GEOPHYSICAL REPORT /* ON A MAGNETOMETER SURVEY OF THE

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1 53C13SE SETTING NET LAKE 0 10 GEOPHYSICAL REPORT /* l ON A MAGNETOMETER SURVEY OF THE VANTREAL RESOURCES MOLYBDENUM PROSPECT SETTING NET LAKE AREA RED LAKE MINING DIVISION ONTARIO NTS:53-C-13 BY GEOPHYSICAL ENGINEERING LIMITED SUITE 4900, TORONTO-DOMINION CENTRE TORONTO, ONTARIO NOVEMBER 24, 1977 J, A, KELLY, P, ENG,

2 PROPERTY (a) N. f Claims (b) Recrd Numbers (c) Status KRL incl., KRL incl., KRL incl., KRL incl., KRL incl., KRL incl. - all claims are believed t be in gd standing t at least August, LOCATION (a) N.T.S C-12 (b) Lat '30" N, Lng '30" W (c) Gegraphic Ref. - nrth side f Setting Net Lake, 142 miles N 04 0 E f Red Lake. (d) Mining Divisin - Red Lake (e) Claim Sheet Ref. - N Setting Net Lake. 3. ACCESS (a) Summer (b) Winter. - via flat-equipped aircraft frm Red Lake, - via aircraft r via winter tractr rad 70 miles frm the end f the all-weather rad between Red Lake and Berens River. 4. OWNERSHIP The claims are held under ptin by Vantreal Resurces Ltd., 1175 West 15th Street, Nrth Vancuver, B.C.

3 - 2 - HISTORY OF EXPLORATION ' Fllwing discvery f mlybdenum mineralizatin in 1968, Minrex Limited and Cnwest Explratin Cmpany Limited explred the mineralized zne by gelgical and magnetmeter surveys, sampling f test pits, and diamnd drilling. Minrex (Asbests Crp.) drilled three shrt packsack hles and Cnwest carried ut 3,550 feet f NQ drilling in 7 hles. The area has been mapped at a scale f l inch = 1/4 mile by the O.D.M. 6. GEOLOGY The prperty is underlain by the Setting Net Lake Stck, a prphyritic grandirite and quartz mnznite intrusive 3 miles lng nrthwestward and up t 1.5 miles wide at its nrthern end. The stck intrudes a tightly flded and fliated sequence f Archean metavlcanics and metasediments trending nrthwesterly. 7. MAGNETOMETER SURVEY (a) Purpse - t delimit the cntacts f the grandirite stck, trace and/r utline crss-cutting dykes r large inclusins f cuntry rck and t determine whether r nt a mlybdenitebearing fracture zne within the stck exhibits an anmalus magnetic pattern which might guide explratin.

4 (b) Instrument - a McPhar MF-1 fluxgate magnetmeter. This instrument measures the earth's vertical magnetic field and is sensitive within a range f -20 gammas. (c) Survey Grid - nrth-suth lines spaced at 400 ft intervals were cut, chained and picketed at 100 ft intervals in the central and western prtins f the claim area. The eastern prtin f the claim area which cvers the nrtheastern margin f the Setting Net Lake Stck was cvered by east-west lines cut at 400 ft intervals. These lines were als chained and picketed at 100 ft intervals. (d) Prce-lure - readings were taken at 50 ft statins n all base lines, crss lines and tie lines. A ttal f 3,434 statins were read. These readings were then crrected fr diurnal variatins using a crrectin curve cnstructed frm hurly readings taken at a series f fixed base statins established fr this purpse. (e) Data Presentatin - crrected readings were pltted n a line drawn at a scale f l inch feet and cntured at an interval f 100 gammas. The cntured survey plan is attached t this reprt.

5 - 4 - ) Results and Interpretatin The granitic rcks f the Setting Net Lake Stck exhibit a flat, generally featureless magnetic pattern with a magnetic relief f 300 gammas. Magnetic highs f 1,000 t 30,000 gammas surrund the stck, prbably reflecting the cntact effects f the stck n the surrunding metavlcanics, metasediments, and irn frmatin. O.D.M. preliminary Map N. 539 (Ayres, 1970) shws the east bundary f the stck as a fault cntact striking abut N20 0 W. This feature appears t be delimited by the linear magnetic features striking nrthwest thrugh claims KRL , , , and KRL The magnetic lw in the nrtheast prtin f KRL may be underlain by a granite apphysis but this is uncertain due t the lack f any utcrp evidence in the general area. Anther nrthwest-trending fault, shwn n the gelgical map (Ayres, p.cit.) t be cutting and displacing the stck in the nrth-central claim area, is nt readily apparent n the magnetic map. Its lcatin might be apprximated by drawing a line jining the magnetic highs in nrtheast KRL , nrth-central KRL , suthwest KRL , and eastern KRL The target area, the widespread zne f mlybdenitebearing fractures, exhibits n magnetic features which culd be used t guide further explratin.

