2 3

MMI Geochemical Survey Report on the

South Baseline Property Mamainse Point Area, Ontario

by

Delio Tortosa, M.Sc. September 2005

RECEIVED OCT - 4 2005

GEOSCIENCE ASSESSMENT OFFICE

Table of Contents Pg.

1. Introduction 1

2. Location, Access and History 1

3. Previous Exploration 2

4. Regional Geology 3

5. Local Geology 4

6. Deposit Type and Structural Model 5

7. MMI Geochemistry 6 7.1 Soil Sampling Method 6 7.2 Sample Preparation, Analysis and Security 7 7.3 MMI Orientation Survey 8 7.4 MMI Geochemical Results 8

8. Interpretation & Conclusions 9

9. Recommendations for Exploration 9

10. References 10

List of Figures Pg.

Figure 1: General Location Map of the South Baseline Property 1

Figure 2: Mining Claim Location Map 2

Figure 3: Generalized Geology of the Mamainse Point Area 4

Figure 4: Local Geology of the South Baseline Property 5

Figure 5: Idealized Section across the Baseline Prospect 6

Figure 6: Graphical presentation of results from Orientation Survey 16

List of Tables Pg.

Table 1: Summary of Cu, Ag, Au assays of chip sampling, 3 Baseline Prospect

Table 2: Quality Control for MMI Analyses 7

Table 3: Daily Field Log for D. Tortosa, South Baseline Project 10

Table 4: South Baseline Project Soil Sample Descriptions 11

Table 5: South Baseline Project MMI Analyses and Response Ratios 13

Table 6: MMI Geochemical Results from Orientation Survey 15

Map 3: Interpretation 17

Appendix:

Certificate of Analysis and Results (SGS Canada Inc.)

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South Baseline Project, MMI Geochemical Survey Mamainse Point, Sault Ste. Marie, Ontario

1. Introduction

This project was initiated to explore the potential strike extension of the Baseline Prospect to the southeast (Tortosa, 2003). Much of the southern block (SSM 1192276) has overburden cover and has not been well prospected or sampled. Based on geological mapping by Giblin (1969a, 1972), the same geological units extend to the south-southeast into the project area. The MMI geochemical exploration program was designed to identifY the possible continuation of the mineralization identified to the north.

2. Location, Access and History

The South Baseline Property is located in Kincaid Township in the Sault Ste. Marie Mining Division (Figure 1). The property consists of one un-patented claim block (SSM 1192276) composed of 4 claim units totaling approximately 64 hectares in area. The property is accessible via Highway 17N, about 100 kilometres north from Sault Ste. Marie, Ontario, and then by a short (112 km) gravel access road from Highway 1 7. The gravel access road is connected to a bushlskidder road that traverses the northeastern and central part of the claim block (Figure 2).

Figure 1: General Location Map of South Baseline Property

Ontario, Canada

Lake Superior

Michigan, USA

Immediately to the north of the South Baseline Property is the Baseline Prospect which was discovered in 1962 by C.C. Huston and Associates who undertook a comprehensive exploration program which included the northern half of claim block SSMl192277. D. Tortosa completed detailed mapping and chip sampling on the mineralized zones that had been uncovered during prior exploration (DEC Grant #2003-10). The South Baseline Property lies on the south-southeast extension of the mineralized vein/fault system and has not had any significant exploration activity.

Figure 2: Mining Claim Location Map

N

A

La!< e Su perior

3. Previous Exploration

The claim block (SSM 1192277) immediately to the north of the South Baseline Property was prospected, geologically mapped and sampled in 2003 by D. Tortosa under DEC grant #2003-10. A picket baseline and picketed cross lines were cut and detailed geological mapping, chip sampling and assaying completed.

Some of the better results of the chip sampling are summarized in Table 1. High copper, silver and gold values were found to occur in quartz veins, felsite dikes, and altered amygdaloidal basalt. The mineralized zones occur within a 15-20 metre-wide zone of structural dislocation that extends over a known length of250-300 metres and can be trace down-dip at least 75 metres based on prior diamond drilling (CopperCorp, 1962). The Cu-

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Ag-Au-bearing mineralized zones strike S20E and dip to the east at between 45° and 70° consisting primarily of chalcopyrite and pyrite with lesser amounts of chalcocite.

Of particular interest was the discovery of a mineralized felsite with higher than average gold values. Random chip sampling along the mineralized felsite in 2004 confirmed these values (Table 1).

The mineralized zone is truncated at the southeast end by an east-northeast trending fault. Since many small-scale faults in the area have a dextral offset, it is likely that the southern portion of the mineralized zone has been offset to the west. Prospecting in 2004 by D. Tortosa in the area immediately to the south east of the mineralized zone and the offset fault, did not uncover any mineralized outcrop, although the exposure was generally fair to good.

