OVERBURDEN DRILLING REPORT...Overburden Drilling Management Ltd. was retained to provide technical...

42A08NE0108 2 .6092 M ICHAUD 010

NAHANNI MINES LTD.

MICHAUD TOWNSHIP

ONTARIO

OVERBURDEN DRILLING REPORT

(Loft. 2.BY

K. MACNEIL

OVERBURDEN DRILLING MANAGEMENT LTD.OCTOBER, 1983

a.ecaa MICHAUD 010C

INTRODUCTION lProperty Location and Access lTopography 9Geology 9Exploration History 10 The Principles of Overburden Exploration in Glaciated Areas 10

DRILLING AND SAMPLING 12Reverse Circulation Drilling 12Logging and Sampling 12Sample Processing 13

BEDROCK GEOLOGY 13Geology of Michaud Township 13Bedrock Geology of the Drill Area 15Structure and Magnetics 17

QUATERNARY STRATIGRAPHY 18Regional Glacial History 18 Quarternary Stratigraphy of the Drill Area

GEOCHEMISTRY 24 Base Metal Geochemistry of Heavy Mineral Concentrates 24Base Metal Geochemistry of Bedrock Chip Samples 25Gold Anomaly Strength and Gold Particle Size 26Properties of a Significant Gold Dispersion Train 28Gold Geochemistry of Heavy Mineral Concentrates 29Gold Geochemistry of Bedrock Chip Samples 34

CONCLUSIONS 35

RECOMMENDATIONS 36

REFERENCES 37

CERTIFICATION 38

APPENDICES

APPENDIX A - Reverse Circulation Drill Hole Logs

APPENDIX B - Sample Processing Logs and Sample Weights

APPENDIX C - Bedrock Chip Sample Logs

APPENDIX D - Heavy Mineral Logs - Hole 03

APPENDIX E - Base Metal Analyses - Bedrock Chip Samples

APPENDIX F - Gold Analyses - Bedrock Chip Samples

APPENDIX G - Base Metal Analyses - Heavy Mineral Concentrates

APPENDIX H - Gold Analyses - Heavy Mineral Concentrates

TABLES

Page

Table l - Claim Numbers and Drilling Statistics *

Table 2 - Heavy Mineral Gold Geochemistry 31

Table 3 - Bedrock Gold Geochemistry 3*

FIGURES

Figure l - Property Location Map 2

Figure 2 - Property Map 3

Figure 3 - Sample Processing Flow Sheet 14

Figure 4 - Compilation Map in pocket

Figure 5 - Quaternary Stratigraphy of Profile A-A1 19

Figure 6 - Quaternary Stratigraphy of Profile A'-A" 20

Figure 7 - Quaternary Stratigraphy of Profile A-B 21

Figure 8 - Quaternary Stratigraphy of Profile C-C' 22

Figure 9 - Effects of Glacial Transport on Gold Particle Size and Shape 27

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INTRODUCTION

In late August of 19S3, Nahanni Mines Ltd. drilled 15 reverse circulation holes in south-central Michaud Township. The holes were spotted on, and to the south of, a linear "magnetic low" considered to be representative of the position of the Destor-Porcupine Fault. The placement of holes was designed to test for any Au-dispersion indicative of up-ice, sub-cropping, mineralized bedrock along a 2600 metre strike length of the fault. Overburden Drilling Management Ltd. was retained to provide technical expertise and interpretation of glacial stratigraphy, geochemistry, etc., and to make recommendations for future work.

Heavy mineral and bedrock gold analyses were done by an assay method rather than the more commonly used Fire Assay/Atomic Absorption method, due to the backlog of samples on Bondar-Clegg's geochemical circuit. The assay method has a detection limit of 10 ppb (0.01 ppm) as opposed to the 5ppb (0.005 ppm) detection limit obtained with the Fire Assay/A.A. method. This is not considered significant. The assay method is also more precise for samples containing gold in excess of 15,000 ppb, and this more than makes up for the slight increase in the lower detection limit.

Analyses for copper, lead, zinc and arsenic were done by normal geochemical methods (A.A. for Cu, Pb, Zn, and colourimetric for As) rather than by assay. A number of samples were re-analyzed for Cu, Pb, and Zn to establish the validity of the initial analyses and to determine metal concentrations in samples where insufficient material remained following the gold assay to perform the required base metal analyses.

Property Location and Access

Nahanni Mines Ltd. property comprises 83 contiguous claims (Fig. 2; Table 1) in Michaud and Garrison Townships, within the Larder Lake Mining Division, District of Cochrane.

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LEGEND

m Michaud Township drill area

,........ Hudson Bay/St.Lawrence River drainage

divide

100

Kilometers

Fig.l-Property Location Map

H- (X*

O•d(D

•d

l

s

p-

h" O

l P.

lO

5H-83t-3 O

CO

h" t) D)

VjJl

-4-

Claim Number

521393394395396397

398403404406407408412413414415416417418419420

Hole Number

1011

02050304

Meters Drilled

Overburden

36.735

22.13147.635.6

Bedrock

0.81.5

1.62.11.90.9

Depth ofHole

(meters)

37.536.5

23.733.149.536.5

Samples Collected

Overburden

32

6It 18'l*.

S 7

Bedrock

l l l l^

7

Table l - Claim Numbers and Drilling Statistics

-5-

, ClaimNumber

521421422423424

427 428

586484485486487488489490491492493494495496497

HoleNumber

06 07 13 12 09

Meters Drilled

Overburden

42.1 '

28.5 37.9 25.4 32.7

Bedrock

1.4 1.0 0.6 1.1 0.7

Depth ol Hole

(meters)

43.5 29.5 38.5 26.5 33.4

Samples Collected

Overburden

3 4 211

Bedrock

1 1 11 1

Table l - (Continued)

-6-

ClaimNumber

591305306307308309310311312313314315316317

632952953954955956957958959

HoleNumber

Meters Drilled

Overburden Bedrock

Depth of Mole

(meters)

Samples Collected

Overburden Bedrock


-7-

ClaimNumber

653636637638639640

642643659660661662

767346347

772743

744 745746747748

HoleNumber

08

011514

Meters Drilled

Overburden

34.9

43.348.6 38.4

Bedrock

1.1

0.70.9 1.1

Depth of Hole

(meters)

36

4449.5 39.5

Samples Collected

Overburden

2

47 6

Bedrock

1

11 1


-8-

Claim Number

772975976

Totals;

83

Hole Number

15

Meters Drilled

Overburden

539.8

Bedrock

17.*

Depth of Hole

(meters)

557.2

Samples Collected

Overburden

87

Bedrock

15


-9-

The claim block lies approximately 90 kilometres east of the Porcupine gold mining centre at Timmins and 40 kilometres north of the once active Kirkland Lake camp. Highway No. 101 passes through the northeast corner of Michaud Township. From this highway, narrow logging roads and overgrown bush roads and trails lead to the claim block.

