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52G03SW2004 2.19091 NORWAY LAKE 010 GEOPHYSICAL REPORT HERONTRACK LAKE PROPERTY, ATIKOKAN, ONTARIO THUNDER BAY MINING DIVISION, NTS 52G/3 FOR ATIKOKAN RESOURCES INC BY DELTA GEOSCIENCE LTD DEC. 5,1998. GRANT A. HENDRICKSON, P.GEO.

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Page 1: GEOPHYSICAL REPORT DEC. 5,1998. GRANT A. HENDRICKSON, P.GEO.€¦ · dec. 5,1998. grant a. hendrickson, p.geo. geophysical report herontrack lake property, atikokan, ontario thunder

52G03SW2004 2.19091 NORWAY LAKE010

GEOPHYSICAL REPORTHERONTRACK LAKE PROPERTY, ATIKOKAN, ONTARIO

THUNDER BAY MINING DIVISION, NTS 52G/3FOR

ATIKOKAN RESOURCES INCBY

DELTA GEOSCIENCE LTD

DEC. 5,1998. GRANT A. HENDRICKSON, P.GEO.

Page 2: GEOPHYSICAL REPORT DEC. 5,1998. GRANT A. HENDRICKSON, P.GEO.€¦ · dec. 5,1998. grant a. hendrickson, p.geo. geophysical report herontrack lake property, atikokan, ontario thunder

GEOPHYSICAL REPORT

HERONTRACK LAKE PROPERTY, ATIKOKAN, ONTARIO

THUNDER BAY MINING DIVISION

NTS 52G/3

FOR

ATIKOKAN RESOURCES INC

BY

DELTA GEOSCIENCE LTD

DECEMBER 5, 1998. GRANT A. HENDRICKSON, P.GEO.

Page 3: GEOPHYSICAL REPORT DEC. 5,1998. GRANT A. HENDRICKSON, P.GEO.€¦ · dec. 5,1998. grant a. hendrickson, p.geo. geophysical report herontrack lake property, atikokan, ontario thunder

52G03SW2004 2.19091

TABLE OF CONTENTSNORWAY LAKE 010C

Introduction

Location Map ..

Claim Maps

Personnel

Equipment

Data Presentation

Reduced Induced Polarization Plan ..

Reduced Resistivity Plan

Survey Procedure

Discussion of the Data

Conclusions and Recommendations ..

Statement of Qualifications ..

References

APPENDIX:

Induced Polarization Plan, 2600m ABResistivity Plan, 2600m AB ,.Induced Polarization/Resistivity Profiles, 2600m ABPosted Induced Polarization Data, 2600m ABPosted Resistivity Data, 2600m AB ..Induced Polarization Section, L.2700E, South Side ..Induced Polarization Section, L.2700E, South Side, Posted DataResistivity Section, L.2700E, South SideResistivity Data, L.2700E, South Side, Posted Data ..Induced Polarization Section, L.2700E, North Side ..Induced Polarization Section, L.2700E, North Side, Posted DataResistivity Section, L.2700E, North SideResistivity Section, L.2700E, North Side, Posted Data

Pages 1-2.

Fig.#l.

Figs. #2a, 2b.

Page 3.

Page 3.

Pages 4-5

Fig. #3R.

Fig. #4R.

Pages 6-7.

Pages 8-13.

Pages 14-15.

Page 16.

Page 17.

Fig. #3. Fig. #4. Fig. #5. Fig. #6a. Fig. #6b. Fig. #7a. Fig. #7b. Fig. #8a. Fig. #8b. Fig. #9a. Fig. #9b. Fig. #10a. Fig. #10b.

Page 4: GEOPHYSICAL REPORT DEC. 5,1998. GRANT A. HENDRICKSON, P.GEO.€¦ · dec. 5,1998. grant a. hendrickson, p.geo. geophysical report herontrack lake property, atikokan, ontario thunder

Induced Polarization Section, L.2800E, North Side .. .. .. Fig. #1 la.Induced Polarization Section, L.2800E, North Side, Posted Data .. Fig. #1 Ib.Resistivity Section, L.2800E, North Side .. .. .. .. Fig. #12a.Resistivity Section, L.2800E, North Side, Posted Data .. .. Fig. #12b.Induced Polarization Section, L.3000E, South Side .. .. .. Fig. #13a.Induced Polarization Section, L.3000E, South Side, Posted Data .. Fig. #13b.Resistivity Section, L.3000E, South Side .. .. .. .. Fig. #14a.Resistivity Section, L.3000E, South Side, Posted Data .. .. Fig. #14b.Induced Polarization Section, L.3000E, North Side .. .. .. Fig. #15a.Induced Polarization Section, L.3000E, North Side, Posted Data .. Fig. #15b.Resistivity Section, L.3000E, North Side .. .. .. .. Fig. #16a.Resistivity Section, L.3000E, North Side, Posted Data .. .. Fig. #\ 6b.

Page 5: GEOPHYSICAL REPORT DEC. 5,1998. GRANT A. HENDRICKSON, P.GEO.€¦ · dec. 5,1998. grant a. hendrickson, p.geo. geophysical report herontrack lake property, atikokan, ontario thunder

INTRODUCTION

At the request of Atikokan Resources Inc., Delta Geoscience Ltd has conducted

ground geophysical surveys on the Herontrack property. This exploration property is

prospective for zinc, silver, and copper mineralization. The property lies well within an

extensive series of claims held by Atikokan to cover a sequence of felsic volcanic rocks

(see Figs. #2a, 2b). These volcanics are part of the Lumby Lake greenstone belt, which

itself is part of the Archean Superior Province. The location map, Fig. #1, illustrates the

property location relative to the map of western Ontario.

