first year assessment report on compilation, lake sediment

FIRST YEAR ASSESSMENT REPORT ON COMPILATION, LAKE SEDIMENT SURVEYING AND PROSPECTING ON MAP STAKED LICENSES 015657M & 015658M, CONEY PROPERTY, WHITE

BAY, NEWFOUNDLAND, NTS, 12H/15

By Bob Patey B.Sc. (Hons) and Lloyd King

For

Paul Crocker P.O. Box 67, Cape Broyle, NL, A0A 1P0, Canada

MARCH 31st, 2010

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SUMMARY The 2009 program on the Crocker Claims consisted of an extensive compilation of available data, a 15 sample lake sediment survey and a single day of prospecting and soil sampling. A single highly anomalous (48ppb Au) lake sediment sample was found, along with two lesser anomalous samples 3.2 and 2.1ppb Au. These confirm and improve on anomalies from historical surveys. The small soil grid confirmed an anomalous trend but did not yield gold values as high as a historical anomaly. Very limited prospecting did not find any gold assays above background. A difficult to access region in the eastern half of the property has not seen work in this, or any previous, exploration program. Remote sensing indicates that this area is enriched in potassium and potassic-altered granodiorite is mapped on the edge of it. This area, as well as the area of the lake sediment anomaly, should be the focus of any further work on the property. The reader is to note that during exploration activities on Altius licenses 015927M, 015928M and 015929M by Altius personnel that included Paul Crocker, it was decided at that time to also conduct exploration on the Crocker Claims as well and accordingly, the preparation of this report by Altius staff.

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SUMMARY ............................................................................................................................

TABLE OF CONTENTS

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1.0 INTRODUCTION ............................................................................................................... 4 1.1 Location & Access ................................................................................................................................................. 4 1.2 Physiography & Vegetation .................................................................................................................................. 4 1.3 Property Summary & Claims Status ...................................................................................................................... 4 1.4 Previous Work ....................................................................................................................................................... 7

2.0 GEOLOGICAL SETTING ...................................................................................................... 8 2.1 Tectonic Setting .................................................................................................................................................... 8 2.2 Regional Geological Setting .................................................................................................................................. 9 2.3 Local Geology ...................................................................................................................................................... 11 2.4 Structure & Metamorphism................................................................................................................................ 12

2.4.1 Faulting & Folding ......................................................................................................................................... 12 2.4.2 Metamorphic Grade ...................................................................................................................................... 12

2.5 Metallogeny ........................................................................................................................................................ 12

3.0 WORK PROGRAMS CONDUCTED .................................................................................... 15 3.1 Listing of Personnel ............................................................................................................................................. 15 3.2 Listing of Contractors & Suppliers ...................................................................................................................... 15 3.3 Statement of Expenditures ................................................................................................................................. 16 3.4 Regional Aeromagnetics ..................................................................................................................................... 17 3.5 Regional Radiometrics ........................................................................................................................................ 17 3.6 Government Collected Data Compilation ........................................................................................................... 17 3.7 Mineral Industry Data Compilation .................................................................................................................... 17

3.7.1 Industry Lake Sediment Surveys ................................................................................................................... 17 3.7.2 Industry Soil Geochemistry Surveys .............................................................................................................. 20 3.7.3 Prospecting ................................................................................................................................................... 20

3.8 2009 Lake Sediment Survey ................................................................................................................................ 22 3.9 2009 Prospecting ................................................................................................................................................ 22 3.10 2009 Soil Survey ................................................................................................................................................ 25 3.11 Results ............................................................................................................................................................... 25

3.11.1 Lake Sediments......................................................................................................................................... 25 3.11.2 Prospecting............................................................................................................................................... 25 3.11.3 Soils .......................................................................................................................................................... 25

4.0 CONCLUSIONS & RECOMMENDATIONS .......................................................................... 25

5.0 BIBLIOGRAPHY & DATA REFERENCE LIST ........................................................................ 27

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LIST OF TABLES

Table 1. Listing of Mineral License Details ..................................................................................................................... 4Table 2. Listing of Personnel ........................................................................................................................................ 15

Table 3. Listing of Contractors and Suppliers .............................................................................................................. 15Table 4. Listing of Expenditures ................................................................................................................................... 16

LIST OF FIGURES

Figure 1. Property Location Map ................................................................................................................................... 5

Figure 2. Claim Location Map ........................................................................................................................................ 6Figure 3. Tectonostratigraphic Setting Map ................................................................................................................ 10

Figure 4. Geology Map ................................................................................................................................................. 13Figure 5. Airborne gamma ray potassium ................................................................................................................... 18Figure 6. Historical and new lake sediments. .............................................................................................................. 19

Figure 7. Industry soil geochemistry ............................................................................................................................ 21Figure 8. 2009 Lake sediment survey .......................................................................................................................... 23

Figure 9. Detailed soil geochemistry ........................................................................................................................... 24

LIST OF PLATES

Plate 1. Winter prospecting ........................................................................................................................................... 9Plate 2. The rugged terrain of the Crocker claims. ...................................................................................................... 16

