RECEIVED GOLD PROPERTY REPORT ON THE 1992 EXPLORATION OF THE LASSILA-HOUGHTON ELMHIRST TWP. MINING LANDS BRANO NTS 42E/13.

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1 42E13SE0603 E ELMHIRST REPORT ON THE 1992 EXPLORATION OF THE LASSILA-HOUGHTON ELMHIRST TWP. GOLD PROPERTY NTS 42E/13 Latitude * Longitude ' Date: December 1992 By: P. Lassila RECEIVED APR MINING LANDS BRANO

2 CONTfc^io 42E13SEeS ELMHIRST 010C INTRODUCTION PROPERTY LOCATION AND ACCESS TOPOGRAPHY AND OUTCROP EXPOSURE WORK PROGRAM PROPERTY GEOLOGY MINERALIZATION AND ASSAY RESULTS RECOMMENDATIONS l l REFERENCES 7 FIGURE 1: FIGURE 2: APPENDIX A: APPENDIX B: APPENDIX C: SKETCH 1: SKETCH 2: SKETCH 3: MAPI: Location Map Claim Map Daily Work Log Worker Addresses Assay Sample Data Copy of Application to Record No. l Showing: Trenches and Samples Magnetometer Survey l Magnetometer Survey 2 Compilation Map

3 ODUCnON The work and results described in this report was conducted almost entirely on the financial aid provided by OPAP Grant 0OP The main purpose of the program was to locate and sample an old trench on a reported gold showing and prospect the area for any other gold occurrences which may underly the property area. The work program included detailed prospecting, trenching and sampling a newly discovered gold showing, and two magnetometer surveys over and on strike of the gold showing. The work area consists of a single mining claim #TB which covers 128 hectares (8 units) at the north boundary of Elmhirst Twp., Ontario. Exploration field work on this property was carried out between June 19, 1992 and July 13, 1992 utilizing old roads for access on a daily basis from Beardmore, Ontario. The old reported gold-bearing showing could not be located despite detailed prospecting. However a new gold showing was discovered, the number l Zone, as is described in this report. The prospecting results are depicted on a compilation map (Map #1). Sketch map l shows details of Zone 1. Sketch maps 2 and 3 show the magnetometer survey results. The daily work log and personal data are provided under Appendix A, and all sample assay data under Appendix B. PROPERTY Claim TB (8 units) is 50 % owned by P. Lassila of Ajax, Ontario and owned by F. Houghton of Beardmore, Ontario (See Appendix C and Fig. 2).

4 /T T i i -- f LA- HOUGHTON One centimetre represents one kilometre LOCATION MAP i

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6 CATION AND ACCESS The property straddles the north boundary of Elmhirst Twp. situated about 25 km northwest of Beardmore, Ontario (Fig. 1). Access is north along the gravelled Highway 801 road from Highway 11 at a point about 30 km east of Beardmore (Fig. 1). Secondary bush roads provide track access to within 2 km of the property location. ATV (all terrain vehicle) access is possible for the last 2 km to the property location along old logging roads. TOPOGRAPHY AND OUTCROP EXPOSURE The property area is mostly covered by nearly flat sand plain with local low relief outcrop exposures and minor swampy areas (Map 1). Portions of the areas have undergone a forest fire bum about IS years ago. The south and western portion of the property also was clear-cut for timber about 15 years ago. The forested portion is covered mainly by mixed over mature timber. Best outcrop exposure occurs in the clear-cut areas. WORK PROGRAM The major effort was detailed prospecting over the southern two thirds of the property area (Map 1). Virtually every possible outcrop location in the central portion of property was investigated for old workings but no trace of any previous work, other than several sets of old claim lines (and posts), was found. During this prospecting investigation, a previously undetected sheared, silicified, quartz-veined alteration zone was discovered in a single small (about l m square) outcrop in the cutover area just north of the south boundary of the property. This location was subsequently further exposed by overburden blasting, handmucking and rock blasting (Sketch 1). A total of sixteen grab samples were taken for assay, most which returned low but significant values in gold. Quartz veining was found at three other locations on the property but assay results from these (total 3 samples) returned negative results in gold. Subsequent to the discovery of the gold showing, two magnetometer surveys (see Map l and Sketches 2 and 3) were conducted on chained flagged compass lines in attempt to determine if the

