2011 Assessment Work Marmora East Claims - Prospecting ... · 2011 Assessment Work Marmora East...

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2011 Assessment Work Marmora East Claims - Prospecting Field Report First Nickel Inc. Submitted to: MNDMF Geoscience Assessment Office Sudbury, Ontario Tel: 705.670.5742 Date: June 22, 2011 Report prepared by: Scot Halladay, P.Geo. and Alison Ryan (G.I.T.) Sr. Geologist Geologist First Nickel Inc. First Nickel Inc.

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2011 Assessment Work

Marmora East Claims - Prospecting Field Report First Nickel Inc.

Submitted to: MNDMF

Geoscience Assessment Office

Sudbury, Ontario

Tel: 705.670.5742

Date: June 22, 2011

Report prepared by:

Scot Halladay, P.Geo. and Alison Ryan (G.I.T.)

Sr. Geologist Geologist

First Nickel Inc. First Nickel Inc.

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ASSESSMENT WORK REPORT ON MARMORA EAST CLAIMS- BELMONT PROJECT, 2011 FIRST NICKEL INC.

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Table of Contents…………………………..…………………………………………..1

Project Summary……………………….…………………………………………...…2

2011 Marmora East– Exploration

Project Summary ............................................................................................................................................ 2

Introduction .................................................................................................................................................... 3

Location and Access....................................................................................................................................... 3

Geology .......................................................................................................................................................... 4

Government Geology Map Conditions........................................................................................................... 4

Work Done (Exploration Traverses and Sampling) ....................................................................................... 7

Results – Samples and Assays........................................................................................................................ 8

Health, Safety and Environment................................................................................................................... 10

QA/QC Commentary - First Nickel Procedures ........................................................................................... 10

Acknowledgements ...................................................................................................................................... 10

Conclusion.................................................................................................................................................... 10

List of Figures

Figure 1 – Plan Map with Location of Claims ............................................................................................... 3

Figure 2 – Sample Locations on Marmora East Claims. ................................................................................ 5

Figure 3 – Sample MM-246 to MM-257 and MM-275; on FNI Claim 4222719........................................... 5

Figure 4 – Sample MM-258 to MM-274 on FNI Claim 4222718. ................................................................. 6

Figure 5 – Plan Map with Topographic Data, Claims, and Traverses ............................................................ 7

Figure 6 – Marmora Claim 4222718 Topography map .................................................................................. 8

Figure 7 – Marmora Claim 4222719 Topography map .................................................................................. 8

List of Tables

Table 1 - List of Claims.................................................................................................................................. 4

Table 2 – 2011 Rock Sample GPS Points ...................................................................................................... 6

Table 3 - 2011 Assay Data- Marmora East Claims (including Blanks, Standards) ........................................ 9

Table 4 – 2011 Work Summary – Marmora East Claims............................................................................. 10

Appendices

Appendix 1 - Descriptions of samples.......................................................................................................... 11

Appendix 2 - Prospecting- Pictures, Sampling............................................................................................. 14

Appendix 3 - Assay Certificates................................................................................................................... 17

Appendix 4 - Data CD including final report ............................................................................................... 20

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Project Summary

This is a summary report for the work done on the First Nickel Inc. area known as the Marmora East claims

(three adjoining claims): SO 4222718, SO 4222719, SO 4222720 (SO, Southern Ontario) within its

Belmont Project.

Prospecting and sampling in search of nickel, copper and platinum group elements (PGE’s) on Marmora

East claims in east central Ontario took place in May 2011. The area of focus was the mafic intrusive unit

within claims 4222718 and 4222719.

A total of 28 surface grab samples were described and sent for analysis of Ni, Cu, Co, S, Au, Pt, Pd, and

Ag. A standard (MM-261, 302-8) and a blank (MM-268, Granite) were added to the samples before

shipment to SGS Laboratories. The assays did not display any significant results.

No medical aids or time lost during this time.

Future exploration should include more prospecting within the AEM anomaly that lies in the center of

claim 4222720 and prospecting along all rock contacts, sampling and potentially ground geophysics and

diamond drilling to explain the source of the AEM anomaly.

