on Claims L to L Cone. I, Beatty Township Ontario for Hollyburn Resources Ltd.

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1 42Ae9SW85e4 3.II 873 BEATTY 010 GEOLOGY REPORT n Claims L t L Cne. I, Beatty Twnship Ontari fr Hllyburn Resurces Ltd. by Reiner Mielke, HBSc., MSc., R. Smerville Gelgical and Mining Engineering Ltd, 1052 Esquimalt Ave., West Vancuver, B.C. V7T 1J8

2 42Ae9SW BEATTY 0 10C TABLE OF CONTENTS KEY MAP...Page l LOCATION MAP...Page 2 CLAIM MAP Page 3 INTRODUCTION Page 4 GENERAL GEOLOGY Page 4 PHYSIOGRAPHY Page 4 PREVIOUS WORK...Page 5 GEOLOGY OF THE PROPERTY AND ADJACENT AREAS...Page 5 CONCLUSIONS Page 6 REFERENCES...Page 7 APPENDIX: GEOLOGY MAP. 1:2000 scale...map pcket

3 Page l 47' KEY MAP BEATTY * 1 GROUP HOLLYBURN RESOURCES LTD. BEATTY Twnship LARDER LAKE Mining Divisin ONTARIO Scale 1:

4 Page 2 LOCATION MAP BEATTY tt l GROUP NOLLYBURN RESOURCES LTD. BEATTY Twnship LARDER LAKE Mining Divisin ONTARIO Scale 1: u kr

5 Page 3 IMT4. llttti r-t r~nr* j utm CLAIM MAP BEATTY *1 GROUP HOLLYBURN RESOURCES LTD. BEATTY Twnship LARDER LAKE Mining Divisin ONTARIO Scale 1:31 6BO i i t O 1000 m

6 Page INTRODUCTION The 8 claims dealt with in this reprt (#L t L ), are situated in Beatty Twnship, Ontari, They cver the suth-half f Lt 4, and the suth-quarters f Lts 2 and 3, Cncessin I. These claims, are cvered by nrth-suth grid lines, 100 metres apart, which are chained in 20 metre intervals and tied tgether by a baseline at 300 metres nrth, and a tie line at 800 metres nrth. The suthern part f this grid is "tied tgether" by Highway 101. Access t the prperty is by Highway 101, east frm Mathesn, Ontari, A survey f the gelgy was carried ut in late Octber and early Nvember by R. Mie Ike and Tim Llyd GENERAL GEOLOGY The prperty is in the suth-central part f the Abitibi greenstne belt, between the Destr-Prcupine fault, 2 kilmetres t the suthwest, and the Pipestne fault, 5 kilmetres t the nrtheast (ODM 1973). The claim grup is thught t be cmpletely underlain by a metasedimentary rck unit cnsisting f greywacke, arkse, and argillite. This rck unit trends sutheast, dips steeply suth, and is in fault cntact with mafic vlcanic rck t the nrth and suth (Satterly k Armstrng, 1947; Prest, 1957). The mafic vlcanics als cntain sme felsic vlcanic units, and large and small mafic and ultramafic intrusive bdies that cut bth the sedimentary and vlcanic rcks. These in turn are cut by felsic intrusives, and later nrth and nrtheast trending diabase dykes. PHYSIOGRAPHY The prperty has very little relief and n bvius drainage pattern. It is mainly cvered by muskeg and alder bg, with tw small hills less than 3 metres high n the nrth edge f the prperty. These hills crrespnd with large utcrps that are adjacent t the prperty. A flat frested area 500 metres wide trending suth thrugh the center f the prperty, appears t be mainly underlain by runded bulders with sand. Hwever, a trench dug thrugh this zne 60 metres suth f the prperty, in Hislp Twnship (Map 1), shws that sme f this area is.directly underlain by sand (OGS 1986b).

