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31M05NE2007 2.19319 COLEMAN 010 SUMMARY REPORT ON THE MARCH 1997 REVERSE CIRCULATION DRILLING PROGRAM MONTREAL RIVER "B" PROPERTY COLEMAN TOWNSHIP LARDER LAKE MINING DIVISION NORTHEASTERN ONTARIO PREPARED FOR SUDBURY CONTACT MINES LTD. BY W.A. HUBACHECK CONSULTANTS LTD. 365 Bay Street, Suite 807 Toronto, Ontario M5H 2V1 NTS 31 M/12 S W Raymond J. Knowles, B.Se. PN: 21J-9 FEBRUARY 2,1999 File: 21|-97RCasREP.wpd d i y W.A. HUBACHECK CONSULTANTS LTD.
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  • 31M05NE2007 2.19319 COLEMAN 010

    SUMMARY REPORT

    ON THE

    MARCH 1997

    REVERSE CIRCULATION DRILLING PROGRAM

    MONTREAL RIVER "B" PROPERTY

    COLEMAN TOWNSHIP

    LARDER LAKE MINING DIVISION

    NORTHEASTERN ONTARIO

    PREPARED FOR

    SUDBURY CONTACT MINES LTD.

    BY

    W.A. HUBACHECK CONSULTANTS LTD.365 Bay Street, Suite 807

    Toronto, OntarioM5H 2V1

    NTS 31 M/12 S W Raymond J. Knowles, B.Se. PN: 21J-9 FEBRUARY 2,1999 File: 21|-97RCasREP.wpd

    d i yW.A. HUBACHECK CONSULTANTS LTD.

  • 31M05NE2007 2.19319 COLEMAN 010C

    i

    TABLE OF CONTENTS

    SUMMARY . .. . . .. . . . . . . . . . . . . . . . . . . . . .. . .. .. . . . . . . . . . . . . . .. . . .. . . . . . l

    INTRODUCTION . .. . . . . . . . . . . .. . . . . . .. . .. .. . ... . .. . ... . . . . . . . . . .. . . . . 2

    PROPERTY AND PROJECT AREA DESCRIPTION .... . .. .... . . . . . .. . . .. . . . 3

    LOCATION AND ACCESS . .. . . . . . . . . . . .. . . ... . . .. . . . .. ... . .. . . .. . . . . . . 3

    LOGISTICS . .. . . .. . .. . . . . . . . . . . .. . . . . . .... ... . . .. . .. . ... . . .. .. . .. . .. . 6

    LOCAL BEDROCK GEOLOGY . .. . . . .. .. ..... ... . . . . . .. . . .. . . . . . .. .. . . . 7

    QUATERNARY GEOLOGY . . . . . . . .. . . ............ . . . . .. .. .. . .. . . ... . . . 7

    REVERSE CIRCULATION DRILLING . . . .. . .... ..... .. .... . . . . . .. . . .. . . . 8

    METHODOLOGY .. . . . . . . . . . . . . . . .. .. . . .... . .. . . . .. ... . .. . . .. . . .. . . 8

    REVERSE CIRCULATION DRILLING SAMPLING RESULTS . . .. . . . . . . . . . 12

    CONCLUSIONS . . . . . .. . .. . . . . . . . . . . . . . .. . . . .. .. . . . . .. . . .. . . . . . .. . . .. . 12

    RECOMMENDATIONS . . . . . . . . . . .. .. .. . .. ... .. . . .. . ... . . .. . .. . . .. . . . . 13

    REFERENCES .. . . .. . .. . . . . . . . . . . . . . . . . . .. ... .. . . . . . .... .. . . .. . . .. . .. 14

    CERTIHCATE OF QUALIFICATIONS . . . .. . ... . . . .. . .. . . .. . . . . . . . . . .. . . . 15

    MAPS

    Map 1: R.C. Drill Hole LU-97-01, Location Map, scale 1: 2 500

    LIST OF APPENDIX

    APPENDIX A: REVERSE CIRCULATION OVERBURDEN DRILL LOG

    APPENDIX B: OVERBURDEN DRILLING MANAGEMENT RESULTS

    APPENDIX C: CERTIFICATE OF EXPENDITURES SL ALLOCATION OF COSTS TABLE

    W.A. HUBACHECK CONSULTANTS LTD.

  • 11

    LIST OF FIGURES

    Figure 1. Project Area Location Map, scale 1:50 000 .. . .. . . . . . . . . . . . . . . . . . . . . 4Figure 2. R.C. Drill Hole C-97-01 And Claim Location Map, scale 1: 10 000 . . . . . 5Figure 3. Idealized Conceptual Model . .. . . . .. . . ... . . .. . .. . . . . . . . . . . . . . . . . 9Figure 4. Schematic of Reverse Circulation Drilling Method ... . ... ... ... .... 10Figure 5. Flow Sheet, Unweathered Till ..................................11

    W.A. HUBACHECK CONSULTANTS LTD.

  • l

    SUMMARYSudbury Contact Mines Ltd. is involved in the exploration of a group of claims in Bucke and Coleman Townships referred to as their Montreal River "B"Project. The study area consists of 13 contiguous claims covering approximately 528 hectares in Bucke Township and one two unit claim covering 32 hectares in Colman Township. The current exploration project is oriented towards diamond and gold.

    Reverse circulation (RC) drilling in March 1997 was conducted to test a specific magnetic anomaly which could be indicative of kimberlite. This anomaly was picked from an airborne survey (200m line spacing, MR96, Dighem 1995) Ground geophysical surveying (grid 97-6, Expl. Services 1997) at 50m line spacing was conducted prior to drilling to further define the anomaly. The anomaly is situated within a kettle pond within the Sharp Lake esker complex.

    A total of 15 pyrope, O chrome diopside and 95 ilmenite grains were recovered from the three upper samples for a total of 4.55 Kimberlite Indicator Minerals (KIM's)Tkg. The 0.5 metre basal stoney 'till' unit contained 8 pyrope, 2 chrome diopside and 20 ilmenite grains for a total of 3.64 KIM's/kg. Two reshaped gold grains were recovered.

    The moderate to good KIM response, suggests this hole is located at the proximal to medial position of an esker borne kimberlite indicator mineral dispersal train. An irregular shaped anomaly was indicated by the ground geophysics and an angled DDH would have been a more satisfactory test. The result of the basal till sample may potentially indicate a very proximal source. The other possibility exists that this anomaly is a more distal response to the Bucke and Gravel pipes to the north.

