GM 43679LORRAINE MINE

LORRAINE MINE

Gaboury and Blondeau Townships

Temiscamingue County Quebec

N.T.S. 31 M-7

Lat. 47 21' Long. 78 48'

Ministère de rEnergie et des Ressources Service de la Géoinfcrmation

Date 2 3 FEV, 1987

No G.M.

October 1985 Joe B. Hinzer 6455 Stamford Green Drive Niagara Falls, Ontario

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SUMMARY

The Lorraine Mine property consists of 19 mining claims located in

Gaboury and Blondeau Townships approximately 50 miles (80 km) east of

Ville-Marie, Quebec. The property contains the former Lorraine Mine

which produced 600,000 tons of ore grading 1.37% Cu, 0.62% Ni, 0.2 oz.

Ag/ton and 0.02 oz. Au per ton and the Blondeau Nickel showing which

contains 250,000 tons grading 0.45% Cu and 0.45% Ni.

The claims are underlain primarily by Precambrian volcanic rocks. The

strata strikes east-west with near vertical dips and tops to the south.

The Cu-Ni mineralization occurs within sheared mafic volcanics usually

at or near the contacts with dioritic or gabbroic intrusives.

Significant Au-Ag mineralization occurs in quartz veins within highly

sheared volcanics in the lower levels of the Lorraine Mine.

The Lorraine Mine has been developed to the 6th level (800 feet).

Sub-ore grade Cu-Ni mineralization traced down plunge to at least (1,500

feet) remains open at depth. Dissemminated Cu-Ni mineralization at the

Blondeau Nickel showing remains virtually untested along strike and down

dip. Numerous other Cu-Ni showings and geophysical anomalies require

additional testing.

Au-Ag mineralization occuring as en-echalon quartz veins up to 1 foot

wide have been traced for a strike length of at least 171 feet on the

6th level. A 92.0 foot length of this zone averaged 1.32 oz. Au/ton,

1.19 oz. Ag/ton and 3.19% Cu over a width of 0.92 feet. The adjacent

shear zone wall rock was not assayed. The extent and orientation of

this mineralization has not been established.

The location of additional zones of Cu-Ni mineralization on this

property is almost certain. However, the current economics of Cu-Ni

makes this aspect of the property unattractive at the present time. The

Au-Ag mineralization encountered on the 6th level of the mine on the

other hand does make an extremely attractive exploration target.

Compilation of all previous data, diamond drill evaluation of the Au-Ag

zone on the 6th level of the Lorraine Mine and a comprehensive surface

1

exploration program to test for additional precious metal targets is

recommended. An expenditure of $350,000 is required.

11

TABLE OF CONTENTS

Page

SUMMARY 1

TABLE OF CONTENTS iii

1.0 INTRODUCTION 1

2.0 LOCATION AND ACCESS 1

3.0 PROPERTY DESCRIPTION 1

4.0 GENERAL GEOLOGY 3

5.0 PREVIOUS WORK 3

6.0 PROPERTY GEOLOGY 5

7.0 ECONOMIC GEOLOGY 6

8.0 DISCUSSION 7

9.0 CONCLUSIONS 9

10.0 RECOMMENDATIONS 9

11.0 COSTS 10

REFERENCES 11

LIST OF FIGURES

Figure 1. Location Map 2

Figure 2. General Geology 4

Figure 3. Level Plan 6th Level Lorraine Mine 8

LIST_ OF MAPS

Map 1. Compilation Map (in pocket)

APPENDICES

I — List of Claims

1.0 INTRODUCTION

This review and evaluation of the Lorraine Mine property was prepared

for Halo Centrex Inc. in October 1985. The Lorraine Mine was a former

Cu-Ni producer with significant Ag and Au by-product. Additional Cu-Ni

reserves are reported from the former mine and several adjacent areas.

Gold and silver mineralization reported from the lower mine levels was

never fully evaluated. The report is based on a review of available

assessment file reports, government reports and private company reports

made available to the author. The property was not visited.

Conclusions and recommendations are based on the authors interpretation

of the available data and previous experience with similar types of

mineralization.

2.0 LOCATION AND ACCESS

The property consists of three separate claim blocks located on either

side of the common Gaboury and Blondeau Townships boundary in

Temiskamingue County approximately 13 miles (21 km) southwest of

Belleterre, Quebec (Figure 1).

