mewl 5. prepared by: REPORT ON 1997 EXPLORATION WORK ELGIN LAKE MINES LIMITED LOT T200 (BADGER MINE PROPERTY) GILLIES TOWNSHIP

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1 mewl 5 52A5SE GILLIES 1 REPORT ON 1997 EXPLORATION WORK ELGIN LAKE MINES LIMITED LOT T2 (BADGER MINE PROPERTY) GILLIES TOWNSHIP THUNDER BAY MINING DIVISION ONTARIO prepared b: Redden, B.Se. Jonsulng Geologs Box 117 Wabgoon, ON POV 2WO el/fax (87) Mar. 18, 1998

2 52A5SE GILLIES O IOC Table of Conens Iem page Inroducon l Proper Holdngs l Locaon and Access l Prevous Work l General Geolog Economc Geolog Exploraon Mehodolog Resuls Conclusons Recommendaons Fgures Fg. l Locaon Map Fg. 2 Skech Map, Lo T2G, Glles Twp... 6

3 Inroducon The Rabb Mounan Area has been he scene of exploraon snce he frs slver dscover n Durng he 188's man properes were explored and several were brough no producon. The Badger Mne was dscovered n A pocke of hgh-grade slver ore, assang up o 19, ounces of slver per on was mmedael encounered. The proper was developed and mned b a shaf, hree levels and wnzes. Producon was repored o be abou $25,. Wh a general drop n slver prces n 1891 all he area mnes closed ncludng he Badger. Snce ha me sporadc exploraon has been carred ou from me o me. Based on he prevous resuls and recen acv n he area, some geologcal reconnassance work was done on T2 n Ths repor presens he resuls. Proper Holdngs Mnng Lo T2 (leased clams TB TB 1614) covers mos of he prevous workngs of he Badger Mne. The shaf les 5' (15m) souh of he norh boundar of T2. Leased clams TB 1331 and TB are also ncluded n he proper. The proper s held b Elgn Lake Mnes Ld. P. K. Mcwllams, s presden. Carngorm Mnes Ld., of whch Mr. Mcwllams s also he presden owns he conguous proper o he norheas. Locaon and Access Hghwa 588 crosses o he norhwes, abou 3 km wes souhwes of Thunder Ba, Onaro. A concesson road crosses he souh par of he proper. A dr road crosses prvae land from Hw 588, hrough los T96, T95 and T21 o whn a hundred meers of he Badger shaf. Prevous Work The Badger Mne was dscovered n A pocke of hgh-grade slver ore, assang up o 19, ounces of slver per on was mmedael encounered. The proper was developed and mned b a shaf, hree levels and wnzes. Producon was repored o be abou S25G,. Wh he drop n slver prces n 1891, he Badger and all he area mnes closed. Snce ha me sporadc exploraon has been carred ou from me o me. In he 193's Anmke Mnes Lmed, sphoned he waer level down from he shaf collar for abou 2'. A phoo aken a hs me showng hgh grade nave slver and argene samples labelled 'Badger Mne' confrms he hgh grade repored o have been encounered durng mnng. J. W. Redden - Geologs page l

