SKEAD HOLDINGS LTD - Ontario

PO Box 219, 14579 Government Road, Larder Lake, Ontario, P0K 1L0, Canada Phone (705) 643-2345 Fax (705) 643-2191 www.explorationservices.ca

SKEAD HOLDINGS LTD.

Magnetometer Survey

Over the

Hughes Property Hughes Township, Ontario

Magnetometer SurveyHughes Property Hughes Township, Ontario

Skead Holdings Ltd.

CANADIAN EXPLORATION SERVICES LIMITED PLAN-EXECUTE-DISCOVER-DEVELOP Page ii

TABLE OF CONTENTS

1. SURVEY DETAILS .................................................................................................................................... 3

1.1 CLIENT ......................................................................................................................................... 3 1.2 LOCATION ..................................................................................................................................... 3 1.3 ACCESS ........................................................................................................................................ 3 1.4 SURVEY GRID ............................................................................................................................... 4

2. SURVEY WORK UNDERTAKEN ................................................................................................................. 5 2.1 SURVEY LOG ................................................................................................................................. 5 2.2 PERSONNEL .................................................................................................................................. 5 2.3 SURVEY SPECIFICATIONS .............................................................................................................. 5

3. OVERVIEW OF SURVEY RESULTS .............................................................................................................. 6

3.1 SUMMARY INTERPRETATION ........................................................................................................... 6

LIST OF APPENDICES

APPENDIX A: STATEMENT OF QUALIFICATIONS APPENDIX B: THEORETICAL BASIS AND SURVEY PROCEDURES APPENDIX C: INSTRUMENT SPECIFICATIONS APPENDIX D: LIST OF MAPS (IN MAP POCKET)

LIST OF TABLES AND FIGURES

Figure 1: Location of the Hughes Property ............................................................................................. 3 Figure 2: Claim Map with Magnetic Traverses ....................................................................................... 4 Figure 3: Magnetic Plan Map .................................................................................................................. 6 Table 1: Survey Log ............................................................................................................................... 5


Skead Holdings Ltd.

CANADIAN EXPLORATION SERVICES LIMITED PLAN-EXECUTE-DISCOVER-DEVELOP

1. SURVEY DETAILS

This project is known as the Hughes Property.

1.1 CLIENT SKEAD HOLDINGS LTD.

28 Ford St. Sault Ste. Marie, Ontario P6A 4N4

1.2 LOCATION The Hughes Property is located approximately 50km northeast of Sault Ste Marie, Ontario. The property covers claim 1192194 located in Hughes Township, within the Sault Ste. Marie Mining Divi-sion.

Figure 1: Location of the Hughes Property

1.3 ACCESS Access to the property was attained with a 4x4 truck via an access road heading north from highway 556 approximately 50km east of its intersection with highway 17. This access road was driven for 12km and the final 1km to the property was travelled on foot.


Skead Holdings Ltd.


1.4 SURVEY GRID The traversed lines were established using a GPS in conjunction with the execution of the survey. The GPS operator would establish sample locations while remaining approximately 12.5m in front of the mag operator. GPS waypoints and mag samples were taken every 12.5m along these controlled traverses. The GPS used was a Garmin GPS Map 62S.

Figure 2: Claim Map with Magnetic Traverses


Skead Holdings Ltd.


2. SURVEY WORK UNDERTAKEN

2.1 SURVEY LOG Date Description Line Min Extent Max Extent Total

Survey (m)

20 September 2012 Locate the survey area and conduct magnetometer survey, 0 350S 525N 875

100E 300S 575N 575 200E 250S 625N 575 300E 200S 675N 600 400E 150S 575N 525 500E 100S 375N 375 600E 50S 150N 200 0N 200W 700E 900 375N 100W 450E 550 475N 400E 500E 100

Table 1: Survey Log

2.2 PERSONNEL Bruce Lavalley and Claudia Moraga of Britt, Ontario conducted all the magnetic data collection.

2.3 SURVEY SPECIFICATIONS The survey was conducted with a GSM-19 v7 Overhauser magnetometer with a second GSM-19 magnetometer for a base station mode for diurnal correction.