The property is accessable via Route 382 an all weather road leading

east for 36 miles (58 km) from Ville-Marie to Belleterre and then east

via Route 62 and a 3 mile (5 km) gravel access road for 13 miles (21 km)

to the Lorraine Mine. The two claim blocks in Blondeau Township are

accessable by bush roads leading south from Route 62, 5 miles (8 km)

north, or on foot from the Lorraine Mine a distance of 1.2 miles (2 km)

or 2.5 miles (4 km) respectively.

3.0 PROPERTY DESCRIPTION

The property consists of 19 mining claims comprising 442 hectares. The

claims form three internally contiguous but separate blocks of 10, 6 and

4 claims (Figure 1). The claims are owned 100% by Geoconseils Jack

Stoch Limitee as recorded by the M.E.R. as of 85/04/30. The list of

claim numbers and status are appended (see Appendix I).

1

3

4.0 GENERAL GEOLOGY

The area is underlain for the most part by Archean Keewatin volcanics,

which are overlain in part by a lobe of Proterozoic sediments of the

Lorraine and Gowganda Formations which in turn are overlain in the

extreme west by Ordovician sediments of the Liskard Formation (Henderson

1936) see Figure 2.

The Keewatin rocks are generally east—west striking with vertical to

steep southerly dips and tops to the south. The Huronian sediments and

overlying Paleozoic sediments are relatively flat lying and in most

cases unconformably overlie their respective predecessor units.

5.0 PREVIOUS WORK

The earliest recorded work in the area dates back to 1939, but

significant results were not reported until 1953 when Kelly Lake Nickel

Mines Ltd. first encountered Cu—Ni mineralization. The Blondeau Nickel

Mines Ltd. showing was discovered in 1957 and the Lorraine Mine showing

was discovered in 1962. The following table summarizes the previous

exploration work in this area.

1956 Diamond Drilling, Magnetic Survey 8 holes

1957 Airborne Magnetic Survey Ground Magnetic Survey Geology, Diamond Drilling 24 holes

Saphine Petroleums Ltd.

Blondeau Nickel Mines Ltd. J. Travers

1958

1962-64

Magnetic, EM, Geology Surveys

Geology Report

Airborne Magnetic Survey Diamond Drilling 26 holes

Magnetic, EM, I.P., Geology Surveys, Diamond Drilling 38 holes (18,922 feet)

Belleterre Quebec Mines Ltd.

Nealon Mines Ltd.

Mespi Mines Ltd.

McIntyre Porcupine Mining Co. Ltd.

1963 Diamond drilling 1 hole

Consolidated Golden (483 feet)

Arrow Mining Ltd.

o Ih 1 ~ I R. II R. VII

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LOCATION MAP

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LEGEND

ARCHEAN PALEOZOIC

7 ORDOVICIAN 3 GRANITE Reference:

Map 703A, Deportment of Mines and Resources, /943.

2 SEDIMENTS 6 GRENVILLE SERIES

VOLCANICS PROTEROZOIC

s LORRAIN FORMATION

r a~ GOWGANDA FORMATION Drift-covered area

GENERAL GEOLOGY TEMISCAMINGUE AREA

12 6 0 I , I

SCALE FIGURE 2.

12 miles

1963-68

1981-82

Magnetic, Self—Potential Geochemistry, Geology, Diamond Drilling (U.g.) Mining Production — 600,000 tons

5

Lorraine Mining Co. Ltd.

Compilation Report Geoconseils Jack Stoch Ltee

6.0 PROPERTY GEOLOGY

All three claim groups are underlain by altered metavoleanic rocks

primarily of mafic to intermediate composition with minor lenses of

felsic volcanics. Diorite and gabbroic intrusives are common,

especially in the Lorraine Mine and Blondeau groups. These volcanic

rocks terminate against a major granitic belt approximately one mile

north of the Lorraine Mine. The rocks are east—west trending with near

vertical dips and tops are considered south (Kish 1971). An eastward

plunging anticlinal fold axis and northeast trending faults are noted on

all the claim blocks.

