SULMAC EXPLORATION SERVICES LIMITED

42E13SEMM 63.947 KABY LAKE " M""' 1 "1 010 SUMMARY REPORT ELMHIRST TOWNSHIP PROPERTY JACOBUS MINING CORPORATION LIMITED Introduction An exploration programme has been completed for Jacobus Mining Corporation Limited on property in Elmhirst Township, Ontario which consisted of geological and geophysical surveys and a diamond drilling programme. This report summarizes the results of this programme. Abstract A geological mapping and ground magnetometer survey was carried out over the property with electro magnetic detailing in places of interest. Forty-two holes were drilled in the vicinity of a mineralized zone exposed by trenching on and near claim 78423, in addition five holes on two other parts of the property, with a total of 47 in all. The results of this drilling has shown the presence of copper-nickel sulphides in a mineralized area

-2- of tabular form and of sub-marginal grade, within which has been located and outlined a higher grade section. Location and Access The property which is in the Port Arthur Mining Division, consists of 127 claims, 86 of which lie in the northeast portion of Elmhirst Township, Ontario, the remainder contiguous to the north in the unorganized South Onaman part of the Mining Division. Total area will approximate 5,000 acres. The claims consist of the following groups: 78410-78427 = 18 85044-85116 s 73 *note 85062-85079 85453-85470 - 18 restaked. Now 86176-86193 - 18 86725-86742 127 The property is located some twenty-five miles northeast of Beardmore, Ontario, which is on the Geraldton Port Arthur branch line of the Canadian National Railways. It can be reached by means of an all weather road running north of Nezah, Ontario, on the Trans-Canada Highway to a point about three miles west of the showing to which a rough tractor road is cut.

-3- Topography In general, the country has the typical peneplain aspect typical of the Canadian Shield, that is a flat skyline with few hills rising above a common level. In detail, there are a few prominences rising as much as 100 feet above the swampy areas, particularly adjacent to the gully occupied by the Charlie River and Lake Louise, which is the most marked linear feature of the property, striking in a con stant trend of about north 60O east across the property. Overburden is plentiful in places, as indicated on the geological maps attached, and outcrops relatively few with some large swamps. Much of the country has been burned over, consequently travel is difficult due to dead fall and scrub second-growth timber. Exploration Data From a line about two claims north of the south boundary up to and including the claims 86177, 86179, 86181 and 86183, lines were cut at 200 foot intervals with 100 foot stations to facilitate required geological mapping and as control for the geophysical work.

-4- In conjunction with this coverage, two areas of above normal magnetic intensity were detailed with lines spaced at 100 foot intervals with stations every 50 feet, as was the immediate area of the showing. Magnetometer work was carried out with a Sharpe A-2 vertical force magnetometer with a sensitivity of 20 gamma s per scale division and electromagnetic detail with a Sharpe vertical loop unit. General Geology Geological information relative to the property is available on map 47L (South Onaman Area) and 45A (Sturgeon River Gold Area) of the Ontario Department of Mines. The area just north of the property has been mapped as Keewatin basic volcanics intruded by a dioritic or quartz dioritic mass. Immediately around the property intermediate to acid volcanics have been mapped, intruded by diorites and grano-diorites. The exploration of the property may be considered as consisting of two concurrent phases. First the search for favourable mineralized zones on the property and second

-5- the investigation in the main showing area where mineralization is known to occur. 1. Property Exploration With the picket lines as control, approximately 7570 of the property was geologically mapped. The information provided was important as an aid in the overall assessment of the property. The information obtained as to geology and geo physics is shown on the maps attached. Geology - A predominant rock type is greenstone, principally andesite but varying to rhyolite in places. It is prevalent around the showing area (claims 78422-78423) and to the north and west. Generally it is massive and re- crystallized and provides little structural information. In some instances a complex of andesite and diorite is found. A diorite-gabbro sill-like complex is intrusive into the volcanic mass. In the vicinity of the showing, granite and grano diorite underlie the diorite-gabbro sill which in turn under lies the andesite volcanic complex. The granitic types are more prevalent in the eastern and south-eastern portion of the property. StiLMAC EXPLORATION SERVICES LIMITED

-6- Feldspar porphyry Is found much less frequently and is most likely related genetically to the granite. The latest intrusives are diabase dikes that cut all other rocks. The main mass of diorite north of the Charlie River topographic feature is believed to extend as far north as a line between claims 86176 and 86184 where it has been previously mapped on government surveys as abutting against grano-diorite. Geophysical - The accompanying magnetic maps show the flat aspect of the property, with the exception of two zones. The reason for this may be attributed to a low magnetite content in both diorite and andesite which form the bulk of the rock types on the property. Slightly higher intensities are found in grano-diorite areas. The first zone, a north-south trending feature at 00+00 North, 28+00 East is attributed to the effects of the accessory magnetite in a diabase dike with which it coincides, The second feature is a broad zone extending app roximately from claim 85052 north-west to claim 85104, about three-quarters of a mile.

