REPORT

ON

SAGE LAKE PROPERTY

Patricia Mining Division

District of Kenora, Ontario

for

ROMIOS ESTATES LTD

Toronto, Ontario November 22, 1996

Thomas Skimming P.Eng

53A05NW0018 2.16707 NEAWANGAN LAKE 010

TABLE OF CONTENTS

INTRODUCTION

LOCATION A ACCESS

TOPOGRAPHY A VEGETATION

GEOLOGY

MINERAL EXPLORATION HISTORY

AIRBORNE GEOPHYSICAL SURVEY

REVIEW OF RESULTS

SUMMARY, CONCLUSIONS A RECOMMENDATIONS

53A05NW00182.16707 NEAWANGAN LAKE O 1 O C

INTRODUCTION

This report reviews the results of a helicopter-borne magnetic survey carried out over the Sage Lake property by Aero Surveys Inc. of Richmond Hill, Ontario for Romios Estates Ltd., discusses the results of previous exploration work carried out in the past both by the Ontario Geological Survey as well as a number of private and public exploration and mining companies and recommends a further exploration program designed to assess the significance of a number of electromagnetic anomalies underlying the Sage Lake property that were detected in an airborne survey completed in 1985 by Aerodat Limited of Toronto.

The Sage Lake Property appears to be located on the nose of an antiform that features both a stratigraphy and a structural setting analagous to that which hosts the Musselwhite gold deposits presently under development at Opapimiskan Lake, approximately 26 kilometres to the northwest.

LOCATION A ACCESS

The property is located in the southeastern part of the North Caribou Lake greenstone belt in the Patricia Mining Division, approximately 100 kilometres north of the mining community of Pickle Lake. More specifically, the property encompasses Sage Lake, whose centre is at Latitude 52^28' North and Longitude 89058' West.

The Sage Lake property consists of a single claim block which is identified on Claim Sheet G-2044 (Forester Lake) as PA 1209521. Sage Lake can be seen on 1:50,000 scale NTS Sheet 53/A5 and is shown on Figure l accompanying thisreport.

Sage Lake is l ,400 metres long in an east-west direction and is accessible by float or ski-equipped aircraft from Pickle Lake. An old winter road leading from the easternmost bay in Forester Lake to Opapimiskan Lake passes along

LOCATIONOF

SAGE LAKE PROPERTY

^- 5 820000mN ?58200 O OmN -cT'-vO

Figure l - LOCATION MAPSage Lake

NTS 53B & 5 3A - scale 1:250,000

the north shore of Sage Lake and provides an alternate access route, especially during the winter months.

TOPOGRAPHY A VEGETATION

Essentially, the property is covered by the waters of Sage Lake which lies within the great northern boreal forest; however, extensive muskeg wetlands and open swamps cover most of the area in the vicinity of Sage Lake. Topographic relief is low and the land, for the most part, is poorly drained. Where present, the forest consists principally of black spruce, tamarack and balsam.

The climate of the area is classed as polar continental, which is characterized by prolonged winters with several months per year of sub-zero temperatures and moderate to heavy snow cover. The summer months, May through September, are temperate and daily temperatures rarely exceed 25 C. Rainfall is moderate and averages a collective 120 cm during the entire summer.

GEOLOGY

The Sage Lake Property occurs within the Sachigo Subprovince of the Superior Province of the Precambrian Shield. Inasmuch as the property is largely underlain by water and is in an area that is dominated by muskeg and swamp, the geology of the property is largely extrapolated from the mapping carried out by F.W.Breaks et al in 1986 and an interpretation of the airborne magnetic data from the survey by Aerodat Limited in 1985 and more recently from the helicopter-borne, aeromagnetic survey completed for Romios Estates Ltd by Aero Surveys Inc in 1996.

In general, the area is dominated by a differentiated sequence of intermediate and mafic metavolcanic rocks with some intercalated felsic units that are part of the south rim metavolcanics of the North Caribou Lake greenstone belt. The Sage Lake property lies on the nose of a complexly folded, anticlinal structure consisting mainly of amphibolites and massive andesitic lava flows that contain sulphide-bearing iron formations that are known to be gold-bearing in the vicinity of the property. Bedrock exposures of iron formations are rare but their presence is evident from the strong, magnetic anomalies recorded in ihe

Aerodat airborne magnetic survey flown in 1985. Several low profile outcrops of chert-magnetite iron formation and evidence of shearing along the western shoreline of Sage Lake were mapped by F.W.Breaks and assistants in 1986. It is in this same area that Rio Tinto Canadian Ltd are reported to have drilled 5 shallow holes which encountered gold values ranging from .06 to .14 oz/ton in a shear zone.