7 Page 5 A snic hle drilled thrugh the muskeg in the east (OGS 1986a), indicates the muskeg is directly underlain by apprximately 6 metres f varved clay. Underlying this is till and sand, with a ttal verburden thickness f 24.4 metres. PREVIOUS WORK The mst recent wrk reprted n the prperty was that dne by Canadian Jhns-Manville in This wrk, cvering claims L , L and L ; includes magnetmeter, vertical lp EM, and bigechemistry (Canadian Jhns-Manville ). In 1971, airbrne magnetmeter, gamma ray, and EM surveys were flwn ver the area as part f a gvernment gephysical survey f the twnship (Barringer 1971). In 1944, the area was mapped by J. Satterly, and a gelgical reprt was published in 1947 (Satterly k Armstrng 1947). Sme earlier pits and trenches were als dug at the nrth fringes f the prperty. GEOLOGY OF THE PROPERTY AND ADJACENT AREAS The nly utcrps n the prperty are situated between lines 500E and 600E, nrth f the 300N baseline. These utcrps cnsist f carbnatized argillites which have a prminent fracture cleavage, prbably parallel t bedding, striking 96 degrees t 110 degrees, and dipping suth 73 degrees t 83 degrees. These argillites cntain trace amunts f finely disseminated pyrite, and smetimes narrw (Ocm), near vertical quartz ( ± pyrite) stringers and fractures that strike 60 degrees (Map 1) Ṗublished maps, (Satterly Si Armstrng, 1947; ODM 1973) shw the claim grup t be cmpletely underlain by metasediments; hwever a recent drill hle (OGS 1986a) suggests therwise. This hle drilled 500 metres east f the prperty n the Beatty Twnship line in Lt l, Cncessin l, intersected a cherty rhylite tuff. Apprximately 300 metres nrth f the prperty is a dirite dyke that cuts 155 degrees acrss the sediments. This dyke cntains auriferus quartz veins that strike 70 degrees and dip 70 degrees nrth. These veins were mst heavily mineralized in the dyke, and ne f these was explred in- 1915, and again in 1941 by a 122' deep shaft (Satterly k Armstrng, 1947). The best value reprted as a result f that wrk was 0.31 z/t acrss 4', fr a length f 180' (Fergusn et al. 1971). Drilling n the nrtheast extensin f this zne in 1974 (Canadian Jhns-Manvil le, 1974), gave a best value f 2.91 z/t ver l'.

8 Page 6 CONCLUSIONS The utcrp expsures in the area indicate that the prperty is mainly underlain by steeply suth dipping altered metasedimentary rcks, which strike east-sutheast. The cherty rhylite tuff encuntered just east f the prperty, may in fact be a felsite similar t that fund as small intrusive bdies in the sediments. This suggests that the prperty als cntains a felsic intrusive. Silicified fractures, with an rientatin similar t the auriferus quartz veins n adjacent grund, were fund in utcrp n the prperty. This suggests that similar gld bearing structures may als exist n the prperty.

9 Page 7 REFERENCES Barringer Research Ltd. 1971: Gephysical maps, ODMNA maps P-643, P-649, P-661, Beatty Twnship, Cchrane District, Ont. Canadian Jhns-Manville C. Ltd : Assessement Files, Kirkland Lake resident gelgist's ffice Fergusn, S.A.; Gren, H.A.; Haynes, R : Gld depsits f Ontari, ODM mineral Resurces Circular #13, part 1, p.49 Ontari Department f Mines 1973: Timmins - Kirkland Lake, Gelgical Cmpilatin Series, map 2205, Scale 1:253,440. Ontari Gelgical Survey 1986a: Snic Drillhle 84-12, Beatty Twnship, District f Cchrane, OGS map 80771, Gephysical/Gechemical Series, Scale 1:100,000 Ontari Gelgical Survey 1986b: Backhe Till Samples; Culsn, Beatty, and Hislp Twnships, District f Cchrane, OGS map 80794, Gephysical/Gechemical Series. Prest, U.K. 1957: Gelgy f Hislp Twnship, ODM, AR65, Pt.V, map N J Satterly, J. and Armstrng, H.S. 1947: Gelgy f Beatty Twnship, ODM, AR56, pt.vii, map N , 1":1000'.

10 Qualificatins f Authr HBSc. in Earth Science (1978), University f Waterl. MSc. in Earth Science (1985), University f Waterl, Fellw f the Gelgical Assciatin f Canada. BBB