Plate 3. A well earned break on the ice. ...................................................................................................................... 20

LIST OF APPENDICES

APPENDIX 1. 2009 Lake Sediment Sample Data & Assay Certificates ........................................................................ A1

APPENDIX 2. 2009 Rock Sample Data & Assay Certificates ........................................................................................ A3APPENDIX 3. 2009 Soil Sample Data & Assay Certificates .......................................................................................... A5

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1.0 INTRODUCTION This report summarizes the first year work on two mineral licenses in the White Bay area. A compilation of previous work on the property includes lake sediment geochemistry from the National Geochemical Reconnaissance (NGR) Survey and three industry surveys; soil geochemistry from two industry surveys; geological mapping from the GSC, NLGS and a number of industry programs. Field work conducted in 2009 consisted of a lake sediment survey and limited prospecting during which 16 soil samples and 4 rock samples were taken from the Crocker claims.

1.1 Location & Access The claims are located in the highlands of Newfoundland’s Great Northern Peninsula, 6km west of the community of Jackson’s Arm (Figure 1). The nearest large centre is Deer lake, 85km to the southeast, which is the site of the airport servicing western Newfoundland. Deer Lake and the neighboring community of Pasadena can provide services from two different helicopter companies. Both communities boast a broad range of goods and services that may not be available nearer the claims. From Deer Lake, the area can be reached by travelling north on the Trans Canada Highway (Route 1) and turning onto Route 420 (the “Hampden Highway”). The closest road to the property is the well maintained seasonal road to the Cat Arm hydroelectric facility located 3.5 km to the east. Some woods roads run from the Cat Arm Road to within 2.5km of the property. However, the steep and thickly forested slopes in this area prevent these roads from being viable access routes. A logging road accessed from the Hampden Highway near Sops Arm, provides the best access to the property. This road comes within 7.5 km of the western edge of the property near Bursey’s Pond and a trail from there leads to the barren highlands within 5km of the claims. Other than some overgrown cut-lines from previous exploration programs no paths or trails were observed on the property.

1.2 Physiography & Vegetation The terrain of the property is very rugged with an elevation ranging from 370-500m. There are many cliffs and slopes unmanageable by snow machines. Thick spruce forest dominates the hillsides while the flatter ground is largely bog and marsh. The exposed hilltops are typically upland barrens with low shrubs and brush.

1.3 Property Summary & Claims Status

Table 1 below gives license specific information regarding the mineral claims referred to as the “Crocker Claims”. Figure 2 shows the location of the claims.

Table 1. Listing of Mineral License Details

License Number

Number of Claims/Hectares

Issuance Date License Tenure year

Anniversary Date

Work Due Date Work Required ($)

015657M 30/750 2008/11/24 1 2009/11/24 2010/02/22 6,000.00 015658M 6/150 2008/11/24 1 2009/11/24 2010/02/22 1,200.00

Totals 36/900 7,200.00

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Figure 1. Property Location Map

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Figure 2. Claim Location Map

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1.4 Previous Work Below is a brief overview of previous work in chronological order. 1903 Browning Mine produces 149 oz of gold. The Browning Mine operated for only one year and was located 16 Km south of the Crocker claims in Silurian sediments of the Sops Arm Group. Subsequent prospecting in the 1930’s and 40’s discovers several occurrences of gold mineralization within 5km of the Browning Mine. 1977-78 Road building for the Cat Arm Hydroelectric Project greatly improved access to the area. Rumors of gold mineralization discovered in geotechnical drilling begin to circulate. 1980 1:250 000 geology map of the Jacksons Arm area was released by the Newfoundland Geological Survey (Smythe & Schillereff 1981) 1981 Butler and Davenport conducted a lake sediment survey in the area as part of the National Geochemical Reconnaissance (NGR) Survey. 1982 The rumors are confirmed with the first assays of gold values produced from a rock cut on the Cat Arm Road which was discovered by a prospector working for Labrador Mining and Exploration Ltd. (Bruneau, 1984). This is the first indication of gold mineralization west of the Doucer’s valley Fault System. 1986-1990 Varna Gold focused a program on the Apsy granite. This project consisted of prospecting, lake sediment and soil sampling. 1986-1987 BP Selco carried out an extensive exploration program centered on the Doucer’s valley fault zone. Drilling programs found gold in the Apsy Zone the Road Zone, Rattling Brook and Incinerator Trail areas within the Apsy granite. 1988 BP conducted a program of lake sediment sampling and airborne geophysics (MAG, VLF-EM) in the Pittman’s pond area. This is located west of the Doucer’s Valley fault covering the southwestern part of the Apsy granite and its contacts with the Long Range Gneiss and the Devil’s Room Granite. 1991 J.V. Owen of the GSC released a memoir detailing several years of regional mapping in the Long Range Inlier. 1995-1997 Golden Base Resources conducted a soil sampling, VLF and prospecting program in the Pittman’s Pond area.

