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Designation No.: OM85-1-C-36 63.4659 BATEMAN 010 A REPORT ON THE EVALUATION OF THE McFINLEY RED LAKE SHAFT AREA, BATEMAN TOWNSHIP, ONTARIO, DURING 1985-86. June 26, 1986 G.M. Hogg S Associates Ltd., 28 Thompson Avenue, Toronto, Ontario M8Z 3T3 Q M HOGG* ASSOCIATES LTD
Transcript
Page 1: Designation No.: OM85-1-C-36 63.4659 BATEMAN 010

Designation No.: OM85-1-C-36

63.4659 BATEMAN 010

A REPORT ON THE EVALUATION OF

THE McFINLEY RED LAKE SHAFT AREA,

BATEMAN TOWNSHIP, ONTARIO, DURING

1985-86.

June 26, 1986 G.M. Hogg S Associates Ltd., 28 Thompson Avenue, Toronto, Ontario M8Z 3T3

Q M HOGG* ASSOCIATES LTD

Page 2: Designation No.: OM85-1-C-36 63.4659 BATEMAN 010

63.4659 BATEMAN 010C

TABLE OF CONTENTS

Page No.

INTRODUCTION. . . . . .. . . . . . . . . . . . . . .. . . . .,. . . . . . . lPROPERTY DESCRIPTION, ACCESS.,...,.,......... lHISTORY OF PROJECT................,.......... 2GENERAL GEOLOGY.........,.............. . . . . . . 4EXPLORATION OPERATIONS................... .. . . 5GEOLOGICAL CHARACTER OF SHAFT AREA........... 6SAMPLING S ASSAYING............ , . . .. . . . . . . . . . 9POTENTIAL RESERVES........................... 10FUTURE EVALUATION REQUIREMENTS., . . , . . . . . . . . . . 11ESTIMATED COSTS.............................. 12CONCLUSIONS S RECOMMENDATIONS.........,...... 14CERIFICATE OF QUALIFICATION,...,.....,..,.... 15

FIGURES S PLANS

Following Page

Figure l - Location S General Geology Plan........... lFigure 2 - Property Location Plan,....... ... .. .. ..... 2Figure 3 - Projection of Workings, Shaft Area........ In PocketFigure 4 - Projection of Geology, Shaft Area......... In PocketFigure 5 - Projection of Ore Zones, Shaft Area....... In PocketFigure 6 - Proposed Drilling Area, Section 800S...... 12

Folder l - Assay Contour Plans, 20 Scale.Folder 2 - Assay Plans, 5 Scale.Folder 3 - Underground Diamond Drill Logs.

APPENDICES

Appendix l

Appendix II

Report on Preliminary Metallurgical Test Work

Petrographic Description of Ore and Rock Samples.

O M HOOO 6 ASSOCIATES LTD

Page 3: Designation No.: OM85-1-C-36 63.4659 BATEMAN 010

1.

INTRODUCTION

This report on the evaluation of the McFinley Red Lake Mines shaft area

during 1985 and early 1986 has been prepared by G.M. Hogg, P.Eng. , at the

request of the directors of the Company. It summarizes the operations and

results of the evaluation program carried out over the entire period, most

of which were financed and directed by McFinley Red Lake Mines Limited

(McFinley).

The program has consisted of underground drifting and crosscutting, under

ground drilling, samping and geological mapping. All work has been carried

out on the two available levels in the McFinley shaft area (ISO 1 and 400'

levels). The program has been supervised by Mr. J.F. Whitton, Project

Manager, with J.S. Redpath Ltd. acting as mining contractor, and N.

Morissette Diamond Drilling Limited as drilling contractor. Assaying has

been carried out by a number of independent laboratories, and Lakefield

Research has completed some preliminary metallurgical test work.

This program of evaluation was undertaken by McFinley subsequent to the

termination of the Phoenix Gold Mines exploratory program in early 1985.

Its objective was the opening and effective sampling of gold zones in

proximity to existing workings, essentially as proposed in our report of

April 2, 1985. At this time work completed has been substantially in

excess of the proposed program, and the assessment of the resulting data

is still in progress.

PROPERTY DESCRIPTION, ACCESS

The McFinley property consists of 30 patented and surveyed mining claims

lying in the southwestern part of.Bateman Township, Ontario (see Figure

1). It lies about 5 miles north of the Cochenour Willans (Wilanour) mine,

O.M HOGG6 ASSOCIATES UD.

Page 4: Designation No.: OM85-1-C-36 63.4659 BATEMAN 010

~3 Granite, Granodiorite

JL) Dominantly Metavolcanlcs

HD Dominantly Metasediments

PRODUCING S PAST-PRODUCING MINES

1- Howey (Teck)2- Hasago ( Lac)3- Red Lake Gold Shore4- Madsen5- Starrott Olsen6- McKenzie Red Lake (Lac)7- Cochenour Willans (Wilanour)8- Campbell Red Lake9- Dickenson

LOCATION a GENERAL GEOLOGY

OF THE McFINLEY PROPERTY

AND RED LAKE AREA

SCALE ' l Inch: 4miles

Figure

g X HOOOt AMOCIATIIUO.

Page 5: Designation No.: OM85-1-C-36 63.4659 BATEMAN 010

2.

and is accessible via gravel road from the town of Cochenour.

The property area is shown in Figure 2, and includes most of the McFinley

Peninsula as well as McFinley Island to the north. The Abino property of

Goldquest Exploration Inc. lies immediately to the south. The McFinley

shaft location is also shown on Figure 2 , and it is in this location that

underground exploration has been carried out over the past year.

Installed at the shaft site are a steel headframe, compressors, hoist

and generator, all owned by McFinley. Electric power for mining purposes

is presently supplied by diesel, but an electric power line does exist to

the Abino decline site to the south and could readily be extended to the

McFinley shaft site if necessary. Also installed close to the shaft are

two office trailers, and bunkhouse and cookery facilities sufficient for

approximately 30 men. These are maintained on a rental basis.

The vertical shaft, originally sunk by Little Long Lac interests during

the 1955-56 period, extends to a depth of 428 feet. Levels at depths of

150 and 400 feet were established at the time of sinking, and provide

current access. Track equipment, partially owned by McFinley, is used for

mining purposes. Loading pockets have not been installed so mine rock is

currently hoisted in cars.

HISTORY OF PROJECT

Early work in the McFinley Peninsula area located gold, silver and base

metal mineralization associated with cherty metasediments in what is now

the shaft location, and on McFinley Island to the north. Sporadic drilling

and trenching operations were carried on through the 1930's and 1940's,

but it was not until 1955 that underground exploration was undertaken.

At that time Little Long Lac interests opened the the McFinley shaft to

HOGG l ASSOCIATES LTD

Page 6: Designation No.: OM85-1-C-36 63.4659 BATEMAN 010

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Page 7: Designation No.: OM85-1-C-36 63.4659 BATEMAN 010

3.

a depth of 428 feet, and established levels at depths of 150 and 400 feet.

The extent of the Little Long Lac work is shown in Figure 3 (in pocket),

totalling 1,358 feet of advance on the two levels prior to closure in

1956.

McFinley interests proceeded with surface exploration in the late 1970's

and early 1980's, defining extensive linear distribution of substantial

gold values within the property area by surface drilling. In August, 1984,

under agreement with McFinley, Phoenix Gold Mines Ltd. proceeded with the

construction of an access road, surface drilling, and the re-opening of

the shaft. To the termination of the Phoenix program in April, 1985, an

additional 1,570 feet of underground drifting was completed on the 150'

and 400' levels (see Figure 3, in pocket), and approximately 6,000 feet

of diamond drilling done from these openings. Approximately 34,000 feet

of surface drilling were also completed on the property during the Phoenix

program.

With completion of this program Phoenix interests were deemed to have

earned a 50 percent interest in the McFinley property. Management of the

project then reverted to McFinley, and underground exploration was

recommenced by this company during. May, 1985.

The subsequent McFinley program, largely completed during 1985, involved

the opening of an additional 2,468 feet of drift and 1,259 feet of cross

cut on the 150" and 400' levels (see Figure 3, in pocket). In addition,

30 feet of raising and 23,300 feet of underground diamond drilling were

completed, and an extensive chip sampling program was carried out. Since

the end of February, 1986, geological mapping, additional sampling and

data assimilation have been carried on. Recently much of the available

assay and geological data have been computerized.

Q M MOOG S ASSOCIATES LTD

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4.

GENERAL GEOLOGY

As illustrated in Figure l, the McFinley property lies along a NNE-trending

belt of intermixed metasediments, basaltic volcanics and ultramafic units.

This belt is traceable in sinuous configuration through the Cochenour

Willans (Wilanour) deposit area to the south, and thence in an easterly

direction into the Campbell-Dickenson deposit areas. It thus forms a very

important depositional locus for gold mineralization in the northern Red

Lake area.

In the McFinley property area this gold-bearing heterogeneous belt is

composed mainly of interlayered cherty metasediments, mafic tuff and

basaltic flows, all underlain by ultramafic talc schist. These rocks dip

to the northwest at 55 0 -75 0 , and normally strike in a N 30 0 E direction.

As indicated in Figure 4 (in pocket), which shows the geology of the

McFinley shaft area, the contact between the metasediment/volcanic complex

and the underlying talc schist is highly irregular to the north of the

shaft. This major irregularity, which may be the result of folding, fault

ing or depositional conditions, extends to depth at a plunge of approxim

ately 60 0 to the southwest. In detail numerous local irregularities caused

by faulting and/or folding are also noted, these being most prominent in

proximity to the talc schist contact.