The Lorraine Mine claim group is underlain by mafia volcanic flows with

minor intermediate and felsic bands. A combination of massive diorite

and gabbro intrudes the volcanic sequence forming a tounge between the

volcanics to the south and the granite batholith to the north. The

Cu—Ni sulphide ore body is confined to a northeast striking shear zone

within the mafia volcanics at the contact of a diorite mass. The

productive zone was 40 feet wide 250-300 feet long and extended to 800

feet below the surface. Both the diorite body and the ore rake to the

southeast. The mineralization is best developed at or near tight folds

along the diorite contact. The main sulphide minerals are pyrite,

pyrrhotite violarite, marcasite, magnetite, chalcopyrite, pentlendite,

and bravolite. Minor gold silver and platinoids were also recovered.

According to a report by J. Maclntosh (1967) quartz becomes more

abundant in the lower part of the ore zone where the sulphide appear to

pinch out. Several isolated lenses of significant gold mineralization

are reported from the quartz rich shear zone on the sixth level.

The Blondeau Nickel claim group is underlain primarily by basic

volcanics and gabbroic intrusives. An extensive zone of disseminated

6

Cu-Ni mineralization is encountered in the contact zone of a gabbroic

intrusive and amphibolitized mafic lavas. This zone of sub ore grade

mineralization remains open down, dip and along strike. Previous

operators tested only for Cu-Ni mineralization.

The Gold showing claim group is underlain primarily by mafic andesitic

flows. The only feature of note is a northeast trending fault passing

through the centre of the property (Kish 1971).

7.0 ECONOMIC GEOLOGY

The Lorraine Mine property is situated within an area containing several

Cu-Ni deposits and many showings (see Map 1). The Lorraine Mine,

produced 600,000 tons of ore grading 1.57% Cu, 0.62% Ni, 0.2 oz. Ag/ton,

0.02 oz. Au/ton and minor platinoids from 1964-68. Additional reserves

of 14,000 tons grading 1.03% Cu and 1.25% Ni have been outlined below

the sixth level, and the mineralized zone is known to continue down

plunge to at least 1,500 feet. The indicated width and grade however

appear to be sub-economic.

The Blondeau Nickel showing contains an estimated 250,000 tons of 0.45%

Cu and 0.45% Ni mineralization in a disseminated zone along a gabbro

intrusive. This mineralized zone remains open both along strike and

down dip.

Other occurences of Cu-Ni mineralization are present elsewhere on the

property. Assays of 3.83% Cu over 3.1 feet were reported from a trench

east of the Lorraine Mine shaft. A self-potential anomaly nearby these

trenches revealed Cu rich float assaying 6.11% Cu. Limited diamond

drilling in these areas has been inconclusive. Given the extensive

Cu-Ni mineralization in this area the occurrence of additional

mineralized lenses of economic tonnage and grade is very likely.

Perhaps of greater significance is the presence of precious metals Au-Ag

and platinoids in both the mine area and the surrounding rocks.

Descarreaux (1967) located fine gold bearing quartz veins on the sixth

level of the Lorraine Mine. The veins average one foot in width and may

be up to 25 feet long occuring within highly sheared volcanics. An

average of several grab samples returned values of 0.94 oz. Au/ton, 0.72

oz. Ag/ton and 2.75% Cu. During underground development these quartz

veins were encountered on the 601E Drift, 601W Drift, 6015 cross-cut and

the 602S cross-cut, see Figure 3. A combined average assay of 1.32 oz.

Au/ton, 1.19 oz. Ag/ton and 3.19% Cu over a width of 0.92 feet and a

length of 92.0 feet was obtained from the 601E and W drifts. Two

additional en-echelon veins starting 48 feet west of the vein in the

601W drift assayed 0.412 oz. Au/ton, 0.65 oz. Ag/ton and 3.16% Cu over a

width of 1.68 feet and a strike length of 31.0 feet. One hole drilled

from the 601S cross-cut below the sixth level encountered 1.56 oz.

Au/ton and 3.63 oz. Ag/ton for 3.2 feet. Gold bearing quartz veins were

also reported in the 601S cross-cut and the 602S cross-cut by mine

personnel. Additional drifting along this main shear failed to locate

any additional Cu-Au veins. The control or orientation of this vein

system was never determined.

Similar Cu-Au mineralization is also expected at the Blondeau Nickel

showing. Previous operators assayed only for Cu and Ni.

