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1 i ' ALAN EALVORSON GEOPHYSCAL REPORT ON A MAGNETOMETER AND TWO STATON VLF-EM SURVEY TY CLAMS CRANBROOK MNNG DVSON NTS: 82J/2W LATTUDE: N 50" 02' LONGTUDE: W 4O 53' AUTHOR: JEFFREY C. MURTON, B.Sc., P.Geoph. Geophysicist DATE OF WORK: 30 October to 4 November, 989 DATE OF REPORT: 5 December, 989 \ WHTE GEOPHYSCAL NC.

2 i. TABLE OF CONTENTS PAGE NTRODUCTON... PROPERTY LOCATONS AND ACCESS... OMN-PLUS DATA COLLECTON AND PROCESSNG METHODS DSCUSSON OF RESULTS RECOMMENDATONS AND CONCLUSONS REFERENCES... 8 NSTRUMENT SPECFCATONS STATEMENT OF QUALFCATONS... COST BREAKDOWN... 2 LLUSTRATONS FGURE - AREA LOCATON MAP FGURE 2 - CLAMS MAP FGURE 3 - REGONAL MAGNETC MAP FGURE 4 TOTAL FELD MAGNETC PROFLES FGURE 5 - FLTERED TOTAL FELD MAGNETC PROFLES (50 metre low pass filter applied and base shifted) FGURE 6 - CUTLER VLF-EM PROFLES FGURE 7 - SEATTLE VLF-EM PROFLES FGURE 8 - VLF-EM CONTOURS: SEATTLE - FLTERED N-PHASE FGURE 9 - GEOPHYSCAL NTERPRETATON MAP WHTE GEOPHYSCAL NC. /

3 N"RODUcTON From October 30th to November 4th, 989, White Geophysical nc. conducted a program of geophysical surveying for Alan Halvorson on the Ty Claims in the Cranbrook Mining Division of B.C. (Figure ). A total field magnetics and a two-station VLF-EM survey was conducted; the VLF-EM frequencies selected were 24.0 khz (transmitter - Cutler, Maine), and 24.8 khz (transmitter- Seattle, Washington). An Omni-Plus magnetometer/vlf acquisition unit was used to collect line kilometres of data. The purpose of this survey is to assist in geological mapping of the property, and to direct future exploration activities to areas where the geophysical responses suggest potential mineralization. PROPERTY LOCATON AND ACCESS The Claims are approximately.5 kilometres east of Elkford, B.C. and adjacent to the west bank of the Fording River (Figure 2). Vehicle access to the survey area is 4. kilometres from Elkford along the road to the Fording Coal Mine to the parking lot at the Josephine Falls trailhead. The Ty Claims are bisected by the well-maintained trail to Josephine Falls which provides good walking access to the east side of the nine-unit claim block. A natural gas pipeline intersects the north-west corner of the property. OMN-PLUS DATA COLLECTON AND PROCESSNG METHODS The VLF and magnetometer surveys were conducted simultaneously using the Omni-Plus System built by EDA nstruments nc. This instrument contains several micro-processors and associated circuitry for monitoring, processing and storing data. The VLF WHTE GEOPHYSCAL NC. J

4 0 ALAN HALVORSON TY CLAMS LOCATON MAP w= 2 o0oo0o NXS. 82J/2W FG.