T bl 1 S a e fC A f h' r bOT ummaryo u, ~g, Au assays 0 C IP sampl mg ,y . ortosa SamQie 10 Width (m) Cu (%) Ag (ppm} Au (ppb) Notes

6-30-BL 1 1 8.64 14.1 68 Boundary Vein 6-30-BL9 1 12.36 49 63 Boundary Vein 6-30-BL5 1 0.94 1.8 4500 Mineralized Felsite 6-30-BL6 1 0.69 1.8 3100 Mineralized Felsite 27-06-BL2 Composite 0.41 0.9 2320 Mineralized FelSite 7-20-BL12 1 2.92 42.2 269 South Boundary Vein 7-20-BL 16 1 0.61 17.5 53 South Boundary Vein 7-20-BL 19 1 2.49 56 131 K-8 Vein 7-27-BL20 1 2.31 23.3 77 K-8 Vein 7-06-BL 11 1 2.67 35.1 96 Shear Zone 7-06-BL 10 1 3.78 14.5 64 Shear Zone

4. Regional Geology

The South Baseline Property occurs in mid-Proterozoic, Keweenawan-age (1100-1200 Ma) lavas of the Mamainsoint Formation (Figure 3). The Mamainse Point Fonnation forms part of the eastern limit of the Mid-Continental Rift (MCR) system that underlies Lake Superior. The Mamainse Point Formation consists of a 6-km thick sequence of continental flood basalts intercalated with red-beds consisting of coarse conglomerates (fanglomerates) with minor sandstone interbeds. The volcanic lavas and sedimentary beds have been intruded by felsite, flow-banded rhyolite, and quartz-(+I-feldspar) porphyry, which occur predominantly as sub-volcanic sills,

The South Baseline Property lies close to the Keweenawan! Archean unconformity where thin strips of fault bounded Keweenawan lava occur within the metavolcanic rocks of the Batchewana Greenstone Belt. These fault blocks oflava (graben) are associated with large areas of fault or vein breccia. Copper occurrences considered to be Keweenawan in age occur within the granites and appear to be spatially associated with the north-northwest trending structures.

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Figure 3: General Geology, Mamainse Point Area

LEGEND

IlASEUNE PROPERTY

C SSlIIlIgr,m

MINERAlOEPOBIT9

!l PRODUCER !l PAST PROOoR

r:I PAST PROO

• 0fV PJl08

..to. ~W PROS X OCCURRENCE

STRUCTURE

N o •• log/< F.~~ NTGPOIIIOPI'II. un_ GEOLOGY I>ROTEROIOIC O .... ··_IIeSarl\llll"". 1::1 MI •• 90y FGt"' adon

~ "'.nIo. e .. ,,!o r ol.l, In/tv ..... GIQtInI Motl<UDlClnk:1

c:J 8e""'.nlf

1 a t 2 3 Kilometers

5, Local Geology

The western portion of the South Baseline Property is situated stratigraphically below the 'Basalt Clast Conglomerate' within a series of highly altered heterogenous basaltic flows. These basalt flows are characterized by the development of epidote-albite-chlorite~quartz~ calcite mineral assemblages which have pervasively replaced the amygdaloidal flow tops and bases of the thicker flows and completely replace the mineralogy of the thinner flows (Figure 4).

At the eastern end of the property, is a glomeroporphyritic lava flow characterized by the presence of large spheruiitic clusters of plagioclase laths. The rock is locally known as <Daisy Stone' and has been used as an ornamental stone in the area. The lava flow is truncated where the granite inlier is exposed, but bas been mapped further to the north where it crosses Highway 17. The lack of continuity of this flow between these two areas may be due to offsets related to northwest trending structures.

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Figure 4: Local Geology, South Baseline Property, Mica Bay Area

LEGEND h MIlnt 1'",',*1 o 88N 1192111. 11n111 /\! ReU

11 1111111 De""" r:J PRODUCER r:J PA8TPROD'R

r:J 1'JI.8fPROD

• QEY PROS ... RAW ' IIIO' " OCCURRENC!

000_ KIII~liII TW!J

PR OTE ROZOIC DBI1!SI .... I!!1 lI1ln ... tb:.d Zon, CJftllllt 8r1lC~~ o BII«II D O~l oQ;.' IIkI .... P"''''\'If o ' "/ldr!"" ... 'III.,. ... § C""glOmtn"

OIomtIVPOIP"""" Bn ... •••• _ 0Itb1" ARCHEAN

DO ...... RIX~. C NII ... IIIIk.

9I,,,uu, .. N OIOIOOI' raul N TIII>OIII'jlIIlI: linn,

* ....

Lake Superior

6. Deposit Type and Structural Model

\

. "~'. "

The local structural setting supports the view of a structurally active extensional environment characterized by the development of fault blocks that provided channel-ways for mineralizing fluids. The controlling structures are similar in orientation and character to those at the Coppercorp deposit. The mineralogy is essentially the same as that of the Coppercorp deposit consisting of chalcocite, chacopyrite, bornite and pyrite contained in quartz-carbonate breccias and veins.

Like the Coppercorp and Tribag deposits, the Baseline Prospect displays many of the characteristics of the IOCG deposit type. Mineralization is hosted in rocks that are mid­Proterozoic in age, occurring in an extensional environment closely associated with volcano­sedimentary rocks in a high oxidation state. The similarity with other copper deposits like Coppercorp, the presence of felsite and quartz-feldspar porphyry intrusives in the immediate area suggests a similar model , with the deposit forming as a result of interaction between hot magmatic fluids and a lower temperature, possibly hydrothennal-metamorphic fluid.