J. Stoch (1981) also reports a surface gold showing near Mud Creek (see

Map 1). A northeast trending fault structure similar to that at the

Lorraine Mine is shown to pass through this area.

8.0 DISCUSSION

Cu-Ni mineralization is common throughout this entire area, and the

possibility of finding additional lenses is quite good. The current

market however, for Cu-Ni products is depressed and even the richest

deposit may not be economic. Consequently, exploration expenditures for

these commodities are limited at least at the present time.

The associated Au-Ag mineralization however is significant. Au-Ag-Cu

bearing quartz veins present within the lower part of the main shear

zone at the Lorraine Mine appear to be of economic grade. Although they

are confined to the shear zone their extent and orientation has not yet

been defined. Experience from other areas, especially the Val d'Or

region suggests that gold mineralization may often migrate along

7

I ;2,RnJNE: M/i1l.5:. 6.th Le,e/

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Gold I7eesee*,ent

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ys le. A.,J. //GS - Go/ w oA — .Y/1.a A/.C9 - .31 It.

7~P.

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~ Tu.+. I tG7 - Go/ Swt - /,SG .7A/3.2' - O.7 H.

c 11.te: :•/) o.ly ueln w+.Y.-~'./ w.s ~esAyel.

J -4 fp 7.,.. .m.- M a. r l,..i z.g< r -ia FL wi./..0 N.t urrgy<1~

northeast trending shear zones and become deposited along numerous

structural traps.

A thorough evaluation of the known gold mineralization on the 6th level,

particularly structural controls such as the anticlinal axis and the

northeast faults may lead to the discovery of additional gold zones and

may also aid in evaluating other potential target areas elsewhere on the

property.

9.0 CONCLUSIONS

1. The Lorraine Mine property has a proven potential of hosting

additional deposits of Cu-Ni mineralization and may also host

economic concentrations of precious metals.

2. Sub-ore grade Cu-Ni mineralization is known to continue down

plunge to a depth of at least 1,500 feet at the Lorraine Mine.

3. A second zone of sub-ore grade Cu-Ni mineralization, the

Blondeau Nickel showing, has not been tested down dip or along

strike.

4. Several other Cu-Ni showings and anomalies along strike from the

Lorraine Mine have not been thoroughly tested.

5. The orientation and extent of significant Au-Ag mineralization

encountered in a quartz rich shear zone on the sixth level of

the Lorraine Mine has not been determined.

10.0 RECOMMENDATIONS

There is little doubt as to the possibility of outlining additional

Cu-Ni mineralization on this property. The depressed state of the Cu-Ni

industries at the present time however does not make this aspect of the

property an attractive exploration prospect at this time. A complete

and comprehensive compilation study of the large volumes of data

generated by the previous operators however is recommended to prepare,

in advance, for future Cu-Ni rallies.

9

The significant Au-Ag mineralization encountered in the lower levels of

the Lorraine Mine on the other hand are an ideal exploration target at

the present time. Even a small tonnage of ore would be economic because

of the presence of the existing mine workings. A diamond drilling

program to evaluate this Au-Ag-Cu vein system and surface exploration to

locate other, nearby, potential Au-Ag zones is highly recommended.

The above programs would require an expenditure of $350,000.

11.0 COSTS

1) Compilation Study (2 months)

2) Diamond Drilling Lorraine Mine Zone

Surface Exploration/Linecutting Geology Geochemistry Supervision, Report Prep. Administration Contingencies

10,000 feet @ $25 20 miles @ $250

1,000 @ $20

$ 10,000

$250,000 5,000 5,000 20,000 25,000 25,000 20,000

$350,000

Respectfully Submitted.

Joe B. Hinzer

10

REFERENCES

Kish, L., 1971. Gaboury and Blondeau Townships, Quebec. Department of

Natural Resources Geological Report No. 145.

GM 5184 Notes Sur Decouvertes Mineralisees, Cantons de Laverlochere,

Gaboury et Blondeau par J. Dugas, 1957.

GM 5519 Blondeau Nickel Mines Ltd., Blondeau Township, Quebec. Report

on Magnetometer Survey by J. B. Prendergast, 1957.

