report on the fixed wing high resolution magnetic...2 1.0 introduction this report has been prepared...

REPORT ON THE 2010 FIXED WING HIGH RESOLUTION MAGNETIC GRADIENT, XDS VLF-EM AND

RADIOMETRIC AIRBORNE SURVEY

SHINING TREE PROJECT LARDER LAKE MINING DIVISION

SHINING TREE DISTRICT, ONTARIO

UTM Grid Zone 17, NAD 83 NTS Map Sheet 41P/10, 41P/11

for

CRESO EXPLORATION INC Montreal, Quebec

Prepared by: Christophe Le Noan, M.Sc. Montreal, QC September 13, 2011

1

Table of Contents 1.0 Introduction ….…………….…………………………………………………… 2

2.0 Property Description and Location ……..…………………………………… 2

3.0 Exploration Program ……….……………………………….………………… 5

Statement of Qualifications …………………………………………………………….. 6

List of Tables Table 1: Block A Mineral Claims ……….……………………………………………… 2 Table 2: Block B Mineral Claims ……….……………………………………………… 3 Table 3: Block C Mineral Claims ……….……………………………………………… 4

List of Illustrations Figure 1: Claim Map with Property Overlay ……..…………………………………… 7

Figure 2: 2010 Fixed-Wing Airborne Survey Coverage with Property Overlay .…… 8

Appendices Appendix 1: Invoice Appendix 2: Charles Barrie (2010) Operations Report for Creso Resources Inc.: High Resolution

Aeromagnetic Gradient, XDS VLF-EM and Radiometric Survey, Shining Tree Project, Shining Tree, Ontario. Terraquest Ltd., Report # B-323.

2

1.0 Introduction This report has been prepared at the request of Creso Resources Inc. (“Creso”) for its Shining Tree Project located in north-eastern Ontario. The project area was covered by a high resolution fixed-wing airborne horizontal gradient magnetic, XDS VLF-EM and radiometric survey conducted by Terraquest Ltd. of Markham, ON, during August 9-26, 2010 period. The results of the survey are described in the “Operations Report” presented in Appendix. 2.0 Property Description and Location

The Shining Tree Project is located in north-eastern Ontario approximately 125 kilometres north of Sudbury and 100 kilometres south of Timmins, NTS map 41P. Since 2009, Creso has secured in excess of 300 square kilometres of mineral claims in the Shining Tree area through staking, option agreements and joint venture agreements (Figure 1). The properties extend over an area of approximately 50 kilometres (east-west) by 30 kilometres (north-south) between the town of Gowganda to the east, and Shining Tree to the west. The east side boundary of the fixed-wing airborne survey is 3 kilometres west of Gowganda, and the west side is 8 kilometres east of Shinning Tree. Highway #560 passes through the middle of the surveyed area. The survey covers significant portions of Fawcett, Knight, Leonard, MacMurchy, Milner, Natal and Tyrrell townships and small portions of Mond, Raymond and Van Hise townships. The centre of the area surveyed is approximately 47 degrees 39 minutes north and 81 degrees 00 minutes west. For the purpose of the present report, the survey was broken-down in three non-contiguous blocks (Figure 2). Block A covers mineral claims located in Fawcett and MacMurchy Twps; Block B covers mineral claims located in Knight, Raymond and Tyrrell Twps; Block C covers claims predominantly in Leonard and Milner Twps. The lists of claims surveyed are listed in Table 1 to 3. Table 1. Block A Mineral Claims

Claim Township Expiry Date Ownership

4225400 Fawcett 2012-12-18 Creso

4225407 Fawcett 2011-11-14 Creso

4225460 Fawcett 2012-12-18 Creso

4230159 Fawcett 2012-03-10 Creso

4230164 Fawcett 2013-03-10 Creso

4230165 Fawcett 2013-03-10 Creso

4230166 Fawcett 2013-03-10 Creso

4247573 Fawcett 2012-07-20 Creso

4225405 MacMurchy 2013-11-09 Creso





3

Table 2. Block B Mineral Claims

Claim Township Expiry Date Ownership Claim Township Expiry Date Ownership

1219455 Knight 2014-09-23 Option 1219126 Tyrrell 2011-10-04 Option


1222159 Knight 2012-08-10 Creso 1219131 Tyrrell 2011-10-16 Option




















GG5800 Knight 2015-12-31 Creso 1220371 Tyrrell 2011-09-18 Option




MR11466 Knight 2012-04-30 Creso 1221602 Tyrrell 2011-09-20 Option

4252681 Raymond 2012-02-10 Creso 1221603 Tyrrell 2011-09-20 Option




478796 Tyrrell 2016-09-17 Option 1221607 Tyrrell 2011-09-20 Option


















1219121 Tyrrell 2013-10-04 Option 3006759 Tyrrell 2013-06-08 Creso

1219123 Tyrrell 2015-10-04 Option 3008013 Tyrrell 2012-01-08 Creso

4


3011891 Tyrrell 2015-12-14 Option GG5841 Tyrrell 2016-12-31 Creso

3013770 Tyrrell 2014-02-03 Option GG5843 Tyrrell 2016-12-31 Option



4210174 Tyrrell 2013-05-25 Creso GG5846 Tyrrell 2016-12-31 Option






4230183 Tyrrell 2012-04-01 Creso GG5909 Tyrrell 2017-03-31 Creso

4230184 Tyrrell 2012-04-01 Creso GG5910 Tyrrell 2017-03-31 Creso






GG5801 Tyrrell 2015-12-31 Creso GG5962 Tyrrell 2016-12-31 Option





GG5840 Tyrrell 2016-12-31 Creso GG6864 Tyrrell 2016-11-30 Creso Table 3. Block C Mineral Claims


4248822 Leonard 2011-12-18 Creso 4252691 Milner 2012-02-10 Creso






4249070 Tyrrell 2011-12-18 Creso 4252698 Milner 2012-02-10 Creso



4251843 Milner 2012-02-10 Creso 4253801 Milner 2012-02-25 Creso









5

3.0 Exploration Program Creso contracted Terraquest Ltd. of Markham, ON, to conduct a high resolution fixed-wing airborne horizontal gradient magnetic, XDS VLF-EM and radiometric survey. The objective of the survey was to obtain increased resolution of geological structure and mineralized zone over public domain government maps and tie-in to the west to an airborne survey with the same parameters conducted by Terraquest Ltd. for Creso in 2008 on the west Shining Tree area. The survey was conducted out of Earlton, ON, over 9 survey days from August 9 to 26, 2010. The survey outline is generally rectangular in shape with a large notch removed from the northeast corner (Figure 2). The maximum dimensions are 25.7 kilometres north–south and 25.4 kilometres east-west for a total area of approximately 524 square kilometre. A total of 259 east-west traverse line at 100 metres flight-line interval and 26 north-south control line for a combined survey kilometrage of 5,998 kilometres was performed. The results of the survey are described in the “Operations Report” presented in Appendix. The survey was realized at a cost of $151,981. Creso is filing for an amount of $54,227 determined on a pro-rata basis of the areas covered by the blocks outlined in Figure 2.