The structural model defined for the Baseline Prospect applies to the South Baseline Property. The structural model reflects the presence of Cu-Ag-Au mineralization related to a zone of structural dislocation occupied by quartz veins, felsite dikes, altered diabase and amygdaloidal basalts. Once out of the structurally disturbed area the rocks are typically massive, amygdaloidal basalts with limited fracturing and alteration.

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Figure 5: Idealized Cross-Sec/ion across the Baseline Prospect

Idealized Cross-Section Baseline Prospect

7. MMI Soil Geochemistry

Mil1llllllized Zone

I11III ""_ c::J Flllaita

o Fcadl.nd & Aiteold Rock

D QUilrtz-~ Porphyry

D 6a",tLaw. Flowe CJ Gra~ E!;aHlTl8r1t

Falit Zone

100 ITIIIfrell

elevation tOO m 8.&.1.

The MJv1] geochemical survey was completed at a reconnaissance scale with sample locations generally 100 metres apart. The intent was to try and identify an anomalous zone that would be reflective of the approximately 50 metre-wide corridor that contains mineralized quartz-carbonate veins, mineralized basalt, and mineralized felsite found on the Baseline Prospect. An approximately 100-metre spacing was considered to be the most cost­effective in identifying this zone.

7.1 Soil Sampling Method

A picket baseline was cut trending at 3500 over a distance of I kilometre with stations identified at 100 metre intervals with marked metal tags and at 50 metre intervals with pencil on the picket. Soil sampling cross lines were completed using compass bearing of 0500 and GPS dislance from the last sample location. GPS locations were taken at each sample site (average +/- 10 to 15 metre error).

Soil samples were taken between 15 and 25 cm below the humus layer. Information recorded included, GPS VTM Coordinates (NAD27l, forest type, soil colour, topography and any pertinent features nearby (i.c. claim posts). Approximately 250 grams of soil was place in ziplock plastic bags and sealed. Sample bags were identified by sample identification

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numbers. The sample site was flagged with red flagging tape and the sample number and UTM coordinate was written on the flagging.

Several sample locations were rechecked for GPS accuracy. Some sample locations were relocated using GPS due to an apparent error in the original position.

7.2 Sample Preparation, Analysis and Security

Samples were shipped to SGS Canada Inc. 1885 Leslie Street, Toronto, Canada, M3B 2M3, for analysis. SGS Canada Inc. is an analytical laboratory that is accredited to international quality standards (ISO Guide 17025 accreditation). All samples were analyzed for Cu, Pb, Zn, and Cd by inductive couple plasmal mass spectrometry following a multi-component extraction.

It is the author's opinion that the samples collected were representative of the material sampled. Every effort was made to keep contamination to a minimum during sampling. The samples were properly bagged and packed and securely stored prior to shipment.

Quality control consisted of analyzing duplicates of different samples. Duplicate samples of known mineralized and un-mineralized soils were submitted for analysis. Six laboratory duplicates were also analyzed.

T bl 2 D r A I fL b d F· Id S I a e . UpJIcate natyses 0 a an Ie ampJe . ANALYTE Cu ppb Cdppb Pb ppb Zn ppb DETECTION 5 10 20 5 Duplicate Lab Samples I SBG-01 51 355 13 31 iOUP-SBG-01 61 342 14 25 SBG-06 120 20 <20 332 DUP-SBG-06 136 20 <20 350 SBG-18 70 <10 <20 365 I DUP-SBG-18 61 10 <20 361 SBG-30 19 10 <20 292

I DUP-SBG-30 25 20 <20 326 SBG-42 84 30 50 739 iOUP-SBG-42 84 30 <20 740 SBG-54 16 20 <20 428 DUP-SBG-54 9 20 <20 354 Duplicate Field Samples I

SBGO-02 3320400 6 122 960 i

SBGO-02D 3917204 150 i 880 44 I SBG-25 24 30 i <20 1240 SBG-25D 54 20 <20 912

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7.3 MMI Orientation Survey

An MMI orientation survey was completed over known mineralized zones on the Baseline Prospect north of the South Baseline Property. Soil samples were collected along the 0+50S crossline at 25 metre intervals and at a depth of 10 to 20 cm below the humus layer (where present); this included a sample near the mineralized K-8 vein, in soil along strike from the mineralized zone (Table 6; Figure 6).

Two additional samples were obtained from mineralized zones: • Sample SBGO-l was obtained several metres south of the south extension of the

South Boundary Vein, and • Sample SBGO-2 was obtained from soil fonned by the decomposition of mineralized

and altered, sheared amygdaloidal basalt.

Additional soil samples collected from the South Baseline on cross-lines O+OOS and 1 +OOS were used to provide general background values with which to calculate the Response Ratio (Wamtech, 1996). Response Ratios for Cu were calculated using the average low quartile results.

