RECE1VEL. m 4 2A18SW MATHESON 010 KIDD CREEK MINES LTD. MATHESON TWP. N.T.S.: 42-A-10/9

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1 m A18SW MATHESON 010 RECE1VEL UV * MNING LANDS SECTION KIDD CREEK MINES LTD. REPORT ON GEOPHYSICAL WORK MATHESON TWP. N.T.S.: -A-10/9 CLAIMS: (1) P P 5830 () P P P P P P 5599 P P P P P (3) P P P P P 581 () P P 5838 P P 580 NOVEMBER, 198 W. A. GASTEIGER

2 INTRODUCTION During August, 198, airborne magnetic and electromagnetic surveys were conducted over parts of Matheson and Cody Townships. In the northern half of Matheson Township, these surveys traversed mining claims owned by Kidd Creek Mines Ltd. These claims are located in four blocks of contiguous claims. The general geology of the area consists of overall East-West stratigraphy with what appears to be fold repeated sequences of sedimentary, mafic and ultramafic volcanic layers. Similar stratigraphy hosts gold occurrences in Hoyle Township to the west. SURVEY DETAILS The survey was conducted by Aerodat Ltd. using a helicopter borne system. An Astar 350-D helicopter was used. The magnetometer was a GEOMETRICS G-803 Proton Precession type with a 1/ gamma sensitivity. The EM was run with an AERODAT/GEONICS AEM system consisting of vertical coaxial coil pairs operating at 90 Hz and 550 Hz and one coplanar pair operating at 960 Hz. Mean flying heighth of the helicopter was 70 metres, the magnetometer bird was at 5 metres and the EM bird at 38

3 metres. Line spacing was approximately 00 metres. The position of the helicopter was constantly recorded using a miniranger radar positioning system. SURVEY RESULTS On the attached map, the in-phase and quadrature profiles of the electromagnetic response are plotted along the portions of any flight lines that traverse the claims. Flight line paths and the magnetics are plotted for the claims and surrounding area. Block 1: This area consists of the 11 contiguous claims on the west side of the map sheet. The northern portion of this claim group lies along the southern flank of a large E-W trending magnetic high. A weak conductive response on the north edge of claim P 5830 is likely part of a graphitic horizon that marks the contact between mafic and ultramafic volcanics to the north and sediments to the south. Most of the claim group appears to be underlain by low magnetic susceptibility sediments. No other conductors occur. Block : This 15 claim group lies in the north-central part of the map sheet. A fairly strong conductive zone strikes roughly E-W across the southern tier of claims. It starts at

4 the north-west corner of claim P and leaves the property in the east at the southeast corner of claim P This conductive zone is located on the north flank of the same magnetic high referred to in Block 1. Again, this zone appears to be a fairly well developed graphitic horizon marking the contact between sediments to the north and mafic and ultramafic volcanics to the south. The low magnetics over most of the property suggests a fairly uniform sequence of sediments. Block 3: This group of 8 contiguous claims lies due south of Block. The only AEM responses in this block that do not appear to be due to railways, power lines, or other cultural effects occur in claim P Here again, the conductors lie on the flank of a subtle magnetic high, this time the south side. This magnetic high comes off the larger high to the north and appears to strike through the property towards the south-west. The conductive zone is probably weakly developed graphite with mafic volcanics to the north and sediments to the south. Block : This block consists of 10 contiguous claims in the south-east portion of the map sheet; all conductive responses appear to be due to power lines. The magnetics is generally flat; most of the group appears to be underlain by

5 sediments. A very subtle E-W trend across claims P and P appears to be the continuation of the weak magnetic high in Block 3 and may suggest the presence of some mafic volcanics in this area. Also, claim P 5819 is located on the northern flank of a weak magnetic high. This suggests that a sedimentary volcanic contact occurs along the southern boundary of the claim group. CONCLUSIONS AND RECOMMENDATIONS The airborne magnetic and EM surveys performed over these claim blocks give a good guide to the stratigraphy of the area. The interpretation of the airborne information combined with ground geophysics and overburden drilling will give a detailed picture of any stratigraphy and structure that may be favourable to gold deposition. The analyses from till samples in overburden drilling may pin-point potential drill targets. WILL GAS TE ICE R