6

STATEMENT OF QUALIFICATIONS

I, Christophe Le Noan, of 4525 Kensington Avenue, Montreal, Quebec, hereby certify:

1. I hold a B.Sc. in Geology (1997) from the Université du Quebec à Montréal (UQAM) and a M.Sc. in Mineral Exploration (1998) from Queen's University.

2. I currently practice as a self-employed consulting geologist and have been practicing my

profession since graduation.

3. The information contained in this report is the result of work done by myself or work that I personally supervised.

Dated at Montreal, Quebec, this 13

th day of September, 2011.

“/s/ C. Le Noan” Christophe Le Noan, M.Sc.

�

560

0 2.5 5

kilometres

MOND

FAWCETT

KNIGHTNATAL

LEONARD CHARTERS

VAN HISE

LEITH

RANKIN

HAULTAIN

TYRRELL

RAYMOND MOREL

MILNER NICOLMACMURCHY

RF153

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REG.PLAN M-150

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GG5817

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RSC91

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REG.PLAN M-209

L511149

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TRS8019

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CRESO EXPLORATION INC

CLAIM MAP WITH PROPERTY OVERLAYSHINING TREE AREA

NAD 83 Zone 17 Date: September 2011 Drafted: CLN

FIGURE 1

�

560

BLOCK C

BLOCK B

BLOCK A

0 2.5 5

kilometres

MOND

FAWCETT

KNIGHTNATAL

LEONARD CHARTERS

VAN HISE

LEITH

RANKIN

HAULTAIN

TYRRELL

RAYMOND MOREL

MILNER NICOLMACMURCHY

CRESO EXPLORATION INC

2010 FIXED-WING AIRBORNE SURVEY COVERAGE WITH PROPERTY OVERLAY

SHINING TREE AREA

NAD 83 Zone 17 Date: September 2011 Drafted: CLN

LEGEND

Block Boundaries for Fixed-Wing Airborne SurveyAssessment Work Filing

Helicopter Airborne Survey15 - 30 m line spacingHigh Resolution Magnetic, XDS VLF-EM, Radiometric

Fixed-Wing Airborne Survey100 m line spacingHigh Resolution Magnetic Gradient, XDS VLF-EM, Radiometric

FIGURE 2

9

APPENDIX 1

11

APPENDIX 2

Operations Report B-323 for CRESO RESOURCES INC. High Resolution Aeromagnetic Gradient, XDS VLF-EM and Radiometric Survey, SHINING TREE PROJECT, ON

Terraquest Ltd., Airborne Geophysical Surveys 2010/12/30 Contract B-323 File: B-323-xks-report.doc

1

Operations Report for

CRESO RESOURCES INC.

High Resolution Aeromagnetic Gradient, XDS VLF-EM and Radiometric Survey

SHINING TREE PROJECT

Shining Tree, Ontario

December 30, 2010

Report #: B-323

Requested by: Mr. Mike White

Geological Consulting Ltd.

Prepared by: Charles Barrie, Managing Partner

Terraquest Ltd.



2

Table of Contents 1. INTRODUCTION ............................................................................................................................................... 4

1.1. EXECUTIVE SUMMARY ................................................................................................................................ 4 1.2. LOCATION ................................................................................................................................................... 5

2. SURVEY PARAMETERS .................................................................................................................................. 6

2.1. LINES AND DATA ................................................................................................................................... 6 2.2. SURVEY KILOMETRAGE ....................................................................................................................... 6 2.3. NAVIGATION ........................................................................................................................................... 6 2.4. FLIGHT PATH ........................................................................................................................................... 8 2.5. TOLERANCES - REFLIGHT .................................................................................................................... 9

1. Traverse Line Interval ................................................................................................................................ 9 2. Terrain Clearance: ..................................................................................................................................... 9 3. Diurnal Variation: ...................................................................................................................................... 9 4. GPS Data: .................................................................................................................................................. 9 5. Radio Transmission: ................................................................................................................................... 9 6. Sample Density: .......................................................................................................................................... 9 7. Magnetic Noise: .......................................................................................................................................... 9 8. Measurement Gaps: .................................................................................................................................... 9

3. AIRBORNE GEOPHYSICAL EQUIPMENT ................................................................................................ 10

3.1. EQUIPMENT SUMMARY ...................................................................................................................... 10 3.2. SURVEY AIRCRAFT .............................................................................................................................. 10 3.3. SURVEY EQUIPMENT AND SPECIFICATIONS: ............................................................................... 11

1. High Sensitivity Magnetometers: .............................................................................................................. 11 2. Tri-Axial Fluxgate Magnetic Sensor ........................................................................................................ 11 3. Radar Altimeter ........................................................................................................................................ 12 4. Temperature & Barometric Sensor .......................................................................................................... 12 5. Data Acquisition & Magnetometer Processor System .............................................................................. 12 6. Navigation System .................................................................................................................................... 14 7. GPS Differential Receiver ........................................................................................................................ 14 8. Radiometrics System ................................................................................................................................. 14 9. Flight Path Camera .................................................................................................................................. 15 10. Terraquest XDS VLF-EM System ............................................................................................................. 15

4. BASE STATION EQUIPMENT ...................................................................................................................... 17

4.1. BASE STATION MAGNETOMETER .................................................................................................... 17 4.2. BASE STATION MAGNETOMETER & GPS RECEIVER .................................................................... 17

5. TESTS AND CALIBRATIONS ....................................................................................................................... 18

5.1. MAGNETIC FIGURE OF MERIT ........................................................................................................... 18 5.2. MAGNETIC LAG .................................................................................................................................... 18 5.3. RADAR ALTIMETER CALIBRATION ................................................................................................. 18 5.4. RADIOMETRIC SAMPLE CHECKS / RESOLUTION CHECKS ......................................................... 18 5.5. RADIOMETRIC SENSITIVITY FACTORS ........................................................................................... 19 5.6. RADIOMETRIC ALTITUDE ATTENUATION ..................................................................................... 19 5.7. RADIOMETRIC COMPTON COEFFICIENTS ...................................................................................... 19 5.8. RADIOMETRIC COSMIC CALIBRATION ........................................................................................... 19



3

6. LOGISTICS ....................................................................................................................................................... 20

6.1. PERSONNEL ........................................................................................................................................... 20 6.2. FLIGHT REPORTING ............................................................................................................................. 20

7. DATA PROCESSING ....................................................................................................................................... 21

7.1. DATA QUALITY CONTROL ................................................................................................................. 21 7.2. FINAL MAGNETIC DATA PROCESSING ............................................................................................ 21 7.3. ELECTROMAGNETC DATA PROCESSING ........................................................................................ 24 7.4. RADIOMETRIC DATA PROCESSING ................................................................................................. 28

1. Energy Windows ....................................................................................................................................... 28 2. Aircraft and Cosmic Background Corrections ......................................................................................... 28 3. Compton Stripping .................................................................................................................................... 28 4. Altitude Attenuation Correction ............................................................................................................... 29 5. Conversion to Ground Units ..................................................................................................................... 29 6. Gridding ................................................................................................................................................... 29

7.5. LIST OF FINAL PRODUCTS .................................................................................................................. 35

8. SUMMARY ........................................................................................................................................................ 36