    W.A. HUBACHECK CONSULTANTS LTD.

  • INTRODUCTION

    Sudbury Contact Mines Ltd. is involved in the exploration of a group of claims in Bucke and Coleman Townships referred to as their Montreal River "B'Troject. The study area consists of 13 contiguous claims covering approximately 528 hectares in Bucke Township and one two unit claim covering 32 hectares in Colman Township. The current exploration project is oriented towards diamond and gold.

    This report documents results from a reverse circulation drilling program on the property, conducted by W.A. Hubacheck Consultants Ltd., on behalf of Sudbury Contact Mines Ltd. The program was carried out March 27, 1997. One hole was drilled into a significant circular magnetic low target covered by grid "97-6" on claim 1211672. This geophysical target was delineated from previously documented kimberlite indicator mineral concentration and airborne magnetic (MR96) anomalies. The target is situated over a circular kettle lake (Stair's pond), within the Sharp Lake esker complex..

    The coordination and implementation of the various technical tasks was conducted by W.A. Hubacheck Consultants Ltd. under the supervision of D. Christie, R. Knowles.

    W.A. HUBACHECK CONSULTANTS LTD.

  • PROPERTY AND PROJECT AREA DESCRIPTIONThe Sudbury Contact Mines Ltd. Montreal River "B" Property discussed in this report consists of a group of 13 contiguous claims covering approximately 528 hectares in Bucke Township and one two unit claim covering 32 hectares in Colman Township, within the Larder Lake Mining Division:

    CLAIM NUMBER

    1211474

    1211475

    1211474

    1211477

    1211478

    1211479

    1211480

    1211481

    1211482

    1211483

    1211484

    1211485

    1211486

    1211672

    DATE RECORDED

    95/08/08

    95/08/08

    95/08/08

    95/08/08

    95/08/08

    95/08/08

    95/08/08

    95/08/08

    95/08/08

    95/08/08

    95/08/08

    95/08/08

    95/08/08

    97/03/18

    TOWNSHIP

    Bucke

    Bucke

    Bucke

    Bucke

    Bucke

    Bucke

    Bucke

    Bucke

    Bucke

    Bucke

    Bucke

    Bucke

    Bucke

    Coleman

    AREA (UNITS)

    2

    2

    4

    1

    3

    2

    2

    2

    1

    4

    2

    4

    4

    2

    AREA (HECTARES)

    32

    32

    64

    16

    48

    32

    32

    32

    16

    64

    32

    64

    64

    32

    Total 14 claims 35 units 560 hectares

    LOCATION AND ACCESS

    Access to the claim group in south-central Bucke Township from the north is via Highway 558 west from Haileybury, and southwards along a concession road. An ATV trail which extends for approximately 600 m south from the end of this concession road allows access to the centre of the claims. A trail south east down the power lines provides access points to the east side of the property. The south end of the Buck Township property can be accessed via the snowmobile trail from the north end of the town of Cobalt old dump to south of Wilgar Lake. The Colman claim can be accessed via the Sharp Lake road east of HWY 11. A short trail constructed north of the road leads to the RC drill site.

    W.A. HUBACHECK CONSULTANTS LTD.

  • l

    l l l l l l l l l l l l l l l l l l

    Sudbury Contact Mines Ltd. Montreal River "B" Project Figure 1. Location of the drill area W.A. Hubacheck Consultants Ltd.

  • METRES

    SUDBURY CONTACT MINES LTD. FIGURE 2 RC DRILL HOLE C97-01 LOCATION MAPW.A. HUBACHECK CONSULTANTS LTD.

  • LOGISTICS

    Technical Consultants:

    Reverse Circulation Drilling:

    Mineral Processing:

    Project Geologist:

    Contract Project Geologist:

    Sampler:

    W.A. Hubacheck Consultants Ltd. 365 Bay Street, Suite 807 Toronto, Ontario M5H 2V l

    Heath and Sherwood Drilling (1986) Ltd. Kirkland Lake, Ontario

    Overburden Drilling Management Ltd. Nepean, Ontario

    David W. Christie, B.Se. 104 Douglas Ave Toronto, Ontario M5M 1G6

    Raymond J. Knowles, B.Se. 79-13th St Etobicoke, Ontario M8V 3H5

    Bruce Larson Larder Lake, Ontario

    W.A. HUBACHECK CONSULTANTS LTD.

  • LOCAL BEDROCK GEOLOGY

    The claim area is underlain primarily by Firstbrook Member argillites (709fc) of the Proterozoic aged Gowganda Formation. This argillite is generally a well bedded mudstone, with reddish or pale grey, coarser grained quartzose bases of beds, grading upwards into greenish grey, thinner argillaceous upper portions of beds. Coleman Member conglomerate or diamicton(tillite) units are exposed to the east.

    The Nipissing Diabase, which underlies approximately 30^o of the property area, occurs as a series of cone-shaped intrusions which produce circular to oval outcrop patterns, and dyke and sill complexes. Numerous facies of the Nipissing Diabase have been recognized, including the chilled margin facies comprised of quartz "diabase" (quartz diorite), a fine-grained dense green- black rock to a medium-grained greyish black rock.

    QUATERNARY GEOLOGY

    The overall project area is dominated by an upland composed of bedrock knobs, plateaus and a large glaciofluvial system. Very few exposures of till occur at surface in this area of sporadic bedrock exposure and glaciofluvial sediment cover. The striae record of the latest ice advance over the study area indicates a shift from an early southwesterly ice flow, to a latest southerly ice flow (Veillette and Mcclenaghan, 1996).

    The claim unit straddles the generally south to southwesterly trending Sharpe Lake esker system and the RC hole was drilled at the edge of a kettle lake (Starr's Pond) within the above mentioned esker complex.

    W.A. HUBACHECK CONSULTANTS LTD.

  • REVERSE CIRCULATION DRILLING

    METHODOLOGY

    The purpose of sampling specific types of glacigenic sediments is to obtain a geochemical signature of subcropping ore bodies which have been eroded by glacial action and distributed in a "dispersal train" down-ice of the ore body. Reverse circulation drilling permits a cost-effective method of sampling these sediments up to a depth of 100 m (Figs. 3 and 4).