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2001-2010 Kermode worked a group of claims stretching 17 km along the Doucer’s Valley Fault zone. Exploration work has identified a number of targets over a 15 km strike length. In January 2010 Kermode released a NH43-101 compliant resource estimate for the Apsy, Road, and Beaver Dam Zones in the Jackson’s Arm area. (226 000 Oz @ 0.76g/t; 241 000 Oz @ 0.76g/t; and 28 000 Oz @ 0.85g/t). Summary of industry work conducted on the Crocker Claims. In 1977-78 Chevron took a single lake sediment sample on the property as part of a regional uranium exploration program. Analysis were only conducted for U, Cu, Zn, Ni, Mo. (Laforme and Wober, 1980) The 1988 Pittman’s Pond project of BP Resources included 6 lake sediment samples from the Crocker claims, some mapping and prospecting was done on the property, but no samples were taken. Roughly the southern half of the area of the claims was included in the airborne geophysics (Holmes 1988, GF 12H/15/1046). The 1986 to 1990 program of Varna Gold Inc. included limited prospecting and mapping on the Crocker claims (Dearin and Hepp, 1987); A lake sediment sampling program in the winter of 1989 that took 9 samples in the north half of the property (French, 1989); and a large soil survey which included the eastern edge of the Crocker claims (French, 1988). The 1995 and 1997 programs on the Pittman’s Pond property by Golden Base Resources was located mostly to the south of the Crocker claims but overlaps the southwestern corner. The program consisted of soil geochemistry and prospecting in 1995 (12H/15/1418) and soil geochemistry, prospecting and a VLF survey in 1997 (12H/15/1397).

2.0 GEOLOGICAL SETTING

2.1 Tectonic Setting The Island of Newfoundland provides a cross section of the Proterozoic to Devonian Appalachian Orogen (Figure 3). The orogen has been divided into four major tectonic zones which are named, from west to east, the Humber, Dunnage, Gander and Avalon. To the west the Humber Zone represents the eastern Margin of Laurentia and consists of Paleoproterozoic crystalline rocks overlain by Paleozoic shelf facies rocks. In the east the Avalon Zone represents the western margin of Gondwana, composed of late Precambrian plutonic, volcanic and sedimentary rocks, overlain by Paleozoic platformal sedimentary units. The Rocks of the Gander Zone were formed in the construction and subsequent destruction of a continental margin on the western coast of Gondwana. The Dunnage zone is composed of vestiges of the Iapetus Ocean and later accreted island-arc systems and mélanges that formed as the Iapetus Ocean closed.

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The Humber Zone is separated from rocks of the Notre Dame Subzone of the Dunnage Zone by the Baie Verte-Brompton Line which is a major northeast discontinuity extending from the Port-au-Basques area northeastwards through Grand Lake and the Baie Verte Peninsula and delineates a complete geological, geochemical, structural and geophysical break between rocks of continental Laurentia and those forming the geological framework of the Iapetus Ocean. The basement rocks of the Humber zone are composed of Proterozoic gneisses of mainly granitic to tonalitic composition which form the core of the Great Northern Peninsula. A Cambrian to Ordovician cover sequence including platformal carbonates was deposited on the gneissic core and subsequently thrust westward onto the basement during the Taconic Orogeny.

Plate 1. Winter prospecting

2.2 Regional Geological Setting

The Crocker Claims are located within the Long Range Inlier, which is the Proterozoic core of the Humber Zone, near its southeastern boundary and the Cambro-Ordovician sedimentary cover sequence.

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Figure 3. Tectonostratigraphic Setting Map

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The bulk of the Long Range Inlier is composed of granulite to amphibolite grade gneiss derived from protoliths at least 1550 Ma old (Owen 1991). Compositionally the gneiss is dominantly quartzofeldspathic ranging through quartz dioritic, tonalitic, granodioritic and granitic compositional variants. A minor portion of the Long Range Gneiss is of pelitic, quartzite, mafic and metacarbonate composition making up folded bands within the quartzofeldspathic gneiss. The long range Gneiss has been intruded by a number of Grenvillian aged granitoids which collectively underlie approximately 35% of the Inlier. In the area west of White Bay two of these intrusions, the Apsy and Main River plutons occupy the eastern margin of the Inlier. The Apsy granite has been investigated by Tuach and Saunders who describe the granite as having a variable composition ranging from tonalitic to granitic. The Long Range gneiss and the Grenvillian granitoids are cut by a suite of ~613Ma mafic to ultramafic dykes referred to as the Long Range Dykes. Overlying the gneissic and plutonic rocks of the Inlier in the White Bay area is a sequence of Cambrian to Ordovician sediments which have recently been correlated with the well exposed and much larger cover sequences on the north and west sides of the Inlier (Kerr and Knight 2004). This package has been compressed by a number of west verging thrust faults. The 7 km wide area between the Aspy and Main River Plutons is underlain by the Devil’s Room Granite, which at 398Ma is the youngest plutonic rock in the area. The Devil’s Room Granite is correlated with the Gull Lake Intrusive Suite on the opposite side of the Doucer’s Valley Fault. This indicates that at least some of the movement of the fault postdates the granite and gives some indication of the extent of movement in that time. East of the Doucer’s Valley Fault is a disrupted sequence of Cambro-Ordovician rocks emplaced during the Taconic Orogen comprised of deep water marine siliciclastics and sections of oceanic crust transported in a westward fashion across the Laurentian Margin. Collectively, these rocks have been called the Southern White Bay Allochthon (“SWBA”). The eastern most part of the area proximal to the shores of White Bay is comprised of rocks assigned to the Silurian Sop’s Arm Group. Felsic and lesser mafic volcanics, conglomerates and siliciclastics rocks are inferred to unconformably overlie the SWBA but primarily faulted contacts are noted.