Orientation results indicate a very strong response in mineralized soils or near mineralized veins (Figure 6). The profile along 0+50S clearly identifies the K-8 vein with a very high response ratio (> 18000). Other samples on the profile show highly anomalous response ratios (SBGO-3: 224 and SGBO-6: 604). These samples fall within the mineralization corridor of the Baseline Prospect and so reflect above average response ratios.

The profile along O+OOS on the South Baseline Property displays background and anomalous values with response ratios from 1 to 382. Line 2+00S displays background response ratios and is situated further south from the mineralized area to the north.

MMI soil sample analysis at 15-20 cm depth easily detects high concentrations of Cu mineralization in the immediate area (K-8 Vein, mineralized basalt, South Boundary vein)

Background values (response ratios) range from 0 to 10, and anomalous values can be inferred where the response ratio is greater than 10.

7.4 MMI Geochemical Results

There are two general areas of anomalous copper in soils (see Map 1): a northern anomaly immediately south of the mineralized areas along a cross line at O+OOS, and southern anomaly consisting of several samples clustered near the south baseline at 6+00S. The remaining samples fall within background concentrations (0-10 Response Ratio).

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Northern MMI Anomaly

The northern anomaly consisted of samples taken for the orientation survey southeast of the main baseline prospect. These samples (SBG-02: RR 126; SBG-03 RR 580; SBG-05 RR 92) represent anomalous to highly anomalous samples and are likely close to mineralized areas. The response ratios are in the same range as those found in the orientation survey that were sampled within the structural and mineralized corridor on the Baseline Prospect (Table 6, Figure 6).

Southern MMI Anomaly

The anomaly appears to be a small cluster near the south baseline between 6+00S and 7+00S (SBG-31 RR 33; SBG-35 RR 34; SBG-36 RR 12). There is no known mineralization in this area.

8. Interpretation and Conclusions

Since the mineralized veins on the Baseline Prospect strike south-southeast and dip steeply to the east, the highly anomalous values found along cross-line O+OOS on the south baseline likely reflect the continuation of similar oriented veins, or the offset continuation of the main mineralized veins system. Slightly anomalous values found in samples SBG-8 (RR 16) and SBG-13 (RR 11), may represent this south-southeast trend and further sampling and prospecting is warranted in this area.

The southern MMI anomaly has no obvious explanation and further sampling and prospecting is warranted in this area.

9. Recommendations for further Exploration

1. Additional detailed MMI soil sampling is warranted around identified anomalous samples. Soil samples should be taken at 25 and 50 metres around each anomaly,

2. Detailed prospecting should be done in the area of each anomalous value and within the areas demonstrating a cluster of anomalies

3. Detailed geological mapping should be done along 100 metre cross-lines to identity geological units associated with the Baseline Prospect such as the fine-grained altered diabase.

4. Ground geophysical profiles using VLF-EM and ground magnetometer would assist geological interpretation in overburden-covered areas, and identity potential structural corridors.

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10. References:

Giblin, P., 1969a, Kincaid Township: Ontario Department of Mines, Preliminary Geological Map No. P.553.

Giblin, P., 1973, Batchewana Area: Geological Map 2251, Ontario Department of Mines.

Tortosa, D., 2003; Technical Report on the Baseline Cu-Ag-Au Property Mamainse Point Area, Ontario, Assessment Files, Sault District Geology Office.

Wamtech Pty. Ltd., 1996, MMI Operations Manual for Mobile Metal Ion Geochemical Soil Surveys. Unpublished Report

Table 3: Daily Field Log for D. Tortosa, South Baseline Property

i Date Activity i May 23,2005 Reconnaissance Prospecting

May 28,2005 Soil Geochemical SamEling June 5,2005 Soil Geochemical SamEling June 12,2005 Reconnaissance ProsEecting June 19,2005 QAlQC GPS SamEle Location

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I I

I

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T bl 4 S h B r p' S'I SID a e : out ase IDe rOject 01 amp,e escrlptIoDs SAMPLEID LOCATION COLOUR EASTING NORTHING DESCRIPTN DEPTH CM GENERAL SBG-01 O+OOS O+OOE Black-Brown 672778 5215795 Soil + stones 15 5 m south of picket; maRie bush, open, near swam~ SBG-02 O+OOS 1+00E Dark Black + Brown 672865 5215834 Soil 15-20 Beside picket; water in hole; muskegy-Iowground SBG-03 O+OOS 2+00E Black 673004 5215876 Soil + stones 20 Maple bush; hummocky terrain; low ground

Open maple bush, just south of access roa~; rolling SBG-04 O+OOS 2+00W Dark Brown 672601 5215757 Soil + stones 15 terrain, slope to w

10m south of grid point; open young maple bush; SBG-05 O+OOS 1+00W Black + Dark Brown 672696 5215760 Soil 20 hummocky terrain, low

flat-rolling ground; young maple bush; 5 m west of SBG-06 1+00S O+OOE Dark Brown 672801 5215682 Soil 15-21 Igrid station SBG-07 1+00S 1+00E Dark Brown 672875 5215684 Soil 15-20 North side of stream; base of slope; mixed bush SBG-08 1+00S 2+00E Dark Brown 672975 5215757 Soil 15-20 North side of pond SBG-09 1+00S 2+00W Brown 672621 5215612 Sandy Soil 15-20 Bush Road, mixed young growth SBG-10 1+00S 1+00W Brown 672706 5215646 Soil 15-20 Flat nole, mixed bush

