Mineral Exploration Report Koillismaa-Naranka Project (2005-2007) Akkerman Exploration B.V. and Nortec Ventures Inc. joint venture J.H. Akkerman Managing director Akkerman Exploration B.V. Leidschendam, December 2008
CONTENTS Summary of relinquishment Report 1. Project background and rationale 2. Mineral Rights 2.1. Property status 2.2. Land use and Environmental Protection areas 3. Project location and Geological Setting 3.1. Location and access 3.2. Geological Setting 3.3. Exploration History 4. Exploration Activities performed 4.1. Exploration Program 2005 4.2. Exploration Program 2006 4.3. Exploration Program 2007 5. Results 5.1. Data compilation and analyses 5.2. Field reconnaissance 5.3. Litho-geochemistry 5.4. Geophysics; airborne VTEM survey 5.5. Diamond Drilling 5.5.1. Portivaara Block 5.5.2. Naranka Dike 6. Interpretations and conclusions
Attachments I. File with photo s of rock types and field impressions II. Detailed outcrop map and geological map of the Naranka Area (1:20,000 scale) III. Reports by Dr. P. Lamberg on Fertility Analyses carried out in 2005 and 2007 IV. SkyTEM survey Narankavaara and Koillismaa Finland, Data Report by Max Halkjaer, SkyTEM Aps, January 2007 V. Report on processing and analyses of a SkyTEM survey, Koillismaa-Naranka projects, for Akkerman Exploration B.V., March 2007, Condor Consulting Inc. VI. Drill hole database, logs and geochemical results
Figures Fig. 1a: location of Pyhitys Exploration Claims 1-10 (in red) and the claim reservations Valkealetho 1-3 (in blue), relative to the Syöte National Park (cross-hatched area). Fig. 1b: location of Naranka Exploration Claims 1-9 (in red) relative to the Mire Conservation Area (blue cross hatched area) and the Old Forest Growth Protected Area (red striped area). Fig. 2: location map of project areas Portivaara Block and Narankavaara Dike Fig. 3: Geological Map of the Koillismaa-Naranka Complex projected on airborne magnetic map, illustrating location of Western Intrusions (green colors) and Naranka Dike in the East (brown colors). Fig. 4. Location of areas (marked in yellow) covered by the VTEM survey conducted by SkyTEM. Fig. 5a: Map showing mineral intersections in holes drilled by GTK and NAN in the Portivaara Block in and around the Raiskiovaara and Pyhitys licenses granted to Akkerman Exploration B.V. Fig. 5b: Cross Section showing mineral intersections in holes drilled by GTK and NAN in the Portivaara Block in the Musta Area (Raiskiovaara licenses granted to Akkerman Exploration B.V. ) Fig. 6: Ni/MgO ratio showing relatively low nickel in samples from the main dike (red squares) compared to samples from the later peridotite dikes in Naranka NE (blue open circles). Fig. 7: location of samples included in the 2007 follow-up Fertility Test. Note location of target areas Portivaara-E and Pyhitys-S, that were revealed as the areas with highest exploration potential. Fig. 8: Summary of the fertility analyses by target areas in the Western Intrusions. Fig. 9: Thematic map of the OD values by target area, highlighting the Portivaara-E and Pyhitys-S areas as the most prospective. Fig. 10: Summary of the fertility analyses per target area. Fig. 11: Actual survey lines flown over the Portivaara Block (above) and Naranka area (below). Colored part is area including magnetic survey data. Fig. 12: Plate-like conductors in the west portion of the area, in the vicinity of the old Mustavaara mine and infrastructure (picked conductors in black triangles; are of high conductivity in yellow-purple). Fig. 13: Close up of the conductors in the Musta area, relative to topography and geological contours Fig. 14: EM response over the Naranka survey area (AdTau image by Condor)
Fig. 15: Conductivity depth slice for 0-20m above sea level (220-320m below surface) produced by SkyTEM, highlighting local higher conductors in broad low resistive formational anomaly. Fig. 16: location map of the two holes drilled in the Musta area, Portivaara Block. Fig. 17: SkyTEM conductor targeted by hole K07-01 shown on conductivity depth slice and in section. Fig. 18: SkyTEM conductor targeted by hole K07-02 shown on conductivity depth slice and in section. Fig. 19: Size and shape of the near surface conductive area around the Mustavaara tailings area, suggesting possible link with groundwater contamination by chemicals used in the roast-leach process. Fig. 20: Location of Hole K07-03 alt. relative to topography and geological contacts in the Pyhitys area. Fig. 21: Hole K07-03 location versus weak EM anomalies and regional gravity high. Fig. 22: Locations of holes N07-04 and N07-05 on topographic map of the Naranka hill. Fig. 23: Naranka drill holes projected on the map with location of EM anomalies (yellow-red) Fig. 24: Planned borehole trajectories in cross-section showing conductors modeled by SkyTEM
Summary of Relinquishment Report Name of Claims Naranka 1-9 Pyhitys 1-10 Raiskiovaara 1-4 Register Numbers Map Sheets 8094/1-2, 8117/1, 8172/1-4, 8173/1-2 8116/1-4, 8175/1-3, 8176/1-3 8203/1-4 4523 07 3543 06, 3543 09 3543 06, 3543 03 Name of Claimant Municipalities Akkerman Exploration B.V. Kuusamo, Taivalkoski, Posio Reason for claiming Search for magmatic nickel-copper-platinum group sulphides in parts of the Koillismaa -Narankavaara mafic layered complex List of performed exploration - Data compilation and analyses Geological mapping (1:20,000) and reconnaissance with Beep-Mat Lithogeological analyses and modeling fertility analyses Airborne VTEM survey; 1287 line km of flying Scout drilling, 5 diamond drill holes; total 2372 m of drilling; max. depth 671.3m Laboratory studies; geochemical and XRF analyses of drill core. Summary of results Exploration potential for world-class nickel deposit confirmed and model established based on analogies with Jinchuan and Voisey s Bay nickel-copper sulphide deposits. Litho geochemistry revealed highest fertility for two zones in the Portivaara Block (Western Intrusions of the Koillismaa Complex) and apparent nickel depletion in the ultramafic rocks of the Narankavaara Dike. Airborne survey detected a series of plate-like conductors in the vicinity of the old Mustavaara mine and a several deep areas of higher conductance in Narankavaara within an extensive zone of moderate conductivity attributed to serpentinization of peridotite. Drilling of 2 of the