first year assessment report

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001M/10/0940

Ackley Poly-Metallic Property

THIRD YEAR ASSESSMENT REPORT ON THE ACKLEY

POLY-METALLIC PROPERTY

GRAND LE PIERRE, NEWFOUNDLAND

Licenses:

020380M, 020456M, 020460M and 020464M

NTS Mapsheets:

01M/10

Dean Fraser/Deirdre Griffin

Prospecting and ground magnetometer surveys

Work performed during August 2015

November 25, 2015

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SUMMARY

The Ackley Property consists of 48 contiguous claims covering a 1200 hectare area and held under

mineral licenses 020380M, 020456M, 020460M and 020464M held 100% by D. Fraser and D. Griffin.

The claims are highly prospective for W, Sn, Mo, U, F and REE’s with numerous showings and

prospects identified from historic exploration. The property, located near the northern tip of the Burin

Peninsula, can be accessed an excellent network of registered ATV trails from a paved highway

running through the coastal community of Grand Le Pierre. The southernmost edge of the claims is

located approximately two kilometers from the main highway.

The Ackley Property contains 19 prospects, showings and indications of molybdenum, tungsten, tin

and fluorite dominantly hosted in greisens veins and associated alteration systems. The prospects are

mainly hosted within Devonian granites and boarder phases thereof that have been closely compared

to the Mount Pleasant Devonian granites located in New Brunswick (host to numerous W-Mo deposits

and Sn-In deposits) and the Cornwall and East Kempville granites located in Nova Scotia (host to Sn

and Sn-U deposits respectively). The property also contains some of the highest values in lake

sediments for rare earth elements (REE’s) along with uranium and thorium noted anywhere on the

Island of Newfoundland.

Three high priority prospects are located on the property. These include the Anesty Hill South (Mo-

Sn-F), the Dick’s Pond West (Sn-F-W) and the Moulting Pond South (Sn-F-W) prospects. Based on

Government data, lake sediment geochemistry within the claims show highly elevated multi-element

geochemistry for uranium, thorium, rare earth metals and fluorine. A large linear magnetic low

outlined from airborne geophysical surveys defines a pervasive contact alteration system between

Devonian Granite and Proterozic mafic and felsic volcanics.

The bulk of work in the area was performed in the early 1980’s by Rio Algom/Esso Minerals,

Saarberg-Interplan Exploration and Clode Sound Minerals. Work on the claims since 2010 has been

performed by the current claims holder.

The 2014/2015 program included the completion of over 17 kilometers of high resolution ground

magnetometer surveys along with four man days of prospecting in specific areas of the claims.

Results of this work proved promising and additional work is warranted.

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TABLE OF CONTENTS

Page

SUMMARY ............................................................................................................................... ii

I. INTRODUCTION

Location and Access ............................................................................................................1

Land Tenure, Location and Access ....................................................................................1

Physiography ......................................................................................................................1

Previous Exploration Work .................................................................................................1

II. GEOLOGY

Geology and Lake Sediment Geochemistry .......................................................................4

III. EXPLORATION PROGRAM 2010/2011 Exploration Program .......................................................................................14

July 2010 Property Visit ..............................................................................................14

August 2010 Property Visit .........................................................................................14

October 2010 Property Visit ........................................................................................14

April 2011 Property Visit ............................................................................................14

2013 Exploration Program ................................................................................................17



Ground Magnetometer Survey ....................................................................................17

Prospecting ..................................................................................................................22

IV. CONCLUSIONS AND RECOMMENDATIONS ..........................................................23

LIST OF FIGURES

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Figure 1: Claims Location and Showings Map............................................................................2

Figure 2: Simplified Property Geology Map with Prospects .......................................................5

Figure 3: Yb Lake Sediment Geochemistry Map ........................................................................6

Figure 4: Fl Lake Sediment Geochemistry Map ..........................................................................7

Figure 5: La Lake Sediment Geochemistry Map .........................................................................8

Figure 6: Mo Lake Sediment Geochemistry Map ........................................................................9

Figure 7: Sm Lake Sediment Geochemistry Map ......................................................................10

Figure 8: Tb Lake Sediment Geochemistry Map .......................................................................11

Figure 9: Th Lake Sediment Geochemistry Map .......................................................................12

Figure 10: U Lake Sediment Geochemistry Map ......................................................................13

Figure 11: Zones of Radioactivity .............................................................................................15

Figure 12: Ground Total Field Magnetics Survey .....................................................................16

Figure 13: 2015 Work Program Areas .......................................................................................18

Figure 14: Generalized Geology Map........................................................................................19

Figure 15: 2015 Ground Total Field Magnetics Survey ............................................................20

Figure 16: Ground Total Field Magnetics Survey (Google Earth) ............................................21

Figure 17: Photo of Mineralized Sample ...................................................................................16

LIST OF TABLES

Table 1: License numbers and status ............................................................................................1

Table 2: Rock sample locations ..................................................................................................17

APPENDIX A: Expenditures and Distribution by License Number

APPENDIX B: Quest Rare Metals Field Report and Data

APPENDIX C: Sample Location Map

APPENDIX D: Geophysical Logistics Report

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I. INTRODUCTION

The following report details exploration work performed during 2014/2015 on licenses in the Grand

Le Pierre region of southern Newfoundland. This report covers assessment expenditures for mineral

exploration licenses 020380M, 020456M, 020460M and 020464M all within National Topographic

System Mapsheet 01M/10.

Land Tenure, Location and Access

The property consists of 48 mapped staked claims held under 4 minerals licenses all 100% owned by

D. Fraser/Deirdre Griffin. Table 1 outlines the status of the claims.

License # of Claims Staked Date Work Due

020380M 23 10 July 2012 08 Oct 2015

020460M 7 21 Aug 2012 19 Nov 2015

020456M 11 21 Aug 2012 19 Nov 2015

020464M 7 22 Aug 2012 20 Nov 2015 Table 1: License numbers and status

The Ackley Poly-Metallic Property is located towards the southeast coast of Newfoundland and near

the northern western tip of the Burin Peninsula. It is located just northwest of the small town of Grand

Le Pierre on the north side of Fortune Bay, NL (See Figure 1). Access to the property is excellent and

can be gained by proceeding along the paved Burin Peninsula Highway (Route 210) from the Goobies

turnoff on the main Trans Canada Highway. Route 210 will connect with Route 211 which runs

through the town of Grand Le Pierre. The property can then be accessed by a well maintained ATV

trail from Route 211. The largest hub located near the project is Clarenville, NL, located

approximately 80 km northeast.

Physiography

The physiography of the Grand Le Pierre area can be described as rugged and of moderate to high

relief. The area is characterized by barren rocky and rolling hills cut by deeply incised valleys and

some lower boggy areas. Generally, it is sparsely wooded with abundant small and larger ponds

scattered throughout the claims. Rock exposure in the area is excellent.

Previous Exploration Work

Previous work on the property was conducted by numerous companies mainly for tin, tungsten and

fluorine as well as some uranium exploration. This work is supported by detailed geology mapping

and geochemical work by the Geological Survey of Newfoundland as well as regional geophysical

surveys sponsored by the Geological Survey of Canada. The following lists work performed by

various Companies.

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Figure 1: Claims Location and Showings Map

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American Zinc Co. 1953-54

001M/0032 and 001M/0042 This work consisted of prospecting along the margins of the Ackley Granite, mainly for fluorite but

also for other base metals. Several fluorite showing were investigated and a molybdenum showing

was discovered south of Amnesty Hill (Dobbel et al., 1953). Further work was recommended on the

molybdenum occurrence.

Esso Minerals Canada 1981-82

001M/0196 and 001M/0207 Esso’s exploration in the area was strictly focused on tin and tungsten to the north and northeast of the

current property. Esso performed geochemical surveys and some limited diamond drilling. They did

discover Sn, W and Mo showings in the Moulting/Sage Pond area that are listed in the MODS

database (O’Sullivan, 1983). The company subsequently optioned the property to Rio Algom. There

are several heavy metal concentrate tin anomalies found by Esso that remain have unexplained.

Saarberg Interplan 1981-82

001M/10/0205 Uranium was the main focus for exploration with this company but they also assayed for tin and

tungsten. This exploration was focused on the peralkaline granite of the Cross Hills Intrusive

Complex. Numerous zircon anomalies were discovered with several being 1 – 2% (samples 11, 14

and 19) (Hopfengaertner, 1982). This work was carried out directly on the claims of interest so the

geochemical results were tabulated in Excel and the sample locations digitized. Some of the samples

could not be mapped as parts of the file were illegible or the sample reference could not be found on

the map filed with the assessment report. One such sample (# 530) was anomalous (1.93% Zr, 1640

ppm Nb) and is only referenced to be located in “Cross Hills, Central”.