Topography

The drill area is flat reflecting the subdued topography produced by sedimentation in glacial Lake Ojibway. Immediately north of the property, outwash sands of the Munro Esker system - which passes through the northern portion of the township - have been modified by prevailing winds to produce parabolic dunes to 15 metres in height. Ludgate, Neelands and Westaway Lakes, as well as some smaller ponds, result from the embayment of waters in the "hooks" of some dunes. Other lakes (Perry, Pike k Emens Lakes) occupy kettle depressions within, or marginal to, the main channel of the Munro Esker. Pike Lake, in the central portion of the township, is drained by the Pike River which flows south into Barnet Township and then west and northwest through Cook, Guibord and Hislop Townships and into the Black River. Perry Lake is drained by Perry Creek which flows westward to join the Pike River system in Guibord Township.

Geology

Archean meta-volcanic and felsic intrusive rocks of the Abitibi greenstone belt underlie the drill area. The Destor-Procupine Fault system is described (Satterly, 1949) in the east-central portion of Michaud township and is believed to extend through the claim block held by Nahanni Mines Ltd. The exact position of the fault system as well as of lithologic contacts is obscured by the pervasive deposits of Quaternary sediments. These deposits comprise two till units along with intervening and overlying glaciofluvial and glaciolacustrine sediments.

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Exploration History

The close association of the Destor-Porcupine Fault system with the gold deposits of the Timmins camp has led to extensive exploration in proximity to the known trace of the fault. Within Michaud Township, a sub-economic Au-deposit occurs in sheared, altered syenite near Ludgate Lake, immediately north of the Nahanni claims. The area of interest itself does not appear to have been explored extensively in the past due to the thick drift deposits and possibly the fact that the economically viable deposits of the Timmins camp occur only to the north of the Destor-Porcupine Fault. Line cutting, ground geophysical surveys (Mag, EM), as well as geological mapping of grids has been undertaken in recent years by Redstone Resources and Nahanni Mines Ltd. on claims now held by Nahanni Mines Ltd.

The Principles of Overburden Exploration in Glaciated Areas

During the Pleistocene epoch of the Quaternary period, the crowns of all ore bodies that subcropped beneath the continental ice sheets of North America were eroded and were dispersed down-ice in the glacial debris. The dispersion mechanisms were systematic (Averill, 1978) and the resulting ore "trains" in the overburden are generally long, thin and narrow and most importantly are several hundred times larger than the parent ore bodies. These large trains can be used very effectively to locate the remaining roots of the ore bodies.

Because the dispersion trains originated at the base of the ice, they are either partly or entirely buried by younger, nonanomalous glacial debris. Many trains are confined to the bottom layer of glacial debris the basal till. In fact, the sampling of glacial overburden for exploration purposes is commonly referred to as "basal till sampling". It is important to note, however, that in areas affected by multiple glaciations the bottom layer of debris in the overburden section may be only the lowermost of several stacked basal tills, and that a dispersion train may occur at any level within any one the basal till horizons. Consequently, the term "basal till sampling" is not synonymous with the collection of samples from the base of the overburden section. Moreover, the term is not strictly correct because significant glacial dispersion trains can occur in formations other than basal till.

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From the foregoing statements, it can be seen that glacial dispersion and glacial stratigraphy are interdependent. Consequently, the effectiveness of overburden sampling as an exploration method is related to the ability of the sampling equipment to deliver stratigraphic information from the unconsolidated glacial deposits. Most drills have been designed to sample bedrock and are unsuitable for overburden exploration, but the reverse circulation rotary system has been designed specifically for overburden sampling. This system employs a tricone bit and dual-tube rods, with the outer tube acting as a casing to prevent contamination of samples by material caving from overlying sections. Air and water are injected through the annulus between the outer and inner rods to deliver a continous sample of the entire overburden section through the small inner rod. The sample is disturbed but returns to surface instantly, and the precise positions of stratigraphic contacts can be identified. Full sample recovery is possible in all formations regardless of porosity or consistency. Moreover, the hole diameter is sufficient (7.5 cm) to provide the large samples that are needed to compensate for the natural inhomogeneities of glacial debris. Overburden holes are extended 1.5 to 2 m into bedrock and the bedrock chip samples are used to determine overburden provenance and thereby define the directions of glacial transport. The inter related bedrock and overburden data provide exceptionally comprehensive exploration coverage.

Most of the glacial overburden in Canada is fresh, and metals in the overburden occur in primary, mechanically dispersed minerals rather than in secondary chemical concentrations. While ore mineral dispersion trains are very large, they are also weak due to dilution by glacial transport and are difficult to identify from a normal "soil" analysis of the fine fraction of the samples. Consequently, heavy mineral concentrates are prepared to amplify the primary anomalies, and analysis of the fines is normally reserved for areas where significant post-glacial oxidation is evident. The heavy mineral concentrates are very sensitive, and special care must be taken to avoid the introduction of contaminants into the samples.

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DR1LLING AND SAMPLING

Reverse Circulation Drilling

A reverse circulation drill was commissioned from Heath and Sherwood

Drilling of Kirkland Lake to ensure effective sampling of the deep overburden. In

the period from August 23-29, 1983, a total of fifteen holes were completed in

Michaud Township. Five hundred fifty-seven point two metres (557.2 m) of

overburden and bedrock were drilled.