7 ^bid-bearing zone contained some magnetic signature which could be used to delineated this zone on strike into overburden areas. This was unsuccessful. VLF EM (not recorded) was also run across the showing, but since it reflected no VLF EM response no additional VLF work was conducted. Field Work Summary: Prospecting total; 18 man days Trenching and Sampling; 6 man days Magnetometer Surveying; (includes establishment of lines); 4 man days Line distance surveyed; 2300 feet Readings taken; 148 Assay samples taken; 19 ( Best assay; oz/t gold Field map preparation; 3 days PROPERTY GEOLOGY. MINERALIZATION. AND ASSAY RESULTS The general geology underlying the property and nearby areas is provided on Map #2373 (Report #168, 1978, W.O. MacKasey and H. Wallace) and Map #2429 (Report #197, 1980, S.E. Amukun). The eastern portion of the property is underlain by feldspar porphyritic mafic lavas, while the western two-thirds is underlain by massive medium to coarse grained diorite, granodiorite and quartz diorite, During prospecting a diorite volcanic breccia (quartz dioritic containing numerous subround clasts of mafic volcanic) was also observed in the northwest part of the property (Map 1). Very little or no outcrop occurs over large portions of the property area. Best outcrop exposure is in the vicinity of the No. l Zone (Map l, Sketch 1) in the south central part of the property, in the cut over area in the northwest, and close to the small lake in the east. The only location where interesting mineralization was located is at the No.v l Zone (Map l, Sketch 1) where a 2 foot to S foot (.6 m to 1.S m) wide shear strikes at Az through massive

8 Coarse grained diorite. Here the diorite has been crushed (brecciated), weakly chloritized and impregnated with quartz flooding and associated pyrite. The pyrite occurs as disseminations, semimassive irregular clots and as narrow (up to 1/2 in.) seamlets. The zone widens from two feet (0.6 m) in the north to about five feet (1.5 m) in the south where it disappears under overburden cover (four feet deep at the south end of the trench). A total of sixteen grab samples from different parts of this trench exposure returned values ranging from 7 ppb to 1042 ppb in gold. The strongly pyritic quartz-flooded samples returned the best values. This is a brand new previously undetected gold discovery. RECOMMENDATIONS Severe overburden problems inhibit surface type exploration of the property in general. It is also questionable weather geophysical surveys, with the exception of IP which is very costly, would provide much added value towards an exploration success on this property. However an attempt should be made to determine the possible extension of the gold-bearing No. l zone, particularly to the south. One additional claim block should be staked to the south because this north-south trending zone is located close to the south boundary of the present property area. Backhoe crosstrenching to the south and north should be done to define the zone along strike as far as is possible. A modest budget of S2500 should cover the backhoe trenching effort, including sampling and assay costs. If an improvement in size and grade of this zone is encountered, then a more extensive exploration program should be planned. P. Lassila Geologist - Prospector December 8, 1992

9 REFERENCES Mackasey, W.O. and Wallace, H. 1978: Geology of Elmhirst and Rickaby Townships, District of Thunder Bay; Ontario Geological Survey Geoscience Report 168,101 p. Accompanied by Map 2373, scale l inch to 1/2 mi. (1:31680). Amukan, S.E. 1980: Geology of the Conglomerate Lake Areas, District of Thunder Bay; Ontario. Geological Survey Geoscience Report 197,101 p. Accompanied by Map 2429, Scale l inch to 1/2 mi. 0:31680).

10 APPENDIX A 1) Daily Work Log 2) Workers Addresses

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15 l 03 l ±0 nofj 'i

16 Assay Sample Data APPENDIX B

17 ASSAY PATA T*,p f Lob.. Tt? 11 SAMPLE No. LOCATION ffesuijx DESCRIPTION S'&I bs Snow?* ) e C t J * y fiat i*// i 7 tt 7 5ho Us,tj t lie. 41 i l ^ " J *^^ ^^ 7 no 7 f c/s X 'So bret, Si i* c it ;AJ ^^ f-j

