FREEWEST RESOURCES INC

Transcription

1 NORANDA-FREEWEST o CO CO (Meters) 100 l NORANDA-FREEWEST HOLLOWAY FREEWEST RESOURCES INC o o o Harker-Holloway Properties o o o o SCHEMATIC LONGITUDINAL PROJECTION OF THE LIGHTNING ZONE IHOLE i INTERGER*r o NORANDA-FREEWEST NEWMONT-TEDDY SEAR O Meters l l l

2 0 O UJ o IT) CJ to Surface HOLLOWAY Noranda Freewest C A UUt N Noranda Freewest LEGEND HoleNo - n Oz.AuXt Intercept Feet (core length) O New Results PREVIOUSLY REPORTED R O Greater than 0.10 opt X K Less than 0.10 opt X 10' UJ 8 i 5ULTS 2OOm. 40Ora 6OOm. 80Om. Surface S TEDDY BEAR l HOLLOWAY g o Noranda f Noranda o o o 8 o!n Newmont j Freewest Q ^Freewest 1 Teddy Bear ' 20Om. 4OOm. 60Om o 87-9 OQ o K c ~ O Oo NSVC i ^H 84-.ll ~7 9s 1 O-JTSl 58 j 9' 5 8 *ft i 8 ^ T r-?; r^*-' W?/ le,, l J 0^2 74 NSV 6-9' Q3 ' r -j ONSV 47 i 0-43 t ) o 42 ( \ 78 G5 tf C o47 1 OJSPO&-J0 -] J spo0 Q8 ' 41 ^'^2 l01 02* /^'--'-TW O VERTICAL LONGITUDINAL SECTION SCALE.1: O SO o O O UJ O S m o 0 t O O O 70 O ' ) Metres (/J UJ o o ' 34 ^5 l r \ ' ' ' u u: s m O 28-5' i 1 i 1

3 63.6/ D12SE839I HOLLOWAY 010 LIGHTNING ZONE - HOLLOWAY PROJECT PROJECT DEVELOPMENT PROPOSAL FOR PHASE II SURFACE DIAMOND DRILL PROGRAM NORANDA EXPLORATION COMPANY, LIMITED (no personal liability) AUGUST 24, 1990 TIMMINS, ONTARIO If *ID' (4-2 IAN ATKINSON JOHN WAKEFORD RICHARD COTE

4 Summary With the completion of approximately 901; of the initial 30,000m diamond drill program as of August 20, 1990, a second phase of surface drilling is recommended to: (a) further assess the continuity of the gold mineralization of the Lightning Zone and (b) continue delineation drilling to extend the mineralization which remains open to the east and at depth. An additional 19,500 metres of diamond drilling are proposed at estimated cost of $1,764,000. Noranda's portion of the proposed expenditures is estimated to be $1,057,000, Freewest's portion should be $795,000 and Newmont's 549,500. K

5 PROPOSAL FOR ADDITIONAL DIAMOND DRILLING HOLLOWAY - PROJECT DEVELOPMENT LIGHTNING ZONE Objectives h H N H l m With the completion of the initial 30,000m drill program anticipated for approximately mid-september 1990, a proposal for additional diamond drilling is recommended. Geological reserves have been increased from the initial 1,972, grams Au/tonne. Reserves are currently being recalculated to include data upto hole The proposal is to continue the systematic drill testing of the Lightning Zone with the following objectives in mind: 1) Complete the infill definition drilling of 50m centres to define the limits of the Lightning Zone to a vertical depth of 700m from surface. 2) Carry out detailed diamond drilling at 25 metre centres in selected areas of good mineralization to better assess the lateral and vertical continuity of the gold mineralization within the Lightning Zone.

6 3) Continue to assess the extensions of the Lightning Zone by drilling at 100m centres at depth and down plunge to the east from the gold mineralization outlined to date. 4) Carry out delineation drilling at 50 metre centres on the Middle Zone mineralization. The proposal is to complete 43 additional drill holes consisting of both new holes from surface or splays from existing holes in efforts to determine the continuity of the main mineralized zone at a minimum 25m spacing. This second phase of drilling can run as a continuation of the current drill program. I

7 PROPOSED EXPENDITURES - PHASE II DIAMOND DRILLING LIGHTNING ZONE Diamond Drilling Direct Drill Costs Surveying of Holes 19,500m 9 $68/l $l / 326,000 50,000 Engineering Drill Supervision/Report Writing 520 days 6 250/day 130,000 Assaying Core Splitting/Assayingt 4000 samples 6 $25 ea. 100,000 Services/Camp Costs Heals, Lodging, Vehicles TOTAL FIELD COST $1,770,000

8 LAMPLUGH TWP. HARKER TWP. FRECHEVILLE TWP. HOLLOWAY TWP. H f Pro p t rt y -- Figurt - 2 CLAIM MAP Ho l lo way Datt Aoril l987 N. T.S. 32-D-l. SCO/, f -' 2640' NORANDA EXPLORATION CO..

9 Hallo way Pnptrt/ Figurt - l LOCATION PLAN Property- Holloway Daft April 1987 A/. ts. 32-D-I2 Drawn By NOR A NO A EXPLORATION CO. LTL Quebec

10 PROGRESS REPORT Division: N.E. Ontario District: East Abitibi Project: Holloway P.O. 155 Month: October 1990 Definition drilling during October tested for continuity between previous intersections in the western half of the deposit. Delineation drilling at the east end was designed to define the upper limit of the emerging "shoot" east of 5800E, above the main trend. Five (5) holes were completed (119, 121 A, 122, 125, 72AW) and two (2) in progress (72AX, 52W) at month end, for a total of 1,919.0m. Significant results are summarized as follows: Hole Lightning Zone Remarks Assays Co-ordinates g70.9m m E 121A 5.57g713.0m (71/ E 122 V m e g71 7.7m m e 50m up dip from 96 25m up dip from 35 65m E of 91 75m "down-dip" (flat) of AW 9.7g711.3m m E 24m W of and up from 72A 72AX In Progress -410m75450E 62W In Progress -435m75500E 35m up dip of 72A 40m up dip of 62