Gold occurrence in the McFinley shaft area is largely restricted to the

cherty metasediments, which as a rock type is commonly geochemically

anomalous in gold content. Therein rather coarse native gold may occur,

which is often concentrated in minor contact-associated veining. Gold

also occurs in sulphide-rich bands or veins closely associated with pyrite,

arsenopyrite, sphalerite, galena and silver. These will be described in

greater detail in subsequent sections of this report.

Q. M HOGG t USSOCIATES LTD

Page 9: Designation No.: OM85-1-C-36 63.4659 BATEMAN 010

5.

EXPLORATION OPERATIONS

With financing arrangements completed the McPinley evaluation program

commenced during May, 1985. As noted, the stated objectives of this program

were (1) to open known gold zones in proximity to existing workings on the

150' and 400' levels, and (2) to effectively sample these zones by chip

sampling and underground drilling. These obvious requirements could not

be met during the previous program because of financial and time restrict

ions.

During the McFinley program 3,775 feet of new underground workings were

opened on the 150' and 400' levels, and 145 drill holes were completed

totalling 23,333.1 feet. The extent and location of the new drifting and

crosscutting completed are shown in Figure 3 (in pocket), and may be tab

ulated as follows:

Level Location Drifting (ft.) Crosscutting (ft.) Raise (ft.)

150' 155 DR (S) 558 311156 DR (N) 451 50 15157 DR (S) 212 - 15158 DR (N) 236 293

400' 401 DR (S) 885 605403 DR (S) 126

Total Footage* 2,468 1,259 30

* Of this total 1,295 feet of drifting and crosscutting were completed by Dec. 31, 1985.

It will be noted that the 157 Drift and the 403 Drift in the above tabulat

ion are "slusher drifts", designed to test the feasibility of controlled

mining along narrow, well-mineralized zones. It appears that a minimum

mining width of 3.0 to 3.5 feet can be maintained using this method.

G. M HOGG i ASSOCIATES LTD

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6.

A chip sampling procedure for all mineralized zones encountered was

recommended by Mr. H.H. Bird, P.Eng., and utilized throughout most of the

program. This involved the sampling with air gun of each mineralized face

on horizontal lines at waist and chest levels, and back sampling at five

foot intervals across strike. Approximately 6,000 samples were taken on

this basis in the course of the program, and analyzed for gold content.

Preliminary metallurgical test work was carried out on some composite

samples taken from various locations (see Appendix I).

In addition to current geological mapping by staff, W.A. Barclay, Consult

ing Geologist, carried out a structural study of gold distribution in

various parts of the underground area. Particular attention was paid to

establishing zonal continuity between the 150' and 400" levels. A limited

petrographic study on rock and ore specimens was also completed (see

Appendix II).

Necessary improvements to the mine plant, power plant and access road were

also effected during the program period.

Due to the considerable pressure of routine data acquisition and daily

direction of the program, it was not possible to provide other than basic

plotting of information during the operating period. Computerization of

data has since been completed, and thorough study and interpretation of

the results of the program are now in progress.

GEOLOGICAL CHARACTER OF SHAFT AREA

In reference to Figure 4 (in pocket), geological knowledge of the deposit

area has been substantially expanded and refined. Additional workings have

been opened in an intensely brecciated and silicified area close to the

talc schist contact (158 DR), and along a relatively regular chert horizon

(156 DR) to the north of the shaft. To the south the 155 and 401 drifts

GM HOGG i ASSOCIATES LTD

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7.

have been extended along the sheared but comparatively regular sulphide

zone known as the "D" vein. Also, subdrifts have been opened in the foot

wall chert area (157 DR) on the 150' level, and along a narrow chert hor

izon in the hanging wall chert/boitite tuff milieu (403 DR) on the 400'

level.

Comments are given in the following text in respect to (1) the "C" Zone

(158 DR) , (2) the "B" Zone (156 DR) , (3) the "D" Zone (155 DR and 401 DR) ,

(4) the Footwall Chert Zone (157 DR), and (5) the 403 Zone (403 DR). These

various mineralized zones are perhaps more clearly identifiable in Figure

5 (in pocket), which shows the extent and configuration of the zones as

presently understood.

C Zone Area;

As noted, the C Zone area (158DR) is intensely sheared and brecciated. Formational dips are to the west at about 45", but irregular. Brecciat ion of chert and veining is widespread, as is silicification in the containing biotite tuff. Disseminations and fracture fillings of pyrite are common, and generally fine gold occurs in a discrete lenticular zone of silicification along the northern end of the 158 drift. The auriferous zone appears to conform to an embayment in the talc schist/ biotite tuff contact, but the limits and configuration have not yet been defined.

Drilling has indicated a similar zone may exist near the shaft on the 400' level, but it is unlikely that this is continuous with the zone existing in the 158 drift on the 150' level. It is possible that other en echelon zones similar in character occur between the two levels.

B Zone Area:

The B Zone area includes both auriferous sulphide veining, and narrow cherty horizons which contain some visible gold. These zones exhibit a northerly strike and dip at approximately 60 0 to the west. Although excellent specimens of free gold have been obtained from the cherts in this area, adequate mining widths and zonal continuity have not been demonstrated. This zone has been opened along the 156DR.

D Zone Area:

The D Zone south of the shaft has been followed for a distance of approx imately 1,000 feet on the 150' and 400' levels, and has been intersected

C.M, HOGG S. ASSOCIATES LTD.

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8.

in drilling at a depth of 800 feet below surface. It is a variably sheared sulphide/vein system containing generally coarse pyrite, arsenopyrite, pyrrhotite, sphalerite and galena in varying amounts. The zone pinches and swells along strike, from a few inches in width at the minimum to about 5 feet in width at the maximum in the areas observed. Occasionally very high gold and silver values have been reported from the sulphide zone, but the material appears to average in the range of 0.20 oz.Au/ton and 4.0 oz.Ag/ton. It is notable that high silver values occur only in the sulphide-rich mineralization of the D and B Zone complexes.

The D Zone dips at about 65 0W, and appears unconformable with the foot wall cherts to the east. It may well be conformable with the overlying formations to the west, however.

Footwall Chert Zone:

The Footwall Chert Zone lies subparallel to the D Zone, and dips at approximately 60 0W, It consists of veined chert up to 4 feet in width, which contains some disseminated pyrite and erratically distributed coarse free gold. Gold mineralization favours the contact areas, and in the 157 drift has been observed over a strike length of approximately 150 feet. This portion of the zone has not been opened on the 400' level but has been located in drilling.

403 Zone:

The 403 Zone was located in crosscutting to the west of the D Zone on the 400' level. It is a narrow chert horizon in which coarse visible gold occurs, again favouring contact areas. The zone extends over a strike length in excess of 500 feet on the 400' level, and has been located by drilling at the 150' level, and below the 400' level.

On the 400' level the 403 Zone is overlain by a 25 foot zone of veined and brecciated chert in which some visible gold has been observed. This unit has not been located at the 150' level, nor has it been extensively drilled elsewhere.

In review the recently-completed program has indicated the C Zone area to

contain a series of rather flat-lying auriferous silicified zones in a

strongly disturbed environment. The configuration of these zones is complex

and additional work will be required for definition.

The mineralized zones to the south of the shaft are lenticular, dip at

60 0 -65 0w, and plunge to the south at approximately 60 8 . Two zonal types

are recognized, both apparently stratabound and exhibiting good continuity.

C.M HOGG& ASSOCIATES LTD.

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9.

Evidence suggests that the sulphide type has very great tonnage potential

at a limited grade, and that profitable mining of the "swell" areas will

be possible. The gold-chert zones so far recognized are probably of very

good grade, but of lesser tonnage potential.

In the immediate vicinity of the shaft at the 150' level several gold

occurrences have been noted. These include the original B sulphide zone

investigated by Lac interests in 1955-56, and visible gold in overlying

cherts. Zonal continuity in this small area appears' poor, however, and the

existence of substantial reserves therein is unlikely. It will be noted

that the shaft centerline will intersect the projected southerly plunging

talc schist contact at a vertical depth of about 650 feet.

SAMPLING Si ASSAYING

Sampling of the McFinley underground workings on a systematic basis has

been extensive. However, the often coarse and erratically distributed

native gold in the deposit generally, a condition which could not be

anticipated at the outset of the program, has severely limited the effect

iveness of the resulting sample data.

Numerous cases exist in the 157 and 403 slusher drifts in particular,

where visible gold has been noted in face mapping and in muck, but all

face and back samples taken on the structured basis have returned values

of less than 0.10 oz.Au/ton. Recently some panel sampling, that is, random

sampling of each formation exposed at a face, has been done for comparative

purposes. An average of panel samples in one case in the 403 drift yielded

a value in excess of 0.50 oz.Au/ton, while the average of chip samples was

less than 0.10 oz.Au/ton, While the panel sample would appear the more

representative in this instance, the procedure is obviously subject to

undesireable bias on the part of the sampler.

GM HOGG 4 ASSOCIATES LID

Page 14: Designation No.: OM85-1-C-36 63.4659 BATEMAN 010

10.

