MAGNETOMETER SURVEY Frere Lake Property Hudson Township Harley Walton August 1997

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MAGNETOMETER SURVEY Frere Lake Property Hudson Township Harley Walton August 1997 E c RECEIVED SEP 1 8 1997! 31M12SW0025 2.17740 HUDSON 010 ieoscience ASSESSMENT Meegwich Consultants Inc. P.O. Box 482, Temagami, Ontario POH 2HO Tel (705) 569-2904 Fax. (705) 569-2817

Frere Lake Property Page 2 TABLE OF CONTENTS l.0 Introduction 2.0 Property 3.0 Location and Access 4.0 Geologic Setting 5.0 Magnetometer Survey 5.1 Instrumentation 5.2 Survey Results 6.0 Conclusions and Recommendations LIST OF FIGURES Figure l Figure 2 Figure 3 Claim Map Geology Map Location Map LIST OF MAPS Magnetometer contour map 31M12SW00252 17740 HUDSON 0 10C Meegwich Consultants Inc. P.O. Box 482, Temagami, Ontario POH 2HO Tel (705) 569-2904 Fax. (705) 569-2817

Frere Lake Property Page 3 1.0 INTRODUCTION:, f 7 In April of 1997, a program of grid establishment and magnetometer surveying was carried out on the Frere Lake Property held by Harley Walton New Liskeard, Ontario POJ 1PO. P.O. Box 640, 1438 Lakeshore Road, The work was supervised, executed and reported on by David Laronde (Meegwich Inc.) of 407 Lakeshore Drive, P.O. Box 482, Temagami, Ontario POH 2HO. 2.0 PROPERTY DESCRIPTION; The property consists of one water claim 1223319 that covers the waters of Frere Lake located in Concession II North Vi of lots 9 and 10 of Hudson Twp. 3.0 LOCATION AND ACCESS; The property is situated 16 km due east of the town of New Liskeard, Ontario some 160 km north of North Bay. The property is accessible by car on the Twin Lakes road (5 km) which departs Hwy 65 at Hillview. Hwy 65 joins major Hwy 11 some 10 km to the east. Meegwich Consultants Inc. P.O. Box 482, Temagami, Ontario POH 2HO Td. (705) 569-2904 Fax. (705) 569-2817

Frere Lake Property Page 4 40 GEOLOGIC SETTING: The property is underlain primarily by middle Precambrian quartz diabase (mafic intrusive) and Huronian sediments. The diabase can be seen in outcrop on the south side of the lake while the sediment geology is covered with sand and gravel overburden. 5.0 MAGNETOMETER SURVEY: A total of 4.5 km was surveyed on a grid with 25 meter stations picketed on lines spaced at varying intervals. Readings were taken at 2.5 meter intervals (1800 readings) but were plotted at 6.25 meter stations (720 readings) to facilitate plotting. 5.1 Instrumentation; Gem Systems GSM-19 overhauser magnetometers ser. No. 58479, 67559 were used for the survey in the "walking" mode and base station mode. These instruments are state of the art micro-processor based and measure the earth's total magnetic field to an accuracy of l/l 00th of a gamma. 5.2 Survey Results: contoured plans at 1:2500 scale. The results are presented on Meegwich Consultants Inc. P.O. Box 482, Temagami, Ontario POH 2HO Tel (705) 569-2904 Fax. (705) 569-2817

Frere Lake Property Page 5 Overall the magnetic response is relatively uniform with some weak highs to the north. Over the lake area a massive low is apparent at the south boundary. From here a gradual increase in intensity of 400 gammas is noted at the north side of the lake. There are 2 isolated lows in the north west corner of the grid that are probably caused by cultural infrastructure (660 W at 160 N and 560 W at 250 N). Massive highs can be seen further to the north away from the lake at the north limits of the grid. One such high is centred at 325 N at 660 W. 6.0 CONCLUSIONS AND RECOMMENDATIONS; It seems the east-west trend across the lake represents a linear contact between the mafic intrusive (diabase) to the south and Huronian sediments to the north. In the sediments there are some irregularities that show as weak highs. These areas may be the result of detrital magnetite concentrations within the sediments. The massive low at the south limits probably outline the quartz diabase. The contact is along the south shore with the diabase in outcrop. Meegwich Consultants Inc. P.O. Box 482, Temagami, Ontario POH 2HO Tel (70S) 569-2904 Fax. (705) 569-2817

