52J03NW0001W9630-00018 BADSHOT LAKE Q10

NORANDA MINING AND EXPLORATION INC.

REPORT ON 1995 DIAMOND DRILLING

MCDOUGALL BAY - WARD LAKE PROPERTY

MARCHINGTON PROJECT

N.T.S.52J/04

WESTERN CANADA REGION

PROJECT NO. 325 AL SMITH THUNDER BAY. ONTARIO PROJECT GEOLOGIST MARCH 8.1998 REG FELIX

SR. GEOLOGIST

NOISSA1G C". :*

:|d M LV/: 2G

. oooi8

S2J03NWV0001 W9630-00018 BADSHOT LAKE

Table of Contents

List of Attachments

Figure 1 Property Location MapFigure 2 Claim Location MapFigured Drill Hole Location Map (BackPocket)Figure 4 Ward Lake Drill Section 100E (Back Pocket)Figures McDougaU Bay Drill Section 400E (Back Pocket)

List of Appendices

Appendix l Diamond Drill LogsAppendix II Sample Analysis SheetsAppendix III List of Personnel

01OC

Page

1.0 INTRODUCTION.......................................................................................................................3

2.0 LOCATION AND ACCESS........................................................................................................ 3

3.0 PROPERTY DESCRIPTION...................................................................................................... 3

4.0 PREVIOUS WORK....................................................................................................................3

5.0 REGIONAL GEOLOGY............................................................................................................. 4

6.0 PROPERTY GEOLOGY............................................................................................................. 4

7.0 DIAMOND DRILL PROGRAM..................................................................................................... 4

8.0 CONCLUSIONS AND RECOMMENDATIONS...........................................................................^

Scale12.000.000r-Kmite

1:15001:5001:500

1.0 INTRODUCTION

A two hole (173m) diamond drill program was completed between March 8-12, 1995. The purpose of the drill program was two-fold. The first hole (WL-95-1) was designed to intersect an untested *700m long HLEM anomaly with co-incident anomalous magnetics detected during 1994 geophysical surveying on the Ward Lake grid. The second hole (MB-94-2) was designed to further test the base metal zone encountered on the McDougall Bay grid discovered during 1994 diamond drilling. This zone, located approximately 2 km southwest of the Ward Lake Grid, previously returned 1-241* Zn and 2.4g AgS0.75m from a 10m thick sulphide zone intersected in drill hole MB-94-1.

2.0 LOCATION AND ACCESS

The McDougall Bay - Ward Lake property is located approximately 30 km east-northeast of Sioux Lookout. Ontario (Figure 1). The McDougall Bay daim block (on Marchington Lake) can be accessed by travelling northeast from the town of Sioux Lookout on the Marchington Road (Highway 599) for approximately 20 km followed by driving south for 18 km along the McDougall Bay road (all- weather gravel road). A 400m long trail suitable for all terrain vehicle or snowmachine extends from the end of this road to McDougall Bay. The Ward Lake daim block, located approximately 2km to the northeast, can also be reached from the Marchington Road by taking a 3.2 km gravel road which extends to the southeast This road departs from the Marchington road at a point approximately 1km east of the bridge which spans a creek leading north of Stranger Lake. A 150m trail extends from the end of this road to Ward Lake. Alternative access may be gained by float-equipped aircraft from Sioux Lookout or Hudson.

3.0 PROPERTY DESCRIPTION

At the time of the drill program, the McDougall Bay - Ward Lake property consisted of two unpatented mining claims (total 18 daim units) comprising 288 hectares (Figure 2). The daim information is listed below:

TABLE 1 - CLAIM INFORMATION

CLAIM BLOCK

Pa 1162710

Pa 1202200

* OF CLAIM UNITS

9

9

RECORDING DATE

07/20/93

03723794

The claims were staked by Stares Contracting of Thunder Bay. Ontario for Noranda Mining and Exploration Inc.. the latter being the registered owner. The property has subsequently been enlarged by a further 7 claims (76 units).

4.0 PREVIOUS WORK

Noranda Mining and Exploration Inc. first became involved in 1993. when daim staking was completed to cover an untested 1000m long ABEM conductor with associated anomalous magnetics. The conductor was detected by the 1982 Aerodat Electromagnetic and Magnetic Survey (Helicopter- borne system) flown for the Ontario Geological Survey. Line cutting and ground geophysical surveys (HLEM and magnetometer) were completed in 1994 on the two grid areas (McDougall Bay and Ward Lake), and a single drill hole was completed to test the McDougall Bay anomaly.

49

MCDOUGALL WARD LAKE PROPERTY

*

Biudltlt

Fig 1

LOCATION MAP

N

60OO

O TOOMETRES

REVISED

FIG.2

PROJLNo.--

N.T.S.:

SCALE:

\"- ± ̂ . W

1000 2000 11 KM! (7 KM)

CLAIM LOCATION MAP

PROJECT'

mum MI, , oat t

nofondoMNNG AND EXPLORATION MC

5.0 REGIONAL GEOLOGY

The property is located at the boundary between the Wabigoon subprovince to the southeast and the Winnipeg River subprovince to the northwest This boundary is marked by the Miniss River Fault System.

Archean rocks of the Wabigoon subprovince exposed south and east of McDougall Bay include felsic fragmental volcanics, mafic volcanic flows and various granitoid phases of the Lewis Lake and Lake of Bay Batholiths. Limited sulphide-bearing (magnetite-grunerite-quartz) iron formation, wacke and slate occur in the Botsford Lake area.

North and west of McDougall Bay lies the gneissic terrain of the Winnipeg River subprovince. Predominant lithologies include a gneissic suite (gneissic tonalite, amphibolite and granite gneiss) and a metamorphosed plutonic suite (foliated tonalite, granodiorite).

