2012 SPIKE LAKE DIAMOND DRILL REPORT
SPIKE LAKE PROJECT
FOWLER AND JACQUES AREA
THUNDER BAY MINING DIVISION
NORTHWESTERN ONTARIO
2012
Magma Metals (Canada) Limited, P.O. Box 10628, Thunder Bay, Ontario P7B 6V1 1004 Alloy Dr, Thunder Bay, Ontario P7B 6A5
Matthew Deller, B.Sc.
Project Geologist
Ryan Weston, P.Geo. M.Sc. Senior Exploration Geologist
March 2012
Table of Contents
Summary ......................................................................................................................................... 1 Introduction ..................................................................................................................................... 2 Property, Location, and Access ...................................................................................................... 2 Exploration History ......................................................................................................................... 4 Regional Geology ........................................................................................................................... 5 Drilling Results ............................................................................................................................... 6 Summary of Rock Units.................................................................................................................. 7 Summary of Drill Holes .................................................................................................................. 8 Interpretation and Recommendations ............................................................................................. 8 References ..................................................................................................................................... 11 Certificate of Qualification: Ryan Weston ................................................................................... 12 Certificate of Qualification: Matthew Deller.................................................................................13
List of Tables
Table 1: Claims List.......................................................................................................................2 Table 2: Drill Hole Location, Orientation and Depth....................................................................7
List of Figures
Figure 1: Property Location Map..................................................................................................3 Figure 2: Claim Map.....................................................................................................................4 Figure 3: SP12-01 Location Map ..................................................................................................9 Figure 4: SP12-01 Cross Section...................................................................................................10 Appendix I Diamond Drill Log SP12-01 Appendix II Assay Certificate Appendix III Crone BHEM Survey Report
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Summary
The Spike Lake project is located 30km northwest of Thunder Bay, Ontario and is a target for Ni-Cu-PGE mineralization within mafic to ultramafic intrusives. In the winter of 2012 a diamond drill program took place between the dates of February 11th and February 20th. The program consisted of one diamond drill hole that targeted a magnetic anomaly identified in a 2009 airborne magnetic survey. The drill hole encountered thick overburden underlain by non-magnetic metasediments and granitic gneiss of the Quetico Subprovince. No mafic/ultramafic units were intersected. There were however, three magnetic gabbro boulders intersected at the base of the overburden which may explain the magnetic anomaly if enough similar boulders are situated within the thick overburden.
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Introduction The following report documents the results of a recently completed diamond drill program on the Spike lake property. The property was staked in the fall and winter of 2008 by Magma Metals (Canada) Ltd. as part of the company’s ongoing regional exploration program in the vicinity of its flagship Thunder Bay North PGE-Ni-Cu project. Some of the claims were allowed to lapse in 2010 and were re-staked at that time. The aim of the program was to investigate the possible bedrock source of a sinuous magnetic anomaly, within a regional topographic lineament, outlined in a 2009 airborne VTEM survey which could reflect buried Keweenawan mafic/ultramafic intrusives. Property, Location, and Access The Spike Lake property consists of two claim blocks, Spike Lake West and East, totaling 84 claim units, located roughly 32 km north of Thunder Bay Ontario. The Spike Lake West block contains six claims totalling 63 units while the East block contains two claims totalling 16 units. The property lies 16km west of the company’s flagship Thunder Bay North property. Table 1 lists the claims comprising the Spike Lake property. To access the drill site, travel west on highway 102 from Thunder Bay to highway 589 (Dog Lake Rd), then head north for approximately 30 km to Paul Lake Road (figure 1). Turn west on Paul Lake Road and travel 900m. Turn left at the access trail and follow to the drill site. Travel time to the property via road is approximately 45 minutes from Thunder Bay.