2.3 Local Geology

The area of the Crocker Claims was included in Owen’s (1991) map of the Long Range Inlier, for which mapping in this area was conducted with helicopter stops (Figure 4). The area within 2-3 hundred meters of the eastern edge of the property was prospected by Varna in 1987, and the southwest corner was worked by Golden Base in 1997-8. This description of the property is taken from these sources with the addition of new material from our field program.

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The Crocker claims straddle the contact between the Grenvillian Apsy pluton and the Long Range Gneiss. The eastern 3/4 of the property is underlain by the Apsy pluton, a foliated multiphase felsic intrusion ranging from tonalitic to granitic composition but dominantly granodioritic. Within the claims the mafic component of the granite is mainly biotite. The western quarter of the claims is underlain by the Long Range Gneiss, dominantly of quartzofeldspathic composition with a thick band of supracrustal gneiss with thin bands of amphibolites.

2.4 Structure & Metamorphism

2.4.1 Faulting & Folding Within a few kilometers of the eastern edge of the Inlier the structure is dominated by linear features parallel to that edge (025⁰) and at 30⁰ to it (055⁰). These features are interpreted by Owen to be Paleozoic in age and associated with strike slip movement on the Doucer’s Valley Fault System. The fault system may have a long lived and complex history of reactivation. There is evidence of both dextral strike slip and westward thrust faulting.

2.4.2 Metamorphic Grade The metamorphic grade of the Long Range Inlier varies from granulite grade in the southwest to amphibiolite and greenschist grade in the northeast. Superimposed on this is a retrograde metamorphism intensifying towards the eastern edge of the Inlier. In the western White Bay area, variations in grade are expressed in the change of mafic minerals from hornblende to biotite to partial replacement of biotite by chlorite and epidote as the eastern margin of the Inlier is approached.

2.5 Metallogeny The White Bay area is underlain by Proterozoic to Devonian extrusive, intrusive, gneissic and sedimentary rocks, and hosts at least three types of mineral deposits (after Saunders, 1991): (1) mesothermal Au (2) carbonate-hosted Pb (3) granite-hosted F and Mo The Crocker claims were staked for their potential to host gold in an orogenic environment and so only this type of mineralization is described here. Gold mineralization in the area occurs in mesothermal-style quartz and quartz-carbonate veins. To the east and southeast these veins occur in the sediments of the Sops Arm Group, and the platformal sediments. West of the Doucer’s Valley fault they occur in the Cambro-Ordovician platformal sediments and in the Grenvillian plutons. In addition to gold they also contain minor amounts of base metal sulfides (pyrite, arsenopyrite, chalcopyrite, galena, sphalerite). Iron carbonate alteration is associated with some of the Au-bearing veins (Kerr, 2006a). The Au mineralization is low grade, although there are localized occurrences of high-grade concentrations (up to 315 ppm Au). Au is regionally correlated with Ag, and locally correlated with Cu or Pb. The vein system may be related to regional structures or to Devonian intrusions (Gull Lake Intrusive Suite, Devil’s Room Granite).

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Figure 4. G

eology Map

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At the Viking prospect, 18Km to the south of the Crocker Claims, Northern Abitibi has found considerable thicknesses of gold mineralization within the Main River Pluton (57m @ 2.6g/t and 23.0m @ 5.1g/t gold associated with bonanza grade veins (0.5m @ 218.8g/t, 0.5m @ 176.20g/t and 0.9m @ 119.7g/t gold). The mineralization occurs along the Thor trend which is a north-south oriented zone of gold mineralization that is at least 1000m long and varies in width from 30 to 60m. The lower grade mineralization occurs in carbonate altered porphyritic granite containing sheeted and stockwork quartz veins. The bonanza grades are found in quartz iron-carbonate veins that carry minor sulphides mainly pyrite-galena-chalcopyrite-sphalerite and visible gold. The Thor trend is north-south oriented zone that is at least 1000m long and varies in width from 30 to 60m In the Jackson’s Arm area, gold mineralization has been found in the Apsy Pluton and in the overlying sediments. Recent work by Kermode has defined resources at three locations where it is associated with the contact between granites and sediments and also occurs within the granite near the contact. In addition to the showings worked by Kermode, there are some occurrences (North Boundary, Fly Camp Pond, Rattling Brook, Camp Pond Brook and CD #3, NMI #’s 012H/15 Au004, 012H/15 Au016, 012H/15 Au015, 012H/15 Au003, 012H/15 Cu003, 012H/15/Au 016) located near the western edge of the pluton and in the Long Range gneiss. In these locations, gold occurs in quartz veins with sulphides (pyrite, chalcopyrite) calcite, and graphite. Within 300m of the southern boundary of the property, Golden Base produced some good assays: a angular float block of pyritized granite yielded 1767ppb Au; a subangular quartz boulder grading as high as 2256ppb Au with 2-3% pyrite and sericite and chlorite on fractures; A chalcopyrite bearing quartz vein in an amphibolites dike grading 3.9% Cu and 269ppb Au. (see Figure 4 for locations). Alteration and gold mineralization within the Apsy pluton has been studied by Tuach and Saunders (1988) who have found two stages of hydrothermal alteration. The first stage is a pervasive potassic alteration which is characterized by the formation of microcline and sericite, in places converting the originally tonalitic to granodioritic rock of the pluton into granite. The second phase of mineralization is localized along fractures and veins crosscutting the unaltered host rock and the first stage of alteration. This later mineralization produces veins of microcrystalline quartz and albite with carbonate and sericite. The albite veins can be isolated or occur in sheeted swarms that reach up to 12m in width. The same assemblage can be found in the matrix of mineralized hydrothermal breccias. The highest gold values are associated with the albitic veins.

