Final Report [ML2013_0077] 1 EXPLORATION WORK REPORT OF FQM FINNEX OY S KAPUKKAROVA [ML2013:0077] ORE PROSPECTING PERMIT AREA 1 Introduction 1.1 Geography Kapukkarova ore prospecting permit area is located in the municipality of Sodankylä, approximately 70 kilometres northwest of the township of Sodankylä. The permit area is 1,634.39 hectares in size and consists of two separate entities, which are located west of the Porttipahta reservoir (Fig. 1). Access to the Kapukkarova exploration area is good via comprehensive network of gravel roads and off road tracks built to service the logging industry. Area can be accessed via Myllypalontie, which branches west off the highway number four where the Porttipahta water power station is located. The area can be characterized as a wilderness area (Fig. 2). There is no year-round habitation in the exploration area. Its infrastructure is limited to the gravel road network servicing forestry industry and the installations related to reindeer herding. Figure 1 Location of the Kapukkarova [ML2013:0077] ore prospecting permit area in the Sodankylä municipality. There are two separate exploration areas (entities) within the permit area. (ML2013:0077_Location_Map_1_2016_02_29.jpg)
Final Report [ML2013_0077] 2 Kapukkarova permit area is confined to the south by the border of the Pomokaira Natura 2000 protection area (FI1301712) and to the north by the border of the Sami homeland area. South of the Kapukkarova permit area, expands the impassable wilderness area of Pomokaira. In addition to belonging to the Natura- 2000 network, the largest network of protected areas, Pomokaira is a home to two national environmental protection program areas. Pomokaira-Tenniöaapa mire protection area (SSA120157) and Pomokairan suot mire protection program area (SSO120564). Within the Kapukkarova permit area there are few small habitat preservation zones (Finn. Metsälakikohde), which are protected under the Forest Act (1096/1996) section 10 for preserving biodiversity and habitats of special interest (Fig. 3). Figure 2 Location of the Kapukkarova [ML2013:0077] ore prospecting permit area with an aerial photograph background. (ML2013:0077_Location_Map_Orthophoto_2016_02_29.jpg) Vast majority of Kapukkarova permit area is located on a state owned property (758-893-1-10). It belongs to the Sattasniemi reindeer herding cooperative. Kapukkarova ore prospecting area and the entire Sodankylä municipality is part of a special reindeer herding area (Fig. 4). Kapukkarova ore prospecting permit was granted to on 24 th of June 2014. Exploration in the area commenced already in 2011, when a large reservation was converted into claim applications. Some of the exploration activities described in this report were carried out prior to the validity of the Kapukkarova ore prospecting permit. Those activities were conducted with landowner permission from Metsähallitus and are also reported in this report. Kapukkarova permit was relinquished on 13 th of August in 2015, four years after exploration commenced in the area.
Final Report [ML2013_0077] 3 Figure 3 Environmental protection areas in the Kapukkarova [ML2013:0077] ore prospecting area. (ML2013:0077_Environmental _Protection_2016_02_29.jpg). Figure 4 Land ownership at Kapukkarova [ML2013:0077] ore prospecting permit area is mostly state owned. One other water property belongs to Kemijoki Oy (ML2013_0077_Property_ Boundaries_2016_02_29.jpg).