Logging and Sampling

Reverse circulation holes were logged and sampled by Overburden Drilling

Management Ltd. and Nahanni Mines Ltd. personnel. A two-man crew was on site

for all drilling. Geologists K. MacNeil and D. Garden undertook the task of logging

and sample collection during the course of the program.

Reverse circulation samples were collected in two 20 litre buckets coupled

with a plastic tube. This procedure ensured a quiet settling environment thus

reducing the loss of fines encountered if only one bucket was used and allowed to

overflow. A 10-mesh (1700 micron) screen was used to discard the majority of rock

cuttings and increase the proportion of fine material needed to identify and trace

dispersion trains. The +10 rock cuttings were constantly monitored to discern any

variations which could give clues to overburden stratigraphy, or for any clasts

indicative of an environment suitable for gold mineralization. Approximately 20

percent of the cuttings were kept as a permanent record and for possible future

reference.

Continuous samples of all clastic horizons (till, gravel, sand) were collected

as well as bedrock chip samples. The typical sample interval was 1.5 metres. A

total of 87 overburden samples and 15 bedrock samples were collected. These

samples were reduced to 7-9 kilograms with an aluminum scoop and packed in

heavy plastic bags before being shipped in 20-litre metal pails to the ODM

processing laboratory in Ottawa.

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Sample Processing

All samples of till, sand, were gravel are processed according to the flow sheet illustrated in Figure 3. The procedures may be summarized as follows:

The bulk sample is weighed wet and a 250 gram split is obtained with a tube- type sampler for possible, later, geochemical analysis.

The remainder of the bulk samples is sieved at 1,700 microns, with the coarser (+1700 micron) fraction being stored. The -1700 micron split is then processed on a shaking table to prepare a preconcentrate. Processing of samples on the shaking table may also aid in stratigraphic interpretation as the degree of matrix sorting can indicate whether a sample is of glacial or glaciofluvial o'rigin.

The preconcentrate is dried after which a heavy liquid separation in Methylene Iodide (Specific Gravity 3.3) is performed. The light fraction (S.G.*3.3) is stored and the heavy fraction undergoes a magnetic separation with a hand held retractable magnet to remove drill steel and magnetite. The remaining "clean" concentrate is split on a 3/4:1/4 basis with the larger fraction being sent for geochemical analysis. The 1/4 split is retained for possible binocular study and/or future check analysis. All other fractions of the original bulk sample except for the 3/4 heavy mineral split are also retained.

BEDROCK GEOLOGY

Geology of Michaud Township

Michaud Township is underlain by Archean meta-volcanic, meta-sedimentary, and intrusive rocks of the Abitibi greenstone belt. Intermediate to mafic volcanic rocks occur predominantly in the northern and southern portions of the Township. The central part of the township is occupied by an intermediate to felsic

OVERBURDEN DRILLING MANAGEMENT LIMITED SAMPLE PROCESSING FLOW SHEET

i 250g STORE

STORE

Light Fraction STORE

Light Fraction STORE

Bulk Sample 5 - 7 kg

Shaking Table Se Gold Grain Count

Heavy Liquid Separation (Methylene Iodide SG 3-3)

Magnetic Fraction STORE

l A STORE

Magnetic Separation

Split

3A Ship to Analytical Laboratory

Fig.3-Sample Processing Flow Sheet

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intrusive stock. Sedimentary rocks occur in southern Michaud Township intercalated with volcanic rocks. Minor felsic volcanics and mafic intrusives (sills?) occur in the northern half of the township.

The Destor-Porcupine Fault has been traced through the southern portion of the township (Pyke, 1973). Volcanic and sedimentary rocks south of the fault dip and face south while the volcanics of northern Michaud Township dip and face to the north. Satterly (ibid) suggests a faulted anticline as the major structural feature but describes the volcanics on either side of the fault being lithologically distinct indicating significant horizontal movement along the break.

A small, non-economic gold deposit is found near Ludgate Lake in south central Michaud Township. The deposit occurs in sheared, altered syenitic rocks to the north of the Destor-Porcupine Fault. Its presence, and the known spatial relationship of the fault to Au-deposits of the Timmins area enhances the potential for significant discoveries within the township.

Bedrock Geology of the Drill Area

Three lithologic units are represented in the bedrock chip samples. These are mafic volcanics, felsic intrusives, and mafic (?) breccia.

The mafic volcanics are generally dark colored, fine to medium-grained, intensely altered rocks. Only the bedrock of hole 09 appears to have escaped the pervasive alteration. The volcanic rocks were originally massive and have undergone shearing as evidenced by the presence of slip planes. They are often so altered and soft that much of the sample is ground to clay by the drill bit, and it is possible that shearing is more intense than is apparent from logging.

Alteration appears to vary in intensity and type. In some samples, alteration is represented by the presence of chlorite and chiorite-actinolite and these rocks may display a poor schistosity. The presence or identification of feldspar is not possible. In other samples, the entire rock is altered to talc and chlorite, or talc

-16-

alone. These rock chips are massive except for local shear surfaces with slickensides. The talc often displays a poorly fibrous, radiating structure which may be a relict of "original" actinolite crystal form. Possibly, a complete gradation from relatively unaltered mafic volcanics, through chlorite-actinolite, talc-chlorite, and finally to predominantly talcose alteration is represented. Varying degrees of shearing and varying intensity of hydrothermal activity are postulated to account for the differing alteration types.

Carbonate is invariably present in the mafic volcanic rocks. It occurs as stringers, veins, along shear planes, and within the rock itself (interstitial). It is worthy of note that the portions of bedrock samples ground to clay by the bit are usually much more calcareous than the more competent bedrock chips.

The mafic volcanic rocks contain 0-596 magnetite. Much of the magnetite may be an end product, along with talc, of the alteration as the more talcose rocks contain the most magnetite. Pyrite is present in amounts ranging up to 296 -usually as finely disseminated crystals.

Felsic intrusive rocks are present in holes 02, 10, 11, and 12. These rocks are tentatively identified as syenite although they may possibly be granitic.

The felsic intersection of hole 12 is unaltered, pink in colour, fine to medium grained, porphyritic (both feldspar and quartz) and leucocratic. The groundmass of this sample appears feldspathic to quartzo-feldspathic - the uncertainty as to the percentage of quartz resulting in the lack of a definitive name. Only trace amounts of carbonate and pyrite are present.