Several discussions with Ray Bernatchez, P.Eng., the president of Atikokan

Resources, and his geological consultant Chris Staargaard, P.Geo., prior to the

commencement of geophysical surveying, had established that the strongest hydrothermal

alteration and chloritization was in the felsic sequence between Lumby and Spoon Lakes.

The excellent felsic volcanics geology, when considered in conjunction with Atikokan's

recent discovery of significant silver, zinc, copper mineralization, contained within

several thin sulphide horizons on the immediate west shore of Herontrack Lake, provided

a focus and starting point for the deep looking geophysical surveys now being discussed

within this report.

Geological reports suggested the abovementioned significant mineralization is

distal. This possibility and the fact that the whole area has in the past been the focus for

relatively deep-looking (175m) airborne electromagnetic surveys (INPUT flown by the

Ontario government) suggested the need for a much more deeply focused ground

geophysical survey. The property's excellent geology strongly encouraged this

exploration approach.

Page 6: GEOPHYSICAL REPORT DEC. 5,1998. GRANT A. HENDRICKSON, P.GEO.€¦ · dec. 5,1998. grant a. hendrickson, p.geo. geophysical report herontrack lake property, atikokan, ontario thunder

In deep exploration work, it's generally best to exploit the largest areal physical

property change. In the search for a centre of sulphide deposition, i.e. a feeder zone, it's

the increased sulphide mineralization and alteration that one should focus on, therefore

Delta Geoscience conducted this deeply focused (450m) Induced Polarization/Resistivity

survey. The gradient array (2600 AB) was chosen since it provides a deep depth of

investigation in conjunction with excellent horizontal resolution. This array also allows

for rapid cost effective surveying. The significant anomalies found by this survey were

detailed by smaller gradient arrays, to provide the information necessary to conduct

Induced Polarization and Resistivity depth sections.

The survey area is quite typical of western Ontario, with only moderate

topographic relief. Much of the survey area had been clear-cut approximately eight years

ago and the new growth is quite thick in some areas.

A good network of logging roads provided excellent vehicle access to the centre

of the grid.

Although this survey started in good fall weather, this quickly deteriorated. A

major low-pressure system crossed over the area, which resulted in very strong winds and

an ice storm, followed by two heavy snowfalls. The strong winds, in conjunction with

trees heavily laden with ice and snow, created a huge amount of windfall, which

obliterated much of the grid and created very heavy going for the crew.

During the period November 9-20^, 1998, Delta Geoscience completed

approximately 23 kilometers of Induced Polarization and Resistivity surveying.

Overburden thickness, although generally negligible, varies from O to 10 meters.

There are numerous areas of outcrop.

Page 7: GEOPHYSICAL REPORT DEC. 5,1998. GRANT A. HENDRICKSON, P.GEO.€¦ · dec. 5,1998. grant a. hendrickson, p.geo. geophysical report herontrack lake property, atikokan, ontario thunder

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Page 8: GEOPHYSICAL REPORT DEC. 5,1998. GRANT A. HENDRICKSON, P.GEO.€¦ · dec. 5,1998. grant a. hendrickson, p.geo. geophysical report herontrack lake property, atikokan, ontario thunder

CD—s

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KILOMETRES

ATIKOKAN RESOURCES INC.Herontrack Property

Atikokan Area Ontario

West Block Claim Locations

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Page 9: GEOPHYSICAL REPORT DEC. 5,1998. GRANT A. HENDRICKSON, P.GEO.€¦ · dec. 5,1998. grant a. hendrickson, p.geo. geophysical report herontrack lake property, atikokan, ontario thunder

CD

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KILOMETRES

ATIKOKAN RESOURCES INC.Herontrack Property

Atikokan AreaOntario ——^

East Block Claim Locations

Staargaard Dote: Mor 97 ___ Geological nt- hereiom. 2b

Page 10: GEOPHYSICAL REPORT DEC. 5,1998. GRANT A. HENDRICKSON, P.GEO.€¦ · dec. 5,1998. grant a. hendrickson, p.geo. geophysical report herontrack lake property, atikokan, ontario thunder

PERSONNEL

Grant Hendrickson - Senior Geophysicist/Supervisor.

Jared Strokon - Junior Geophysicist.

Ladislav Zabo - Geographer.

In addition, Atikokan provided two very able helpers to assist with the survey.

These men were residents of Atikokan, Ontario. Their cheerful assistance and local

knowledge was greatly appreciated.

EQUIPMENT

2 - Ms Instruments IP-6 Receivers,

l - Ms Instruments VIP-4000 Transmitter.

6 - Motorola HT1000 VHP Radios,

l - Toshiba T1950CT Field Computer,

l - Hewlett Packard 250C Colour Plotter.

6-ReelsofI.P.

8 - Porous Pot Potential Electrodes.

20 - Stainless Steel Current Electrodes,

l - 4x4 GMC Suburban Truck.

Page 11: GEOPHYSICAL REPORT DEC. 5,1998. GRANT A. HENDRICKSON, P.GEO.€¦ · dec. 5,1998. grant a. hendrickson, p.geo. geophysical report herontrack lake property, atikokan, ontario thunder

DATA PRESENTATION

The geophysical data is presented in three styles:

a) Colour contour plans (Figs. #3-4, 7-16). Note that black and white contour plans

were also produced in the event they are needed for assessment reports.

b) Stacked profiles of the Induced Polarization and Resistivity data (Fig. #5).

All of the above maps are appended to the back of this report and are at a scale of

1:5000.

Included in the text of this report are reduced scale (l: 15000) plans of the colour

contour plans (Figs. #3R and 4R), for convenience in viewing all the data in a standard

page-size format.