Rio Algom Exploration Ltd. 1984-85

001M/10/0226 and 001M/10/0232 Rio optioned some of Esso Minerals lands in southern Newfoundland as well as staked their own

claims. Their claims were located about 1.5 km to the northwest of the Cross Hills Property. Their

work consisted of geochemical and geophysical surveys as well as prospecting and geological

mapping. They paid particular attention to the southern and southeastern contact of the Ackley

Granite and its high potential to host Tin-Tungsten mineralization. Geophysical surveying consisted

of an airborne magnetic gradiometer and VLF survey, and ground IP surveys (MacGillivray, 1985;

Bonham, 1985). Some of the Airborne MAG survey may have covered the northeastern portion of the

property but it is difficult to tell due to the poor quality of the map image. A digital version of the data

is not available. Diamond drilling in the Taylors Pond area failed to yield any economic Sn, Mo or W

values.

Inco Gold Management Inc. 1988-89

001M/10/0295 Inco Gold was the first company active in gold exploration in the area and its claims were located in

the same general area as the Rio claims with one that slightly overlaps current licence 015681M. The

company performed detailed prospecting of the area and collected 126 rock samples within what was

described as a high altered pyritic, quartz-sericite zone (Bell, 1989). Two of the rock samples are

located on the west side of the property just east of Bark Pond but do not contain any anomalous

values.

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Work on the Property was performed by the current landholder during 2010, 2011 and 2013, 2014 and

2015. For completeness of this report all work performed in prior years have been discussed below

under Exploration Programs.

II. GEOLOGY AND LAKE SEDIMENT GEOCHEMISTRY

Geology

The property is located in the west central Avalon Zone, eastern Newfoundland. The claims are

dominated by Devonian and Carboniferous Ackley City Batholith. The Ackley City Granite is

massive, non-foliated, course grained, porphyritic and equigranular alaskitic biotite granite associated

with medium grained marginal phases and apalite dykes. Local greisens veins have been identified

and appear to be associated with alteration and the marginal phase of the granite contact. A simplified

map showing general geology has been provided in Figure 2.

Lake Sediment Geochemistry

A regional lake sediment survey was completed in 1978-79 in conjunction with the Geologic Survey

of Canada and the Geologic Survey of Newfoundland in GSC open file NFLD/1002. The density of

sampling is generally too low for this scale of work but it does outline some REE anomalies, although

not all REE’s are analyzed; Especially the HREE’s. Figures 3-10 below provide sample locations and

dot plots for various elements of interest in the Ackley Granite area. The figures have been plotted

using Government acquired airborne total field magnetic data as a background.

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Figure 2: Simplified Geological Map with Prospects

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Figure 3: Ytterbium in Lake Sediments

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Figure 4: Flourine in Lake Sediments

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Figure 5: Lanthanum in Lake Sediments

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Figure 6: Molybdenum in Lake Sediments

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Figure 7: Samarium in Lake Sediments

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Figure 8: Terbium in Lake Sediments

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Figure 9: Thorium in Lake Sediments

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Figure 10: Uranium in Lake Sediments

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III. EXPLORATION PROGRAM

2010-2011 Exploration Program

Four visits to the Ackley Project were made during 2010 and 2011. During the first three visits to the

project, reconnaissance prospecting and scintillometer prospecting were undertaken in an attempt to

locate the known showings in the area as well as to try and identify areas of radioactivity were

potential uranium or rare earth mineralization may be encountered. The forth visit to the property was

undertaken by RDF Consulting Ltd., at which time a high resolution, GPS enabled potassium

magnetometer survey was performed. The following summarizes the results from each program.

July 2010 Property Visit

During the July 2010 visit, prospecting was focused around the southern end of Sage Pond and north

of a tin showing that is located on ground held by Alterra. Highlights of the prospecting identified two

zones of high radioactivity where scintillometer reading were noted locally up to 5000CPS. Both

areas occurred in bog covered areas where the source of the anomalies could not be identified. Further

work is required in this area. Figure 10 below shows the location of the radioactivity noted in the field.

The coordinates of the radioactive areas are as follows:

1. NAD27/Zone 21 – 660120 5285601

2. NAD27/Zone 21 - 660217 5286102

August 2010 Property Visit

During an August 2010 visit, prospecting was performed in and around the Dick’s Pond West Prospect

and scintillometer recon prospecting was performed throughout a large area around the showing.

Other than identifying the known mineralization, no significant radioactivity was identified.

October 2010 Property Visit

During October 2010, prospecting and reconnaissance scintillometer work was performed over a large

area on claim block 017268M. No mineralization or zones of radioactivity were encountered during

this work program.

April 2011 Magnetometer Survey

During April 2011, RDF Consulting Ltd. was commissioned to perform high resolution, GPS enabled

magnetometer surveys over a portion of the property thought to have potential for mineralization in the

area. A total of 20.7 kilometers of surveying was performed and a significant alteration zone was

outlined on the southern portion of the survey area. The alteration zone occurs on the contact between

the Ackley Granite and mafic/felsic volcanic. The area is known to host numerous showings and

additional work is required. Figures 11 and 12 provide schematic maps showing the survey results.

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Figure 11: Zones of Radioactivity

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Figure 12: Ground Total Field Magnetic Survey Showing Location

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2013 Exploration Program

The 2013 program on the Ackley Poly-metallic property consisted of prospecting in conjunction with

a site visit by Quest Rare Earth Metals. As part of the program, Quest performed sampling of several

of the known showing on the Property. The full Quest report including assay data and database has

been appended to this report as Appendix B. This report and its results will serve as the basis for 2013

reporting on the Ackley Project.


The 2014 exploration program consisted of three separate prospecting trips to the property during the

months of September and October, 2014. The objective of the 2014 work program was to trace out

significant structures on the property to see if mineralization in the area follows the major structures.

Prospecting of the structures did not produce any new mineralization of interest. A total of five

samples were collected but were not assayed to date. Table 2 below provides descriptions and the

locations of samples collected. A sample location map has been provided in Appendix C.

Sample UTM_E UTM_N Type Rock Type Description

2014_1 659923 5285552 Outcrop Gabbro Rusty fracture gabbro

2014_2 661077.4 5285928 Outcrop Greisen Pyrite bearing greisen vein similar to main showing

2014_3 662006.6 5287354 Outcrop Kspar-Qtz-Magnetite Kspar-magnetite rich, pyritic rock unit

2014_4 661809.5 5286341 Outcrop Granite Altered devonian granite

2014_5 663780.6 5286744 Outcrop Mafic Volcanic

Dk green mafic volcanic containing 2-5% dissmeinated pyrite

Table 2: Rock Sample Locations


The 2015 exploration program consisted of prospecting and ground magnetometer geophysical

surveys. All work was performed during August 2015 by RDF Consulting Ltd. The object of the

program was to continue building a geophysical picture of the geology, mineralization and alteration

located in within the claims and to try and identify new areas of interest. The 2015 program proved

successful in obtaining valuable information from the ground magnetometer survey and lead to the

discovery of a previously undocumented molybdenum showing. Figure 13 illustrates the areas where

work was concentrated for the 2015 work program. Figure 14 has been provided to illustrate the

generalized geology in the area.

Ground Magnetometer survey

RDF Consulting Ltd. completed a total of 17.1 line kilometers of geophysical surveying on the

property. The geophysical report and data related to this work can be found in Appendix D of this

report. All data collected during the survey was recorded in WGS84, Zone 21. For the purpose of this

report, conversions to NAD27, Zone 21 were necessary to correlate with historic data. In addition,

previous magnetometer work performed by RDF was merged with the current data to aid with

interpretations for the area. It should be noted that both surveys used 51,500nT as the datum.

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Figure 13: 2015 Work Program Areas

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Figure 14: Generalized Geology Map

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Figure 15: 2015 Ground Total Field Magnetic Survey

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Figure 16: Ground Total Field Magnetic Survey (Google Earth)

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The results of the high resolution survey were very impressive. The magnetometer system appears to

be effectively mapping geological units in the area as well as defining areas of alteration that may be

critical in locating additional zones of greisenization. Also of significance, is the difference in

geophysical signature between the Devonian Granite located on the west and east side of Sage Pond.

Although this unit is mapped as the same unit, magnetic signatures suggest there is difference between

the two. Additional infill surveying in this area is required and will be part of the 2016 work program.

Schematic maps illustrating the results of the survey have been provided below as Figures 15 and 16.

