EXPLORATION WORK REPORT OF FQM FINNEX OY S KÄYRÄMÖ [ML2013:0079] ORE PROSPECTING PERMIT AERA TUSSARIKUUSIKKO EXPLORATION AREA

Transcription

1 Final Report [ML2013_0079] 1 EXPLORATION WORK REPORT OF FQM FINNEX OY S KÄYRÄMÖ [ML2013:0079] ORE PROSPECTING PERMIT AERA TUSSARIKUUSIKKO EXPLORATION AREA 1 Introduction 1.1 Geography Tussarikuusikko exploration area is part of the Käyrämö [ML2013:0079] ore prospecting permit held by. Permit is composed of five separate exploration areas or entities, which are located in the municipality of Sodankylä. Tussarikuusikko entity of the Käyrämö permit has been relinquished prior to the official relinquishment date. This report summarizes exploration activities undertaken at the Tussarikuusikko area. Relinquished Tussarikuusikko permit area is 1, hectares in size and is located approximately 40 kilometers northeast (along a beeline) of the township of Sodankylä (Fig. 1). Exploration area is located between Voutavaara hill and the Luiro-river. Access to the exploration area is relatively good via comprehensive network of gravel roads and off road tracks built to service the logging industry. Exploration area can be accessed from east, taking the road 9673 from Tanhua towards Lokka and turning after roughly 18 km to west on a Voutavaarantie-road. Following Voutavaarantie some 14 kilometres there is another turn to south on a smaller forestry track called Sokka-Voutavaara. Small existing tracks in the wilderness lead all the way to the center of the exploration area (Fig. 2). Figure 1 Location of the Käyrämö [ML2013:0079] ore prospecting permit area in the Sodankylä municipality (ML2013:0079_ Location_Map_1_2016_02_29.jpg)

2 Final Report [ML2013_0079] 2 There is no year-round habitation in the exploration area. There is a summer cottage along the western bank of the Luiro-river, but the area around the summer residence is excluded from the ore prospecting permit area. Besides the summer cottage, the infrastructure is limited to the gravel road network servicing forestry industry and the installations related to reindeer herding. Tussarikuusikko area is confined to the west by the border of the Koitelainen Natura 2000 protection area (FI ). In addition to belonging to the Natura-2000 network, the largest network of protected areas, Koitelainen is a home to two national environmental protection program areas. Koitelainen old-growth forest protection program (AMO120292) is a smaller protection area located at Kotkakoskenmaa. Almost equal to the size of the Koitelainen Natura 2000 area is the Koitelainen Nature Park (KLO120005) area, which is being developed as part of the national and nature park development program (Fig. 3). Within the Tussarikuusikko permit area there are few small habitat preservation zones (Finn. Metsälakikohde), which are protected under the Forest Act (1096/1996) section 10 for preserving biodiversity and habitats of special interest (Fig. 3). Figure 2 Location of the Käyrämö [ML2013:0079] ore prospecting permit area (ML2013:0077_Location_Map_2 _2016_02_29.jpg) There are seven landowners on five different properties at the Tussarikuusikko area. Large portion of the area is state owned; the smaller privately owned estates are all located around the Luiro-river. Exploration area belongs to the Oraniemi reindeer herding cooperative. Tussarikuusikko exploration area and the entire Sodankylä municipality is part of a special reindeer herding area (Fig. 4). Käyrämö ore prospecting permit was granted to on 7 th of October Exploration work at the Tussarikuusikko entity was carried out during the winters of 2014 and Some of the earlier exploration took place before the granting of the permit and therefore was based on a private permission acquired from the landowner (in this case Metsähallitus). Following the results of geophysics and drilling, the Tussarikuusikko entity was relinquished in the following summer on 13 th of August 2015.