Frere Lake Property Page 6 Lake bottom sediment sampling at the south shore of Frere Lake is recommended as a follow-up method. The closer to the bedrock of the sediments samples can be taken, the better. Respectfully submitted, David Laronde Geology Engineering Technologist Meegwich Consultants Inc. P.O. Box 482, Temagami, Ontario POH 2HO Tel (70S) 569-2904 Fax. (705) 569-2817

Frere Lake Property Page 7 References 1972 Ontario Division of Mines Map P.786 Geological Series Geology of Hudson Twp. Meegwich Consultants Inc. P.O. Box 482, Temagami, Ontario POH 2HO TeL (705) 569-2904 Fax. (705) 569-2817

Frere Lake Property Page 8 CERTIFICATE OF AUTHOR I, David Laronde of the town of Temagami, Ontario hereby certify: 1. That I am a consulting technologist and have been engaged in my profession for the past 16 years. 2. That I am a graduate of Cambrian College in Sudbury with a diploma in Geology Engineering Technology 1979. 3. That my knowledge of the property described herein was acquired by field work and documentation. Dated at Temagami this 19th day of August 1997. David Laronde Meegwich Consultants Inc. P.O. Box 482, Temagami, Ontario POH 2HO Tel (70S) 569-2904 Fax. (705) 569-2817

CLAIM MAP FIGURE

GEOLOGY MAP.11 FIG 2

NEW LISKEARD VI. : l LOCATION MAP

Ontario \j\ luai iu and MinM Declaration of Assessment Work Performed on Mining Land Mining Act, Subsection 65(2) and 66(3), R.8.O. 1090 Personal information co Mining Act, the informati Questions about this c 933 Ramsay Lake Roac 31M12SW0025 2.17740 HUDSON 900 5(3) of the Mining Act. Under section 8 of the k and correspond with (he mining land holder, rthern Development and Mines, 6th Floor, PROVINCIAL RECORDING OFFICE- C', CEv'RY R E C E t Instructions: - For work performed on Crown Lands before recording a claim, u e forrruqajo. Q - Please type or print in ink. ocr ' 8 AJL P.M. 1. Recorded holders) (Attach a list if necessary) UimWUIBIl 2 3 4 Sj6 Name s CHent Number ^. /Zf/tp/tQ&P L*/ rt *~~~f~z) s\r CtsS 2- G t f^y f Address Name Address ^^ /i/^ t-;x*^^r* RE^EjyjzD ^' S EP 1^997 GEOSCIENCE ASSESSMENT ftcbinc * rr Q Telephone Number,.. S g*ofi 7^^ -~ -S"VZ.J* Fax Number Telephone Number Fax Number t 2. Type of work performed: Check ( s ) and report on only ONE of the following groups for this declaration. Work Type Geotechnical: prospecting, surveys, assays and work under section 18 (regs) (jx-aj?^~y-s *' C *k. f -*~ #^*S jr, ^5 7 Dates Work, Performed From /f l "T V/ Day j Month Year Day Month Yew Global Positioning System Data (if available) Township/Area //c/^-tc^^ T'K^ M or G-Plan Number D -~*X"7 Physical: drilling, stripping, trenching and associated assays Commodity Total S Value of Work Claimed Office Use Rehabilitation NTS Reference ^ 'f #1 /f "2 cc rt "" ~"" Mining Division ^^ f*f1', r rtt.. f Resident Geologist District Please remember to: - obtain a work permit from the Ministry of Natural Resources as required; - provide proper notice to surface rights holders before starting work; - complete and attach a Statement of Costs, form 0212; - provide a map showing contiguous mining lands that are linked for assigning work; - include two copies of your technical report. ' 3. Person or companies who prepared the technical report (Attach a list if necessary) Name Telephone Number Address s /^-Z?. T^icj* cr t* 2 rfst*g'i'*t ir **- f r Name Address. f^ Q.i77 "- 0 Name f^ * J. w Address Fax Number Telephone Number Fax Number Telephone Number Fax Number 4. Certification by Recorded Holder or Agent 1, r~''**fl G''@ (*S'4*-TO'J do hereby certify that 1 have personal knowledoe of the facts set (Print Name) forth in this Declaration of Assessment Work having caused the work to be performed or witnessed the same during or after its completion and, to the best of my knowledge, the annexed report is true. Signature of Reconjed Holder or Agent Agent's Address Telephone Number Date f Fax Number