11 The 121A intersection is almost identical to adjacent holes (35,61) in terms of both grade and thickness. The 72AW intersection is similar in grade to adjacent holes 69 and 72A but only SO-40% as thick. Both holes however, demonstrate good continuity of the Lightning Zone in this area of the deposit. Holes 122 and 125 define the upper limit of the emerging eastern shoot at the -400m roll (flat dip), as is the case with the main shoot to the west. Following are summary logs for holes in progress during October: HW (5800E) O m Overburden Conglomerate Greywacke, argillite Mafic volcanics Argillite, ultramafic volcanics (upper unit) Ultramafic volcanics (upper unit) Mafic volcanics : Lightning Zone: massive flows; weak alteration Quartz vein Ultramafic volcanics End of Hole HW A (5350E) O m Overburden Greywacke, argillite Mafic volcanics : Lightning Zone: variolitic flow bx Ultramafic volcanics End of hole HW (5900E) O m Overburden Greywacke, argillite Mafic volcanics Ultramafic volcanics (upper unit)

12 Mafic volcanics : Lightning Zone: variolitic pillowed flow, massive flow; nil py Ultramafic volcanics End of hole HW (5900E) O m Overburden Greywacke, argillite Mafic volcanics Ultramafic volcanics (upper unit) Mafic volcanics : mineralized zone: variolitic massive flow : hangingwall zone: variolitic pillowed flow : Lightning Zone: variolitic flow top bx ultramafic volcanics End of hole HW-90-72AW (5425E) 305.0m Wedge Greywacke, argillite : no core (directional drilling) Mafic volcanics : Lightning Zone: variolitic flow top bx Ultramafic volcanics End of hole HW-90-72AX (5450E) 297.0m Wedge (305.4) Hole in progress HW-90-62W (5500E) Wedge Mafic volcanic : no core (directional drilling) Ultramafic volcanics (upper unit) Greywacke, argillite (441.4) Mafic volcanics Hole in progress The focus of November drilling will continue to be definition (infill) of the upper part of the main shoot.

13 October Production Status 155 Holloway P.O Teddy Bear P.O. Holes 5 4 Meters 1, ,877.5 Samples

14 PROGRESS REPORT Division: N.E. Ontario District: Project: Teddy Bear - P.O. 152 Month: East Abitibi October 1990 Delineation drilling targeted primarily at the east end of the property continued through October. Four (4) holes were completed (116A, 118, 120, 123A) and three (3) others in progress (110AW, 124A, 126) at month end, for a total of 1,877.5m. Significant results are summarized as follows: Hole Lightning Zone Assays Co-ordinates Remarks 110A 8.33g77.8m m E Assay update 116A 6.40g711.65m m E 60m W of 110A 120m down dip of m m e and 5.67g77.5m g721.3m m E or 6.20g740.2m 123A Pending ~ -626m E (no sig. values expected) 124 In progress -700m75750E 126 In progress -700m75600E 95m down dip of m W of 86A, 100m down dip of m E of 86A 50m down dip of m W of 116A, 115m down dip of 103W 50m E of and 75m vert, below AW In progress -650m75850E 55m up from and 25m E from 110A (directional hole)

15 The intersections in 116A (5783E) and 110A (5824E) extend the down plunge limits of the "main shoot" or "core of the deposit" beyond hole 53 (5654E). Deeper intersections in this same area (71 A, 79A) indicate additional potential. The poor intersection in 123A appears to limit the strike length of the shoot at -600m elevation. Hole 124 (in progress) will test the shoot's strike length at -700m. Hole 110A W (in progress) will test for continuity between this main shoot and the emerging one (en echelon up) currently defined by intersections in 98, 109 et.al. ( E/-500 to -600m). The holes 118 and 120 intersections open up possibilities for additional "shoots" below (down dip of) the main trend. Hole 126 (in progress) will test this potential. Following are summary logs for holes in progress during October: HW A (5800E) O m Overburden Seager's Hill mafic volcanics Conglomerate Greywacke, argillite Mafic volcanics : Lightning Zone: variolitic flow breccia : silicified argillite, greywacke Ultramafic volcanics Mafic volcanic E.O.H. HW (5300E) O Overburden Conglomerate Greywacke, argillite Mafic volcanics : Lightning Zone: massive flow Ultramafic volcanics End of Hole

16 HW (5550E) O Overburden Seager's Hill mafic volcanics Conglomerate : diorite dyke A: fault zone Greywacke, argillite Mafic volcanics : Middle Zone: massive flow : Lightning Zone: variolitic flow top breccia ultramafic volcanics End of Hole HW A (5700E) O Overburden Seager's Hill mafic volcanics Conglomerate Greywacke, argillite : FP mafic dyke Mafic volcanics : Lightning Zone: variolitic flow : hm altered Ultramafic volcanics End of hole HW A (5750E) O Overburden Seager's Hill mafic volcanics : GQy, FP mafic dykes : syenitic FP Conglomerate (487) Greywacke, argillite (direction drilling - no core) HW (5600B Hole in progress O - Hole in progress (overburden) HW AW (5850E) Wedge off 433.0m Hole in progress (awaiting directional drill)

17 The focus of November drilling will continue to be delineation of the down-plunge extent of the main shoot and its possible convergence with the eastern shoot, east of 5700E and below -600m.