3 Final Report [ML2013_0079] Figure 3 Environmental protection areas in the Käyrämö [ML2013:0079] ore prospecting area. (ML2013:0079_Environmental _Protection_2016_02_29.jpg). Figure 4 Land ownership at Käyrämö [ML2013:0079] ore prospecting permit area is mostly state owned with few private land owners. (ML2013_0079_Property_ Boundaries_2016_02_29.jpg). 3

4 1.2 Geology Regional geological setting Final Report [ML2013_0079] 4 The project area is located in the Central Lapland Greenstone Belt (CLGB), which is a Paleoproterozoic supracrustal belt extending through northern Finland with continuations into Russia and northern Sweden and Norway. The CLGB in underlain by Archean basement gneisses, and the lower parts of the supracrustal sequences were deposited unconformably on these 3.1 and 2.6 Ga gneisses. The greenstone belt is divided into a number of volcano sedimentary associations including (oldest to youngest): Salla, Onkamo, Sodankylä, Savukoski, Kittilä, Lainio and Kumpu Groups. Evolution of the greenstone belt was initiated by the rifting of the Archean basement that produced acidic and intermediate volcanic rocks of the Salla Group (U Pb zircon ages 2438±13 Ma). The Salla Group and Archean basement is overlain by high Mg and komatiitic basalts of the Onkamo Group. The Salla Group is intruded by a 2.4 Ga Koitelainen and Akanvaara layered intrusions, which does not appear to affect the Onkamo Group. Rifting related volcanism was followed by sedimentation of thick sequences of quartz rich sediments and carbonates of the Sodankylä Group. Primary sedimentary textures of the quartz rich facies suggest a continental margin setting. The Sodankylä Group rocks have in turn been intruded by a series of mafic and ultramafic sills, suggesting an age >2.2 Ga for the Group. Deepening of the basin caused the sedimentation of carbonaceous siliciclastic sediments (Matarakoski Formation) of the Savukoski Group. These sediments are overlain by the komatiitic and picritic volcanics (Sattasvaara Formation). The contact between the Savukoski and the overlying mafic volcanic rocks of the Kittilä Groups is tectonic and has been interpreted as allochthonous by some authors and autochthonous by others. Younger molasse type sediments, such as quartzites and conglomerates, of the Lainio and Kumpu Groups uncorformably overlie all of the older sequence. Magmatic rocks provide a maximum age of 1.88 Ga for the Lainio and Kumpu Groups. Dating of the granites within the greenstone belt show that they form part of the 1.89 Ga Haaparanta Suite intruded during the Svecofennian orogeny. K feldspar rich Hetta granites may represent crustal anatexis from deeper sources (ca. 1.8 Ga), whereas the younger ca Ga Nattanen type granites are considered post collisional. The CLGB is a polydeformed basin with a complex tectonic history preserving at least three major deformation phases. Earliest deformation event is characterised by bedding parallel foliation. The most penetrative fabric the CLGB rocks is an S2 foliation that is axial planar to F2 folds. F2 folds are typically tight to isoclinal and either recumbent or reclined. They are inferred to result from northward directed thurst deformation. Third deformation phase is characterised by N S and E W oriented F3 folds and shear zones with various orientations. Central parts of the Kittilä and Sodankylä greenstone areas are characterised by greenschist facies metamorphism, whereas towards the granite plutons (west & south) metamorphic grade increased abruptly to amphibolite facies Local geological setting Drilling at Tussarikuusikko has been somewhat focused on the magnetic bodies and thus the local geology is highly constrained to the immediate footwall rocks of the known intrusions. The local geology is dominated by a magnetite-bearing, sulphide (Py-Po) rich gabbroic intrusion, which potentially has a deeper barren, ultramafic (pyroxenitic) portion which is offset by late normal faulting; or is a separate body entirely. These mafic and ultramafic bodies have intruded into a metamorphosed volcano-sedimentary package, likely representing the lower Savukoski group. The volcanics are relatively homogenous fine grained basalts, and grade into epiclastics; mixed with clastic and finer grained pelitic sediments. This sequence is intruded by several thin pyroxenitic dykes, of similar composition, to the main eastern ultramafic body intersected in drilling by FinnEx in 2014 and At the contact of the ultramafic intrusion lies a thin polymictic breccia. It was thought that this breccia unit is related to the emplacement of the intrusives in Tussarikuusikko and is not sedimentary in origin. However, the same unit is also found to the