6. -Work to be recorded and distributed. the mining land where work was performed, must accompany this form. Work can only be assigned to claims that are contiguous (adjoining) to at the time Vvork was performed. A map showing the continuous ink - '.T :v**\ Mining Claim Number. Or if work was done on other eligible mining land, show in this column the location number Indicated on the claim map. Number of Claim Units. For other mining land, list hectares. Value of work performed on this claim or other mining land. Value of work applied to this claim. Value of work assigned to other mining claims. Bank. Value of work to be distributed at a future date. eg TB 7827 16 ha S26, 825 N/A S24,000 S2.825 eg 1234567 12 0 924,000 0 0 *8 1 1234568 /ZZ33/J 2 S VA/j S 8, 892 /ST*.**- S 4,000 '/T^m* 0 ;: -' i - S4.892 ' 1 2 * 3 4, "- - 5 -- ' " ' " " "~ T " 6 7 8 9 10 11 12 13 14 15 Column Totals l, L 1 *- T c ^, do hereby certify that the above work credits are eligible under (Print Full Name) subsection 7 (1) of the Assessment Work Regulation 6/96 for assignment to contiguous claims or for application to the claim where the work was done. Signature of.recorded Holder or Agent Authorized in Writing Date fc, X 6. Instructions for cutting back credits that are not approved. Some of the credits claimed in this declaration may be cut back. Please check ( s ) in the boxes below to show how you wish to prioritize the deletion of credits: D 1. Credits are to be cut back from the Bank first, followed by option 2 or 3 or 4 as indicated. Q 2. Credits are to be cut back starting with the claims listed last, working backwards; or D 3. Credits are to be cut back equally over all claims listed in this declaration; or D 4. Credits are to be cut back as prioritized on the attached appendix or as follows (describe): Note: If you have not indicated how your credits are to be deleted, credits will be cut back from the Bank first, followed by option number 2 if necessary. For Office Use Only ^ - - Received Stamp Deemed Approved Date Date Notification Sent Date Approved Total Value of Credit Approved Approved for Recording by Mining Recorder (Signature)