Table 1: Claims List
Claim Block Claim UnitsSpike Lake East 4242779 8Spike Lake East 4262952 8
Subtotal 2 claims 16 unitsSpike Lake West 4245226 8Spike Lake West 4245227 1Spike Lake West 4245228 16Spike Lake West 4245229 16Spike Lake West 4245230 8Spike Lake West 4262951 14
Subtotal 6 claims 63 unitsTotal 8 claims 79 units
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Figure 1: Property Location map
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Figure 2: Claim Map
Exploration History Magma Metals staked the Spike lake property in the fall and winter of 2008. Prior to this no previous work was recorded in the area. In the spring of 2009, Magma commissioned an airborne VTEM geophysical survey over the Spike lake property (Acorn et al., 2009). Results of this work show several magnetic anomalies of interest including: i) a 2.4km long x up to 500m wide magnetic anomaly beginning under Spike lake and continuing to the northeast, ii) a 900m long arcuate mag anomaly on the west end of the West block; iii) a 500m wide circular magnetic anomaly on the eastern end of the West block, iv) a 500m wide sub-circular magnetic anomaly near the centre of the East block and within a zone of apparent structural displacement, and v) three north-south trending magnetic linears on the West block and one north-south trending magnetic linear on the East block. These north-south trending magnetic linears are interpreted to be Paleo to Meso-Proterozoic diabase dykes, and appear to be dextrally offset by up to 400m along a west-southwest trending fault, likely a splay off the regional Quetico fault 5km to the north. Several small discrete early-time conductive anomalies detected in the survey were all interpreted to be cultural in nature. In the summer of 2010 Magma Metals conducted a mapping program to target and identify the
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magnetic anomalies that were observed in the previous VTEM survey. The targets were mainly left unexplained with a hypothesis that they could be the result of magnetic sands accumulated within the large regional valley that runs along trend of the anomaly. In the fall of 2010 four of the claims were allowed to lapse. The areas that lapsed were re-staked with the exception of an eight unit claim in the southern part of the west block claims. Regional Geology The Spike lake property is situated within the Quetico subprovince, a metasedimentary belt composed predominantly of metamorphosed turbiditic wacke deposited between 2.70-2.69Ga and intruded by numerous granitic and migmatitic bodies during peak metamorphism between 2.67-2.65Ga (Williams, 1991). The sedimentary source is interpreted to have been derived from the neighboring Wabigoon and Wawa greenstone belts to the north and south respectively. A strong east-west trending foliation is present in all metasedimentary rocks and orthogneisses of the Quetico subprovince in the area surrounding the property. The Quetico fault which occurs roughly 5km north of the property is a regional dextral shear and fault zone which transects the Wabigoon-Quetico subprovince boundary north of Kashabowie and continues east to Dorion with an estimated offset of 120km (Bau, 1979). The Quetico subprovince is characterized by a noticeable absence of volcanic rocks and as such much of the belt has been subject to only cursory mineral exploration and government mapping programs in the past. South of the Quetico subprovince, along the north shore of Lake Superior occurs the Southern Province composed of Paleo-Proterozoic sediments of the Animikie Group (1600-2200Ma), Meso-Proterozoic sediments of the Sibley Group (~1340Ma) and Meso-Proterozoic intrusive and volcanic rocks of the Mid-Continent Rift (MCR) (1099-1109Ma). Rocks of the MCR in this area are dominated by extensive shallow-level mafic sills of the Logan Igneous Suite (Smyk and Hollings, 2009), sub aerial mafic volcanic rocks of the Osler Group, and rare but economically important mafic to ultramafic to alkalic intrusive bodies including the Crystal Lake Gabbro, Coldwell complex, and the recently discovered Thunder Bay North (TBN) intrusive complex, a PGE-Ni-Cu rich ultramafic conduit system located 43km northeast of Thunder Bay and hosted within Quetico metasediments and granitoids. Until the recent discovery of TBN the exploration potential of the MCR was virtually unknown in this area of the Quetico subprovince, however since its discovery many exploration companies have become active in the area looking for further Ni-Cu-PGE mineralized intrusions of the MCR.