-7- The southern end of the feature has a complex shape, with some values as high as 2,048 gammas as compared with a fairly uniform background level of 300-500 gammas. Four holes (JN-1, JN-2, JN-4 and JN-5) were drilled at locations to intersect peak intensities. For the most part, granodiorite was returned in the core with some intersections of pyroxenite, andesite and feldspar porphyry. The anomaly is attributed to above normal magnetite content in a host rock which, though mapped as diorite, is considered upon drilling to be more acidic and on the granodiorite side. No electromagnetic conductors were found over this area. The northern end has values to 2,014 gammas in an area of gabbro. One hole JE-1, of a series planned, was drilled at 24+00 North, 32+00 West to intersect the peak of a smaller, separate anomaly with a 1,066 gamma peak. Results confirmed the presence of gabbro but did not intersect sulphides of interest. As a result of the E.M. detailing, one conductor of moderate strength was located with an east-west trend north of the anomaly but not conforming to it. Because of

-8- its low strength and character it is not considered to be a possible locus of sulphide. Additional electromagnetic detailing over claims 86177, 86179, 86181, 86183, 85605 and 86184 did not locate conductors. 2. Showing Exploration The principal effort on the property has occurred at the main showing at or near claims 78422 and 78423 where forty-two holes (18,716 feet) were drilled in an attempt to locate mineable quantities of ore grade material. Detailed geophysical surveys and geological mapping were done in an attempt to determine the extent of a mineralized section exposed on surface. Geophysics - Lines were cut at 100 foot intervals with 50 foot stations over the area of the showing as control for magnetic and electromagnetic work. A low intensity anomaly occurs over the gossan area but elsewhere no indications of anomalous conditions were obtained nor was information gained as to the nature of the deposit. Due to the disseminated nature of the mineral it

-9- would not be expected that the electromagnetic method would necessarily outline this type of mineralization. However, it is the most sensitive of the electrical methods and it could be expected that local concentrations of sulphides would show up. Geology - Accompanying this report is a drill plan on a scale of l" - 50 feet on which is plotted all drill holes, magnetic data over the trench area and geology. Four trenches have been dug across a. gossan area at 32+00 South, 20+00 West. This gossan outcrops on the south side of a 70 foot ridge extending in a north-east direction on the north side of Hanover Lake. The gossan is the surface expression of a minerali zed zone of disseminated pyrrhotite and chalcopyrite which lies within a sill-like body of diorite overlain by andesite and underlain by granodiorite. The diorite sill and con tained minerals strikes at North 83O East and dips 40 to 50 degrees to the north. Summary Geophysical and geological investigations have revealed that there seems to be only one zone of potential

-10- value. Detailed drilling of this zone has revealed only modest tonnages of fair grade material with the possibility that more tonnage may be revealed in the immediate area with further work. Respectfully submitted, W.P. McGill, M.A., P.Eng. Toronto, Ontario February 26, 1958 STILMAC EXPLORATION SERVICES LIMITED

LEGEND GEOLOGICAL PLAN OF JACOBUS MJNING CORPORATION PLAN PLAN 2 PLAN S TJ GABBRO ELMHIRST TOWNSHIP PLAN 4 PLAN 5 t - PLAN 6 M GR EEN STONE XGREENSTONE-PORPHYRY DIORITE ONTARIO SCALE l" JULY 1957 INDEX MAP ANDESITE SAND AND BOULDERS SURVEY BY FOR CLAIM MAP REFER TO SHEET 6 SWAMP FAULT l200 GEOLOGICAL BOUNDARY 7798/1 4PF13SE8818 b3 947 KABY LAKE

85 100 85 03 85104 85 116 85 114 DELIA LAK 85 101 85 IQ5 85 102 85 106 85 048 85049 85 051 1*5x052 85 053 78 414 4 78 410 78 415 78 411 f ~ 78421 78 419 GREENSTONE X GREENSTONE PORPHYRY GEOLOGICAL PLAN OF CORPORATION JACOBUS MINING DIORITE-ANDESITE COMPLEX ELMHIRST TOWNSHIP SCALE ' l"' 200 GRANODIORITE SURVEY BY FELDSPAR- PORPHYRY GABBRO - DIO RITE SAND AND BOULDERS W 7 GEOLOGICAL BOUNDARY FOR CLAIM MAP REFER TO SHEET 6