The gradient electrode array used to acquire all the Induced Polarization and

Resistivity data has an important advantage over other common electrode arrays in the

horizontal resolution of apparent sulphide anomalies, while maintaining an excellent

depth of investigation

A nine point Manning filter (minor smoothing) was applied to the grid files prior

to producing the contour plans.

The colour maps that accompany this report have been prepared so that low

numerical values are displayed in the blue colour, whereas the higher numerical data

values are red.

The stacked profile plan (Fig. #5) allows one to view the anomalous areas without

the introduction of any contouring bias. Anomaly profile wavelengths are directly

dependent on the width and depth of anomalous zones.

Page 12: GEOPHYSICAL REPORT DEC. 5,1998. GRANT A. HENDRICKSON, P.GEO.€¦ · dec. 5,1998. grant a. hendrickson, p.geo. geophysical report herontrack lake property, atikokan, ontario thunder

The posted data plans allow one to view the raw data and are generally required

for assessment reports.

Page 13: GEOPHYSICAL REPORT DEC. 5,1998. GRANT A. HENDRICKSON, P.GEO.€¦ · dec. 5,1998. grant a. hendrickson, p.geo. geophysical report herontrack lake property, atikokan, ontario thunder

Fig. #3R.

wane_____ajoci:

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Induced Polarization Plan Reduced to 1:15,000.

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ATIKOKAN. OtTTARIO

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Page 14: GEOPHYSICAL REPORT DEC. 5,1998. GRANT A. HENDRICKSON, P.GEO.€¦ · dec. 5,1998. grant a. hendrickson, p.geo. geophysical report herontrack lake property, atikokan, ontario thunder

Fig. #4R.

MOPE______acme______naot______iaeot______atom______woot______aaoog______Moot

l

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Resistivity Plan Reduced to 1:15,000.

ATIKOKAN RESOURCES INC

BmUur InUml 1009 0*0;-Bnl imrteU, H * MOOm. k

_______Hw, 1(M______ GBOSCONCS LTD,

Page 15: GEOPHYSICAL REPORT DEC. 5,1998. GRANT A. HENDRICKSON, P.GEO.€¦ · dec. 5,1998. grant a. hendrickson, p.geo. geophysical report herontrack lake property, atikokan, ontario thunder

SURVEY PROCEDURE

Atikokan had previously established a large grid on their property. Survey lines

were 100 meters apart with survey stations established every 25 meters.

Survey lines bearing due north were tied together by three tie lines at 1900N,

2400N and 3200N. The grid was established so that all co-ordinates are in northings and

eastings.

As mentioned earlier, the gradient array electrode configuration was used for all

the I.P/Resistivity work. The basic grid coverage was completed with a current electrode

separation "AB" of 2600 meters, and a potential electrode separation "MN" of 50 meters.

Overlap on each reading was fifty percent, i.e. 25 meters between data points. Note that

it is generally preferable to keep the "MN" distance as small as signal levels and grid

station chaining accuracy will allow, in order to achieve the best possible horizontal

resolution of anomalies. With the electrode array as outlined above, and the very high

resistivities encountered, the depth of investigation is approximately 700 meters, with the

array focused at the 450-meter depth.

For the detailing of anomalies, a series of smaller "AB" gradient arrays were

centered over the anomalies of interest. For this detailing, the "MN" distance was fixed

at 25 meters for improved horizontal resolution of near surface features. If, in the future,

more resolution in key areas is required, one can reduce the "MN" size further, since

signal to noise levels are excellent in this survey area due to the high ground resistivities

and powerful transmitter employed.

The five induced polarization/resistivity sections (Figs. #5-14) that accompany

this report were constructed by surveying portions of lines 3000E, 2800E and 2700E with

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7

varying size gradient arrays, each clearly focused at a different exploration depth. The

current electrode separations were varied down from 2600m, 1800m, 1200m and 600m.

The focus depth of these arrays is considered to be approximately 0.19 of the current

electrode separation. The depth of investigation of an electrode array can normally be

accurately determined from the simultaneous inversion of chargeability and resistivity

depth sounding data (when available), in conjunction with detailed geologic knowledge

of the stratigraphy from borehole and/or surface outcrops. An array's depth of

investigation parameters obtained from detailed analysis of one survey area, can

generally be applied to similar geological settings elsewhere.

The apparent depth scale shown on the I.P/Resistivity sections that accompany

this report is the depth below the ground surface and assumes flat topography. When

more detailed topographic information is available, the geophysical data can be draped

with the topography. This step is considered essential when working with shallow

dipping or flat lying mineralized zones in steep terrain. The moderate topography at

Herontrack Lake does not present this problem.

The geophysical survey work so far described was designed to evaluate the

Herontrack property in a cost-effective manner. The prime goals of this deeply focused,

high-resolution survey were as follows:

a) Sulphide mineralization (spatial position and strength).

b) Assistance in geological mapping of the different lithologics and alterations.

c) Delineation of major structures.

Page 17: GEOPHYSICAL REPORT DEC. 5,1998. GRANT A. HENDRICKSON, P.GEO.€¦ · dec. 5,1998. grant a. hendrickson, p.geo. geophysical report herontrack lake property, atikokan, ontario thunder

DISCUSSION OF THE DATA

Lumby Lake and Herontrack Lake prevented full survey coverage. Initially, we

had hoped to survey these relatively narrow lakes from a boat, however a rapid freeze-up

of the lake in conjunction with the storms mentioned earlier, prevented this from being

effective. Ice thickness was also not sufficient at this time to allow for lake access.

