42L04NE0004 2.2534 ELBOW LAKE 010

GEOLOGICAL REPORT - ONEX SYNDICATE

PROPERTY

The property examined consists of ten contiguous mining claims TB H7788U, TB ^77885, TB 1*77893 - TB 1*77896 inclusive and TB 1+77902 - TB ^77905 inclusive. These claims are located in the Southwest quarter of the Area of Elbow Lake (claim map No. l^OH) . The East boundary of the claim block is approximately 2 miles West of 870^5'W. The Onex Syndicate control the 36 mining claims surrounding the 10 claim block. The claims are under extension until November 25, 1977-

ACCESS

Access to the property from Jellicoe, a village on Highway 11 was by truck west from Jellicoe to Nezah Junction and then north to the end of Highway 801 and then north on a timber haulage road for a distance of nineteen miles, then East on a haulage road for 3 miles and then north across the Onaman River for approximately 2 miles. This road ends ap proximately 1200 feet south of South boundary of 10 claim block. Access from this point was by foot along an old lumber road across a swamp.

OWNER(S)

The registered holder of the mining claims is Mr. Brian C. Asbury of 20 Rothmere Drive, Toronto, Ontario M**N IVl*.

OPTIONOR

Canadian Nickel Company Limited of Copper Cliff have optioned the ten mining claims listed above and are submitting the survey as part of the assessment work required for the claims.

WORK PERFORMED

All of the 10 claims listed above were traversed but outcrop was limited to 7 claims. No outcrop was located on TB 1+77895, TB 1*77896 and TB 1+77905. These 3 claims are partially covered by a common elder and cedarswamp.

The survey was carried out in conjunction with a magnetometer and partial electro-magnetic survey October 15-20 inclusive. The crew consisted of C. Duncan 4 W. Manson, geologists and M. Manitowabi, geophysical operator.

The magnetometer survey located several magnetic trends and subtle highs and isolated highs. All of the outcrops within the 10 claim block have been located. No evidence of any previous diamond drilling was found on the property.

- 2 -

GENERAL GEOLOGY

The claim block in general appears to "be underlain by felsic meta volcanics - mainly rhyolitic tuffs in the two northern claims and by mafic to intermediate metavolcanics mainly andesite or ando-basalt in the southern 8 claims. A plug of granodiorite occurs along the East end of the two northern claims.

It is assumed that the contact between acid and intermediate meta volcanics crosses claims TB ^77895 and TB ^77896.

PRINCIPAL ROCK TYPES

The principal rock types traversed were rhyolitic tuff, diabase, granodiorite, andesite, basalt and ultramafic.

Rhyolitic tuff is generally fine grained quartz feldspar porphyry, thinly bedded with small augen of volcanic quartz and phenocrysts of feldspar 2-3 mm in an aphanitic groundmass. This rock occurs locally as flows and may contain disseminated pyrrhotite and pyrite and may be weakly magnetic.

Granodiorite is a medium grained equigranular rock. It is light pink to light grey in colour. It is composed essentially of feldspar, hornblende and quartz but occasionally has hornblende rich zones to 10 cm wide.

Andesite is a very fine grained dark green aphanitic rock. It weathers to a greenish hue. The rocks appear to have a well developed but chaotic flow structure. No topping was observed. The andesite approaches dacite composition in some localities.

Basalt is of two varieties: (a) very fine grained groundmass, amyg daloidal, and generally good flow structure with stretched feldspathic amygdules 2-k mm and 8-12 mm. The flow structure is not useful for top determination and has a weak tectonic overprint.

(b) This variety is fine grained to medium grained, dark green horn blende feldspar, massive to weakly gneissic in appearance. Ho flow structures were observed. There are occasional blue vitreous quartz eyes which indicates a possible volcanic origin. It is possibly a metaquartz basalt.

Ultramafic isavery fine grained dark green aphanitic rock. It is massive to weakly flow banded. Weathered surfaces are brown. The rock is fractured with chlorite and serpentinite fracture filling. These fractures may be indicative of a quenched texture. The rock is moderately magnetic and microscopic sulphides - pyrite and pyrrhotite are disseminated. The total sulphides are less than 1/S.

Diabase is a medium grained slightly porphyritic dark green rock. It is essentially plagioclase and pyroxenite with lath shaped plagioclase phenocrysts. Minor accessory minerals are pyrite, pyrrhotite and magnetite to 3#.

- 3 -

Quartz veins are locally abundant but are confined to the rhyolitic tuff units.

The general strike of the rock is 075-0800 and the dip is steeply to the south. The only radical change in strike observed is in a small outcrop at 5180E andYCAON where for a short distance the strike is 0^5 0 - This is probably only a small flexure in the bedding and no importance is attached to it.

ECONOMIC GEOLOGY

No economic mineralization was observed in any of the outcrops.