    Glacial action has reduced much of the material to sand and silt size, and it is grains of this size fraction which are examined in a laboratory for gold, sulphides and other minerals indicative of potentially economic deposits (Fig. 5). Coarser material (gravel and boulder chips) are examined and described at the drill by a geologist.

    Case histories, Quaternary geological studies and examination of the local glacial record provide a data base which can be used to interpret the mineralogical results from a reverse circulation drilling program.

    The most important material to sample during a reverse circulation program is commonly termed till. Till is poorly sorted debris which is normally transported directly down-ice from its point of entrainment, remaining at or near the base of the glacier until it is deposited (smeared) along bedrock surfaces, filling depressions and valleys. Basal till is found lying directly on bedrock. Minerals found in this material can normally be traced by their relative abundance and morphology directly back up-ice to their source.

    Till can also be reworked or redeposited by water and a number of other mechanisms, including rafted ice flows and re-mobilization along paleoslopes, which may lead to misinterpretations. Therefore, a large database is necessary for defining patterns based on numerous data points rather than isolated anomalous values.

    Samples of till and gravel were taken and sent to Overburden Drilling Management Ltd. for processing to recover sand and silt size gold grains and kimberlite indicator minerals.

    In addition to glacial material, chips of bedrock are obtained at each drill hole location, making this a valuable mapping/prospecting tool in areas of poor bedrock exposure.

    W.A. HUBACHECK CONSULTANTS LTD.

  • ICE DIRECTION

    SURFACE

    If

    LAKE SEDIMENTS

    GLACIOFLUVIAL GRAVELS

    Figure 3. Idealized conceptual model illustrating the use of basal till as a prospecting medium in glacial terrain, using reverse circulation drilling as a sampling technique.

    W.A. HUBACHECK CONSULTANTS LTD.

  • Figure 4. SCHEMATIC OF RG DRILLING METHOD

    Sample A Water

    Sampled Glacial Till Material

    W.A. HUBACHECK CONSULTANTS LTD.

  • Figure 5. FLOW SHEET UNWEATHERED TILL 11

    Character Sample, 300g: STORE

    > 2.0 mm : STORE

    < 1.00 mm Light Fraction : STORE

    Light Fraction : STORE

    Magnetic Fraction STOltt-

    Bulk Sample (± 10.0 kg)

    Split

    Main Sample :Disaggregate

    (water/calgon solution)

    Main Sample :Wet Sieve at

    1.00 to 2.00 mm

    < 1.00mm: Shaking Table A Gold Grain Count

    Table Concentrate : Panning & Gold Grain Count

    Table Concentrate : Heavy Liquid Separation (SG 3.20)

    Heavy Fraction : l crromag Separation

    1.00 to 2.00 mm: STORE

    < 0.25 mm : STORE

    0.25 to 0.50 mmParamagnetic Fraction

    STORE

    Nonmagnetic Fraction : Dry Sieve to O 50 A 0.25 mm

    025 to 0.50 mm. Nonmagnetic Fraction :

    Paramagnetic Separation _ (drum Carpco)

    0.25 to 0.50 mmNonmagnetic Fraction :

    Indicator/Diamond Picking

    0.50 to 1.00mmNonmagnetic fraction :

    Indicator/Diamond Picking

    "T" UKimbeililc Indicators/Diamonds : Record Photographically (35 mm)

    Optional : Mount grain and Perform SEM Microprobe Analysis

    W.A. HUBACHECK CONSULTANTS LTD.

  • 12

    REVERSE CIRCULATION DRILLING SAMPLING RESULTS

    A brief description of the hole stratigraphy is given below. In general, only material interpreted to be till or esker (proximal, ice-contact) gravel was sampled during these programs. Material weights and grain counts indicate the amount of sample processed and subsequent recovery of gold and kimberlite indicator mineral grains. To allow for easy comparison, the data was manipulated to provide the average count of total kimberlite indicator minerals (KTMs) in all samples per hole per kilogram of processed sample (table feed weight); (KIM's/kg). Also presented are the total counts of pyrope , chrome diopside and ilmenite grains per hole. Where multiple samples were encountered, ranges were also presented. Individual sample results are found in Appendix C.

    C-97-01

    A 0.5 metre thick unit of possibly silty sandy stoney basal till overlies 2.0 metres of intersected Proterozoic aged grey siltstone bedrock and occurs beneath 23.5 metres of glaciolacustrine sandy to stoney, poorly to moderately sorted gravel. Two reshaped gold grains were recovered from 4 samples (32.45 kg of table feed). A total of 15 pyrope, O chrome diopside and 95 ilmenite grains were recovered from the three upper samples of 24.2 kg of table feed (4.55 KIM's/kg). The 0.5 metre basal stoney 'till' unit contained 8 pyrope, 2 chrome diopside and 20 ilmenite grains recovered from 8.25 kg of table feed (3.64 KIM's/kg).

    CONCLUSIONS

    1)The esker building process deeply scoured the local area removing any significant concentration of till. The kettle lake has been partially in filled due to post glacial erosion of the esker and / or slumping after removal of ice.

    2)The moderate to good KIM response, suggests this hole is located at the proximal to medial position of an esker borne kimberlite indicator mineral dispersal train. There is a moderate potential that the KIM response reflects the known pipes to the north, such as the Bucke and Gravel.

    3)A regional background of gold grains is suggested.

    W.A. HUBACHECK CONSULTANTS LTD.

    T

  • 13

    RECOMMENDATIONS

    1) More till samples should be obtained up-ice wherever possible, either from till or esker pit sampling or from reverse circulation drilling, to delineate the dispersal train. This will provide a focus for which to study the known data, pit results and airborne magnetic survey results to choose possible kimberlite targets.

    2)The anomaly was not thoroughly tested. An angled diamond drill hole might be considered.

    W.A. HUBACHECK CONSULTANTS LTD.

  • 14

    REFERENCES

    Averill, S. A. 1996. Air Photo Analysis of Kimberlite Potential, Sudbury Contact Mines Ltd., Twin Lakes, Bucke Township and Lac Baby Properties, Lake Timiskaming District, Ontario-Quebec. In-house report, 47 p.

    Chartre, E. 1997. Magnetometer Survey, Coleman Twp. Project, Grid MR-97-6, Sudbury Contact Mines Ltd. Services Exploration Enr.