MINERAL EXPLORATION HISTORY

In a report dated September 20, 1994 titled "Forester Lake Gold Prospect, North Caribou Lake Greenstone Belt", Edward D. Frey, Consulting Geologist reviewed the exploration history of the Forester Lake-Sage Lake area and is repeated verbatin herewith:

"In 1941, prospecting by the Hooker Syndicate reported a gold-bearing quartz vein in sheared mafic metavolcanics one kilometre east of Sage Lake that assayed 5.1 and 5.3 oz. gold l ton. Later, prospecting by Esso Mineral Canada reported arsenopyrite-pyrite-chalcopyrite-galena bearing quartz veins within and adjacent to feldspar porphyry dikes in the same area. (Figs. 3 & 5; Hooker Syndicate, 1941; Esso Minerals Canada, 1987)

In 1961-1962, Inco Ltd., did airborne and ground electromagnetic surveys of the Forester Lake and Sage Lake areas. They continued with a drilling program in both areas. At the west end of the Romios Estates Ltd., property, noth of the west bay of Forester Lake, eight drill holes, total length 1,429 ft, intersected disseminated to massive (short widths) pyrite, pyrrhotite, chalcopyrite and arsenopyrite (Figs. 3 &S; Inco Ltd., 1962). No assays were reported.

East (300m) of the Sage Lake claim, Inco Ltd., drilled three holes in chert- magnetite iron formation and mafic flows that yielded gold assays of 0.13 oz./ton and 0.91 oz./ton over 2.6 ft. and 2.2 ft. core lengths, respectively (Figs. 3 8c 5 ; Inco Ltd., 1962).

In 1981-1982, Inco Ltd., renewed the drilling program north and east of Sage Lake after additional geophysical surveys and mapping. They intersected pyrrhotite-bearing quartz veins in mafic metavolcanics and minor sulphides in deformed iron formation, 25 drill holes, 3254 m total length. (Inco Ltd., 1982).

Rio Tinto Canadian Exploration Ltd., (1962) conducted airborne and ground magnetometer surveys, geological mapping, trenching, and two diamond drill holes. The survey identified 14 EM conductive zones in the west half of the Romios Estates Ltd., claims. Only two drill holes are reported, one yielding gold assays of 0.02 oz./ton in a twelve feet long intersection of 74 ft. of fragmental chlorite + biotite mafic schist containing disseminated to massive pyrrhotite and minor chalcopyrite. The second drill hole yielded 0.01 oz. gold /ton in l ft. and 3 ft. intersections within 22 ft of siliceous iron formation and mafic metavolcanics.

Rio Tinto Canadian Ltd. (1962) also drilled five holes at the west end of the Sage Lake claim and reported 0.06 - 0.14 oz. gold/ton from a shear zone.

In 1984, Geocanex Ltd., conducted a ground geophysical survey for 581356 Ontario Ltd. on a claim block that covers the west half of the Romios Estates Ltd. property. East trending magnetic high zones in the west part of the survey were interpreted as ultramafic flows and sills. A single magnetic high zone parallel to the north boundary (iron formation on OGS Map P.3081; Figs. 3 8i 4; Breaks, 1987) was interpreted as a mafic sill.

Numerous electromagnetic conductors also were identified and twenty of them were recommended for further investigation; three of them are on the property (Fig 5). The complete or partial coincidence of many of the conductor zones with magnetic highs was interpreted as pyrrhotite, stratabound or within shear zones. (Geocanex Ltd., 1984)

Aerodat Limited flew a helicopter electromagnetic and magnetic survey of the North Caribou Lake greenstone belt in 1985. The survey included the property (Fig. 4; OGS, 1985). This airborne survey mirrors the results of the Geocanex survey of the west half of the property and outlines the potential fold complexity of the east central part of the claims, noted in the previous section.

In 1987-1988, Esso Minerals Canada (1987; 1988a.fcb) conducted a major exploration program on a large claim block adjacent and north of the property. They tested several geological and geophysical targets with 14 drill holes, totalling 1,953 meters in length. They identified abundant disseminated pyrrhotite within garnet-hornblende-quartz-magnetite-grunerite iron formation,

similar to the gold host rock of the Musselwhite deposits. The iron formations assayed north of the Forester Lake did not contain gold. The drilling did intersect 1,667 ppb (0.04 oz. gold/ton) in 2.12 m , of tremolite-actinolite-biotite schistose metasedimentary rocks containing disseminated pyrrhotite. Mafic intrusive rocks assayed up to 300 ppb gold. A 24 m drill section of sphalerite- bearing quartz-magnetite-garnet-hornblende iron formation contained Wo to 207o pyrrhotite and ^ 07o sphalerite and averaged 812 ppm zinc, and 1,616 ppm zinc over 9.14 m.

AIRBORNE GEOPHYSICAL SURVEY

A high resolution, helicopter-borne, magnetic survey was carried out over the Sage Lake property (Claim Block PA 1209521) using a Scintrex CS-2 Cesium Vapour Magnetometer, by Aero Surveys Inc., of Richmond Hill, Ontario. A report on this survey prepared by Aero Surveys Inc., dated March 28, 1996 accompanying this report, details the survey procedures, the aircraft and equipment used in the survey as well as the methods employed in processing the raw data and the formats used in the presentation of the results.

REVIEW OF RESULTS

The helicopter-borne airborne magnetic survey carried out by Aero Surveys Inc., for Romios Estates Ltd., illustrated that the Sage Lake Property is located on the nose of anticlinal fold, consistent with the interpretation of the geophysical data generated by Aerodat Limited in 1985.

A number of strong, positive magnetic responses were recorded just outside the Sage Lake Property boundary and appear to have a masking effect on the weaker magnetic anomalies that trend across the Sage Lake Property that are evident in the Aerodat survey.

Since only an airborne magnetic survey was carried out over the property, the conductors recorded in the Aerodat Survey that appear to underlie the Sage Lake property were not confirmed; however, there is sufficient geophysical and geological evidence to believe that the conductors are real and do exist.