6 CONCLUSIONS (i ) The magnetmeter survey has defined the area underlain by favrable granitic hst rcks. (ii) The mlybdenum-bearing fracture zne, currently being explred, exhibits n discernable magnetic features which might serve t guide explratin drilling. Respectfully submitted, GEOPHYSICAL ENGINEERING LIMITED JAK/hmt J A, Kelly, P. Eng., Senir Gelgist

7 GEOPHYSICAL - GEOLOGIC TECHNICAL DATA 53CI3SE SETTING NET LAKE 900 TO BE ATTACHED AS AN APPENDIX TO TECHNICAL REPORT FACTS SHOWN HERE NEED NOT BE REPEATED IN REPORT TECHNICAL REPORT MUST CONTAIN INTERPRETATION. CONCLUSIONS ETC. i a * li Twnship nr AT- Area f Settincf Net Lake claim hnirw(s) K. Bernier, G. Desmeules, Marcel Cl M. Leahey, J. R. Lill Authr nf Reprt J. A. Kelly Address P.O. Bx 49, Trnt-Dminin Pnfr'*, T^** Cvering Dates "f Survy Ttal Miles nf I.inp rut (linccutting t ffice) SPECIAL PROVISIONS DAYS CREDITS REQUESTED ^^,,^,1 per daim F.WtrAmapnptir ENTER 40 days (includes line cutting) fr first Magnetmeter is survey Radjnmpirjr ENTER 20 days fr each -Other additinal survey using fi lnmral same grid. fjpnrhprmraj, AIRBORNE CREDITS (Special prvisin credits d nt apply t airbrne surveys) Magnetmeter F.lprtrnmafrnetir Rarlinmptrir (enter days per claim) s DATE- Jan. 16, 1978;if;NATT!RF,' /f^^h'' latffht f Repalrt r Agent PROJECTS SECTION ' G Res. Gel. Onalifiratins CX.(.3 Previnus Surveys ChprkeH hy flare GEOT,OnirAT,HRANrH Apprved hy Hate r.rot nr.ir A T K R A MP H Apprved hy d a tp MINING CLAIMS TRAVERSED List numerically r (prefix) " (number) " KRL t/ ^ KRL t. *~ KRL ^ *. VOT O 0 1 OOC ts ^^ J\ZvLi JpXJjy " "' " I\Zuj J y i fl ij Q KRL 483^34 l/ - KR^ *- - KRL ^ - KR^ ^ SRL * - W* 4B ^ 1 ^ C ij KRL ' V "" KRL 4,5A882...^... ' KJRL ^ ~ KJRL A50884 ^ ' KRL t/ KRL r *" KRL /3 * KRL * KRL y. TOTAI.n.ATMS 3 1,- *SEE ATTAJ5.I46I-. fihtrt

8 Shw instrument technical data in each space fr type f survey submitted r indicate "nt applicable" GEOPHYSICAL TECHNICAL DATA GROUND SURVEYS Number f Statins 3,434 Number f Readings Statin interval 50 f t. Line spacing 400 ft. Prfile scale r Cntur intervals 100 gamma. ^^ ^ (specify fr each type f survey) MAGNETIC Instrument McPhar MF-1 Fluxgate Magnetmeter ^ ^^ -- Accuracy - Scale mutant W * M 20 gammas Diurnal crrectin, methd^crrectin curve cnstructed frm re-reading a series f base statins Line 12+OQE at 19+nns ^, ELECTROMAGNETIC Instrument -^^^ Cil cnfiguratin. Cil separatin. Accuracy ^ ^- Methd: O F ixed transmitter O Sht back d In line D Parallel line Frequency^^ ^^ ^^. -^^^... ^^-^^ ^^..^^^^ -^ ^ (specify V.L.F. statin) Parameters measured. GRAVITY Instrument. Scale cnstant. Crrectins made. Base statin value and lcatin. Elevatin accuracy- ^^^^ ^^ INDUCED POLARIZATION - RESISTIVITY Instrument^ -^ ^ ^^ Time dmain Frequency dmain. Frequency Range^ ^-.^ Pwer ^-^^^^ ^^ - ^.^^^-^^- - Electrde array-. Electrde spacing- Type f electrde,

