REPORT ON GROUND VLF-EM AND MAGNETOMETER SURVEYS OF A PORTION OF THE P:., ^ PELANGIO-LARDER PROPERTY -' MCGARRY TOWNSHIP DISTRICT OF TIMISKAMING

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1 Kennco Explorations, (Canada) Limited 3aDMNEM MCGARRY 010 RECEIVED JUL MINING LANDS S^TfON REPORT ON GROUND VLF-EM AND MAGNETOMETER SURVEYS OF A PORTION OF THE P:., ^ PELANGIO-LARDER PROPERTY -' MCGARRY TOWNSHIP DISTRICT OF TIMISKAMING NTS 32D/4M Toronto, Ontario July 1982 James 0. Fenton,...JSe.nior Geologist.

2 INTRODUCTION The significant Canadian, Archean gold deposits are generally situated within or adjacent to regionally extensive zones of shearing and related deformation. The majority are spatially related to intrusive/extrusive bodies of highly altered ultra mafic and felsic volcanic rocks. The mineralization is often confined to the flow-tops of iron-tholeiitic basalts and related exhalative/clastic sediments. The basalts are often characterized by finely disseminated pyrite. The sediments may contain pyrite and graphite. All of these characteristics were known or inter preted to exist on the McGarry Township property of Pelangio-Larder Mines. To facilitate correlation of units across overburden or younger sedimentary rock covered portions of the property, the northern and eastern sections were gridded and surveyed by VLF-EM and total field magnetic techniques. The work was completed during the winter of This report documents the aforementioned surveys. LOCATION AND ACCESS The Pelangio-Larder Property is located in McGarry Township, District of Timiskaming in NE Ontario. The Property lies within the Larder Lake Mining Divison and may be keyed to the NTS system as 32D/4. See Fig. l for location. The area of interest is well served by Ontario highway 66 and an upgraded sideroad. In addition, drillroads and access roads for the powerline transect the Property. PROPERTY The Property consists of 21 patented claims and 9 unpatented claims. The entire property is under option from Pelangio-Larder Mines Ltd. See Fig. 2 for property outline. Regional GEOLOGY The McGarry Township Property of Pelangio-Larder Mines lies in the central portion of the Abitibi greenstone belt. This Archean succession of volcanic and sedimentary rocks is approximately 5 km thick and occupies a major east-west trending synclinorium. -l-

3 Lake \\pelangio-larder MINING DIVISION 1 Eastern Ontario 2 Sudbury 3 larder lake 4 Porcupine 5 Sault Ste Marie 6 Thunder Box 7 Patricia 8 Red Lake 9 Kenora KINNCO IXPIORATIONS (CANADA) LIMITED IAROER LOCATION MAP 8Yi J. flnton [oatt; j HO; 1

4 (A) 1 PROVINCE OF QUEBEC

5 Regional (cont'd) Within the Kirkland Lake-Larder Lake Camp the Archean rocks have been subdivided into three conformable, mixed volcanic and sedimentary rock cycles, unconformably overlain by a predominantly clastic sedimentary sequence. The latter may host a locally sig nificant component of predominantly felsic volcanic rocks. Syenite bodies of variable size are found intrusive into virtually all portions of the stratigraphic column. The predominantly granitic Round Lake Batholith underlies much of the area immediately south of the camp. Property The Pelangio-Larder Mines property is extensively drift and/or covered by younger sedimentary rocks. The subsurface distribution of the Archean stratigraphy is based largely on previously completed diamond drill holes and geophysical considerations. Lithological descriptions offered are brief and of a general nature by necessity, and the positions of the major units and structural features are approximate. The major feature of the area of interest is the Larder Lake Break, which is interpreted to generally coincide with the irregular northern boundary of the property. The Larder Lake Break has been variably interpreted as a growth fault associated with the accumu lation of volcanic material, and as a thrust fault. Immediately adjacent to the fault on its south side is a relatively extensive sequence of dominantly mafic and ultramafic volcanic rocks, though locally containing a significant volume of interflow clastic and chemical sediments. The volcanic rocks are extensively altered to talc-serpentine-chlorite schists. On their north side, the volcanic rocks are in fault-contact (?) with a sequence of greywackes, arkoses, slates and quartzites. Similar lithologies occupy a WSW-ENE trending syncline that underlies the central portion of the property, but is interpreted to be cross-faulted to the south, off of the extreme SW corner of the property. Quartzcarbonate schists are developed locally along the volcanic-sediment contact in the west-central portion of the property. GEOPHYSICAL SURVEYS Ground VLF-EM and Magnetometer surveys, totalling 33.0 line-miles each were completed over approximately 2/3 of the Pelangio-Larder Mines property in an attempt to trace structural and lightological features across covered areas. The electromagnetic surveys was com pleted with a GEONICS EM-16 instrument (S/N 13666) and the magnetic survey was completed with a Barringer GM-122 magnetometer (S/N 7199). The results of the two surveys are presented in plan view on four maps, which may be found in envelopes at the end of the report. See Fig. 3 for grid location.

