42C12NW0M7 42CiaNW0016 MOLSON LAKE

HAD. CARLSON,V FM. O.. F. EN9.

CONSULTING GEOLOGIST

110 MARTIN STREET PORCUPINE, ONTARIO. PON KX)

010

PROGRESS REPORT

ON

RECEIVEDOCT l 91982

MINING LANDS SECTION

MINERAL EXPLORATION OF THE PROPERTY

OF

BEL-AIR RESOURCES LIMITED

at/

m

IN

THE HEMLO AREA

DISTRICT OF THUNDER BAY

ONTARIO

IN THE PERIOD OCTOBER ATH, - NOVEMBER 27th. 198L, ' :

By: H.D. Carlson, Ph. D., P. Eng. Consulting Geologist

42C12NW0147 42C12NW0816 MOLSON LAKE 010C

TABLE OF CONTENTS

Page Introduction -----——————————— — —— — ———-- IResults of Geological Survey —--———— - —— —— -— 1-2 Results of Magnetometer Survey ——— — — ——— ———— 2Results of Electromagnetic Survey —- — — — - ———— - 3 Resluts of Prospecting ———————————————————— 3-5 Results of Mechanical Stripping ——- — — —— ——— -- 5-7Results of Trenching and Sampling —--—-————--— 7-8 Conclusions —— ———— — —— ———— —— - — ———— — 9-10Recommendations —— —— ———— —————— — —— ————— - 10-11Certificate ———— ——— ———--——— ———————————— 12

PHONI 239-4963

H. D. CARLSON,PR D.. P. EMO.

CONSULTING GEOLOGIST

110 MARTIN STREET PORCUPINE, ONTARIO. RON ICO

INTRODUCTION

This report describes the progress, and the results obtained to date, of certain mineral exploration programs performed on the property of Bel-Air Resources Limited in the Hemlo area, District of Thunder Bay, Ontario, during the period October 4th, to November 27th, 1981. These programs included geological mapping, surface prospecting of rock exposures, magnetometer survey, electromagnetic survey, mechanical stripping of overburden by backhoe and bulldozer, plugger drilling, blasting and sampling of rock trenches.

In previous and companion reports on the subject property (September 16, 1981, and/^Jbru^yy/^, 1982) the writer has described such aspects and attributes of the ground as Property, Location and Access, Topography and Pleistocene Geology, History of Exploration, and Regional Geological and Geophysial Considerations; since the details of these items are available to the reader they need not be repeated here.

RESULTS OF GEOLOGICAL SURVEY

The property of Bel-Air Resources Limited in the Hemlo area has been mapped geologically at a scale of l incl equals 400 feet. Obtaining knowledge of the details of..the *^- stratigraphy of the various rock formations present, and of-~the possible presence of significant mineralization of economic interest, was much hampered by the presence of widespread,

-2-

though thin, screens and coverings of overburden, humus, moss and lichen. Nevertheless; the survey, in conjunction with stripping and trenching operations, has been successful in at least roughly delineating a pyritic-micaceous-cherty-agglomeratic- tuff horizon in an east-west trending belt of metavolcanic- metasedimentary rocks. This rusty-weathering cherty-pyrite- tuff horizon is at least 2,400 feet long, being open at the east end, and has widths from 40 feet to at least 75 feet. It strikes east-west and dips north at 70 0 -75 0 . It has a number of interesting features in common with a similar zone on the property of Corona Resources Limited, some three miles to thej east, whereon a promising gold deposit is currently under development.

RESULTS OF MAGNETOMETER SURVEY

The magnetometer readings rather closely delineated belts of the l Group rocks (mafic volcanics) which stand out as linear series of magnetic highs, in the northeastern part of the property along Highway 17, and in the southeastern part of the property between Cache Lake - Cigar Lake on the north and the granitoid pluton on the south.

The survey was particularly useful in helping to delineate the positions, widths and lateral extent of the larger diabase dikes on the property.

According to T.L. Muir, some of the 3 Group rocks (metasediments) in the Hemlo area contain appreciable amounts of accessory magnetite, and the magnetometer readings may subsequently prove to be useful in helping to unravel the complexities of the stratigraphy of the metavolcanic- metasedimentary belts on the property.

-3-

RESULTS OF ELECTROMAGNETIC SURVEY

Both the magnetometer and electromagnetic surveys are to be described in a separate report and shown on separate maps, which are currently in preparation. The instrument used for the E.M. survey was a Geonics E.M. 16 (V.L.F.). Some interesting results were obtained to be described in detail in the geophysical survey report mentioned above.