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3.0 WORK PROGRAMS CONDUCTED The 2009 work program consisted of research and compilation and a two day field program. All previous exploration reports on the property and the surrounding area was examined and all data from within the property was digitized The field program consisted of a 15 sample lake sediment survey in April and a single day of prospecting and soil sampling in August.

3.1 Listing of Personnel

Table 2. Listing of Personnel

Vendor Hometown Mandays Activities Lloyd king Goulds 4 lake sediment sampling, prospecting, soil

sampling, planning and logistics Paul Crocker Cape Broyle 2 lake sediment sampling, prospecting, soil

sampling Gerald Bursey Buchans 1 prospecting, soil sampling

Jason Flight Goulds 1 prospecting, soil sampling Bob Patey St. John’s compilation and report writing

Merv Davis Westport 1 lake sediment sampling Chris Davis Westport 1 lake sediment sampling

3.2 Listing of Contractors & Suppliers

Table 3. Listing of Contractors and Suppliers

Vendor Location Services/Goods Provided ALS Canada Ltd. North Vancouver, BC geochemical analysis

Eastern Analytical Springdale, NL geochemical analysis River Sea Motel Pollards Point, NL accommodations and meals

Universal Helicopters Pasadena, NL helicopter charters Clarenville Rentals Clarenville, NL skidoo rental

Aliant Telecom St. John’s, NL cell phone service Ford Credit Canada Leasing Co Calgary, AB truck rental

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3.3 Statement of Expenditures

Table 4. Listing of Expenditures

Expenditure 015657M 015658M Accommodations 416.67 83.33 Analytical Charges 547.00 671.00 Helicopter Charter 2,000.00 400.00 Compilation and report writing 2,500.00 500.00 Meals 266.67 53.33 Skidoo rental 266.67 53.33 Truck Rentals 333.33 66.67 Subtotal 6,330.33 1,827.67 15% overhead 949.55 274.15 Total 7,279.883 2,101.82

Plate 2. The rugged terrain of the Crocker claims.

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3.4 Regional Aeromagnetics An examination of old GSC aeromagnetic data reveals some of the major units in the area but gridding is too coarse to reveal much on the scale of the Crocker Claims. Generally the Apsy pluton has a low magnetic signature in the north half with a stronger signal in the south near the contact with the Devil’s Room Granite, which manifests as a magnetic low. A sharp magnetic low marks the eastern edge of the Long Range Inlier and may reflect the Doucer’s Valley Fault or the platformal sediments on the eastern edge of the Inlier. To the west of the claims is a sharp magnetic break paralleling the Doucer’s Valley Fault that forms the edge of a long magnetic high. The Crocker Claims lie in the middle of the Apsy granite where the magnetic response is moderate. A local magnetic high occurs in the middle of the Crocker Claims.

3.5 Regional Radiometrics GSC airborne radiometrics (Carson et al 2003) have a line spacing of 805m and are thus too coarse to reveal many details within the Crocker Claims (see Fig 5). Regional patterns however reveal some interesting features. Considering the microcline and sericite association with mineralization, described by Tuach and Saunders, it is appropriate to look for high potassium gamma values in areas of known mineralization. There are potassium highs at the locations of Kermode’s Beaver Dam and Road Zone which extend to cover the areas mapped by Kermode as strongly altered granite. There is no potassium high at the Apsy zone where the mineralized granites are overlain by platformal sediments. At the Viking zone there is a strong linear potassium anomaly at the site of the recent drilling. The anomaly is oriented north south just as the Thor vein is. This linear anomaly is part of a long linear trend which runs north to a point just west of the Crocker Claims. There is an isolated potassium high in the western quarter of the Crocker Claims and a high on the east end that is part of a 6km long NE trending linear.

3.6 Government Collected Data Compilation In additional to the regional geophysics and mapping programs discussed above, the only government data on the area is the National Geochemical Recconniasance (NGR) lake sediment database, for which only one sample was collected in the Crocker Claims. This sample yielded no gold above detection limits. NGR samples from the area are included in Figure 6.

