•rt

v....

REPORT OF GEOLOGICAL SURVEY

ON CLAIMS 1186365 through 1186370,

HELD BY FALCONBRIDGE LIMITED

NIPIGON BAY, ONTARIO

NTS: 52-A/16 PROJECT: CYPRESS BAY (#8227)

May 30 through JUNE 20,19 VECE

JUM 1.6 1997

MINING LANDS BRANCH

BY

TARA SAGRIFF

ASSOCIATE GEOLOGIST

FALCONBRIDGE LIMITED

JULY, 1996

42D13NW0003 2.17389 MCALLISTER 010

TABLE OF CONTENTS

1.0 INTRODUCTION ............................................................................................. l2.0 LCATION, ACCESS ......................................................................................... l3.0 TOPOGRAPHY ................................................................................................. l4.0 PREVIOUS WORK ........................................................................................... l5.0 REGIONAL GEOLOGY ................................................................................... 36.0 GEOLOGY OF CYPRESS BAY GRID ............................................................ 37.0 GEOCHEMISTRY ............................................................................................. 58.0 CONCLUSIONS AND RECOMMENDATIONS ............................................. 59.0 REFERENCES ................................................................................................... 6

LIST OF FIGURES

FIGURE 1: GRID LOCATION MAP....................................................................... 2FIGURE 2: NIPIGON REGIONAL GEOLOGY MAP............................................ 4

LIST OF MAPS

MAP 1: COMPILATION MAP ................................................................... Pocket

LIST OF APPENDICES

Appendix I: MAGNETIC SUSCEPTIBILITY INFORMATIONAppendix H: WHOLE ROCK ANALYSISAppendix III: PERSONNELAppendix IV: EXPENSE DISTRIBUTION

42D13NW0003 2.17389 MCALLISTER 01OC

INTRODUCTION

A total of 84 km of l :5000 scale geological mapping was completed on the grid within claims in McAllister Township between May 30 and June 20. The purpose of the program was to identify specific magnetic features and to better understand the geology. Hand samples and geochemical samples were taken along with magnetic susceptibility readings. The property consists of six mining claims which include 1186365 to 1186370 inclusive (Fig 1).

Location and Access

The Cypress Bay claims are located in McAllister Township located along the north shore of Nipigon Bay and 28 kilometres east southeast of Nipigon Ontario (Fig 1). Access to the claims is gained via Highway 17 which cuts through the property. The Unitel Tower road transects the eastern portion of the property. The Canadian Pacific rail tracks parallels the highway and power lines occur along the highway, along the Tower road and along the northern boundary of the claims.

Topography

The ground within the McAllister Township claims is typically flat near the lakeshore. A high 300-400 foot ridge trends east northeast through the northern portion of the property. Vegetation consists typically of low alder and hazel brush and open poplar, birch and spruce mature growth. Maclnnes Creek bisects the property.

Previous Work

In 1992 and 1993, a Nipigon Plate reconnaissance program was completed by Falconbridge. This was a geological, geochemical lake and stream sediment program concentrating on the southern 100 kilometres of the Nipigon Embayment and the Osler Group basalt outcrop area adjacent to the North Shore l Gravel River Fault. Geological reconnaissance mapping, six contiguous lake and stream sediment samples, and one whole rock sample was taken on the grid.

In September 1993, a total of 105 kilometres of line was cut on the Cypress Bay claims located in McAllister Township. A total magnetic field survey was also conducted on 88 kilometers of this grid. The purpose of this survey was to identify all major geologic units in the area, as well as a number of previously unmapped dykes and structural features, many of which may reflect faults.

In November 1993, a combined airborne GEOTEM electromagnetic and magnetic survey was flown for Falconbridge by GEOTERREX. This survey included 74 line-

' KtcALUSTER TWP

VERT ISLANDNIPIGON BAY(LAKE SUPERIOR)

Vjf RED ROCK IMPROVEMENT DISTRICT

McAllister Township Claims

FALCONBRIDGE LIMITED

FALCONBRIDGE LIMITED CLAIMS LOCATION

kilometres of tests flown on the north shore of Lake Superior at Nipigon Bay. The purpose of this survey was to yield structural and geophysical information of the area.

In February 1996, Falconbridge drilled one diamond drill hole from the north shore of Nipigon Bay to test the regional airborne magnetic anomaly occurring within the Mid-Continental rift.

Regional Geology

A Mid -continental Rift System can be trace for 200 kilometres along the north shore of lake Superior and also extends for 200 kilometres north up the Nipigon Embayment into the Lake Nipigon area. The rift system is marked by prominent magnetic and gravity anomalies. The Proterozoic Keweenawan rocks of the Mid- Continental Rift System lie unconformably on top of older metamorphosed Archean rocks. The Archean rocks are predominantly gneiss, metasediments, and plutonic rocks.