Prospecting

A total of 4 man days were spent by a geologist and a qualified prospector on the property during

October 2015. The majority of the prospecting activity concentrated on one of the main structural

features running through claim 020380M and also on attempting to find new mineralization on claims

020460M and 020456M. One new showing was noted at location, NAD83/Zone 21

662579E/5286937N, within claim block 020380M. The showing was located on the side of a large

hill and contained significant molybdenum mineralization within an intensely box work textured and

altered quartzolite. The quartzolite is intensely iron stained and contains limonite and hematite (Figure

17). There are several small Mo occurrences of this in the area and additional sampling is required.

A full day was spent along the main structure outlined within claim 020380M and noted in Figure 13.

The shear structure is noted to be significant in size however no mineralization of interest was noted in

this area. Follow-up work was also performed within claim block 020456M in the area of a strong

magnetic response (see Figures 13 and 15). The source of the anomaly can be attributed to strongly

magnetic mafic volcanic. Several small boulders of greisen were located in this area but no source

was located. Work was also performed on claim block 020460 in and around the Dick Pond showing.

No new mineralization was encountered however it is possible that the mineralization noted in the area

may be related to albitization and possibly not greisenization. Additional work will be required.

Figure 17: Photo of mineralized sample

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IV. CONCLUSIONS AND RECOMMENDATIONS

The work performed during the 2014-2015 program proved successful in providing valuable

information about the geology of the area and also in identifying a new Mo showing. As part of the

2015-2016 work program additional magnetometer surveys will be performed on ground not surveyed

to date. Additional prospecting is warranted.

Respectfully Submitted,

_____________________

R. Dean Fraser, P.Geo.


APPENDIX A

Expenditures and Distribution by License Number


TOTAL EXPENDITURES AND DISTRIBUTION BY LICENSE NUMBER

SUMMARY OF

ACKLEY PROJECT EXPENDITURES

(2014/2015)

RDF Consulting Ltd.

Magnetometer Survey and Report (all in cost) 6,267.00

Prospecting (Geologist - 2 Days @ $600/day) 1,200.00

(Prospector – 2 Days @ $400/day) 800.00

Expenses:

- 2 ATV for 2 days @ $100/day 400.00

- Truck and Trailer Rental (2 days @ $200/day) 400.00

- Accommodations (2 days) 250.00

- Fuel 150.00

- Meals 60.00

Assessment Report 2,000.00

___________

Sub-total……………$ 11,527.00

Overhead Charges (15%) $ 1,729.05

___________

Total………………..$ 13,256.05

Expenditure Breakdown per Claim

License No. # of Claims $ Total Expenditure

020380M 23 $6351.75

020460M 7 $1933.20

020456M 11 $3037.89

020464M 7 $1933.20


APPENDIX B

Quest Rare Metals Report and Data

CindySaunders

Sticky Note

Previously submitted in 001M/10/0903

Quest PEPD Target Memo Ackley Granite

Province: Newfoundland

Target Name: Ackley Granite

Status: Prospect/Occurrence

Objectives of Property Evaluation:

• Verify MODS • Examine greisen alteration in granite, country rock and favorable structures

Status of Target: Quest signed a confidentiality agreement with Dean Fraser on April 28th 2013 to evaluate his Ackley Granite Mo, Sn, W, F, Fe property. Other claims not held by Mr. Fraser occur contiguous with his claims to the southeast and southwest.

Geology:

The Devonian Ackley Granite occurs in eastern Newfoundland as a suturing pluton between the Avalon and Gander Zones. The granite is one of the largest post-orogenic granites in Newfoundland, occurring over an area of at least 3,000 km2. Dickson (1983) subdivided the granite into seven major units based on texture, mineralogy and geochemistry. In the Fortune Bay area, the Ackley Granite cuts the Belle Bay and Anderson's Cove Formations as well as gabbroic rocks of the Cross Hills Plutonic Complex (Figure 1), and has been dated at 377 ± 3 Ma (unpublished but described by Kerr et al., 2009).

The Ackley Property contains 19 prospects, showings and indications of molybdenum, tungsten, tin and fluorite dominantly hosted in greisen veins and associated alteration systems. The prospects are mainly hosted within Devonian granites and boarder phases thereof that have been closely compared to the Mount Pleasant Devonian granites located in New Brunswick (host to numerous W-Mo deposits and Sn-In deposits) and the Cornwall and East Kemptville granites located in England and Nova Scotia (host to Sn and Sn-U deposits respectively).

Three prospects are located on the property: Anesty Hill South (Mo-Sn-F), the Dick’s Pond West (Sn-F-W) and the Moulting Pond South (Sn-F-W). Government lake sediment geochemistry data within the claims show highly elevated multi-element geochemistry for uranium, thorium, rare earth metals and fluorine. A large linear magnetic low outlined from airborne geophysical surveys defines a pervasive contact alteration system between Devonian Granite and Proterozic mafic and felsic volcanics (Figure 2). The

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Ackley Granite is characterized by a regional gravity low as demonstrated by the first vertical derivative of airborne gravity (Figure 3), while thorium enrichment delineates the granite even more distinctly (Figure 4).

Mineralization: Mo, Sn, W, F, Fe

Molybdenite, cassiterite, wolframite, hematite and fluorite

Mineralization occurs in a variety of modes including greisen-hosted in country rock and granite in vein margins, massive greisen within granite, veins in granite and country rock. A prominent feature of the Anesty Hill South, Dick’s Pond and Moulting Pond areas is the occurrence of “topazite”, which comprise pervasive topaz-quartz-fluorite-kaolinite alteration. These very resistive zones form ridges parallel to the granite-country rock contact and locally host disseminated and vein-type Mo-F-Fe mineralization.

It is believed that potential exists for both high grade vein and massive greisen mineralization and also for large tonnage, low grade stockwork deposits. These greisens probably represent the latest stage of fractionation of the granitic melt.

Results:

On June 3rd, 2013 Quest geologists Patrick Collins, Angela Buchanan and Chris Moran met with property vendor, prospector and geophysicist Dean Fraser in Terrenceville on the Burin Peninsula, Newfoundland. Mr. Fraser led us through a two day field evaluation of his property, which focused on the main areas of mineralization and alteration. In total, Quest collected 23 samples, mainly from outcrop. The results and a brief description of the sample lithology are summarized in Table 1 below. Figures 8-13 present the metals of interest graphically. All samples were analysed by ActLabs in Ancaster Ontario using a combination of three analytical techniques in a custom package prepared for Quest to test a select suite of metals. This package includes INAA, sodium peroxide fusion ICP/MS and aqua regia.

The primary MODS for this project is the Deer Pond Sn, which was mapped by J. Tuach and Esso Minerals from the 1980’s to the early 1990’s. Minor molybdenite and cassiterite(?) mineralization was noted within sheets and pods of very intensely greisenised Ackley Granite and Late Proterozoic rhyolite. The bedrock exposure is good at this showing and it was apparent that intense pervasive alteration occurs for hundreds of meters along strike, at least 200 m wide (though in dipping beds) and to an unknown depth.

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Sample Date Lithology Sn W Mo U Cu Zn Pb In Ga Ge Au Ag Li Sb ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppb ppm ppm ppm

13239 6/3/2013 greisenized granite 33.1 12 10 3.5 < 2 < 30 7 < 0.2 1.9 3 < 2 < 0.2 3 0.4

13240 6/3/2013 greisenized granite 303 13 15 4.3 < 2 < 30 6 < 0.2 3.6 2 < 2 < 0.2 7 0.4

13241 6/3/2013 greisenized granite 98.9 9 16 4.7 < 2 30 24 < 0.2 3 3 < 2 < 0.2 17 < 0.2

13242 6/3/2013 quartz vein 36 < 1 337 3 9 30 13 < 0.2 18 2 < 2 < 0.2 154 1.2

13243 6/3/2013 qtz vein 53.4 < 1 332 4.8 4 30 9 < 0.2 8.5 3 < 2 < 0.2 225 1.4

13244 6/3/2013 pegmatite 102 35 216 1.4 < 2 30 6 0.3 38.6 6 < 2 < 0.2 583 2.1

13245 6/3/2013 volcaniclastic 6.9 < 1 12 3.9 < 2 30 68 0.2 27.9 1 < 2 < 0.2 38 0.6

13246 6/3/2013 vein in volcaniclastic 66.8 < 1 64 3 19 50 110 < 0.2 28.1 5 < 2 < 0.2 216 1.1

13247 6/3/2013 volcaniclastic 124 14 65 7.3 339 50 15 < 0.2 26.1 8 < 2 < 0.2 244 < 0.2

