42A01NE8222 63.1695 GRENFELL 010

REPORT ON THE RESULTS OF GEOPHYSICAL SURVEYS CONDUCTED ON THE PROPERTY OF MAGNI MINING CORPORATION LIMITED IN GRENFELL AND TECK TOWNSHIPS, LARDER

LAKE MINING DIVISION, ONTARIO

The Geophysical surveys referred to in this Report covered un

patented mining claims L-69383 to L-69391* inclusive, and patented mining

claims L-26358; L-27066; L-26303; L-26304; L-26305; L-25593 and L-26070.

PROPERTY. LOCATION A ACCESSIBILITY;

The group of claims over which geophysical surveys were conducted

consists of 16 contiguous mining claims, 7 of which are patented and the

remaining 9 unpatented. Two of the patented claims and 2 of the unpatented

claims are located in Tech Township and 5 of the patented claims and 7 of the

unpatented claims adjoining in Grenfell Township. The entire ground and water

area covered by these claims comprises approximately 650 acres, more or less.

The entire group subject to the survey is located in the Northwest quarter of

Teck Township and the Northeast quarter of Grenfell Township.

Access to the claims is by means of a township road running West

from the Macassa Mine, in Teck Township, to the Goldthorpe station on the

Ontario Northland Railway in Grenfell Township. Near the common boundary

between Teck and Grenfell Townships a wagon road has been cut out to the North

terminating at Armer Lake. From a point on this road, approximately l| miles

North of the Goldthorpe Road, a bush road has been bulldozed out to a little

lake in the center of Claim L-26305. This road is entirely suitable for

truck or four-wheel-drive vehicle transportation during most seasons but in

the Spring, due to low swampy areas along the road, the installation of a few

drainage conduits together with some minor grading, would probably make this

road accessible in all seasons by ordinary motor transport.

2.

Geophysical Surveys Report onCMagni Mining^Corporation

The key map contained within the general survey maps accompanying

this report shows that the property is quite accessible by either automobile

transport or the general Provincial Highway system or by rail transport.

There is no developed power in the immediate area, the nearest source

of electrical energy being the power line to the Northeast which services the

Town of Kirkland Lake, an air line distance of approximately 3 miles from the

property under reference. During preliminary mining operations it would

therefore, seem necessary to employ gasoline or diesel-driven mechanical

equipment. Plentiful supplies of wood for fuel are available from timber

stands on the property and trees suitable for diamond drilling tripods have

been noted by members of the geophysical survey crew. Water for diamond

drilling and other purposes is adequate, there being two small lakes on the

property as well as numerous small streams and low-lying swampy areas.

HISTORY;

According to records and correspondence placed at my disposal the

earliest reference to work on this property was in the years 1928-29 when a

mining company, Scott-Kirkland Mines held certain of the patented claims

referred to above and conducted exploration operations thereon. Early in the

Thirties a prospector by the name of Wicksted residing at Bourkes, Ontario,

acquired 9 claims of this group, conducted some exploratory work thereon and

subsequently sold them to a Mining Operator, Michael Abraham of Toronto.

In 1934 Abraham formed the James Kirkland Mines Limited which company

acquired the 9 claims, performing sufficient assessment work thereon during

the years 1934 and 1936 to bring the claims to patent. Abraham, in the

interval, had acquired 2 additional claims in Grenfell Township adjoining.

Geophysical Surveys Report on Ma^ni, Mining Corporation 3.

the original 9* and in 1938 a patent was granted on the entire H claims.

Subsequently James Kirkland Mines Limited permitted the mining rights on

four of the patented claims to revert to the Crown, although the patent on

surface rights of two of the claims situate in Teck Township were retained

and are still held. The four patented claims on which the mining rights

were permitted to lapse are L-25592; L-26071; L-27064 and L-27065. These

four claims were re-staked in February 1959 by George G. Elliott, Mining

Contractor of Toronto, under grubstake agreement with Hamilton Montgomery,

prospector of New Liskeard, Ontario. Respectively these claims now bear

the following numbers: L-69384; L-69383; L-69391 and L-6938?.