Unconformably overlying the Archean is the 2,200 m.y. Animikie Group Sediments (Fig. 2), that outcrop along the north shore of Lake Superior (Fig. 2). This group is composed of shales, siltstones, sandstones, chert, and Fe-carbonates. This formation does not extend north into the Nipigon Embayment.

Disconformably overlying the Animikie is the Sibley Group Sediments (Fig. 2) which were deposited 1,300 m.y. ago in an arid coastal environment. The Sibley Group is at least 300 metres thick and is composed of sandstone, siltstone, limestone, dolomite, and minor gypsum.

Sometime after 1,200 m.y., rifting occurred forming several major faults including the North Shore l Gravel River Fault, Black Sturgeon Fault, Nipigon River Fault, and the Wolf River Fault. Volcanism commenced along these faults at 1,108 m.y. producing the Osler Group basalts which now outcrop along the Black Bay Peninsula, St. Ignace Island and other associated islands (Fig. 2). This group consists of tholeiitic basalts, minor rhyolite and interbedded sedimentary rocks which unconformably overlie the Sibley Group.

These groups have been intruded by norite-gabbro bodies including the Moss Lake Intrusion on the Black Bay peninsula (Mcilwaine, et.al, 1976) and by felsic porphyry such as the St. Ignace stock which is ringed by a gabbro-anorthosite complex.

Geology of Cypress Bay Grid

The property was mapped at l: 10000 scale on a cut grid with 100m line separation on claims 1186365 to 1186370. Hand samples and magnetic susceptibility readings were taken at most stations. The geology, station magnetic susceptibility

NSAPAREA

LJ 100 km

Osler Flood Basalts

Logan Diabase

Sibley Group Sediments

Animikie Group Sediments

Archean Basement

Study Area (Claimsl 186365 -1186370)

kilometres

FALCONBRIDGE LIMITEDExploration Timmins, Ontario

Cypress Bay Project REGIONAL GEOLOGY

Traced: TS Date: 03/94Drawn: TS Date 04/94Supervised: DM Date: 03/94Revised: SM Date: 03/97

NTS: Project No 8227Map No FileNIPGEO

Fig. 2

readings, and geochemical sample locations are presented in figures 4, 6, and 7 respectively. Fifteen geochemical rock samples were also taken and sent for whole rock analysis (Appendix 1).

The main rock types found on the Cypress bay grid are the Archean basement, Sibley group sediments, and mafic intrusives. The Archean basement rocks include magnetic and nonmagnetic granites. They are mainly pink to grey in colour, and range from a fine grained gneiss to a medium grained fresh granite. The magnetic susceptibility of the granites ranged between 0.25 to 45.0 (Appendix I).

The Sibley group consists of fine grained red siltstones which are thinly bedded, and locally host small yellow-brown reduction spheres (6.4 mm maximum) generally attributed to reducing conditions caused by the decomposition of enclosed organic matter (Mcilwaine 1976, p.7). The Sibley sediments have an easterly strike and dip shallowly between 5-25 to the south. The magnetic susceptibility of the sediments ranged between 0.0 to 0.23 (Appendix I).

These units are intruded by magnetic mafic intrusive rocks. These rocks displayed diabasic texture and mineralogy. They were medium to dark grey, medium grained, and have magnetic susceptibility readings between 6.43 and 54.0 (Appendix I).

Geochemistry

Fifteen geochemical rock samples were taken on the grid and were sent for whole rock analysis. Two samples AT05702 and AT05707, are of magnetic granite located over magnetic highs, and thirteen samples AT05701, AT05702 to AT05703 and AT05706 to AT05715, are of mafic intrusive gabbro, most of these samples are associated with magnetic anomalies.

Conclusions and Recommendations

Most of the magnetic bullseyes can be explained as magnetic granite or mafic intrusive rocks. A narrow linear feature trending north east, diagonally across the entire grid has been interpreted as a diabase dyke. A north, south east trending narrow negative magnetic anomaly, correlates closely with the railroad tracks and the associated power line

Since there was no significant mineralization and most of the magnetic highs have been explain, I would not recommend further work on these claims.

REFERENCES

Mcilwaine, W.H. and Wallace, H.1976: Geology of the Black Bay Peninsula Area, District of Thunder Bay;

Ontario Div. Mines, GR133, 54p.

Mcilwaine, W.H. and Wallace, H.1976: Geology of the Black Bay Peninsula Area, District of Thunder Bay;

Ontario Div. Mines, GR133, 7p.