    Dighem, 1994. Report #1163, Timiskaming Area Ontario and Quebec, Sudbury Contact Mines Ltd. In House report.

    Lovell, H.L. and Frey, E.D. 1976. Geology of the New Liskeard Area, District of Timiskaming. Ontario Department of Mines Geological Report 144, 34 p. Accompanied by Maps 2300 and 2301, scale l inch to 1/2 mile (1:31 680).

    Veillette, J.J. 1986. Surficial Geology, New Liskeard, Ontario-Quebec. Geological Survey of Canada, Map 1639A, scale 1:100 000.

    Veillette, J.J. and Mcclenaghan, M.B. 1996. Sequence of glacial ice flows in Abitibi- Timiskaming; Implications for mineral exploration and dispersal of calcareous rocks from Hudson Bay Basin, Quebec and Ontario. Geological Survey of Canada, Open File Report 3033, map 1:500 000.

    W.A. HUBACHECK CONSULTANTS LTD.

  • 15

    CERTIFICATE OF QUALIFICATIONS

    I, Raymond J. Knowles, of the City of Etobicoke, in the Province of Ontario, Canada, do hereby certify that:

    1) I am an Exploration Geologist, residing at 79 Thirteenth Street, Etobicoke, Ontario, M8V 3H5, under contract to W. A. Hubacheck Consultants Ltd.,365 Bay Street, Suite 807, Toronto, Ontario.

    2) I am a graduate of the University of Toronto where I received a Bachelor of Science degree in Geology in 1985, and have been practising my profession as an Exploration Geologist continuously since graduation.

    3) I am a Fellow of the Geological Association of Canada, a member of the Canadian Institute of Mining and Metallurgy, The Association of Geoscientists of Ontario and the Prospectors and Developers Association of Canada.

    4) This report is based on personal examination of the property in 1997.

    5) I have no direct interest in the properties or securities of Sudbury Contact Mines Ltd..

    Dated at Toronto, OntarioThis 1st day of February, 1999. Rayrrlond J. Knowles, B.Sc.

    W.A. HUBACHECK CONSULTANTS LTD.

  • Map l

    R.C. Drill Hole LU-97-01, Location Map, scale 1: 2 500

    W.A. HUBACHECK CONSULTANTS LTD.

  • APPENDIX A

    REVERSE CIRCULATION OVERBURDEN DRILL LOGS

    W.A. HUBACHECK CONSULTANTS LTD.

  • W.A.H.UBACHECK CONSULTANTS LTD.TORONTO, ONTARIO. CANADA Y ft l P\

    REVERSE CIRCULATION DRILL HOLE LOG

    r.nw-mArrrnR Ht'*YYi ^^ SKer^onri LOCATION SIS'650 f-fe?t1iroA/ L2-S/2.+5OE. Con VI ci A'f i /Lo-V lo17 ' *-o(t "T

    DRILLER De A ; -S Ln.?lruv~ BIT No. C. B 7/ 3 "*, a BIT FOOTAGE p ̂ vi? . jCflrX^'

    MOVE TO HOLE g ̂ 0-^ = 10 FUoA , I'-'SO -10'- 3o

    DRILL 10 : 3O -Z 1 1O MECHANICAL DOWN TIME

    DRILLING PROBLEMS SUct-oS irA *-.?,,A Ce^l . DATE f"l cir'cK 2.7 /fl 7

    OTHER SHIFT TO

    MOVE TO NEXT HOLE -^-^o - 3 -' "io vrxovrt \o U, VU V TOTAL HOURS

    GEOLOGIST J? St.

    ~7. S-

    ~,.^A. S" tnn^AeS SAMPLER Sr^CC L-e^^T-Sn^, CONTRACT HOURS

    01 /^ ̂ J ^3 J -^^^ — -~j - ———— -

    DEPTH Feet D Metres D

    ;

    r

    5"

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    DESCRIPTIVE LOQ

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    A

  • W.A.H.UBACHECK CONSULTANTS LTD.TORONTO, ONTARIO, CANADA

    REVERSE CIRCULATION DRILL HOLE LOQ

    COMPANY .... ,. HOLE No. C. - *l ~7 -.1

    CONTRACTOR LOCATION

    DRILLER BIT No. BIT FOOTAGE

    MOVE TO HOLE

    DRILL MECHANICAL DOWN TIME

    DRILLING PROBLEMS DATE

    OTHER SHIFT TO

    MOVE TO NEXT HOLE TOTAL HOURS

    GEOLOGIST SAMPLER CONTRACT HOURS

    DEPTH Feet Q Metres Q

    ;

    •if

    -

    GRAPHIC LOO

    •# :-'i'''Av

    Ao'r?i,'i^'-

    W/,

    -

    SAMPLE No.

    Vi

    M43.O

    DESCRIPTIVE LOO

    "2.3,. ?- ^4.o "ST W, So^A- CAo-^,., "\-.\\\

    arY^uC-'vlvVo^ ' "^^ OW* K""'x y*AV

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    1 \ f. - ^l \ \ p*t) COA. O O i O---f^ ^ r" * "T S "T ffY^ ̂ — - **'^" * ̂ ^ . S (VN-4 ^^ ̂ ̂ ^

    l&i- 0,3 1 AS o. 68

    T 0-VA-i W *\ * A- Sw-*^SO\^^^ \l ̂ i - -fr-J,

    •e. 6.0 POW

    •*

    -

  • APPENDIX B

    OVERBURDEN DRILLING MANAGEMENT RESULTS

    W.A. HUBACHECK CONSULTANTS LTD.

  • OVERBURDEN DRILLING MANAGEMENT LIMITED 107-15 CAPELLA COURT, NEPEAN, ONTARIO, K2E 7X1

    TELEPHONE: (613) 226-1771/1774 FAX NO.: (613) 226-8753

    DATA TRANSMITTAL REPORT

    DATE: 23-Apr-97

    ATTENTION: MSSRS. DAVID CHRISTIE 8, RAY KNOWLES

    CLIENT: W.A. HUBACHECK CONSULTANTS LTD. 141 ADELAIDE STREET WEST SUITE 1401 TORONTO ONT. M5H 3L5

    FAX NO.: (416) 364-5384 (office) (705) 643-2393 (field)

    NO. OF PAGES; l

    PROJECT: 217 4427

    FILE NO: H2171APK.WRI

    NO. OF SAMPLES: 4

    THESE SAMPLES WERE PROCESSED FOR:

    to 443O

    VISIBLE GOLD GRAINS KIMBERLITE INDICATORS

    SPECIFICATIONS:HEAVY LIQUID SEPARATION SPECIFIC GRAVITY: 3.2O ALL GOLD GRAINS ISOLATED IN CONICAL VIALS. ALL SAMPLES PICKED FOR INDICATOR MINERAL GRAINS. ALL OTHER SAMPLE FRACTIONS ARE PRESENTLY STORED.