D-

X

B

TB TB

4JJL8JL5 . 477884 T B "Tfl ~

l477896 14778951 477894 1477893

f fe ~!~8 ~ ~l ^"T9~ ~

477905 [477904 l 477903 | 477902

•50 0 00'30"

-5000N B.L. 090 0

ARf fl O* ELBOW LiKE (M-:404)l O C L A l M S

of MARTIN LAKt

LOCATION MAP

ONEX SYNDICATE CLAIMSTHUNDER BAV MINING DIVISION DISTRICT o* THUNDERSCALt l IN.. 40 CHAINS

42L 4W 10/77

42L04NE0004 2.2534 ELBOW LAKE 020

Magnetometer Survey Report

Area of Elbow Lake (M-l^QlQ

Thunder Bay Mining Division, Ontario

Property

Claims TB 1+7788^ and 1+77885TB 1+77893 to ^77896 inclusiveTB 1+77902 to 1+77905 inclusive

Location

This group of ten claims is situated on the southeast side of Ledingham Lake at latitude 50 0 00' and longitude 870 U8'.

Previous Work

No assessment work was recorded within, or near the above claim block, however, it is known that Mining Corporation did conduct an anomaly investigation covering A.E.M. responses in the east half of the claim group during 1963. Sulphide minerali zation was exposed in a shallow pit on the anomaly base line.

Previous geological mapping was done in the area by E.S.Moore in 1909- This geological work was followed by P. E. Hopkins in 1917, T. L. Gledhill in 1925, and by W. W. Moorhouse in 1938. The most recent mapping was completed in 1976 by P. C.Thurston, A. Andrews, and B. Asbury.

Object of Survey

The main purpose of the magnetic survey was to outline basic and ultrabasic rock types containing disseminated magnetic minerals such as magnetite and/or pyrrhotite, and also to locate sulphide concentrations with high pyrrhotite content in areas covered with overburden.

Magnetometer Survey Procedure

The instrument used is a Scinirex MF-2 fluxgate magnetometer which measures the vertical component of the earth's magnetic field directly in gammas, positive or negative, over a range of 100,000 gammas. This hand held magnetometer requires no orientation and after coarse levelling the magnetic reading is recorded from a meter mounted on the top of the instrument.

During this particular survey the magnetic readings were taken in the 3,000 and 10,000 gamma ranges.

Magnetic diurnal drift corrections were made to pre-established base station readings at the intersections of grid lines on the base line.

- 2 -

Survey Data

Line cutting and chaining were done "by line cutting contractor Gerard Bastarache of Kirkland Lake, Ontario during the first two weeks of October, 1977-

Grid lines are spaced at ^00 foot intervals and chainage pickets occur at 100 foot distances along the grid lines. Magnetometer readings were taken at 50 footspacings.

The magnetic survey was carried out by Canadian Nickel Company personnel in the period October 15 to 20, 1977.

Supervisor in charge of this work was:

C. Duncan P.O. Box 197 Lively, Ontario

Total base line cut and chained 5,280 feetTotal grid line cut and chained ^3,5^0 feetTotal number of magnetic readings 937

Magnetic Survey Results

The contoured results of the magnetometer survey are shown on two plans on a scale of l" - 200 feet. Magnetic readings are plotted in gamma values relative to an arbitrary base station of 1700 gammas located at 50N - k6E.

A legend at the lower right corner of each sheet illustrates the various contour lines used.

Sheet #1:

In the northwest corner of claim TB ij-77885 is the eastern end of a fairly broad anomaly with a peak value of +2300 gammas above magnetic background. This anomaly probably swings southward forming a continuous anomalous zone connecting with the north-south striking anomaly running through claim TB ^77895- If this assumption is correct then this anomaly is likely caused by a diabase dike.

At the northeast corner of claim TB ^7789^ is a small elliptical anomaly of +1300 gammas intensity above background. This anomaly is characteristic of a small ultra mafic intrusive.

No other anomalies of significance occur on sheet #1.

- 3 -

Sheet #2:

A series of parallel linear magnetic anomalies strike NE-SW through claims TB ^77393, ^7789^, ^77902, 1^77903 and ^7790^. These magnetic zones are more erratic than the anomalies described on sheet l but they could also be caused by diabase dikes with narrow offshoots.

At the southeast corner of claim TB 1+77902 an anomaly is only partly outlined. Coverage is insufficient to permit a reasonable guess as to the possible source of this anomaly.

The fairly "broad +800 gamma anomaly centered in TB 1+77905 also strikes NE-SW, and maybe due to either an ultramafic intrusive rock or it could be a continuation of the assumed diabase dike striking north-south through claim TB 1+77895-

Conclusion

The magnetic survey has successfully outlined several anomalies of interest.

Recommendation

Electromagnetic survey work over select magnetic anomalies might provide a specific drill target where sulphide mineralization is likely to be encountered.