I. Tara-Lynn Sagriff, hereby declare that:

1. I am a contract employee of Falconbridge Limited and presently hold the position of Associate Geologist.

2. I am a graduate of Carleton University, Ottawa, Ontario in 1994 with a Bachelor of Science, major in Geology.

3. I have been actively engaged in my profession for the last 5 years.4. I have no interest nor do I expect to receive any interest, direct or indirect, in the

properties or securities of Falconbridge Limited.

Tara-Lynn Sagriff Associate Geologist Falconbridge Limited

APPENDIX I

Appendix l

Magnetic Susceptibility

Magnetic susceptibility readings were taken using the KT-9 magnetic susceptibility meter. The KT-9 has a sensitivity of l x 10-5 SI units with an operating frequency of 10 kHz and a measuring range of 9.99, 99.9, 999x 10-3 SI units. The core of the instrument is a 10 kHz LC oscillator, the conductive component of which is a flat measuring coil situated at the active face of the instrument. The frequency of the oscillator is measured with the coil applied to the rock surface and then with the coil at some distance from the rock (free space measurement). From the frequency difference the true susceptibility is computed by the microcomputer, and displayed.

- -

GRID EASTING-

2+502+853+603+655+005+005+005+005+255+956+00

17+007+157+20

10+1511+0011+0015+0015+0015+0015+0016+2019+0019+0019+2020+0020+2020+4021+3022+0022+1022+1022+10

22+1523+0023+0023+0023+0023+1023+4024+0024+50

NIPIGON l BAY PROJECT - GRID SAMPLES

GRID NORTHING-

16+OON15+75N16+20N11+10N15+80N15+40N15+40N4+50N5+25N2+80N8+OON4+OOS

12+20N12+45N12+45N

2+OOS3+OON0+60N

12+OON11+95N10+40N10+40N12+25N16+OON12+75N15+25N13+55N11+80N16+OON

5+40S12+40N

7+OON9+20N6+50S

11+9011+60N11+OON

8+OON3+50?7+OON

12+OON12+156+25S

STATION #TS001

TS007TS006TS008TS013

TS004

TS003TS005TS002

KD-2TS009TS0012TS0010TS0016TS0015TS0014TS0014TS 0031

TS 0032TS 0033

TS 0034TS0017

TS0019TS 0020TS0018

TS 0021TS 0022TS 0023TS 0024TS 0026TS 0025

SAMPLE #TS001

TS007TS006TS008TS013

TS004

TS003TS005TS002

KD-1

AT05706TS009TS0012TS0010TS0016TS0015AT05701TS0014TS 0031

AT05707AT05712AT05709AT05708AT05710AT05702AT05713TS0019TS 0020TS0018

AT0571 1AT05703TS 0023TS 0024TS 0026TS 0025

AT05715

ROCK TYPE(5) Sibley(5ae) Sibley(5) Sibley(5) Sibley(5) Sibley(7) Maf. Int.(7) Maf. Int.(5) Sibley(7) Maf. Int.(5) Sibley(5) Sibley(5) Sibley(5) Sibley(5) Conglom(7) Maf. Int.

(7b) Maf. Int.(5) Sibley(5) Sed(5) Sibley(5) Sibley(5) Sibley(7a) Maf. Int.(5) Sibley(5) Sed(7) Maf. Int.

(7a) Maf. Int.(7) Maf. Int.(7) Maf. Int.(7) Maf. Int.(7) Maf. Int.

(9 b) Granite(7) Maf. Int.(5a) Sed(5a) Sibley

(9b) Granite(7b) Maf. Int.(7) Maf. Int.

(5) Sed/Slate(5) Sibley(5) Sibley(5) Sibley(7) Maf. Int.(7) Maf. Int.(9b) Granite

——— -

MAG. S.0.10

0.100

6.43-44.628.8

01.2

0.150

0.010.040.1123.918.7

000

0.31;

20.21

0.21-5.7548.717.554

21.324.528.20.419.960.080.0645

40-50250.1

0.090.081.2

42.17.1614.8

25+0025+0025+0025+0025+2025+4025+6025+9526+0026+0026+0026+0026+0526+1027+0027+7027+7527+8027+9028+0028+0028+0028+0028+0528+0528+0028+2029+0029+0033+0033+0034+0034+8035+0038+0037+0037+2037+3537+75