The deeply focused Induced Polarization and Resistivity plans (Figs. #3 and 4)

clearly outline the property's geology and significant sulphide occurrences. The contour

patterns generally support a steep north dip to the volcanics stratigraphy. Computer

modelling of induced polarization/resistivity responses from a large, deep (400m)

massive sulphide target, has indicated that we can expect only a very modest reduction in

resistivity in conjunction with a 3 to 6 mV/V increase in the induced polarization

response above background.

The most significant anomalies were studied in detail through the sections

prepared for lines 3000E, 2800E and 2700E (Figs. #7-16).

The overall very high resistivity background (ranges 4000 to 40,000 ohm-m) and

the direct correlation of induced polarization anomalies with all the known surface

sulphide occurrences, indicates that we are working with a very siliceous package of

rocks and that all I.P. responses are likely related to sulphide mineralization. The

presence (within the 2300N to 3100N corridor) of graphitic metasediments containing

disseminated sulphides can be discounted, although not totally ignored. When the grid is

extended further north, where intercalated mafic volcanics and metasediments have been

mapped, there may be more complications, particularly since the northern area is known

Page 18: GEOPHYSICAL REPORT DEC. 5,1998. GRANT A. HENDRICKSON, P.GEO.€¦ · dec. 5,1998. grant a. hendrickson, p.geo. geophysical report herontrack lake property, atikokan, ontario thunder

to host numerous bedrock conductors detected by previous airborne electromagnetic

surveys.

Offsets in the contour patterns suggest a northeast trending linear structure

(possibly containing non-magnetic dikes) passes through the grid from approx. 2475E,

1900N to 3075E, 3200N. The ground magnetic data previously collected by Atikokan

should be reprocessed and displayed in solid colour contour plans.

Geologic features of good depth extent are well outlined in the accompanying

plans (Figs. #3 and 4), however any geologic feature of very poor depth extent will not be

outlined very well, except in the detail areas.

The broad high resistivity zone that is outlined in the southwest corner of the

survey, likely represents a sub-volcanic intrusion with a related flow or sill-like body

(width approx. 100 meters) crossing the grid at approx. 21 SON.

The broad resistivity low centered at 2450N, but extending to the north, is likely

related to alteration and increases in the overall sulphide content of the rocks at depth.

The sections (Figs. #7-16) illustrate this point.

The chargeability plan (Fig. #3) is an interesting map. The discordant I.P.

anomaly centered on line 3000E is at odds with the overall stratigraphy. This anomaly's

strike extent is from 2800E to 3200E (400m) and overall this anomaly may represent

three or four stacked sulphide zones occurring in a stratigraphic interval of approx. 600

meters. The location of this anomaly in the downdip and hanging wall of the main

sulphide showings is an important feature that could represent a felsic centre. This

anomalous area was detailed and will be discussed further later in this report,

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10

The broad apron to the induced polarization contours that extent to the south at

2950N between lines 2500E and 31 GOE, is also an important feature that is best

manifested on L.2800E, where the I.P. response suggests an intense vertical dipping

apparent sulphide zone at 3075N.

The long strike length I.P. anomaly centered at 2350N and extending to the west

of line 2700E, lies largely within Lumby Lake. This I.P. anomaly, while not adequately

defined, is probably related to two closely spaced sulphide zones subcropping beneath the

lake. Near surface, these zones are relatively thin but widen appreciably at depth. The

proximity and on-strike relationship of this large anomaly to the known mineralization

exposed at approx. 2950E, 2400N, is very encouraging, despite the fact we were only

able to partially outline the body at this time. The sections prepared for the south end of

line 2700E (Figs. #1 and 8), help in the understanding of the potential of this anomaly.

The main showings of significant mineralization do correlate very closely with

two relatively narrow I.P. responses centered at 2400N and 2300N respectively on line

3050E. These near surface narrow I.P. responses show excellent depth extent. The

improvement in the I.P. response with depth clearly indicates an increase in the

percentage of sulphides at depth.

A discussion of each individual section follows:

Section L.2700E, South Side: (Figs. #7 and 8)

The two relatively thin I.P. anomalies that extend up to the surface are related to a

much stronger feature at depth, centered at 2400N. This deep feature (400 meters) is

clearly dipping steeply north and is an excellent target for massive to semi-massive

sulphide mineralization.

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11

The flat lying feature at a depth of approx. 350m may represent a feeder zone to

the main responses discussed above. There is some suggestion of another felsic centre in

theareaof2500E, 2600N.

The modest resistivity lows that directly correlate with the increases in induced

polarization response, clearly support the interpretation of semi-massive sulphides at

depth.

The near vertical broad zones of high resistivity (width 100m), centered at 2175N

may represent a very siliceous felsic flow.

Section L.2700E. North side: (Figs. #9 and 10)

Starting at 3000N and extending to the north edge of the survey, there is a strong

increase in the I.P. response that extends from the surface to depth (500m). Both the

resistivity and I.P. data suggest that this is a geologically complicated area. There is a

correlation of the highest resistivity response (35000 ohm-m) with the highest I.P.

response (24 mV/V) at 3200N, that could be related to disseminated sulphides (2-5 07o) in

a very siliceous rock, perhaps a Chert. Some relatively shallow drilling could confirm

this.

Section L.2800E, North side: (Figs. #11 and 12)

This section was prepared to evaluate the highest I.P. responses recorded during

the survey. A very localised improvement in the I.P. response centered at 3125N was

noted. This improvement in the response occurs at depth within a broad near surface area

of anomalously high chargeability and correlated directly with a distinct, but modest

resistivity low. Resistivities dropped from approx. 20,000 ohm-m to 9,000 ohm-m.