i 40 *00 N 86 177 86 179 86181 86 183 30 * OON,, i -. 85 I0a 85 107 85 605 86 164 85 3 85111. t L..--- 20 * DON*' S 85 112 l l 8511/0 ' 85109 10 * 00 N 85053 BL O t 00 85055 85461 85 459 85460 GABBRO L E G E N D GREENSTONE X GREENSTONE PORPHYRY DIORITE CONTACT, OBSERV ED SHEARING, SHEAR ZONE VERTICAL. DIORITE ~ AN DESITE ANDESITE RHYOLITE COMPLEX FAULT, APPARENT STRIKE DISPLACEMENT IN FEET QUARTZ VEINS SWAMP, MARSH AND MUSKEG 85 462 PLAN SHOWING GEOLOGY AND DRILLING JACOBUS MINING CORPORATION DIABASE GRAN O DIORITE TRACTOR BEAR ER ROAD DAM PLAN 1 PLAN 2 PLAN 3 ELMHIRST ONTARIO TOWNSHIP GRANITE FELDSPAR PORPHYRY VOLCANIC PORPHYRY OCCATIONAL SPKS MINERALIZATION LOG ACROSS CREEK GNEISSI C BEDDIN G OUTCROP OF ROCK 30 *OOS PLAN 4 PLAN 5 PLAN 6 \ \ INDEX MAP SCALE l" s 200' JULY 1957 SURVEY BY- SAND AND BOULDERS STREAM, DIRECTION OF FLOW DRILL HOLE FAULT LOCATION FOR CLAIM MAP REFER TO SHEET 6 GEOLOGICAL BOUNDARY 42t i asteria ea 947 KABY LAKE- l 7700/3 2B0

GEOLOGICAL PLAN OF JACOBUS MINING CORPORATION O ELMHIRST ONTARIO TOWNSHIP LEG END PLAN l PLAN 2 PLAN 3 SCALE l"* 200' JULY 1957 l GABBRO PLAN 4 PL A N 6 4 O * OC ANDESITE PLAN 5 SURVEY BY SAND AND BOULDERS SWAMP IN DEX M AP FOR CLAIM MAP REFER TO SHEET 6 l 770I/ 4 63 047 KABY LAKE 230

PLAN 1 PLAN Z PLAN 3 LEGEND GABBRO FAU LT GEOLOGICAL PLAN OF JACOBUS MINING ELMHIRST TOWNSHIP CORPORATION DIORITE GEOLOGICAL BOUNDARY ONTARIO PLAN 4 PLAN 6 DIORITE -ANDESITE COMPLEX SCALE : l * 200' JULY 1957 PLAN 5 f J ANDESITE INDEX MAP FOR CLAIM MAP REFER TO SHEET 6 GRANITE SAND AND BOULDERS SURVEY BY: SWAMP 7702 / 5 63 947 KABY LAKE

Ul o o UJ O O UJ o o oo OD in OD (O V V PLAN V V PLAN \i SCALE CLAIM MAP l"; 1/2 M l LE GEOLOGICAL PLAN OF JACOBUS MINING CORPORATION ELMHIRST TOWNSHIP ON T ARIO 40 * 00 S SCALE l" ~- 200' JULY 1957 LEGEND PLAN 1 PLAN 2 PLAN J 2, (53 DIORITE 9 H GRANITE SURVEY BY PLAN 4 PLAN 5 PLAN 6 P l 5 MM ANDESITE V SAND ft BOULDERS 7 7 DIABASE ET*I SWAMP C3331 FAULT x \ GEOLOGICAL BOUNDARY SULMAC EXPLORATION SERVICES LIMITED INDEX UIAP 7703 X 6

fi 1 PLAN 1 PLAN 4 PLAN a PLAN B PLAN 3 PLAN 6 f J "' LE Q E NP CONTOUR OF MAGNETIC R EADIN OS MAGNETIC LOW MAGNETOMETER READINGS PLAN SHOWING MAGNETOMETER 8URVE' JACOBUS MINING CORPO ELMHIRST ONTARIO TOWNSHIP SCALE - l"' 300' AUG. l NDEX MAP FOR CLAIM MAP REFER TO SHEET 6 SURVEY BY: SULMAC EXPLORATION SERVICES 63 947 KABY LAKE