18 PROGRESS REPORT Division: N.E. Ontario District: East Abitibi Project: Holloway P.O. 155 Month: November 1990 Definition drilling continued through November in the western portion of the deposit (5400 to 5500E/-350 to -500m elevation) as did delineation drilling at the east ext. Delineation of the bottom edge of the main trend at the west end of the deposit commenced. Five (5) holes were completed (62W, 62X, 72AX, 78W, SOW) and four (4) in progress (75W, 82W, 129, 130) at north end, for a total of 1,459.2m. Hole 128 was collared but postponed, in favour of a different target. Significant results are summarized as follows: Lightning Zone Hole Assays Coordinates Remarks 62W 10.4g76.3m 7.3g713.0m m E nrV5497.9E 20m updip of 62 LZ. overturned (drilled downdip) 62X 7.4g719.2m 5.2gyi0.2m rrV5474.0E m E 35m W of 62 LZ. overturned (drilled downdip) 72AX 11.6g77.4m rrV5457.7E 45m updip of 72A 25m downdip of 32 (extended -400m roll) 78W Pending -492m75490E 15m updip of 78 30m downdip of 62

19 Hole Assays Coordinates Remarks SOW Pending -480m75407E 30m updip of 80 45m downdip of 75 Holes 62W, 62X and 72AW extend the strike length of the main trend eastwards, by 20-30m between -380 and -480m elevations, with averaged grades in the 7-12 g/t range. Hole 78W also intersected LZ along the east edge of the trend and appears to be of comparable tenor. Hole SOW intersected LZ along the west edge of the trend. Following are summary logs for holes in progress during November: HW-90-72AX (5450E) Wedge off 72A at 295.0m Summary Log greywacke, argillite : directional drilling - no core mafic volcanics : Lightning Zone: flow top, hyaloclastite : quartz vein ultramafic volcanics END OF HOLE DDH HW-90-62W (5500E) mafic volcanics : Lightning Zone: hanging wall style, locally variolitic flow, flow breccia, hyaloclastite : Lightning Zone: flow ultramafic volcanics END OF HOLE HW-90-62X (5475E) Wedge off 62 at 268.0

20 Summary Log mafic volcanics : directional drilling - no core : Middle Zone: variolitic pillowed flow breccia, hyaloclastite : Lightning Zone: variolitic flow breccia, flow , locally hematitic ultramafic volcanics END OF HOLE HW-90-78W (5500E) Wedge off 78 at 390.0m Summary Log mafic volcanics : directional drilling - no core : Lightning Zone: variolitic flow breccia, flow ultramafic volcanics END OF HOLE HW-90-80W (5400E) Wedge off 80 at 242.0m Summary Log greywacke, argillite : directional drilling - no core mafic volcanics : Middle Zone?: flow top breccia, 20"36 quartz ankerite vein : Lightning Zone: variolitic flow top breccia; weak pyrite ultramafic volcanics END OF HOLE HW-90-75W (5500E) Wedge off 75 at 274.0m

21 Summary Log greywacke, argillite : directional drilling (425) mafic volcanics HOLE IN PROGRESS HW-90-82W (5500E) Wedge off 82 at 321.Om HOLE IN PROGRESS HW (5350E) Summary Log overburden Seager Hill mafic volcanics 35.0 Hole Postponed - casing left HW (5350E) Summary Log overburden (149) conglomerate HOLE IN PROGRESS HW (5900E) Summary Log overburden (86) conglomerate HOLE IN PROGRESS Holes 75W and SOW continue definition (in-fill) of the west portion of the main trend. Holes 128 (postponed) and 129 are targeted to follow-up 118 (east, east/down) and thus delineate the emerging steeply-plunging off shoot at the western extremity of the main trend. Hole 130 is targeted at extending the strike length of the eastern trend at the -525m level (above Cadden).

22 PROGRESS REPORT Division: N.E. Ontario District: East Abitibi Project: Teddy Bear P.O. 152 Month: November 1990 Delineation drilling continued through November, targeted at the central and eastern portions of the deposit. Five (5) holes were completed (124A, 126, 110AW, 116AW, 124AW) and one (1) in progress (127) at north end, for a total of 2,623.0m. Significant results are summarized as follows: Lightning Zone Hole Assays Coordinates 123A V m E 124A 18.09g73.3m m E g725.3m m E 110AW 11.8g725.9m m E 116AW Pending ~642m75791 E (NSV expected) 124AW Pending ~660m75745E (NSV expected) Remarks Assay update 35m of 116A, 110m downdip of 103W 60m E of and 115m vert, below m E of and 70m updip of 110A 10m E of and 50m up dip of 116A 50m updip of 124A Holes 123A, 124AW and 116AW (all interesting LZ at approximately the same elevation) appear to terminate the down plunge continuation of the main trend. Hole 110AW at the same elevation to the east, obtained the best intersection to date in terms of grade-thickness, and appears to extend the down-dip limits of the eastern, ex-echelon trend, along the Cadden boundary.

23 Holes 126 and 124A show additional potential down-dip of the main trend below -650m, although grades continue to be lower than average (5-8 g/t range). Hole 127, in progress, is targeted for -TOOm/SSOOE (west and down from 120). Following are summary logs for holes in progress during November: HW A (5250E) Summary Log greywacke, argillite : directional drilling - no core mafic volcanics : Lightning Zone: variolitic flow breccia, massive flow ultramafic volcanics mafic volcanics END OF HOLE HW (5600E) Summary Log overburden Seagers Hill mafic volcanics conglomerate greywacke, argillite mafic volcanics, porphyritic greywacke, argillite mafic volcanics : Lightning Zone: variolitic flow, flow breccia ultramafic volcanics END OF HOLE HW AW (5850E) Wedge off 110A at 433.0m

24 Summary Log greywacke, argillite : directional drilling - no core mafic volcanics : Lightning Zone: variolitic flow breccia, hyaloclastite argillite ultramafic volcanics : mafic volcanics END OF HOLE HW AW (5800E) Wedge off 116A at 487.0m Summary Log greywacke, argillite : directional drilling - no core mafic volcanics : Lightning Zone: variolitic flow; very weak pyrite greywacke ultramafic volcanics END OF HOLE HW AW (5750E) Wedge off 124A at 472.0m Summary Log greywacke, argillite : directional drilling - no core mafic volcanics : Lightning Zone: variolitic flow; very weak pyrite, local hematite ultramafic volcanics END OF HOLE HW (5500E) overburden Seagers Hill mafic volcanics conglomerate, sandstone (348.4) greywacke, argillite mafic volcanics, porphyritic (608.0) greywacke, argillite HOLE IN PROGRESS