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Introduction

The Marmora claims were staked on June 20, 2007 and recorded on June 26, 2007 [SO 4222718,

SO 4222719, SO 4222720 (SO, Southern Ontario)]. Work has currently been done on two of the three

adjoining claims (4222719 and 4222720).

A team of three First Nickel employees traveled from Sudbury Ontario and lived in a rented house

in Cardiff, 17km west of Bancroft to explore the various Belmont Project properties. Two trucks, trailer

and two quads were used to access the properties.

Location and Access

Claims 4222719 and 4222720 (see Figure 1 and Table 1) are located 40km Southeast of Bancroft,

along highway 62. Proceed right on Deloro Road (going west) for 6 km. Turn right on Centre Line Road

and continue southwest for 2.5km then turn right onto Bronson Road (unpaved) going north for 2km .

Access Bronson Road which splits claim 4222720 in half. Access to the claim 4222719 is an overgrown

trail and a dirt ATV trail going northwest off of Bronson Road.

Figure 1 – Plan Map with Location of Claims

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Table 1 - List of Claims

Claim Details (SO – Southern Ontario)

Geology

The Marmora Claims are located within the Grenville Province of the Precambrian Shield. The

geological units sampled in the field were of Gabbroic composition (Mafic Intrusive) that has been intruded

into the Metasediment, Calcitic and Dolomitic Marble units (refer to Figures 2 to 4). A few Calcitic

Metasediments, Granites and Quartz samples were taken in the area as well.

Government Geology Map Conditions1

“Users should be aware that this map sheet lies adjacent to the UTM Zone 17/Zone 18 boundary.

To ensure continuity with existing maps of this series to the west, this map is published using a Zone 17

UTM grid, even though most of the area covered by this map lies within UTM Zone 18. Users need to take

this into account when making comparisons between the UTM grid on this sheet and Ontario Basic

Mapping (OBM) sheets covering this area; when using Global Positioning System (GPS) instruments to

determine location, if position is expressed in UTM co-ordinates; and when plotting data on this map from

literature sources where location is expressed in UTM co-ordinates.”

1 Sources of Information, Ontario Ministry of Northern Development, Mines and Forestry

Company Claims

(SO)

Township No. of

Units

Lots, Con

FNI 4222718 Marmora (G-1270) 4 lot 22, con 8

4222719 Marmora (G-1270) 8 lots 26 and 27, con 9

4222720 Marmora (G-1270) 4 E1/2 Lot 25 Con 9, W`1/2 Lot 25 Con 10

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2011 Field Sample locations overlain on surface geology plan2

(Geology in UTM Zone 18 NAD 83)

Figure 2 – Sample Locations on Marmora East Claims.

Figure 3 – Sample MM-246 to MM-257 and MM-275; on FNI Claim 4222719.

2 Lumbers, S.B. and Vertolli, V.M. 2000. Precambrian geology, Bannockburn area; Ontario Geological

Survey, Preliminary Map

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Figure 4 – Sample MM-258 to MM-274 on FNI Claim 4222718.

Table 2 – 2011 Rock Sample GPS Points

Easting Northing Sample

UTM NAD 83 (Zone 18) Elevation (m)

MM-246 290332 4942334 248

MM-247 290318 4942386 253

MM-248 290327 4942346 251

MM-249 290327 4942346 251

MM-250 290078 4942279 253

MM-251 289956 4942232 248

MM-252 289923 4942197 250

MM-253 289911 4942164 250

MM-254 289917 4942161 251

MM-255 290092 4942217 251

MM-256 290030 4942302 252

MM-257 289453 4942125 259

MM-258 288978 4942787 255

MM-259 288881 4942954 258

MM-260 288687 4942953 259

MM-261 STD

MM-262 288563 4942955 272

MM-263 288433 4942894 254

MM-264 288375 4942772 259

MM-265 288487 4942650 252

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MM-266 288485 4942647 253

MM-267 288541 4942594 258

MM-268 BLANK

MM-269 288559 4942734 258

MM-270 288559 4942734 258

MM-271 288560 4942715 261

MM-272 288562 4942718 262

MM-273 288563 4942718 263

MM-274 288721 4942864 263

MM-275 289247 4942342 251

Work Done (Exploration Traverses and Sampling)

Surface sampling in May 2011 was focused on the Mafic Intrusive unit. Field work included 2

days of prospecting with a geotech and field assistant (15, 16 -May-2011), locating outcrops and taking

hand samples for further analysis. Sample locations (Table 2 above) were marked using a hand held GPS

(Garmin, Model: GPSmap 60CSx).

