CANADA FLUORSPAR (NL) INC. CLARKE S POND ROAD P.O. BOX 337 ST. LAWRENCE, NFLD., A0E 2V0 TEL: (709) FAX: (709)

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3 CANADA FLUORSPAR (NL) INC. CLARKE S POND ROAD P.O. BOX 337 ST. LAWRENCE, NFLD., A0E 2V0 TEL: (709) FAX: (709) FIRST YEAR ASSESSMENT REPORT ON CLAIM LICENCE M (8 Claims) AT ST. LAWRENCE, NL. St. Lawrence, NL Topographic Map 1L/14 Phonce Cooper, P. Eng. Frank Pitman, CET Norman Wilson, P. Eng. Total Expenditure: $ November 23, 2011

4 SUMMARY The St. Lawrence area hosts numerous fluorite-bearing veins, which range up to 2 km in length and, in some cases, exceed 30m in thickness. Commercial fluorspar mining began in After 44 years of mining, 4.2 million tonnes of ore had been produced. Production of about 440,000 tonnes of ore was reported by Minwoth (UK) Limited between 1986 and The fluorspar veins are associated with the St. Lawrence Granite and related quartz porphyry. They are complex structures along fault zones, which have had multiple episodes of movement. Typically, a vein has a high-grade core and irregular amounts of mineralized granite breccia along one or both walls. Three major groups of veins are recognized: "North-South" veins, "East-West" veins and the "Outer" veins which have barite in association. The largest production has been from Director, Tarefare, and Blue Beach Veins, with lesser amounts from Iron Springs, Lord and Lady Gulch, Black Duck, Haypook and Red Head Veins. The current assessment covers the Black Duck, New Black Duck, eastern end of the Church Vein, Scrape Vein and the Doctor s Pond Veins to the northeast of St. Lawrence. 2

5 TABLE OF CONTENTS Page SUMMARY 2 INTRODUCTION 4 LOCATION AND ACCESS 4 SCOPE OF REPORT 6 REGIONAL SETTING 6 REGIONAL GEOLOGY AND MINERALIZATION AT ST. LAWRENCE 6 Local Geology 6 Fluorite Veins 7 WORK FOR CURRENT YEAR RESULTS OF LITERATURE SEARCH 8 Black Duck Vein 9 Black Duck Mine 9 New Black Duck Vein 9 New Black Duck Mine 10 Church Vein 10 Scrape Vein 10 Doctor s Pond Veins 11 CONCLUSIONS AND RECOMMENDATIONS 11 STATEMENT of EXPENDITURES 13 SIGNATURE 13 REFERENCES & LITERATURE REVIEWED 14 LIST OF FIGURES Figure 1. Reproduction of 1:50,000 Scale Claim Map Showing The General Location of Claim 18023M 5 Figure 2. Area covered by Licence # 18023M NTS 1L/14 8 Figure 3. Recommended Exploration on Licence # 18023M 12 APPENDICES APPENDIX 1. List of Personnel 16 3

6 INTRODUCTION This report covers work carried out prior to on licence 18023M held by Canada Fluorspar (NL) Inc. northeast of St. Lawrence. LOCATION AND ACCESS The property is located immediately Northeast of the town of St. Lawrence and is accessible from Highway 220. (NTS sheet 1L/14, Figure 1). Smith (1957) describes the climate as moderate with temperature extremes of 24 o C in summer and -25 o C in winter; the mean annual temperature is about 5 o C. Rainfall varies between 1.4 and 1.8 metres per annum. Fog is common along the south coast throughout the year and particularly in late spring and early summer. Roads are generally passable in all seasons with frequent thawing in winter preventing heavy snow accumulation. Soil is very thin and poor because of thick glacial boulder till, seldom less than 3-5 m and locally 3 m or more, which is usually covered by a layer of water-saturated peat (upland bog). Tilsley (1975) reports overburden depths averaging 4-6 m and locally exceeding 30 m. About 90% of the area is treeless. 4