GM 5603 Consolidated Regcourt Mines Ltd., Blondeau, Guillet, Lanoue and

Bellefeuille Townships, Quebec. Report on Aerial Magnetometer

Survey by J. B. Prendergast, 1957.

GM 5635 Blondeau Nickel Mines Ltd., Blondeau Township, Quebec. Diamond

Drill Logs by J. B. Prendergast, 1957.

GM 6045A Belleterre Quebec Mines Ltd., Blondeau Township, Quebec.

Blondeau Group Report by C. R. D. Miller, 1957.

GM 6150 Blondeau Nickel Mines Ltd., Blondeau Township, Quebec. Mining

Property Report for 1957 by J. Dugas, 1957.

GM 6152 Nealon Mines Ltd., Blondeau Township, Quebec. Mining Property

Report for 1957 by J. Dugas, 1957.

GM 6686 Mespi Mines Ltd., Blondeau Township, Quebec. Report on Aerial

Electromagnetic Survey by J. B. Prendergast, 1958.

GM 7312 Belleterre Quebec Mines Ltd., Blondeau Township, Quebec.

Magnetometer and Electromagnetic Surveys Report by N. R. Patterson,

1958.

GM 12440 Prospect de Cuivre, Claims O'Brien Rivard, Cantons de Blondeau

et Gaboury par J. Dugas, 1962.

GM 12548 McIntyre Porcupine Mining Co. Ltd., Gaboury and Blondeau

Townships, Quebec. DDH No. M-1 to M-12 by J. A. Platxon, 1962.

11

GM 13153 Consolidated Golden Arrow Mining Ltd., Blondeau and Gaboury

Townships, Quebec. DDH Nos 1, 2 by J. Dugas, 1963.

GM 13163 McIntyre Porcupine Mines Ltd., Gaboury and Blondeau Townships,

Quebec. Diamond Drill Log by L. S. Trenholme, 1963.

GM 13249 McIntyre Porcupine Mines Ltd., Blondeau and Gaboury Townships,

Quebec. Combined Electromagnetic and Magnetic Surveys by J. A. C.

Keefe, 1963.

GM 13540 Lorraine Mining Co. Ltd., Cantons de Blondeau et Gaboury par

J. Dugas, 1963.

GM 13586 McIntyre Porcupine Mines Ltd., Gaboury and Blondeau Townships,

Quebec. Report on and Induced Polarization Survey by H. O. Seigel,

1963.

GM 13593 Lorraine Mining Co. Ltd., Gaboury and Blondeau Townships,

Quebec. Surface Geology Report by R. W. Spence, 1963.

GM 13697 Lorraine Mining Co. Ltd., Gaboury and Blondeau Townships,

Quebec. Diamond Drill Log by R. W. Spence, 1963.

GM 13740 McIntyre Porcupine Mines Ltd., Blondeau Township, Quebec.

Surface Geology Report by R. W. Spence, 1963.

GM 13964 Lorraine Mining Co. Ltd., Gaboury and Blondeau Townships,

Quebec. Rivard Showing Area by M. Lambert, 1962.

GM 14192 Lorraine Mining Co. Ltd., Gaboury and Blondeau Townships,

Quebec. A Report on the Copper Nickel Property by J. A. Plaxton,

1964.

GM 14306 Lorraine Mining Co. Ltd., Gaboury and Blondeau Townships,

Quebec. Informational Report by ? , 1964?

GM 14313 B. W. Lang, Gaboury and Latulipe Townships, Quebec. Airborne

Geophysical Survey by A. Ratlew, 1964.

12

GM 14345 McIntyre Porcupine Mines Ltd., Blondeau Township, Quebec by M.

Zurokowski, 1964.

GM 15470 Lorraine Mining Co. Ltd., Gaboury and Blondeau Townships,

Quebec. Assessment Work Report No. 1 by G .B. Darling, 1964.

GM 16180 Lorraine Mining Co. Ltd., Gaboury and Blondeau Townships,

Quebec. Copper-Nickel Development by R. D. Hoffman, 1964.

GM 16891 Lorraine Mining Co. Ltd., Gaboury and Blondeau Townships,

Quebec. Assessment Work Report No. 2 by G. B. Darling, 1965.

GM 17117 Lorraine Mining Co. Ltd., Gaboury and Blondeau Townships,

Quebec. Assessment Work Report No. 2A by G. E. Lecaille, 1965.