Page 21: GEOPHYSICAL REPORT DEC. 5,1998. GRANT A. HENDRICKSON, P.GEO.€¦ · dec. 5,1998. grant a. hendrickson, p.geo. geophysical report herontrack lake property, atikokan, ontario thunder

12

The detailed work showed that the anomaly peaked at 47 mV/V with the top of

the zone being approx. 225 meters below the surface. This feature is an excellent target

for a relatively small semi-massive body surrounded by a broad zone of disseminated (3-

40/)) sulphides.

The bulge or elongation of the I.P. anomaly that extends to the south at the 350

meter depth may be related to a feeder zone that crosscuts the stratigraphy.

Section L.3000E. South side: (Figs. #13 and 14)

This section was prepared to evaluate the very significant surface showings

discovered by Atikokan. These important showings correlate closely with two thin near

vertical I.P. responses centered at 2400N and 2300N respectively. The I.P. responses

exhibit good depth extent. The rapid depth attenuation of the directly correlating near

surface modest resistivity low (4000 ohm-m) is predicted by computer modelling. The

improvement in apparent sulphide content at depth appears closely related to the apparent

flat lying feeder zone at the 350m depth discussed previously. Notice how this zone is

crosscutting the steeply north dipping felsic volcanic stratigraphy. Shallow drilling of the

showings is initially warranted. Any encouragement in the drilling should lead to deeper

downdip tests.

Section L.3000E. North side: Figs. #15 and 16)

This section was prepared to evaluate the potential for a deeply buried felsic

centre or feeder zone occurring along the centre portion of line 3000E. The occurrence of

at least four stacked I.P. anomalies (apparent sulphide horizons) between 2300N and

3100N along this line is considered very significant. The excellent felsic fragmental

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13

geology and very significant mineralization at 2400N further supports the concept of a

feeder zone.

The broad, flat lying IP. response centered at 2975N and lying at a depth of 360

meters could be the centre for the postulated deeply buried feeder zone/felsic centre.

Remember that modelling results have indicated a deeply buried massive sulphide

deposit would only have an I.P. response 4 or 5 mV/V above background.

At 2675N there is a narrow steeply north dipping I.P. anomaly. The top of this

anomaly lies at a depth of approx. 150 meters. This feature likely represents another

sulphide horizon which is clearly related to the postulated, much deeper feeder zone.

Both zones should ultimately be drill tested.

Page 23: GEOPHYSICAL REPORT DEC. 5,1998. GRANT A. HENDRICKSON, P.GEO.€¦ · dec. 5,1998. grant a. hendrickson, p.geo. geophysical report herontrack lake property, atikokan, ontario thunder

14

CONCLUSION AND RECOMMENDATIONS

This geophysical project began with the concept that a deeply buried felsic

eruptive centre was probably responsible for the apparent distal mineralization observed

in the trenching on the west shore of Herontrack Lake. In the detection of massive or

semi-massive sulphide related to such a deep centre, it was felt that the broad increase in

the sulphide content of the rocks that envelopes massive sulphide deposits could be

detected and mapped with the induced polarization techniques outlined in this report.

The spatial position and amplitude of the I.P/Resistivity anomalies outlined by

this survey clearly support the original exploration concept and several significant drill

targets have been outlined, all of which have excellent geological support. The amplitude

and size of these anomalies is excellent, considering their depths.

Not surprisingly, the better anomalies are occurring at depths that largely preclude

their detection by the airborne electromagnetic surveys flown several years previously.

Five of the most significant drill targets are listed below:

1) L.3050E, the two shallow I.P. zones at 2400N ands 2300N.

2) L.3000E, the deep I.P. zone at 2700N and its extension to the north.

3) L.2800E, the deep I.P. zone at 3125N and its extension to the south.

4) L.2700E, the deep steeply north dipping I.P. zone at 2400N and its extension to

the north.

5) L.2700E, the moderate depth I.P. zone at 3200E that correlates with very high

resistivity.

Casing should be left in all the drill holes, since holes may ultimately be deepened

and borehole E.M. surveys may prove helpful.

Page 24: GEOPHYSICAL REPORT DEC. 5,1998. GRANT A. HENDRICKSON, P.GEO.€¦ · dec. 5,1998. grant a. hendrickson, p.geo. geophysical report herontrack lake property, atikokan, ontario thunder

15

This report needs to be closely correlated with all of the available geological

information, particularly the maps illustrating the alteration indexes and felsic fragmental

geology.

Grant A. Hendrickson, P.Geo.

Page 25: GEOPHYSICAL REPORT DEC. 5,1998. GRANT A. HENDRICKSON, P.GEO.€¦ · dec. 5,1998. grant a. hendrickson, p.geo. geophysical report herontrack lake property, atikokan, ontario thunder

16

STATEMENT OF QUALIFICATIONS

Grant A. Hendrickson

B.Science, University of British Columbia, Canada, 1971. Geophysics option.

For the past 27 years, I have been actively involved in mineral exploration projects throughout Canada, the United States, Europe, Central and South America and Asia.

Registered as a Professional Geoscientist with the Association of Professional Engineers and Geoscientists of the Province of British Columbia, Canada.

Registered as a Professional Geophysicist with the Association of Professional Engineers, Geologists and Geophysicists of Alberta, Canada.

Active member of the Society of Exploration Geophysicists, European Association of Geoscientists and Engineers, and the British Columbia Geophysical Society.

Dated at Delta, British Columbia, Canada, this .5" day of Dec 1998.

G. *. HENDRICKSON' ~) l

IA/, Jf

*

Grant A. Hendrickson, P. Geo.