A total of 5.275 line kilometers of magnetic survey was conducted on September 20th, 2012. This consisted of 422 magnetometer samples taken at 12.5m intervals.


Skead Holdings Ltd.


3. OVERVIEW OF SURVEY RESULTS

3.1 SUMMARY INTERPRETATION

Figure 3: Magnetic Plan Map

The magnetic signature from the survey indicates two potential magnetic signatures within the survey area. The primary signature appears to be in the southern part of the claim. This region appears as a uniform magnetic signature and most likely represents an underlying volcanic unit.

To the north, there appears to be a rather strong magnetic response. This response is characterized by strong increases and decreases within the magnetic signature. From this response, it would ap-pear that a strongly magnetic east-west feature exists. This may indicate an intrusive dike crossing the area, however, the entire north end exhibits a similar signature. This may indicate that an intru-


Skead Holdings Ltd.


sive gabbro exists with the stronger magnetic response being a result of a contact or chill margin. This may also indicate the presence of a mineralized stringer zone.

With the topography of the area, this region most likely can be investigated through prospecting. This would allow better identification of the anomalies.


Skead Holdings Ltd.


APPENDIX A

STATEMENT OF QUALIFICATIONS

I, C. Jason Ploeger, hereby declare that:

1. I am a professional geophysicist with residence in Larder Lake, Ontario and am presently employed as a Geophysicist and Geophysical Manager of Canadian Exploration Services Ltd. of Larder Lake, Ontar-io.

2. I am a Practicing Member of the Association of Professional Geoscientists, with membership number 2172.

3. I graduated with a Bachelor of Science degree in geophysics from the University of Western Ontario, in

London Ontario, in 1999. 4. I have practiced my profession continuously since graduation in Africa, Bulgaria, Canada, Mexico and

Mongolia.

5. I am a member of the Ontario Prospectors Association, a Director of the Northern Prospectors Associa-tion and a member of the Society of Exploration Geophysicists.

6. I do not have nor expect an interest in the properties and securities of Skead Holdings Ltd.

7. I am responsible for the final processing and validation of the survey results and the compilation of the

presentation of this report. The statements made in this report represent my professional opinion based on my consideration of the information available to me at the time of writing this report.

C. Jason Ploeger, P.Geo., B.Sc.

Geophysical Manager Canadian Exploration Services Ltd.

Larder Lake, ON October 10, 2012


Skead Holdings Ltd.


APPENDIX B

THEORETICAL BASIS AND SURVEY PROCEDURES

TOTAL FIELD MAGNETIC SURVEY Base station corrected Total Field Magnetic surveying is conducted using at least two synchronized magnetome-ters of identical type. One magnetometer unit is set in a fixed position in a region of stable geomagnetic gradi-ent, and away from possible cultural effects (i.e. moving vehicles) to monitor and correct for daily diurnal drift. This magnetometer, given the term ‘base station’, stores the time, date and total field measurement at fixed time intervals over the survey day. The second, remote mobile unit stores the coordinates, time, date, and the total field measurements simultaneously. The procedure consists of taking total magnetic measurements of the Earth’s field at stations, along individual profiles, including Tie and Base lines. A 2 meter staff is used to mount the sensor, in order to optimally minimize localized near-surface geologic noise. At the end of a survey day, the mobile and base-station units are linked, via RS-232 ports, for diurnal drift and other magnetic activity (iono-spheric and sferic) corrections using internal software.

For the gradiometer application, two identical sensors are mounted vertically at the ends of a rigid fiberglass tube. The centers of the coils are spaced a fixed distance apart (0.5 to 1.0m). The two coils are then read simul-taneously, which alleviates the need to correct the gradient readings for diurnal variations, to measure the gradi-ent of the total magnetic field.