South side of stream (15m), 8m west of baseline; SBG-11 2+00S 0 OOE Dark Brown 672824 5215559 Soil 15-20 Iyounggrowth SBG-12 2+00S 1+00E Dark Brown 672894 5215623 Soil 15-20 Base of west slope SBG-13 2+00S 2+00E Dark Brown 673043 5215632 Soil 15-20 Open Area and beaver clearil}9; south side of pond SBG-14 2+00S 2+00W Dark Brown 672637 5215437 Soil 15-20 Open Hardwood, flat area SBG-15 2+00S 1+00W Dark Brown 672716 5215495 Sandy Soil 15-20 West side of loggiWl9 road 25 m SBG-16 3+00S O+OOE Dark Brown 672845 5215498 Soil 15-20 West slope, hardwood SBG-17 3+00S 1+00E Dark Brown 672939 5215589 Soil 15-20 North Slope, Hardwood SBG-18 3+00S 2+00E Dark Brown 673030 5215552 Soil 15-20 North Slope, Hardwood SBG-19 3+00S 2+00W Dark Grej' 672655 5215383 Gravelly soil 15-20 Flat area, mixed timber SBG-20 3+00S 1+00W Dark Brown 672758 5215450 Gravelly soil 15-20 Mixed Timber

Hardwood; hill/land rises to the east; 1 m east of SBG-21 4+00S O+OOE Dark Brown-Black 672865 5215409 Soil 15-20 logging road SBG-22 4+00S 1+00E Brown 672947 5215501 Soil 15-20 Hilltop; East N/E slope; Hardwood m ixed a~e SBG-23 4+00S 2+00E Brown 673021 5215554 Soil 15-20 East slope; hardwood SBG-24 4+00S 2+00W Dark Brown 672693 5215267 Soil 15-20 South slope 30m east of main road SBG-25 4+00S 1+00W Brown 672768 5215342 Soil 15-20 Mixed young growth, NIW slope (sligh!} SBG-26 5+00S O+OOE Black 672895 5215307 Soil 15-20 Base of west slope; mixed bush SBG-27 5+00S 1+00E Brown 672968 5215359 Soil 15-20 Flat plateau; hardwood SBG-28 5+00S 2+00E Brown 673078 5215419 Pebbly soil 15-20 Hilltop sloping north; clean hardwood

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SBG-29 5+00S 2+00W Brown 672699 5215214 Pebbly soil 15-20 15m west of main road 10m N/E of claim post #1 SSM 3019475; mixed

SBG-30 5+00S 1+00W Dark Brown 672809 5215242 Soil 15-20 timber SBG-31 6+00S O+OOE Brown 672919 5215195 Gravelly soil 15-20 West slope; mixed timber SBG-32 6+00S 1+00E Dark Brown 673008 5215244 Gravelly soil 15-20 Slight slope to the west; mixed hardwood

Near hilltop; thick second growth; hardwood SBG-33 6+00S 2+00E Dark Brown 673077 5215289 Gravelly soil 15-20 shallow overburden; rocky b

!G-34 6+00S 2+00W Brwon 672738 5215083 Brown 15-20 E/NE slope; mixed timber; 18 m east of road

G-35 6+00S 1+00W Dark Brown 672826 5215142 Gravelly soil 15-20 North slope; dense young growth; mized 16 m S/E of station; flat area sloping north; mixed

SBG-36 7+00S O+OOE Black 672937 5215111 Gravelly soil 15-20 timber SBG-37 7+00S 1+00E Dark Brown 673015 5215155 soil 15-20 On a nole south of road; maple timber, mixed aJle SBG-38 7+00S 2+00E Brown 673105 5215188 soil 15-20 South side of road SBG-39 7+00S 2+00W Dark Brown 672778 5214993 Gravelly/pebbl 15-20 Gradual slope to north; mixed bush

Near hilltop; 30 m north of old claim post #3 -SBG-40 7+00S 1+00W Dark Brown 672844 5215035 Soil 15-20 1235251 ; #4 - 1235250 SBG-41 8+00S O+OOE IDark Brown 672971 5214999 Pebbly soil 15-20 10m SE of station; rocky overburden; mixed timber SBG-42 8+00S 1+00E Dark Brown 673028 5215075 Sandy soil 15-20 Open hardwood SBG-43 8+00S 2+00W Brown 673166 5215149 Soil 15-20 Mixed forest; west slo~e SBG-44 8+00S 2+00W Black 672817 5214875 Soil 15-20 Dense second growth; hardwood SBG-45 8+00S 1+00W Black 672871 5214930 Pebbly soil 15-20 Mixed Hardwood SBG-46 9+00S O+OOE Dark Grey 672992 5214914 Pebbly soil 15-20 5 m west of station; mixed hardwood SBG-47 9+00S 1+00E Dark Brown-Black 673087 5214969 Sandy soil 15-20 Mixed bush SBG-48 9+00S 2+00E Brown 673156 5215051 Pebbly soil 15-20 South side of cedar thicket; mixed hardwood SBG-49 9+00S 2+00W Brown 672841 5214815 Sandy soil 15-20 Flat area, mixed hardwood SBG-50 9+00S 1+00W Dark Grey-Black 672918 5214861 Soil 15-20 Open Hardwood SBG-51 10+00S O+OOE Dark Grey-Brown 673017 5214816 Soil 15-20 Hardwood; on baseline at station SBG-52 10+00S 1 +OOE Brown 673073 5214848 Sandy Soil 15-20 Rolling terrane; mixed hardwood