GM 18842 Lorraine Mining Co. Ltd., Gaboury and Blondeau Townships,

Quebec. Assessment Report No. 3 by G. E. Lecaille, 1966.

GM 18911 Lorraine Mining Co. Ltd., Gaboury and Blondeau Townships,

Quebec. Geochemcial Sampling by J. L. Walker, 1966.

GM 19228 Lorraine Mining Co. Ltd., Blondeau Township, Quebec. Logs of

DDH Nos PS-4, PS-5, PS-11 and PS-12 by V. Popov, 1966.

GM 19229 Lorraine Mining Co. Ltd., Gaboury and Blondeau Townships,

Quebec. Detailed Magnetometer Survey by V. Popov, 1966.

GM 20400 Apple, B. Nixon, Blondeau Township, Quebec. Sketch of Surface

Work in 1967 by B. N. Apple, 1967.

GM 21150A Lorraine Mining Co. Ltd., Gaboury and Blondeau Townships,

Quebec. DDH Logs by V. Popov, 1967.

GM 21150B Lorraine Mining Co. Ltd., Gaboury and Blondeau Townships,

Quebec. Assessment Work Report No. 5 by J. K. Youngblut, 1967.

GM 21871 Fleury, Yvan, Blondeau Township, Quebec. Sketch of Surface

Work in 1968 by Y. Fleury, 1968.

13

GM 22132 Lorraine Mining Co. Ltd., Gaboury and Blondeau Townships,

Quebec. Reports and Maps by V. Popov, 1967.

GM 22133 Lorraine Mining Co. Ltd., Gaboury and Blondeau Townships,

Quebec. Appendix to Geological Report by V. Popov, 1967.

GM 23153 Lorraine Mining Co. Ltd., Gaboury and Blondeau Townships,

Quebec. Self Potential Survey by W. G. Wahl, 1968.

GM 23156 Lorriane Mining Co. Ltd., Gaboury and Blondeau Townships,

Quebec. Diamond Drill Logs by V. Popov, 1968.

GM 23828 Lorraine Mining Co. Ltd., Gaboury and Blondeau Townships,

Quebec. Dept. Nat Res, Quebec by J. A. Maclntosh, 1967.

GM 23845 Fleury, Yvan, Blondeau Township, Quebec. Sketch of Surface

Work in 1969 by Y. Fleury, 1969.

GM 25536 Lorraine Mining Co. Ltd., Blondeau and Gaboury Townships,

Quebec. Maps of Underground Workings by ?, 1967.

GM 36989 Geoconseils Jack Stoch Ltee, Blondeau and Gaboury Townships,

Quebec. Report on Geological and Geophysical Compilation by J.

Stoch, 1981.

GM 38770 Blondeau Nickel, Blondeau Township, Quebec. Copper-Nickel

Zone by Geoconseil Jack Stoch, 1982.

1 4

CERTIFICATE

I Joe B. Hinzer am a consulting geologist and reside at 6455 Stamford

Green Drive in the city of Niagara Falls, Ontario.

I have been practicing my profession for fifteen years and am a graduate

of the University of Waterloo, 1971 B.Sc. and the University of Western

Ontario, 1977 M.Sc. and am a Fellow of the Geological Association of

Canada.

The author has not personally visited the property. The information for

this report is based on private company reports and government and

assessment file reports.

The author warrants that he has not directly or indirectly received or

expects to receive any interest direct or indirect in the property of

the company or of any affiliate or beneficially owns directly or

indirectly any securities of the company or any affiliate.

APPENDIX I

List of Claims

APPENDIX I

List of Claims

Geoconseils Jack Stoch Limitee 85/04/30

BLONDEAU

Claim No. Area (ha) Status

417536-1 16 85-06-03

417802-1 16 85-05-02

2 16 85-05-03

3 16

4 16

5 16

417803-1 16 86-05-01

2 16

3 16

4 16 86-05-02

5 16

417869-2 16 85-05-02

3 16

GABOURY

415158-1 40 85-05-02

417871-1 40 86-04-26

2 40

418650-1 40 86-02-17

427066-1 40 86-02-17

2 34

417813-1, 86-05-02

TOTAL 20 478