5 Final Report [ML2013_0079] 5 west at the contact of the epiclastics and a lower volcanic horizon below the gabbroic body, so it may be either structurally controlled or indeed an altered localized conglomerate. In the western edge of Tussarikuusikko, lies a smaller separate magnetite gabbro body but host rock contacts were not intersected. It is quite possible that Sodankylä Group sediments are present in the region as per the GTK interpretation, but drilling has not intersected this group to date due to the focused approach targeting has had on the known mafic body at Tussarikuusikko. 1.3 Previous exploration work Geological Survey of Finland (GTK) has carried out exploration activities at the Tussarikuusikko area during late 1970s and early 1980s. Geochemical surveys were carried out in late 1970s, testing intense magnetic anomaly observed at the Tussarikuusikko. Survey conditions were challenging due to the thickness of the surficial deposits and compact and boulder-rich nature of the till material (Lehmuspelto & Vuojärvi, 1979). Few Ti-and V-enriched bedrock samples obtained during the percussion drilling program provided enough encouragement to warrant a diamond drilling in the area. Single diamond drill hole was drilled in the early 1980s by GTK. Drilling intersected strongly magnetic ( SI) gabbros with disseminated magnetite and pyrite and trace pyrrhotite and chalcopyrite. Drill hole was planned to test the most intense part of the magnetic anomaly, which was explained by the presence of magnetite-gabbros. No economic intersections were made at Tussarikuusikko. 2 Exploration performed 2.1 Bedrock mapping and boulder tracing There are no bedrock or boulder observations or geological mapping done in Tussarikuusikko. The exploration area was visited during the early reconnaissance work in 2010, but due to the swampy nature of the terrain and thick overburden rocks weren t located in the area. Area is largely not traversable by foot during summer months and so any exploration activities are restricted to the coldest periods of the winter season. 2.2 Geophysical and petrophysical surveys Geophysical ground surveys Two magnetic surveys and an EM survey were carried out in Käyrämö during Measurement lines of these surveys are shown in Figures 5 and 6. The smaller magnetic survey in the West was done with 50 m line spacing and the bigger one in the East with 100 m line spacing. In both of the surveys a separate ground station magnetometer was used to record the diurnal variations in the Earth s magnetic field. The stronger magnetic anomalies are mainly caused by gabbros and the easternmost anomaly by ultramafic rocks. The observed magnetic field is shown in Figure 7. The EM survey was done in the time domain utilizing a moving loop method and the loop size was 200 x 200 m. No true conductivity anomalies were observed in this EM survey. Both IP and magnetic effects are greatly affecting the data, the IP effect being likely caused by high amounts of magnetite in the gabbro. The magnetic effect is causing anomalies with very low amplitudes and slow decays. These should not be mixed with deep seated very high conductance conductors. The anomaly picks from the EM survey and the drilling locations are shown on the ground magnetic map in Figure 8.

6 Final Report [ML2013_0079] 6 Figure 5 Measured ground magnetic survey lines in Tussarikuusikko. The red polygon is outlining the Käyrämö permit area (ML2013_0079_ _Kayramo_GMAG_Lines_2016_02_29) Figure 6 Measured ground EM stations in Tussarikuusikko. The red polygon is outlining the Käyrämö permit area (ML2013_0079_2014_Kayramo_MLEM_StationLocations_2016_02_29).

7 Final Report [ML2013_0079] 7 Figure 7 Observed magnetic field in Tussarikuusikko. The red polygon is outlining the Käyrämö permit area (ML2013_0079_ _Kayramo_GMAG_TMI_2016_02_29). Figure 8 Ground EM anomaly picks (black crosses) and drilling locations on top of the magnetic map. The red polygon is outlining the Käyrämö permit area (ML2013_0079_2014_Kayramo_MLEM_AnomalyPicks_2016_02_29)

8 2.2.2 Borehole geophysical surveys Final Report [ML2013_0079] 8 Three drill holes: TUS001, TUS002 and TUS003 were measured with the time domain borehole EM method in Käyrämö during TUS003 was targeted to a modelled ground EM conductor which turned out to be a false one. The false conductivity anomaly in the ground EM survey is caused by the magnetic effect, most likely superparamagnetism i.e. the SPM effect. No conductors were observed in the borehole EM surveys. The locations of the drill holes and the transmitter loops used in the surveys are shown in Figure 9. Figure 9 Locations of drill holes: TUS001-TUS003 and the transmitter loops used in the BHEM surveys. The red polygon is outlining the Käyrämö permit area (ML2013_0079_2014_Kayramo_BHEM_2016_02_29) 2.3 Surficial geochemical surveys No surficial geochemical surveys were undertaken in the exploration area because previous exploration reports by Lehmuspelto & Vuojärvi (1979) and Mutanen (1982) report thick and often impenetrable overburden conditions in the area. Instead, the decision was made to proceed straight to ground geophysical surveys which would act as a targeting tool for diamond drilling. 2.4 Exploration drilling, channel samples and test trenches 5 drill holes were completed in the Tussari project between 2014 and 2015 (Fig. 10). All holes were drilled during the winter season when ground conditions allowed access to the drill sites.