The surrounding outcrops were described (Appendix 1), along with 30 rock samples (including

one standard and one blank). The samples were sent to the SGS Lab in Toronto on May 17, 2011. A hand

lens, magnet and scratch knife were used in helping describe the outcrops. A Garmin was also used to

“track” our routes. Our tracks cover approximately 10km in and around our Marmora East claims

(including walking and ATV travel). Figure 5 below, is a detailed topographic map depicting the traverses

on the Marmora claims. Figure 6 and 7 are close up views of the topography of claim 4222718 and

4222719. A compass (with adjusted magnetic declination) aided us in orienting the outcrops. Two

representative pieces of the each field sample were flagged, one left on site to mark the position and one

taken back to the office, photographed, described and filed.

Figure 5 – Plan Map with Topographic Data, Claims, and Traverses

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Figure 6 – Marmora Claim 4222718 Topography map

Figure 7 – Marmora Claim 4222719 Topography map

Results – Samples and Assays

A total of 30 surface samples were sent to the SGS Lab for analysis of Ni, Cu, Co, S, Au, Pt, Pd,

and Ag. A standard (MM-261, 302-8) and a blank (MM-268, Norite), were added to the samples for

shipment on May 17, 2011. Assay results were received May 27, 2011 and results (Table 3 below) were

not significant. Rock Sample MM-246 (Melanogabbro) gave us the best return with 17ppb Palladium, 2.96

Copper and 0.4g/t Silver.

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Table 3 - 2011 Assay Data- Marmora East Claims (including Blanks, Standards)

Sample Number Au (ppb) Pt (ppb) Pd (ppb) Ni (%) Cu (%) Co (%) S (%) Ag (g/t)

MM-246 <5 <10 17 <0.01 0.04 0.01 2.96 0.4 MM-247 <5 <10 <5 <0.01 <0.01 <0.01 0.01 <0.3 MM-248 <5 <10 <5 <0.01 0.01 <0.01 0.44 <0.3 MM-249 <5 <10 <5 <0.01 <0.01 <0.01 0.02 <0.3 MM-250 <5 <10 <5 <0.01 <0.01 <0.01 0.08 <0.3 MM-251 <5 <10 <5 <0.01 <0.01 <0.01 0.03 <0.3 MM-252 <5 <10 <5 <0.01 <0.01 <0.01 <0.01 <0.3 MM-253 <5 <10 <5 <0.01 <0.01 <0.01 <0.01 <0.3 MM-254 <5 <10 <5 <0.01 <0.01 <0.01 <0.01 <0.3 MM-255 <5 <10 <5 <0.01 <0.01 <0.01 0.05 <0.3 MM-256 <5 <10 <5 <0.01 <0.01 <0.01 0.2 <0.3 MM-257 <5 <10 <5 <0.01 <0.01 <0.01 <0.01 <0.3 MM-258 <5 <10 <5 <0.01 <0.01 <0.01 <0.01 <0.3 MM-259 <5 <10 <5 <0.01 <0.01 <0.01 <0.01 <0.3 MM-260 <5 <10 <5 <0.01 <0.01 <0.01 0.17 <0.3 MM-261 29 10 <5 1.15 <0.01 0.05 0.08 <0.3 MM-262 <5 <10 <5 <0.01 <0.01 <0.01 0.03 <0.3 MM-263 <5 <10 <5 <0.01 <0.01 <0.01 <0.01 <0.3 MM-264 <5 <10 <5 <0.01 <0.01 <0.01 <0.01 <0.3 MM-265 <5 <10 <5 <0.01 <0.01 <0.01 0.03 <0.3 MM-266 <5 <10 <5 <0.01 <0.01 <0.01 <0.01 <0.3 MM-267 <5 <10 <5 <0.01 <0.01 <0.01 0.01 <0.3 MM-268 <5 <10 <5 <0.01 <0.01 <0.01 0.07 <0.3 MM-269 5 <10 <5 <0.01 <0.01 <0.01 <0.01 <0.3 MM-270 <5 <10 <5 <0.01 <0.01 <0.01 0.01 <0.3 MM-271 <5 <10 <5 <0.01 <0.01 <0.01 <0.01 <0.3 MM-272 <5 <10 <5 <0.01 <0.01 <0.01 <0.01 <0.3 MM-273 <5 <10 <5 <0.01 <0.01 <0.01 0.05 <0.3 MM-274 <5 <10 <5 <0.01 <0.01 <0.01 0.08 <0.3 MM-275 <5 <10 <5 <0.01 <0.01 <0.01 0.03 <0.3