A second related problem was encountered in assaying procedures, identified

by a system .of duplicate assaying which was applied to all earlier samples

taken during the program. In some cases samples known to contain visible

gold returned very low values, and in others a very wide discrepancy in

check values was evident. In the 403 Zone, for example, a spread of 16.30

to 0.13 oz.Au/ton was reported on one sample. This problem was subsequently

overcome to some degree by finer grinding of samples, and by more thorough

mixing of samples prior to splitting.

At this time then, because of uncertainties in the accuracy of sampling

data, it is not possible to accurately determine the grade of potential

ore zones. This is particularly true in areas of coarse gold occurrence

such as the Footwall Chert and 403 Zones, which the writer would provision

ally estimate at a grade of 0.30 to 0.50 oz.Au/ton over narrow mining

widths.

In respect to the sampling program the reported results accompany this

report in Folders l and 2. Folder l contains sheets showing contoured

assay ranges over sampled openings at a scale of l inch to 20 feet (horiz

ontal drill holes included on Waist Level Sample Sheets). In Folder 2 the

actual assay values and locations are shown on the l inch to 5 feet work

sheets from mine records.

POTENTIAL RESERVES

Limited openings exist on the 150' and 400' levels of the McFinley shaft

area, and several potential ore zones are exposed within them. As noted,

present sampling data is considered unreliable, so potential reserves can

be estimated only on a provisional basis, and are restricted to areas

which are presently opened to some degree.

Q.M. HOOO 6 ASSOCIATES LTD.

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11.

Figure 5 (in pocket) illustrates the character and extent of the various

mineralized zones of the McFinley shaft area as presently known, In ref

erence to this zonal configuration, the provisionally estimated reserves

immediately available in the shaft area above the 400' level are as

follows:

D Zone; 100,000 tons @ 0.20 oz.Au/ton, 4.0 oz.Ag/ton

Footwall Chert Zone; 20,250 tons @ 0.40 oz.Au/ton

403 Zone; 30,000 tons @ 0.40 oz.Au/ton

C Zone; 3,000 tons @ 0.30 oz.Au/ton {above 150' level)

Note: These are "in place" reserves, uncut and undiluted.

It should be emphasized that the possibilities for the development of

substantial additional reserves above the 400' level are by no means

exhausted. It will also be noted that auriferous chert and sulphide zones

have been intersected in exploratory drilling at depths in excess of

800 feet from surface, so the entire mineralized system in the shaft

area is open to the south and to depth.

FUTURE EVALUATION REQUIREMENTS

At this time the resolution of grade levels in the various mineralized

zones exposed in the recent McFinley program remains of the highest prior

ity. As noted, the 157 DR and 403 DR are "slusher drifts" on strongly

mineralized chert zones which are well-suited to the extraction of size

able bulk samples. There are also numerous sample sites on the sulphide-

rich and metallurgically complex D vein, but since most openings lie along

main access drifts care must be taken in sample extraction.

Since there are few laboratories which are capable of testing the sizeable

quantities of material required for an adequate determination of grade,

the options available to McFinley are (1) to arrange a large scale test at

CM HOGG l ASSOCIATES HO

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12.

an existing milling plant, or (2) to construct a small crushing and

extraction plant on site.

Insofar as grade testing at an existing mill will involve relatively large

tonnages, and there may still be doubt as to actual grade levels maintain

ed, the construction of a less costly test mill facility on the McFinley

property is considered the more desireable alternative. Testing will, of

course, be limited to the treatment of auriferous chert material which is

amenable to high gold recovery using gravity methods. The sulphide mater

ial, on which grade levels are better defined by past work, should be

concurrently subject to metallurgical testing by a laboratory such as

Lakefield Research to establish the necessary parameters for larger scale

mill design. However, only very limited tonnages of the D vein material

will be required for this investigation.

It is also clear that the shaft area as presently opened represents only

a very small part of the potential ore system in this location, and it

is not necessarily the best. Accordingly it is recommended at this time

that a deep drilling test be undertaken as illustrated in Figure 6.

In this respect geological projection suggests that the large, strongly

mineralized D zone complex, including both auriferous chert and sulphide

vein material, will intersect the highly disturbed talc schist contact

area at a depth of 1,500-2,000 feet approximately 1,000 feet southwest of

the shaft. This may well produce an area of strongly deformed and heavily

veined gold concentration of the C zone type. A 10,000 foot surface drill

ing program is proposed to test this possibility.

ESTIMATED COSTS

Only approximate cost estimates have been calculated, actual costs being

O M HOGO 4 ASSOCIATES LTD

Page 17: Designation No.: OM85-1-C-36 63.4659 BATEMAN 010

McFinley Red Lake Mines Ltd.

PROJECTION OF WORKINGS IN THE SHAFT AREA

POTENTIAL ORE ZONES

f"7 - CUilrlnt, mriil

Shaft Projected D ZONE CHERT to Section COMPLEX

..is. . .\_ 400 Level

V.DRILL TARGET

NW

- Talc Schist

- Chert Complex

I 44*4J — Brecciation, Veining

"***^ — D Sulphide Zone

C ZONE CHERTCOMPLEC

* * 4 \ v-*rv4 * * * -P

-f 4 -f + V.

4-44*.

2,000'DepthShaft C.L.

McFINLEY RED LAKE MINES LTD.

CROSSECTION 800S SHOWING

PROPOSED DRILLING AREA

SCALE: i i nch: sooft.

Figure 6

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13.

contingent on a number of variables which remain uncertain at this time.

Comparative cost ranges are given for the two alternative test programs

noted in the preceding section.

Alternative 1; {Mill Test)

This program is estimated to involve the extraction and milling of 20,000-

25,000 tons of material which would be milled at a local facility over an

eight month period. Costs include mill rehabilitation, start up and closing

costs for the mill, to be operated at a rate of 250 tons per day.

At the McFinley property no extensive modification in muck handling pro

cedures are contemplated, but a ventilation raise would be required, and

stope preparation work is necessary. Local trucking costs are considered.

Including the proposed surface drilling program, metallurgical test work

and support services the operational cost is estimated at $ 4.5 million.

This would be reduced by the forcast production and sale of approximately

6,000 ounces of gold ^ 2.5 million).

Alternative 2; (On Site Test)

This program would involve the extraction of 5,000-6,000 tons of auriferous

chert material which would be crushed and tabled at a 50 ton per day plant

erected at the McFinley property. An eight month operating period would

be required. In this instance no modifications of consequence would be

considered in the existing underground workings or mining plant.

Including the proposed surface drilling program, metallurgical test work,

milling plant construction and support services the total cost of this

program is estmated at $ 1.4 million. This would be reduced by the forcast

production and sale of approximately 2,500 ounces of gold ^ 1.0 million).

G.M HOGGi ASSOCIATES tTD.

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14.

CONCLUSIONS S RECOMMENDATIONS

The recent evaluation program conducted by McFinley on its Bateman Township

property in the Red Lake District of Ontario met the stated objectives with

positive results, with the exception of the completion of a fully effective

sampling operation. The extremely erratic distribution of gold mineralization

within the auriferous cherts in particular could not be anticipated, bearing

in mind that only a few occurrences of visible gold had been observed in

the underground workings available prior to the inception of this program.

The extensive chip sampling operation, while believed ineffective in the

establishment of firm grade levels, was successful in defining potential

ore areas. These are recognizeable on the basis of frequency of assay values

in excess of 0.06 oz.Au/ton, often coupled with visible gold occurrence.

It is our opinion that the McFinley property has the potential of becoming

a profitable gold producer. However, prior to serious considerations in

respect to production and development to deeper levels, it is necessary to

resolve uncertainties in grade definition and prove the presence of potent

ial ore concentrations at depth.

With these objectives in view a program of bulk sampling and surface diamond

drilling has been proposed, with alternative sampling plans defined. The

installation of a small sampling plant at the property, with the capability

of free gold recovery, is considered the more effective and least costly

of the two alternative plans and its implementation is recommended. On this

basis the proposed drilling and sampling program will cost approximately

S 1,400,000.

ectfully Submitted,

f. Hogg, P.Eng.

G M HOGG l ASSOCIATES LTD.

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15.

CERTIFICATE OF QUALIFICATION

I, Glen M. Hogg, of the City of Toronto, Ontario, Canada, do hereby

certify that:

1. I am a Consulting Engineer, principal of the firm of G.M. Hogg S, Associates Ltd., with an office located at 28 Thompson Avenue, Toronto, Ontario.

2. I am a member of the Association of Professional Engineers of Ontario, a registered Consulting Engineer with that organization, and a Designated Specialist in the Field of Geological Engineering, Classes of Exploration and Development.

3. I am a graduate of Queen's University, Kingston, Ontario, having received the degree of Master of Science therefrom in 1952. I have since practised professionally in the field of mineral exploration and development.

4. I have been associated with exploration and development operations on the McFinley Red Lake property in a consulting capacity since early 1983, and am familiar with the property and the general area.

5. I have no interest, direct or indirect, in the property on which this report is written; nor do I expect to receive any.

Dated in Toronto, Ontario, this -j?,(p ^ day of , 1986.

G M HOGG 4 ASSOCIATES LTD:

Page 21: Designation No.: OM85-1-C-36 63.4659 BATEMAN 010

APPENDIX I

Report on Preliminary Metallurgical

Test Work, Lakefield Research.

G.M HOGG! ASSOCIATES ITO.

Page 22: Designation No.: OM85-1-C-36 63.4659 BATEMAN 010

APPENDIX I

Report on Preliminary Metallurgical Test Work.

