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1 REPORT ON'.' GEOPHYSCAL SURVEYS ARGOR EXPLORATONS LTD. KESAGAM LAKE AREA ON!'. ONT eNWMe YESTERDAY RVER 030 NTRODUCTON Geophyscal surveys consstng con.~8tng ofelectromagnetc and magnetc were carred out over a prevously cut grd of lnes n the Kesagam Lake Area of Ontaro. The ~e object of the survey was to locate on thecground electromagnetc anomales outlned n an arborne survey. 'Phe Tte surveys completed are part of Project Terrane. The followng report and accompanynglftap. maps deser-be descrbe the results of the surveys. PROPERTY AND LOCATON The area surveyed s part of a Oonqesson Concesson held n the Kesagam Lake area approxmately9q 90 mles north of Cochrane and some 60 mles.t.outh south -of Jallaes Jaftes Bay. The property s accessble by sk~equpped sk-equpped arcraft; from Cochrane or South Porcupne.

2 - 2 - PROSPECTNG GEOPHYSCS LTD. 4l GEOLOGY The area s unsurveyed and publshed geologcal nformaton s scarce. T!he rocks are classed as Archean Age and nclude acd ntrusves and grantzed sedmentary and volcanc rocks. Ths s a general classfcaton but prevous work carred out on ths project may be of some assstance n nterpretng the geology of the area surveyed. SURVEY METHODS AND NSTRUMENT DATA The geophyscal surveys were carred out over a prevously cut grd wth lnes n a north-south drecton at 400 foot ntervals. The orgnal plan was to use an EH-17 horzontal loop electromagnetc unt wth a 400 foot col nterval to obtan maxmum penetraton. However due to nstrument trouble only the extenson of lnes &H and 16W was com pleted wth ths nstrument fhe balance of the survey was completed wth a Ronka Mark V unt wth a 300 foot col nterval. The EM-17 was also used on lne 12W and SW where a weak conductor was ndcated wth the Ronka unt. The readngs obtaned on both unts were roughly

3 PROSPECTNG GEOPHYSCS LTD the same and thus t was felt ~nat that the BOnka Konka would gve suffcent penetraton. n the horzontal loop pype frype of survey both the n-phase and out-of-phase components of the seeondary secondary feld are measured whose specal charac.t~rstcs characterstcs make possble a farly accurate evaluaton ot;the of -the conductvty. A conductor caused by sulphdemnerallza'ton: mneralzaton wll produce a curve gong from postve readngs through zero to negatve and back agan to postve. Bo~h Bol&h the n-phase and out-of-phase readngs show. the same general curve. The rato between the n-phase and out-of-phase readngs over a conductor s an ndcaton of theconductvlty conductvty of the body. A good conductor would cause a greater devaton of the n-phase component component than.the out-of-phase component. The opposte s true of a poor conductor. The magnetc readngs were taken wth a Sharpe MF-l fluxgate magnetometer measurng the varatons of the vertcal component of the earth*s earth's magnetc feld* feld. Readngs were plotted as gammas on the accompanyng maps after correcton for durnal varaton.

4 PROSPECTNG GEOPHYSCS LTD. RESULTS OF THE GEOPHYSCAL SURVEYS AND NTERPRETATON The results of the electromagnetc and magnetc surveys are plotted on separate maps accompanyng ths report. The conductors are also shown on the magnetc map to ad n the nterpretaton. The magnetc survey dd not cover the entre grd but was largely confned to the area of the conductve zones. The electromagnetc survey outlned several con ductve zones generally trendng n an east-west drecton The major conductve area s n the northwest part of the grd where there are a seres of more'orges* parallel conductors rangng n length from 400 feet to 1600 feet. n addton to these there s a very strong conductve zone on the extenson of lnes 8t and l6lt to the south. The readngs here show ratos as hgh as 9:1 and from the ntensty of the readngs the depth of overburden s not too great. A bref descrpton of the conductve zones follows and the nterpretaton s based on geophyscs only. ' -*. s A ZONE Ths zone corresponds to arborne anomaly *Vn and

5 !' \ PROSPECTNG GEOPHYSCS LTD. shows as a very strong conductor on lnea lnes 8W Stf and l6w. 16W. On lne 8W the conductor has an approxmate wdth of 90 feet but s narrower on lne 16W. The dp appears to be nearly vertcal. The ntermedate lne l2w 12W dd not pck up the zone whch s qute surprsng but t s possble the lne has not been extended far enough. The conductor has a concdent magnetc anomaly and strangely enough the hghest magnetc readngs are on lne 12W. Another magnetc anomaly shows on the same lne to the south but the survey would need to be extended to nterpret the magnetcs. However the concdent magnetcs wth the conductor strongly suggests the presence of sulphdes contanng pyrrhotte. B ZONE Ths s another strong conductve zone that has a length of approxmately 1600 feet and would correspond : :! j to arborne anomaly "Dn. "D". The ratos are qute good especally on lnes 24W 2SW 28W and 32W and the dp s to the south. The conductor shows a wdth of 25 to 40 feet n the central porton and becomes narrower at both /

