t y RECEIVED This report is concerned with the results of the electromagnetic survey as applied to the following claims: l K to K

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1 t y 53F*4NWei HERONRY LAKE 010 HUDSON BAY EXPLORATION AND DEVELOPMENT COMPANY LIMITED ELECTROMAGNETIC SURVEY OF GROUP "N" EAGLE PROJECT - KAKAGI BLOCK KENORA MINING DIVISION - ONTARIO RECEIVED PROJECTS UNIT 1. INTRODUCTION During the period a ground electromagnetic survey was conducted over Group "N" in the Kakagi Block, Ontario, in order to detect electrically conductive zones. This claim group is predominantly underlain by Archean felsic metavolcanics with some intercalated met a sediment s. Mafic intrusives are present along the entire length of the western boundary of the group. While the strike of the volcanics is approximately north -south, faults crossing the central portion of the group strike to the southeast. This report is concerned with the results of the electromagnetic survey as applied to the following claims: l K to K LOCATION AND ACCESSIBILITY This 10-claim group is located on the north shore of Kakagi Lake about 10 miles northeast of Nestor Falls, Ontario. The claims are readily accessible by boat, plane, or ski-doo from Highway PREVIOUS WORK To the best of the writer's knowledge.,flo previous surveys or diamond drilling have been done on the property.

2 - 2 - An ^LjJUQJiAfiiMflfifidUffiiLa^^ survey by this coni" pany in ^ff7? prompted the present ground electromagnetic survey. 4. SURVEY METHODS Baselines were cut parallel to the strike of the formations. At 300-foot intervals, picket]lines were cut at right angles to these baselines. The GEONICS EM-17 instrument was used in the horizontal loop mode with a 300-foot separation between the transmitting and receiving coils. Readings were taken at 100-foot intervals along the lines except that in ano malous areas the readings were taken every 50 feet. The instrument operates on a transmitting frequency of 1600 Hz at a power output of 2.5 watts. In this type of survey, both the in-phase and out-of-phase components of the sec condary field are measured and are recorded as percentages of the primary field. The readings for both components are plotted along the survey lines shown on the accompanying map, and profiles are drawn. A conductor will produce a curve in both pro files which goes from positive through zero to negative and back to positive again. The ratio between the ampli tudes of the negative parts of the curves for the two components is a measure of the conductivity. A good con ductor, such as a pyritic sulphide body, will cause a greater amplitude in the in-phase profile than in the outof-phase profile. The opposite is true for a poor conductor. 5. RESULTS AND RECOMMENDATIONS The results of the survey, in the form of readings and profiles are shown on the accompanying drawing No. 427 at a scale of l inch to 400 feet. Seven anomalies, with strike lengths varying from 300 to 2500 feet, were located. All but one of these anomalies show good profile amplitude and fair to good in-phase to out-of-phase ratios. This indicative of good conductivity,and a probable bedrock source. The anomalies

3 - 3 - on the eastern side of the group fall in felsic metavolcanics while the two western anomalies appear to coincide with the intrusive contact. Faulting does not seem to have had an effect on the length or continuity of the anomalies. Geological mapping is recommended to deter mine which of the anomalies warrant further investigation by diamond drilling. The writer is registered as a professional engineer in the Province of Ontario; and personally supervised the electromagnetic survey of Group "N". y* r ;vy : 7 ry July 7, R. O. MacTavsih, P. Eng. Senior Geologist

4 Ministry of Natural Resources File. Ontario 2.,852 FACTS SHOWJN ntivu * ^n~.., ^ 300 TECHNICAL REPORT MUST CONTAIN INTERPRETATION, CQIMyLuaiONS ETC. JUL 9 PROJECTS UNIT Type of Survey(s). Ground electromagnetic Township or Area. Herony Lake M-2475 Claim Holder(s) Hudson Bay Exploration and Development Company Limited Survey Company Prospecting Geophysics Limited Author of Report R. O. MacTavish Address of Authm-52-2 Thorncliffe Pk.Dr..Toronto.Ont. Covering Dates of Survey.. Total Miles of Line Cut Jan.20. to March (linecutting to office) LU6 MINING CLAIMS TRAVERSED List numerically...jr... (prefix)...k,,.,..., (number) SPECIAL PROVISIONS CREDITS REQUESTED ENTER 40 days (includes line cutting) for first survey. ENTER 20 days for each additional survey using same grid. Geophysical Electromagnetic Magnetometer_ Radiometric Other Geological. Geochemical. K l AIRBORNE CREDITS (Special provision credits do not apply to airborne surveys) Magnetometer..Electromagnetic., Radiometric (enter days per claim) DATF.- July SIGNATURE:. Author of Rfport'or Agent Z,D Res. Geol...Qualifications. Previous Surveys File No. Type Date Claim Holder ^""f TOTAL CLAIMS-