3.7 Mineral Industry Data Compilation 3.7.1 Industry Lake Sediment Surveys

The BP survey of 1988 had six samples from the Crocker Claims with two having anomalous values of 2ppb Au. Varna’s 1989 survey had nine samples from the Crocker Claims. The highest values were 21, 6 and 5 ppb Au. The single sample form the Chevron survey was not analyzed for gold. All available lake sediment gold values are plotted in Figure 6.

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Figure 5. Airborne gamma ray potassium

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Figure 6. H

istorical and new lake sedim

ents.

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3.7.2 Industry Soil Geochemistry Surveys Soil sample data was digitized from the reports of two historical soil geochemistry surveys which sampled the Crocker claims. Of the two Golden Base soil surveys that were completed in 1995 and 1997, only the latter one has maps good enough to extract sample locations from. A total of 291 samples from the Golden Base survey came from the Crocker Claims. The highest gold value was 152ppb with a total of five above 75ppb. 136 samples were digitized from the Varna soil survey. The highest value was 91ppb. Samples from both surveys are plotted in Figure 7.

Plate 3. A well earned break on the ice.

3.7.3 Prospecting

Prospecting by Varna found k-feldspar in a vein which is clear evidence of potassic alteration, near the eastern boundary of the Crocker claims. Prospecting by Golden Base found three generations of quartz veins in the area. It is not clear which ones were found on the Crocker claims. As described above anomalous gold was found in boulders and outcrop near the southern boundary of the property. Elevated gold and high 3.9% copper was found in a vein in an amphibolites dike a few hundred meters south of the property (see Figure 4).

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Figure 7. Industry soil geochem

istry

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3.8 2009 Lake Sediment Survey The 2009 work program on the Crocker claims consisted of two one day programs. On April 25th there was a lake sediment sampling and prospecting visit, and on August 9th there was a helicopter supported prospecting and soil sampling trip. The lake sediment survey was conducted via skidoo access using a logging road and a trail leading to a point some 5 km west of the property, as marked on Figure 2. A total of 16 samples were taken. The procedure that was followed was:

• choose a location on each pond as close to the center or at the site where a river was flowing in or out of the lake

• a hole was drilled in the ice using a gas powered ice auger and the hole was then cleaned of any ice chips and debris

• a clean torpedo sampler was used to obtain the sample through the ice making sure the sampler was properly cleaned from the sample before

• once the sample was slowly retrieved, the sampler with sample was laid out on the ice and using a clean scoop, an aliquot of material taken and placed in a plastic bag

• when insufficient sample size was encountered, the same site was resampled multiple times until a sufficient amount of sample was obtained

• the sample would then be double bagged and sealed with tape • all tools and samplers were then cleaned prior to mob to next station

The samples were sent to Eastern analytical in Springdale for preparation and then on to ALS Chemex in North Vancouver for analysis using the ME-MS41 Ultra Trace and Au-St43 packages. The ME-MS41 package uses an aqua regia digestion and a combination of ICP-AES and ICP-MS analytical methods to achieve a <1ppm level of detection for most elements. The Au-ST43 package is a gold only analysis with a detection limit of 0.0001ppm or 0.1ppb. As a quality control measure standardized samples were included in the shipment to the labs. The standard used was LKSD-4 from the Canadian Certified Reference Materials Project (CCRMP). Sample numbers and locations are shown on Figure 8 and sampling information as well as assay certificates is included in Appendix 1.

3.9 2009 Prospecting Prospecting was carried out while conducting the lake sediment survey on April 25th 2009 and with helicopter support on August 9th 2009. See Appendix 2 for sample descriptions and for analytical certificates. Samples are plotted on Figure 4. The two Samples taken in April were sent to Eastern Analytical for preparation and then on to ALS Chemex for analysis by the ME-MS41 Ultra Trace package. The 2 samples taken in August were sent to Eastern Analytical for preparation and analysis. Prospecting was hampered by the rough terrain and thick forest. Steep sided valleys did not allow the space necessary for safe helicopter access so prospecting was limited in scope and duration.

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Figure 8. 2009 Lake sedim

ent survey

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Figure 9. D

etailed soil geochemistry

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3.10 2009 Soil Survey A small 16 sample soil grid was established to try to replicate the 86 and 83 ppb Au soil anomalies reported by Golden Base in 1997 (see Figure 7). The grid consisted of two 200m long lines sampled at 25m intervals. Soil samples were taken from the B horizon bagged and sent to Eastern analytical for gold + 30 ICP analysis. Samples collected from this program and Golden Base’s samples are plotted on Figure 9. Appendix 3 contains soil sample information as well as analytical certificates.

3.11 Results

There is only a single highly anomalous sample (#558 with 48ppb Au has more than ten times the next highest sample) which together with some lesser anomalies defines an area roughly centered on the southwest corner of license # 15658M.