13248 6/3/2013 granite 85.9 < 1 980 2.9 < 2 40 249 1.3 31 < 1 < 2 < 0.2 68 1.1

13249 6/3/2013 granite 663 26 180 1.4 < 2 40 44 1 29.1 2 < 2 < 0.2 46 1

13250 6/3/2013 greisenized granite 81.4 6 10 4.2 54 50 27 0.8 25 2 < 2 < 0.2 37 1.5

13301 6/3/2013 greisenized granite 73.6 572 301 12 20 < 30 34 0.6 3.7 6 < 2 < 0.2 59 0.6

13302 6/3/2013 greisenized granite 35 15 73 3.2 12 80 44 < 0.2 2.2 5 < 2 < 0.2 6 0.2

13303 6/3/2013 greisenized granite 30.8 27 99 2.6 7 < 30 5 < 0.2 4.6 6 < 2 < 0.2 12 0.3

13304 6/4/2013 greisenized granite 230 710 138 5.1 8 30 30 < 0.2 3.5 6 < 2 < 0.2 17 0.7

13305 6/4/2013 greisenized granite 684 14 43 3.5 < 2 < 30 6 < 0.2 3.8 6 < 2 < 0.2 7 0.5

13306 6/4/2013 greisenized granite 251 17 146 5.2 29 < 30 21 < 0.2 1.9 5 < 2 < 0.2 < 3 0.4

13307 6/4/2013 greisenized granite 1390 13 46 5.1 4 < 30 12 < 0.2 3.5 4 < 2 < 0.2 7 0.7

13308 6/4/2013 greisenized volcanics 771 < 1 326 7.7 < 2 < 30 10 < 0.2 5.6 8 < 2 0.2 13 0.4

13309 6/4/2013 greisenized felsic volcanic 4090 15 35 6.8 2 70 6 0.7 4.9 5 < 2 < 0.2 10 0.7

13310 6/4/2013 greisenized felsic volcanic 651 14 337 4.3 3 < 30 21 < 0.2 5 4 < 2 < 0.2 19 0.6

13311 6/4/2013 greisenized granite 63.9 927 6 24 47 90 184 0.9 35.1 2 < 2 12.6 71 1.3

Table 1. A summary of assay data and sample lithology for the Ackley Granite property.

Topaz-altered country rock forms prominent ridges throughout the countryside (Figure 5). Quest was able to inspect several other MODS that are all part of the larger Deer Pond area and collect samples at each site. In addition, we were able to collect UTM data on one historical drill collar.

The Anesty South MODS was also examined on June 3rd. This showing exhibits similar topaz alteration as the Deer Pond MODS, but over a much smaller area. Alteration occurs as small (< 5 m2) pods or sheets within hematized porphyritic granite. One sample, 13301 was collected from topaz altered granite.

On June 4th we continued our evaluation of the Ackley Granite property. The weather was quite poor, with on and off driving rain and near visibility fog. After some difficulty due to weather issues and projection issues, we reached the Esso showing, which is considered to be the second or third best showing outside of the main Deer Pond zone visited on June 3rd. In addition, we searched for several other lesser showings, but were only partially successful again due to projection issues and data

3

collection legacy issues i.e. inaccurate original locations. During the traverse to search for these lesser occurrences or boulders it became apparent that greisenised boulders occur throughout the countryside on this property.

At the Esso showings, the alteration is exposed in a series of seven trenches (Figure 6), and appears to be similar to alteration at Deer Pond Sn, pervasive and very strong to intense. All primary textures were destroyed by quartz-topaz alteration, except locally where possible bedding/layering was noted. The host rock is reported to be a volcaniclastic unit. Molybdenum and tungsten mineralization was observed throughout the trenches and each individual trench was sampled. Hydrothermal alteration was ubiquitous (Figure 7) and far more abundant than either W or Sn mineralization.

Figure 5. Prominent, but relatively low-angle ridges mark zones of topaz alteration.

4

Figure 6. Dense fog obscures the Esso trenches, which are seen as depressions where blasting removed material from an altered and weakly Sn-Mo mineralized whaleback ridge.

Figure 7. Intensely altered rhyolite or felsic volcaniclastic rocks at the Esso trenches. White area is topaz altered whereas rusty zones represent pervasively oxidized hydrothermal pyrite.

5

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Youngs Hill

Quest Rare MineralsNewfoundland PEPD

Ackley Granite-Youngs HillBedrock Geology

NAD83/ZONE21NScale: 1:100,000

Last Modified: 5/30/2013

Newfoundland RoadsHighwaySecondary roadsUnpaved Road

RiversMajor waterbodiesNL Target Areas

Newfoundland Selected MODS!( All other metals!( Fl!( Mo!( Sn!( W!( Zr

Bedrock GeologyDevonian to Carboniferous granitoid suites (DCg)Late Proterozoic to Cambrian granitoid suites (P3Cg)Late Proterozoic to Cambrian mafic intrusions (P3Cm)Late Proterozoic siliciclastic sediments (P3sf)Late Proterozoic subaerial mafic & felsic volcanics (P3vb)

Figure 1

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Ackley Granite-Youngs HillAirborne Magnetics (1VD)





Newfoundland Selected MODS!( All other metals!( Fl!( Mo!( Sn!( W!( Zr Figure 2

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Ackley GraniteSample Geochemistry



Newfoundland 2013 SamplesSn ppm

!( 0.25 - 66.90!( 66.91 - 233.00!( 233.01 - 565.00!( 565.01 - 3370.00!( 3370.01 - 48600.00


RiversMajor waterbodies


133071330813306

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Newfoundland 2013 SamplesMo ppm

!( 0.5 - 50.0!( 50.1 - 100.0!( 100.1 - 500.0!( 500.1 - 2000.0!( 2000.1 - 25000.0




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Newfoundland 2013 SamplesW ppm

!( 0.5 - 100.0!( 100.1 - 500.0!( 500.1 - 1000.0!( 1000.1 - 20000.0!( 20000.1 - 75000.0




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Newfoundland 2013 SamplesSb ppm

!( 0.1 - 2.0!( 2.1 - 10.0!( 10.1 - 50.0!( 50.1 - 750.0!( 750.1 - 100000.0




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!( 4.0 - 59.0!( 59.1 - 201.0!( 201.1 - 713.0!( 713.1 - 5230.0!( 5230.1 - 23700.0




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Newfoundland 2013 SamplesCu ppm

!( 1 - 265!( 266 - 769!( 770 - 1710!( 1711 - 5320!( 5321 - 24400




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Figure 13

15


APPENDIX C

Sample Location Map

664,000 mE662,000 mE 663,000 mE660,000 mE 661,000 mE

5,28

8,00

0 m

N5,

286,

000

mN

5,28

7,00

0 m

N

659,000 mE5,2

5,28

5,00

0 m

N5,

284,

000

mN

10.5

kilometers0

2014_12014_12014_12014_12014_12014_12014_12014_12014_1

2014_22014_22014_22014_22014_22014_22014_22014_22014_2

2014_42014_42014_42014_42014_42014_42014_42014_42014_4

2014_32014_32014_32014_32014_32014_32014_32014_32014_3

2014_52014_52014_52014_52014_52014_52014_52014_52014_5

ACKLEY PROPERTY

Terranceville AreaNewfoundland

Sample Location Map

Scale: 1:10,000 Dec. 2014


APPENDIX D

RDF Consulting Ltd.

Geophysical Logistics Report

2015

RDF Consulting Ltd. 51 Shelburne Street Paradise, NL, A1L 0N7 Phone: (709) 687-0535 Email: [email protected]

GEOPHYSICAL LOGISTICS REPORT

TOTAL FIELD MAGNETOMETER GEOPHYSICAL SURVEY

ACKLEY POLY-METALLIC PROJECT

GRAND LE PIERRE, NEWFOUNDLAND

Prepared By:

RDF Consulting Ltd.

August, 2015

i

RDF Consulting Ltd.

Geophysical Logistics Report Ackley Poly-Metallic Project

SUMMARY

This report summarizes the logistics and other information related to a total field magnetometer

geophysical survey performed on the Ackley Poly-Metallic Project located approximately located

approximately 5.5 kilometers northwest of Grand Le Pierre, Newfoundland. The survey was

performed in an attempt to delineate and gain a better understanding and local geology and known

greisenization in the area. RDF Consulting Limited was commissioned during August of 2015 to

perform a high resolution, GPS enabled, ground magnetometer survey on the property. A total of

17.1 line kilometers of magnetic data was collected over certain areas of the Property.

The magnetometer survey was performed using two high resolution GEM GSMP-35 potassium field

magnetometers and a GEM GSM-19 Overhauser base station magnetometer. The base station unit

was used to correct for variations in the earth’s magnetic field.