The present most significant result appears to be a strong conductor axis which extends from the vicinity of the Hemlo road in a general east-west direction, closely, paralleling and lying a short distance north of the approxi position of the hanging wall of the pyritic-micaceous-cherty- agglomeratic-tuff horizon described briefly above, and in greater detail in the companion Geological Survey report. Eastward beyond the last known position, at 260W, of the cherty-pyrite-tuff zone, this conductor axis appears to pass close to, or under, the north shore of Cigar Lake; but there are complicating factors here having to do with steel railway tracks, telegraph wires, shoreline effects, etc., which will be dealt with in more detail in the Geophysical Surveys Report.

RESULTS OF PROSPECTING

During the course of the geological mapping of the property, the writer was accompanied by an experienced bushinan and prospector who examined and broke open numerous roc' exposures, particularly where there was the slightest - of rusty weathering or other evidence of possible sulp .3 mineralization. This prospecting was done along all survey traverse lines, along the road cuts and outcrop areas on Highway 17, along the Hemlo access road and the road to the micro-wave tower, and along the rock cuts and outcrop areas

-4-

beside the C.P.R. track. Along Highway 17, some 28 samples of rusty-weathering rock were selected for assay; these all came from occurrences which range in size from negligible to minute, and appear to be associated with small fractures, joints, etc., in the l Group rocks; of these 28 samples-,-4- yielded assays of .002 oz. l ton Au, the remainder assayed "~~' nil. Along the micro-wave tower road one sample, which assayed nil, was taken from a rusty-green chloritic shear zone in mafic lavas. Along the C.P.R. track near the east end of the property one sample of slightly rusty rock was taken which assayed nil.

Along the Hemlo access road, the writer and his partner noticed an irregular patch, of perhaps 6 square feet in area, of flat rock outcrop on the east side of this rough track, some 100 feet east of 13+50 S on L48W; this rough patch had a light rusty colour, so by hand (pick, shovel, grub-hoe) we stripped it of overburden until it had a length of 9 feet (N-S) and a width of 4 to 6 feet (E-W); this stripping revealed more rusty-weathering rocks, which in a few seams, thin bands and laminae, showed evidence of the incipient development of gossan. This showing was opened up by drilling about a dozen plugger holes to depths of about 12 inches and blasting the rock with powder. Six (6) super-selected, composite grab samples were taken from this trench by taking from it fragments of broken rock containing as much pyrite as we could find in each. Upon assay of these 6 sample, one yielded .002 oz./ton Au., the other five gave nil. Some 30 feet north of this trench, and in a few tiny spots in between, rusty- weathering bedrock was seen under the roadway, which appears to mark the hanging wall of the zone. Some 200 feet due west of the trench, at 49W, some rusty-weathering, pyrite-bearing patches of bedrock were found on the side of a steep hill. During the mapping procedures a few small rusty-weathering patches of bedrock were seen in the vicinity of stations

-5-

11+00 S and 12+00 S on Lines 44W, 40W and 36W. Elsewhereon the claim group rusty-weathering rocks were not seen, butit must be emphasized that the widespread, albeit thin, overburdencoverings, plus the presence of lichen, moss and decayed humus,would effectively obscure their presence on at least 90Z of theproperty

RESULTS OF MECHANICAL STRIPPING

It was decided to trace the pyritic'rusty-weathering zone found at 13+50 S on the Henf.o road by further prospecting, and by mechanical stripping and trenching, through use of a bulldozer and backhoe, at locations where there were indications that such zones could be exposed and that overburden conditions would provide minimum difficulties. Accordingly a series of such operations were conducted at the following locations:

LO W F.W. H.W. W.Z. D.C.P.

L56WL52W49W

L48WL44W42W

L40W38W

L36WL32WL28W26W

20010040806560708060

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3'7'5'

15'10'10'15'15'10'20'10'

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i;'.7'

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-.4;-10'- 4'- 8'- 2'- 3'- 3'- 5 1- 5'- 3'- 5 1

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"20*40'

^0'^40'9-40'5*40'^O 1^0'

W/.R. rockcut "'

-370'470'

-550'

-500'

..••370 'r 50'

0-V(Lo. -Location; L-Length of stripping? W-width of stripping t., D-Depth of stripping; F.W.- footwall of rusty zone; H.Wv-Hanging ,- wall of rusty zone; W.Z.-width of rusty zone; D.C.P.-dist.^nce^rT of rusty zone north of C.P.R. track; Z.N.F.-rusty zone not^foujxd: N.E.-not exposed; E-exposed)

-6-

In most of the strippings the hanging wall of the rusty- weathering cherty-pyritic-tuff zone was not exposed because it dips to the north under a relatively low-lying, swampy area, where the overburden cover is considerably thicker than immediately to the south. Even after the extremely dry weather of last summer and fall (1981), water filled in the deeper, northern ends of several of the strippings.