Skead Holdings Ltd.


APPENDIX C

GSM 19

Specifications Overhauser Performance

Resolution: 0.01 nT Relative Sensitivity: 0.02 nT Absolute Accuracy: 0.2nT Range: 20,000 to 120,000 nT Gradient Tolerance: Over 10,000nT/m Operating Temperature: -40°C to +60°C

Operation Modes

Manual: Coordinates, time, date and reading stored automatically at min. 3 second interval. Base Station: Time, date and reading stored at 3 to 60 second intervals. Walking Mag: Time, date and reading stored at coordinates of fiducial. Remote Control: Optional remote control using RS-232 interface. Input/Output: RS-232 or analog (optional) output using 6-pin weatherproof connector.

Operating Parameters

Power Consumption: Only 2Ws per reading. Operates continuously for 45 hours on standby. Power Source: 12V 2.6Ah sealed lead acid battery standard, other batteries available Operating Temperature: -50°C to +60°C

Storage Capacity

Manual Operation: 29,000 readings standard, with up to 116,000 optional. With 3 VLF stations: 12,000 standard and up to 48,000 optional.

Base Station: 105,000 readings standard, with up to 419,000 optional (88 hours or 14 days uninterrupt-ed operation with 3 sec. intervals)

Gradiometer: 25,000 readings standard, with up to 100,000 optional. With 3 VLF stations: 12,000, with up to 45,000 optional.

Omnidirectional VLF

Performance Parameters: Resolution 0.5% and range to ±200% of total field. Frequency 15 to 30 kHz.

Measured Parameters: Vertical in-phase & out-of-phase, 2 horizontal components, total field coordi-nates, date, and time.

Features: Up to 3 stations measured automatically, in-field data review, displays station field strength continuously, and tilt correction for up to ±10° tilts.

Dimensions and Weights: 93 x 143 x 150mm and weighs only 1.0kg.

Dimensions and Weights

Dimensions: Console: 223 x 69 x 240mm Sensor: 170 x 71mm diameter cylinder Weight:


Skead Holdings Ltd.


Console: 2.1kg Sensor and Staff Assembly: 2.0kg

Standard Components

GSM-19 magnetometer console, harness, battery charger, shipping case, sensor with cable, staff, instruction manual, data transfer cable and software.

Taking Advantage of a “Quirk” of Physics

Overhauser effect magnetometers are essentially proton precession devices except that they produce an order-of magnitude greater sensitivity. These "supercharged" quantum magnetometers also deliver high absolute accu-racy, rapid cycling (up to 5 readings / second), and exceptionally low power consumption.

The Overhauser effect occurs when a special liquid (with unpaired electrons) is combined with hydrogen atoms and then exposed to secondary polarization from a radio frequency (RF) magnetic field. The unpaired electrons transfer their stronger polarization to hydrogen atoms, thereby generating a strong precession signal-- that is ideal for very high-sensitivity total field measurement. In comparison with proton precession methods, RF signal generation also keeps power consumption to an absolute minimum and reduces noise (i.e. generating RF fre-quencies are well out of the bandwidth of the precession signal).

In addition, polarization and signal measurement can occur simultaneously - which enables faster, sequential measurements. This, in turn, facilitates advanced statistical averaging over the sampling period and/or increased cycling rates (i.e. sampling speeds).

• The unique Overhauser unit blends physics, data quality, operational efficiency, system design and op-tions into an instrumentation package that ... exceeds proton precession and matches costlier optically pumped cesium capabilities


Skead Holdings Ltd.