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19 Ontario Ministry of Northern Development and Mines July 27, 1992 Ministere du Developpement du Nord et des Mines 2l'w b t* t Frank Houghton P.O. Box 164?- Beardmore, Ontario #/ Shuu/in^ POT 1GO J Dear Frank: The following are gold assay results for three samples I believe, from the Elmhirst Township - Dodds areas property that I received from you in early July. Sample Number Au (oz/ton) 92-MFH-l.015 (No. 5501) * 92-MFH (No. 5502) t 92-MFH (No. 5503) X Sincerely, Gerry White A/Resident Geologist Beardmore-Geraldton District Mines and Minerals Division Ministry of Northern Development and Mines P. O. Box 5000 Thunder Bay, Ontario P7C 5G6 GW/sew

20 Swastika Laboratories A Division of Asuyers Corporation Ltd. Assaying - Consulting - Representation Geochemical Analysis Certificate 2W-0661-RG1 Company: P. LASSILA Lojr*. la ~ H o t, c, h fa fivp+rfy Date: JUL Aon: *** We hereby certify the following Geochemical Analysis of 8 ROCK samples submitted JUL by. Sample Number A^ oz./t: Au PPB Au check PPB 5501 NOT RBCD) 5502 NOT RBCD m 5503 NOT RBCD) 5504 J,o3o !?9? """""""""""oi"o"""6ir""""""""...."30t??? 5507, oo ,oo / jjjj, "",,, ^- - ^" " - Nil Certified by L ) P.O. Box 10, Swastika, Ontario POK1TO Telephone (705) FAX (705)

21 Swastika Laboratories A Division of Asuyen Corporation Ltd. Assaying -Consulting -Representation Geochemical Analysis Certificate 2W-0722-RG1 Comply: P. LASSILA Dtte: JUL Pro]** L 033, l* - We hereby certify the following Geochemical Analysis of 6 ROCK samples submitted JUL by. f/o l Sample Au oz/k Number jjjg"" " "" 43J PPB jj Au ' /638* -oil ""~""""""t~24il202~""""^y""""""" ^ Nil Nil Certified by. P.O. Box 10, Swastika, Ontario POK1TO Telephone (705) FAX (705)

22 ..L V: A - ri u o r a t. a r.1 f? s Bo:; iv9..l I-:a. On car iu INVOICE NO.: -,. T. DATE: ;.,... SOLD TO: SHIP TO: PAGE: (2 ITEM NO. QUANTITY DESCRIPTION UNIT PRICE Bus Charges GSr S 7 y.. Included

23 .-;.-.-i3 1 i k a L a bcj ra t c r j. e s. cte J. i k. -A. Ontario INVOICE NO.: DATE: :.7444 SOLD TO: SHIP TO: PAGE: UNIT PRICE Sample Handling Cert#2W-ja661-RGl 3-GST e 7 y.

24 f-* r. J - T-i o i.k -t i ^ -L t- INVOICE NO.: DATE: SOLD TO: SHIP TO: PAGE: DESCRIPTION UNIT PRICE Code l ' Au, As bay s Code 4 Sample Handling Bus Charges Certtt2W-0722-RGl 7 y.. Excluded 7 y., Included , Net 30 Days TOTAL l 85.44

25 APPENDIX C Copy of Application to Record 10

26 5- - ^X Development lines Application to Record Staked Mining Claim(s) Mining Act Information collected on this form is obtained under the authority of the Mining Act. This information i used to maintain a record and will be used for serving notices. Questions about this collection should be Trected to the Provincial Manager, Mining Lands, Ministry of Northern Development and Mines, Fourth Floor, 59 Cedar St., Sudbury, Ontario, P3E 6A5, telephone (705) 'lease Print Using Ink or Type Jame of Applicai Received Stamp Part A Address: Street, City/Town/Village, Province, Postal Code Licence No. ame and Address for Service in Ontario: (Required If Applicant Resides Outside of Ontario) Telephone No. 8 7 S 1 -^3 H 5" Jame of Recorded Molded G same as above or: ft * in - 2 y \ddress: " Street, ' ' City/Town/Villaae. --i-wj Province. J*--^ Postal JY^ Code B*a rct Client No.^ /t/f, C f.5' ^larne and Address for Service in Ontario: (Required if Recorded Holder Resides Outside of Ontario) A -ri* /lining Division Township(s) or Area(s) (Show Plan No.) Mumber Tag Number No of 6 Ha' Units Per Claim Description if Staking in Subdivided Township (Lot No., Concession No., Section of Lot) Staking Post No. Date l Time Commenced Office Use 8 Completed Commenced ompleted ommenced Completed Commenced Completed Commenced Completed Commenced C."1 Completed Ice Use Only: CL1524 CHECK (03/91)