Syenitic rocks found in holes 10 and 11 have undergone secondary shearing, fracturing, and alteration. Hypidiomorphic and porphyritic textures may be observed although they are not as distinct as in the bedrock of hole 12. These rocks lack the distinctive pink, syenitic coloration, commonly display shear planes and contain 10-2096 fibrous serpentine plus chlorite. The abundance of serpentine

-17-

in the bedrock of hole 11 imports a blue hue to this sample. Five to eight percent carbonate is present along slip planes and also within the rock itself. To 196 pyrite occurs along shears and fractures and as disseminations within the samples.

Introduction of silica to the syenitic bedrock of hole 02 has resulted in the formation of vein quartz as well as adding to the silica content of the rock itself. It also tends to obscure any original textures. The syenite contains minor amounts of slowly reactive carbonate, and 1-296 specular hematite as disseminations and fracture coatings. Three to five percent pyrite is present as disseminations and concentrations along fractures - no pyrite or hematite is present within the vein quartz.

The mafic (?) breccia intersected in hole 01 consists of mafic, ultra-mafic, and intrusive fragments up to approximately five centimetres in size. The variety of rock types is similar to the clast composition of tills in the area, and no matrix is present except for those portions of the fragments ground to rock flour by the drill bit. However, the drilling characteristics of this material lead to the conclusion that it is, in fact, bedrock. A similar breccia unit in Lot 7, Concession II has been described by Satterly (19^9).

Structure and Magnetics

The premise that the Destor-Porcupine Fault corresponds to a linear magnetic low may in part be erroneous. Bedrock intersections of holes drilled on magnetic lows or on, or marginal to magnetic highs reveal, in each case, sheared and altered rocks. The breccia of Hole 01 may indicate the exact position of the fault but the breccia has no definitive magnetic signature. What is apparent from bedrock chip logging is that a zone at least 300 metres in width has suffered structural and alteration effects related to faulting. Intersections of syenitic bedrock in holes drilled on the linear magnetic low may indicate the syenite is, at least in part, in fault contact with volcanic rocks.

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QUATERNARY STRATIGRAPHY

Regional Glacial History

Overburden Drilling Management has conducted numerous reverse circulation overburden drilling programs over the Abitibi greenstone belt, and by combining the three-dimensional drill data with surface information from the Glacial Map of Canada (Prest, 1968), has reconstructed the glacial history of the region in some detail. The classical Illinoisan and Kansan periods of the northern United States are not recognized, and all of the recorded events are assigned to the Wisconsinan period. A single glaciation is represented south of the Hudson Bay/St. Lawrence drainage divide (Fig. 1), and repeated glaciations are evident north of the divide. Several of the glaciations were substantial, but it is difficult to correlate events with certainty over the great expanse of the Abitibi belt. During each recession, a layer of till was deposited. In most recessions, a body of water equivalent to Lake Ojibway of the final recession immediately flooded the new till surface in the area between the drainage divide and the retreating glacier to the north. A thick wedge of lacustrine sediments was then deposited over the till. During the next ice advance, most of the unconsolidated sediments and till were eroded and recycled to form new till and sediment horizons.

Quaternary Stratigraphy of the Drill Area

The area is underlain by glacial, glaciolacustrine and eolian sediments. (Fig. 5-8) Most of these deposits are related to the final ice-sheet that advanced southeast across the drill area along a I64 0 azimuth (Baker, et al, 1980). Reverse circulation drilling reveals the following units to be present.

1. Lower Till2. Lower Sediments3. Upper Till

4. Upper Sediments

-19-

Ia iM

l*!'*

*l8

S*

al-

Fig.5-Quaternary Stratigraphy of

Profile A-A*

-20-

Fig.6-Quaternary Stratigraphy of P

rofile A*-A"

P cr 0

p3wd-

rt H-

oH

OH H- H (D

W


l 4 l Upper Sediments

QU Upper Till

l i l Lower Sediments

Lower Till

SYMBOLS

•••" Quaternary/bedrock unconformity

~*~* Interglacial unconformity

1 Quaternary unit boundary

to Sample interval;^ H -M-An

SCALE

HOB. 1:5000 VERT. 1:250

•00.

10

12 13H-

O*}

00 l

PC+(D

W d-

H- H-

OH

Ms H-H (D

O l O

R-83O7C 1

lro to i

LEGEND


Sediments

3 [Upper Till

l t l lower Sediments

[~i~l Lower Till

SYMBOLS

••B Quaternary/bedrock unconformity

•~~^ Interglacial unconformity

1 Quaternary unit boundary

t* Sample interval j^Ai W M flu.

SCALE HDR. 1:5000 VERT. 1:250

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1. Lower Till; The Lower Till is present only in two holes (R-83-03, and R-83-15) below the 37 metre level. It would appear to occur in bedrock depressions protected from subsequent glacial erosion. The matrix is composed of fine to medium grained sand, and dasts tend to be of cobble size. The Lower Till is initially very rich in pink syenite dasts, but, in both holes, the proportion of syenite decreases as bedrock is approached reflecting the presence of underlying mafic volcanics. Evidently the ice that deposited the Lower Till was thick, resulting in severe scouring of the bedrock surface.

2. Lower Sediments; This unit separates the Lower and Upper Tills. It is composed variably of fine to medium grained grey sand, pebbly sand, and gritty grey day. 'The Lower Sediments represent lacustrine deposition in an ancestral lake equivalent to Lake Ojibway.

3. Upper Till; Upper Till is present in all holes drilled but in greatly varying amounts (0.4 to 22 metres). The thickest intersections occur in the western portion of the drill area. The ice sheet which deposited this unit was also responsible for the erosion of older till and sedimentary units. In most holes this is the only till sheet present. The matrix of the Upper Till consists of grey fine sand and silt - slightly finer grained than the matrix of the Lower Till. Clasts tend to be of cobble size and are predominantly of mafic volcanic character. The presence of the syenite intrusive up-ice is not reflected to a great extent in this till. Apparently the ice that deposited the Upper Till was too thin to erode the massive, fine-grained syenite but was of sufficient thickness to scour the soft, altered volcanics. A degree of sorting is present in the till of hole 04 (presence of sandy, gravelly bands) which may be indicative of deposition in water. The poorly compacted nature of much of this material also hints at deposition in water.