The results of the airborne magnetic survey carried out by Aero Surveys Inc are shown on Figure 2 (Total Field Magnetics) accompanying this report. The outline of the Sage Lake Property is shown on this same map.

SUMMARY, CONCLUSIONS A RECOMMENDATIONS

The airborne electromagnetic and total intensity magnetic surveys carried out by Aerodat Limited in 1985 recorded a high incidence of conductor intercepts in the vicinity of the Sage Lake Property and revealed evidence of a complex, tightly folded anticlinal structure in the same area. In some instances, the conductors exhibit a direct correlation to strong magnetic anomalies which appear to reflect underlying banded iron formations but in other cases, the conductors flank the iron formations and appear to have little or no magnetic correlation. A cluster of such conductor intercepts underlie the eastern part of the Sage Lake claim block.

Inasmuch as the Sage Lake Property is adjacent to areas of anomalous, and in some instances, significant gold mineralization associated with sulphide facies within a banded iron formation, further exploration on the property is warranted, especially since the results from the Aerodat Survey suggest that the Sage Lake Property is underlain by a weakly conductive horizon that appears to be gold-bearing immediately east of the Property. Further exploration should consist of both ground magnetic (total field) and electromagnetic (horizontal loop) surveys to be followed by diamond drilling if warranted after the proposed ground geophysical surveys are completed and the results analyzed. In addition, an induced polarization survey should be considered as a means of detecting areas of sulphide mineralization in the iron formation domain that could not be detected using the HLEM system.

Since the property is essentially covered by Sage Lake which lies within a muskeg terrain, the proposed exploration can only effectively be carried out during the winter months. It is evident the property lies at the nose of a complex anticlinal fold where the assemblage of volcanic rock and the associated banded iron formations have been severely deformed. For this reason, a proper control grid orientation is essential to the generation of meaningful results from the geophysical surveys. Ultimately, more than a single grid may be necessary. The mapping by F.W.Breaks et al and the results

of the Aerodat Survey suggest both the iron formation and the conductors trend in a northeasterly direction across the Sage Lake property, but this may be more apparent than real. Certainly, there is a suggestion in the Aerodat geophysical data that a tight secondary fold underlies the eastern portion of the property that appears to have a north-south fold axis.

Evidence of both gold and base metal mineralization has been reported along the western edge of the Sage Lake property and there are reported occurrences of quartz veins and shearing along the east shore of Sage Lake. For this reason, the shoreline area of Sage Lake, where there appears to be some low profile outcrops, should be carefully prospected during the summer months and all shear zones and areas of sulphide mineralization should be stripped and sampled for both gold and base metals.

Thomas Skimming, P.Eng.

Toronto. Ontario, Canada September 22, 1996

THOMAS SKIMMING & ASSOCIATES LIMITED11 Camelot Court

North York, Ontario, CanadaM3B 2N4

Invoice No. 96-102

In account with.

ROMIOS ESTATES LTD

For professional services of Thomas Skimming & Associates Limited which include, but are not limited to the following:

o Complete review of all the technical data, including the results of airborne geophysical surveys and all assessment files relating to the Sage Lake Area, Patricia Mining Division, Ontario

o Preparation of a report on the results of a helicopter-borne, airborne magnetic survey carried out by Aero Surveys Inc., of Richmond Hill, Ontario for assessment purposes

o Discussions with Tom Drivas of Romios Estates Ltd relating to the history of the exploration work carried out in the Sage Lake and Forester Lake areas.

FEE: 3 days @ S495 per day....... S l.485.00

Toronto, Ontario November 22, 1996

REPORT ON A HELICOPTER-BORNE MAGNETIC SURVEY

2. 1 6 707

RECEIVED

JUL 3 O 1996

MINING LANDS BRANCH

Sage LakeOpapimiskan Lake Area, Patricia Mining Division,

Northwestern Ontario

for

Romios Estates Ltd.147 Oak wood Ave.

Toronto, OnL, M6E 2T7Tel: (416) 653-1162 Fax: (416) 653-1176

Project 9608

March, 1996

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C- '.r

CD

,i o o

SCD

0-3

53A05NW0018 2.16707 NEAWANGAN LAKE 020

TABLE OF CONTENTS

1. INTRODUCTION

2. SURVEY AREAS

3. SURVEY SPECIFICATIONS AND PROCEDURES

4. AIRCRAFT AND EQUIPMENT4. l Aircraft4.2 Magnetometer4.3 Ancillary Systems

5. PERSONNEL

6. DELIVERABLES

7. DATA PROCESSING AND PRESENTATION7. l Base Map7.2 Flight Path Map7.3 Magnetic Data

8. CONCLUSIONS

Figures

Figures 1:

Appendices

Location map

l

l

l

3334

5

5

6667

53A05NW0018 2.16707 NEAWANGAN LAKE 020C

MAPS

The results of the survey are presented in a series of black line and colour maps at a scale of l :5,000. There are a total two paper plates for the block described in this report.

The blackline maps contains skeletal topographic features derived from local l :50,000 scale topographic maps.