5 ALAN HALVORSON TY CLAMS CLAMS MAP NXS.82 32W SCALE. :5OOOO FG. 2 /

6 portion of this instrument uses the VLF-electromagnetic fields generated by submarine navigation and communication stations which operate in the 5-30 khz frequency bandwidth. The magnetic field generated by a station is horizontal and parallel to the ground, whereas, the electrical field is oriented vertically. The instrument measures the presence of a secondary fields which appears as a distortion in the horizontal, primary field due to a conductor. Conductive zones usually consist of argillaceous graphitic horizons, conductive clays, water-saturated fault and shear zones, or conductive mineralized bodies. Distortion of the horizontal, primary field produces a VLF-EM anomaly in-phase, quadrature, and total field intensity readings. For maximum coupling, and in turn, imaging, a transmitter should be selected in the same direction as geologic strike. The direction of the horizontal EM field is perpendicular to the direction from the transmitting station. The advantage of using the Omni-Plus is that data from up to three VLF frequencies can be recorded simultaneously since the instrument automatically orients to each of the = transmitting station directions when the unit is initiaded. -_ The magnetics portion of the survey was conducted using the magnetometer system built into the Omni-Plus in conjunction with an EDA base magnetometer. The quartz clocks in the two instruments are synchronized in the morning. At the end of each survey day the field unit is connected to the base unit via an RS232C interface. At this time the base units readings are match to the field units and then dumped to a microprocessor via the RS232C interface. The microprocessor writes the data to a storage medium, most commonly magnetic disks, for later processing. The solid state memory of this instrument and the microprocessors give rapid data gathering at a rate of some 5-0 kilometres per day at 2.5 metre intervals. c WHTE GEOPHYSCAL NC. J

7 d Approximately kilometres of data were collected at an average station spacing of 2.5 metres. Sixteen parallel lines, LO N to L500 N, spaced 00.0 metres apart and metres long, were surveyed. The survey lines and stations locations were orientated and flagged by White Geophysical employees using a compass and a hip chain. A baseline, metres west of the legal claim post, aligned north-south was initially blazed and flagged. Survey lines, laid-out from the baseline, were blazed, cleared, and flagged with a 25 meter station interval until the previously flagged claim boundaries were intersected. The grid was surveyed on November 4, 5, 7, and 4. The total field magnetic data was initially corrected for diurnal (daily) drift and then displayed in profile form (Figure 4). t was apparent that the magnetic data was overprinted by very short wavelength (less than 50 metres wide) anomalies or noise. A 50.0 metre low-pass filter was applied to remove these lvfeaturestl. The filtered data was displayed and it was necessary to remove residual level differences on the data collected on November 7 and 4. These residual level differences are attributed to diurnal changes. Base shifts of 0 nanoteslas were applied to lines L800 N to L400 N, 22 nanoteslas to L500 N and the data was redisplayed (Figure 5). The 50 metre filtered data and a 00 metre low-pass filtered datasets were gridded and contoured. The contoured data was unsuitable for display and interpretation purposes because the correlatable magnetic anomalies have significant line-by-line magnetic level differences. The Cutler, Maine, and the Seattle, Washington VLF-EM in-phase, quadrature, and total field responses were edited, base shifted, and plotted (Figures 6 and 7). Base shifts were necessary to remove effects of transmitting station strength changes. Both the Cutler and Seattle in-phase data were Fraser Filtered, gridded at a 2.5 metre cell size, contoured, and plotted. The contoured plots were nearly identical so only the Seattle filtered in-phase was reproduced for this report (Figure 8). WHTE GEOPHYSCAL NC.

8 ALAN HALVORSON TY CLAMS REGONAL MAGNETC MAP NXS. 62 J / 2W SCALE= :sooo0 FG. 3

9 F 4 DSCUSSON OF RESULTS The Energy, Mines, and Resources Canada aeromagnetic data (Figure 3) shows an almost featureless regional magnetic expression which is typical of a very thick sedimentary rock sequence. The magnetic response observed on the Ty Claims (Figures 4 and 5) contains very little magnetic relief; the range between the unfiltered magnetic minimum and maximum (58345 to nanoteslas) approaches that of the observed diurnal drift (58364 to nanoteslas). The filtered magnetic response suggests numerous, approximately north-south, ribbon-like trend lines which are separated between 50.0 and 200 metres. t is important to note that these trends are very local and very subtle features and the interpretation of the line-by-line correlation is qualitative. No large changes in magnetic values were observed that would reflect a change in rock-type containing large, contrasting concentrations of magnetic minerals (i-e.: a boundary between sedimentary and more mafic - more magneticigneous rocks). Some of these trends correspond to very local topographic changes and thus represent either a change in overburden thickness, a topographic effect, or a combination of both. The Cutler and Seattle VLF-EM responses are nearly identical (Figures 6 and 7). The transmitter coupling angles are almost within 80 degrees of each other. The interpreted conductors (Figures 6, 7, S 9) trend either NE, oblique to the magnetic trends, or in most instances, are nearly coincident with the N-S magnetic and topographic trends. Overall, the conductors observed are poor; the quadrature response nearly mimics the inphase and there are no strong in-phase crossovers and, in some cases, no associated total field anomalies. These poor conductors may be associated with conductive overburden, weathered bedrock, and conductive effects in swampy areas. Good conductors exhibit strong in-phase crossovers, the quadrature usually lags by up to 90 degrees or mirrors the in-phase L WHTE GEOPHYSCAL NC. /