In the C.P.R. rock cut, at about 26W, the rusty- weathering cherty-pyritic-tuff zone is evident only upon close examination, and was not considered very impressive when first seen in the early part of October i this rock cut was made at least one hundred years ago and , in the intervening period, coal smoke, diesel fuel fumes, dust, dirt and grime have left a rather uniform, dull patina on these rock surfaces. Indeed we returned to the task of tracing out the cherty-pyritic-tuff horizon between the rock cut and the exposure on the Hemlo road, only after considerable mapping and prospecting of the property had failed, because of the poor quality of the bedrock exposures, to turn up other evidence of potentially interesting mineralization. In the course of tracing out the zone we came upon evidence of previous exploration work done here, in the form of old strippings, an old rock pit, and an old rock trench} these are now largely filled with rubble, dead logs.humus and moss, and, except in the trench between 11+00 S and 12+00 S on L28W, no attempt was made to clean these out. The old ro.ck trench on the zone at roughly 41W, is at least 33 feet long, up to 6 feet wide and up to 7 feet deep where it cuts' throug a small, moss-covered rocky knoll. Judging from the s^z the birch trees growing on it, which are up to 8 inches through the butt, this trench must have been drilled (by hand steel) and blasted out many decades ago, most probably about the time that the C.P.R. line was being put through this part of the country.

Distances of the rusty zone north of the C.P.R. track

-7-

are shown because there seems to be some question as to the extent of the railway's legal title to the land on either side of the right-of-way, and whether or not it retains the sub surface mineral rights. The writer attempted to get this information in Thunder Bay in November, but was unsuccessful.

RESULTS OF TRENCHING AND SAMPLING

Ten (10) rock trenches were opened up in the stripped zones to facilitate sampling of the cherty-pyrite-tuff horizon. Their locations are as follows - A9W (13+50 S); L48W (13+50 S)j 47W (13+50 S); L44W (12+00 S); 42W (12+00 S); L40W (11+00 S); 38W (11+00 S)i L36W (11+00 S)5 L32W (11+00 S)i and L28W (11+00 S). With the exception of the ones at A9W and 47 W each of these rock trenches is of the order of 40 feet long in the general north-south direction across the zone. They were made by drilling plugger holes, to a depth of about 12 inches, mainly in single lines across the zone, with the hole spacing ranging from one to two feet. These holes were blown with powder, from two to four at a time, and, from the resulting broken rock, composite grab samples were super-selected for assay. The material selected for these samples consisted of the rock fragments having the highest pyrite content that could be found. Time, was of the essence in conducting the sampling operations, wil snowfall expected momentarily. Indeed the last of the blasting and sampling procedures took place in the afternoon of November 25th, and that evening the first of the permanent snowfall - took place in the Hemlo area5 by the morning of November 27th some 18 inctes of snow covered the target zone, effectively occluding any further sampling operations for this fall season here. Lack of time inhibited any prolonged and careful examination of rock fragments from the cherty-pyrite-tuff zone t the over-all pyrite content of the zone is probably less than five percent (52) i it occurs as fine disseminations irregularly scattered through the rock, in fine massive stringers up to 1/16" thick, and, rarely, in thin bands up to two (2) inches thick

-8-

which may contain 251 to 502 of the sulphide mineral. A very few occurrences of the green chrome mica, fuchsite, were noted in the zone, but no exposures of tourmaline, pyrrhotite, arseno-pyrite or visible gold were seen. It cannot be said that the rusty-cherty-pyrite-tuff zone has been adequately tested for its possible gold content. Some sixty-odd (60) super- selected, composite grab samples of pyritic material, having a total aggregate weight of 500 to 600 Ibs., were taken from the various trenches, and with one exception, these all assayed nil in gold; one sample taken from the trench beside the Hemlo access road at A7W (13+50 S) gave an assay of .002 oz./ton Au.. However, because of the super-selected nature of the "high" pyrite grab samples taken, it is safe to say that more than ninety percent (902) of the rocks in the cherty-pyrite-tuff zone have received no adequate test for gold content at all,

In retrospect, it would appear that the most effetftlve way to sample this zone, would be by cleaning out all the existing rock trenches, and cutting good, systematic channel samples completely across the rusty tuff horizon insofar as the exposures permit. This work should be done with the use of a diamond saw.