An Invettlgatlon of

TOE COLD VALUE DETERMINATION

from the or* (ample*

ubmltted by

HCflNLET MINES LIMITED

Progre** Report No. Z

LAKEFIELD RESEARCHA DIVISION Or FALCONBRIDGE LIMITED

January 29, 1986

INTRODUCTION

McFlnley Hlnei Limited requested the determination of the gold value*

In four ore tamplei. Whole aample* were treated by gravity concentration,

amalgamation and cyanldatlon. The head value wa* calculated.

LAKEFIELD RESEARCH

Experimental Work byi 0. Ashford

Page 23: Designation No.: OM85-1-C-36 63.4659 BATEMAN 010

J5 U M M A II T

the total samplea ai received vert crushed to minus 10 mean and 'ground to

80 X mlnui 200 mesh. Gravity concentration vat performed Initially with a Denver

Jig, followed by upgrading the Jig concentrate with a Ullfley table. The table

concentrate wai amalgamated with 20 grama of mercury for four houra. The Jig

tailing, table middling, table tailing, and the amalgamation tailing were combined

and pulped to 50 X olldi In a 200 litre agitation tank. The cyanldatlon waa carried

out with l g/L NaCN at pH 11 for 24 hduri. Activated carbon, CRC-22 at a concentration

of 10 g/L, waa added Into the alurry and agitated gently for a further 24 houra.

finally, the carbon, residue and the barren eolutlph were leparated for gold assay.

The results are eummarUed In Table Ho. V.

Calculated Gold valuea In the sample were:

Table

* Sample 1

Sample 2

Sample 3

Sample 4

No. l

A. 07 g/t Au

3.12 g/t Au

3.81 g/t Au

4.80 g/t Au

Amalgamation and Cyanldatlon Results

Test

No.

1

2

3

4

Sample

No.

1

23

4

kg

138

7589

Consumption, kg/ t

NaCN

1.75

1.671.90

103.5 1.66

CaO

0.55

1.10

0.81

1.52

Cyanide Realdue Au g/t

1.92

0.510.97

0.33

Cyanide Extr.X AU

46.5

75.555.6

79.4

Amalgams t.

X Au

6.3

8.118.9

13.8

Total X Au

Recovery

52.8

83.674.5

93.2

Calc. Head

Au g/t

4.07

3.12

3.81

4.80

The gold extraction varied with the type of ore aample. The free gold

ranged from 6.3 X to 18.9 X. 46.5 X - 79.4 X of the gold waa extracted by cyanide.

The overall gold recovery waa 52.8 X - 93.2 Tt. The poor gold recoverlea may have

been due to micron alee gold partlclea Included In sulphide minerals.

Sample l - D Zone Sulphide (Chip Sample Rejects)Sample 2 - D Zone Sulphide (Chip Sample Rejects)Sample 3 - Chert/Vein Zone (Chip Sample Rejects, 157DR Chest)Sample 4 - Chert/Vein Zone (Chip Sample Rejects, 157DR Waist)

Page 24: Designation No.: OM85-1-C-36 63.4659 BATEMAN 010

DETAILS OF TESTS

Test No. l

Purpose!

Procedure)

To extract the gold and determine an overall head may of the sample as received.

The sample vas ground to 60 X -200 mesh In the 30 kg capacity ball mill then pulped Into a 200 t conditioning tnak. The sample was then feed via a Denver pump Into* Denver jig. The jig concentrate vas upgraded on a Wllfley table. The table concentrate was amalagamated vlth 20 g of Kg for 4 houri. The amalgam concentrate was assayed for gold. The jig tailing, table middlings and tailings and amalgamation tailings were all combined In a 200 L drum. Pulped to 50 J( solids and cyanlded as per the attached sheet. Carbon was added. After 24 hours after 48 hours the carbon was removed and a 2 L sample was taken, filtered and washed. All products were assayed for gold.

Cyanldatlon

Purpose)

Procedure)

Feed)

To cyanide the Jig tailing and amalgamation tailing of test No. 1.

The sample was pulped to SO X soldlds In a 200 L drum and stirred continuously with a mechanical mixer. Lime and cyanide were added as below. Carbon was added after 16 hours.

.~-138 kg of jig and amalgamation tailings

Solution Volume) 138 mL Pulp Density 50 X solids

Solution Composition) l.O g/L NaCN

pH Range: 11.0 with Ca(OH)i

Carbon) 10 g/L

Reagent Balance)

Time

Hours

0-1.5 1.5-15 15-21 21-48

Total

Added, Grams

Actu NaCN

145.2

116.2 25.4

28.68

1Ca(OH)i

100.0

0

100.0

EquNaCN

138.0

110.4 24.1

272.5

valent CaO

76.0

76.0

Residual

Gr NaCN

27.6 113.9 31.1

31.1

ma CaO

0.0

0.0

Consumed

GriNaCN

110.4 24.1

106.9

241.4

ma CaO

76.0

76.0

PH

11.0-11.1 li. 1-11. l 11.1-11.0 11.0-10.8

-

Reagent Consumption (kg/t of cyanide feed) NaCNl 1.75 CaOt 0.55

Metallurgical Results

Product

l. Amal. Concentrate 2, Carbon 3. CN Barren Solution i. CN Hash Solution J. Residue ,

Hesd (Calculated)

Amount

1392.7 g 138000 mL 530 ml 138000 g

138.0 kg

Assays, mg/L.g/t, mg

Au

35.586 186.0 0.012 0.050 1.92

4.07

X Distribution

Au

6.3 ' 46.2

0.3

47.2

100.0

Calculated Grades and Recoveries

Products l to 4 j 138.53 L Tl4 j 52.8

Page 25: Designation No.: OM85-1-C-36 63.4659 BATEMAN 010

Test No. 2

Purpose!

Procedure!

Cyanldatlon

Purpose:

Frocedurel

reed i

To repeat teit No. l with Sample No. 2.

A* for test No. 1.

To repeat teat No. 2 with the tailings from teat No. 2.

A* for test No. 1.

75 kg of Jig and Amalgamation tailing*

Solution Volume: 75 mL Pulp Density 50 X solids

Solution Composition! 1.0 g/L NaCN

p!l Rsngei 11.0 with C*(OH)t

Carbon! 10 g/L

Reagent Balance;

Time

Hour*

0-1.5 1.5-15 15-21 21-48

Total

Added t Grama

Actui NaCN

78.9

63.2 9.9

152.0

1 Ca(OH)i

80.0

20.0 10.0

UO.O

Equlv NaCN

75.0

60.0 9.4

144.4

alent CaO

60.8

15.2 7.6

83.6

Ketldual

GraNaCN

15.0 65.6 18.8

18.8

ma CaO

0.75

0.75

Conaumed

Cri NaCN

60.0 9.4

56.2

125.6

ma CaO

82.85

82.85

PH

11.0-11.2 11.2-10.0 11.0-10.8 11.0-10.9

-

Reagent Consumption (kg/t of cyanide feed) NaCNi 1,67 CaO; 1.10

Hetallurglcal Reaulta

Product

1. Amal. Concentrate 2. Carbon 3. CN Barren Sol'n 4. CN Wash Sol'n 5. Realdue

Head (Calculated)

Amount

"2 g 75000 mL 450 mL ' 75000 g

75 kg

Assay*, mg/L.g/t, mg

Au

18.999 234.0

0.006 0.004 0.51

3.12

# Distribution

Au

B.I 75.3 0.2

16.4

100.0

Calculated Grades and Recoveries

Product! 1 to 4 75 .45 L 2 .59 83 .6

Page 26: Designation No.: OM85-1-C-36 63.4659 BATEMAN 010

Test No.!

Purpose:

Procedure:

Cyanldatlon

Purpose:

Procedure i

Feed i

To repeat test Ho. l with Sample No. 3.

At for test No. l.

To repeat teit No. l with the tailing! from test No. 3.

Aa for teit No. 1.

89 kg of Jig and Amalgamation tailing*

Solution Volume: 89 ml Pulp Density 50 X solids

Solution Composition: 1.0 g/t NaCN

pH Range! 11.0 with Ca(OH)t

Carbon) 10 g/L

Reagent Balance:

Time

Houra

0-1.51.5-1515-2121-48

Total

Added, Grams

ActualNaCN

93.7.72.623.4

189.7

Ca(OH)i

95.0..-

95.0

EqulvNaCN

89.0.

69.022.2

180.2

(lentCaO

72.2..-

72.2

Reildual

Gr.NaCN

.20.066. B11.1

11.1

maCaO

.

.

.0.0

0.0

Consumed

GramaNaCN

.69.022.277.9

169.1

CaO

m

m

m.

72.2

72.2

PH

11.2-12.012.0-11.411.4-11.111.1-10.9

-

Reagent Consumption (kg/t of cyanide feed) NaCN: 1.9 CaO: 0.81

Metallurgical Results

1. Amal. Concentrate2. Carbon3. CN Barren Sol 'n4. CN Wash Sol 'n5. Residue

Head (Calculated)

.888. B g89000 tut655 ml89000 g

89 kg

Assays, mg/L.g/t, mg

Au

64.132212.0

0.0050.210.97

3.81

JC Distribution

Au

18.955.50.1.

25.5

100. 0

Calculated Grades and Recovertei

Products l to 4———————l——89.555 IT -7T8T-

Page 27: Designation No.: OM85-1-C-36 63.4659 BATEMAN 010

6.

Teat No. 4

Purpose

Procedural

Cyanldatlon

Purpose!

Procedure!

Feed:

To repeat teat No. l with Sample No. 4.