9 MINING CLAIMS TRAVERSED ^ KRL KRL ^ -KRL ^ - KRL KRL /2- - KRL t/ ~ KRL *^ /3 ~ KRL / KRL 50391^

10 Nrth Trut Lake Area-M ' 93? 30' 52052'30' 52 AREA OF SETTING NET LAKE DISTRICT OF KENORA PATRICIA PORTION RED LAKE MINING DIVISION SCALE: l-inch ri 4O CHAINS LEGEND 153^ ^f K- R-ItiV r 5!" ^"32 J M/^-g ;-. '.... ^??L,^ ^ :\^ij' :'y.^-y^'' ^-^22-^:.". sftd'.'.'x.'ft 51 PATENTED LAND CROWN LAND SALE LEASES LOCATED LAND LICENSE OF OCCUPATION MINING RIGHTS ONLY SURFACE RIGHTS ONLY ROADS IMPROVED ROADS C.S. 3?0// X /*344/ ' KING'S HIGHWAYS RAILWAYS POWER LINES MARSH OR MUSKEG MINES CANCELLED c. CJ l Q. **XfJn j ruuuz ' *7*^7liTinTirfc^~'lT7-~~.T?T 49' in GO cu i O* NOTES 400* Surface Rights Reservatin alng the shres f all lakes and rivers. CO O) j5039k ^3*i50Dp60L \ l "^T30 ^n u m uiii T. " " O) "D -Q. 341, [ \ l ' l 50674# l 0 ' \ \ \ V ' " \ I l *r*"- ' -J.,** l l 1 ^ "06744 ' ' k IKRL~ i K'HL "l~krr ~l rk K ^ i t i \ V l 484I73 4S4I72 n ufttf \ 48' 5 ~"~KRL \T~ KRL \, KRL l KRL l KRL i KRL Setting \,488I ' DATE OF ISSUE JAN SURVEYS AND MAPPING C. 46 NATIONAL TOPOGRAPHIC SERIES 53 C 13 Bb K * 53C13SE SETTING NET LAKE ' 42' 41' 40' 39' 38' 37' Setting Net Creek Area - M ' 34' 33' 32 31' * 52045' PLAN NO. M.2I99 ONTARIO MINISTRY OF NATURAL RESOURCES SURVEYS AND MAPPING BRANCH

KRL450884 KRL450885 KRL 503732 KRL5OOO55 KRL5OO052 KRL 500053 r 0 KRL 483435 KRL500054 KRL 483437 KRL 483434 KRL 483438 KRL483439 KRL 483442 KRL 483441 - cs COS 44+OOS LOCATION MAP

11 KRL KRL KRL KRL5OOO55 KRL5OO052 KRL r 0 KRL KRL KRL KRL KRL KRL KRL KRL cs COS 44+OOS LOCATION MAP 94*00' Scale l 250,OOO "* 0 KRL /(O 0 KRL KRL KRL L28+OOS KRL KRL KRL 5O39IO KRL KRL KRL KRL L A K E's

KRL 391340 KRL450884 KRL450885 KRL 500055 KRL50O052 KRL 391339 KRL 500053 KRL 483435 KRL500054 KRL 483437 KRL 391 335 KRL39I338 KRL 483434 KRL 391336 KRL 391337 KRL 483438 KRL 483436 KRL483439 KRL

12 KRL KRL KRL KRL KRL50O052 KRL KRL KRL KRL KRL KRL KRL39I338 KRL KRL KRL KRL KRL KRL KRL KRL INSTRUMENT OPERATOR Shrpes MF-I Magnetmeter. W.R.Marin A : Base Statin CONTOUR INTERVALS 100 Gammas 1000 Gammas 5000 Gammas J.A. KELLY P. Eng. Nvember 28, MAGNETOMETER SURVEY OF THE M PROSPECT SETTING NET LAKE PROJECT DISTRICT OF KENORA PROVINCE OF ONTARIO N FOR VANTREAL RESOURCES GEOPHYSICAL BY ENGINEERING LTD METRES FEET Drawn by -C.E.K. Checktd by DATE NOV NTS. 53 C/ B JOB N. M68 Dwg. 1 KRL "KRL ,00 KRL KRL KRL 500O56 L28+OOS KRL KRL KRL 5O0060 KRL KRL KRL 5O39II KRL KRL KRL KRL C13SE SETTING NET LAKE 210 DATE REVISION CHECKED

Toronto, Ontario November 16, This report may not be reproduced, in whole or in part, without the written permission of Derry, Michener S Booth.

13 2.1354 L ITTLE 010 GEOPHYSICAL SURVEYS, LITTLE TOWNSHIP CLAIM GROUP OB-F TIMMINS AREA PORCUPINE MINING DIVISION, ONTARIO Toronto, Ontario November 16, 1973 This report may not be reproduced, in whole