11 ,--,, "Y f Ivy'1 N rthern Develpment Reprt f Wrk j OOCI yvty a nd Mines (Gephysical, Gelgical, Ontari ^ ^echemicaland Experter X ft Type f Survey(s) Address T Hlder ( s ) Survey Cmpany and Address f Authr (f Ge-Technical reprt) J15 6 r* A* m Credits Requested per Each Claim in Clumns at right Fr first survey: Enter 40 days. (This includes line cutting) 42A09SW BEATTY i wnsnip r Area. Dale f Survey (frm Si t) PVt : Prspectr's Liceni ^TSI6L ^ ]T"tal Miles ( line Cut Mining Claims Traversed (List in numerical sequence! Mining Claim Expend. Mining Claim Prefix! Number Days Cr. Prefix Number t :*0V :; 9#z 3 y# 900 Expend. Days Cr. O Ui O *? r^a. V ^^L^^O...,. - T K "0 1 Ci ^-i? ^^ ^ "2-7 fe' ' ft'^- -. '- A.*;'. ' QBH&3, 982^5 u.lg?.aisl.,,-y.. i* Vsv.V. y** \ v' '. t - l - *. Nte: Special prvisins Electrmagnetic credits d nt apply t Airbrne Surveys. ; Magnetmeter.., J Expenditures (excludes pwer stripping) Type * Wrk Perfrmed Perfrmed n Ctaim(s) Calculatin f Expenditure Days Credits Ttal Expenditures Instructins Tta! Days Credits may be apprtined at the claim hlder's chice. Enter number f days credits pr c'aim slected in clumns at right. ONT, t kfii ttia VSSESSMENT OFFICE L SURV PILES 988~ DEC 1 2 i RECEIVED ' Y Ttal number f mining claims cvered by this reprt f wrk r Date jf/n Recraed Hlder ^Ageni (S-gnaiure Certificatin Verifying Reprt f Wrk l hereby certify that l have a persnal and intimate knwledge f the fads set frth m t r witnessed same during and/r after its cmpletin and the annexed reprt is true. Name and Pstal Address f Persn Certifying 1362(85/12)

12 ntari Ministry f Nrthern Develpment and Mines Gephyslcal-Gelgical-Gechemical Technical Data Statement 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. Type f Survey(s) ' ^^OlOfA\ Cf\ \ fipahu luj* Twnship r Area Claim Hlder(s) &L-fAirJ 60)^/^0^, MINING CLAIMS TRAVERSED List numerically Survey Cmpany f\ t Aiifhnr f Reprt /?, /V.W/C^, 5Yr\er^)*\\^ 6&J, ' /7(h(Wj fnra\e*:v.^ijbf. " y t] ^ Address f Authr ^IL ^ k rdr\sify\ L~h.. 7^)71/71; fi J' j Dr\T. Cvering Dates f Surv ey Sehj\ h 0^1 t /vb 1 ( linecutting t ffice) if i J / -. Ttal Miles f Line Cut 'P.& ff rr\. I SPECIAL PROVISIONS DAYS CREDITS REQUESTED,^K.,.;,.I i*""* J ENTER 40 days (inc ludes 4HI line cutting) fr first 1 survey. ENTER 20 days fr additinal survey usi same grid. f*^r\\ O tvlpf Electrmagnetic M^gnptnmptpr Radimpfrir...- ng r. Pnlngira l '-fo Hrnrripmiral. AIRBORNE CREDITS (Special prvisin credits d nt apply t airbrne surveys) Magnetmeter... F.lprtrnmatrnptir RaHinmptrir. (enter days per claim) DATF,; N()0- l'/ 83 Sir.NATlJRF.! n,^77l^j4(/ f Authr f Reprt r Agent L- 9 &23W (prefix) (number)...,...,,..jl2.1^?...,..,...,,...,...,...j^.ll^...,,..., Qft j? S"2, M 13S3 mstf niite insufficient, lift If attach space OFFICE USE ONLY Res. Gel. Previus Surveys File N. Type Qualificatins p/.. O ^ OP '~- Date Claim Hlder fk ^ TOTAL CI, AIMS B 837 (85/12)

13 GEOPHYSICAL TECHNICAL DATA GROUND SURVEYS -- If mre than ne survey, specify data fr each type f survey Number f Statins Number f Readings Statin interval ^ ^ ^ - -Line spacing. Prfile scale Cntur interval ^ Instrument Accuracy Scale cnstant. fcu ^ Diurnal crrectin methd. l Base Statin check-in interval (hurs). Base Statin lcatin and value ECTROMAGNETK C"il cnfiguratin, Cil separatin Accuracy Methd: Q Fixed transmitter O Sht back Q In line Frenuenrv Parameters measured. D Parallel line 4 Instrument. Scale cnstant Crrectins made. Base statin value and lcatin. Elevatin accuracy. z; H N O, rsd D Q C* Instrument - ^- ^. ^ ^.. Methd D Time Dmain d Frequency Dmain Parameters - On time Frequency Off time Range. Delay time - ^^- ^ ^^ ^ ^ Integratin time ^ -. Pwer. Electrde array. Electrde spacing. electrde

14 SELF POTENTIAL Instrument Range. Survey Methd ^ - - ^.^ Crrectins made. RADIOMETRIC Instrument. Values measured. Energy windws (levels)- ^^ - ^. -.^^. ^- Height f instrument ^ -.Backgrund Cunt. Size f detectr -. ^-.. Overburden - ^-.. - ^ ^.^ (type, depth - include utcrp map) OTHERS (SEISMIC, DRILL WELL LOGGING ETC.) Type f survey ^ ^ Instrument ^^ Accuracy ^-^.- -. Parameters measured. Additinal infrmatin (fr understanding results). AIRBORNE SURVEYS Type f survey(s) Instrument(s) (specify fr each type f survey) Accuracy- - --, (specify fr each type f survey) Aircraft used ^^ ^-^ - Sensr altitude. Navigatin and flight path recvery methd. Aircraft altitude Line Sparing Miles flwn ver ttal area Over claims nly.