A* for teat No. 1.

To repeat teit No. l with the tailing from teat No. A.

Ai for teit No. 1.

103.5 kg of Jig and Amalgamation telling

Solution Volume! 103.5 mL Pulp Density 50 X s olids

Solution Composition! 1.0 g/L NaCN

pH Range! li.O with Ca(OH)i

Carbon! 10 g/L

Reagent Balance!

Time

Houra

0-1.5 1.5-15 15-21 21-48

Total

Added, Grama

Actu NaCN

108.4

75.8 26.8

211.0

1 Ca(OH)i

100.0 17.3 60.0 30.0

207.3

Equh NaCN

103.0

72.0 25.5

200,5

alent CaO

76.0 13.1 45.6 22.8

157.5

Realdual

Gri NaCN

31.0 77.5 28.4

28.4

ma CaO

0.0

0.0

Consumed

Gra NaCN

72.0 25.5 74.6

172.1

ni CaO

157.5

157.5

PH

11.0-10.3 11.1- 9.8 11.2-10.0 11.0-10.8

-

Reagent Consumption (kg/t of cyanide feed) NaCN: 1.66 CaOi 1.52'

Metallurgical Remits

1. Axial. Concentrate2. Carbon3. CN Barren Sol 'n4. CN Wash Sol 'n5. Reaaldue

Head (Calculated)

.1054.8 g103500 nL535 mL103500 g

103.5 kg

Assays, mg/l^g/t, mg

Au

68.340373.0

0.0090.0060.33

4.80

X D istribution

Au

13.879.20.2.6.8

100.0

Calculated Cradea and Recoverlea

Producta 1 to r 104.035 L 4.45 1 93.2

Page 28: Designation No.: OM85-1-C-36 63.4659 BATEMAN 010

APPENDIX II

Petrographic Description of Rock

and Ore Samples.

O M HOCG& ASSOCIAUSLTD

Page 29: Designation No.: OM85-1-C-36 63.4659 BATEMAN 010

APPENDIX II

Petrographic Description of Four Samples From the McFinley Property (2 Auriferous), by G.C. Wilson, —————————Rept. February 19, 1986.

OEOPUSTECH Inc.

Sample Client/Job

PETROGRAPHIC DESCRIPTION

l B-006l McFinley Red Lake Mines Ltd

Status) CONFIDENTIAL

Description) 222

Locality i Red Lake, Ontario.Collection details) USFormat i CTS, Geoplastech, TO - 30um

Hand specimen data: fer (Omm) amphlbolltlc rock, banded on a scale of 1-8mm. Approx lj sulphides (pyrr, py), concentrated Into particular bands. Bands are grn-brn-blaok (amph?) and white, shiny (qz?). Local carb Indicated by eff In dll HC1. Banding cut at a high angle by late velnlets. 1 piece and 3 chips.

Major Minerals)1 Quartz- equant, subrounded, Inclusion-free, unstrained grains, max gs 350x300um. A larger (600x100um) qz clump with slightly differing ext position et either end may represent two coeval, adjacent grains. 65*.* Amphibole- radiating sprays of fine prisms, sometimes centred on cores of relatively massive amph. May be partially enclosed by carb. Pale grn to neutral pleo. Occasionally as stubby laths, max gs I60x60um, but acicular habit more common. LS, MEA in well-formed laths approx 15 degrees. Blr approx 0.022. Actinolite. This Includes some grn material on the edge of qz-rlch bands which resembles cbl In HS| faintly pleo clinoamphibole with 2nd-o bl Int colours. 281.* Carbonate- max gs 700x600um, sometimes twinned, of equant, squarish habit, with symm ext. Vein carb usually more fgr than disseminated carb, often approx 200x200um. Pronounced twinkling on rotation. Eff In dll HC1 suggests at least part of the carb Is calcitic In composition. Mostly aasoo with act In the bulk of the rock. 6).

Minor and Accessory Minerals (11)|" Sulphides- euh-subh, max gs approx 300x300um, strongly concentrated Into particular bands, either within amph-rlch bands or near the contact between araph-rlch and qz-rloh layers. Thought to be mostly pyrr. t).

Texture^ qz shows a relatively constant gs {say within a factor of two), Is unstrained, and commonly forms 120-degree grain boundary junctions. These features are suggestive of extensive recrystallization.Carb veins out across all bands, sometimes with assoc preferential growth of carb along planes of Intersection with amph-rlch bands. Carb later than sulphides. Some amph Is found along the margins of the carb velnlets within qz bands, although there Is no other nearby amph In those bands. Recrystallization and carb velnlng at or soon after the peak of regional metamorphism?The sulphides are essentially absent from the carb) they are highly localised and were probably Introduced to the rock before the carb velnlng. The qz gs, as mentioned above, Is quite constant throughout, and Is a secondary feature. It Is hard to tell on HS/CTS scale whether the banding Is a primary feature.Summary i a well-banded quartz amphibolite, cut by late carbonate velnlng. Minor concordant pyrrhotite. A "banded chert 1 In mine terms, It Is quite possible {but not definite) that this feldspar-free banded rook Is e metasediment, subjected to greenschlst-faoles metamorphism [1], although the simple mineralogy Is Insufficient to further constrain the conditions of metamorphism. Intense multi-stage rock deformation In the Red Lake district (e.g. [2]) clearly requires care In Interpretation.

Age) Archean.

References)1. Fyfe.HS, Turner, fJ and Verhoogen.J (1958) Metamorphic Reactions

and Metamorphic Facies. GSA Mem. 73. 259pp.2. Andrews,AJ and Hugon,H (1985) Alteration, metamorphism, and structure

associated with Archean volcanic-hosted gold deposits, Red Lake district) studies In the Campbell and A.H.White Mines. DOS Misc.Pap. 126, 193-200.

Petrography) GCH, Turnstone Geological Services Ltd, TO Tue l8-Feb-86

Page 30: Designation No.: OM85-1-C-36 63.4659 BATEMAN 010

OEOPLASTECH Inc. PETROGRAPHIC DESCRIPTION Statusi CONFIDENTIAL

Sample i 2A/1-700SXCH Desorlptloni 223 Client/lob i McFlnley Red Lake Mines Ltd

Locality t Red Lake, Ontario.Collection details) HSFormat i CTS, Qeoplastech, TO - 31-32um

Hand specimen data) dark grn amphibolite with 1-2) pyrr following the foliation. May occur at the contact of dark and light bands. Calcitic carb indicated by eff In dll HC1 of white cross-cutting velnlets, Individual white grains and some of the dark matrix. Some bands have a yl-grn tint suggestive of epl. In sawn face of HS much pyrr Is visible along the banding In the rock, but some Is also seen along late qz-oarb veinlng. 1 piece and 7 chips.

Major Minerals)* Amphibole- elongate to stubby laths, larger gs varying from 250x70 to i|00xi)0um. 2nd-o Int colours, LS, colourless sections showing MEA approx 20 degrees. A lesser proportion of the whole (perhaps 6J of node) exhibits deep grn- pale brn- neutral pleo. This material displays unusually vivid pleochroic schemes for hb| thought to be a mixture of ohl and amphi Included with chl (below). 13*.* Quartz- located in the leucocratic bands) equant grains, gs mostly 50-1OOum. 23*.* Carbonate- possible Indications of recrystallization Include tiny carb granules located Inside larger crystals. Max gs 2.0x0.9mm, more often 300x300um or less. 22*.* Chlorite and amphibole- deep grn- neutral pleo, max absorption parallel to polarizer. Max gs 200x20um, LS, str ext (c.f. amph). 9) of node of rock) perhaps 3J Is ohl as described, the remainder Is quite fgr material, thought to be amph replacing the chl in prograde metamorphism.

Minor and Accessory Minerals (3J)l11 Opaque phases- masses to 2.2x0.6mm. Probably largely sulphide) pyrr and minor py? Found particularly In the qz-rich bands In the rock, sometimes assoo with carb. 3H.* Apatite- colourless equant grains of high relief and very low bir. Max gs I80x150um, located In qz-rich bands. Tr.

Texture) Leucocratic bands are composed largely of recrystalllzed qz (see also Descr. 222). Carb also shows possible traces of recrystallization (above). Carb may enclose anh opaque grains, In addition to delicate sprays of feathery amph. Opaque grains are located at or near leucocratic - melanocratic margins, a feature also noted in Descr. 222. The ore phase(s) may be late In the paragenesis) It is anh, with qz and carb Inclusions, displaying Irregular margins, often enclosed by carb.

Summary) amphibolite ('banded chert 1 In mine terminology),'metamorphosed at upper greenschist to lower amphibolite grade. Iron formation and chert are recorded as interflow sediments In the local volcanic stratigraphy [1], A (volcano-) sedimentary origin Is consistent with the petrographic features of both thin sections (Descr. 222-223), and may be applied provided good field data can exclude the possibility that the light and dark llthologles were mingled by strong folding and/or deformation.

The fact that the sulphide Is associated with quartz-rich material In this sample, and with darker lithologles In Descr. 222, Is compatible with the notion that In this rock quartz-sulphide veinlng was Injected parallel to compositional contacts.

Age) Archean.

References)1. Ferguson.SA et al (1971) Ooid Deposits of Ontario, Part 1.

ODM Mln.Res.Giro. 13, 315pp., 199-200.

Petrography) GCH, Turnstone Geological Services Ltd, TO Tue 18-Feb-86

Page 31: Designation No.: OM85-1-C-36 63.4659 BATEMAN 010

GEOPLASTECH Inc.