25 PROGRESS REPORT Division: N.E. Ontario District: East Abitibi Project: Holloway P.O. 155 Month: December 1990 Drilling was suspended in mid-month, following completion of seven (7) holes (75W.82W, 129AI 130,38W,75S,130W), with one (1) left in progress (131) for a total of 4,407.5m. Significant results are summarized as follows: Lightning Zone Hole Assays Coordinates Remarks 78W 12.02g715.3m m E Assay update SOW NSV ITI/5407.4E Assay update 75W 82W 13.50g74.1m m E 6.1 Sg/12.7m m E 7.75g711.2m m E 30m E of 75 40m vert, below 72AW 25m up-dip of 82 25m down-dip of A 3.50g72.7m m E g723.7m ~-494m7~5907E 100m down-dip of 48 35m E of m down-dip of m E of W 75X 10.97g718.0m m E 10.99g76.95m m e 20m up-dip of 38 25m down-dip of 62X 15m up-dip of 75W 40m down-dip of W 13.64g75.0m ~478m7~5902E 30m up-dip of m down-dip of 175

26 Of the six (6) definition holes drilled to evaluate continuity of the main trend between E and -400 to -500m elevation, only one (SOW) failed to intersect significant mineralization. The net result of this hole and the hole 78W intersection, at about the same elevation to the east, is to shift the limits of the main trend eastwards by 10-15m without affecting its strike length. The balance of the new intersections in this sector indicate good continuity of the zone. Hole 129A, targetted to delineate an emerging off-shoot below the main trend (east of hole 118) intersected only a narrow, low grade Lightning Zone. The holes 130 and 130W intersections at the east end of the deposit above Cadden, demonstrate excellent potnetial for significant new tonnage in this area. Hole 130 is the fourth intersection in the area of better than 200 gram-meters at above "deposit average" grade. Following are summary logs for holes in progress during December: HW-90-75W (5400E) (Wedge off 75 at 274.0m) (342,3) mafic volcanics Lightning Zone: flow breccia/hyaloclastite ± leucoxene Lightning Zone: flow breccia/hyaloclastite ± varioles Lightning Zone: flow breccia/hyaloclastite ± varioles talc-chlorite-serpentine ultramafic volcanics End of Hole HW-90-82W (550E) (Wedge off 82 at 321.Om) greywacke/argillite directional drilling; no recovery

27 mafic volcanic Lightning Zone: variolitic flow breccia, moderately pyritic ultramafic volcanics and fragmental End of Hole HW A (5350E) (7.0) conglomerate greywacke/argillite mafic volcanics Lightning Zone: massive flow, weakly pyritic ultramafic fragmentals, volcanics End of Hole HW (5900E) (10.5) conglomerate greywacke/argillite mafic volcanics Lightning Zone: massive flow, pyritic Lightning Zone: variolitic flow breccia, pyritic ultramafic volcanics (fuchsitic) mafic volcanics ultramafic volcanics (talc-chlorite schist) mafic volcanics End of Hole HW-90-38W (5460E) Wedge off 38 at 290.0m steel wedge, no recovery greywacke/argillite directional drilling, no recovery mafic volcanics Lightning Zone: variolitic flow breccia, pyritic ultramafic volcanics End of Hole HW-90-75X (5400E) Wedge off 75 at 270.0m greywacke/argillite directional drilling, no recovery mafic volcanics ankeritic, sericitic flow top breccia, pyritic Lightning Zone: flow breccia/hyaloclastite, pyritic

28 ultramafic volcanics (fuchsitic) End of Hole HW W (5900E) Wedge off 130 at 275.0m greywacke/argillite directional drilling, no recovery mafic volcanics Lightning Zone: variolitic flow breccia/hyaloclastite, moderately pyritic, weak arsenopyrite ultramafic volcanics (chloritic, talcose, serpentinitic) End of Hole HW A (5250E) O overburden greywacke/argillite mafic volcanics Lightning Zone: massive flow, pyritic ultramafic agglomerate mafic volcanics Lightning Zone: variolitic flow, pyritic ultramafic fragmentals, schist End of Hole

29 PROGRESS REPORT Division: N.E. Ontario District: East Abitibi Project: Teddy Bear P.O. 152 Month: December 1990 Drilling was suspended in mid-month, with the completion of two (2) holes (127, 132A), for a total of 1,099.0m. The holes were targeted at delineation of the main trend at depth and at the upper west end respectively. Significant results are summarized below: Lightning Zone Hole Assays Coordinates 116AW 1.99g71.3m rW5791.2E 124AW NSV ITI/5745.1E g710.8m rrV5491.6E Remarks Assay update Assay update 35m vert, below, 40m W of 120 The hole 127 intersection is the best to date below the main trend, and indicates potential for grades closer to "deposit average" than previous intersections. Following are summary logs for holes in progress in December: HW (5500E) m greywacke, argillite; minor sandstone/arkose mafic volcanic argillite, greywacke mafic volcanic

30 : altered zone: 10.64g74.3m (50*36 si, S-5% py) : Lightning Zone? massive flow ultramafic volcanic, mafic volcanic (fuchsitic) mafic volcanic : altered zone: varialitic flow bx; 5.12g75.8m (Lightning Zone?) ultramafic volcanic (fuchsitic) : mafic volcanic End of Hole

31 PROGRESS REPORT Division: N.E. Ontario District: East Abitibi Project: Holloway P.O. 155 Month: January 1991 Drilling resumed on January 7. Three machines have been operating since the 10th. Four (4) holes were completed by month end (130X, ,135) and three (3) in progress (130Y,134,136) for a total of 2,217.0m drilled. Significant results are summarized as follows: Lightning Zone Hole Assays Coordinates Remarks 130X 9.39g72.0m ~5947E7~-482m 40m E of g714.2m 7.74gAt0.1m Q/1.2m 135 pending E/-441.Om EA452.2m ~6046E7~-445m -6140E^-434m 20m up-dip of 62, 6m E of 62W 100m E of and 35m vert, above 130X Hole 131, targeted to test continuity of mineralization in the vicinity of the -400m structural flexure ("roll" or "flat"), intersected good Lightning Zone near the bottom of a vertical to slightly overturned (N dipping) section below the flexure. The sediment/volcanic contact and most mafic volcanic subunits on this section (5500E) mimic the flexure and indicate a flat to shallow N-dipping axis (fold ± fault). More importantly, the results indicate that the previously identified Middle Zone is likely continuous with (deformed equivalent of?) the Lightning Zone, as it