6 PROVINCE OF QUEBEC

7 DISCUSSION OF RESULTS The area surveyed contains a significant number of cultural features which affected both the continuity of the survey and individual determinations. The primary cultural features are the Ontario Hydro transmission and power lines. These virtually negated the effectiveness of the VLF-EM technique for the largest part of the survey and prevented the measurement of the magnetic field for a limited portion of the survey area. The total field magnetic survey contains a single, significant magnetic feature. A fairly we! l-developed dipole exhibiting a.n approximately 600 gamma positive peak flanked on the north side by a 300 gamma negative peak. A comparison of field data with readily available type-curves suggests that the cause of the magnetic feature is buried at some depth, fairly broad and homogenous, and dips north at approximately 60 0 to Though maximum and minimum values were not actively sought out in the course of the survey, it is felt that because of the low frequency nature of response the general interpretation is valid. The magnetic data is relatively flat for the remainder of the survey area confirming the indicated substantial depth to the Archean rocks and the low susceptibility of the Cobalt sediments. The VLF-EM data is totally dominated by the cultural features in that interference from the transmission/powerlines extends 800 l to 1000' off each side. Several weak responses are present within the survey area, but these are interpreted as overburden sources. These anomalies are characterized by poor apparent conductivity and they are not generally correctable from line to line. -6-

8 ir '. The Mining A( Type of Survey(s) Ground VLF-EM and Magnetometer Claim Hofdods) f^elangio-larder Mines Limited 330e4NEe446 a.4952 MCGARRY Address P.O. Box 1456, Timmins, Ontario P4N 7N2 Survey Company Date of Survey (from Si to) Kennco Personnel (Permanent and Temporary) Name and Address of Author (of Goo-Technical report) 91 i Q?, Y 81, ft i 03, 8,1 James 0. Fenton. P.O. Box 20. Toronto-Dominion Centre. Toronto. Ontario M5K 1A1 Credits Requested per Each Claim in Columns at Special Provisions For first survey: Enter 40 days. (This includes line cutting) For each additional survey: using the same giid: Man Days Enter 20 days (for each) Complete reverse side and nnter total(s) here Geophysical D.iys per CI.li m - Electromagnetic \ *r\ - Magnetometer radiometric Other Geological Geochemical Geophysical - Electromagnetic 20 Djys per Claim Mining Claims Traversed (List in mimeiical sequence) Mining Claim Profix Numbor...L * v i * ^ ; ' Expend. Days Cr Profix W Total Miles of linvcut 33,Qjapproxl niing Claim Numtior , Expend. Days Cr Other Geological Airborne Credits Geochemical Days per Claim Note: Special provisions credits do not apply to Airborne Surveys. Electromagnetic Magnetometer Radiometric Expenditures (excludes power stripping) Type of Work Performed Performed on Claim(s) Calculation of Expenditure Days Credits Total Expenditures Total Days Credits Instructions Total Days Credits may be apportioned at the claim holder's choice. Enter number of days credits per claim selected in columns at right. Date July 22, 1982 Certification Verifying Report o: od HolcfgryyAgent ^ (Signature) Total Days Cr. Recorded For Office Use Only Date Recorded Date Approved as Recorded Total number of mining claims covered by this report of work. Mining Recorder Branch Director l hereby certify that l h a ve" a personal and intimate knowledge of the facts set forth in the Report of Work annexed hereto, having performed the work or witnessed same during and/or after ils completion and the annexed report is true. firne and Postal Address of Person Certifying James 0. Fenton, P.O. Box 20, Toronto-Opinion Centre, Toronto, Ontario M5K Date Certified liilv 77. 1QR? o