Sample Client/job

PETROORAPHIC DESCRIPTION

l B-012l McFlnley Red Lake Mines Ltd

Status) CONFIDENTIAL

Description) 224

Locality i Red Lake, Ontario.Collection details) HSFormat i HOmm PH, Geoplasteoh, TO

Harid specimen data) banded amphibolite, carrying approx 101 pyrr concentrated Into particular bands. Some carb in bulk (indicated by eff in dil HC1). Late (7) silica veins with dark selvages localise sufficient gold to constitute exceptional ore. Apparent remobllizatlon of some gold along thin {*X1mm) cracks. The auriferous fractures are normal to the rook banding, and examples up to 13mm long are visible. Some pinkish (?) garnet is visible in the PH. 1 piece and 3 chips.

Major Minerals)* Gangue- 80K.* Pyrrhotite- anisotropic, anh. 19J.

Minor and Accessory Minerals (2)))" Native gold- isotropic, with reflections from scratches on rotation. Rounded blebs up to 500x200um are found in the pyrr. A few blebs (max size 20x20um) and velnlets of gold (and lesser amounts of blebby pyrr) are enclosed by sphal. The gold In this setting has a harsher colour than the larger masses elsewhere, perhaps because it is recessed Into the sphal during the grinding process, and acquires a rougher finish as a result. Apparently extensively remobllizedt see Texture section. Velnlets occur with lengths OOmm, roughly 50um wide, boundaries undulating on a tOum scale, often enclosing small rounded pieces of the silicate vein margins. IJ(-).* Sphalerite- dark grey relative to pyrr, and darker than mag. Isotropic, with Internal reflections. 2 large grains (800x600 and 1200x500um) visible in PH in gold-rich area. Tr.* Chalcopyrite- max ga 60x40um, In pyrr. Tr.

Texture[ gold and pyrr may have been mobile, In some degree, at the same time) gold and pyrr both plate sphal, as rims of variable width (5-60um thickness of gold). There Is local enclosure of gold by pyrr. A 'sunburst' effect of pyrr and gold Infilling spaces between radiating silicate laths (amph?) Is seen In the main gold mass on one side of the mount. Some of the gold velnlets can be traced back to silicate-hosted gold blebs. In only one case was another ore mineral (sphal) found In small amounts In a gold velnlet.Remoblllzed gold appears to cut right through the garnet-bearing bulk, suggesting mobility after the peak of metamorphism. The gold velnlets are located in fractures in brittle silicates, not within the massive sulphide bands. To be precise, the favoured location for the fracture fillings is In dark silicate bands, not In white (T) qz-carb or In sulphidic bands. The fractures are straight) they appear to be locally offset (perhaps due to partial filling of an array of en echelon fractures), but are not folded. Preferential brittle fracturing has created this small-scale llthologloal control.

Summary) metabasite, probably of original basaltic composition [13, which has attained almandine amphibolite facies grade. Ooid may have been Introduced during a veinlng event) It was then partially remoblllzed Into late extensional fractures In a brittle silicate host.

Preparation of PTS would elucidate details of silicate-gold relationships and facilitate EPM, If required.

Age) Archean.

Reference)1. Ferguson,SA (1962) The South Half of Bateman Township.

ODM Geol.Rep. 6, 3tpp.

Petrography) GCH, Turnstone Geological Services Ltd, TO Tue 18-Feb-86

Page 32: Designation No.: OM85-1-C-36 63.4659 BATEMAN 010

CEOPUSTECH J no.

Sample Client/Job

PETROGRAPHIC DESCRIPTION

l 2t HcFinley Red Lake Mines Ltd

Status) CONFIDENTIAL

Description) 225

Locality i Red Lake, Ontario [1].Collection details) USFormat i 10mm PH, Oeoplastech, TO

Hand specimen data) grey-black vfgr siliceous ('cherty'1 ) rock, banded, with extensive pyrr content, approx 25J In the whole rock. Minor py and abundant traces of native gold are also visible, particularly on sawn surfaces. The gold is assoo with gangue In pyrr layers, and shows evidence of filling of late fractures, a process seen so well In the companion sample (Desor. 224). Very siliceous sample) no eff In dll HC1. 1 pleoe and 1 chips.

Major Minerals) •* Cangue- 58*.1 Pyrrhotite- ragged and anh In outline. Both the pyrr and enclosed nay contain may small blebs of gangue minerals. 40?.

euh py

Minor and Accessory Minerals* Pyrite- euh sections in pyrr. Apparently pure, except for rare, rounded pyrr inclusions (max 100x20um). Max gs 900x600uro. In one unusual case a horseshoe-shaped py mass nearly surrounds a small pyrr grain. 2\.* Native gold- soft yl tint, occurs as rounded blebs In pyrr, max size l80x7Qum, Isotropic, but with variable reflections prominent In ext positions, located at scratches in the soft metal surface. Mostly found as fracture fillings In brittle gangue) the largest velnlet Is roughly 2mm long and 60um wide. Abundant tr.* Chalcopyrite- max gs t60x)00um, located 'in pyrr In a sulphide-filled fracture. Tr.

Texture; open to Isoclinal drag folds [2] are traced out in silicate gangue bands within the pyrr bulk. Ooid cuts qz-rich veining within the sulphide-rich rock.In plane of PTS(C), gold-filled sections of fractures may begin at pyrr contacts, but often do not. Some sulphides do occur In the fracture environment) fractures contain either gold or sulphides) some pyrr fractures occur, one parallel to a gold fracture but some way along the same band, with Inclusions of py and chalc.One rectangular il30x200um bleb of gold is in contact with pyrr at either endi It bridges a thin silicate band within the sulphide mass, and is parallel to the thin gold-filled fractures in the brittle gangue beyond. Another thin, ragged, gold-filled fracture has the same orientation, 1.2mm along the same band. An exception to the general rule, two thin veinlets of gold extend along the.silicate band, parallel to the sulphide. This apparent anomaly may be due to 'sheltering' of the thin gangue (within the massive sulphide) from the extensional cracking in the wider bands. Cold is never found deep within the sulphide) it Is always near the silicates.A tentative history of this rock would Involve relatively early sulphide introduction, folding, veining and gold Introduction, and late fracturing and gold remoblllzatlon. Cold is thought to postdate the sulphide.

Summary) gold ore, apparently hosted in Iron formation sediment, as opposed to metabasio rooks (o.f, Descr. 224, [1]). Structural relations suggest late remobilizatlon of gold, following the peak of the deformatlonal event recorded In the folding of the (presumed) banded sediment.

Arsenopyrite and galena have been reported from the area [1], - but were not noted here.

Age) Archean.

References)1. Ferguson,SA (1962) The South Half of Bateman Township.

ODM Geo).Rep. 6, 31pp.2. Wilson,O (1982) Introduction to Small-Scale Geological Structures.

' George Allen and Unwin, 128pp.

Petrography) GCH, Turnstone Geological Services Ltd, TO Tue l8-Feb-86

Page 33: Designation No.: OM85-1-C-36 63.4659 BATEMAN 010

Brief Summary of Four Complex Samples - Note on Ore Paragenesis!

Desor. Sample Ore ( t) Rock type Early S Late S Early Au Late Au

222 B-006 1 Metased/teotonlte Yes

223 '700SXCH' 3 Hetased/teotonlte Yes

221) 8-012 20 Hetabasalt Yes Yes - Yes

225 2 ^2 Iron formation Yes Yes - Yes

Page 34: Designation No.: OM85-1-C-36 63.4659 BATEMAN 010

63.4659 BATEMAN 200

McFinley Red Lake Mines Ltd.

PROJECTION OF WORKINGS IN THE SHAFT AREA,

UNDERGROUND ADVANCE

SCALE-- l inch * 200ft.

1956 Program

1984-85 Program {Phoenix}

1985-86 Program (McFinley)

FIGURE 3G. M. HOGG, MARCH,1986.

G .M HOGG l ASSOCIATES LID

Page 35: Designation No.: OM85-1-C-36 63.4659 BATEMAN 010

McFinley Red Lake Mines Ltd.

PROJECTION OF WORKINGS IN THE SHAFT AREA,

GEOLOGY

SCALE: l inch = 200ft.

LEGEND

- Brecciated Area

•^ - M ajor Fault

* - Visible Gold Occurrence

^" - S ulphide Zone

FIGURE 452M04NE0029 63.4659 BATEMAN

G. M. HOGG, MARCH,1986,

GM HOGG* ASSOCiMES LTD

Page 36: Designation No.: OM85-1-C-36 63.4659 BATEMAN 010

McFinley Red Lake Mines Ltd.

PROJECTION OF WORKINGS IN THE SHAFT AREA,

POTENTIAL ORE ZONES

SCALE: l inch = 200ft.

52N04Ne0029 63.4659 BATEMAN

J G. M. HOGti, MAKUH.iayb.

*220

~ C herty Zone, coarse Au

~ B recciated Zone, fine Au

S1 fSS ~ S ulphide Zone, Au, Ag

FIGURE 5

CM MCGG& ASSOCIATES LIC

Page 37: Designation No.: OM85-1-C-36 63.4659 BATEMAN 010

Trac

e or

Ni

l.

0.01 to 0.05 oz/ton Au

0.05

to

0.

10 oz

/ton

Au

0.10

to

0.

25 oz

/ton

Au

.

0.25

to 0.