The data obtained from the magnetometer survey was of high quality and no problems were

encountered with either the field or base units during the survey. The dataset was edited for any

readings that were considered suspect or where “unlocking” of the signal occurred. The survey

effectively outlined significant magnetic features of interest that will require further investigation.

Additional surveying is warranted to better delineate targets. All maps and data files produced for

this report have been appended to the accompanying data CD.

ii

RDF Consulting Ltd.


TABLE OF CONTENTS

Page

SUMMARY ......................................................................................................................................... i

I. INTRODUCTION

Scope .......................................................................................................................................... 1

Claims Location and Access ...................................................................................................... 1

Personnel ..................................................................................................................................... 1

II. MAGNETOMETER SURVEY SPECIFICATIONS................................................................. 3

III. MAGNETOMETER SURVEY PRODUCTION SUMMARY ............................................... 3

IV. LOGISTICS DISCUSSION

Magnetometer Method ................................................................................................................ 3

Final Presentation ....................................................................................................................... 4

V. CONCLUSIONS AND RECOMMENDATIONS .................................................................... 6

VI. CERTIFICATE OF QUALIFICATIONS ............................................................................... 7

LIST OF FIGURES

Figure 1: Ackley Poly-Metallic Project Property Location Map ....................................................... 2

Figure 2: WGS84, Zone 21 Projection Specifications ....................................................................... 4

Figure 3: Total Field Magnetics Map .................................................................................................. 5

LIST OF TABLES

Table 1: Personnel employed on the Ackley Poly-Metallic Project Geophysical Survey ................... 1

Table 2: Magnetometer Survey Specifications .................................................................................. 3

Table 3: Magnetometer Survey Production Summary ....................................................................... 3

Table 4: Magnetometer Base Station Location .................................................................................. 4

LIST OF APPENDICES

Appendix A: Geophysical Equipment Specifications

Appendix B: Map and Data Disk

P a g e | 1

RDF Consulting Ltd.


I. INTRODUCTION

Scope

This report summarizes the logistics and other information related to a total field magnetometer

geophysical survey performed on the Ackley Poly-Metallic Project located approximately 5.5

kilometers northwest of Grand Le Pierre, Newfoundland (Figure 1). RDF Consulting Limited

(RDF) of Paradise, Newfoundland was commissioned to perform a high resolution, GPS enabled,

ground magnetometer survey on the property.

An experienced geophysical technician, utilizing one potassium field magnetometer was used for the

data collection. RDF collected a total of 17.1 line kilometers of total field magnetometer data over

selected areas on the Project. All lines and data collected were reconnaissance in nature as no grid

lines exist on the property. The survey was performed in an attempt to better define local geology

and to delineate areas related to know mineralization and greisenization in the area.

Claims Location and Access

The survey was based out of Kilmory Resorts located near Swift Current, NL. The closest

community to the work area is Grand Le Pierre, a small coastal town of approximately 264 people,

located approximately 160 kilometers west of St. John’s, NL.

Access to the Ackley area can be obtained by paved highway (Route 210) and Terrenceville/Grand

Le Pierre Highway. A well maintained ATV trail and ATV road network exists within the Property

boundaries.

The Ackley Poly-Metallic Project area is characterized by gently-moderately rolling hills. Hill and

plateau tops are generally wide open. Small and large lakes and ponds exist throughout the area.

Personnel

Table 1 summarizes all RDF personnel involved in performing and finalizing geophysical work on

the Ackley Project.

Name Address Work Performed

Dylan Fraser Paradise, Newfoundland Geophysical Technician

Dean Fraser Paradise, Newfoundland Supervision and Report

Table 1: RDF Personnel employed on the Ackley Poly-Metallic Project Geophysical Survey

P a g e | 2

RDF Consulting Ltd.


Figure 1: Ackley Poly-Metallic Project Location Map (Taken from Goggle Earth)

NEWFOUNDLAND

P a g e | 3

RDF Consulting Ltd. Geophysical Logistics Report Ackley Poly-Metallic Project

II. MAGNETOMETER SURVEY SPECIFICATIONS

Table 2 summarizes survey equipment and related survey parameters for the magnetometer survey

performed on the Ackley Poly-Metallic Project. Appendix A provides the detailed specifications of

the State-of-the-Art GEM equipment used on the survey.

Field Magnetometer GEM GSMP-35 Potassium Magnetometers

Base Magnetometer GEM GSM-19 Overhauser Magnetometer

Magnetic Survey Type: Total Field

Sampling Rate (Base Station) 5 Seconds

Sampling rate (Field Unit) 1 second

Base Datum Used 51,500 nT

Table 2: Magnetometer Survey Specifications

III. MAGNETOMETER SURVEY PRODUCTION SUMMARY

Table 3 below summarizes survey coverage for the magnetometer geophysical method. The line

distances are calculated from the database appended to this report. A total 13148 data points were

collected over 17.1 line kilometers on specific areas of the grid.

Based on the readings taken, a significant magnetic gradient of 12,090nT was noted.

Line X-minimum X-maximum Y-minimum Y-maximum # of points Total distance

0 659296.14 662220.30 5285368.12 5287151.60 13148 17061.86573933

Table 3: Magnetometer Survey Production Summary

IV. LOGISTICS DISCUSSION

Magnetometer Method

The total field magnetometer survey was performed over the Ackley Poly-Metallic Project using a

high resolution GEM-GSMP35, GPS enabled potassium magnetometers. A GEM-GSM19

Overhauser base station was employed to correct for diurnal variations in the earth’s magnetic field

during surveying. The datum used for the base station corrections was 51,500 nanoteslas. The use

of a high resolution base station ensures high quality data is the end result once corrections are made

at the end of each field day. The base station is best located in a magnetically “quiet” area near the

survey grid. In the case of the Ackley survey, the base station remained in a set location throughout

the duration of the survey. Coordinates for the base station location have been provided in Table 6.

All coordinates are provided in WGS84/Zone 21.

A total of 17.1 line kilometers of data was collected on the claims. Readings were collected using a

1 second sampling rate. The one second sampling rate equated to an approximate 0.5 - 1.0m station

spacing. The survey was performed without the use of a cut grid and no cultural features were

encountered.

` P a g e | 4


Grid Name UTM Coordinate (GPS Derived) – WGS84/Zone 31

Easting Northing

Ackley 662100 5286106

Table 4: Magnetometer Base Station location

All raw magnetic data was collected using WGS84. During field work, the operator tried to maintain

lines in a north-south direction by staying on a set easting. This was not always possible given grid

lines do not exist in the area. At the end of each survey day, data was downloaded to a Laptop

computer and processed using the GeoSoft Oasis Montaj data processing software. Data was

processed and plotted on a nightly basis. All data was backed up to an external hard drive.

FINAL PRESENTATION

A schematic map showing the results of the total field magnetic survey for the Ackley Property has

been provided below as Figure 3.

All maps produced for this report have been appended as Appendix B. All raw and processed digital

data, maps and reports related to the Ackley magnetometer survey can be found on the Appended CD

(Appendix B). All data, images and maps related to this report utilize the Universal Transverse

Mercator (UTM), WGS84, Zone 21 coordinate system. Figure 2 below provides the specifications

for the projection.

Figure 2: WGS84, Zone 21 Projection Specifications

All data plotted reflects the corrected total field measurements obtained from the ground survey. No

filters or smoothing algorithms have been applied to the dataset.

The following scaled geophysical maps have been produced as hard copies and are appended to the

CD which accompanies this report.

Total Field Magnetics Contour Map (1:10,000)

Data processing and final presentations were produced using the GeoSoft Oasis Montaj geophysical

software.

P a g e | 5


Figure 3: Total Field Magnetics Map

P a g e | 6


V. CONCLUSIONS AND RECOMMENDATIONS

The data obtained from the ground magnetometer survey over the Ackley Poly-Metallic Property

was of high quality. No problems were encountered with data quality for the field or base units. The

dataset was edited for any readings that were considered suspect or where the “unlocking” of the

signal occurred. Unlocking of the signal can occur in conditions where the operator cannot maintain

a constant sensor orientation due to the scaling of steep areas, attempting to bush crash through trees,

slips and falls, loss of satellite or areas where extremely high gradients occur.

Magnetic values over the grid areas range from a low 47680nT to a high of 59770nT for a gradient of

over 12,090nT (gammas). The survey effectively outlined significant magnetic features of interest

that will require follow up work and investigation. Additional surveying is warranted.

P a g e | 7


VI. CERTIFICATES OF QUALIFICATIONS

I, R. Dean Fraser, of the town of Paradise, Newfoundland do hereby certify:

That I am a registered Professional Geophysicist/Geologist with the Association of Professional

Engineers and Geoscientists of Newfoundland and Labrador and Saskatchewan (Dormant).