The Miniss River Fault is a major transcurrent fault along the north side of the Wabigoon subprovince. The fault zone is represented by a wide zone of shearing and mylonitic rock units extending in a northwesterly direction through the McDougall Bay and Ward Lake daim blocks.

6.0 PROPERTY GEOLOGY

Limited geological mapping on the property has revealed the presence of steeply-dipping gneissic to foliated tonalites (including amphibolite and diorite intervals) on the north sides of McDougall Bay and Ward Lake. These rocks are medium to coarse grained and well-banded, with locally developed mylonitic banding. These rocks are characteristic of the metaplutonic suite of the Winnipeg River subprovince.

Outcrop exposed on the small island within McDougall Bay reveals the presence of felsic volcanics (crystal and lapilli tuff, with minor cherty ash tuff layers). A zone of stringer to semi-massive sulphide mineralization (jpy. po. sph. cpy) is hosted in this felsic volcanic stratigraphy. The sulphide zone is exposed intermittently over approximately 25m in width, being obscured by overburden on the island and by the lake, covering its south extension. Dips of both the sulphide zone and host rocks are near vertical. The sulphide zone, coincident with an 800m long HLEM anomaly, was drill tested in March. 1994. The hole confirmed the persistance of the sulphide zone to at least the -130m elevation, and detected the steep south dip of the stratigraphy.

Felsic to intermediate pyroclastics were also mapped in the central part of the Ward Lake grid. These rocks consisted of altered and metamorphosed fine to medium grained felsic volcanics (tuff and rare lapilli tuff) with steeply south dipping foliations. Moderate to intense carbonate and chlorite alteration was evident in these units, as was the presence of 1-3mm quartz eyes. The altered felsic volcanics occur immediately southeast of an *700m long HLEM anomaly with a coincident mag high. This conductor occurs along strike of the 800m long McDougall Bay anomaly.

7.0 DIAMOND DRILL PROGRAM

Two diamond drill holes totalling 173m were drilled on the McDougall Bay - Ward Lake property between March 8-12,1995. The second hole had to be abandoned due to excessive overburden. The drill holes were completed by Northwest Geophysics Ltd. of Thunder Bay, Ontario utilizing a JKS 300 diamond drill with BDBGM-size drill rods equipped for thin wall B core recovery. The drill was transported to the Ward Lake and McDougall Bay drill sites via helicopter.

Drill core was removed from the property and stored in the Ministry of Northern Development and Mines remote core storage yard, located northeast of Sioux Lookout The heavily mineralized portion of WL-95-1 was transported to Thunder Bay.

Brief descriptions of the holes are given below, with set-up summaries shown on Table 2. Drill hole traces along with geology and mineralization are shown in section on Figures 4 and 5. and drill logs for the holes are included in Appendix l.

WL-9S-1

This drill note was targeted on a strong. *700m long HLEM (Max-Min O conductor with a coincident magnetic high. The hole was collared to test the central part of the anomaly on line 100E. where a conductivity of 69 Siemens (440 Hz frequency) was detected at a depth of 16m. The hole was designed to intersect the steeply-southeast dipping (BS") stratigraphy and conductor at the -50m elevation.

TABLE 2 - DRILL HOLE SUMMARY

HOLE NO.

WL-95-1

MB-95-2

CO-ORDINATES

L100E/040S

L400E/175S

Az.

330*

315*

DIP

-45*

-65*

EOH (m)

126

47

SIGNIFICANT RESULTS

Sulphide Zone (8W py-po as bands in felsic tuff between 67-96 meters )

Hole abandoned due to excessive overburden.

The drill hole collared in mafic gneissic rocks (mafic volcanic protolith) after passing through 13 meters of overburden. Beneath this, approximately 13m of intermediate to felsic gneiss with moderate chlorite and carbonate alteration was intersected. Approximately 17.6m of foliated felsic gneiss with characteristic 1-2mm quartz eyes and fracture-controlled weak chlorite and sericite alteration was encountered . The next unit intersected was a chlorite-carbonate schist with relict bands of quartz-eye bearing felsic tuff. This unit appears to be the product of strong hydrothermal alteration.

Significant sulphide mineralization was encountered from 67 to 96 meters down-hole, where a banded sulphide zone with 40 to WWfe pyrite and pyrrhotite was encountered within a quartz-eye bearing tuff l lapilli tuff unit The zone was intersected at a vertical depth of -45m and dearly represents the target HLEM anomaly.

The host tuff/lapilli tuff contains local cherty bands and nodules (exhalitive material?), and narrow intervals with fragmental/breccia texture. Banding is well-developed and is characteristically highly contorted. Visual alteration includes moderate to strong silicification and chloritization. No significant base metal values were returned from assays of the drill core (see Analytical Results).

The immediate footwall to the sulphide zone comprises an intensely altered felsic lapilli tuff unit with a highly brecciated texture. This unit exhibits contorted banding, moderate chlorite alteration, and 3- 5*K py-po. and may represent a fault zone. A unit of fine grained to aphanitic mafic volcanics occurs beneath the fault zone and persists to the end of the hole (126m). It is characterized by moderate carbonate alteration and trace to 1** po.

MB-9S-2

This hole was targeted on the east end of a strong HLEM conductor (Max-Min O which travers the central part of the McOougall Bay grid. Previous drill testing of the central part of this anomaly in 1994 intersected a 10m wide base metal-bearing sulphide zone with values up to 1.24% Zn and 2.3 pom Agfl).75m. The hole was collared on Ine 400E and driled grid north to intersect the conductor at a depth of 38m. The distance between the coflars of MB-94-1 (1994 dril hole) and MB-95-2 was approximately 300m.