9. APPENDICES .................................................................................................................................................... 37

9.1. APPENDIX I - CERTIFICATE OF QUALIFICATION .......................................................................... 37 9.2. APPENDIX II – PRODUCTION SUMMARY ........................................................................................ 38 9.3. APPENDIX III – PRODUCTION STATISTICS...................................................................................... 38 9.4. APPENDIX IV – FIGURE OF MERIT .................................................................................................... 39 9.5. APPENDIX V – RADAR ALTIMETER CALIBRATION ...................................................................... 40 9.6. APPENDIX VI – COMPTON COEFFICIENTS ...................................................................................... 41 9.7. APPENDIX VII – ALTITUDE ATTENTUATION ................................................................................. 43 9.8. APPENDIX VIII – SENSITIVITY FACTORS ........................................................................................ 45 9.9. APPENDIX IX – COSMIC CALIBRATION ........................................................................................... 47 9.10. APPENDIX X – README FILE ............................................................................................................. 49



4

1. Introduction

1.1. Executive Summary This report describes the specifications and parameters of an airborne geophysical survey carried out for: CRESO RESOURCES INC. 1325 – 1801 McGill College Avenue Montreal, QC H3A 2N4 Attention: Mr. Robert J. Casceli, CEO Phone: 514-866-6001 Fax: 514-866-6193 Email: [email protected] The survey was performed by: TERRAQUEST LTD. 2-2800 John Street, Markham ON, Canada L3R 0E2 Tel: 905-477-2800 ext. 22 Email: [email protected]. The purpose of the survey of this type is to collect geophysical data that can be used to prospect directly for anomalous magnetic, conductive and radiometric areas in the earth’s crust which may be caused by or related to economic minerals. Secondly, the geophysical patterns can be used indirectly for exploration by mapping the geology in detail, including faults shear zones, folding, alteration zones and other structures. To obtain this data, the area was systematically traversed by aircraft carrying geophysical equipment along parallel flight lines. The lines are oriented to intersect the geology and structure so as to provide optimum contour patterns of the geophysical data. The data are carefully processed and contoured to produce grid files and maps that show distinctive patterns of the geophysical parameters. The database, gridded data, map files, map images and operations report are archived on a DVD-ROM located in the back pocket.



5

1.2. Location The survey is referred to as the Shining Tree Project and is located in northern Ontario approximately 125 kilometres north of Sudbury and 80 kilometres west of the town of Earlton, NTS map 41P. The east side of the survey is 3 kilometres west of the settlement of Gowganda, and the west side is 8 kilometres east of the settlement of Shinning Tree. Highway #560 passes through the middle of the survey block. The block lies in the significant portions of Leith, Milner, Leonard, Tyrrell, Knight, Natal, MacMurchy and Fawcett Twps. and in small portions of Van Hise, Raymond and Mond Twps. The survey outline is generally rectangular in shape with a large notch removed from the northeast corner. The maximum dimensions are 25.7 kilometres north–south and 25.4 kilometres east-west. The centre of the area is approximately 47 degrees 39 minutes north and 81 degrees 00 minutes west.



6

2. SURVEY PARAMETERS

2.1. LINES AND DATA Parameter Specification Instrument Precision

Aircraft Speed 72.0 m/sec 288 km/hr Sampling Interval 7-8 m (10Hz) Flight-line Interval 100 m +/- 3m

Flight-line Direction 090/270 degrees

Control-line Interval 1,000 m +/- 3m

Control-line Direction 000/180 degrees +/- 3m

Aircraft MTC 89.0 m +/- 5m

Mag Sensor MTC 89.0 m +/- 5m

2.2. SURVEY KILOMETRAGE Survey Kilometers: 259 Traverse Lines 5,449 km 26 Control Lines 549 km Total 5,998 km

2.3. NAVIGATION The following file is the navigation parameter file (*.nme) for the survey lines, which include survey corner coordinates in WGS84 projection zone 16. 0 B323_l 1 U 279 2 488916.5 5290564.6 AREA CORNER 1 2 502279.6 5290557.4 AREA CORNER 2 2 502277.7 5280076.1 AREA CORNER 3 2 514449.6 5280062.7 AREA CORNER 4 2 514445.6 5264978.6 AREA CORNER 5 2 488911.3 5264967.0 AREA CORNER 6 2 488916.5 5290564.6 AREA CORNER 7 3 488916.5 5290564.6 W WAYPOINTS 1 4 259 NUMBER OF LINES 5 100.0 SPACING, m. 6 488916.5 5290564.6 MASTER LINE BL



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7 488916.5 5290564.6 MASTER LINE TL 8 75 MAX CROSS TRACK, m. 9 0 0 0 DELTA X/Y/Z 10 1 LOG FPR EVERY 1 SECS 11 0.9996000000 0.0 0.0 K0, X/Y SHIFT 14 200 LINES EXTENDED BEYOND AREA 16 10 FIRST LINE NUMBER 17 488716.6 5290664.8 90.00 MASTER POINT, HEADING 20 WGS-84 6378137.0 298.257223563 22 ELLIPSOID 21 0 NO EQUATORIAL CROSSING 30 20 9600 N 1 8 RS-232 PORT 2 INCOMING FORMAT 31 20 9600 N 1 8 RS-232 PORT 1 OUTGOING FORMAT 38 0 METRIC SYSTEM 39 5 RACE TRACK 41 0.00 SYSTEM LAG, Sec. 80 0.00 PLANNED ALTITUDE, units 83 0 GPS ALTITUDE FOR VERTICAL BAR 85 100 MAX VERTICAL BAR SCALE 102 UTM UTM X/Y SCALE The satellite navigation system was used to ferry to the survey sites and to survey along each line. The survey coordinates were supplied by the client and were used to establish the survey boundaries and the flight lines. The flight path guidance accuracy is variable depending upon the number and condition (health) of the satellites employed; the accuracy was for the most part better than 10 metres. Real-time GPS correction using the Novatel receiver and Omnistar broadcast services for North America improves the navigational accuracy to about 3 metres or less in the horizontal plane and 4-5 metres in the vertical direction. The survey was flown using a smooth drape surface calculated from the digital topographic data from Geogratis. The data are contained in the final Geosoft Database and the grid file in a separate directory.



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2.4. FLIGHT PATH



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2.5. TOLERANCES - REFLIGHT

1. Traverse Line Interval

Contract specifications mandate that re-flights would take place if the flight line separation of the final differentially corrected flight path is greater than 25 metres from the intended line separation over a distance greater than 3 kilometres.

2. Terrain Clearance:

Contract specifications mandate that the aircraft mean terrain clearance was to be smoothly maintained at 70 metres MTC in a drape mode. Re-flights were done if the final differentially corrected altitude deviated from the agreed flight altitude by +/-10m over a distance of 3 kilometres or more if, in the pilot’s opinion, it was safe to do so. Based on a reconnaissance flight over the survey area, the pilot decided to fly bit high at approximately 90 mean terrain clearance.

3. Diurnal Variation:

Diurnal activity in the survey was limited to 30 nT per hour, 3 nT deviations from 1-minute chord and 0.5 nT from a 15 second chord.