That I received my Bachelor of Science degree in Geology/Geophysics from Memorial University

of Newfoundland in 1992.

That I have practiced my profession as both an Exploration Geophysicist and Geologist

continuously since 1992.

That I do hold and interest in the property related to this report.

Dated at Paradise, Newfoundland this 02nd

day of December, 2015.

________________________

Dean Fraser, P.Geo


APPENDIX A

Geophysical Equipment Specifications

Introduction The GSM-19 v7.0 Overhauser instrument is the total field magnetometer / gradiometer of choice in today’s earth science environment -representing a unique blend of physics, data quality, operational efficiency, system design and options that clearly differentiate it from other quantum magnetometers.

With data quality exceeding standard proton precession and comparable to costlier optically pumped cesium units, the GSM-19 is a standard (or emerging standard) in many fields, including:

* Mineral exploration (ground and airborne base station)

* Environmental and engineering * Pipeline mapping * Unexploded Ordenance Detencion

* Archeology * Magnetic observatory measurements * Volcanology and earthquake

prediction

Taking Advantage of the Overhauser Effect

GSM-19 v7.0Overhauser

Magnetometer / Gradiometer / VLF

Overhauser effect magnetometers are essentially proton precession devices except that they produce an order-of magnitude greater sensitivity. These "supercharged" quantum magnetometers also deliver high absolute accuracy, rapid cycling (up to 5 readings / second), and exceptionally low power consumption. The Overhauser effect occurs when a special liquid (with unpaired electrons) is combined with hydrogen atoms and then exposed to secondary polarization from a radio frequency (RF) magnetic field. The unpaired electrons transfer their stronger polarization to hydrogen atoms, thereby generating a strong precession signal-- that is ideal for very high-sensitivity total field measurement.

In comparison with proton precession methods, RF signal generation also keeps power consumption to an absolute minimum and reduces noise (i.e. generating RF frequencies are well out of the bandwidth of the precession signal).

In addition, polarization and signal measurement can occur simultaneously - which enables faster, sequential measurements. This, in turn, facilitates advanced statistical averaging over the sampling period and/or increased cycling rates (i.e. sampling speeds).

The unique Overhauser unit blends physics, data quality, operational efficiency, system design and options into an instrumentation package that ... exceeds proton precession and matches costlier optically pumped cesium capabilities. And the latest v7.0 technology up-grades provide even more value, including: - Data export in standard XYZ (i.e. line-oriented) format for easy use in standard commercial software programs - Programmable export format for full control over output

- GPS elevation values provide input for geophysical modeling

- <1.5m standard GPS for high- resolution surveying

- <1.0 OmniStar GPS

- <0.7m for Newly introduced CDGPS

- Multi-sensor capability for advanced surveys to resolve target geometry

- Picket marketing / annotation for capturing related surveying information on the go.

And all of these technologies come complete with the most attractive prices and warranty in the business!

Terraplus Inc. 52 West Beaver Cr. Rd. #12, Richmond Hill, ON. Canada L4B 1L9

Tel: 905-764-5505 Fax: 905-764-8093

Email: [email protected] Website: www.terraplus.ca

MAGNETOMETERS

Maximizing Your Data Quality with the GSM-19

Data quality is a function of five key parameters that have been taken into consideration carefully in the design of the GSM-19. These include sensitivity, resolution, absolute accuracy, sampling rates and gradient tolerance.

Sensitivity is a measure of the signal-to noise ratio of the measuring device and reflects both the underlying physics and electronic design. The physics of the Overhauser effect improves sensitivity by an order of magnitude over conventional proton precession devices. Electronic enhancements, such as high-precision precession frequency counters enhance sensitivity by 25% over previous versions.

The result is high quality data with sensitivities of 0.022 nT / vHz. This sensitivity is alsothe same order-of magnitude as costieroptically pumped cesium systems.

Resolution is a measure of the smallest number that can be displayed on the instrument (or transmitted via the download process). The GSM-19 has unmatched

resolution (0.01mT)

This level of resolution translates into well-defined, characteristic anomalies; improved visual display; and enhanced numerical data for processing and modeling.

Absolute accuracy reflects the closeness to the "real value" of the magnetic field -- represented by repeatability of readings either at stations or between different sensors. With an absolute accuracy of +/- 0.1 nT, the GSM-19 delivers repeatable station-to-station results that are reflected in high quality total field results.

Similarly, the system is ideal for gradient installations (readings between different sensors do not differ by more than +/- 0.1 nT) -- maintaining the same high standard

of repeatability.

Data from Kalahari Desert kimberlites. Courtesy of MPH Consulting (project managers), IGS c. c. (geophysical contractor) and Aegis Instruments (Pty) Ltd., Botswana.

The GSM-19 gradiometer data are consistently low in noise and representative of the geologic environment under investigation.

Sampling rates are defined as the fastest speed at which the system can acquire data. This is a particularly important parameter because high sampling rates ensure accurate spatial resolution of anomalies and increase survey efficiency.

The GSM-19 Overhauser system is configured for two "measurement modes" or maximum sampling rates --"Standard" (3 seconds / reading), and

"Walking" (0.2 seconds / reading)These sampling rates make the GSM-19 a truly versatile system forall ground applications (including vehicle-borne applications).

Gradient tolerance represents the ability to obtain reliable measurements in the presence of extreme magnetic field variations. GSM-19 gradient tolerance is maintained through internal signal counting algorithms, sensor design and Overhauser physics. For example, the Overhauser effect produces high amplitude, long-duration signals that facilitate measurement in high gradients.

The system's tolerance (10,000 nT / meter) makes it ideal for many challenging environments -- such as highly magnetic rocks in mineral exploration applications, or near cultural objects in environmental, UXO or archeological applications.

Total Field and Stationary Vertical Gradient showing the gradient largely

unaffected by diurnal variation. Absolute accuracy is also shown to be

very high (0.2 nT/meter).

Much like an airborne acquisition system, the GSM19 “Walking” magnetometer option delivers very

highly-sampled, high sensitivity results that enable very accurate target location and / or earth science

decision-making.

Terraplus Inc. Tel: 905-764-5505 Email: [email protected] 52 West Beaver Cr. Rd. #12, Richmond Hill, ON. Canada L4B 1L9 Fax: 905-764-8093 Website: www.terraplus.ca

Increasing Your Operational Efficiency Many organizations have standardized their magnetic geophysical acquisition on the GSM-19 based on high performance and operator preference. This preference reflects performance enhancements such as memory capacity; portability characteristics; GPS and navigation; and dumping and processing.

Memory capacity controls the efficient daily acquisition of data, acquisition of positioning results from GPS, and the ability to acquire high resolution results (particularly in GSM-19’s "Walking" mode).

V7.0 upgrades have established the GSM19 as the commercial standard for memory with over 1,465,623 readings (based on a basic configuration of 32

Mbytes of memory and a survey with time, coordinate, and field values).

Portability characteristics (ruggedness, light weight and power consumption) are essential for operator productivity in both normal and extreme field conditions.

GSM-19 Overhauser magnetometer is established globally as a robust scientific instrument capable of withstanding temperature, humidity and terrain extremes. It also has the reputation as the lightest and lowest power system available -- reflecting Overhauser effect and RF polarization advantages.

In comparison with proton precession and optically pumped cesium systems, the GSM-19 system is the choice of operators as an easy-to-use and robust system.

GPS and navigation options are increasingly critical considerations for earth science professionals.

GPS technologies are revolutionizing data acquisition -- enhancing productivity, increasing spatial resolution, and providing a new level of data quality for informed decision-making.

The GSM-19 is now available with real-time GPS and DGPS options in different survey resolutions. For more details, see the GPS and DGPS section.

The GSM-19 can also be used in a GPS Navigation option with real-time coordinate transformation to UTM, local X-Y coordinate rotations, automatic end of line flag, guidance to the next line, and survey "lane" guidance with cross-track display and audio indicator.

Other enhancements include way point pre-programming of up to 1000 points. Professionals can now define a complete survey before leaving for the field on their PC and download points to the magnetometer via RS-232 connection.

The operator then simply performs the survey using the way points as their survey guide. This capability decreases survey errors, improves efficiency, and ensures more rapid survey completion.

Dumping and processing effectiveness is also a critical consideration today. Historically, up to 60% of an operator's "free" time can be spent on low-return tasks, such as data dumping.

Data dumping times are now significantly reduced through GEM’s implementation of high-speed, digital data links (up to 115 kBaud).

MAGNETOMETERS

This functionality is faciliated through a new RISC processor as well as the new GSM-19 data acquisition / display software. This software serves as a bi-directional RS-232 terminal. It also has integrated processing functionality to streamline key processing steps, including diurnal data reduction. This software is provided free to all GSM19 customers and regular updates are available.