^j t ft.. T' 3 it 4' r 4' l4"' i. t'±t 401. 44-4 *. U* 404, 4tC 4,, J-M 41* 40k T34 40W 4l* 85 116 j A j 41* 85100 4H 40. 44* 4** 471 /g,u 441 4(4 85 114 li f 414 4* k -1H 447 4kk. -114 w - ^- 1 4- *S4 47* 4O 4)1 1 -' -' / s Cf DELLA Mi *~ 41* 40fe - -- 4S4 47* LAKE 1y 14X,* - 17* 410 4,. 47( 47t 41 p,. 4 W 4**. H/ H4 44, 4-, 441 4.- 4*4, 441 85 101 4(4 441 4*1. * 44 1 414 4*4 41.1,,. 4*4 441 (-t 4 + 1 44J 4*4- ^ 4t* 4** *- 441 4*4 ^'8 4*4 44, (7a Ml ^78 44t 4fefc 4 /t tit 442,,o 4if 4*4 TTI- 1-u 85 441 048 410 4*4 478 41* 44, 855t 478 4.. 44 l 4-1* 4*. "' X Ar~ * ^ } BL.O*00 78 410 78415 78416 85058 78421 11 1 78417 LEGEND PLAN SHOWING MAGNETOMETER SURVEY OVER JACOBUS MINING CORPORATION CONTOUR OF MAGNETIC READINGS MAGNETIC LOW MAGNETOMETER READINGS PROFILE OF E.M. READINGS l". 20* OF DIP ANGLE ELMHIRST TOWNSHIP ONTARIO SCALE - l * 200' JULY 1957 FOR CLAIM MAP REFER TO SHEET 6 DRILL HOLE CONDUCTOR LOCATION SULMAC SURVEY BY. EXPLORATION SERVICES LIMITED 42fc 3StM4B B3 847 KA0Y UAKE

\ l CONTOUR OF MAGNETIC READINGS M A G N E Tl C LOW MAGNETOMETER READINGS PLAN SHOWING MAGNETOMETER SURVEY OVER JACOBUS MINING CORPORATION ELMHIRST TOWNSHIP ONTARIO SCALE : l * 200 JULY 1957 FOR CLAIM MAP REFER TO SHEET 6 SURVEY BY 7806/3 42E136EM4* 63.947 KABY LAKE 2S0

PLAN SHOWING MAGNETOMETER SURVEY OVER JACOBUS MINING CORPORATION ELMHIRST TOWNSHIP ONTARIO LEG END PLAN 1 PLAN t PLAN 3 SCALE : l"" 200' AUG. 1957 CONTOUR OF MAGNETIC READINGS MAGNETIC LOW MAGNETOMETER READINGS PLAN 4 PLAN 6 SURVEY BY: PLAN 6 P J IN DEX MAP.i FOR CLAIM MAP REFER TO SHEET 6 42EI3SE004* 63 947 KABY LAKE 290 78 07/

. 78421 78417 85059 ENLARGEMENT OF AREA SHOWN SCALE- l" * 100' ABOVE TO SHOW ADDITIONAL MAGNETOMETER WORK PLAN SHOWING MAGNETOMETER SURVEY OVER JACOBUS MINING CORPORATION PLAN 1 PLAN z PLAN 3 LE G E N D ELMHIRST TOWNSHIP PL AN 4 PLAN PLAN 6 i r J CONTOUR OF MAGNETIC READINGS M A GN ETIC LOW MAGNETOMETER READINGS ONTARIO SCALE : l" '- 200' AUG. 1957 INDEX MIAP FOR CLAIM MAP REFER TO SHEET 6 SURVEY BY 7810/5 63 B47 KABY LAKE 300

y*-j* l^f- *S\ #6 94 PLAN l.plan 2 X.A j' ( k**./- ^ -( ft* ^*x ;a \06,0, ***'\**** \ ^.*^^f L ^ ~ **. -*H *H ~-*U~ ^ *fj-r^l -*yj 3^ ^ J ^ "* w s 3s,/* \e*5ssj [ f^w\{?ssd3\tt'*rsj\js'f3v l - r ~ T - i - ' 4^1 ^A'AvU^j U^tf L&5' \0*OJtJ\ ttfosj St*i,e, Ijfa vttf A*cJ^ :,/ \0S**4WS4*J 0*-tf; 0SVStt JSf*" PLAN 3 PLAN 4 xtvuj^^li,^l,l, Awi^i \ *^ **"* 79*40 w ^.x 1-^*^5 P&VcV. x L*"*l*^ AV7 i PLAN 6 f^5 ^, ^ W j^w A w ^^^ l ^ V* f A 'A) V) ll****"^.^-^'tftf\ Kftsiiftr tf^t'^vo.v5t. *W*r CLAIM MAP SCALE.!"HX2MILE PLAN SHOWING MAGNETOMETER SURVEY OVER "'US MINING CORPORATION LEGEND ELMHIRST TOWNSHIP CONTOUR OF MAGNETIC READINGS ONTARIO MAGNETIC LOW MAGNETOMETER READINGS SCALE : l". 200' AUG 1957 PLAN l PLAN 2 PLAN 3 PLAN 4 PLAN 6 SURVEY BY ULMAC EXPLORATION SERVICES LIMITED PLAN 5 INDEX MAP 63 917 KABY LAKE 310