The drill hole encountered 9m of water before entering 38m of lake bottom sflL This thick overburden was not anticipated, and the hole was abandoned as there was a danger of the hole overshooting the target

Analytical Results

A total of 33 drill core samples were collected from the mineralized intervals of WL-95-1. and a split from each was shipped to Chemex Labs Ltd. of Mississauga. Ontario to be assayed for Cu. Zn, Au. and Ag. Analytical results are presented with the drill tog (Appendix F). and assay certificates are given in Appendix 10.

Anomalous Zn and Cu values were encountered near the base of the sulphide zone in WL-95-1.

8.0 CONCLUSIONS AND RECOMMENDATIONS

Drill hole WL-95-1 successfully intersected the strong northeast-trending HLEM conductor beneath Ward Lake. The conductor was intersected at a vertical depth of -45m and consisted of a banded sulphide zone with 40 to 80"* pyrite and pyrrhotite within a quartz-eye bearing tuff l lapilli tuff uniL A volcanogenic massive sulphide (VMS) environment is suggested by the presence of strong silicification and chloritization within and footwall to the semi-massive to massive sulphide mineralization, and the felsic pyroclastic nature of the host rocks. The brecciated rocks in the immediate footwall to the zone may represent the fault zone which provided the channel way for hydrothermal fluids during the mineralizing event

Further work on the Ward Lake - McDougall Bay property is strongly recommended due to the successful delineation of VMS-style mineralization in an under-explored area. The Ward Lake sulphide mineralization occurs within the same sequence of hydrothermally-altered felsic to intermediate pyroclastics which host the McDougall Bay sulphide zone, approximately 2km to the southwest As hole MB-95-2 was not completed, the 800m long McDougall Bay HLEM conductor requires more drill testing. The potential for economic VMS mineralization remains high further to the northeast within the broad Miniss River Fault Zone.

The following work is recommended for the McDougall Bay - Ward Lake area:

1. Additional drilling to test the McDougall Bay conductor both along strike and down-dip.

2. A program of mapping and lithogeochemical sampling to further outline hydrothermal alteration and structure on the property.

3. Reconnaissance prospecting, lithosampling. and mapping to the northeast of the property to identify further potential base metal targets.

6

6

Respectfully!

O^ 4NORANDA MINING AND EXPLORATION INC.

Al Smith Reg FelixTliunder Bay. Ontario Project Geologist ST. GeologistMarch 8.1996 Western Canada Region Western Canada Region

APPENDIX l

DIAMOND DRILL LOGS

PROPERTY: WARD LAKEHOLE NO.l WL-95-1Collar Eastings: 100.00Collar Northings i -40.00Collar Elevation: 0.00Oridt WARD LAKEHOLE DRILLED ON CLAIM # PA 1162710

DIAMOND DRILL LOO

Collar Inclinationt -45.00 Orid Bearingi 0.00 Final Depth! 126.00 HMtrMTARGET HLEM ANOMALY AT -50M DEPTH l GRID NORTH* 330E E.O.K. li 126 meters; 3 3 sample* taken

Logged byi R FELIX Datei MARCH 8, 1995 Down-hole Survey: ACID

FROM TO LITHOLOGICAL DESCRIPTION

MARCH 8, FINISHED MARCH 10, 1995

FROM TO WIDTH Cu(ppmFzn(ppm) Au(ppb) Ag(ppot)

0.0 13.3 (Overburden)

13.3 20.0 (Mafic Metavolcanic Gneiss)- grey to grey-oreen- very fine grained, rare quartz eyes- well foliated at 40-45 deg to the CA- characteristic moderate to Intense epldote-carbonate alt.

20.0 33.0 (Intermediate to Felsic Hetavolcanlc Gneiss)- grey, very fine grained with frequent l-Bun characteristic quartz eyet- moderate chloHte-carbonate alteration- reerystalll zed character

33.0 50.0 (Felsic Hetavolcanlc Gneiss)- grey and white, very fine grained, well foliated at 45 deg to CA; very siliceous, quartz eye tuff

- frequent l-2mm quartz eyes- comprised essentially of quartz feldspar, amphibole biotite- weak chlorite and sericite alteration occurring as hairline thick lamellae

50.6 60.0 (Chlorite Carbonate Schist)

HOLE No: WL-95-1

PROPERTY! WARD LAKE HOLE No.i WL-95-1

DIAMOND DRILL LOO

Pag* 2

FROM TO LITHOLOGICAL DESCRIPTION

- very fine grained, greenlih-black and white; highly contorted and variable banding- well foliated at 30-49 deg to CA- Intense chlorlte-carbonate alteration- occasional quartz-feldspar segregations and velnlng

80.0 64.0 (Felsic Metavolcanlc/Quartz Eye Tuff)- similar to 33-50.6- highly variable banding at 20-45 deg to CA but generally 40-45 deg to the CA

64.0 67.0 (Quartz-Chlorlte-Carbonate Schist)- finely banded with up to lcm wide pyrite bands- generally mineralized with finely disseminated and banded pyrite S-10%, locally 20-354 at 64.5-65.5- highly variable and contorted banding from 0-45 deg to CA

67.0 96.0 (Sulphide Zone)67.0 72.0 banded sulphide lapilli tuff; quartz-chlorlte- pyrlte-- very- 40-504 pyrlte-pyrrhotlte, 1-24 magnetite72.0 89.5 quartz-ch1or1te-pyrite*y-pyrrhot1te breccia- characteristically white and green, highly contorted banding and chloritic fragments throughout- 50-604 pyrite-pyrrhotite, traces of magnetite 69.5 93.0 quartz sulphide lapilli tuff- 70-604 banded pyrlte+Apyrrhotlte at 50-60 deg to CA

e-pyrrhotite schlst/laptlll tuffy siliceous with several cherty bands and nodules