Page 26: GEOPHYSICAL REPORT DEC. 5,1998. GRANT A. HENDRICKSON, P.GEO.€¦ · dec. 5,1998. grant a. hendrickson, p.geo. geophysical report herontrack lake property, atikokan, ontario thunder

17

REFERENCES

Barker, Ron, Blunk, Inken, and Smith, lan, Jan, 1996: Geophysical Considerations in the Design of the U.K. National Resistivity Sounding Database: First Break, Vol. 14, No. 2, February, 1996.

Battacharya, B.B., and Dutta, I., 1982: Depth of Investigation Studies for Gradient Arrays over Homogeneous Isotropic Half-Space: Geophysics, Vol. 47, 1198-1203.

Coggon, J.H., 1973: A Comparison of I.P. Electrode Arrays: Geophysics, Vol. 38, 737- 761.

Langore, L., Alikay, P, and Gjovreku, D., 1989: Achievement in Copper Sulphide Exploration in Albania with I.P. and E.M. Methods: Geophysical Prospecting 37,975-991.

Malmqvist, L., 1978: Some Applications of I.P. Technique for Different Geophysical Prospecting Purposes: Geophysical Prospecting 26, 97-121.

Staargaard, C.F., March 31, 1997: A Proposal for Exploration on the Herontrack Lake Property, Lumby Lake Area, Ontario, Canada.

Ward, Stanley H., 1990: Resistivity and Induced Polarization Methods: Geotechnical and Environmental Geophysics, Vol. l, Investigations in Geophysics 5, 147-190.

Page 27: GEOPHYSICAL REPORT DEC. 5,1998. GRANT A. HENDRICKSON, P.GEO.€¦ · dec. 5,1998. grant a. hendrickson, p.geo. geophysical report herontrack lake property, atikokan, ontario thunder

Ontario o* Assessment Work Performed on Mining Land

U(2)MHlM()).ltS.0.1tM

gUont 86(2) md W(3) of Hw MWno.(Mfll WOnt WtO OOfflMpOAQ WWI VM

52G03SW2004 2.19091 NORWAY LAKE 900Instructions: - For work performed on Crown Lands before recording a claim, use form 024QMI

-Please type or print in ink. Jr8|9iiilliBil,2i3,4iS,6

1. Recorded holder(s) (Attach a fat If necessary) ^ * J. D ^ *-^ ___________dent Number

AddmuDU)

Telephone Numbtr707-5*97

/2-fVpAfr . n N!. rf l l f*^u i^ fi-XlA l J |X^ i POT" i Cd) FM Number

Oient Number

Addnt*

Fix Number

2. Type of work performed: Check (^) and report on only ONE of the following groups for this declarationGeotechnical- prospecting, surveys, assays and work under section 18 (nags)

Physical: drifting stripping, trenching and associated assays

Rehabilitation

Work Type

jOffice Use

ComnwfcyToWSValueof Work Claimed ^ 7

|

Te rfTS Reference

Gtotal PcnMoning SpMm Ma (fMMfcl TwmKptAn* Mining Division 7^-^^MOfG*tanNumb(r Resident Geologist

District

Please remember to. -obtain a work permit from the Ministry of Natural Resources as required? *"- provide proper notice to surface rights holders before starting work;- complete and attach a Statement of Costs, form 0212;- provide a map showing contiguous mining lands that are linked for assigning work;- include two copies of your technical report

3. Pereon or companies who prepared the technical report (Attach a list if necessary)

&/S* t i*. Ttdphonc Numbtr

NumberFax

RECEIV

GEOSCIENCE ASSESSMENT—'——orncc ——4. Certification by Recorded Holder or Agent l, f?i*sf r , do hereby certify that l have personal knowledge of the facts set forth in

7 (Mn Mn*)this Declaration of Assessment Work having caused the work to be performed or witnessed the same during or after its completion and. to the best of my knowledge, the annexed report is true.

A^S* ^LAgent's Telephone Number Fax Number^7-5-9-7

•J -

Page 28: GEOPHYSICAL REPORT DEC. 5,1998. GRANT A. HENDRICKSON, P.GEO.€¦ · dec. 5,1998. grant a. hendrickson, p.geo. geophysical report herontrack lake property, atikokan, ontario thunder

iu t,i*m*5. Work to be recorded and distributed, worn can oinyland where work was performed, at the time work was performed. A map showing the contiguous Ink must

111- a?/Mnmg CWm Number. Or ifwofk wtt *J0f** on othty •vajUf mMn9 tanc. sltowln Wt

T* 7*27

Number of CMm Unlto.ForoOwr mMng tond, tot

16 h*

pWVD^HMQ Oft (Ms)eMmerotwrnVPanQ EMQ.

vatutofworfc •ppll*)d to this

N/A

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UtodMribuMd M i Mure date

S24.000 S2.t25

1234867 12 S24.000

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"705*42 16 /B.7L.60

/i/e? 32. S, 2400 ^9-1JS- av

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/3./O "22. B S 600

•/"2.1&22.910 f Z. /O 236 4-

14 12.15*^.*} JA i ^ u 133315

Celunn Total*

c. 'Z* . do henfby-ceWfythat the above work credits are eligible under subsection 7 (1) of the Assessment Work Regulation 8/96 for assignment to contiguous claims or for application to the claim where the work was done.

pf Recanted HolderS?. /f f?