4. GPS Data:

GPS data included at least 4 satellites 15 degrees over horizon for navigation and flight path recovery.

5. Radio Transmission:

The aircraft pilot makes no radio transmission that interferes with magnetic response unless mandated by airport and air traffic safety considerations.

6. Sample Density:

A reflight is required if the sample density along one or more of the survey lines exceeds 8 metres over a cumulative total of 1000 metres for the magnetic survey, and 80 metres over a cumulative total of 1000 metres for the radiometric survey.

7. Magnetic Noise:

The contract mandates that the fourth difference noise envelope for the tail sensor data does not exceed +/- 0.10 nT and +/- 0.03 nT/m for the horizontal gradient.

8. Measurement Gaps:

There were no significant gaps in any of the digital data including GPS, radiometrics and magnetic data.



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3. AIRBORNE GEOPHYSICAL EQUIPMENT The primary airborne geophysical equipment includes three high sensitivity cesium vapour magnetometers, a gamma ray spectrometer system and an XDS VLF-EM system. Ancillary support equipment includes a tri-axial fluxgate magnetometer, recorder, radar altimeter, barometric altimeter, GPS receiver with a real-time correction service, and a navigation system. The navigation system comprises a left/right indicator for the pilot and a screen showing the survey area, planned flight lines, and the real time flight path. All data were collected and stored by the data acquisition system. The following provides detailed equipment specifications:

3.1. EQUIPMENT SUMMARY

Aircraft Piper Navajo PA 31-325 CR Equipment:

Magnetometer (3) CS-3 Cesium Vapour 3-axis Magnetometer Billingsley TFM100-LN VLF-EM Terraquest Ltd: XDS system GPS Receiver Novatel ProPak-V3 - L1L2 Radar Altimeter King KRA 10A Barometric Altimeter Honeywell Data Acquisition & Mag Counter DAARC500 by RMS Instruments Tracking Camera Sony (Colour) digital

Magnetic Specifications: Lateral Sensor separation 14.6 metres Longitudinal Sensor separation 9.2 metres Output Sample Rate 20 Hz 4th difference noise envelope 0.10 from tail stinger FOM index (Tail) <1.5 nT Sensor Sensitivity 0.001 nT

3.2. SURVEY AIRCRAFT The Survey Aircraft for this project was a Navajo PA31-325 CR, owned and operated by Terraquest Ltd. The aircraft has been specifically modified with long-range fuel cells and an array of sensors to carry out airborne geophysical surveys.



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3.3. SURVEY EQUIPMENT AND SPECIFICATIONS:

1. High Sensitivity Magnetometers:

Three high-resolution cesium vapour magnetometers are mounted in a tail stinger and two wing-tip pods. A fluxgate tri-axial magnetometer is mounted in front of the tail stinger to monitor aircraft manoeuvre and magnetic interference; this data is used in real-time to compensate the high sensitivity data for aircraft manoeuvre noise.

Type of Magnetometer Sensor Cesium Vapour Model CS-3 Manufacturer Scintrex Ltd. Resolution 0.001 nT counting at 0.1 per second Sensitivity +/- 0.005 nT Dynamic Range 15,000 to 100,000 nT Fourth Difference 0.02 nT Recorded Sample Rate 0.05 seconds Noise Envelope 0.10nT (Tail Mag)

2. Tri-Axial Fluxgate Magnetic Sensor

Tri-Axial Fluxgate Magnetic Sensor

(for compensation, mounted in mid-section of tail stinger)

Model W/FM100G2-1F Manufacturer Billingsley Magnetics Description Low noise miniature triaxial fluxgate magnetometer Axial Alignment > Orthogonality > +/- 1 degree Accuracy < +/- 0.75% of full scale (0.5% typical) Field Measurement +/- 100,000 nanotesla



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Linearity < +/- 0.015% of full scale Sensitivity 100 microvolt/nanotesla Noise < 12 picotesla RMS/–Hz @ 1 Hz

3. Radar Altimeter

Altimeter Radar Model KRA-10A Manufacturer King Serial Number 071-1114-00 Accuracy 5% up to 2,500 feet Calibrate Accuracy 1% Output Analog for pilot, converted to digital for data acquisition

4. Temperature & Barometric Sensor

Sensors Temperature (°C) and Pressure (mB) Model PPT0020AWN2VA-C Manufacturer Honeywell Source coupled to aircraft barometric (pitot static) system Output Serial output to DAARC 500 channels 3 & 4 respectively

5. Data Acquisition & Magnetometer Processor System

DAS & Compensation Combined Model DAARC 500 Manufacturer RMS Instruments Operating System QNX 6.3 Time 104 MHz temperature compensated crystal clock Front End Magnetic Processing

Resolution 0.32pT; system noise <0.1pT; sample rate 160, 640, 800 or 1280 Hz

Front End - Fluxgate I/F module; oversampling, self calibrating 16 bit A/D converter

Compensation Improvement Ratio (total field) 10-20 typical Input Serial 8 isolated RS232 channels; ASCII & Binary formats Input Analog 16 bit, self calibrating A/D conv. Input Events Four latched event inputs Raw Data Logging At front end sampling rate, 1 MB buffer

Output/Recording Rate 10, 20 or 40 Hz; Serial up to 115.2 kbps; Recording media 1 GB Flash; 80 GB Hard Drive; Flash disk via USB; Display

Front Panel Indicators 8 LEDs for mag input; 2 LEDs for Front End status



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Simplified Block Diagram of DAARC 500 (Mag1=left wing; Mag2=right wing; Mag3=tail)

Summary of Signal Processing: DAARC 500



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Survey DAARC 500 settings: Mag1 = left wingtip magnetometer Mag2 = right wingtip magnetometer Mag3 = tail singer magnetometer Trigger Mode: external-pps Front End Sampling: default 640 Hz Transfer Function: bandwidth 1.6 Host Sampling: 10 Hz Host Subsystem Filter: none

6. Navigation System

Navigation & Guidance Stand alone module Model LiNav P151 Manufacturer AgNav Inc. Main Display LCD Moving map display Pilot Display 2 line shows left/right, dist. to end of line/survey/ Line Generates and follows survey lines Input GPS with corrections; up to 10 Hz Media USB memory stick

7. GPS Differential Receiver

Model ProPak-V3 - L1L2 Manufacturer Novatel Channels 12 Position Update 0.5 second for navigation Correction Service Real time correction subscription: Omnistar Sample Rate 1 second Accuracy ~1.8 meters

8. Radiometrics System

Type Gamma Ray Spectrometer Model RS 500 Manufacturer Radiation Solutions Inc. Crystal Manufacturer Saint-Gobain Downwards Volume 3075.5 in3 (50.4 litres) Downward (12 crystals) Upwards Volume 512.6 in3 (8.4 litres) Upward (2 crystals) Software Real Time Data Collection Energy Detection Range 50KeV to 3 MeV Count Rate Up to 1000,000 pps communication RSI Native Spectra 1024 Channels



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Output Spectra 256 Channels Up and Down Sampling Rate 1 Hz, no dead time Automatic Gain Stabilization Thorium Energy Resolution < 8.5%

9. Flight Path Camera

Military clearance was not received for flight path camera; it was recorded only on several lines at the beginning of the survey.