FROM TOASSAYS

WIDTH Cu(ppm) Zn(ppm) Au(ppb) Ag(ppm)

64.0065.0066.00

67.0068.0009.0070.0071.0072.0073.0074.0075.0076.0077.00

65.0066.0067.00

68.0060.0070.0071.0072.0073.0074.0075.0076.0077.0078.00

1.001.001.00

.00

.00

.00

.00

.00

.00

.00

.00

.00

.00

.00

57.00042.00028.000

62.00045.00083.00081.00056.00052.00061.00068.00070.00042.00046.000

68.00080.000152.000

78.00071.000

148.000100.000108.00097.000105.000100.00088.000120.00082.000

10.0005.000TRACE

19.00010.00015.00010.000TRACE

20.00010.00015.00020.00015.00015.000

TRACETRACETRACE

TRACETRACETRACETRACETRACETRACETRACETRACETRACETRACETRACE

HOLE No: WL-95-1

PROPERTY l WARD LAXB HOLE No.t WL-95-1

DIAMOND DRILL LOO

Pag* 3

FROM TO LITHOLOGICAL DESCRIPTION FROM

- grey to grey-green 78.0093.0 96.0 same as before 79.00- fragmental /breed a texture with siliceous fragments up to 80.002cm In size 81.00- 13-20* pyrlte-pyrrhotlte 82.00

83.0084.0085.0086.0087.008B.OO89.0090.0091.0092.0093.0094.0095.00

TO WIDTH

79.00 1.0080.0061.0082.0083.0084.0085.0086.0087.0088.0089.0090.0091.0092.0093.0094.0095.0096.00

.00

.00

.00

.00

.00

.00

.00

.00

.00

.00

.00

.00

.00

.00

.00

.00

.00

ASSAYS Cu(ppm) Zn(ppm)

1 52.00024.00057.00072.00036.00028.00023.00020.00048.00030.00039.00040.00071.00044.00070.00081.00029.000112.000

92.00063.00041.00074.00095.00086.000104.00070.000

154.000140.00095.00056.000152.000166.000144.000230.00065.000154.000

Au(ppb)

10.0005.000

35.00025.00010.00010.0005.000TRACE15.000TRACE5.00015.00040.00015.00010.00010.000TRACE15.000

Ag(ppm)

TRACETRACETRACETRACETRACETRACETRACETRACETRACETRACETRACETRACETRACETRACETRACETRACETRACETRACE

96.0 69.0 (Intensely Altered Felsic Lapilli Tuff/Breccia)- possible fault zone- grey to grey-gree- very fine grained with occasional siliceous fragments- schistose at 50-60 deg to CA but occasionally exhibits contorted banding- 3-5* disseminated and blebs of pyr1te-pyrrhot1te

gg.O 126.0 (Mafic Hetavolcanlc)

96.00 97.00 1.00 46.000 N.A. TRACE TRACE

HOLE No: WL-95-1

PROPERTY: WARD LAKE HOLE No.l WL-95-1

DIAMOND DRILL LOO

Pag* 4

FROM TO LITHOLOGICAL DESCRIPTION

- flnt grained to aphanitic- massive to wMkly foliated- moderate carbonate alteration local at brecciated sections at gg-101, 107-108, 119-126- tr-1% pyrrhotite

Core stored In Sioux Lookout at MNOM core storage

126.0 END OF HOLE

DOWN-HOLE SURVEY DATA

DEPTH INCLINATION BEARING

126.00 -45.00 0.00

FROM TOASSAYS

WIDTH Cu(ppra) Zn(ppm) Au(ppb) Ag(ppm)

HOLE No: WL-95-1

PROPERTY t MODOUQALL BAY HOLE NO.l NB-93-2Collar Bastingsi 400.00Collar Northingsi -179.00Collar Elevationi 0.00Oridl MODOUQALL BAYBOLE DRILLED ON CLAIM f PA 1202200

DIAMOND DRILL LOO

Collar Inclinationt -65.00 Logged by i R FBLIX Orid Bearlngt 0.00 Dataii MARCH 11, 1993 Final D*ptht 47.00 natTM Down-hole) Surveys ACID TARGET BUM ANOMALY AT -SON DEPTH l GRID NORTH 313BOLI BOLE ABANDONED AX 47M DUB TO BXCBMIVE OV1

FROM TO LITHOLOQICAL DESCRIPTION

0.0 0.0 (Water)

g.O 47.0 (Lake Bottom Silt/Overburden)

47.0 END OF HOLE

- hole abandoned due to excessive overburden; danger of drill hole overshooting target; budget also exhausted.

DOWN-HOLE SURVEY DATA

DEPTH INCLINATION BEARING

47.00 -61.00 0.00

FROM

0.00

ASSAYSTO WIDTH

0.00 0.00

FINISHED MARCH 12, 199S

HOLE No: HB-9S-2

APPENDIX II

SAMPLE ANALYSIS SHEETS

Chemex Labs Ltd,Analylloil CtwmWi * GwcramWi' RcgMtrad Atuym

6176 Tlmberlea Blvd., MiaslasaugaOntario, Canada UW 283PHONE: 905-624-2806 FAX: 906-624-6163

To: NORANDA MINING AND EXPLORATION INC.