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Table 4 – 2011 Work Summary – Marmora East Claims

Dates Type of Work Hours Samples Taken

May 11 Travel to Field 24

15-16 May 2011 Surface Sampling 40 MM-246 to MM-275

May 16 - 17, 2011 Descriptions and sorting for lab analysis 4

May 2011 Pictures, filing 8

May - June, 2011

Writing Report and filing assessment

Assay, QAQC, additions to report

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Health, Safety and Environment

No accidents or lost time injuries occurred during the time spent working on the Marmora East

claims in May 2011, nor in the field office or core shack.

QA/QC Commentary - First Nickel Procedures

Quality Assurance and Quality Control (QA/QC) protocols were used for the Marmora Property,

similar to other Belmont project properties. A summary of our QA/QC procedures include the following:

Rock types with descriptions, structure, sulphide estimates are logged directly into our digital computer

database at the secure FNI Exploration core shed facility. Photographs are stored on our network. All

representative field samples and their pulps and rejects have been kept in locked storage. A representative

sample, approx. 10cm by 10cm is taken from each sample bag and kept on site (Bancroft core shed

facility). Each set of samples has a blank and certified nickel standard. Samples are sent to the SGS Labs

preparation facility in Toronto, where they are dried, crushed to 75% passing 2mm, split to 250g and

pulverized to 85% passing 75 microns, and specific gravity is measured by a pycnometer. One extra

selected pulp per lot is retained for future testing at a second independent laboratory. The lab does analysis

of nickel, copper, cobalt (sodium peroxide fusion with ICP-OES finish), gold, platinum, palladium (fire

assay lead collection with ICP-OES finish), sulphur (Leco), and silver (aqua regia digestion, AAS). Results

are received digitally including final certificates, and are compared to expected visual estimates. Standards

and blanks are checked for their expected results.

Surface location hand held GPS surveying was completed for surface sample locations.

Acknowledgements

Thanks to First Nickel Exploration Team members— Filomena Benevides Johnson and Pierre

Lalonde core shack and geological field assistants;; Shirley Peloquin — Principal Geologist for assay QA-

QC assistance, Emily Laakso — Environmental and GIS Technician and Paul Davis — V.P. Expl., for their

comments and participation in the realization of this project.

Conclusion

Additional work should be done on these claims to further understand the nature of the geology,

and mineralization in relationship to the AEM anomalies. More prospecting and sampling is needed along

all rock contacts, especially the Mafic Intrusive unit to the west of the claims and potentially ground

geophysics and diamond drilling.

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Appendix 1 - Descriptions of samples

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Appendix 1: Descriptions of samples

Sample Description

MM-246 Melanogabbro - Mg, dk gry, strongly oxidized o/c, 2-6% veinlets or ffs w PoPy, wkly mag.

MM-247 Diorite - Mg, gry, non mag, no vis sulf.

MM-248 Melanogabbro - Mg, dk gry, wkly mag, <1% diss sulf, mod oxidized areas, possible ct with Diorite (sample MM-249).

MM-249 Diorite - Mg, gry, non mag, mod oxidized areas, no vis sulf.

MM-250 Gabbro - Cg, med dk gry, very wkly mag, tr sulf.

MM-251 Granodiorite - Mg, light pinkish gry, occ qtz frags, non mag, no vis sulf.

MM-252 MSED - Fg, light gry, foliated, non mag, no vis sulf, layered wk epidote? ffs.

MM-253 Qtz Vein - White, non mag, no visual sulf, wk red ffs, 40cm wide, possibly wider if uncovered, 6ft long visible, pie shaped, could not uncover more because of tree roots, striking W 274 degrees.

MM-254 Granodiorite - Mg, gry, non mag, no vis sulf, directly east of qtz vein from same o/c, no ct visible.