    REMARKS:

    Remy Huneault Laboratory Manager

  • Page l HUBACHECK: PROJECT 217 04/23/97

    OVERBURDEN DRILLING MANAGEMENT LIMITED LABORflTORY SAMPLE LOG

    04/23/97 PROJECT: TOTAL OF FILENAME:

    217 4

    H2171APKSAMPLES. .UR1

    SAMPLE DESCRIPTION

    CLASTS

    SAMPLENUMBER

    217 4427442844294430

    WEIGHT (KILOGRAMS)

    BULKREC'VED

    12.8517.0518.3019.30

    TABLESPLIT

    12.8517.0518.3019.30

    4-2 liCLASTS

    2.306. 905.854.15

    1-2 liCLASTS

    2.503.153.30fa. 90

    TflBLEFEED

    8.057.009.158.25

    S I2E

    CCCc

    )2.0 li

    PERCENTAGE

    V/S

    40407080

    GR

    60603015

    LS

    NANANA5

    OT

    NANAmNA

    MATRIX (1.0

    GRAIN SIZE DISTRIBUTION

    S/U

    USSS

    SD ST CY

    tM, F - -M, F Y -M, F Y Y

    li

    0 COLOUR R

    SAND

    BGBGB6Y

    GCLAY .

    LOCLOCBGY

    CLASS

    TILLSANDSANDSAND

  • Page l HUBftCHECK: PROJECT 217 04/23/97

    04/23/97 PROJECT: TOTAL OF

    217

    OVERBURDEN DRILLING MANAGEMENT LIMITEDLABORATORY SAMPLE LOG

    KIMBERLITE INDICATOR MINERAL COUNTS

    4 SAMPLES

    SAflPLENUMBER

    217 44274428

    TOTAL

    716.9882.7

    4429 11244.44430 1 957.0

    TABLE CONCENTRATE (1.0 li

    M. I. SEPARATION S.-0.25H M. I. TOTAL TOTAL

    LIGHTS MAG NON-MAG

    481.7 207.2 7.4 20. 6477.7 377.4 3.6 24.0767.0 439.7 7.4 30.3416.0 505.8 13.6 21.6

    t grat s)

    G 3.20

    -0.2511

    NANANANA

    0.25 TO0.5 li

    14.416.418.213.0

    0.5 TD1.0 li

    6.27.612.18.6

    KIM COUNT

    GP

    0203

    0.

    GO

    1045

    5 TO 1 li

    DC IM CR

    0 25 00 57 50 13 02 20 0

    1 0.251 0.511 GP 11 1 k1 31 41 5

    TOli

    DC

    0000

    T0TfiL

    KIMs

    32672135

  • Page l HUBACHECK: PROJECT 04/24/97

    KIMBERLITE INDICATOR MINERAL PICKING FOOTNOTES:

    SAMPLE NO; PROJECT: 217

    REMARKS

    4427 SEM checks from 0.5-1.0 mm fraction: 2 orange-red 60 candidates = l GO (Cr-poor negacryst) and l Mn-almandine (returned to sample). IM count nay include several CR not readily differentiable as such. Also picked 4 CR and l GO from 0.25-0.5 mn fraction.

    4428

    4429

    Also picked l pale emerald green low/very low-Cr diopside fro* 0.5-1.0 mm fraction; and l pale emerald green low/very low-Cr diopside and 8 CR fro* 0.25-0.5 ma fraction.

    SEM checks from 0.5-1.0 mm fraction: 5 orange-red GO candidates z 4 GO (Ci poor negacrysts) and l andradite (returned to sample).

  • OVERBURDEN DRILLING MANAGEMENT LIMITED 107-15 CAPELLA COURT, NEPEAN, ONTARIO, K2E 7X1

    TELEPHONE: (&13) 226-1771/1774 FAX NO: (613) 226-8753

    DATA TRANSMITTAL REPORT

    DATE:

    ATTENTION:

    CLIENT:

    NO. OF PAGES:

    PROJECT:

    FILE NO:

    22-Apr-97

    MSSRS. DAVID CHRISTIE 8, RAY KNOWLES

    W.A. HUBACHECK CONSULTANTS LTD. 141 ADELAIDE STREET WEST SUITE 1401 TORONTO ONT. M5H 3L5

    (416) 364-5384 (office) (7O5) 643-2393 (field)

    217

    H2171APR. WR2

    4427 to 443O

    NO. OF SAMPLES:

    NO. OF PANNINGS:

    4

    O

    H. M. C. 3/4 H-63 MICRON-125 MICRON

    REMARKS:

    SENT TO ANALYTICAL LAB.

    Remy Huneau11 Laboratory Manager

  • rpftGE l HUBftCHECK: PROJECT 217

    OVERBURDEN DRILLING MANAGEMENT LIMITED

    GOLD GROIN SUMMARY SHEET

    04/22/97

    H2171APR.WR

    Sample Number of Visible Sold Grains Non-Mag Calculated PPB Visible Gold

    Total Reshaped Modified Pristine

    217 4427442844294430

    Q011

    0011

    0000

    0000

    wei gnt ———————————————————————— Total Reshaped Modified Pri

    * 23.020. 026. 123.6

    00

    253

    00

    253

    0000

    st ine

    0000

    * The NONMflG weight was calculated to be l/ZSOth of the table feed.

  • PAGE l HUBftCHECK: PROJECT 217 04/22/97

    GOLD CLASSIFICATION

    VISIBLE GOLD FROM SHAKING TABLE flND PANNING

    H2171APR.WR2 NUMBER OF GRAINSTOTAL t OF PANNIN6S O ————————————————————

    MEASUREMENT (MICRONS) RESHAPED MODIFIED PRISTINE TOTAL NON CALC V.G.SAMPLE t PANNED ====== ====== ======== ==== MAG ASSflY

    Y/N DIAMETER THICKNESS T P T P T P GMS PPB REMARKS

    2174427 N NO VISIBLE GOLD

    4428 N NO VISIBLE GOLD

    4429 N 50 X 100 15 C l l

    l 26.l 25

    4430 N 25 X 50 B C l l

    l 23.6 3

  • APPENDIX C

    CERTIFICATE OF EXPENDITURES Si ALLOCATION OF COSTS TABLE

    W.A. HUBACHECK CONSULTANTS LTD.