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2012 Drilling Results A single diamond drill hole (201m) was drilled from February 11th to 20th, 2012, and planned to test a magnetic anomaly within the Spike Lake property. The hole was drilled on claim #4245228, its location is listed in Table 3. Drilling was contracted to George Downing Estate Drilling of Grenville-Sur-la-Rouge, Quebec using a skid mounted gopher drill rig. Drilling was done using BQ-TK sized drill rods. The hole was spotted using a differential GPS capable of sub-metre accuracy. A down-hole orientation survey was done using a Ranger survey tool at selected depths. Appendix A shows the hole location and drill section. Core logging was done at Magma Metals’ warehouse located in Thunder Bay. Cutting and sampling was completed at Magma Metals’ Beaver Lake camp located north of Escape Lake. Selected intervals were sawn and half the material bagged for assay. All samples were taken to ALS Chemex prep-lab in Thunder Bay, Ontario where primary crushing and pulverizing took place, and then pulps were sent to ALS Chemex’s Vancouver, British Columbia laboratories where final analyses took place. Internal quality control consisted of insertion of certified reference material within the sample sequence. Geological logging was performed by Magma Metals’ geologist Matthew Deller. Cutting and sampling was performed by Magma Metals’ technician Andy Middaugh.
A bore hole pulse-EM survey was performed on the hole by Crone Geophysics between February 20-29th. Results of the survey showed no significant off-hole conductor. A separate
report detailing the results of this survey is appended.
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Table 2: Collar Location, Orientation, Depth
Drill Hole Start Date Completion Date
NAD83 Easting
NAD83 Northing
Azimuth Dip Depth (m)
SP12-01 11-Feb-12 20-Feb-12 324322 5397696 N/A -90 201 Summary of Rock Units The rock types encountered consisted of metasedimentary gneiss and felsic gneiss. The metasedimentary and granitoid rocks were locally blocky, splitting into short (<10 cm) lengths, but core recovery was generally very good. The metasediments are typically derived from muddy, silty or fine sandy precursor sediment, and generally had a schistose to gneissic texture. They were mainly grey in colour with white bands and patches of coarse grained granitic material throughout. Foliation orientations are typically sub-vertical relative to the surface. Rocks had local concentrations of mica, generally within the coarser granitic patches. Faulting occurs on a local scale which has caused zones of breccia. The felsic gneiss was similar to the metasediments but had undergone a higher degree of metamorphism. These rocks were medium to coarse grained, white and grey in colour and generally showed a moderately strong crystal alignment. Three small gabbro boulders were encountered just above the bedrock surface and were fine-grained, dark-grey and massive in texture with fine lath-shaped plagioclase crystals amid fine-grained interstitial pyroxenes. Fine accessory magnetite is present giving the boulders a weak to moderate magnetic susceptibility.
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Drill Hole Summary The complete drill log and assays are presented in the Appendices. Plan and section maps are presented in figures 3 and 4 respectively. SP12-01 intersected bedrock after passing through 45.3m of glacial overburden. Just above bedrock three small gabbro boulders ranging in size from 24cm to 31cm were encountered in the overburden. The boulders had a magnetic susceptibility of between 7.8 and 21.7. Assays of the boulders returned weakly anomalous background PGEs (26ppb), with no significant Cu (<220ppm) or Ni (<150ppm) values.
Bedrock consisted of fine grained metasedimentary rock, grey in colour with a gneissic texture. Small 2.0-35.0cm white migmatite bands were dispersed throughout. At approximately 121.5m the metasediments graded into a medium to coarse grained felsic gneiss with compositional banding into felsic and mafic phases. Some of the coarser areas show little to no crystal alignment. The rock graded back into the metasediments at approximately 162.0m. Between 187.45m and 198.2m there is a large fault breccia zone within the metasediments. There, the rock was broken into small rounded pieces and larger blocks, surrounded by a matrix of medium grey clay. From 193.55m to 195.9m there is a linear fault gouge running roughly parallel to the core axis (sub-vertical), approximately 1.0cm in width and filled with medium-grey clay. Below the fault breccia zones the hole enters fine grained, grey, weakly foliated metasediments that continue until the bottom of the hole at 201m. No bedrock samples were submitted for assay. Interpretation and Recommendations Bedrock encountered in SP12-01 did not explain the targeted magnetic anomaly. However, the hole showed that there is a significant amount of overburden within the valley basin (45m) which locally contains accumulations of magnetic gabbro boulders. It is feasible that if enough of these boulders were concentrated in the overburden, they may explain the magnetic anomaly. Alternatively, the drill hole may have narrowly missed a sub-cropping gabbro body at depth, manifest as the gabbro boulders, which could explain the anomaly. At any rate, further drilling within the anomaly is required to test both possibilities.