4 A verbal repor o hs auhor from one of he crew who worked on he sphonng also confrmed he presence of hgh grade based on he commens made b he se engneer durng he work. The compan was no able o rase funds durng he depresson and no furher work was done. Ths s he onl effor o re-examne he underground snce In he lae 196's Elgn Lake Mnes Lmed drlled fve holes n he Badger ven and o he souhwes of he Badger shaf. Vens were nerseced n all holes. Two prevousl undocumened ads on he wes slope of he hll wes from he Badger shaf were also locaed. Argene was noed n he dumps. Mnor prospecng, srppng, drllng and samplng was done n he 197's b Elgn Lake Mnes. In 1995 an aemp o open he norhwes ad was sared. Afer excavang 3m from he caved enrance, excessve overburden hckness (1m) prevened furher work. General Geolog The regonal geolog consss of 3 o 4' of black, prc, graphc shale. The shale has been cu b lae Precambran dabasc nrusons, prncpall slls or near-conformable dkes. Due o eroson, he dabase forms a cap up o 2-3m on hlls n he area. The sedmens have a regonal dp of 3 o 5 degrees o he souh. The shale and dabase have been affeced b faulng. Major faul drecons are ENE o NE and NNW. The faulng has boh vercal and horzonal componens. Vercal dsplacemens of 3 o 1m are mos common, hough dsplacemens of 3m and more have been recorded n he area. The horzonal componen s unknown. All observed fauls on he proper dp seepl. Mos of hese fauls have been flled b ven mnerals. Economc Geolog All rock pes n he area have been cu b vercal or near-vercal fauls. The fauls have been flled b vens conanng quarz (glass, whe, amehsne), calce (clear, whe) wh lesser fluore (green, purple) and occasonall bare (whe, ranslucen). Meallc mnerals presen n he vens nclude pre, marcase, sphalere, galena and occasonall chalcopre. Vugs lned wh crsals are no uncommon. Cockade exure and mneral bandng are also common. The vens are generall breccaed zones conanng assored angular fragmens of he black shale or dabase. Ofen, sold vens up o.5 m wde are presen whn he brecca. J. W. Redden - Geologs page 2

5 The slver s presen as flms, leaves or nugges n he form of he slver sulphde, acanhe (locall ermed argene) or less commonl as wre or dendrc nave slver. Slver values end o occur ver erracall whn he vens and occasonall n fracures whn he wallrock. The more sgnfcan slver values ended o be found where he vens are enclosed whn he black shale and whn 3 o 6 m of he overlng dabase Exploraon Mehodolog Based on prevous work n he area, seleced porons of he proper were examned n One raverse was made ed no opograph and known locaons. The objecve was o examne areas prevousl denfed or suspeced o conan venng whch could be opened b srppng or renchng. Onl one raverse was made due o oher prores whch arose. Fg. 2 accompanng hs repor summarzes he daa compled. Resuls Two separae areas have been denfed for parcular addonalaenon on he proper: The Badger Mne and surroundng area from he norh boundar of T2 o abou 3m o he sourh and exendng eas and weserl o beond he base of he slopes of he hll warrans nensve exploraon. Ths area ncludes he workngs of he Badger Mne, he weserl projecon of he Badger ven and he eas rendng valle whch s known o conan venng. Ths area s enclosed b clams TB 169 and TB The known venng n hs area has no e been sasfacorl nerpreed o esablsh ven connu. The second area merng aenon s he eas-wes rendng valle crossng he hll near he mddle of lo T2. Venng has no been dscovered however he valle s covered wh overburden. Furher work s expeced o expose he venng. Noe ha he orgnal Badger Mne Proper conaned 2 acres. Ths conssed of lo T21 (96 acres) and he norh par of T2 (14 acres). Clams TB 169 and TB 1614 consue he orgnal norh par of lo T2. J. W. Redden - Geologs page 3

6 Conclusons 1. An exploraon program s warraned o cover he cenral par of lo T2. 2. Dewaerng he Badger Mne and examnng he underground workngs s warraned. Recommendaons 1. Dewaer he Badger Mne and examne he underground workngs. a. acqure perms b. acqure permssons d. arrange for conracor c. prepare access o shaf collar e. emphasze safe 2. Conduc an exploraon program on he cenral par of lo T2 (onl on he hgh hll and slopes): a. esablsh a norh-souh grd wh 25m spacng nervals for he norhern 3 meers of he proper b. exend he grd a 5m o 1m nervals souherl o he proper boundar c. conduc dealed geologcal surve d. conduc dealed fluxgae magnec surve (1m nervals) e. where warraned conduc geochemcal surve along and downward he eas and wes slopes of he hll (nomnal 1m nervals, gher where warraned) f. srp and rench arges 3. Evaluae he resuls and exend he work f warraned. J. W. Redden - Geologs paae 4