10 C response, and the total field is a local high. The VLF-EM responses north of ponds on LO N at station and on L400 N at station are typical of good conductors. Beneath an "over printing" of a combination of variable overburden effects, topographic effects, and spurious nearsurface magnetic anomalies in the overburden, the Author visualizes two geological models which would account for the underlying, N-S trending, magnetic striping. The first model may be due to either a near-vertical dipping, deltaic sedimentary sequence which contains layers of silts that contain varying concentrations of magnetic minerals. These minerals which may be sourced in either the original erosional detritus or have formed subsequent to deposition, perhaps due to penetration of the sedimentary rocks by hydrothermal fluids. The second geologic model visualized is a relatively deeply-buried lava flow where the magnetic striping corresponds to composition changes in the extruded igneous material that was deposited in numerous minor volcanic "events". The first model would be more likely in the context of the geological survey conducted by Maher 989) on claims immediately to the south. The second volcanic model also not as likely because volcanic extrusion or intrusion events are usually local in nature; the government aeromagnetics for the area should show local magnetic highs associated with any inferred volcanism. \ WHTE GEOPHYSCAL NC. \

11 E RECOMMENDATONS AM) CONCLUSONS 6 n November of 989 White Geophysical nc. conducted a total field magnetics, and two station VLF-EM survey on Alan Halvorson's Ty Claims. The magnetometer survey shows marked evidence of short wavelength, N-S magnetic striping (less than 00 metres wide) which in some instances is correlated over a thousand metres of length (figures 4, 5, & 9). The VLF-EM conductors interpreted (figures 6 to 9) are either nearly coincident or obliquely cut the magnetic trend lines. Many of the conductors are poor and may be attributed to swampy, watersaturated overburden. Some of the coincident magnetometer and VLF-EM features correspond to local topographic relief observed by the Author on the property. The parallel adjacent magnetic and VLF-EM depressions may correspond to increased surficial cover or overburden thickness. A lithologic model which would create the observed magnetic response is in question; there are few outcrops visible on the property. Two models are visualized. The first, more likely model, is faulted block of near verticaldipping deltaic sediments which may have been subjected to hydrothermal percolation and pyrrhotite and sulphide enrichment along the bedding planes. The hydrothermal-enrichment model would also correlate with Alan Halvorson's discovery of chalcopyrite float in the adjacent Fording River. The second model visualized is a volcanic one; the magnetic striping represents a buried lava flow that was created over numerous minor extrusion events with composition differences of the extruded material. t is recommended that the client deploy a reverse circulation drill on the north edge of the Ty Claims at a location which has both reasonable access and an intersecting magnetic anomaly. The purpose of the drill and the location is to determine in a costeffective manner both overburden thickness and volcanic or deltaic bedrock composition. Further exploration is not recommended on this property if the drill cuttings do not show - WHTE GEOPHYSCAL NC.

12 r 7 7 signs of igneous rocks or hydrothermal minerals. f igneous are found than geochemical study should be conducted. Contingent upon favorable geochemical results, a follow-up geophysical program of high-resolution gradient magnetometer, and an induced polarization survey should be done to delineate the mineralized zones and position future drill locations and azimuths. - -".,.-,< Respectfully submitted, Jeffrey C. Murton, B.Sc., P.Geoph.(APEGGA) Professional Geophysicist _. WHTE GEOPHYSCAL NC. i

13 i REFERENCES: Maher, K., 989: Geological Survey and Assessment of Mineral Claims M. through M., A geological report for Alan Halverson, April 9,989. \ WHTE GEOPHYSCAL NC.