14+90N13+40N11+OON5+40N

11+40N10+OON15+OON7+35S

11+20N3+70N2+60N7+OOS1+05N4+40N5+80S5+90N3+20S3+OOS7+OOS

12+OON9+80N9+OON5+98N0+05N0+05N6+50S3+OOS6+20N4+80N8+80N1+60N

10+OON4+OON7+60N0+20S5+60N5+65N5+50N5+40N

KD-3

TS 0027TS 0037

KD-6TS 0036TS 0038

KD-4

TS036

TS035TS038

TS 028

TS029

TS030

KD-3

TS 0027TS 0037

KD-6TS 0036TS 0038

KD-4

TS036

TS035TS038

TS028

TS029

TS030

(7) Maf. Int.(7) Maf. Int.(7) Maf. Int.(5) Sibley(7) Maf. Int.(7) Maf. Int.(7) Maf. Int.(9) Granite(7) Maf. Int.(5) Sibley(5) Sibley(9b) Granite(5) Sibley(5) Sibley(9) Granite(9b) Granite(9) Granite(9) Granite(9) Granite(7) Maf. Int.(7) Maf. Int.(5) Slate(9b) Granite(9) Granite(5) Sibley(9b) Granite(9) Granite(5) Sibley(5) Sibley(7) Maf. Int.(5a) Sibley(7) Maf. Int.(5a) Sed(7) Maf. Int.

(7a) Maf. Int.(7a) Maf. Int.(7a) Maf. Int.(7) Maf. Int.(7) Maf. Int.

2926.7

10-43.50.0935

10-43.547.314.221.50.020.0412.90.040.0214.727.327.513.9

3.7-19.127.521

0.030.5-43.80.25-42.2

01.20.5

0.090

250.1524.50.0713.6

17-4015.217

16-36.120.5

UTM NORTHING

5419513N5419513N5419513N5419559N5419579N5419325N5419184N5419065N5418939N5418939N5418818N5418721N5419513N5419948N5421261N5421146N5420472N5420667N5420966N5421477N5421 861 N5422 135N5422851 N5423082N5423506N54242 13N5424635N5425658N5425847N5427346N5429098N5429098N

^ , L ^REGIONAL (HWY)

UTM EASTING

438106. 3E438106.3E438106. 3E442346.3E442062. 3E441209.9E440927.4E440616.3E440356. 5E440356. 5E440093.9E439817. 3E438106.3E437230.3E434869.5E434559.5E432858.8E431974.3E431451. 9E430989.2E430680.6E430337. 9E429551. 4E429291. OE428594.9E427833.5E427318.5E426126. 7E425925.4E425144. 1E425442. 6E425442.6E

SAMPLES

STATION*

TS050TS050TS050TS051TS052TS053TS054TS055TS056TS056TS057TS058TS059TS060TS061TS062TS064TS065TS066TS067TS068TS069TS070TS071TS072TS073TS074TS075TS076TS077TS079TS079

SAMPLE #

TS 050ATS 050BTS 050CTS051TS052TS053TS054TS055TS056TS056TS057TS058

AT05714TS062

TS068TS069TS070TS071TS072TS073TS074TS075TS076

TS079

ROCK TYPE

(9) Granite(9) Granite(9) Granite

(9b) Granite(7) Maf. Int.(9) Granite(9) Granite(7) Maf. Int.(9) Granite(7) Maf. Int.(7) Maf. Int.(9) Granite(5) Sibley(5) Sibley(9) Granite(9) Granite(5) Sibley(5) Sibley(5) Sibley(5) Sed(7) Maf. Int.(7) Maf. Int.(7) Maf. Int.(7) Maf. Int.(7) Maf. Int.(7) Maf. Int.(7) Maf. Int.(7) Maf. Int.(7) Maf. Int.(5) Sibley(5) Sibley(7) Maf. Int.

MAG. SUS.

3.79-2032.1

0.5-1 l/av.2. 940.3-7. l/av.2. 13

0.648-Jan

161-16/3V.6.9

3.632.590

10.130.2310.3

0.04-240.1

0.140.020.1

17.9-49.330.529

20.8-64.823.7-53

12.5-31.528

12.91-47.5260.1

0.0721.3-52.6

APPENDIX II

mCL

FALCONB'ATTtt: T. SAa

PROJJ 8277

6V-2435-RC1

SAMPLE

OGE EXPLORATION LTD.d S . rtcLBAN

1270 FEW3TKR DR1VX, U'

PKDHZ #: (905)602-823u

3 MISSlSSAUOA.OHMIUO I.4W-IA4

TAX H : (505)206-0513

ST05701

AT05702

A1Q5703

AT05704

AT05705

ST05706

RT05707

R705700

RT05709

RT05710

AT05711

AT05712

AI05713

AT05714

RT05715

01

d.O)en CE ien

in w

ODen

C\J

t-)

I.C.A.P. WHOLE ROCK ANALYSISLithium HetaBorate Fusion

REPORT HO. : tf 1 7

Psga Mo. : l or l

Pila Jto, : J U12RA

Pat* : JUI-12-1996

Oxides in X - M inors p pn

T3L/96

APPENDIX HI

PERSONNEL

Scott McLean Senior Project Geologist Falconbridge Limited Timmins, ON

Tara Sagriff Associate Geologist Falconbridge Limited Timmins, ON

Kim Daprato Field Assistant Falconbridge Limited Timmins, ON

Nicole Provins Field Assistant Falconbridge Limited Timmins, ON

APPENDIX IV

Program Expenses

Salaries 14400Supervision 900Lodging 4830Sampling S Shipping 420 Equipment S Field Supplies 1500Transportation 420