6. Instructions for cutting back credits that are not approved.

Some of the credits claimed in this declaration may be cut back. Please check K) in the boxes below to show how you wish to prioritize the deletion of credits:

O 1 Credits are to be cut back frcm (he Bar* IrstfoNcM^ by op^O 2. Credits are to be cutback starting with the claims feted last workingO 3. Credits are to be cut back equaly over aS cbims feted in this declaration;D 4. Credits are to be cut back as prioritized on the attached appendix or as foH ws (describe):

Note: If you have not indicated how your credits are to be deleted, credits wHI be cut back from foflowed by option number 2 if necessary

For Office Use Only——————-—————---— Received Stamp

JAN i Q JS33SEOSC,ENCf ,SSEssMENT

THUNDER BAYWINING DIVtSIONRECEIVED

De*nwdAppravw)Oate

DttoAcvcovad

Date Notification Sent

Tow) Vilut rf Credit Approved

Approved (or Rteording by Mining Rwoidcr (Sigiulun)

** TOTPL PflGE.04 **

Page 29: GEOPHYSICAL REPORT DEC. 5,1998. GRANT A. HENDRICKSON, P.GEO.€¦ · dec. 5,1998. grant a. hendrickson, p.geo. geophysical report herontrack lake property, atikokan, ontario thunder

Ontario Statement of Coste for Assessment Credit•id MMS

Pawn* Manrafion ettadad en tt* tarn Is ebWntd undir t* *ulhoi*|r ar wbMcfen6(l)o(VM

Tranudton Number (oflice UMJ

U)-W fa Art) AtWo* RtgiMon V9t. Under Mctfen 8 ol tt* Mntag nd wfti tt* n**v Iwid holdw. Quofara ibout N(

o( Northon Oimtinmrt md Mkm. *d f^r. 93i Ran^| UtatUP*^. P^y QnHrio^3E

-\ l

Work TypeUnltv of wocfc

Otptndbig on M lyp* of wor*. W tw numtar of touraMy*wgrfc*d.m*OTo(drtfeio,l grid In*, numtar of origin, 4te.

Cost Ptr UnK off wonc

Total Cert

ri ff

Associated Costs (e.g. supplies, mobilization and demobilization).

/g/^: ga//n.66

Transportation Costs

W 2 O 1999Food and Lodging Costs

Calculations of Filing Discounts:

JAN 2 0 IC39GEOSCIENCE ASSESSMENT

OFFICE

Total Value of Assessment Woric

1 . Work filed within two years of performance is claimed at 100* of the above Total Value of Assessment Work.2. If work is filed after two years and up to five years after performance. rt can only be claimed at 50* of the Total

Value of Assessment Work. If this situation applies to your claims, use the calculation below:

TOTAL VALUE OF ASSESSMENT WORK Total t value of worked claimed.

Note:- Work older than 5 years is not eligible for credit- A recorded holder may be required to verify expenditures claimed in this statement of coste within 45 days of a

request f or verification and/or con^ction/darrflcation. If \^ertfication and/or carrectiori/dariricatkjn is not made, the Minister may reject au or part of flie assessment work submitted.

Certification verifying costs:

l, J\qttn**a n. OertfCLlC'ne'L* .l, -r*iqbMt)uf fi. OerMeLlcWL, . do hereby certify, that the amounts shown are as accurate as may reasonably

be determined and the costs were incurred white conducting assessment work on the lands indicated on the accompanying

Declaration of Work form as T/^eSs&t/M ___________________ l am authorized to make this certification.

THUNDER BAYMNMQDmWONWECKVEO

Page 30: GEOPHYSICAL REPORT DEC. 5,1998. GRANT A. HENDRICKSON, P.GEO.€¦ · dec. 5,1998. grant a. hendrickson, p.geo. geophysical report herontrack lake property, atikokan, ontario thunder

Ministry of Ministere duNorthern Development Developpement du Nordand Mines et des Mines Ontario

Geoscience Assessment Office 933 Ramsey Lake Road

June 15, 1999 6th FloorSudbury, Ontario

Raymond A. Bernatchez P3E 6B5ATIKOKAN RESOURCES INC.BOX 1376, 126 WILLOW ROAD Telephone: (888) 415-9846ATIKOKAN, ONTARIO Fax: (877)670-1555POT-1 CO

Visitourwebsite at: www.gov.on.ca/MNDM/MINES/LANDS/mlsmnpge.htm

Dear Sir or Madam: Submission Number: 2.19091

Status Subject: Transaction Number(s): W9940.00024 Approval After Notice

We have reviewed your Assessment Work submission with the above noted Transaction Number(s). The attached summary page(s) indicate the results of the review. WE RECOMMEND YOU READ THIS SUMMARY FOR THE DETAILS PERTAINING TO YOUR ASSESSMENT WORK.

If the status for a transaction is a 45 Day Notice, the summary will outline the reasons for the notice, and any steps you can take to remedy deficiencies. The 90-day deemed approval provision, subsection 6(7) of the Assessment Work Regulation, will no longer be in effect for assessment work which has received a 45 Day Notice. Allowable changes to your credit distribution can be made by contacting the Geoscience Assessment Office within this 45 Day period, otherwise assessment credit will be cut back and distributed as outlined in Section #6 of the Declaration of Assessment work form.

Please note any revisions must be submitted in DUPLICATE to the Geoscience Assessment Office, by the response date on the summary.

If you have any questions regarding this correspondence, please contact Bruce Gates by e-mail at [email protected] or by telephone at (705) 670-5856.