Map products are as follows:

* Plate l. Total Magnetic Field Contours (colour version) on paper* Plate l b. Total Magnetic Field Contours (blackline version) on polyester film' Plate 2. Vertical Magnetic Gradient Contours (colour version) on paper* Plate 2b. Vertical Magnetic Gradient Contours (blackline version) on polyester film

All the maps show the flight path. Colour contour maps show colour fill plus superimposed line contours.

REPORT ON HELICOPTER-BORNE MAGNETIC SURVEYSNORTH CARIBOU LAKE AREA, NORTHWESTERN ONTARIO

1. INTRODUCTION

This report describes helicopter-borne geophysical surveys carried out on behalf of Romios Estates Ltd., by Aero Surveys Inc., under an agreement dated February 24, 1996. The principal geophysical sensor consisted of a high sensitivity cesium vapour magnetometer. Ancillary equipment included a OPS navigation system with OPS base station, radar altimeter, and a base station magnetometer.

A single claim block, referred to as Sage Lake, was surveyed. The survey area is located in the Opapimiskan Lake area of the Patricia Mining Division, Northwestern Ontario. The areal extent of the block is 1.43 km2. The total line kilometres (combined) flown (including tie lines) was 35.4 km (32.5 km traverse lines plus 2.9 km tie line).

This logistical report describes the survey, the data processing, and the presentation.

2. SURVEY AREAS

The survey area is shown in figure l. The block may be found on l :50,000 scale NTS sheets53 A/5. The corner co-ordinates of the block in UTM (NAD27-Zone 15) easting and northing areas follows:

Sage Lake -* 705,700E - 5,816, l DON 705,700E - 5,817,200N* 707,OOOE-5,817,200N 707,OOOE - 5,816,100N

Topographic relief is low and the land is poorly drained. The area is dissected by numerous ponds and streams. Large swamps are ubiquitous. Pickle Lake, the principal town in the area for facilities, is found at latitude Sl^STSf and longitude 900 10'W. Forester Lake lies about 110 km north of Pickle Lake.

3. SURVEY SPECIFICATIONS AND PROCEDURES

The survey specifications are summarised in the following table:

LINE SURVEYAREA SPACING LINE TIELINES FLIGHT DATES FLOWN

AREA NAME_____(km2) (m) (km) (km) DIRECTION (1996)Sage Lake 1.4 50.0 32.5 2.9 N-S Feb 29

Aero Surveys Inc. - Report on an Airborne Geophysical Survey page l

5820000mN -a 5820000inN .-i/ c ' - 1 ' ',j - - ^

- -690000

MXv-fe ""^' ' .-"r' '•"•' '^- --' r'' J \ ,9: "/V j^-.

i ' '-' ' i i l -^ - r'- --I' y't--",) ~s—~"^,J-"r'^ . .- A;V"i - 4^' a 'J :, : ,." ' ^^~x -r". /'

O.OOOmE ' '^^E^y

Figure l - LOCATION MAPSage Lake

NTS 53B SL 53A - scale l :250,000

Aero Surveys Inc. - Report on an Airborne Geophysical Survey page 2

Nominal Mag sensor terrain clearance was 100 ft. (bird height above ground, i.e. helicopter is maintained 175 ft above ground). Nominal survey speed was 120 knots/hr. Scan rates for data acquisition was 0.1 second for the magnetometer and 1.0 second for OPS location and altimeter. This translates to a geophysical reading about every 4.5 metres along flight track.

Navigation was assisted by a GPS receiver and data acquisition system which reports GPS co-ordinates as WGS-84 latitude/longitude and directs the pilot over a pre-programmed survey grid. The x-y-z position of the aircraft, as reported by the GPS, is recorded along with terrain clearance, as reported by the radar altimeter, at one second intervals.

A combination magnetometer and GPS base station was set up at the base camp in Pickle Lake. The base station was used to monitor and record the diurnal magnetic variation. In the event of a magnetic storm the survey crew was forewarned and flying postponed until conditions improved. The GPS base station records static GPS positions for later differential correction of the airborne record.

The operator maintained a detailed flight log during the survey noting the times of the flight as well as any unusual geophysical or topographic feature.

On return of the aircrew to the base camp the survey data was transferred to a portable hard drive (PCMCIA) and downloaded to the data processing work station. In-field processing included differential correction of the GPS. The geophysical data and the corrected flight path were sent, via internet, to the main processing centre at the Aero Surveys office in Richmond Hill. Survey lines which showed excessive deviation after differential correction were reflown.

4. AIRCRAFT AND EQUIPMENT

4.1 Aircraft

A McDonnell Douglas 520N "Notar" helicopter - registration C-FPRX - owned and operated by Heli-Max Limited was used for the survey. Installation of the geophysical and ancillary equipment was carried out by Aero Surveys at the airport in Pickle Lake, Ont. The survey aircraft was flown at a nominal terrain clearance of 175 ft.

4.2 Magnetometer

The magnetometer employed a Scintrex CS-2 cesium vapour, optically pumped magnetometer sensor mounted in dedicated bird towed 75 ft below the helicopter. The sensitivity of the magnetometer is 0.001 nanoTesla at a 0.2 second sampling rate.

Aero Surveys Inc. - Report on an Airborne Geophysical Survey page 3

4.3 Ancillary Systems

Magnetometer and GPS Base Station

An integrated GPS and magnetometer base station was set up at the base of operations to record diurnal variations of the earth's magnetic field. GPS antenna and magnetometer sensor were linked to a laptop computer with a docking station and appropriate processor cards.