Total 22470

04/04/97 ll:-56 FALCONBRIDGE LTD WINNIPEG EXPL ©002/004

Personal information ci Mining Act, the informs Questions about this 933 Ramsay Lake Roa

Ministry ofNorthern Devetepmanland Mines

Declaration of Assessment Work Performed on Mining LandMining Act, Subsection 65(2) and es(3), R.s.O. 199O

Tra ffice uaa)

Assesameni Fllss Research Imaging

66(3) of the Mining Act. Ureter section B of the ork and correspond with the mining land holder

•volopment and Mines. 6ih Floor.

42D13NW0003 2 17389 MCALLISTER 900Nortfrafn r O

Instructions: - For work performed on Crown Lands before recording a claim, use form 0240. 7}ZC L - P lease type or print in ink.

1. Recorded holder(s) (Attach a list if necessary)Name

^-~/*? - c.^^ g /z //?6f ^- //?? / 7^0Address

^T'&^cJsv'T'C? c? si^~7~ s&J^ /(J . f/3"-** a? r sName

Addres*--- ' ' ^ 11J——

Client Numoar

Telephone Number

Fax Numbar

Client Numbar ^

Telephone Numbar

Fax Number

2. Type of work performed: Check ( ^ ) and report on only ONE of the following groups for this declaration.

Geotechnical: prospecting, surveys, assays and work under section 18 (regs) D Physical: drilling, stripping,

trenching and associated assays [~] Rehabilitation

Work Type

Oates Work .. — -r-,,-.^,-/-^ Performad F'0"1 30 O 5 J& To 2.^ , O (a, . ffr

Diy Month Y*v D*y l MonUi | TMrGlobal Positioning System Data (if available) Township/Area

M or d-Pian Number ^-\

G?8

Office Use

Commodity /i/ ^ y -- - — --

Total S Value of Work Claimed Z 21X7^- &O '

NTS Reference 2. D S ?

Mining Division Tyytf/vpfA /ZtfV

Resident Geojogtet Lf *~~*

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

. . ..,. .... . ..,.,H -.ri t "- .' -. •••- -' .'- '.-.TiC . •.-,...- , . . .-J . ^.-^ .—-

Address

Name -7-.S?J?# S-^G/ts/^f

Addreaa

J^tft c-o"4X'06{ t. s/n s re 0 r/svwsName

Addreaa

•--••~VT ,v.i! n- ra-^ : - ; - ••-•-•• 1 -- -- J* to emo-?Fiu Numbar

Telephone NumbarTWT - 2-6,7 -//##

Fax Numbar

Telaphom

Fax Num

4. Certification by Recorded Holder or Agentt

9 Numbar

eR E C E 1 V E D

^ JUN 16 1997

MINING LAND.? RflANHH

l, yf^r fs'/^' 6*S6c~t~3_______ ^o hereby certify that l have personal knowledge of the facts set(Print Name)

forth in 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 trua.

Signature of Recorded Holder or i

Agent's Address

Z/ CTelephone Number

Date

Fa* Numbar

R 31"

•04/04/^7^TD * ^* W INNIPEG EXPL '^003/004

5. Work to be recorded and distributed.the mining land where work was performed, must accompany this form.

Work can only be assigned to claims that are contiguous (adjoining) to at the time work was performed. A map showing the contiguous link

Mining Claim Number. Or il work was dona on other eligible mining land, show in this column the location number indicated on the claim map.

eg

eg

eg

1

2

3

4

S

6

7

8

9

10

11

12

13

14

15

TB 7827

1 234567

1 234568

~7~ //g 6,3(06*

-^//f6*36'7

r //f '63 6 9

7~ //f63'7O

T'/'g&JbS'

T //&63&S

lumber of Claim Unlta. For other mining land, list lectares.

16 ha

12

2

S&

/6•/sSS

t,""**~..--

/6

Column Totals

Value of work performed on this claim or other mining land.

526. 825

0

l 8. 892

6,6,07.4V

317/. ff*

508J: (?o

96#o.ff*

Z 2 7. ro

9fl.ev. ^

u^#' ' \J 4*V

nCXvVVJ

ZZ J70 cm

Value of work applied to this claim.

N/A

S24,ODO

5 4,000

6,y(7v3" 5 7g. GO

SOS'3 *™

y&FO . oo

Z2-/7. fro

/*s?