15 GEOCHEMICAL SURVEY - PROCEDURE RECORD Numbers f claims frm which samples taken. Ttal Number f Samples. Type f Sample. (Nature f Material) Average Sample Weight Methd f Cllectin Values expressed in: Cu, Pb, ANALYT1CAL METHODS per cent p. p. m. p. p. b. Zn, Ni, C, Ag, M, D D As.-(circle) Sil Hrizn Sampled. Hrizn Develpment. Sample Depth Terrain Drainage Develpment Estimated Range f Overburden Thickness. SAMPLE PREPARATION (Includes drying, screening, crushing, ashing) Mesh size f fractin used fr analysis Others Field Analysis (. Extractin Methd. Analytical Methd- Reagents Used Field Labratry Analysis N. Extractin Methd. Analytical Methd. Reagents Used Cmmercial Labratry (. Name f Labratry. Extractin Methd Analytical Methd. Reagents Used.tests).tests).tests) GeneraL General.

16 NOTES Cuiscn Twp. (M. 340) 400' Surfce Rights Reservtin lng the shres f all lakes and rivers., Surface and Mining Rights Withdrawn frm Slhing, sectin 36/BC rder N /88L OPENS W-29/88 VI *r..* l LO K) r IJ8809E J SK ^3 CO Q. LEGEND a ^j^trli^.^x.---. L. ^ - ^. l k--- L, j L, i6902 J3690I L. L. 7i4762 ' P, l 7W76I I L. O \- C PATENTED LAND PATENTED FOR SURFACE RIGHTS CNLY LEASE: LICENSE OF OCCUPATION CROWN LAV n '/.l." LOCATED LAND CANCELLED WINING R IGHTS ONLY SURFACE R IGHTS O NLY HIGHWAY 6 ROUTE N. ROADS TRAILS R;t,.WAYS POWER LIN!- MARSH OR M USKEG WINES r e* L.O. C.S. -OC. C. fft.r.o. S.R.O. /T" 1 * ' f y.y^ l S.R.O. 'SR.O. j l 7QQ896; nly * i(h summer u srt l ctim r TOWNSHIP OF BEATTY spjce tslimiled. 42A89SWe BEATTY 31M. Prt f T. 8. SPEIGHT 1 * M, yr/tte B ASE LINE Hislp Twp. (M.355) L y! L 9023jf/ 982^48 Oppr*. BO D I3'30" DATE OF ISSUE NOV LARDER WE DISTRICT O F COCHRAN LARDER LAKE MINING D IVISION SCALE: l INCH - 40 CHAINS ( 1/2 MILE) DR. k. X. DATE Oel/71 PLAN N. ONTARIO DEPARTMENT OF M5MES AND NORTHERN AFFAIRS

17 CONCESSION

18 r r G Q C7" 0 CT 0 H h 0 Ci (D ^ (O CT 0 - -I Ss s 0 (O 01 c at XTBV*" 7*-OOE 8*OO E 9-*OOE 1 I*OOE OJ O I2*OOE I3*OOE Z r ^v*- -4 l ( I- -t i- H l OJ > m 0 16* G C E IE c/) OD i rn O ~D H O H O) CONCESSION I E 3* * a ^ i^ H a ^ ^!^ 3 ṯ l c SJ tq W "^J n c P fr ' r- ^ m i > * " g3 H n ^ ^ B. X Q *^* ''^^" (TJ ^u.. ^^^ s H * O! i -i 3? : 1" m c 5 O 3 v ^^ i -^ O ^n ^^ -n l SOMERVI r m m z 2 m 2 r H M 3) x r K O] c S z. m H r H 3 p 5 i P ra )wsl M g GC ^. 0. x > ^s* ra N 3 1 > > S p- V D1 M OJ a 5 1 T 5 P K * f* ;5J! J" D a i 3 > 5 > U) S 5 S a- X 5 S 5 S S m p is i i i 3 i~ -r B? ~ -* * 9k ^4 r* Z ^ L m "* x k 5 It O) W 'K n > > r r m m i l g n ~ i n n? ea > CLAIM if BOUNDS x s T 0 g"? - ^ S ^ Q Q ^! ^ rsi Q. 0) Q. ^ i a* *~\ rn tij m zo 1

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