The magnetometer sensor was a Scintrex CS-2 mounted on a tripod away from potential noise sources. The clock of the base station was synchronised with GPS time in order to allow correlation with the airborne data. Digital recording resolution was 0.1 nT. The sample rate was once per second. A continuously updated profile plot of the base station values was presented on the base station screen.

The GPS base station employed a Novatel GPS card with external antenna. The static location of the antenna was recorded at one second intervals.

Radar Altimeter

A Terra TRA 3500/TRI 30 radar altimeter was used to record terrain clearance. The antenna was mounted beneath the bubble of the helicopter cockpit.

GPS Navigation System

The navigation system consisted of a Picodas PNAV navigation system comprising a PC based acquisition system, navigate0 software, a deviation indicator in front of the aircraft pilot to direct the flight, a full screen display with controls in front of the operator, a Novatel GPS receiver card mounted in the PNAV data acquisition console, and a Novatel GPS antenna mounted on the helicopter tail assembly.

Survey co-ordinates are set-up prior to survey and the information is fed into the airborne navigation system. The co-ordinate system employed in the survey design and digital recording is WGS-84 latitude and longitude. The GPS positional data is recorded at one second intervals and used with the base station data to calculate differentially corrected locations.

Aero Surveys Inc. - Report on an Airborne Geophysical Survey page 4

Digital Acquisition System

A PDAS 1000 data acquisition system collected and recorded the digital survey data on an internal hard disk drive. Data is displayed on an LCD screen as traces to allow the operator to monitor the integrity of the system. Contents and update rates were as follows:

DATA TYPE

Magnetometer

Position

Radar Altimeter

OPS Clock Time

System Clock Time

SAMPLING

0.1 sec

1.0 sec

0.1 sec

0.1 sec

0.1 sec

RESOLUTION

0.001 nT

0.1 m

1ft

5. PERSONNEL

The following Aero Surveys personnel were involved in the project

FieldParty Chief/Data Processor: Keith Hall Operator: Barry Levy

OfficeData Processing: Andrei Bagrianski, Alessandro Colla Reporting: Neil Fiset

The survey pilot, Francois Pinard, was employed directly by the helicopter operator - Heli-Max Limited. Overall management of the survey was carried out from the Toronto offices of Aero Surveys by Tim Bodger, President.

6. DELIVERABLES

The survey is described in a report which is provided in two copies. Folded paper copies of the colour maps are bound with the report. The maps on film base are rolled. The maps were produced at a scale of l :5,000. The blackline contours (plates l b *fe 2b) were plotted on polyester film; the colour versions (plates l & 2) were plotted on paper only.

The maps show a skeletal topographic base digitised from a scanned 1:50,000 National Topographic Series (NTS) map. The basic coordinate/projection system used is Universal Transverse Mercator. For reference the NAD27 latitude and longitude are also noted on the maps. All the maps show the flight path trace with time reference fiducials marked at an appropriate interval.

Aero Surveys Inc. - Report on an Airborne Geophysical Survey page 5

The following table describes the map products accompanying the report:

PLATE NO.________________DESCRIPTION________________

l Total Field Magnetics contours (colour version)

1 b Total Field Magnetics contours (blackline version)

2 1st Vertical Derivative contours (colour version)

2b l st Vertical Derivative contours (blackline version)

In addition to the plan maps attached to the report is a bound booklet containing the geophysical data in pseudo-analogue chart form on a line by line basis. The fields and nominal scales are described below:

CHART FIELD VERTICAL SCALE

Total Field Magnetics - fine_______l cm - 200 nT^^^ Total Field Magnetics - coarse_____l cm - 2000 nT

Altimeter ^-^ -l cn^ 100ft

The corrected digital data is archived on floppy diskette(s) in Geosoft XYZ format. In addition the gridded data and the magnetometer base station data is provided digitally. A description of the file formats is delivered with the digital data.

7. DATA PROCESSING AND PRESENTATION

7.1 Base Map

The skeletal base seen in Plate l is derived from scanning a l :50,000 topographic sheet and then vectorising the main hydrological features (rivers, lakes) using CAD overlay under AutoCAD. The map is then output as a DXF file and in turn made compatible with Geosoft by converting to a PLT format.

The basic geographic projection/coordinate system used to create all the maps is the Universal Transverse Mercator system (UTM). All the blocks fall within UTM Zone 15.

7.2 Flight Path Map

The raw flight path, as WGS 84 latitude/longitude, is differentially corrected using the base station OPS record and the University of Calgary's C3NAV software. The corrected flight path is then translated into the local UTM co-ordinate system.

Aero Surveys Inc. - Report on an Airborne Geophysical Survey page 6

The flight path is drawn using linear interpolation between x,y positions from the navigation system. Positions are updated every second and expressed as UTM eastings (x) and UTM northings (y).

The time reference fiducials are drawn on the map at appropriate intervals and are used to reference the pseudo-analogue charts to the plan map.

7.3 Magnetic Data

The aeromagnetic data were corrected for diurnal variations by adjustment using the intersections of the tie lines. No corrections for the regional reference field (IGRF) were applied. The corrected profile data were interpolated on to a 10 m grid using a bi-cubic spline technique. The grid provided the basis for threading the presented contours. The minimum contour interval is l O or 20 nT depending on the local magnetic activity.