14 --PLUS M A V / V L F SPECFCATONS Dynamic Range... 8,000 to 0,000 gammas. R oll over display feature Tuning Method... Automatic Fine Tuning... Display Resolution... Processing Sensitivity... Statistical Error Resolution Absolute Accuracy... Standard Memory Capacity Total Field or Gradient.. suppresses first significant digit upon exceeding 00,000 gammas. Tuning value is calculated accurately utilizing a specially developed tuning algorithm + 5% relative to ambient field strength of last stored value 0. gamma gamma 0.0 gamma +- gamma at 50,000 gmas at 23OC + 2 gamma over total temperature range,200 data blocks or sets or readings Tie-Line Points data blocks or sets or readings Base Station... 5,000 data blocks or sets or Display... readings Custom-designed, ruggedized liquid crystal display with an operating temp. range from -4OOC to +5SoC. The display contpins six numeric digits, - * decimal point, battery status monitor, signal decay rate and signal amplitude monitor and function descriptors. RS 232 Serial /0 interface 2400 baud, 8 data bits, 2 stop bits, no parity WHTE GEOPHYSCAL NC. -

15 OMN-PLUS MA-/VLF SPECFCATONS Physical Dimensions Wt(kg): w x h x d(mn) nstrument console only 3.8: 22 x 246 x 20 Battery belt.8: 540 x 00 x 40 Battery cartirdge.8: 38 x 95 x 75 Sensors Magnetometer remote sensor.2: 56 dia x 220 Magnetometer gradient sensor 2.: 56 dia x 790 VLF sensor module 2.6: 280 x 90 x 60 Environment Electronics Operating temperature range Relative humidity Magnetometer Sensors Temperature range Relative humidity VLF Sensor Temperature range Relative humidity Standard Memory Capacity Field unit Tie-line points Base stations Electronics -40 C to +55 C 0 to 00% (weather-proof) -45 c to +55 c 0 to 00% (weather-proof) -45 c to +55 c 0 to 00% (weather-proof) 300 sets of readings 00 sets of readings 5500 sets of readings RS-232C serial /O 300 to 9600 baud(programmabe); 8 data bits, 2 stop bits; no parity Electronics console... Enclosure contains electronics and battery pack (if not contained in separate belt). Front panel includes liquid crystal display (LCD), and keypad. Power Supply... nternal battery pack or external battery belt; or 2V car battery (base station). 5 WHTE GEOPHYSCAL NC. +

16 STATEMENT OF QUALFCATONS NAME: MURTON, Jeff C. PRO~SON: EDUCATON: PROFESSONAL ASSOCATONS: KXPERKNCE: Geophysicist B.Sc - Geophysics Major University of British Columbia Society of Exploration Geophysicists Association of Professional Engineers, Geologists, and Geophysicists of Alberta Geophysicist, nteractive Graphics with Western Geophysical Company of Canada Ltd. in Calgary, Alberta Geophysicist with White Geophysical nc. L WHTE GEOPHYSCAL NC. /

17 COST BREAKDOWN: DESCRPTON Mobilization and demobilization, 2 men, Lothar Torheiden and Jeff Murton... 3 man $350. man day... Omni-Plus magnetometer/vlf-em surveying: Establishment of lines: October 3 to November 8, November 4, 5, 7, & 4 ( $205./km)... Data processing, plotting, drafting, reproduction, data analysis and report writing... Total 7 L TOTAL $, $ 4, $ 4, $, $ 2, L WHTE GEOPHYSCAL NC. /

Report of Gridding and Magnetic Surveys. On the. Munro Property. Munro and Beatty Townships, Ontario. Larder Lake Mining Division

Report of Gridding and Magnetic Surveys On the Munro Property Munro and Beatty Townships, Ontario Larder Lake Mining Division Claims: 39 4244 For Big Red Diamond Corporation October 3, 2 Timmins, Ontario