32 occurs within the same stratigraphic unit. This has positive implications for additional tonnage on sections not well-tested in the vicinity of the flexure, which can be traced as far east as drilling has proceeded. Hole 130X intersected strong alteration and mineralization but a reduced thickness of host flow breccia/hyaloclastite compound with holes 50m to the west. Hole 135, a "wildcat" to the east, intersected a very narrow weakly altered hyaloclastite unit with a massive flow below (i.e. not at the ultramafic contact). No significant Au values are expected. Following are summary logs for holes in progress during January: HW X (5950E): Wedge off 242m: m greywacke, argillite : directional drilling - no core m: carbonaceous argillite mafic volcanics : Lightning Zone: variolitic flow bx, hyaloclastite; minor massive flow greywacke, argillite ultramafic volcanics E.O.H. HW (5500E): O m overburden Seager's Hill mafic volcanics conglomerate greywacke, argillite : directional drilling - no core : directional drilling - no core

33 mafic volcanics : Lightning Zone: locally variolitic flow bx, hyaloclastite, minor massive flow ultramafic volcanics E.O.H. HW Target AH E O m overburden greywacke, argillite : carbonaceous argillite mafic volcanics : Lightning Zone: locally variolitic hyaloclastite, lesser flow bx; minor massive flow greywacke, argillite ultramafic volcanic E.O.H. HW Target GC E O - 31.Om overburden greywacke, argillite mafic volcanics : Lightning Zone(?): massive flow, eo-80% silicified, mod. ser., ~\-2yo py ultramafic volcanics E.O.H. HW Y Target BE -5900E Wedge off 227.0m (403.5) greywacke, argillite m: directional drilling - no core Hole in Progress HW Target B6-5950E O m overburden m greywacke, argillite : carbonaceous argillite (416.8) mafic volcanics Hole in Progress

34 Hole HW is currently being set up on the Cadden property, targeted at AB (5900E7-650m). This will become a master hole for wedges up, down and east if warranted. A second master hole planned for the Cadden property will be targeted at revised AK (6000E/- 750m).

35 PROGRESS REPORT Division: N.E. Ontario District: East Abitibi Project: Teddy Bear Month: January 1991 Assay update only. Lightning Zone Hole Assays Coordinates Remarks 132A 3.979/11.15m E/ m 50m up-dip of g74.6m E m Summary Log O m overburden greywacke, argillite : carbonaceous argillite : siliceous argillite mafic volcanics : silicified, 2-10*^ py (Lightning Zone?) : ultramafic agglomerate : Lightning Zone: locally variolitic; locally hematized ultramafic volcanics E.O.H.

36 32D12SE HOLLOWAY 020 SUMMARY REPORT ON DIAMOND DRILLING NOVEMBER 1, JANUARY 31, 1991 NORANDA - FREEWEST J.V. HOLLOWAY AND TEDDY BEAR PROPERTIES NORANDA EXPLORATION COMPANY, LIMITED (no personal liability) April 22, 1991 Timmins, Ontario Keith Green Project Geologist

37 32D12SE HOLLOWAY 02OC Table of Contents Page I. Introduction 1 II. Property Location and Status 1 III. Regional/Local Geology 4 IV. Summary of Drill Results 5 List of Tables Table 1 Diamond Drill Summary - Lightning Zone, November 1, January 31, 1991 List of Figures Figure 1 Figure 2 Regional Location Map Showing the Lightning Zone on the Noranda-Freewest Holloway and Teddy Bear Properties Location Map, Noranda-Freewest Holloway and Teddy Bear Properties List of Appendices Appendix l Appendix II Diamond Drill Logs Drill Assays

38 -1- I. Introduction This report summarizes diamond drill results for definition and delineation drilling of the Lightning Zone gold deposit on the Noranda-Freewest Holloway property and adjacent Noranda-Freewest-Teddy Bear property during the period November 1, 1990 to January 31, The work forms part of an extensive continuous diamond drill program designed to both confirm and expand the geological ore reserves on the properties. II. Property Location and Status The properties are located approximately 65kms north of Kirkland Lake and 110kms east of Timmins and straddle the Harker and Holloway township boundary (Figure 1). Geologically, they are situated along the productive Destor-Porcupine Fault system in northeastern Ontario and lie one mile north of American Barrick's Holt-McDermott gold mine (Figure 2). Both the Holloway and Teddy Bear properties comprise a joint venture between the property operator Noranda (60*JG) and Freewest Resources (40*26). Noranda and Freewest may earn a 70*^ interest in the Teddy Bear property with Teddy Bear retaining 30*26 interest. In addition, Newmont holds a IQ'% Net Profit Royalty on the property but ended its participating interest in September, 1990.