priority conductors in the Portivaara Block intersected 6-10m wide intervals of low-grade CuNi-PGE sulphide disseminations in the marginal series near the basal contact, with best grades of 0.9 g/t PGE+Au, 0.41% Cu and 0.33% Ni over a 2m interval. EM anomalies are interpreted to be largely due to cultural effects of the old mining activity, in particular the presence of groundwater with elevated sodium content. Potential mineralization in deeper parts of the Portivaara Block and other portions of the Western Intrusion remains untested. One drill hole in the Pyhitys area, probing the possible connection between the Portivaara Block and the Central Intrusion, failed to intersect any significant copper-nickel mineralization. Drilling of two scout holes in the deep-seated EM targets at Narankavaara, showed that the lower duniteperidotite unit extends uniformly at least 600m in depth and that it does not contain any signs of sulphide mineralization. The local areas of higher conductance are most likely explained by relative changes in the degree of serpentinization of the ultramafic sequence. Attachments and other reports I. II. III. IV. V. File with photo s of rock types and field impressions Detailed outcrop map and geological map of the Naranka Area (1:20,000 scale) Reports by Dr. P. Lamberg on Fertility Analyses carried out in 2005 and 2007 SkyTEM survey Narankavaara and Koillismaa Finland, Data Report by Max Halkjaer, SkyTEM Aps, January 2007 Report on processing and analyses of a SkyTEM survey, Koillismaa-Naranka projects, for Akkerman Exploration B.V., March 2007, Condor Consulting Inc. Reason for relinquishment The joint venture partners Akkerman Exploration B.V. and Nortec Ventures Corp. concluded that no further obvious targets remained to be tested and decided to turn their attention to the Kaukua prospect, where initial drilling of 7 shallow holes in the fall of 2007 revealed ore-grade mineralization over mineable widths. Date: 22-12-2008 Contact information on the writer of the report J.H. Akkerman Managing director Akkerman Exploration B.V. Koekoeklaan 15, 2261EX, Leidschendam, E-mail: j.akkerman@akkermanexploration.com; Tel. +31 70 3278647 www.akkermanexploration.com
1. Project background and rationale The Koillismaa-Naranka nickel-copper-pge project was generated by Akkerman Exploration B.V. as a result of screening nickel exploration opportunities in Finland during 2004. Attention was focused on targets with potential to host world-class nickel deposits containing in excess of 500,000 tons of nickel, together with associated copper and platinum group minerals as possible by-products. Exploration criteria developed by AEBV for this class of nickel deposit and which have been applied during the screening are: very large intrusive systems Proterozoic age, comprising primitive mantle material, emplaced in intra-cratonic rift systems The Koillismaa-Naranka mafic-ultramafic layered complex met these criteria and was believed to offer good exploration potential for magmatic hosted nickel mineralization. Past exploration had been focused primarily on the near-surface parts of the Complex with drill holes generally not exceeding 200m in depth. Potential nickel mineralization along the deeper parts of basal contact and in the footwall of the Complex remained underexplored and was defined as the priority targets for the exploration program to be carried out. This report describes work done and results obtained during a 3-year program from 2005 to 2007 on selected portions of the Complex including the Portivaara Block of the Western Intrusions and the Narankavaara dike in the East. 2. Mineral rights 2.1 Property Status The Koillismaa-Naranka project entailed 23 exploration claims which were all granted in 2006-2007. These include Naranka 1-9, Pyhitys 1-10 and Raiskiovaara 1-4. Specific data for each of these licenses are shown in table below: License Name Number Extend Date of issue Naranka 1 Naranka 2 Naranka 3 Naranka 4 Naranka 5 Naranka 6 Naranka 7 Naranka 8 Naranka 9 Pyhitys 1 8094/1 8094/2 8117/1 8172/1 8172/2 8172/3 8172/4 8173/1 8173/2 8116/1 99.1 100 94.5 97.6 100 99.5 100 94.3 100 100 31.05.2006 31.05.2006 27.09.2006 11.10.2006 27.09.2006 27.09.2006 27.09.2006 27.09.2006 27.09.2006 26.09.2006
Pyhitys 2 Pyhitys 3 Pyhitys 4 Pyhitys 5 Pyhitys 6 Pyhitys 7 Pyhitys 8 Pyhitys 9 Pyhitys 10 Raiskiovaara 1 Raiskiovaara 2 Raiskiovaara 3 Raiskiovaara 4 8116/2 8116/3 8116/4 8174/1 8174/2 8174/3 8175/1 8175/2 8175/3 8203/1 8203/2 8202/3 8203/4 100 100 100 100 100 100 100 100 99.9 99.8 100 100 100 26.09.2006 26.09.2006 26.09.2006 26.09.2006 26.09.2006 26.09.2006 26.09.2006 26.09.2006 26.09.2006 18.04.2007 18.04.2007 18.04.2007 18.04.2007 All of these licenses were issued in the name of Akkerman Exploration B.V. In June 2006, the company signed an option agreement with Nortec Ventures Corp. (NVT), a Canadian company listed on the TSX-V exchange, by which NVT could earn up to a 70% participating interest in the Koillismaa-Naranka mineral rights. Following the completion of the planned work program without meeting the objective of locating magmatic nickel mineralization of sufficient size and grade, all of the above licenses were relinquished on the 15th of March 2008 in a letter to the Ministry of Employment and the Economy. 2.2 Land Use and Environmental Protection Areas There is no active use of the land covered by the Pyhitys claims over the Portivaara block of the Koillismaa Layered Intrusion. A small portion of the exploration claims coincides with the northern margin of the Syöte National Park. The northwestern part of the Naranka claims is used by the forestry industry to cut trees. There are also a few small excavations for the extraction of sand and boulders from the till cover. The southeast part of the claim area overlaps with a MireConservation Area and an Old Forest Growth Protected Area. The location and extend of the protected areas mentioned above is shown on Figures 1a and 1b.
Fig. 1a: location of Pyhitys Exploration Claims 1-10 (in red) and the claim reservations Valkealetho 1-3 (in blue), relative to the Syöte National Park (cross-hatched area). Fig. 1b: location of Naranka Exploration Claims 1-9 (in red) in relation to the Mire Conservation Area (blue cross hatched area) and the Old Forest Growth Protected Area (red striped area).