APPENDIX C

GARMIN GPS MAP 62S

Physical & Performance: Unit dimensions, WxHxD: 2.4" x 6.3" x 1.4" (6.1 x 16.0 x 3.6 cm)

Display size, WxH: 1.43" x 2.15" (3.6 x 5.5 cm); 2.6" diag (6.6 cm)

Display resolution, WxH: 160 x 240 pixels

Display type: transflective, 65-K color TFT

Weight: 9.2 oz (260.1 g) with batteries

Battery: 2 AA batteries (not included); NiMH or Lithium recommended

Battery life: 20 hours

Waterproof: yes (IPX7)

Floats: no

High-sensitivity receiver: yes

Interface: high-speed USB and NMEA 0183 compatible

Maps & Memory: Basemap: yes

Preloaded maps: no

Ability to add maps: yes

Built-in memory: 1.7 GB


Skead Holdings Ltd.


Accepts data cards: microSD™ card (not included)

Waypoints/favorites/locations: 2000

Routes: 200

Track log: 10,000 points, 200 saved tracks

Features & Benefits: Automatic routing (turn by turn routing on roads): yes (with optional mapping for detailed roads)

Electronic compass: yes (tilt-compensated, 3-axis)

Touchscreen: no

Barometric altimeter: yes

Camera: no

Geocaching-friendly: yes (paperless)

Custom maps compatible: yes

Photo navigation (navigate to geotagged photos): yes

Outdoor GPS games: no

Hunt/fish calendar: yes

Sun and moon information: yes

Tide tables: yes

Area calculation: yes

Custom POIs (ability to add additional points of interest): yes

Unit-to-unit transfer (shares data wirelessly with similar

units): yes

Picture viewer: yes

Garmin Connect™ compatible (online community where

you analyze, categorize and share data): yes

• Specifications obtained from www.garmin.com


Skead Holdings Ltd.


APPENDIX D

LIST OF MAPS (IN MAP POCKET)

Posted profiled TFM plan map (1:2500) 1) SKEAD-HUGHES-MAG-CONT

Grid Sketch on Claim Map (1:20000)

2) SKEAD-HUGHES -GRID

TOTAL MAPS = 2

L0E

L0E

L100

E

L100

E

L200

E

L200

E

L300

E

L300

E

L400

E

L400

E

L500

EL6

00E

L0N

L0N

L375N

L475N

L475N

~ - -- , ! • , f f ,

• , " -

f

, f , -, -,

f

, ! - - , -- - - , , - ! - - f

- , f

, , -! -- • -

•.. -f

f f - , ->- , ,-

~ -,

, •

• ,

- ;Ia.. , ~ -- .. ~ -

.~ - -- , ! , , I , ,

• , ., -F

I • , -, , -

! .-, , - - , -• • - ' . , , - -- , -, I

, • • , -- • -,

" -, , , , ,

" ,-

'-- !

- , -, -• ,k ,

--" ~ -

50 0 50 100 150

(meters)WGS 84 / UTM zone 17N

Scale 1:2500

5417354462545465458854622546425466354683546945470554712547195472754732547405474554753547595476654773547825479254806548155482154830548525488954928550025504555110551605523955327554905567356158

TOTAL FIELD MAGNETICnanoTesla (nT)

TOTAL FIELD MAGNETIC CONTOURED PLAN MAPBase Station Corrected

Posting Level: 0nTField Inclination/Declination: 72degN/8degW

Station Seperation: 12.5 metersTotal Field Magnetic Contours: 100nT

GSM-19 OVERHAUSER MAGNETOMETER/VLF v7

SKEAD HOLDINGS LTD.

HUGHES PROPERTYHughes Township, Ontario

Drawing: SKEAD-HUGHES-MAG-CONT

Receiver Operated By: Bruce LavalleyGPS Operated By: Claudia MoragaProcessed by: Claudia MoragaMap Drawn By: C Jason Ploeger, P.Geo.October 2012