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Figure 3: SP12-01 location map
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Figure 4: SP12-01 cross-section
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References
Acorn, W., Legault, J., Kaminski, V., 2009, Report on a helicopter-borne versatile time- domain electromagnetic (VTEM) geophysical survey, Geotech Ltd. Assessment Report
Bau, A.F.S., 1979, History of regional deformation of Archean rocks in the Kashabowie- Lac des Milles Lacs area, northwest Ontario; unpublished PhD thesis, University of Toronto, 179p.
Smyk, M.C. and Hollings, P., 2009, Mesoproterozoic Midcontinent Rift-related mafic intrusions near Thunder Bay: Update. Project Unit 08-021 Summary of field work and other activities 2009. OGS OFR 6240, p.11.1 to 11.5.
Weston, R., 2010, Preliminary Mapping and Prospecting Report Spike Lake Project, Onion Lake Area, Thunder Bay Mining Division, Northwestern Ontario. Assessment Report
Williams, H.R., 1991, Quetico Subprovince, in Geology of Ontario, Ontario Geological Survey, Special Volume 4, Part 1, Chapter 10, p. 383-403.
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Certificate of Qualification
Ryan Weston, P.Geo. 206 Rockwood Ave. S
Thunder Bay ON CANADA P7B 4K4
I, Ryan Weston, do hereby certify that:
1. I am employed as Senior Exploration Geologist to Magma Metals (Canada) Ltd. 2. I have been granted the degrees of Master of Science in Geology from Laurentian
University in Sudbury Ontario (2002), and Honours Bachelor of Science in Geology from the University of Toronto (1999).
3. I am a Member in good standing of the Association of Professional Geoscientists of Ontario (APGO member # 1317).
4. I have worked as an exploration geologist in Canada and internationally (Australia, USA, Mexico, Peru) for over ten years.
5. I did personally supervise the diamond drill program on the Spike Lake property from February 11th to February 20th and co-authored the report titled “2012 Spike Lake Diamond Drill Report-Spike Lake Property” dated March 2012.
Dated this 31st day of March 2012 Ryan Weston, M.Sc., P.Geo. Senior Exploration Geologist Magma Metals (Canada) Limited
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Certificate of Qualification
Matthew Deller I, Matthew Deller of 231 Saxon Drive, Thunder Bay, Ontario certify that:
1. I graduated from Lakehead University, Thunder Bay, Ontario with a Bachelor of Science Degree in Geology (2011);
2. I have been employed as a geologist from 2010 to present by Magma Metals (Canada)
Limited
3. I am currently a project geologist for Magma Metals (Canada) Limited in Thunder Bay Ontario;
6. I did personally supervise the diamond drill program on the Spike Lake property from
February 11th to February 20th and co-authored the report titled “2012 Spike Lake Diamond Drill Report-Spike Lake Property” dated March 2012.
