Exploration on Claim , Lot 3, Con 5 and N ½ of N ½ Lot 3, Con 4, Sifton Tp, Kenora Mining District, Ontario.

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1 Exploration on Claim , Lot 3, Con 5 and N ½ of N ½ Lot 3, Con 4, Sifton Tp, Kenora Mining District, Ontario. For claimholder Colin Neilson, RR#1 Stratton ON P0W 1N0 NTS 52H/02 NW Bounded by UTM coordinates (NAD 83 Zone 15U): & East; & North By: Kevin R. Kivi, P.Geo. 17 November 2011 KIVI Geoscience Inc. 307 Euclid Ave., Suite # 463, Thunder Bay ON P7E 6G6 CANADA Office: Phone: (604) Fax: (604) Cell: (807) kivik@shawcable.com 1

2 TABLE OF CONTENTS Introduction... 3 Location and Access... 3 Property... 4 Previous Work... 6 Property Geology... 6 Trail Cutting, Stripping and Prospecting... 7 Personnel Conclusions and Recommendations Bibiliography Certificate of Author LIST OF FIGURES Figure 1. Property Map... 3 Figure 2: Claim Map from CLAIMaps III Website, November 16, Figure 3: Claim Map showing private land Figure 4: Sampling, stripping, and prospecting sketch of Claim Figure 5: Areas with Outcrop sketch of Claim Figure 6: Rock Sample Locations on Claim Figure 7: Rock Types on Resistivity for Claim Figure 8: Rock Types on Second Derivative MAG for Claim LIST OF TABLES Table 1: Claim List....4 Table 2: Rock Samples collected during prospecting and mapping.. 10 Table 3: Exploration Personnel

3 Introduction Colin Noble Neilson holds 100% in claim K , which is located on Lot 3, Con 5 and N ½ of N ½ Lot 3, Con 4, Sifton Tp, Kenora Mining District, Ontario. Prospecting and stripping was completed on the claim in 2011, and rock samples were submitted to KIVI Geoscience Inc for description, GIS compilation, and reporting. Location and Access Claim K is located in Sifton Township of the Kenora Mining District, in the Province of Ontario. The area is located northwest of Emo, Ontario, and is accessible from Highway 71, then west along Highway 600 approximately 21 km then north on Splitrock Road approximately 3 km. Claim is accessible by truck and ATV. The backhoe was floated in by a lowbed from Emo to the property. A skidder was also located to the site but not used to date. Figure 1. Property Map. 3

4 Property Colin Noble Neilson holds 100% of Claim K (Table 1 and Figure 2). Table 1: Claim List. KENORA Mining Division NEILSON, COLIN NOBLE Township/Area Claim Number Recording Date Claim Due Date Status Percent Option SIFTON Nov Nov-19 A 100% $4,000 Work Required Figure 2: Claim Map from CLAIMaps III Website, November 16, The local municipal office confirmed that the claim is Crown Land, which is contrary to the CLAIMaps III website that shows mineral rights only for a portion of the claim. There is a small 3 acre parcel of land owned by the Ministry of Transportation (an old run out gravel pit) which was not prospected. The rest of Lot 3, Con 5 Sifton is crown land. 4

5 Figure 3: Claim Map showing private land. 5

6 Previous Work Mineral exploration in the Rainy River area dates back to 1930s by individual prospectors. Local landowners have also reported exploration work on private land, where there is no public record Anomalous copper on west shore of Off Lake, and subsequent exploration by Noranda Exploration Company, which included mapping, geophysics and diamond drilling International Nickel Company of Canada Limited conducted airborne geophysics and ground geophysics over a large portion of the Rainy River Greenstone belt Hudson Bay Exploration and Development carried out airborne geophysical surveys, followed by claim staking and ground geophysics. In 1973 Hudson Bay drilled 54 holes to test 42 EM conductors Interest west of Finland was generated with release of OGS Map P. 3140, Gold Grains in Rotosonic Drill Core and Surface Samples ( ), by Bajc (1991a). This lead Mingold to stake 85 claims and option patented land from 12 landowners in Richardson, Tait, Patullo, and Sifton Tp. In 1989 and 1990 Mingold conducted glacial drift sampling, backhoe sampling and RC drilling. Results were inconclusive s Nuinsco discovered the 17 Gold Zone in 1993, and the 34 Zone in 1995 with reverse circulation drilling. Between they discovered the 433 Zone, and in 1999 targeted the 34 zone and a magnetic-em conductor in Tait Tp s Nuinsco conducted audio magneto telluric (MT) geophysical surveys in many areas and tested anomalies near the 34 zone, Dearlock, Brown Road, S of Pinewood River and in Shenston Tp. Massive graphite was intersected at Dearlock, heavy disseminated sulphide at Kereliuk, and narrow massive sulphides at Marr Rd. In 2004, eight diamond drill holes for m were completed on the 34 zone. Currently Rainy River Resources is well funded to conduct a dual-focused drilling program on the Rainy River Gold Project consisting of: 1) definition diamond drilling of the main gold resources in preparation for scoping and prefeasibility studies, and 2) selective diamond drill testing of high-priority gold targets defined primarily by RC drilling within the large gold system centred in Richardson Township. Property Geology Claim is located in the western part of the Rainy River Greenstone belt, which is part of the Archean Wabigoon Subprovince of the Canadian Shield, a 900km long E-W volcanicsedimentary belt, which is cut by the crustal scale Quetico Fault, which is interpreted to extend south of the claim. Geology of the Rainy River Greenstone Belt (RRGB) is poorly understood due to limited outcrop exposure due to thick glacial cover. The RRGB is bound by the Sabaskong Batholith in 6