-24-

Upper Sediments; Upper Sediments were deposited mainly in Lake Ojibway waters which inundated the area with the final retreat of the Wisconsinan glacier. This unit consists predominatly of soft grey clay as well as fine sand and silt. Fine sands present in the upper portion of many holes represent outwash material from the Munro esker system. Following the shrinkage of the glacial lake, west-northwesterly winds modified the sand and produced parabolic dunes immediately north of the drill area.

GEOCHEMISTRY

Base Metal Geochemistry of Heavy Mineral Concentrates

Base metals tend to substitute to a limited extent for other metal ions in the structures of heavy silicate and sulphide minerals such as pyroxene and pyrite. Consequently, the base metal background of a heavy mineral concentrate, and particularly of a high-density methylene iodide concentrate, is higher than that of a whole sample, ranging up to several hundred ppm.

Established anomaly threshold levels for Cu, Zn, and Pb indicating the presence of ore-type minerals such a chalcopyrite, sphalerite, and galena in potentially significant concentrations are 500-800 ppm. Most dispersion trains that emanate from proven ore bodies contain many values greater than 10,000 ppm. A significant anomaly will normally extend through two or more consecutive 1.5 metre till samples provided that the host horizon is of sufficient thickness. An anomaly at the top of a till horizon indicates considerable transport from the bedrock source and may be more significant than an anomaly of similar strength at the bottom of the same horizon. Anomalies should also be weighted for concentrate size; for example, an anomaly from an oversized concentrate will normally be more significant than a similar anomaly from an undersized concentrate.

-25-

Analyses for copper, lead, zinc and arsenic reveal low background levels for each of these elements. Zinc and arsenic values maintain the background levels in the majority of the samples. Exceptions, such as the results of 114 ppm and 104 ppm As in samples 06-01 and 15-07, respectively, are random occurrences restricted to single samples.

The background levels for copper and lead are overprinted, in some cases, by analytical results in the 200 to 1000 ppm range. While not considered indicative of significant source mineralization, their occurence in adjacent samples in holes 01, 07, 08, 14 and 15 is worthy of note. A cursory examination of the retained 1/4 splits of the heavy mineral concentrates revealed that these samples contain increased levels of pyrite. The "anomalous" pyrite contents of the concentrates is largely responsible for the variations in copper and lead geochemistry. The pyrite observed is generally coarse and crystalline suggesting a local source and some grains occur aggregated with carbonate or mafic volcanic rock chips.

Lead values of 318 and 1280 ppm were reported for samples 13 and 15, respectively, of the Lower Till in R-83-03. As three samples adjoining these contained insufficient material for base metal analyses following the gold assay and arsenic analyses, the retained 1/4 splits of samples 14 and 15 were examined and panned to determine if galena was present. The visual examination of the *3.3 S.G. split and the refined pan concentrate failed to isolate galena. Portions of the 1/4 splits of five samples (R-83-03-11 to 15; renumbered as NA-01-01 to 05) were reanalyzed for Cu, Pb, and Zn to check the lead concentrations and obtain results for samples where the entire concentrate was consumed prior to base metal analyses. As seen from Appendix G, the check analyses failed to confirm the increased lead levels.

Base Metal Geochemistry of Bedrock Chip Samples

Bedrock chip samples display only low levels of copper, lead, zinc and arsenic. The only anomalous result - 460 ppm Pb-occurs in the bedrock of hole 02.

-26-

This is a sample of syenite containing quartz veining. Very low galena concentrations within the vein quartz (not observed when logging bedrock samples) may explain the anomaly. The low grade, however, is not encouraging.

Gold Anomaly Strength and Gold Particle Size

During sample processing a gold particle count was undertaken. ODM has developed special shaking table technology that allows approximately 70 percent of gold grains coarser than 100 microns to separate from the other minerals and follow individual paths across the table deck. These grains are picked from the table, placed under a binocular microscope, measured to determine their influence on the gold geochemistry (analysis) of the concentrate, and classified as to degree of transport (Fig. 9).

Magnetite, with a Specific Gravity of 5.2, is the heaviest of the common minerals, and normally forms the top "line" on the table above garnet and epidote/pyroxene. Coarse abraded gold grains, which generally occur as simple leaves, travel 5 to 10 cm above the magnetite. Delicate or irregular grains of the same size tend to roll down the deck and hide among the magnetite and garnet grains. Very fine grains (less than 100-150 microns) also travel with the magnetite and garnet.

Information on gold particle size and shape is of importance for the following reasons:

1. Anomalies of the same magnitude can be created by a single coarse gold particle or by many fine gold particles, but only multi-particle anomalies are significant. ODM has established that a single gold particle of increasing size in a typical 15-gram analytical split of a 20 to 25 gram concentrate from an 8 to 9 kg. till sample will produce the following range of anomalies:

-27-

DELICATE

Bedrock gold crystallizes as pitted granular masses with smooth protruding crystals

IRREGULAR

After short ice transport, crystals are removed leaving smaller pitted grain with several pro trusions

' ABRADED

)With increasing trans port, protrusions break off irregular grain, producing several smaller leaf- shaped grains. Pitted surfaces become smooth.

IRREGULAR

Some flat irregular grains may become curled

ABRADED

Curled irregular grains become spind led abraded grains

OROUNDED

After long transport, especially in streams, continued abrasion produces small, polished, spherical or ellipsoidal grains O 1000

Microns

Fig.9- Effects of Glacial Transport on Gold Particle Size and Shape (Developed by OVERBURDEN DRILLING MANAGEMENT LTD.)

Bit ;j ftp

-28-

Size Classification Diameter(microns) ppb Au

Very fine L 100 100Fine 100 - 200 300Medium 200 - 500 500 - 5000Coarse 500 - 1000 5000 - 15000Nugget G 1000 G 15000

2. Delicate particles or abraded particles of irregular shape indicate proximity to source while rounded particles or abraded particles of simple shape indicate a distant source.