Camera (mounted in belly of aircraft) Model DFW-SX910 Manufacturer Sony Serial Number 100140 Specifications ½”, 1.3LX, 12 VDC, C/CS, EI/ES, backlit compensation Lens Fujinon 2/3”, 2.7mm, auto iris Output JPEG still image with GPS time & location

10. Terraquest XDS VLF-EM System

The XDS VLF-EM System is recently developed by Terraquest Ltd. It employs 3 orthogonal, air-core coils mounted in the pod of the tail stinger, and coupled with a receiver-console, tuned to receive a half-power range of 22.0 kHz to 26.0 kHz (which includes both Cutler Maine NAA frequency 24 kHz, Lamoure North Dakota frequency 25.2 kHz and Seattle WA NLK frequency 24.8 kHz), and measures independently the X, Y and Z directions of the VLF field.

VLF - EM Model XDS Manufacturer Terraquest Ltd.

Primary Source Magnetic field component radiated from government VLF radio transmitters

Parameters Measured X, Y and Z components, absolute field Frequency Range Half-power range 22.0 - 26.0 kHz Gain Constant gain setting Filtering No filtering

XDS/VLF - EM System is a proprietary airborne electromagnetic measurement system developed by Terraquest Ltd that redefines existing VLF –EM technology. The system typically responds to variation is overburden conductivity, to large faults or shear zones, and to graphitic formational conductors. Because of these characteristics, XDS VLF-EM can be useful as a mapping too, particularly when combine with magnetics.



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Tail Stinger

Flight

Direction

The VLF signal is transmitted around the world by governments primarily for communication purposes. In North America there are two transmitters, a very powerful one in Cutler, Maine (24.0 KHz) and a medium power unit in Seattle, Washington (28.4 KHz). Signals from these transmitters cover most of the continent and act as primary fields that are capable of energizing conductive bodies (such as graphite, metallic minerals and structures) in the ground. Once energized, the current within these bodies emits a secondary field forming the basis for a geophysical exploration.



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4. Base Station Equipment

4.1. BASE STATION MAGNETOMETER High sensitivity magnetic base station data was provided by a high sensitivity cesium vapour magnetometer logging onto a computer and with time synchronization from a GPS base station receiver. The magnetometer was the same as used in the aircraft, a CS-2 magnetometer manufactured by Scintrex. The magnetometer processor was a KMAG manufactured by Kroum VS Instruments and the data logger was an iPAQ PDA by Hewlett Packard. The counter was powered by a 10VAC 50/60hz to 30VDC 3.0 amp power supply with an internal 12VDC fan. The logging software SDAS-1 was written by Kroum VS Instrument Ltd. specifically for the pocket pc hardware. It supports real time graphics with selectable windows (uses two user selectable scales, coarse and fine). Time recorded was taken from the base GPS receiver. Magnetic data was logged at 1Hz. Data collection was by RS232 recording ASCII string and stored on flash card.

Ground Magnetometer Cesium Vapour Model CS – 2 Manufacturer Scintrex Sensitivity 0.01 nT Noise Envelope 0.05 nT Sampling Interval 1 second Minimum Range 50 -3,500 ft

4.2. BASE STATION MAGNETOMETER & GPS RECEIVER

Model 12 channel GPS Manufacturer Deluo Type L1, C/A code Antenna Built in patch Logging Rate 1 per second Power 5 VCD taken from iPAQ power supply



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5. TESTS AND CALIBRATIONS

5.1. MAGNETIC FIGURE OF MERIT Compensation calibration tests were performed to determine the magnetic influence of aircraft maneuvers and the effectiveness of the aircraft compensation method. The aircraft flew a square pattern in the four survey directions at a high altitude over a magnetically quiet area and perform pitches (± 5°), rolls (± 10°) and yaws (± 5°). The sum of the maximum peak-to-peak residual noise amplitudes in the total compensated signal resulting from the twelve maneuvers is referred to as the FOM. The FOM for this survey for the left, right and tail magnetometers were 1.35nT, 1.77nT and 0.38nT respectively. Refer to Appendix IV – Figure of Merit for details.

5.2. MAGNETIC LAG The magnetic lag was determined by examining discreet anomalies in the gridded images from line to line flown in opposite directions.

5.3. RADAR ALTIMETER CALIBRATION A radar altimeter calibration was performed by flying in increments of 100 feet to an altitude of 800 feet over the runway at Geraldton on June 24, 2010. However windy conditions and uneven topography resulted in a digital terrain model (DTM) that did not exactly match the published topography. By experimentation it was found that the DTM based on calibration data from a previous survey (in France) matched the topography very well. Least Squares Regression analysis on the resulting data generated the slope/intercept factors required to convert the raw radar altimeter data feed calibrated terrain clearance. The slope was 77.410915 with an intercept of -3.1693. Refer to Appendix 9.5 Appendix V – Radar Calibration for a presentation of the results and analysis.

5.4. RADIOMETRIC SAMPLE CHECKS / RESOLUTION CHECKS The performance and consistency of gamma ray system was checked before and after the survey using sample pucks of uranium, thorium and cesium to ensure that there was no change in the system during the survey. When corrected for ambient background, the radiometric response generated by the Uranium and Thorium sample should remain within +/- 4% of the overall average value for each series.



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5.5. RADIOMETRIC SENSITIVITY FACTORS The radiometric system sensitivity was determined on September 2009 from measurements acquired over the Breckenridge calibration test site, near Ottawa, Canada. The concurrent ground survey was performed by personnel from the Geological Survey of Canada. Refer to 9.8 Appendix VIII – Sensitivity Factors for details.

5.6. RADIOMETRIC ALTITUDE ATTENUATION The altitude attenuation factors were calculated using data from a calibration flight on June 24, 2010 at Geraldton. Refer to 9.7 Appendix VII – Altitude Attenuation for details.

5.7. RADIOMETRIC COMPTON COEFFICIENTS The Compton coefficients were calculated from Pad measurement done in Ottawa on July 14, 2010. Refer to 9.6 Appendix VII – Compton Coefficients for details.