On March 17, I960, Elliott purchased the 7 patented claims referred

to in this report from James Kirkland Mines Limited and, together with the

9 unpatented mining claims herein referred to, conveyed them by agreement

dated July 31st, I960, to Magni Mining Corporation Ltd. a Mining Company

incorporated under the provisions of The Ontario Companies' Act, whose head

office is Toronto, Ontario, and who is now the owner of a 100# interest in the

7 patented claims and a 100^ interest in the 9 unpatented claims covered by

this report.

According to records placed at my disposal, Magni Mining Corp.

Limited conducted surface prospecting and investigations on these claims

during the months of October, November and December, I960. Coincidental with

the surface exploration conducted by Magni Mining Corporation, the company

retained the services of A. V. William Durnford, Geologist of 250 Taylor

Street, London, Ontario, who made a stereographic interpretation of aerial

photographs covering the immediate area.

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Durnford rendered to the company photo-interpretation reports

of his findings, under date of November 20th, I960 and based on the information

contained in (his) report, together with the recommendation contained in

the qualifying report submitted to the company by B. C. Lamble, P.Eng. of

Orillia, Ontario, who examined the property on July 8th, I960, a decisionf)

was taken (made) to conduct a magnetometer survey on the claims under

reference to ascertain in part the existence of anomalous areas within

the property group but more specifically to confirm geologist, Durnford 's

interpretation which indicated the existence of several East-West trending

faulted structures within the property boundaries in close proximity to

3 long gold-bearing veins previously discovered and explored on the property

by former operators. These veins are specifically described in Mr. Lamble's

report dated July 16th, I960, and the report of Mr. R. Storen, mining

engineer and Geologist, who supervised field operations conducted by James

Kirkland Mines Limited, and whose report thereon, dated August 30th, 1934,

is included in and forms part of the prospectus of Magni Mining Corporation

Limited, as filed.

Magni Mining Corporation Limited was also influenced in arriving

at a decision to conduct a geophysical operation on the property under

reference by information contained in Map 289-G furnished by the Department

of Mines and Technical Surveys, Geological Survey of Canada, which indicated

anomalous conditions in the vicinity of and South of Armer Lake, a small

body of water bisecting the surveyed line between Tech and Grenfell Townships

and located about 200 yards North of the property under reference.

Geophysical Surveys Report on Magni Mining Corporation 5*

GEOLOGY;

The geology of Maisonville, Grenfell, and Eby Townships is very

similar to that of the Kirkland Lake and Swastika areas, and has been described

in some detail in the marginal notes accompanying the geological map of these

townships (Map 23-B to accompany report of A. G. Burrows and P. E. Hopkins,

Part 2, Vol. 23 Bureau of Mines 1914). The geology of Teck Township is very

adequately described in the report by James E. Thompson (Ont. Dept. of Mines

Vol. 57, Part 5, 1948). The geological map of Teck Township, No. 1945-1,

accompanying this report, shows the geology and structure on patented claims

L-25593 and L-26070 of this group and former patented claims L-25592 and

L-26071 of this group, which were forfeited to the Crown and restaked as

claims L-69383 and L-69384.

INTRODUCTION;

The geophysical surveys on which this report is based were conducted

by the firm of Wagner-Mills of 62 Richmond Street West, Toronto, and all field

work, which was performed during the months of January and February 1961, was

under the direct supervision of John R. Needhara, practical geophysicist of

Toronto, who has had substantial experience in this type of geophysical

investigations for such companies as:

Geotechnical Development Company LimitedSulraac Explorations LimitedSogemines (Canada) LimitedJ. L. E. Berthiaume Explorations

This report is, therefore, based on his field records and preliminary report,

and on the following data:

Geophysical Surveys Report on Magni Mining Corporation 6.

(a) Qualifying Report of Magni Mining Corporation Limited, by B. C. Lamble, P. Eng. (Ont.), F.C.I.C. Consulting Mining Engineer and Metallurgist, Orillia, Ontario, dated July 16th, I960.

(b) Report of R. Storen, Mining Engineer and Geologist, of Kirkland Lake, Ontario, dated August 30th, 1934*

(c) Photo-interpretation Report and maps furnished to MagniMining Corporation Limited, by A. V. W. Durnford, Geologist, London, Ontario, under date of November 20th, I960.

(d) A study and perusal of a report of A. G. Burrows andP. E. Hopkins, Vol. 23, Part 2, Ontario Bureau of Mines 1914, and accompanying geological map No. 23B with marginal notes.