7 the north and Rainy Lake Batholithic complex to the east. Regional metamorphic grade is greenschist to lower amphibolites, and in areas near granitic intrusions metamorphic grade increases from amphibolites to anatexis. Claim is underlain by granite, altered granite, quartz diorite, aplite and rhyolite with minor pyrite based on stripping and sampling during this exploration program. Trail Cutting, Stripping and Prospecting Work on claim included trail cutting, prospecting, and mechanical stripping using a backhoe which is described in the following letter from Colin Neilson to the author of this report: This 10 unit claim is bordered on the north and east sides by municipal roads. A mature upland mixed wood forest of primarily poplar, jack pine, spruce, balsam, birch and balm covers most of the claim except for an approximate 35 ha area of recent (5yr) old timber harvest. As well, there are numerous selective harvest strips on the rocky sites from about 15 years ago. Both harvest areas are located in the central portion of this claim. There are lowland areas as well. A backhoe was brought in to complete some stripping to supplement other sampling procedures. Work Report Date June 17, 2011 July 12, 2011 Sept. 14, 2011 Sept. 20, 2011 Nov. 7, 2011 Nov. 8, 2011 Nov. 10, 2011 Activity Prospect while walking perimeter of claim to check lines and posts. Scouting, general prospecting and sampling (Samples 1-5) Travel to determine potential areas for backhoe work and collect samples (samples 6-9) Float backhoe in, discuss work and locate potential sites Travel to claim to finish backhoe stripping. Prospector and 2 helpers.(samples 10-14) Take samples (15-18), then select final samples (Prospector and Helper) and drop off at Purolator in Emo. All samples sent to KGI. Thunder Bay Ontario Prepare field work maps and report Several rock samples were received by KGI on November 12, which are described in Table 2 of this report. Sample locations are recorded using a Garmin GPS using datum NAD83, Zone 15U by the prospector, as shown in Figure 3. 7

8 Figure 4: Sampling, stripping, and prospecting sketch of Claim

9 Figure 5: Areas with Outcrop sketch of Claim

10 Table 2: Rock Samples collected during prospecting and mapping. Sample_ID E_NAD83_15U N_NAD83_15U Rock_Name Description N Quartz Diorite Fine grained grey quartz diorite with 1 cm vein of white quartz and pink garnet N Granite Leucocratic pink, weakly foliated, with 10% muscovite and biotite N Granite Medium grained granite like N4 with minor rust staining and some coarse quartz, likely from a vein N Granite Medium grained granite, leucocratic phases, 5% chlorite N Granite Coarse grained weakly foliated pink granite with 10-20% chlorite and muscovite N Quartz Diorite Grey fine to medium grained quartz diorite N Quartz Diorite Medium to fine grained grey, massive, band of pink almandine garnet N Altered Granite Biotite and chlorite altered sheared granite with white quartz/albite veining N Quartz Diorite Grey medium grained quartz diorite N Chlorite Schist Dark grey fine grained chlorite biotite schist with 0.5 cm white quartz veinlet N Quartz Diorite Fine grained grey quartz diorite N Granite or aplite Fine grained leucocratic granite with <5% muscovite, pale beige colour, perhaps aplite dike N Rhyolite Fine grained rhyolite with trace pyrite N Granite Coarse grained pink granite with 5-10% muscovite, similar to N2 Fourteen samples were collected in total during prospecting and mechanical stripping campaigns. These samples are described in Table 2. Most samples were returned from a large area of outcrop and shallow till veneer, from which granite and quartz diorite are dominant rock types encountered. Sample locations are plotted in Figure 5. 10