Navigation and Lane Guidance

The figure above shows the Automatic Grid (UTM, Local Grid, and Rotated Grid). With the Rotated Grid, you can apply an arbitrary origin of your own definition. Then, the coordinates are always in reference to axes parallel to the grid. In short, your grid determines the map, and not the NS direction.

The Local Grid is a scaled down, local version of the UTM system, and is based on your own defined origin. It allows you to use smaller numbers or ones that are most relevant to your

The figure below shows how programmable-waypoints can be

waypoints and enter them via PC or the keyboard. In the field, the unit guides you to each point.

While walking between waypoints, lane guidance keeps you within a lane of predefined width using arrows (< - or - >) to indicate left or right. Within the lane, the display uses horizontal bars (- -) to show your relative position in the lane. The display also shows the distance (in meters) to the next waypoint.

survey.

used to plan surveys on a point-by-point basis. Initially, you define


Adding Value through Options

When evaluating the GSM-19 as a solution for your geophysical application, we recommend considering the complete range of options described below. These options can be added at time of original purchase or later to expand capabilities as your needs change or grow.

Our approach with options is to provide you with an expandable set of building blocks:

* Gradiometer *

*

Walking- Fast Magnetometer / Gradiometer VLF (3 channel)

* GPS (built-in and external)

GSM-19G Gradiometer Option

The GSM-19 gradiometer is a versatile, entry level system that can be upgraded to a full-featured "Walking" unit (model GSM-19WG) in future.

The GSM-19G configuration comprises two sensors and a "Standard" console that reads data to a maximum of 1 reading every three seconds.

An important GSM-19 design feature is that its gradiometer sensors measure the two magnetic fields concurrently to avoid any temporal variations that could distort gradiometer readings. Other features, such as single-button data recording, are included for operator ease-of-use.

GSM-19W / WG "Walking" Magnetometer / Gradiometer Option

The GSM-19 was the first magnetometer to incorporate the innovative "Walking" option which enables the acquisition of nearly continuous data on survey lines. Since its introduction, the GSM-19W / GSM-19WG have become one of the most popular magnetic instruments in the world.

Similar to an airborne survey in principle, the system records data at discrete time intervals (up to 5 readings per second) as the instrument is carried along the line.

At each survey picket (fiducial), the operator touches a designated key. The system automatically assigns a picket coordinate to the reading and linearly interpolates the coordinates of all intervening readings (following survey completion during post-processing).

A main benefit is that the high sample density improves definition of geologic structures and other targets (UXO, archeological relics, drums, etc.).

It also increases survey efficiency because the operator can record data almost continuously. Another productivity feature is the instantaneous recording of data at pickets. This is a basic difference between the “Walking” version and the GSM-19 / GSM-19G (the “Standard” mode version which requires 3 seconds to obtain a reading each time the measurement key is pressed).

GSM-19 "Hands-Free"

Backpack Option

The "Walking" Magnetometer and

Gradiometer can be configured with an

optional backpack-supported sensor.

The backpack is uniquely constructed

permitting measurement of total field or

gradient with both hands free.

This option provides greater versatility

and flexibility, which is particularly

valuable for high-productivity surveys or

in rough terrain.

MAGNETOMETERS

GSM-19GV "VLF" Option

With its omnidirectional VLF option, up to 3 stations of VLF data can be acquired without orienting. Moreover, the operator is able to record both magnetic and VLF data with a single stroke on the keypad.

3rd Party Software - A One-Stop Solution for Your Potential Field Needs

As part of its complete solution approach, Terraplus offers a selection of proven software packages. These packages let you take data from the field and quality control stage right through to final map preparation and modeling.

Choose from the following packages:

* Contouring and 3D Surface Mapping

* Geophysical Data Processing & Analysis

* Semi-Automated Magnetic Modeling

* Visualization and Modeling / Inversion

Geophysical Data Processing and Analysis from Geosoft Inc.

GSM-19 with internal GPS board. Small receiver attaches above sensor


Version 7 -- New Milestones in Magnetometer Technology

The recent release of v7.0 of the GSM-19 system provides many examples of the ways in which we continue to advance magnetics technologies for our customers.

Enhanced data quality:

* 25% improvement in sensitivity (new frequency counting algorithm)

* new intelligent spike-free algo rithms (in comparison with other manufacturers, the GSM-19 does not apply smoothing or filtering to achieve high data quality)

Improved operational efficiency:

* Enhanced positioning (GPS engine with optional integrated / external GPS and real-time navigationl)

* 16 times increase in memory to 32 Mbytes

* 1000 times improvement in processing and display speed (RISC microprocessor with 32-bit data bus) 2 times faster digital data link (115 kBaud through RS-232)

Innovative technologies:

* Battery conservation and survey flexibility (base station scheduling option with 3 modes - daily, flexible and immediate start)

* Survey pre-planning (up to 1000 programmable waypoints that can be entered directly or downloaded from PC for greater efficiency)

* Efficient GPS synchronization of field and base units to Universal Time (UTC)

* Cost saving with firmware up grades that deliver new capabilities via Internet

MAGNETOMETERS More About the Overhauser System

In a standard Proton magnetometer, current is passed through a coil wound around a sensor containing a hydrogenrich fluid. The auxiliary field created by the coil (>100 Gauss) polarizes the protons in the liquid to a higher thermal equilibrium.

When the current, and hence the field, is terminated, polarized protons precess in the Earth's field and decay exponentially until they return to steady state. This process generates precession signals that can be measured as described below.

Overhauser magnetometers use a more efficient method that combines electronproton coupling and an electron-rich liquid (containing unbound electrons in a solvent containing a free radical). An RF magnetic field -- that corresponds to a specific energy level transition -- stimulates the unbound electrons.

Instead of releasing this energy as emitted radiation, the unbound electrons transfer it to the protons in the solvent. The resulting polarization is much larger, leading to stronger precession signals.

Both Overhauser and proton precession, measure the scalar value of the magnetic field based on the proportionality of precession frequency and magnetic flux density (which is linear and known to a high degree of accuracy). Measurement quality is also calculated using signal amplitude and its decay characteristics. Values are averaged over the sampling period and recorded.

With minor modifications (i.e. addition of a small auxiliary magnetic flux density while polarizing), it can also be adapted for high sensitivity readings in low magnetic fields. (ex. for equatorial work)

GPS - Positioning You for Effective Decision Making

The use of Global Positioning Satellite (GPS) technology is increasing in earth science disciplines due to the ability to make better decisions in locating and following up on anomalies, and in improving survey cost effectiveness and time management.

Examples of applications include: Surveying in remote locations with no grid

* High resolution exploration mapping * High productivity ferrous ordnance (UXO) detection * Ground portable magnetic and gradient surveying for environmental

and engineering applications * Base station monitoring for observing diurnal magnetic activity and

disturbances with integrated GPS time

The GSM-19 addresses customer requests for GPS and high-resolution Differential GPS (DGPS) through both the industry’s only built-in GPS (as well as external GPS).

Built-in GPS offers many advantages such as minimizing weight and removing bulky components that can be damaged through normal surveying. The following table summarizes GPS options.

system (for example, in the high Arctic for diamond exploration)


MAGNETOMETERS

Key System Components

Key components that differentiate the GSM-19 from other systems on the market include the sensor and data acquisition console. Specifications for components are provided on the right side of this page.

Sensor Technology

Overhauser sensors represent a proprietary innovation that combines advances in electronics design and quantum magnetometer chemistry.

Electronically, the detection assembly includes dual pick-up coils connected in series opposition to suppress far-source electrical interference, such as atmospheric noise. Chemically, the sensor head houses a proprietary hydrogen-rich liquid solvent with free electrons (free radicals) added to increase the signal intensity under RF polarization.

From a physical perspective, the sensor is a small size, light-weight assembly that houses the Overhauser detection system and fluid. A rugged plastic housing protects the internal components during operation and transport.

All sensor components are designed from carefully screened non-magnetic materials to assist in maximization of signal-to-noise. Heading errors are also minimized by ensuring that there are no magnetic inclusions or other defects that could result in variable readings for different orientations of the sensor.