Yours sincerely,

ORIGINAL SIGNED BYBlair KiteSupervisor, Geoscience Assessment OfficeMining Lands Section

Correspondence ID: 13904

Copy for: Assessment Library

Page 31: GEOPHYSICAL REPORT DEC. 5,1998. GRANT A. HENDRICKSON, P.GEO.€¦ · dec. 5,1998. grant a. hendrickson, p.geo. geophysical report herontrack lake property, atikokan, ontario thunder

Work Report Assessment Results

Submission Number: 2.19091

Date Correspondence Sent: June 15, 1999 Assessor: Bruce Gates

Transaction NumberW9940.00024

First Claim Number1185425

Township(s) 1 Area(s)NORWAY LAKE

StatusApproval After Notice

Approval Date

June 15, 1999

Section:14 Geophysical IP

Correspondence to:Resident Geologist Thunder Bay, ON

Assessment Files Library Sudbury, ON

Recorded Holder(s) and/or Agent(s):Raymond A. Bernatchez ATIKOKAN RESOURCES INC. ATIKOKAN, ONTARIO

Page: 1Correspondence ID: 13904

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REFERENCES

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•I3M.X? 1185427

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f f ^^I2I69IODISTRICT22M l—— ———— -— —44M—————— —l

DBTRICT

I2I6496I2I6491216494-L --

2166861021564012164371

49^*00

91 0 I5'

Sawbill Bay - Marmion Lake G-558

AREAS WITHDRAWN FROM DISPOSITIONMHO - Miring Rights OnlySKO Surf act* i^ight* OnlyMtS - Mining and Surface Rights

Dajcrlplion Qrdar No. Date^ Disposition File No.

mma a IURFACI WOHT* WTHWWWW. OWPEH w--w-4ow,MTEP M/Of /B7, FCm A PREeCHPCP ffJBH

O-TB e/9* NWR

L L n j The information thai appear* on 1hta map ha* been compiledfrom varlou* sources, and accuracy b not guaranteed, l nose wlahlna 1o stake mining daim* shouid consult with the Miring Recorder, Ministry of Northern Development and Mines, for optional Information on the status of the lands shown hereon.

LEGENDHIGHWAY AND ROUTE No OTHER ROADS TRAILSSURVEYED LINES

TOWNSHIPS, BASE LINES, ETCLOTS, MINING CLAIMS, PARCELS, ETC

UNSURVEYED LINES:LOT LINESPARCEL BOUNDARYMINING CLAIMS ETC.

RAILWAY AND RIGHT OF WAY UTILITY LINES NON-PERENNIAL STREAM F LOGGING OR F LOOPING RIGHTS ' SUBDIVISION OR COMPOSITE PLAN RESERVATIONS ORIGINAL SHORELINE" MARSH OR MUSKEGMINESTRAVERSE MONUMENT

•ET l t

DISPOSITION OF CROWN LANDS

TYPE OF DOCUMENT SYMBOLPATENT, SURFACE ft MINING RIGHTS .................. t

" t SURFACE RIGHTS ONLY........................ 6" .MINING RIGHTS ONLY--..—..-............... Q

LEASE, SURF ACE li MINING RIGHTS.————-.—- B" .SURFACE RIGHTS ONLY.......,.......,..—,... B" .MINING RIGHTS ONLY......-—......,-..—-. B

LICENCE OF OCCUPATION ............................... TORDER-IN-COUNCIL .......,............,.....-.....—... OCRESERVATION ....^...................,-...........™. ©CANCELLED ___.......,..^.......................... *SAND ft GRAVEL .......M ...........,...m............. f) ,

LAND Use PERMIT FOR COMMERCIAL TOURISM, OUTPOST CAMPS Y/MOTff: MININO MIGHTS IN FARCE LS PATENTED PRIOR TO MAY 8

1*13, VISTEO IN ORIGINAL PATENTEE BY THE PUBLIC LAND* ACT. R.t.O. 1O7O. CHAP 3*O, tt C *3, tUUEC 1.

SCALE: 1 INCH * 40 CHAINS

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ATIKOKANMINING DIVISION

THUNDER BAYLAND TITLES/ REGISTRY DIVISION

RAINY RIVER/KENORAMinistryof LandNatural ManagementResources Branch

Ontario

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H 85 425

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52G03SW2004 2.19091 NORWAY LAKE 220

ATIKOKAN Resources me.A Mineral Showing

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Page 35: GEOPHYSICAL REPORT DEC. 5,1998. GRANT A. HENDRICKSON, P.GEO.€¦ · dec. 5,1998. grant a. hendrickson, p.geo. geophysical report herontrack lake property, atikokan, ontario thunder

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DELTA GEOSCIENCE LTD, Fig

52G03SW2004 2.19091 NORWAY LAKE 300

Page 43: GEOPHYSICAL REPORT DEC. 5,1998. GRANT A. HENDRICKSON, P.GEO.€¦ · dec. 5,1998. grant a. hendrickson, p.geo. geophysical report herontrack lake property, atikokan, ontario thunder

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52G03SW2004 2.19091 NORWAY LAKE

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52G03SW20Q4 2.19091 NORWAY LAKE 32 Q

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DELTA GEOSCIENCE LTD, Fig

52G03SW2004 2.19091 NORWAY LAKE 340

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Page 54: GEOPHYSICAL REPORT DEC. 5,1998. GRANT A. HENDRICKSON, P.GEO.€¦ · dec. 5,1998. grant a. hendrickson, p.geo. geophysical report herontrack lake property, atikokan, ontario thunder

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Page 55: GEOPHYSICAL REPORT DEC. 5,1998. GRANT A. HENDRICKSON, P.GEO.€¦ · dec. 5,1998. grant a. hendrickson, p.geo. geophysical report herontrack lake property, atikokan, ontario thunder

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Page 57: GEOPHYSICAL REPORT DEC. 5,1998. GRANT A. HENDRICKSON, P.GEO.€¦ · dec. 5,1998. grant a. hendrickson, p.geo. geophysical report herontrack lake property, atikokan, ontario thunder

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