West side of wet area; mixed timber; slight rise to SBG-53 10 OOS 2+00E Dark Brown 673155 5214927 Soil 15-20 the west SBG-54 10+00S 2+00W Black 672826 5214729 Soil 15-20 Flat; mixed hardwood

-

SBG-55 10+00S 1 +OOW Dark Brown-Grey 672935 5214772 Soil 15-20 Flat; mixed hardwood

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a e : ou' ase Ine ro lee nalyses an T bl 5 S th B r P . t MMI A I dR esponse Rf a lOS

SAMPLE 10 CU PPB CO PPB PB PPB ZN PPB Cu RR Cd RR Pb RR Zn RR I

SBG-01 51 13 31 355 3 1 3 11 SBG-02 1910 5 21 79 126 0 2 ~ SBG-03 8780 106 27 710 580 7 3 3

SBG-04 17 52 32 2060 1 3 3 8,

SBG-05 1390 14 21 83 92 1 2 0 1

SBG-06 120 20 10 332 8! 1 1 1

,SBG-07 12 20 10 347 1 1 1 1

SBG-08 244 40 10 2830 16 3 1 11

SBG-09 34 30 10 850 2 2 1 3 SBG-10 29 20 10 890 2 1 1 4 SBG-11 21 40 10 276 1 3 1 1.

SBG-12 129 20 10 131 9 1 1 1 SBG-13 162 100 40 4200 11 6 4 17! SBG-14 54 20 10 245 4 1 1 1 SBG-15 93 70 90 1600 6 5 9 6 SBG-16 22 50 10 616 1 3 1 2 SBG-17 116 20 10 2390 8 1 1 10 SBG-18 70 5 10 365 5 0 1 1 SBG-19 125 40 10 465 8 3 1 2 SBG-20 88 30 40 410 6 2 4 2 SBG-21 27 40 10 1080 2 3 1 41 SBG-22 26 30 10 1740 2 2 1 71 SBG-23 41 20 10 1060 3 1 1 4!

SBG-24 16 40 10 1570 1 3 1 6 SBG-25 24 30 10 1240 2 2 1 5 SBG-26 61 40 10 373 4 3 1 21 SBG-27 16 20 10 329 1 1 1 1: SBG-28 87 10 10 667 6 1 1 3 SBG-29 82 20 10 561 5 1 1 2 iSBG-30 19 10 10 292 1 1 1 1 SBG-31 493 20 10 314 33 1 1 1 SBG-32 55 50 10 1100 4 3 1 41

SBG-33 43 40 110 1790 3 3 11 7 SBG-34 49 70 10 2250 3 5 1 9 SBG-35 518 30 30 374 34 2 3 21 SBG-36 185 30 30 326 12 2 3 1 'SBG-37 15 20 10 1180 1 1 1 5 SBG-38 57 40 10 500 4 3 1 2 SBG-39 63 30 10 209 4 2 1 1 SBG-40 6 20 10 1460 0 1 1 6 SBG-41 22 30 10 1420 1 2 1 6

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S8G-42 84 30 50 739 6 2 5 31 S8G-43 27 40 10 1430 2 3 1 61

S8G-44 15 40 10 587 1 3 1 2 S8G-45 36 30 10 1380 2 2 1 6 S8G-46 7 30 20 1380 0 2 2 6 'S8G-47 24 50 60 2530 2 3 6 10 S8G-48 28 20 10 134 2 1 1 1 S8G-49 28 20 10 723 2 1 1 3 'S8G-50 34 30 10 1030 2, 2 1 41 S8G-51 57 20 10 353 4 1 1 1 1 S8G-52 75 50 30 2130 51 3 3 91 iS8G-53 8 30 10 1330 1

!

2 1 5 S8G-54 16 20 10 428 1 1 1 2 S8G-55 41 30 10 926 3 2 1 4

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Table 6: Results from MMI Orientation Survey

SamplelD Cu (ppb) Response Ratio Location Notes SBG-03 8780 382 P+OOS 2+00E south of BL Prospect SBG-02 1910 83 P+OOS 1+00E south of BL Prospect SBG-01 51 2 P+OOS O+OOE south of BL Prospect I

SBG-05 1390 60 P+OOS 1+00W south of BL Prospect SBG-04 17 1 p+OOS 2+00W south of BL Prospect SBG-08 244 11 1+00S 2+00E south of BL Prospect SBG-07 12 1 1+00S 1+00E south of BL Prospect SBG-06 120 5 1+00S 1+00E south of BL Prospect SBG-10 29 1 1+00S 1+00W south of BL Prospect SBG-09 34 1 1+00S 2+00W south of BL Prospect SBG-12 129 6 GPS Located south of BL Prospect SBG-13 162 7 GPS Located south of BL Prospect SBG-17 116 5 GP5 Located south of BL Prospect

