42A88SE9en 2.36H2 BENOIT 010 MINING IMW* **-' r REPORT ON GEOPHYSICAL SURVEYS ON PROPERTY OF GOLIATH MINES LTD. BENOIT TOVINSHIP, ONTARIO L J

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42A88SE9en 2.36H2 BENOIT 010 MINING IMW* **-' r REPORT ON GEOPHYSICAL SURVEYS ON PROPERTY OF GOLIATH MINES LTD. BENOIT TOVINSHIP, ONTARIO ~l L J

PROSPECTING GEOPHYSICS LTD. REPORT GEOPHYSICAL SURVEYS ON PROPERTY OF GOLIATH MINES LT17. BENOIT TOWNSHIP, ONTARIO INTRODUCTION Goliath Mines Ltd. holds a 320 acre gold-bearing property in Benoit Tovmship, Kirkland Lake Gold Mining Area, Ontario. Previous v;ork has largely consisted of underground development and sampling of a gold-bearing zone of quartz and schist. Apparently, no surface exploration has been carried out on the property for lateral extensions on the gold-bearing zone or for possible parallel structures. As a result, geophysical surveys, consisting of V.L.F. (very low frequency) electromagnetic and magnetic surveys, have been completed over the property, prior to a diamond drilling programme. The follovung report and accompanying maps describe the results of the surveys. PROPERTY The property includes eight (S) contiguous claims in Lots 9 and 10 of the south half of Concession II, Benoit Tovmship, Ontario. The claims are registered as follov/s: L511463 L5H469 L5H467

PROSPECTING GEOPHYSICS LTD. - 2 - PROPERTY (cont'd) L57H63 L545707 L545710 L5457H L545712 The property is readily accessible by road as Highway 11 is situated along the west boundary. GEOLOGY The geology of the area is described by H. L. Lovell, 1971, in Geological Report 92 by The Ontario Department of Mines and Northern Affairs. The rocks in the area are predominantly volcanic, interbedded with some fine-grained sediments and tuff. The dominant intrusives in the area range from mafic to ultramafic rocks. The major fold in the area is a syncline, the axis of v;hich plunges from the northern part of Black Township, southeastward across Benoit Township. The volcanics have been tightly folded along the synclinal axis and the regional trend of the volcanic assemblage follows the northwest strike of the axis. However, locally, at the axis of the fold, they may strike northerly. Most shear zones of particular significance in the search for gold, strike north to northwest. On the Goliath

PROSPECTING GEOPHYSICS LTD. GEOLOGY (Cont'd) property, a gold-bearing zone, consisting of quartz and chlorite schist, has been partially developed underground by previous owners. This was in the period 1917 to 1920 with some additional sampling in 1936 when the workings were dev:atered. On the basis of this latter sampling, which included the milling of a 110 ton bulk sample, H. F. Knutson, Mine Manager, calculated an ore reserve of 97,963 tons grading 0.423 oz. gold per ton. SURVEY KETHODS AND INSTRUMENT DATA The geophysical surveys were carried out over a network of east-west lines at 300 foot intervals as shown on the accompanying maps. The equipment used in the V.L.F. electromagnetic survey was the Geonics E.M. - l6 system. The V.L.F. method uses the radiation from powerful military radio transmitters at low frequencies as primary signals as opposed to portable transmitters in the conventional E.II. methods. The instru ment hac tv:o receiving coils and the parameters measured are: (1) The vertical in-phase component. (2) The vertical out-of-phase component. ( quadrature coraponent) The interpretation of the results uses the relative measurements cf these two parameters and it is possible to outline such poor conductors as sheared contacts, breccia zones, faults, and alteration zones, as well as the good

PROSPECTING GEOPHYSICS LTD, SURVEY I-:STHODS AHD INSTRUMENT DATA (cont'd) sulphide conductors. Because V.L.F. anomalies are produced by a wide range of geological affects, profiles tend to show a complex "clattered" pattern and additional assistance is required to distinguish trends. By the use of the Fraser method of filtering tilt angle profiles, the readings are converted into contourable data and it is that data that are plotted on the accompanying map No. 1. The magnetic survey v:as carried out over the same net work of lines using an I1F - 2 Fluxgate magnetometer. The magnetometer measures the vertical component of the earth's magnetic field. Readings were taken at 100 foot intervals with some detail readings at 50 foot intervals. These are plotted as gammas on a separate map No. 2 after correction for diurnal variation. All conductor ax6s have been plotted on the magnetic map to aid in the interpretation. RESULTS OF THE GEOPHYSICAL SURVEYS A. El e c t r orna gn e t ic Surve3''; The results of the electromagnetic survey are shown on r.ap ITo. 1. An examination of the map shows a number of conductive zones with a general north to northwest strike. The major conductors are lettered A, B, C, etc., for reference purposes and are described below: Zone "A" is a north striking conductor that is caused by the power line along Highway 11.