39 -2- JAMETS BAY noranda FREEWEST J.V. LIGHTNING ZONE NORANDA kilometers O miles Location Plan FIGURE 1: Regional location map showing the Lightning Zone on the Noranda-Freewest Holloway and Teddy Bear Properties

40 MATTAWASAGA ZONE 1.2 million tons O opt Au LIGHTNING ZONE NORANDA/FREEWEST HOLLOWAY PROPERTY NORANDA/FREEWEST/NEWMONT TEDDY BEAB PROPERTY HOLT-McDERMOn MINE J 1.6 million ton* O 0.15opUA*r" ~~~~\ NORANDA-FREEWEST-NEWMONT J.V. HOLLOWAY-TEDDY BEAR PROJECTS noranda exploration FIGURE 2: Property location map, Noranda-Freewest Holloway and Teddy Bear Properties

41 -4- III. Regional/Local Geology The properties occur in the Abitibi greenstone belt of the Superior Province of the Canadian Shield. They are located along an ancient fault system, the Destor-Porcupine fault zone that extends approximately 200kms from the Porcupine-Timmins gold camp to Destor, Quebec. This geological structure is associated with a host of past and present producing gold deposits and thus forms an obvious prime exploration target. In November, 1986, Freewest Resources and Noranda Exploration entered into a Joint Venture agreement based on such reasoning. Rocks of the Destor-Porcupine Fault Group underlie the property. The stratigraphic package comprises a sequence of ultramafic volcanics (with minor mafic volcanics and sediments) at the base, overlain by Fe-rich tholeiitic mafic volcanic, that are in turn overlain by a sequence of metasediments consisting of greywacke, argillite and conglomerate. The Lightning Zone gold deposit occurs at or near the contact between the mafic and ultramafic volcanics. The main host for the zone is a strongly altered and mineralized variolitic basalt. Alteration in the zone consists of a light grey, quartz-albite-pyrite assemblage. Associated alteration consists of pale green to honey coloured sericite-ankerite-quartz (± pyrite) assemblage that locally occurs in the hangingwall to the Lightning Zone as well as along strike in the zone.

42 -5- IV. Summary of Drill Results During the period November 1, January 31, 1991 three to five diamond drill rigs completed approximately 11,644.0 meters of drilling on the properties. This included the completion of 27 drill holes that both included infill drilling at 25-50m centers to confirm continuity and grades of mineralization as well as m spaced holes drilled to test for the outer limits of the mineralization. In-fill drilling was completed using a directional motor that started drill cuts part way down existing drill holes. These holes have W, X or Y in their hole number. Table 1 contains a summary of the diamond drilling, including hole locations, depths and significant assays encountered in the Lightning Zone in each drill hole. In summary, drilling during the winter of 1990/91 has successfully assisted in the continued delineation of the Lightning Zone gold deposit. Infill drilling has confirmed continuity of the gold zone and allows for increased confidence in grade estimation.

43 -6- TABLE 1 Diamond Drilling Summary: Lightning Zone: November 1, January 31, 1991 Hole No. Location Elevation Bearing/Dip Depth (m) Significant (Base 300m) Intersections Assays g/t HW-90-38W E N Directional hole kick /18.0 HW-90-62W 5500E N Directional hole kick (includes ) ( ) 5.47/58.0 (7.91/19.5) (7.30/13.0) HW-90-62X 5500E N Directional hole kick / / / /10.2 HW-90-72AX E N Directional hole kick /7.4 HW-90-75W E N Directional hole kick / / /4.4 HW-90-75X E N Directional hole kick / /6.95 HW-90-78W E N Directional hole kick /15.3 HW-90-80W E N Directional hole kick V. HW-90-82W E N Directional hole kick /1 1.2

44 -7- Hole No. Location Elevation (Base 300m) Bearing/Dip Depth (m) Significant Intersections Assays g/t HW AW5850.2E N Directional hole kick /25.9 HW AW5800.1E N Directional hole kick /1.3 HW A E N / / / /3.5 HW AW5749.6E Directional hole kick V. HW E N / /25.3 HW E N / (includes ) /14.6 (9.19/10.8) 5.22/5.8 HW A E N / /2.8 HW E N /-7S (includes ) 9.97/23.7 (14.14/7.7) HW W E N Directional hole kick (includes ) 6.86/14.4 (13.64/5.0) HW X E N Directional hole kick /2.9 HW Y E N Directional hole kick /18.5

45 -8- Hole No. Location Elevation (Base 300m) Bearing/Dip Depth (m) Significant Intersections Assays g/t HW E N / / /10.1 HW A E N / / /4.6 HW E N / /1.2 HW E N / /0.4 HW E N / /1.1 HW E 4457N / (includes ) ( ) 3.09/51/4 (4.89/4.2) (4.73/10.2) HW E N / /4.85

46 APPENDIX l

47 APPENDIX II

48 .OF. LATITUDE E DEPARTURE ELEVATION. DIP AT COLLAR -80" N NORANDA EXPLORATION COMPANY LIMITED Test Depth Dip Magnetic Bearing See Gyro Data Corrected Bearing Project No. Property BEARING 32D/12 Sheet No. 155 HW-90-38W ' J3 Hole No Holloway (P.P.) Lightning Zone L TWP Holloway Claim, L TOTAL DEPTH 553 -Om CORE SIZE NQ Date started Dec completed Dec. 15, 1990 CORE STORAGE Panamas Bast- y.nno Site. - contractor Bradley Brothers _ Directional Hole from HW-89-38; base-hole-38- REMARKS p -ho 7H5,Qpi. Top wedge at 285.0m Logged by K. Green. D. Broughton Depth St Steel Hedge GREYWACKE/ ARGILLITE Medium green-grey, finely interbedded greywacke and argillite. Weak ankerite, local weak to moderate sericite Directional drilling - no core recovery GREYWACKE/ ARGILLITE Light grey-green coloured interbedded greywacke with -c 101; argillite. Unit is weakly folded. At 326.0, SO = 60 deg. Local very weak sericite, moderate ankerite CARBONACEOUS ARGILLITE Black, finely bedded and deformed carbonaceous argillite with local interbeds of light grey to dark green greywacke and argillite. Unit is highly folded. Lower contact is sharp and at 55 deg. to c.a. At 338.0, SO = 45 deg. At 340.5, SO = SI = O deg., S2 = 100 deg. Local discontinuous lenses and clots of pyrite along laminations.