3. A coarse average particle size normally indicates proximity to source.

4. An absence of gold particles coupled with a high gold analysis normally indicates an auriferous sulphide source.

Properties of a Significant Gold Dispersion Train

We have shown that a single coarse gold particle in a small heavy mineral concentrate can create an anomaly of 15,000 ppb. Consequently, gold derived from the many minor occurrences in the Abitibi belt generates numerous one-sample till anomalies. As many as 10 percent of the till samples in some areas may contain anomalies of this type.

Reverse circulation drilling is effective in gold exploration only if dispersion trains related to mineralization of potential economic significance can reliably be differentiated from the erratic, one-sample anomalies. A significant anomaly generally has the following properties:

1. It is a stratabound at either the base, middle, or top of a single till unit.2. It is at least 2 metres thick and therefore is evident in two or more

consecutive 1.5 metre samples.

-29-

3. It has a minimum width of 100 metres (as measured perpendicular to the direction of ice advance).

4. The minimum concentration of gold per 8 kg sample is two coarse particles (greater than 300 microns) or 4-5 fine particles (less than 300 microns).

On most exploration programs, a hole spacing of 300 metres or more is used and dispersion trains are intersected in only one hole. Anomaly width is therefore not apparent until follow-up drilling is done, and the three other parameters must be used to determine whether follow-up is warranted. The thickness of the anomaly and its vertical position within the host till unit will be apparent only if the till is more than l sample 1.5 metres thick. For thin till units, only Parameter 4 (number of gold particles) will be available for evaluating anomalies.

In some gold deposits, all of the gold is contained in pyrite and gold particle counts cannot be used to evaluate the dispersion trains. Other deposits are mineralogically complex and specific heavy minerals such as pyrite, arsenopyrite, galena, sphalerite, molybdenite or siderite may accompany the free gold particles in the dispersion trains. Many deposits occur in formations having a high gold background that is detectable as a broad zone of sub-anomalous till adjacent to the main dispersion train.

Gold Geochemistry of Heavy Mineral Concentrates

Geochemical Au-results for the Nahanni heavy mineral concentrates reveal a background of several hundred parts per billion as opposed to the less than 100 ppb- Au considered "normal" for till concentrates from over the expanse of the Abitibi greenstone belt. The high background is a feature noted in other reverse circulation drilling programs to the south and west of Michaud Township.

Gray (1983) suggests gold anomalies in heavy mineral concentrates have a threshold value of 3,000 ppb and further states that one of fifty samples may be anomalous due to the random distribution of erratic gold grams. Gold grains are

-30-

common (72 grains in 87 samples) in the Nahanni drill area, but most are small and

abraded or irregular suggesting significant transport. The small size of the

particles also leads to relatively low assay results even when samples contain

multiple Au-grains. The impressive number of Au-grains in some samples (Holes

04, 05, 15) may not be indicative of greatly increased amounts of gold but rather

may be ascribed to the fact that these samples, as they contain more than one Au-

grain, or are adjacent to samples with more than one Au-grain, are routinely

panned after tabling in the laboratory. Panning generally reveals the presence of

small Au-particles which do not separate from other heavy minerals on the shaking

table. Many concentrates for which no visible gold is observed but which assay 200

to 1,000 ppb Au probably contain fine gold of less than 150 microns in size.

No dispersion trains from significant source mineralization are believed to

have been intersected in the program. The very high geochemical result for sample

R-83-05-09 (43,930 ppb Au) occurs in a thick Upper Till section but receives no

geochemical support from overlying or underlying samples. As the anomaly occurs

in one sample far removed from bedrock it is considered to be erratic and of little

exploration interest.

The only other geochemical result of > 10,000 ppb occurs in the basal Upper

Till sample of hole R-83-14. This anomaly is due to the single Au-grain (600 x 400

microns) observed when processing the sample. The single gold particle and

restriction of the anomaly to 0.8 metre sample reduces its significance.

Sample 03-13 contains 4860 ppb Au. Underlying samples give assay results in

the range of 900-1700 ppb. These results occur in the Lower Till. Although sample

03-13 is not highly anomalous and underlying samples represent high background

"noise", this "sub-anomalous" till may be due to glacial abrasion of low-grade

mineralized bedrock. The large proportion of intrusive clasts in the till would

indicate a syenitic source. The thick, sub-anomalous till section could be due to a

nearby, relatively wide, very low grade source, possibly in the area of hole 02 (up-

ice from R-83-03) where the fractured syentic rock contains vein quartz, hematite

as disemmenation and fracture fillings, and slightly increased levels of pyrite.

-31-

Sample Number ppb Au Visible GoldR-83- 01-01 100

02 WO A 150 x 10003 670 D 200 x 150 O* 190

02-01 l HO Ir 400x250A 150 x 150 A 100 x 100

02 100 Ir 100x5003 70 O* 7005 WO06 100

03-01 22002 42003 5004 13005 58006 19007 300 A 250x20008 590 A 250x20009 930 A 400x30010 14011 17012 59013 4860 A 200x250

A 400 x 45014 107015 170016 980 A 200x20017 101018 830

04-01 1110 . A 200x150A 450 x 300

02 9003 37004 9005 180 A 100x100

A 200 x 10006 16007 470 A 100 x 150

A 100 x 150 Ir 150 x 100

TABLE 2 - HEAVY MINERAL GOLD GEOCHEMISTRY

-32-

Sample Number ppb Au Visible GoldR-83- 04-08 2080 A 250 x 150

A 100 x 150 A 100 x 50 A 100 x 100 Ir 75 x 75

09 220 A 150x150A 200 x 150 Ir 250 x 200

10 104011 610 A 200x150

A 200 x 150 A 200 x 100 A 150 x 100 A 100 x 50

12 180 A 200 x 15013 7014 90

05-01 10002 580 A 125 x 12503 330 A 150x7504 19005 14006 6007 72008 67009 43,930 Ir 900x750

A 250 x 200 A 100 x 50 A 100 x 100

10 300 Ir 100x50Ir 250 x 150 Ir 100 x 100 A 50 x 50

11 20012 340 A 150x5013 630 A 250 x 15014 30

06-01 500 Ir 250 x 10002 25003 700 Ir 250 x 150

07-01 290 Ir 250x35002 540 Ir 200 x 1 50

Ir 200 x 100 Ir 150 x 1 00 A 50 x 50

03 890 Ir 200 x 1 5004 60

TABLE 2 - HEAVY MINERAL GOLD GEOCHEMISTRY (cont'd)