5.8. RADIOMETRIC COSMIC CALIBRATION The cosmic calibrations were done on August 2, 2010 at Geraldton. See Appendix 9.9



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6. LOGISTICS

6.1. PERSONNEL The contractor supplied the following properly qualified and experienced personnel to carry out the survey and to reduce, compile and report on the data: Field: Pilot Olivier Nayet, Jim McLarty Operators Matt Cavender, Ethan Kirby Geophysicists Brendan Purchase Office: Geophysicists Allen Duffy Brian Sargeant Project Manager Charles Barrie

6.2. FLIGHT REPORTING The aircraft and crew arrived in Earlton on August 8, 2010 and set up the base station at the airport. The survey was flown successfully 11 flights over 9 survey days from August 9-26, 2010 including all traverse lines, tie lines and calibrations plus 4 weather days and 6 aircraft maintenance days (which included a 100hr scheduled maintenance inspection). A Table of Field Operations is included Appendix 9.2; a summary follows: Acquisition Period 19 Number of Flights 11 Flight Hours 39:44 Survey Hours 32:39 Survey Days 9 Set Up (2) & Mob 1 (includes calibration and testing) Weather Days 4 Training Day 0 Aircraft Maintenance 6 Equipment Maintenance 0 The pilot maintained a personal and an aircraft log book for all flights. The operator recorded all calibration and flight activity on a flight log which was given to the field geophysicist every day. The field geophysicist entered all daily activity into an Excel spread sheet. From this spreadsheet daily, weekly and summary reports were automatically generated. The Summary Report lists productions statistics for all flights each day and is shown in Appendix 9.2 along with a chart showing Production Statistics Appendix 9.3



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7. Data Processing

7.1. DATA QUALITY CONTROL The field data were examined every evening by a geophysicist to inspect for quality control and tolerances on all channels. This included any corrections to the flight path, making flight path plots, importing the base station data, creating a database on a flight-by-flight basis, and posting the data. All data were checked for continuity and integrity. Any errors or omission or data beyond tolerances were flagged for re-flight and the crew was notified ready for their flight in the morning. Note that both GPS corrections and magnetic compensation are done in real-time during the entire survey.

7.2. FINAL MAGNETIC DATA PROCESSING Adjustment of Diurnal Data: Spike removal

Where required Cultural effects were filtered out with a 15pt low pass filter or deleted and the gaps were interpolated

Filter remainder of data with 5pt low pass filter to eliminate noise in base data Adjustment of Total Field values on all three sensors: De-spiked

Removed spikes and the gaps were interpolated in the final database; however, the gaps were left in the raw database.

There has been no attempt to remove any cultural events. Total Field Tie Line Levelling: Diurnal corrected the Total Field (Total Field – Diurnal) + Diurnal average Used Geosoft levelling system: -Deleted all suspicious intersections during levelling of tie lines -Created a line intersection table -Deleted all suspicious intersections during levelling of survey lines -Made small adjustments on remaining out of level lines Total Field Micro-Levelling (TF3FIN): Started with a rough de-corrugation -Butterworth filter (200m, filter order 8, high pass) -Directional Cosine (0.5 degree of function, pass) -Created an error grid and subtracted it from the levelled Total Field grid



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Sampled the error grid into the database to limit micro-levelling changes Limited values in the error channel to no greater than 5nT (98.3% of the data) Ran low 30pt low pass filter over error channel Subtracted the error channel from the Levelled Total Field Calculated Vertical Derivative: Derivative in Z with order of differentiation as 1 Butterworth cut-off wavelength of 1000m, filter order 8, low pass In the final correction process, the compensated tail sensor magnetic data was corrected with standard tie-line intersection leveling. The vertical magnetic gradient was calculated from the final processed total magnetic field data grid (originating from the Tail Sensor). The finalized datasets were gridded with bidirectional procedure with a cell size of 25 metres without the need for smoothing.

Horizontal Gradients:

The transverse magnetic gradient was calculated by subtracting the left wing sensor reading from the right wing sensor reading and dividing the resulting value by the tip-to-tip separation (14.6 metres), yielding the measurement expressed as nT/m. The longitudinal gradient was calculated as the difference between the average of the wing tip sensors and the tail sensor and dividing by the distance. Both gradients were “DC shifted” by subtracting the median value on a line-by-line basis and converted from aircraft-centric to survey grid orientation by selectively inverting (multiplying by -1) in the south and westbound directions. The transverse and longitudinal gradients were gridded with bidirectional procedure with a cell size of 25 metres and then micro-levelled with the same parameters as the total magnetic field.

Tilt Derivative:

The tilt derivative is calculated from the total magnetic intensity (TMI) of the tail sensor using a Geosoft module. From the TMI, the vertical and horizontal derivatives are calculated, and the tilt derivative is the arctan of the ratio of these derivatives, vertical over horizontal. Calculated in radians, a tilt derivative of zero represents no vertical gradient, only a horizontal gradient. A maximum value of the tilt derivative of 90 degrees represents a near zero horizontal gradient. The difference at map scale between 45 degrees and zero is an approximate indicator of the depth to top of source.



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Total Magnetic Field



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Calculated Vertical Magnetic Derivative

7.3. ELECTROMAGNETC DATA PROCESSING The Terraquest XDS VLF-EM system produced well defined and consistent results with good line to line correlation. The x, y and z components of the XDS VLF-EM data in the half power range of 22.0 to 26.0 kHz (which include Cutler, North Dakota and Seattle transmitter signals), were rescaled (where required), low pass filtered, DC shift corrected and levelled. The data were presented as contour plots of the a) Line Field (Vcx) coil, b) Ortho Field (Vcp) coil and c) Vertical Field (Hcp) coil.



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Line Field (Vcx)



26

Ortho Field (Vcp)



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Vertical Field (Hcp)



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7.4. RADIOMETRIC DATA PROCESSING The radiometric data were processed according to guidelines established in the definitive IAEA Technical Report “Airborne Gamma Ray Spectrometer Surveying” (IAEA Technical Reports Series No. 323, 1991). A brief, generalized description of the data reduction process:

1. Energy Windows

Recorded as a 256 channel spectrum, the four raw integral (or “terrestrial”) windows (Total Count, Potassium, Uranium and Thorium) were initially generated by summing the recorded counts between their appropriate channel limits – as specified below:

Window(“ROI”) Energy Range (keV) Channel Range Total Count 410 2810 034 234 Potassium 1370 1570 114 131 Uranium 1660 1860 138 155 Thorium 2410 2810 201 234 Cosmic 3000 ∞ 255

(Overall channel number range is indexed 0 - 255)

2. Aircraft and Cosmic Background Corrections

The Cosmic and fixed aircraft components of the overall background level of radiation may be calculated using coefficients determined during a specific calibration procedure (see 9.9 Appendix IX – Cosmic Calibration). In this correction step, the assumed linear relationship between count rates measured in the high energy Cosmic window (> 3.0 MeV) and the Cosmic and Aircraft (fixed) contributions to the individual backgrounds in the four terrestrial windows (Total Count, Potassium, Uranium and Thorium) is exploited.

3. Compton Stripping

Following background correction, the measured levels in the three terrestrial spectral windows – Potassium, Uranium and Thorium - are corrected for the natural process of Compton Scattering, by which energy deriving from higher energy sources are down-scattered into lower energy classifications. This procedure results in count rates classified as purely Potassium, Uranium and Thorium without influence from the higher energy sources of radiation (this correction step primarily affects the two lower energy spectral windows: Uranium and Potassium). Appendix 9.6



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4. Altitude Attenuation Correction

Effects due to varying terrain clearance are compensated for in this correction step. By applying experimentally determined Altitude Attenuation coefficients keyed to terrain clearance corrected to Standard Temperature and Pressure, measured count rates are adjusted to a constant terrain clearance (i.e. the survey’s programmed clearance of 80 metres). Refer to 9.7 Appendix VII – Altitude Attenuation for details on the determination of the exponential altitude attenuation coefficients.