49 X-3% NORANDA EXPLORATION COMPANY LIMITED Project No. Property Sheet No. nr Hole No. Holloway (P.P.) T.i ghf-n-i ng l.ctnf Depth FLOW TOP HYALOCLASTITE i LEUCOXENITIC MASSIVE MAFIC FLOW Pale grey, bleached, ankeritic and siliceous, flow top hyaloclastite. At 342.5, SI = 50 deg. Medium to dark green, moderately to weakly foliated leucoxenitic massive mafic flow. At 346.0, si - 35 deg. Lower contact is gradational change in size of leucoxene to very fine to non-visible in underlying unit. Still part of same flow!! 40-50% silicified strong ankerite. Moderate to strong ankerite. Minor calcite MASSIVE MAFIC FLOW Medium to dark green, fine grained very weakly leucoxenitic massive mafic flow. Part of the same flow as overlying unit, but leucoxene becomes much finergrained to non-existent. Weakly magnetic locally. Minor calcite veinlets. Local trace specular hematite in fractures PILLOWED MAFIC FLOW Light to medium green, weakly foliated pillowed mafic flow. Unit is moderately folded. Locally pale green coloured. At 399.1, SI At 409.0, SI 35 deg. to c.a. 40 deg. Foliation gradually increases to moderately developed down section below 400.0m. Moderate ankerite, locally strong ankerite going down section Moderate sericite, strong ankerite. 201 folded ank-qtz vein lets, mostly foli ation parallel pyrite Consolidated cataclastic fault breccia zone with brecciated quartzankerite veining.

50 NORANOA EXPLORATION COMPANY LIMITED Sheet No 155 Project No. ' 3 J Hole No - HW-90-38W Property Holloway (P.P.) Lightning Zone Depth ft At 415.0, SI " O deg., S2 = 120 deg. Down dip drilling on the unit is clear. At 419.0, SI ^ O deg., S2-130 deg. At 433.0, SI ~ 25 deg., S2 = 135 deg. Lower contact at 5 deg. to c.a Section of strongly foliated, flow breccia subparallel to core axis MASSIVE MAFIC FLOW (LEOCOX- ENITIC) Medium to light green-grey, massive to weakly foliated, massive leucoxenitic mafic flow. At 445.0, SI - 10 deg. Moderate to strong ankerite. Locally 3% pyrite over 5cm associated with quartz-ankerite veinlets ALTERED FLOW TOP- HYALOCLASTIT* Pale yellowish-green, strongly foliated hyaloclastite flow top unit. At 450.5, SI = deg. Moderate sericite, strong ankerite PYRITI2ED QUARTZ VEIN Pyritized, milky white to translucent quartz vein (minor ankerite). Upper and lower contacts at 10 deg. to c.a. S-7% fine fracture filling pyrite \RIOLITIC. X)W BRECCIA Pale, bleached grey to beige-cream coloured, foliated, variolitic mafic flow, locally silicified and ankeritic. Foliation is subparallel to c.a. and folded % silicified, strong ankerite Very fine pyrite occurs with ankerite veinlets and filling fractures, 1-3% pyrite. Pyrite also occurs in clots.

51 NORANDA EXPLORATION COMPANY LIMITED Project No Property Sheet No..OF. 155 Hole No HW-90-38W Holloway (P.P.) Lightning Zone Depth Strongly foliated, ankeritized and sericitic mafic volcanic. From , 20-30t quartz-ankerite veining. Unit looks similar to a foliated, sericitic argillite/greywacke. Foliation is subparallel to core axis and S2-130 deg. to c.a Trace pyrite ALTERED MASSIVE MAFIC FLOW Pale green-grey to beige coloured, moderately foliated, massive mafic flow. At 466.2, SI - O deg. At 468.0, SI - 30 deg., S2-140 deg Mineralized, altered mafic flow. Weak foliation is nearly obliterated by the alteration. However most pyritic fractures are aligned subparallcl to c.a Strong ankerite, local weak sericite silicified, strong ankerite. Weak local sericite, 5-2 Ot milky white quartz veinlets (set 3 veins) Trace pyrite lq-15% c0.5mm sized fracture filling pyrite It pyrite SILICIFIED, HEMATIZBD VARIOLITIC MAFIC FLOW BRECCIA Light grey-cream to dark purplish-blue, silicified and hematized massive to moderately foliated variolitic flow breccia Variolites are well-developed locally and rock is moderately foliated. At 481.0, si = 45 deg. go-100% silicified. Moderate to strong hematite, overprinted locally by silicifi cation. Moderate ankerite, weak to locally moderately magnetic pyrite S-5% pyrite t pyrite Rock is massive textured with only local faint hint of 5mm-lcm sized varioles with radiating internal texture.

52 NORANOA EXPLORATION COMPANY LIMITED Project No Property Sheet No. 5 OF Hole No HW-90-38W Holloway (P.P.) Lightning Zone Depth i SILICIFIED HEMATIZED MASSIVE MAFIC FLOW Light grey to dark purplish-blue coloured, silicified and hematized massive mafic flow. Lower contact is brecciated. loot silicified, moderate to strong hematite. Moderately magnetic. X-3% pyrite, locally 2-5* pyrite over 5-20cm wide sections associated with light grey fracture related silicification VARIOLITIC FLOW BRECCIA (UNALTERED) Moderately foliated, medium green coloured, weakly to unaltered variolitic flow breccia, hyaloclastite. Foliation varies from 0-25 deg. to c.a., overall sub-parallel to c.a Massive, silicified mafic flow base. Upper contact is gradational; lower contact is brecciated over 10cm. Weak to moderate ankerite Local creamy-yellow to grey strong ankerite, 50* silicified silicified ALTERED VARIOLITIC FLOW BRECCIA Moderately foliated, light grey to beige greyish variolitic altered mafic flow breccia. At 513.0, SI ^ 5 deg Strong ankerite. Weak sericite. silicified pyrite. S-7% Trace to 3* pyrite locally over 10-2Ocm wide sections SILICIFIED MAFIC VOLCANIC Medium grey, silicified, finely foliated mafic volcanic. Unit may be a cherty argillite with faint laminations at 0-10 deg. to c.a. loot silicified. 3-4 * pyrite in brecciated, fractured veinlets parallel to foliation S-7% pyrite.