7 Figure 1. Reproduction of 1:50,000 Scale Claim Map Showing The General Location of Claim 18023M 5

8 SCOPE OF REPORT This literature survey report covers work conducted on Mineral Claims covered by licence number 18023M and is submitted as the first year assessment on the area in which there are four known fluorspar vein systems. Extensive research of available literature produced several fluorspar occurrences within the licence area namely Black Duck Vein, New Black Duck Vein, Church Vein, Scrape Vein and Doctor s Pond parallel Veins. There are numerous fluorspar occurrences to east of the current licence area. REGIONAL SETTING O'Driscoll et. al. (1988) has described the regional setting of the Avalon Zone in the eastern portion of the Appalachian mountain system. This zone is separated from other zones by major faults. O'Driscoll et. al. (Ibid.) discussed the General Geology of the Avalon Zone in considerable detail. They describe the zone as characterized by thick, widespread, dominantly subaerial volcanic rocks and marine to terrestrial clastic sedimentary rocks of Late Precambrian age, locally overlain by shallow marine, sedimentary and minor volcanic rocks of Cambrian age. These sequences are locally overlain with angular unconformity by Devonian and Carboniferous sediments and volcanics. Several Late Precambrian and late Devonian to Carboniferous granites intrude the zone. Van Alstine (1944) noted that folding and thrust faulting (of Cambrian and older units) preceded intrusion of the St. Lawrence Granite. REGIONAL GEOLOGY AND MINERALIZATION AT ST. LAWRENCE The St. Lawrence area hosts numerous fluorite-bearing veins, which range up to 2 km in length and, in some cases, exceed 30 m in thickness. Fluorspar mining began in Two companies, Newfoundland Fluorspar Ltd., and The St. Lawrence Corporation, both of which eventually came under the control of Alcan, dominated development. After 44 years of mining, Alcan closed the mines in 1977, by which time a total of more than 4.2 million tonnes of ore had been produced. Production resumed in 1986 by St. Lawrence Fluorspar Limited, a subsidiary of Minworth (UK) PLC, and continued to early 1991 when the company was placed in receivership. Total mine production by St. Lawrence Fluorspar was about 440,000 tonnes of ore. The most recent regional geological mapping of the area was by Strong et. al. (1978). Many writers, including Van Alstine (1944) have noted that in general, the hornfels and slate adjacent to the St. Lawrence Granite is considered to be a poor host rock for fluorspar veins. The reader should note that the metamorphosed siltstone locally termed slate has been determined to be a high iron argillite. Local Geology The fluorspar veins are associated with the St. Lawrence Granite, which has been described by Teng and Strong (1976), as a high-level, peralkaline, Carboniferous pluton intruding volcanic and sedimentary rocks of Late Precambrian and Cambrian age. Grain size decreases progressively towards its contact. Miarolitic structures are seen within a few metres of the contacts. The granite consists of quartz and orthoclase with traces of plagioclase (albite), chlorite and limonite. The rock exhibits a granite porphyritic texture, with phenocrysts of quartz and orthoclase 3 to 10 mm in size in a ground mass of the same composition, with crystals of 0.1 to 1 mm in size. All of the observed orthoclase shows signs of alteration to kaolinite. Micrographic textures and embayed quartz crystals are occasionally observed. Patterns of inclusions in some 6

9 crystals indicate that secondary crystal growth has occurred (Bowser-Morner [a], 2003). Tuffisites are common (Teng [1974]), consisting of discrete angular to rounded fragments of the granite in a finely comminuted matrix. (Although the rock has the macro appearance of a tuffisite it may be an iron rich pervasively silicified granite breccia). The veins are said to be epithermal, fault filling in origin and evidence of volatile pressure and boiling is seen. True tuffisite is gas breccia and can be confused with faultrelated brecciation. Work is required to determine the nature of the rock and its relationship to the fluorspar mineralization). Related pink quartz-feldspar porphyry is common outside the western margin of the St. Lawrence Granite. The granite and associated rocks are unique in eastern Newfoundland, in that they contain aegirine and riebeckite. These minerals are most prevalent in the east of the pluton gradually decreasing in abundance from east to west where they are increasingly replaced by biotite mica (Wilson, 2008 pers. com.). Smith (1957) notes that the granite has three pronounced sets of jointing, one parallel to the north-south elongation of the batholith, another at right angles to the elongation, and a third horizontal set of joints. The granite is strongly fractured and locally exhibits sericitization and hematization, typically adjacent to the fluorite veins. The overlying shale and siltstone in the St. Lawrence region were originally included as part of the late Precambrian to Middle Cambrian Inlet Group (Strong et al., 1978). The St. Lawrence Granite has hornfelsed both the Marystown and Inlet groups. The siltstone is composed of silt and clay sized quartz grains with kaolinite, sericite and traces of chlorite as cementing material. It is obliquely fractured, and mineralized long the fractures, but without primary fissility or secondary foliation being observed. Microscopic observations indicate the cementing materials are authigenic (i.e. precipitated in pores from solution). Patterns of lath-like extinction are visible under polarized light, indicating early stages of metamorphic alteration. The rock can be classified as an argillite (Bowser-Morner [b], 2003). Fluorite Veins Smith (1957) reported 39 known fluorspar veins within an area of about 155 square kilometers. Tilsley (1972) produced compilation maps showing locations of the veins within a 5 km radius of the Town of St. Lawrence. Strong et. al. (1978) show approximate locations of the veins. The largest production has been from Director, Tarefare and Blue Beach Veins. All of the veins are fissure fillings within the granite or related porphyry. Smith (1957) points out that there has been shearing movement, predominantly horizontal, along the fissures, and brecciation of the wallrocks which were cemented by fluorite probably before the vein itself was formed. Veins vary from a few hundred metres to well over 2 km long and tend to pinch and swell in both horizontal and vertical directions. Van Alstine (1948) notes that no vein has been followed to its terminations. Smith (1957) notes that cross veins and parallel veins are fairly common. The veins at St. Lawrence are not simple tabular bodies, but complex structures along fault zones, which have had multiple episodes of movement before and during vein formation. Typically, vein has a high-grade core and irregular amounts of mineralized granite breccia along one or both walls. Three major groups of fluorite veins are recognized: 1. The low-grade veins are widest, averaging 7 m, and longest, with grades in 35-70% range. Although strike varies from 135 o to 160 o, these were locally known as "North-South" veins. Examples are Director, Tarefare and Blue Beach veins. 2. High-grade veins have an average width of 1 m or less, and are characterized by grades averaging 95%. Strike varies from 60 o to 115 o and they are locally known as "East-West" veins. Examples are the Lord and Lady Gulch, Iron Springs and Canal veins. 7