Ontario Ministry of Northern Development and Mines Statement of Costs for Assessment Credit Transaction Number (office use) Personal information collected on this form is obtained under the authority of subsection 6(1) of the Assessment Work Regulation 6/96 Under section 8 ot the Mining Act, the information is a public record. This information will be used to review the assessment work and correspond with the mining land holder. Questions about this collection should be directed to the Chief Mining Recorder, Ministry of Northern Development and Mines, 6th Floor, 933 Ramsey Lake Road, Sudbury, Ontario, P3E 6B5. Work Type Units of Work Depending on the type of work, list the number of hours/days worked, metres of drilling, kilo metres of grid line, number of samples, etc. Cost Per Unit of work Total Cost ^,V t*-f*ar;st~~** fl" 7 s X^o /4~ ^tt 0~ /?7a*^* /-,,*,ev"~ SVr*Ky - /^/y~/**^ r**-*/ "7 X~ /fs+y /vt* i T x^^ ~ ' ~? ^-"^4 ^' f ox?*:r**kr f f f r 2^ /*7*r r ',ZjT2 ^P ^f~"~'- ^ CJZ Z^" Associated Costs (e.g. s upplies, mobilization and demobilization). y^*/ ^~ "" v : Transportation Costs. \ f^ t ~~ ^ fir*^*y-2^s C,!-.' GEOSCIENCE ASSESSMENT OFFICE Total Val le of Assessment Work - C'' Calculations of Filing Discounts: 1. Work filed within two years of performance is claimed at IOQ.% of the above Total Value of Assessment Work. 2. If work is filed after two years and up to five years after performance, it can only be claimed at 50 07o of the Total Value of Assessment Work. If this situation applies to your claims, use the calculation below: TOTAL VALUE OF ASSESSMENT WORK x 0.50 = Total S value of worked claimed. Note: - Work older than 5 years is not eligible for credit. - A recorded holder may be required to verify expenditures claimed in this statement of costs within 45 days of a request for verification and/or correction/clarification. If verification and/or correction/clarification is not made, the Minister may reject all or part of the assessment work submitted. Certification verifyin ing costs: f-~7 o, do hereby certify, that the amounts shown are as accurate as may (please print full name) reasonably be determined and the costs were incurred while conducting assessment work on the lands indicated on the accompanying Declaration of Work form as to make this certification. (recorded holder, agent, or state company position with signing authority) am authorized s?*?'' 0212 (02/961

Ontario Ministry of Northern Development r. and Mines December 8,1997 HAROLD G. WALTON P.O. BOX 640 NEW LISKEARD, Ontario POJ-1PO Ministers du Developpement du Nord et des Mines Geoscience Assessment Office 933 Ramsey Lake Road 6th Floor Sudbury, Ontario P3E 6B5 Telephone: (888)415-9846 Fax: (705) 670-5863 Dear Sir or Madam: Submission Number: 2.17740 Subject: Transaction Number(s): Status W9780.00936 Approval We have reviewed your Assessment Work submission with the above noted Transaction Number(s). The attached summary page(s) indicate the results of the review. WE RECOMMEND YOU READ THIS SUMMARY FOR THE DETAILS PERTAINING TO YOUR ASSESSMENT WORK. If the status for a transaction is a 45 Day Notice, the summary will outline the reasons for the notice, and any steps you can take to remedy deficiencies. The 90-day deemed approval provision, subsection 6(7) of the Assessment Work Regulation, will no longer be in effect for assessment work which has received a 45 Day Notice. Please note any revisions must be submitted in DUPLICATE to the Geoscience Assessment Office, by the response date on the summary. If you have any questions regarding this correspondence, please contact Lucille Jerome by e-mail at jeromel2@epo.gov.on.ca or by telephone at (705) 670-5858. Yours sincerely, ORIGINAL SIGNED BY Blair Kite Supervisor, Geoscience Assessment Office Mining Lands Section Correspondence ID: 11640 Copy for: Assessment Library

Work Report Assessment Results Submission Number: 2.17740 Date Correspondence Sent: December 08,1997 AssessorLucille Jerome Transaction Number First Claim Number Township(s) l Area(s) Status Approval Date W9780.00936 1223319 HUDSON Approval December 08, 1997 Section: 14 Geophysical MAG Correspondence to: Resident Geologist Kirkland Lake, ON Recorded Holder(s) and/or Agent(s): HAROLD G. WALTON NEW LISKEARD, Ontario Assessment Files Library Sudbury, ON Page: 1 Correspondence ID: 1 1 640