9 Resident Geologist Ministry of Natural Resources 4 Government Road East P.O. Kox 984 Kirkland Lake, Ontario P2N 1A2 Dear Sir: RE: Geophysical (Electromagnetic and Magnetometer) Survey submitted under Special Provisions on Mining Claims L et al in the Township of McGarry Further to my letter of July 30, 1982 which acknowledged receipt of the above survey, the data has not been assessed as the claims in question have already reached the maximum of 80 day* approved Geophysical credits. Enclosed is a copy of the survey report and maps for your information. Yours very truly E.F. Anderson Director Land Management Branch Whitney Block, Room 6450 Queen's Park Toronto, Ontario M7A 1W3 Phone: 416/ A. Barrtsc Encls: cct Mining Recorder Kirkland Lake, Ontario ccs Kennco Explorations (Canada) Limited Toronto, Ontario Attnt Mr. James 0. Fenton

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12 - Ministryof Geotechnical "atural Report ri G sources Ontario k Approval -* File Mining Lands Comments DTo: Geophysics Comments l l Approved Wish to see again with corrections Date Signature To: Geology- Expenditures Comments D [j Approved [ Wish to tee again with corrections To: Geochemistry Comments Date Signature [^Approved Q Wish to see again with corrections Date Signature l l To: Mining Lands Section, Room 6462, Whitney Block. (Tel: ) 1593 (81/10)

13 Mining Recorder Ministry of Natural Resources 4 Government Road East P.O. Box 984 Kirkland Lake* Ontario P2N 1A2 Dear Sirt We have received reports and naps for a Geophysical (Electromagnetic and Magnetometer) survey submitted under Special Provisions (credit for Performance and Coverage) on Mining Claims L et al in the Township of McGarry. This material will be examined and assessed and a statement of assessment work credits will be issued. Yours very truly, E.F. Anderson Director Land Management Branch Whitney Block, Room 6450 Queen's Park Toronto, Ontario M7A 1W3 Phone: 416/ J. Skura/sc cct Kennco Explorations (Canada) Limited Toronto, Ontario. cct James O. Fenton Toronto, Ontario.

14 KENNCO EXPLORATIONS (CANADA) LIMITED SUITE 2308, COMMERCIAL UNION TOWER P.O. BOX 19 DELIVERED BY HAND TORONTO-DOMINION CENTRE TORONTO, ONTARIO MSK 1A1 (416) July 22, 1982 Lands Administration Branch Mining Land Section Ontario Ministry of Natural Resources Room 6451, Whitney Block Queen's Park Toronto, Ontario Dear Sir: Please find accompanying this letter, a Technical Report, in duplicate, documenting geophysical surveys on unpatented mining claims L555936, L565393, L565452, L524842, L535241, L545899, L and L in McGarry Township, Larder Lake Mining Division. A Report of Work, copy enclosed, has been submitted to the Mining Recorder in Kirkland Lake applying for 60 days assessment work credits on the above claims. I trust the enclosed is clear. You RECEIVED JUL MINING LANDS SECTION JOF/ep Enc. pc: Mining Recorder, Kirkland Lake Fenton, P. Eng. ior Geologist