The vertical gradient or first derivative of the magnetic field was calculated using Geosoft's MAGMAP programme. Basically the algorithm takes the Fourier transform of the spatial domain Total Field Magnetic grid and then applies a special filter and gradient operator. The frequency domain data is then returned back to the spatial domain and plotted as a colour image. It may also be contoured.

S! CONCLUSIONS

A high resolution helicopter-borne aeromagnetic survey has been completed over a survey blocks in the Opapimiskan Lake area, Patricia Mining Division, Northwestern Ontario. Areal coverage amounts to 1.4 km2 . Total survey line coverage is 35.4 line kilometres (32.5 km traverse lines plus 2.9 km tie lines). Results have been presented as colour and black line maps at a scale of 1:5,000.

Respectfully submitted,

Neil Fiset, B.Sc. Aero Surveys Inc.

March 28, 1996

Aero Surveys Inc. - Report on an Airborne Geophysical Survey page 7

Northern Development and Mines

Ontario

Report of Work Conducted After Recording Claim

Mining Act

Transaction Number

Personal information collected on this form is obtained under the authority of the Mining Act. This information will be used for correspondence Questions about this collection should be directed to the Provincial Manager, Mining Lands, Ministry of Northern Development and Mines, Fourth Floor, 159 Cedar Street. Sudbury, Ontario, P3E 6A5, telephone (705) 670-7264.

Instructions: - Please- Refer t

Record- A sepa- Technii- A sketc

2.16 707sssment work or consult the Mining

53A05NW0018 2 16707 NEAWANGAN LAKE 900 ly this form.

! Recorded Holder(s)

l Address

Mining Division

OatesWork Performed

ROMIOS ESTATES LTD.

147 OAKWOOD AVENUE, TORONTO, ONTARIO

Sioux Lookout

From: March 15, 1996

Township/Area Neawagank Lake

Client No. 300362

Telephone No.416-653-1 162

M or G Plan No.G-2140

TO: May 6, 1996

Work Performed (Check One Work Group Only)Work Group

Geotechnical Survey

Physical Work, Including Drilling

Rehabilitation

Other Authorized WorK

Assays

Assignment from Reserve

TypeHelicopter-borne magnetic survey, f v . .~ . MAGr)

RECEIVED

JUL 3 0 1996

MINING LANDS BRANCH

Total Assessment Work Claimed on the Attached Statement of Costs Stote: The Minister may reject for assessment work credit all or part of the assessment work submitted if the recorded holder cannot verify expenditures claimed in the statement of costs within 30 days of a request for verification.*'ersons and Survey Company Who Performed the Work (Give Name and Address of Author of Report)

NameAero Surveys Inc.

AddressUnit 12, 30 West Beaver Creek Road, Richmond Hill, Ontario, L4B 3K1

ittach a schedule If necessary)

unification of Beneficial Interest * See Note No. 1 on reverse sidel certify that at the time the work was performed, the claims covered in this work report were recorded in the current holder's name or held under a beneficial interest by the current recorded holder.

Recorded Holder or Agent (Signature)

ertification of Work Report1 certify (hat 1 have a personal knowledge of the facts set forth in this Work report, having performed the work or witnessed same during and/or after its completion and annexed report is true.ame and Address of Person Certifying Tom Drivas

147 Oakwood Avenue, Toronto, Ontario M6E 2T7slepone No.16-653-1 162

Date Certifijd-BytSignature) i^^-;;-: -:^.sr Office Use Only ^ ft k ' s-X~^~~~~~'' ̂ -~~-~\Total Value Cr. Recorded Date Recorded MSpin ) Recorder - ^}

1feJuu7 VlMQlTDeemed Approval Date Date \pproved 1 j *

Date Notice for Amendments Sent

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Credits you are claiming in this report may be cut back. In order to minimize the adverse effects of such deletions, please indicate from vhich claims you wish to priorize the deletion of credits. Please mark (.x) one of the following:

'VLJ Credits are to be cut back starting with the claim listed last, working backwards. Li Credits are to be cut back equally over all claims contained in this report of work. L.] Credits are to be cut back as priorized on the attached appendix.

the event that you have not specified your choice of priority, option one will be implemented.

f

e 1: Examples of beneficial Interest are unrecorded transfers, option agreements, memorandum of agreements, etc., with respect to the mining claims.

e 2: If work has been performed on patented or leased land, please complete the following:ertily that the recorded holder had a beneficial interest in the patented leased land at the time the work was performed.

SignatureDate

' M nis'ry

Dove op rid M. res

M ricieie du!;*vb f'ppement du Nors?! des mines

Statement of Costs for Assessment Credit

Etat des couts aux fins du credit devaluation

Mining Act/Loi sur les mines

Transaction Ni./N 0 de t'ansaction

:i-, -i,ii .riorn-s'.iOM ;,\j iecied ^n !rns lo r n is oO'.a'ned jnoer the authority i :''t Mining Act i/us information will De ussd lo maintain a record and:u:nr'o c'atus c' Hie rnTrig eiairri(s). Questions about Uvs collection should

M rnr:'?i.i lo :tie Prov:nclai Managsr. Minings Lands, Ministry of Northern'vt-inr.T in: nnd Minus, 4th Floo;, 159 Cedar Street, Sudbury, Ontario

3E SAI, leluphona (7C5) 670-7264.