5BGO-03 5160 224 NBL 0+505 0+50E near K-8 vein IsBGO-04 418500 18196 NBL 0+505 0+32E Beside K-8 vein SBGO-05 701 30 NBL 0+505 O+OOE near felsite 5BGO-06 13900 604 NBL 0-505 0+40W west of Laumontite Vein Average low quartile 23

5BGO-01 120000 5217 NBL 2+305 0+40W Near mineralization I

SBGO-02 3320400 144365 NBL 2+205 0+30W Mineralized soil

15

Figure 6: Graphical presentation of results from orientation survey

A:. MMI Profile 0+00 SBL

450 ~ ----------~--~---------- ---- ------------------ - ---------~

400 +---~~------------------------------------------------~

350

.~ 300 ~ II:: Q) 250

'" I: &. 200

Sl 150 II::

100

50

o Sample 10 SBG-03

12+00 NE 1

20000 0 :;;

15000 CIS 0:: Q) til 10000 r::: 0 c.

5000 til Q)

0:: 0

SBG-02

11+00NEI

SBG-01

10+00 SBL 1

SBG-05

11+00 SW 1

c: MMI Profile K-8 vein

224 30

Sample 10 SBGO-03 SBGO-04 SBGO-05

0+50 NE 0+30 NE 0+00 BL

16

SBG-04

12+00 SW 1

604

SBGO-06

0+50 NoN

10

i 8 II::

'" ~ 6 o c. '" ::. 4

2

11

Sample 10 SBG-OB

12+00 NE 1

B: MMI Profile 1+00 SBL

SBG-O?

11+00 NE 1

SBG-06

11+00 SBL 1

SBG-10

11+00swl

0: MMI from Mineralized Soil

SBG-11

12+00SW 1

140000 ,....---. .... _---------------=---_..,...-----------~

120000 -J---____ _

o 1 00000 +-~-~

:N ~ BOOOO +-----.. on c 0 60000 "-on

" '" 40000

20000

SBGO-01 SBGO-02

Sample 10

Map I: South Baseline Project, MMI Soil Geochemistry, Copper Response Ratios

17

\

\

, ,

Baseline Prospect Mineralized Vei' s

\

o SSG-09

o SBG.10

South Baseline MMI Geochemical

Reconnaissance Sampling

I ,

IBs -03

'----"FOIoSBG-08

SBG-oil S(-07 _

.. SBG-12 OSBG-1

- /,," SBG-17

I Q. RG'"~/~ 7 SB~ '

\ I!l SBG-20 o . BG-14

.. SBG-19 ~:lG;\O~S )

I I i SBG-27 ° SBIO-25

JBG-2~

., B&-28

o S8G-33 ° SBG-2 I

o 'SBG.,(lO o BG-32

~ __ ~o~ SS§.G-29~ ) , o

,/

MMI Cu Response Ratio o 0 - 5 • 5 - 10 o 10- 30

• 30-100

II 100 - 600

N BI Mineralized Veins • BI drill holes

[]]] Basalt - Diabase o Felsite, Felsite Breccia

BI roads N Bush Road N Primary Road I', I Skidder Trail

BI GPS roads

• SbLgps_benchmarks -=::J Baseline claims

S8BL ODS

-36

o SBG-43_~ _ _________ -/--_,

° SBG-40

° SBG-3~

I ° SBG-45

I o S8G-44 I ° SBG-50

o S8G-49

.. SBG-42 ° SBG-48

SBG-41

o SBG-47

° SBG-52

SBG-51

° SBG-53

° SBG-55 340

o SSG-54

1 0i.;0~~t.iJ.o~~~'I00 Meters

(

APPENDIX

18

To: Delio T ortosa

CERTIFICATE OF ANALYSIS

Work Order: 083981

Attn: Delio Tortosa

#408-99 Pine Street SAULT STE. MARIE ON PI; A 3'1.3

Copy 1 to

P.O. No. Project No. No. of Samples Date Subn·/tc:ec! Rep (; t Cc 'I. prises

11 Soil (MMll O~, /OhlO;) Cc. r S, 2H: '.':: :;

Pages to

Distribution of unused material: Pulps: RETURN Rejects: RETURN

Certified By

Date 22/06/05

Tim Elliott, Operations Manager

ISO 9002 REGISTERED

ISO 17025 Accredited for Specific Tests. see No. 456

Report Footer: L.N.R. = Listed not received I.S. Insufficient Sample n.a. = Not applicable :;: No result "INF Composition of this sample makes dE~tection impossible by this method M after a result denotes ppb to ppm conversion, % denotes ppm to % conversion

Subject to SGS General Terms and Conditions

SGS Canada Inc. Mineral Services 1885 Leslie Street Toronto ON M38 2M3 t (416) 445-5755 f (416) 445-4152 www.sgs.ca

Member of the SGS GrouD (Socu~te Generale de Surveillance)