In all the s trippings and rock trenches, with the exception of those at 49W (13+50 S), the footwall side of rusty-cherty-pyrite-tuff horizon appears to be exposed; ^owever, the hanging-wall side of this zone is exposed only at A9W (13+50 S). Elsewhere the hanging-wall is overlain by heavier overburden in low, swampy, wet ground, and probably could not be economically and effectively uncovered by stripping and trenching operations. Since the north side of this north- dipping, sulphide-bearing zone appears to coincide, at least roughly, with a strong electromagnetic conductor, consideration should be given to testing these coincident features by a program of diamond core drilling.

-9-

CONCLUSIONS

1. Geological mapping of the Hemlo area property of Bel-Air Resources Ltd. has shown it to be largely underlain by complex intercalations of metavolcanic and metasedimentary rock formations, which strike generally east-west and dip steeply north.

s

2. Prospecting of the property by conventional grub-hoe stripping activities is severely hampered by widespread, thin coverings of overburden, moss, lichen and humus i nevertheless such activities were successful in detecting one zone of ^, cherty-pyrite-tuff which deserves further attention as a possible host rock for gold deposition.

3. Geophysical surveys of the property were useful in helping to delineate the positions of some of'the rock formations, and in helping to define at least one zone of possible economic interest. Some initial, preliminary, experimental test work, using the self-potential method, gave encouraging results that this method might be very useful in detecting sulphide mineralization obscured by overburden conditions in this area.

4. Mechanical stripping of overburden, by bull-dozer and backhoe, was successful in helping to delineate the cherty- pyrite-tuff zone referred to above; this horizon is at least 2,400 feet long, as much as 75 feet wide, and is open at its east end; it dips steeply north and its hanging-wall has not been located, except possibly by the geophysical surveys previously mentioned.

5. Rock trenching, followed by rather haphazard and highly selective sampling of the cherty-pyrite-tuff horizon, were not successful in establiching the presence of gold values in

-10-

this zone; however, th5. sulphide-bearing rock formation disserves a comprehensive, systematic program of channel sampling of ^ ; - the existing rock trenches, and probably some additional ones,', before any conclusions can be reached concerning its economic gold-bearing potential.

6. Personal communications with David R. Bell, Consulting Geologist, Corona Resources Limited, have indicated that parallel structures, containing sulphide-bearing, non-auriferous mineralization, exist in proximity to the gold ore horizon on the Corona property.

7. It is unlikely that the hanging-wall of the cherty- pyrite-tuff horizon, and its roughly coincident electromagnetic conductor, can be effectively and economically tested by stripping and trenching operations; consideration should be given to sampling these features by a program of diamond core drilling.

RECOMMENDATIONS

It is recommended that the Hemlo area property of Bel-Air Resources Limited be further explored for its economic mineral potential by means of the following techniques.

Channel sampling of existing rock trenches on the property

Cost - 1000 linear feet @ 59.00 per foot

Self-Potential (geophysical) survey over the existing survey grid on the property.

Cost - 50 line/miles @ 5300.00 per mile

Allowance for prospecting of any interesting indications turned up in the survey work.

Cost - 60 days @ 5125.00 per day

Sub-total

5 9,000.00

15,000.00

7.500.00

31.500.00

-11-A. Allowance for mechanical stripping of

overburden, cleaning of trenctes, and channel sampling

Cost

5. Program rf diamond drilling

Cost - 30h*u feet @ 525.00 per foot

6. Provision for travelling and living expenses supervision, planning, engineering, etc.

Sub-total Contingencies O 10Z of sub-total

Total

$ 25,000.00

75,000.00

16.000.00

147,500.0014.750.00

162.250.00

February 16, 1982.Respectfully submitted"*-

H.D. Carlson, Ph. D. P. Eng;- Consulting Geologist.

'' - *r ? 'i 'J'^-:*Vfc -.

FHOMC

H. D. CARLSON,Pu. D- f, EMO.

CONSUUTtNO OEOLOOIST

110 MARTIN STREET PORCUPINE. ONTARIO. PON KO

CERTIFICATE

Concerning this report I herewith make the following statements:

1. I have received the following degrees in the geological sciences;B. Se. - 1949 - Queen's University M. A. Se. - 1950 - University of Toronto Ph. D. - 1953 - Queen's University

2. I am a Fellow of the Geological Association of Canada, a member of the Canadian Institute of Mining and Metallurgy, and a member of the Association of Professional Engineers of Ontario, having been designated by the Council as a Consulting Engineer since 1974.

3. I am a Consulting Geologist residing at 110 Martin Street, Porcupine, Ontario.

4. I have no beneficial interest, neither direct nor indirect, in the property described in this report, nor in the securities of Bel-Air Resources Limited, or any affiliate.