7 Fg. l RABBIT MOUNTAIN AREA Locaon Map Glles, O'connor, Papoonge and Scoble Townshps scale 1:31,68 1km

8 J? V V o f- c- o ^ o x \ v. V * -* o o \ * ' ^ 1 \ * X -5 \ \ X!j ' f. H* M * 1 v. ^c r > -s -e 1 "a * N 6 f a k 4 ^ _ r o V A-1* (D, v * A 1 T- -o 2 ^. o -* * * ; - J 2 M ^

9 Mnsr of Declaraon of Assessmen Work Performed on Mnng Land Mnng Ac, Subsecon 65(2) and 66(3), R.S.O. 199 Tr J ar s vox f"'3;"r Number (offce us*) rc Imagng 52A5SE GILLIES 9 )f subjecons 65(2) and 66(3) of he Mnng Ac. Under secon 8 of he revew he assessmen work and correspond wh he mnng land holder. Recorder, Mnsr of Norhern Developmen and Mnes, 6h Floor, Insrucons: - For work perforrned on Crown Lands before recordng a clam, use form Please pe or prn n nk l 2 1. Recorded holder(s) (Aach a ls f necessar) Name /W ** Clen Number T er/ T// 6 Address "3 J r- * S.6 Telephone Number (go?) 138~ J/'3 Fax Number Name Clen Number APR O 2 IS 4V4Z- Fax Number 2. Tpe of work performed: Check ( *- ) and repor on onl ONE of he followng groups for hs declaraon. Work Tpe 'Geoechncal: prospecng, surves, assas and work under secon 18 (regs) 7?- W Daes Work Performed From 2 7 Da Monh j Year Da Monh Year Global Posonng Ssem Daa (f avalable) Townshp/Area Phscal: drllng, srppng, renchng and assocaed assas X-*4r ' To z.o /2- '^#V M or G-Plan Number C5f" ^ 5" "7 Commod Toal S Value of /Work Clamed NTS Reference Offce Use.5X^7'** Mnng Dvson *jl Q [ Rehablaon Resden Geologs/ /^) Dsrc IhjrJn) XA^ Plgase rernejt ber p; -^qpajn a work perm from he Mnsr of Naural Resources as requre' roper noce o surface rghs holders before sarng work; and aach a Saemen of Coss, form 212; - provde s map showng conguous mnng lands ha are lnked for ass gnng work; APR luc*e ll 'o cop' es of Vour echncal repor. RECEIVED APR O 2 19S8 3. Person or companes who prepared he echncal repor (Aach a ls f necessar) EOSCIENCE ASSESSMENT OFFICE Cerfcaon b Recorded Holder or Agen (Prn Name) GEOSCIENCfcASSbSSMbNI.OFFICE;, do hereb cerf r r-rs LJBaUllcll Kuwlsd^ of he facs se rh n hs Declaraon of Assessmen Work havng caused he work o be perforrned or wpeesed he same durng afer s compleon and, o he bes of m knowledge, he annexed repor s rue,.v ' ; ' gen's Address 777, r~7- l Telephone Number 3f*7jrs~ (7///// s / /#^ Fax Number