  • 217 REVERSE CIRCULATION DRILLING PROGRAM

    (MARCH, 1997)

    Geologists (includes Project and Contract geologists)TechnicianDrill Contractor (7.5 hrs)Trail and Site PreparationConsultant feesFood and LodgingTruck+SnowmobileGasReproduction

    TOTAL COST OF DRILLINGCOST OF DRILLING PER HOUR (6777.41/7.5 hrs) 903.6547

    SAMPLES (TOTAL = 4)

    Sample pailsShippingSample Processing

    TOTAL COST PER SAMPLE TOTAL COST FOR ALL SAMPLES

    TOTAL COST THIS REPORT

    2.50 each6.885 each

    227.10 each

    236.49 each

    945.57197.93

    3744.25375.001007.41240.00152.3665.0050.00

    6777.41

    10.0027.54

    908.40

    l 194.81

    7972.22

    Claim #

    1211672

    Hole#

    C-97-01

    #of Samples

    4

    Sample Cost @ S236.49 1 sample

    S 1 194.81

    Drilling hours

    7.5

    DrillingCost 903.655/hr

    S 6777.41

    Total Cost Per Hole

    S 7972.22

    Certified by: Date:

    W.A. HUBACHECK CONSULTANTS LTD.

  • Ontario Ministry of Mines

    31M05NE2007 2.19319 COLEMAN

    Declaration of Assessment Work Performed on Mining LandMining Act, Subsection 65(2) and 66(3), R.S.0.1MO

    Transaction Numb* (office use)

    Assessment FHes Research Imaging

    of subsections 65(2) and 66(3) of the Mining Act Under section 8 of the i review the assessment work and correspond with the mining land holder. l Recorder, Ministry of Northern Development and Mines, 6th Floor,

    900

    Instructions: - For work performed on Crown Lands before recording a claim, use form 0240. - Please type or print In ink.

    1. Recorded holder(s) (Attach a list If necessary)Name Client Number

    7o (O* - Telephone Number

    Fax Num

    Name Client Number

    Address Telephone Number

    Fax Number

    2. Type of work performed: Check ( ^ ) and report on only ONE of the following groups for this declaration,

    i—i Geotechnical: prospecting, surveys,, , assays and work under section 18 (regs)

    Physical: drilling, stripping, trenching and associated assays Rehabilitation

    Work ""Te^e^^e c i \rcu\ocVn 6 r- CrU-v H i ^

    Perform** *™ ^hlO&il^f To S^L "OS, R ̂ 9 D*r | Men* l YMT Diy | Mann | Y*w '

    Global Poettlonlng System Data (K available) Township/AreaCoL~^'t'vAA/

    M or G-Plan Number

    Office UseCommodity

    Total S Value ofWork Claimed T c\ 7 2 .

    NTS Reference••— -"-^-i—— *

    Resident Geologist District /^, ifalfi fi/f L fi k*?~j

    Please remember to: - obtain a work permit from the Ministry of Natural Resources as required;- provide proper notice to surface rights holders before starting work;- complete and attach a Statement of Costs, form 0212;- provide a map showing contiguous mining lands that are linked for assigning work;- include two copies of your technical report.

    3. Person or companies who prepared the technical report (Attach a list if necessary)ixJf jw-enrv. . ^o coes

    n US- A . IL, L^ r4, 0 ^ V O^^ ; | ,/J-flfrTelephooe Number

    Address i Fax Number

    NameRECEh/En

    Telephone Number

    Fax NumberAddressMAP f S 1**'•—**^**i --r nj rt; c/v

    Name

    GEOSCtENCF

    Telephone Number

    Address OfFICE Fax Number

    4. Certification by Recorded Holder or Agent

    ' t u 0v i V . r- f--- do hereby certify that l have personal knowledge of the facts set(Print Name)forth In this Declaration of Assessment Work having caused the work to be performed or witnessed the same during or after Its completion and, to the best of my knowledge, the annexed report Is true.

    L—————————————————i--r———————————————-——————————————————————————————————————————————————————————————————————l,.,. ————————;————'——————————————————^DateSignature of R

    Agent's Address

    Holder or A^ntIk .

    Telephone Number Fax Number. fi

    -36 J~^0241 (O2/98)

  • 5. Work to be recorded and distributed. Work can only be assigned to claims that are contiguous (adjoining; to the mining.land where work was performed, at the time work was performed. A map showing the contiguous link must accompany this form. ^ q q ^.QQ^r-/ ________

    Mining Claim Number. Or rf •or* was don* on other eligible mining land, ahow In this column the location number indicated on the claim map.

    eg

    efl

    eg

    1

    2

    3

    4

    5

    6

    7

    8

    9

    10

    11

    12

    13

    14

    15

    TB 7827

    1234567

    1234568

    1911(^5.

    Number of Claim Unlta. For other mining land, fltt hectares.

    16 ha

    12

    2

    3i

    Column Totals

    Value of work performed on thla claim or other mining land.

    526, 825

    0

    S 8, 892

    ^7 ̂ 3-

    t

    7^P

    Value of work applied to this claim.

    N/A

    524,000

    S 4,000

    O

    •" i

    f)

    Value of work assigned to other mining claims.

    S24,000

    0

    0

    D

    .-^

    O

    Bank. Value of work to be distributed at a future date.

    (2.825

    0

    S4.892

    •?97^?

    ^9^2/x K a IV. k^ 0 , do hereby certify that the above work credits are eligible underl.

    subsection 7 (1) of the Assessment Work Regulation 6/96 for assignment to contiguous claims or for application to

    the claim where the work was done.Signature of er or In Writing Date

    /t

    6. Instructions for cutting back credits that are not approved.

    Some of the credits claimed in this declaration may be cut back. Please check ( s ) in the boxes below to show how

    you wish to prioritize the deletion of credits:Od 1. Credits are to be cut back from the Bank first, followed by option 2 or 3 or 4 as indicated. D 2. Credits are to be cut back starting with the claims listed last, working backwards; or D 3. Credits are to be cut back equally over all claims listed in this declaration; or D 4. Credits are to be cut back as prioritized on the attached appendix or as follows (describe):

    Note: If you have not indicated how your credits are to be deleted, credits will be cut back from the Bank first, followed by option number 2 if necessary. ———————..—.——-

    For Office Use OnlyReceived Stamp

    RECEIVEDMAR 1 5

    GEOSCIENCF ASSESSMENT OfFlCE_____.