MM-255 Gabbro - Mg-cg, med dk gry, abund in amph, no vis sulf, non mag, mod oxidized areas.

MM-256 Gabbro - Mg-cg, med dk gry, fsp altn (pink in colour), non mag, no vis sulf, mod oxidized. Waterbody to NW of o/c.

MM-257 Gabbro - Mg, med dk gry, no vis sulf, non mag.

MM-258 Carb MSED - Fg, felsic, gry, non mag, no vis sulf, wkly oxidized areas.

MM-259 Carb MSED - As in MM-258 but with wk qtz-fsp ffs.

MM-260 Diorite - Cg, med gry, wkly mag, 2% silver metallic mineral, <0.5% Py, possibly Po?

MM-261 STD 302-8

MM-262 Mafic Metavolcanic - Fg-mg, dk gry, abundant in amph, wkl mag, no vis sulf, large o/c.

MM-263 Granite - Mg, gry, foliated, wkly mag, no vis sulf.

MM-264 Gabbro - Mg-cg, med gry, non mag, no vis sulf.

MM-265 Gneissic Gabbro - Mg-fg, mod mag, no vis sulf, very well foliated.

MM-266 Qtz Vein - White, slight rust staining, non mag, no vis sulf, running SW/NE, up to 15 cm wide.

MM-267 Diorite - Cg, med gry, mod mag, <1% Po blebs, mod oxidized areas.

MM-268 Blank 2

MM-269 Qtz Vein - running E/W, from 2-7cm wide, white to pinkish red rust staining, non mag, no vis sulf.

MM-270 Granite - Mg, light gry, wkly mag, no vis sulf.

MM-271 Granite – Pinkish white, well foliated, non-mag, no vis sulf, mod red altn, qtz rich.

MM-272 Qtz - Large block, white, no vis sulf, non mag, large vein running SW/NE, 50cm wide (visible). Swamp to SW.

MM-273 Qtz Vein - White, non-mag, tr Py cubes.

MM-274 Gabbro - Mg, med dk gry, wkly mag, no vis sulf.

MM-275 Granite - Mg, gry, non mag, no vis sulf, 1.5cm fsp-qtz pinkish ff, some k-spar altn.

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Short Form Meaning

Vfg Very fine grained Wk Weak

Fg Fine grained Wkly Weakly

Mg Medium grained Volc Volcanic

Cg Coarse grained Occ Occasional

Vcg Very coarse grained O/c Outcrop

Dk Dark Ct Contact

Vdk Very dark W With

Gry Grey Frag Fragment

Grn Green Abund Abundant

Mag Magnetic Vis Visible

Sulf Sulfide Diss Disseminated

Ffs Fracture Fills MV Mafic Volcanic

Fsp Feldspar geny Genuinely

PYXT Pyroxenite

Qtz Quartz

Py Pyrite

Po Pyrrhotite

MSED Metasediment

MBL Marble

Tr Trace

Xls Crystallization

Carb Carbonate

FV Felsic Volcanic

perv pervasive

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Appendix 2 - Prospecting- Pictures, Sampling

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Appendix 2: Prospecting- Pictures, Sampling

Marmora Twp. Claim # 4222719

Sample: MM-246, Melanogabbro. Mg, dark grey, strongly oxidized o/c, 2-6% veinlets or ffs w PoPy, weakly magnetic.

Marmora Twp. Claim # 4222719

Sample: MM-246

Outcrop.

Marmora Twp. Claim # 4222718

Sample: MM-259, Carbonate MSED. Similar to sample

MM-258 but with weak qtz-fsp ffs.

Marmora Twp. Claim #4222718

Sample: MM-259

Outcrop.

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Marmora Twp. Claim # 4222718

Sample MM-267, Diorite. Cg, medium grey, moderate

mag, <1% Po blebs, with moderately oxidized areas.

Marmora Twp. Claim # 4222718

Sample MM-267

Outcrop.

Marmora Twp. Claim # 4222718

Sample MM-273, Qtz Vein. White, non-mag, trace Py

cubes.

Marmora Twp. Claim # 4222718

Sample MM-273

Outcrop.

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Appendix 3 - Assay Certificates

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Appendix 4 - Data CD including final report