-33-

Sample NumberR-83- 08-01

0209-0110-01

0203

11-01 02

12-0113-01

0214-01

0203040506

15-01

02030405

ppb Au170360

1650340280

90930440710

80400210170110130430

10,4801260

501600530

1320

Visible Gold

Ir 250 x 150

A 300 x 150

A 100 x 150

Ir 100 x 150 A 350 x 150

IrAAIrIrIrAD

Ir

IrIrIrDIr

60050 x50 x100100100150100

350

100100150300150

x 4005050x 50x 50x 50x 100x 50

x 150

x 100x 100x 50x 150x 50

0607

250970

TABLE 2 - HEAVY MINERAL GOLD GEOCHEMISTRY (cont'd)

-34-

Gold Geochemistry of Bedrock Chip Samples

Gold analysis of bedrock chip samples did not succeeed in indicating distinctly anomalous amounts of the metal. Values ranged from^lO ppb to 60 ppb. The low grade limits their importance with regards to follow-up work,

Bedrock Sample Number ppb Gold

R-83- 01-05 1002-07 2003-19 1004-15 2005-15 6006-04 1007-05 1008-03 1009-02 ^010-04 MO11-03 1012-02 ^013-03 1014-07 1015-08 10

TABLE 3 - Bedrock Gold Geochemistry

-35-

Condusions

1) Bedrock intersections indicate most bedrock of the area has undergone alteration and shearing resulting from proximity to the Destor-Porcupine Fault system. The zone affected appears to be at least 300 metres wide. Exact position of the fault is uncertain - rocks related to magnetic highs, as well as those related to magnetic lows, have undergone physical and chemical changes. The structural trend as evident from the magnetic survey, together with the positions of holes in which syenite is present may indicate the felsic intrusive - mafic volcanic contact is in part fault controlled.

2) Two tills units are present overlain predominantly by glaciolacustrine sediments. The Lower Till is present only in two holes and is syenite-rich, reflecting glacial abrasion by a thick ice sheet. The Upper Till forms a continuous blanket over the area but thins markedly to the east. The presence of the syenite up-ice is not apparent in this till. Glaciation by a thin ice sheet explains the lack of erosion of the massive, fine grained syenite.

3) Gold and base metal analyses for bedrock chip samples gave low results inconsistent with economically extractable amounts of Au, Cu, Pb, or Zn.

4) Base metal analyses of heavy mineral concentrates did not yield highly anomalous results consistent with mineralized bedrock. Increased base metal levels invariably resulted from a corresponding increase in pyrite percentage. Above normal concentrations of lead reported initially for heavy mineral concentrates of the Lower Till of R-83-03 were found to be incorrect after visual examination and re-analysis.

5) Heavy mineral till geochemistry failed to delineate any readily identifiable Au-dispersion trains. The few anomalies present are considered erratic and do not warrant follow up work. The "sub-anomalous" Lower Till of hole 03 may indicate weakly mineralized syenite up-ice, but the poor distribution of Lower Till would preclude follow-up by reverse circulation drilling.

-36-

Recommendations

Overburden drilling and gold and base metal analyses of till and bedrock failed to define any geochemical targets worthy of follow-up reverse circulation or diamond drilling.

The lack of till and bedrock anomalies, while discouraging, is not conclusive evidence that further work is not warranted, especially when the poor representation of syenite in the Upper Till is considered. The structural and chemical processes which have affected the rocks of the area are favourable indicators for possible gold deposition. As the Destor-Porcupine Fault is related spatially and genetically to Au-deposits of the Timmins camp, and auriferous syenite occurs at Ludgate Lake, immediately north of the Nahanni property, it is apparent that further work should be concentrated on locating the fault itself and on establishing its relationship to the previously unknown body of syenite within the drill area. The Lower Till of Hole 03 may be indicative of weakly mineralized syenite near the contact of the intrusive and volcanics in the vicinity of Hole 02 - directly up-ice from R-83-03. A limited program of diamond drilling to define the contact and test the syenite marginal to the contact for gold mineralization is recommended.

-37-

REFERENCES

Averill, S.A., 1978, Overburden Exploration and the Glacial History of Northern Canada, Canadian Mining Journal, Vol. 99, No. 4.

Baker, C.L., Seaman, A.A., Steele, K.G., 1980: Quaternary Geology of RamoreArea, District of Cochrane - Timiskaming; Ontario Geological Survey Preliminary Map P-2301, Geological Series - Scale h50,000.

Gray, R.S., 1983, Overburden Drilling as a Tool for Gold Exploration, 85th Annual General Meeting of CIM-1983, Paper No. 19.

Pyke, D.R., Ayres, L.D., Innes, D.G., 1973, Timmins-Kirkland Lake, Cochrane,Sudbury and Timiskaming Districts; Ontario Division of Mines, Map 2205, Geological Compilation Series, scale: l" s 4 miles, Geological Compilation 1970-71.

Satterly, 3., 1949, Geology of Michaud Township, Ontario Department of Mines, Vol. 57, Part 4, 25 p.

-38-

CERTIFICATION

I, K.A. MACNEIL, AS AUTHOR OF THIS REPORT, DO HEREBY CERTIFY THAT:

1. I hold the degree of Bachelor of Science (1978) in Geology from St. Francis Xavier University.

2. I have direct knowledge of the information herein contained.

3. I am a consulting geologist with Overburden Drilling Management Limited, 3 Cleopatra Drive, Nepean, Ontario.

4. I have no interest in the property herein described.

..A. MacNeil, B.Sc.

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nATP AUB.26 108-?