3. Project location and Geological Setting 3.1 Location and Access The Koillismaa-Naranka project is located in north-eastern Finland, south and southwest of the city of Kuusamo. The nearest town to the Koillismaa part of the project is Taivalkoski and the village of Murtavaara (not shown in the map) in the case of Naranka (see Fig.2) Koillismaa KoillismaaComplex Complex Portivaara Block Portivaara Block Rovaniemi Kuusamo Kemi Talvaikoski Koillismaa KoillismaaComplex Complex Oulu Narankavaara Dike Narankavaara Dike Raahe 100 km Railroad Scale bar Fig. 2; Location map of project areas Portivaara Block and Narankavaara Dike 3.2 Geological Setting The Koillismaa-Naranka Complex, constitutes one of the largest mafic igneous systems of Scandinavia. It was emplaced along an E-W rift system in the Archean Karelian craton around 2.24 Ga. It comprises a series of layered intrusions in the west (Western Intrusions) and the Narankavaara ultramafic funnel shaped dike in the east. The Western Intrusions comprise a layered mafic sequence with a thickness of over 4km and a strike length of some 100km, now broken up in 3 main blocks (Fig. 3)
Fig. 3: Geological Map of the Koillismaa-Naranka Complex projected on airborne magnetic map, illustrating location of Western Intrusions (green colors) and Naranka Dike in the East (brown colors). The Naranka intrusion is a dike-like body exposed over 35km and some 5km wide. Magnetic and gravity data suggest that the Naranka dike continues below the surface to the west. It may form a single intrusive system together with the Koillismaa complex. The mineral rights granted Akkerman Exploration cover the central part of the Naranka dike and a portion of the Portivaara block, pertaining to the Western Intrusions. 3.3 Exploration History Past exploration work in the Koillismaa area (Western Intrusions) date back to the 1960 s when Outokumpu Oy first mapped and drilled Cu-Ni mineralization along the basal contact of the layered intrusions. In total 75 holes were drilled providing some 12km of core. Rautaruukki Oy studied the magnetite gabbro at Mustavaara in the 1970 s which led to the development of the Mustavaara vanadium mine in 1976. Some of their effort was also directed to the Cu-Ni-PGE mineralization at the Lavotta prospect as part of a condemnation program, prior to the construction of a tailings dam over that area.
From 1970 onward the University of Oulu started the Koillismaa Research Project, which led to the realization of the potential for Platinum Group Minerals (PGM), resulting in several reports, thesis and publications. Subsequently GTK acquired the mineral rights over most of the basal contact of the Western Intrusions and conducted systematic exploration for Cu-Ni-PGE mineralization in the so-called Marginal Series between 1996 and 1999. Work included mapping, ore boulder tracings, ground geophysical measurements and diamond drillings. In total 98 shallow holes were drilled amounting to 8,925.60m with an average depth of 91m. In 2000, a Swedish junior exploration company, North Atlantic Natural Resources AB (NAN) continued the investigations under a joint venture contract with the GTK. During a 2-year period they carried out an airborne EM survey, ground geophysical follow-up (magnetometry, induced polarization and EM), as well as a total of 5000m of diamond drilling on identified targets. A comprehensive overview of the above mentioned studies is described in www.gsf.fi/explor/koillismaa/koi.htm and www.gsf.fi.explor/pgeweb/nfin/index.htm In the case of Naranka, exploration dates back to the 1950 s with studies undertaken by the University of Oulu, providing a detailed account of the geological characteristics of the dike complex (Alapieti et al, 1979). GTK covered Narankavaara as part of its regional studies, including soil geochemistry, ground gravity and airborne magnetics, followed up by ground magnetic and VLF. A limited amount of drilling was conducted by NAN in the north of the Narankavaara Complex, of which 7 were drilled into the main intrusion, 4 in 1967, 1 in 1972 and 2 in 1996. There are no reports of significant mineralization having been encountered. In 1997, GTK drilled another series of 7 holes in an E-W trending dike running parallel to the north of the main intrusion. Results from this area (Tervajoki) were also negative. NAN also briefly reviewed the area in parallel with its activities in the Western Intrusions. Work done was limited to soil sampling and reconnaissance visits, resulting in the detection of several mineralized boulders of unknown origin. More systematic work was carried out by Outokumpu, focused on the NW tip of the intrusion triggered by an outcrop reported by a local prospector, with some visible sulphides that yielded slightly anomalous PGE values. In total 18 holes were drilled by Outokumpu, in part stratigraphic to gain a better understanding of the structural and lithological make up of the intrusions, down to a maximum depth of 444.6m in hole MUV-06. No significant mineralization was encountered and consequently the licenses were relinquished between 2000 and 2002.
4. Exploration Activities performed 4.1. Exploration Program 2005 Data compilation and analyses (December 2004 to June 2005) Initial stage of data acquisition, compilation and analyses, comprising data purchased from the GTK (Rovaniemi office), data from academic studies (University of Oulu) and previous studies by exploration companies (Outokumpu and North Atlantic Resources). Data acquired include geological and geochemical data from all boulder and surface samples collected to date and from drill core obtained during successive phases of exploration drilling (GTK, Outokumpu). Field reconnaissance (June-July 2005) Program of 6 weeks of field mapping and sampling of available outcrops, combined with Beep Mat survey, mapping rocks with high magnetic susceptibility and nearsurface conductors below the till. Base camp was set up in Hossa (south of Narankavaara). Topographic referencing was done with help of detailed topographic map sheets (KKJ, Zone 3) and GPS. Lithogeochemical analyses (December 2005) Preliminary analyses of lithogeochemical data from previous sampling, with assistance from Pertti Lamberg. A fertility analyses was done on an initial suite of 297 samples from Narankavaara and its associated offshoots. Subsequently extended to also include geochemical data from samples collected in the Portivaara Block by GTK. Target modeling. (August-September 2005) Known examples of magmatic nickel-copper-pge sulphide mineralization from other Proterozoic magmatic districts were used to derive a conceptual model for possible sulphide ore hosted by feeder dikes in the deeper parts of the Naranka dike complex. In particular the geological setting and general features of the world-class Jinchuan nickel deposit, is believed to be similar to the conditions observed at Narankavaara and has been used to define the possible target characteristics as a basis for selecting exploration methods and selecting exploration guides and vectors for area selection and target definition. Promotional activities (October-December 2005) Reports and presentations have been prepared and exposed to raise the awareness of the exploration potential amongst potentially interested companies at the Resource Investment Conference in Toronto (October 205), the CIM conference in St. John s Newfoundland (November) and the FEM 2005 conference in Rovaniemi (December 2006). General project information has also been included in the company s website as of early 2006.