6 1-=====\1=' =--==."-====~"-==-'C~~=o--==--==_==--==_====================jf== PROSPECTNG GEOPHYSCS L LTD. TO extremtes. There are some slght responses to the west that mght ndcate an extenson n ths drecton but the magnetcs do not corroborate ths. The conductor les on the north flank of a rather rregular magnetc anomaly whch complcates the pcture somewhat. However t does appear that the magnetc read- ngs are hgher over the conductor whch suggests that the conductor may represent sulphde mneralzaton. C ZONE Ths s a weaker conductor east of "Bft MBn zone that could possbly be the faulted extenson of "Bt "B" zone. '!he The magnetcs suggest ths possblty although agan the magnetcs are complcated by a north strkng magnetc zone along lne SW. T-he weak conductvty here taay be zone along lne BW. ~he weak conductvty here may be due to greater overburden although ths conductor was checked wth the EM-? EM-1? wth a 400 foot col nterval and the readngs were almost dentcal. f the overburden was deep the readngs should have been hgher wth the 400 foot nterval. t s more lkely that t s a weak zone.

7 =====\\===-=_"-_=-= ===-:-'_"=07~ -=c-_-""' = - -== = = =_ ==_ ========_ ==_==_=_====_= =_ ="' ==*=== PROSPECTNG GEOPHYSCS LTD D ZONE Ths zone s to the north and east of "C" zone and shows a hgher conductvty. t may extend further east but the survey dd not cover ths area. Ths was apparently not detected n the arborne survey so t may be a rather short zone. Both "Cn n and "D" WD" zones show a relatvely narrow wdth. There s no magnetc anomaly assocated wth ths conductve zone but t probably has the same cause as "Bff "B" and "C" zones as they appear to be en echelon zones. E ZONE Ths s a short zone n the northwest corner of the grd and s somewhat smlar to "D" ndn zone n that t has no magnetcs assocated wth t. OTHER ZONES There are a number of one lne conductve responses but t s dffcult to determne ther Sgnfcance sgnfcance wthout more detaled surveys. The most mportant appears to be the one on the south extenson of lne 36E. Ths appears to have a concdent magnetc hgh and the :.\. l [ ~-..1 ==-::==9t=---="~~=--"=~-o-"~C: --= ====================================~t==

8 ~/ \ 1 - s - PROSPECTNG PROSPECT1NG GEOPHYSCS L LTD. TO. ~========F=~===~=-'=-=====--=---=--=--=_C_====~=-=---====================~==~ ================_~=.~ - g -! :1 : :1 'J ~ conductvty s qute strong. The magnetc map s somewhat complex and a lttle dffcult to nterpret as the coverage s somewhat lmted. The conductve zones n the northwest corner of the grd...! 1/ '! :! l L are all n the vcnty of an rregular magnetc anomaly that extends off the grd to the north. Ths s agan complcated by what appears to be two north trendng magnetc anomales on lnes aw SW and 44W. These may represent north strkng basc dykes. The south extenson of lnes 8W #W and l6w 16W also show areas of above normal magnetc readngs and ths may be part of the magnetc complex to the north but more work s necessary to nterpret ths. n contrast to the magnetc readngs n ths western area the readngs to the east are unformly low only broken by small magnetc lows. Jhs Ths suggests a dfferent rock type unless the bedrock s very deep but ths seems unlkely. t s also sgnfcant that there are no con- ductve responses n ths area. t s possble that geologcal nformaton and ar- borne magnetc data avalable may help n makng a more accurate nterpretaton of the ground magnetc survey_ survey. j

9 r --" PROSPECTNG GEOPHYSCS LTD CONCLUSONS AND RECOMMENDATONS The ground geophyscal surveys outlned several conductve zones of whch at least two have a good chance of representng sulphdes on the prelmnary nterpretaton from the geophyscal data. A more accurate nterpreta- l :!: ' :! ' ton can probably be made by correlatng the ground geophyscs wth any avalable geologcal data and the arborne data. Damond drllng s recommended for "An "A" and "B" zones and further nvestgaton should be made on the response on the south extenson of lne 36E. t seems lkely that all the conductors may be smlar n the northwest corner and thus ther mportance wll depend largely on the results of the nvestgaton of Zone "B". rt. f ntal results are encouragng detal aurv.ya lurvtys are recommended n the vcnty of the one lne conductors. Respectfully submtted PROSPECTNG GEOPHYSCS LTD. : '! : : : J =======:-o:;r* -=-=-=-'==-===== Montreal Que. February ann P. Eng 1 " :