960 ALLOY DRIVE THUNDER BAY, ONTARIO P7B6A4

Project: 336Comment* ATTN: REQ FELIX

Page Number : 1 Total Pages :1 Certificate Date: 23-MAR-95 Invoice No. : 19513646 P.O. Number :TB10136 Account : BUF

CERTIFICATE OF ANALYSIS A951 3646

SAMPLE

32(938 64-65B33*939 65-66m336940 66-67m326941 67-68m336942 68-69B

33C943 69-70B336944 70-71B336945 71-73B336946 72-73a336947 7 3 -74m

336948 74-7SB336949 75-76B336950 76-77B77-7BB78-79m

79-eOmBO-81B81-83m82-83B83-84m

B4-85BB6-B6B86-B7B87-88*88-89m

B9-90B90-91B91-92a92-93B93-94a

94-95B95-96B96-97a

PREPCODE

305305305305305

305305305305305

305205305305305

305305305305305

305305305305305

305305305205305

305305305

336336336336236

336336236236226

236226226226226

236226226226226

226226226226226

226226226236336

336336336

Au ppbFA+AA

105

* 51510

1510

< 53010

1530151510

535351010

5< 5

15< 5

5

1540151010

< S15

< 5

CUppB

5743386345

8381565361

6870424653

3457733638

2320483039

4071447081

29112

46

znppm

6880

1527871

148100108

97105

10088

120103

82

9263417495

86104

70154140

9556

153166144

33065

154

Ag ppmAqua R

0.30.30.20.20.2

0.20.20.20.20.2

0.20.20.2

< 0.2< 0.2

< 0.2< 0.2< 0 .2< 0.2< 0.2

< 0.2x 0.2< 0 .2< 0.2K 0.2

< 0.2< 0.2< 0 .2< 0.2< 0.2

< 0.2< 0.2< 0.2

CERTIFICATION^!

Chemex Labs Ltd.Analytical ChamMa * Qaochamlata *

5175 Timbariaa Blvd., Ontario, Canada

agMaMiaalaaauga

\^IIIMIV, WOliaVNI WW 2S3

PHONE: 906-624-2806 FAX: 905-624-6163

To: NORANDA MINING AND EXPLORATION INC.

960 ALLOY DRIVE THUNDER BAY, ONTARIO P7B6A4

Comments: ATTN: REG FELIX

3l .^9513646

CERTIFICATE A9513646

(BUF) - NORANDA MINING AND EXPLORATION INC.

Project 336 P.O. #: TB10136

•enplea auhmltted to our lab in Vancouver/ Thia report waa printed on 23-MAR-95.

SAMPLE PREPARATION

W20122C231

tun333333

DESCRIPTION

QeoeheB ring to approx ISO aaeh0-3 Kg oruah and aplit itrio-mqua-regia, digeetion

ANALYTICAL PROCEDURES

CHEMEX CODE

100 2 S t

NUMBERSAMPLES!

33333333

DESCRIPTION METHOD

Au ppbt FUM 10 g MUttjie FA-AAICu ppBi HN03-*qu* regi* digeatIn ppau HM03-equ* regie, digeatAg ppau HM03-e.qum regie, digeat AM-BKQD com

DETECTION LIMIT

Sl l

0.2

UPPER LIMIT

100001000010000100.0

(X,

APPENDIX III

LIST OF PERSONNEL

The following is a list of Moranda personnel who supervised work on the McOougall Bay - Ward Lake property.

Name Position Address

R. Felix ST. Geologist 960 AHoy Drive. T. Bay, ON A. Smith Project Geologist 960 Alloy Drive, T. Bay. ON

The following contractors completed work on the McDougall Bay - Ward Lake property.

Name Address Work Type

Stares Contracting Ltd. Thunder Bay. ON Grid cutting (M. Stares. S. Stares)

Northwest Geophysics Ltd. Thunder Bay. ON Diamond Drilling (A. Lambert and drill crew)

Chemex Labs Mississauga. ON Assaying

Ministry ofNorthern Developmentand Mines

Report of Work Conducted After Recording Claim

TB^w^a^KdrftWaK UB B^idk^iwiraraaction rauinoof

Onta.io Mining Act

Personal Information coftacted on this formtoobtalrieduno^theaiitlwrityoftheMin this oollsctiof) should bo directed to ths Provflncefll MSIMQOT, MMnQ Lsnds, Sudbury. Ontario. P3E SA5. telephone (705) 670-72S4.

Instructions: - Please type or print and submit in duplicate. "OO- Refer to the Mining Act and Regulations for requirements of filing assessment work or consult the Mining

Recorder.- A separate copy of this form must be completed for each Work Group.- Technical reports and maps must accompany this form in duplicate.- A sketch, showing the claims the work is assigned to. must accompany this form.

335Recorded HoUar(a)

Noranda Mining and Exploration Inc.Addien c/o 960 Alloy Drive, Thunder Bay, Ontario P7B 6A4Mining Dnriann

Patricia

Work From: Pwtomied March 8. 1995

Township/Area

Sharron ft Badshot Lakes

Client No. 176208

Ta lain final n *̂ * i6Mpnon0 NO.(807) 623-4339

M or G Plan No. G-2207 S G-1914

March 18. 1995

Work Performed (Check One Work Group Only)WorkGroup

X

Geotechnical Survey

Physical Work. Including Drilling

Rehabilitation

Other Authorized Work

Assays

Assignment fromrieservo

Type

Diamond Drilling (Holes WL-95-1 , MB-95-2) ( W2o) ( P D* ILL)

Total Assessment Work Claimed on the Attached Statement of Costs 26.754

Note: 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.

Persons and Survey Company Who Performed the Work (Give Name and Address of Author of Report)Name

A. Smith. R. Felix (Co- Authors)

Northwest Geophysics Ltd.