    Deemed Approved Oat*

    Date Approved

    Date Notification Sent

    Total Value of Credit Approved

    Approved for Recording by Mining Recorder (Signature)

  • Ontario Ministry ofNorthern Developmentand Mines Statement of Costs for Assessment CreditTransaction 'Number (off ice 'use)

    Personal Information collected on this form is obtained under the authority of subsection 6(1) of the Assessment Work Regulation 6/96. Under section 8 of the Mining Act, the Information Is a public record. This information will be used to review the assessment work and correspond with the mining land holder. Questions about this collection should be directed to the Chief Mining Recorder, Ministry of Northern Development and Mines, 6th Floor, 933 Ramsey Lake Road, Sudbury, Ontario, P3E 685.

    Work TypeUnits of Work

    Depending on the type of work, list the number of hours/days worked, metres of drilling, kilo metres of grid line, number of samples, etc.

    Cost Per Unit of work

    Total Cost

    *3 •t. C^om-ftxgT v^ec li a

    l r/Ti't

    Associated Costs (e.g. supplies, mobilization and demobilization).

    SgfcvwoU- O*'t l

    a

    Transportation Costs

    Food and Lodging Costs

    Total Value of Assessment Work

    Calculations of Filing Discounts:

    1. Work filed within two years of performance is claimed at 1000Xo of the above Total Value of Assessment Work.2. If work is filed after two years and up to five years after performance, it can only be claimed at 500Xo of the Total

    Value of Assessment Work. If this situation applies to your claims, use the calculation below:

    TOTAL VALUE OF ASSESSMENT WORK X 0.50 rr Total S value of worked claimed.

    Note:- Work older than 5 years is not eligible for credit.- A recorded holder may be required to verify expenditures claimed in this statement of costs within 45 days of a request for verification and/or correction/clarification. If verification and/or correction/clarification is not made, the Minister may reject all or part of the assessment work submitted.

    Certification verifying costs:

    l, LAl\Q .___ . _ ^ , do hereby certify, that the amounts shown are as accurate as may(please print lull name j" "~

    reasonably be determined and the costs were incurred while conducting assessment work on the lands indicated on

    •ftQ^vcAlate i

    to make this certification.! —---,--. —— .

    the accompanying Declaration of Work form as ________ c\-^vv~ ^—^-—————(recorded holder, agent, or state company position with signing authority)

    l am authorized

    0212 (02/96)

    MAR i 5 1C39GEOSCIENCE ASSESSMENT

    OFFICE_____

    SignatuD

    UM A.Date

  • Ministry of Ministere duNorthern Development Developpement du Nordand Mines et des Mines Ontario

    Geoscience Assessment Office 933 Ramsey Lake Road

    April 15, 1999 6th FloorSudbury, Ontario

    ULLA M. KNOWLES P3E 6B5SUDBURY CONTACT MINES LIMITEDc/o Hubacheck Consultants Ltd. Telephone: (888) 415-9846#807 - 365 Bay Street Fax: (877) 670-1555TORONTO, OntarioM5H 2V1 Visit our website at:

    www.gov.on.ca/MNDM/MINES/LANDS/mlsmnpge.htm

    Dear Sir or Madam: Submission Number: 2.19319

    Status Subject: Transaction Number(s): W9980.00201 Deemed Approval

    We have reviewed your Assessment Work submission with the above noted Transaction Number(s). The attached summary page(s) indicate the results of the review. WE RECOMMEND YOU READ THIS SUMMARY FOR THE DETAILS PERTAINING TO YOUR ASSESSMENT WORK.

    If the status for a transaction is a 45 Day Notice, the summary will outline the reasons for the notice, and any steps you can take to remedy deficiencies. The 90-day deemed approval provision, subsection 6(7) of the Assessment Work Regulation, will no longer be in effect for assessment work which has received a 45 Day Notice. Allowable changes to your credit distribution can be made by contacting the Geoscience Assessment Office within this 45 Day period, otherwise assessment credit will be cut back and distributed as outlined in Section #6 of the Declaration of Assessment work form.

    Please note any revisions must be submitted in DUPLICATE to the Geoscience Assessment Office, by the response date on the summary.

    If you have any questions regarding this correspondence, please contact Steve Beneteau by e-mail at [email protected] or by telephone at (705) 670-5855.

    Yours sincerely,

    ORIGINAL SIGNED BYBlair KiteSupervisor, Geoscience Assessment OfficeMining Lands Section

    Correspondence ID: 13620

    Copy for: Assessment Library

  • Work Report Assessment Results

    Submission Number: 2.19319

    Date Correspondence Sent: April 15, 1999 Assessor: Steve Beneteau

    Transaction First Claim Number NumberW9980.00201 1211672

    Section:16 Drilling POVERB

    Township(s) l Area(s)COLEMAN

    StatusDeemed Approval

    Approval Date

    April 09, 1999

    Correspondence to:Resident Geologist Kirkland Lake, ON

    Assessment Files Library Sudbury, ON

    Recorded Holder(s) and/or Agent(s):ULLA M. KNOWLESSUDBURY CONTACT MINES LIMITEDTORONTO, Ontario

    Page:1

    Correspondence ID: 13620

  • 10 ZONE 17

    to

    2079

    '' E

    frui: iTOWNSHIP

    11212024 - - r . -_ _ 1 ••.••- rx\r-i_——p -~-P- — -'-•r ^- L "———— Lake860491200891

    12122FORJ5TATUS QF LANDS

    ' TO KtTTSON TJ0WNSHIP/MAP

    /" ' ,f, R L.-4-04

    RL406. ..

    Portage Bay

    ra ,* -J

    .306 South \ Pickerel

    Lake

    SYMBOLSBoundary

    Township, Meridian, Baseline

    Road allowance; surveyedshoreline . . . . . . . . . . . . .