Work Order: 083981 Date: 22/06/05 FINAL Pa

Element. Cu Zn Cd Pb Method. MMI-A5 MMI-AS l\'fMI-AS MMI-A5 Det.Lim. S S 10 20 Vnits. ppb ppb ppb ppb

S8G-Ol 51 355 13 31 S8G-02 1910 79 <10 21 S8G-03 8780 710 106 27 S8G-04 17 2060 52 32 S8G-05 1390 83 14 21

S8GO-Ol 120000 210 70 90 S8GO-02 3320400 6 122 960 S8GO-0< 5160 82 <10 <20 SB~ :'4 ,,135(;'/ +(.2) II

SBl;I,-V-' ''<i8,; '}

S8GO-06 13900 137 16 32 *Dup SBG-O} 61 342 14 25 *Blk BLANK <5 <5 <10 <20 *Srd MMISRM14 235 238 <10 66

Certificate of Analysis

To: Delio Tortosa #408-99 Pine Street SAULT STE. MARIE ON P6A 3Y3

P.O. No. Project No. No. Of Samples Date Su bmittetj R.epo! i. ;ompriscs

52 Seo 01,2005 rages 1 to 3

Work Order: 085503

(lndus;ve rf Ce'.'€:: !',l jtJl;

Distribution of unused material:

52 Soils

Certified By

ISO 9002 REGISTERED

Date: Sep 23, 2005

ISO 17025 Accredited for Specific Tests. see No. 456

Report Footer L. N. R ::: Listed not received n.a Not applicable

LS. ::: Insufficient Sample ::: No result

*INF ::: Composition of this sample makes detection impossible by this method

M after a result denotes ppb to ppm conversion. % denotes ppm to % conversion

Subject to SGS General Terms and Conditions

I'he data reported on this certificate of analysis represents the sample submitted to SGS Minerals Services, Reproduction of this analytical report, in full or in part, is prohibited without prior written approval.

SGS Canada Inc, Mineral Services 1885 Leslie Street Toronto ON M3B 2M3 t(416) 445-5755 f(416) 445-4152 W'NW.sgs.ca

Member of the SGS Group (Societe Generale de Surveillance)

Element Method Det.Lim. Units

S8G-06 S8G-07 S8G-08 S8G-09 S8G-10 S8G-11 S8G-12 S8G-13 S8G-14 S8G-15 S8G-16 S8G-17

S8G-18 58(;·19 SBc:.2Q

S8G-21 S8G-22 S8G-23 S8G-24 S8G-25 S8G-26 S8G-27 S8G-28 S8G-29 S8G-30 S8G-31 S8G-32 S8G-33 S8G-34 S8G-35 S8G-36 S8G-37 S8G-38 S8G-39 S8G-40 S8G-41 S8G-42

S8G-43 S8G-44 S8G-45

S8G-46 S8G-47 S8G-48 S8G-49 S8G-50 S8G-51 S8G-52 S8G-53

MMI-A 10

PP8

20 40 30 20 '46

40 30 20

MMI-A 5

PP8

MMI-A 20

PP8

MMI-A' 51

PP8;

·;W5 4'!"

1080; , .. wT7~r61

<26'" w'':{0601 40 16" "<26~'w""~T570i 30 24, <20"'-'-~f240;

46"61" ""--<20: w "--"373: 20 ' '--'<'20-""---' 329!

1'0 --<2cf"'---ss71 20 ""'82' " .. w'~'<2(f~- 561! 1 0 "'w-1~t' "'.w~<2(r"~~~21

20 493 '" .. --~'<2'(j'·'----'-314j 50-'-"55:'--'~6"'~'-'--11OCij

40 70 30 3D 20 40 30 20 30

30 40

40

30 30 50 20 20 30 20 50 30

36

24 28 28 34 57 75

8

"""'--<20 .. """1380;

20 """--'"1380;

"<2'(f ""-""353; ':30' "213'0: <20

Page 2 of 3

The data reported on this certificate of analysis represents the sample submitted to SGS Minerals Services, Reproduction of this analytical report, in full or in part, is prohibited without prior written approval.

SGS Canada Inc, Mineral Services 1885 Leslie Street Toronto ON M38 2M3 t(416) 445-5755 f(416) 445-4152 WWW.sgs.ca

Member of the SGS Group (Socilite Generale de Surveillance)

Element Method Det.Lim. Units

S8G-54 S8G-55 S8GO-02D S8G-250'

*Dup S8G-06 +Dup S8G-18 *Dup' S8G~30 *Dup S8G-42 *Dup S8G-54

MMI-A 10;

PP8

MMI-A: 5:

PP8':

MMI-A 20

PP8'

MMI-A 5:

PP8;

Page 3 of 3

rhe data reported on this certificate of analysis represents the sample submitted to SGS Minerals Services. Reproduction of this analytical report, in full or in part, is prohibited without prior written approval.

SGS Canada Inc, Mineral Services 1885 Leslie Street Toronto ON M38 2M3 t(416) 445-5755 f(416) 445-4152 www.sgs.ca

Member of the SGS Group (Societe Generale de Surveillance)