G) Ontario Ministry of Natural Resources Northern Development and Mine* OJ no INDEX TO LAND 0ISPOSITK*M PLAN G-3432 TOWNSHIP HUDSON M.N.M. ADMINiSTflf/WE DISTRICT TEMAGAMI MlMINAMVISIOII LARDER LAKE UUNTifTUS/REGISTRY DIVISION TIMISKAWSNG Scal*1:MOW 31M12SWD025 2.17740 HUDSON 200 1000 t 11 200* 1000 O ION **v. 7000 aoo* 9000 1000* Contour Interval 10 Metres Boundaiy Towns}-ip. Meridian, Road allowance; surveyed, shorattw. Lot/ ^oncession; surveyed... unsurveyed l- surveyed...... SYMBOLS HW 3M AREAS WITHDRAWN FROM DISPOSITION MRO- Mining Rights Only SRO- Surface lights Only M-f 3- Mining and Surface Rights OrdwNe. PENDM0 AmjCATMN UMXft POJL DM* DtepoaMon FM* Right-of-way; road railway.ulility.. Reservation....... Cliff, Pit. Pile Contour Interpolated....... Approximate....... D* r.cession......... Control point (horizontal)........ 80 c............................. A f looded land.............................,........ r-i-z-is-z-r-i-z-i Mine h bad frame.........................,..................... a Pipeline (above ground)........................... Railway; sir^le track............................... - i -~ double track. S) ATE OF ISSUE DEC O 81997 PROVINCIAL RECORDING OFFICE - SUDBURY C" O O) o H Road; highway, county, township access................. trail, bush............... Shoreline (original)...........,. ^Transmissjon Mne.............. Wooded area................. X-r^^j^ THIS TOWNSHIP FALLS WITHIN THE TEMAGAMI COMPREHENSIVE PLANING AREA. SPECIAL WORKING CCJNDmONS MAY APaY TO EXPLOrV* FOR MORE DETAILS PLEASE CONTACT: DBTWCT MANAGER NQflTMBAYDBTRICT, NATURAL RiSOURCES * DISPOSITION OF CROWN LANDS Paten* i Surface 4 Mininy Rights Surface Rights Only Mining Rights Onty..................... Leat e Surface * Mining Righls....M Surface Hights Only........................................ff Mining Rights Only..............................St Licence of O- -upatio.i...................,.....................t Order-in-Coi 1 icil.....'...'.... OC Cancelled... Reservation... Sand * Gravel. GEOLOGY'Veference-COBALT REsoorraeo, ARCHIVED JULY 28, 1995 ARCHIVED JUNE 6/97 CIRCULATED MARCH 5th 1990 Map base and land disposition drafting by Surveys and Mapping Branch, Ministiy of Natural Resources. e o. :*ao. owen m. (Tron. Conrt, i*.^^ ^ ^ w-? ^ ). ft. M 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 HEREON. NOTICE OF FORESTRY ACTIVITY THIS TOWNSHIP l AREA FALLS WITHIN THE - LATCHFORD MANAGEMENT UNIT AND MAY BE SUBJECT TO FORESTRY OPERATIONS. THE MNR UNIT FORESTER FOR THIS AREA CAN BE CONTACTED AT: pq LAKESHORE DRIVE TEMAGAMI, ONT. POH 2HO 705-549-3622 The disposition of land, locaticr cf l"* 'abi ic an.l parcel -boi'r cicufe* on this index was compiled for administrative put j-c-ses only. CD i OJ ^ OJ

\ N 57000 subtracted from all readings 31M12SW0025 2.17740 HUDSON 210 Frere Lake Property June 1997 Hudson Township MEEGWICH INC. 50 Scale 1:2500 O 50 100 150 (metres) Instrument: GSM-19 Magnetometer Serial # 58479 Sclntrex EDA Omni IV Serial # 228225 Ground Geophysical Surveys Total Field Magnetics Contours Data proevm/ny and Interpretation by: Meegwlch Consultants Inc. NTS 31 M/12 Scale 1:2500