5 GEOPHYSICAL TECHNICAL DATA GROUND SURVEYS - If more than one survey, specify data for each type of survey Number of Stations. Station interval Profile scale - Contour interval feet or 50 feet.number of Readings.Line spacing feet u o Instrument. Accuracy Scale constant. Diurnal correction method. Base Station check-in interval (hours). Base Station location and value - U KH H M ^ S s i w Instrument Coil configuration Coil separation Accuracy ^ Method: Frequency GEONICS EM-17 Cn-planar, Horizontal Lonp 300 feet 12L CI Fixed transmitter 1600 Hz d Shoot back In line CH Parallel line (specify V.L.F. station) Parameters measured i n-phase and out-of-phase components of secondary field Instrument Scale constant Corrections made. \ O Base station value and location. Elevation accuracy. Z 2 H *t! N t* I CL, Q (i Q Z H- ^ H ^K- 4 W i i W (4 Instrument ^ Method D Time Domain Parameters On time ^ ^ Off time ^-^ Delay time Integration time. Power. Electrode array Electrode spacing. Type of electrode [~~ Frequency Domain _ Frequency Range.^ ^

6 * lx?i0^ l^^^ijiwqiij^ i :^^ : -'^M^^ ^liw^-f 10^^ ^^^.r^'a{'-'-'.... ^ :'^:y^-,:^:^ - i^-^hi:--:--r',:^.:^l )^;X"" v '' ;"""''"; ' '"'"'"' ^^V-^"'-;-.-.-/:.-'. -,-:.'-. ''. y,n, -:;;".:.'-:-: ;.v;:.'",; r '-:-;^ - ;;;"^'.,;-v: -- :^.---" ; ''' -v^v^v-; ;'... v:'i4f?y.te*^^^^: t :.^.^^-^ '^** w.;;.-,v. : ;^^ V,v.*-.^"'.'- -,;- ".. r ; - ' ",'i-.. ^'. -.-./' - - : - ^ -: f.-;~...:;--'?'i. s,:-';.-*:, :-f,,',\s t-.m-z;-'-?-~-'- /^ v: 'fli '" ;''i*'*.--'" f-*^5.'i"'?**:...i^.'- :.:^i^.- v - ' '- ' : -- f:'' - --? -' ;*''--;:.:^-:-' -:.^-- v..: - -.v-.,....,...^ ^,-.-, ;.-:...:,- --..,;... j -.,.-. ;^v--;-. V,! ^ft. Vy^'^^-v^'^:^^/.^^-;.^/^ i.^^^y^^rrr-'-.v:.^'-.^ J^^;^^^v;;^-^;---^^^^-V:';^^tf^A:^-;^V-^^ '^^-'' ^^ V-.'"i..-",!"-u"\.:'K-" : '.''V.^' 1 ' - : ".'l., ;.'-,- '. "..' '..-.-."-: -' '

7 AREA OF Young Bay HERONRY LAKE DISTRICT OF KENORA A, X±T^7 KENORA - MINING DIVISION SCALE: 1-INCH 4O CHAINS LEGEND PHILLIPS TWP;.- FOR STATJJS R EFER TO TWR PtA"h C ro *.' Lake M a k a g f PATENTED L AND CROWN LAND SALE LEASES LOCATED LICENSE LAND OF OCCUPATION d L a /r e. ^.^. **,i l Scr^f _,-..L MINING RIGHTS ONLY SURFACE RIGHTS ONLY ROADS IMPROVED ROADS KING'S' H IGHWAYS RAILWAYS POWER LINES MAF&H OR MUSKEG MINES NOTES i. 400 Reservt around all lakes 8 rivers to Dept. of Lands ft Forests. SABASKONG BAY GODSON TWR FOR STATUS REFER TO TWP PLAN. M-1982 S AB A SK ON G Kokabikitch i w a n L o d s NATIONAL TOPOGRAPHIC SERIES 52 F 4 PLAN NO. M-2475 MINISTRY OF NATURAL RESOURCES SURVEYS AND MAPPING BRANCH zsx -- --

8 TYPE OF WORK U^ M V 7* f P s i.\ r^ i i v. S CLIENT HUDSON BAY EXPLORATION ^ DEVELOPMEN COMFMNY LIWiTED PROJECT EAGLE PROJECT-KAKAGI BLOCK - GROUP 'N PROSPECTING G EOPHYSICS LT D. f- AREA HERONRY LAKE, ONTARIO 427 '* N fc 5.? - /"X * o...9^^g^ff^ffr4y^y^? o o j/ **9 X.*** r*' 404^ f IT^o^l -r /N ij^"^^^. -rv., ^^^ r.o-.r^- ^^ -v-^r^^ ^ *f -r 8''r-^-^^-rW i L.54N L.51N L48N Xz'*^fr~SR O '^.-rt- """O Q '*i"" v yj'*' IO -4/0 rt T O O O TJ1 L.45N? ^-^7T ^V? T "T *7 1 L42N ^04638 ^ ^^^^ -' ^ L.39N.-HJ...C" 1 X* 1 "rt-v-^-h... fflxt"^^ K 40f64a **"*fl*5"1''^: Vis*' W^'f^ S K 4 04 L.9N L.6N U.3N LINED d) c O) tff a m LEGEND MEASUREMENT STATIONS ALONG PICKET LINES ELECTROMAGNETIC READINGS - In PhOM Compomnt ELECTROMAGNETIC R EADINGS - OuT of PhOM Compongnt PROFILE-In Phoa* Gompor^nt ( Scolt!"*40%) PROFILE-Out of Phow Component i Soote! <l *40%) COIL SEPARATION FMf INSTRUMENT- GEONICS E M-17 ELECTRICAL CONDUCTOR t * X LOCATION TAG CLAIM GROUP 53FB4NWB HERONRY LAKE 210

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