1.2 Geology 1.2.1 Regional geological setting Final Report [ML2013_0077] 4 The project area is located in the Central Lapland Greenstone Belt (CLGB), which is a Paleoproterozoic supracrustal belt extending through northern Finland with continuations into Russia and northern Sweden and Norway. The CLGB in underlain by Archean basement gneisses, and the lower parts of the supracrustal sequences were deposited unconformably on these 3.1 and 2.6 Ga gneisses. The greenstone belt is divided into a number of volcano sedimentary associations including (oldest to youngest): Salla, Onkamo, Sodankylä, Savukoski, Kittilä, Lainio and Kumpu Groups. Evolution of the greenstone belt was initiated by the rifting of the Archean basement that produced acidic and intermediate volcanic rocks of the Salla Group (U Pb zircon ages 2438±13 Ma). The Salla Group and Archean basement is overlain by high Mg and komatiitic basalts of the Onkamo Group. The Salla Group is intruded by a 2.4 Ga Koitelainen and Akanvaara layered intrusions, which does not appear to affect the Onkamo Group. Rifting related volcanism was followed by sedimentation of thick sequences of quartz rich sediments and carbonates of the Sodankylä Group. Primary sedimentary textures of the quartz rich facies suggest a continental margin setting. The Sodankylä Group rocks have in turn been intruded by a series of mafic and ultramafic sills, suggesting an age >2.2 Ga for the Group. Deepening of the basin caused the sedimentation of carbonaceous siliciclastic sediments (Matarakoski Formation) of the Savukoski Group. These sediments are overlain by the komatiitic and picritic volcanics (Sattasvaara Formation). The contact between the Savukoski and the overlying mafic volcanic rocks of the Kittilä Groups is tectonic and has been interpreted as allochthonous by some authors and autochthonous by others. Younger molasse type sediments, such as quartzites and conglomerates, of the Lainio and Kumpu Groups uncorformably overlie all of the older sequence. Magmatic rocks provide a maximum age of 1.88 Ga for the Lainio and Kumpu Groups. Dating of the granites within the greenstone belt show that they form part of the 1.89 Ga Haaparanta Suite intruded during the Svecofennian orogeny. K feldspar rich Hetta granites may represent crustal anatexis from deeper sources (ca. 1.8 Ga), whereas the younger ca. 1.77 Ga Nattanen type granites are considered post collisional. The CLGB is a polydeformed basin with a complex tectonic history preserving at least three major deformation phases. Earliest deformation event is characterised by bedding parallel foliation. The most penetrative fabric the CLGB rocks is an S2 foliation that is axial planar to F2 folds. F2 folds are typically tight to isoclinal and either recumbent or reclined. They are inferred to result from northward directed thurst deformation. Third deformation phase is characterised by N S and E W oriented F3 folds and shear zones with various orientations. Central parts of the Kittilä and Sodankylä greenstone areas are characterised by greenschist facies metamorphism, whereas towards the granite plutons (west & south) metamorphic grade increased abruptly to amphibolite facies. 1.2.2. Local geological setting Kapukkarova ore prospecting area is largely dominated by rocks of the Savukoski Group. The magnetic anomaly at the eastern most permit entity is explained by the presence of ultramafic volcanics (komatiites) of the Sattasvaara formation. Surrounding and interspersed sulphide- and graphite-bearing pelites (Matarakoski fm) explain the observed electromagnetic anomalies. At Sammalselkä area the magnetic anomaly is explained by a variably magnetic and altered gabbroic intrusion. Geology of the western most entity of the ore prospecting area remains unknown as base of till drilling was unsuccessful at testing the bedrock. 1.3 Previous exploration work Kapukkarova has very limited exploration history. There aren t any historic diamond drill holes in the ore prospecting permit area. Regional till surveys from the area are limited to few isolated points instead of the