6 Minisiryot R eport of Work Natural resources l r.,. -. (Geophysical, Geological, Ontario Geochemical and Expenditures) A10SW MATHESON 900 Type of Survey(s) The Mining Act GEOPHYSICAL (AIRBORNE E.M. AND MAG) Claim Holclor(s) KIDD CREEK MINES LTD. Survey Company JBQX. 11 O, TIMMINS, ONTARIO Name and Address of Author (of Geo-Technical report) KIDD CREEK MINES LTD. W.A. GASTEIGER ( as above) Special Provisions Credits Requested 1 nstructions Geophysical For first survey: Enter 0 days. (This includes line cutting) For each additional survey: using the snniu grid: Man Days 1 nstructions Enter 0 days (for each) Complete reverse side and enter total(s) here Airborne Credits Note: Special provisions credits do not apply to Airborne Surveys. - Electromagnetic - Magnetometer - Radiometric - Other Geological Geochemical Geophysical - Electromagnetic - Magnetometer - Radiometric - Other Geological Geochemical Electromagnetic Magnetometer Radiometric Expenditures (excludes pqwetlsttipping) 1 ypo of Work Perfqrrnedlh"' L" 5 N r MINING DIVI'- i-fi i i: Q) F 113 P li w rf i- Performed on Cluir i([j j^j..---.,.... j..-...cf.u-^ i ' r r t! J :l M Mi-!/ ^ ^ -, Days per Claim Days per Claim Days per Claim Calculation of Exfiend litur"jlri)}j^rf t rjafcci t3.l ^r^.^. t O j Total Expenditures Da-y Fotal s Credits S = 1 nstructions Total Days Cradle, may be apportioned at the claim holder's choica. Enter number of days credits per claim selected in columns at right. Report Completed D;ita of Report {Sept. 7/8 Certification Verifying Report of Work dar or Agent (Signature) Township or Area m tne "txpend. Days Cr." columns. Do not use shaded areas below. MATHESON tor's Licence No. T-l Survey Dates (linecutting to office) itotal Miles of line Cut Day Mo. Yr. Day Mo. Yr. Mining Claims Traversed (List in numerical sequence) Mining Claim Expand. Mining Claim Prefix Numbtr Days Cr, ^Prefix Number P ^ V '55350 l l L b V V V l t MM ' ^ \ 5817 "'5818 l' SEP - ^eceipl^no,. irrem y 198 r^tv^ I! D For Office Use Only Total Days Cr. Data' Recorded i Recorded A i f J t? 'J., / y ' Data^^prBVB^ffr^fiecQrded Ri c MINIM 5 LANDS SEC Total nu Tiber of mining claims co ruport of Minirjg. Rt rjiife CEIVE PT 1 Ci 1QP9 \j \ \ y I3OC. Expend. Days Cr. r-v.. u RON verad by this l p work. X k. 'i' 1 '.'-" j " ^..-v- /'/"^ Zr'S^~~'~/' C'^'V^' **\/ ' B rti n c h PlrecLUPiJ -^L i y l hereby certify that l have a personal and intimate knowledge of the facts set forth in the Report of Work annexed Kereto, having performed the work or witnessed sume during and/or after its completion and the annexed report is true. Nama and Podial ArldrfiS!; nf Pnr