27 r r t g O/ i* t a - U O L ^ Gtl Oft oj- O (M tt 01

28

29

30 Ontario Ministry of Northern Development and Mines Ministere du Developpement du Nord et des Mines 42E13SE860a ELMHIRST 300 Geoscience Approvals Section 933 Ramsey Lake Road 6th Floor Sudbury, Ontario P3E 6B5 Telephone: (705) Fax: (705) Our File: Transaction #: W September 24, 1993 Mining Recorder Ministry of Northern Development and Mines 435 James Street South Suite BOO3 Thunder Bay, Ontario P7E 6E3 Dear Sir: RE: APPROVAL OF ASSESSMENT WORK ON MINING CLAIM TB IN ELMHIRST TOWNSHIP. The Assessment credits for PROSPECTING, section 9 of the Mining Act Regulations, as listed on the attached assessment work credit form, have been approved as of AUGUST 9, 'h This form replaces that filed with the original submission. Please indicate this approval on the claim record sheets. If you have any questions please contact Clive Stephenson at (705) Yours sincerely, Ron C. Gashinski Senior Manager, Mining Lands Section Mining and Land Management Branch Mines and Minerals Division CDS /dm cc: Resident Geologist Thunder Bay, Ontario Assessment File Library Toronto, Ontario

31 ASSESSMENT WORK CREDIT FORM FILE NUMBERS DATE: August 9, 1993 TRANSACTION NUMBER: W9340.8O RECORDED HOLDER: P. LASSILA/F. HOUGHTON CLIENT NUMBER: / TOWNSHIP: ELMHIRST CLAIM VALUE OF ASSESSMENT VALUE APPLIED TO NUMBER WORK DONE ON THIS CLAIM THIS CLAIM TB $ $

32 Ministry of Northern Development and Mines Report of Work Conducted After Recording Claim Mining Act Transaction Number Personal Information collected on this form is obtained under the authority of the Mining Act. This information win be used for correspondence. Questions about (his collection should be directed to the Provincial Manager, Mining Lands, Ministry of Northern^Development and Mines, Fourth Floor, 159 Cedar Street, Sudbury. Ontario. P3E 6A5, telephone (705) nstructlons: - Please type or print and submit in duplicate. - Refer to the Mining Act and Regulations for requirements of filing assessment work or consult the Mining Recorder. - A separate copy of this form must be completed for each Work Group. - Technical reports and maps must accompany this form in duplicate. - A sketch, showing the claims the work is assigned to, must accompany this form. Recorded Holden;*),. Address P. L-CtSStiQ (S01) /^ 411*0^1 C Ir Mining DrvisWri v J Geotechnical Survey Physical Work, Including Drilling Rehabilitation Other Authorized Work Assays Assignment from Reserve t rm " * l *t ^ ^^c i f ^*r-, A jet*. Out. LIS 1Y1 n Township/Area ' ^*- o Client No.,- Telephone No. * V* O ff * ^/^ ^5 4fc9 M or Q Plan No. 1 /7 Ct. Vi (P** ^r a Cf LJ \ fc f **i hi' t-.rt TL/p ( Dales' J Work From:. ' /Q Performed *S Lt VI -f. If m f- 2. To: ~ J j ^t, ^ /* fi f X '' r- * X y 90 Z 7 ^- 1 ; Work Performed (Check One Work Group Only) - * Work Group (^2^ (0A05*M Type r 'A)*^ S P Ir Cffp-fciTl '9 l ' i- /U^t; Af 'l? ; T^ *A Total Assessment Work Claimed on the Attached Statement of Coats Note: *9/ ^wpl^c, A S Jamr? J, f,- RFCEIVc:n ril-v^l-l V /-c* b i Scrwpf'OJ' y,( AA '9*?,*^* Q ^-1 j? /* y^ j APK z b iyy.-5 f V.2 S~2~ MINING LANDS BRANOi- The Minister may reject for assessment work credit all or part of the assessment work submitted if the recorded holder cannot verify expenditures claimed in the statement of costs within 30 days of a request for verification. 3ersons and Survey Company Who Performed the Work (Give Name and Address of Author of Report) Name Address /^,/^, t~ i rf f** If i '/ V/JX3 If f~ff\4 n/jrjfj L] f o W ^-cr j- j-/ /r/ attach a schedule If necessary) Po Po &0* /i^f fcr,x k^/^a / ^0^ f**. A-tO^ / ' t***rc 0* t P6T t-***prt POT x- y1 y / c- D,fr*.t t t-lf * ' 16-C IG-6 r*? Certification of Beneficial Interest * See Note No. 1 on reverse tide l certify that at the time the work was performed, the claims covered In this work report were recorded In the current holder's name or held under a beneficial Interest by the current recorded holder. Date Recorded Holder or Agent (Signature) 2ertiflcatlon of Work Report 441(0*91)