5187

250

5187

500

5187

750

51872505187500

5187750

283750 284000 284250 284500

283750 284000 284250 284500

L0E

L0E

L100

E

L100

E

L100

E

L100

E

L200

E

L200

E

L200

E

L200

E

L300

E

L300

E

L300

E

L300

E

L400

E

L400

E

L400

E

L400

E

L500

E

L500

E

L500

E

L500

E

L600

E

L600

E

L0N

L0N

L375N

L375N

L475N

L475N

-300

-200

-100

100

200

300

400

500

-300

-200

-100

400

500

-200

-100

400

500

600

-200

-100

400

500

600

-100

300

400

500

-100

100

300

100

-200

-100

700

-100

54744

54693

54705

54731

54787

54757

54719

54747

54728

54721

54731

54750

54791

54761

54789

54769

54738

54752

54756

54753

54769

54728

54772

54781

54772

54780

54777

54776

54780

54733

54763

54787

54762

54792

54780

54811

54784

54791

54786

54800

54785

54849

54783

54780

54802

54823

54815

54823

54827

54854

54865

54876

54872

54876

54951

54949

54781

52922

56056

54966

54779

54751

54819

55093

54531

54976

55203

55387

55097

54764

54956

54739

54776

54753

54772

54757

54711

54726

54678

54719

54738

54739

54728

54733

54741

54736

54755

54761

54770

54742

54784

54773

54748

54756

54760

54764

54776

54773

54792

54791

54744

54748

54688

58322

57331

54673

54703

55425

54334

54794

54957

55223

55189

54540

55061

55065

55097

55126

55105

54709

54712

54720

54693

54715

54763

54686

54745

54715

54728

54722

54735

54738

54734

54755

54737

54750

54734

54747

54742

54744

54747

54754

54731

54719

54744

54737

55198

55299

55771

54675

54942

54803

54691

55254

54151

54583

54803

54806

55287

55079

55343

55013

55012

55239

55103

54497

56558

54696

54704

54695

54703

54710

54693

54703

54714

54714

54713

54741

54721

54720

54702

54709

54710

54740

54708

54705

54706

54696

54693

54702

54668

55496

57101

55614

57063

56535

54810

55589

55177

55074

55519

54361

54288

54708

55263

53874

55765

55260

55644

54614

53599

50982

55532

54346

54849

58283

54433

54634

54662

54674

54687

54706

54708

54711

54710

54721

54717

54665

54667

54667

54585

54563

54550

54586

54594

54674

54640

54747

55749

54710

55033

54092

55278

56347

54902

55390

55173

55231

54374

54473

62277

59284

56087

55577

58596

57483

56497

54586

49739

53930

53535

54626

54616

54675

54695

54726

54774

54812

54827

54862

54787

54797

54765

54726

54725

54719

54800

54703

54704

54682

55400

55135

55214

55764

55920

54947

54567

55422

54847

55209

54922

55033

55040

54696

54787

54909

54727

54704

54749

54634

54694

54731

54730

54752

54832

54959

54734

55807

54790

54534

5474

254

879

5483

854

816

5481

254

829

5479

654

814

5478

854

800

5479

054

798

5475

054

779

5478

454

780

5478

254

784

5477

654

823

5467

854

753

5478

354

759

5476

354

766

5476

354

772

5475

654

745

5475

754

738

5475

654

740

5473

054

731

5474

754

744

5472

254

757

5472

554

735

5474

154

694

5468

454

683

5466

754

618

5464

054

693

5497

456

351

6069

048

957

5282

754

546

5479

354

904

5528

654

796

5544

054

743

5502

554

778

5468

754

632

5463

454

669

5468

254

716

5461

354

620

5463

5

5505

753

904

5362

554

478

5590

756

857

5489

156

200

5506

3

5521

554

918

5617

955

057

5497

555

004

5508

455

119

5537

654

227

5392

056

918

5527

056

770

5547

455

394

5474

654

667

5491

055

017

5478

654

797

5480

954

834

5376

754

757

5486

754

977

5503

455

298

5554

954

882

5469

854

465

5535

456

956

5522

155

403

5700

260

728

5578

854

571

5557

654

745

5507

5

SKEAD HOLDINGS LTD - Ontario

Documents

Transcript of SKEAD HOLDINGS LTD - Ontario