 2.5 2.5 0.52 0.01 12 21 9 708613 5172289 75 8 246 5 2.5 5 0.6 0.03 8 18 7 708197 5172333 12 9 657 5 2.5 2.5 0.55 0.03 7 33 20 708488 5172521 21 6 244 12 2.5 2.5 0.54 0.01 13 19 4 708494 5172397 2.5 5 272 5 2.5 2.5 0.25 0.01 16 9 3 708612 5172264 2.5 11 405 11 2.5 2.5 0.63 0.01 7 41 14 708333 5172253 26 5 126 5 2.5 2.5 0.11 0.01 100 14 9 708561 5172350 21 11 105 5 2.5 2.5 0.63 0.03 3 55 4 707532 5172354 12 4 61 10 2.5 2.5 0.12 0 30 6 2 708625 5172353

8 3 50 5 2.5 2.5 0.17 0.02 23 5 2 708496 5172347 8 2 106 4 <5 7 0.02 0 13 4 6 708631 5172350

17 10 165 17 2.5 2.5 0.63 0.04 5 42 6 707784 5171411 7 3 114 14 2.5 2.5 0.35 0.03 14 46 5 707500 5172354 5 16 214 5 2.5 2.5 0.59 0.01 5 49 7 708745 5172377

30 18 541 5 6 7 0.66 0.02 7 64 36 708724 5172305 79 14 275 5 2.5 2.5 0.64 0.02 7 30 7 708554 5172267 11 8 170 5 2.5 2.5 0.6 0.01 7 34 4 708678 5172472 87 23 417 5 6 8 0.57 0.05 8 57 14 708641 5172575 13 20 476 21 5 3 0.62 0 7 59 33 708610 5172341 39 12 400 5 6 2.5 0.6 0.02 8 32 11 708600 5172348 17 3 106 12 2.5 17 0.14 0.02 25 3 2 708426 5172738 30 14 1271 5 21 23 0.41 0.47 7 31 40 707598 5172204