The above led to the signing of a joint venture agreement with Nortec Ventures Inc. in June 2006, providing the necessary additional funding required to conduct follow-up geophysical surveys and target drilling. 4.2 Exploration Program 2006 Geophysics (July to October 2007) Geophysical studies conducted at the Koillismaa- Naranka project comprise a helicopter borne, deep-em survey conducted by SkyTEM Aps. from Denmark. The survey totaled 1287 line km flown in two areas over the central part of the Narankavaara mafic dike complex and the eastern end of the Portivaara Layered Intrusion (Fig. 4). Line spacing was 100m and the height of the loop about 30m. Koillismaa-Naranka Intrusive Complex Koillismaa Naranka Proterozoic mafic layered Intrusions Proterozoic fold belts scale 25 km Archean basement (Karelian Craton) Fig. 4. Location of areas (marked in yellow) covered by the SkyTEM EM survey. Conductivity and resistivity readings were processed and modeled with the assistance of Condor Consulting from Denver. The survey has detected several moderate to strong conductors, some of which occur at depth below 150m, coincident with locations within the igneous complex which are believed to be prospective for magmatic sulphide accumulations. Geological studies, analyses Geological work consisted of compilation and analyses of data obtained during past investigations in the area. Based on these conceptual geological models were built and analogies made with known world-class nickel deposits at Jinchuan in China and Voisey s Bay in Labrador, Canada.
The conclusions reached were that both the Naranka dike and the Koillismaa Layered Mafic Intrusion are prospective for nickel-copper sulphides and that past exploration has not effectively tested this exploration potential at depths in excess of 100m. One specific geological study done during the year, was a fertility analyses by P. Lamberg of Outokumpu Research using geochemical data from surface and drill hole samples obtained during previous exploration campaigns in the Portivaara Block. This study concluded that the proprietary Fertility Analyses can be used to define vectors pointing towards areas with high potential for magmatic sulphide mineralization within the Portivaara Block. The study pointed also out that that the Portivaara Block offers a higher fertility compared to Naranka where sulphur saturation was reached relatively late during the crystallization process. 4.3 Exploration Program 2007 Diamond Drilling (June November 2007) The main part of the 2007 exploration program consisted of a 2500m campaign of diamond drilling, commissioned to Suomen Malmi Oy. Chief objective of this program was to drill test a series of deep EM anomalies detected by the SkyTEM survey in the year before. In total 5 holes were drilled on 3 priority targets in the Portivaara block and 2 in the Naranka area (see table below). KOILLISMAA-NÄRÄNKÄ BOREHOLES Hole Area Map Sheet X Y Z (m) K dip Depth (m) Claim 350 S strik e 185 K07-01 Musta 3543 06 7301.925 3550.600 70 547 Raiskiovaara 3 K07-02 Musta 3543 06 7301.672 3551.755 270 185 65 352.45 Raiskiovaara 1,2 K07-03 Pyhitys 3543 09 7301.600 3560.190 245 185 55 671.3 Pyhitys 3 N07-04 Näränkä 4523 07 7286.510 3622.818 250 230 70 600 Naranka 9 N07-05 Näränkä 4523 07 7285.560 3622.435 250 050 70 201.25 Naranka 11 The planned holes were drilled in the period June to November 2007, with total meters drilled amounting to 2372 meters. The lower than planned amount of meters drilled was due to technical difficulties in hole N07-05, which had to be abandoned at a depth of 201.25m in a large fault zone before reaching its planned depth of 500m.
5 Results 5.1 Data compilation and analyses For Akkerman Exploration B.V. the most important conclusion drawn from the data compilation and analyses was that the Koillismaa-Naranka complex has the right fundamental geological characteristics that are required to be able to host a world-class nickel deposit. These key characteristics that together provided the motivation to launch a new exploration campaign are: - Large volume of primitive mantle material Intruded in an intra-cratonic rift environment In Proterozoic times as part of a world-wide phase of high igneous activity Significant residual discovery potential left by previous exploration efforts The most relevant results from past exploration efforts at the Western Intrusions are: - Highly anomalous Cu-Ni-PGE mineralization was demonstrated to occur over kilometers strike length along the basal contacts of the Western Intrusions. - Mineralization averages 0.2-0.4% Cu, 0.2-0.3% Ni and 0.5-1g/t PGE+Au - Thickness varies from a few meters up to a maximum of 50m - The mineralization occurs along the basal contact of the intrusion, mostly at the top of a heterogeneous gabbro with quartz-albite inclusions. - The mineralization occurs as sulphide disseminations, sometimes as larger patches and blebs and occasionally in the form of cm thick massive veins. - Most of the work done was limited to the shallow, near-surface parts of the complex Past results obtained in the Portivaara Block of the Western Intrusions in the vicinity of the Pyhitys and Raiskiovaara claims are shown on a map and in a representative section in Figs. 5a and 5b below. At Narankavaara, past work did not find any significant mineralization, neither in surface showings, nor in the several holes drilled. Despite this the following encouraging features had been established: - Many striking similarities with the Jinchuan nickel deposit in China - Large size and volume of primitive ultramafic lithologies - Apparent depletion of nickel in surface and drill hole samples from the ultramafic rocks (peridotite). - Relative deep level of erosion compared to the Western Intrusions, providing access to the more favorable deeper roots of the system.
Two critical aspects remained to be established at Narankavaara. First that somewhere during the emplacement and crystallization of this intrusive complex, sulphursaturation had occurred. Secondly that the right physical-chemical conditions had been present to enable concentration of nickel and copper sulphides in sufficient quantity and grade. Fig. 5a: Map showing mineral intersections in holes drilled by GTK and NAN in the Portivaara Block in and around the Raiskiovaara and Pyhitys licenses granted to Akkerman Exploration B.V.
Fig. 5b: Cross Section showing mineral intersections in holes drilled by GTK and NAN in the Portivaara Block in the Musta Area (Raiskiovaara licenses granted to Akkerman Exploration B.V.) 5.2 Field Reconnaissance The field reconnaissance carried out by J.H. Akkerman, in June-July 2006, resulted in the first detailed outcrop map of the Naranka area. This map highlights the limited degree of exposure of the Naranka intrusion and provides guidance to those areas where outcrops can be found. Inspection of all outcrops allowed a verification of the grouping of outcrops in main lithological units as done during previous investigations and to obtain where possible information on contact relations and structures. Geological conclusions reached were that: - The most ultramafic lithologies of the dike complex consist of dunites and peridotites. - These lithologies are generally strongly weathered and their poor resistance to erosion during glaciations and has led to the creation of morphological depressions, presently occupied by marshlands and lakes.