SHIFT HOURSTO

TOTAL HOURS

CONTRACT HOURS

HOI P MO R83-05 LOCATION Line 31W - fc 725SnBftlrtn,.T D. Garden no,,, .b G. Howe a i, ^ B65t92 0 1T — T.nc 0.9-33urtuc m u.,c 1:30 to 3:30, 3: 3d to i:do, pull rodsfinn i , , , - ----

MFCHANIf-.A! DOWN TIME ,. . . . . ,.,

npn i t un PROBIPMS .....OTHFB 5:00 to 5:30. clean mud tanks. 5:30 - 7:00 to campurrt/F TO NEXT HOLE U '.OO tO 5:00

,9

DEPTH IN

METRES

1 -

2-

3-

5-

6-

7-

9-

10-

!11—12—

13-

14 —

15-

16—

17—

18-

19-

20-

GRAPHIC LOG

|

m ^ *

fl- -"*

~~ -^ .!'.A.A--"i --'A

i -

c,4 . .d. .

"fi".'."

. , d

A-"'/.'A.

INTERVAL

^?

x̂7sf'^

^\y7^

N̂N

\Z\\i^

SAMPLE NO.

—

: ol"—

1.

L 6 "1

ro3-:OM—

rov

:-Od

;Lol

DESCRIPTIVE LOO

9 - 1.0 Organic material1.0 -9.3 CLAY, grey, non gritty

9.3 - 31.0 TILLvery sandy at top, mediumcoarseness, (0*** c*i"*O

Clasts- 6CKmafictOfofelsic

more syentic with dept13.5 less sand

clasts, large - pebbly felsic clasts with hoxbrown syenite clasts

cobbles

i

h

nblei de

'

- 2 -OVERBURDEN DRILLING MANAGEMENT LIMITED

REVERSE CIRCULATION DRILL HOLE LOG

HATP 1Q

SHIFT HOURSTO

TOTAL HOURS

CONTRACT HOURS

nni F NO n^.f)5 . i ORATION

ur,uc rn uni f

nan iuFr.H4Nir.Ai nnwN TIME ,M ..-..-1npn r IWR ppnRiFMS __ , ,.,,,,..,riTHFR

UDV/F TO NFXT HOLE

BIT tnmir.t

DEPTH IN

METRES

1-

2-

3-

-4 -

:~5-

;6-

7--

8-

9-

-10-

-

11 —:

î

13-

"i15-

;16—

-17—

;18-

19 ~i~

GRAPHIC LOG

fi"'

f,^

1'A-'' 'Ao' .

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.4'A'','

v*4/iii t .-/A',

, \^ ,—7777

If-^-j:

H

INTERVAL j

xxxx-^s\ \x

^,\̂\^^'Ss

•̂xN xx x

2̂/x

1J-

SAMPLE NO.

01CJ***

^08

;c*

: io

F 1 *

: a

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r^jaow.

rî;—~

—

;~-

~-

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f^

DESCRIPTIVE LOG

TILL (cent.)

23.2 - Cobbles

26.5 - sandy, rounded pebbles(one pebble 1 cm. long)

29.0 - thin layer of clay interbe*in till

30.0 - 31.0 Clay matri* in tillwith black mafic c la st sdominating

31.0 - 31.5 BEDROCKt grey carbonaceous gritty (

alteration product contaii small chips of black mafitand pyri*e.

31.5-32.0 Rock chips only, raafi(32.0-32.8 Alteration clay as ab(

32.8-3^.1 Rock chips onlyvery black, maficlikely meta volcanic

33.1 END OF HOLE

Ided

lay ing rocl

ve


DATE A,07 19 ^

SHIFT HOURS_____TO —————

TOTAL HOURS

CONTRACT HOURS

HOLE NO GEOLOQ|ST

LOCATION - 3+&ISDR(LLER ( . BIT N0. BIT FOOTAGE -?

MOVE TO HOLE'-i6-06

MECHANICAL DOWN TIME /fi'. Co -tO'/J ^

DRILLING PROBLEMS _____________.-—-

OTHER T^Oa- fi -/S Ti^Litf -io dAil l

MOVE TO NEXT HOLE .

DEPT IN METR SAMP NO.

DESCRIPTIVE LOG

3-

9-

10-

11-

12-

13.

14-

15-

18-

20-

O ~

,^ **

7*5'***-!'-**! Cai y \J

- Z J


I-IATF fj** 3. ? 1 Q 83

SHIFT HOURSTO

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nni F NO l#3 -of. K-RATION L lnu) - 1 +

unuc Tn nn( F w —

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50S"

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DEP I MET

APHI OG DESCRIPTIVE LOG

2.1

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-30

30 - 31

Tttv J*i-*c'

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DATE.o-,

SHIFT H OURS______TO —---.

TOTAL HOURS

CONTRACT HOURS

HOLE NO

GEOLOGIST ——

MOVE TO HOLE .

DRILL ———^—

LOCATION Z 20DRILLER . BIT NO . BIT FOOTAGE.


DRILLING PROBLEMS ^^,

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HI Ga-i- So

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DESCRIPTIVE LOG

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HOLE NO GEOLOGIST - ,

MOVE TO HOLE

DRILL ——————

LOCATIONDRILLER , , BIT NO.. BIT FOOTAGE .


DRILLING PROBLEMS ^-—

OTHER ^——^——..——

MOVE TO NEXT HOLE .

DE I METRES

P IN DESCRIPTIVE LOG

12

14-

15-

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33-

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DATE A^i- 190 "?.L!^V

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LOCATION U)GEOLOGIST . DRILLER Jii , B IT NO. BIT FOOTAGEMOVE TO HOLE S2:f)0 " /i - JDRILL J2 : 3O - 2 -'Cd—-—-—



OTHER ——————.~————

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I u,

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Q-0 DESCRIPTIVE LOG

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11 —

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HATF -6? iaty3

SHIFT HOURS————— TO

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NOGEOLOGIST

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DRILL ———

LOCATIONDRILLER , , BIT NO. . BIT FOOTAGE .

MECHANICAL DOWN TIME

DRILLING PROBLEMS ——— OTHER ——-—^——-———-

MOVE TO NEXT HOLE ,

f?O

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HOLE NO A43-/0 LOCATION ^ 4 HJ ;. / tfOtf

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DRILLING PROBLEMS ——

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DESCRIPTIVE LOG

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DATE 4*^1932 G^OLOG™. DRILLER .MOVE TO HOLE .

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.BIT NO.. BIT FOOTAOE .

DEPT IN METR

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