Optional omni-directional sensors are Performance available for operating in regions where the magnetic field is near-horizontal (i.e. Sensitivity: 0.022 nT / vHz@1Hzequatorial regions). These sensors Resolution: 0.01 nT maximize signal strength regardless of Absolute Accuracy: +/- 0.1 nTfield direction. Dynamic Range: 15,000

to 120,000 nTData Acquisition Gradient Tolerance: > 10,000 nT/m Console Technology Sampling Rate: 60+, 3, 2, 1,

0.5, 0.2 sec

Console technology comprises an Operating Temp: -40C to +55C

external keypad / display interface with internal firmware for frequency counting, Operating Modes system control and data storage / retrieval. For operator convenience, the Manual: display provides both monochrome text Coordinates, time, date and reading as well as real-time profile data with an stored automatically at minimum 3 easy to use interactive menu for per- second interval. forming all survey functions. Base Station:

Time, date and reading stored at 3 toThe firmware provides the convenience 60 second intervals. of upgrades over the Internet via its Remote Control: software. The benefit is that instrumen- Optional remote control using RS-232tation can be enhanced with the latest interface.technology without returning the system Input / Output:to us -- resulting in both timely implementation of updates and reduced RS-232 or analog (optional) output

shipping / servicing costs. using 6-pin weatherproof connector

Storage - 32Mbytes (# of Readings) Mobile: 1,465,623Base Station: 5,373,951Gradiometer: 1,240,142Walking Magnetometer: 2,686,975

Dimensions Console: 223 x 69 x 240 mmSensor: 175 x 75mm diameter cylinder

Weights Console: 2.1 kgSensor and Staff Assembly: 1.0 kg

Standard Components GSM-19 console, GEMLinkW software, batteries, harness, charger, sensor with cable, RS-232/USB cable, staff, instruction manual and shipping case.

Optional VLF Frequency Range: Up to 3 stations between 15 to 30.0 kHz Parameters: Vertical in-phase and out-of phase

components as % of total field. 2 components of the horizontal field amplitude and total field

strenght in pT

Resolution: 0.1% of total field


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GPS Options: Description Range Services Time GPS Option A Reception only GPS Option B <1.5m DGPS* GPS Option C <1.0m Ag 114 DGPS*, OmniStar <0.7m GPS Option D <1.2m CDGPS, DGPS *, <1.0M OmniStar. Output Time, Lat / Long, UTM, Elevation and number of Satellites *DGPS with SBAS (WASS/EGNOS/MSAS)

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Potassium RRRReeeessssoooouuuurrrrcccceeee MMMMaaaagggg //// GGGGrrrraaaadddd ((((GGGGSSSSMMMMPPPP--33335555))))

The new PotassiumResource system is thehighest sensitivity andabsolute accuracymagnetometer today. It isdesigned for groundapplications where dataquality, cost control andruggedness are the keysfor project success.

New technologies provideeven more value:

Highest sensitivityavailable at 3.5 pT / rootHz at 1 Hz

Fast sampling at 5 Hz;ideal for walking /vehicular surveys

Integrated backpack forconvenience and highproductivity

GPS elevation values forinput into geophysicalmodeling routines

<1.0 m standard GPS forhigh resolution surveying

Easy-to-use mapping andnavigation capabilities forenhanced surveyperformance

Proven reliability basedon 10 years of R&D

And all of thesetechnologies comecomplete with the mostattracive savings andwarranty in the business.

Looking for minerals, diamonds or oil &gas, and the optimal technologies toassist you in acquiring high qualitymagnetic or gradiometric data for analysisand decision making?

Then, Terraplus has the solution you havebeen seeking. The new optically pumpedPotassium Resource Magnetometer isspecially designed for your needs …establishing a new standard in dataquality, cost control and ruggedness.

The result of more than a decade ofdevelopment, the resource mag is abackpack-mounted version of the provenGSMP-40 ground magnetometer withmany key new features.

Features span a variety of functions,including import, display, navigation,surveying, sampling, and more. The newsystem also supports GPS … anotherimportant capability for today's production-minded explorationist.

Data Quality

High data quality is assured through theresource magnetometer's sensitivity,gradient tolerance and minimal headingerror. Sensitivity is 3.7 pT / root Hz at 5Hz - the highest in the industry. Thismakes the system effective for mappingsubtle anomalies and structure in resourceexploration applications.

The instrument also has a gradienttolerance in excess of 35,000 nT / m,making it ideal for mapping highly ferrousgeological units such as those typicallyencountered in mineral exploration. Inaddition, the system has the lowestheading (orientation) error, therebyresulting in the "cleanest" magneticreadings possible.

Cost Control

In the past five years, industryrationalization has resulted in a greater

Optically pumped Potassium (GSMP-35) Resource system with backpack forelectronics, light weight sensors and cables.

emphasis on cost control for magnetomterand gradiometer surveys. With the newPotassium Resource Magnetometer, theemphasis is also on cost control, throughthe following features:

* Useability - Easy menu-driven operationusing a Personal Digital Assistant (PDA)

* Display - Easy-to-read display withspecific settings for presenting real-timedata on PDA

* Navigation / GPS - The industry's mostversatile navigation technology forsurveying without cut grids for significantcost savings

* Import - Streamlined import of maps forgeoreferenced walking surveys

* Large Capacity Memory - Survey awhole day without concern for memoryspace or the need to dump the memoryduring the survey

Ruggedness

Resource exploration often requirestraveling to remote locations andoperating instruments in less than idealconditions (heat, cold, damp, etc.).

The new Potassium magnetometer hasexcellent environmental specifications aswell as other capabilities that contribute torobustness. These include ruggedpackaging on an ergonomic backpack,and robust sensors … the maincomponent of any magnetometer system.

Terraplus - Your GeophysicalEquipment Supplier

Established in 1989, Terrraplus is one ofthe largest suppliers of geophysicalinstrumentation in Canada, and otherparts of the world. The company pridesitself on its attention to customer needsand finding the exact solution to earthscience instrumentation requirements.

Terraplus also has one of the largestrental pools in Canada and the world withmany types of systems, includingmagnetometers and gradiometers,available.

Terraplus Canada, Inc.52 West Beaver Creek Road, 12

Richmond Hill, ONCanada L4B 1L9

Email: [email protected]: www.terraplus.ca

SpecificationsPerformanceSensitivity: 0.0035 nT / √Hz @ 1 HzResolution: 0.0001 nTAbsolute Accuracy: +/- 0.1 nTDynamic Range: 20,000 to 120,000** nTGradient Tolerance: 30,000 nT/mSampling Rate: 1 hour to 20 HzOperating Temperature -20°C to +55°C** High Field (300,000 nT) Option Available

OrientationSensor Angle: Optimum angle 30°between sensor head axis & field vector.Orientation: 10° to 80° & 100° to 170°Heading Error: < 0.1 nT between 10° to80° and 360° full rotation about axis.

Storage - 16 MB (# of Readings)Gradiometer: 1,398,101Magnetometer: 2,097,152 Base: 1,398,101

Dimensions and Weights

Sensor: 141 x 64mm (external dia.), and < 1.3 kg

Electronics Box: 30.6cm x 8.5cm x 7.5cm and 1.6 kg

PowerPower Supply: 18 to 35 V DCPower Requirements: Approx. 25 W atstart up, dropping to 8 W after warm-upPower Consumption: 8 W typical at 20°CWarm-up Time: <15 minutes @ -40°C

OutputsCycled measurements of the TotalMagnetic Field with position & time asdigital readout or as ASCII format throughan RS-232 COM port. Pre-amplifieroutputs are continuous signals at thePotassium Larmor frequency which isproportional to the magnetic field (7Hz/nT).

ComponentsSensor, pre-amplifier box, all cables,backpack, manual & ship case.

Theory of Operation

A typical alkali vapour magnetometerconsists of a glass cell containing anevaporated alkali metal (i.e. alkali atoms).

According to quantum theory, there is aset distribution of valence electronswithin every population of alkali atoms.These electrons reside in two energylevels as represented by the numbers 1and 2 in the figure below.

Light of a specific wavelength is applied tothe vapour cell to excite electrons fromlevel 2 to 3 only. This process (calledpolarization) reduces the number ofatoms with electrons at level 2. The resultis that the cell stops absorbing light andturns from opaque to transparent.

Electrons at level 3 are not stable andspontaneously decay back to levels 1 and2. Eventually, level 1 becomes fullypopulated and level 2 is fully depopulated.

At this point, RF de-polarization comesinto play. Here, we apply RF power of awavelength that corresponds to theenergy difference between levels 1 and 2to move electrons from level 1 back tolevel 2.

The significance of de-polarization is thatthe energy difference between levels 1and 2 (i.e. the frequency of the RFdepolarizing field) is directlyproportional to the magnetic field.

The system detects the fluctation of lightintensity (i.e. modulation) as the cellbecomes opaque and transparent, andmeasures the corresponding frequency.The frequency value is then converted tomagnetic field units.


APPENDIX B

Map and Data Disk

(SEE ACCOMPANYING CD)

first year assessment report

Documents