Few dunite and peridotite exposures in the south eastern part of the area could be found and resulted to be devoid of any visible sulphides. - The dunite-peridotite sequence is the lowest most unit that progressively changes into pyroxenites, gabbro-norites and gabbro s, occasionally with very fine disseminated sulphides (highlighted on the outcrop map with s ). - These less mafic units are more resistive to erosion and tend to occupy the higher elevated parts of the terrain, i.e. the Naranka ridge. - Intrusive contact along the northern and southern sides, where visible, is made up of dunite-peridotite in relatively sharp contact with Archean basement composed of granodiorite-granite often with gneissic banding. - Contact metamorphic effects are generally absent and dips of the contact appear to be high-angle. - The exception occurs at the north-west tip of the intrusion, where gabbro rocks are dipping below sub-horizontal banded gneiss in what appears to be a roof zone. Presence of partially melted roof fragments and heterogeneous textures in the surrounding igneous matrix is indicative of wall rock assimilation taking place in this particular zone. (see photos Attachment I) - Mapping of lithological units reveals the presence of crosscutting faults in NE-SW direction with apparent sinistral off-set, combined with down faulting of the western blocks relative to the blocks on the eastern side of the faults. - These block faults are accompanied by peridotite units that cross-cut the previously described lithological layering. Their texture and composition is different from the dunite-peridotite noted earlier, including large crystals of magnetite. These peridotites have been named Peridotite 2 and are interpreted to represent a separate intrusive phase during a relatively late stage of the emplacement of the Naranka dike complex. During the reconnaissance mapping, a Beep Mat device was used to detect areas of high magnetic susceptibility or areas of low conductivity. The Beep Mat is a small geophysical instrument that can be pulled over the ground as a sledge while walking and is capable of penetrating through a few meters of overburden. The result of these efforts is that no significant hidden conductors could be found, nor in the areas with outcropping intrusive lithologies, nor in the areas covered by swaps or glacial till. Integration of the geological map with the existing data from airborne magnetic and frequency EM surveys by both GTK and Outokumpu clearly illustrated specific geophysical properties for some of the lithological units. First the dunite-peridotite
unit is expressed by a broad anomaly of low resistivity, extending on in two parallel elongated anomalous zones on both sides of the Naranka ridge. This low resistivity is due to the abundance of serpentine after olivine in a water saturated layer below the marsh lands. Secondly, the late stage intrusion of Peridotite 2 is reflected by inversed magnetism relative to the earlier magmatic intrusion, standing out as strong negative anomalies highlighting both the cross-cutting dikes with NE-SW strike and also the dike feature running parallel to the main Naranka dike on the north side (named Tervajoki dike). Other relevant observations made during the reconnaissance was the absence of mineralized boulders other than those located by NAN and the positive correlation with nickel in soil anomalies and the weathered dunite-peridotite, probably originating from the nickel in silicates. From an overall perspective it was also found that the Naranka intrusion appeared to be the result of one major intrusive event followed by magmatic differentiation in a layered series from dunite to gabbro. Only succeeded by a final injection of undifferentiated peridotite along structural zones of weakness. No indications were found amongst the field observations that the dunite lithologies are part of a separate volcanic sequence as suggested by some GTK geologists on the basis of geochemical signatures. The detailed 1: 20,000 scale outcrop map and geological map for the Naranka area are attached to this report as printed paper copies in Attachment II. 5.3 Litho-geochemistry Analyses of the geochemical data obtained by the GTK and Outokumpu from surface samples and drill core show a wide variety in nickel contents. When plotted against MgO, the samples from the main Naranka intrusion appear to be relatively low when compared to samples from the later stage Peridotite 2 intrusion or samples from the Takanen greenstone belt in the northwestern extension of the Naranka dike. These differences are well illustrated in the graph presented in Fig. 6, compiled by the GTK (Markku Iljina and Jukka Kalimaa). In the dunite-peridotite and pyroxenite rocks of the main intrusion, with MGO contents of 20-30%, the nickel values range between
0.002-0.1% nickel, while samples with the same range of MgO values from the parallel dike in the NE systematically contain nickel between 0.1-0.16%. These observations are seen as an important indication that the original nickel in the intruding mantle material (which can be as high as 0.2-0.3% Ni) may have been depleted. Geological Survey of Finland, 2005, NÄRÄNKÄVAARA AREA 0.3 0.2 Ni% Target Kivim urto N äränkä NE N äränkä m ain Takanen Vitikkolam pi 133553 0.1 0.0 0 10 20 30 40 50 MgO_n% Filter: 1_Näränkä_area (n= 381) Fig. 6: Ni/MgO ratio showing relatively low nickel in samples from the main dike (red squares) compared to samples from the later peridotite dikes in Naranka NE (blue open circles). Late 2005, Dr. Pertti Lamberg of Outokumpu Research, offered to apply his recently developed Fertility Analyses to define the prospectivity of the Naranka and Portivaara parts of the Koillismaa Complex ( From Genetic Concept to PracticeLithogeochemical identification of Ni-Cu Mineralized Intrusions and the Localization of the Ore, Ph.D Thesis, P. Lamberg, 2005). The first test involved 435 samples with whole rock geochemical analyses from the GTK database. Of these 138 samples correspond to the Portivaara Block, in particular from the Pyhitys prospect and 295 from the Naranka dike complex. All samples were then ranked on the basis of 7 criteria:
1. Primitiveness 2. Extend of sulphide saturation 3. Ni-rich, chalcophile undepleted magma 4. Sulphides are magmatic and equilibrated with large amount of magma 5. Coeval primitivism 6. Accumulation of sulphides 7. Fractionation or mobilization of sulphides Based on the above parameters an Overall Discrimination Value (OD value) is calculated, which can range from 0 to 7. The higher the OD value, the more fertile the magma is for the generation of Ni-Cu sulphide mineralization. The Fertility Test yielded a few interesting tentative conclusions (full report in Attachment III). In the Pyhitys area, a subset of samples comprising olivine bearing cumulates, got the highest OD value possible, i.e. 7, thus showing high prospectivity for Ni, Cu and PGE sulphide deposits. The Cobalt number (Co#) was found to be inversely related to CuNi and PGE, just as in the case of Keivitsa and Duluth. The study recommended continuing the study, incorporating more samples from the Portivaara block as a means to locate the most promising target areas for drilling, by using the Co#. In the case of the samples from Naranka, Lamberg noted a wide fractionation series, typical of magmatic differentiation from a single magma cycle. The general sulphide content of the samples is low and the highest are found in orthopyroxene cumulates, which according to the analyses is not a promising feature for the presence of Ni-Cu ore in the basal parts or conduits of the intrusion. A slightly more positive indication mentioned was that drill core samples from the deeper part of Naranka, reach sulphide saturation earlier in the differentiation sequence implying a higher Ni-exploration potential in the deeper portions of the Complex. During 2007, P. Lamberg was commissioned a follow-up study involving a larger population of in total 7000 samples from the Western Intrusions (Figs. 7 and 8). Draft report in Attachment III. The study concluded that the Overall Discrimination value is low (0-1) for the samples analyzed, except for those from the Portivaara-E and Pyhitys-S target areas, with OD values as high as 5 (Figs. 9 and 10).