7 i i : i.'.no Ministry of Till irces Report of Work (Geophysical, Geological, Geochemical and Expenditures) r ;-,, o f SurvovTsl Geophysical (Airborne EM S MAG) i Clii i m Hofdbr(s) i KIDD CREEK MINES LTD. The Mining Act Instructions: Please type or print. If number of mining claims ir exceeds space on this form,,:i' : Note: Only days credits cuili'i.ri": "Expenditures" suction nv, in the "Exoend. Days i "i." Do not use shaded areas below. itownship or Area MATHESONrOWNSHIP Licence No. T-l?.9-?i :L1JI5, TIMMINS, Ontario. L i' voy Company AERODAT LTD. : Nninu iind Address of Author (of Geo-Tachnical report! i W. A. GASTEIGER, BOX 110, TIMMINS, Ontario. 'j-oihts Requested per Each Claim in Columns at right ''i.,;.;,,ll 1'ioviiluoh!-or first survey: Enter 0 days. (This nduries line cutting) i For each additional survey: j using the same grid: i fcnter 0 days (for each) j i Complete reverse side md (inlur lotiills) here FRSCORD 1 WOV tt i Airbo.'nrt Crtulus Geophysical - Electromagnetic - Magnetometer - Radiometric - Other Geological Geochemical Geophysical - Electromagnetic - Magnetometer - Radiometric fedthi Geological 3 Geochemical L^ i Duyn per Claim Days per Claim Days per Claim Date of Survey (from Si to) Day l Mo. Yr. Day Mo. Yr. Mining Claims Traversed (List in numerical sequence) Mining Claim Prefix Number P '' "' '' 5833 l ' t' 5833 i '' t [ ^ 5830 ' ' Expend. Days Cr. D ^ t ) i ) ) ) ) ) 0 Total Miles of lint- Cm Min ing Claim Prefix Number P ^ ' i ^ RECEIVED ' j 1 l 'JOVS199 MINIIG ianos StCTION r j i i Note: Special provisions credits do not apply to Airborne Surveys. Electromagnetic Magnetometer 0 0 \ v 5598 Radiometric 5599 ; Expenditures (excludes power stripping),... 'Vl'i'OtWnrk pl'r f pi intjii. ' 'i'm ", ' 5158 \ V ; : uil on Cltnin'sl J 5839 ^ v mini ion of R x riundll ura Diiys Credits luliil l:x iiiiidillirui, - T, -j ' ' ' F v' ^ Diiya Ci oil in! 'i 5839! 'il "T'oial ruirnbur of mininrj J ; claittis covurod by i^'s, ^ rei^om nf wof k. i - 'J "1 OI.M! D.iys Crodili may be apportioned at tha claim holder's clioico. l-.mter number of days credits par claim selected in i:o!u inns iit riijh r. 1 in.". For Office Use Only il D;iys Cr.lDiite Recorded. Mimng/laxwrder,^.. c -",.'.',".: f.'.'-.^ ~-'.".""'"' ~ ',. fi- ' - "^ -. -~.S -'" S 'M i i i: i':i:'i;i'i Vi.'i i(yini Report of Work t.irv-, sol forth in the Report of Work [nim'xod!v.'n'io, hnviny icrlurini;u il

8 Ministryof Geotechnical Natural Resources RPnOrt " eport Ontario Approval Mining Lands Comments File r: j To: Geophysics Comments [^Appr oved Wish to see again with corrections Sign To: Geology - Expenditures Comments Approved Wish to see again with corrections Signature To: Geochemistry Comments y VJ-X A l l Approved \ \ Wish to see agai n with corrections Signature j To: Mining Lands Section, Room 66, Whitney Block. (Tel: )

9 359, Mining Recorder Ministry ofnatural Resources 60 Wilson Avenue Timmins, Ontario PN S7 Dear Sir: We have received reports and maps for an Airborne (Electromagnetic and Magnetometer) Survey submitted on Mining Claims P et al In the Township of Matheson. This material will be examined and assessed and a statement of assessment work credits will be Issued. Yours very truly, E.F. Anderson Director tand Management Branch Whitney Block, Room 650 Queen's Park Toronto, Ontario M7A 1W3 Phone: 16/ DU: se cc: Kidd Creek Mines Limited Timmins, Ontario Attn: W.A. Gastelger.

10 MINING CLAIMS TRAVERSED P P P P P 5158 P P 5598 P 5599 P 5539 P P P P P 5833 P P 5833 P P P P P P 5830 P P P P 5838 P P 5838 P P P P P 5839 P P 5839 P P 5809 P 5810 P 5811 P 581 P 5817 P 5818 P 5819 P 580 TOTAL CLAIMS =

11 Ministry of Natural Resources File. Ontario GEOPHYSICAL - GEOLOGICAL - GEOCHEMICAL TECHNICAL DATA STATEMENT TO BE ATTACHED AS AN APPENDIX TO TECHNICAL REPORT FACTS SHOWN HERE NEED NOT BE REPEATED IN REPORT TECHNICAL REPORT MUST CONTAIN INTERPRETATION, CONCLUSIONS ETC. Type of Survey(s) Airborne Mag St EM Township or Area Matheson Twp. Claim Holder(s) KIDD CREEK MINES LTD. Box 110, Timmins, Ontario Survey Company - AERODAT LTD. Author of Report. W. GASTEIGER Address of Anthnr Box 1 1 0' Timmins, Ontario MINING CLAIMS TRAVERSED List numerically (See attached list) (prefix) (number) Covering Dates of Survey AIKJ./8 - NOV./8 (linecutting to office) Total Miles of Line Cut ^^ SPECIAL PROVISIONS CREDITS REQUESTED Geophysical DAYS per claim j. ENTER 0 days (includes line cutting) for first survey. Electromagnetic. Magnetometer-- Radiometric ENTER 0 days for each additional survey using same grid. Other- Geological. GeochemicaL AIRBORNE CREDITS (Special provision credits do not apply to airborne surveys) 0 Magnetometer 0. Electromagnetic (enter days per claim). Radiometric DATE: Nov. 3/8 Author of Report dtagent Res. Geol...Qualifications. Previous Surveys File No. Type Date Claim Holder TOTAL CLAIMS. JLtL 837 (5/79)