33 i ir i k! fc s S 8** [i Applied Work Total VakM M K, a t s*!*5 lilt o i Credits you are claiming in this report may be cut back. In order to minimize the adverse effects of such deletions, please indicate from which claims you wish to prlorize the deletion of credits. Please mark (**) one of the following: 1. J2I Credits are to be cut back starting with the claim listed last, working backwards. 2. D Credits are to be cut back equally over all claims contained in this report of work. 3. D Credits are to be cut back as priorized on the attached appendix. In the event that you have not specified your choice of priority, option one will be implemented. Nota 1: Examplaa of beneficial Interest ara unrecorded tranaf ara, option agraamanta, mamorandum of agreements, etc., with raapact to tha mining clalma. Note 2: If work has bean performed on patented or leased land, pleaae complete the following: l certify that the recorded holder had a beneficial Interest In the patented or leased land at the time the work was performed. Signature Data

34 Ontario Ministry of Northern Development and Mines tere du jloppement du Nord et des mines Statement of Costs for Assessment Credit Etat des coqts aux fins du credit devaluation Transaction No./N* de transaction Mining Act/Loi sur les mines Personal information collected on this form Is obtained under the authority of the Mining Act. This information will be used to maintain a record and ongoing status of the mining claim(s). Questions about this collection should ae directed to the Provincial Manager, Minings Lands, Ministry of Northern.development and Mines. 4th Floor, 159 Cedar Street, Sudbury, Ontario P3E 6A5. telephone (70S) Les renseignements personnels contenus dans la presente formule sont recueillis en vertu de la Lot sur les mints et serviront a tenlr a jour un registre des concessions mlnieres. Adresser toute quesiton sur la collece de ces renseignements au chef provincial des terrains miniera, ministers du Developpement du Nord et des Mines, 150, rue Cedar, 4* etage, Sudbury (Ontario) P3E 6A5, telephone (705) Direct Costs/Couts directs Type Wages Salalres Field Supervision Supervision sur le terrain Type Contractor's and Consultant's Fees Drolts d* rerrtrepreneur st d* I'expertconsell Supplies Used Foumttures utlllsees Equipment Rental Location d* materiel Description Labour Main-d'oeuvre Type la^ K1cr*-f ' r^- (ZrJt flojji'fj 4s5ctu)"Z / Type Amount Montan! Sfyb 2rO /?? Total Direct Costs Total des couts directs Totals Total global S6oo 1+3 Z*4\ 2. Indirect Costs/Gouts Indirects * * Note: When claiming Rehabilitation work Indirect costs are not allowable as assessment work. Pour le remboursement des travaux de rehabilitation, les couts indirects ne sont pas admissibles en (ant que travaux d'evaluation. Type Transportation Transport Food and Lodging Nourrtture et hebergement Mobilization amm Demobilization Mobilisation et demobilisation Description Type "T^r k l**^ t*1* ^f*v gja*! * * jbbtfmii " i Ln* \*J L -rr f *' '' 1 APR Amount Montan! 75~o * NING LANDS BhH I--.-JH Sub Totsl of Indirect Costs Total partlel des couts Indirects Amount Allowable (not greater than 20tt of Direct Costs) Montsnt admissible (n'excedsnt pss 20 H des coots directs) Totsl Value of Assessment Credit (Total of Direct and AHowaWe InHlrael en*tik Valeur totale du credit d'tvshistion fto**l rfm eaou dlnetl tt bmhractt idfnlmm** Totals Total global -* 7JD *ro /4/e 1 *w -72S2 Jote: The recorded holder will be required to verify expenditures claimed in this statement of costs within 30 days of a request for verification. If verification is not made, the Minister may reject for assessment work all or part of the assessment work submitted. Note : Le titulalre enregistre sera tenu de verifier les depenses demandees dans le present etat des coots dans les 30 jours suivant une demande d cet effet. Si la verification n'est pas effectuee, le ministre peut rejeter tout ou une partie des travaux d'evaluation presentes. lling Discounts. Work filed within two years of completion is claimed at 100*16 of the above Total Value of Assessment Credit. Work filed three, four or five years after completion is claimed at SO*/** of the above Total Value of Assessment Credit. See calculations below: otal Value of Assessment Credit x 0.50 Total Assessment Claimed Rsmlsss pour depot 1. Les travaux deposes dans les deux ans suivant leur achevement son! rembourses a 100 ^ de la valour totale susmentkmnee du credit d'evaluation. 2. Les travaux deposes trois, quatre ou cinq ans apres leur achevement sont rembourses a 50 to de la valour totale du credit d'evaluation susmentionne. Voir les calculs ci-dessous., Valeur totale du credit d'evaluation x 0,50 - Evaluation totale demandee edification Verifying Statement of Costs lereby certify: iat the amounts shown are as accurate as possible and these costs ere incurred while conducting assessment work on the lands shown n the accompanying Report of Work form. Attestation de l 'etat des couts J'atteste par la presente : que les montants indiques sont le plus exact possible et que ces depenses ont ete engagees pour effectuer les travaux d'evaluation sur les terrains indiques dans la formule de rapport de travail ci-joint. iat as n r ( [Recorded Holder, Agent, Position In Company) l am authorized Et qu'a titre de je suis autorise (litulaire enregistre, reprisentant, poste occupe dans la compagnie) make this certification a faire cette attestation. Signature Date 2(04/81) Nota : Dans cette formule, lorsqu'll designs des personnes, le masculin est utilise au sens neutre.