All of these prospective samples are from the Marginal Series in the southern contact of the intrusion between the layered series and the Archean basement. The bottom line recommendation given was that these 2 most promising target areas should be screened with geophysical methods for localizing disseminated sulphides, followed by target drilling. They are the only two areas which pass the 2 nd criteria of the test, i.e. more than 50% of the samples contain >0.3% sulphide. In view of the above results, the joint venture partners Nortec Ventures and Akkerman Exploration concluded that the Fertility Analysis was lending further support to select the eastern part of the Portivaara Block and the deeper parts of the Naranka dike as the most potential areas within the Koillismaa Complex for more detailed follow-up exploration work. Fig. 7: location of samples included in the 2007 follow-up Fertility Test. Note location of target areas Portivaara-E and Pyhitys-S, that were revealed as the areas with highest exploration potential
Fig. 8, Summary of the fertility analyses by target areas in the Western Intrusions. Fig. 9 Thematic map of the OD values by target area, highlighting the Portivaara-E and Pyhitys-S areas as the most prospective.
Fig. 10: Summary of the fertility analyses per target area. 5.4 Geophysics: Airborne VTEM Survey The Nortec-Akkerman joint venture selected the latest deep penetrating airborne EM method (referred to as VTEM) to search the priority areas for possible massive sulphide accumulations along the basal contact and possible magma conduits of the Koillismaa layered intrusion. The targeted depth range to be screened was from 0 to 300 or 400m vertical depth, much deeper compared to the <100m depth penetration of the previously used dual frequency EM system by the GTK. The target for the EM survey was highly conductive sulphide mineralization in the form of thin steeply dipping sheets (feeder-type), thick sheets (basal contact) or large blobs.
Quotes were requested from Geotech in Canada and SkyTEM Aps in Denmark for a helicopter-borne, time domain EM survey over the selected areas. The survey was commissioned to SkyTEM in view of its availability and competitive pricing. The survey was flown in two blocks over the central part of Naranka and the Eastern portion of the Portivaara Block (see Fig. 4). The survey over the Portivaara Block consisted of 739.3 km flight lines and the area flown in Naranka measured 548.1 km for a total of 1287.4 actual line km surveyed. Fieldwork was completed between September 7th and October the 16th of 2006, using an Aster 350 helicopter flying at an average speed of 60km/hr and a nominal flight height of 30m above the surface. Both areas were flown with flight paths at right angles to the long axes of the survey areas and several tie lines flown parallel. Flight lines were 100m apart.
Fig. 11, Actual survey lines flown over the Portivaara Block (above) and Naranka area (below). Colored part is area including magnetic survey data. Technical data on the geophysical method, specifications of the equipment used and further details on the survey and data recorded can be found in the SkyTEM report, in Attachment IV (SkyTEM survey Narankavaara and Koillismaa Finland, Data Report by Max Halkjaer, SkyTEM Aps, January 2007).
Processing, analyses and interpretation of the SkyTEM data was commissioned to Condor Consulting from Lakewood Colorado, a leading geophysical consulting group in the field of airborne electromagnetic surveys. The final Condor report is included in Attachment V (Report on processing and analyses of a SkyTEM EM survey, Koillismaa-Naranka projects, for Akkerman Exploration B.V., March 2007, Condor Consulting Inc.) Results Portivaara survey area The data show that most of the survey area is uniformly resistive, except for some very superficial conductive features which appear to correlate with drainage channels flowing from the old Mustavaara tailings area. The survey did detect a few significant conductors in the western portion of the area, in the vicinity of the old Mustavaara mine and related infrastructure (Figs. 12, 13). These anomalies are interpreted by Condor to consist of a series of thin, plate-like conductors (DPR response) and in some cases they are typical of thick plate-like conductors (SPR). Possible geological explanations for these conductive features are massive sulphide lenses and conductive faults. Limited Maxwell plate modeling by Condor indicates that the conductors lie at shallow depth and in some cases possibly at surface, suggesting they may be due to cultural sources. The conductors in the northwest corner of the survey area are very close to the old mine buildings and are most likely due to remaining metal which were bulldozed over during the dismantling of the plant buildings and crushing plant. The anomalies in the south all lie within or around the edges of the old tailings disposal area. These could be due to metal pipes or due to the conductive nature of the tailings materials themselves. The same tentative conclusion was arrived at by NAN during their study of this particular target area (Musta area). The only conductor which does not appear to correlate with cultural features is the trend of 5 DPR anomalies approx. 200-300m north of the tailings area and service road to the dam. The modeled plate conductor has a steep dip of 74 degrees to the south and extends to a depth of 144m according to Condor. Depth inversions done by SkyTEM gave an even greater depth extension. At the same time, previous drilling by the GTK and NABN had shown that some of the best and thickest mineralization in the Marginal Series is located directly underneath and extending beyond the Mustavaara tailings area.
Based on these above considerations and uncertainties, it was decided to select two of the conductors for follow-up drill testing, first to the north of the tailings dam and secondly the strongest conductor under the east part of the tailings area. Drill hole positions and results are described in the next chapter. Fig. 12: Plate-like conductors in the west portion of the area, in the vicinity of the old Mustavaara mine and infrastructure (picked conductors in black triangles; are of high conductivity in yellow-purple)
Drill Targets Fig. 13: Close up of the conductors in the Musta area, relative to topography and geological contours Results Naranka survey area The Naranka survey area turned out to be quite conductive as had already been established by the earlier GTK and Outokumpu EM surveys. Zones of high conductivity correlate spatially with the outcropping dunite-peridotite lithologies, consistent with the expected uniform serpentinization of these rocks. The resulting finely disseminated magnetite also gives rise to a coincident magnetic anomaly. SkyTEM conducted depth inversions on all sections and highlighted the fact that only a part of the conductivity signal was due to the conductive surface layer of serpentinized ultramafics in swamps. The remaining part of the signal seemed to be originating from greater depths, as shown on a series of level plans down to a depth of
320m. The deepest conductivity depth slices, revealed a pattern of discrete areas of higher conductivity within a broad zone of moderate conductivity (Figs. 14 and 15). Three of the most prominent anomalous zones are situated in the southeastern part of Naranka, right below the central hill with exposed pyroxenites. Therefore these could not be explained by the presence of serpentinized peridotite. Condor Consulting repeated the depth inversions using three different methods and were able to confirm the same higher conductive features. They agreed that the anomalies could be caused by nickel/pge sulphides within the serpentinized peridotite, but also warned that their dimensions were small (100-150m) and that they could also be due to noise in the late-time channels, rather than representing true conductivity enhancement. In conclusion Condor stated that the SkyTEM survey had not detected high priority targets in either of the 2 survey areas. A number of lower priority targets were defined that warranted some follow-up. Significant localized conductors in the western part of Koillismaa were believed to be largely cultural, except for one anomaly which was recommended as a target zone. At Naranka the serpentinized peridotites produce extensive zones of consistent conductive response. Depth inversions and conductivity depth slices revealed a number of discrete zones of slightly higher conductivity which may be caused by sulphide mineralization. Given the low conductivity contrast they could be explained as slightly more conductive serpentinites. In view of the possibility that the deeper anomalies could be due to sulphides, combined with the fact that they are situated in the right geological environment (along the central axes of the main dike) in an area that had never been explored before, the joint venture decided to test two of the anomalies by deep drilling. These scout holes would define for the first time whether the dunite-peridotite unit continues in depth and whether or not it is accompanied by any magmatic sulphide mineralization, as in the case of the Jinchuan deposit in China and the Eastern Deeps in the case of Voisey s Bay in Labrador, Canada.