PROSPECTING GEOPHYSICS LTD. -5- Zone "B" is likevd.se a surficial conductor that represents the Trans-Canada Pipe Line. Zone "C" is a northwest trending conductor v,rith an apparent dip to the west. The zone has a length of approximately 1,300 feet and is located about 300 feet v.'est of the shaft which was put down to develop the gold-bearing zone. The conductor, nore or less, parallels the river but continues northwards beyond the bend in the river where there appears to be 3or;-e faulting. This zone may well represent a shear zone and could be related to the gold-bearing zone developed underground. Zone "D" is a fairly strong north trending conductor situated some 700 feet east of the shaft. It has a length of approximately 1,600 feet but there is a distinct possibility that Zone "E^" is a faulted extension to the north. There is a hydro line trending northwest across these zones which may exaggerate sone of the readings but, there seems little doubt that they represent conductive z ones i n the underlying rocks. The conductivity of the zone is within the range of a shear zone. Zone "F" rr.ay well be the northerly extension of "C" zone and the change in trend nay be due to the influence of the hydro line on line 27M.

PROSPECTING GEOPHYSICS LTD. Zone "G" is a v.'eal: northwest trending conductor v:hich has its strongest portion at the south boundary of the property v.'hcre it continues to the south. B* Magnet i c Survey ; An examination of nap!!o. 2 with the magnetic survey results, shows a well-defined northv:est trending anomaly in the western half of the property. The readings in this portion, range from 1,000 to over 5^000 gammas as compared to 700 to 1,000 gammas in the eastern portion of the property. There seems little doubt that the anomaly represents a different rock formation, probably a more basic volcanic formation or possibly an intrusive. The eastern portion represents r.ore felsic volcanics such as rhyolite interbedded vat h tuffs. The major conductive cones, "C", "D", "E" and "F" are within the felsic volcanic assemblage, whereas "G" zone is within the magnetic anomaly near the contact. The conductor appears to parallel the contact. '!3 A::D RS The geophysical surveys outlined several conductive zones in the proximity of the known gold-bearing zone developed underground. One of these conductors referred to as "C" zone, may possibly be related to the gold-bearing zone.

PROSPECTING GEOPHYSICS LTD. - 7 - All of these zones show conductivity within the range of shear zones and thus warrant further investigation. The results should be closely correlated with all information available on the known gold-bearing zone, prior to a drilling programme. This could aid in providing priorities for drilling and such a programme should also include some holes to investigate the depth extension of the known gold-bearing zone, Respectfully submitted, PROSPECTING GEOPHYSICS LTD, Montreal, Quebec November 30, 196*0 H. *3. BERi ENG.

File. GEOPHYSICAL - GEOD TECHNICAL D, TO BE ATTACHED AS AN API FACTS SHOWN HERE NEED TECHNICAL REPORT MUST CONTAIN Type of s.irvpy Electromagnetic and Magnetic i i a. 3642 BENOIT Q00 0 riaim hnihpr( e ) D. McKinnon A,,thnmf Rppnrt H. J. Bcrgniann, P. Eng. AdHi-ps"; 351# Vendome Avenue, Montreal, Que. r.ov,*rj"g nafs "f Rurv-y October is-november 30, 1980 (linccutting to office) Tntal Miles nf Line nit 10.5 SPECIAL PROVISIONS DAYS CREDITS REQUESTED r.^physkal per claim 40 Electromagnetic,.. ENTER 40 days (includes 20 line cutting) for first -Magnetometer } " ENTER 20 days for each., -Ol hrr additional survey using Gmlnmnl., e same grid. npnrhp TH'~al..,.,. MINING CLAIMS TRAVERSED List numerically (prefix) (number) L ^1146? L ^11467 L 571463 L 545707 L 545710 L 545711 L ^45712 AIRBORNF1 CREDITS (Special provision credits do not apply to airborne surveys) Magnetometer.,.. Electromagnet ic Rndinmptrir {enter days per claim) 1 PROJECTS DATR. NOV. 30, 19^0 sir, NATIT Rp.....;^jf^z22^5rf^*^isHS. yy Autho^f Report SECTION RPR Geol.. Ou^lifiratinns f. Prpvinps Surveys ^ Checked by.....,,,... date,,,,,, O V J B }s' D nf,ot.onical.hranch Sb L b^^^apprnved by...date r.fnrnr.irat. RUANnn Approved bv Hatp. TOT A L CLAIMS d