10 5. Work o be recorded and dsrbued, he mnng land where work was performed, mus accompan hs form. l Work can onl be assgned o clams ha are conguous (adjonng) o a he Ume work was performed. A majj. showng he conguous lrk * "* -, ^. TT. *-....~ ^ s a ffa -..,, ~- '- ~-~'-....-'1 ^ '\f\-muf^rfrvfv-fmflxllf'~~' '''' '' ""J,,-V" '; '"- '- r~-:.l-'-nj~ -' - - *' '': f Mnng Clam Number. Or f work was dona on oher elgble mnng land, show In hs column h^localon number ndcaeron he clam map. eg TB 7827 Number of Clam l Uns. For oher mnng land, ls hecares. 16 ha performed on hs dalm or oher mnng land. 2 ^r * e S26, 825 Value of work appled o hs clam N/A Value of work assgned o oher mnng clams. J^fr Bank. Value of work o be dsrbued a a fuure dae. S2.825 ;v eg eg rf3l ,. L 12^ l 'f*) B, -.-* ^' f ' f 2 fzoo f^/a. S 8, s-o S24, S 4, 55 -^~ S4,892 55* ' ~* "'; -' :--' -. 8 J ~ - 1 w * 9 - : ;..,/ j 1 " - ~..,. ~-'-:l: L...'.. ^ Column Toals SSo s so -d- Sso l,, do hereb cerf ha he above work creds are elgble under (Prn Full Name) subsecon 7 (1) of he Assessmen Work Regulaon 6/96 for assgnmen o conguous clams or for applcaon o he clam where he work was done. r. - ' " "; Sgnaure of Recorded Holder or Agep Auhorzed n Wrng Dale 6. ^Insrucons for cung back creds ha are no approved. Some of he creds clamed n hs declaraon ma be cu back. Please check ( ^ ) n he boxes below o show how ou wsh o prorze he deleon of creds: d 1. Creds are o be cu back from he Bank frs, followed b opon 2 or 3 or 4 as ndcaed, n 2. Creds are o be cu back sarlng wh he clams lsed las, workng backwards; or Q 3. Creds are o be cu back equall over all clams lsed n hs declaraon; or d 4. Creds are o be cu back as prorzed on he aached appendx or as follows (descrbe): Noe: If ou have no ndcaed how our creds are o be deleed, creds wll be cu back from he Bank frs, followed b opon number 2 f necessar. For Offce Use Onl Receved Samp RECORDED APR Deemed Approved Dae Dae Nofcaon Sen Dae Approved Toal Value of Cred Approved Approved lor Recordng b Mnng Recorder (Sgnaure) 241 (2/96)

11 Onaro Mnsr of Norhern Developmen and Mnes Saemen of Coss for Assessmen Cred Transacon Number (offce use) Personal Informaon colleced on hla form la obaned under he auhor of eubaecon 6(1) of he Assessmen Work Regulaon 6/96. Under secon 8 of he Mnng Ac. he Informaon la a publc record. Thla Informaon wn be uaed o revew he assessmen work and correspond wh he mnng land holder. Quesons abou hs collecon should be dreced o he Chef Mnng Recorder. Mnsr of.norhern Developmen and Mnes. 6h Floor. 933 Ramse Lake Road. Sudbur. Onaro. P3E 685. ^ J O A -j ^\ Work Tpe r, n f"/ Uns of Work Dependng on he pe of work, ls he number of hours/das worked, meres of drllng, klo mere* of grd lne, number of samples, ec. Cos Per Un Toal Cos 35" 2. o Assocaed Coss (e.g. supples, moblzaon and demoblzaon). Transporaon Coss Food and Lodgng Coss Calculaons of Flng Dscoun RECORDED,; APR l Value of Assessmen Work 1. Work fled whn wo ears of performance s clamed a 1 (M) of he above Toal Value of Assessmen Work. 2. If work s fled afer wo ears and up o fve ears afer performance, can onl be clamed a SO'o of he Toal Value of Assessmen Work. If hs suaon apples o our clams, use he calculaon below: TOTAL VALUE OF ASSESSMENT WORK x.5 - Toal S value of worked clamed. Noe: - Work older han 5 ears s no elgble for cred. - A recorded holder ma be requred o verf expendures clamed n hs saemen of coss whn 45 das of a reques for verfcaon and/or correcon/clarfcaon. If verfcaon and/or correcon/clarfcaon s no made, he Mnser ma rejec a!l or par of he assessmen work submed. Cerfcaon verfng coss: l, ^ do hereb cerjf na ne amouns shown are as accurae as ma (please pxn full name) reasonabl be deermned and he coss were ncurred whle conducng assessmen work on he lands ndcaed on he accompanng Declaraon of Work form as o make hs cerfcaon. (recorded holder, (gen, or (Ule compan poson wh lgnlng auhor) l am auhorzed Dae