50 oz/ton Au.

Greater

than 0.50

oz/ton Au

94/2

-0'

High

Gr

ade

Sample.

MCFIN

LEY

RED

LAKE

MI

NES

LIMIT

EDM

CF

INL

EY

P

RO

JEC

T

BA

TE

MA

N

TW

P.

RE

D

LA

KE

A

RE

A

DIS

TR

ICT

O

F

KE

NO

RA

, O

NT

AR

IO

AS

SA

Y

CO

NT

OU

RS

4

00

L

EV

EL

S

OU

TH

(BA

CK

S

AM

PL

ES

)

Date

. M

ay, 1

986

Page 38: Designation No.: OM85-1-C-36 63.4659 BATEMAN 010

10,000 E

Trac

e or Ni

l.

0.01

to

0.

05 02/ton Au

0.05

to

0.

10 oz/ton Au

.

0.10

to

0.

25 oz

/ton

Au

0.25 to 0.50 oz/ton Au

Greater

than 0.50 oz/ton Au

•94/E

-o1

Hig

h G

rade

Sa

mpl

e

MCFIN

LEY

RED

LAKE

MI

NES

LIMIT

EDMC

FINL

EY

PROJ

ECT

BA

TE

MA

N

TW

R,

RE

D

LA

KE

A

RE

A

DIS

TR

ICT

O

F

KE

NO

RA

, O

NT

AR

IO

AS

SA

Y

CO

NT

OU

RS

4

00

LE

VE

L

SO

UT

H(C

HE

ST

H

EIG

HT

)

52N04NE0029 63.4659 BATEMAN

Page 39: Designation No.: OM85-1-C-36 63.4659 BATEMAN 010

Trac

e or Ni

l.

0.01

to

0.

05 oz/ton Au.

0.05 to 0.10 oz/ton Au.

0.10 to 0.25 oz/ton Au

0.25 to 0.50 oz/ton Au

Grea

ter

than 0.50

oz/ton Au

•94/2-0' High Grade Sample

MCFIN

LEY

RED

LAKE

MI

NES

LIMIT

EDM

CF

INL

EY

P

RO

JEC

T

BA

TE

MA

N

TW

R,

RE

D

LA

KE

A

RE

A

DIS

TR

ICT

O

F

KE

NO

RA

, O

NT

AR

IO

AS

SA

Y

CO

NT

OU

RS

40

0

LE

VE

L

SO

UT

H(W

AIS

T

HE

IGH

T)

S2N04NE0*29

63.4659 BATEMAN

Page 40: Designation No.: OM85-1-C-36 63.4659 BATEMAN 010

52N04NE0029

63.4659 BATEMAN

LEGEND

0.01 to

0.05

oz/ton Au

0.05 to

0.10

oz/ton Au

.

0.10 to 0.25 oz/ton Au.

0.25 to 0.50

oz/ton Au.

Greater

than

0.

50 oz/ton Au

94/2-0'

High Grade

Sample.

40

FE

ET

60

80

MCFIN

LEY

RED

LAKE

MI

NES

LIMIT

EDMC

FINL

EY

PROJ

ECT

BA

TE

MA

N

TW

R,

RE

D

LA

KE

A

RE

A

DIS

TR

ICT

O

F

KE

NO

RA

, O

NT

AR

IO

AS

SA

Y

CO

NT

OU

RS

40

0

LE

VE

L

SO

UT

H(B

AC

K

SA

MP

LE

S)

SH

EE

T 2/2

By:

P. A

. F.

Mop

N

o!

Page 41: Designation No.: OM85-1-C-36 63.4659 BATEMAN 010

LEGEND.

Trace

or Ni

l.

0.01 to 0.05 oz/ton Au.

0.05

to

0.

10 oz/ton Au

.

0.10

to

0.

25 oz/ton Au

.

0.25 to

0.50 oz/ton Au

.

Greater than 0.50 oz/ton Au

94/2-0' High Gr

ade

Sample

MCFIN

LEY

RED

LAKE

MI

NES

LIMIT

EDM

CF

INLE

Y

PR

OJE

CT

BA

TE

MA

N

TW

R,

RE

D

LA

KE

A

RE

A

DIS

TR

ICT

O

F

KE

NO

RA

, O

NT

AR

IO

AS

SA

Y

CO

NT

OU

RS

40

0

LE

VE

L

SO

UT

H(C

HE

ST

H

EIG

HT

)

Da

te i

M

oy

,l9

86

By :

P A

. F.

SH

EE

T 2

/2

Map

N

o;

52N

MN

EW

29

63.

4659

B

ATE

MA

N

Page 42: Designation No.: OM85-1-C-36 63.4659 BATEMAN 010

Trac

e or Nil.

0.01 to 0.05 oz/ton Au.

0.05 to 0.10 oz/ton Au

0.10

to

0.

25 oz/ton Au

0.25

to

0.

50 oz/ton Au

Greater than 0.50

oz/ton Au

-94/2-01

High Gr

ade

Samp

le.

MCFIN

LEY

RED

LAKE

MI

NES

LIMIT

EDMC

FINL

EY

PROJ

ECT

BA

TE

MA

N

TW

R,

RE

D

LA

KE

A

RE

A

DIS

TR

ICT

O

F

KE

NO

RA

, O

NT

AR

IO

AS

SA

Y

CO

NT

OU

RS

4

00

LE

VE

L

SO

UT

H(W

AIS

T

HE

IGH

T)

Da

te .

May

,198

6

Page 43: Designation No.: OM85-1-C-36 63.4659 BATEMAN 010

9,7

00 E

9,8

00 E

9,9

00

E

IO.O

OO

E

IO.IO

OE 5

2N

04N

EK

029

63.4

659

BAT

EMAN

230

00 ~O* O O Z

LEGEND.

Trace

or Ni

l.

0.01 to 0.05 oz/ton Au

0.05 to 0.10 oz/ton Au

0.10 to 0.25 oz/ton Au

0.25 to 0.50 oz/ton Au

Grea

ter

than

0.50 oz/ton

Au

-94/

2-01

High Gr

ade

Sample.

20

40

FE

ET

60

80

MCFIN

LEY

RED

LAKE

MI

NES

LIMIT

EDMC

FINL

EY

PROJ

ECT

BA

TE

MA

N

TW

P.

RE

D

LA

KE

A

RE

A

DIS

TR

ICT

O

F

KE

NO

RA

, O

NT

AR

IO

AS

SA

Y

CO

NT

OU

RS

15

0

LE

VE

L

SO

UT

H(BACK SAMPLES)

Dote : May,

1986

By :

p A.

F.

SHEET 1/3

Map

No!

Page 44: Designation No.: OM85-1-C-36 63.4659 BATEMAN 010

9,7

00 E

9,8

00 E

9,9

00E

IO.O

OO

E

10,1

00 E

63.4

659

BA

TEM

AN

l0

0 o*

o O

30

0

o o zo o

ro

o o z

LEG

END

.

Tra

ce

or

Nil

.

0.01

to

0.

05 oz/

ton

Au.

0.05

to

0.

10

oz/

ton A

u.

0.10

to

0.

25 oz/

ton

Au

0.2

5

to

0.5

0 o

z/t

on

A

u

Gre

ater

th

an

0.50

oz/

ton

Au

94/2

-0'

Hig

h G

rade

Sa

mpl

e

20

40

FE

ET

60

80

MCFIN

LEY

RED

LAKE

MI

NES

LIMIT

EDMC

FINL

EY

PROJ

ECT

BA

TE

MA

N

TW

R,

RE

D

LA

KE

A

RE

A

DIS

TR

ICT

O

F

KE

NO

RA

, O

NT

AR

IO

AS

SA

Y

CO

NT

OU

RS

150

LE

VE

L

SO

UT

H(C

HE

ST

H

EIG

HT

)

Date

: M

ay

, 19

86

SH

EE

T

t /3

By

: R

A. F

.M

ap

No

;

Page 45: Designation No.: OM85-1-C-36 63.4659 BATEMAN 010

9,70

0 E

9,80

0 E

9.90

0E

10,0

00 E

lO.IO

OE

63

.46

59

B

ATE

MA

N310

LEGEND.

Trac

e or Ni

l.

0.01 to 0.05 oz/ton Au.

0.05 to

0.10

oz/ton Au

.

0.10 to 0.25 oz/ton Au

.

0.25 to 0.50

oz/ton Au.

Greater

than

0.

50 oz

/ton

Au

-94/

2-01

High Grade

Samp

le.

20

4O

FE

ET

60

8O

MCFIN

LEY

RED

LAKE

MI

NES

LIMIT

EDM

CF

INLE

Y

PR

OJE

CT

BA

TE

MA

N

TWR

, R

ED

LA

KE

A

RE

A

DIS

TR

ICT

O

F K

EN

OR

A,

ON

TAR

IO

AS

SA

Y

CO

NTO

UR

S15

0 LE

VE

L

SO

UT

H(W

AIS

T

HE

IGH

T)

Date

: M

ay, 1

986

By:

p A.

F.

SHEE

T 1/

5

Map

N

o!

Page 46: Designation No.: OM85-1-C-36 63.4659 BATEMAN 010

Trace or Nil.

0.01 to

0.05

oz

/ton

Au

0.05 to 0.10

oz

/ton

Au

0.10 to 0.25

oz/ton Au.

0.25 to 0.50 oz/ton Au.

Grea

ter

than

0.