5. Conversion to Ground Units

As a final step, the count rates in the integral channel window (Total Count) and the three spectral channel windows (Potassium, Uranium and Thorium) are converted to equivalent ground concentration units through application of sensitivity factors developed during a calibration flight over an approved radiometric test range. The system was calibrated at the Geologic Survey of Canada’s calibration facility located outside Ottawa, Ontario, Canada. See 9.8 Appendix VIII – Sensitivity Factors. Conversion of measured count rates to ground units has the advantage of presenting the measured levels of radiation using a standardized physical reference framework as well as to facilitate integration of the data with other radiometric data sets. A tabular summary of presentation units follows:

Window (“ROI”) Description Unit Total Count Dosage Rate nGy/hr Potassium Concentration %K Uranium Equivalent Concentration ppm eU Thorium Equivalent Concentration ppm eTH

6. Gridding

Final data grids were constructed using a symmetrical grid cell definition of 10x10 metres. The grid was generated using bi-directional interpolation, using an Akima spline as the primary interpolation method.



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Total Count



31

Potassium



32

Uranium



33

Thorium



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Ternary



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7.5. LIST OF FINAL PRODUCTS Two copies of the following maps were produced at a scale of 1:50,000: 1. Flight_Path Flight Path 2. TMI Total magnetic intensity (nT) 3. VD1 Calculated vertical derivative of measured

total magnetic intensity (nT/m) 4. HGX Measured lateral gradient, (nT/m) 5. HGY Measured longitudinal gradient, (nT/m) 6. Tilt_Dv Tilt derivative derived from tail sensor TMI

(degrees) 7. XDS_Line XDS VLF line EM component (volts) 8. XDS_Ortho XDS VLF orthogonal EM component (volts) 9. XDS_Vertical XDS VLF vertical EM component (volts) 10. XDS_Ternary Ternary image of three XDS VLF components 11. Potassium Derived sensitivity of potassium (%K) 12. Thorium Derived sensitivity of thorium (ppm eTh) 13. Uranium Derived sensitivity of uranium (ppm eU) 14. Tot_Count Corrected total count (nGy/hr) 15. Ternary Proportions of potassium, thorium and uranium

counts 16. DTM Digital terrain model (m) Digital products include final Geosoft Oasis Montaj database (.GDB), binary (.GBN) data file (compatible with 4.1 or higher), gridded data, map files and JPEGs of the maps on a DVD.



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8. SUMMARY An airborne high sensitivity horizontal gradient magnetic, XDS VLF-EM and radiometric survey was performed over the Shining Tree Project survey area in northern Ontario located 125 kilometres north of Sudbury and 80 kilometres west of the town of Earlton, with 89 metre mean terrain clearance, 100 metre survey line intervals, 1,000 metre tie line interval, and with data sample points at 7-8 metres along the flight lines. The base of operations was at Earlton. A high sensitivity magnetic and a GPS base station located at the airport recorded the diurnal magnetic activity and reference GPS time during the survey for adherence to survey tolerances. The data were subjected to final processing to produce the following colour maps at a scale of 1:50,000:

a) Magnetics: total magnetic intensity of tail sensor, calculated vertical derivative, tilt derivative

b) Measured Gradient Magnetics; measured along-line gradient of tail sensor, and measured transverse gradient of wing tip sensors;

c) XDS VLF-EM: Line, Ortho and Vertical Coils, XDS Ternary d) Radiometrics: Total Count, Potassium, Uranium, Thorium, Ternary e) Flight Path and Digital Terrain Model

All data have been archived as Geosoft database (GDB); all MAP and GRID files used to make the maps, JPEG and PDF images of the maps, and this report are included in the archive. Respectfully Submitted,

Charles Barrie, M.Sc. Vice President Terraquest Ltd.



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9. APPENDICES

9.1. APPENDIX I - CERTIFICATE OF QUALIFICATION I, Charles Barrie, certify that I:

1) am registered as a Fellow with the Geological Association of Canada, as a P.Geo. with the Association of Professional Geoscientists of Ontario and work professionally as a geologist,

2) hold an Honours degree in Geology from McMaster University, Canada, obtained in 1977,

3) hold an M.Sc. in Geology from Dalhousie University, Canada, obtained in 1980, 4) am a member of the Prospectors and Developers Association of Canada, 5) am a member of the Canadian Institute of Mining, Metallurgy and Petroleum, 6) have worked as a geologist for over twenty five years, 7) am employed by and am an owner of Terraquest Ltd., specializing in high

sensitivity airborne geophysical surveys, and 8) have prepared this operations and specifications report pertaining to airborne data

collected by Terraquest Ltd.. Markham, Ontario, Canada Signed

Charles Q. Barrie, M.Sc. Vice President, Terraquest Ltd.



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9.2. APPENDIX II – PRODUCTION SUMMARY

9.3. APPENDIX III – PRODUCTION STATISTICS



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9.4. APPENDIX IV – FIGURE OF MERIT



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9.5. APPENDIX V – RADAR ALTIMETER CALIBRATION



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9.6. APPENDIX VI – COMPTON COEFFICIENTS """ CALIBRATION OF K-U-TH WINDOW COUNTS FROM PAD MEASUREMENTS """

PROGRAM PADWIN Concentrations of Transportable Pads - Uplands - new U pad (John Carson) NUMBER OF PADS = 4 PAD CONCENTRATIONS: PCT K PPM EU PPM TH B Pad 1.341 ( .010) 1.05 ( .03) 2.10 ( .06) K Pad 6.740 ( .030) 2.24 ( .10) 5.89 ( .67) U Pad 1.250 ( .010) 53.33 ( .39) 3.20 ( .09) T Pad 1.340 ( .020) 2.52 ( .07) 121.97 ( .71) GEOMETRIC CORRECTION FACTORS: POTASSIUM URANIUM THORIUM 1.16 1.17 1.19 Ottawa Pads - 14JUL10 -DET AVE WINDOW COUNTS: TIME (M) K COUNTS U COUNTS TH COUNTS B Pad 1196.7 153960. 19745. 18547. K Pad 1200.0 319200. 24000. 23600. U Pad 1200.0 251600. 147200. 26000. T Pad 1200.0 232400. 73200. 188400. A-MATRIX FROM NONLINEAR REGRESSION: 2.472E+01 (1.919E-01) 1.582E+00 (1.703E-02) 5.231E-01 (7.075E-03) -4.089E-02 (6.624E-02) 2.023E+00 (1.650E-02) 3.464E-01 (3.220E-03) -7.636E-02 (1.502E-01) 9.303E-02 (4.239E-03) 1.179E+00 (7.689E-03) INVERSE A-MATRIX: 4.037E-02 (2.934E-04) -3.115E-02 (3.005E-04) -8.757E-03 (2.186E-04) 3.733E-04 (1.025E-03) 5.007E-01 (4.163E-03) -1.472E-01 (1.653E-03) 2.584E-03 (5.143E-03) -4.152E-02 (4.094E-03) 8.590E-01 (5.754E-03) WINDOW SENSITIVITIES FOR SMALL SOURCES: K SENSITIVITY (A11) = 2.472E+01 (1.919E-01) COUNTS/ M PER PCT K U SENSITIVITY (A22) = 2.023E+00 (1.650E-02) COUNTS/ M PER PPM EU TH SENSITIVITY (A33) = 1.179E+00 (7.689E-03) COUNTS/ M PER PPM TH WINDOW SENSITIVITIES FOR INFINITE SOURCES: K SENSITIVITY (A11) = 2.868E+01 (2.226E-01) COUNTS/ M PER PCT K U SENSITIVITY (A22) = 2.367E+00 (1.930E-02) COUNTS/ M PER PPM EU TH SENSITIVITY (A33) = 1.403E+00 (9.149E-03) COUNTS/ M PER PPM TH STRIPPING RATIOS: TH INTO U (ALPHA = A23/A33): .2937 ( .0022) TH INTO K (BETA = A13/A33): .4436 ( .0055) U INTO K (GAMMA = A12/A22): .7816 ( .0065) U INTO TH (A = A32/A22): .0460 ( .0021)