3.11.1 Lake Sediments

The ultra trace analytical package used on the lake sediment samples allows for a close look at the relationship between gold and the other elements. There is only a single highly anomalous sample (#558 with 48ppb Au has more than ten times the next highest sample). It is interesting to note that this sample also has the highest values of As, Bi, Cu, Sb and Te. This indicates that these elements may serve as pathfinders for gold in this environment. Analytical results for the two standard samples (sample numbers 550 and 600) were very close to each other. Unfortunately the published analytical data for this standard is not for an aqua regia digestion and cannot be directly compared with our results.

Prospecting was limited to the western third of the property and coverage was sparse within that area. The geology encountered generally agrees with the mapping of Owen. In the area of the detailed soil survey, the rocks are granitic except for a small subcropping of amphibolite with a 10cm clot of magnetite. A pyrite bearing quartz vein cutting this was sampled (# 3705) but yielded no gold.

3.11.2 Prospecting

Soil sampling did not successfully duplicate the Golden Base soil values, the lesser highs of the new samples roughly parallel them. Allowing for the locational inaccuracy of the digitized Golden Base sample locations, the highest values for both surveys may plot over each other.

3.11.3 Soils

4.0 CONCLUSIONS & RECOMMENDATIONS

Further work on the Crocker Claims should include more extensive prospecting and attempts to replicate other historic soil anomalies. The eastern part of the Crocker claims is thus far underexplored, although there are indications of alteration in that area. Airborne radiometrics shows a potassium high in this area and Varna prospecting has found altered granite including vein hosted K-feldspar in the area.

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5.0 BIBLIOGRAPHY & DATA REFERENCE LIST Cullen, M.P., Kennedy, C., Harrington, M, and Hilchey, A., 2009: Technical Report on Mineral Resource Estimate Jacksons Arm Gold Project, White Bay, Newfoundland and Labrador., Mercator Geological Services, for Kermode Resources Ltd. Carson, J.M., Holman, P.B., Ford, K.L., Grant, J.A., and Shives, R.B.K. 2003: Airborne Gamma Ray Spectrometry Compilation, Island of Newfoundland, Newfoundland and Labrador; geological Survey of Canada, Open File 4463, scale 1:1 000 000. Dearin, C. and Hepp, M.A., 1987: Second year assessment report on geological and geochemical exploration for licence 2727 on claim blocks 4281-4282, licence 2728 on claim block 4283, licence 2729 on claim block 4284, licence 2768 on claim block 4271, licence 2798 on claim block 4272 and licences 2769-2770 on property in the Jacksons Arm area, White Bay, western Newfoundland. Varna Resources Incorporated, Newfoundland and Labrador Geological Survey, Assessment File 12H/15/0976, 106 pages. French, V.A., 1988: Second year assessment report on geological and geochemical exploration for licence 2688 on claim block 4351, licence 2689 on claim block 4352, licence 2722 on claim block 4350, licence 2723 on claim block 4349, licence 2727 on claim blocks 4281-4282, licence 2728 on claim block 4283, licence 2729 on claim block 4284, licence 2768 on claim block 4271, licence 2769 on claims 15453-15454, licence 2770 on claims 15454-15455 and licence 2798 on claim block 4272 in the Jacksons Arm and Great Coney Arm areas, Newfoundland. Varna Resources Incorporated, Newfoundland and Labrador Geological Survey, Assessment File 12H/15/1007, 250 pages. French, V.A., 1989: First year assessment report on geological and geochemical exploration for licence 3374 on claim block 5927 and licence 3375 on claim blocks 5928-5929 in the Rattling Brook West area, western Newfoundland. Varna Gold Incorporated, Newfoundland and Labrador Geological Survey, Assessment File 12H/15/1108, 37 pages. Graves, R.M.1997: First year assessment report on prospecting and geochemical exploration for licence 4545m on claims in the Pittmans Pond area, White Bay area, Newfoundland. Golden Base Resources [of Canada] Limited, Newfoundland and Labrador Geological Survey, Assessment File 12H/15/1418, 42 pages. Graves, R.M.1998: Second year assessment report on geological, geochemical and geophysical exploration for licence 4545m on claims in the Pittmans Pond area, White Bay, western Newfoundland. Golden Base Resources [of Canada] Limited, Newfoundland and Labrador Geological Survey, Assessment File 12H/15/1397, 74 pages. Holmes, J.M. and Oneschuk, D.,1989: First year assessment report on geological, geochemical and geophysical exploration for licence 3202 on claim blocks 5613-5614 in the Main River North area, Newfoundland, 2 reports. BP Resources Canada Limited, Newfoundland and Labrador Geological Survey, Assessment File 12H/15/1046, 42 pages. Kerr, A., 2004: An overview of sedimentary-rock-hosted gold mineralization in western White Bay (NTS map area 12H/15). In Current research, Edited by C. P. G. Pereira, D. G. Walsh and B. F. Kean, Government of Newfoundland and Labrador, Department of Mines and Energy, Geological Survey, Report 4-1, pages 23-42. Kerr, A. and Knight, I., 2004: Preliminary report on the stratigraphy and structure of Cambrian and Ordovician rocks in the Coney Arm area, western White Bay (NTS map area 12H/15). In Current research, Edited by C. P. G. Pereira, D. G. Walsh and B. F. Kean, Government of Newfoundland and Labrador, Department of Mines and Energy, Geological Survey, Report 4-1, pages 127-156. Kerr, A., Knight, I. and McCuaig, S., 2004: Western White Bay : stratigraphy, structure, gold mineralization and Quaternary history. Geological Association of Canada, Newfoundland Section, Field Trip Guidebook, 89 pages.