12 Onaro Mnsr of Mlnsere du Norhern Developmen Developpemen du Nord and Mnes e des Mnes Geoscence Assessmen Offce 933 Ramse Lake Road June 22, h Floor Sudbur, Onaro PETER KIMBER MCWILLIAMS P3E 6B5 264 MAIN STREET MILTON, ONTARIO Telephone: (888) L9T-1P2 Fax: (75) Vs our webse a: Dear Sr or Madam: S ubmsson Number: Subjec: Transacon Number(s): Saus W Approval We have revewed our Assessmen Work submsson wh he above noed Transacon Number(s). The aached summar page(s) ndcae he resuls of he revew. WE RECOMMEND YOU READ THIS SUMMARY FOR THE DETAILS PERTAINING TO YOUR ASSESSMENT WORK. If he saus for a ransacon s a 45 Da Noce, he summar wll oulne he reasons for he noce, and an seps ou can ake o remed defcences. The 9-da deemed approval provson, subsecon 6(7) of he Assessmen Work Regulaon, wll no longer be n effec for assessmen work whch has receved a 45 Da Noce. Allowable changes o our cred dsrbuon can be made b conacng he Geoscence Assessmen Offce whn hs 45 Da perod, oherwse assessmen cred wll be cu back and dsrbued as oulned n Secon #6 of he Declaraon of Assessmen work form. Please noe an revsons mus be submed n DUPLICATE o he Geoscence Assessmen Offce, b he response dae on he summar. If ou have an quesons regardng hs correspondence, please conac Seve Beneeau b e-mal a benees@epo.gov.on.ea or b elephone a (75) Yours sncerel, ORIGINAL SIGNED BY Blar Ke Supervsor, Geoscence Assessmen Offce Mnng Lands Secon Correspondence ID: Cop for: Assessmen Lbrar

13 Work Repor Assessmen Resuls Submsson Number: Dae Correspondence Sen: June 22, 1998 AssessonSeve Beneeau Transacon Number Frs Clam Number Townshp(s) l Area(s) Saus Approval Dae W T2 GILLIES Approval June 19, 1998 Secon: 12 Geologcal GEOL Correspondence o: Resden Geologs Thunder Ba, ON Assessmen Fles Lbrar Sudbur, ON Recorded Holder(s) and/or Agen(s): PETER KIMBER MCWILLIAMS MILTON, ONTARIO JAMES WILLIAM REDDEN WABIGOON, Onaro Page: 1 Correspondence ID: 12456