Final Report [ML2013_0077] 5 systematic line till program that covers much of the Sodankylä region further south. Even outcrop and boulder observations are limited. Closest diamond drilling activities were carried out by Geological Survey of Finland (GTK) in 2001, who were investigating the source of the Cu-(Au) till anomalism associated with the magnetic anomaly at Sammalselkä (Pulkkinen et al. 2007). Their investigations included magnetic and electromagnetic ground surveys and diamond drilling. 2 Exploration performed 2.1 Bedrock mapping and boulder tracing Only reconnaissance boulder and bedrock mapping occurred in and around the Kapukkarova ore prospecting area. In total 14 samples were taken (Fig. 5). These were mostly a mixture of komatiitic rocks and ultramafic intrusives (peridotites) although there were a couple of diorites / quartz diorites and one instance of rhyolite. Exposures were typically boulder fields or large extends of subcrop (up to 200 x 200 m). Most samples were taken near a series of gravel roads which pass through the tenement area. Samples did not contain any sulphides and metal contents were in the expected range with no anomalism of Ni, Cu, Co or precious metals found. The majority of the observations were taken at or close to existing observations made by the GTK. Ultramafic intrusives however were identified by FQM that had not been by the GTK. No bedrock maps were prepared owing to the scattered nature of the sampling. Figure 5 Index map of all surface bedrock and boulder observations taken in and around the Kapukkarova ore prospecting area (ML2013_0077_BedrockIndexMap_1_2016_02_29.jpg)
Final Report [ML2013_0077] 6 2.2 Geophysical and petrophysical surveys 2.2.1 Geophysical ground surveys A magnetic and an EM survey were carried out in Kapukkarova during 2013, measurement lines are shown in Figures 6 and 7. The magnetic survey was done with 50 m line spacing and a separate ground station magnetometer was used to record diurnal variations in the Earth s magnetic field. Based on drilling results the observed magnetic anomaly is caused by ultramafic komatiites. The observed magnetic field is shown in Figure 8. The EM survey was done in the time domain utilizing the moving loop method and the loop size was 200 x 200 m. Magnetic effects are causing some false anomalies to the data and based on the results the komatiite unit seems to be surrounded by conductive sediments both on the East and West sides. Two discrete conductivity anomalies were observed in the NW and SE parts of the survey area. These anomalies were drill tested (KIR002 and KIR003) and the conductors were explained but turned out to be of no economic value. The anomaly picks from the EM survey and the drilling locations are shown on the ground magnetic map in Figure 9. Figure 6 Measured ground magnetic lines at Kapukkarova ore prospecting area (ML2013_0077_2013_Kapukkarova_ GMAG_Lines_2016_02_29)
Final Report [ML2013_0077] 7 Figure 7 Measured ground EM stations at Kapukkarova ore prospecting area (ML2013_0077_2013_Kapukkarova_ MLEM_StationLocations_2016_02_29) Figure 8 Observed magnetic field at Kapukkarova (ML2013_0077_2013_Kapukkarova_GMAG_RMI_2016_02_29)
Final Report [ML2013_0077] 8 Figure 9 Ground EM anomaly picks (black crosses) and drilling locations on top of the magnetic map (ML2013_0077_2013_ Kapukkarova_MLEM_AnomalyPicks_2016_02_29) 2.2.2 Borehole geophysical surveys Three drill holes: KIR002, KIR003 and KIR004 were measured with the time domain borehole EM method in Kapukkarova during 2014. KIR002 and KIR003 were targeted to known conductors which were observed in the ground EM survey. Both of these drill holes intersected the conductors they were targeted to and these conductors gave clear responses in the borehole EM measurements. Though, no follow-up drilling was conducted based on the borehole EM results. In KIR004 no conductors were observed. The locations of the drill holes and the transmitter loops used in the surveys are shown in Figure 10.
Final Report [ML2013_0077] 9 Figure 10 Locations of diamond drill holes: KIR002 KIR004 and the transmitter loops used in the borehole EM measurements (ML2013_0077_2013_Kapukkarova_BHEM_2016_02_29) 2.3 Surficial geochemical surveys A large amount of base of till drilling was completed at Kapukkarova. Sample and line spacing varied but was typically 25-50 m and 100-200 m respectively depending on the size and nature of the target. In total, 571 points were taken (Fig. 11). In general samples were of relatively poor quality throughout Kapukkarova. Sandy till was commonly intercepted during drilling and the base of till rig often was unable to penetrate this layer, which could be in excess of 2-3 m thick in places. As such, a lot of the base of till samples came back logged as till and provided little geological information of bedrock and dubious geochemistry. Three water samples were taken in the Kapukkarova tenement. Their locations are highlighted in Figure 12 below.