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Laforme, G.W. and Wober, H., 1978: Summary report on geochemical and geophysical surveys for licence 1079-1081 on claim blocks 1072-1074, on the Great Northern Peninsula, Newfoundland. Chevron Canada Limited and Chevron Standard Limited, Newfoundland and Labrador Geological Survey, Assessment File 12I/09/0128, 49 pages. Owen, J.V.1990: Geology, Long Range Inlier, Newfoundland. Geological Survey of Canada, "A" Series Map no. 1764A. Owen, J.V.1991: Geology of the Long Range Inlier, Newfoundland. Geological Survey of Canada, Bulletin no. 395, 89 pages. Saunders, C.M. and Tuach, J. 1988: K-feldspathization, albitization and gold mineralization in granitoid rocks: the Rattling Brook alteration system, western White Bay, Newfoundland. In Current research, Edited by R. S. Hyde, D. G. Walsh and R. F. Blackwood, Government of Newfoundland and Labrador, Department of Mines, Mineral Development Division, Report 88-01, pages 307-317.

Altius Resources Inc. ….A1

APPENDIX 1. 2009 Lake Sediment Sample Data & Assay Certificates


Sample Number Type Projection Easting Northing

Water depth colour

Gps error

585 lake UTM Nad27 Zone 21 505727 5523762 2m brown 1
















bpatey

Text Box

bpatey

Text Box


APPENDIX 2. 2009 Rock Sample Data & Assay Certificates


Sample Number

License Sampler Easting Northing Date Medium Sample Condition

Rock Type

Description

3704 015658M J.F. 503583 5523588 09-Aug-09 Outcrop Partly Weathered

3705 015658M P.C. 503480 5523529 09-Aug-09 Boulder Fresh Quartz vein Py and Mt associated with Quartz vein in Amphibolite dike

3603 015658M PC, LK, MD, CD

503686 5523523 25-Apr-09 Outcrop strongly weathered

mafic gneiss? XRF minor Zn, high Fe, Ti

3604 015657M PC, LK, MD, CD

504469 5523122 25-Apr-09 Outcrop partly weathered

granitic? XRF minor Zn, high Ti


APPENDIX 3. 2009 Soil Sample Data & Assay Certificates


Sample# easting northing error Property Datum licence # Date

dd_mm_yy Sampler

1361 503667 5523583 2 White Bay N27 15658 25/08/09 lk 1362 503642 5523583 2 White Bay N27 15658 25/08/09 lk 1363 503620 5523575 White Bay N27 15658 25/08/09 lk

1364 503596 5523563 White Bay N27 15658 25/08/09 lk 1365 503570 5523555 White Bay N27 15658 25/08/09 lk 1366 503545 5523553 White Bay N27 15658 25/08/09 lk 1367 503519 5523539 White Bay N27 15658 25/08/09 lk

1368 503494 5523527 White Bay N27 15658 25/08/09 lk 1369 503661 5523635 White Bay N27 15658 25/08/09 PC 1370 503634 5523624 White Bay N27 15658 25/08/09 PC 1371 503609 5523591 White Bay N27 15658 25/08/09 PC

1372 503589 5523586 White Bay N27 15658 25/08/09 PC 1373 503555 5523581 White Bay N27 15658 25/08/09 PC 1374 503537 5523587 White Bay N27 15658 25/08/09 PC 1375 503491 5523546 White Bay N27 15658 25/08/09 PC

1376 503460 5523556 White Bay N27 15658 25/08/09 PC


Sample# Type Physiography Vegetation Drainage Activity Colour Composition Horizon

1361 Soil Hills Spruce/Fir Moist None Brown sand/gravel B

1362 Soil Hills Spruce/Fir dry None Brown silt/sand B 1363 Soil Hills Spruce/Fir dry None Brown sand/gravel B 1364 Soil Hills Spruce/Fir Moist None Brown sand/gravel B 1365 Soil Hills Spruce/Fir Moist None Brown silt/sand B

1366 Soil Hills Spruce/Fir Moist None Brown silt/sand B 1367 Soil Hills Spruce/Fir Moist None Brown silt/sand B 1368 Soil Hills Spruce/Fir Moist None grey silt/sand B 1369 Soil Hills Spruce/Fir Moist None Brown Sand B

1370 Soil Hills Spruce/Fir Moist None Brown Sand B 1371 Soil Hills Spruce/Fir Moist None Brown Sand B 1372 Soil Hills Spruce/Fir Moist None Brown silt B 1373 Soil Hills Spruce/Fir Moist None Brown silt B

1374 Soil Hills Spruce/Fir Moist None Brown silt B 1375 Soil Hills Spruce/Fir Moist None Brown silt B 1376 Soil Hills Spruce/Fir Moist None Brown silt B

first year assessment report on compilation, lake sediment

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