50 oz

/ton

Au

•94/

z-o'

High Grade Sample.

MCFIN

LEY

RED

LAKE

MI

NES

LIMIT

EDMC

FINL

EY

PROJ

ECT

BA

TE

MA

N

TW

P.

RE

D

LA

KE

A

RE

A

DIS

TR

ICT

O

F

KE

NO

RA

, O

NT

AR

IO

AS

SA

Y

CO

NT

OU

RS

150

LE

VE

L

SO

UT

H(B

AC

K

SA

MP

LE

S)

Date

. M

ay,

1986

Page 47: Designation No.: OM85-1-C-36 63.4659 BATEMAN 010

Trace or Nil.

0.01 to

0.05

oz/ton Au

0.05 to 0.10

oz/ton Au

0.10 to 0.25

oz/ton Au

0.25 to 0.50

oz/ton Au

Greater

than 0.

50 oz/ton Au

94/2

-01

High Grade Sample.

MCFIN

LEY

RED

LAKE

MI

NES

LIMIT

EDMC

FINL

EY

PROJ

ECT

BA

TE

MA

N

TW

P,

RE

D

LA

KE

A

RE

A

DIS

TR

ICT

O

F

KE

NO

RA

, O

NT

AR

IO

AS

SA

Y

CO

NT

OU

RS

50

LE

VE

L

SO

UT

H(C

HE

ST

H

EIG

HT

)

Da

te .

M

ay,

1986

Page 48: Designation No.: OM85-1-C-36 63.4659 BATEMAN 010

9.8

00

E

9,9

00E

T

IO,2

00E

o

oo o

63

.4B

59

B

ATE

MA

N34-0

en O O

(D O O Z

p o

o zO o

o o

LEGEND.

Trac

e or Ni

l.

0.01

to 0.

05 oz/ton Au

0.05

to

0.

10 oz/ton Au

0.10

to

0.

25 oz/ton Au

.

0.25

to

0.

50 oz/ton Au

.

Grea

ter

than 0.50

oz/ton Au

94/2-0' High Gr

ade

Sample.

20

40

FE

ET

60

80

MCFIN

LEY

RED

LAKE

MI

NES

LIMIT

EDM

CF

INL

EY

P

RO

JEC

T

BA

TE

MA

N

TW

f?,

RE

D

LA

KE

A

RE

A

DIS

TR

ICT

O

F

KE

NO

RA

, O

NT

AR

IO

AS

SA

Y

CO

NT

OU

RS

150

LEV

EL

SO

UT

H(W

AIS

T

HE

IGH

T)

SH

EE

T

Date

! M

ay,

1986

B y

: P

A.F

.M

op

No!

Page 49: Designation No.: OM85-1-C-36 63.4659 BATEMAN 010

Trace

or Nil.

0.01.to

0.05

oz/ton Au

0.05 to

0.10

oz

/ton

Au

0.10 to 0.25 oz/ton Au.

0.25 to 0.50

oz/ton Au.

Greater

than

0.

50 oz

/ton

Au

-94/

2-0'

Hi

gh Grade

Samp

le.

MCFIN

LEY

RED

LAKE

MI

NES

LIMIT

EDM

CF

INLE

Y

PR

OJE

CT

BA

TE

MA

N

TW

P,

RE

D

LAK

E

AR

EA

D

IST

RIC

T

OF

KE

NO

RA

, O

NTA

RIO

AS

SA

Y

CO

NT

OU

RS

150

LE

VE

L

NO

RT

H(B

AC

K

SA

MP

LE

S)

Da

te !

May

,198

6

Page 50: Designation No.: OM85-1-C-36 63.4659 BATEMAN 010

LEGEND.

Trace

or Ni

l.

0.01

to

0.

05 oz/ton Au

0.05

to

0.

10 oz/ton Au

.

0.10

to

0.

25 oz/ton Au

.

0.25

to

0.

50 oz/ton Au.

Greater

than

0.50 oz/t

on Au

94/20' High Grade Sample.

O O o o z

p 6 o

p ro o o

p OJ o o

p o o

o

o

o 01

o o

52

N0

4N

E0

82

9

63

.46

59

B

ATE

MA

N3

60

MCFIN

LEY

RED

LAKE

MI

NES

LIMIT

EDM

CF

INLE

Y

PR

OJE

CT

BA

TE

MA

N

TW

R,

RE

D

LAK

E

AR

EA

D

IST

RIC

T

OF

KE

NO

RA

, O

NT

AR

IO

AS

SA

Y

CO

NT

OU

RS

150

LE

VE

L

NO

RT

HtC

HE

ST

H

EIG

HT

)

Da

te :

May,

1986

SH

EE

T3/3

By

: P.

A. F

.M

ap

No!

Page 51: Designation No.: OM85-1-C-36 63.4659 BATEMAN 010

Trac

e or Ni

l.

0.01 to 0.05 oz/ton Au.

0.05

to

0.10 oz

/ton

Au

.

0.10 to 0.25 oz/ton Au

0.25 to 0.50 oz/ton Au

Grea

ter

than 0.50

oz/ton Au

•94/z

o1 High

Grade

Sample.

MCFIN

LEY

RED

LAKE

MI

NES

LIMIT

EDMC

FINL

EY

PROJ

ECT

BA

TE

MA

N

TW

R,

RE

D

LA

KE

A

RE

A

DIS

TR

ICT

O

F

KE

NO

RA

, O

NT

AR

IO

AS

SA

Y

CO

NT

OU

RS

50

LE

VE

L

NO

RT

H(W

AIS

T

HE

IGH

T)

Da

te .

May,

1986

63.4659 BATEMAN

370

Page 52: Designation No.: OM85-1-C-36 63.4659 BATEMAN 010

PH

OE

NIX

G

OLD

M

INE

S

LTD

FIN

LE

Y

PR

OJE

CT

BA

TE

MA

N

TW

R,

RE

D

LA

KE

A

RE

A

DIS

TR

ICT

O

F

KE

NO

RA

, O

NT

AR

IO

ISO

LE

VE

L

/SS

SouT

ti D

/?/f T

3

SO

6

XC

W

CH

IP

SA

MP

LE

RE

SU

LTS

-

Page 53: Designation No.: OM85-1-C-36 63.4659 BATEMAN 010

52N

84N

E(W

29

63.4

659

BA

TEM

AN

39

0

PH

OE

NIX

G

OLD

M

INES

LT

D

FIN

LEY

P

RO

JEC

T

BA

TE

MA

N

TW

P,

RE

D

LAK

E

AR

EA

D

IST

RIC

T

OF

KE

NO

RA

, O

NTA

RIO

ISO

LE

VE

L

IS'S

S

OU

TH

D

RlP

T

3&O

CH

IP

SA

MP

i^

RE

SU

LT

S

ELE

VA

TIO

N:

Do

te;

By:

K

.MC.

Map

N

o

Page 54: Designation No.: OM85-1-C-36 63.4659 BATEMAN 010

O ^ o-

52N

SW

NE

IM29

63.4

659

BA

TE

MA

N•4

00

r-

PH

OE

NIX

G

OLD

M

INE

S

LTD

.

FIN

LE

Y

PR

OJE

CT

BA

TE

MA

N

TW

R,

RE

D

LA

KE

A

RE

A

DIS

TR

ICT

O

F

KE

NO

RA

, O

NT

AR

IO

155

SOUT

H D

RIF

T

CHIP

SA

MPL

E R

ES

ULT

S

ELE

VA

TIO

N -

' &A

CK3

OF 3

Da

te:

By:

Map

N

o!

Page 55: Designation No.: OM85-1-C-36 63.4659 BATEMAN 010

52N04NE0329 63.4659 BATEMAN

•410

'-i

-—i

PH

OE

NIX

G

OLD

M

INES

LT

D

MG F

INLE

Y

PR

OJE

CT

BA

TE

MA

N

TW

P,

RE

D

LAK

E

AR

EA

D

IST

RIC

T

OF

KE

NO

RA

, O

NT

AR

IO

550

SX

CW

CH

IP

SA

MP

LE

RE

SU

L75

ELE

VA

TIO

N :

C

HE

ST

Do

te:

FEB

. H

By

Mop

N

o

Page 56: Designation No.: OM85-1-C-36 63.4659 BATEMAN 010

63.4

659

BA

TEM

AN

42

0

--i- -

4

7 "

PH

OE

NIX

G

OLD

M

INES

LT

D

MC F

INLE

Y

PRO

JEC

T

BA

TE

MA

N

TW

P.

RE

D

LAK

E

AR

EA

D

IST

RIC

T

OF

KE

NO

RA

, O

NT

AR

IO

CHIP

SAM

PLE

r

Date

: FE

B.'zc

,B

yM

a p

No

Page 57: Designation No.: OM85-1-C-36 63.4659 BATEMAN 010

PH

OE

NIX

G

OLD

M

INE

S

MC F

INLE

Y

PR

OJE

CT

BA

TE

MA

N

TW

P,

RE

D

LAK

E

A^

R

EA

D

IST

RIC

T

OF

KE

NO

RA

, O

NT

-A B

RIO

/SO

L

EV

EL

15

5

SO

UT

hf

D R

ir T

c H IP

s A

M r

LE

IE s

u ir s

BA

CK

52N

B4N

E0a

29

63

.46

59

B

ATE

MA

N

Page 58: Designation No.: OM85-1-C-36 63.4659 BATEMAN 010

PH

OE

NIX

G

OLD

M

INES

LT

D.

MC

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