February. 16, 1981 Porcupine, Ontario

[TD. Carlson, Ph. D., P. Eng., v Consulting Geologist.

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BEL-AIR RESOURCES LTD.

MOLSON LAKE AREA EXPENSES

Bagden's Limited - mechanical stripping $ 5,^0.00

Swastika Laboratories Ltd. - assaying 1,729.80

Mid-Canada Explorations Ltd. -staking, E.H.S Mag. 1,800.00

David R. Bell - geologist fees 1.773.39 David R. Bell in Trust for Be l-Air Resources Ltd. 15,000.00

N. Morissette Diamond Drilling Ltd. k , 1*90.001*0,556.55 18,105.32

Bell-White Analytical Laboratories 390.00

H. D. Carlson, P. Eng. 5,000.0019.^98.17

Total: $113,783.23

mnartVnuiir'

THE ROYAL BANK OF CANADAPENDER ft BUTE BRANCH

1205 WEST PENDER STREET VANCOUVER, B.C. V6E 8V8

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PENDER 8. BUTE BRANCH 1205 WEST PENDER STREET VANCOUVER, B.C. V6E 2VS

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TELEPHONE: (604) 683-1854

RECEIVED4

December 13, 1982 DEC20&82

MINING LAND*

Mr. A. Barr,Ministry of Natural Resources,Land Management Branch,Whitney Block,Room 6^50,Queen's Park,Toronto, OntarioM7A 1W3

Dear Mr. Barr: Your File; 2.5188

We understand that Consulting Geologist, David Bell has been in touch with your office regarding the E. M. and Mag. assessment work on our claims in the Molson Lake Area.

We are enclosing cancelled cheques and an itemized list of our expenses on this project for 1982. This letter also serves to verify the authenticityof payment.

Yours very truly,

BEL-AIR RESOURCES LTD.

Nell Dragovan Di rector

ND/cs

1982 11 22 2.5188

Bel Air Resources Limited c/o 401 - 595 Hove Street Vancouver, B.C. V6C 2T5

Dear Sin

RE: Data received for a mineralogical study ofClaias'R*624241 and SSM 624263 et al in theMolson Ijite Area

The above mentioned data will be assessed underSection 77(19) of the Mining Act R.S.O. 1980. However,I notice that you have ala o applied for 40 EM days and20 Mag daya credits for these claims. Ve have not ^'//J? ^ Oreceived a survey report covering this work. If ve \^r O Ohave not received a report by November 30th, the MiningRecorder will be instructed to delete these credits.

For further information please contact Mr. 7. W. Matthews at 416/965-1380.

Tours very truly,

E.F. Anderson ,Director , P\Land Management Brat eh j i fir IX

Whitney Block, Room 6450Queen's ParkToronto, OntarioM7A 1W3Phones 416/965-1380

A* Barr:se

cct Mining RecorderThunder,Bay, Ontario

ccs Mining RecorderSault Ste. Marie, Ontario

cct Mr. Orville Bicks 8-251 Third Avenue Timmins, Ontario P4M 1B2

1932 11 22 2.5188

Bel Air Resources Limited c/o 401 - 595 Bove Street Vancouver, B.C. V6C 2T5

Dear Strat

Ve have received data for Assaying submitted under Section 77(19) of the Mining Act E.S.O. 1980 for Mining Claims TB 6^ 241 et al and SSM 624263 et al in the area of Molson Lake*

Since ve only require two copies of the reports and naps, ve are returning the third copy to you.

This tut terial will be examined and assessed and a statement of assessment vork credits will be issued.

Tours very truly,

E.?. AndersonDirectorLand Management Branch

Whitney Block, Room 6450Queen's ParkToronto, OntarioM7A 1W3Phone: 416/965-1380

DV:sc

ccl Mining RecorderThunder Bay, Ontario

cc: Mining RecorderSault Ste. Maria, Ontario

cct Mr. Orville Hicks 8-251 Third Avenue Tisnins, Ontario P4N 1E2

memorandumOntario

To: Date: 1933 11 05

Clarence KustraOntario Geological SurveyRoom 111977 Grenville Street, Toronto

SUBJECT: Progress Report - Bel-Air Resources Limited

Enclosed Is a Progress Report prepared by H.D. Carlson.

May I have your opinion as to whether or not we should consider the allowance of assessment work credits under Section 77 (191 of The Mining Act (expenditure)). Mr. Carlson has not provided a statement of his fee for )roducing this report.

rector Land Management Branch

Whitney Block, Room #6450 Queen's Park, Toronto Telephone: 416/965-1380

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