Chemex Labs Ltd.

Address

960 Alloy Drive, Thunder Bay. Ontario P7B 6A4

P.O. Box 3263. Thunder Bay. Ontario P7B 5E8

5175 Timberlea Blvd. Mississauga. Ont. L4W 2S3

(attach a schedule If necessary)

Certification of Beneficial Interest * See Note No. 1 on reverse side

1 certify that at the time the work was performed, the claims covered in this work report were recorded in the currant holder's name or held under a beneficial interest

Data

Mar. 12/96

Recorded Holder or Agent (Signature)

^^D^^-f^^~~

Certification of Work Report ^ m1 certify that l have a personal knowkits completion and annexed report is

*dge of the facts eat forth in this Work repc true. Vf- ^

Name and Address of Pereon Certifying

Cecilia M. Barrett. 960 Alloy Drive. Thunder Bay, Ontario P7B 6A4TetaponeNo.

(807) 623-4339

Date

Mar. 12/96 ^jSsfc...For Office Use Only

0241(09*1)

Uetai is tor uonc Kepon f

work Report* for Applying Reserve

*

i

Claim Number (see note Z)

PA 1,162,710

PA 1,202,200

2

Total Number of Claims

t of Claim Units

9

9

-

.

18 umfo

Value of Auesment work Done

on this Claim

19.454.00

7.300.00

f

Value Applied to this Claim

3.600.00

3.600.00

26.7S4.00 7.200.00

Total Value Work Total Value Done work Applied

-

Values Assigned from this Claim

\

ft

Reserve:Uork to be Claimed at

a Future Date

15,854.00

3.700.00

-

-

-

0.00 19.554.00

Total Assigned Total Reserve From

Credits you are claiaring in this report may be cut back. In order to minimize the adverse affects of such deletions, please indicate fro* which claias you wish to priorize the deletion of credits. Please mark (x) one of the following:

1.1 Credits are to be cut back starting with the claims listed last, working backwards.

2.1 1 Credits are to be cut back equally over all claias contained in this report of work.

3.1 Credits are to be cut back as prior i zed on the attatched appendix.

4. x Credits are to be cut back starting with the claims that have reserve credits.

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

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

Note 2: If work has- been performed on patented or leased land, please complete the following:

I certify that the recorded holder had a beneficial interest in the patented or leased land at the time the work was performed.

Signature Date

Noranda Mining and Exploration Inc. 960 Alloy Drive Thunder Bay. Ontario P7B6A4

Ontaro

Ministry ofNorthern Developmentand Mines

Ministere du Oevetoppement du Nord et des mines

Statement of Costs for Assessment Credit

Etat des couts aux fins du credit devaluation

Mining Act/Loi sur les mines

Transaction NoJN" de transaction

Personal information collected on this form is obtained under the authority of the Mining Act. This information will be used to maintain a record and ongoing status of the mining clainXs). Questions about this collection should be directed to the Provincial Manager. Minings Lands. Ministry of Northern Development and Mines. 4th Floor. 159 Cedar Street. Sudbury. Ontario P3E GAS. telephone (705) 670-7264.

Les renseignements personnels contenus dans to presente fbrmuto sont recueillis en vertu de la Loi sur tos mines et senriront a. tenir a jour un registre des concessions minieres. Adresser touta quesiton sur la coitoce de ces renseignements au chef provincial des terrains mintors. ministere du Devetoppement du Moid et des Mines. 159. me Cedar. 4* etage. Sudbury (Ontario) P3E 6A5. telephone (705) 670-7264.

O O i)

1. Direct Costs/CoQts directs

Type

Wagea SaJalree

Contractor's and Consultant's Fees Drafts de ( entrepreneuret de I'expert- consell

SuppHesusad FoumNures utMsses

Equipment RentalLocation (to

Description

Labour Main-d'oeuvre

Reid Supervision Supervision sur le terrain

TyiBiamond Drilling

Assaying

"Sampling Gear

Type

Amount Montant

2,450

3,500

15,420

825

100

Total Direct Costs Total des coots directs

Totals Total global

5,950

16,245

100

22,295

2. Indirect Costs/CoQts indirects* * Note: When claiming Rehabilitation work Indirect costs are not

allowable as assessment work.Pour to remboursement des travaux de rehabilitation, tos couts indirects ne sont pas admissibtos en taut qua travaux d'evaluation.

Type

Transportation Transport

Food snd Lodging Nourrttureet

MobHtoatlon et demobilisation

Description

Helicopter

Truck

Amount Montant

11,017

200

Sub Total of Indirect Costs Total partlel des couts Indirects

not greater than 209k of Direct Costs) (n'sxcfdaiit pas 20 H des couls directs)

(ToW of Direct and Allowable d'tvataaHo bvflraet coatsl rTaM du tt

to du credit m

Totals Total global

11,217

1,000

1.156

13.373

4,459

26.754

The recorded holder will be required to verify expenditures claimed in this statement of costs within 30 days of a request for verification. If verification is not made, the Minister may reject for assessment work all or part of the assessment work submitted.

: Le tilt age i tenu de verifier tos deto present etat des couts dans tos 30 jours suivant une demande a cet effet. Si to verification n'est pas effectuee. to ministre peut retoler tout ou une partto des travaux d'evaluation presentes.

Filing Discounts pour depot

1J Work filed within two years of completion is claimed at lOOTb of the above Total Value of Assessment Credit.

1. Les travaux deposes dans les deux ans suivant tour achievement sont rembourses a 100 "Mi de la vateur tolato susmenbonnee du crooH d'evaluation.