4. I do not believe that there is any misrepresentation in the information found within this report.
Dated this 31st day of March 2012 Matthew Deller, B.Sc. Project Geologist Magma Metals (Canada) Limited
Appendix I
SP12-01 Drill Log
Project: TBR Magma Metals (Canada) Limited Drill LogHole#: SP12-01 Length: 201m Depth Azi Dip TypeStart Date: 13-Feb-12 Azimuth: 0° 51.0 262.8 -89.9 RangerEnd Date: 20-Feb-12 Dip: -89.9° 99.0 18.9 -89.8 RangerEasting: 324322 Logged by: M.Deller 150.0 35.2 -89.4 RangerNorthing 5397696 Dates Logged: Feb 16, 20 and 21 201.0 97.5 -88.9 RangerClaim# 4245228 Drilling Co.: George Downing Estate DrillingCore Size: NQ-TK Comments:
Elevation 423mFrom To Rock Rock Description Sample From To Length S Au Pt Pd Cu Ni
m m Type Code m m m % ppb ppb ppb ppm ppmH069101 41.45 41.69 0.24
0.04 10 12.6 15 129 96
H069102 41.69 42.00 0.31 0.02 9 11.8 13 119 142H069103 42.00 42.28 0.28 0.02 10 4.5 22 218 107
45.30 121.40 Metasediments Sg Fine grained, grey, weakly foliated metasediments with granitic patches. ~65% metasediments and 35% granite gneiss. There is trace pyrite throughout occuring along foliation in the sedimentry gneiss and as disseminations and clusters within the granitic bands. From 54.0m to 54.05m there is a small breccia zone with a 5mm wide fault infilled with clay at the lower contact. The fault occurs 60 degrees to the core axis. At 55.5m there is a 7mm wide fault with clay infill occuring 75 degrees to the core axis.
121.40 162.00 Gneiss Fgn Medium to coarse grained felsic gneiss starting to separate into felsic and mafic phases. Some coarser areas show little to no crystal alignment. Trace pyrite throughout
162.00 187.45 Metasediments Sg Fine grained, grey, weakly foliated metasediments with granitic patches. ~60% metasediments and 40% granite gneiss. There is trace pyrite throughout occuring along foliation in the sedimentry gneiss and as disseminations and clusters within the granitic bands.
187.45 198.20 Metasediments Sg Fine grained, grey, weakly foliated metasediments with granitic patches. Large fault breccia zone over entire interval. Breccia zone is a mix of small rounded peices of wall rock and wall rock blocks surrounded by a matrix of medium grey clay. Fault runs along the axis of the core from 193.55m to 195.9m. It is roughly 1.2cm wide and infilled with medium grey clay.
198.20 201.00 Metasediments Spt Fine grained, grey, weakly foliated metasediments with trace fracture controlled pyrite throughout. EOH
Down-Hole Orientation Tests
Mainly a mix of sands and clays with small cobbles. Intersected three larger gabbro boulders near the base of the overburden from approxiamatly 41.45m to 42.28m. 1) S#H069101. 24cm, Mag. Sus. of 21.7. SG 2.981 Fg mafic gabbro with trace disseminated cpy and pyr 2) S#H069102. 30cm, Mag. Susc. 8.8 SG 3.100 Fg-Mg mafic gabbro 3) S#069103 27cm, Mag. Susc. 16.0 SG 3.078 Fg mafic gabbro
Overburden Ovg0.00 45.30
SP12-01 Drill Log
Appendix II
SP12-01 Assay Certificate
ALS CODE DESCRIPTION
WEI- 21 Received Sample Weight
SPL- 21 Split sample - riffle splitterPUL- 31 Pulverize split to 85% < 75 um
LOG- 23 Pulp Login - Rcvd with Barcode
LOG- 21d Sample logging - ClientBarCode Dup
CRU- QC Crushing QC TestPUL- QC Pulverizing QC Test
SPL- 21d Split sample - duplicate
PUL- 31d Pulverize Split - duplicate
SPL- 34 Pulp Splitting ChargeLOG- 22 Sample login - Rcd w/o BarCode
CRU- 31 Fine crushing - 70% < 2mm
ALS CODE DESCRIPTION INSTRUMENT
ME- ICP61 ICP- AES33 element four acid ICP- AESPGM- MS23 ICP- MSPt, Pd, Au 30g FA ICP- MS
This report is for 5 Drill Core samples submitted to our lab in Thunder Bay, ON, Canada on 1- MAR- 2012.
Project: SP12- 001
P.O. No.:
The following have access to data associated with this certificate:MGMAM - CONSULTANT WEBTRIEVE GEOFF HEGGIE JUSTIN JOHNSON
ALLAN MACTAVISH MGMAM DATA SUPPORT KEITH WATKINSRYAN WESTON
To:
To:ALS Canada Ltd.