Fig. 14: EM response over the Naranka survey area (AdTau image by Condor)
Fig. 15: Conductivity depth slice for 0-20m above sea level (220-320m below surface) produced by SkyTEM, highlighting local higher conductors in broad low resistive formational anomaly. 5.5 Diamond Drilling On the 18th of April 2007, a contract was signed with the Finnish contractor Suomen Malmy Oy for a 5-hole program totaling 2500m of diamond core drilling. Objective for the program was to test for magmatic Ni-Cu-PGE sulphides in the deeper portion of the Koillismaa-Naranka Mafic Layered Complex. Drill targets comprised 2 SkyTEM anomalies in the Portivaara Block (Figs 16, 17 and 18), south of the old Mustavaara mine, 1 geological target in the Pyhitys area (Figs. 20, 21) and 2 SkyTEM anomalies in the central part of Naranka (Figs. 22 and 23). Geological supervision was assigned to geologist Tuomo Karinen. A temporary field base created in Taivalkoski served as the logistic centre for core splitting, logging and sampling. 5.5.1 Portivaara Block Hole No.: Location: Drill target: K07-01 Musta area, 1km north of the Mustavaara tailings dam Deep EM conductor, modeled by SkyTEM, forming part of a weak conductive corridor, trending roughly E-W over a distance of 2km SkyTEM flight line No. 121001 Target depth Top to conductor at vertical depth of 200m; most intense part at 325m; depth of projected basal contact between 325 to 425m vertical.
Borehole Location Map Holes K07-01 and 02 K07-01 K07-02 Fig. 16: location map of the two holes drilled in the Musta area, Portivaara Block. S N Flight Line 121002 SkyTEM Resistivity Level Plan 00-20 Drill section, planned Hole K07-01 K07-01 K07-01 SkyTEM Inversion Model Note: resistivity highs (red-brown) are all located between the flight lines, so maybe artifact of modeling Fig. 17: SkyTEM conductor targeted by hole K07-01 shown on conductivity depth slice and in section. Results hole: K07-01 Intersected the targeted marginal series mineralization between 300 and 450m. This sequence was found to contain mainly gabbronorite with intercalations of pyroxenite and peridotite. The marginal series are overlying a 6m wide unit of albite quartz rock, followed by the Archean basement composed of amphibolite down to the end of the hole. Mineralization consisted of disseminated sulphides of variable intensity averaging some 1-2 % with maximum values of 10% sulphides over narrow widths of a few centimeters. From metres 438.00 To metres 439.00 metres Copper % 0.187 Nickel % 0.157 Gold Ppb 93 Palladium Ppb 389 Platinum Ppb 155 Au + Pd + Pt g/tonne 0.637 439.00 440.00 0.172 0.171 76 380 164 0.620 440.00 44 0.191 0.133 82 255 106 0.443 44 442.00 0.287 0.129 157 315 141 0.613
442.00 443.00 0.083 0.055 58 88 53 0.199 443.00 444.00 0.240 0.115 136 237 122 0.495 444.00 445.00 0.103 0.077 57 138 86 0.281 445.00 446.00 0.090 0.092 28 177 94 0.299 446.00 447.00 0.072 0.084 29 213 118 0.360 447.00 448.00 0.063 0.056 40 111 75 0.226 448.00 449.00 0.167 0.092 188 345 203 0.736 449.00 450.00 0.045 0.039 14 94 48 0.156 450.00 45 0.064 0.044 36 98 69 0.202 45 452.00 0.034 0.048 12 95 62 0.168 452.00 453.00 0.110 0.027 19 72 47 0.138 Best interval is 6m @ 0.5 g/tpge+au, 02% Cu and 0.13% Ni. This is similar to the average grades and thicknesses of mineralization in the marginal series encountered in previous drill holes by GTK and NAN. Given the low amounts of sulphides it is concluded that the targeted conductor is not due to sulphide accumulations. The target has been adequately tested and no further follow-up is recommended. Hole No.: K07-02 Location: Drill target: Musta area, on top of the northern edge of the Mustavaara tailings dam Strongest Deep EM conductor, modeled by SkyTEM forms part of a semi-circular conductive area of 900*600m Suspicion that near-surface tailings from 0-20m depth may be cause of anomaly including lake-bottom sediments. SkyTEM flight line No. 133001 Target depth Top to conductor at vertical depth of 150-200m; depth of projected basal contact between 250-300m vertical. S SkyTEM Conductivity Level Plan 00-20 N Line 133001 Drill section, planned Hole K07-02 K07-02 K07-02 Fig. 18: SkyTEM conductor targeted by hole K07-02 shown on conductivity depth slice and in section. Results hole: K07-02 This hole successfully intersected the targeted mineralized horizon at the base of the Portivaara mafic layered intrusion, between 188 and 240m. In this case the marginal
series contain a larger proportion of quartz-albite rocks alternating with gabbronorite. Mineralization is slightly stronger with better base metal and precious metal grades compared to K07-01. From metres To metres Metres Copper % Nickel % Gold ppb Palladium ppb Platinum ppb Au+Pd+Pt g/tonne 187.00 188.00 0.229 0.143 130 188.00 189.00 0.202 0.134 47 150 82 0.362 247 115 189.00 190.00 0.062 0.454 0.409 18 59 32 190.00 19 0.256 0.109 0.203 64 270 119 19 192.00 0.453 0.143 0.097 36 136 64 0.236 192.00 193.00 193.00 194.00 0.210 0.140 140 227 103 0.470 0.232 0.104 77 219 107 194.00 0.403 195.00 0.398 0.253 102 410 177 195.00 0.689 196.00 0.431 0.413 171 648 290 1.109 Especially the last two meters intersected near ore-grade mineralization, averaging 0.9 g/tpge+au, 0.41% Cu and 0.33% Ni. As in the case of hole K07-01, no obvious explanation could be found for the modeled conductor, other than that it is unlikely that it is due to the weak sulphide dissemination found at a vertical depth of nearly 200m. In retrospect, it is now clear that the conductive features are not due to increasing sulphide mineralization in the marginal series in depth towards its suspected magmatic feeder zones. Instead, it has become more likely that the higher conductivity is entirely related to cultural effects of the former Mustavaara mine workings. One of the possibilities that have come to mind is the effect of the sodium used in the roast-leach process, which will have led to a high sodium content of the fine milled tailings. In this context it is possible that the sodium enriched slurry and liquids that were pumped in the tailings dam, may have penetrated the underlying and surrounding groundwater. Such sodium enriched tailings and groundwater is likely to have a higher conductivity that normal groundwater and hence would give rise to a broad zone of higher conductivity. Such anomaly would tend to follow patterns of groundwater drainage and could also give rise to the thin plate conductors where such water would penetrate fault zones in the bedrock. This possible explanation becomes quite plausible when observing in Fig. 19 below, the shape and size of the anomaly in comparison with the local surface morphology, drainage channels and the tailings dam.