Les rsnsalgoemenls pe'sonnels conterLS "ans la presents 'ormre scr.t facueiliis en vertu de l a Lot sur lo* mines BI ser/ront a lerw a jour un registre des concessions mmieres Adiessor loute quesiton su' la coliece da ces renseignernents au chel provincial des terrains niiniers. mimslefe du D^veioppement du Nord at des Mines, 159, rue Ceaar. 4 ? 6 tage, Sudbury (Ontario) P3E 6A5, telephone (705) 67O7264.

1. Difcct Costs/Gouts directs 2. Indirect Costs/CoQts Indlrects

TyD-3 Descnption

vv^g*6 LabourSaiaires j Maln-d'oeuvre

Field Supervision Supervision sur le terrain

Contractors | T^e 1 i cop t e r , fled Coi\3uitani's! borne mag sur\

: Urolts da I'snirepreneur '

' o', de I'OKpert- | consell ;

Supplies Used T ype Touinitures

: utlll36es i; i

i

i

TvD/jequipment Rentof jLotadon as !

Amount Montan!

ey

12,550

j l i i

Total Direct Costs Total des coGts directs

Totals Total global

*2,550

2,550. (

* * Note: VVher c'aiming Rehaoilllatlon *orn allowable as assassmant work. Pour le remboursemQrtl des tiavaux couts md tects na ! som pas admissitjle d evaluation

GO

10

Type i Description

Transportation Transport

Food and Lodging Nourrlture e' he bargemen!

Mobilization and Oemoblllutlon Mobilisation el demobilisation

Type

N/A'

REG

JUL

n dirsc! costs a r e not

de renaoiiitalior,, les sen tantque tiavajx

Amount Montan!

hi Vbj

3 0 1996

MINING LANDS BRAf

.

Sub Total of Indirect Costs Total partial des coQts Indlrects

Amount Allowable (not greater than ZO.% of Dlr Montini admissible (n'excidBnt pa* 20 4fe desTotal Valua of Assessment Oredft Vilaur tola Total o t Dlroci and Allowable d'eviluatlo ndlrscl costs) (Tolil dn ci

l Indlrtctt

act Costs) ;odts directs)

le du cnJdrt n Cm direct*

Kimlulbln

Totals Total global

:D

ICH

N/A

a&o

: Tii-- 'e;.'.;'dfd holder wli! De rgqo irec lo verify expenditures claimed in ih:s ^'stemenl of cos's within 30 days of a request lor verification. K •"'-.•i' ' :-itior s not made, the Mmistor may reject lor assessment work ?.ii i' oar jf ttie assessneni work suomirted

Note : La titulafre enregiSlrS sera tenu de v6rlfi9f ios oepenseg demandeas dans le present elat des coif.s dans les 30 jours suivant une d&ma.ice i eel effst. Si la verification n est pas offectj^a. le rnmiS'rs paul rejeier tout ou une partie aes travaux d'evaluation p(esent6s

Filing Discounts

Work filed within !\vo years of completion is claimed at 100 07o of tho .nbcve Total Value o' Assessment Crerjit-

Remlecs pour depot

1. Las travaux deposes dana les deux ans s^ivant leur achevemon! sont 100 W, dels \aleurtoiaiesLsmentiorinee du credit devaluation.

A'-jrk filed Three, four Q I f ive years after completion is claimed at c,0 r -,i of the above Total Value of Assessment Credit. See

,-J';M ol AS . -( :?nieri[ Credit Total Assessmsnr

x O 50 -

2. L.6S t'avaux dopcses tro 3, qualie au cinq ans apres leur ach6vement sont rembcursos a 50 "v^ de la vaieur :ota:e du credit devaluation susmentionn^. Voir les -Jalculs ci-dessous.

Valsur totals du credit

x 0,50 =

totaie

Certification Verifying S tatement of Costs

l h'j r ('l'v C"rt.fy:

vi c. t ths amounts 5.':r;wn nre as accurate as possible and these costs /.-ore iiir.ii".>-: whiU? conducliny assessment work on the lands shown or. t f i f; arcoMipHnyrig Report of Work form.

TOM) DRIVAS.'iw-orjpu Holder. Agenl PQiliion in Company)

t L' Mtr.t' th'S C(;rt.; ficatiOn

Attestation de I'etat des couts

J'atteste par !a presente :que les montants inrjiques suni le plus exact possible el quo ces defenses ont et6 engagees pour eftectuer les travaux d'evaluation sur les terrains indiques dans la formule oe rapport de irava.l ci-jo'nt.

authorized Et qu'a litre de. - .__.____ jo suis autonse(lilulana enrags'.ie, 'ep'Seenlant, pest* OCCjfJi? dans la conirjagn.e)

a faire cette anestation.