10 3. The "Outer" veins in the peripheral region of the district typically have significant barite intergrown with fluorite. Examples are the Meadow Woods, Lunch Pond, Clam Pond, and Anchor Drogue veins. Fluorite is mostly massive and coarsely crystalline, filling veins from wall to wall. Close to the vein walls the fluorite is commonly finely banded, suggesting rhythmic deposition WORK FOR CURRENT YEAR Work consisted of an in-depth literature search. RESULTS OF LITERATURE SEARCH Extensive research of available literature produced several fluorspar occurrences within the licence area namely Black Duck Vein, New Black Duck Vein, Church Vein, Scrape Vein and Doctor s Pond Veins (Figure 2.). Figure 2. Area covered by Licence # 18023M NTS 1L/14 8

11 Black Duck Vein Howse et. Al. (1983) note Black Duck Vein strikes 060º and was mined for a strike length of 285m Average grades were in the region of 90% CaF2 ranging in colours including amber, red, green and purple. Swells and pinches, typical of the St. Lawrence veins were evident. Van Alstine (1939) described the vein as varying from 7cm to 2.1m in width and extending to a depth of 77m. Smith (1957) suggests the first investigation of the vein revealed metal artifacts dating to 1825 at the base of an 8m shaft. Generally the vertical Black Duck Vein has a strike of N65º E, has a dip of 85º SE and is termed an eastwest vein. The deposit is a lens type with a length of 185m averaging 1.25m in width. Black Duck Mine (also termed Black Duck #1) Initially two fluorspar outcrops were visible on the vein approximately 30m apart and some 15m in length. Black Duck Pond (now drained) was approximately 3.5m below the western outcrop where a 1.25m wide vein of fluorspar was exposed. Extraction began in this area by building a landing from which under-hand stoping commenced. In 1932 Mr. Walter Seibert of Nutley, New Jersey began open-pit mining on the Black Duck Vein. Seibert, with the aid of local resident Aubrey Farrell, had contracted 20 local people to mine approximately 2,000 tons of fluorspar to be sent to the Dominion Steel and Coal Corporation (DOSCO) works in Sydney, Nova Scotia. It was agreed the ore would be washed and hand-picked to steel-grade specification and only when the ore was deemed suitable in the smelting of Bell Island iron ore would the miners be paid. Metallurgical results proved positive and commercial mining commenced in According to Farrell (1967) between 1933 and its closure in 1941 some 46,000 tons of ore had been extracted over a length of 270m and to a depth of 85m. Howse (1937) reported that the Black Duck Vein had been worked to a depth of 43m and showing no signs of narrowing or petering out. Smith (1957) reported that when the mine closed the ore was approximately 0.9m wide and that the reason for closure was that the inflow of water had reached the capacity of one 40HP pump. The vein was determined to be cut off at the western end by a diabase dike. Fowler and West (1954) state that at the time of the mine s closure the ingress of water had reached 300 gpm. Ore still remained at depth and deserved further exploration. Alcan Archives show an estimated reserve at Black Duck of 14,800 tons probable and 32,000 tons possible (1975). New Black Duck and Vein Smith (1957) described a fluorspar vein located on claim 80 and thought to be an extension of Black Duck Vein. 9