Sg c

~*~/ ? F& . (TO

Value of work assigned lo other mining claims.

524,000

0

0

-^0~7. tro

O

0

f?

O

s\'S?

•*- s 3 o

~i. 0 7- w

Bank. Value of work to bs distributed at a future data.

52,825

0

S4,892

0

O

O

O0

yfi.^o

9

m..cro

l. , do hereby certify that the above work credits are eligible under(Print Full Namo)

subsection 7 (1) of the Assessment Work Regulation 6/96 for assignment to contiguous claims or for application to

the claim where the work was done.Signature of Recorded Holder or Agent Authorized in Writing Date

; T7

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

Some of the credits claimed in this declaration may be cut back. Please check ( ** ) in the boxes below to show how

you wish to prioritize the deletion of credits:

0 1. Credits are to be cut back from the Bank first, followed by option 2 or 3 or 4 as indicated.

S 2. Credits are to be cut back starting with the claims listed last, working backwards; or O 3. Credits are to be cut back equally over all claims listed in this declaration; or ^CD 4. Credits are to be cut back as prioritized on tha attached appen

JUN 16 1997

MININGLANDSBRANCH

Note: If you have not indicated how your credits are to be deleted, credits will be cut back from the Bank first, followed by option number 2 if necessary.

For Office Use Only-————--———.—-^Received Stamp Deemed Approved Date

DivisionData Approved

Oaia Notification Sant

Total Valua of Credit Appravad

Approved for Recording by Mining Rocordor (Signature;

Ministry of Ministere du t ;Northern Development Developpement du Nord *, f '--f f | i f ^ 3 ^*J J " f l' "\and Mines et des Mines \ V J V,.,,** * * \, t^,,| f f *w ,*

Geoscience Assessment OfficeJune 27, 1997 933 Ramsey Lake Road

6th Floor Sudbury, Ontario P3E 6B5

Mining Recorder435 James Street South Telephone: (705) 670-5853Suite BOOS Fax: ( 705 ) 670-5863

Thunder Bay, ONP7E 6E3

Dear Sir or Madam: Submission Number: 2.17389

Status Subject: Transaction Number(s): W9740.00161 Approval

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.

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

NOTE: This correspondence may affect the status of your mining lands. Please contact the Mining Recorder to determine the available options and the status of your claims.

If you have any questions regarding this correspondence, please contact Bruce Gates by e-mail at gates-b@torv05.ndm.gov.on.ea or by telephone at (705) 670-5856.

Yours sincerely,

ORIGINAL SIGNED BYRon C. GashinskiSenior Manager, Mining Lands SectionMines and Minerals Division

Correspondence ID: 10988

Copy for: Assessment Library

Work Report Assessment Results

Submission Number: 2 .17389

Date Correspondence Sent: J une 27, 1997 Assessor: Bruce Gates

Transaction Number

First Claim Number

W9740.00161 1186366

Section:12 Geological GEOL

Township(s)

MCALLISTER

l A rea(s) Status

Approval

Approval Date

June 25, 1997

Correspondence to:Mining Recorder Thunder Bay, ON

Resident Geologist Thunder Bay, ON

Assessment Files Library Sudbury, ON

Recorded Holder(s) and/or Agent(s):

Kevin Wells WINNIPEG, MANITOBA

FALCONBRIDGE LIMITED TORONTO, ONTARIO

Page: 1Correspondence ID: 10988

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LEGENDGeology

5423525mN

5419725mN

MCALLISTER Twp.LETT Twp

T 86366

T 1186367

T 1186365

#1 1TS6369 1200W

Bw #4 1186^6 1200W

Fb

Ce #1 Kl86369 800W

#4 11SSu366 800W

TS003R 9

Ce.Bw TS0017

AT05702 \ 9b1186369 400NW

#4 lNt86370 400N

FALCONBR DGE LIMITED

LICENSE of OCCUPATONT 86369

T 1186370

T 1186368

AKF ^UPFRTd/T. I \ JL-J kJ L7 l IJy l i l L/

5423525rriN

MAJOR ROCK DIVISIONS

| 15 | TO BE ANNOUNCED

HURONIAN SUPERGROUP

METAMORPHIC (Unknown)

GNEISS

SCHIST

DIABASE

FELSIC INTRUSIVE ROCKS

INTERMEDIATE INTRUSIVE ROCKS

MARC INTRUSIVE ROCKS

ULTRAMAFIC INTRUSIVE ROCKS

SEDIMENTARY ROCKS

TEXTURAL/GEOCHEMICAL MODIFIERS TEXTURAL/STRUCTURAL MODIFIERSa Fine Grainedb Medium Grainedbx Brecciac Coarse Grainedd Quartz-Feldspar Phyrice Amygdaloidal/Vesicubrf Primary Fraqmentalsg Graphitic/Argillaceoush Tholeiitici Alkalicj Cale-Alkalick Komatliticl Flowsm Massiven Variolitic/Spheruliticp Pillowedq Quartz Phyricr Oxide Iron Formations Sulphides, Exhalitest Pyroclasticu High Mgv High Few High Alx Andesitey Icelanditez Highly Evolved