11 Figure 6: Rock Sample Locations on Claim The area sampled is a resistivity high, in regional government geophysical surveys (GDS1002), where there are coincident 2 nd derivative magnetic features (Figure 8) as well. The resistivity high (red) is likely mapping granitic and quartz diorite intrusive rocks (Figure 7), and chlorite schist and rhyolite, which occur to the east and south (respectively) may suggest that softer volcanic rocks occur in lowlying areas presumably eroded by glaciation. 11

12 Figure 7: Rock Types on Resistivity for Claim Figure 8: Rock Types on Second Derivative MAG for Claim

13 Personnel Exploration work program was conducted by the following people. Table 3: Exploration Personnel Field Days Office Days Kevin Kivi, PGeo, 0 1 Thunder Bay, ON Colin Neilson, 6 1 Stratton, ON Tanner Neilson, 5 0 Stratton, ON Dan Neilson, 1 0 Stratton ON Joe Vander Wekken 1 0 Emo, ON Conclusions and Recommendations Hand specimen N13, located in the far south of the sampling area of claim was described as pyrite mineralized rhyolite from a hand specimen. This rock does not fit with the regional geology represented by the rock suite provided by prospectors, and therefore should be re-investigated to determine if the rock is an actual rhyolite, or perhaps a silicified and sulphide mineralized shear zone amongst granitic and quartz dioritic rocks that dominate the property. The author has been advised that four more samples have been collected and are on their way for review. 13

14 Bibiliography Kelso, Iain and Selway, Julie, 2008, Independent Technical Report (of ) Rainy River Property, Northwestern Ontario for Rainy River Resources Ltd. Ontario Geological Survey Ontario airborne geophysical surveys, magnetic data, Rainy River area; Ontario Geological Survey, Geophysical Data Set Revised. Geology Ontario website: Ontario Mining Lands Website: 14

15 Certificate of Author Kevin Robert Kivi, P.Geo. KIVI Geoscience Inc. 307 Euclid Ave., Suite 463, Thunder Bay ON P7E 6G6 Phone (604) Fax (604) I Kevin Robert Kivi, P.Geo., (P.Geol. in NWT) am a Professional Geoscientist, employed by KIVI Geoscience Inc., of Thunder Bay, Ontario. I am: a practising member of the Association of Professional Geoscientists of Ontario (APGO), Registration 0326, and currently elected councillor for NW Ontario; a member of the Association of Professional Engineers, Geologists and Geophysicists of the Northwest Territories (NAPEGG), Registration L821; a member of the Association of Professional Engineers and Geoscientists of the Province of Manitoba (APEGM), Registration A member of the Association of Professional Engineers and Geoscientists of Saskatchewan (APEGS), Registration # I graduated from Lakehead University, Thunder Bay with a Bachelor of Science Geology (4 year programme) in 1983, and I have practiced in my profession continuously since Since 1983 I have been involved in: gold exploration with Ovaltex Inc. along the Cadillac Break in Rouyn and Val D Or, Quebec in winters of 1984, 1985 and 1986, and between in NW Ontario. diamond exploration with BP Resources Inc Selco Division in Ontario, Quebec, Manitoba and NWT in summers of 1984, 1985 and 1988; gold and base metals exploration in NW Ontario with Rio Algom Exploration between 1988 and diamond exploration with Kennecott Canada Exploration between at Lac De Gras, NWT, Diamond Laboratory Manager between in Thunder Bay, Ontario, diamond exploration in Wawa in Archean lamprophyric volcaniclastic rocks and Group 2 kimberlites, March-June 2004, Exploration Manager at Diavik Diamond Mines Ltd, Lac De Gras, NT to present: Geological consultant specializing in diamond, gold and base metal exploration in Canada and Brazil. My current clients include Arctic Star Diamonds Corp., Amarillo Gold Corp, Sanatana Resources Inc., and Orebot Inc. I continue to work as a geological consultant for Colin Neilson in Dated at Thunder Bay, ON, CANADA this 17th day of November KIVI Geoscience Inc. Per: Kevin Kivi Kevin R. Kivi, P.Geo., President 15

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