12 New Black Duck Mine (also termed Black Duck #2) Fowler and West (1954) mention that an attempt to develop the New Black Duck Vein approximately 450m southeast of Black Duck Mine resulted in caving in bad ground. Float was discovered close by when a football field was leveled suggesting a major system could be present. Smith (1957) states a 30m deep shaft was sunk and drifting occurred eastwards for approximately 45m. The ore was approximately 1.25m in width and had a similar appearance to that of Black Duck. Ground conditions were poor and caving was common. Farrell (1967) describes the workings as being about 170m overall and that some 2000 tons of ore were extracted. He stated that no further exploration was conducted in the area. Alcan Archives show an estimated reserve at New Black Duck of 5,700 tons probable and 6,900 tons possible (1975). Church Vein Howse and Fischer (1939) noted the vein carried a great deal of granite brecciated. This can be seen in a road cut on Highway 220 to the northeast of St. Lawrence. The vein was described by Van Alstine (1939) as red colloform, yellow, red, grey and purple fluorite with galena and blastonite* over a strike length of over 300m and varying in width from 15cm to 7.5m. Smith (1957) notes that the strike direction is 070º and trenching along a 250m strike yielded a vein averaging some 5.5m in width narrowing in an easterly direction. The vein has not been traced westwards. Frew (1964) described a 5.9m intersection as weakly mineralized granite, predominantly granite breccia, in diamond drill hole CS-1. The fluorspar was present as a dark purplish silica-fluorspar admix and in occasional stringers of high grade fluorite. Alcan archive records report this as a 2.2m zone at 42% CaF2. Alcan Archived record the reserve at 180,000 tons possible (1975) and that the richest portion of the vein was paved over during construction of Highway 220. In a plan by Newfoundland Fluorspar Works (1976) locations of three potential holes are given CS-2, 3 and 4. Alcan archive records (1978) show these holes were completed to depths of approximately 63m, 60m and 77m. One further hole called Church-Scrape was drilled to approximately 55m. *Blastonite is a local term for brecciated fluorite in a fine admix of microcrystalline silica and fluorite. Scrape Vein Howse et. al. (1983) describe the vein as striking approximately 060º and dipping 80º to the north. It has been traced for more that 500m having widths between 2m and 7m.. The ore was said to be red and white (although reconnaissance in 2000 found the vein to be predominantly blue with significant granite breccia) with minor galena. Howse and Fischer (1939)_ note the vein includes large quantities of granite breccia. 10

13 Farrell (1967) notes that during mining four separate lenses were found and pinches and swells were common. The length of the worked strike was approximately 100m at an average width of 1.2m and to a depth of 9.3m. Smith (1938) estimated the reserves at 30,000 tons. Alcan archive show a possible reserve of 16,200 tons (1975). Newfoundland Fluorspar Works (1976) reported a diamond drill hole to the west of Scrape Vein that failed to intersect any significant mineralization. Doctor s Pond Veins The veins (reconnaissance in 2000) are actually two parallel veins some 15m apart with a more or less central connection forming an italic letter H lying on its side in an east/west orientation. Howse et. al. (1983) indicate the Doctor s Pond Vein strikes 110º and dips 85º to the south and contains 1m of high grade fluorite with zones on either side of the vein of lower grade material between 0.7 and 1m wide. The vein was mined to a depth of 10m along a 75m strike length. Van Alstine (1939) described two veins. The north varying from 0.3m to 2.5m over a strike length of 110m and the south varying from 0.3m to 1.6m over a strike length of 46.5m. Smith (1938) reported that 150 tons had been mined averaging 72% CaF2 and estimated the reserves at 20,000 tons. CONCLUSIONS AND RECOMMENDATIONS Please refer to the map Figure 3. Black Duck Vein It is very likely that Black Duck No.1 and No.2 mines are on the same vein however poor ground and caving from No1 eastwards towards No.2 coupled with a relatively narrow structure would not at this time warrant further exploration. Doctor s Pond Veins and Church Vein There are numerous fluorspar occurrences just outside of the licence area to the east (found during reconnaissance in 2000). Although no reference could be found to it, a single map in the Alcan Archives depicted fluorspar float to the north east of Jone s Pond shown by a yellow star on the map (Figure 3). The Doctor s Pond Veins themselves are relatively minor east-west in nature and thus no exploration appears to have been conducted on them to the west. It is possible the parallel veins are branching from a wider vein to the west and could possibly be linked with the float found on Jone s Pond or to the Church Vein. It is recommended a trench (shown green to the east on Figure 3) is excavated across both Doctor s Pond Veins and to also intersect the Scrape Vein to give a better understanding of the structures in the area. It would appear that only a single diamond drill hole has been drilled on the Church Vein to the east towards Scrape Vein. Since the Church Vein has a recorded width of up to 7.5m it is worthy of a trench to the east (shown in green on figure 3). Should mineralization be found then further trenching should be conducted in 11

14 an easterly direction to assess the potential of a continuation towards either the Scrape or Doctor s Pond Veins. Figure 3. Recommended Exploration on Licence # 18023M 12

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