35 ra 0 r w m u 3J 33 V ^ S Z"?2?-* on] o z ^ m~" 1 3- m O > c ~n l rn men ^Om3J?om^ o?0of8s Z., "n Q, ^ m o -o PIFHER TR G- Z O r4* o tfl X RICKABY TR G-I6I -l O I 0 x CO I C* m O O z J ^ 2 r S > * O l o* ro Nata Minof Resources u ii, l ry m to fci rti C 5? 33 3 I g S i( Hi 2 l S m z g o ^ 'M i ^i /' i i H. O o ui P g g c n -t) > 3) o m m S 2 o m en rr

36 11 in- - * cc * if J^ 5 JU J^r /' f ^ \ ^ ^ -o h i " ( Ak /COO ft. H 3 os m L A K E V O 'r cjy 9 f- - c^j- t'h v ^ o C-' ' C""/ -^ v. rv i' c f j C ^ ^ l*- a t-'.i ij i'a *- i~te ^.-it /c -'.. /^an /'^ o ut c b w fl 'j i r v r- t- '^ r- f..1 Ji! ' ^. f' l ^ - ^ 6-co^c,^ Co / 5u^ Lj S' 7 \ - O p f )- t 3- LV o n ^ p \^ ^ ' 1 \.-^s* j ^ f fc -^ A / ^ "^" -- O f ;'( k? c* 5 h HtT^^,/ t ' \ t Au \\ V ^ 5-54*7 C tt-, i \ N \^ p P c J." y ^CC k ir,,^. p If ^ii l] r \ 9 c - ^o ' ^^ 0 ^ T ^-,,,,..,^,,,. r f u *^\ X C l tin-bf*.- S D t- ^i, ^ f r, c ",, f j r u c i S g LA ^sj LA -He GHiuN PK.PL.RJY COMPILATION MAP T B f c f 4 N7S 42 E /l?, 4aEi3SE06aa ELMHIRST S10 ir 2-^44^4 M /\ P 1