2. Work filed three, four or five years after completion is claimed at 50*fc of the above Total Value of Assessment Credit. See calculations below:

Total Value of Assessment Credit Total Assessment Claimed

x 0.50

2. Les travaux deposes bois, quatre ou cinq ans apres leur achevement sont rembourses a 50 to de la valeur totale du credit d'evaluation susmentionne. Voir tos calculs ckJessous.

Valeur tolato du credit d'evaluation

x 0.50 ~

Evaluation totato demandte

Certification Verifying Statement of Costs Attestation de I'etat des couts

l hereby certify:that the amounts shown are as accurate as possible and these costs were incurred while conducting assessment work on the lands shown on the accompanying Report of Work form.

Lands Administratorthat as

(He ir. Agent. Position in Company)

J'atteste par la presente :que les montants indiques sont le plus exact possible et que ces depenses ont ete engagees pour effectuer les travaux d'evaluation sur les terrains indiques dans la formula de rapport de travail ci-joint.

l am authorized Et qu'a litre de(tftulaire anregjsM. reprteantant. poste occupa dans to

suis autorise pagnie)

to make this certification a faire cette attestation.

Signature

0212 IOM1)

Mar. 12/96

Note : Dans cette formuto. lorequ'il designe des personnes. to masculin est utilise au sens neutre.

FOREST ACTIVITY INFORMATIONTHIS TOWNSHIP/AREA FALLS WITHIN THE

RT-t Cf CNR TRACKS

FOREST ACTIVITY INFORMATIONTHIS TOWNSHIP/AREA FALLS WITHIN THE SOUTH OF CNR TRACKS

KIMMEWIN LAKE G-2090At- .'J REC 9I 0 30'

AND MAY BE SUBJECT TO FORESTRY OPERATIONS THE M N.R UNIT FORESTER FOR THIS AREA CAN BE CONTACTED AT

P O BOX 309SIOUX LOOKOUT. ONTARIO POV2TO(807)737-1140

AND MAY BE SUBJECT TO FORESTRY OPERATIONS THE M N R UNIT FORESTER FOR THIS AREA CAN BE CONTACTED AT

PO BOX 309SIOUX LOOKOUT. ONTARIO POV 2TO(807)737-1140

9I 0 I5'

50 0 I5' i

O CVJ CVJ

l

O

UJ

Ottcr <C/)

THE INFORMATION THAT APPEARS ON THIS MAP HAS BEEN COMPILED FROM VARIOUS SOURCES, AND ACCURACY IS NOT GUARANTEED. THOSE WISHING TO STAKE MIN ING CLAIMS SHOULD CON SULT WITH THE MINING RECORDER. MINISTRY OF NORTHERN DEVELOP MENT AND MINES, FOR AD DITIONAL INFORMATION ON THE STATUS OF THE LANDS SHOWN HEREON

50 W SO'1-1

-50 0 I5'

14

13

12'

V

10'

l—50 0 07'30"

9I 0 30'29' 27' 26' 25' 24' 23' 22' 21' 20 19 IB' 17' 16' l9I 0 I5'

Do LAU.Z

502912

LEGEND

r-'.

HIGHWAY AND ROUTE No

OTHER ROADS

TRAILS

SURVEYED LINESTOWNSHIPS, BASE LINES, ETCLOTS, MINING CLAIMS, PARCELS, ETC

UNSURVEYED LINESLOT LINESPARCEL BOUNDARYMINING CLAIMS ETC

RAl LWAY AND RIGHT OF WAY *

UTILITY LINES

NON-PERENNIAL STREAM

FLOODING OR FLOODING RIGHTS

SUBDIVISION OR COMPOSITE PLAN

RESERVATIONS

ORIGINAL SHORELINE

MARSH OR MUSKEG

MINES

TRAVERSE MONUMENT REMOTE TOURIST SET-UP

DISPOSITION OF CROWN LANDS

TYEE OF DOCUMENT SYMBOLPATENT. SU RF ACE 6 MINING RIGHTS-;——....Jfe.er 0

" .lURFACE RIGHTS ONLY.____._......__ 6" .MINING RIGHTS ONLY___......-......__. O

LEASE,SURFACE 6 MINING RIGHTS————....,™. B" .SURFACE RIGHTS ONLY._.... ............m B

" .MINING RIGHTS ONLY............... ......_. O

LICENCE OF OCCUPATION .._............. ......... TORDER-IN-COUNCIL -._..............————.......,.. OCRESERVATION __-———————..................m (*)CANCELLED ___———.__——.———.,............ 9SAND ft GRAVEL .......,..._........................... (J)REMOTE COTTAGE__________ MOTE: MINING RIGHTS IN PARCELS PATENTED PAlOft TO MAVS

1013. VESTED IN ORIGINAL PATENTEE *Y THE PUBLIC LANDS ACT, R S.O 1970, CHAP MO, SEC S3. SUSS t C 1

REFERENCESAREAS WITHDRAWN FROM DISPOSITION

M.R.O. -MINING RIGHTS ONLY

t.R.O. -SURFACE RIGHTS ONLY

M.+ S.-f INING AND SURFACE RIGHTS

Description ^*d*r Ne Data Owpecition

sec ss/soSEC 36/80

W Si/**

wIt/ll/ttl? /l 1/82

H U S

MAS

FOREST ACTIVITY INFORMATIONTHIS TOWNSHIP/AREA FALLS WITHIN THE

ABITIBI BLOCK#9 FOREST MGT. UNITAND MAY BE SUBJECT TO FORESTRY OPERATIONS THE M N R UNIT FORESTER FOR THIS AREA CAN BE CONTACTED AT