2103 Dollarton HwyNorth Vancouver BC V7H 0A7 Phone: 604 984 0221 Fax: 604 984 0218 www.alsglobal.com
This is the Final Report and supersedes any preliminary report with this certificate number. Results apply to samples as submitted. All pages of this report have been checked and approved for release.
Colin Ramshaw, Vancouver Laboratory Manager
ALS Canada Ltd.
2103 Dollarton HwyNorth Vancouver BC V7H 0A7 Phone: 604 984 0221 Fax: 604 984 0218 www.alsglobal.com
To:
Project: SP12- 001
WEI- 21 ME- ICP61 ME- ICP61 ME- ICP61 ME- ICP61 ME- ICP61 ME- ICP61 ME- ICP61 ME- ICP61 ME- ICP61 ME- ICP61 ME- ICP61 ME- ICP61 ME- ICP61 ME- ICP61
Recvd Wt. Ag Al As Ba Be Bi Ca Cd Co Cr Cu Fe Ga K
kg ppm % ppm ppm ppm ppm % ppm ppm ppm ppm % ppm %
0.02 0.5 0.01 5 10 0.5 2 0.01 0.5 1 1 1 0.01 10 0.01
H069101 0.41 <0.5 8.13 <5 270 0.6 <2 6.10 <0.5 46 76 129 8.98 20 0.93H069102 0.60 <0.5 7.67 <5 90 <0.5 <2 7.77 <0.5 54 164 119 8.88 20 0.26H069103 0.53 <0.5 7.48 <5 140 <0.5 <2 6.81 <0.5 49 84 218 10.30 20 0.34H069103 CRD <0.02 <0.5 7.40 <5 130 0.5 <2 6.68 <0.5 49 78 195 10.20 20 0.32H069104 0.07 0.5 3.95 <5 40 <0.5 <2 8.23 <0.5 92 799 1380 6.88 10 0.12
ALS Canada Ltd.
2103 Dollarton HwyNorth Vancouver BC V7H 0A7 Phone: 604 984 0221 Fax: 604 984 0218 www.alsglobal.com
To:
Project: SP12- 001
ME- ICP61 ME- ICP61 ME- ICP61 ME- ICP61 ME- ICP61 ME- ICP61 ME- ICP61 ME- ICP61 ME- ICP61 ME- ICP61 ME- ICP61 ME- ICP61 ME- ICP61 ME- ICP61 ME- ICP61
La Mg Mn Mo Na Ni P Pb S Sb Sc Sr Th Ti Tl
ppm % ppm ppm % ppm ppm ppm % ppm ppm ppm ppm % ppm
10 0.01 5 1 0.01 1 10 2 0.01 5 1 1 20 0.01 10
H069101 10 3.45 1440 <1 2.26 96 700 8 0.04 <5 33 204 <20 0.72 <10H069102 <10 4.74 1490 <1 1.62 142 320 7 0.02 <5 29 167 <20 0.52 <10H069103 <10 3.73 1630 <1 1.91 107 680 10 0.02 <5 33 154 <20 0.84 <10H069103 CRD <10 3.68 1595 <1 1.92 106 680 7 0.01 <5 31 154 <20 0.84 <10H069104 10 11.05 1500 <1 0.47 1950 140 15 1.01 7 23 73 <20 0.16 <10
ALS Canada Ltd.
2103 Dollarton HwyNorth Vancouver BC V7H 0A7 Phone: 604 984 0221 Fax: 604 984 0218 www.alsglobal.com
To:
Project: SP12- 001
ME- ICP61 ME- ICP61 ME- ICP61 ME- ICP61 PGM- MS23 PGM- MS23 PGM- MS23
U V W Zn Au Pt Pd
ppm ppm ppm ppm ppm ppm ppm
10 1 10 2 0.001 0.0005 0.001
H069101 <10 274 <10 107 0.010 0.0126 0.015H069102 <10 288 <10 95 0.009 0.0118 0.013H069103 <10 349 <10 121 0.010 0.0045 0.022H069103 CRD <10 343 <10 118 0.006 0.0044 0.022H069104 <10 98 <10 71 0.173 0.870 0.926