14 \ ffl'f E R fe N C E S AREAS ^WITHDRAWN FROM BlSPOSfTfOff M.R.O. -MINING RIGHT* CNLV S.R.O. - SURFACE RIGHTS ONLY M.+. - MINING AND SURFACE RIGHTS " DMarlnUn Oner No. O*** n^nduun Fh MMM MNHT WTOWIAWH FROM STMW OMXf NO, W-TS-TSr4JHW DATED /oa'm.to PMVKT ADVWH ALBWTWN VMUB WHITE* COlSlDoBr wfllmsrt OF COnVKA OF IfWMATKW. S. ' ' 1 - -' 1 en LJ U") *f > 1 V ** -B1 ^ ^ ^^ //"^ V^ ^/ \Y' j ; --^ ^T ^ /p c " 1 f - A-' ^ ^ ^ ^ avs^ ^^p /'l1 ^' / (P) IO J*" -^ 9 J *^ ' ^ (P). * W^^T ^ ^r ' ^^ UM ^NSNvsv^N SS\M-I7NV^1 Brv 1- r " ' l *\\ V IV (p) 7 " *:-. IC'J5"' ~ -. ' f.'-r"t.: v5^r* j'.' - O C *x Y j^ ^ R (5) 4 -J l ; (E) 6 (?) "V* f 'C*T ' v" (p) R\IS8 4- } S R,-^ Sf S R frj SWO ' -4 V. A l- (P) rm"s-. b r? o -'"1 S f* c "*~ S B SURFfCE. ' llcts OnV-Y 4 -" T. 36 T B (P: j ^z r ' -. e/p^ j'zflfe J '^9184 I B 'MTO TT (D ) ^p ,3 soocpj S * l" I 6.4 '''W SRO "^J T * 3 2 l o re T. 146 TOP lul? 1682 ^ J /~^\,So. l T1J r ' v( W R )6ll ' 16) V J^X */ I338X 1 ". I ' r '. " ^ V j (P) S R ' 1 V^/ 14 ~ ; \ ^ 2, a j X- ^. Cj - - SHO " V Vj jr^ D 7/ /^nc f C*v- --^. bj _ 1 CQ O C) LO V ^ 1~ If- LEGEND.. p v' WAY ANL- OOU Tf No OTHER ROADS TRA LS SURVEYED LINES: TOWNSHIPS, BASE LINES. ETC -" -- LOTS, MINING CI.AIMS. F* RCELS. 67^. " UNSURVEYED LINES: LOT LINES PAPCEL BOUNDARY MINING CLAIMS ETC. f.ailwayand ^GHTOFW UTIL.TY LINES NON PEf ENNIAL STREAM FLOODING OR F LOOPING 51 SUBDIVISION OR COMPOS!, PCAf. RESERVATIONS ORIGINAL SHORELINE MARSH OR MUSKEG MINES TRAVERSE MONUMENT w/ 'N- ~"~"~",.,. ^ _ VJ r 1 O ^L^Vj'^-l^A.^a^ V '^uk W/f/S/W/S/Jf'///!??/, DISPOSITION OF r.rqwn LANDS ^YPE O F DOCUMENT 4 SYNUOl PATENT. SURFACE 8. MININC RIGHTS...,,,....SURFACE RIGHTS C NLY..MINING RIGHTS ~)V LY^.. "Q LEASE, SURFACE f MINING ".SURFACE RIGHTS ON LY.... C ".MINING RIGHTS ONL LICENCE OF OCCUPATION.. ORDER-IN-COUNCl... RESERVATION. CANCELLER,.^..,,...m. *: EIGHTS...^J P f 1 k OT (f.. SAND8.GRAVEL "...., 'V LAND USE PERMITS FOR COMMERCIAL TQURISM.OUTPOST CJOfS V NOTE: MINUJQ H'GHfS,N PABCf :'. - ATEMTf ;.. K OH. M T, v3. vsfc: IN OBIG:;.A': p..tr "f av T e c.1 c LANDS ACT R.S.O. 19'. CHJr 3*1. SeC. FA. Sl'^?.C 1. O * c (p) *^s ^- I III (p) - ; / (p) SCALE: 1 INCH - 4 CHAI FEET. O OOO 7X. j MHW (.ax) aooo JOO 1OOO METRES l* XM) NS ( -T ~- JOOO '2 K M) GILLIES TWP. THE INFORMATION THAT APPEARS ON THIS MAP HAS BEEN COMPILED FROM VARIOUS SOURCES AND ACCURACY IS NOT GUARANTEED. THOSE WISHING TO STAKE MIN-. ING CLAIMS SHOULD CON SULT WITH THE MINING RECORDER, MINISTRY OF NORTHERN DEVELOP MENT AND MINES, FOR AD DITIONAL INFORMATION ON THE STATUS OF THE LANDS SHOWN H^REON, 52A5SE GILLIES 2QO,/ R. 13 ( 1 (P) 1 ; S w o. "~ "T- (P), -r^ B*{ 4 e, " s.^^v II ^ *^ ^ * U&,/ s '/f PEA 1) l f 2 SON ^- H CD (F) K', f^^^^./^ S 1 v v x) \ j - (p) ^A, J ^SajBV, s-r.a (p) Q -( o a M. N. R. ADMINISTRATIVE DISTRICT THUNDER BAY MINING nvisio THUNDER BAY! LAND TITLES/ REGISTRY DIVISION THUNDER BAY /JT"X Mnbr of l U^J Ndjral vaclx Resources a -aro (fa&a J f, # "* 'JULY, 1986 ', *. Mnsr cf ^orhem Developmen and Mnes G-657

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