    Lot/Concession; surveyed, . . . . . . . . , . . . . .unsmveyed . . . .

    Parcel, surveyed . . . . . . . . . . . . . . . . . .unsurveyed . . . . . . . . . . . . . . , . .

    Rigrn-of-way; road . . . . . . . .railway . . . . . . . . . . .utility . . . , . . . . . . . . . . . . . . . , . . . .

    Reservafion . . . . , . . . . . . . . . . . . . . .

    CliH, Pit, Pile......... . , . ........ . , , ...

    Contour . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .InterpolatedApproximate . . . . . . . . . . . . . . . . . . .Depression. . . . . . . . . . . . . . . . . . . . . . . .

    Control point (horizontal) . . . . . . . . . . , . . .

    Flooded land . . . , . . . . . . . . . . . . . . . . , , . . . . . .

    Mine head frame . . . . . . . . . . . . . . . . . . . . .

    Pipeline (above ground) ..........,, ........

    Railway; single track . . . . . . . . . . . . . . . . . . , , . .double track . . . . . . . . . . . . , . . . . . . . .

    APPLICATION UNDER THE PUBLIC LANDS ACTMWWG ACT (CLAUSE 5O(Bj}

    ' AREAS WITHDRAWN FROM DISPOSITIONMRO- Mining Rights Only

    . SRO - Surface Rights Only M 4 S - Mining and Surface Rights

    Ministry of Ministry of Natural Northern Development

    and Mines

    FOR STATUS OF L

    - '- ^

    20 REFER Tt) KITTSON TOWNSHIP MAP

    ..'; Crowrock (fJ*, Bay i' p*" SEC 35 1990 W-L-^/SSNER 17/0996

    i

    W-L-5^96 NER SEPT 17/96 SRO ^ORFSTRY AND F--

    HER SEPT 17/96 M.S PREVENT ADV EP j.\ fr:

    Resourcesabandoned . . . . . . . . . . . . . . . . . , . . . . . . . . . . . . . —— —

    Road; highway, county, township access trail, bush

    Shoreline (original)

    Transmission line

    Wooded area . .

    INDEX TO LAND DISPOSITION .., AREA DEEMED IN NEED OF PROTECTION BY THE CROWN AND WILL W j REMAIN WITHDRAWN INDEFINITELY.

    l^SEC.35—W-fc-20/97 NF Pi'C.I2/97 MRO l

    NOTES

    "THIS MAP SHOWS THE APPROXIMATE LOCATION OF THE BOUNDARIES OF THE AREA WHICH IS THE

    M.N.R. ADMINISTRATIVE DISTRICT

    TEMAGAMIMINING DIVISION

    PLAN

    G-3418TOWNSHIP

    rLOOniNG ON MJN T RE,2L RIVER 'U CONTOUR ELEVAT'ON27737m Bv ONTARIO HVDRQ FROM HOUND CHU T E TOTC'A'N OF LATCHFORD. L.O.7151THIS TOWNSHIP FALLS WITHIN THE TEMAGAMI

    COMPREHENSIVE PLANING AREA. SPECIAL WORKING CONDITIONS MAY APPLY TO EXPLORATION ACTIVITIES. FOR MORE DETAILS PLEASE CONTACT:

    DISTRICT MANAGER, NORTH BAY DISTRICT MINISTRY. NATURAL RESOURCES

    LARDER l AKF SUBJECT OF CURRENTLAKUtK LAKt LmGATION THE EXACTTITLES/REGISTRY DIVISION LOCAT|ON WILL BECOLEMAN TIMISKAMING SHOWN FOLLOWING

    CONFIRMATION BY THE PARTIES TO THE ACTION."BRIGSTOCKE DISPOSITION OF CROWN LANDS

    ^ ,.Black -.'' /- J Bay/

    Little

    (Animo NipissingContour Interval 10 Metre*

    . 20

    Surfoc* RigJitt Wiifidrcrwn under 5ec. 36.

    lifling Ac) R.S.O. 1980. ORDER NO. W-OI/9I/ONT

    (Trans Canada Pipeline Rigti! of Way and Suffer

    Zone particularly 4O.2S meters or t'62 ft on etfher tide of centre line of right of way}

    10

    Map base and land disposition drafting by Surveys and Mapping Branch, Ministry of Natural Resources.

    The disposition of land, location of lot fabric and parcel boundaries on this index was compiled for administrative purposes only.

    PatentSurface 4 Mining Rights ............ ...........

    ,,Surface Rights Only . Mining Rights Only.

    LeaseSurface 8 Mining Rights Surface Rights Only Mining Rights Only

    Licence of Occupation ..... ........,............... .... ..... .T

    Order-in-Cc'!;ncil....,....... ............, .................... .OC

    Cancelled ................... .................... ........ ®

    Reservation......... ... ......................,....... ...... .^}

    Sand S Gravel............................................ , ... O

    NOTICE OF FORESTRY ACTIVITYTHIS TOWNSHIP t AREA FALLS WITHIN THE ____

    --^'^f;ilrlOR̂ 1J^NA CEMENT JJNIT__________^ -- AND MAY BE SUBJECT TO FORESTRY OPERATIONS. THE MNR UNIT FORESTER FOR THIS AREA CAN BE CONTACTED AT;

    P O. BOX 38 L AKESHORE DRIVE "EM/SGAMI, ON'. POH 2HO 705-569-3622

    geology rcfcrcncc-COBALT

    THE INFORMATION THA", APPEARS ON THIS MAP HAS BEEN COMPILED FROM VARIOUS SOURCES. AND ACCURACY IS NOT GUARANTEED THOSE WISHING TO STAKE MIN ING CLAIMS SHOULD CON SULT WITH THE MINING ^ RECORDER, MINISTRY OF * NORTHERN DEVELOP o MENT AND MINES, FOR AD o DITIONAL INFORMATION j. ON THE STATUS OF THE LANDS SHOWN HEREON

    l

    4059 O Doom E

    79"48'

    lo ———

    ZONE 17

    30"40 50 70

    "8090

    COPY OF THIS ARCHIVED NOV

    Li/CAUAUG 2

    APCHIVrO .'r'

    RESIDENT GEO.

    COPY OF THIS MYLAR ARCHIVED AUG 29/91

    90

    D' l

    10 20

    oom

    H5"D

    31M05NE2007 2.19319 COLEMAN 200


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