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K INTO TH (B = A31/A11): -.0031 ( .0061) K INTO U (G = A21/A11): -.0017 ( .0027) BACKGROUND COUNT RATES: K WINDOW : 9.275E+01 (5.790E-01) COUNTS/M U WINDOW : 1.370E+01 (1.898E-01) COUNTS/M TH WINDOW : 1.303E+01 (2.622E-01) COUNTS/M NUMBERS IN PARENTHESES ARE ESTIMATED STANDARD DEVIATIONS Stop - Program terminated.



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9.7. APPENDIX VII – ALTITUDE ATTENTUATION



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9.8. APPENDIX VIII – SENSITIVITY FACTORS



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9.9. APPENDIX IX – COSMIC CALIBRATION



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9.10. APPENDIX X – README FILE Terraquest Ltd. Aeromagnetic/Spectrometer/XDS-VLF Survey Project B323 January 11, 2011 for CRESO RESOURCES INC. Shining Tree Project Shining Tree, Ontario FINAL DATA ARCHIVE 1. Geosoft Grids 2. Geosoft Maps 3. Map JPEGs 4. Geosoft Databases 5. Report 1. Geosoft Grids DTMFNL Final digital terrain model (m) TF3FNL Total Magnetic Field measured from the tail

sensor, final processed (nT) VD1 Calculated vertical derivative of measured total

magnetic field (nT/m) HGX_FNL Measured lateral gradient between wingtip

sensors, final processed (nT/m) HGY_FNL Measured longitudinal gradient, final processed

(nT/m) Tilt_Dv Tilt derivative derived from tail sensor

(degrees) Tot_Count Corrected total count radiometrics (nGy/hr) SK Corrected potassium radiometrics (%K) SU Equivalent uranium radiometrics (ppm eU) STh Equivalent thorium radiometrics (ppm eTh) LINEFNL XDS VLF line EM component (volts) ORTNRM XDS VLF orthogonal EM component (volts) VRTFNL XDS VLF vertical EM component (volts)



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2. Geosoft Maps Maps are in Packed format. 1. Flight_Path 2. TMI Total magnetic intensity (nT) 3. VD1 Calculated vertical derivative of measured



counts 16. DTM Digital terrain model (m) 3. Map JPEGs 1. Flight_Path 2. TMI Total magnetic intensity (nT) 3. VD1 Calculated vertical derivative of measured



counts 16. DTM Digital terrain model (m)



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4. Geosoft Databases B323 Radiometrics.GDB B323 Magnetics.GDB 5. Documents Report in PDF format. Readme file in Word. Database Channel Description The "B323_Magnetics" database file contains the following channels: X UTM zone 17N Easting [NAD 83] (m) Y UTM zone 17N Northing [NAD 83] (m) RMSFID Fiducial (s) TIME Time (GPS day-sec) RADALT Aircraft radar terrain clearance (m) DTMFNL Final digital terrain model, UTM zone 17N [NAD 83]

(m) ALT Aircraft altimeter (m) LAT Latitude [NAD 83] (decimal degrees) LON Longitude [NAD 83] (decimal degrees) DIURNAL Base station diurnal TMI (nT) TF1RAW Raw left wingtip sensor total magnetic field (nT) TF2RAW Raw right wingtip sensor total magnetic field (nT) TF3RAW Raw tail sensor total magnetic field (nT) TF3FNL Final leveled measured total magnetic field (tail

sensor, nT) VD1 Calculated vertical derivative of measured total

magnetic intensity (nT/m) HGX_FNL Lateral component of horizontal magnetic gradient

(nT/m) HGY_FNL Longitudinal component of horizontal magnetic

gradient (nT/m) LINETOTAL Raw XDS VLF line component (volts) ORTHOTOTAL Raw XDS VLF orthogonal component (volts) VERTTOTAL Raw XDS VLF vertical component (volts) LINEFNL Processed XDS VLF line component (volts) ORTFNL Processed XDS VLF orthogonal component (volts) VRTFNL Processed XDS VLF vertical component (volts) TILT_DV Micro-leveled tilt derivative of tail sensor TMI

(degrees)



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The "B323_Radiometrics" database file contains the following channels: X UTM zone 17N Easting [NAD 83] (m) Y UTM zone 17N Northing [NAD 83] (m) RMSFID Fiducial (s) TIME Time (GPS day-sec) RADALT Aircraft radar terrain clearance (m) RADSTP Radar corrected terrain clearance to standard

temerature and pressure (m) DTMFNL Final digital terrain model, UTM zone 17N [NAD 83]

(m) ALT Aircraft altimeter (m) LAT Latitude [NAD 83] (decimal degrees) LON Longitude [NAD 83] (decimal degrees) PRESSURE Atmospheric pressure (mbar) TEMP Temperature (degrees Cel) SPC_DOWN Raw 256 channel downward looking crystal array spectrum SPC_UP Raw 256 channel upward looking crystal array

spectrum RAWTC Raw total count integral window (cps) RAWK Raw potassium integral window (cps) RAWU Raw uranium integral window (cps) RAWTH Raw thorium integral window (cps) RAWCOS Raw cosmic integral window channel (cps) RAWUUP Raw upward looking uranium integral window (cps) FTC Final corrected total count integral window (cps) FK Final corrected potassium integral window (cps) FU Final corrected uranium Integral window (cps) FTH Final corrected thorium Integral window (cps) STC Processed, lag corrected, calculated to ground units

total count (nGy/h) SK Processed, lag corrected, calculated to ground units

potassium (%K) SU Processed, lag corrected, calculated to ground units

uranium (ppm eU) STH Processed, lag corrected, calculated to ground units

thorium (ppm eTh) Submitted by Terraquest Ltd. 2-2800 John Street, Markham, Ontario, Canada, L3R 0E2 tel. (905) 477-2800 fax. (905) 477-2820 web. @terraquest.ca

mailto:[email protected]�



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Additional Notes The tilt derivative is calculated from the total magnetic intensity (TMI) of the tail sensor. From the TMI, the vertical and horizontal derivatives are calculated, and the tilt derivative is the arctan of the ratio of these derivatives, vertical over horizontal. Calculated in degrees, a tilt derivative of zero represents no vertical gradient, only a horizontal gradient. A large value of the tilt derivative (approaching +/- 90 degrees) represents a near zero horizontal gradient. The difference at map scale between 45 degrees and zero is an approximate indicator to the depth to the top of the source.