15 KENNCO EXPLORATIONS (CANADA) LIMITED SUITE 2308, COMMERCIAL UNION TOWER P.O. BOX 19 Mr. George J. Koleszar Mining Recorder Ministry of Natural Resources 4 Government Road EAst P.O. Box 984 Kirkland Lake, Ontario P2N 1A2 Dear Sir: TORONTO-DOMINION CENTRE TORONTO, ONTARIO MSK 1A1 (416) July 22, 1982 Please find accompanying this letter a Report of Work applying 60 days work on each of the following unpatented mining claims; L555936, L565393, L565452, L524842, L535241, L545899, L545426, L The technical reports documenting the geophysical surveys are being delivered to the Lands Administration Branch, Whitney Block today. RECEIVED JUl MINING LANDS SECTION Could you kindly confirm by return mail the assessment work credits available, including this submission, on unpatented mining claims L555936, L565393, L565452, L524842, L535241, L545899, L545426, L and L located in McGarry Town ship, Larder Lake Mining Division. I trust the enclosed is clear.,-^ Yours sincerely, JOF/ep Enc. pc: Lands Administration Branch. Fenton, P. Eng. '^-""Senior Geologist

16 KENNCO EXPLORATIONS(CANADA)LIMITED PROTON PRECESSIONMAGNETOMETER SURVEY PELANGIO-LARDER (WEST GRID) SCALE'- l" ^ 2 O O 1 DATA BY'KENNCO DATE^MARCH t I98l MODEL -BARRINGER GMJ22 CONTOUR INTERVAL^ 100 SURVEY BY'L.TIHOR AND S. B E K ft V M A N DRAWN BY : S. BE R HYMAN S'? Z?? P) ' f WEST GRID l" = 200' MAGNETOMETER SURVEY KENNCO DATA/1981 KEY MAP SCALE-- 20 MILES CLAIM MAP SG A L E-' l* * 2000* IM Thunder Boy N N Z O N N L N 4 N 2 N BASE LINE 2 S 4 S 6 S 8 S l O S 2 S 4 S 6 S 8 S aD04NEei MCGARRY

17 1 ' ' \ ' ' M ' ' M ' ' ' O 2 G -C 60 8 O 0/ KENNCO EXPLORATIONS (CANADA) LIMITED VLF SURVEY PELANGIO-LARDER (WEST GRID ) DATE' MARCH, 1981 DATA BY' KENNCO TRANSMITTER' CUTLER, MAINE (NAA) FACE' NORTH MODEL'GEONICS^EMIS SURVEY BY-L. TIHOR, L.WEISFLOCK AND DRAWN BY : S.BERRYMAN SCALE S. B E R R Y M A N WEST GRID l" = 2-00' VLF-EM SURVEY KENNCO DATA/1981 KEY MAP SCALE CLAIM MAP 2 4 N 2 2 N 2 O N l 8 N i 6 N l 4 N l 2 N l O N e N N 4 N 2 N BASE LINE 2 S 4 S 6 S 8 S l O S 2 S l 4 S l G S l 8 S 20 S 2 2 S UJ 32004NE MCGARRY

18 nsz\ Se?/? l p KEY MAP SCALE: BASE LINE CLAIM MAP SC A L E ' 589QO L58??I KENNCO EXPLORATIONS CANADA) LIMITED PROTON PRE/CESSION MAG NETOMETE/f? SURVEY PELANGIO- LARDER (EAST GRID) DATE 1 MARCH, 1981 DATA B Y : KENNCO CONTOUR INTERVAL' 20 GAMMAS MODEL : BARRINGER GM 122 N.T. S. NO-32-D-4 SURVEY BY'S.BERRYMAN DRAWN BY' S.BERRYMAN RE VIS ED' S C A L E ; 32D*4NE MCGARRY 220 EAST GRID MAGNETOMETER SURVEY l" = 200' KENNCO DATA/1981

19 KEY MAP SCALE' 1=120 MILES P L A l M MAP SCALE P BASE LINE U ADRATURE IN 54589^ KENNCO EXPLORATIONS(CANADA)LIMITED VLF SURVEY PELANGIO-LARDER (EAST GRID) SCALE' l"-20 O' DATABY^KENNCO DATE : MARCH,1981 MODEL^ GEONICS EMI6 TRANSMIT! ER= CUTLER, MAINE (NA A) F AC E: NORTH SURVEY BY' L.WEISFLOCK AND S.BERRYMAN DRAWN BY' S. BE R R YMAN EAST GRID VLF EM SURVEY l" s 200' KENNCO DATA/1981 3aO*4NE MCGARRY 330