P O BOX 309SIOUX LOOKOUT, ONTARIO POV 2TO(607)737-1140

SCALE: 1 INCH * 40 CHAINS

FEETO 1000 2OOO 4000 6OOO

O 200 METRES

100011 KM)

2000(7 KM)

AREA

BADSHOT LAKEM.N.R. ADMINISTRATIVE DISTRICT

SIOUX LOOKOUTMINING DIVISION

PATRICIALAND TITLES/ REGISTRY DIVISION '

KENORAMinistryof und Natural ~

K

S2J03NW0001 W0630.Q0018 BADSHOT UAKE 200

CO

CO

l

•lo V-

HOLGER LAKE AREA G*2O69•1*48' 9I 0 30*

80*18' —

137*1.20(3)

94MAR23 REG

O IT 12/98 R

UJ

-J

ft O

14'

13'

12'

^-._l

BLOCK

1202143

r- 500 I5'

O)i o

yj

II' *

(O O

10'

MNR ORAVEL PIT N9 IF -22

MNR ORAVEL PIT Nf 90 FILE 179728

MTC ORAVEU PIT Nf IP-26

MTC GRAVEL PIT N0 IF-25

DREST ACTIVITY INFORMATIONIS TOWNSHIP/AREA FALLS WITHIN THE

;ROWN FORCGT MGT. UNr

9'THE INFORMATION fHA APPEARS On THIS MAP HAS BEEN COMPILED FROM VARIOUS SOURCES AND ACCURACY IS NOT GUARANTEED THOSE WISHING TO STAKE MIN ING CLAIMS SHOULD CON SULT WITH THE FINING RECORDER, MINISTRY OF NORTHERN DEVELOP MENT AND MINES, FOR AD DITIONAL INFORMAT'ON ON THE STATUS OF THE.AN OS SHOWN HEREON8'

80 0 OT'80"

tt***' SO1

ZARN LAKE AREA 6-2277

0 QUARRY PERMIT

ORAVEL

SAND AND GRAVEL

DCMAY BE SUBJECT TO FORESTRY OPERATIONS E M N R. UNIT FORESTER FOR THIS AREA CAN BE NJACTEDAT

P O BOX 309SIOUX LOOKOUT. ONTARIO POV2TO(807)737-1140

LEGEND

PATENTED LAND CROWN LAND SALELEASES •S"-*i*u*LOCATED LANDLICENSE OF OCCUPATIONMINING RIGHTS ONLYSURFACE RIOHTS ONLYROADSIMPROVED ROADSKttttt HIGHWAYSRAILWAYSPOWER LINESMARSH OR MUSKtS S3?CANCELLEDREMOTE COTTAGE

REFERENCESWltHOftAWN FROM DISFOSfROei

M.R.O. - MINING RIGHTS ONLYM.Q. - SURFACE RIGHTS ONLYH.+ t. - MINING AND SURFACE* RIGHTS

(5) SEC 43/70 W 24/78 IS/5/78 S ft O I7972S*

FLOODINGLAC SEUL RESERVING RIGHT TO FLOOD

AND OVERFLOW TO CONTOUR ELEV. 1172

FILE 149.90

SCALE; 11NCH - 40CHAINS

ftfT9__1C

e aoeMiTMM M KM) KM)

MM

SHARRON LAKEH.M.R. AMHItMMTm

SIOUX LOOKOUT•HIM 8IVMIM

PATRICIAtAM TITLU/ IHISTIIT 8l*ltlMKENORA

Ministry of Land

FEBRUARY . 1964

Gr2207

COen

-, 30:2

2 *- m 00

^^o w 22 o g^ 30

52J03NW0001 W9830-00018 BADSHOT LAKE

i' 1

210

iOOE

inwS Oin

WL-95-1e-

o o

NW

N

-25

OVERBURDEN

Mafic Hetavolcanic Gneiss

Intermediate to Felsic Metavolcanic Gneiss

-25

-50

-75

-100

Felsic Metevolcanic Gneiss

Ihlorite - Carbonate Schist

Quartz Eye TuffQuartz Chlorite Cartonate Schist 15-10X py)

Banded luartz Chlorite Py Po (40-81K) Lapilli Tuff

Intensely Altered Fels

Mafic Metavolcanic

-Sin

c Breccia (3-5X py-po)

-50

-75

Figure 4

26.00 n. tL-95-1

-100

NORANDA MINING AND EXPLORATION

325 - MARCHINGTON

SECTION IOOE

NL-9S-1 KAflO LAKE MIO

l C* * 1(0 M* it

DATE m/n/tt l iOLt 1/900

J03NW0001 W9830-00018 BADSHOT LAKE 220

o o(V

to in W Oin

400EMB-95-2

-25

-50

-75

OVERBURDEN(S

47.(O m. MB-!5-2

LT-MUDI

52J03NW0001 W9630.00016 BADSHOT LAKE 230

in in t\jw o o

in in in o in

\

NW

400E

N

FigureS

-25

-50

-75

NOflANDA MINING AND EXPLORATION^

325 - MAHCHINGTON

SECTION 400E

DRILL MOLE W-9S-Z

NCOOUCAU. BAY BRIO

LOOKING SW

MAFICGNEISS

STRANGE LAKE

ALTERATION

202200"

MCDOUGALLBAY ROAD

GRANITE.

ENGLISH RIVER GNEISS oi \ MARCHINGTON

FELSIC VOLCANICS(QTZ EYE TUFF) MCDOUGALL

BAY

MAFIC VOLCANICS

GRANITE

LEGENDFigure3

MAG HIGH

HLEM CONDUCTOR1994 DDH

1995 DDH

MARCHINGTONPROJECT

DRILL HOLE LOCATIONS

noronda