Final Report [ML2013_0077] Figure 11 Index map of all the base of till samples in and around the Kapukkarova ore prospecting area (ML2013_0077_ BOTIndexMap_1_2016_02_29.jpg). Figure 12 Index map of all the water samples collected in and around the Kapukkarova ore prospecting area (ML2013_0077_ WaterSamples_1_2016_02_29.jpg). 10
2.4 Exploration drilling, channel samples and test trenches Final Report [ML2013_0077] 11 4 diamond drill holes were completed in Kapukkarova as well as 3 short (20 m) water holes. In total 1428.95 m was drilled in Kapukkarova. The targets were in each instance, planned on ground/airborne EM anomalies believed to be associated with mafic-ultramafic intrusive/komatiitic rocks spotted during reconnaissance mapping traverses or inferred from magnetics. Figure 13 highlights the collar positions of the diamond drill holes (including the water holes). KIR001 was the first hole drilled in Kirakka and intersected a mafic intrusion composed entirely of gabbro and a magnetite-bearing variant (see cross section in Figure 14). The intrusion itself was barren save for a 20 m interval from around 100 m which contained trace-low grade sporadic Cu associated with intense quartz-carbonate veining of the host rock (Fig. 15). Chalcopyrite, with lesser pyrrhotite and pyrite were the only sulphide phases. The secondary nature of the Cu mineralisation along with the low grade and limited scope for extent meant no further action was taken. Figure 13 Collar positions of Kapukkarova diamond drill holes and associated water holes (ML2013_0077_DDHcollarpositions_1_ 2016_02_29.jpg).
Final Report [ML2013_0077] 12 Figure 14 Cross section of drill hole KIR001 with down hole geology plotted along with selected Cu assay values >0.1% (ML2013_ 0077_crosssection_1_2016_02_29.jpg). Figure 15 Typical mineralisation style in KIR001 at approximately 104 m. Magnetite gabbro body cut by quartz-carbonatechalcopyrite veins with accessory pyrrhotite and pyrite. Individual composite assay values ranged from 0.1 0.3% Cu, but were not continuous (ML2013_0077_CorePhoto_1_2016_02_29.jpg).
Final Report [ML2013_0077] 13 KIR002-004 were drilled in the late winter of 2014. KIR002 and 003 targeted EM anomalies picked up from ground EM surveys. KIR004 tested the large magnetic high in-between the two anomalies. KIR002 intersected an altered sequence of mafic volcanics interspersed with minor sedimentary horizons, before hitting a sequence of komatiitic rocks which were also interspersed with sedimentary horizons of a pelitic nature which in some cases, were graphitic. In parts these graphitic zones contained some disseminated/banded sulphides. This in combination with the graphitic nature of some of the horizons was believed to be the cause of the EM anomalies seen in ground EM surveys. The target ultramafic sequence was barren and displayed normal geochemistry with no metal anomalism recorded. Only a couple of 2 m intervals sampled in KIR002 displayed minor Cu enrichment (500-800 ppm) and in all instances these sample intervals were restricted to sedimentary packages. Ni, Co, Au, Pt and Pd values were all within the expected ranges for the host rock. KIR003 and KIR004 both collared into and remained in ultramafic volcanic rocks throughout the entirety of the drill hole save for a few interbeds of mafic volcanics and sediments in KIR003. No significant metal anomalism was found in either hole; however KIR003 contained a thin, foliated mafic unit at around 65 m which contained trace disseminated and veined Po and Cpy. This is enough to explain the modelled BHEM plate. KIR004 was relatively homogenous throughout, consisting of interpreted Sattasvaara porphyritic komatiites which have undergone moderate-intense amphibole and chlorite alteration (Fig. 16). Figure 16 Cross section of KIR002-004; with geoogy plotted down hole (ML2013_0077_crosssection_2_2016_02_29.jpg). 3 Summary and conclusions Exploration work at Kapukkarova involved 4 diamond drill holes, a reasonable coverage of ground geophysical and geochemical surveys, as well as surface observations and water samples. Throughout this passage of work feels the most obvious and significant targets have been adequately tested. Results to date have been poor and so no further work was recommended by ; hence the decision was made to relinquish the ground.
4 References Final Report [ML2013_0077] 14 Pulkkinen, E., Keinänen, V. and Salmirinne, H., 2007. Kultatutkimukset Sodankylän kunnassa Sammalselässä vuonna 2001. Geological Survey of Finland, Rovaniemi. http://tupa.gtk.fi/raportti/arkisto/m19_3724_2007_10_20.pdf