9 Final Report [ML2013_0079] 9 Figure 10 Diamond drill hole collar positions at Tussarikuusikko (ML2013_0079_DDHcollarlocations_1_2016_02_29) The drill holes TUS were planned following a moving loop EM survey. These drill holes targeted EM anomalies modelled from the ground EM survey which were associated with the Tussari main magnetic high. In each case, no anomaly was encountered during the drilling. It became apparent that the ground EM surveys were in fact picking up the effects of superparamagnetism (SPM) in glacial till and no genuine conductors existed at depth. As such, whilst intrusive rocks were encountered during drilling; very little mineralisation was detected save trace patchy disseminated chalcopyrite in TUS004 within a thin gabbroic unit that underlay an ultramafic body with a brecciated footwall contact. Borehole EM did not reveal any off-hole conductors in TUS and as the intrusions adequately covered the magnetic high, the decision was therefore made to stop exploring in Tussari (Käyrämö) owing to the negative results received to date and inference that no ore body was likely to exist within/associated with the intrusion. The geology of the Tussari target is quite varied. TUS001 and TUS002 collared into an altered magnetite gabbro. This body was relatively thick and varitextured. Magnetite content varied wildly throughout the unit. Sulphides were intersected in TUS002; these were in the form of pyrite and pyrrhotite, usually associated with quartz-carbonate veins or as irregular blebs/patchy dissemination over a 50 m zone near the top of the drill hole. Total sulphides content rarely exceeded 1-2 % however. Trace chalcopyrite was encountered but not with any sustained degree of anomalism. Below the gabbroic body, lay a mafic volcanic package and sedimentary unit. The final m intersected a thick breccia unit. TUS003 and TUS004 intersected a relatively fine grained and highly altered (talc-serpentine-amphibole-chlorite) ultramafic body within a smaller (and less pronounced) magnetic high to the east. The rocks here were highly altered and fragmented, with lots of core loss even though triple tubing was employed by the drillers in an effort to better recover the core. Only a few sulphides grains were spotted in the ultramafic body; mostly near the top of the hole near surface. These were exclusively pyrrhotite. Underlying the ultramafic body lay a thin brecciated unit which was directly comparable to TUS002. The breccia contained clasts from

10 Final Report [ML2013_0079] 10 the overlying ultramafic body and underlying gabbro and volcano-sedimentary package. The gabbroic unit beneath this breccia was relatively fine grained but did contain consistent trace chalcopyrite dissemination. Cu values were consistently below 0.1 % Cu. The unit graded into a volcanic package which was underlain by a thicker epiclastic sequence of variable composition, which was cut by a series of thin ultramafic dykes with no sulphides. The drill hole was stopped in the epiclastic sequence at around 370m. Figure 11 Cross Section of the Tussari target with diamond drill holes TUS highlighted as well as inferred geological contacts (ML2013_0079_CrossSection_1_2016_02_29 Figure 12 Cross Section for the TUO001 drill hole (ML2013_0079_CrossSection_2_2016_02_29)

11 Final Report [ML2013_0079] 11 TUO001 was drilled a couple of km away to the west. This targeted an intense, isolated but small magnetic high separate to the main Tussari body. The hole collared into gabbro which contained a magnetite-rich horizon explaining the magnetic anomaly. The hole was stopped at approximately 100 m as a result. 3 Summary and conclusions The initial anomalies/targets detected in the ground geophysical surveys were all explained by diamond drilling or discredited by the borehole EM work: barren magnetite-bearing gabbros were causing magnetic response and SPM effects of till were misinterpreted as conductors. Hence, based on the exploration work conducted in Tussarikuusikko, has concluded that no mineralization of significant proportions exists in the area. 4 References Lehmuspelto, P. & Vuojärvi, P., Geokemialliset kohdetutkimukset Tussarinlammilla karttalehdellä vuonna Geological Survey of Finland, Rovaniemi. Mutanen, T., Tutkimustyöselostus Sodankylän kunnassa valtausalueella Tussarinlammit 1, kaiv. rek. nro 2832 suoritetuista tutkimuksista. Geological Survey of Finland, Rovaniemi.