ALTERATION MODIFIERS

A Primitive OiX20)B Evolved (YC HeterolithicD Feldspar PhyricE ChertF Wacke 'G Leucoxene BearingH Basaltic KomatiitelJ PyroxeniteK Net TexturedL PeridotiteM DuniteN OphiticP PorphyriticQR PolysuturedS FracturedT Gabbroic TexturedU Pyroxene SpinifexV Olivine SpinifexW Skeletal/CrescumulateX AdcumulateY MesocumulateZ Orthocumulate

tb*c•d teif

Lapilli(2-64mm) Lapillistone(765iX264mm)

*o*P*q*r

•y*z

AutoclasticThickly LaminatedThinly LaminatedClast SupportedMatrix SupportedGranule(gril 2 — 4mm)Pebble(4-64mm)Cobble(64.-256mm)Boulder^256mm)Graded BeddingCross BeddingFault GougeAugenPorphyroblasticHornfelsfoliated/shearedfoldedboudinagef ragmen talffelsio mafic)Frogmen talfma fie > felsic)Crystal Tuff^SO?? of frags)Lithic Tuff(^0?S of frags)

5,s5.RWV

SULPHIDE

REWORKED VOLCANIC DEBRIS

FELSIC VOLCANIC ROCKS

INTERMEDIATE VOLCANIC ROCKS

J, C HETEROLITHIC VOLCANIC ROCKS

Albitization ^^ Bleached <C>> Carbonaceous

Carbonatization Chloritization

<Ep> Epidotization CFCto Iron Carbonatization <He> Hematization ' <K>> Potassic Alteration <Rs> Rust Stained <Se> Sericitization <Si> Silicification <S^> Serpentinization •:Tc^ Talc-Carbonatized <Tk> Talc

ALTERATIONFORM

S Spots

CODE ROCK TYPE

Fracture/vein controlled Pervasive

MAFIC VOLCANIC ROCKS

ULTRAMAFIC VOLCANIC ROCKS

STRENGTH S Strong M Moderate W Weak

MINERALIZATION CODEFORM

D Disseminated/Blebs F Fracture/vein controlled M Massive B Bedded C Clasts/Fragments

<QFP> <QTZ> <MAR> <SKA> <PHY>

<GRA> <MON> <GRD> <APL> <FEL>

<GAB> <NOR>

<PER> <SER> <DUN> <PRX>

MINERALOGICAL NAMES•CWCIO <CGL>

AkAlbAlAmAhAdAVApArAspAsbAugAzBaBiBiBoCoCnGcCpChlCr^CrCpxCoCvCtDpDal

ActinoliteAlbiteAlmandineAmphiboliteAnhydriteAndalusiteAnthophylliteApatiteArgentiteArsenopyriteAsbestosAugiteAzuriteBariteBismuthiteBiotiteBorniteCalciteChalcedonyChalcociteChalcopyriteChloriteChloritoidChromiteClinopyroxeneCobalt MineralsCovelliteCordieriteDiopsideDolomite

EpiFeiFIFcGnGtVGGfGSGypHemHbHyIII-FJrKyLsLmMagMeMoMiMkMiMoMuNeNeNi

EpidoteFeldsparFluoriteFuchsiteGalenaGarnetGoldGraphiteGravel 3c SandGypsumHematiteHornblendeHyperstheneIlmeniteIron FormationJarositeKyaniteLimestoneLimoniteMagnetiteMalachiteMarcasiteMicaMicroclineMilleriteMolybdeniteMuscoviteNephelineNiccoliteNickel Minerals

Ov Or OpxPI

K!PyPxPoQtRoRuSurSeShSidSilSimSpsSphTiAgSpSpdStSbSulS-MS-DTk

OlivineOrthoclaseOrthopyroxenePhlogopitePlagioclasePentlanditePyritePyroxenePyrrhotiteQuartzRhodochrositeRutileSerpentineSericiteScheeliteSideriteSilicaSilliminiteSpessoriteSphaleriteSphene (Titanite)SilverSpinelSpodumeneStauroliteStibniteSulphidesMass. SulphidesDiss. SulphidesTalc