Fig. 19, Size and shape of the near surface conductive area around the Mustavaara tailings area, suggesting possible link with groundwater contamination by chemicals used in the roast-leach process. Hole No.: K07-03, alternative Location: Pyhitys area, in valley to the north; located just outside the Syöte National Park To test a regional mafic dike along the NE boundary of the Pyhitys area, possibly representing a major crustal fault and the E-W trending axes of a large gravity anomaly, possibly representing the magmatic conduit connecting the Central Intrusion with the Western Intrusion. Once the hole has cross cut the vertical dike, the aim is to drill down to the down-dip extension of the basal contact of the Pyhitys Layered Intrusions. SkyTEM flight line No. 126001 Drill target: Results hole: K07-03 The third hole drilled in the Portivaara block was aimed at a geological target. This target consisted of the easternmost end of the Portivaara block where the layered sequence ends against an E-W oriented fault zone and coincident gravity anomaly, generally believed to represent a large magmatic body in depth (the Central Intrusion ). The actual hole was drilled not from the top of the Pyhitys hill, but from the alternative location in the valley to the northeast (Fig. 20). With an angle in SE direction the hole could intersect both the gravity high as well as the layered sequence down to the Archean basement underneath.
Borehole Location Map K07-03 and alternative K07-03 alternative K07-03 Fig. 20: Location of Hole K07-03 alternative, relative to topography and geological contacts in the Pyhitys area. Map with EM anomalies Ad Tau (by Condor) with proposed drill holes K07-03 alternative Axes of gravity anomaly K07-03 EM target Outline Syote Park Area of outcropping Ni-Cu sulphides Fig. 21: Hole K07-03 location versus weak EM anomalies and regional gravity high The hole drilled from the valley did achieve the objective of passing through the dike, intersecting the layered intrusion and ultimately ending in the underlying Archean basement. The basal contact was reached at a down-hole depth of 632m. Unfortunately the overlying gabbronorite at the base of the layered sequence did not contain any significant mineralization except for minor disseminated sulphide from 560m to 610m The gravity anomaly remained unexplained and may have been overshot by the bore hole. The hole did intersect a thick diabase dike from 131 to 535m, including a central section with strong mylonitization and pyrite with trace chalcopyrite mineralization. Summarizing it can be stated that the SkyTEM survey and subsequent drilling program, has effectively screened the surveyed part of the Portivaara Block to a minimum depth of 300m and that no unexplained targets remain to be tested. Consequently, the residual exploration potential for semi-massive to massive sulphide accumulations has been downgraded significantly. However, this does apply to the
disseminated style mineralization, which is consistently present over most of the strike extend of the Portivaara Block along its basal contact and could further improve to ore-grade tenure and thickness further down-dip beyond the 300m vertical depth drill tested to date. In this context, it may be relevant to note that several chalcopyrite-quartz veins can be found along high-angle faults and joints in the south wall of the Mustavaara pit. These suggest that the marginal series mineralization extends down-dip along the basal contact and may have been partly remobilized along these zones of structural weakness to higher levels in the crust. Whether these deeper parts of the marginal zones maybe mineralized to ore grade and thickness remains an open question, perhaps to be addressed by future investigations. 5.5.2 Naranka Block Hole No.: Location: N07-04 Naranka area, drill site some 600m NNW of Narankavaara hilltop. Located just outside Old Forest Growth protection area. Possible access by extending existing road to the West Drill target: Deep EM conductors modeled by SkyTEM in the ultramafic sequence below the outcropping pyroxenites. Higher conductivity possibly related to disseminated and /or semi-massive Ni-Cu sulphides in the deeper part of the Naranka intrusive dike system. Target area is located slightly north of the interpreted central axes and root zone of the Naranka dike. SkyTEM flight line No. 174001 Target depth Top of conductors starting at 150-200m below surface. Hole drilled at steep angle to the SW in order to intersect the central part of the 300400m vertical depth.
Borehole Location Map N07-04, 05 and alternative N07-04 N07-05 N07-05 alternative Fig.22: Locations of holes N07-04 and N07-05 on topographic map of the Naranka hill. Map with deep EM targets Level plan 00-20m with proposed drill holes N07-04 N07-05 N07-05 alternative Fig. 23: Naranka drill holes projected on the map with location of EM anomalies (yellow-red)
Results hole: N07-04 Targeted one of the main TEM conductors below the central Naranka hill. The depth to the conductor was modeled at 200-300m depth, well below the outcropping, resistive pyroxenites. Hole N07-04 was drilled with an inclination to the SW, collared in peridotites and ending at a depth of 671, still in peridotites with variable degrees of serpentinization, faulting and some diabase intervals. There was no trace of sulphides and consequently the source of the higher conductivity picked up by the SkyTEM survey must be related to zones of more conductive serpentinites, relative to less altered and hence less conductive dunites and peridotites. Flight line 174001 N N Drill section Hole N07-05 Drill section, Hole K07-04 N07-04 Flight line 177001 N07-05 Fig. 24, Planned borehole trajectories in cross section showing conductors modeled by SkyTEM Results hole: N07-05 This 2nd hole in Naranka was drilled with an angle to the NE and aimed at another deep TEM conductor. This hole encountered very bad ground conditions due to faulting and high ground water flows preventing cementing to be effective in restoring ground stability. The first attempt (X7285.542 Y3622.422) was abandoned at around 100m, the second attempt to re-drill the hole from a nearby site (X7285.560, Y3622.250) was stopped at a depth of 201m. Results were very similar to those from hole N07-04, with the exception of drilling some pyroxenites in the initial 91m. Also in the case of this last hole, no sulphides were intersected.