Signature Data

Nota : Dans cells lormule. loisqu'i 1 3"e 'Je? (. prsonnfts '.r. m a^cj:.r PS' s. i e* EU sa-:; r'e.f 1 ':

Ministry ofNorthern Developmentand Mines

January 21, 1997

Sharon Kemash Mining Recorder Queen and Fourth P.O. Box 3000 Sioux Lookout, ON P8T 1C6

Dear Sir or Madam:

Ministers du Developpement du Nord et des Mines Ontario

Geoscience Assessment Office 933 Ramsey Lake Road 6th Floor Sudbury, Ontario P3E 6B5

Telephone: Fax:

(705) 670-5853 (705) 670-5863

Submission Number: 2.16707

StatusSubject: Transaction Number(s): W9630.00057 Approval After Notice

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 gatesjD@torv05.ndm.gov.on.ca or by telephone at (705) 670-5856.

Yours sincerely,

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

Correspondence ID: 10497

Copy for: Assessment Library

Work Report Assessment Results

Submission Number: 2 .16707

Date Correspondence Sent: January 21, 1997 Assessor: Bruce Gates

Transaction First ClaimNumber Number Township(s) l A rea(s) Status Approval Date

W9630.00057 1209521 NEAWAGANK LAKE Approval After Notice January 16, 1997

Section:14 Geophysical MAG

The 45 days outlined in the Notice dated December 06, 1996 have passed.

Assessment work credit has been approved as outlined on the attached Distribution of Assessment Work Credit sheet.

We have reviewed the claim map and staker's sketch supplied by fax on December 13, 1996. The discrepency in claim location is minor. The overflight distance of. 1.0 kilometres per line is excessive. We have already allowed 400m per line as an overflight/turnaround distance(1.34 times the claim width) to account for discrepencies in claim location.

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

Mining Recorder Tom DrivasSioux Lookout, ON ROMIOS ESTATES LTD.

TORONTO, ONTARD Resident Geologist Sioux Lookout, ON

Assessment Files Library Sudbury, ON

Page: l

Correspondence ID: 10497

Distribution of Assessment Work Credit

The following credit distribution reflects the value of assessment work performed on the mining land(s). Please contact the Mining Recorder to determine if this affects the status of your claims.

Date: January 21, 1997

Submission Number: 2 .16707

Transaction Number: W 9630.00057

Claim Number Value Of Work Performed

1209521 1,295.00

Total: $ 1 ,295.00

Page: l

Correspondence ID: 10497

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Ref. P9608-SAG

-N-

Grid North UTM Zone 15

Notes:Flight path derived from differentially corrected GPS . Data levelled using tie lines.

Survey Specifications:Aircraft: M/D HU52 Notar (C-FPRX)Acquisition System: PDAS 1000Magnetometer: Cesium Vapour CS-2Mag Sensitivity: 0.001 nTNominal Sample Interval: 4.5 metres (0.1 sec)Terrain Clearance: 33 metres (100 ft)Flight Line Spacing: 50 metresFlight Line Direction: North-South

100

scale 1:5,000

100 200 300

(metres)

Romios Estates Ltd .

Opapimiskan Lake Area, Northwestern Ontario

TOTAL FIELD MAGNETICS Sage Lake

NTS 53A/5

Flown and processed by

Aero Surveys Inc .#12 - 30 West Beaver Creek Rd.

Richmond Hill, Ont. . L4B 3K1March, 1996

Plate 1

VIOIHJ.

f*

CD 90 :

53A05NVW018 2.16707 NEAWANGAN LAKE 210

707000E

-N-

Grid North UTM Zone 15

Notes:Flight path derived from differentially corrected GPS. Data levelled using tie lines.

Survey Specifications:Aircraft: M/D HU52 Notar (C-FPRX)Acquisition System: PDAS 1000Magnetometer: Cesium Vapour CS-2Mag Sensitivity: 0.001 nTNominal Sample Interval: 4.5 metres (0.1 sec)Terrain Clearance: 33 metres (100 ft)Flight Line Spacing: 50 metresFlight Line Direction: North-South

100

scale 1:5,000

100 200 300

(metres)

Romios Estates Ltd . Opapimiskan Lake Area, Northwestern Ontario

1st VERTICAL DERIVATIVE Sage Lake

NTS 53A/5

Flown and processed by

Aero Surveys Inc.#12 - 30 West Beaver Creek Rd.

Richmond Hill. Ont. . L4B 3K1March, 1996

Ref. P98O8-SAG Plate 2

r-

53A05NWD018 2.16707 NEAWANGAN LAKE 220

Figure 2

-N

Grid North UTM Zone 15

707000E

SAGE LAKE PROPERTY

j 3 T, SKiiYs.v.if-iG\r —

Notes:Flight path derived from differentially corrected GPS. Data levelled using tie lines.

Survey Specifications:Aircraft: M/D HU52 Notar (C-FPRX)Acquisition System: PDAS 1000Magnetometer: Cesium Vapour CS-2Mag Sensitivity: 0.001 nTNominal Sample Interval: 4.5 metres (0.1 sec)Terrain Clearance: 33 metres (100 ft)Flight Line Spacing: 50 metresFlight Line Direction: North-SouthGrid cell size: 10 metres

Contour interval: 50, 250 Se 1 000 nT

100

scale 1:5,000

100 200 300

(metres)

Romios Estates Ltd ,

Opapimiskin Lake Area, Patricia Mining Division

TOTAL FIELD MAGNETICS Sage Lake

NTS 53A/5

Flown and processed by

Aero Surveys Inc.107 Toronto St. South

Uxbridge, Ont. , L9P 1H4September, 1996

oCOcsj

Ref. P9630-SAG