(e) A study of the report to the Ontario Department of Mines by James E. Thompson contained in Vol. 57, Part 5, 1948.

(f) A study of the report of E. W. Todd to the Ontario Department of Mines, contained in Vol. 37, Part 2, 1928:

(g) A study of Aero Magnetic Map 289-G, Sheet 42 A/1 Kirkland Lake, Timiskaming District by the Geological Survey of Canada.

(h) A study of correspondence from Mr. Edmund Scott, R.R. #1, Englehart, Ontario, containing information referring to the operations on part of the property group by Scott- Kirkland Mines Limited.

(i) A study of information obtained by John R. Needham from Lawrence Brennan, Prospector of Toronto, Ontario, who was the chief prospector in surface explorations conducted by Magni Mining Corporation Limited on the claims under reference in the autumn of I960.

The above sources will be quoted in the ensuing chapters without

referring to the source in all instances.

Geophysical Surveys Report on Magni Mining Corporation 7,

Through the unfortunate circumstances and what has been reported

to me as negligence on the part of the line cutting contractor, the initial

grid was established in an East-West direction nearly paralleling the

geological strike of formations throughout this area. On arrival of the

Wagnep-Mills survey group it became immediately apparent that a North-South

grid was prerequisite if anomalous structures were to be accurately estab

lished and delineated. When the circumstances became apparent to the

management of Magni Mining Corporation Limited, authority was immediately

given by the Managing Director to the firm of Wagner-Mills to cut out such

additional traverse lines as were required. This work was performed at

additional expense to the mining company. In the interim the magnetic and

electro-magnetic surveys were carried out on the already established East-West

picket lines. This work proved in itself inconclusive, but served the

purpose of substantiating and even enhancing the subsequent surveys performed

on a North-South grid pattern.

Extensive surface operations performed by previous owners of part

of the claims under reference, had already established the existence of

3 East-West trending veins with sulphide mineralization, at which at various

locations, according to reports submitted to the writer, gold had been panned

or had been found of sufficient stature to return gold assays of interest.

The 3 gold veins, which had been indicated for a combined length of approxi

mately 2,500 feet, had previously been mapped and set out in the report of

B. C. Lamble, P. Eng., referred to above. The photo-interpretation of

Geologist, A.V.W. Durnford, indicated the existence of East-West trending

fault structures in the vicinity of the above referred to veins.

Geophysical Surveys Report on Maeni Mining Corporation 8.

(A) MAGNETIC SURVEY;

A conventional "Schmit" type instrument was used known as "Sharpe

A-2" Magnetometer, measuring the vertical component of the anomalous field.

The sensitivity of the instrument is about 5 gamas. This figure expresses the

accuracy to which the individual recording can be reproduced, all other factors

being constant. The scale constant was 20 gamas per scale division.

The accuracy of the survey can be estimated about plus or minus 25

gamas, which includes all instrumental and human errors as well as the errors

caused by diurnal and temperature variations.

The group of East-West lines and baseline were selected for magnetic

survey as best defining structural features indicative to known mineral

occurrence.

(B) ELECTRO-MAGNETIC SURVEY;

A "Sheridan-Kelk Magniphase11 unit was used. The instrument operates

on the same principle as other conventional horizontal coil units (Ronka,

Boliden, etc.) except that it measures the phase and amplitude rather than the

'in* and 'out-of-phase* components of the anomalous field. However, these two

sets of measurements define an identical physical quantity and are convertible

one into the other by a simple trigometric formula and their interpretation is

basically the same.

(C) SELF-POTENTIAL SURVEY;

A "Sharpe Model VP-6 Ground Voltameter" was employed, measuring the

natural potential differences in the ground which may be indicative of Sulphide

Geophysical Surveys Report on Ma^ni Mining Corporation 9.

occurrences. The circuitory and the contact electrodes of the instrument

represent a marked improvement over the conventional self-potential unit

which manifests itself in greater sensitivity and in increased stability of

the readings especially in winter conditions. The station interval of this

survey was at 50 feet uniformly.

RESULTS;

1. The electro-magnetic survey results are inconclusive. The amplitude

readings which are usually influenced by operational errors (misalignment,

cable shortage) show some marked variations without the support of the phase

component however, which is relatively free of such errors and therefore more

reliable.