12 SELF POTENTIAL Instrument.., ^.^ ^ ^^ ^^^ ^^^ ^ ^ ^ ^ - Range. Survey Method ^ ^ ^ ^^ ^^^ -.^^ - ^- ^. Corrections made. RADIOMETRIC Instrument. Values measured. Energy windows (levels) --^^^ ^ ^-.^ ^- --^^..^^.-^^^ -^ Height of instrument Background Count. Size of detector ^.^^- ^^ --^^^ ^^- ^^^ ^^^^ ^ ^.^^^ - Overburden.^... ^..^ ^-. ^-. - ^^ ^..^ - (type, depth include outcrop map) OTHERS (SEISMIC, DRILL WELL LOGGING ETC.) Type of survey ^ ^- -.^.^^ Instrument -^^ ^ -^-^- ^ ^^ ^ ^-^^ Accuracy ^.^ -^ ^^ ^^^- ^^ ^ ^. Parameters measured. Additional information (for understanding results). AIRBORNE SURVEYS Type of snrvpym Airborne magnetic and electromagnetic Instrumentfs) Geometrics G-803 Proton Precession Magnetometer;^^-^ -, (specify for each type of survey) Arr..rary Mag; - 1/ gamma EM; l ppm ^^^^^-.^ ^^ (specify for each type of survey) Aircraft..^H ASTAR 350-D Helicopter Sensor aitin.hp Mag; 5 metres EM; 39 metres Navigation and flight path recovery m^thnh Position of aircraft constantly monitored digitally using a mini-ranger radar positioning system. ^_^ ^^^^ Aircraft altit..h P 70 metres Line spaf-in g 00 metres Miles flown over total area 350 miles Over claims nnly miles

13 5P8373 "ibj7 l, P l P p l p l 19 HO y l IO&I , f.8l '58360 Evelyn Twp. 58S OJ0?f /73 I5IW/ 58*015/091 THE TOWNSHIP OF MATHESON DISTRICT OF COCHRANE PORCUPINE MINING DIVISION SCALE 1-INCH' 0 CHAINS Q. i o X f O 65* l 3C*S67 CO. O i r 33 '3S P l l 503U3I ' , i l J ^ 3S30 ' 3338 P ' C S66 (O BOB563 " - -f ~- P j P l ) (.y l i l L) 10685, (i; l Q ' P! P J1 9 l 13JJ IJ08557 P l 58336( M G f O ve l p F "f P H^8 l 5 a* 79 Q. O E CD LEGEND PATENTED LAND CROWN LAND SALE LEASES LOCATED LAND LICENSE OF OCCUPATION MINING RIGHTS ONLY SURFACE RIGHTS ONLY ROADS IMPROVED ROADS KING'S HIGHWAYS RAILWAYS POWER LINES MARSH OR MUSKEG MINES NOTES Reserve Flooding Rights to 903' Contour to M E P C on Frederick House River 00 Surface rights reservation around all lakes t* rivers GMI37, 651)1 This township lies within the Municipality of CITY of TIMMINS 080 I0Z8I HFSERVATICNS JOB (.its S659'BeS (00 S900I 5900^ f i P, P 8971 ' ~ i6iso SAND AND GRAVEL ((, Q lj \m Y l l HMIT (o,) i/i ri R r i ;, i Ri CKVE lilt M f)8 UAIL 01 1 jdy Twp i.,.1 N i.mi li l t \(,i (f( S R ON ip VI-97 MINISTRY OF NVfURAl RESOURCES a SdJB MATHFSON 00

14 CONTOUR 0 gommas IOO gammas INTERVALS A -In VE M s e phase amplitude (ppm RESPONSE - conductivity in * mhos thicknns Z' - * FLIGHT A LTITUDE TERRAIN MAGNETIC KIDD 70 METRES ABOVE DEPRESSION CREEK MINES Exploration Division MATHESON AIRBORNE LTD. Timmins.ONTARIO TOWNSHIP MAGNETICS a ELECTROMAGNETICS SCALE Drown: DEL 15,80 Project N 0 ' 8 Data : Gasleiger Date - 1 0/11/8 AiasWiaS MATHESON

Toronto, Ontario November 16, This report may not be reproduced, in whole or in part, without the written permission of Derry, Michener S Booth.

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