GEOPHYSICAL TECHNICAL DATA Electromagnetic-522 Number of Stations 522 - ^ Number of Readings Magnetic -522 Station interval -. ^^ 100.! T.. 300 Line spacing ^^.--- ^--. -... Profile scale or Contour infprvak Electromagnetic 10; Mflgnp.t.-i n 2QD gammas (specify for each type of survey) MAGNETIC Instrument Fluxgate MF - 2 Accuracy - Scale constant - 5 gammas Diurnal correction mpthnd Base Stations Base station location See map ELECTROMAGNETIC Instrument Geonics EM - 3.6 Coil configuration Coil separation - ^.^^^ - Accuracy ~ -*-/0 Method: E3 Fixed transmitter O Shoot back Q Inline d Parallel line Frequency Cutler, Maine (specify V.L.F. station) Parameters measured In-phasc and quadrature GRAVITY Instrument. Scale constant. Corrections made. Base station value and location. Elevation accuracy ^^ ^-.^ INDUCED POLARIZATION RESISTIVITY Instrument.- ^.- ^. Time domain Frequency domain. Frequency-. - - --.-....-... Range-^ Power.^.^ - - - -.^ --- ^ - Electrode array.-. - - - - ^ Electrode spacing- ^ - - -.^ - -.... -- - ^^^ - ^-^^ Type of electrode ^ -.-.. -.-- -^ -.

Cook Twp. THE TOWNSHIP OF 545649 rs45650 27040 L " 26150 T T- - 539800 1539799 -... L I.- L BENOIT DISTRICT OF COCHRANE LARDER LAKE MINING DIVISION SCALE-- 1-INCH* 40 CHAINS LEGEND 54568/e h -. A 578317.578318 524056 524057 Q. I- o.q CD 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 PATENTED S.R.O. CANCELLED C*L*''^,,^,- c. L MTL 571487 lw71439 57I4BB6 7571488 578201, 578200 MAR 2 O 1981 Minislry of Natural toscurcss TORONTO 400* S urface rights re&ervafion around all lake* rivers. 7117 7118 Gravel Reserve Shown Thus; ^ --- - f T" 578965 1578964 580993 158O992 L-fak LI L i 55OO26 55O028 ~ T ". L 5500271550029 550030 /550034 550031 550035 4286 544795 4287 544796 1514797 57B28 532640 153 2638 550032 550036 5^8284 578283 i- 53264I l.532639 400* frontage on Butiet Lake withdrawn from disposition for proposed s ummer resort development. File I64586 Areas withdrawn from staking under Section 43 of the Mining Act ( o s o 570 j Order?io F ile Date Disposition (4Jl) W. 33/74 98638 12/6/74 S.R.O. 12 B.D. 42MBSEMI1 2.3642 BENOIT S00 Maisonville Twp. PLAN NO.-M.326 ONTARIO MINISTRY OF NATURAL RESOURCES bukvtvs AND MAPPING BRANCH

N L.3 N L. 0*OO BU'L DiNGS ROAD BASELI NE LEGEND MEASURMENT STATIONS ALONG PICKET LINES -o FRASER REDUCTION VALUES USED CONTOUR INTERVAL! - l O ELECTRICAL CONDUCTOR TYPE OF WORK FM -16 ELECTROMAGNET l C SURVEY 42A0BSE98J) 2.3642 BENOIT S10 CLAIM MAP Scale - l ' r 40 chains sro ( surface rights on l j- } (P) p atented land INSTRUMENT USED! GEONICS EM- 16 CLAIM LINE l l l l - 20 CLAIM POST TO - "20 TO..-4Q - 40 PROJECT GOLIATH MINES LTD. PROSPECTING^ GEOPHYSICS LTD. AREA SCALE l INCH TO 2 0 FEET DRAWN BY DATE \ ONT. MAP OR SHEET NO.

base. 1NE L.27 N LEGEND MEASUREMENT STATIONS ALONG PICKET LINES 466 RELATIVE VALUES OF THE VERTICAL COMPONENT FORCE OF THE EARTH'S MAGNETIC RELD (In Gammas) MAGNETIC CONTOURS TYPE OF WORK MAGNETOMETER SURVEY BASE STATION ELECTRICAL CONDUCTOR CLIENT GOLIATH MINES LTD. L 2.3642 BENOIT eeo C L AIM.. MAP. J OVER TO TO GAMMAS GAMMAS GAMMAS PROJECT PROSPECTING G EOPHYSICS LTD. ^ AREA I T W.. ON SCALE l INCH TO 2 FEET NC, DRAWN BY MAP OR S HEET NO. V