Since the presence of conductive and close-to-the-surface mineraliz

ation in the area has been already established by surface observations the

absence of electro-magnetic responses serve to characterize these mineral

occurrences as fragmental, disjointed or disseminated rather than tabular or

massive.

2. The self-potential survey, conducted over parts of this property,

established and outlined four previously known mineralized zones, these

designated on the accompanying maps as Zones l, 2, 4, and 5, and also indicated\

the presence of others. The magnitude of the anomalies vary between 200 and

300 milivolts in the accumulative sense, which is a typical response from

15^ sulphide or Z.% graphite content.

3* The magnitudes and characteristic disturbances of the magnetic

variations can be divided into the following categories:

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Anomalies above 7000 gamas are probably caused by iron formation localized along faults and contacti*

Area "A" occupied most likely by fractured and probably highly altered basic and intermediate intrusives or volcanics. Faulting with some displacement is evident in a North-South direction.

AREA B essentially the same as "A" only more massive.

AREA C volcanics, host-rocks of mineralized veins.

AREA D magnetically homogeneous, low susceptibility. Most likely occupied by acidic igneous rock types.

The border line of the above division is often well defined and may

be interpreted as contacts or faults, these in part coincide with a number of

indicated faulted structures as interpreted by A. V. W. Durnford, with

emphasis on the East-West trending linears in the vicinity of the above

referred to 3 mineralized veins. The division between areas "C" and "D" is

often vague because of the relatively small change in the magnetic character

istics between them.

The structures suggested by this survey are in general agreement

with the photo-interpretation. This agreement is closer for the North-South

striking features because of the choice of survey grid which is East-West.

The survey was particularly successful in recording the magnetic

expression of the mineralized zones. It is difficult to analyse these magnetic

indications to any extent, partly because of their small magnitude and partly

because of the technical difficulty presented by their strike with respect to

the picket lines, but they are sufficient to estimate the length of associated

mineralized zones as follows:

Zone No. 1 900 feet approx. 2 1500 tt tt 3 1300 w ti 5 900 " w

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Geophysical Surveys Report on MaEni Mining Corporation 11.

CONCLUSIONS;

The geological structures and type of mineralization observed in the

area present a difficult task for geophysical detections. It was the simul

taneous application of several geophysical methods which have produced some

valuable information and a definite encouragement for the extended development

of the area.

Some of the encouraging aspects of the surveys can be summarized as

follows:

1) Discontinuities in the rock types interpreted as faults have been

outlined by the magnetic survey striking East-West and correlating generally

with the photo-interpretation. The change of the average magnetic level across

these lines was in excess of 2000 gamas. It is quite possible that this type

of fracturing is more extensive, but only the highly magnetic East-West striking

features could be detected on the existing East-West grid. These structures

may be highly significant, according to the economic geology of this region,^ 7Zsfr~'omnsy'show a close similarity to the fracturing pattern of the Kirkland Lake

Mining area, three miles to the East.

2) Direct indications of conductive mineralization in your area have

been provided by the S. P. survey. The outlined four conductive Zones coincide

with the four veins and zones where significant gold and copper sulphide occur

rences have been reported at the earlier exploratory stages. It was possible

to relate these features, as well as Zone #3, to East-West trending magnetic

anomalies and trace them to considerable lengths.

I am of the opinion that a substantial degree of diamond drilling in

vestigation should be directed to this property, the nature of which should

certainly include fullest investigation of the known mineralized zones at

25 foot intervals.

Geophysical Surves Report on Mani Mining Corporation 12.

RECOMMENDATIONS;

1). All five Zones should be investigated by drilling. The target areas

for drilling are as follows:

Zones l at 4 plus 00 East 2 " 10 " 00 West4 " 2 " 00 East5 " 12 " 00 East

The drilling of Zone 3 should be guided by geological considerations alone.

2). The drilling program should be aided by a limited and very detailed

North-South magnetic traverses across the five Zones. This involves a small

expenditure fully justified by the information at hand.

3). The "C" type of formation should be fully covered with S. P. survey

on North-South traverses, as there is a strong possibility of so far undetected

mineralization in these areas, parallel to the existing East-West picket lines.

spectfully submitted,

E. P. Wagner, B.^.Sc., Mining Geophysicist

February 28th, 1961.

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