TeTtTo-CITITrWoZr

TellurideTertrahedriteTantalite-ColurnbiteTourmalineTremoliteWollastoniteZircon

<EXH> ^^<OIF>

QuartzofeldspathicQuartziteMarbleSkarn(Colc-Silicate)PhylliteTonaliteSyeniteGraniteMonzoniteGranodoriteApliteFelsiteQuartz DioriteGabbroNoriteAnorthositeDioritePeridotiteSerpentiniteDunitePyroxeniteLamprophyreSandstoneArkosic sandstoneGraywackeConglomerateSiltstoneMudstone-argilliteChert/exhaliteSilicate IFOxide IFSulphide IF

<SHA> ^S^ <CHM>

<CAR> <AMP>

<LEU><MEL> <UNK> <UMF> <MAF> <AND>

<RYD> <RHY> <SCL> <RWV>

Carbonate IFShaleLimestoneChem. Precip.SlateKimberliteCarbonateAmphiboliteMigmatitePegmatiteLeucocraticMelanocraticUnknown ProtolithUltramaficMaficAndesiteDaciteRhyodaciteRhyoliteSulphide ClastsReworked Volcanic Debris

--G-

l*

SymbolsCONTACTS

"i .j. Outcrop(small, observed, inferred, boulder/float)

^,-^ Geological Boundary " " (observed, approximate, assumed)

Geological Boundary(gradational. geophysically inferred)

-0- Flow Contact(defined, approximate)

MEASUREMENTS,/ Bedding with tops known ' ( horizontal, inclined, vertical, overturned, dip unknown)

Bedding with tops unknown (inclined, vertical, dip unknown)

-r Pillow top' ( horizontal, inclined, vertical, overturned, dip unknown)

Spinifex top

j Schistosity, gneissosity, cleavage or foliation ^ ( horizontal, inclined, vertical, dip unknown)

(No. of ticks - generation - SI, S2, S3)

X Jointing-f ( horizontal, inclined, vertical, dip unknown)

Lineation(horizontal, inclined, vertical)

F Folding — defined folds S fold. Z fold, multiple S, multiple Z)

Folding — undetermined type

\ \ \

PHYSICAL WORKtzn Mineral Occurrence.(i"*™! Trench^ ( 1:20,000 4-, 1:5,000 -)

Diamond Drill Hole(collar surveyed, collar located,collar unlocated)Overburden Drill HoleMine, quarry or glory hole (active, abandoned)Shaft(vertical, inclined, raise, winze)Adit, Ramp

MJtjja^ ~\ Rock Dump, TailingsGravel Pit(active, abandoned)

CULTURAL AND PHYSIOGRAPHIC FEATURES=<SH5t=

^—— (defined, approximate, assumed)(inclined, vertical, movement w/circle on downthrow side)

Fault(Geophysically inferred, Lineament inferred)

Thrust Fault(defined, approximate, assumed)(teeth indicate upthrust side)

rAT05701.

KD-1

TSOOOl

Shear zone

Dyke, vein(defined, approximate, assumed)

Anticline, Antiform(with or without plunge, overturned)

Syncline, Synform(with or without plunge, overturned)

Glacial striae(ice movement known, unknown)(numbers indicate relative age)

Limit of Geological Mopping

Loyering, Direction

Sample Location and Number

Field Station and Number

0

A A

D D

: Alt weather road (paved, gravel) Four wheel drive road Track TrailBuildings

Campsite

Power Line(major line, regular line)

Telephone Line (usable, unusable)

Railroad Track

Tower

Bridge

River(open, rapids)

Intermittent Stream

LakeSwampEsker

Claim Post (located)

Grids(current grid, old grid)

Survey Pin (located, unlocated)

Lot/Concession Corner Pin (located, government defined)

VegetationCe Cedar

Fb Balsam Fir

Bw White Birch

Sp Spruce

Pj Jackpine

At Poplar (Tremburg Aspen)

W Willow

55'N

54'N

,2'N

48'N

12

5

4

14

1 1

6

3

15

10

7

2

16

9

8

1

1:250,000 MAP SHEETS DIVIDEDINTO 16 1:50,000 MAP SHEETS,

NUMBERED AS SHOWN ABOVE

O 50 100 150 mi _l

100 200 km

MAGNETIC NORTH ASTRONOMIC

5419725mN

SHEET ORIENTED UTM NORTH AZIMUTH 359' 36'

FALCONBRIDGE LIM TED

Exploration Division Timmins ONTARIO

CYPRESS BAYNIPIGON BAY , ONTARIO

COMPILATION MAP

TRACED: T S DATE: 12/96

DRAWN: DATE; 26/03/97

SUPERVISED. S Mclean DATE: 25/03/97

DATE:

NTS: 42-3/13 PROJECT: 8227

MAP No: MAP l FILE: 8277 J

SCALE: 1:5000 (metres)

O 50 100 150 200

42D13NW0003 2.17389 MCALLISTER 210