G. J. Gereghty/mm November l6, 1977

Ontario

Ministry of Natural Resources

GEOPHYSICAL - GEOLOGICAL - GEOCHEMICAL TECHNICAL DATA STATEMENT

File.

TO BE ATTACHED AS AN APPENDFACTS SHOWN HERE NEED NOT

TECHNICAL REPORT MUST CONTAIN INT142L04NE0004 2.2534 ELBOW LAKE

Type of Survey{s) Magnetometer and GeologicalTownship or Area Area of Elbow Lake Claim Holder(s) Brian C, Asbury y

___20 Rothmere Drive, Toronto t Ontario

Survey Company Canadian Nickel Company Limited___^^

Author of Report G. J. Gereghty and G. Duncan c/o CanadianAddress of Author Mckel Company, Ltd., Copper Cliff, Ont.

October l, 1977 - November 18, 1977Covering Dates of Survey.

Total Miles of Line Cut 9,25

(linecutting to office)

SPECIAL PROVISIONS CREDITS REQUESTED

ENTER 40 days (includes line cutting) for first survey.

ENTER 20 days for each additional survey using same grid.

Geophysical

Electromagnetic.

DAYS per claim

1 1*0 Radiometric.

-Other____20

Oenrrirmiral

AIRBORNE CREDITS (Special provision credits do not apply to airborne surveys)

Magnetometer Electromagnetic Radiometric(enter days per

DATE: November l8 T 19T*gtnMATlTRF. : jAuthor of Report or Agcnfl

Res. Geol.. Qiialifiratinns

Previous Surveys File No. Type Date Claim Holder

300

MINING CLAIMS TRAVERSED List numerically

TB""(prefix)'

TB

TB

TB

TB

,/

TB

TB

.TB...

TBmt

TB

1*77885

U77893

1*7789**

S 1*77902

* 1*77903

GEOPHYSICAL TECHNICAL DATA

GROUND Sl'RVKVS II moir t h. m mn- Mirvcy, specify data for each type of survey

Number of Stations

Station interval

Profile scale

Contour interval

^0 feetNumber of Readings

Line spacing

100

93?^00 feet

O

Instrument Scintrex W~2 fluxgate Magnetometer

Accuracy — Scale constant.

Diurnal correction method.

See attached brochure

See enclosed Magnetometer Survey Report for details

Each the base line vas crossed,Base Station check-in interval (hnnrs) Base Station location and value Locations are at the intersection of grid lines on the

base line. See enclosed maps for the specific value of each, location,

ZO

s ^\oiiE—1 ; CJl

Instrument

Coil configuration

Coil separation ——

Accuracy ————.

Method:

Frequency^—^—

Parameters measured

CH Fixed transmitter d Shoot back CD In line Id Parallel line

- (specify V.L.F. station)

OilOi

Instrument

Scale constant.

Corrections made.

Base station value and location .

Elevation accuracy.

N2

Q ay D

Instrument ^^—.^——..^——

Method l l Time Domain

Parameters — On time ^-^

- Off time ——

— Delay time ^.^

— Integration time.

Power.

Electrode array —

Electrode spacing .

Type of electrode

D Frequency Domain

Frequency -————

Range ___^__

jw'M-H tfl^'T - ,. i •;.D 3df. ti J' ' '

.7", 1420302— _ -l, v — _ J. _ —477868 4T7B67t4T7866

477873 |477B76 1477875 !477874 | J M

4R0016 i 460055 460f*B477B87|477B^6 4/788S |477M4 477883^1^77882 14778W '477^6^TB

r—K-- 460007 j 460008

193'477892 jl77891^ |477890J 47788j*

TB tTB

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rTS 'TB tTB |TB ITB j TQ "T TQ ^ ^ ^Q t^1 ' ' i l . (386165 i386IB2 1386181 1386179 ! 38.C, 177

u TB 5.b6lj72 ('-386 175

i 111 it^^Ali i i '446 A'a" 44*157 "^T 446156 1^188156 L MSIBBJ ; 4277 l'7 14277l fl "THfilS.? l3B6:T5B

li

AREA OF 2 - 3.

ELBOW LAKENIPIGON PROVINCIAL FOREST

DISTRICT OFTHUNDER BAY

-THUNDER BAYMINING DIVISION

SCALE: 1-INCH ^ 4Oj '

LEGEND

F^TEMTEO LANDCROWN LAND SALELEASESLOCATED LAND .* , ;LICENSE OF OCCUPATIONMINING RIGHTS ONLY

SURFACE RIGHTS ONLYROADSIMPROVED ROAJDS ,KINO'S HIGHWAYSRAILWAYSPOWER LINESMARSH OR MUSKEGMINES-

v,***

2-3534 ELBOW LAKE

400 aurfoce fights reservation around

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