53 NORANDA EXPLORATION COMPANY LIMITED Project No. Property Sheet No. QF 155 Holloway (P.P.) Lightning Zone Depth 81 Sharp lower contact at 70 deg. to c. a Trace to 3t pyrite in groundmass S-7% pyrite in groundmass, may form entire groundmass to varioles X-2% pyrite fine grained to medium grained disseminated along SI and in cross fractures ; pyrite fine grained to coarse grained, along SI and in fractures FUCHSITIC ULTRAMAFIC Dark emerald to grey to green ultramafic vein breccia * early greyish ankeritic stockwork veins, SI local 15t set 3 quartz ankerite vein. Locally these later veins contain brecciated vein fragments and are lime green to beige-silicified faults with brecciation and gouge. Identical to ore-related "mylonitic" structures in green carbonate ore at Kerr Addison. Strong Fuchsite S-15% quartz veining.

54 NORANDA EXPLORATION COMPANY LIMITED Sheet No o OF. Project No. 155 Property Hole No HW-90-38W Holloway (P.P.) Lightning Zone Depth S Description (colour, grain size, texture, structure, etc.) Alteration Mineralization Remarks SILICIFIED VARIOLITIC FLOW BRECCIA LIGHTNING ZONE Pale grey, silicified, albitized and mineralized variolitic flow breccia and variolitic massive flow. Locally medium green and locally hematitic - prolith shows through between Non-variolitic flow breccia r massive to weakly foliated. Local set 3 megascopic veins at with associated coarse pyrite Variolitic massive flow, varioles form ; of the rock. Groundmass locally sericitized (yellowgreen). Local very weak hematite alteration of varioles-these commonly are zoned. Varioles subcircular to weakly (X:Z-2-3:l) deformed, local l-2t white set 3 quartz ankerite vein. Sharp lower contact at 40 deg. to c. a Locally variolitic flow top breccia, moderately foliated to locally massive. It megascopic set 3 veins. Pyritic fractures orthogonal to SI foliation have 2-10cm displacement, cutting pyritized foliated flow breccia. loot silicified, moderate ankerite. 2-4t set 3 quartz veins t fine pyrite, trace arsenopyrite t pyrite t pyrite t pyrite t pyrite, trace arsenopyrite S-20% pyrite, medium to coarse grained associated with quartz ankerite vein t pyrite along fract ures SL disseminated Trace to It pyrite t pyrite in sericitic groundmass between varioles.

55 NORANDA EXPLORATION COMPANY LIMITED Project No Property 155 Sheet No. 8 OF. Hole No HW-90-3HW Holloway (P.P.) Lightning Zont* Depth ft BRPEMTINIZBD ULTRAMAFIC VOLCANIC Dark green to black, weakly to locally strongly foliated (SI) and locally S2 - crenulated, serpentinized ultramafic flows. S-20% stockwork ankerite veins, deformed by SI, rare later SI - orthogonal set 3 veins , SI at 30 deg. 130 deg , S2 at 150 deg. to c.a. set 3 veins at END OF HOLE

56 ASSAY LOG PROF-T VYn HOLLOWAY H O L t. Tro. : 38 w O OO O O 5O (.) O , O O /L rs-#it*?ji*v CL "l CTA 483. OO O O O OO O OO O O O. c? C) O O O O (Z). 05O 0. 02O C) ( C) ( O O. O3O O O30 O O. 100 O. O3O 0, 020 (j u O (3. 51O 4. 94O O O.O f* ^"!x.3* O , O 0. 03O O. 07O O O. 07O O. O."-7 o N,S O

57 ** fccjrsurv *# ASSAY LOG ' Pane 2 of PK'-iPF "r: HULL.QWAY H G!... E -TTC. : 38 w FROM Tij WIDTH HU Q/t Ri O 528., (I' C* 52? OO ' ~i u OO i..'j c.11 u-.' f :i. O O O..1. n 1 J. a 1. n 1. :i Od' O OO 10 X n -- 1 HO (j 5, , Od! d! i"), O 2O t) d' C' d'. 140 i i o/-; o /' a 26. "j n i 3. -j!'. O M O '-'i O OO GIO

58 LATITUDE E DEPARTURE ELEVATION. DIP AT COLLAR N BEARING TOTAL DEPTH 529.0m CORE g ZE CORE STORAGE REMARKS Canamax East Zone Directional Hole from HW-90-62, wedge NORANDA EXPLORATION COMPANY LIMITED Test Depth Dip Magnetic Bearing Corrected Bearing 360' Gyro Data from 62.0 to Gyro Data to 435.Bm 480.0m -72' 365" 529.Om -72'.364" Sheet No. 1 OF 13 Project No 155 Hole NO HW-90-62W Property Holloway (P.P.) Lightning Zone NTS 32D/12 TWP Holloway ciaim NO Date started Oct completed NOV. 1 f 1990 Contractor Bradley Brothers Drilling Logged by - JJ^ Broughton Depth 81 Description (colour, grain size, texture, structure, etc ) Alteration Mineralization Remarks Wedge SILICIFIED MASSIVE FLOW] LOCALLY FOLIATED Grey to slightly purplish-grey, very fine grained, massive to strongly foliated, massive facies mafic flow. Cut by network of ankerite veinlets (predominant orienta tion at deg. to c.a.) with minor buff coloured altered halos, locally pyritic. Silicified (90t) minor pervasive hematite. Moderate pervasive ankerite. Local trace to It; fine grained to medium grained pyrite Massive to weakly foliated, ID-20% ankerite veinlets strongly foliated, it ankerite veinlets : si at 20 deg. to c.a SERICITIZED MASSIVE FLOW STRONGLY FOLIATED Cream to pale green, very fine grained, moderately to strongly foliated, massive mafic flow (same unit as above). Alter ation produces spotty texture where weak. l-3tf quartz ankerite vein, parallel to SI. At 285.0, SI at 45 deg. to c.a. Moderate to strong sericite. Moderate pervasive ankerite. Local trace pyrite Quartz ankerite veins with tourmaline.